Covina City Council
February 17, 2026

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA

Tuesday, February 17, 2026, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall

IMPORTANT NOTICE
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Pages
JOINT MEETING—CLOSED SESSION 6:30 PM

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

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Delgado.

INVOCATION
Given by Covina Police Chaplain Jim Allgaier.

APPROVAL OF AGENDA

PRESENTATIONS
A. Covina Chamber Update

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. Payment of Demands 5
Staff Recommendation:

Approve Payment of Demands in the amount of $3,451,470.48 CC 2. City-Wide Alleyway Resurfacing Project – Project No. P2605 – 13

Award of Contract to G.M. Sager Construction Co., Inc. in the Amount of $66,795
Staff Recommendation:

Approve plans and specifications for the City-Wide Alleyway Resurfacing Project – Project No. P2605;

1. Award a contract for the City-Wide Alleyway Resurfacing Project – Project No. P2605 to G.M. Sager Construction Co., Inc. as the lowest responsive and responsible bidder in the amount of $66,795 and authorize the City Manager to execute the contract; and

2. Authorize a contingency amount of $6,680 (approximately 10%) to cover any unforeseen construction expenses.

3. CC 3. City-Wide Sewer Relief Line Project – Project No. S2601 – Award of Contract in the Amount of $130,900 to GRBCON, Inc.
41 Staff Recommendation:

Award a contract for the City-Wide Sewer Relief Line Project – Project No. S2601 to GRBCON, Inc. as the lowest responsive and responsible bidder in the amount of $130,900 and authorize the City Manager to execute the contract; and

1. Authorize a project contingency amount of $13,090
(approximately 10% of construction costs) to cover the costs of unforeseen construction expenses.

2. CC 4. Consideration of a Managed Print Services Contract 55 Staff Recommendation:

Authorize the City Manager to Execute an Agreement with Xerox to Provide Managed Print Services.

CC 5. Fiscal Year 2025-26 Mid-Year Budget Update and Adjustments 71 Staff Recommendation:

Adopt Resolution CC 2026-15 & SA 2026-01 authorizing Fiscal Year 2025-2026 mid-year budget adjustments; and

1. Receive and file the Fiscal Year 2025-26 Mid-Year Budget Update.

2. CC 6. Funding Award for 2024 State Homeland Security Grant 93 Staff Recommendation:

Adopt Resolution CC 2026-14 to increase the Police
Department’s 2025-26 budget by $60,000 resulting from the 2024 State Homeland Security Award;

1. Authorize the City Manager or his designee to sign the 2024 State Homeland Security (SHSP) sub-recipient award
agreement and all related documents;

2. 3. Approve the purchase of Motorola radio equipment for $60,000.

CC 7. One Year Extension of the Agreement with Professional Account Management LLC
299

Staff Recommendation:

Approve the Fifth Amendment to the agreement with Professional Account Management LLC for a one (1) year extension to provide parking citation processing and collections services; and authorize the City Manager to execute the amendment.

NEW BUSINESS
NB 1. Ordinance 26-01 Regulating the Sale and Distribution of Kratom Products
303
Staff Recommendation:

Waive full reading and introduce Ordinance 26-01 into the City of Covina Municipal Code to Regulate the Sale and Distribution of Kratom Products, Making Related Updates to the Code, and Making Finding of Exemption under the California Environmental Quality Act.

NB 2. Discussion Regarding the Statewide Statutory Cap on County/Local Transaction and Use Taxes and the Proposed County of Los Angeles General Half-Cent Sales Tax Ballot Measure in June 2026 309
Staff Recommendation:

That the City Council review/discuss the Statewide County/Local Statutory Cap on sales taxes, the County of Los Angeles’ proposed halfcent sales tax measure for the June 2026 Ballot and provide direction related to future efforts that may maintain local control of tax resources for the direct benefit of residents and businesses within the City of Covina.

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, March 3, 2026, 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.

CITY OF COVINA AND

SUCCESSOR AGENCY TO THE

COVINA REDEVELOPMENT AGENCY

AGENDA ITEM REPORT
ITEM NO. CC 1
Meeting: February 17, 2026
Title: Payment of Demands
Presented by: Theresa Franke, Director of Finance
Recommendation: Approve Payment of Demands in the amount of $3,451,470.48 EXECUTIVE SUMMARY:

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

Accounts Payable Warrants January 23, 2026 – February 5, 2026 CITY checks/EFTs $ 2,033,949.51
CITY payroll $ 1,310,852.00
CITY voids $ (1,738.17)
Worker’s Comp $ 108,342.97
$ 3,451,406.31
SACRA checks/EFTs $ 64.17
SACRA payroll $ 0.00
$ 64.17
TOTAL checks/EFTs $ 3,451,470.48
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,

CITY OF COVINA
Check Register
Jan 23, 2026 - Feb 5, 2026
Check # Check Date Vendor Name Amount
6073 01/28/2026 3280 INTERNAL REVENUE SERVICE 894.14
6074 01/28/2026 477 STATE OF CA 11.00
6075 01/28/2026 477 STATE OF CA 533.00
6076 01/29/2026 4003 MidAmerica 1,805.38
6077 01/05/2026 5438 BMO 26,860.22
21069 01/29/2026 788 COVINA, CITY OF 53,131.73 *
21070 01/29/2026 789 COVINA-FSA, CITY OF 1,920.33
21071 01/29/2026 2033 NATIONWIDE RETIREMENT SOLUTIONS 33,187.52 21072 01/29/2026 487 CalPERS 108,383.68
subtotal EFT/wires/direct deposits $226,727.00
Internal transfers - workers comp allocation - no net cash effect (53,131.73) * subtotal EFT/wires/direct deposits less Internal Transfers $173,595.27 129981 01/28/2026 113 ALL CITY MANAGEMENT SVC 16,084.80 129982 01/28/2026 219 AT&T 642.50
129983 01/28/2026 219 AT&T 68.09
129984 01/28/2026 254 AZUSA LIGHT & WATER 969.13
129985 01/28/2026 437 BURRO CANYON ENT INC 240.00
129986 01/28/2026 568 CAT SPECIALTIES INC 1,209.92
129987 01/28/2026 664 CIVILTEC ENGINEERING INC. 2,456.25 129988 01/28/2026 706 COMMERCIAL DOOR CO INC 557.63
129989 01/28/2026 734 CONTROL AUTOMATION DESIGN INC 3,681.59 129990 01/28/2026 783 CITY OF COVINA WATER 207.34
129991 01/28/2026 849 DAPEER ROSENBLIT & LITVAK LLP 3,481.65 129992 01/28/2026 895 DFM ASSOCIATES 75.08
129993 01/28/2026 970 EDISON CO 7,900.14
129994 01/28/2026 1018 ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. 9,800.00 129995 01/28/2026 1156 THE GAS COMPANY 62.62
129996 01/28/2026 1204 GOLDEN STATE WATER COMPANY 151.18 129997 01/28/2026 1235 GRAINGER 1,973.75
129998 01/28/2026 1361 HOLLIDAY ROCK CO INC 293.08
129999 01/28/2026 1505 JOHNNY'S POOL SERVICE 61.88
130000 01/28/2026 1612 LA CNTY DEPT OF PUBLIC WORKS 2,466.67 130001 01/28/2026 1680 LEAGUE OF CALIF CITIES 21,361.00 130002 01/28/2026 1694 LEWIS ENGRAVING INC 14.37
130003 01/28/2026 1792 MANNING & KASS 5,687.05
130004 01/28/2026 1933 MISSION LINEN SUPPLY 26.72
130005 01/28/2026 2163 PACIFIC PARKING SYS INC 5,950.00 130006 01/28/2026 2238 PEST OPTIONS INC 1,075.00
130007 01/28/2026 2270 PLUMBING WHOLESALE OUTLET 247.61 130008 01/28/2026 2329 PUENTE READY MIX INC 1,212.35
130009 01/28/2026 2415 REPUBLIC MASTER CHEFS 430.64
130010 01/28/2026 2444 RIO HONDO COLLEGE 500.00
130011 01/28/2026 2736 STAPLES BUSINESS ADVANTAGE 2,066.57 130012 01/28/2026 2804 TAG AMS INC 300.00
130013 01/28/2026 2998 VERIPIC 18,000.00
130014 01/28/2026 3001 VERIZON WIRELESS 5,449.26
130015 01/28/2026 3004 VICTORY EXTERMINATING INC 160.00 130016 01/28/2026 3070 WEST COAST ARBORISTS INC 1,225.20 130017 01/28/2026 3102 WILLDAN FINANCIAL SERVICES 2,500.00 130018 01/28/2026 3152 YWCA 3,764.54
130019 01/28/2026 3185 TOSHIBA FINANCIAL SERVICES 1,541.44 Attachment A Page 1 of 5

CITY OF COVINA
Check Register
Jan 23, 2026 - Feb 5, 2026
Check # Check Date Vendor Name Amount
130020 01/28/2026 3701 DEPARTMENT OF JUSTICE 32.00
130021 01/28/2026 3817 FUN EXPRESS, LLC 62.96
130022 01/28/2026 3929 BOOT BARN INC 300.00
130023 01/28/2026 3953 GOLDEN METERS SERVICES INC 309.76 130024 01/28/2026 3988 LANDSCAPE WAREHOUSE III 80.06
130025 01/28/2026 4209 ADLERHORST INTERNATIONAL 968.00
130026 01/28/2026 4374 ADMINSURE, INC 7,526.21
130027 01/28/2026 4379 789, Inc. 6,150.00
130028 01/28/2026 4389 EMPLOY AMERICA 2,661.00
130029 01/28/2026 4434 GOVERNMENTJOBS.COM, INC 7,185.40 130030 01/28/2026 4455 FRONTIER 3,058.17
130031 01/28/2026 4571 POWER SECURITY GROUP INC 22,616.50 130032 01/28/2026 4583 HSG Campaigns, LLC 1,720.00
130033 01/28/2026 4688 PCAM, LLC 31,503.36
130034 01/28/2026 4704 S & J Supply Company, Inc. 3,951.28 130035 01/28/2026 4726 Sport Pins International, Inc. 1,404.79 130036 01/28/2026 4764 UniFirst Corporation 600.46
130037 01/28/2026 4766 HASA, INC. 1,027.16
130038 01/28/2026 4784 Apollo Wood Recovery, Inc. 5,226.36 130039 01/28/2026 4793 Goforth & Marti 8,758.81
130040 01/28/2026 4813 Tyco Fire & Security (US) Management, Inc. 1,912.51 130041 01/28/2026 4817 Weck Analytical Environmental Services, Inc. 460.00 130042 01/28/2026 4833 Michael R. Hillmann 3,040.00
130043 01/28/2026 4983 Ad Valorem Records,Inc. 23,790.00 130044 01/28/2026 5087 Tamrin Olden 3,500.00
130045 01/28/2026 5109 SITEREP CONSTRUCTION SERVICES, INC. 54,392.00 130046 01/28/2026 5138 Ricoh USA, Inc. 219.00
130047 01/28/2026 5213 TANGLED WEB SOLUTIONS: INVESTIGATIONS 1,900.00 130048 01/28/2026 5269 CONTROL AIR ENTERPRISES LLC. 3,654.00 130049 01/28/2026 5280 ALDERMAN & HILGERS LLP 9,327.11
130050 01/28/2026 5291 AMAZON CAPITAL SERVICES, INC 378.24 130051 01/28/2026 5336 ABI DOCUMENT SUPPORT SERVICES LLC 368.07 130052 01/28/2026 5490 ROSS-CAMPBELL INC. 2,500.00
130053 01/28/2026 5517 BATTERY CONNECTION INC. 416.38
130054 01/28/2026 5629 MINUTEMAN PRESS COVINA 190.54
130055 01/28/2026 5668 MARTIN LEASING CORPORATION 779.86 130056 01/28/2026 5733 ALPHACOMM INC. 7,736.88
130057 01/28/2026 5738 TRAIN PARTY EXPRESS, LLC 825.00
130058 01/28/2026 5763 DK SANDLER BROTHERS, INC. 1,738.17 130059 01/28/2026 99999 ALYSSA LIRA 135.63
130060 01/28/2026 99999 ANA DIAZ 294.07
130061 01/28/2026 99999 GINA PONCE 30.95
130062 01/28/2026 99999 HABIT BURGER 13,500.00
130063 01/28/2026 99999 HOA MY HANG 44.79
130064 01/28/2026 99999 JOURNEY OF FAITH AG 197.42
130065 01/28/2026 99999 JUSTIN MARRUGI 2,345.00
130066 01/28/2026 99999 KIMBERLY TABARES 60.00
130067 01/28/2026 99999 LISA BARTLE 200.53
130068 01/28/2026 99999 MARK SAEED 305.00
130069 01/28/2026 99999 MARTHA MILLER 62.97
130070 01/28/2026 99999 MICHAEL KNEDEL 53.78
Attachment A Page 2 of 5

CITY OF COVINA
Check Register
Jan 23, 2026 - Feb 5, 2026
Check # Check Date Vendor Name Amount
130071 01/28/2026 99999 MIKE MELINTE 88.34
130072 01/28/2026 99999 STEVEN CONNER 31.00
130073 01/28/2026 99999 SUSAN VANDERPOOL 837.00
130074 01/28/2026 99999 TANIA ALVAREZ 160.76
130075 01/28/2026 99999 THE CREM GROUP 78.51
130076 01/28/2026 99999 TONI YARY 71.01
130077 01/28/2026 99999 URIEL VALENCIA 577.50
130078 01/28/2026 99999 VICTOR LUNA 126.00
130079 01/28/2026 99999 VICTOR PEREZ 60.33
130080 01/29/2026 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 5,527.81 130081 01/29/2026 69 AFSCME District Council 36 762.75
130082 01/29/2026 775 COVINA POLICE ASSOCIATION 3,000.00 130083 01/29/2026 878 DELTA DENTAL OF CALIFORNIA 9,883.62 130084 01/29/2026 3795 PRE-PAID LEGAL SERVICES, INC 151.00 130085 01/29/2026 3846 CLEA 1,104.00
130086 01/29/2026 4255 RELIASTAR LIFE INSURANCE COMPANY 5,070.96 130087 01/29/2026 4710 Fidelity Security Life Insurance Company 1,074.88 130088 02/04/2026 84 AIRGAS NATIONAL CARBONATION 333.80 130089 02/04/2026 85 AJAX SIGN GRAPHICS INC 27.63
130090 02/04/2026 239 AUTOZONE INC 664.50
130091 02/04/2026 477 DEPT OF INDUSTRIAL RELATIONS 225.00 130092 02/04/2026 477 STATE OF CALIFORNIA 1,033.20
130093 02/04/2026 477 STATE OF CALIFORNIA 3,474.81
130094 02/04/2026 568 CAT SPECIALTIES INC 189.60
130095 02/04/2026 649 CINTAS CORP #693 440.28
130096 02/04/2026 700 COLLEY FORD 272.02
130097 02/04/2026 766 COVINA DISPOSAL CO 19,067.35
130098 02/04/2026 783 CITY OF COVINA WATER 139.98
130099 02/04/2026 894 DF POLYGRAPH 200.00
130100 02/04/2026 970 EDISON CO 31,753.30
130101 02/04/2026 1055 FEDEX 18.94
130102 02/04/2026 1215 GONZALES, RICHARD 178.50
130103 02/04/2026 1235 GRAINGER 8.55
130104 02/04/2026 1317 HdL Coren & Cone 4,795.29
130105 02/04/2026 1417 IMS COMMERCIAL ICE SYSTEM REGRIGERATION 299.14 130106 02/04/2026 1437 INTER-CON SECURITY SYSTEMS INC 17,667.70 130107 02/04/2026 1531 JW LOCK CO INC 185.36
130108 02/04/2026 1614 LA CNTY FIRE DEPARTMENT 1,127,165.53 130109 02/04/2026 1617 REGISTRAR-RECORDER, COUNTY CLERK 20.00 130110 02/04/2026 1619 LA CNTY SHERIFF'S DEPT 377.80
130111 02/04/2026 1663 LAW ENFORCEMENT MEDICAL 3,825.00 130112 02/04/2026 1694 LEWIS ENGRAVING INC 287.30
130113 02/04/2026 1707 LIEBERT CASSIDY WHITMORE 2,798.50 130114 02/04/2026 1933 MISSION LINEN SUPPLY 26.72
130115 02/04/2026 2027 NAPA AUTO PARTS 645.95
130116 02/04/2026 2091 O REILLY AUTO PARTS 1,327.50
130117 02/04/2026 2101 OCLC 149.31
130118 02/04/2026 2294 PR DIAMOND PRODUCTS INC 815.00
130119 02/04/2026 2345 QUILL 71.45
130120 02/04/2026 2415 REPUBLIC MASTER CHEFS 430.64
130121 02/04/2026 2800 T MOBILE USA 380.82
Attachment A Page 3 of 5

CITY OF COVINA
Check Register
Jan 23, 2026 - Feb 5, 2026
Check # Check Date Vendor Name Amount
130122 02/04/2026 2818 GABE BF VAN LEEUWEN 315.00
130123 02/04/2026 2846 THOMAS, TERRI 968.10
130124 02/04/2026 2855 CHARTER COMMUNICATIONS 360.36
130125 02/04/2026 2898 TRIANGLE TRUCK PARTS 86.69
130126 02/04/2026 2935 UNDERGROUND SERVICE ALERT 251.11 130127 02/04/2026 2958 USPS - POC ACCOUNT #8098154 1,305.49 130128 02/04/2026 2966 V & V MANUFACTURING 128.12
130129 02/04/2026 3075 CITY OF WEST COVINA 1,460.00
130130 02/04/2026 3190 LAYNE, JONATHAN DANIEL 451.85
130131 02/04/2026 3202 PUMPMAN LLC 1,720.00
130132 02/04/2026 3235 COOK, SHAWNA 537.60
130133 02/04/2026 3701 DEPARTMENT OF JUSTICE 243.00
130134 02/04/2026 3729 SUNBELT RENTALS INC 357.00
130135 02/04/2026 3932 ARLENE D. MAR 56.00
130136 02/04/2026 3953 GOLDEN METERS SERVICES INC 3,015.00 130137 02/04/2026 3982 CAROL A CUGNO 492.10
130138 02/04/2026 4065 VERIZON BUSINESS SERVICES 1,830.98 130139 02/04/2026 4065 VERIZON WIRELESS 711.82
130140 02/04/2026 4089 MEASOM, DEVIN THOMAS 774.90
130141 02/04/2026 4349 Intelli-Tech 1,230.00
130142 02/04/2026 4455 FRONTIER 3,556.26
130143 02/04/2026 4483 DALE A. GARRISON 154.00
130144 02/04/2026 4564 National Union Fire Ins. Co. of Pittsburgh, PA 1,145.45 130145 02/04/2026 4688 PCAM, LLC 80,782.00
130146 02/04/2026 4704 S & J Supply Company, Inc. 9,159.57 130147 02/04/2026 4714 CIR, Inc. 35,005.28
130148 02/04/2026 4743 TREMCO/WEATHERPROOFING TECHNOLOGIES, INC. 14,683.11 130149 02/04/2026 4764 UniFirst Corporation 857.10
130150 02/04/2026 4804 Vihulu L. Villagran 189.00
130151 02/04/2026 4817 Weck Analytical Environmental Services, Inc. 245.00 130152 02/04/2026 4829 Alicia A. Flores 199.50
130153 02/04/2026 4833 Michael R. Hillmann 3,040.00
130154 02/04/2026 4840 BONITA UNIFIED SCHOOL DISTRICT 455.46 130155 02/04/2026 4854 CEJ Engineers, Inc. 29,100.00
130156 02/04/2026 4931 Antonio Castro Jr 1,176.00
130157 02/04/2026 4983 Ad Valorem Records,Inc. 2,939.16 130158 02/04/2026 5075 Amalia Q. Seresinghe 700.00
130159 02/04/2026 5186 DAYSMART SOFTWARE 417.72
130160 02/04/2026 5233 RODENT PEST TECHNOLOGIES 141.95
130161 02/04/2026 5251 DANIEL'S TIRE SERVICE 1,704.76
130162 02/04/2026 5291 AMAZON CAPITAL SERVICES, INC 937.60 130163 02/04/2026 5423 SUSAN T SCHOCK 106.40
130164 02/04/2026 5445 MARGARET L SMITH 395.50
130165 02/04/2026 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 18,500.00 130166 02/04/2026 5537 CHEYNE BURRIS INC 5,778.76
130167 02/04/2026 5549 AMANDA LOPEZ 92.40
130168 02/04/2026 5550 LEAH DAWN OSIER 929.60
130169 02/04/2026 5573 GUARDIAN ALLIANCE TECHNOLOGIES, INC. 390.00 130170 02/04/2026 5578 Daniella Chadwick 22.00
130171 02/04/2026 5580 ROLLINS, INC 165.66
130172 02/04/2026 5582 KATHARINE CURTISS 35.00
Attachment A Page 4 of 5

CITY OF COVINA
Check Register
Jan 23, 2026 - Feb 5, 2026
Check # Check Date Vendor Name Amount
130173 02/04/2026 5603 KAYLEE L BARNITT 404.80
130174 02/04/2026 5626 JENNIFER KOU 883.40
130175 02/04/2026 5639 TINOSI, INC 1,535.00
130176 02/04/2026 5641 ANTONIO IBARRA VEGA 126.00
130177 02/04/2026 5688 CHRISTOPHER E. MEDINA 303.60
130178 02/04/2026 5690 ELPS CAR WASH 89.97
130179 02/04/2026 5722 ANTHONY FILKINS 304.50
130180 02/04/2026 5741 ARLENE SANTOS 210.00
130181 02/04/2026 5754 CARDIO PARTNERS INC 127.08
130182 02/04/2026 5757 DEBRA CRUZ 49.00
130183 02/04/2026 5760 THE APPRAISAL STATION 400.00
130184 02/04/2026 5764 TITANS ROOFING CORPORATION 10,629.00 130185 02/04/2026 5767 TACOS EL GUERASO LLC 1,000.00
130186 02/04/2026 5768 OMNI CONCEPTS INC 1,086.00
130187 02/04/2026 99999 BAMBOO54 65.92
130188 02/04/2026 99999 DEREK GONZALES 195.11
130189 02/04/2026 99999 DERRICK NG 33.07
130190 02/04/2026 99999 JUAN DAMIAN 68.02
130191 02/04/2026 99999 KAYLA GARCIA 41.68
130192 02/04/2026 99999 KRYSTLE ALCALA 88.55
130193 02/04/2026 99999 MIMI TIFFANY WATSON 25.48
130194 02/04/2026 99999 MOLINO MANAGEMENT INC 40.85
130195 02/04/2026 99999 NATHAN PIMENTEL 691.00
130196 02/04/2026 99999 PATRICIA A GRIOTT 71.78
130197 02/04/2026 99999 SANCON TECHNOLOGIES 30.57
130198 02/04/2026 99999 SARA TAGASHIRA 500.00
130199 02/04/2026 99999 SERGIO SERRATO 116.56
130200 02/04/2026 99999 URIEL VALENCIA 350.87
130201 02/04/2026 99999 UTICA ASSOCIATES LLC 64.14
130202 02/04/2026 99999 YVETTE DE ANDA 39.93
130203 02/05/2026 5767 TACOS EL GUERASO LLC 250.00
subtotal checks $ 1,860,418.41
129976 01/21/2026 5763 DK SANDLER BROTHERS, INC. (1,738.17) subtotal voids $ (1,738.17)
payroll (01/29/26) $ 1,310,852.00
workers' compensation $ 108,342.97
TOTAL checks/EFTs $ 3,451,470.48
Attachment A Page 5 of 5

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 2
Meeting: February 17, 2026
Title: City-Wide Alleyway Resurfacing Project – Project No. P2605 – Award of Contract to G.M. Sager Construction Co., Inc. in the Amount of $66,795 Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Approve plans and specifications for the City-Wide Alleyway Resurfacing Project – Project No. P2605;

2. Award a contract for the City-Wide Alleyway Resurfacing Project – Project No.

P2605 to G.M. Sager Construction Co., Inc. as the lowest responsive and responsible bidder in the amount of $66,795 and authorize the City Manager to execute the contract; and

3. Authorize a contingency amount of $6,680 (approximately 10%) to cover any unforeseen construction expenses.

EXECUTIVE SUMMARY:

As part of the City’s Fiscal Year 2025-2026 Capital Improvement Program, the City Council approved a project entitled “City-Wide Alleyway Resurfacing Project – Project No. P2605,” which consisted of alleyway roadway reconstruction throughout the City. On July 15, 2025, the City Council awarded a contract to G.M Sager Construction Co., Inc. for the removal and replacement of approximately 19,000 square feet of 1.5” thick AC overlay for the alleyway along Italia Street between 1st Avenue and Barranca Avenue. Upon further review, City staff identified a secondary alleyway that is decaying and in need of repair and requested informal proposals from contractors for the removal and replacement of approximately 13,800 square feet of 1.5” thick AC overlay for the alleyway situated between West Badillo Street and West Grovecenter Street. The remaining funding for the project will be programmed towards the upcoming alleyway resurfacing project at the Covina Recreation Village Project site.

