Agenda packet — Covina City Council, October 21, 2025 (part 1 of 3)

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA

Tuesday, October 21, 2025, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall

IMPORTANT NOTICE
Members of the public may begin entering the City Council Chamber 15 minutes prior to the scheduled start time of the meeting as listed above. During this time, and the duration of the meeting, members of the public will have access to the City Council Chamber and first floor restrooms only.

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

Public Comments: Time is reserved during the Public Comments portion of the meeting for those in the audience who wish to address the City Council on items listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) and items not listed in the agenda within the subject matter jurisdiction of the City Council, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.

All communications are to be addressed directly to the City Council and not to the members of the audience.

Each speaker is limited to a total of three (3) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on anticipated length of the meeting. A speaker's time may not be transferred to another speaker. State Law prohibits the Council/Agency/Authority from taking action on any item not on the agenda.

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

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JOINT MEETING—CLOSED SESSION 6:30 PM

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

PUBLIC COMMENTS - CLOSED SESSION
The public is invited to comment on Closed Session items only at this time.

CLOSED SESSION
The City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to closed session for the following:

A. Government Code § 54956.8 - CONFERENCE WITH REAL PROPERTY

NEGOTIATORS
Property: 176 E. Badillo St., Covina, CA (APN: 8445-010-812) Agency Negotiator: Chris Marcarello, City Manager
Brian Lee, Deputy City Manager/Community
Development Director
Negotiating Parties: Frontier California, Inc., Owner
Under Negotiation: Price and Terms of Payment
B. Government Code § 54957 - PUBLIC EMPLOYMENT
Title: City Attorney
RECESS
JOINT MEETING—OPEN SESSION 7:30 PM

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

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by Mayor Linares.

INVOCATION
Given by Covina Police Chaplain Chuck Cannizzaro.

APPROVAL OF AGENDA

PRESENTATIONS
A. Code Enforcement Officer Week
B. Domestic Violence Awareness Month
C. Breast Cancer Awareness Month
D. Red Ribbon Week
E. Recognition of Rory Gutierrez

CLOSED SESSION REPORT

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PUBLIC COMMENTS
This is the time and place for the general public to address the City Council/Agency/Authority on any item listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) or not listed on the agenda, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.

Each speaker is limited to a total of three (3) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on the anticipated length of the meeting.

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

CITY MANAGER COMMENTS

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

CC 1. Minutes 9
Staff Recommendation:

Approve the Minutes of the September 2, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

CC 2. Minutes 19
Staff Recommendation:

Approve the Minutes of the September 16, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

CC 3. Payment of Demands 29
Staff Recommendation:

Approve Payment of Demands in the amount of $7,543,045.77.

CC 4. City of Covina Investment Report for Month Ended September 30, 2025 39 Staff Recommendation:

Receive and File.

CC 5. Agreement Regarding Occupancy of Property, and Amendment of Deeds of Trust between the Covina Housing Authority and the Owner(s) for Property Located at 221 W. Zinfandel Drive, Unit 29, Covina
55 Staff Recommendation:

Approve and Authorize the City Manager/Executive Director or his designee to execute related documents including the Agreement Regarding Occupancy of Property, and Amendment of Deeds of Trust between the Covina Housing

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Authority and the owner(s) for property located at 221 W. Zinfandel Drive, Unit 29, Covina.

CC 6. Request to Adopt Resolution CC 2025-110 and Approve Updates to the Covina Residential Rehabilitation Grant/Loan Program Handbook for the Administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program
83 Staff Recommendation:

Approve Updates to the Covina Residential Rehabilitation Grant/Loan Program Handbook (Handbook) for administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program; and

1. Adopt Resolution CC 2025-110 Approving the Covina Residential Rehabilitation Grant/Loan Program Handbook (Program Policy Manual) for administration of Community Development Block Grant (CDBG) Residential Rehabilitation Program.

2. CC 7. Covina Police Department Parking Lots Slurry Seal Project – Project No.

F2601 – Final Acceptance and Filing Notice of Completion 181
Staff Recommendation:

1. Accept the work performed by FS Contractors, Inc; and Authorize the City Clerk to file a Notice of Completion for the Covina Police Department Parking Lots Slurry Seal Project – Project No.

F2601.

2. CC 8. Miscellaneous Concrete Repair Project – Project No. P2601 – Final Acceptance and Filing Notice of Completion
185
Staff Recommendation:

1. Accept the work performed by CJ Concrete Construction, Inc.; Authorize the City Clerk to file a Notice of Completion for the Miscellaneous Concrete Repair Project – Project No. P2601; and

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

3. CC 9. Award of Contract to Sky JTC Corporation (dba Sky Painting) in the Amount of $53,371.80 for the the Miscellaneous Facilities Painting Project 191
Staff Recommendation:

Authorize the City Manager to execute an Agreement between the City of Covina and Sky JTC Corporation for the Miscellaneous Painting Project; and

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

2. CC 10. 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
219
Staff Recommendation:

Approve and Authorize the City Manager to execute an amendment and all related documents to the Agreement between the City of Covina

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(“City) and Jennifer Manlove doing business as Hip Hound (“Participant”) for the Business Assistance Job Creation Program; Authorize the City Manager or his designee to execute all documents related to the Business Assistance Job Creation Program.

2. CC 11. Traffic Signal Battery Backup Installation Project – Project No. T2603 – Award of Contract to Crosstown Electrical & Data, Inc. for an Amount of $245,395
225
Staff Recommendation:

Approve plans and specifications for the Traffic Signal Battery Backup Installation Project – Project No. T2603;

1. 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;

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

3. 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

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

5. CC 12. Adoption of Ordinance 25-12 Amending Chapters 9.54 and 9.48 of Title 9 of the City of Covina Municipal Code
285
Staff 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." CC 13. Miscellaneous Concrete Repair Project – Project No. P2601 – Final Acceptance and Filing Notice of Completion
297
Staff Recommendation:

1. Accept the work performed by CJ Concrete Construction, Inc.; Authorize the City Clerk to file a Notice of Completion for the Miscellaneous Concrete Repair Project – Project No. P2601; and

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

3. CC 14. Covina Housing Authority Annual Report FY 24-25 303 Staff Recommendation:

Receive and file the report.

CC 15. First Amendment to Agreement between the City of Covina and SiteRep 329

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Construction Services, Inc. for Tenant Improvements at 401 N. Citrus Avenue Staff 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.

CC 16. Confirm and Approve City Council’s Revisions to Various Boards and Commissions Appointments
357
Staff Recommendation:

Approve the City Council’s appointments to various boards and commissions.

CC 17. Authorization to Establish an Account Clerk I/II Position to Enhance Operational Efficiency Within the Water Utility Billing Department 359
Staff Recommendation:

That the City Council authorize the addition of an Account Clerk I/II classification in the Finance Department for water utility billing customer service functions.

CC 18. Approval of Part-Time Salary Range Adjustments Subject to Minimum Wage and Revised Paid Sick Leave Policy for Part-Time Employees 361
Staff Recommendation:

Approve salary range adjustments for classifications affected by the State mandated minimum wage increases effective January 1, 2026, as per Labor Code Section 1182.12(c)(3)(A).

CC 19. Allocating Unallocated FY 25-26 Community Development Block Grant (CDBG) Funds to the "Residential Rehabilitation Program", “Downtown Neighborhood Business Workforce Augmentation Program”, and “Microenterprise Co-Work Scholarship Program”
367
Staff Recommendation:

Adopt Resolution CC 2025-113, Authorizing and Increase to the FY 25-26 Community Development Block Grant for the "Residential Rehabilitation Program" Project D96164-25, “Downtown
Neighborhood Business Workforce Augmentation Program” Project 602621-25, and “Microenterprise Co-Work Scholarship Program” Project 602620-24, and Amending the FY 2025-2026 Community Development Budget to reflect these changes; and

1. Authorize the City Manager or his designee to execute documents related to the FY 2025-2026 CDBG funds.

2. CC 20. Second Amendment to the Exchange Agreement between Bently Real Estate, LLC and the City of Covina for the Exchange of City Right-of-Way and for the Lease of 401 N. Citrus Avenue
375
Staff Recommendation:

Authorize the City Manager to execute a Second Amendment to the Exchange Agreement and make any minor, non-substantive changes to the amendment as needed prior to execution.

PUBLIC HEARINGS
PH 1. Adoption of Urgency Ordinance 25-11 437
Staff Recommendation:

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Request the City Council adopt Ordinance 25-11, an urgency ordinance, establishing a moratorium on “Short-Term Rentals” and “Home Experience Sharing” Uses within the City, for a period of 45 days, expiring December 5, 2025.

NEW BUSINESS
NB 1. Code Cares Pilot Program 473
Staff Recommendation:

Adopt Resolution CC 2025-112 authorizing an overgrown vegetation pilot program managed by the Code Enforcement Division.

NB 2. November 4, 2025, Statewide Special Election Information Presentation

ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, November 4, 2025, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

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1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT

AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING

AUTHORITY JOINT MEETING

MINUTES
September 2, 2025, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember John C. King
Mayor/Chair Victor Linares
Councilmembers Absent: Councilmember Patricia Cortez
Mayor Pro Tem/Vice-Chair Hector Delgado
Staff Present: City Clerk Drew Aleman (Elected Member)
City Treasurer Neil Polzin (Elected Member)
City Manager Chris Marcarello
City Attorney Kevin Ennis
Community Development Director/Deputy City Manager Brian Lee Parks & Recreation/Library Services Director Lisa Evans Public Works Director Rafael M. Fajardo
Deputy City Manager Angel Carrillo
Chief Deputy City Clerk Fabian Velez
Finance Director Theresa Franke
_____________________________________________________________________

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2 JOINT MEETING—CLOSED SESSION 6:30 PM
CLOSED SESSION – CANCELLED DUE TO A LACK OF QUORUM
JOINT MEETING—OPEN SESSION 7:30 PM

CALL TO ORDER
Mayor Linares called the Council/Agency/Authority meeting to order at 7:34 p.m. with Councilmember Allen, Councilmember King, and Mayor Linares present.

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by members of Boy Scout Troop 461.

Boy Scout Troop Master Lorenzo B. thanked the City Council for their recognition, informed the community of the recent project completed by a potential Eagle Scout, reiterated the Scout's support for the community, and provided certificates to the Boy Scouts present.

INVOCATION
Given by Covina Police Chaplain Steve Martinez.

APPROVAL OF AGENDA
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the agenda as presented.

Approved (3 to 0); Cortez & Delgado Absent

PRESENTATIONS
A. SGVCOG President's Introduction
San Gabriel Valley Council of Governments (SGVCOG) President Ed Reese introduced himself to the City Council and provided a presentation on the recent services and accomplishments of the SGVCOG.

B. Chiari Malformation Awareness Month
Neika Montes, Author and Chiari Malformation Advocate, provided information on Chiari Malformation, her experience with the condition, and the recently introduced "Light Up for Chiari" awareness campaign.

C. Introduction of the Immigration Resource Center
Jonathan Fung, Director of Legal Services for the Immigration Resource Center of San Gabriel Valley (IRCSGV), provided background on the organization and the services provided.

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3 CLOSED SESSION REPORT
City Attorney Ennis announced that there is no reportable action as the closed session meeting was not held.

PUBLIC COMMENTS
Dr. Danny Kim, Superintendent of Charter Oak Unified School District, thanked the City for their partnership in helping place banners to recognize recently graduated high school students.

Joseph Roybal requested assistance in being able to obtain an overnight parking permit.

Richard Enriquez raised concerns about the habitual speeding taking place on Cypress Street during the evening hours and requested that the City take additional measures to combat its dangers.
420 Mistress discussed issues with the inability of immigrants to be able to utilize Governor Newsom's direction to be allow non-citizens to become police officers, noted the good start in support efforts with the IRCSGV's presentation but requested the City Council do more, and provided a personal story of having received assistance. 42 USC § 1983 commented on his dissatisfaction with the SGVCOG, efforts prioritizing support for immigrants over those experiencing homelessness, actions by elected officials at multiple levels, and lack of immigration enforcement in the past.

Armando Novelo waived the opportunity to provide comments.

Cindy (No Last Name) stated satisfaction with the IRCSGV presentation and requested that the City also allocate additional funds to the issue, prohibit the use of masks by federal agents, require clear identification from federal agents on duty, confirm warrants from agents enforcing immigration, join lawsuits pertaining to the current practices of immigration enforcement, and provide financial aid to those affected by immigration efforts.

Uriel Delgadillo-Ulloa demanded accountability, transparency, and integrity, from the Covina Police Department, requested the release of records pertaining to his arrest, and gave the City Council notice of additional actions that can be taken.

Susan Zermeno requested increased transparency for public hearing items by using additional methods of noticing and the activation of cooling centers for those unable otherwise unable to be sheltered from the heat.

Dr. Johnson acknowledged the Covina Police Department for their efforts with a nearby recent car burglary, the recent Coffee with a Cop event, and provided suggestions to improve the event in the future. She also spoke about her attendance and conversation at another Coffee with a Cop event with the Los Angeles Sheriff’s Department and what the City of Covina may be able to do to improve with communication.

Neil Polzin requested the City allocate additional financial resources towards supporting communities affected by immigration enforcement and spoke about the issues of gerrymandering.

Dr. Bri thanked Councilmember King and Police Chief Walczak for taking time to meet recently, requested that the City Council return discussion regarding the public comment time limit, mentioned suggestions to increase the open door policy for aid, suggested the City examine implementing a dog park at Covina Park, requested an update for the four-way stop at Fourth Ave.

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4 and Badillo St., and informed the City Council of concerns with the products sold at one of the recently-approved cannabis retail shops.

Ginny Lane thanked the Covina Police Department for keeping the community safe, alerted the City to a tree branch that could potentially be dangerous, and mentioned a book written about Covina's history.

Mike Aguilar provided comments on his position on immigration enforcement, Assembly Bill AB 805, Senate Bill SB627, and the City's jurisdiction in the matter.

Ric Brannen raised concerns with Continued Business item CB 1 and the impacts to patrons of the Senior Center and possible precedent.

Eloise Luevanos expressed support for Consent Calendar item CC 6.

COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen recognized recently deceased non-profit founder Paul Avila with a brief biography, provided a certificate of recognition to the Avila family, and allowed Delia Avila, Paul's mother, to provide information on the future of Pauly's Project.

Councilmember King and Mayor Linares thanked the Avila family for their continued support for those in need.

Mayor Linares also informed the community of upcoming events including: Rocktober, hosted by the Covina Downtown Merchants Association on October 4, 2025, in the City Hall parking lot; National Night Out, hosted by the Covina Police Department on October 7, 2025, at Heritage Park; and the start of the Covina Library's Cover-to-Cover Reading Program, awarding kids aged four to twelve a burger from In-N-Out for reading 5 books or 300 minutes. He also encouraged the community to check out the newest edition of Covina Today.

CITY MANAGER COMMENTS
City Manager Marcarello requested that the City Council consider postponing Public Hearing item PH 3 to October 21, 2025, due to the inability to adopt an urgency ordinance with the present number of City Councilmembers.

CONSENT CALENDAR
CC 1. Minutes
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the Minutes of the July 15, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (3 to 0); Cortez & Delgado Absent
CC 2. Payment of Demands
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve Payment of Demands in the amount of $7,345,237.23.

Approved (3 to 0); Cortez & Delgado Absent

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5 CC 3. City of Covina Investment Report for Month Ended July 31, 2025 Motion made by: Councilmember King
Seconded by: Councilmember Allen
Receive and File.

Approved (3 to 0); Cortez & Delgado Absent
CC 4. Pilot Solar Street Light Program Project – Project No. P2514 – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember King
Seconded by: Councilmember Allen

1. Accept the work performed by Green Giant Landscape, Inc.; and

2. Authorize the City Clerk to file a Notice of Completion for the City-Wide Solar Street Light Pilot Program Project – Project No. P2514.

Approved (3 to 0); Cortez & Delgado Absent
CC 5. Written Report for Urgency Ordinance 25-04 Pursuant to Government Code Section 65858 (d)
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Receive and file the written report describing the measures taken to alleviate the conditions that led to the adoption of the urgency ordinance.

Approved (3 to 0); Cortez & Delgado Absent
CC 6. Speed Hump Installation Project – North Larkin Drive between Badillo Street and San Bernardino Road
Motion made by: Councilmember King
Seconded by: Councilmember Allen

1. Approve Recommendation from the Traffic and Mobility Advisory Commission for the installation of speed hump on North Larkin Drive between Badillo Street and San Bernardino Road; and

2. Award a Minor Construction and Maintenance Agreement to FS Contractors, Inc. as the lowest responsive, responsible bidder in an amount not-to-exceed $22,950 and authorize the City Manager, or his designee, to execute the Agreement.

Approved (3 to 0); Cortez & Delgado Absent
CC 7. HAWK Traffic Beacon Installation Project – Project No. T2601 – Award of Contract to PTM General Engineering Services, Inc. for an Amount of $298,998
Motion made by: Councilmember King
Seconded by: Councilmember Allen

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6 1. Approve plans and specifications for the HAWK Traffic Beacon Installation Project – Project No. T2601;

2. Award a contract for the HAWK Traffic Beacon Installation Project – Project No. T2601 to PTM General Engineering Services, Inc. as the lowest responsive and responsible bidder in an amount of $298,998 and authorize the City Manager to execute the contract;

3. Authorize a project contingency amount of $30,000 (approximately 10% of contract) for any unforeseen construction expenses;

4. Approve a Professional Services Agreement (PSA) between the City of Covina and Siterep Construction Services, Inc. for Inspection Services in the amount of $50,400 and authorize the City Manager to execute the PSA; and

5. Approve Resolution CC 2025-102 appropriating $150,000 from available Proposition C Fund – Fund Balance for use towards the project.

Approved (3 to 0); Cortez & Delgado Absent
CC 8. Civic Center Properties Boundary Survey and Master Plan – Project No.

F2602 – Award of Contract for Civil Engineering Services to Elie Farah, Inc. for an Amount of $38,900
Motion made by: Councilmember King
Seconded by: Councilmember Allen

1. Award a Professional Services Agreement (PSA) for the Covina City Hall Feasibility Study Master Plan Project for Civil Engineering Services to Elie Farah, Inc. as the responsive and responsible bidder in the amount of $38,900 and authorize the City Manager to execute the PSA; and

2. Establish a 10% contingency allowance of $3,890 for additional services, if needed.

Approved (3 to 0); Cortez & Delgado Absent
CC 9. Resolution Accepting Metro TOC TAP Award and Authorizing the City Manager to Execute Required Documents for the Covina Town Center Pedestrian Bridge Feasibility and Community Engagement Program Motion made by: Councilmember King
Seconded by: Councilmember Allen
Adopt Resolution CC 2025-103 Amending the FY26 Capital Improvement Program Budget to accept $150,000 in reimbursable fund and authorizing the City Manager to execute any/all documentation required by LA Metro for the grant funded program.

Approved (3 to 0); Cortez & Delgado Absent
CC 10. Fourth Avenue Water Main Replacement Project – Project No. W2601 – Award of Contract to Stephen Doreck Equipment Rentals, Inc. in the amount of $624,440
Motion made by: Councilmember King
Seconded by: Councilmember Allen

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7 1. Approve plans and specifications for the Fourth Avenue Water Main Replacement Project – Project No. W2601;

2. Award a Contract for the Fourth Avenue Water Main Replacement Project – Project No. W2601 to Stephen Doreck Equipment Rentals, Inc as the lowest responsive and responsible bidder in the amount of $624,440 and authorize the City Manager to execute the contract;

3. Authorize a project contingency amount of $150,000 (approximately 26%) for any unforeseen construction expenses; and

4. Award a Professional Services Agreement to Siterep Construction Services, Inc. for a not-to-exceed amount of $63,000 in order to conduct construction inspection services and authorize the City Manager to execute the contract.

Approved (3 to 0); Cortez & Delgado Absent
CC 11. Amendment to Professional Services Agreement between the City of Covina and Norman A. Traub & Associates, LLC for Investigations Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve Amendment No. 3 to the agreement between Norman A. Traub & Associates, LLC and the City of Covina for investigations and authorize the City Manager to execute the amendment.

Approved (3 to 0); Cortez & Delgado Absent
CC 12. Confirm and Approve City Council’s Appointment to the Parks & Recreation Commission
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the City Council’s appointment to Parks & Recreation Commission.

Approved (3 to 0); Cortez & Delgado Absent
CC 13. Purchase Order Authorization – Purchase of Trash Receptacles for City Parks – FY 2025/2026
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Authorize the City Manager or his designee to approve a Purchase Order in the amount of $34,927.96 with Highland Products Group, LLC dba The Park Catalog to purchase new trash receptacles for City parks.

Approved (3 to 0); Cortez & Delgado Absent
CC 14. City-Wide Alleyway Resurfacing Project – Project No. P2605 – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember King
Seconded by: Councilmember Allen

1. Accept the work performed by G.M. Sager Construction Co., Inc.; and

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8 2. Authorize the City Clerk to file a Notice of Completion for the City-Wide Alleyway Resurfacing Project – Project No. P2605.

Approved (3 to 0); Cortez & Delgado Absent

PUBLIC HEARINGS
PH 1. City-Initiated Zone Change (ZCH) 25-001 to Change the Official Zone Map of the City of Covina for the Property Located at 1261 N. Azusa Avenue – APN:
8409-019-030
Mayor Linares opened the public hearing.

The agenda report was provided by Planning Manager Mercy Lugo.

Planning Manager Lugo responded to Councilmember King's request for clarification on the subject property location and the need to change the zoning on the parcel.

There were no public comments.

Mayor Linares closed the public hearing.

Motion made by: Councilmember Allen
Seconded by: Councilmember King
Waive full reading and introduce Ordinance 25-09 entitled, “An Ordinance of the City Council of the City of Covina, California, approving a zone change (ZCH) 25- 001, to change the zoning classification for a duel-zoned parcel from C-2 Commercial Zone (Neighborhood Shopping Center) to C-4 Commercial Zone (Highway), consistent with the General Plan and Land Use Designation of General Commercial, and making a determination of exception under CEQA, for the property located at 1261 N. Azusa Avenue – APN: 8409-019-030.” Approved (3 to 0); Cortez & Delgado Absent
PH 2. Introduction of Ordinance 25-10
Mayor Linares opened the public hearing.

The agenda report was provided by Planning Consultant Nancy Fong.

Questions from the City Council included Los Angeles County Fire Department's progress on being able to approve battery storage systems, other parcels eligible for similar projects, the purpose of requiring a CUP for similar projects, and whether the battery storage system can be used as a backup during black outs.

Neil Polzin expressed his support for the item with less restrictions and requested Councilmember King abstain from the item.

Mayor Linares closed the public hearing.

Motion made by: Councilmember Allen
Seconded by: Councilmember King
Waive full reading and introduce Ordinance 25-10 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zoning Code

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9 Amendment (ZCA) 25-2 amending Chapter 17.04 Definitions and Chapter 17.54 M-1 Light Manufacturing Zone of Title 17 (Zoning) of the Covina Municipal Code, to add a Definition of Battery Energy Storage System Facility and as a Conditionally Permitted Use in M-1 Zone, Repealing Ordinance 25-04 a Moratorium on Battery Energy Storage System Facility, and Making a Determination of Exemption from the California Environmental Quality Act (CEQA)”.

Approved (3 to 0); Cortez & Delgado Absent
PH 3. Adoption of Urgency Ordinance 25-11
Request the City Council adopt Ordinance 25-11, entitled “An Urgency Ordinance of the City Council of the City of Covina, California, establishing a Moratorium on the Use of Residential Property for Short Term Rental and Home Experience Sharing, Declaring the Urgency Thereof, and Making a Determination of Exemption Under the California Environmental Quality Act” for a period of 45 days, expiring October 17, 2025.

The item was rescheduled to the October 21, 2025, regular City Council Meeting.

CONTINUED BUSINESS
CB 1. Pilot Overnight Parking Program at Sunkist Park/Covina Senior Center The agenda report was provided by Planning Manager Lugo.

Questions and discussion from the City Council included park hours of operation, impact to patrons of the park and Senior Center, how spots will be identified, and qualifications by residents to be eligible for the parking permits.

Motion made by: Councilmember Allen
Seconded by: Councilmember King
That the City Council authorize a pilot overnight parking program for up to fifteen (15) vehicles between the hours of 8:00 p.m. and 7:30 a.m. at the Sunkist Park/Covina Senior Center Parking Lot.

Approved (3 to 0); Cortez & Delgado Absent
CB 2. Proposed Legislation Relating to Immigration Enforcement The agenda report was provided by City Manager Marcarello.

Discussion included the formation of an ad-hoc committee to further examine the issue and the position of the Los Angeles County Police Chiefs Association and Cal Chiefs.

That the City Council receive/file this report and provide further direction, as needed.

Motion made by: Councilmember King
Seconded by: Councilmember Allen

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10 Form an Ad-hoc committee to examine the topic of immigration enforcement and appoint Councilmember Cortez and Mayor Pro Tem Delgado to said Ad-hoc committee.

Approved (3 to 0); Cortez & Delgado Absent

ADJOURNMENT
At 9:33 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, September 16, 2025, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. ________________________________
Fabian Velez, Chief Deputy City Clerk
____________________________
Victor Linares, Mayor/Chair

Page 18 of 476 ends

1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT

AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING

AUTHORITY JOINT MEETING

MINUTES
September 16, 2025, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember Patricia Cortez
Councilmember John C. King
Mayor Pro Tem/Vice-Chair Hector Delgado
Mayor/Chair Victor Linares
Staff Present: City Clerk Drew Aleman (Elected Member)
City Treasurer Neil Polzin (Elected Member)
City Manager Chris Marcarello
City Attorney Kevin Ennis
Community Development Director/Deputy City Manager Brian Lee Public Works Director Rafael M. Fajardo
Assistant City Manager Angel Carrillo
Chief Deputy City Clerk Fabian Velez
Finance Director Theresa Franke
Staff Absent: Parks & Recreation/Library Services Director Lisa Evans _____________________________________________________________________

Page 19 of 476 ends

2 JOINT MEETING—CLOSED SESSION 6:30 PM

CALL TO ORDER
Mayor Pro Tem Delgado called the Council/Agency/Authority meeting to order at 6:31 p.m. with Councilmember Cortez, Councilmember King, and Mayor Pro Tem Delgado present.

PUBLIC COMMENTS - CLOSED SESSION
Neil Polzin commented regarding perceived conflicts of interest regarding approved cannabis retail distributors.

CLOSED SESSION
The City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to closed session for the following:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Paragraph (1) of Subdivision (d) of Section 54956.9)
Covina Responsible and Compliant Retail, LLC v. City of Covina, et al.

RECESS
Mayor Pro Tem Delgado recessed the Council to Closed Session at 6:35 p.m.

JOINT MEETING—OPEN SESSION 7:30 PM

RECONVENE AND CALL TO ORDER
Mayor Linares called the Council/Agency/Authority meeting to order at 7:33 p.m. with all Councilmembers present.

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.

INVOCATION
Given by Covina Police Chaplain Chuck Cannizzaro.

APPROVAL OF AGENDA
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the agenda as presented.

Approved (5 to 0)

Page 20 of 476 ends

3 PRESENTATIONS
A. DAR Constitution Week
Mayor Linares presented a proclamation declaring September 17 to September 23, 2025, as Constitution Week in the City of Covina to Colleen Dragovich, Regent of the Covina Chapter of Daughters of the American Revolution. Ms. Dragovich provided background on the organization and invited members of the community to join.

B. National Night Out Presentation
Covina Police Captain Ryan Davis provided information on the event, thanked groups and organizations who partnered with the Police Department for the event, and invited the community to join the Police Department for National Night Out on October 7, 2025, from 5:00 p.m. to 8:00 p.m., at Heritage Park.

C. Pink Patch Project
Police Captain Mike Robison provided background on the Pink Patch Project and informed the community on how to get involved.

D. Hispanic Heritage Month Proclamation
Mayor Linares presented a proclamation honoring Hispanic Heritage Month to Covina Library Board of Trustees President Danaee Amaya. President Amaya provided words on Hispanic heritage.

E. Recognition of Local Youth Artist Sylar Segovia
Mayor Linares presented a certificate recognizing local artist Sylar Segovia on the recognition received from her artwork. Ms. Segovia thanked the City and those who have helped her in her art journey.

CLOSED SESSION REPORT
City Attorney Ennis announced that no reportable action was taken.

PUBLIC COMMENTS
Mike (No Last Name) expressed his support for Ordinance 25-12, increased stance on crime, and continued support for public safety.

Dr. Johnson provided ideas to improve the Hispanic Heritage Month Celebration in upcoming years, requested information regarding the role of the Elected City Treasurer, and stated issues with past tax filings of Project 29:11.

Susan Zermeno commented on Consent Calendar item CC 11, suggested increased communication from the City regarding public events, and also provided suggestions for future Hispanic Heritage Month Celebrations.

Dr. Bri provided opinions on Consent Calendar item CC 11 and the increasing of the public comment timer to five (5) minutes, and requested further elaboration on New Business item NB 1 in regards to treatment of unhoused individuals.

Page 21 of 476 ends

4 Neil Polzin recommended items be separated from the Consent Calendar for additional discussion including item CC 11, revisiting City Council policies approved in June of 2025; CC 7, cancelling the regular City Council meeting of October 7, 2025; CC 10, allocating funds for a proposed mural and recommending alternative use of funds; and items CC 13 and 16, relating to issues regarding water issues and a perceived conflict of interest.

Sarah Williams requested further information on New Business item NB 1, spoke on the need for alternative forms of enforcement for unhoused individuals, and the impact of increased rents for small businesses.

COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen called the Porsche Club of America San Gabriel Valley Region members in the audience to the podium, who introduced the club and provided background on the club and events and presented an award to the City as a thank you for hosting a recent event.

Councilmember King stated his excitement for National Night Out and Rocktober.

Councilmember Cortez gave a shout out to the Library Board of Trustees and its President Denaee Amaya for bringing back multi-cultural celebration events. She also clarified her position in a water agency and the lack of a conflict of interest with items on the Consent Calendar.

Mayor Pro Tem Delgado gave a shout out to Police Chief Walczak, Police Captain Ryan Davis and Mike Robison, and the Pink Patch Team for their work on the Pink Patch Project.

Mayor Linares highlighted Consent Calendar item CC 9, a grant funded partnership with the San Gabriel Valley Council of Governments to provided mental health and case management services to homeless individuals in response to calls for service. He also informed the community of local events including: Rocktoberfest, hosted by the Downtown Merchants Association on October 4, 2025, from 4 p.m. to 9 p.m. in the City Hall parking lot; National Night Out, hosted by the Covina Police Department on October 7, 2025, from 5 p.m. to 8 p.m. at Heritage Park; and the Cover-toCover reading program managed by the Covina Library.

CITY MANAGER COMMENTS
City Manager Marcarello had no comments.

CONSENT CALENDAR
CC 1. Minutes
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Approve the Minutes of the August 5, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

Approved (5 to 0)
CC 2. Payment of Demands
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

Page 22 of 476 ends

5 Approve Payment of Demands in the amount of $2,557,962.26.

Approved (5 to 0)
CC 3. Approval and Adoption of the City of Covina’s 2025 Cross-Connection Control Plan
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Approve Resolution CC 2025-104 adopting the City of Covina’s 2025 CrossConnection Control Plan as required by the State Water Resources Control Board.

Approved (5 to 0)
CC 4. Adoption of Ordinance 25-09
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Adopt Ordinance 25-09 entitled, “An Ordinance of the City Council of the City of Covina, California, approving a zone change (ZCH) 25-001, to change the zoning classification for a duel-zoned parcel from C-2 Commercial Zone (Neighborhood Shopping Center) to C-4 Commercial Zone (Highway), consistent with the General Plan and Land Use Designation of General Commercial, and making a determination of exception under CEQA, for the property located at 1261 N. Azusa Avenue – APN: 8409-019-030.”
Approved (5 to 0)
CC 5. Adoption of Ordinance 25-10
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Adopt Ordinance 25-10 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zoning Code Amendment (ZCA) 25-2 amending Chapter 17.04 Definitions and Chapter 17.54 M-1 Light Manufacturing Zone of Title 17 (Zoning) of the Covina Municipal Code, to add a Definition of Battery Energy Storage System Facility and as a Conditionally Permitted Use in M-1 Zone, Repealing Ordinance 25-04 a Moratorium on Battery Energy Storage System Facility, and Making a Determination of Exemption from the California Environmental Quality Act (CEQA)”.

Approved (5 to 0)
CC 6. Amendment No. 4 to the Professional Services Agreement between the City of Covina and Liebert Cassidy Whitmore for Legal Services
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Approve Amendment No. 4 to the agreement between Liebert Cassidy Whitmore and the City of Covina for legal services and authorize the City Manager to execute the amendment.

Approved (5 to 0)

Page 23 of 476 ends

6 CC 7. Request to Cancel the Regular City Council Meeting of October 7, 2025 Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
That the City Council consider cancelling the regular scheduled City Council Meeting of October 7, 2025.

Approved (5 to 0)
CC 8. Extension to Maintenance Agreement between the City of Covina and Aclara Technologies LLC for Automated Water Reading (AMR) Software Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Authorize the City Manager to Execute an Extension to the Maintenance Agreement between the City of Covina and Aclara Technologies LLC for one (1) additional year in the amount of $33,384.

Approved (5 to 0)
CC 9. Authorize the Execution of the Memorandum of Agreement between the City of Covina and the San Gabriel Valley Council of Governments for Participation in the San Gabriel Valley Crisis Assistance Response & Engagement (SGV CARE) Program
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

1. Approve participation in the San Gabriel Valley Council of Governments San Gabriel Valley Crisis Assistance Response & Engagement (SGV CARE) Program through March 31, 2028 with the option to extend upon mutual agreement of both parties;

2. Authorize the City Manager or his designee to execute the Memorandum of Agreement or related documents.

Approved (5 to 0)
CC 10. Agreement between the City of Covina and AQMNI LLC for Creation of a Mural at 123 N. Citrus Avenue
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

1. Authorize the execution of an Agreement between the City of Covina and AQMNI LLC in an amount not-to-exceed $60,000 for the creation of a mural on the northern external wall of 123 N. Citrus Avenue, and authorize the City Manager to execute the Agreement and other pertinent documents, and take such actions as are necessary to administer the Agreement; and

2. Authorize the execution of a License Agreement for the use of the building façade for the purpose of installing a public art mural installation at 123 N.

Citrus Avenue, which faces a public alley.

Approved (5 to 0)

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7 CC 12. Carryover of Encumbrances and Continuing Appropriations from Fiscal Year 2024-25 to Fiscal Year 2025-26 & Amending FY 24-25 Supplemental Law Enforcement Services Account (SLESA) Budget
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

1. Adopt Resolution CC 2025-107 approving the Carryover of Encumbrances and Continuing Appropriations from Fiscal Year 2024-25 to Fiscal Year 2025-26; and

2. Adopt Resolution CC 2025-108 Amending the FY24-25 SLESA Budget.

Approved (5 to 0)
CC 13. Covina Valley Water Company – Board of Directors Nominee Selection Process
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

1. Nominate the current Covina Valley Water Company Board of Directors to Represent the City of Covina; and

2. Designate the City Manager or his appointee to represent the City at the Annual Shareholder’s meeting on October 23, 2025.

Approved (5 to 0)
CC 14. City of Covina Investment Report for Month Ended August 31, 2025 Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Receive and File.

Approved (5 to 0)
CC 15. Amendment to the Agreement between the City of Covina and Dunwright Painting and Coatings for Interior Painting as Tenant Improvements at 401 N. Citrus Avenue
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Approve the First Amendment between the City of Covina and Dunwright Painting and Coating and Authorize the City Manager or his designee to and execute all related documents.

Approved (5 to 0)
CC 16. Resolution CC 2025-105, Nominating Azusa Mayor Robert Gonzales to Represent Cities with Prescriptive Water Pumping Rights as a Member on the Board of the San Gabriel Basin Water Quality Authority
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado

Page 25 of 476 ends

8 Adopt Resolution CC 2025-105, nominating Azusa Mayor Robert Gonzales to represent Cities with Prescriptive Water Pumping Rights on the Board of the San Gabriel Basin Water Quality Authority.

Approved (5 to 0)
CC 17. Budget Amendment Resolution for the Purchase of Window Coverings for the Covina Senior and Community Center
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Adopt Resolution CC 2025-106 for the purchase of window coverings for the Covina Senior and Community Center.

Approved (5 to 0)

CONSENT CALENDAR ITEM PULLED FOR DISCUSSION
CC 11. Review of Updated City Council Policies
Staff Recommendation:

That the City Council receive/file this report and provide further direction, as needed.

Councilmember King stated his support for returning the public comment time limit to five (5) minutes.

Councilmember Allen, Mayor Pro Tem Delgado, and Councilmember Cortez expressed their support for remaining at the 3-minute time limit citing the streamlining of conducting business, similar practices in other agencies, and availability and encouragement to meet individually outside of City Council meetings.

Mayor Linares noted he can see both sides of the argument, noted previous productive meetings with members of the community outside of City Council meetings, and proposed an alternative of a 4-minute public comment time limit.

Councilmember King moved to increase the public comment time limit to four (4) minutes, the motion died due to a lack of a second.

Motion made by: Councilmember Allen
Seconded by: Mayor Pro Tem Delgado
That the City Council receive and file this report with no changes to the current policies.

Approved (4 to 1); King No

NEW BUSINESS
NB 1. Introduction of Ordinance 25-12 Amending Chapters 9.54 and 9.48 of Title 9 of the City of Covina Municipal Code
The agenda report was provided by Police Chief Walczak.

Page 26 of 476 ends

9 Questions and discussion included the different options for social services that will be exhausted before removal, compliments to the Covina Police Department for their partnerships on various organizations to provide social services, the need for additional resources above the local level to social service providers, the process the Covina Police Department uses to determine the need for enforcement, and concerns over the impact of large regional events in the near future.

Motion made by: Councilmember Allen
Seconded by: Councilmember King
Waive full reading and introduce 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."
Approved (5 to 0)

ADJOURNMENT
At 8:55 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, October 21, 2025, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. ________________________________
Fabian Velez, Chief Deputy City Clerk
______________________________
Victor Linares, Mayor/Chair

Page 27 of 476 ends

Page 28 of 476 ends

CITY OF COVINA AND

SUCCESSOR AGENCY TO THE

COVINA REDEVELOPMENT AGENCY

AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: October 21, 2025
Title: Payment of Demands
Presented by: Theresa Franke, Director of Finance
Recommendation: Approve Payment of Demands in the amount of $7,543,045.77.

EXECUTIVE SUMMARY:

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

Accounts Payable Warrants September 1, 2025 – September 30, 2025 CITY checks/EFTs $ 5,208,066.87
CITY payroll $ 2,288,254.11
CITY voids $ (28,504.14)
Worker’s Comp $ 75,158.85
$ 7,542,975.69
SACRA checks/EFTs $ 70.08
SACRA payroll $ 0.00
$ 70.08
TOTAL checks/EFTs $ 7,543,045.77
DISCUSSION:

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

FISCAL IMPACT:

Sufficient funding is available and the related costs are included in the Fiscal Year 25/26 budget.

Respectfully submitted,

Page 29 of 476 ends

Page 30 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
6048 08/27/2025 487 CalPERS Educational Forum 2023 350.00 6049 09/11/2025 4003 MidAmerica 1,868.86
6050 09/08/2025 1364 HOME DEPOT CREDIT SERVICES 6,681.85 6051 09/25/2025 5207 PNC BANK NATIONAL ASSOCATION 732,389.20 6052 09/02/2025 5438 BMO 31,711.02
6053 09/25/2025 4003 MidAmerica 2,017.01
21011 09/11/2025 788 COVINA, CITY OF 53,333.87 *
21012 09/11/2025 789 COVINA-FSA, CITY OF 1,632.82
21013 09/11/2025 2033 NATIONWIDE RETIREMENT SOLUTIONS 29,952.78 21014 09/11/2025 788 COVINA, CITY OF 94.88 *
21015 09/11/2025 2033 NATIONWIDE RETIREMENT SOLUTIONS 7,875.00 21016 09/11/2025 487 CalPERS 100,033.56
21017 09/11/2025 487 CalPERS 6,982.43
21018 09/25/2025 788 COVINA, CITY OF 53,017.21 *
21019 09/25/2025 789 COVINA-FSA, CITY OF 1,632.82
21020 09/25/2025 2033 NATIONWIDE RETIREMENT SOLUTIONS 30,027.78 21021 09/25/2025 487 CalPERS 101,650.05
subtotal EFT/wires/direct deposits 1,161,251.14
Internal transfers - workers comp allocation - no net cash effect (106,445.96) * subtotal EFT/wires/direct deposits less Internal Transfers $1,054,805.18 128049 09/02/2025 788 CASH 3,000.00
128050 09/03/2025 44 ADAMSON INDUSTRIES 1,093.78
128051 09/03/2025 219 AT&T 750.00
128052 09/03/2025 254 AZUSA LIGHT & WATER 123.65
128053 09/03/2025 437 BURRO CANYON ENT INC 120.00
128054 09/03/2025 970 EDISON CO 569.49
128055 09/03/2025 970 EDISON CO 61,092.07
128056 09/03/2025 1361 HOLLIDAY ROCK CO INC 390.06
128057 09/03/2025 1437 INTER-CON SECURITY SYSTEMS INC 19,826.85 128058 09/03/2025 1933 MISSION LINEN SUPPLY 22.77
128059 09/03/2025 2329 PUENTE READY MIX INC 1,182.35
128060 09/03/2025 2345 QUILL 304.10
128061 09/03/2025 2415 REPUBLIC MASTER CHEFS 297.63
128062 09/03/2025 2444 RIO HONDO COLLEGE 925.00
128063 09/03/2025 2676 SMART AND FINAL IRIS CORP 377.54 128064 09/03/2025 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 188.23 128065 09/03/2025 2800 T MOBILE USA 380.76
128066 09/03/2025 2846 THOMAS, TERRI 850.50
128067 09/03/2025 2855 CHARTER COMMUNICATIONS 357.13
128068 09/03/2025 2958 USPS - POC ACCOUNT #8098154 1,125.40 128069 09/03/2025 2966 V & V MANUFACTURING 2,386.80
128070 09/03/2025 3004 VICTORY EXTERMINATING INC 80.00
128071 09/03/2025 3070 WEST COAST ARBORISTS INC 27,593.00 128072 09/03/2025 3139 YARY PHOTOGRAPHY 500.00
128073 09/03/2025 3235 COOK, SHAWNA 515.20
128074 09/03/2025 3823 JEEPERS CREEPERS EXTERMINATING 234.00 128075 09/03/2025 3929 BOOT BARN INC 2,240.62
128076 09/03/2025 3932 ARLENE D. MAR 112.00
128077 09/03/2025 3982 CAROL A CUGNO 461.84
128078 09/03/2025 3988 LANDSCAPE WAREHOUSE III 599.01
128079 09/03/2025 4065 VERIZON WIRELESS 706.76
Attachment A Page 1 of 8

Page 31 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128080 09/03/2025 4141 72 HOUR LLC 71,039.44
128081 09/03/2025 4332 ERIC ARROYO 1,050.00
128082 09/03/2025 4438 CALIFORNIA COMPUTER SCHOOLS, INC 75.00 128083 09/03/2025 4483 DALE A. GARRISON 455.00
128084 09/03/2025 4583 HSG Campaigns, LLC 5,110.00
128085 09/03/2025 4667 Ocean Blue Environmental Services, Inc. 11,093.32 128086 09/03/2025 4688 PCAM, LLC 43,639.36
128087 09/03/2025 4704 S & J Supply Company, Inc. 259.68 128088 09/03/2025 4714 CIR, Inc. 40,436.03
128089 09/03/2025 4719 O.S.T.S. Inc. 990.00
128090 09/03/2025 4764 UniFirst Corporation 575.41
128091 09/03/2025 4766 HASA, INC. 2,841.84
128092 09/03/2025 4814 PTM General Engineering Services, Inc. 315,280.49 128093 09/03/2025 4817 Weck Analytical Environmental Services, Inc. 217.00 128094 09/03/2025 4829 Alicia A. Flores 275.80
128095 09/03/2025 4833 Michael R. Hillmann 1,840.00
128096 09/03/2025 4835 ABBA TERMITE & PEST CONTROL, INC 125.00 128097 09/03/2025 4854 CEJ Engineers, Inc. 7,000.00
128098 09/03/2025 4880 Sulzer Electro-Mechanical Services (US) Inc. 170.17 128099 09/03/2025 4931 Antonio Castro Jr 2,583.28
128100 09/03/2025 4983 Ad Valorem Records,Inc. 3,434.10 128101 09/03/2025 5075 Amalia Q. Seresinghe 512.40
128102 09/03/2025 5109 SITEREP CONSTRUCTION SERVICES, INC. 40,360.00 128103 09/03/2025 5228 ODP BUSINESS SOLUTIONS, LLC 405.34 128104 09/03/2025 5269 CONTROL AIR ENTERPRISES LLC. 1,117.00 128105 09/03/2025 5412 COVINA ANIMAL HOSPITAL 363.93
128106 09/03/2025 5423 SUSAN T SCHOCK 274.40
128107 09/03/2025 5426 CLAREMONT TOYOTA 40,873.97
128108 09/03/2025 5435 CORE & MAIN LP 625.07
128109 09/03/2025 5562 SIDEPATH INC. 31,847.68
128110 09/03/2025 5603 KAYLEE L BARNITT 132.00
128111 09/03/2025 5611 LYNN GONZALEZ 42.88
128112 09/03/2025 5626 JENNIFER KOU 519.75
128113 09/03/2025 5629 MINUTEMAN PRESS COVINA 183.43
128114 09/03/2025 5641 ANTONIO IBARRA VEGA 94.50
128115 09/03/2025 5657 LUISMAN CASEROS 4,500.00
128116 09/03/2025 5688 CHRISTOPHER E. MEDINA 99.00
128117 09/03/2025 5696 MARY LOUISE WURTMAN REVOCABLE LIVING TRUST 10,780.00 128118 09/03/2025 5727 ANGELS BASEBALL LP 1,104.00
128119 09/03/2025 99999 AARON E ALARCON 69.77
128120 09/03/2025 99999 ALDO VALENZUELA 77.00
128121 09/03/2025 99999 ANNETTE GREEN 60.54
128122 09/03/2025 99999 AURORA PASCUAL 83.26
128123 09/03/2025 99999 AZUSENA MENA 48.55
128124 09/03/2025 99999 BOSHEN LI 53.78
128125 09/03/2025 99999 BRITTANY HODGES 25.69
128126 09/03/2025 99999 LAKISHA HILL 80.00
128127 09/03/2025 99999 MASTER ROOTER & PLUMBING INC 200.24 128128 09/03/2025 99999 MEHRSHAD KETABDAR 18.05
128129 09/03/2025 99999 MIKE MELINTE 83.00
128130 09/03/2025 99999 MIKE MELINTE 60.00
Attachment A Page 2 of 8

Page 32 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128131 09/03/2025 99999 STEVEN LONG 44.84
128132 09/03/2025 99999 TH BARRANCA II, LLC 8,500.00
128133 09/03/2025 99999 TH BARRANCA LLC 7,343.00
128134 09/03/2025 99999 TH COVINA BOWL LLC 6,807.00
128135 09/03/2025 99999 UNITED ONE HOME IMPROVEMENT 57.54 128136 09/10/2025 113 ALL CITY MANAGEMENT SVC 14,656.27 128137 09/10/2025 173 ANDY ZAMBRANO 600.00
128138 09/10/2025 189 AREA D OFFICE OF EMERGENCY SVC 4,028.00 128139 09/10/2025 219 AT&T 88.92
128140 09/10/2025 430 BUILDING ELECTRONIC CONTROLS 875.00 128141 09/10/2025 568 CAT SPECIALTIES INC 2,334.81
128142 09/10/2025 649 CINTAS CORP #693 440.28
128143 09/10/2025 692 CODE PUBLISHING COMPANY 780.02
128144 09/10/2025 706 COMMERCIAL DOOR CO INC 4,570.00
128145 09/10/2025 766 COVINA DISPOSAL CO 19,067.35
128146 09/10/2025 783 CITY OF COVINA WATER 732.70
128147 09/10/2025 821 CSB - CAROLE LINN 3,496.00
128148 09/10/2025 970 EDISON CO 90,791.92
128149 09/10/2025 1007 ENVISIONWARE, INC. 1,270.78
128150 09/10/2025 1055 FEDEX 8.95
128151 09/10/2025 1075 WEX BANK 282.43
128152 09/10/2025 1156 THE GAS COMPANY 1,375.49
128153 09/10/2025 1204 GOLDEN STATE WATER COMPANY 2,790.15 128154 09/10/2025 1204 GOLDEN STATE WATER COMPANY 217.59 128155 09/10/2025 1235 GRAINGER 1,603.60
128156 09/10/2025 1275 HAAKER EQUIPMENT CO 177.00
128157 09/10/2025 1277 CYNTHIA ESTRADA HAEBE 2,282.50
128158 09/10/2025 1361 HOLLIDAY ROCK CO INC 634.65
128159 09/10/2025 1401 INTERNATIONAL CODE COUNCIL INC 22.10 128160 09/10/2025 1505 JOHNNY'S POOL SERVICE 53.04
128161 09/10/2025 1561 KEYSTONE UNIFORM DEPOT 187.83
128162 09/10/2025 1614 LA CNTY FIRE DEPARTMENT 1,094,767.65 128163 09/10/2025 1614 LA CNTY FIRE DEPARTMENT 665.00
128164 09/10/2025 1617 REGISTRAR-RECORDER, COUNTY CLERK 20.00 128165 09/10/2025 1619 LA CNTY SHERIFF'S DEPT 745.60
128166 09/10/2025 1663 LAW ENFORCEMENT MEDICAL 2,450.00 128167 09/10/2025 1694 LEWIS ENGRAVING INC 215.48
128168 09/10/2025 1707 LIEBERT CASSIDY WHITMORE 4,814.75 128169 09/10/2025 1754 LOWE'S COMPANIES INC 1,930.67
128170 09/10/2025 1792 MANNING & KASS 32,847.35
128171 09/10/2025 1825 MASONIC HOMES OF CALIFORNIA 1,200.00 128172 09/10/2025 1860 SSD SYSTEMS 397.38
128173 09/10/2025 1895 MERRIMAC ENERGY GROUP 67,381.48
128174 09/10/2025 1924 MILLERS & ISHAMS 371.94
128175 09/10/2025 1933 MISSION LINEN SUPPLY 45.54
128176 09/10/2025 2027 NAPA AUTO PARTS 542.43
128177 09/10/2025 2541 SAN GAB BASIN WATER QUAL AUTH 2,843.34 128178 09/10/2025 2617 SGV ECONOMIC PARTNERSHIP 6,000.00 128179 09/10/2025 2619 SGV EXAMINER 1,391.50
128180 09/10/2025 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 207.08 128181 09/10/2025 2855 CHARTER COMMUNICATIONS 148.16
Attachment A Page 3 of 8