DISCUSSION:

The Department of Public Works requested informal proposals from three companies included in the City’s On-Call Services List for the Maintenance and Repair of City Facilities. City staff subsequently received the following two (2) proposals in response to the City-Wide Alleyway Resurfacing Project – Project No. P2605:

Rank Contractor Location Bid Base Amount
1 GM Sager Construction, Inc. Pomona, CA $66,795
2 Gentry Brothers, Inc. Irwindale, CA $72,750
3 FS Contractors, Inc. Sylmar, CA No Response
City staff reviewed all bid documents for completeness and concluded that G.M. Sager Construction Co., Inc. is the lowest responsive bidder to construct the City-Wide Alleyway Resurfacing Project – Project No. P2605. G.M. Sager Construction Co., Inc. has satisfactorily completed similar projects for other agencies including the City of Covina’s City-Wide Alleyway Resurfacing Project – Project No.

P2401 and Fire Station Facilities Repairs Project – Project No. F2303.

Upon approval by the City Council, the contract for the City-Wide Alleyway Resurfacing Project – Project No. P2605 will be set as follows:

Contract Amount (G.M. Sager Construction, Inc.) $66,795 10% Contingency Allowance $6,680
Total Fiscal Impact $73,475
FISCAL IMPACT:

The Citywide Alleyway Resurfacing Project – Project No. P2605 is included in the adopted Fiscal Year 2025-2026 Capital Improvement Program with a total allocation of $864,700 comprised of the following funding sources:

Funding Source Amount Account Number
Measure M $328,369 2420-2200-55310-P2605
Impact Fees – Streets $336,331 4705-2200-55310-P2605
Sanitary Sewer $200,000 6300-2700-55310-P2605
Total $864,700
Of note, $82,945 was used from Measure M funding earlier this year for the reconstruction of an alleyway on Italia Street between 1st Avenue and Barranca Avenue. The reconstruction of this new alleyway between West Badillo Street and West Grovecenter Street will utilize approximately $73,475 (including contingencies) to complete the second phase of the City-Wide Alleyway Resurfacing Project – Project No. P2605. The remaining project balance (currently estimated at $708,280) will subsequently be programmed as part of the upcoming alleyway resurfacing project for the Covina Recreation Village Project.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

Respectfully submitted,

Proposal/Contract
G. M. SAGER CONSTRUCTION CO., INC.

A GENERAL ENGINEERING CONTRACTOR
1380 SOUTH EAST END AVENUE, POMONA CA 91766
(909) 620-9987 ◆ (626) 335-7429 ◆ FAX (909) 620-5288
State Lic. #607796 DIR #1000010280
No. COC020226

PROPOSAL SUBMITTED TO CONTACT PHONE DATE
CITY OF COVINA RAFAEL FAJARDO (626) 384-5489 02/02/2026

STREET JOB NAME THOMAS GUIDE
534 N. BARRANCA AVENUE AZUSA AVE

CITY, STATE ZIP JOB LOCATION
COVINA, CA 91723 103 N. AZUSA AVE, COVINA, CA
DATE OF PLANS FAX # EMAIL:

[email protected];
We propose hereby to furnish material and labor complete in accordance with specifications below for the sum of:
**** SEE PRICING BELOW ****
PAYMENT TO BE AS FOLLOWS: NET 10 DAYS
Note: This Proposal may be withdrawn by us if not accepted within 60 Days.

We hereby submit specifications and estimates for:

SCOPE OF WORK

1. GRIND 13,800 SF OF EXISTING ASPHALT AT 1.5” THICK AND HAUL OFF.

2. INSTALL 13,800 SF OF (½”) PG64-10 ASPHALT OVERLAY AT 1.5” THICK. COMPACT TO MAX DENSITY.

TOTAL: $66,795.00
NOTE: PREVAILING WAGE PROJECT.

PRICING VALID FOR 60 DAYS.

EXCLUSIONS: PETROMAT REMOVAL, SOIL TESTING, PERMITS, COMPACTION TESTING, INSPECTION FEES, SURVEYING, RPM’S, TRAFFIC LOOPS.

Acceptance of Proposal - The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.

All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from specifications below involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado and other necessary insurance. Our workers are fully covered by Workers' Compensation Insurance.

Date of Acceptance Signature
PAGE 1 OF 1

ATTACHMENT A

ATTACHMENT B

CITY OF COVINA AGREEMENT FOR

MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated February 17, 2026 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and G.M. Sager Construction Co., Inc., a California corporation (Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to provide AC overlay work related to the City-Wide Alleyway Resurfacing Project, Project No. P2605 – Alleyway Between W. Badillo Street and W. Grovecenter Street.

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

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

The parties therefore agree as follows:

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

2. Compensation.

A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed Sixty-Six Thousand Seven Hundred and Ninety Five Dollars ($66,795) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.

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

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

agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.

3. Contractor’s Work.

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

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

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

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

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

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

F. Compliance with Laws. The Contractor shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in

equity occasioned by failure of the Contractor to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.

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

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

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

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

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

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

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

N. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers.

Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.

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

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

4. Method of Payment.

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

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

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

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

Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment.

5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.

Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor.

6. Independent Contractor.

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

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

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

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

C. Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section 6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

7. PERS Compliance and Indemnification.

A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active

or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

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

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

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

10. Indemnification.

A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions

of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees.

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

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

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

any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.

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

11. Insurance.

A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Four Million Dollars ($4,000,000) per project or location. If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds. 2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11.
3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor shall provide an executed declaration that it has no employees.

B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide.

Self-insurance shall not be considered to comply with the insurance requirements under this Section 11.

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

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

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

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

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

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

Contractor shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.

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

Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager.

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

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

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

12. Mutual Cooperation.

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

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

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

Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

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

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

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

the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:

If to City: If to Contractor:

Attn: Gary Sager, President
City of Covina G.M. Sager Construction Co., Inc.
125 E. College Street 1380 South East End Ave
Covina, California 91723 Pomona, CA 91766

17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law. Contractor will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.

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

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

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

21. Exhibits. Exhibits A, B, C, and D constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises

between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.

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

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

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

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

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

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

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

29. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable.

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

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

G.M. Sager Construction Co., Inc.
a California Corporation
By:

Name:

Title:

By:

Name:

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

EXHIBIT A

SCOPE OF WORK AND PAYMENT SCHEDULE

EXHIBIT B

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

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

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

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

4. Pursuant to California Labor Code Section 1771.4, Contractor’s services are subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractor shall post job site notices as prescribed by DIR regulations and agrees to furnish the records specified in California Labor Code Section 1776 directly to the Labor Commissioner in the manner prescribed by California Labor Code Section 1771.4(a)(3) and (c)(2).

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

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

7. Contractor shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.

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

EXHIBIT C

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Covina (“City”), has awarded to G.M. Sager Construction Co., Inc 1380 South East End Ave, Pomona, CA 91766 (“Principal”) (Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

City-Wide Alleyway Resurfacing Project, Project No. P2605 - Alleyway Between W.

Badillo Street and W. Grovecenter Street
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

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

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

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

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

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

Dated:

“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

EXHIBIT D

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

WHEREAS the City of Covina (“City”), State of California, has awarded to G.M. Sager Construction Co., Inc 1380 South East End Ave, Pomona, CA 91766 (“Principal”) (Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

City-Wide Alleyway Resurfacing Project, Project No. P2605 - Alleyway Between W.

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

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

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

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both

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

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

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury

Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: February 17, 2026
Title: City-Wide Sewer Relief Line Project – Project No. S2601 – Award of Contract in the Amount of $130,900 to GRBCON, Inc.

Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Award a contract for the City-Wide Sewer Relief Line Project – Project No.

S2601 to GRBCON, Inc. as the lowest responsive and responsible bidder in the amount of $130,900 and authorize the City Manager to execute the contract; and

2. Authorize a project contingency amount of $13,090 (approximately 10% of construction costs) to cover the costs of unforeseen construction expenses.

EXECUTIVE SUMMARY/BACKGROUND:

As a part of the City’s Fiscal Year 2025-26 Capital Improvement Program (CIP), the City Council approved a project entitled “City-Wide Sewer Relief Line Project,” which consisted of making necessary repairs to the Sanitary Sewer System throughout the City. Moreover, the need arose to replace various category Grade 4 and Grade 5 Sanitary Sewer System repairs from the Closed Caption Television Video (CCTV) footage captured during the recently completed CCTV Inspection Project in 2025. The City-Wide Sewer Relief Line Project – Project No. S2601 scope includes open-cut, or excavated, point repairs at approximately eight (8) locations throughout the City in which the sewer main is in “Severe Defect” (Grade 4) or “Critical Defect” (Grade 5) and repairs are needed in order to keep the Sanitary Sewer System running in optimal order.

DISCUSSION:

The Department of Public Works requested informal proposals from three (3) companies included on the City’s list for On-Call Construction Contractors. City staff subsequently received two (2) proposals as follows:

Rank Contractor Location Bid Base Amount
1 GRBCON, Inc. Baldwin Park, CA $130,900
2 Gentry Brothers, Inc. Irwindale, CA $145,500
N/A GM Sager Construction Co, Inc. Pomona, CA No Response City staff reviewed all bid documents for completeness and concluded that GRBCON, Inc. is the lowest responsive and responsible bidder for the project. GRBCON, Inc. has completed previous projects for the City of Covina including the Sewer Relief Line Project – Badillo Street from 4th Avenue to Hollenbeck Avenue, Badillo Street Water Main Replacement Project and the Sewer Main Replacement Project – Covina Police Department.

FISCAL IMPACT:

The approved budget for the City-Wide Sewer Relief Line Project in the FY 2025-26 Capital Improvement Program is currently $1,000,000. Adequate appropriations exist in 63002700-55350- S2601. The following is a summary of planned project expenditures specifically for the aforementioned Grade 4 and Grade 5 repairs to the City’s Sanitary Sewer System:

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

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

Respectfully submitted,
Construction Contract Amount (GRBCON, Inc.) $130,900
10% Project Contingency Allowance $13,090
Total Fiscal Impact $143,990

ATTACHMENT A

CONTRACT

CITY OF COVINA CONTRACT FOR
CITY-WIDE SEWER RELIEF LINE PROJECT – PROJECT NO. S2602 THIS CONTRACT (“Contract”) is made and entered this 17
th day of FEBRUARY, 2026 (“Effective
Date”), by and between the CITY OF COVINA, a California municipal corporation (“City”) and GRBCON, Inc., a California corporation (“Contractor”). Contractor’s California State Contractor’s license number is 1012408; Class A. Contractor’s DIR registration number is 1000038691.

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

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

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

2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as City-Wide Sewer Main Relief Line Project – Project No. S2602 (“Project”), as described in this Contract and in the Contract Documents.

3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor an amount not to exceed One Hundred and Thirty Thousand and Ninety Dollars ($130,090) in accordance with the prices as submitted in the Bid, attached hereto as Exhibit “A” and incorporated herein by this reference.

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

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

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

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

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

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

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

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

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

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

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

CITY OF COVINA
By:

City Manager
ATTEST:

By:

City Clerk
Dated:
(“CONTRACTOR”)
By:

Printed Name:

Title:

By:

Printed Name:

Title:

EXHIBIT A

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

WHEREAS the City of Covina (“City”), State of California, has awarded to

(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

CITY-WIDE SEWER RELIEF LINE PROJECT – PROJECT NO. S2602 (Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

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

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

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

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

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

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

CITY-WIDE SEWER RELIEF LINE PROJECT – PROJECT NO. S2502 (Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

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

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

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

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

rights of a party hereto.

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

Dated:
“Principal”
By:

Its
By:

Its
(Seal)
“Surety”
By:

Its
By:

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

ATTACHMENT B

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: February 17, 2025
Title: Consideration of a Managed Print Services Contract Presented by: Shawn Granger, IT Manager
Recommendation: Authorize the City Manager to Execute an Agreement with Xerox to Provide Managed Print Services.

EXECUTIVE SUMMARY:

The City previously contracted with Advanced Microcomputing Concepts to provide printer maintenance and toner to all city-wide printers. Staff has reviewed options to provide a wholistic approach to print service needs for the City and has designed a strategic printer needs plan that meets the needs of all departments. As proposed, it is recommended that the City Council consider a Managed Print Services Agreement that will provide new printers and toner along with maintenance, repair, and toner recycling for both the new printers as well as existing special function city-owned printers.

BACKGROUND:

The contract with Advanced Microcomputing Concepts has expired and the City has been on a monthto-month term. The current inventory of printers are past end-of-life and require replacement to maintain a continuity of services.

DISCUSSION:

Since the last managed print services contract expired, City staff has considered options to meet the organization’s ongoing print needs. The City of Covina received multiple proposals for Managed Print Services (MPS) and as proposed, recommends that the Council consider the Xerox MPS - Volume Based option - due to its competitive pricing, comprehensive support services with a 4-hour response time, and robust auto-fulfillment features for both toner and service needs. This option balances cost, support, and service level agreements effectively for the City of Covina.

FISCAL IMPACT:

The total cost for implementation in with Xerox MPS – Volume Based is $2,994.78/month for a term of 63 months. This includes hardware replacement, toner, and maintenance. Adequate appropriations exist for Fiscal Year (FY) 2025-26 expenditures (account 7200-6200-52480), with the remainder of the contract to be included in FY 2026-27 budget.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ver.202503.ds.cpra Page 1 of 6 Rev. 03/03/25
Copy Plus Rental
Agreement
5657 Copley Drive San Diego, CA 92111 - 877-541-5234
The words “User,” “Lessee,” “you” and “your” refer to Customer. The words “Owner,” “Lessor,” “we,” “us” and “our” refer to Xerox Business Solutions, LLC

CUSTOMER INFORMATION

FULL LEGAL NAME STREET ADDRESS
City of Covina 125 E College St

CITY STATE ZIP PHONE FAX
Covina CA 91723 6264850412

BILLING NAME (IF DIFFERENT FROM ABOVE) BILLING STREET ADDRESS CITY OF COVINA 125 E COLLEGE ST

CITY STATE ZIP E-MAIL
COVINA CA 91723 [email protected]

EQUIPMENT LOCATION (IF DIFFERENT FROM ABOVE)
See attached Schedule A

EQUIPMENT DESCRIPTION
MAKE/MODEL/ACCESSORIES SERIAL NO. STARTING METER
See attached Schedule A

TERM & PAYMENT INFORMATION
66 months
(3
deferred)
Payments* of $ 3 @ $0.00 then
$2,994.78 Monthly
The payment (“Payment”) period is monthly unless otherwise indicated. *plus applicable taxes Payment includes See attached Schedule A B&W Pages per month Overages billed at $ See attached Schedule A per B&W page* Payment includes See attached Schedule A Color Pages per month Overages billed at $ See attached Schedule A per Color page* Payment includes See attached Schedule A B&W Prints per month Overages billed at $ See attached Schedule A per B&W print* Payment includes See attached Schedule A Color Prints per month Overages billed at $ See attached Schedule A per Color print* Upon acceptance of the Equipment, THIS AGREEMENT IS NONCANCELABLE, IRREVOCABLE AND CANNOT BE TERMINATED.

OWNER ACCEPTANCE
Xerox Business Solutions, LLC

OWNER SIGNATURE PRINT NAME / TITLE DATED

CUSTOMER ACCEPTANCE

BY SIGNING BELOW OR AUTHENTICATING AN ELECTRONIC RECORD HEREOF, YOU CERTIFY THAT YOU HAVE REVIEWED AND DO AGREE TO ALL TERMS AND CONDITIONS OF THIS AGREEMENT ON THIS PAGE AND ON PAGE 2 ATTACHED HERETO. You acknowledge and agree that the Equipment has been delivered to you and you hereby accept such Equipment on an "AS-IS, WHERE-IS" basis for all purposes as of the date hereof. Upon you signing below, your promises herein will be non-cancelable, irrevocable and unconditional in all respects.

City of Covina X**signature** **title**
CUSTOMER (as referenced above) SIGNATURE TITLE
**ein**
**fullname** **datesigned**
FEDERAL TAX I.D. # PRINT NAME DATED
TERMS AND CONDITIONS (Continued on Page 2)

1. AGREEMENT: You agree to rent from us the goods, together with all replacements, parts, repairs, additions, and accessions incorporated therein or attached thereto and any and all proceeds of the foregoing, including, without limitation, insurance recoveries ("Equipment") and, if applicable, finance certain intangible items such as software, software or subscription license(s), software components, prepaid cloud credits or professional services (collectively, the “Financed Items,” which are included in the word “Equipment” unless separately stated) from licensor(s) and/or supplier(s) (collectively, the “Supplier”), all as described in this Agreement and in any attached schedule, addendum or amendment hereto (“Agreement”). You represent and warrant that you will use the Equipment for business purposes only and that the Equipment is new, unless otherwise noted. You agree to all of the terms and conditions contained in this Agreement, which, with the acceptance certification, is the entire agreement between you and us regarding the Equipment and which supersedes all prior agreements, including any purchase order, invoice, request for proposal, response or other related document. This Agreement becomes valid upon execution by us. In order to facilitate an orderly transition, the start date of this Agreement will be the date the Equipment is delivered to you or a date designated by us. If a later start date is designated, you agree to pay us a transitional payment equal to 1/30th of the Payment, multiplied by the number of days between the date the Equipment is delivered to you and the designated start date. If any provision of this Agreement is declared unenforceable, the other provisions herein shall remain in full force and effect to the fullest extent permitted by law.

2. OWNERSHIP; PAYMENTS; TAXES AND FEES: We own the Equipment, excluding any Financed Items. Ownership of any Financed Items shall remain with Supplier thereof. You will pay all Payments, as adjusted, when due, without notice or demand and without abatement, set-off, counterclaim or deduction of any amount whatsoever. If any part of a Payment is more than 5 days late, you agree to pay a late charge equal to: a) the higher of 10% of the Payment which is late or $26.00, or b) if less, the maximum charge allowed by law. The Payment may be adjusted proportionately upward or downward: (i) if the shipping charges or taxes differ from the estimate given to you; and/or (ii) to comply with the tax laws of the state in which the Equipment is located. You agree to reimburse us for all applicable taxes, assessments and penalties related to this Agreement, whenever levied or assessed on this Agreement, on us or you, or on the Equipment, its rental, sale, ownership, possession, use or operation. If we are not going to file and pay, you will be notified in writing within 60 days after commencement and or billed directly to you by your taxing jurisdiction. If we pay any taxes or other expenses that are owed hereunder, you agree to reimburse us when we request and to pay us a processing fee for each expense we pay on your behalf and to pay us APPLICATION NO. AGREEMENT NO.

ATTACHMENT A

ver.202503.ds.cpra Page 2 of 6 Rev. 03/03/25
an annual tax processing fee up to $50. You agree to pay us an origination fee of $189.50 for all closing costs. We may apply all sums received from you to any amounts due and owed to us under the terms of this Agreement. If for any reason your check is returned for insufficient funds, you will pay us a service charge of $30 or, if less, the maximum charge allowed by law. We may make a profit on any fees, estimated tax payments and other charges paid under this Agreement.

3. EQUIPMENT; SECURITY INTEREST: At your expense, you shall keep the Equipment: (i) in good repair, condition and working order, in compliance with applicable laws, ordinances and manufacturers’ and regulatory standards; (ii) free and clear of all liens and claims; and (iii) at your address shown on page 1, and you agree not to move Equipment unless we agree in writing. You grant us a security interest in the Equipment to secure all amounts you owe us under any agreement with us, except amounts secured by land and buildings in addition to the Equipment. You authorize and ratify our filing of any financing statement(s). You will not change your name, state of organization, headquarters or residence without providing prior written notice to us. You will notify us within 30 days if your state of organization revokes or terminates your existence.

4. INSURANCE; COLLATERAL PROTECTION; INDEMNITY; LOSS OR DAMAGE: You agree to keep the Equipment fully insured against all risk, with us named as lender’s loss payee, in an amount not less than the full replacement value of the Equipment until this Agreement is terminated. You also agree to maintain liability insurance with such coverage and from such insurance carrier as shall be satisfactory to us and to include us as an additional insured on the policy. You will provide written notice to us within 10 days of any modification or cancellation of your insurance policy(s). You agree to provide us certificates or other evidence of insurance acceptable to us. If you do not provide us with acceptable evidence of property insurance within 30 days after the start of this Agreement, we may, at our sole discretion, do as provided in either (A) or (B) below: (A) We may secure property loss insurance on the Equipment from a carrier of our choosing in such forms and amounts as we deem reasonable to protect our interests. If we secure insurance on the Equipment, we will not name you as an insured party, your interests may not be fully protected, and you will reimburse us the premium which may be higher than the premium you would pay if you obtained insurance, and which may result in a profit to us through an investment in reinsurance.

In addition, you agree to pay us our standard fees in connection with obtaining such insurance. If you are current in all of your obligations under the Agreement at the time of loss, any insurance proceeds received will be applied, at our option, to repair or replace the Equipment, or to pay us the remaining payments due or to become due under this Agreement, plus our booked residual, both discounted at 2% per annum. (B) We charge you a monthly property damage surcharge of up to .0035 of the Equipment cost as a result of our credit risk and administrative and other costs, as would be further described on a letter from us to you. We may make a profit on this program. NOTHING IN THIS PARAGRAPH WILL RELIEVE YOU OF RESPONSIBILITY FOR LIABILITY INSURANCE ON THE EQUIPMENT. We are not responsible for, and you agree to hold us harmless and reimburse us for and to defend on our behalf against, any claim for any loss, expense, liability or injury caused by or in any way related to delivery, installation, possession, ownership, renting, manufacture, use, condition, inspection, removal, return or storage of the Equipment. All indemnities will survive the expiration or termination of this Agreement. You are responsible for any loss, theft, destruction or damage to the Equipment (“Loss”), regardless of cause, whether or not insured. You agree to promptly notify us in writing of any Loss. If a Loss occurs and we have not otherwise agreed in writing, you will promptly pay to us the unpaid balance of this Agreement, including any future Payments to the end of the term plus the anticipated residual value of the Equipment, both discounted to present value at 2%. Any proceeds of insurance will be paid to us and credited against the Loss. You authorize us to sign on your behalf and appoint us as your attorney-in-fact to endorse in your name any insurance drafts or checks issued due to a Loss.

5. ASSIGNMENT: YOU SHALL NOT SELL, TRANSFER, ASSIGN, ENCUMBER, PLEDGE OR SUBLEASE THE EQUIPMENT OR THIS AGREEMENT, without our prior written consent, which will not be unreasonably withheld. You shall not consolidate or merge with or into any other entity, distribute, sell or dispose of all or any substantial portion of your assets other than in the ordinary course of business, without our prior written consent, which shall not be unreasonably withheld, and the surviving, or successor entity or the transferee of such assets, as the case may be, shall assume all of your obligations under this Agreement by a written instrument acceptable to us. No event shall occur which causes or results in a transfer of majority ownership of you while any obligations are outstanding hereunder. We may sell, assign, or transfer this Agreement without notice to or consent from you. You agree that if we sell, assign or transfer this Agreement, our assignee will have the same rights and benefits that we have now and will not have to perform any of our obligations. You agree that our assignee will not be subject to any claims, defenses, or offsets that you may have against us. This Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns.

6. DEFAULT AND REMEDIES: You will be in default if: (i) you do not pay any Payment or other sum due to us or you fail to perform in accordance with the covenants, terms and conditions of this Agreement or any other agreement with us or any of our affiliates; (ii) you make or have made any false statement or misrepresentation to us; (iii) you or any guarantor dies, dissolves, liquidates, terminates existence or is in bankruptcy; (iv) you or any guarantor suffers a material adverse change in its financial, business or operating condition; or (v) any guarantor defaults under any guaranty for this Agreement. If you are ever in default, at our option, we can cancel this Agreement and require that you pay the unpaid balance of this Agreement, including any future Payments to the end of term plus the anticipated residual value of the Equipment, both discounted to present value at 2%. We may recover default interest on any unpaid amount at the rate of 12% per year. Concurrently and cumulatively, we may also use any remedies available to us under the UCC and any other law and we may require that you immediately stop using any Financed Items.

If we take possession of the Equipment, you agree to pay the costs of repossession, moving, storage, repair and sale. The net proceeds of the sale of any Equipment will be credited against what you owe us under this Agreement and you will be responsible for any deficiency. In the event of any dispute or enforcement of our rights under this Agreement or any related agreement, you agree to pay our reasonable attorneys’ fees (including any incurred before or at trial, on appeal or in any other proceeding), actual court costs and any other collection costs, including any collection agency fee. LIMITATION ON LIABILITY: IN NO EVENT SHALL WE BE LIABLE TO YOU FOR ANY

INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL WE BE LIABLE TO YOU FOR ANY DIRECT DAMAGES IN EXCESS OF THE FEES PAID BY YOU UNDER THIS AGREEMENT IN THE SIX-MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT THAT GIVES RISE TO THE CLAIM. Any delay or failure to enforce our rights under this Agreement will not prevent us from enforcing any rights at a later time. You agree that this Agreement shall be a "Finance Lease" as defined by Article 2A of the UCC and your rights and remedies are governed exclusively by this Agreement. You waive all rights under sections 2A-508 through 522 of the UCC, as may be amended. If interest is charged or collected in excess of the maximum lawful rate, we will refund such excess to you, which will be your sole remedy.

7. INSPECTIONS AND REPORTS: We have the right, at any reasonable time, to inspect the Equipment and any documents relating to its installation, use, maintenance and repair. Within 30 days after our request, you will deliver all requested information which we deem reasonably necessary to determine your current financial condition and faithful performance of the terms hereof. Financial information will generally not be required unless your exposure with us exceeds $1,000,000. Unless otherwise accepted by us, each financial statement shall be prepared in accordance with generally accepted accounting principles consistently applied and shall fairly and accurately present your financial condition and results of operations for the period to which it pertains. You authorize us to obtain credit bureau reports for credit and collection purposes and to share them with our affiliates and agents.

8. END OF TERM: At the end of the initial term, this Agreement shall renew for successive 12-month renewal term(s) under the same terms hereof unless you send us written notice between 90 and 150 days before the end of the initial term or at least 60 days before the end of any renewal term that you want to return the Equipment, and you timely return the Equipment. You shall continue making Payments and paying all other amounts due after the end of the initial term until the Equipment is returned in accordance with the terms of this Agreement. As long as you have given us the required written notice, you will return all of the Equipment to a location we specify, at your expense, in retail re-saleable condition, full working order and complete repair. If you so request, and we permit the early termination of this Agreement, you agree to pay a fee for such privilege. YOU ARE SOLELY RESPONSIBLE FOR REMOVING ANY DATA THAT MAY RESIDE IN THE EQUIPMENT, INCLUDING BUT NOT LIMITED TO HARD DRIVES, DISK DRIVES OR ANY OTHER FORM OF MEMORY. You cannot pay off this Agreement or return the Equipment prior to the end of the initial term without our consent. If we consent, we may charge you, in addition to other amounts owed, an early termination fee.

9. USA PATRIOT ACT NOTICE; ANTI-TERRORISM AND ANTI-CORRUPTION COMPLIANCE: To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each customer who opens an account. When you enter into a transaction with us, we ask for your business name, address and other information that will allow us to identify you. We may also ask to see other documents that substantiate your business identity. You and any other person who you control, own a controlling interest in, or who owns a controlling interest in or otherwise controls you in any manner (“Representatives”) are and will remain in full compliance with all laws, regulations and government guidance concerning foreign asset control, trade sanctions, embargoes, and the prevention and detection of money laundering, bribery, corruption, and terrorism, and neither you nor any of your Representatives is or will be listed in any Sanctions-related list of designated persons maintained by the U.S. Department of Treasury’s Office of Foreign Assets Control or successor or the U.S. Department of State. You shall, and shall cause any Representative to, provide such information and take such actions as are reasonably requested by us in order to assist us in maintaining compliance with anti-money laundering laws and regulations.

10. MISCELLANEOUS: Unless otherwise stated in an amendment, supplement or addendum hereto, the parties agree that: (i) this Agreement and any related documents hereto may be authenticated by electronic means; (ii) the “original” of this Agreement shall be the copy that bears your manual, facsimile, scanned or electronic signature and that also bears our manually signed signature and is held by us; and (iii) to the extent this Agreement constitutes chattel paper (as defined by the UCC), a security interest may only be created in the original. Notwithstanding the foregoing, (i) for evidentiary purposes, any faxed, scanned or electronic copy of this Agreement may be considered the original, and you waive the right to challenge in court the authenticity or binding effect of any such copy or signature thereon; and (ii) we reserve the right to require you to sign any instrument manually and to deliver to us an original of such document. You agree to execute any further documents that we may request to carry out the intents and purposes of this Agreement. All notices shall be mailed or delivered by electronic transmission or via overnight courier to the respective parties at the addresses shown on this Agreement or such other address as a party may provide in writing from time to time. By providing us with a telephone number for a cellular phone or other wireless device, including a number that you later convert to a cellular number, you are expressly consenting to receiving communications, including but not limited to prerecorded or artificial voice message calls, text messages, and calls made by an automatic telephone dialing system, from us and our affiliates and agents at that number. This express consent applies to each such telephone number that you provide to us now or in the future and permits such calls for non-marketing purposes. Calls and messages may incur access fees from your cellular provider. You authorize us to make non-material amendments (including completing and conforming the description of the Equipment) on any document in connection with this Agreement. Unless stated otherwise herein, all other modifications to this Agreement must be in writing and signed by each party or in a duly authenticated electronic record. This Agreement may not be modified by course of performance. You authorize us to insert or correct missing information on this Agreement, including but not limited to agreement numbers, serial numbers and other Equipment information.

11. WARRANTY DISCLAIMERS: WE ARE RENTING THE EQUIPMENT TO YOU “AS-IS.” YOU HAVE SELECTED SUPPLIER(S) AND THE EQUIPMENT BASED UPON YOUR OWN JUDGMENT. IN THE EVENT WE ASSIGN THIS AGREEMENT, OUR ASSIGNEE DOES NOT TAKE RESPONSIBILITIES FOR THE INSTALLATION OR PERFORMANCE OF THE EQUIPMENT. YOU WILL CONTINUE TO MAKE ALL PAYMENTS UNDER THIS

AGREEMENT REGARDLESS OF ANY CLAIM OR COMPLAINT AGAINST ANY SUPPLIER, LICENSOR OR MANUFACTURER, AND ANY FAILURE OF A SERVICE PROVIDER TO PROVIDE SERVICES WILL NOT EXCUSE YOUR OBLIGATIONS TO US UNDER THIS AGREEMENT. YOU ARE NOT ENTITLED TO REDUCE OR SET-OFF AGAINST AMOUNTS DUE UNDER THIS AGREEMENT FOR ANY REASON, INCLUDING ALL INSTANCES WHERE THE TERM OF A FINANCED ITEM OR ASSOCIATED SERVICE MAY NOT BE COTERMINOUS WITH THE TERM OF THIS AGREEMENT. WE MAKE NO WARRANTIES, EXPRESS OR IMPLIED, OF, AND TAKE

ABSOLUTELY NO RESPONSIBILITY FOR, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, CONDITION, QUALITY, ADEQUACY, TITLE, DATA ACCURACY, SYSTEM INTEGRATION, FUNCTION, DEFECTS, OR ANY OTHER ISSUE IN REGARD TO THE EQUIPMENT, ANY ASSOCIATED SOFTWARE AND ANY FINANCED ITEMS. SO LONG AS YOU ARE NOT IN DEFAULT UNDER THIS AGREEMENT, WE ASSIGN TO YOU ANY WARRANTIES GIVEN TO US.

12. LAW; JURISDICTION/VENUE; JURY WAIVER: This Agreement will be governed by and construed in accordance with the law of the state of the principal place of business of Owner or, if assigned, the assignee’s principal place of business. You consent to the jurisdiction and venue of any state or federal court in the state of the Owner or, if assigned, where its assignee has its principal place of business and waive the defense of inconvenient forum.

For any action arising out of or relating to this Agreement or the Equipment, BOTH PARTIES WAIVE ALL RIGHTS TO A TRIAL BY JURY.

13. MAINTENANCE AND SUPPLIES: The charges established by this Agreement include payment for the use of the Equipment, accessories, maintenance by Supplier(s) during normal business hours, inspection, adjustment, parts replacement, drums, cleaning material required for proper operation and toner and developer. Paper and staples must be separately purchased by you. The per page/print charge and overages per page/print charge are based upon an 8 1/2” x 11” letter size page, print with an average 5% image fill, or its equivalent. If we determine that you have used 15% more consumable supplies than normal (as determined by the manufacturer’s specifications) to produce pages/prints, you agree to pay us an amount from time to time which may be necessary to offset such increased usage. If necessary, the maintenance and supply portion of this Agreement may be assigned by us. We may charge you a monthly supply freight fee to cover our costs of shipping supplies to you. You agree to pay all amounts owing under this Agreement regardless of any claim you have against Supplier relating to the maintenance and supplies, which are being provided to you pursuant to a separate arrangement with Supplier (“Arrangement”). Supplier will be solely responsible for performing all services and providing all supplies under the Arrangement.

Services may be delivered by Supplier’s affiliates and/or subcontractors, at Supplier’s sole discretion. You agree not to hold Owner (if different from Supplier) or any assignee of this Agreement responsible for Supplier’s obligations under the Arrangement. As a convenience to you, we may provide you with one invoice covering amounts owing under this Agreement and the Arrangement. Each month, you are entitled to produce the minimum number of pages/prints shown on page 1 for each applicable page/print type. Regardless of the number of pages/prints made, you will never pay less than the minimum Payment. You agree to provide periodic meter readings on the Equipment.

You agree to pay the applicable overage charge for each metered page/print that exceeds the applicable minimum number of pages/prints. Pages/prints made on equipment marked as not financed under this Agreement will be included in determining your page/print and overage charges. At the end of the first year of this Agreement, and once each successive 12-month period thereafter, the Payment and the overage charges may be increased by a maximum of 20% of the existing payment or charge and where a contract is subject to flat rate pricing, modify the Payment accordingly based on Customer’s usage during the previous 12-month period.

14. METER; ELECTRIC SERVICES: Most equipment will be connected to a remote transmission tool which will report the number of images made on the Equipment each month and upon which monthly invoices will be based. If a remote transmission tool is not installed and otherwise upon request, you will provide us, by telephone, e-mail or fax with the actual meter readings three days prior to your due date. We may estimate the number of images used if such meter readings are not received from you by us within 2 days. The estimated charge for excess images shall be adjusted upon receipt of actual meter readings. If you are unable to maintain remote transmission, we reserve the right to charge you a per device fee for such affected Equipment due to the increased service visits that will be required in order for Supplier to: (x) obtain such information, (y) provide such transmissions and/or (z) provide such maintenance services and supplies that otherwise would have been provided remotely and/or proactively. If you elect to not install a remote transmission tool, a manual meter collection fee as outlined on the Supplier’s currently published fee schedule shall apply. You agree to provide adequate space without charge for the Equipment, adequate electricity (including, if necessary, a dedicated 110 or 220 volt line), an electrical surge suppressor with a UL1449 rating or better, and reasonable storage for supplies to be used with the equipment.

ver.202503.ds.cpra Page 3 of 6 Rev. 03/03/25
Schedule A
This Schedule “A” is to be attached to and becomes part of the above-referenced Agreement by and between the undersigned and Xerox Business Solutions, LLC.

EQUIPMENT DESCRIPTION
Quantity Model and Description Location Serial Number Starting Meter Meter Pools 1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother HLL9310CDW

CITY OF COVINA
1250 N HOLLENBECK AVE
COVINA, CA 91722
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L5715DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) Brother MFC-L5715DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) Brother MFC-L5715DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) Brother MFC-L5715DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) Brother MFC-L5715DW

CITY OF COVINA
1250 N HOLLENBECK AVE
COVINA, CA 91722
B&W: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
APPLICATION NO. AGREEMENT NO.

ver.202503.ds.cpra Page 4 of 6 Rev. 03/03/25
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
815 N BARRANCA AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) Brother MFC-L8395CDW

CITY OF COVINA
534 N BARRANCA AVE
COVINA , CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
(Service Only) HLEX415DW CITY OF COVINA Page 60 of 310
ver.202503.ds.cpra Page 5 of 6 Rev. 03/03/25
1 125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW

CITY OF COVINA
234 N 2ND AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 (Service Only) HP LaserJet Enterprise
500 Color M551n
Asset Tag: 54660-S SN: CNDCGC40Q8
444 N CITRUS AVE City of Covina
CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 (Service Only) HP Color LaserJet
Enterprise CP5520n
Asset Tag: 54656-S SN: CNCCD711M1
125 E COLLEGE ST City of Covina,
CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1

METER POOL INFORMATION
Name Allowance Excess Rate Excess Frequency
B&W: MPS Pool #1 40,000 $0.01210 Quarterly
Color: MPS Pool #1 25,000 $0.08250 Quarterly

ver.202503.ds.cpra Page 6 of 6 Rev. 03/03/25

SOFTWARE / IT
Quantity Description Location

CUSTOMER ACCEPTANCE
This Schedule “A” is hereby verified as correct by the undersigned Customer, who acknowledges receipt of a copy.

City of Covina X**signature** **fullname** / **title** **datesigned** CUSTOMER (as referenced above) SIGNATURE PRINT NAME / TITLE DATED

CEC approved Ver.1.8.2 Effective 7/9/25 Page 1 of 8
Xerox Business Solutions, LLC (“Company”)

CUSTOMER SALES & SERVICE AGREEMENT BILL TO

CUSTOMER NAME CUSTOMER NAME
City of Covina CITY OF COVINA

ADDRESS ADDRESS
125 E College St 125 E COLLEGE ST

CITY, STATE ZIP CITY, STATE ZIP
Covina, CA 91723 COVINA, CA 91723

PRIMARY CONTACT PERSON PRIMARY PHONE NUMBER PRIMARY EMAIL BILL TO CONTACT PERSON BILL TO PHONE NUMBER BILL TO EMAIL SHAWN GRANGER 6264850412 [email protected] SHAWN GRANGER 6264850412 [email protected] SALESPERSON CUSTOMER PURCHASE ORDER # COMPANY REFERENCE # SERVICE CONTRACT MPS CONTRACT New Senaka Mahaarachchi 20424740 CONTRACT # CONTRACT #

LEASE PAYMENT MONTHLY SERVICE PAYMENT MONTHLY MPS PAYMENT 3 @ $0.00 then $2,994.78 Monthly N/A Included in Lease
TERMS OF PAYMENT: NET THIRTY (30) DAYS FOR CASH SALE AND ALL OTHER INVOICES NET THIRTY (30) DAYS FROM DATE OF INVOICE

PRODUCTS
QTY MODEL/PRODUCT # LOCATION DESCRIPTION TOTAL PRICE

SEE PRODUCT SCHEDULE (SCHEDULE A)

SUBTOTAL

SEE PRODUCT SCHEDULE (SCHEDULE A) SEE TRADE-IN EQUIPMENT / LEASE RETURN FORM SPECIAL SERVICES FEES $0.00

NOTE / ADJUSTMENT DETAILS
The Service/MPS Escalation Rate is 0%.

OTHER ADJUSTMENTS $0.00

CONTRACT TYPE EFFECTIVE DATES TRANSACTION TYPE
CASH SALE RENTAL TERM IN MONTHS 66 Months

LEASE MAINTENANCE ONLY PROPOSED START DATE
Actual start date based on
delivery or lease commencement. Lease FMV(SLG)

CONTRACT TERMS NOTES

SERVICE MPS
All parts, labor, drums and supplies; excluding paper and staples All parts and labor, including drums; excluding supplies, paper, and staples Remote Solve Opt-Out
Includes other (indicate)

CONTRACT POOLS SERVICE MPS
POOL MONTHLY VOLUME OVG. RATE MONTHLY PAYMENT BASE FRQNCY OVG. FRQNCY B&W: MPS Pool #1 40,000 $0.01210 Included in Lease Monthly Quarterly Color: MPS Pool #1 25,000 $0.08250 Included in Lease Monthly Quarterly REMOTE SERVICE TECHNOLOGY XDA (Monitoring Only): 62 Devices Covered PRIMARY METER CONTACT TECHNOLOGY CONTACT PERSON TECH PHONE # TECH EMAIL METER CONTACT PERSON METER PHONE # METER EMAIL SHAWN GRANGER 6264850412 [email protected] SHAWN GRANGER 6264850412 [email protected] v
Company will install an app to automatically collect device meters for contract billing and automated supply replenishment.

Company will charge a fee per machine per overage billing cycle should customer decline meter and supply technology app installation.

QTY MODEL / PRODUCT # SOFTWARE & DESCRIPTION SEE SOW FOR DETAILS TOTAL PRICE

SEE PRODUCT SCHEDULE (SCHEDULE A)

CUSTOMER ACCEPTANCE
By executing this agreement, I acknowledge that I have read and understand this agreement and I certify that I am authorized to execute this agreement on behalf of customer.