Page 33 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128182 09/10/2025 2926 TYLER TECHNOLOGIES INC. 11,739.52 128183 09/10/2025 3004 VICTORY EXTERMINATING INC 150.00 128184 09/10/2025 3023 VULCAN MATERIALS COMPANY 3,009.64 128185 09/10/2025 3052 WATERLINE TECHNOLOGIES INC 12,901.38 128186 09/10/2025 3070 WEST COAST ARBORISTS INC 10,350.00 128187 09/10/2025 3163 GENTRY BROTHERS INC 223,854.20
128188 09/10/2025 3796 RICHARDS, WATSON & GERSHON 73,130.80 128189 09/10/2025 3847 SCOT BRUCE 2,000.00
128190 09/10/2025 3988 LANDSCAPE WAREHOUSE III 151.42
128191 09/10/2025 4077 INTERWEST CONSULTING GROUP INC 19,080.50 128192 09/10/2025 4225 CORELOGIC SOLUTIONS, LLC 245.86
128193 09/10/2025 4350 RKA Consulting Group 29,055.00
128194 09/10/2025 4448 FS CONTRACTORS, INC. 57,171.00
128195 09/10/2025 4455 FRONTIER 10,756.98
128196 09/10/2025 4676 Hill Brothers Chemical Company 4,375.80 128197 09/10/2025 4704 S & J Supply Company, Inc. 464.92 128198 09/10/2025 4758 Emblems Inc 918.00
128199 09/10/2025 4765 AMC Modern IT 2,760.30
128200 09/10/2025 4766 HASA, INC. 735.92
128201 09/10/2025 4840 BONITA UNIFIED SCHOOL DISTRICT 351.20 128202 09/10/2025 4858 Prestine Uniforms, LLC 937.28
128203 09/10/2025 4928 Springstead & Associates, Inc. 4,000.00 128204 09/10/2025 4931 Antonio Castro Jr 1,847.45
128205 09/10/2025 4983 Ad Valorem Records,Inc. 799.44
128206 09/10/2025 5109 SITEREP CONSTRUCTION SERVICES, INC. 6,350.00 128207 09/10/2025 5117 Steam It All LLC 620.00
128208 09/10/2025 5123 Office Environments, Inc 22,938.91 128209 09/10/2025 5139 Crown Castle Fiber LLC 925.00
128210 09/10/2025 5186 DAYSMART SOFTWARE 796.47
128211 09/10/2025 5228 ODP BUSINESS SOLUTIONS, LLC 316.86 128212 09/10/2025 5233 RODENT PEST TECHNOLOGIES 283.90
128213 09/10/2025 5291 AMAZON CAPITAL SERVICES, INC 817.36 128214 09/10/2025 5371 LAUGH FACTORY COVINA LLC 32,500.00 128215 09/10/2025 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 21,418.73 128216 09/10/2025 5490 ROSS-CAMPBELL INC. 2,000.00
128217 09/10/2025 5508 ROADLINE PRODUCTS INC USA 6,179.44 128218 09/10/2025 5517 BATTERY CONNECTION INC. 434.38
128219 09/10/2025 5521 COMPRESSOR DESIGN AND SERVICES INC 1,425.00 128220 09/10/2025 5573 GUARDIAN ALLIANCE TECHNOLOGIES, INC. 130.00 128221 09/10/2025 5577 Bear Electrical Solutions, LLC 11,023.00 128222 09/10/2025 5580 ROLLINS, INC 147.00
128223 09/10/2025 5629 MINUTEMAN PRESS COVINA 1,390.27
128224 09/10/2025 5654 THE PRESTWICK GROUP INC. 4,367.40 128225 09/10/2025 5668 MARTIN LEASING CORPORATION 779.86 128226 09/10/2025 5711 SPECIALIZED ELEVATOR SERVICES, LLC 323.00 128227 09/10/2025 5715 BUDGET BLINDS OF LA VERNE 2,738.60 128228 09/10/2025 99999 CITY OF COVINA 55.80
128229 09/10/2025 99999 ELENA JUAREZ 50.35
128230 09/10/2025 99999 JOSE ANDRES BUENIDA TORRES 68.95 128231 09/11/2025 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 4,582.93 128232 09/11/2025 69 AFSCME District Council 36 687.50
Attachment A Page 4 of 8

Page 34 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128233 09/11/2025 775 COVINA POLICE ASSOCIATION 3,000.00 128234 09/11/2025 878 DELTA DENTAL OF CALIFORNIA 9,334.53 128235 09/11/2025 3795 PRE-PAID LEGAL SERVICES, INC 141.53 128236 09/11/2025 3846 CLEA 1,136.00
128237 09/11/2025 4255 RELIASTAR LIFE INSURANCE COMPANY 4,761.25 128238 09/11/2025 4710 Fidelity Security Life Insurance Company 1,002.26 128239 09/15/2025 788 CASH 150.00
128240 09/18/2025 84 AIRGAS-WEST 777.58
128241 09/18/2025 219 AT&T 386.10
128242 09/18/2025 219 AT&T 67.63
128243 09/18/2025 219 AT&T 58.49
128244 09/18/2025 221 AT&T MOBILITY 4.14
128245 09/18/2025 254 AZUSA LIGHT & WATER 6,335.68
128246 09/18/2025 260 B & K ELECTRIC WHOLESALE 632.06
128247 09/18/2025 291 BARR & CLARK 1,310.00
128248 09/18/2025 437 BURRO CANYON ENT INC 220.00
128249 09/18/2025 649 CINTAS CORP #693 880.56
128250 09/18/2025 717 COMPLETE PAPERLESS SOLUTIONS 10,495.88 128251 09/18/2025 749 BOHL PH.D., NANCY K. 2,705.00
128252 09/18/2025 783 CITY OF COVINA WATER 136.42
128253 09/18/2025 970 EDISON CO 15.75
128254 09/18/2025 1055 FEDEX 25.12
128255 09/18/2025 1198 GLOBALSTAR LLC 103.91
128256 09/18/2025 1235 GRAINGER 616.85
128257 09/18/2025 1241 GRAND PRINTING 971.02
128258 09/18/2025 1361 HOLLIDAY ROCK CO INC 683.14
128259 09/18/2025 1615 REGIONAL TAP SERVICE CENTER 20.00 128260 09/18/2025 1694 LEWIS ENGRAVING INC 142.55
128261 09/18/2025 1707 LIEBERT CASSIDY WHITMORE 2,287.50 128262 09/18/2025 1745 LOS ANGELES TRUCK CENTER, LLC 7,645.83 128263 09/18/2025 1788 MAMMOTH AUDIO SYSTEMS 1,800.00
128264 09/18/2025 1792 MANNING & KASS 29,752.87
128265 09/18/2025 1933 MISSION LINEN SUPPLY 22.77
128266 09/18/2025 2270 PLUMBING WHOLESALE OUTLET 111.30 128267 09/18/2025 2329 PUENTE READY MIX INC 1,404.84
128268 09/18/2025 2407 REGIONAL TAP SERVICE CENTER 261.10 128269 09/18/2025 2415 REPUBLIC MASTER CHEFS 888.10
128270 09/18/2025 2487 RSG, Inc. 1,025.00
128271 09/18/2025 2585 SCMAF-SAN GABRIEL VALLEY 40.00
128272 09/18/2025 2614 SGV CITY MANAGERS' ASSOCIATION 80.00 128273 09/18/2025 2705 SOUTH COAST AQMD 505.32
128274 09/18/2025 2736 STAPLES BUSINESS ADVANTAGE 22.31 128275 09/18/2025 2800 T MOBILE USA 230.00
128276 09/18/2025 2852 THREE VALLEY MUN WATER DISTR 6,140.80 128277 09/18/2025 2855 CHARTER COMMUNICATIONS 848.68
128278 09/18/2025 2935 UNDERGROUND SERVICE ALERT 275.91 128279 09/18/2025 2954 URBAN GRAFFITI ENTERPRISES INC 8,220.36 128280 09/18/2025 2958 US POSTMASTER 370.00
128281 09/18/2025 3001 VERIZON WIRELESS 8,918.99
128282 09/18/2025 3004 VICTORY EXTERMINATING INC 150.00 128283 09/18/2025 3052 WATERLINE TECHNOLOGIES INC 3,443.04 Attachment A Page 5 of 8

Page 35 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128284 09/18/2025 3701 DEPARTMENT OF JUSTICE 245.00
128285 09/18/2025 3823 JEEPERS CREEPERS EXTERMINATING 194.00 128286 09/18/2025 3943 NETFILE INC 3,000.00
128287 09/18/2025 3988 LANDSCAPE WAREHOUSE III 4,722.75 128288 09/18/2025 4374 ADMINSURE, INC 7,526.21
128289 09/18/2025 4455 FRONTIER 1,007.62
128290 09/18/2025 4505 SAN ANTONIO WINERY INC 2,229.02
128291 09/18/2025 4582 USABLUEBOOK 1,226.40
128292 09/18/2025 4688 PCAM, LLC 21,544.56
128293 09/18/2025 4704 S & J Supply Company, Inc. 9,048.51 128294 09/18/2025 4713 Fisher Integrated, Inc. 1,200.00 128295 09/18/2025 4764 UniFirst Corporation 1,214.95
128296 09/18/2025 4766 HASA, INC. 6,736.57
128297 09/18/2025 4817 Weck Analytical Environmental Services, Inc. 462.00 128298 09/18/2025 4854 CEJ Engineers, Inc. 43,430.00
128299 09/18/2025 4863 La Verne Power Equipment 109.39
128300 09/18/2025 4885 ELIE FARAH 1,800.00
128301 09/18/2025 4925 Humane Society of Pomona Valley, Inc. 29,212.67 128302 09/18/2025 4930 Michael Baker International, Inc. 578.50 128303 09/18/2025 4968 Semper Scientific, Inc 5,848.00
128304 09/18/2025 4977 Enterprise FM Trust 4,604.37
128305 09/18/2025 4983 Ad Valorem Records,Inc. 276.50
128306 09/18/2025 5099 CliftonLarsonAllen LLP 4,935.00
128307 09/18/2025 5137 MasterCorp Commercial Services LLC 4,748.20 128308 09/18/2025 5138 Ricoh USA, Inc. 300.31
128309 09/18/2025 5163 Changing Environments, Inc. 1,000.00 128310 09/18/2025 5169 Occupational Health Centers of California 407.00 128311 09/18/2025 5213 TANGLED WEB SOLUTIONS: INVESTIGATIONS 1,990.00 128312 09/18/2025 5262 SAUL CAMPOS 3,180.00
128313 09/18/2025 5280 ALDERMAN & HILGERS LLP 4,885.75
128314 09/18/2025 5291 AMAZON CAPITAL SERVICES, INC 181.33 128315 09/18/2025 5336 ABI DOCUMENT SUPPORT SERVICES LLC 874.11 128316 09/18/2025 5341 U.S. LEGAL SUPPORT INC 908.80
128317 09/18/2025 5343 BLUE-WHITE INDUSTRIES 14,667.38
128318 09/18/2025 5420 GMT 1,339.52
128319 09/18/2025 5508 ROADLINE PRODUCTS INC USA 1,745.07 128320 09/18/2025 5533 KOSMONT & ASSOCIATES INC 1,957.80 128321 09/18/2025 5578 Daniella Andrade 16.50
128322 09/18/2025 5655 COVINA VALLEY WATER COMPANY 325,534.75 128323 09/18/2025 5680 PREMIER AQUATIC SERVICES 35,247.34 128324 09/18/2025 5718 CJ CONCRETE CONSTRUCTION, INC. 188,163.74 128325 09/18/2025 99999 ADRIAN HUERTA 47.79
128326 09/18/2025 99999 JOAN GOEHRING 104.00
128327 09/18/2025 99999 JOSHUA TURNER 81.28
128328 09/18/2025 99999 JOSHUA TURNER 51.42
128329 09/18/2025 99999 MELIA HOMES 11,000.00
128330 09/18/2025 99999 MISSION POOLS 2,040.00
128331 09/18/2025 99999 ROBERT POIRIER 64.56
128332 09/24/2025 239 AUTOZONE INC 184.74
128333 09/24/2025 269 BAKER AND TAYLOR INC 593.55
128334 09/24/2025 568 CAT SPECIALTIES INC 324.74
Attachment A Page 6 of 8

Page 36 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128335 09/24/2025 664 CIVILTEC ENGINEERING INC. 43,568.75 128336 09/24/2025 875 DELL MARKETING L.P. 11,760.59
128337 09/24/2025 970 EDISON CO 49.99
128338 09/24/2025 970 EDISON CO 7,605.49
128339 09/24/2025 1156 THE GAS COMPANY 576.15
128340 09/24/2025 1204 GOLDEN STATE WATER COMPANY 146.36 128341 09/24/2025 1235 GRAINGER 2,541.32
128342 09/24/2025 1361 HOLLIDAY ROCK CO INC 341.57
128343 09/24/2025 1429 INLAND EMPIRE STAGES 1,256.38
128344 09/24/2025 1531 JW LOCK CO INC 74.15
128345 09/24/2025 1561 KEYSTONE UNIFORM DEPOT 937.18
128346 09/24/2025 1571 KING BOLT CO 40.23
128347 09/24/2025 1646 LANGUAGE LINE SERVICES INC 29.14 128348 09/24/2025 1860 SSD SYSTEMS 397.38
128349 09/24/2025 2091 O REILLY AUTO PARTS 1,196.99
128350 09/24/2025 2270 PLUMBING WHOLESALE OUTLET 169.75 128351 09/24/2025 2329 PUENTE READY MIX INC 2,238.35
128352 09/24/2025 2345 QUILL 626.36
128353 09/24/2025 2415 REPUBLIC MASTER CHEFS 862.58
128354 09/24/2025 2546 LOS ANGELES DAILY NEWS PUBLISHING COMPANY 2,105.69 128355 09/24/2025 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 96.69 128356 09/24/2025 2736 STAPLES BUSINESS ADVANTAGE 52.81 128357 09/24/2025 2814 AXON ENTERPRISES, INC. 237,231.43 128358 09/24/2025 2966 V & V MANUFACTURING 50.77
128359 09/24/2025 3102 WILLDAN FINANCIAL SERVICES 900.00 128360 09/24/2025 3185 TOSHIBA FINANCIAL SERVICES 1,618.15 128361 09/24/2025 3839 DOANE AND HARTWIG WATER SYSTEMS, INC. 1,324.52 128362 09/24/2025 3929 BOOT BARN INC 1,196.41
128363 09/24/2025 3988 LANDSCAPE WAREHOUSE III 429.14
128364 09/24/2025 4123 RUDY CARDENAS 175.00
128365 09/24/2025 4246 FERGUSON WATERWORKS #1083 3,240.97 128366 09/24/2025 4389 EMPLOY AMERICA 2,661.00
128367 09/24/2025 4455 FRONTIER 233.08
128368 09/24/2025 4500 LA Gateway Region Integrated Regional Water Mgmt 1,357.94 128369 09/24/2025 4571 POWER SECURITY GROUP INC 11,502.00 128370 09/24/2025 4667 Ocean Blue Environmental Services, Inc. 9,029.18 128371 09/24/2025 4676 Hill Brothers Chemical Company 2,187.90 128372 09/24/2025 4764 UniFirst Corporation 408.91
128373 09/24/2025 4766 HASA, INC. 1,311.91
128374 09/24/2025 4817 Weck Analytical Environmental Services, Inc. 585.00 128375 09/24/2025 4833 Michael R. Hillmann 2,480.00
128376 09/24/2025 4835 ABBA TERMITE & PEST CONTROL, INC 125.00 128377 09/24/2025 4858 Prestine Uniforms, LLC 406.17
128378 09/24/2025 4863 La Verne Power Equipment 1,241.08 128379 09/24/2025 4871 HARRINGTON INDUSTRIAL PLASTICS, LLC 6,801.07 128380 09/24/2025 4934 Peter Joseph Bucknam 14,015.81
128381 09/24/2025 4948 Painting & Decor Inc. 3,790.00
128382 09/24/2025 5011 Excel Office Services 357.43
128383 09/24/2025 5289 PSI WATER TECHNOLOGIES INC 1,890.82 128384 09/24/2025 5291 AMAZON CAPITAL SERVICES, INC 986.73 128385 09/24/2025 5528 JAKE MARTINEZ 10,800.00
Attachment A Page 7 of 8

Page 37 of 476 ends

CITY OF COVINA
Check Register
Sept 1, 2025 - Sept 30, 2025
Check # Check Date Vendor Name Amount
128386 09/24/2025 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 18,500.00 128387 09/24/2025 5592 INTELLISTREETS, INC 3,372.00
128388 09/24/2025 5607 ACLARA TECHNOLOGIES LLC 60.78
128389 09/24/2025 5629 MINUTEMAN PRESS COVINA 1,340.03
128390 09/24/2025 5671 CLIENTFIRST CONSULTING GROUP 2,630.00 128391 09/24/2025 5686 RAFTELIS FINANCIAL CONSULTANTS, INC. 10,222.50 128392 09/24/2025 5690 ELPS CAR WASH 179.95
128393 09/24/2025 5691 ROSALIE COVINA LLC 50,000.00
128394 09/24/2025 5729 ARMS UNLIMITED INC. 5,100.00
128395 09/24/2025 5735 MOXIE VENTURES 1,330.00
128396 09/24/2025 5736 SCHAMP 2,356.00
128397 09/24/2025 99999 ABSTRACT POOL DESIGNS 1,500.00
128398 09/24/2025 99999 CHARLES RUSSOM 27.62
128399 09/24/2025 99999 CHRISTOPHER BLUNK 205.00
128400 09/24/2025 99999 DAVID ZUBIA 1,565.59
128401 09/24/2025 99999 ELODIA JONAS 21.00
128402 09/24/2025 99999 GARY INGHAM 120.50
128403 09/24/2025 99999 JOHNNY GUTIERREZ 53.20
128404 09/24/2025 99999 LUCY LU 45.56
128405 09/24/2025 99999 MARITZA REYES 20.63
128406 09/24/2025 99999 PABLO SANCHEZ RODRIGUEZ 133.83
128407 09/24/2025 99999 ROCIO PINEDA 20.00
128408 09/24/2025 99999 STEPHANIE TROUNG 62.39
128409 09/25/2025 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 4,582.85 128410 09/25/2025 69 AFSCME District Council 36 687.50
128411 09/25/2025 775 COVINA POLICE ASSOCIATION 3,000.00 128412 09/25/2025 878 DELTA DENTAL OF CALIFORNIA 9,700.59 128413 09/25/2025 3795 PRE-PAID LEGAL SERVICES, INC 141.53 128414 09/25/2025 3846 CLEA 1,104.00
128415 09/25/2025 4255 RELIASTAR LIFE INSURANCE COMPANY 4,997.57 128416 09/25/2025 4710 Fidelity Security Life Insurance Company 1,054.84 subtotal checks 4,153,331.77
124241 12/05/2024 99999 EZPERANZA MORALES (80.00)
124470 12/19/2024 99999 ROSALIE MORENO (80.00)
124739 01/15/2025 99999 SQS CONTRACTORS, INC (3,000.00) 125680 03/27/2025 5228 ODP BUSINESS SOLUTIONS, LLC (108.49) 126283 05/08/2025 5228 ODP BUSINESS SOLUTIONS, LLC (296.85) 126295 05/08/2025 99999 ABSTRACT POOL DESIGNS (1,500.00) 127496 07/24/2025 5696 MARY LOUISE WURTMAN REVOCABLE LIVING TRUST (10,780.00) 127617 07/30/2025 5163 Changing Environments, Inc. (1,000.00) 127718 08/06/2025 4931 Antonio Castro Jr (1,847.45)
127839 08/13/2025 99999 REYNALDO LOPEZ (1,311.35)
127945 08/20/2025 99999 TH BARRANCA II, LLC (8,500.00)
subtotal voids (28,504.14)
payroll (09/11/25) $ 1,138,745.72
payroll (09/25/25) $ 1,149,508.39
workers' compensation $ 75,158.85
TOTAL checks/EFTs $7,543,045.77
Attachment A Page 8 of 8

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: October 21, 2025
Title: City of Covina Investment Report for Month Ended September 30, 2025 Presented by: Theresa Franke, Director of Finance
Charles Russom, Sr. Management Analyst
Recommendation: Receive and File.

EXECUTIVE SUMMARY:

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

DISCUSSION:

The attached report for the City and Successor Agency reflects the portfolio balances for the month ended September 30, 2025. The report is in conformity with the City’s Investment Policy as well as Government Code 53601. In accordance with the City's Investment Policy, the City Council authorizes staff to continue investing the City's idle funds in similar securities as those presented in these reports attached hereto. There is sufficient investment liquidity to meet the required reserve limits of the City’s operations.

FISCAL IMPACT:

None to receive and file.

Respectfully submitted,

Page 39 of 476 ends

Page 40 of 476 ends

CASH PER BANK AND INVESTMENT BALANCE 8/31/2025 $95,732,343.74 RECEIPTS 9/1/25-9/30/25 13,097,996.89 DISBURSEMENTS 9/1/25-9/30/25 (15,102,108.63) CASH PER BANK AND INVESTMENT BALANCE 9/30/2025 $93,728,232.00 ANALYSIS OF CASH PER BANK AND INVESTMENT BALANCE - BOOK VALUEINVESTMENT PORTFOLIO Attachment A-2 $54,171,023.23LOCAL AGENCY INVESTMENT FUND Attachment A-4 33,283,139.75TOTAL PUBLIC INVESTMENTS 87,454,162.98CHECKING / PETTY / USBANK CASH BALANCES / MONEY MARKET 6,274,069.02CASH PER BANK AND INVESTMENT BALANCE 9/30/2025 93,728,232.00CASH HELD BY TRUSTEES 3,184,906.28TOTAL CASH PER BANK AND INVESTMENT / TRUSTEE CASH BALANCE 9/30/2025 $96,913,138.28

CITY O F CO VINA INVESTMENT REPO RT
FO R THE MO NTH ENDED SEPTEMBER 30, 2025
The purpose of this report is to provide readers with the overall cash position of the City. There is sufficient investment liquidity to meet the required reserve limits of the City's operations.

Page 41 of 476 ends

BOOK ACQUISITIONMATURITY MARKET

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

Drawer & Petty Cash N/A $10,280.12 N/A N/A $10,280.12
General - Checking Account BMO 1,108,620.44 N/A Demand 1,108,620.44 Public Agency Saving - Parking Fines BMO 100,846.59 N/A Demand 100,846.59 Utility Billing Account BMO 74,112.67 N/A Demand 74,112.67Workers' Compensation - Checking Account BMO 122,226.41 N/A Demand 122,226.41Payroll - Checking Account BMO 91,036.35 N/A Demand 91,036.35Money Market BMO 4,236,879.02 N/A Demand 4,236,879.02 AFLAC Flexible Spending Account BMO 19,134.18 N/A Demand 19,134.18 USBank Cash Per GL Various 510,933.24 Various Various 510,933.24USBank Investment Portfolio Various 54,171,023.23 Various Various 54,360,745.16Local Agency Investment Fund State of California 33,283,139.75 N/A Demand 33,283,139.75 Subtotal (A) $93,728,232.00 $93,917,953.93
Cash Held With 3rd Party Administrator:TRIP 2017A Covina Wilmington Trust $823.17 N/A Demand $823.17 LA County Loan Agreement U.S. Bank 1,500,013.44 N/A Demand 1,500,013.44 Other Post-Employment Benefits Charles Schwab 1,679,194.88 N/A Demand 1,679,194.882021 Taxable Pension Obligation Bonds U.S. Bank 4,872.20 N/A Demand 4,872.20 2019 Wastewater Refunding Bonds U.S. Bank 2.59 N/A Demand 2.59 Subtotal (B) $3,184,906.28 $3,184,906.28
TOTAL (A+B) $96,913,138.28 $97,102,860.21

CITY OF COVINA

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED SEPTEMBER 30, 2025
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.