Authorized signature acknowledges terms / conditions and expiration dates or meter readings. The terms and conditions on the face and reverse side of this agreement correctly set forth the entire agreement between parties.

AUTHORIZED CUSTOMER SIGNATURE: **signature** TITLE: **title** SIGNER’S NAME (PRINTED): **fullname** DATE: **datesigned** COMPANY SALES: **signature2** DATE: **datesigned2**

CEC approved Ver.1.8.2 Effective 7/9/25 Page 2 of 8
Sales & Service Terms and Conditions

1. Definitions. The first page of this Sales & Service Agreement is referred to herein as the “Cover Page.” The Cover Page, these Terms and Conditions, any Schedules (e.g., a Product Schedule), Statements of Work (“SOW”), and/or any other attachments referenced on the Cover Page or attached hereto and incorporated herein represent the agreement (the “Agreement”) between Company and the Customer ( “Parties”) as identified on the Cover Page of this Agreement, with respect to the acquisition of those Products and/or Services. “Products” shall mean the equipment (“Equipment”) and any Software (“Application Software”) identified on the Cover Page and/or on a Product Schedule.

2. Scope. This Agreement may be executed for:
a) A SALE of Products. If a SALE, Company hereby offers to sell/license and Customer hereby accepts to purchase/license those Products in the quantity and for the price indicated on the Cover Page (and/or Product Schedule). Payment terms are set forth in Section 7, below. Title to the Equipment will transfer to Customer upon delivery; b) A LEASE of Products. If a LEASE, Customer will execute a separate lease agreement which will fund the purchase/license of the Products in the quantity indicated on the Cover Page (and/or Product Schedule) for the benefit of Customer. The lease will be between (i) Customer and a third-party lessor or (ii) Customer and Company, which Company shall then assign to a third-party lessor (each a “Lessor”). Nothing herein shall alter, amend, or affect Customer’s or Lessor’s rights or obligations pursuant to such lease. Upon execution of a lease agreement between Customer and Lessor, Customer shall be responsible to Lessor to satisfy the terms and conditions of the lease;
c) A RENTAL of Products. If a RENTAL, Company hereby offers to rent and Customer hereby accepts to pay for those Products in the quantity and for the price indicated on the Cover Page (and/or Product Schedule). Payment terms are set forth in Section 7, below. Title will remain with Company throughout the Term as indicated on the Cover Page. Customer agrees to obtain adequate insurance coverage sufficient to cover the full replacement value of the rental equipment while in Customer’s possession, and to have Company named as the loss payee. Unless otherwise stated in the Cover Page, the rental is non-cancellable for the stated term; and/or
d) An ACQUISITION OF SERVICES. Services may include those Services referenced in Section 4 of this Agreement and/or such additional Services outlined in one or more SOWs or Schedules attached hereto.

Payment terms for Services shall be in accordance with Section 7, below.

3. Delivery and Installation. Unless specified otherwise on the Cover Page, for any Sale, Lease, or Rental, Company shall deliver and install the Products at the location specified by Customer on the Cover Page and/or Product Schedule unless: (1) Customer has not made available at that address a suitable place of installation as specified by the Company; or (2) Customer has not made available suitable electrical service in accordance with the Underwriter’s Lab (“UL”) or manufacturer’s requirements. All risk of loss will transfer to the Customer upon delivery. Customer will be responsible for nonstandard delivery charges. Relocation of Products to a location other than that specified on the Cover Page and/or Product Schedule requires Company’s consent and may result in fees or increased rates.

4. Services. This Agreement covers both the labor and materials for adjustments, repairs, and replacement of parts necessitated by normal use of the Equipment. Unless otherwise stated on the Cover Page, Services do not include the following: (a) repairs due to (i) misuse, neglect, or abuse (including, without limitation, improper voltage or use of supplies that do not conform to the manufacturers’ specifications), (ii) use of options, accessories, products, supplies not provided by Company; (iii) non-Company alterations, relocation, or service; and/or (iv) loss or damage resulting from accidents, fire, water, or theft; (b) maintenance requested outside Company’s normal business hours or this Agreement, (c) relocation, (d) software or connected hardware, (e) hard drive replacement, (f) MICR Toner for Laser Printers, and parts and labor for all non-laser printers, and/or (g) parts for Scanners. Company reserves the right, at its sole discretion, to replace Equipment with Equipment of similar or better conditions and features, rather than providing on-site Service support. Replacement parts may be new, reprocessed, or recovered. Supplies provided by Company are in accordance with the copy volumes set forth on the Cover Page and within the manufacturer’s stated yields, and do not include staples or paper. Supplies are to be used exclusively for the Equipment and remain Company property until consumed. Customer will return, or allow Company to retrieve, any unused supplies at the termination or expiration of this Agreement. Customer is responsible for the cost of excess supplies. Supplies will be shipped to Customer via UPS Ground, or another method selected by Company. Unless otherwise stated herein, Customer will be billed for shipping, including, but not limited to, UPS Ground, Overnight, and/or Messenger Service per billing period or per shipment based on number of products. Additional fees may be charged for Services provided outside Company’s standard business hours or for computer/network issues and will be at Company hourly rates in effect at the time of such Services. Equipment may be supported and serviced using data that is automatically collected by Company from the Equipment via electronic transmission from the Equipment to a secure off-site location. Examples of automatically transmitted data include product registration, meter read, supply level, Equipment configuration and settings, software version, and problem/fault code data. All such data will be transmitted in a secure manner specified by Company. The automatic data transmission capability does not permit Company to read, view or download any Customer data, documents or other information residing on or passing through the Equipment or Customer's information management systems. Services may be delivered by Company’s Affiliates and/or Subcontractors, at Company’s sole discretion. Unless otherwise stated on the Cover Page, Company may charge and Customer shall pay a charge for each instance in which Customer declines Company’s use of remote technology to provide Services. Unless otherwise agreed to in writing, Customer remains solely responsible to secure any sensitive data and permanently delete such data from the internal media storage prior to removal of Equipment or termination of this Agreement. Company has no obligation to maintain Equipment beyond the “End of Service” for that particular model of Equipment.

End of Service (“EOS”) means the date announced by manufacturer after which Company will no longer offer Services for a particular Equipment model. Company reserves the right to discontinue Service upon thirty days written notice for any Equipment for which parts and/or Supplies are no longer available, or are not available on commercially reasonable terms.

5. Meter; Electric Services. Equipment is required to be connected to a remote transmission tool, which will periodically communicate meter reads as well as other device diagnostic data and upon which invoices will be based. If a remote transmission tool is not installed and otherwise upon request, you will provide us, by telephone, email, web submission, or fax with the actual meter readings three days prior to your due date. We may estimate the number of images used if such meter readings are not communicated to Company. The estimated charge for excess images shall be adjusted upon receipt of actual meter readings. If you do not maintain remote transmission, the Company reserves the right to charge you a per device fee for such affected Equipment due to the increased service visits that will be required in order to: (x) obtain such information, (y) provide such transmissions and (z) provide such Maintenance Services and Consumable Supplies that otherwise would have been provided remotely and/or proactively. If you elect to not install a remote transmission tool, the contract is subject to the unconnected device charge outlined on the Company’s currently published fee schedule. You agree to provide adequate space without charge for the Equipment, adequate electricity (including, if necessary, a dedicated 110 or 220-volt line), an electrical surge suppressor with a UL-1449 rating or better, and reasonable storage for supplies to be used with the Equipment.

6. Additions and Modifications. If, at any time during the Term, Customer upgrades, modifies, or adds equipment that utilizes the same Supplies as the Equipment, Customer shall promptly notify Company. Company maintains the right to inspect any upgrades and modifications to Equipment and/or additional equipment and determine whether equipment is eligible for Services. If approved for Services and agreed by the Parties, the Agreement will be amended to include such changes, including pricing modifications. All networked devices must be set up with our monitoring app for meters and Supplies. Any devices not under contract will be added automatically to the account for the listed rate. If our monitoring software is not reporting, Customer must work with us to resolve the issue as soon as possible.

7. Term and Payment. Except as may otherwise be provided for herein, this Agreement is non-cancellable and shall remain in effect throughout the Term; and, unless notified in writing sixty (60) days prior to its expiration, this Agreement shall automatically renew for twelve (12) months. Company reserves the right to terminate Services upon thirty (30) days written notice. In the event the fees herein are included in Customer’s lease payment, the Term shall run concurrently with the lease agreement and be subject to the renewal provisions provided for therein. The meter count at installation or, in the case of owned printers, at assessment, will be used for meter/overages calculations. Customer agrees to pay Company all amounts due within thirty (30) days of the date of Company’s invoice or, if the parties have agreed the third-party lessor will collect the Services fees due under this Agreement on behalf of Company, in accordance with the applicable lease agreement, and all other sums when due and payable. Except where the Cover Page denotes flat rate pricing, any Monthly Payment entitles Customer to Services and Supplies for a specific number and type (i.e. black & white, color, scan) of Prints/Copies as identified on the Cover Page and will be billed in advance, and Customer agrees to pay the Overage Rate for each Print/Copy that exceeds the applicable number and type of Prints/Copies provided in the Minimum Monthly Payment which amount shall be billed in arrears and is payable as indicated on the Cover Page. A Print/Copy is defined as standard 8.5”x11” copy, except where Equipment is designated on the Cover Page as having a Color Large impression pool (Color LG) and an Extra Long impression pool (XL IMP Color), in which case prints/copies are defined as follows: (a) Black Image: for sheet sizes up to 13"x19", each image calculates as (1) Black Print Meter; (b) Color Image: for sheet sizes less than 145 square inches in total area, each image calculates as (1) Color Print Meter (e.g., 8.5 x 14 in is NOT oversize (119sq. in)); (c) Color Large: for sheet sizes greater than or equal to 145 square inches each sheet calculates as (1) Color Print Meter and (1) Color Large Print Meter (e.g., 11 x 17 in is oversize (187 sq. in)); and (d) Black and Color Extra Long: for sheets with a length greater than 19.33", each image calculates as (2) Extra Long Meter and (1) Color Print Meter. No credit will be applied towards unused copies/prints. Customer’s obligation to pay all sums when due shall not be subject to any abatement or offset. If any payment is not received by Company within fifteen (15) days of its due date, Company may charge, and Customer will pay a late fee of 5% of the amount due or $25, whichever is greater (or such lesser rate as is the maximum allowable by law). Company has the right to withhold Services and Supplies, without recourse, for any non-payment. Unless otherwise stated on the Cover Page, Company may, on an annual basis, (a) increase the Base Charge and/or the Overage Rates, in an amount not to exceed 20% per annum and/or (b) where a contract is subject to flat rate pricing, shift Customer’s obligation to the applicable flat rate band corresponding to Customer’s usage during the previous calendar year. Company retains the right to have all or some of the amounts due hereunder billed and/or collected by third parties. If Customer declines invoice delivery via email and/or automatic payment withdrawal, or requires any specialized billing procedure or invoicing, Company reserves the right to bill an administrative fee, in accordance with Company’s currently published fee schedule, which is subject to change from time to time.

8. Taxes. Payments are exclusive of all state and local sales, use, excise, privilege and similar taxes, if any. You will be responsible for, indemnify and hold Company harmless from, all applicable taxes, fees or charges (including sales, use, personal property and transfer taxes (other than net income taxes), plus interest and penalties) assessed by any governmental entity on you, the Equipment, this Agreement, or the amounts payable hereunder (collectively, “Taxes”), unless you timely provide continuing proof of your tax exempt status. Customer will pay when due, either directly to the taxing authority or to Company upon demand, all taxes, fines and penalties relating to this Agreement that are now or in the future assessed or levied, except for taxes levied upon Company’s income.

9. Applicable Laws. Both Parties agree that they will comply with all applicable laws and regulations during the Term.

10. Limited License to Use Software. Company grants (and is authorized by its licensor’s to grant) Customer a non-exclusive, non-transferable license to use in the U.S.: (a) software and accompanying documentation ("Base Software”) only with the Equipment with which it was delivered; and (b) Software that is set forth as a separate line item in this Agreement (“Application Software”) (including its accompanying documentation), as applicable, for as long as Customer is current in the payment of all applicable software license fees. "Base Software" and "Application Software" are referred to collectively as "Licensed Software". Customer has no other rights and may not: (1) distribute, copy, modify, create derivatives of, decompile, or reverse engineer Licensed Software; (2) activate Licensed Software delivered with the Equipment in an inactivated state; or (3) allow others to engage in same. Title to, and all intellectual property rights in, Licensed Software will reside solely with Company and/or its licensors (who will be considered third-party beneficiaries of this Section). Licensed Software may contain code capable of automatically disabling the Equipment. Disabling code may be activated if: (x) Company is denied access to periodically reset such code; (y) Customer is notified of a default under this Agreement; or (z) Customer’s license is terminated or expires. The Base Software license will terminate: (i) if Customer no longer uses or possesses the Equipment; or (ii) upon the expiration or termination of this Agreement, unless Customer has exercised its option to purchase the Equipment. Neither Company nor its licensors warrant that Licensed Software will be free from errors or that its operation will be uninterrupted. The foregoing terms do not apply to Diagnostic Software or to Licensed Software/documentation accompanied by a clickwrap or shrinkwrap license agreement or otherwise made subject to a separate license agreement.

11. Diagnostic Software. Software used to evaluate or maintain the Equipment ("Diagnostic Software") is included with the Equipment. Diagnostic Software is a valuable trade secret of Company or its Licensors. Title to Diagnostic Software will remain with Company or its licensors. Company does not grant Customer any right to use Diagnostic Software, and Customer will not access, use, reproduce, distribute or disclose Diagnostic Software for any purpose (or allow third parties to do so). Customer will allow Company reasonable access to the Equipment to remove or disable Diagnostic Software if Customer is no longer receiving Service from Company, provided that any on-site access to Customer's facility will be during Customer's standard business hours.

12. Software Support. Except for Application Software identified as "No Svc." on the Cover Page, Company (or a designated servicer) will provide the software support set forth below ("Software Support"). For Base Software for Equipment, Software Support will be provided during the initial Term and any renewal period but in no event longer than 5 years after Company stops taking customer orders for the subject model of Equipment. For Application Software, Software Support will be provided as long as Customer is current in the payment of all applicable software license and support fees. Company will maintain a web-based or toll-free hotline during Company’s standard working hours to report Licensed Software problems and answer Licensed Software-related questions. Company, either directly or with its vendors, will make reasonable efforts to: (a) assure that Licensed Software performs in material conformity with its user documentation; (b) provide available workarounds or patches to resolve Licensed Software performance problems; and (c) resolve coding errors for (i) the current Release and (ii) the previous Release for a period of 6 months after the current Release is made available to Customer. Company will not be required to provide Software Support if Customer has modified the Licensed Software. New releases of Licensed Software that primarily incorporate compliance updates and coding error fixes are designated as "Maintenance Releases" or "Updates". Maintenance Releases or Updates that Company may make available will be provided at no charge and must be implemented within six months. New releases of Licensed Software that include new content or functionality ("Feature Releases") will be subject to additional license fees at then-current pricing. Maintenance Releases, Updates and Feature Releases are collectively referred to as "Releases". Each Release will be considered Licensed Software governed by the Software License and Licensed Software Support provisions of this Agreement (unless otherwise noted). Implementation of a Release may require Customer to procure, at Customer’s expense, additional hardware and/or software from Company or another entity. Upon installation of a Release, Customer will return or destroy all prior Releases.

CEC approved Ver.1.8.2 Effective 7/9/25 Page 3 of 8

13. INTELLECTUAL PROPERTY.
a. CUSTOMER’S CONTENT AND CUSTOMER ASSETS. Customer represents and warrants that it owns the customer assets and its content and materials provided to Company in connection with this Agreement or otherwise has the right to authorize Company to perform the Services hereunder. Customer represents and warrants that such content and materials do not, and shall not, contain any content that (i) is libelous, defamatory or obscene and/or (ii) infringes on or violates any applicable laws, regulations or rights of a third party, including without limitation, export laws, or any proprietary, intellectual property, contract, moral or privacy right or any other third party right.
b. XEROX TOOLS. “Xerox Tools” means certain Xerox proprietary tools (including any modifications, enhancements and derivative works) used by Company to provide certain Services Xerox and its licensors will at all times retain all right, title and interest in and to Xerox Tools including without limitation, all intellectual property rights therein, and, except as expressly set forth herein or as set forth in a SOW where limited access to the Xerox Device Manager (XDM) may be granted for a specific purpose, no rights to use, access or operate the Xerox Tools are granted to Customer. Xerox Tools will be installed and operated only by Company or its authorized agents. If required for royalty reporting purposes, Company may disclose Customer’s name and address to Xerox and/or the third-party licensor of certain Xerox Tools. Customer will not decompile or reverse engineer any Xerox Tools or allow others to do so. Customer will have access to reports generated by the Xerox Tools and stored in a provided database as set forth in the applicable SOW. Company may remove Xerox Tools at any time in Company’s sole discretion, provided that the removal of Xerox Tools will not affect Company’s obligations to perform Services, and Customer shall reasonably facilitate such removal. If Xerox Tools are included as part of the Services, they may be used by Customer only in conjunction with such Services. c. LIMITED LICENSE TO ASSESSMENTS AND REPORTS. Customer may duplicate and distribute assessments and/or reports prepared by Company pursuant to this Agreement only for Customer’s internal business purposes. Any recommendations and processes described in assessments and/or reports may only be implemented by Company for Customer and, if implemented, used by Customer only for Customer’s internal business purposes.
d. NO GRANTS TO CUSTOMER. Customer agrees that, except as set forth expressly in this Agreement, no other rights or licenses are granted to Customer. Further, the rights granted to Customer in this Section shall immediately terminate if Customer defaults hereunder with respect to any of its obligations related to such grant.

14. CONFIDENTIAL INFORMATION. Information exchanged under this Agreement will be treated as confidential if it is identified as confidential at disclosure or if the circumstances of disclosure would indicate to a reasonable person that the information should be treated as confidential (“Confidential Information”). The terms and conditions of this Agreement are Confidential Information of Company and Customer, and each party agrees not to disclose any of the foregoing without the other party’s prior written consent. Confidential Information will be protected using a reasonable degree of care to prevent unauthorized use or disclosure for two (2) years from the termination or expiration of this Agreement under which such Confidential Information was disclosed, whichever occurs later; provided, however, confidentiality with respect to trade secrets and Xerox Tools will not expire. These obligations of confidentiality will not apply to any Confidential Information that: (1) was in the public domain prior to, at the time of, or subsequent to the date of disclosure through no fault of the receiving party; (2) was rightfully in the receiving party’s possession or the possession of any third party free of any obligation of confidentiality; (3) was developed by the receiving party’s employees independently of and without reference to any of the other party’s Confidential Information; or (4) where disclosure is required by law or a government agency. Upon expiration or termination of this Agreement, each party will return to the other or, if requested, destroy, all Confidential Information of the other in its possession or control, except such Confidential Information as may be reasonably necessary to exercise rights that survive termination of this Agreement.

15. Warranty. Customer acknowledges that the Products covered by this Agreement were selected by Customer based upon its own judgment. Company shall pass through any applicable manufacturer’s warranty to Customer. COMPANY MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, ORAL OR WRITTEN, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF NON-INFRINGEMENT; IMPLIED WARRANTIES OF MERCHANTABILITY; OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE SPECIFICALLY AND UNRESERVEDLY EXCLUDED.

16. LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF

PROFITS, OR PUNITIVE DAMAGES WHETHER BASED IN CONTRACT, TORT, OR ANY OTHER LEGAL THEORY AND IRRESPECTIVE OF WHETHER EITHER PARTY HAS NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL COMPANY BE LIABLE TO CUSTOMER FOR ANY DIRECT DAMAGES IN EXCESS OF THE FEES PAID FOR SERVICES UNDER THIS AGREEMENT BY CUSTOMER TO COMPANY DURING THE SIX-MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT THAT GAVE RISE TO THE CLAIM.

17. Default; Remedies. Any of the following events or conditions shall constitute an Event of Default under this Agreement: (a) failure by Customer to make payment when due of any indebtedness to Company or for the Products, whether or not arising under this Agreement, without notice or demand by Company; (b) breach by Customer of any obligation herein; or (c) if Customer ceases doing business as a going concern. If Customer defaults, Company may: (1) require future Services, including Supplies, be paid for in advance, (2) require Customer to immediately pay the amount of the remaining unpaid balance of the Agreement, (3) terminate any and all agreements with Customer, and/or (4) pursue any other remedy permitted at law or in equity. In the Event of Default, remaining payment amounts due will be calculated using the average of the last six months’ billing or the amount set forth on the face of the Agreement, whichever is greater, multiplied by the remaining months of the Agreement, to compensate for loss of bargain and not as a penalty. Customer agrees that any delay or failure of Company to enforce its rights under this Agreement does not prevent Company from enforcing any such right at a later time. All of Company’s rights and remedies survive the termination of this Agreement. In the event of a dispute arising out of this Agreement or the Products listed herein, should it prevail, Company shall be entitled to collection of its reasonable costs and attorneys’ fees incurred in defending or enforcing this Agreement, whether or not litigation is commenced.

18. Assignment. Customer may not sell, transfer, or assign this Agreement without the prior written consent of Company. Company may sell, assign or transfer this Agreement.

19. Notices. All notices required or permitted under this Agreement shall be by overnight courier such party at the address set forth in this Agreement, or at such other address as such party may designate in writing from time to time. Any notice shall be effective two (2) days after it has been sent via overnight courier.

20. Indemnification. Each party, if promptly notified by the other and given the right to control the defense, shall indemnify, defend and hold harmless the other party, its affiliates, and their respective officers, directors, employees, agents, successors and assigns, from and against all claims by a third party for losses, damages, costs or liability of any kind (including expenses and reasonable legal fees) that a court finally awards such party (“Claims”) for bodily injury (including death) and damage to real or tangible property, to the extent proximately caused by the negligent acts or omissions, or willful misconduct of the indemnifying party (or its affiliates) in connection with this Agreement.

21. Fax/Electronic Execution. A faxed or electronically transmitted version of this Agreement may be considered the original and Customer will not have the right to challenge in court the authenticity or binding effect of any faxed or scanned copy or signature thereon. This Agreement may be signed in counterparts and all counterparts will be considered and constitute the same Agreement.

22. Warranty to Execute. Each party represents and warrants to the other, as an essential part of this Agreement, that: (i) it is duly organized and validly existing and in good standing under the laws of the state of its incorporation or formation; (ii) this Agreement has been duly authorized by all appropriate corporate action for signature; and (iii) the individual signing this Agreement is duly authorized to do so.

23. Miscellaneous. (a) Choice of Law. This Agreement shall be governed by the laws of the state of CA (without regard to conflict of laws principles); (b) Jury Trial. THE PARTIESEXPRESSLY WAIVE TRIAL BY JURY AS TO ALL ISSUES ARISING OUT OF OR RELATED TO THIS AGREEMENT; (c) Entire Agreement. This Agreement constitutes the entire agreement between the parties with regards to the subject matter herein and supersedes all prior agreements, proposals or negotiations, whether oral or written; (d) Enforceability. If any provision of this Agreement is unenforceable, illegal or invalid, the remaining provisions will remain in full force and effect; (e) Amendments. This Agreement may not be amended or modified except by a writing signed by the parties; provided Customer agrees that Company is authorized, without notice to Customer, to supply missing information or correct obvious errors provided that such change does not materially alter Customer’s obligations; (f) Force Majeure. Company shall not be responsible for delays or inability to provide Products or Services caused directly or indirectly by strikes, accidents, climate conditions, parts availability, unsafe travel conditions, or other reasons beyond Company’s control.

CEC approved Ver.1.8.2 Effective 7/9/25 Page 4 of 8

PRODUCT SCHEDULE (SCHEDULE A)
This Product Schedule/Schedule A is attached to and becomes part of the Agreement.

PRODUCTS
QTY MFG / MODEL DESCRIPTION ID# SERIAL
NUMBER

STARTING
BLACK
METER

STARTING
COLOR
METER

ADDRESS METER POOLS
4 Brother
HLL9310CDW Brother HLL9310CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
26 HLEX415DW HLEX415DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
3 Brother MFCL5715DW Brother MFC-L5715DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
13 Brother MFCL8395CDW Brother MFC-L8395CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
2 Brother
HLL9310CDW Brother HLL9310CDW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 Brother
HLL9310CDW Brother HLL9310CDW

CITY OF COVINA
1250 N HOLLENBECK
AVE
COVINA, CA 91722
B&W: MPS Pool #1
Color: MPS Pool #1
1 Brother MFCL5715DW Brother MFC-L5715DW

CITY OF COVINA
125 E COLLEGE ST
COVINA, CA 91723
B&W: MPS Pool #1
1 Brother MFCL5715DW Brother MFC-L5715DW

CITY OF COVINA
1250 N HOLLENBECK
AVE
COVINA, CA 91722
B&W: MPS Pool #1
1 Brother MFCL8395CDW Brother MFC-L8395CDW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 Brother MFCL8395CDW Brother MFC-L8395CDW

CITY OF COVINA
815 N BARRANCA AVE
COVINA, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 Brother MFCL8395CDW Brother MFC-L8395CDW

CITY OF COVINA
534 N BARRANCA AVE
COVINA , CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
2 HLEX415DW HLEX415DW

CITY OF COVINA
444 N CITRUS AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 HLEX415DW HLEX415DW

CITY OF COVINA
234 N 2ND AVE
COVINA, CA 91723
B&W: MPS Pool #1
1 HP LaserJet
Enterprise 500 Color
M551n
(Service Only) Detectives
Office 54660-S
CNDCGC40
Q8 0 0
444 N CITRUS AVE City
of Covina CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1
1 HP Color LaserJet
Enterprise CP5520n
(Service Only) Planning
Div #2 54656-S
CNCCD711M
1 0 0
125 E COLLEGE ST City
of Covina, CA 91723
B&W: MPS Pool #1
Color: MPS Pool #1

CUSTOMER ACCEPTANCE
By executing this agreement, I acknowledge that I have read and understand this agreement and I certify that I am authorized to execute this agreement on behalf of customer.

Authorized signature acknowledges terms / conditions and expiration dates or meter readings. The terms and conditions on the face and reverse side of this agreement correctly set forth the entire agreement between parties.

AUTHORIZED CUSTOMER SIGNATURE: **signature** TITLE: **title** SIGNER’S NAME (PRINTED): **fullname** DATE: **datesigned** COMPANY SALES: **signature2** DATE: **datesigned2**

CEC approved Ver.1.8.2 Effective 7/9/25 Page 5 of 8

CEC approved Ver.1.8.2 Effective 7/9/25 Page 6 of 8
XEROX® ADVANCED MANAGED PRINT SERVICES STATEMENT OF WORK THIS XEROX® ADVANCED MANAGED PRINT SERVICES STATEMENT OF WORK (''AMPS SOW'' or ''this SOW'') is hereby attached to and made a part of the SSA and/or MSA (''Agreement'') entered into by and between Xerox Business Solutions, LLC (''Company') and City of Covina (''Customer''), collectively the ''Parties'', to add the AMPS as further described herein. The effective date of this AMPS SOW is 02/10/2026. Except as expressly set forth herein, the Agreement’s terms and conditions are incorporated herein and shall govern the provision of AMPS pursuant to this AMPS SOW.

1. DEFINED TERMS - Terms defined within the Agreement and used herein shall have the meaning set forth in the Agreement unless expressly set forth otherwise below.

Company – Refers to the Company identified in the Agreement and referenced above, and operationally may include or refer to its affiliates executing Services on its behalf.

In-Scope AMPS Equipment – AMPS-Eligible Equipment installed in the Sites and managed by Company as defined by the Xerox Tools under this AMPS SOW.

Xerox® Advanced Managed Print Services (AMPS) – Services provided by Company under this XPSAS SOW on In-Scope AMPS Equipment, which include proactive meter reads, proactive Supplies requests, and proactive break/fix requests.

Xerox® Support Assistant – An app running on a Xerox ConnectKey printer that shows the user the status of AMPS Incidents, and enables the user to raise new Incidents or submit meter reads into the AMPS process.

2. SERVICES DESCRIPTION – AMPS provides proactive meter reads, proactive Supplies requests, and proactive break/fix requests for In-Scope AMPS Equipment.
a. Company shall operate the Xerox’s Service Desk Support during Company’s normal business hours on Company’s business days. Service Desk Support includes receipt of Service Calls by service provider. Service Calls may be generated from automatic alerts from In-Scope Devices (Proactive Service Call) or from the web portal by a Customer or Reseller or by telephone (Reactive Service Call). b. To enable Company to provide the expected proactive Services and Supplies, Customer agrees to the use of a monitoring tool (see Xerox Tools). Customer ensures the selected tool continues to run and/or connects to their network and devices. Company is available for technical support of that tool, and the operation and maintenance of any Cloud component.
c. If the chosen device management solution is Xerox Workplace Cloud Fleet Management ('CFM'), then by agreeing to this AMPS SOW You also agree to terms as defined in the following end user licensing agreement, as well as any periodic updates thereto, relating to the use of Xerox Tools to deliver the AMPS covered in this AMPS SOW. Company and/or Xerox Corporation reserve the right to update these terms at any time. www.xerox.com/downloads/usa/en/x/XWC-and-CFM-Terms-of-Service-and-EULA.pdf For other solutions, Terms and Conditions will be presented in the tool User Interface itself during implementation.

3. XEROX TOOLS - Company may utilize one or more of the following Xerox Tools to provide AMPS:
a. Xerox Workplace Cloud Fleet Management solution (''CFM'') – software that provides device data for monitoring of supplies, break/fix and meters and allows policy-based compliance to automate print fleet security; remote setting configuration; and security, patch and password management. b. Xerox Device Agent (''XDA'') is an application that enables the monitoring and assessment of the status and output of In-Scope Devices.
c. Xerox Device Manager (''XDM'') - an application that enables the monitoring and assessment of the status and output of In-Scope Devices.
d. Xerox Device Direct (''XDD'') - an application is embedded in the firmware of certain devices that allows In-Scope AMPS Equipment to automatically communicate Device Data to Xerox for monitoring purposes. e. Xerox Services Manager (''XSM'') – a Web-based application providing Company with data enabling centralized asset tracking; device and supplies monitoring; and break/fix incident management.

CEC approved Ver.1.8.2 Effective 7/9/25 Page 7 of 8
f. Xerox Report Manager (''XRM'') - an application that allows standard and custom reporting from XSM. g. Fleet Management Portal (''FMP'') - an online portal that provides program and device status and analytics. h. Xerox MPS Advanced Analytics (''MPS AA'') - a cloud-based reporting tool that presents data in a business intelligence format

4. TERM - Unless otherwise stated herein or in the Agreement, the term of this AMPS SOW shall be the same as the Term of the Agreement.

5. CHARGES – Charges for AMPS are set forth in the signed Agreement to which this AMPS SOW is attached and are exclusive of any and all applicable Taxes.

6. CHANGES – To the extent that the Parties wish to add or make modifications to this AMPS SOW, all such changes will be documented in a AMPS SOW Amendment signed by both Parties.

7. ADDITIONAL TERMS AND CONDITIONS SPECIFIC TO AMPS SOW – a. ADDITIONAL WARRANTY DISCLAIMER – IN ADDITION TO THE WARRANTIES AND DISCLAIMERS IN THE AGREEMENT, THE FOLLOWING SHALL APPLY TO AMPS: EXCEPT AS STATED IN THE AGREEMENT,

COMPANY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS AND IMPLIED, REGARDING THE

PERFORMANCE OF AMPS , AND COMPANY DOES NOT WARRANT THAT AMPS WILL BE COMPATIBLE WITH ALL OF CUSTOMER’S SOFTWARE, OR WILL MEET CUSTOMER’S REQUIREMENTS, OR WILL BE ERROR FREE.

If there is a conflict between the contents of the Agreement and this AMPS SOW, this SOW shall control but only with respect to the provision of AMPS.

The terms and conditions of this AMPS SOW apply only to the provision of the AMPS, and do not affect, amend, or modify any of the provision of any other Services under the Agreement. * Signature Page Follows *
Xerox Business Solutions, LLC City of Covina
Print Name:
_________________________________
Print Name: **fullname**
__________________________________
Print Title:
_________________________________
Print Title: **title**
_________________________________
Sign: **signature2**
_________________________________
Sign: **signature**
__________________________________
Date: **datesigned2**
_________________________________
Date: **datesigned**
__________________________________

CEC approved Ver.1.8.2 Effective 7/9/25 Page 8 of 8
Appendix 1 - Service Desk Support Activities - Table One Activity Service Desk
Support
Xerox/XBS
Receive and log Service Call in Fleet Management Portal (FMP) ✔ Monitor Proactive Service alerts *** on network connected compliant In-Scope Devices with fault reporting capability
✔
Collect and log Call Data* ✔
Undertake basic diagnosis including web troubleshooting processes via Remote Call Assist (RCA) where the In Scope Device contains features that enable remote diagnosis and repair of problems and log activity
✔
Validate requests for consumables against entitlement, e.g., volume and order history
✔
Escalation to Level 2 Support within XSM with Call Data if RCA is unsuccessful ✔ Arrange shipment of Consumable to Customer ✔
Arrange advanced remote diagnosis with Customer upon Service Call using RCA and log activity on XSM
✔
Follow up daily on progress of Service Call (Level One Support/Level Two Support follow up on the tickets owned at that stage)
✔
Log activities on open ticket on XSM (by the Level that owns the ticket at that stage) ✔ Close ticket (by the Level that owns the ticket at that stage) ✔ * Call Data means Asset Tag Number (required); Serial Number (required); Customer Service Centre/Customer end user name (required); Customer Service Centre/Customer end user contact number; (required); Incident statement (required); Fault Type (required where break fix incident), Customer Service Centre/Customer end user email address; Device location; Internal reference number (if applicable); and meter reads. Call Data is Customer Data Assumptions:
*** Advanced MPS Services, pro-active supplies and break/fix support, proper functioning of and data availability for the Xerox Tools and performance levels are dependent on active monitoring tools, such as XDA, XDM, XDD or CFM. It’s the Customer’s responsibility to keep such tools connected to the in-scope devices.

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: February 17, 2026
Title: Fiscal Year 2025-26 Mid-Year Budget Update and Adjustments Presented by: Theresa Franke, Director of Finance
Charles Russom, Sr. Management Analyst
Recommendation: 1. Adopt Resolution CC 2026-15 & SA 2026-01 authorizing Fiscal Year 2025- 2026 mid-year budget adjustments; and

2. Receive and file the Fiscal Year 2025-26 Mid-Year Budget Update.

EXECUTIVE SUMMARY:

The Mid-Year Budget Update provides an update on the status of the City's finances. The report includes recommended budget revisions as well as year-end revenue and expenditure projections.

BACKGROUND:

The City Council adopted the FY 2025-26 Budget on May 6, 2025. The total revenue budget was projected at $108,642,914 and total expenditures projected at $115,008,484. The adopted General Fund budget was balanced with revenues and expenditures totaling $57,247,253.

The originally adopted budget has been amended over the past several months to include prior year carryovers and additional appropriations authorized by the City Council. Factoring in these amendments and additional appropriations, the current General Fund revenue budget totals $57,275,204 while the budgeted expenditures total $57,866,959. A transfer from measure CC will be used to balance the General Fund.

DISCUSSION:

As a part of the Mid-Year report, staff has analyzed year to date revenues and expenditures as compared to the budget and identified accounts requiring adjustments.

General Fund:

The table below summarizes the original Fiscal Year 2025-26 General Fund adopted budget:

The following table summarizes the current Fiscal Year 2025-26 General Fund budget, revised to reflect actual June 30, 2025, fund balances, budget resolutions approved by the City Council in the current fiscal year to date, and encumbrance carryovers:

Adopted 2025-26 Budget June 30, 2025 June 30, 2026
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 14,239,306 57,247,253 57,247,253 14,239,306 - 1095 Special General Fund (Transaction/Use Tax) 12,469,543 8,831,706 9,220,014 12,081,235 (388,308) 26,708,850 66,078,959 66,467,267 26,320,542 (388,308)

As noted, the 2025-2026 revised budget projects an ending fund balance of $27.99 million, which is roughly $1.674 million greater than the original budget that was adopted at the beginning of the fiscal year. The revised budget reflects the use of roughly $7.803 million primarily for Capital Improvement Projects and to offset increasing unfunded liability costs.

General Fund Revenues:

The table below summarizes Fiscal Year 2025-26 general fund revenues. The table includes FY 2024- 25 actual revenues, the adopted and revised FY 2025-26 budget, recommended mid-year adjustments, as well as year-end figures indicating projected Fiscal Year 2025-26 revenues.

The original budget process utilized a conservative approach in projecting revenues. Based on year to date receipts and an analysis of final outcomes for the prior fiscal year, it is anticipated that overall general fund revenues will remain stable. With this in mind, as reflected on the above table, projected net revenue will increase by $622,125, which includes increases to sales tax and charges for services of $859,132 and a decrease of $563,000 in other taxes, intergovernmental, and fines & forfeitures. This increase of revenue also includes a transfer from Measure CC in the amount of $472,699 for continued operational needs.

General Fund Expenditures:

The following table summarizes Fiscal Year 2025-26 General Fund expenditures by department. The table includes Fiscal Year 2024-25 actual expenditures, the adopted and revised FY 2025-26 budget, 2025-26 Revised Budget June 30, 2025 June 30, 2026
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 14,288,280 57,275,204 57,866,959 $ 13,696,525 (591,755) 1095 Special General Fund (Transaction/Use Tax) 21,509,094 8,831,706 16,042,885 14,297,915 (7,211,179) $ 35,797,374 $ 66,106,910 $ 73,909,845 $ 27,994,439 (7,802,934) City of Covina
General Fund Revenue Summary
Fiscal Year 2025-26
2025 2026 2026 2026 2026
General Fund Revenues Actual Adopted Revised Mid-Yr Adj Projected YE Property Tax $ 19,218,808 $ 19,065,000 $ 19,065,000 $ - $ 19,065,000 Sales Tax 11,342,980 10,950,000 10,950,000 550,000 11,500,000 Utility Users Tax 6,315,246 6,550,000 6,550,000 - 6,550,000 Franchises/Other Taxes 3,068,623 3,088,000 3,088,000 (210,000) 2,878,000 Total Taxes 39,945,657 39,653,000 39,653,000 340,000 39,993,000 Licenses and Permits 1,193,523 1,129,700 1,129,700 - 1,129,700 Intergovernmental 1,289,572 1,029,300 1,029,300 (113,000) 916,300 Charges for Services 3,898,357 3,545,424 3,545,424 309,132 3,854,556 Fines and Forfeitures 779,158 850,985 878,936 (240,000) 638,936 Other Revenues 13,991,252 11,038,844 11,038,844 472,699 11,511,543 General Fund Total $ 61,097,519 $ 57,247,253 $ 57,275,204 $ 768,831 $ 58,044,035 2025 2026 2026 2026 2026
Special General Fund Revenues Actual Adopted Revised Mid-Yr Adj Projected YE Transaction & Use Tax $ 8,693,965 $ 8,831,706 $ 8,831,706 $ (146,706) $ 8,685,000 Special General Fund Total $ 8,693,965 $ 8,831,706 $ 8,831,706 $ (146,706) $ 8,685,000

recommended mid-year adjustments, as well as year-end figures indicating projected Fiscal Year 2025- 26 expenditures.

The recommended expenditure mid-year adjustments represent a total increase of $177,076. This represents an increase of $115,282 for programs and services utilized for city operations such as ongoing work to modernize the City’s zoning code, parks and recreation senior services & excursions, and public works projects. In addition, there is a Non-Departmental expenditure that is transferring $61,793 to the General CIP fund as part of the ongoing Co-Work Project. Special General Fund expenditures reflect a transfer to the general fund in the amount of $472,699 for continued operations.

There is also a decrease to Capital Projects for the Covina Recreation Village, as new accounts were created in an effort to better track city match requirements, this change reflects the commensurate reduction to the initial accounts. General Fund Expenditures by department are further detailed in Attachment B.

Fund Balances:

The following table illustrates the General Fund budget including all the recommended mid-year adjustments, including the Measure CC fund. This balance meets the City’s goal of maintaining a minimum of 20% emergency reserve in the General Fund.

All the recommended General Fund mid-year adjustments are summarized in Exhibit A. City of Covina General Fund Expenditure Summaries by Department
Fiscal Year 2025-26
General Fund Expenditures 2025 2026 Adopted 2026 Revised Mid-Year 2026 By Department Actual Budget Budget Adjustments Projected YE Legislative $ 605,636 $ 843,824 $ 843,824 $ - $ 843,824 Administration 1,260,195 1,463,541 1,515,545 - 1,515,545 Finance 1,377,482 1,642,869 1,645,269 - 1,645,269
Non-Departmental (1,776,570) (2,486,964) (2,486,964) 61,793 (2,425,171) Human Resources 1,337,701 1,444,443 1,444,443 18,000 1,462,443 Police 26,682,394 27,691,562 28,031,115 (69,884) 27,961,231 Emergency Services 28,743 - - - -
Fire 12,914,170 13,759,677 13,759,677 - 13,759,677
Public Works 4,257,470 4,561,915 4,531,614 60,000 4,591,614 Parks and Recreation 4,198,284 4,560,170 4,560,170 14,865 4,575,035 Community Development 9,260,086 3,766,216 4,022,267 92,301 4,114,568 Total General Fund (GF) Expenditures $ 60,145,590 $ 57,247,253 $ 57,866,959 $ 177,076 $58,044,035 2025 2026 Adopted 2026 Revised Mid-Year 2026
Actual Budget Budget Adjustments Projected YE
Transfer to General Fund $ 10,197,045 $ 9,220,014 $ 9,220,014 $ 472,699 $ 9,692,713 Transfer to Capital Projects Funds 1,073,149 - 6,822,871 (2,354,833) 4,468,038 Transfer to Enterprise Funds - - - - -
Transfer to Internal Services Funds 546,142 - - - -
Total Special GF Expenditures $ 11,816,336 $ 9,220,014 $ 16,042,885 $ (1,882,134) $14,160,751 Special General Fund Expenditures
2025-26 Mid-Year Projection June 30, 2025 June 30, 2026 Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund $ 14,288,280 $ 58,044,035 $ 58,044,035 $ 14,288,280 - 1095 Special General Fund (Transaction/Use Tax) 21,509,094 8,685,000 14,160,751 16,033,343 (5,475,751) $ 35,797,374 66,729,035 72,204,786 $ 30,321,622 (5,475,751)

Other Funds:

There are several adjustments recommended in various Special Revenue, Capital Projects, Enterprise and Internal Service Funds as detailed in Attachment A. Primarily these adjustments represent items pertaining to grant funds expended in the prior FY with reimbursement revenues received in the current FY, as well as budgeted items that were approved in the prior FY that were not spent.

Staffing Changes:

Over the past year, with increased responsibilities and duties, departments have analyzed their staffing needs and are recommending reclassification of four positions. These positions will not have a fiscal impact for the remainder of the fiscal year. The requested reclassifications are detailed below.