Page 42 of 476 ends

Exhibit A-2

CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
September 2025
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Agric MTG CorpMedium Term Note 06/30/22 97.1010 1,000,000 915,357.70 $ 0.9700 31422XGQ9 10/26/2026 US Bank (from Stifel)
FEDL Agric MTG Corp -
Medium Term Note 01/16/25 99.9390 1,000,000 1,000,000.00 4.6300 3134HAW66 12/30/2027 US Bank (from Stifel) Total Agricultural Mortgage 2,000,000 $ 1,915,357.70
Federal Farm Credit Bank Bond 6/10/2025 101.0360 1,000,000 1,009,342.56 $ 4.1064 3133EPZY4 7/30/2026 US Bank (from Stifel)
FEDL Farm Credit Bank Bond 02/02/22 97.2980 1,000,000 996,151.59 1.5000 3133ENKV1 1/13/2027 US Bank (from Stifel)
Federal Farm Credit Bank Bond 04/07/22 99.2460 1,000,000 1,007,278.29 3133EJDV8 3/22/2027 3.1500 US Bank (from Stifel)
Total Federal Farm Credit 3,000,000 $ 3,012,772.44
Tennessee Valley AuthPWR Bond 1995 SER E 06/30/22 100.1870 1,000,000 1,012,360.33 $ 6.7500 880591CJ9 11/1/2025 US Bank (from Stifel)
FEDL Home Loan Bank Bond 02/02/22 99.7160 1,000,000 1,005,184.93 2.6250 3130A6ZQ3 12/12/2025 US Bank (from Stifel)
FEDL Home Loan Bank Bond 04/07/22 99.3220 1,000,000 1,003,611.45 3.0000 3130A2VE3 9/11/2026 US Bank (from Stifel)
FEDL Home Loan Bank Bond 11/04/24 99.9670 1,000,000 1,000,000.00 3133ERZM6 4.3300 11/5/2026 US Bank (from Stifel)
FEDL Home Loan Bank Bond 11/26/24 99.9700 1,000,000 1,000,000.00 4.5479 3133ERZS3 11/12/2027 US Bank (from Stifel)
FEDL Home Loan Bank Bond 11/19/24 100.0840 1,000,000 1,000,000.00 4.6248 3130B3RN5 11/19/2027 US Bank (from Stifel)
FEDL Home Loan Bank Bond 12/10/24 99.9870 1,000,000 1,000,000.00 3130B42Y6 4.5000 12/23/2027 US Bank (from Stifel)
FEDL Home Loan Bank Bond 02/18/25 100.1230 1,000,000 1,000,000.00 3130B4YQ8 4.6000 2/25/2028 US Bank (from Stifel)
FEDL Home Loan Bank Bond 12./23/2024 100.4430 1,000,000 1,001,962.88 4.6840 3130B0EE5 3/6/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPool #WN2479 12/04/23 100.7760 1,000,000 993,437.50 4.9400 3132XGXH4 5/1/2028 US Bank (from Stifel)
FEDL NATL MTG ASSNPool#BSB8718 Balloon 03/05/24 99.7990 1,000,000 986,562.50 4.3800 3140LKVL4 6/1/2028 US Bank (from Stifel)
FEDL Home Loan Bks 8/26/2025 99.7800 1,000,000 1,000,000.00 4.2000 3130B7LS1 8/18/2028 US Bank FEDL Home Loan Bank Bond 10/25/24 99.9070 1,000,000 1,000,000.00 4.5300 3130B3AS2 10/16/2028 US Bank (from Stifel)
FEDL Home Loan Bank Bond 11/04/24 99.9810 1,000,000 1,000,000.00 3133ERZT1 4.6700 11/7/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPool#WN2534 02/16/24 100.8420 1,000,000 997,187.50 4.9000 3132XGY83 12/1/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPOOL#WN2537 04/16/24 100.8420 1,000,000 989,687.50 4.9000 3132XGZB5 12/1/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPOOL#WN2559 4/10/2024 1,000,000 100.0460 979,062.50 4.6000 3132XGZZ2 1/1/2029 US Bank (from Stifel)
FEDL NATL MTG ASSN Note 10/25/24 100.1990 1,000,000 1,000,000.00 4.4000 3135GAXR7 8/3/2029 US Bank (from Stifel)
FEDL Home Loan Bank Bond 09/04/24 99.7700 980,000 980,000.00 4.2000 3130B2GZ2 8/13/2029 US Bank (from Stifel)
FEDL Home Loan Bank Bond 09/09/24 99.5240 2,000,000 2,000,000.00 4.0000 3130B2NS0 9/4/2029 US Bank (from Stifel)
FEDL Home Loan Bank Bond 10/25/24 99.3110 1,000,000 990,500.00 4.0000 3130B32X0 10/2/2029 US Bank (from Stifel)
FEDL Home Loan Bank Bond 10/25/24 99.8850 1,000,000 1,000,000.00 4.6500 3130B3F65 10/22/2029 US Bank (from Stifel)
FEDL Home Loan Bank Bond 11/05/24 100.5270 1,000,000 1,000,000.00 3130B3M67 4.5000 11/13/2029 US Bank (from Stifel)
U S Treasury Note 8/18/2025 100.6330 1,000,000 1,002,336.00 3.8750 91282CMZ1 4/30/2030 US Bank FEDL Home Loan Bank Bond 6/16/2025 100.5240 1,000,000 1,000,000.00 3130B6SF4 4.1251 6/14/2030 US Bank (from Stifel)
FANNIE MAE 8/5/2025 99.5980 1,000,000 998,000.00 4.2500 3136GALS6 8/6/2030 US Bank Total Federal Home Loan 26,980,000 $ 26,939,893.09

Page 43 of 476 ends

Exhibit A-2

CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
September 2025
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Washington State BankWashington IA CD 4/2/2024 100.0210 245,000 245,000.00 $ 5.0000 93974LAG5 10/9/2025 US Bank (from Stifel)
First Natl Bank of AmerEast Lansing MI CE 05/16/22 99.8240 245,000 245,000.00 3.0000 32110YXE0 11/28/2025 US Bank (from Stifel)
Advantage FEDL CR UNRochester NY SHS CTF 08/24/23 100.2990 245,000 245,000.00 5.3000 00790JAD4 12/31/2025 US Bank (from Stifel)
Southwest Heritage CUOdessa TX SHS CTF 06/26/23 100.2730 245,000 245,000.00 5.1000 84503PAF7 1/7/2026 US Bank (from Stifel)
Jovia FINL FEDL CR UN -
Westbury NY CD 7/2/2024 245,000 100.3030 245,000.00 5.0000 48115LAL8 1/20/2026 US Bank (from Stifel) Marine FEDL CR UNJacksonvill NC SHS CTF 08/27/24 100.1400 245,000 245,000.00 4.3500 56824JBB9 2/27/2026 US Bank (from Stifel)
Truliant FEDL CR UNWinston Salem NC SHS CTF 03/09/23 100.5690 245,000 245,000.00 5.1500 89789AAH0 3/23/2026 US Bank (from Stifel)
United Fidelity Bank FSBEvansville IN CD 09/16/24 100.2260 245,000 245,000.00 4.3500 910286HZ9 3/27/2026 US Bank (from Stifel)
First Bank of The LakeOsage Beach MO CD 10/31/24 100.0790 245,000 245,000.00 4.0000 31925YBU5 4/30/2026 US Bank (from Stifel)
Ally Bank -
Midvale UT CD 04/27/22 99.3730 245,000 245,000.00 2.8500 02007GQQ9 5/5/2026 US Bank (from Stifel) Global FED CR UN -
Anchorage AK SHS CTF 05/14/24 100.7900 245,000 245,000.00 5.0500 37892MAP9 5/29/2026 US Bank (from Stifel) Inspire FEDL CR UNBristol PA SHS CTF 06/29/23 100.8650 245,000 245,000.00 5.0000 457731AQ0 6/30/2026 US Bank (from Stifel)
GESA CR UNRichland WA CD 07/19/23 101.1780 245,000 245,000.00 5.2500 37424PAH7 7/31/2026 US Bank (from Stifel)
Pima FEDL CR UNTucson AZ SHS CTF 08/02/23 101.2940 245,000 245,000.00 5.3000 722000AC0 8/17/2026 US Bank (from Stifel)
Signature Federal Cred U 08/16/23 101.3440 245,000 245,000.00 5.3000 82671DAG2 8/28/2026 US Bank (from Stifel)
KodabankDrayton ND CD 03/09/23 101.1650 245,000 245,000.00 5.0000 50007DAC3 9/22/2026 US Bank (from Stifel)
First NATL BankDamariscotta ME CD 03/09/23 101.1690 245,000 245,000.00 5.0000 32117BFR4 9/23/2026 US Bank (from Stifel)
Austin Telco Fed CR UNAustin TX SHS CTF 11/14/22 101.4610 245,000 245,000.00 5.0500 052392CC9 11/27/2026 US Bank (from Stifel)
Baxter CR UNVernon Hills IL SHS CTF 11/14/22 101.4280 245,000 245,000.00 5.0000 07181JAV6 11/30/2026 US Bank (from Stifel)
First Foundation Bank -
Irvine CA CD 06/05/24 101.4520 245,000 245,000.00 5.0625 32026U5X0 12/14/2026 US Bank (from Stifel) All in FED CR UnionDaleville AL SHS CTF 12/07/22 100.8360 245,000 245,000.00 4.4500 01664MAA4 12/21/2026 US Bank (from Stifel)
State Bank of India -
New York NY CD 02/01/22 97.3610 245,000 245,000.00 1.7500 856285G21 2/9/2027 US Bank (from Stifel) Pentagon Federal CR UN -
Tysons Corner VA 02/02/22 97.2670 245,000 245,000.00 1.7000 70962LBE1 2/18/2027 US Bank (from Stifel)
California Cr Un Glendale Cali
CD 8/11/2025 100.3210 245,000 245,000.00 4.0000 130162BQ2 2/22/2027 US Bank Sallie Mae Bank -
Salt Lake City UT CD 02/16/22 97.9000 245,000 245,000.00 2.2000 795451BH5 2/23/2027 US Bank (from Stifel) Beal Bank -
Las Vegas NV CD 03/01/22 97.6900 245,000 245,000.00 2.0500 07371CK81 3/3/2027 US Bank (from Stifel) Beal Bank -
Plano TX CD 03/01/22 97.6900 245,000 245,000.00 2.0500 07371AZQ9 3/3/2027 US Bank (from Stifel) Medallion Bank -
Salt Lake City UT CD 03/01/22 97.6590 245,000 245,000.00 2.0500 58404DNG2 3/8/2027 US Bank (from Stifel)
United Republic BankElkhorn NE CD 03/05/25 100.4720 245,000 245,000.00 909242BZ1 4.0500 3/19/2027 US Bank (from Stifel)
Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 98.4810 245,000 245,000.00 2.7000 14042TFJ1 4/13/2027 US Bank (from Stifel) Synchrony Bank -
Draper UT CD 04/07/22 98.4790 245,000 245,000.00 2.7000 87165FK45 4/14/2027 US Bank (from Stifel) Capital One NA -
Mclean VA CD 04/27/22 98.9600 245,000 245,000.00 3.0500 14042RRA1 5/4/2027 US Bank (from Stifel)
Pinnace BankNashville TN CD 5/2/2025 100.3850 245,000 245,000.00 72345SLQ2 3.9500 5/7/2027 US Bank (from Stifel)
Goldman Sachs Bank USA -
New York NY CD 04/27/22 98.9520 245,000 245,000.00 3.0500 38149M6Y4 5/11/2027 US Bank (from Stifel)

Page 44 of 476 ends

Exhibit A-2

CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
September 2025
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Toyota Finl Svgs BankHenderson NV CD 05/09/22 99.1790 245,000 245,000.00 $ 3.2000 89235MNH0 5/17/2027 US Bank (from Stifel)
Morgan Stanley Bank NASalt Lake City UT CD 05/16/22 99.2550 245,000 245,000.00 3.2500 61690UJ68 5/19/2027 US Bank (from Stifel)
Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 99.2550 245,000 245,000.00 3.2500 61768EJR5 5/19/2027 US Bank (from Stifel)
Discover BankGreenwood DE CD 05/20/22 99.1730 245,000 245,000.00 3.2000 254673E36 5/24/2027 US Bank (from Stifel)
Optum BankDraper UT CD 6/23/2025 100.7470 245,000 245,000.00 68405VDM8 6/30/2027 4.1500 US Bank (from Stifel)
Mutual First Fed CD 7/23/2025 100.5890 245,000 245,000.00 4.0000 62825MAB0 8/5/2027 US Bank Oklahoma CD 8/26/2025 100.5450 245,000 245,000.00 3.9500 67885MAC4 8/30/2027 US Bank Workers FEDL Credit UNLittleton MA SHS CTF 08/27/24 100.6270 245,000 245,000.00 4.0000 98138MCK4 8/30/2027 US Bank (from Stifel)
Vantage West CR UNTucson AZ SHS CTF 09/04/24 100.6470 245,000 245,000.00 4.0000 92213MAB7 9/13/2027 US Bank (from Stifel)
University III Cmnty Cr Un Cha
CD 9/18/2025 99.9960 249,000 249,000.00 3.6500 914359AQ7 9/24/2027 US Bank Ideal Credit UnionWoodbury MN SHS CTF 12/07/22 101.8400 245,000 245,000.00 4.5000 45157PAZ3 12/29/2027 US Bank (from Stifel)
Alliant Credit UnionChicago IL SHS CTF 12/20/22 102.5880 245,000 245,000.00 4.8500 01882MAA0 12/30/2027 US Bank (from Stifel)
Carter FEDL CR UNSpringhill LA SHS CTF 01/14/25 101.2260 245,000 245,000.00 14622LAW2 4.2000 1/28/2028 US Bank (from Stifel)
Telco Plus CR UnLongview TX SHS CTF 02/03/25 101.3680 245,000 245,000.00 87921MAA2 4.2500 2/18/2028 US Bank (from Stifel)
Merrick BankSouth Jordan UT CD 02/18/25 101.3830 245,000 245,000.00 59013K4U7 4.2500 2/28/2028 US Bank (from Stifel)
Valley Natl BankPassaic NJ CD 02/27/25 101.3940 245,000 245,000.00 919853QC8 4.2500 3/6/2028 US Bank (from Stifel)
One Commnity BankOregon WI CD 6/12/2025 100.8260 245,000 245,000.00 682325FT7 4.0000 3/20/2028 US Bank (from Stifel)
Milestone BankSalt Lake City UT CD 4/28/2025 100.7260 245,000 245,000.00 3.9500 59934MDC9 4/28/2028 US Bank (from Stifel)
Southpoint BankBirmingham AL CD 04/28/25 100.8700 245,000 245,000.00 84464PCC9 4/28/2028 4.0000 US Bank (from Stifel)
Cornerstone BankFargo ND CD 05/01/23 102.8704 245,000 245,000.00 - 219232CR4 5/10/2028 US Bank (from Stifel)
Sound CR UNTacoma WA SHS CTF 5/19/2025 101.2710 245,000 245,000.00 83616 4.1500 HAH7 6/2/2028 US Bank (from Stifel)
Celtic BankSalt Lake City UT CD 6/4/2025 100.9090 245,000 245,000.00 4.0000 15118RW45 6/12/2028 US Bank (from Stifel)
BOM BankNatchitoches LA CD 06/04/25 100.3750 245,000 245,000.00 09776DAP9 4.4000 6/16/2028 US Bank (from Stifel)
First FEDL S&L ASSN -
Lakewood OH CD 06/20/24 100.3500 245,000 245,000.00 5.3589 32023HBV9 6/28/2028 US Bank (from Stifel)
Global FED CR UNAnchorage AK SHS CTF 6/16/2025 101.4370 245,000 245,000.00 37892MAX2 6/30/2028 4.2000 US Bank (from Stifel)
Texas Exchange Bank SSBCrowley TX CD 10/28/24 101.0600 245,000 245,000.00 4.0500 88241TUA6 7/12/2028 US Bank (from Stifel)
CY Fair FCUHouston TX SHS CTF 06/26/23 100.4140 245,000 245,000.00 5.3000 23248UAC1 7/14/2028 US Bank (from Stifel)
Numerica Credit UnionSpokane VLY WA SHS CTF 07/12/23 103.8970 245,000 245,000.00 5.1000 67054NBK8 7/31/2028 US Bank (from Stifel)
Connexus Credit CD 7/23/2025 101.2280 245,000 245,000.00 4.1000 20825WEB2 8/7/2028 US Bank Tucson FEDL CR UNTucson AZ CD 09/01/23 103.7570 245,000 245,000.00 5.0000 898812AC6 9/8/2028 US Bank (from Stifel)
Money One FCULargo MD SHS CTF 09/01/23 103.7770 245,000 245,000.00 5.0000 60936TAL3 9/14/2028 US Bank (from Stifel)
San Francisco FEDL CR UNSan Francisco CA SHS 11/20/24 101.7390 245,000 245,000.00 4.2500 79772FAL0 11/27/2028 US Bank (from Stifel)
SKYLA FEDL CR UNCharlotte NC SHS CTF 5/21/2025 101.2930 245,000 245,000.00 4.1000 83086XAE0 11/30/2028 US Bank (from Stifel)
Civic Fed Cr CD 8/7/2025 100.6900 245,000 245,000.00 3.9000 178808AC5 12/22/2028 US Bank BMW Bank of North AmericaSalt Lake City UT CD 5/2/2025 100.9210 245,000 245,000.00 4.0000 05612LER9 5/9/2029 US Bank (from Stifel)
First Premier BankSioux Falls SD CD 5/13/2025 100.7590 245,000 245,000.00 33610RWL3 5/21/2029 3.9500 US Bank (from Stifel)

Page 45 of 476 ends

Exhibit A-2

CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
September 2025
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Covantage CUAntigo WI SHS CTF 5/14/2025 101.6920 245,000 $ 245,000.00 22282XAL4 5/29/2029 4.0500 US Bank (from Stifel)
ClearPath FED CR UN -
Burbank CA SHS CTF 07/09/24 100.1360 245,000 245,000.00 5.4000 18507MAD3 7/30/2029 US Bank (from Stifel) Altaone FED CR UN -
Ridgecrest CA SHS CTF 8/27/2024 245,000 100.3830 245,000.00 3.8500 02157RAC1 9/13/2029 US Bank (from Stifel) Freedom Northwest CR UN 12/23/2024 101.5700 245,000 245,000.00 4.1200 356436AV7 12/31/2029 US Bank (from Stifel)
JP Morgan Chase Bank NAColumbus OH CD 01/24/25 100.9850 245,000 245,000.00 4.7500 46657VWH9 1/31/2030 US Bank (from Stifel)
UBS Bank USASalt Lake City UT CD 03/05/25 101.4320 245,000 245,000.00 90355GUL8 4.1000 3/12/2030 US Bank (from Stifel)
Luana SVGS BankLuana IA CD 03/05/25 100.5980 245,000 245,000.00 549104G76 3.9000 3/13/2030 US Bank (from Stifel)
Western State BankDevils Lake ND CD 03/05/25 101.0310 245,000 245,000.00 95960NLA3 4.0000 3/25/2030 US Bank (from Stifel)
Poppy BankSanta rosa CA CD 4/2/2025 100.1950 245,000 245,000.00 73319FDX4 4/8/2030 4.1000 US Bank (from Stifel)
EaglebankBethesda MD CD 04/02/25 101.2520 245,000 245,000.00 27002YHQ2 4.0500 4/16/2030 US Bank (from Stifel)
American Express Natl BKSalt Lake City UT CD 4/28/2025 101.4250 245,000 245,000.00 4.1000 02589AHE5 4/30/2030 US Bank (from Stifel)
BNY Mellon NAPittsburgh PA CD 6/12/2025 101.0340 245,000 245,000.00 4.0000 05584CY59 6/18/2030 US Bank (from Stifel)
Farmers & Merchants BKAshland NE CD 6/16/2025 100.2920 245,000 245,000.00 308914AC4 6/24/2030 4.4000 US Bank (from Stifel)
American Bank CommerceWolfforth TX CD 6/16/2025 100.1180 245,000 245,000.00 02432LAC1 4.5000 6/25/2030 US Bank (from Stifel)
Jeanne D Arc FCULowell MA CD 6/23/2025 101.0940 245,000 245,000.00 472207AL3 6/28/2030 4.0000 US Bank (from Stifel)
State Bk India Chicago III 07/30/25 245,000 101.2760 245,000.00 4.0500 85628AAT7 7/29/2030 US Bank Oak View Bankshares CD 8/19/2025 100.0970 245,000 245,000.00 4.2500 67134XBD6 9/5/2030 US Bank Utah First Fed Cr Un Salt Lake
CD 08/28/25 100.4510 249,000 249,000.00 3.8500 91739JAW5 9/10/2030 US Bank Great Midwest Bk Brookfield
Wi CD 9/15/2025 98.7570 245,000 245,000.00 3.7500 39083PDT6 9/19/2030 US Bank Third fed Svgs Ln Assn Of CD 9/15/2025 99.9890 245,000 245,000.00 3.7500 88413QHX9 9/19/2030 US Bank Greenstate Cr Un North Liberty
CD 9/16/2025 100.0000 245,000 245,000.00 3.7500 39573LEU8 9/26/2030 US Bank Total Certificates of Deposit 22,303,000.00 22,303,000.00 $ 54,171,023.23 54,283,000 $
19,917.51
491,015.73
US Bank Total Value of Portfolio 54,681,956.47 54,283,000 $ US Bank Cash
Stifel Cash
US Bank Securities

Page 46 of 476 ends

Qty Purch Date Maturity
Date of
Disposition
Share Price at Purchase Date Net Trade Amount
Cost Basis
Value Market Value
Accrued
Interest Issuer CUSIP Held by
2,500 8/19/2025 9/5/2030 100.0000 $ 245,000.00 $ 245,000.00 $ Oak View Bankshares CD 245,000.00 67134XBD6 US Bank 2,490 08/28/25 9/10/2030 100.0000 249,000.00 249,000.00 Utah First Fed Cr Un Salt Lake CD 249,000.00 91739JAW5 US Bank 2,450 9/15/2025 9/19/2030 100.0000 245,000.00 245,000.00 Third fed Svgs Ln Assn Of CD 245,000.00 88413QHX9 US Bank 2,450 9/15/2025 9/19/2030 100.0000 245,000.00 245,000.00 Great Midwest Bk 245,000.00 Brookfield Wi CD 39083PDT6 US Bank 2,490 9/18/2025 9/24/2027 100.0000 249,000.00 249,000.00 University 249,000.00 III Cmnty Cr Un Cha CD 914359AQ7 US Bank 2,450 9/16/2025 9/26/2030 100.0000 245,000.00 245,000.00 Greenstate Cr Un North Liberty CD 245,000.00 39573LEU8 US Bank Total 1,478,000.00 $ 1, $ 1,478,000.00 478,000.00 $ -
Qty Purch Date Maturity
Date of
Disposition
Share Price at
Sale / Maturity
Date
Original Cost
Value
Par Value at
Sale/Maturity
Gain / (Loss) on
Sale /
Redemption
Earnings
Since
Purchase Issuer CUSIP Held by
2,450 06/06/24 9/12/2025 9/12/2025 100.0000 $ 245,000.00 $ 245,000.00 $ 12, - $ 985.00 Flagstar Bank NA -Hicksville NY CD 33847GHY1 US Bank 2,450 8/12/2025 8/31/2026 9/15/2025 100.0000 245,000.00 245,000.00 - - Connex Cr CD 208212BZ2 US Bank 2,450 06/06/24 9/18/2025 9/18/2025 100.0000 245,000.00 245,000.00 15, - 797.80 First Bank - Hamilton NJ CD 319137CJ2 US Bank Total 735,000.00 $ $ - 735,000.00 $ 28, $ 782.80
Period Interest Revenue
Previous Month $201,324.97Previous 12 mos. $2,485,662.02

CITY OF COVINA

INVESTMENT TRANSACTION SUMMARY
FOR THE MONTH ENDED SEPTEMBER 30, 2025
Purchased Investments
Net Revenue Analysis - for Period Ending September 30, 2025 Sold/Matured Investments

Page 47 of 476 ends

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
October 08, 2025
LAIF Home
PMIA Average Monthly
Yields

CITY OF COVINA

CITY TREASURER
125 E. COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 98-19-219
September 2025 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
9/24/2025 9/23/2025 RW 1782830 1743442 BEI ZOU -1,000,000.00 Account Summary
Total Deposit: 0.00 Beginning Balance: 34,283,139.75
Total Withdrawal: -1,000,000.00 Ending Balance: 33,283,139.75 10/8/25, 5:26 PM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-4 City

Page 48 of 476 ends

Statement Total
Balance Percentage
Cash Balances $6,274,069 6.47%
Local Agency Investment Fund 33,283,140 34.35%
Treasury / Agency 31,868,023 32.88%
Certificate of Deposits 22,303,000 23.01%
Funds Held by Bond Trustees 3,184,906 3.29%
Total $96,913,138 100.00%

CITY OF COVINA
Cash & Investment Holdings by Type as of September 30, 2025 *Average Investment coupon rate: 4.11% (based on weighted average of Original Cost Value) Cash Balances, 6.47%
Local Agency Investment
Fund, 34.35%
Treasury / Agency, 32.88%
Certificate of Deposits,

23.01%
Funds Held by Bond
Trustees, 3.29%

HOLDINGS BY TYPE
Attachment A-5 City

Page 49 of 476 ends

CASH PER BANK AND INVESTMENT BALANCE 8/31/2025 $594,759.56 RECEIPTS 9/1/25-9/30/25 -
DISBURSEMENTS 9/1/25-9/30/25 -
CASH PER BANK AND INVESTMENT BALANCE 9/30/2025 $594,759.56ANALYSIS OF CASH PER BANK AND INVESTMENT BALANCECHECKING ACCOUNT $3,817.64LOCAL AGENCY INVESTMENT FUND Attachment A-6 590,941.92AVAILABLE CASH PER BANK BALANCES $594,759.56CASH HELD BY BOND TRUSTEES 0.00TOTAL CASH PER BANK AND INVESTMENT / TRUSTEE CASH BALANCE 9/30/2025 $594,759.56 FOR THE MONTH ENDED SEPTEMBER 30, 2025

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

Page 50 of 476 ends

BANK ACQUISITION MARKET

TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
Successor Agency to the Covina Redevelopment Agency:Checking Account BMO $3,817.64 N/A Demand $3,817.64Local Agency Investment Fund State of California 590,941.92 N/A Demand 590,941.92 Subtotal (A) $594,759.56 $594,759.56
Cash Held With 3rd Party Administrator:(1) 2013 Series A Tax Allocation Bonds U.S. Bank* $0.00 N/A Demand $0.00 Fiscal Agent: U.S. Bank(2) 2014 Series A Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank(3) 2004 Series B Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank Subtotal (B) $0.00 $0.00
TOTAL (A+B) $594,759.56 $594,759.56
* Formerly BNY Mellon

SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED SEPTEMBER 30, 2025
The purpose of this schedule is to show the total cash and investments held by the Successor Agency to the Covina Redevelopment Agency by account.