Department From To
Community Development Assistant Planner Associate Planner Finance / Water Administrative Technician Management Analyst Library Part-Time Library Assistant Full-Time Library Assistant Human Resources Part-Time Intern Part-Time Office Assistant FISCAL IMPACT:

Should all the recommended mid-year adjustments be approved, the total revenue budget will be $137,994,036 and budgeted expenditures would total $,168,751,848 citywide (Attachment C). The General Fund is projected to end the year with a fund balance of $14,288,280 and Measure CC will end with a fund balance of $16,033,343.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025
Fund Balance
Revenue
Budget
Mid-Year
Adjustment
Available
resources
Expenditure
Budget
Mid-Year
Adjustments
June 30, 2026
Fund Balance Chg
1010 General Fund 14,288,280 57,275,204 768,831 72,332,314 57,866,959 177,076 14,288,280 - 1095 Special General Fund (Transaction/Use Tax) 21,509,094 8,831,706 (146,706) 30,194,094 16,042,885 (1,882,134) 16,033,343 (5,475,751) Total General Fund 35,797,374 66,106,910 622,125 102,526,409 73,909,845 (1,705,059) 30,321,622 (5,475,751) - - - -
2020 Low Mod Housing Asset Fund 2,600,227 30,000 - 2,630,227 2,478,554 - 151,674 (2,448,554) 2025 Housing Bond Proceeds 04 Priva 280,392 6,000 - 286,392 15,000 - 271,392 (9,000) 2055 2004 Bond-Private 134,809 10,000 - 144,809 129,000 10,180 5,630 (129,180) 2100 Community Development Block Gr - 303,058 - 303,058.00 303,058 - - - 2120 Permanent Local Housing Allocation - 1,578,506 - 1,578,506 1,578,506 - - - 2185 Building Equipment Reserve 2,520 4,000 - 6,520 4,000 - 2,520 - 2189 Heritage Tree Preservation 41,223 - - 41,223 - - 41,223 - 2200 Police Evidence Reserve 252,361 - - 252,361 - - 252,361 - 2205 Inmate Communication 29,623 - - 29,623 - - 29,623 - 2221 Federal Treasury Narcotics 115,616 4,000 - 119,616 - - 119,616 4,000 2222 Federal Justice Narcotic Siezu 244,969 10,000 - 254,969 - - 254,969 10,000 2230 Other State Grants (307,282) 1,459,768 67,092 1,219,577 1,325,206 (133,478) 27,850 335,132 2246 Supplemental Law 100,512 188,000 - 288,512 99,652 188,860 - (100,512) 2270 Other Federal Grants - 49,141 10,000 59,141 49,141 10,000 - - 2271 Justice Assistance Grant - 10,000 (10,000) - 10,000 (10,000) - - 2272 Justice Assistance Grant Impact - - 10,000 10,000 - 10,000 - - 2278 Homeland Security Grant (5,820) 92,830 5,820 92,830 92,830 - - 5,820 2285 COPS Grant - 150,000 150,000 150,000 - - -
2290 Traffic Safety Fund 32,826 - 6,000 38,826 - - 38,826 6,000 2300 State Gas Tax (37,715) 1,439,069 - 1,401,354 1,403,319 (7,500) 5,535 43,250 2310 Road Maintenance and Rehab 792,295 1,365,947 - 2,158,242 2,157,630 - 613 (791,683) 2360 CA-Strong Motion Instrumentati 12,712 - - 12,712 - - 12,712 - 2365 SB1186 Fund 118,675 - - 118,675 - - 118,675 -
2370 CA-Green Building Standards 3,776 - - 3,776 - - 3,776 - 2400 Proposition A 2,819,837 1,599,480 - 4,419,317 2,241,896 - 2,177,421 (642,416) 2405 Proposition C 1,573,880 1,113,228 - 2,687,108 2,620,468 - 66,640 (1,507,240) 2407 TDA - 40,332 - 40,332 - - 40,332 40,332
2410 Measure R (19,985) 814,921 - 794,936 846,948 (55,681) 3,669 23,655 2420 Measure M 37,412 1,925,744 - 1,963,156 1,947,917 - 15,239 (22,173) 2500 Air Quality Improvement 92,805 66,000 - 158,805 28,231 - 130,574 37,769 2510 Measure W 25,385,054 775,000 - 26,160,054 15,957,288 300,000 9,902,765 (15,482,288) 2520 DOC Beverage Container Grant 31,665 12,910 - 44,575 13,407 - 31,168 (497)

City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025
Fund Balance
Revenue
Budget
Mid-Year
Adjustment
Available
resources
Expenditure
Budget
Mid-Year
Adjustments
June 30, 2026
Fund Balance Chg
2530 Oil Payment Program 2,131 7,443 - 9,574 7,443 - 2,131 - 2600 Cultural Arts 3,015 - - 3,015 - - 3,015 -
2604 Quimby Fees (248,017) 1,129,696 - 881,679 662,995 - 218,684 466,701 2700 Municipal Parking District 935,679 272,475 - 1,208,154 163,755 - 1,044,399 108,720 2710 Street Lighting Assessment Dis (26,437) 308,500 - 282,063 290,309 - (8,246) 18,191 2720 Street Trees and Landscaping 620,467 218,816 - 839,283 101,454 - 737,829 117,362 2740 Community Facilities District 274,698 300,000 - 574,698 300,509 - 274,188 (509) 2741 Community Facilities District-Stormwater - - 55,473 55,473 - 4,930 50,543 2750 Shoppers Lane Parking District 67,171 21,000 - 88,171 11,564 - 76,607 9,436 2760 Enhanced Infrastructure Financing District 60,173 43,000 103,173 - - 103,173 2800 Literacy Grant - 46,680 - 46,680 46,680 150 (150) (150) 2810 Library Equipment Reserve (18,002) - - (18,002) - - (18,002) - 2830 Other Library Grants - 1,000 1,000 - - 1,000 1,000 2890 PEG-Public Education and Government 597,591 50,000 - 647,591 672,732 - (25,141) (622,732) 2920 Public Safety Donation 15,773 - - 15,773 - - 15,773 - 2922 DARE Donation Admin 4,787 - - 4,787 - - 4,787 -
2926 Gang & Graffiti Donation 922 - - 922 - - 922 -
2927 Police Explorer Donation 10,113 - - 10,113 2,470 - 7,643 (2,470) 2930 Gang/Graffiti Scholarship Fund 679 - - 679 - - 679 - 2931 Every 15 Minutes Admin 2,896 - - 2,896 - - 2,896 - 2957 Playground Equip Replace Donat 5,941 - - 5,941 - - 5,941 - 2958 Teen Program Fundraising 2,505 - - 2,505 - - 2,505 - 2960 Parks & Recreation Donations 14,544 - - 14,544 - - 14,544 - 2965 Youth Program Donations 13,983 - - 13,983 - - 13,983 - 2966 Youth Sports Equip Donation 45,965 - - 45,965 - - 45,965 - 2967 Volunteen Web Berger Grant 23,682 2,200 - 25,882 5,480 - 20,402 (3,280) 2968 Senior Fundraising Donations 6,272 - - 6,272 6,272 - - (6,272) 2969 Grandmothers Club Donations 2,008 - - 2,008 2,008 - - (2,008) 2970 Library Services-Donation 42,833 - - 42,833 - - 42,833 - 2971 Lib Book Donation 9,374 - - 9,374 - - 9,374 -
2972 Library Services-IT Donation 1,475 - - 1,475 - - 1,475 - 2973 Gates Donation Fund 13,026 - - 13,026 - - 13,026 - 2975 Lib Services-Literacy Donation 10,933 - - 10,933 - - 10,933 - 2976 Joseph J Borrello Memorial 61,316 - - 61,316 61,000 - 316 (61,000) 2980 Miscellaneous Grants - - - - - - - -
4010 General CIP - 508,763 - 508,763 508,763 - - -
4050 Development Project Deposits 893,411 - - 893,411 - - 893,411 - 4200 Public Works CIP - - 40,960 40,960 - 40,960 - -
4300 Transportation CIP - 3,150,000 - 3,150,000 3,150,000 - - - 4600 Parks and Recreation CIP (3,394,906) 27,743,025 (2,758,756) 21,589,364 24,299,454 (2,753,633) 43,543.05 3,438,449 4630 Kahler Russell Park Gymnasium 111,540 - - 111,540 110,000 - 1,540 (110,000)

City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025
Fund Balance
Revenue
Budget
Mid-Year
Adjustment
Available
resources
Expenditure
Budget
Mid-Year
Adjustments
June 30, 2026
Fund Balance Chg
4640 Joslyn Center Reconstruction 5,000 - - 5,000 - - 5,000 - 4701 Impact Fees-General Govt 363,910 300 - 364,210 231,178 - 133,032 (230,878) 4702 Impact Fees-Library Admin 262,656 300 - 262,956 210,000 - 52,956 (209,700) 4703 Impact Fees-Police Admin 290,409 300 - 290,709 - - 290,709 300 4704 Impact Fees-Park Fac Admin 168,016 300 - 168,316 - - 168,316 300 4705 Impact Fees-Streets Adm 1,292,723 300 - 1,293,023 336,331 75,000 881,692 (411,031) 4706 Impact Fees-Fire Admin 195,504 300 - 195,804 - - 195,804 300 4707 Storm Water CFD 45,473 10,000 (10,000) 45,473 4,930 40,543 - (45,473) 6010 Water Utility Admin 10,026,747 12,163,315 41,533 22,231,595 13,287,963 231,759 8,711,873 (1,314,874) 6011 Water Capital Improvement Fund (1,092,243) 446,042 - (646,201) 2,890,546 - (3,536,747) (2,444,504) 6200 Environmental-Waste Mgmt 1,039,405 1,298,942 - 2,338,347 1,891,987 - 446,361 (593,045) 6300 Sewer Utility 5,600,520 3,081,283 - 8,681,803 4,455,749 30,000 4,196,054 (1,404,465) 6400 Theatre Fund 592,036 352,000 - 944,036 587,725 - 356,311 (235,725) 7010 Central Equipment Operations 3,052,489 1,447,582 - 4,500,071 2,444,533 15,000 2,040,538 (1,011,951) 7020 Building Maintenance 929,596 1,595,512 - 2,525,108 1,605,536 55,000 864,572 (65,024) 7200 Information Technology 1,543,887 2,527,448 - 4,071,335 2,671,171 18,000 1,382,164 (161,722) 7360 Worker's Compensation 1,904,732 1,349,841 - 3,254,574 1,349,841 45,000 1,859,732 (45,000) 7370 Public Liablity 562,211 2,513,028 - 3,075,239 2,512,991 - 562,248 37 8186 Downtown District 744 8,358 - 9,102 8,358 - 744 -
8187 Prospero 488 - - 488 - - 488 -
T800 OPEB Trust 1,625,068 120,000 - 1,745,068 4,000 - 1,741,068 116,000 SXXX Successor Agency Funds 1,274,621 20,000 21,195 1,315,815 63,000 21,195 1,231,621 (43,000) 99,981,296 139,892,595 (1,898,558) 237,975,332 172,320,622 (3,568,774) 69,223,484 (30,851,355)

2025 2026 2026 Mid-Year Projected
Legislative Actual Adopted Revised Adjustments Year End City Council 302,641 321,501 321,501 - 321,501
City Clerk 11,142 11,142 11,142 - 11,142
Elections 624 225,650 225,650 - 225,650
City Treasurer 9,896 10,031 10,031 - 10,031
City Attorney 281,334 275,500 275,500 - 275,500
605,636 843,824 843,824 - 843,824
2025 2026 2026 Mid-Year Projected
Administration Actual Adopted Revised Adjustments Year End City Manager 401,042 528,883 578,883 - 578,883
Economic Development 275,254 259,526 261,530 - 261,530
Public Information 114,710 133,241 133,241 - 133,241
Records Management 469,188 541,891 541,891 - 541,891
1,260,195 1,463,541 1,515,545 - 1,515,545
2025 2026 2026 Mid-Year Projected
Finance Actual Adopted Revised Adjustments Year End
Accounting 1,366,400 1,630,519 1,632,919 1,632,919
Duplicating 11,082 12,350 12,350 - 12,350
1,377,482 1,642,869 1,645,269 - 1,645,269
2025 2026 2026 Mid-Year Projected
Non Departmental Actual Adopted Revised Adjustments Year End Cost Allocation (2,834,596) (2,849,780) (2,849,780) - (2,849,780) Intergovernmental 42,379 55,900 55,900 - 55,900
Community Outreach 28,861 40,000 40,000 - 40,000
General Obligation 3,250 5,000 5,000 - 5,000
Capital Lease 42,122 - - - -
Transfers Out 941,414 261,916 261,916 61,793 323,709
(1,776,570) (2,486,964) (2,486,964) 61,793 (2,425,171)
2025 2026 2026 Mid-Year Projected
Human Resources Actual Adopted Revised Adjustments Year End General Administration 546,217 619,776 619,776 13,000 632,776 General Insurance 791,484 824,668 824,668 5,000 829,668 1,337,701 1,444,443 1,444,443 18,000 1,462,443
City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26

City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26
2025 2026 2026 Mid-Year Projected
Police Department Actual Adopted Revised Adjustments Year End General Administration 7,401,565 7,356,168 7,479,458 50,000 7,529,458 Crime Prevention 542,503 645,126 645,126 - 645,126
Investigations 2,676,846 3,095,684 3,095,684 13,976 3,109,661 Patrol 11,016,701 10,973,150 11,092,150 (153,860) 10,938,291 Police Records 626,380 695,971 695,971 - 695,971
Jail 469,191 465,967 465,967 - 465,967
Canine 5,574 5,500 5,500 - 5,500
Traffic 675,155 708,516 708,516 - 708,516
Parking Control 379,529 450,557 480,018 - 480,018
Communications Svcs 1,506,578 1,657,195 1,657,195 20,000 1,677,195 Police Training 631,933 638,337 634,337 - 634,337
Computer Service 308,539 470,387 542,188 - 542,188
Disaster Preparation 58,854 88,500 88,500 - 88,500
Animal Control 383,047 440,504 440,504 - 440,504
26,682,394 27,691,562 28,031,115 (69,884) 27,961,231
2025 2026 2026 Mid-Year Projected
Emergency Services Actual Adopted Revised Adjustments Year End Emergency Medical Services 28,743 - - - -
28,743 - - - -
2025 2026 2026 Mid-Year Projected
Fire Department Actual Adopted Revised Adjustments Year End Fire Suppression 12,914,170 13,759,677 13,759,677 - 13,759,677 12,914,170 13,759,677 13,759,677 - 13,759,677
2025 2026 2026 Mid-Year Projected
Public Works Actual Adopted Revised Adjustments Year End General Administration 496,228 576,689 576,689 - 576,689 Graffiti 703 1,000 1,000 - 1,000
Engineering 655,501 721,510 686,851 50,000 736,851
Streets 1,782,476 1,990,067 1,990,067 - 1,990,067
Street Trees Landscaping 14,900 - - - -
Park Maint 1,307,662 1,272,650 1,277,007 10,000 1,287,007 4,257,470 4,561,915 4,531,614 60,000 4,591,614

City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26
2025 2026 2026 Mid-Year Projected
Parks And Recreation Actual Adopted Revised Adjustments Year End General Administration 881,471 980,574 980,574 - 980,574 Community Relations 176,559 189,290 189,290 - 189,290
Recreation Services 588,801 709,800 709,800 6,100 715,900 Community Programs 70,274 92,735 92,735 - 92,735
Senior Services 462,501 451,664 451,664 2,850 454,514
Community Parade 250,122 257,898 257,898 5,915 263,813
Community Special Events 31,226 53,890 53,890 - 53,890
Aquatics 199,613 139,120 139,120 - 139,120
Library Services 1,537,717 1,685,199 1,685,199 - 1,685,199 4,198,284 4,560,170 4,560,170 14,865 4,575,035
2025 2026 2026 Mid-Year Projected
Community Development Actual Adopted Revised Adjustments Year End General Administration 6,863,718 1,677,231 1,717,047 33,000 1,750,047 Planning 914,879 695,589 831,376 35,000 866,376
Planning Commission 13,352 17,725 17,725 - 17,725
Building Inspection 815,936 890,780 890,417 - 890,417
Code Enforcement 484,895 484,891 461,843 24,301 486,144 Business Assistance 167,306 - 103,859 - 103,859
9,260,086 3,766,216 4,022,267 92,301 4,114,568
Total Gen Fund $ 60,145,590 $ 57,247,253 $ 57,866,959 $ 177,076 $ 58,044,035

ATTACHMENT C
RESOLUTION CC 2026-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AUTHORIZING FISCAL YEAR 2025-2026 MID-YEAR

BUDGET ADJUSTMENTS
WHEREAS, on May 6th, 2025, the City Council of Covina adopted Resolution CC 2025-37 adopting the Fiscal Year 2025-26 Budget for the City of Covina/Covina Public Financing Authority/Covina Housing Authority; and
WHEREAS, certain programs included in the Fiscal Year 2025-26 Budget will have revenue and expenditures which may vary from the adjusted budget; and WHEREAS, the City Council desires that the Fiscal Year 2025-26 Budget be adjusted for each of these programs to assure budgetary compliance; and WHEREAS, the cost center adjustments are reported in Exhibit A of this Resolution.

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

SECTION 1. That the budget adjustments to the City of Covina Fiscal Year 2025-26 Budget are adopted as listed in Exhibit A and the City Manager is authorized to implement the same.

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

APPROVED and PASSED this 17th day of February, 2026.

City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2026-15 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17th day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
_____________________________________
FABIAN VELEZ, Chief Deputy City Clerk

City of Covina
FY 2025-2026 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
General Fund
Proposed Revenue Adjustments
General
Transient Occupancy Tax 10100000 40300 (210,000)
Sales Tax 10100000 40200 550,000
Antenna Rental 10100000 43015 (41,533)
Transfer General Frm-G/F 10100000 49110 472,699
Police Department
General Public Safety 10101130 42115 (113,000)
Court Fine 10101130 44100 (240,000)
Paramedic Passthrough 1010 1600 43815 235,000
Public Works
GF-Engineering-Other Prof Fees 10102100 43250 50,000
Parks & Recreation
Special Event Revenue 10103610 43311 5,915
Cultural Excursion Revenue 1010RS33 43316 6,100
Community Development
Gen-Planning Plan Review 10104010 43400 53,650
Special General Fund (Measure CC)
Transaction & Use Tax 10950000 40205 (146,706)
General Fund
General Transfer- CIP 10100000 59140 61,793
Human Resources
Unemployment Insurance 10100880 50500 5,000
HR Personnel 10100800 51250 13,000
Police Department
Personnel Legal Fees 10101000 51250 10,000
Admin Other Profess Serv 10101000 51900 20,000
Electrical Utility 10101000 52120 20,000
Patrol- Full Time 10101130 50010 (188,860)
Tactical Equipment 10101130 54420 5,000
Clothing/Equipment 10101130 54430 20,000
General Supplies 10101130 54990 10,000
Communications Telephone 10101410 52200 20,000
General Fund Traffic Safety Transfer Spc
Rev. 10101200 59120 13,976

City of Covina
FY 2025-2026 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
Public Works
GF-Engineering-Other Prof Fees 10102100 51990 50,000
GF-Park Fac-Overtime 10102550 50030 10,000
Parks and Recreation
Maintenance-Other Equip 10103500 52490 2,850
Recreation Supplies 10103610 54590 5,915
Recreation Travel 1010RS33 53440 6,100
Community Development
CD Consulting 10104000 51005 23,000
CD Admin Legal 10104000 51290 10,000
Planning Legal 10104010 51200 10,000
Planning consulting 10104010 51005 25,000
Other Professional 10104200 51990 24,301
Special General Fund (Measure CC)
Transfer-Capital Projects Fund 10950000 59140 P2202 (2,754,833) Transfer-Capital Projects Fund 10950000 59140 400,000
Measure CC Reserve Trans-Gen Fund 10950000 59110 472,699 Special Revenue Funds
Housing Bond Proceeds
Transfer-Capital Projects Fund 20553400 59140 39,180
Buildings and Structures 20554400 55100 (29,000)
Other State Grants
Other State Grants/Subventions 22301130 42190 ABC (2,325) Other State Grants/Subventions 22301200 42190 (8,179)
Other State Grants- Traffic Safety 22301200 49110 13,947 Other State Grants/Subventions 22301410 42190 CHEM 63,647 Overtime 22301130 50030 ABC (8,286)
Overtime 22301200 50030 (120,482)
Employee Training 22301200 53210 (4,784)
General Supplies 22301130 54990 OWMHG 74
SLESA
SLESA Full-Time 22461130 50010 188,860
Other Federal Grants
Other Federal Grants 22701120 42090 HSI 10,000
Overtime 22701120 50030 HSI 10,000

City of Covina
FY 2025-2026 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
Justice Assistance Grants
JAG Grant 22711120 42080 JAG24 (10,000)
Regular Part-Time Employees 22711120 50015 JAG24 (9,186) Medicare Contribution 22711120 50110 JAG24 (133)
Workers Compensation 22711120 50400 JAG24 (681)
Impact Grant
County IMPACT 22721130 42285 10,000
Regular Part-Time Employees 22721130 50030 9,186
Medicare Contribution 22721130 50110 133
Workers Compensation 22721130 50400 681
Homeland Security Grant
Homeland Security Grant 22781130 42035 HSG21 5,820
Traffic Safety Grant
Traffic Safety-Traff PolSpcSer 22901200 43116 6,000
State Gas Tax
Gen-Traff Cntrl Maint-Traf 23002350 52418 (7,500)
Measure R Fund
Measure R-Streets-Street InfrastructureTraffic Calming Improvements Project 24102200 55310 T2602 30,000 Consulting 24102200 51005 P2603 (10,681)
Parking Facilities 24102800 55360 (75,000)
Measure W
Regular Full-Time Employees 25105600 50010 WM211 300,000 Community Facilities District- Stormwater
Transfer-Capital Projects Fund 27410000 49140 45,473
Com Fac-Public Service Comm Fa 27415600 45800 10,000
Consulting Fees 27415600 51005 4,730
Legal Fees 27415600 51200 200
Literacy Grant
Literacy-Lib Svc Telephone 28003900 52200 150
Capital Improvements (CIP) Funds
Public Works CIP
Public Works CIP – Park Facilities –
Improvements Not Buildings and Structures 42003400 55200 40,960 Public Works CIP – Park Facilities – Other
Revenue 42003400 48990 40,960

City of Covina
FY 2025-2026 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
Parks & Recreation CIP
Parks CIP- Other 46000000 48990 17,053
State Park Grant 4600PR68 42177 P2303 112,215
Other Grants 46003400 42600 P2403 (44,820)
Other Revenue 46003900 48990 P2202 (127,550)
Parks CIP- Transfer frm General Fund 46003400 49110 P2202 (64,370) Parks CIP- Transfer frm General Fund 46003900 49110 P2202 (2,438,510) Parks CIP- Transfer frm General Fund 460039CM 49110 P2202 (251,953) Parks CIP- Transfer frm General Fund 46003400 49110 39,180 Parks CIP-Improvement Bldgs/Structures 46003900 55100 P2202 (2,688,510) Parks CIP-Improvement Bldgs/Structures 460039CM 55100 P2202 (251,953) Parks CIP-Improvement Not
Bldgs/Structures 46003400 55200 P2202 (14,370)
Parks CIP-Buildings and Structures 46003400 55100 P2202 200,000 Fiscal Agent Fees 46003400 56800 P1601 1,200
Impact Fees- Streets Administration
Parking Facilities 47052800 55360 75,000
Community Facilities District
Community Facilities District 47075600 45800 (10,000)
Consulting Fees 47075600 51005 (4,730)
Legal Fees 47075600 51200 (200)
Transfer-Special Revenue Fund 47070000 59120 45,473
Enterprise Funds
Water Utility Admin
Antenna Rental 60105000 43015 41,533
Water-Consulting Fees 60105000 51005 W2504 47,759
Water-Customer Service Overtim 60105010 50030 16,000
Water-Production Overtime 60105060 50030 90,000
Water-Trans and Dist Overtime 60105080 50030 78,000
Sewer Utility
Sewer-San Sewer Overtime 63002700 50030 30,000

City of Covina
FY 2025-2026 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
Internal Service Funds
Central Equipment Operations
Central-Equip Op Overtime 70106010 50030 15,000
Building Maintenance Fund
Blg Maint-Overtime 70206100 50030 55,000
Information Technology
Software Leasing Fees 72006200 51795 18,000
Workers Compensation
Work Comp Legal 73600860 51260 45,000

ATTACHMENT D
RESOLUTION SA 2026-01

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY OF THE CITY OF COVINA, CALIFORNIA, AUTHORIZING FISCAL YEAR 2025-2026 MID-YEAR BUDGET

ADJUSTMENTS
WHEREAS, On May 6, 2025, Successor Agency to the Covina Redevelopment Agency adopted Resolution SA 2025-03 adopting the Fiscal Year 2025-26 Budge; and WHEREAS, certain programs included in the Fiscal Year 2025-26 Budget will have revenue and expenditures which may vary from the adjusted budget; and WHEREAS, the Successor Agency to the Covina Redevelopment Agency desires that the Fiscal Year 2025-26 Budget be adjusted for each of these programs to assure budgetary compliance; and
WHEREAS, the cost center adjustment transfer of $21,195 is represented in this Resolution in account numbers S3000000-49181 to S5310000-59181.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. That the budget adjustment to the Successor Agency to the Covina Redevelopment Agency Fiscal Year 2025-26 Budget is listed below and the Executive Director is authorized to implement the same.