Page 51 of 476 ends

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
October 08, 2025
LAIF Home
PMIA Average Monthly
Yields

S/A CITY OF COVINA FOR COVINA

REDEVELOPMENT AGENCY

FINANCE DIRECTOR
125 EAST COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 65-19-007
September 2025 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 590,941.92
Total Withdrawal: 0.00 Ending Balance: 590,941.92
10/8/25, 5:24 PM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-6 Agency

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Quarter
Ending City Agency*
9/30/2023 $92,844,915 $3,736,4989/30/2024 $97,049,808 $638,639 9/30/2025. $96,913,138 $594,760

CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY CASH AND INVESTMENTS THREE YEAR COMPARISON AS OF SEPTEMBER 30, 2025 The purpose of this schedule is to show, for comparison purposes, the total cash and investment values for the last 3 years. *Successor Agency to Covina Redevelopment Agency
$0
$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000 $100,000,000
9/30/2023 9/30/2024 9/30/2025.
$92,844,915 $97,049,808 $96,913,138
$3,736,498 $638,639 $594,760
MONTH ENDING SEPT. 30, 2025
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
Attachment A-7 City Agency

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

Bills $ 39,599,745,147.02 $ 39,973,471,901.90 $ 39,985,802,450.00 NA Notes $ 43,494,437,239.54 $ 43,477,478,895.29 $ 43,720,178,000.00 $ 396,089,830.50 Federal Agency:

SBA $ 262,881,870.42 $ 262,768,178.80 $ 260,243,125.97 $ 1,048,765.00 MBS-REMICs $ 986,577.07 $ 986,577.07 $ 996,338.26 $ 4,303.86 Debentures $ 5,820,766,716.29 $ 5,820,766,716.29 $ 5,837,507,030.00 $ 42,941,193.90 Debentures FR $ - $ - $ - $ -
Debentures CL $ 3,150,000,000.00 $ 3,150,000,000.00 $ 3,162,895,050.00 $ 39,916,907.00 Discount Notes $ 34,045,057,208.42 $ 34,430,751,569.55 $ 34,435,696,650.00 NA Supranational Debentures $ 3,735,297,997.63 $ 3,734,838,622.61 $ 3,752,739,630.00 $ 27,482,975.50 Supranational Debentures FR $ - $ - $ - $ -
CDs and YCDs FR $ - $ - $ - $ -
Bank Notes $ 200,000,000.00 $ 200,000,000.00 $ 199,956,589.25 $ 1,148,416.67 CDs and YCDs $ 15,550,000,000.00 $ 15,550,000,000.00 $ 15,553,645,102.15 $ 198,281,555.54 Commercial Paper $ 9,375,972,041.62 $ 9,473,396,736.20 $ 9,476,638,541.63 NA Corporate:

Bonds FR $ - $ - $ - $ -
Bonds $ 943,615,108.85 $ 943,498,546.35 $ 945,273,378.00 $ 9,127,182.15 Repurchase Agreements $ - $ - $ - $ -
Reverse Repurchase $ - $ - $ - $ -
Time Deposits $ 5,249,000,000.00 $ 5,249,000,000.00 $ 5,249,000,000.00 NA PMIA & GF Loans $ 262,742,740.00 $ 262,742,740.00 $ 262,742,740.00 NA TOTAL $ 161,690,502,646.86 $ 162,529,700,484.06 $ 162,843,314,625.26 $ 716,041,130.12 Fair Value Including Accrued Interest $ 163,559,355,755.38 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

The value of each participating dollar equals the fair value divided by the amortized cost (1.001929581) As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $20,038,591.61 or $20,000,000.00 x1.001929581 State of California
Pooled Money Investment Account
Market Valuation
9/30/2025
Attachment A-8 City

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: October 21, 2025
Title: Agreement Regarding Occupancy of Property, and Amendment of Deeds of Trust between the Covina Housing Authority and the Owner(s) for Property Located at 221 W. Zinfandel Drive, Unit 29, Covina
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Alice Leung, Management Analyst
Recommendation: Approve and Authorize the City Manager/Executive Director or his designee to execute related documents including the Agreement Regarding Occupancy of Property, and Amendment of Deeds of Trust between the Covina Housing Authority and the owner(s) for property located at 221 W. Zinfandel Drive, Unit 29, Covina.

EXECUTIVE SUMMARY/BACKGROUND:

On December 6, 2005, the Covina Redevelopment Agency (Agency) and the Olson Company, LLC (“Olson”) entered into a Participation Agreement for the construction of affordable housing units at the Vintage Walk Redevelopment Project. As part of this agreement, Olson agreed to develop nine (9) residential condominium units for individuals and/or families that meet certain affordability requirements. Recently, the owners of one of these units at 221 W Zinfandel Drive, Unit 29 (“Property”) requested the transfer of one-half of the interest in the Property due to a change in marital status.

As proposed, the City Council will consider entering into an updated agreement to convey interest in the Property so that title is held by only one of the original owners. Existing covenants will continue to encumber the Property, including that the owner(s) shall occupy the property as their principal residence, the Property shall not be rented without prior approval, that the owner and any family members living at the Property shall meet affordability requirements and that the Agency shall retain the right of first refusal to purchase the unit, should it be made available for sale.

DISCUSSION:

The existing owners of 221 W Zinfandel Drive, Unit 29 (“Property”) have requested transfer of one-half of the interest in the Property due to a recent change in marital status and a related property settlement agreement.

Accordingly, the proposed agreement would convey the transfer of interest so that title is held by only one of the original owners. All existing covenants and restrictions that currently encumber the property will continue to remain, including that owners/family members meet affordability requirements, that they will occupy the Property as their principal residence and that the Property will not be rented without the Agency’s approval, among others.

If approved, the owner(s) will be subject to the terms and conditions set forth in the Agreement Regarding Occupancy of Property, and Amendment of Deeds of Trust (Attachment B).

FISCAL IMPACT:

None. The Agreement shall bind and run with the land and all successors-in-interest.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not Applicable.

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Respectfully submitted,

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ATTACHMENT A

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RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:

City of Covina
125 E. College Street
Covina, CA 91723
Attn: City Clerk
SPACE ABOVE THIS LINE FOR RECORDER’S USE
This Agreement Regarding Occupancy of Property, and
Amendment of Deeds of Trust is recorded for the benefit of the Covina Housing Authority and is exempt from recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.

AGREEMENT REGARDING OCCUPANCY OF PROPERTY,

AND AMENDMENT OF DEEDS OF TRUST
This AGREEMENT REGARDING OCCUPANCY OF PROPERTY, AND
AMENDMENT OF DEEDS OF TRUST is dated as of ___________________________, 2025 and is entered into by and between the COVINA HOUSING AUTHORITY, a public body, corporate and politic (the “Authority”) and SHAMEL S. SAMUEL, an unmarried man (“SSS”), and HAIDY S. KELTA, an unmarried woman (“HSK”).

RECITALS
A. SSS and HSK each own a one-half (½) tenancy-in-common interest in a condominium known as Unit 29 at 221 W. Zinfandel Drive, Covina, California 91723 bearing APN 8431-014-036 (the “Property”) by virtue of a recent divorce/property settlement (the “Property Settlement”).

B. The Property is encumbered by a Declaration of Conditions, Covenants and Restrictions & Right of First Refusal to Purchase between SSS and the Authority (as successor to the housing assets of the former Covina Redevelopment Agency) recorded on August 3, 2007 as Document No. 20071838950 in the Official Records of Los Angeles County, California (the “Restrictions”).

C. The Restrictions require that the Property be owned occupied and not leased, and while HSK and her household members (excluding SSS) meet the income requirements under the Restrictions for the Property, SSS does not.

D. The Property is also encumbered by a Deed of Trust in favor of Authority (as successor to the housing assets of the former Covina Redevelopment Agency) dated July 25, 2007 and recorded on August 3, 2007 as Document No. 2007-1838954 in the Official Records of Los Angeles County, California. Said Deed of Trust secures two promissory notes totaling an original amount of $230,000. It was then modified to the total amount of $50,000 on September 20, 2011 and unrecorded to meet the lenders loan-to value ratio for refinancing or sale of the affordable housing unit and then reduced to the total amount of $36,000 on March 11, 2013 and recorded on

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ATTACHMENT B
-2-
12923-0001\3038473v1.doc
April 1, 2013 as Document No. 2013-0481582 in the Official Records of Los Angeles County, California. The two notes are comprised as follows:

1. The “Agency Loan Promissory Note” is in the original amount of $30,000. Said Agency Loan Promissory Note was modified on July 21, 2020 to credit the amount of the Down-Payment Assistance Program loan at the rate of 1/20th, or $1,500 per year for each full year that the program participant lives in the home, upon which there remains unpaid a principal balanced of $4,500. The Agency Loan accrues no fixed interest, but shall accrue Contingent Deferred Interest at the rate of one-point five percent (1.5%) per annum in a manner and in an amount provided for in Section 5 of the Note and subject to the exception set forth in Section 4 of the Note. The balance of all unpaid principal shall be due and payable on July 25, 2027. At the conclusion of the Note Period, provided that no sale or transfer occurs within this period, the note shall be automatically and completely forgiven.

2. The “Contingent Promissory Note” is in the original amount of $200,000.

Said Contingent Promissory Note was modified on September 20, 2011 to $20,000 was then reduced to $6,000, which remains unpaid a principal balance of $6,000 with interest rate of five point five (5.5%) per annum in a manner and in an amount provided for in Section 5 of the Note and subject to the exception set forth in Section 4 of the Note. The balance of all unpaid principal shall be due and payable on an event of default under the terms of the Declaration of Covenants, Conditions and Restrictions and Right of First Refusal to Purchase entered by and between the Payor and the Covina Redevelopment Agency and recorded in the Office of the County Recorder of Los Angeles County on August 3, 2007, as Instrument No. 2007183950 of Official Records, but shall not otherwise be payable. If no event of default has occurred by July 31, 2052, this Note shall be automatically and completely forgiven.

E. SSS and HSK have asked Authority to consent to and approve the Property Settlement and conveyance of a half interest (tenancy in common interest) in the Property by SSS to HSK to effectuate such Property Settlement, subject to the Restrictions and the Deeds of Trust.

F. The Authority is willing to do so, subject to the terms and conditions hereinafter set forth, including amendment of the Deeds of Trust and obligations they secure to provide that failure of SSS or HSK to comply with this Agreement shall be a default thereunder (and under the Restrictions).

AGREEMENT

1. SSS and HSK agree that SSS shall not occupy the Property; only HSK and her children shall occupy the Property (and any transferee of her tenancy-in-common interest who qualifies to own and occupy the Property under the Restrictions). If SSS or any successor-ininterest to his tenancy-in-common interest, other than HSK occupies the Property at any time, such occupancy shall be a default under the Restrictions and the Deeds of Trust and the obligations secured by the Deeds of Trust (which are hereby amended to reflect that such occupancy shall

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constitute default), and the Authority shall have the right to accelerate the obligations secured by the Deeds of Trust by written notice to SSS and HSK delivered to the Property, and shall have any and all legal and equitable remedies under and with respect to such obligations, the Deeds of Trust and the Restrictions and applicable law (including equitable relief) for such default.

2. SSS and HSK shall promptly deliver to the Authority a copy of the recorded deed by which SSS conveys to HSK a half interest (tenancy-in-common interest) in the Property.

3. Subject to compliance by SSS and HSK with the foregoing two paragraphs, the Authority hereby consents to the conveyance by SSS to HSK of a half interest (tenancy-in - common interest) in the Property subject to the Restrictions and Deeds of Trust.

4. SSS and HSK hereby represent and warrant to the Authority that SSS does not reside in or otherwise occupy the Property, and SSS and HSK shall from time to time, promptly after written request of the Authority delivered to the Property, execute a reaffirmation of such representation and warranty in a form required by the Executive Director and deliver it to the Authority.

5. The Authority shall have the right to monitor compliance with occupancy by requesting that SSS and HSK provide the following:
a. A current copy of mortgage statement, property tax bill or a current executed copy of lease/rental agreement showing HSK’s name and proving HSK’s residency address as 221 W. Zinfandel Drive, Unit 29, Covina, California 91723. b. A current copy of the last two months household utility bill (gas, electric, water, or trash). If HSK is sharing a residence and the utilities are not in HSK’s name or if utilities are included in the rent, two of the following may be provided in HSK’s name with HSK’s residency property address listed as 221 W. Zinfandel Drive, Unit 29, Covina, California 91723:

1. A copy of HSK’s current income tax documents;

2. HSK’s voter registration;

3. HSK’s Driver’s License;

4. A Government-issued document; and

5. HSK’s current payroll stub.
c. A current copy of mortgage statement, property tax bill or a current executed copy of lease/rental agreement showing SSS’s name and proving SSS’s residency address at an address other than 221 W. Zinfandel Drive, Unit 29, Covina, California 91723. d. A current copy of the last two months household utility bill (gas, electric, water, or trash). If SSS is sharing a residence and the utilities are not in SSS’s name or if utilities are included in the rent, two of the following may be provided in SSS’s name with

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SSS’s residency property address listed at an address other than 221 W. Zinfandel Drive, Unit 29, Covina, California 91723:

1. A copy of SSS’s current income tax documents;

2. SSS’s voter registration;

3. SSS’s Driver’s License;

4. A Government-issued document; and

5. SSS’s current payroll stub.

6. This Agreement shall bind and run with the land with respect to the interests of SSS and HSK in the Property, and shall bind all successors-in-interest to such interests.

7. This Agreement may be executed in counterparts, each of which and all of which together shall constitute one and the same agreement. Counterparts of this Agreement may be delivered by email, as follows: (i) to the Authority, at [email protected]; (ii) to SSS, at ___________; and (iii) to HSK, at ________________.

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

AUTHORITY: COVINA HOUSING AUTHORITY,
By:

Chris Marcarello, Executive Director
ATTEST:

By:

Fabian Velez, Secretary
APPROVED AS TO FORM:

By:

City Attorney
SSS:

SHAMEL S. SAMUEL,
an unmarried man
HSK:

HAIDY S. KELTA,
an unmarried woman
[ALL SIGNATURES OF PARTIES MUST BE DULY ACKNOWLEDGED
BY A NOTARY PUBLIC]

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

STATE OF CALIFORNIA

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

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

WITNESS my hand and official seal.

Place Notary Seal Above
Signature of Notary Public

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STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Place Notary Seal Above
Signature of Notary Public

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STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Place Notary Seal Above
Signature of Notary Public

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STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Place Notary Seal Above
Signature of Notary Public

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: October 21, 2025
Title: Request to Adopt Resolution CC 2025-110 and Approve Updates to the Covina Residential Rehabilitation Grant/Loan Program Handbook for the Administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Alice Leung, Management Analyst
Recommendation: 1. Approve Updates to the Covina Residential Rehabilitation Grant/Loan Program Handbook (Handbook) for administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program; and

2. Adopt Resolution CC 2025-110 Approving the Covina Residential Rehabilitation Grant/Loan Program Handbook (Program Policy Manual) for administration of Community Development Block Grant (CDBG) Residential Rehabilitation Program.

BACKGROUND:

The City of Covina is a recipient of the Federal Government’s Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funds which are targeted to benefit very-low, low, and moderate-income persons to eliminate slum and blight. These funds are received through a partnership with the Los Angeles Community Development Authority (LACDA). As a disbursing agent for these funds, the City administers the Covina Residential Rehabilitation Grant/Loan Program. The Program is designed to assist income-qualified, owner-occupied homeowners in maintaining the existing housing stock with necessary home repairs to correct health and safety issues, such as roof replacement, plumbing, and accessibility improvements.

This program is not a beautification program and may not be used to upgrade or beautify homes, except as a natural result of any rehabilitation performed.

This Program began in 1990. Due to the success of the program in preserving the available housing stock for very-low to low income residents, Staff developed a criteria for administering the low and very low income housing rehabilitation loan/grant, which was adopted and approved by the Covina Redevelopment Agency on September 19, 1995. Since that time, the Covina Redevelopment Agency has dissolved and the City of Covina is the successor entity, and many revisions have been made throughout the years.

On February 6, 2024, the Covina City Council approved the fifth revision to the Covina Residential Rehabilitation Grant/Loan Program Handbook (“Program Policy Manual”) for the administration of the CDBG Residential Rehabilitation Program to update the qualifying limits of applicants due to cost-of-living increase and policies that have become necessary to implement since the last update on September 19, 2013.

DISCUSSION:

To ensure that staff, homeowners, and contractors fulfill and understand the terms and conditions of all Program requirements and are aware of the Program policies, the Program Policy Manual was established. The Program Policy Manual provides steps in the rehabilitation process, the eligibility requirements, program criteria, funding terms and conditions, contract payments, record keeping, and overall program administration.

The last update to the Program Policy Manual was approved by the City Council in February 2024. Since that time, LACDA has issued several notices. A notice was issued on May 2, 2024, effective April 11, 2024, that

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environmental reviews performed by LACDA staff will include reviews for potential radon exposure. This notice is a compliance requirement by the U.S. Department of Housing and Urban Development (HUD, as required under 24 CFR Parts 50 and 58, which mandates that radon must be considered as part of the site contamination analysis. Any CDBG projects that fall in the high radon potential area in the Radon Potential Zone Map for Southern Los Angeles County would require radon testing. This notice affects the Covina Residential Rehabilitation Grant/Loan Program because all residential projects require an environmental review, which will include the radon requirement process to determine the radon level within a building or area. The potential affected area is as shown on map on Exhibit A of Attachment A.

On July 22, 2025, a notice was issued to be effective immediately that HUD mandates adherence to Federal Executive Orders for Federal Fiscal Year 2025 by all grantees. The notice requires documentation and selfattestation of lawful immigration status to verify the eligibility of recipients. More information is being developed by LACDA and the City will implement once further guidance is provided by LACDA.

Due to the compliance requirement, updates to the Program Policy Manual are necessary to address the inclusion of radon in the environmental review process and the verification of lawful immigration status of recipients for the Covina Residential Rehabilitation Projects. Additional revisions are proposed to address an increase in the maximum loan amount, clarification of eligible activities for improvement under the Program, and procedures following the death of an applicant.

The highlights of major changes as proposed are as follows:
 Section 1, General Provisions/Conditions for Grant/Loan Program, Part B, 4, page 5: Per CDBG Bulletin 25-0012 compliance with applicable Federal Executive Orders requires documentation and self-attestation of lawful immigration status to verify the eligibility of recipients of CDBG programs and/or funding. The City will implement additional requirements for program recipients to comply with the aforementioned Executive Orders.
 Section 1, General Provisions/Conditions for Grant/Loan Program, Part G, page 8: Maximum Grant/Loan Amount. The maximum amount allowed for a Deferred Payment Loan is $40,000 for a single-family home or $8,000 for a mobile home. For a single-family home, the first $10,000 is considered to be a grant and the remining $30,000 is a loan.
 Homeowner/Project Set Up in LACDA.org website, pages 24-25: Radon in the Environmental Review Process. Radon is a radioactive gas that forms when radium and certain other radioactive metals break down in rocks, soil, and water. It is found in nearly all soils and moves through the soil to the air and into structures through cracks and other areas of permeability. Building materials and groundwater may also be a source of indoor radon. Exposure to radon is from indoor inhalation and many radon-induced lung cancers can be prevented by testing and reducing radon levels in existing buildings. Effective April 11, 2024, environmental reviews performed by LACDA include reviews for potential radon exposure. U.S.

Department of Housing and Urban Development (HUD, as required under 24 CFR Parts 50 and 58, which mandates that radon must be considered as part of the site contamination analysis. Any CDBG projects that fall in the high radon potential area in the Radon Potential Zone Map for Southern Los Angeles County (As shown in the Radon Potential Zone Map of the City of Covina in attachment Exhibit A) would require radon testing. Further instructions for radon test requirements for Radon Potential Zoned will be provided to City Staff by LACDA when available.
 Eligible Activities, page 6: Eligible Property Improvements will be categorized by priority. Prioritizing eligible improvements will address necessary repairs to comply with municipal health, safety, and building codes, applicable code violations, as well as any other cosmetic work that is reasonable and deemed necessary or is related to the necessary repair to ensure public health and safety, as well as aid in the preservation of decent, safe and sanitary housing.
 Applicant Income Limits, page 17: All adultsin the household who have no income must sign a No Income Certification form.

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 Section 3, Residential Rehabilitation Grant/Loan Program Rehabilitation Inspection/Contractor Payment Procedures, Part E, page 29: Death of Applicant. In the event of the applicant’s death, no project funds shall be used to reimburse for repairs commenced after the date of death, unless the applicant is survived by a designated beneficiary with legal interest to the property or project. If the applicant’s death occurs after the commencement of work for which project funds have been approved, reimbursement in such cases shall be allowed for all work necessary to complete that phase and shall be pro-rated based on the portion of work completed at the time of the applicant’s death.

For the purposes of this clause, a “designated beneficiary” includes, but is not limited to, a surviving spouse, adult child, executor or administrator of the estate, trustee of a revocable or irrevocable trust, or any individual or legal entity legally entitled to inherit or assume rights to the property or project under a valid will, trust, or applicable state law.

The designated beneficiary must provide appropriate legal documentation, such as a death certificate, letters testamentary, proof of trust authority, or other evidence of legal entitlement, to establish their right to continue the project or receive reimbursement related to it.

The above referenced Program Policy Manual is attached for review and approval in its proposed final form as Attachment A, and the previous version is attached as Attachment B.

In 2009, the Program was amended to establish the current grant amount of $10,000 and loan amount of $20,000, for a total allowable expenditure of $30,000 per single-family home. The maximum amount available to mobile home owners was increased to $8,000, provided as a forgivable grant. Since that time, the cost of building materials has significantly increased, which has impacted contractor bidding prices for home rehabilitation projects. In response, Staff recommends amending the single-family loan amount to $30,000, resulting in a new total allowable expenditure of $40,000. This adjustment will allow the Program to better meet the needs of Covina residents and support the City’s goals of preserving its housing stock and enhancing the quality of life for program participants.

Staff recommends that the City Council adopt Resolution CC 2025-110 (Attachment C), approving the revised Covina Residential Rehabilitation Grant/Loan Program Handbook for the continued administration of the Community Development Block Grant (CDBG) Residential Rehabilitation Program.

FISCAL IMPACT:

This action has no fiscal impact.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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October, 2025

COVINA RESIDENTIAL REHABILITATION

GRANT/LOAN PROGRAM

HANDBOOK
(Funded using Community Development Block
Grant (CDBG) Funds)
This project has been
funded in part by the U.S.

Department of Housing and
Urban Development
through the CDBG
Program.
(PROGRAM POLICY MANUAL)
Adopted: 09/19/1995
Revision #1: 03/16/1998
Revision #2: 10/16/2001
Revision #3: 02/17/2009
Revision #4: 09/17/2013
Revision #5: 02/06/2024
Revision #6: 10/21/2025
City of Covina
Community Development Department - Special Projects Division 125 East College Street
Covina, CA 91723

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October, 2025
1 COVINA RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

POLICIES & PROCEDURES

TABLE OF CONTENTS
PAGE
POLICIES AND PROCEDURES. .......... .......... .................... .......... .......... ....... 2 SECTION 1 – General Provisions and Conditions....... .......... .......... ....... 2 SECTION 2 - Determining Eligibility ...... .................... .......... .......... ..... 14 SECTION 3 – Inspection/Contractor Payment Procedures .... .......... ..... 27 SECTION 4 – Reporting Procedures...... .................... .......... .......... ..... 45 APPENDICES........ .......... ......... .......... .......... .................... .......... .......... ..... 47

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October, 2025
2 SECTION 1

TABLE OF CONTENTS

GENERAL PROVISIONS AND CONDITIONS
PAGE
SECTION 1 -GENERAL PROVISIONS AND CONDITIONS.. .......... .......... ....... 3 A. Purpose ... ......... .......... .......... .................... .......... .......... ....... 4 B. Applicants ......... .......... .......... .................... .......... .......... ....... 4 C. Property Eligibility Requirements.................. .......... .......... ....... 5 D. Eligible Activities .......... .......... .................... .......... .......... ....... 6 E. Ineligible Repairs .......... .......... .................... .......... .......... ....... 7 F. Types of Grants/Loans.. .......... .................... .......... .......... ....... 8 G. Maximum Grant/Loan Amount .................... .......... .......... ....... 8 H. Interest Rate...... .......... .......... .................... .......... .......... ....... 9 I. Loan Terms........ .......... .......... .................... .......... .......... ....... 9 J. Other Loan Conditions . .......... .................... .......... .......... ..... 10 K. Miscellaneous Conditions........ .................... .......... .......... ..... 11 L. Refinancing and Subordination .................... .......... .......... ..... 12 M. Amendments..... .......... .......... .................... .......... .......... ..... 13

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3 CITY OF COVINA

RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

GENERAL PROVISIONS & CONDITIONS
SECTION 1
The CITY of Covina (CITY) is a recipient of the Federal Government's Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funds which are targeted to benefit very-low, low, and moderate-income persons to eliminate slum and blight. These funds are received through a partnership with the Los Angeles County Development Authority (LACDA). As a disbursing agent for these funds, the CITY administers a grant/loan program designed to assist eligible Homeowners in maintaining the existing housing stock of the incorporated areas of the CITY through home rehabilitation.

This program consists of the Covina Residential Rehabilitation Grant/Loan Program for Very Low-,Low- and Moderate-Income Residents (Rehab Program) as defined in CDBG Bulletin Annual Income Guidelines (as revised each year).

The Rehab Program is in compliance with CDBG regulations. All activities of this program are in accordance with criteria and standards set forth in Federal regulations governing CDBG Programs, 24 CFR Part 570, as amended.

The Rehab Program provides grant/loan funds of up to a maximum of $40,000 to owneroccupied single family detached homes and grant funds of up to $8,000 for owner-occupied mobile homes who fall within the category of very-low, low, and moderate income, as defined by the Department of Housing and Urban Development (HUD) as equal to or less than 80% of median income for the County of Los Angeles, as amended each year.

The grant/loan program is to be used to correct health and safety issues and aid in the preservation of decent, safe and sanitary housing within the CITY limits of the CITY of Covina. This program is not a beautification program and may not be used to upgrade or beautify homes, except as a natural result of any rehabilitation performed.

The loan program is administered by CITY personnel. As such, the CITY is responsible for marketing the program, processing and packaging rehabilitation grants/loans, performing onsite inspections, and acting as a quality control agent. The Homeowner is obligated to fulfill the terms and conditions of its contract with CITY, established CITY policies and procedures as outlined in this handbook, and comply with local codes and regulations (Covina Municipal Code).

This handbook has been written as an aid to the Homeowner and Contractor in fulfilling the terms and conditions of all requirements. Under no circumstances does this handbook supersede the responsibilities outlined in the actual Homeowner contracts or any Agreement.

This program was begun by the Covina Redevelopment Agency in 1990 at which time, the

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4 maximum allowable expenditure was $5,000. This was amended in 1995 to include a $4,000 grant with an additional $3,000 loan available. This was amended in 2001 to increase the additional loan amount available to $6,000, for a total allowable expenditure of $10,000 per single family home and a maximum of $3,000 for mobile homes and a maximum interest rate to apply to loans of 3%. This was amended in 2009 which increased the grant to $10,000 and the additional loan amount available to $20,000, for a total allowable expenditure of $30,000. The amount available to mobile home owners increased to a maximum of $8,000, which is a grant. Amended in 2025 to increase the loan amount to $30,000, for a total allowable expenditure of $40,000 per single family home.

General Provisions and Conditions for program are delineated herein.

I. GENERAL PROVISIONS/CONDITIONS FOR GRANT/LOAN PROGRAM A. Purpose
Covina Residential Rehabilitation Grant/Loan Program shall be used to finance the cost of repairs to correct code violations or incipient violations of CITY's Municipal Code and conditions determined to be detrimental to public health and safety, as well as aid in the preservation of decent, safe and sanitary housing. The type of grant/loan offered through the Rehab Program is:

Deferred Payment Grant/Loan for Single Family Homes (3%) For mobile home owners, $8,000 is considered a grant. For single family homes, the first $10,000 spent is considered a grant, which is written off over 5 years (20% each year), on the anniversary date of the project completion date, dependent upon meeting certain criteria. Any expenditure over $10,000 and up to a maximum of $40,000 is a loan which accrues SIMPLE interest of three percent (3%) for 10 years, beginning on the date the project is completed subject to certain criteria.

Grant for Mobile Home Rehabilitation, a grant of up to $8,000 is available.

Marketing
The CITY shall use any marketing strategies it sees fit as part of the overall marketing strategy to contact all property owners eligible for program.

B. Applicants
Grant/Loans shall be given to eligible very-low, low, and moderate income, residential owner-occupants, who cannot otherwise obtain funding through conventional loans or other sources, to cover the cost of necessary housing rehabilitation. The entire process, from qualifying for participation in the program to completing rehabilitation will take no longer than six (6) months.

1. Owner-occupants, or Homeowners, shall be considered to be any person(s) that holds title to the home being rehabilitated and who is/are legally responsible for repayment of the grant/loan. In the case of

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5 multiple ownership, the signature of each titleholder is required on all appropriate documents. Income for all members of the household and/or any person(s) listed on title of the property in question, as defined by Section 61 of the IRS Code of 1954, as amended, governs grant/loan eligibility.

2. Applicants who have participated in the program previously must wait a minimum of ten (10) years prior to applying for assistance again.

Applicants who have been participants at any time in the past shall be subject to restrictions on the total amount available as described in Section I.G.

3. Conflict of Interest. Covina Residential Rehabilitation Grant/Loans will not be granted to any member of the City Council or the governing body of the County of Los Angeles, or to any person who exercises any functions or responsibilities in connection with the administration of the Covina Residential Rehabilitation Grant/Loan Program. Members of the above stated organizations shall have no interest, direct or indirect, in the proceeds from the Covina Residential Rehabilitation Grant/Loan or in any contract entered into by the Homeowner for the performance of the work financed, in whole or in part, with the proceeds of the grant/loan.

Further, any Contractor who contracts with a Homeowner agrees that any conflict or potential conflict of interest shall be fully disclosed prior to execution of the contract and shall comply with all applicable federal, state and county laws and regulations governing conflicts of interest, in accordance with 24 CFR Part 84, Sec. 84-42.

4. Per CDBG Bulletin 25-0012, compliance with applicable Federal Executive Orders requires documentation and self-attestation of lawful immigration status to verify the eligibility of recipients of CDBG programs and/or funding. The City will implement additional requirements for program recipients to comply with the aforementioned Executive Orders.

C. Property Eligibility Requirements

1. Homeowner shall have sufficient equity in the home to secure the grant/loan. Equity will be calculated based on using estimated value of the home as listed on www.zillow.com or any other comparable tool and by subtracting all outstanding amounts due in any lien on the home.

2. For all grants/loans, the home must be owner-occupied, as the principal residence of the homeowner/applicant for a minimum of twelve (12) months prior to the date of the grant/loan application. Exceptions to this requirement may be made in hardship cases at the sole discretion of the CITY.

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6 3. The home under consideration for rehabilitation must be residential and consist of either one single family house or single mobile home on one lot. Properties with more than one unit will be considered at the sole discretion of the CITY.

4. Owner shall not have any restrictions or encumbrances that would unduly restrict the good and marketable nature of the ownership interest as determined by the CITY. Example: Non-Revocable Trust.

5. Homeowner shall be current in mortgage payments to lender, or be able to show that regular monthly payments are being made.

D. Eligible Activities
Eligible Property Improvements will be categorized by priority. Prioritizing eligible improvements will address necessary repairs to comply with municipal health, safety, and building codes, applicable code violations, as well as any other cosmetic work that is reasonable and deemed necessary or is related to the necessary repair to ensure public health and safety, as well as aid in the preservation of decent, safe and sanitary housing.

1. Improvements that may be financed can be found in CDBG Bulletin 06- 0035 and are:
a. Code violations
b. Correction of incipient violations
c. Cost effective energy conservation measures, excluding solar heating, cooling and water systems
a. Removal of lead-based paint or any hazard conditions (*Department of Housing and Urban Development 24 CFR Part 35, 510, 511, 570 and 590, as amended)
e. Removal of barriers to the handicapped
f. Removal of rodents and roaches (pest control)
g. Removal of termites and repair of termite damage
h. General property improvements as an integral part of the rehabilitation work;
i. Bedroom and bathroom additions to eliminate overcrowding.

Room Additions – as funds are limited, room additions will not be considered except in extreme conditions.

2. Type of work:
a. Appliances:

Appliances will be considered only if the gas or electrical company determines an existing built-in stove or oven to be inoperable.

Replacement requests must be accompanied by written
justification and a gas/electrical company work order (code violations).

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7 b. Driveways:

Driveways will be considered for grants/loans only if the CITY determines that the present driveway constitutes a detriment to public health and a safety hazard. Driveway requests must be accompanied by written justification and pictures.
c. Sandblasting and Stucco Work:

Sandblasting or Stuccowork to the exterior will be considered for grants/loans only if the exterior is damaged to the extent that it is more expedient to sandblast or stucco.
d. Garages:

New construction of garages and carports will only be considered for grants/loans if the present garage or carport constitutes a detriment public health and a safety hazard.
e. Flooring:

Kitchen and Bathroom. If flooring is required in kitchen and bathroom areas, single sheet linoleum type or composition is recommended. Ceramic or porcelain tile may be used if
Homeowner is able to justify the cost of installing such is comparable to installing linoleum- or composition-type flooring.

Other areas of the home. Will be considered if occupant is handicapped and replacement of flooring makes it easier to ambulate within the home.

E. Ineligible Repairs
Ineligible rehabilitation repairs include cosmetic repairs, speculative income producing renovation work, luxury remodeling, and convenience repair work.

Materials, fixtures or equipment of a type or quality which exceeds that customarily used in properties of the same general type as the property to be rehabilitated are ineligible. The following improvements are not eligible under the Program:

1. Barbecue Pits

2. Burglar Alarms

3. Flower Boxes or Planters

4. Greenhouses

5. Animal Kennels

6. Indoor/Outdoor Fireplaces or Hearths

7. Penthouses

8. Photo Murals

9. Stands (planters, room dividers, etc.)

10. Walls which serve as partial room dividers

11. Steam cleaning of exterior surfaces

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8 12. Television Antenna

13. Tennis Courts

14. Tree Surgery

15. Drapes, Shades, Blinds

16. Exterior Window Awnings

17. Yard Sprinkler Systems

18. Storage Shed

19. Microwave Oven

20. Patios (except repairs if attached to home only and permit on file at CITY Building Department approving patio construction)

21. Wallpaper

22. Landscaping (planting flowers, plants or trees)

23. Water Purifier

24. Kitchen appliances which are designed and manufactured to be free standing and are not built-in and permanently affixed as an integral part of the kitchen in a residential structure.

25. Bathhouse, swimming pools, hot tubs, spas, jacuzzi or accessories for any of these

26. New construction except items that will remedy a public health and safety hazard

27. Purchase, installation, and repair of furniture

28. Any items considered “Luxury”

29. Any items considered to be movable
F. Type of Grant/Loans
The only type of Grant/Loan currently available for single family homes is a Deferred Payment Loan. For mobile homes, there is only a Grant program.

Deferred Payment Loans and Mobile Home Grants are available to qualified low-income applicants, whose income does not exceed 80% of County Median Income, as published on the California Department of Housing & Community Development website for “CDBG and HOME” programs.

G. Maximum Grant/Loan Amount
The maximum amount allowed for a Deferred Payment Loan is $40,000 for a single-family home or $8,000 for a mobile home. For a single-family home, the first $10,000 is considered to be a grant and the remaining $30,000 is a loan.

However, this amount may be increased based on the extent of rehabilitation necessary to achieve the desired Housing Quality Standards if approved by Community Development Director.

PRIOR participants of the program are ONLY allowed up to the current maximum amounts for the program. For instance, if a participant received a grant in the past of $4,000, and a loan for $1,000, the amount of money available to this participant now, would be $6,000 in grant money and $29,000 of loan money.

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9 H. Interest Rate
The loan portion of a Deferred Payment Loan shall bear a 3% SIMPLE INTEREST RATE. Interest will accrue for 10 years only. Except under certain circumstances, the grant portion will not accrue interest.

The grant for mobile home rehabilitation will not accrue interest.

I. Loan Terms

1. General
a. The Grant/Loan shall be between the CITY and the Homeowner. b. The Homeowner has the right to repay the loan portion at any time, in part or in full, without prepayment penalties. c. The Homeowner must pay in full the unpaid principal of the loan plus any accrued interest that is due on the loan at the time of refinancing the single-family home. Under certain circumstances, the grant may become a part of the loan and subject to
repayment.

2. Deferred Loans
a. The loan portion of the grant/loan shall bear interest for 10 years from the date of the Promissory Note. No more interest shall be added after the 10th year.
b. The loan payments shall be deferred during the life of the loan.

No monthly payments are required. However, the Homeowner, at any time, may elect to make a minimum monthly payment of $25.00 or more.

3. Repayment of Grant/Loan
a. Provided that the Homeowner continues to (i) hold title to the home, (ii) reside in the home as his or her principal residence, (iii) does not refinance the home and (iv) does not transfer the home to another person, whether by sale, gift, bequest or intestate succession (except as may be allowed by the CITY under
Section J.1. below), the principal and accrued interest on the loan shall not become due and payable by the Homeowner to the CITY.
b. Additionally, the amount of any grant for a single-family home shall be written off/forgiven at a rate of 20% for each 12-month period after the project completion date that the conditions in the last paragraph are met. If the conditions are met for a period of 5 years (60 months) the grant shall be fully written off and the

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10 Homeowner shall have no obligation to repay any portion of the grant.
c. If the above conditions are not met, the full unpaid principal amount of the loan plus accrued interest shall be immediately due and payable to the CITY. In addition, the grant amount will no longer continue to be written off and prior amounts written off may be reversed. The grant amount shall become a loan which shall accrue interest at the rate set forth above and shall also become immediately due and payable to CITY.
d. Recertification of continued principal residence occupancy may be required to be completed for each of the five (5) years following the anniversary date of the completion of the rehabilitation.

J. Other Grant/Loan Conditions
Specific terms and conditions for a Covina Residential Rehabilitation Grant/Loan are incorporated in the Promissory Note, secured by a Deed of Trust.

Additionally, Homeowner shall agree to comply with following terms and conditions:

1. Assignment and Assumption:

Covina Residential Rehabilitation Grant/Loans are generally not assignable or assumable. But the CITY may consider the following exceptions:
a. The title to the home has not been sold or transferred except to the Homeowner's spouse (as a consequence of marriage,
dissolution of marriage, or death), or to a son, daughter and/or legal dependent that will own and occupy the home as his or her primary residence; and
b. The new Homeowner meets these eligibility criteria and his or her income is such that the loan could not be repaid by refinancing from another source without the new Homeowner exceeding his or her ability to afford his or her housing costs. Such evidence may include income verifications and written rejections or refinancing applications from lending institutions, which provide the reasons for rejection.
e. If it is determined by the CITY that the new Homeowner is not eligible for assignment and assumption, the grant/loan shall be immediately due and payable.

2. Fire Insurance Requirements
The CITY verifies fire insurance coverage at the time of applying for the grant/loan and through any rehabilitation work done.

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11 3. Refinancing – If Homeowner decides to refinance the home, any amount outstanding for the grant/loan must be repaid at that time, unless otherwise approved by the CITY. The CITY will only consider providing a loan subordination without immediate loan repayment if the refinance is solely to obtain a lower rate mortgage with no cash out. The CITY will not subordinate for reverse mortgages.

4. Assets – Total assets (not including home to be rehabilitated) must not be more than $60,000.

K. Miscellaneous Conditions

1. All applicable work funded by a grant/loan shall conform to cost effective energy conservation standards.

2. In compliance with 24 CFR Part 35, lead based paint products shall not be used on any project funded by a grant/loan.

3. Contractor shall keep all records of funds received from the CITY and make them accessible for audit or examination for a period of five (5) years after final payments are issued and other pending matters are closed (24 CFR Part 200). The CITY shall maintain for a period of five (5) years after the expiration of the contract with the Homeowner, complete and adequate financial records and accounts as considered necessary by the Los Angeles County Development Authority (LACDA) to assure proper accounting for all program funds and to support all program expenditures.

4. Contractor may not conduct any activity, including any payment to any person, officer, or employee of any agency or member of Congress in connection with the awarding of any federal contract, grant, or loan, intended to influence legislation, administrative rule-making or the election of candidates for public office during time compensated for under representation that such activity is being performed as a part of the contract responsibility.

5. It is understood that each person/entity/firm who applies for a County Development Authority contract, and as part of that process, shall certify that they are familiar with the requirements of the Los Angeles County Code Chapter 2.160, (Los Angeles County Ordinance 93-0031); and that all such persons/entities/firms have and will comply with the County Code, and; that any person/entity/firm who seeks a contract with the County Development Authority shall be disqualified therefrom and denied the contract and, shall be liable in civil action, if any lobbyist, lobbying firm, lobbyist employer or any other person or entity acting on behalf of such person/entity/firm fails to comply with the provisions of the County Code.

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12 6. Executive Order 11246 requires that during the performance of any contract subject to this policy, the contractor agrees not to discriminate against any employee or applicant for employment because of race, religion, sex, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, religion, sex, color, or national origin. Such action shall include, but not limited to, the following: employment upgrading, demotion or transfer: recruitment or recruitment advertising: layoff or termination: rates of pay or other forms of compensation: and selection for training, including apprenticeship.

The contractor shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contractor setting forth the provisions of this nondiscrimination clause.

7. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u, requires that to the greatest extent feasible, opportunities for training and employment be given to lower-income residents of the project area and contracts for work in connection with the project be awarded to business concerns, which are located in, or owned in substantial part, by persons residing in the area of the project.

8. Title VI of the Civil Rights Act of 1964 and Section 109, Title I of the Housing and Community Development Act of 1974, provides that no person shall, on the ground race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Title.

9. Prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975, or with respect to an otherwise qualified handicapped individual, as provided in Section 504 of the Rehabilitation Act of 1973, shall also apply to any such program or activity.

L. Refinancing and Subordination
The CITY will, on a case-by-case basis review and approve or deny subordination requests from loan recipient. The time to complete and approve a subordination application varies. Typically, it takes between one and two months. To request the CITY to subordinate, homeowners/loan recipient must submit in writing the following information to Special Projects Division:

1. The reason for the subordination request (Sale, refinance, or cash out).

2. The name, address, contact person (s) at the cooperating financial institution.

The CITY will only consider providing a loan subordination without immediate loan repayment if the refinance is solely to obtain a lower rate mortgage with no cash out. The CITY will not subordinate for reverse mortgages.

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13 M. Amendments
Amendments to the Program Policy Manual may be made by the City Manager administratively, with the exception of Federal regulations and CDA procedures, which shall remain unmodified.

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14 SECTION 2

TABLE OF CONTENTS

DETERMINING ELIGIBILITY
PAGE
SECTION 2 – DETERMINING CLIENT ELIGIBILITY............. .......... .......... ......... ...... 14 I. GRANT/LOAN PROGRAM PROCEDURES............. .......... .......... ......... ...... 15 A. Introduction........ .......... .......... .................... .......... ..........……………15 B. Application Procedure... .......... .................... .......... .......... ......... ...... 15 C. Grant/Loan Review and Approval Process….……….. ....... ......... ...... 16 D. Applicant Income Limits .......... .................... .......... .......... ......... ...... 17 E. Initial Inspection. .......... .......... .................... .......... .......... ......... ...... 22 F. Write-up of Rehabilitation......... .................... .......... .......... ......... ...... 22 G. Application Approval/Rejection .................... .......... .......... ......... ...... 23 H. Lead Based Paint/Asbestos Inspection Reports...... .......... ......... ...... 23 I. Deed Recording/Note Signing. .................... .......... .......... ......... ...... 23 J. Homeowner/Project Set-up in LACDA.org Website .......... ......... ...... 23

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15 SECTION 2

COVINA RESIDENTIAL REHABILITATION GRANT/LOAN

DETERMINING CLIENT ELIGIBILITY
I. GRANT/LOAN PROCEDURE
A. Introduction
This section delineates the steps involved in the processing of Grants/Loans and includes procedure related to the packaging of grant/loan applications, and the reviewing of the package and approval of the grant/loan by the CITY.

B. Application Procedure
A Preliminary Application is completed by Homeowners desiring to participate in the Grant/Loan Program. Included in this form is a description of the type of rehabilitation work requested. This form is signed and dated by the Homeowner. This form is used to place the Homeowner on the CITY’s waiting list. When there is available funding, the Homeowner is contacted and asked to complete a more in-depth application.

If the Homeowner is still interested in participating in the program, the Homeowner is then responsible for submitting all requested documentation to the CITY for approval.

Application Process
The following describes procedures for the handling of the grant/loan application and the packaging of the final grant/loan application. This process will take no more than four (4) weeks to complete.

1. Eligibility Determination
The CITY sends out the detailed application packet. Homeowner must supply the CITY with the following documents:
(a) Completed application
(b) Property tax statement
(c) Paycheck stubs, or other income documentation for the last 3 months
(d) AFDC, Social Security, Pension, dividends, interest for the last 3 months
(e) Income Tax Returns for 3 years or statement of non-filing Federal income tax returns for the previous three (3) years are required as the primary means of income verification for all grants/loans. If the Homeowner does not earn sufficient income to warrant the filing of a tax return, CITY will require a statement of non-filing, signed by the Homeowner in the place of the Federal income tax return
(f) Current mortgage statement for all mortgages on the subject home
(g) Current fire insurance policy on the subject home

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16 (h) Signed acknowledgement of receiving “A Consumer Guide to Asbestos”, “Protect Your Family From Lead in Your Home” and “Watch Out for Lead Based Paint Poisoning”
(i) Credit Authorization form

2. The CITY is responsible for explaining program details to the Homeowner and highlighting such facts as the terms, conditions, and repayment terms, as well as to make clear there are no required monthly payments; however, the Homeowner may elect to make a minimum monthly payment of $25.00 or more. The Homeowner must understand that a lien may be placed on the subject home for the grant/loan amount until it is repaid or written off. The Homeowner must understand that the contract is a private contract between the Homeowner and Contractor.

3. The Homeowner is advised that a Lead-Based Paint Inspection/Risk Assessment Report and an Asbestos Inspection Report will be required.

These reports are provided at the Homeowner’s expense; any costs resulting from these inspections will be incorporated into the grant/loan.

As a part of the application package, “A Consumer Guide to Asbestos” and “Protect your Family From Lead in your Home” as well as “Watch Out For Lead-Based Paint Poisoning” is distributed to the Homeowner.

The Homeowner must sign and acknowledge receipt of these informational packets.

A Lead Based Paint and Asbestos Containing Material Test shall be performed on each property considered for rehabilitation. The CITY’s Contractor (which shall have a valid contract in place between the CITY and the Contractor), shall be used for such testing. This Contractor submits completed reports to the CITY.

The CITY shall provide a copy of each report to the Homeowner. The Homeowner acknowledges receipt of reports by signing “Notice of Asbestos Evaluation, Notice of Lead Hazard Evaluation” form which is maintained in Homeowner file.