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

Account No.

Account
Description Amount ($)
Increase/
Decrease
S3000000-
49181
Transfer from
SACRA RORF $21,195 Increase
S5310000-
59181
Transfer to
SACRA $21,195 Increase
APPROVED and PASSED this 17
th day of February, 2026.

Successor Agency to the Covina
Redevelopment Agency of Covina,
California
BY:

VICTOR LINARES, Chair

Resolution SA 2025-01 Page 2 of 2
ATTEST:

FABIAN VELEZ, Agency Secretary

CERTIFICATION
I, Fabian Velez, Secretary of the Successor Agency to the Covina Redevelopment Agency, do hereby certify that Resolution SA 2026-01, was duly adopted by the Successor Agency to the Covina Redevelopment Agency at a regular meeting held on the 17
th day of February, 2026, by the following vote:

AYES: BOARD MEMBERS:

NOES: BOARD MEMBERS:

ABSTAIN: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:

Dated:

FABIAN VELEZ, Agency Secretary

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: February 17, 2026
Title: Funding Award for 2024 State Homeland Security Grant Presented by: Ric Walczak, Chief of Police
Recommendation: 1. Adopt Resolution CC 2026-14 to increase the Police Department’s 2025-26 budget by $60,000 resulting from the 2024 State Homeland Security Award;

2. Authorize the City Manager or his designee to sign the 2024 State Homeland Security (SHSP) sub-recipient award agreement and all related documents;

3. Approve the purchase of Motorola radio equipment for $60,000.

EXECUTIVE SUMMARY:

A Homeland Security grant was established by the State, in part, to provide for the purchase of specialized equipment to enhance event and incident management and strengthen the ability of Law Enforcement to disrupt, deter, respond to and recover from terrorist acts. Equipment approved for purchase under this grant includes all-spectrum portable radios, programming cables and multi-radio bank charger(s).

DISCUSSION:

The County of Los Angeles Board of Supervisors accepted the 2024 State Homeland Security Program (SHSP) for the Los Angeles County Operational Area and received requisite State approvals to proceed with the allocation of funds to program recipients, such as Covina. In order to facilitate this effort, the County of Los Angeles requires a formal Sub-recipient Agreement (SRA) with the City of Covina, which outlines the requirements of the grant and provides the guidelines to follow for SHSP reimbursement of eligible expenses of which we have been authorized up to $60,000 to purchase all-spectrum portable radios, programming cables and one multi-radio bank charger(s).

Motorola equipment will be purchased from Motorola Solutions, Inc. These recommendations are made as exceptions to the competitive bidding process pursuant to Section 2.20.080 (b)(1) of the Covina Municipal Code. This states that procurement by noncompetitive proposals may be made only when the supply, service or equipment is available from only one source. Due to the ongoing replacement of radios in the department and county-wide for interoperability, Covina must purchase Motorola APX 8000 radios from one vendor. Since Motorola is the only vendor, competition does not exist for their proprietary items of original equipment manufacturers and are the only authorized exclusive distributors.

FISCAL IMPACT:

Five (5) radios will be purchased by the City and reimbursed fully by this grant. Resolution CC 2026-xx will accept the grant in the amount of $60,000 and will also increase the police department FY 2025-26 budget by appropriating the same amount.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
RESOLUTION CC 2026-14

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

CALIFORNIA, INCREASING THE POLICE DEPARTMENT FISCAL
YEAR 2025-26 BUDGET BY $60,000 AND APPROPRIATE THE SAME

DOLLAR AMOUNT TO PURCHASE RADIOS RESULTING FROM A
GRANT AWARD BY THE 2024 CALIFORNIA STATE HOMELAND

SECURITY GRANT PROGRAM (SHSP)
WHEREAS, the City of Covina (“City”) is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the City of Covina was awarded the State Homeland Security grant for 2024 in the amount of $60,000 for radios; and
WHEREAS, accepting this award will increase the Police Department’s appropriation by $60,000 and revenue account by the same amount; and WHEREAS, appropriations may be made by the City Manager, amendments (increases/decreases) to the Budget shall be by approval and Resolution of the City Council.

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

SECTION 1. The Fiscal Year 2025-26 Budget is hereby amended as follows:

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

APPROVED and PASSED this 17th day of February, 2026
City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk Revenue Account 2278-1130-42035-SHSP24 $60,000.00 Appropriations Account 2278-1130-55700-SHSP24 $60,000.00 Page 95 of 310 Resolution CC 2024-xx Page 2 of 2

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2026-14 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17
th day of February, 2026, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
__________________________________
FABIAN VELEZ, Chief Deputy City Clerk

State Homeland Security Program
Subrecipient Agreement
Grant Year 2024
Between the
County of Los Angeles
and the
City of Covina

ATTACHMENT B

SUBRECIPIENT AGREEMENT

BETWEEN THE

COUNTY OF LOS ANGELES
AND

THE CITY OF COVINA
THIS AGREEMENT ("Agreement") is made and entered into by and between the County of Los Angeles, a political subdivision of the State of California (the "County of Los Angeles"), and the City of Covina, a public agency (the "Subrecipient").

W I T N E S S E T H
WHEREAS, the U.S. Department of Homeland Security Title 2 Code of Federal Regulations (CFR) through the Office of Grants and Training (G&T), has provided financial assistance for the State Homeland Security Program (SHSP), Assistance Listings Number (formerly Catalog of Federal Domestic Assistance Number) 97.067 - Homeland Security Grant Program directly to the California Governor's Office of Emergency Services (Cal OES) for the 2024 SHSP, Federal Award Identification No. 037-00000, Federal Award dated October 28, 2024 with a performance period of September 1, 2024 to May 31, 2027. This Federal Award is not a R&D award; and WHEREAS, the Cal OES provides said funds to the County of Los Angeles, Unique Entity ID (UEI) #MKQ9AQH7R2S5, as its Subgrantee, and the Chief Executive Office (CEO) is responsible for managing and overseeing the SHSP funds that are distributed to other specified jurisdictions within Los Angeles County; and WHEREAS, this financial assistance is being provided to the Subrecipient in order to address the unique equipment, training, organization, exercise and planning needs of the Subrecipient, and to assist the Subrecipient in building effective prevention and protection capabilities to prevent, respond to, and recover from threats or acts of terrorism; and
WHEREAS, the County of Los Angeles as Subgrantee has obtained approval of the 2024 SHSP grant from Cal OES in the total amount of $8,300,952; and WHEREAS, the CEO now wishes to distribute 2024 SHSP grant funds to the Subrecipient in the amount of $60,000, as further detailed in this Agreement; and WHEREAS, the CEO is authorized to enter into subrecipient agreements with cities providing for re-allocation and use of these funds; and to execute all future amendments, modifications, extensions, and augmentations relative to the subrecipient agreements, as necessary; and

WHEREAS, the County of Los Angeles and Subrecipient are desirous of executing this Agreement, and the County of Los Angeles Board of Supervisors on July 15, 2025 authorized the CEO to prepare and execute this Agreement.

NOW, THEREFORE, the County of Los Angeles and Subrecipient agree as follows:

SECTION I

INTRODUCTION
§101. Parties to this Agreement
The parties to this Agreement are:

A. County of Los Angeles, a political subdivision of the State of California, having its principal office at Kenneth Hahn Hall of Administration, 500 West Temple Street, Los Angeles, CA 90012; and
B. City of Covina, a public agency, having its principal office at ______________ ______________________________________________________________. §102. Representatives of the Parties and Service of Notices A. The representatives of the respective parties who are authorized to administer this Agreement and to whom formal notices, demands and communications must be given are as follows:

1. The representative of the County of Los Angeles is, unless otherwise stated in this Agreement:

Craig Hirakawa
County of Los Angeles - Chief Executive Office
500 West Temple Street, Room 796
Los Angeles, CA 90012
Phone: (213) 974-1127
[email protected]
Ana Vazquez
County of Los Angeles - Chief Executive Office
500 West Temple Street, Room 796
Los Angeles, CA 90012
Phone: (213) 974-1178
[email protected]

2. The representative of Subrecipient is:

Name and Title:

Organizational UEI #:

Address:

City/State/Zip:

Phone:

Email:

With a copy to:

Name and Title:

Organization:

Address:

City/State/Zip:

Phone:

Email:

B. Formal notices, demands and communications to be given hereunder by either party must be made in writing and may be affected by personal delivery, regular U.S. Postal mail service and/or e-mail. In the event of personal delivery or email, the message will be deemed communicated upon receipt by the County of Los Angeles. In the event of mail service, the message will be deemed communicated as of the date of mailing.

C. If the name and/or title of the person designated to receive the notices, demands or communications or the address of such person is changed, written notice must be given, in accord with this section, within five (5) business days of said change.
§103. Independent Party
Subrecipient is acting hereunder as an independent party, and not as an agent or employee of the County of Los Angeles. An employee of Subrecipient is not, and

will not be deemed, an employee of the County of Los Angeles by virtue of this Agreement, and Subrecipient must so inform each employee organization and each employee who is hired or retained under this Agreement. Subrecipient must not represent or otherwise hold out itself or any of its directors, officers, partners, employees, or agents to be an agent or employee of the County of Los Angeles by virtue of this Agreement.
§104. Conditions Precedent to Execution of This Agreement Subrecipient must provide the following signed documents to the County of Los Angeles, unless otherwise exempted:

A. Certification and Disclosure Regarding Lobbying, attached hereto as Exhibit A and made a part hereof, in accordance with §411.A.14 of this Agreement.

Subrecipient must also file a Disclosure Form at the end of each calendar quarter in which there occurs any event requiring disclosure or which materially affects the accuracy of the information contained in any Disclosure Form previously filed by Subrecipient.

B. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions, attached hereto as Exhibit B and made a part hereof, as required by Executive Order 12549 in accordance with §411.A.12 of this Agreement.

C. Certification Regarding Drug-Free Workplace, attached hereto as Exhibit C and made a part hereof, in accordance with §411.A.13 of this Agreement.

D. Certification of Grant Assurances, attached hereto as Exhibit D and made a part hereof, in accordance with §411.C of this Agreement.

SECTION II

TERM AND SERVICES TO BE PROVIDED
§201. Performance Period
The performance period of this Agreement is from September 1, 2024 to February 28, 2027, unless the County of Los Angeles, with Cal OES approval, provides written notification to the Subrecipient that the performance period has been extended, in which case the performance period will be so extended by such written notification, as provided in §503, below.

§202. Use of Grant Funds
A. Subrecipient and the County of Los Angeles have previously completed a mutually approved budget/expenditure plan, hereinafter "Budget," for the 2024 SHSP, which has been approved by Cal OES. This information is contained in a copy of the Final Grant Award Letter and Project Worksheet, attached hereto as Exhibit E.

Any request by Subrecipient to modify the Budget must be made in writing with the appropriate justification and submitted to CEO for approval. If during the County of Los Angeles review process, additional information or documentation is required, the Subrecipient will have ten (10) business days to comply with the request. If the Subrecipient does not comply with the request, CEO will issue written notification indicating that the requested modification will not be processed. Modifications must be approved in writing by the County of Los Angeles and Cal OES during the term of this Agreement. Upon approval, all other terms of this Agreement will remain in effect.

Subrecipient must utilize grant funds in accordance with all Federal regulations and State Guidelines.

B. Subrecipient agrees that grant funds awarded will be used to supplement existing funds for program activities, and will not supplant (replace) non-Federal funds.

C. Subrecipient must review the Federal Debarment Listing at https://www.sam.gov/search/ prior to the purchase of equipment or services to ensure the intended vendor is not listed and also maintain documentation that the list was verified.

D. Prior to the purchase of equipment or services utilizing a sole source contract or the receipt of single bid response of $250,000.00 or more, justification must be presented to CEO, who upon review will request approval from Cal OES. Such approval in writing must be obtained prior to the commitment of funds.

E. Subrecipient must provide any certifications or reports requested by the County of Los Angeles to the CEO indicating Subrecipient's performance under this Agreement, including progress on meeting program goals. Reports must be in the form requested by the County of Los Angeles, and must be provided by the fifteenth (15th) of the following month. Subrecipient is required to complete any survey requests requested by the County of Los Angeles. Subrecipient must also submit completed Project Claims for reimbursement immediately or a minimum on a quarterly basis, and no later than the date stated in §201, above.

F. Subrecipient must provide an electronic copy of their Annual Single Audit Report, as required by Title 2 Code of Federal Regulations (C.F.R) Part 200, to the County of Los Angeles within 30 calendar days after receipt of the auditor's

report(s). In the event the Subrecipient does not meet the Single Audit Threshold expenditure amount in a fiscal year, the Subrecipient must provide the County of Los Angeles a copy of a letter sent to State Controller's Office noting the Single Audit Threshold was not met, and its exempt status within nine months after the end of the Subrecipient's fiscal year, unless otherwise approved by the County of Los Angeles.

G. Subrecipient may be monitored by the County of Los Angeles on an annual basis to ensure compliance with Cal OES grant program requirements. The County of Los Angeles anticipates that said monitoring may include, at a minimum, one onsite visit during the term of this Agreement. Monitoring will utilize a Review Instrument (sample attached hereto as Exhibit H, and subject to periodic revisions) to evaluate compliance.

H. Subrecipient must provide Corrective Action Plan(s) to CEO within thirty (30) days of any audit finding.

I. Subrecipient use of the Los Angeles Regional Interoperable Communication System's Motorola Solutions, Incorporated Land Mobile Radio System Contract to purchase equipment is unallowable unless the Subrecipient can clearly demonstrate to CEO it meets one of the four federal exceptions to necessitate a noncompetitive procurement before issuance of any contract, amendment, or purchase order.

J. Subrecipient shall not use grant funds to purchase, extend, or renew any Telecommunications and Video Surveillance services and equipment as substantial or essential component of any system, or as critical technology as part of any system which the Secretary of Defense, in consultation with Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an owned, controlled by, or connected to the People's Republic of China such as and not limited to Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities); or Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).

K. Any equipment acquired pursuant to this Agreement must be authorized in the G&T Authorized Equipment List (AEL) available online at https://www.fema.gov/authorized-equipment-list and the Funding Guidelines of the 2024 SHSP Notice of Funding Opportunity, incorporated by reference, and attached hereto as Exhibit F. Subrecipient must provide the CEO a copy of its most current procurement guidelines and follow its own procurement requirements as long as they meet or exceed the minimum Federal requirements and any added Cal OES requirements. Federal procurement requirements for the 2024 SHSP can be found at Title 2 CFR Part 200.313.

Any equipment acquired or obtained with Grant Funds:

1. Will be made available under the California Disaster and Civil Defense Master Mutual Aid Agreement in consultation with representatives of the various fire, emergency medical, hazardous materials response services, and law enforcement agencies within the jurisdiction of the applicant;

2. Will be consistent with needs as identified in the State Homeland Security Strategy and will be deployed in conformance with that plan;

3. Will be made available pursuant to applicable terms of the California Disaster and Civil Defense Master Mutual Aid Agreement and deployed with personnel trained in the use of such equipment in a manner consistent with the California Law Enforcement Mutual Aid Plan or the California Fire Services and Rescue Mutual Aid Plan.

L. Equipment acquired pursuant to this Agreement will be subject to the requirements of Title 2 CFR Part 200.313. For the purposes of this subsection, "Equipment" is defined as tangible nonexpendable property, having a useful life of more than one year which costs $5,000.00 or more per unit. Items costing less than $5,000.00, but acquired under the "Equipment" category of the Grant must also be listed on any required Equipment Listing.

1. Equipment must be used by Subrecipient in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed for the original program or project, the Equipment may be used in other activities currently or previously supported by a Federal agency.

2. Subrecipient must make Equipment available for use on other like projects or programs currently or previously supported by the Federal Government, providing such use will not interfere with the work on the projects or program for which it was originally acquired. First preference for other use must be given to other programs or projects supported by the awarding agency.

3. An Equipment Listing must be maintained listing each item of Equipment acquired with SHSP funds. The Equipment Listing must be kept up to date at all times. Any changes must be recorded in the Listing within ten (10) business days and the updated Listing is to be forwarded to the County of Los Angeles Auditor-Controller (A-C) Shared Services Division. The Equipment Property Records must be maintained that include: (a) a description of the property, (b) a serial number or other identification number, (c) the source of property, (d) who holds title, (e) the acquisition date, (f) and cost of the property, (g) percentage of Federal participation in the cost of the property, (h) the location, (i) use and condition of the

property, (j) and any ultimate disposition data including the date of disposal and sale price of the property. Records must be retained by the subrecipient pursuant to Title 2, Part 200.313 (d) (1) of the CFR.

4. All Equipment obtained under this Agreement must have an appropriate identification decal affixed to it, and, when practical, must be affixed where it is readily visible.

5. A physical inventory of the Equipment must be taken by the Subrecipient and the results reconciled with the Equipment Listing at least once every two years or prior to any site visit by State or Federal auditors or County of Los Angeles monitors. The Subrecipient is required to have on file a letter certifying as to the accuracy of the Equipment Listing in the frequency as above, and provide to the CEO when requested.

M. Any Planning paid pursuant to this Agreement must conform to the guidelines as listed in Exhibit F or subsequent grant year programs.

N. Any Organization activities paid pursuant to this Agreement must conform to the guidelines as listed in Exhibit F.

O. Any Training paid pursuant to this Agreement must conform to the guidelines as listed in Exhibit F, and must be first submitted to CEO and then pre-authorized by Cal OES. A catalog of federally approved and sponsored training courses is available at https://www.firstrespondertraining.gov/frts/.

P. Any Exercise paid pursuant to this Agreement must conform to the guidelines as listed in Exhibit F. Detailed Homeland Security Exercise and Evaluation Program Guidance is available at https://www.fema.gov/hseep.

Q. Any Personnel activities paid pursuant to this Agreement must conform to the guidelines as listed in Exhibit F.

R. Subrecipient must provide to CEO a spending plan detailing the required steps and timeframes required to complete the approved projects within the grant timeframe. Subrecipient must submit the spending plan to CEO prior to final execution of this Agreement.

S. Pursuant to this Agreement, indirect costs are not reimbursable.

SECTION Ill

PAYMENT
§301. Payment of Grant Funds and Method of Payment
A. The County of Los Angeles will reimburse Subrecipient up to the maximum grant amount of $60,000 as expenditures are incurred and paid by Subrecipient and all documentation is reviewed and approved by County of Los Angeles. All expenditures must be for the purchase of equipment, exercises, training, organization, and planning as described in Section II of this Agreement. The grant amount represents the amount allocated to Subrecipient in the 2024 SHSP Grant Award Letter from Cal OES.

B. Subrecipient must submit reimbursement requests to the County of Los Angeles A-C Shared Services Division requesting payment as soon as a Project is completed and expenses are incurred and paid with the required supporting documentation; submission can be sent immediately or at a minimum on a quarterly basis, and no later than the date stated in §201, above. Each reimbursement request must be accompanied by the Reimbursement Form (sample attached hereto as Exhibit G, and subject to periodic revisions). All appropriate back-up documentation must be attached to the reimbursement form, including the method of procurement, bid documentation, purchase orders, invoices, report of goods received, and proof of payment.

For Training reimbursements, Subrecipient must include a copy of the class roster verifying training attendees, proof that prior approval was obtained from Cal OES and that a Cal OES Feedback number has been assigned to the course, and timesheets and payroll registers for all training attendees.