C. Grant/Loan Review and Approval Process
The process for the review and approval of the application is described below:

1. Once all of the required documents are received, they are reviewed.

2. A copy of the current CDBG Bulletin-Income Guidelines is placed in the file with the computation of Homeowner total income and verification that the Homeowner qualifies based on income limits. See Section D below for more detailed information.

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17 3. A visual inspection appointment is made with the Homeowner and CITY personnel as well as a Code Enforcement Officer in order to assess the needs of the Homeowner, based on the preliminary application.

4. The CITY shall advise the Homeowner, in writing, of grant/loan approval by issuing an Approval Letter. This letter details the program as well as discusses the work authorized based on the visual inspection and recommendations made by the Code Enforcement Officer.

5. If the grant/loan is disapproved due to lack of justification or clarification, the Homeowner is advised in writing and given a deadline to come and pick up any supporting documentation at the CITY. If supporting documentation is not picked up by the deadline, it is shredded.

D. Applicant Income Limits

1. Gross annual family income cannot exceed 80% of the annual family median income, adjusted for family size, established by HUD for Los Angeles County. Income limits are subject to change by HUD. Income is defined as the combined income of all members of the household, as defined in 24 CFR § 5.609 (Part 5 annual income) annual income as reported under the census long form, as amended.

2. The gross income limits for the Grant/Loan Program for Fiscal Year 2025-2026 per CDBG Bulletin 25-0006 are shown below:

Persons Deferred Loans
Per Family (80% Median Income)*
1 $84,850
2 $96,950
3 $109,050
4 $121,150
5 $130,850
6 $140,550
7 $150,250
8 $159,950
*Income after adjustment for allowable inclusions and exclusions Note: When future legislative changes are made to the definition of annual income, the change will be published in the Federal Register and agencies will be given 60 (sixty) days from the date of publication to implement the changes.

3. All adults in the household who have no income must sign a No Income Certification form.

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18 4. Income Inclusions (HUD Handbook 4350.3, Chapter 5; 24 CFR 5.609) a. Salary Income. The full gross amount before any payroll deductions of wages and salaries, overtime pay, commissions, fees, tips, and bonuses, and other compensation for personal services
b. Self-Employment Income. The net income from operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for
depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.
c. Personal Interest. Interest, dividends, and other net income of any kind from real or personal property:

Expenditures for amortization of capital indebtedness shall not be used as a deduction in determining net income. An allowance for depreciation is permitted only as authorized in paragraph (b) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD.
d. Pension/Social Security/Disability/Supplemental Security Income.

The full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum payment for the delayed start of a periodic payment.
e. Payments in lieu of earnings. Unemployment, worker's compensation, and severance pay (but see paragraph c. under Income Exclusions).
f. Welfare Assistance/General Relief. If the welfare assistance payment includes an amount specifically designated for shelter

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19 and utilities that is subject to adjustments by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:
(1) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (2) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount
calculated under this paragraph shall be the amount
resulting from one application of the percentage.
g. Alimony/Child Support. Periodic and determinable allowance, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling.
h. All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family, spouse, or other person whose dependents are residing in the unit (but see paragraph (g) under Income Exclusions).
i. Rental Income. Income received from rental property. j. In-Home Supportive Services. Income earned by a
caregiver/caretaker providing in-home supportive services for a different household.

4. Income Exclusions
a. Income from employment of children (including foster children) under the age of 18 years.
b. Payments received for the care of foster children.
c. Lump-sum additions to family assets, such as inheritance, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (but see paragraph c. of Income Inclusions).
d. Amount received by the family that is specifically for, or in reimbursement of, the cost of medical expenses for any family member.

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20 e. Income of a live-in aide for the same household.
f. Amount of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the Government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of the student. Any amounts of such scholarships or payments to a veteran not used for the above purposes that are available for subsistence are to be included in income.
g. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire.
h. Amounts received under training programs funded by HUD. i. Amounts received by a disabled person that is disregarded for a limited time for purposes of supplemental security income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS).
j. Amounts received by a participant in other publicly assisted programs that are specifically for or in reimbursement of out-ofpocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and that are made solely to allow participation in a specific program.
k. Temporary, nonrecurring, or sporadic income (including gifts). l. Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the 24 CFR 5.609(c). The following is a list of types of income that qualify for that exclusion (9/27/89 regulations):
(1) The value of the allotment provided to an eligible
household under the Food Stamp Act of 1977.
(2) Payments to volunteers under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired
Senior Volunteer Program, Foster Grandparents Program,
youthful offender’s incarceration alternatives, senior
companions).
(3) Payments received under the Alaska Native Claims

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21 Settlement Act (43 U.S.C. 1626(c)).
(4) Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes (25 U.S.C. 459)(e)).
(5) Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy
Assistance Program (42 U.S.C. 8624(f)).
(6) Payments received under programs funded in whole or in part under the Job Training Partnership Act.
(7) Income derived from the disposition of funds of the Grand River Band of Ottawa Indians.
(8) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission
or the Court of Claims (25 U.S.C. 1407-1408) or from
funds held in trust for an Indian tribe by the Secretary of Interior (25 U.S.C. 117a).
(9) Amounts of scholarships funded under Title IV of the Higher Education Act of 1985 including awards under the Federal work-study program or under the Bureaus of
Indian Affairs student assistance programs, that are made available to cover the costs of tuition fees, books,
equipment, materials, supplies, transportation, and
miscellaneous personal expenses of a student at an
educational institution (20 U.S.C. 1087 uu).
(10) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056(f)).
(11) Any earned income tax credit to the extent it exceeds income tax liability.
(12) Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other funds established
pursuant to the settlement in the In Re Agent Orange
Product Liability Litigation, 597 F. Supp. 740 (E.D.N.Y. 1984); In Re Agent Orange product liability litigation, MDL No. 381 (E.D.N.Y.).
(13) Payments received under the Maine Indian Claims
Settlement Act of 1980.

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22 E. Initial Inspection to Determine Extent of Work

1. The CITY personnel and CITY Code Enforcement inspector are responsible for making an initial, on-site inspection of the property to be rehabilitated for identification of code violations (A items = code violations; B items = incipient violations, i.e., those items which must be corrected to meet codes) elimination of items creating a detriment to public health and safety. Code violations are identified and defined in the Covina Municipal Code. A Pre-Inspection Request Form is given to Code Enforcement Officer for notes and signature and is filed in the Homeowner file.

2. During the course of the initial inspection, the CITY personnel is obligated to take application measurements, and at least 10-12 photos of all items to be rehabilitated or corrected. Photos should include at least 1 full view of exterior of property. A Photography Permission Form is signed by Homeowner and placed in the Homeowner file.

F. Write-up of Rehabilitation
The CITY shall prepare a Bid Work Write Up for all its rehabilitation jobs.

CITY personnel will prepare and complete an accurate write-up for all items of work to be done. The Bid Work Write Up must include all estimated square or linear footage, room sizes, as required and necessary.

CITY Code Enforcement Officer will make notes as to any Covina Municipal Code Violations or other items for rehabilitation and sign and return this form to CITY personnel for inclusion in Homeowner Grant/Loan file. The Code Enforcement Officer’s recommendations will be incorporated into the Bid Work Write Up.

Contingency Reserve Money

1. The CITY permits a 10% contingency allowance, with exceptions, to cover unforeseen conditions arising during the rehabilitation process. An "unforeseen" circumstance means "not seen as a development beforehand" and encompasses items such as plumbing, faulty electrical, replacement of dry rot and termite infested lumber, unforeseen water damage or other conditions which cannot be determined until the actual rehabilitation has begun.

2. The 10% contingency allowance comprises 10% of the rehabilitation contract.

3. Request for use of contingency funds shall occur through the Change Order process (See Section 3.II.I) with CITY prior approval.

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23 G. Application Approval/Rejection
If the application is approved, the Homeowner is notified of the approval along with a list of next steps that must be taken to continue in the program by issuing an Approval Letter.

If the loan is rejected, the Homeowner is notified of the reason for rejection.

If the application and all supporting documentation is not received by the CITY from the Homeowner within four (4) weeks after Homeowner is sent the application, the grant/loan will automatically be rejected.

H. Lead Based Paint/Asbestos Containing Material Reports After the Homeowner is approved to participate in the Program, a Lead-Based Paint Inspection/Risk Assessment Report and an Asbestos Inspection Report are obtained. These reports are provided at the Homeowner’s expense; any costs resulting from these inspections are incorporated into the grant/loan.

A copy is provided to the Homeowner and receipt of such is evidenced by the “Notice of Asbestos Evaluation, Notice of Lead Hazard Evaluation” form.

I. Deed Recording/Note Signing/Grant & Loan Agreement

1. CITY personnel shall schedule date with the Homeowner for the signing of the documents listed below:
a. Deed of Trust (must be notarized), if applicable
b. Promissory Note
c. Residential Grant and Loan Agreement

2. CITY personnel are responsible for ensuring the accuracy and validity of the loan documents. The Homeowner shall be advised when payments are due and where to make the grant/loan payments. It is important that the Homeowner review the terms, conditions, and repayment of the program to insure the Homeowner’s full understanding.

3. The borrower shall provide security for the grant/loan in the form of a Promissory Note, and if applicable, a Deed of Trust. CITY will not accept mortgage interest in the property at less than third (3rd) position on all loans.

J. Homeowner/Project Set Up in LACDA.org website

1. Historical Preservation/Environmental Impact Clearance a. Historical Preservation, Section 106, National Historic Preservation Act of 1966 as amended 54 USC 300101 et seq. mandates that all activity in which the Federal Government is directly or indirectly involved be subject to review for compliance with Section 106. In order to comply with Section 106, the CITY requires that clearance be submitted for review, accompanied by a set of four (4) photos, to a Basic Property Identification Form for

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24 loan amounts up to $24,999 and the property information. These photos will include:
(1) 1 front view of the dwelling to be rehabilitated
(2) 1 view each (total of 2) of the houses on each side of the dwelling to assess the architectural design of neighboring homes
(3) 1 view of the house directly across the street from the dwelling
b. Detailed Property Identification Form (DPI), the form must be submitted along with four photos, and property information for loan amounts at or above $25,000.
c. After receipt by LACDA, the form is forwarded to LACDA's CDBG Historic Preservation Planner for review and clearance. The loan consultant should allow approximately seven (7) days for clearance. In the interim, normal loan consultant processing of the loan may continue.
d. Should the CDBG Historic Preservation Planner's review establish that the structure may be eligible or placement into the National Register, the work write-up and completed research forms are sent to the State of California Historical Preservation Office (SHPO), for official determination of National Register eligibility.

The Loan Consultant shall be notified immediately. A time frame for the above is approximately 45 days.
e. CITY shall act as a liaison between the Homeowner and the SHPO throughout the rehabilitation process, advising the Homeowner of any special requirements and documentation necessary for completion of the project.

2. Radon in the Environmental Review Process
Radon is a radioactive gas that forms when radium and certain other radioactive metals break down in rocks, soil, and water. It is found in nearly all soils and moves through the soil to the air and into structures through cracks and other areas of permeability. Building materials and groundwater may also be a source of indoor radon. Exposure to radon is from indoor inhalation and many radon-induced lung cancers can be prevented by testing and reducing radon levels in existing buildings.

Effective April 11, 2024, environmental reviews performed by LACDA include reviews for potential radon exposure. U.S. Department of Housing and Urban Development (HUD, as required under 24 CFR Parts 50 and 58, which mandates that radon must be considered as part of the

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25 site contamination analysis. Any CDBG projects that fall in the high radon potential area in the Radon Potential Zone Map for Southern Los Angeles County (As shown in the Radon Potential Zone Map of the City of Covina in attachment Exhibit A) would require radon testing. Further instructions for radon test requirements for Radon Potential Zoned will be provided to City Staff by LACDA when available.

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26 Exhibit A

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27 SECTION 3

TABLE OF CONTENTS

INSPECTION/CONTRACTOR PAYMENT PROCEDURES
PAGE
SECTION 3 - INSPECTION/CONTRACTOR PAYMENT PROCEDURES... ......... ...... 27 I. INSPECTION/BID PROCESS/
AGREEMENT FOR REHABILITATION ............ .......... .......... ......... ...... 28 A. Inspection Process ....... .......... .................... .......... .......... ......... ...... 28 B. Bid Process ....... .......... .......... .................... .......... .......... ......... ...... 28 C. Review of Bids... .......... .......... .................... .......... .......... ......... ...... 30 D. Agreement for Rehabilitation... .................... .......... .......... ......... ...... 31 E. Death of Applicant ....... .......... .................... .......... .......... ......... ...... 31 II. PRE-CONTRUCTION CONFERENCE................... .......... .. …. .. ......... ...... 32 A. Responsibilities.. .......... .......... .................... .......... .......... ......... ...... 32 B. Permits and Codes ....... .......... .................... .......... .......... ......... ...... 33 C. General Guarantee and Warranty ................ .......... .......... ......... ...... 33 D. Conflicts... ......... .......... .......... .................... .......... .......... ......... ...... 33 E. Breach of Conditions .... .......... .................... .......... .......... ......... ...... 34 F. Hold Harmless Clause .. .......... .................... .......... .......... ......... ...... 34 G. Property Access/Maintenance. .................... .......... .......... ......... ...... 34 H. Sign Contracts... .......... .......... .................... .......... .......... ......... ...... 35 I. Change Orders .. .......... .......... .................... .......... .......... ......... ...... 36 J. Substitution of Contractor......... .................... .......... .......... ......... ...... 37 III. CONTRACTOR PAYMENT PROCEDURE ............ .......... .......... ......... ...... 38 A. Rehabilitation Payments.......... .................... .......... .......... ......... ...... 39 B. Time Extension of Agreement for Rehabilitation...... .......... ......... ...... 41 C. Monitoring ......... .......... .......... .................... .......... .......... ......... ...... 41 D. Rehabilitation Final Payment... .................... .......... .......... ......... ...... 42 E. CITY Inspection at Final .......... .................... .......... .......... ......... ...... 43 IV. CLOSEOUT OF THE PROJECT....... .................... .......... .......... ......... ...... 43 A. Disbursement Printout Sheet... .................... .......... .......... ......... ...... 43 B. Close Out Letter .......... .......... .................... .......... .......... ......... ...... 43 C. Close Out in LACDA.org.......... .................... .......... .......... ......... ...... 44

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28 SECTION 3

RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

REHABILITATION INSPECTION/CONTRACTOR PAYMENT PROCEDURES I. INSPECTION/BID PROCESS/AGREEMENT FOR REHABILITATION
A. Inspection Process - The inspection process is described below.

Responsibility for inspection activities lies with the CITY and the CITY's inspector(s).

1. CITY personnel and CITY Code Enforcement Inspector are responsible for making an initial, on-site inspection of the property to be rehabilitated for identification of code violations and other items to be rehabilitated.

Code violations are identified and defined in the Covina Municipal Code.

2. During the course of the initial inspection, CITY personnel are obligated to take application measurements, and approximately 10-12 photos of all rehabilitation to be corrected. Photos should include at least 1 full view of exterior of property, 1 photo of neighbor on each side of home as well as 1 photo of home on opposite side of street.

B. Bid Process
Each bid submitted must be for repairs and replacements that are for similar materials and replacement costs that currently exist in the home.

For example, if flooring is to be replaced and is currently vinyl, the homeowner may replace with vinyl or tile at a cost not to exceed the cost of replacing with vinyl. The bid process is as follows:

1. Requests for bids are solicited by the Homeowner. Each bid package that goes out for solicitation should include the Bid Work Write Up as described in Section 2.F.

2. Homeowner must solicit at least three (3) bids from licensed, eligible Contractors to allow for reasonable competition. This process will not be allowed to take more than four (4) weeks to complete. If all bids are not received within this time period, the application will automatically be rejected and the homeowner will not be able to continue participation in the program.

3. The Homeowner is advised that they may invite a licensed California Contractor of his/her choice to participate in the bid process.

4. Any eligible bid, provided by a licensed eligible Contractor chosen by the Homeowner, may be considered. If the lowest bid Contractor is not chosen, written justification must be provided as to why the Homeowner is choosing the Contractor.

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29 5. Bonus, Commission, or Fee. The Homeowner(s) shall not pay any bonus, commission or fee, for the purpose of obtaining approval of the grant/loan application, or for any other approval or concurrence required by the CITY or its agents, to complete the rehabilitation work financed, in whole or in part, with the Covina Residential Rehabilitation Grant/Loan Program.

The Homeowner shall not receive any bonus, commission or fee, also known as a “kick-back”, for the purpose of choosing one Contractor over another.

6. Discrimination
a. The CITY shall inform the Homeowner and Contractor of applicable laws regarding nondiscrimination based upon sex, age, race, creed, color, religion, national origin or ancestry in the awarding of the contract for rehabilitation of property assisted by the Covina Residential Rehabilitation Grant/Loan Program. b. The CITY shall not discriminate upon the basis of sex, age, race, creed, color, religion, national origin or ancestry in accepting applications and processing Covina Residential Rehabilitation Grant/Loan requests.

7. Ineligible Contractors
a. The Homeowner shall not award any contract for rehabilitation work, to be paid for in whole or in part with proceeds from a Covina Housing Rehabilitation Loan/Grant, to any Contractor who:

1. Does not have a current California license as a B
Contractor

2. Cannot produce evidence of current Workman's
Compensation and Liability Insurance coverage, and who
has been placed on HUD's, CSLB’s or any other federal,
state or local Debarred Contractors list.
b. Any member of the Homeowner's family is considered
ineligible, regardless of credentials or license. Any ineligible Contractor found working at the job site will be removed immediately, without compensation. If payment was inadvertently made to an ineligible Contractor, the Homeowner will be held responsible for immediate repayment of the funds to the CITY, and for any and all costs incurred related to the correction and the rectification of the problem.

Family is defined as parents, children, siblings, uncles/aunts and

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30 cousins.

8. Homeowner as Contractor
Homeowner can do the work on their home, except in those areas where the building and other applicable codes require a licensed contractor. If Homeowner does the work, reimbursement can ONLY be received for cost of materials. Material purchases MUST BE pre-approved by CITY.

C. Review of Bids

1. All bids are provided to the Homeowner by the Contractors. Once all bids are received, the bids are then turned in to the CITY. The CITY must check the documents for completeness, insuring that they are dated and properly signed by an officer of the Contractor’s firm. a. A bid comparison sheet, itemizing each item of work will be prepared by the CITY for comparison of prices when reviewing bids.
b. All bids received are reviewed with the Homeowner.

Recommendation can be made by the CITY based on the lowest and most responsible bid and the Contractor's past performance.

However, it is the Homeowner’s responsibility to review the bids and Contractor and to decide on a Contractor. The City will inspect the work performed by the Contractor and ensure that it complies with the Covina Municipal Code. However, City makes no guarantee as to the quality or workmanship of the Contractor’s work and assumes no responsibility of liability for such issues. c. Homeowner decides on a Contractor and signs the Choice of Contractor letter.

2. The selected bidder (Contractor) must provide the following:
a. Tax identification number (Social and/or IRS No.) by completing Form W-9 and California Form 590
b. For each Homeowner’s rehabilitation, Contractors are checked on www.cslb.ca.gov/onlineservices/checklicenseii/checklicense.aspx website for current license and workers’ compensation insurance.

Any Contractor with lapsed insurance or Contractor's license shall not be considered for the job or shall be removed from the job until he/she is able to provide proof of current insurance and/or license.
c. Contractors are also checked on the federal debarred website www.sam.gov for debarment from Federal projects (CDBG
Bulletin 13-0002) and on any state or local debarred website.

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31 d. Proof of Covina Business License.

3. Should the Homeowner insist that the contract be awarded to a Contractor other than the low bidder, a statement of justification signed by the Homeowner will be included in the file.

4. In cases in which the Homeowner selects a Contractor whose estimated costs are so low that they may not cover the actual cost of improvements, it is incumbent upon the CITY to discuss with Homeowner the problems which often arise with such bids and attempt to dissuade Homeowner from accepting the bid.

5. Homeowner Contributions
a. Homeowner contributions for the purpose of choosing a Contractor that is not the lowest cost will be considered.

Requests must be accompanied by a written justification from the Homeowner and a statement signed by the Homeowner revealing the source of the additional funds and the Homeowner repayment schedule
b. Homeowner contributions, for the purpose of upgrading items and materials and the addition of items considered “luxury items” in the rehabilitation contract may be considered. The CITY will consider Homeowner contributions on a case-by-case basis.

Requests must be accompanied by a written justification from the Homeowner and a statement signed by the Homeowner revealing the source of the additional funds and the Homeowner repayment schedule.
c. If approved by the CITY, the Homeowner shall pay the amount of the Homeowner's contribution directly to the Contractor.

D. Agreement for Rehabilitation
The CITY shall obtain a copy of the Contract between the Contractor and Homeowner. The completed contract between the Homeowner and the Contractor shall consist of an Agreement and the Contractor's Bid for Rehabilitation.

E. Death of Applicant
In the event of the applicant’s death, no project funds shall be used to reimburse for repairs commenced after the date of death, unless the applicant is survived by a designated beneficiary with legal interest to the property or project. If the applicant’s death occurs after the commencement of work for which project funds have been approved, reimbursement in such cases shall be allowed for all work necessary to complete that phase and shall be pro-rated based on the

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32 portion of work completed at the time of the applicant’s death.

II. PRE-CONSTRUCTION CONFERENCE
The CITY, the Homeowner, and the Contractor shall meet at a Pre-Construction Conference to review all phrases pertinent to the documentation of the grant/loan, rehabilitation work authorized, change orders, inspections, payments, contingency money, contract extensions, deviations, "side-deals" and Final Close Out of the loan.

Other points covered in the discussion will include items in the contract, the scope of the work to be performed, and the nature of the potential inconvenience to the property 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

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33 “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 possess 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 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.

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34 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 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.

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35 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 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

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36 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 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

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37 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 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

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38 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 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

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39 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 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

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40 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 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

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41 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 ensure 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.

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.

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42 (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 ensure 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. (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

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43 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.

5. Certification and Warranties, if applicable.

6. Copy of CITY/HCD issued Inspection Card.

7. Signed Owner Completion Notice (Obtained by CITYpersonnel).

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

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

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45 SECTION 4

TABLE OF CONTENTS

REPORTING PROCEDURES
PAGE
SECTION 4 – CITY REPORTING PROCEDURES................ .......... .......... ..... 45 I. FUNDING REQUEST.. .......... .......... .................... .......... .......... ..... 46 A. Preparation........ .......... .......... .................... .......... .......... ..... 46 B. Submission........ .......... .......... .................... .......... .......... ..... 46 C. Receipt of reimbursed fund by LACDA......... .......... .......... ..... 46 II. REMITTANCE OF REPAID LOANS AND INTEREST AMOUNTS ..... 46 III. QUARTERLY PERFORMANCE REPORTS TO LACDA... .......... ..... 46 IV. TRACKING OF OUTSTANDING LOANS .............. .......... .......... ..... 46

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46 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 LACDA 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 LACDA. A copy of the Transmittal form will be enclosed with payment check. Upon receipt, LACDA 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 LACDA
Once a quarter, a description of what has transpired during the quarter will be entered into the LACDA 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.

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47 APPENDICES

TABLE OF CONTENTS
PAGE
APPENDICES ........ .......... ......... .......... .......... .................... .......... .......... ..... 47

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 .......... .......... .................... .......... .......... .........

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COVINA RESIDENTIAL

REHABILITATION

GRANT/LOAN PROGRAM

HANDBOOK
(Funded using Community Development
Block Grant (CDBG) Funds)
This project has been funded in part by the U.S.

Department of Housing and Urban Development
through the CDBG Program.
(PROGRAM POLICY MANUAL)
Adopted: 09/19/1995
Revision #1: 03/16/1998
Revision #2: 10/16/2001
Revision #3: 02/17/2009
Revision #4: 09/17/2013
Revision #5: 2/6/2024
City of Covina
Special Projects Division
125 East College Street
Covina, CA 91723
(626) 384-5443

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1 COVINA RESIDENTIAL REHABILITATION GRANT/LOAN

PROGRAM

POLICIES & PROCEDURES

TABLE OF CONTENTS
PAGE
POLICIES AND PROCEDURES . .......... .......... .................... .......... .......... ....... 2 SECTION 1 – General Provisions and Conditions ....... .......... .......... ....... 2 SECTION 2 - Determining Eligibility ...... .................... .......... .......... ..... 13 SECTION 3 – Inspection/Contractor Payment Procedures .... .......... ..... 24 SECTION 4 – Reporting Procedures ...... .................... .......... .......... ..... 41 APPENDICES ........ .......... ......... .......... .......... .................... .......... .......... ..... 43

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2 SECTION 1

TABLE OF CONTENTS

GENERAL PROVISIONS AND CONDITIONS
PAGE
SECTION 1 -GENERAL PROVISIONS AND CONDITIONS .. .......... .......... ....... 3 A. Purpose ... ......... .......... .......... .................... .......... .......... ....... 4 B. Applicants ......... .......... .......... .................... .......... .......... ....... 4 C. Property Eligibility Requirements .................. .......... .......... ....... 5 D. Eligible Activities .......... .......... .................... .......... .......... ....... 6 E. Ineligible Repairs .......... .......... .................... .......... .......... ....... 7 F. Types of Grants/Loans.. .......... .................... .......... .......... ....... 8 G. Maximum Grant/Loan Amount .................... .......... .......... ....... 8 H. Interest Rate ...... .......... .......... .................... .......... .......... ....... 8 I. Loan Terms ........ .......... .......... .................... .......... .......... ....... 8 J. Other Loan Conditions . .......... .................... .......... .......... ..... 10 K. Miscellaneous Conditions ........ .................... .......... .......... ..... 12 L. Refinancing and Subordination .................... .......... .......... ..... 12 M. Amendments ..... .......... .......... .................... .......... .......... ..... 12

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3 CITY OF COVINA

RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

GENERAL PROVISIONS & CONDITIONS
SECTION 1
The CITY of Covina (CITY) is a recipient of the Federal Government's Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) funds which are targeted to benefit very-low, low, and moderate-income persons to eliminate slum and blight. These funds are received through a partnership with the Los Angeles Community Development Authority (LACDA). As a disbursing agent for these funds, the CITY administers a grant/loan program designed to assist eligible Homeowners in maintaining the existing housing stock of the incorporated areas of the CITY through home rehabilitation. This program consists of the Covina Residential Rehabilitation Grant/Loan Program for Very Low-,Low- and Moderate-Income Residents (Rehab Program) as defined in CDBG Bulletin Annual Income Guidelines (as revised each year).

The Rehab Program provides grant/loan funds of up to a maximum of $30,000 to owneroccupied single family detached homes and grant funds of up to $8,000 for owner-occupied mobile homes who fall within the category of very-low, low, and moderate income, as defined by the Department of Housing and Urban Development (HUD) as equal to or less than 80% of median income for the County of Los Angeles, as amended each year.

This program was begun by the Covina Redevelopment Agency in 1990 at which time, the

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4 maximum allowable expenditure was $5,000. This was amended in 1995 to include a $4,000 grant with an additional $3,000 loan available. This was amended in 2001 to increase the additional loan amount available to $6,000, for a total allowable expenditure of $10,000 per single family home and a maximum of $3,000 for mobile homes and a maximum interest rate to apply to loans of 3%. This was amended in 2009 which increased the grant to $10,000 and the additional loan amount available to $20,000, for a total allowable expenditure of $30,000. The amount available to mobile home owners increased to a maximum of $8,000, which is a grant.

General Provisions and Conditions for program are delineated herein.

Deferred Payment Grant/Loan for Single Family Homes (3%) For mobile home owners, $8,000 is considered a grant. For single family homes, the first $10,000 spent is considered a grant, which is written off over 5 years (20% each year), on the anniversary date of the project completion date, dependent upon meeting certain criteria. Any expenditure over $10,000 and up to a maximum of $30,000 is a loan which accrues SIMPLE interest of three percent (3%) for 10 years, beginning on the date the project is completed subject to certain criteria.

Grant for Mobile Home Rehabilitation, a grant of up to $8,000 is available.

Marketing
The CITY shall use any marketing strategies it sees fit as part of the overall marketing strategy to contact all property owners eligible for program.

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5 appropriate documents. Income for all members of the household and/or any person(s) listed on title of the property in question, as defined by Section 61 of the IRS Code of 1954, as amended, governs grant/loan eligibility.

2. Applicants who have participated in the program previously must wait a minimum of ten (10) years prior to applying for assistance again.

Applicants who have been participants at any time in the past shall be subject to restrictions on the total amount available as described in Section I.G.

C. Property Eligibility Requirements

3. The home under consideration for rehabilitation must be residential and consist of either one single family house or single mobile home on one lot. Properties with more than one unit will be considered at the sole discretion of the CITY.

4. Owner shall not have any restrictions or encumbrances that would unduly restrict the good and marketable nature of the ownership interest as determined by the CITY. Example: Non-Revocable Trust.

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6 5. Homeowner shall be current in mortgage payments to lender, or be able to show that regular monthly payments are being made.

D. Eligible Activities
The CITY, in its sole discretion, may focus on certain items of improvements and forego other improvements requested by the Homeowner in order to be able to serve a greater number of Homeowners.

Room Additions – as funds are limited, room additions will not be considered except in extreme conditions.

2. Type of work:
a. Appliances:

Appliances will be considered only if the gas or electrical company determines an existing built-in stove or oven to be inoperable.

Replacement requests must be accompanied by written
justification and a gas/electrical company work order (code violations).
b. Driveways:

Sandblasting or Stuccowork to the exterior will be considered for grants/loans only if the exterior is damaged to the extent that it is more expedient to sandblast or stucco.

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7 d. Garages:

New construction of garages and carports will only be considered for grants/loans if the present garage or carport constitutes a detriment public health and a safety hazard.
e. Flooring:

Other areas of the home. Will be considered if occupant is handicapped and replacement of flooring makes it easier to ambulate within the home.

E. Ineligible Repairs
Ineligible rehabilitation repairs include cosmetic repairs, speculative income producing renovation work, luxury remodeling, and convenience repair work.

1. Barbecue Pits

2. Burglar Alarms

3. Flower Boxes or Planters

4. Greenhouses

5. Animal Kennels

6. Indoor/Outdoor Fireplaces or Hearths

7. Penthouses

8. Photo Murals

9. Stands (planters, room dividers, etc.)

10. Walls which serve as partial room dividers

11. Steam cleaning of exterior surfaces

12. Television Antenna

13. Tennis Courts

14. Tree Surgery

15. Drapes, Shades, Blinds

16. Exterior Window Awnings

17. Yard Sprinkler Systems

18. Storage Shed

19. Microwave Oven

20. Patios (except repairs if attached to home only and permit on file at CITY Building Department approving patio construction)

21. Wallpaper

22. Landscaping (planting flowers, plants or trees)

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8 23. Water Purifier

24. Kitchen appliances which are designed and manufactured to be free standing and are not built-in and permanently affixed as an integral part of the kitchen in a residential structure.

25. Bathhouse, swimming pools, hot tubs, spas, jacuzzi or accessories for any of these

26. New construction except items that will remedy a public health and safety hazard

27. Purchase, installation, and repair of furniture

28. Any items considered “Luxury”

G. Maximum Grant/Loan Amount
The maximum amount allowed for a Deferred Payment Loan is $30,000 for a single-family home or $8,000 for a mobile home. For a single-family home, the first 10,000 is considered to be a grant and the remaining 20,000 is a loan.

However, this amount may be increased based on the extent of rehabilitation necessary to achieve the desired Housing Quality Standards if approved by Community Development Director.

H. Interest Rate
The loan portion of a Deferred Payment Loan shall bear a 3% SIMPLE INTEREST RATE. Interest will accrue for 10 years only. Except under certain circumstances, the grant portion will not accrue interest.

The grant for mobile home rehabilitation will not accrue interest.

I. Loan Terms

1. General
a. The Grant/Loan shall be between the CITY and the Homeowner.

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9 b. The Homeowner has the right to repay the loan portion at any time, in part or in full, without prepayment penalties. c. The Homeowner must pay in full the unpaid principal of the loan plus any accrued interest that is due on the loan at the time of refinancing the single family home. Under certain circumstances, the grant may become a part of the loan and subject to
repayment.

No monthly payments are required. However, the Homeowner, at any time, may elect to make a minimum monthly payment of $25.00 or more.

3. Repayment of Grant/Loan
a. Provided that the Homeowner continues to (i) hold title to the home, (ii) reside in the home as his or her principal residence, (iii) does not refinance the home and (iv) does not transfer the home to another person, whether by sale, gift, bequest or intestate succession (except as may be allowed by the CITY under
Section J.1. below), the principal and accrued interest on the loan shall not become due and payable by the Homeowner to the CITY.
b. Additionally, the amount of any grant for a single family home shall be written off/forgiven at a rate of 20% for each 12-month period after the project completion date that the conditions in the last paragraph are met. If the conditions are met for a period of 5 years (60 months) the grant shall be fully written off and the Homeowner shall have no obligation to repay any portion of the grant.

c. If the above conditions are not met, the full unpaid principal amount of the loan plus accrued interest shall be immediately due and payable to the CITY. In addition, the grant amount will no longer continue to be written off and prior amounts written off may be reversed. The grant amount shall become a loan which shall accrue interest at the rate set forth above and shall also become immediately due and payable to CITY.
d. Recertification of continued principal residence occupancy may be

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10 required to be completed for each of the five (5) years following the anniversary date of the completion of the rehabilitation.

J. Other Grant/Loan Conditions
Specific terms and conditions for a Covina Residential Rehabilitation Grant/Loan are incorporated in the Promissory Note, secured by a Deed of Trust.

Additionally, Homeowner shall agree to comply with following terms and conditions:

1. Assignment and Assumption:

2. Fire Insurance Requirements
The CITY verifies fire insurance coverage at the time of applying for the grant/loan and through any rehabilitation work done.

3. Refinancing – If Homeowner decides to refinance the home, any amount outstanding for the grant/loan must be repaid at that time, unless otherwise approved by the CITY. The CITY will only consider providing a loan subordination without immediate loan repayment if the refinance is solely to obtain a lower rate mortgage with no cash out. The CITY will not subordinate for reverse mortgages.

4. Assets – Total assets (not including home to be rehabilitated) must not be more than $60,000.

K. Miscellaneous Conditions

1. All applicable work funded by a grant/loan shall conform to cost effective

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11 energy conservation standards.

2. In compliance with 24 CFR Part 35, lead based paint products shall not be used on any project funded by a grant/loan.

3. Contractor shall keep all records of funds received from the CITY and make them accessible for audit or examination for a period of five (5) years after final payments are issued and other pending matters are closed (24 CFR Part 200). The CITY shall maintain for a period of five (5) years after the expiration of the contract with the Homeowner, complete and adequate financial records and accounts as considered necessary by the Los Angeles County Community Development Commission (LACDC) to assure proper accounting for all program funds and to support all program expenditures.

5. It is understood that each person/entity/firm who applies for a Community Development Commission contract, and as part of that process, shall certify that they are familiar with the requirements of the Los Angeles County Code Chapter 2.160, (Los Angeles County Ordinance 93-0031); and that all such persons/entities/firms have and will comply with the County Code, and; that any person/entity/firm who seeks a contract with the Community Development Commission shall be disqualified therefrom and denied the contract and, shall be liable in civil action, if any lobbyist, lobbying firm, lobbyist employer or any other person or entity acting on behalf of such person/entity/firm fails to comply with the provisions of the County Code.

6. Executive Order 11246 requires that during the performance of any contract subject to this policy, the contractor agrees not to discriminate against any employee or applicant for employment because of race, religion, sex, color, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, religion, sex, color, or national origin. Such action shall include, but not limited to, the following: employment upgrading, demotion or transfer: recruitment or recruitment advertising: layoff or termination: rates of pay or other forms of compensation: and selection for training, including apprenticeship.

The contractor shall post in conspicuous places, available to employees

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12 and applicants for employment, notices to be provided by the contractor setting forth the provisions of this nondiscrimination clause.

1. The reason for the subordination request (Sale, refinance, or cash out).

2. The name, address, contact person (s) at the cooperating financial institution.

M. Amendments
Amendments to the Program Policy Manual may be made by the City Manager administratively, with the exception of Federal regulations and CDA procedures, which shall remain unmodified.

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13 SECTION 2

TABLE OF CONTENTS

DETERMINING ELIGIBILITY
PAGE
SECTION 2 – DETERMINING CLIENT ELIGIBILITY ............. .......... .......... ......... ...... 13 I. GRANT/LOAN PROGRAM PROCEDURES ............. .......... .......... ......... ...... 14 A. Introduction ........ .......... .......... .................... .......... .......... ……………14 B. Application Procedure .. .......... .................... .......... .......... ......... ...... 14 C. Grant/Loan Review and Approval Process….……….. ....... ......... ...... 15 D. Applicant Income Limits .......... .................... .......... .......... ......... ...... 16 E. Initial Inspection . .......... .......... .................... .......... .......... ......... ...... 20 F. Write-up of Rehabilitation ......... .................... .......... .......... ......... ...... 21 G. Application Approval/Rejection .................... .......... .......... ......... ...... 21 H. Lead Based Paint/Asbestos Inspection Reports ...... .......... ......... ...... 22 I. Deed Recording/Note Signing . .................... .......... .......... ......... ...... 22 J. Homeowner/Project Set-up in LACDC.org Website .......... ......... ...... 22

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14 SECTION 2

COVINA RESIDENTIAL REHABILITATION GRANT/LOAN

If the Homeowner is still interested in participating in the program, the Homeowner is then responsible for submitting all requested documentation to the CITY for approval.

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15 (h) Signed acknowledgement of receiving “A Consumer Guide to Asbestos”, “Protect Your Family From Lead in Your Home” and “Watch Out for Lead Based Paint Poisoning”
(i) Credit Authorization form

3. The Homeowner is advised that a Lead-Based Paint Inspection/Risk Assessment Report and an Asbestos Inspection Report will be required.

These reports are provided at the Homeowner’s expense; any costs resulting from these inspections will be incorporated into the grant/loan.

The Homeowner must sign and acknowledge receipt of these informational packets.

A Lead Based Paint and Asbestos Containing Material Test shall be performed on each property considered for rehabilitation. The CITY’s Contractor (which shall have a valid contract in place between the CITY and the Contractor), currently Barr & Clark, shall be used for such testing. This Contractor submits completed reports to the CITY.

C. Grant/Loan Review and Approval Process
The process for the review and approval of the application is described below:

1. Once all of the required documents are received, they are reviewed.

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16 3. A visual inspection appointment is made with the Homeowner and CITY personnel as well as a Code Enforcement Officer in order to assess the needs of the Homeowner, based on the preliminary application.

D. Applicant Income Limits

2. The gross income limits for the Grant/Loan Program for Fiscal Year 2023-2024 per CDBG Bulletin 23-0010 are shown below:

Persons Deferred Loans
Per Family (80% Median Income)*
1 $70,650
2 $80,750
3 $90,850
4 $100,900
5 $109,000
6 $117,050
7 $125,150
8 $133,200
*Income after adjustment for allowable inclusions and exclusions Note: When future legislative changes are made to the definition of annual income, the change will be published in the Federal Register and agencies will be given 60 (sixty) days from the date of publication to implement the changes.

3. Income Inclusions (HUD Handbook 4350.3, Chapter 5; 24 CFR 5.609) a. Salary Income. The full gross amount before any payroll deductions of wages and salaries, overtime pay, commissions,

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17 fees, tips, and bonuses, and other compensation for personal services
b. Self-Employment Income. The net income from operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for
depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.
c. Personal Interest. Interest, dividends, and other net income of any kind from real or personal property:

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18 included as income shall consist of:
(1) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus (2) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount
calculated under this paragraph shall be the amount
resulting from one application of the percentage.
g. Alimony/Child Support. Periodic and determinable allowance, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling.
h. All regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is head of the family, spouse, or other person whose dependents are residing in the unit (but see paragraph (g) under Income Exclusions).
i. Rental Income. Income received from rental property. j. In-Home Supportive Services. Income earned by a
caregiver/caretaker providing in-home supportive services for a different household.

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19 f. Amount of educational scholarships paid directly to the student or to the educational institution, and amounts paid by the Government to a veteran, for use in meeting the costs of tuition, fees, books, equipment, materials, supplies, transportation, and miscellaneous personal expenses of the student. Any amounts of such scholarships or payments to a veteran not used for the above purposes that are available for subsistence are to be included in income.
g. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire.
h. Amounts received under training programs funded by HUD. i. Amounts received by a disabled person that is disregarded for a limited time for purposes of supplemental security income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS).
j. Amounts received by a participant in other publicly assisted programs that are specifically for or in reimbursement of out-ofpocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and that are made solely to allow participation in a specific program.
k. Temporary, nonrecurring, or sporadic income (including gifts). l. Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under the 24 CFR 5.609(c). The following is a list of types of income that qualify for that exclusion (9/27/89 regulations):
(1) The value of the allotment provided to an eligible
household under the Food Stamp Act of 1977.
(2) Payments to volunteers under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired
Senior Volunteer Program, Foster Grandparents Program,
youthful offenders incarceration alternatives, senior
companions).
(3) Payments received under the Alaska Native Claims
Settlement Act (43 U.S.C. 1626(c)).
(4) Income derived from certain submarginal land of the

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20 United States that is held in trust for certain Indian tribes (25 U.S.C. 459)(e)).
(5) Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy
Assistance Program (42 U.S.C. 8624(f)).
(6) Payments received under programs funded in whole or in part under the Job Training Partnership Act.
(7) Income derived from the disposition of funds of the Grand River Band of Ottawa Indians.
(8) The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission
or the Court of Claims (25 U.S.C. 1407-1408) or from
funds held in trust for an Indian tribe by the Secretary of Interior (25 U.S.C. 117a).
(9) Amounts of scholarships funded under Title IV of the Higher Education Act of 1985 including awards under the Federal work-study program or under the Bureaus of
Indian Affairs student assistance programs, that are made available to cover the costs of tuition fees, books,
equipment, materials, supplies, transportation, and
miscellaneous personal expenses of a student at an
educational institution (20 U.S.C. 1087 uu).
(10) Payments received from programs funded under Title V of the Older Americans Act of 1965 (42 U.S.C. 3056(f)).
(11) Any earned income tax credit to the extent it exceeds income tax liability.
(12) Payments received after January 1, 1989, from the Agent Orange Settlement Fund or any other funds established
pursuant to the settlement in the In Re Agent Orange
Product Liability Litigation, 597 F. Supp. 740 (E.D.N.Y. 1984); In Re Agent Orange product liability litigation, MDL No. 381 (E.D.N.Y.).
(13) Payments received under the Maine Indian Claims
Settlement Act of 1980.

E. Initial Inspection to Determine Extent of Work

1. The CITY personnel and CITY Code Enforcement inspector are

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21 responsible for making an initial, on-site inspection of the property to be rehabilitated for identification of code violations (A items = code violations; B items = incipient violations, i.e., those items which must be corrected to meet codes) elimination of items creating a detriment to public health and safety. Code violations are identified and defined in the Covina Municipal Code. A Pre-Inspection Request Form is given to Code Enforcement Officer for notes and signature and is filed in the Homeowner file.

F. Write-up of Rehabilitation
The CITY shall prepare a Bid Work Write Up for all its rehabilitation jobs.

Contingency Reserve Money

2. The 10% contingency allowance comprises 10% of the rehabilitation contract.

3. Request for use of contingency funds shall occur through the Change Order process (See Section 3.II.I) with CITY prior approval.

G. Application Approval/Rejection
If the application is approved, the Homeowner is notified of the approval along with a list of next steps that must be taken to continue in the program by issuing

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22 an Approval Letter.

If the loan is rejected, the Homeowner is notified of the reason for rejection.

A copy is provided to the Homeowner and receipt of such is evidenced by the “Notice of Asbestos Evaluation, Notice of Lead Hazard Evaluation” form.

I. Deed Recording/Note Signing/Grant & Loan Agreement

J. Homeowner/Project Set Up in LACDC.org website

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23 (2) 1 view each (total of 2) of the houses on each side of the dwelling to assess the architectural design of neighboring homes

(3) 1 view of the house directly across the street from the dwelling
b. Detailed Property Identification Form (DPI), the form must be submitted along with four photos, and property information for loan amounts at or above $25,000.
c. After receipt by LACDC, the form is forwarded to LACDC's CDBG Historic Preservation Planner for review and clearance. The loan consultant should allow approximately seven (7) days for clearance. In the interim, normal loan consultant processing of the loan may continue.
d. Should the CDBG Historic Preservation Planner's review establish that the structure may be eligible or placement into the National Register, the work write-up and completed research forms are sent to the State of California Historical Preservation Office (SHPO), for official determination of National Register eligibility.

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24 SECTION 3

TABLE OF CONTENTS

INSPECTION/CONTRACTOR PAYMENT PROCEDURES
PAGE
SECTION 3 - INSPECTION/CONTRACTOR PAYMENT PROCEDURES ... ......... ...... 24 I. INSPECTION/BID PROCESS/
AGREEMENT FOR REHABILITATION ............ .......... .......... ......... ...... 25 A. Inspection Process ....... .......... .................... .......... .......... ......... ...... 25 B. Bid Process ....... .......... .......... .................... .......... .......... ......... ...... 25 C. Review of Bids ... .......... .......... .................... .......... .......... ......... ...... 27 D. Agreement for Rehabilitation ... .................... .......... .......... ......... ...... 28 II. PRE-CONTRUCTION CONFERENCE ................... .......... .. …. .. ......... ...... 28 A. Responsibilities .. .......... .......... .................... .......... .......... ......... ...... 29 B. Permits and Codes ....... .......... .................... .......... .......... ......... ...... 29 C. General Guarantee and Warranty ................ .......... .......... ......... ...... 29 D. Conflicts ... ......... .......... .......... .................... .......... .......... ......... ...... 30 E. Breach of Conditions .... .......... .................... .......... .......... ......... ...... 30 F. Hold Harmless Clause .. .......... .................... .......... .......... ......... ...... 31 G. Property Access/Maintenance . .................... .......... .......... ......... ...... 31 H. Sign Contracts ... .......... .......... .................... .......... .......... ......... ...... 32 I. Change Orders .. .......... .......... .................... .......... .......... ......... ...... 32 J. Substitution of Contractor ......... .................... .......... .......... ......... ...... 33 III. CONTRACTOR PAYMENT PROCEDURE ............ .......... .......... ......... ...... 35 A. Rehabilitation Payments .......... .................... .......... .......... ......... ...... 35 B. Time Extension of Agreement for Rehabilitation ...... .......... ......... ...... 37 C. Monitoring ......... .......... .......... .................... .......... .......... ......... ...... 38 D. Rehabilitation Final Payment ... .................... .......... .......... ......... ...... 39 E. CITY Inspection at Final .......... .................... .......... .......... ......... ...... 40 IV. CLOSEOUT OF THE PROJECT ....... .................... .......... .......... ......... ...... 40 A. Disbursement Printout Sheet ... .................... .......... .......... ......... ...... 40 B. Close Out Letter .......... .......... .................... .......... .......... ......... ...... 40 C. Close Out in LACDC.org ......... .................... .......... .......... ......... ...... 40

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25 SECTION 3

RESIDENTIAL REHABILITATION GRANT/LOAN PROGRAM

REHABILITATION INSPECTION/CONTRACTOR PAYMENT PROCEDURES I. INSPECTION/BID PROCESS/AGREEMENT FOR REHABILITATION
A. Inspection Process - The inspection process is described below.

Responsibility for inspection activities lies with the CITY and the CITY's inspector(s).

Code violations are identified and defined in the Covina Municipal Code.

B. Bid Process
Each bid submitted must be for repairs and replacements that are for similar materials and replacement costs that currently exist in the home.

1. Requests for bids are solicited by the Homeowner. Each bid package that goes out for solicitation should include the Bid Work Write Up as described in Section 2.F.

3. The Homeowner is advised that they may invite a licensed California Contractor of his/her choice to participate in the bid process.

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26 5. Bonus, Commission, or Fee. The Homeowner(s) shall not pay any bonus, commission or fee, for the purpose of obtaining approval of the grant/loan application, or for any other approval or concurrence required by the CITY or its agents, to complete the rehabilitation work financed, in whole or in part, with the Covina Residential Rehabilitation Grant/Loan Program.

The Homeowner shall not receive any bonus, commission or fee, also known as a “kick-back”, for the purpose of choosing one Contractor over another.

1. Does not have a current California license as a B
Contractor

b. Any member of the Homeowner's family is considered
ineligible, regardless of credentials or license. Any ineligible Contractor found working at the job site will be removed immediately, without compensation. If payment was inadvertently made to an ineligible Contractor, the Homeowner will be held responsible for immediate repayment of the funds to the CITY, and for any and all costs incurred related to the correction and the rectification of the problem.

Family is defined as parents, children, siblings, uncles/aunts and

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27 cousins.

C. Review of Bids

Recommendation can be made by the CITY based on the lowest and most responsible bid and the Contractor's past performance.

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28 d. Proof of Covina Business License.

3. Should the Homeowner insist that the contract be awarded to a Contractor other than the low bidder, a statement of justification signed by the Homeowner will be included in the file.

5. Homeowner Contributions
a. Homeowner contributions for the purpose of choosing a Contractor that is not the lowest cost will be considered.

Requests must be accompanied by a written justification from the Homeowner and a statement signed by the Homeowner revealing the source of the additional funds and the Homeowner repayment schedule.
c. If approved by the CITY, the Homeowner shall pay the amount of the Homeowner's contribution directly to the Contractor.

Other points covered in the discussion will include items in the contract, the scope of the work to be performed, and the nature of the potential inconvenience to the property

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Covina City CouncilOctober 21, 2025

Covina City Council
October 21, 2025