For Exercise reimbursements, Subrecipient must enter the After Action Report (AAR) and Improvement Plan on the State Office of Domestic Preparedness secure portal within sixty (60) days following completion of the exercise and submit proof of prior State approval of the AAR with the reimbursement request.

For Planning reimbursements, Subrecipient must include a copy of the final tangible product.

C. The County of Los Angeles may, at its discretion, reallocate unexpended grant funds to another subrecipient. Said reallocation may occur upon approval by the County of Los Angeles of a Subrecipient reimbursement submission, inquiry from the County of Los Angeles to the Subrecipient regarding fund utilization, or by written notification from the Subrecipient to the County of Los Angeles that a portion of the grant funds identified in

§301.A., above, will not be utilized. As provided in §503, below, any increase or decrease in the grant amount specified in §301.A., above, may be effectuated by a written notification by the County of Los Angeles to the Subrecipient.

D. Payment of reimbursement request will be withheld by the County of Los Angeles until the County of Los Angeles has determined that Subrecipient has turned in all supporting documentation and completed the requirements of this Agreement.

E. It is understood that the County of Los Angeles makes no commitment to fund this Agreement beyond the terms set forth herein.

F. Funding for all periods of this Agreement is subject to continuing Federal appropriation of grant funds for this program. In the event of a loss or reduction of Federal appropriation of grant funds for this program, the Agreement may be terminated, or appropriately amended, immediately upon notice to Subrecipient of such loss or reduction of Federal grant funds.

County of Los Angeles will make a good-faith effort to notify Subrecipient, in writing, of such non-appropriation at the earliest time.

SECTION IV

STANDARD PROVISIONS
§401. Construction of Provisions and Titles Herein
All titles or subtitles appearing herein have been inserted for convenience and do not, and will not be deemed to, affect the meaning or construction of any of the terms or provisions hereof. The language of this Agreement will be construed according to its fair meaning and not strictly for or against either party. §402. Applicable Law, Interpretation and Enforcement
Each party's performance hereunder must comply with all applicable laws of the United States of America, the State of California, and the County of Los Angeles.

This Agreement will be enforced and interpreted, as applicable, under the laws of the United States of America, the State of California and the County of Los Angeles.

If any part, term or provision of this Agreement is held void, illegal, unenforceable, or in conflict with any law of a Federal, State or Local Government having jurisdiction over this Agreement, the validity of the remainder of the Agreement will not be affected thereby.

Applicable Federal or State requirements that are more restrictive will be followed.
§403. Integrated Agreement
This Agreement sets forth all of the rights and duties of the parties with respect to the subject matter hereof, and replaces any and all previous agreements or understandings, whether written or oral, relating thereto. This Agreement may be amended only as provided for herein.
§404. Breach
If any party fails to perform, in whole or in part, any promise, covenant, or agreement set forth herein, or should any representation made by it be untrue, any aggrieved party may avail itself of all rights and remedies, at law or equity, in the courts of law. Said rights and remedies are cumulative of those provided for herein except that in all events, no party may recover more than once, suffer a penalty or forfeiture, or be unjustly compensated.
§405. Prohibition Against Assignment or Delegation
Subrecipient may not do any of the following, unless it has first obtained the written permission of the County of Los Angeles:

A. Assign or otherwise alienate any of its rights hereunder, including the right to payment; or
B. Delegate, subcontract, or otherwise transfer any of its duties hereunder. §406. Permits
Subrecipient and its officers, agents and employees must obtain and maintain all permits and licenses necessary for Subrecipient's performance hereunder and must pay any fees required therefor. Subrecipient further certifies that it will immediately notify the County of Los Angeles of any suspension, termination, lapse, non-renewal or restriction of licenses, certificates, or other documents. §407. Nondiscrimination and Affirmative Action
Subrecipient must comply with the applicable nondiscrimination and affirmative action provisions of the laws of the United States of America, the State of California, and the County of Los Angeles. In performing this Agreement, Subrecipient must not discriminate in its employment practices against any employee or applicant for employment because of such person's race, religion,

national origin, ancestry, sex, sexual orientation, age, physical handicap, mental disability, marital status, domestic partner status or medical condition.

Subrecipient must comply with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375, and as supplemented in Department of Labor regulations (41 CFR Part 60).

If required, Subrecipient must submit an Equal Employment Opportunity Plan to the Department of Justice Office of Civil Rights in accordance with guidelines listed at https://www.justice.gov/crt.

Any subcontract entered into by the Subrecipient relating to this Agreement, to the extent allowed hereunder, will be subject to the provisions of this §407 of this Agreement.
§408. Indemnification
Each of the parties to this Agreement is a public entity. This indemnity provision is written in contemplation of the provisions of Section 895.2 of the Government Code of the State of California, which impose certain tort liability jointly upon public entities, solely by reason of such entities being parties to an agreement, and the parties agree that this indemnity provision will apply and will be enforceable regardless of whether Section 895 et seq. is deemed to apply to this Agreement. The parties hereto, as between themselves, consistent with the authorization contained in Government Code Sections 895.4 and 895.6 agree to each assume the full liability imposed upon it or upon any of its officers, agents, or employees by law, for injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement, to the same extent that such liability would be imposed in the absence of Government Code Section 895.2.

To achieve the above-stated purpose, each party agrees to indemnify and hold harmless the other party for any liability arising out of its own negligent acts or omissions in the performance of this Agreement (i.e., the Subrecipient agrees to indemnify and hold harmless the County of Los Angeles for liability arising out of the Subrecipient's negligent or wrongful acts or omissions and the County of Los Angeles agrees to indemnify and hold harmless the Subrecipient for liability arising out of the County of Los Angeles' negligent or wrongful acts or omissions). Each party further agrees to indemnify and hold harmless the other party for liability that is imposed on the other party solely by virtue of Government Code Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if fully set forth herein. Subrecipient certifies that it has adequate self-insured retention of funds to meet any obligation arising from this Agreement.

§409. Conflict of Interest
A. The Subrecipient covenants that none of its directors, officers, employees, or agents may participate in selecting, or administrating, any subcontract supported (in whole or in part) by Federal funds where such person is a director, officer, employee or agent of the subcontractor; or where the selection of subcontractors is or has the appearance of being motivated by a desire for personal gain for themselves or others such as family business, etc.; or where such person knows or should have known that:

1. A member of such person's immediate family, or domestic partner or organization has a financial interest in the subcontract;

2. The subcontractor is someone with whom such person has or is negotiating any prospective employment; or

3. The participation of such person would be prohibited by the California Political Reform Act, California Government Code §87100 et seq. if such person were a public officer, because such person would have a "financial or other interest" in the subcontract.

B. Definitions:

1. The term "immediate family" means domestic partner and/or those persons related by blood or marriage, such as husband, wife, father, mother, brother, sister, son, daughter, father in law, mother in law, brother in law, sister in law, son in law, daughter in law.

2. The term "financial or other interest" means:
a. Any direct or indirect financial interest in the specific contract, including but not limited to, a commission or fee, a share of the proceeds, prospect of a promotion or of future employment, a profit, or any other form of financial reward.
b. Any of the following interests in the subcontractor ownership:
partnership interest or other beneficial interest of five percent or more; ownership of five percent or more of the stock; employment in a managerial capacity; or membership on the board of directors or governing body.

C. The Subrecipient further covenants that no officer, director, employee, or agent may solicit or accept gratuities, favors, or anything of monetary value from any actual or potential subcontractor, supplier, a party to a sub agreement, (or persons who are otherwise in a position to benefit from the actions of any officer, employee, or agent).

D. The Subrecipient may not subcontract with a former director, officer, or employee within a one-year period following the termination of the relationship between said person and the Subrecipient.

E. Prior to obtaining the County of Los Angeles' approval of any subcontract, the Subrecipient must disclose to the County of Los Angeles any relationship, financial or otherwise, direct or indirect, of the Subrecipient or any of its officers, directors or employees or their immediate family with the proposed subcontractor and its officers, directors or employees.

F. For further clarification of the meaning of any of the terms used herein, the parties agree that references are made to the guidelines, rules, and laws of the County of Los Angeles, State of California, and Federal regulations regarding conflict of interest.

G. The Subrecipient warrants that it has not paid or given and will not pay or give to any third person any money or other consideration for obtaining this Agreement.

H. The Subrecipient covenants that no member, officer or employee of Subrecipient may have interest, direct or indirect, in any contract or subcontract or the proceeds thereof for work to be performed in connection with this project during his/her tenure as such employee, member or officer or for one year thereafter.

I. The Subrecipient must incorporate the foregoing subsections of this Section into every agreement that it enters into in connection with this grant and must substitute the term "subcontractor" for the term "Subrecipient" and "sub subcontractor" for "Subcontractor".
§410. Restriction on Disclosures
Any reports, analyses, studies, drawings, information, or data generated as a result of this Agreement are to be governed by the California Public Records Act (California Government Code Sec. 6250 et seq.).
§411. Statutes and Regulations Applicable To All Grant Contracts A. Subrecipient must comply with all applicable requirements of State, Federal, and County of Los Angeles laws, executive orders, regulations, program and administrative requirements, policies and any other requirements governing this Agreement. Subrecipient must comply with applicable State and Federal laws and regulations pertaining to labor, wages, hours, and other conditions of employment. Subrecipient must comply with new, amended, or revised laws, regulations, and/or procedures that apply to the performance of this Agreement.

These requirements include, but are not limited to:

1. CFR
Subrecipient must comply with Title 2 CFR Part 200.

2. Single Audit Act
Since Federal funds are used in the performance of this Agreement, Subrecipient must, as applicable, adhere to the rules and regulations of the Single Audit Act (31 USC Sec. 7501 et seq.), 2 CFR Part 200 and any administrative regulation or field memos implementing the Act.

3. Americans with Disabilities Act
Subrecipient hereby certifies that, as applicable, it will comply with the Americans with Disabilities Act 42, USC §§12101 et seq., and its implementing regulations. Subrecipient will provide reasonable accommodations to allow qualified individuals with disabilities to have access to and to participate in its programs, services and activities in accordance with the provisions of the Americans with Disabilities Act. Subrecipient will not discriminate against persons with disabilities nor against persons due to their relationship to or association with a person with a disability. Any subcontract entered into by Subrecipient, relating to this Agreement, to the extent allowed hereunder, will be subject to the provisions of this paragraph.

4. Political and Sectarian Activity Prohibited
None of the funds, materials, property or services provided directly or indirectly under this Agreement may be used for any partisan political activity, or to further the election or defeat of any candidate for public office. Neither may any funds provided under this Agreement be used for any purpose designed to support or defeat any pending legislation or administrative regulation. None of the funds provided pursuant to this Agreement may be used for any sectarian purpose or to support or benefit any sectarian activity.

Subrecipient must file a Disclosure Form at the end of each calendar quarter in which there occurs any event requiring disclosure or which materially affects the accuracy of any of the information contained in any Disclosure Form previously filed by Subrecipient. Subrecipient must require that the language of this Certification be included in the award documents for all subawards at all tiers and that all subcontractors certify and disclose accordingly.

5. Records Inspection
At any time during normal business hours and as often as either the County of Los Angeles, the U.S. Comptroller General or the Auditor General of the State of California may deem necessary, Subrecipient must make available for examination all of its records with respect to all matters covered by this Agreement. The County of Los Angeles, the U.S. Comptroller General and the Auditor General of the State of California have the authority to audit, examine and make excerpts or transcripts from records, including all Subrecipient's method of procurement, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement.

Subrecipient agrees to provide any reports requested by the County of Los Angeles regarding performance of this Agreement.

6. Records Maintenance
Records, in their original form, must be maintained in accordance with requirements prescribed by the County of Los Angeles with respect to all matters specified in this Agreement. Original forms are to be maintained on file for all documents specified in this Agreement. Such records must be retained for a period five (5) years after termination of this Agreement and after final disposition of all pending matters. "Pending matters" include, but are not limited to, an audit, litigation or other actions involving records. The County of Los Angeles may, at its discretion, take possession of, retain and audit said records. Records, in their original form pertaining to matters covered by this Agreement, must at all times be retained within the County of Los Angeles unless authorization to remove them is granted in writing by the County of Los Angeles.

7. Subcontracts and Procurement
Subrecipient must, as applicable, comply with the Federal, State and County of Los Angeles standards in the award of any subcontracts. For purposes of this Agreement, subcontracts include but are not limited to purchase agreements, rental or lease agreements, third party agreements, consultant service contracts and construction subcontracts.

Subrecipient must, as applicable, ensure that the terms of this Agreement with the County of Los Angeles are incorporated into all Subcontractor agreements. The Subrecipient must submit all Subcontractor agreements to the County of Los Angeles for review prior to the release of any funds to the Subcontractor. The Subrecipient must withhold funds to any Subcontractor agency that fails to comply with the terms and conditions of this Agreement and their respective Subcontractor agreement.

8. Labor
Subrecipient must, as applicable, comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed requirements for merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System Personnel Administration (5 CFR 900, Subpart F).

Subrecipient must, as applicable, comply with the provisions of the DavisBacon Act (40 U.S.C. §§276a to 276a-7); the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874); the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally-assisted construction subagreements; and the Hatch Act (5 USC §§1501-1508 and 7324-7328).

Subrecipient must, as applicable, comply with the Federal Fair Labor Standards Act (29 U.S.C. §201) regarding wages and hours of employment.

None of the funds may be used to promote or deter union/labor organizing activities. CA Gov't Code Sec. 16645 et seq.

9. Civil Rights
Subrecipient must, as applicable, comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352), which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681- 1683, and 1685- 1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of disabilities; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290 dd-3 and 290 ee 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to non-discrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; 0) the requirements of any other nondiscrimination statute(s) that may apply to the application; and (k) P.L. 93-348 regarding the protection of human

subjects involved in research, development, and related activities supported by this award of assistance.

10.Environmental
Subrecipient must, as applicable, comply, or has already complied, with the requirements of Titles II and Ill of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646), which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally-assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases.

Subrecipient must, as applicable, comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of Federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93- 523); (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93205); and (i) Flood Disaster Protection Act of 1973 §102(a) (P.L. 93-234).

Subrecipient must, as applicable, comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

Subrecipient must, as applicable, comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.), which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

Subrecipient must, as applicable, comply with the Federal Water Pollution Control Act (33 U.S.C. §1251 et seq.), which restores and maintains the chemical, physical and biological integrity of the Nation's waters.

Subrecipient must, as applicable, ensure that the facilities under its ownership, lease or supervision that are utilized in the accomplishment of this project are not listed in the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the Federal Granter agency of the receipt of any communication from the Director of the EPA Office of Federal

Activities indicating that a facility to be used in the project is under consideration for listing by the EPA.

By signing this Agreement, Subrecipient warrants and represents that it will, as applicable, comply with the California Environmental Quality Act (CEQA), Public Resources Code §21000 et seq.

Subrecipient must, as applicable, comply with the Energy Policy and Conservation Act (P.L. 94-163, 89 Stat. 871).

Subrecipient must, as applicable, comply with the provision of the Coastal Barrier Resources Act (P.L. 97-348) dated October 19, 1982 (16 U.S.C. 3501 et. seq.) which prohibits the expenditure of most new Federal funds within the units of the Coastal Barrier Resources System.

11.Preservation
Subrecipient must, as applicable, comply with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.).

12.Suspension, Debarment, Ineligibility and Voluntary Exclusion Subrecipient must, as applicable, comply with Title 2 CFR Part §3000, regarding Suspension and Debarment, and Subrecipient must submit a Certification Regarding Debarment, attached hereto as Exhibit B, required by Executive Order 12549 and any amendment thereto. Said Certification must be submitted to the County of Los Angeles concurrent with the execution of this Agreement and must certify that neither Subrecipient nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any Federal department head or agency. Subrecipient must require that the language of this Certification be included in the award documents for all sub-award at all tiers and that all subcontractors certify accordingly.

13.Drug-Free Workplace
Subrecipient must, as applicable, comply with the federal Drug-Free Workplace Act of 1988, 41 USC §701, Title 44 Code of Federal Regulations (CFR) Part §17; the California Drug-Free Workplace Act of 1990, CA Gov't Code §§8350-8357, and Subrecipient must complete the Certification Regarding Drug-Free Workplace Requirements, attached hereto as Exhibit C, and incorporated herein by reference. Subrecipient must require that the language of this Certification be included in the award documents for all subaward at all tiers and that all subcontractors certify accordingly.

14.Lobbying Activities
Subrecipient must, as applicable, comply with 31 U.S.C.1352 and complete the Disclosure of Lobbying Activities, (OMB 0038-0046), attached hereto as Exhibit A, and incorporated herein by reference.

15.Miscellaneous
Subrecipient must, as applicable, comply with the Laboratory Animal Welfare Act of 1966, as amended (P.L. 89-544, 7 USC §§2131 et seq.).

B. Statutes and Regulations Applicable To This Particular Grant Agreement Subrecipient must comply with all applicable requirements of State and Federal laws, executive orders, regulations, program and administrative requirements, policies and any other requirements governing this particular grant program.

Subrecipient must, as applicable, comply with new, amended, or revised laws, regulations, and/or procedures that apply to the performance of this Agreement.

These requirements include, but are not limited to:

Title 2 CFR Part 200; EO 12372; U.S. Department of Homeland Security, Office of State and Local Government Coordination and Preparedness, Office for Domestic Preparedness, ODP WMD Training Course Catalogue; and DOJ Office for Civil Rights.

Standardized Emergency Management System (SEMS) requirements as stated in the California Emergency Services Act, Government Code Chapter 7 of Division 1 of Title 2, §8607.1(e) and CCR Title 19, §§2445-2448.

Provisions of Title 2, 6, 28, 44 CFR applicable to grants and cooperative agreements, including Part 18, Administrative Review Procedures; Part 20, Criminal Justice Information Systems; Part 22, Confidentiality of Identifiable Research and Statistical Information; Part 23, Criminal Intelligence Systems Operating Policies; Part 30, Intergovernmental Review of Department of Justice Programs and Activities; Part 35, Nondiscrimination on the Basis of Disability in State and Local Government Services; Part 38, Equal Treatment of Faith-based Organizations; Part 42, Nondiscrimination/Equal Employment Opportunities Policies and Procedures; Part 61, Procedures for Implementing the National Environmental Policy Act; Part 63, Floodplain Management and Wetland Protection Procedures; Part 64, Floodplain Management and Wetland Protection Procedures; Federal laws or regulations applicable to Federal Assistance Programs; Part 69, New Restrictions on Lobbying; Part 70, Uniform Administrative Requirements for Grants and Cooperative Agreements (including sub-awards) with Institutions of Higher Learning, Hospitals and other Non-Profit

Organizations; and Part 83, Government-Wide Requirements for a Drug Free Workplace (grants).

Nondiscrimination requirements of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, 42 USC 3789(d), or the Juvenile Justice and Delinquency Prevention Act, or the Victims of Crime Act, as appropriate; the provisions of the current edition of the Office of Justice Programs Financial and Administrative Guide for Grants, M7100.1, and all other applicable Federal laws, orders, circulars, or regulations.

1. Travel Expenses
Subrecipient, as provided herein, will be compensated for Subrecipient's reasonable travel expenses incurred in the performance of this Agreement, to include travel and per diem, unless otherwise expressed. Subrecipient's total travel for in-State and/or out-of-State and per diem costs must be included in the contract budget(s). All travel, including out- of-State travel, that is not included in the budget(s) will not be reimbursed without prior written authorization from the County of Los Angeles.

Subrecipient's administrative-related travel and per diem reimbursement costs will not be reimbursed. For programmatic-related travel costs, Subrecipient's reimbursement rates may not exceed the amounts established under the grant.

C. Compliance With Grant Requirements
To obtain the grant funds, the State required an authorized representative of the County of Los Angeles to sign certain promises regarding the way the grant funds would be spent. These requirements are included in Exhibit F and in the State's "Grant Assurances". By signing these Grant Assurances and accepting Exhibit F, the County of Los Angeles became liable to the State for any funds that are used in violation of the grant requirements. The State's Grant Assurances are incorporated into this Agreement through Exhibit D. Subrecipient will be liable to the Granter for any funds the State determines the Subrecipient used in violation of these Grant Assurances.

Pursuant to this Agreement, Subrecipient shall execute the 2024 Certification of Grant Assurances in Exhibit D, accepting and agreeing to abide by all provisions, assurances, and requirements therein. Subrecipient agrees to indemnify and hold harmless the County of Los Angeles for any sums the State or Federal government determines Subrecipient used in violation of the Grant Assurances.

To the extent Exhibit D conflicts with language or provisions contained in this Agreement, or contains more restrictive requirements under Federal and State law, Exhibit D shall control.

D. Noncompliance With Grant Requirements
Subrecipient understands that failure to comply with any of the above assurances and requirements, including Exhibit D, may result in suspension, termination or reduction of grant funds, and repayment by the Subrecipient to the County of Los Angeles of any unauthorized expenditures.
§412. Federal, State and Local Taxes
Federal, State and local taxes are the responsibility of the Subrecipient as an independent party and not of the County of Los Angeles and must be paid prior to requesting reimbursement. However, these taxes are an allowable expense under the grant program.
§413. Inventions, Patents and Copyrights
A. Reporting Procedure for Inventions
If any project produces any invention or discovery ("Invention") patentable or otherwise under Title 35 of the U.S. Code, including, without limitation, processes and business methods made in the course of work under this Agreement, the Subrecipient must report the fact and disclose the Invention promptly and fully to the County of Los Angeles. The County of Los Angeles will report the fact and disclose the Invention to the State. Unless there is a prior agreement between the County of Los Angeles and the State, the State will determine whether to seek protection on the Invention. The State will determine how the rights in the Invention, including rights under any patent issued thereon, will be allocated and administered in order to protect the public interest consistent with the policy ("Policy") embodied in the Federal Acquisition Regulations System, which is based on Ch. 18 of Title 35 U.S.C. Sections 200 et seq. (Pub. L. 95-517, Pub. L. 98-620, Title 37 CFR Part 401); Presidential Memorandum on Government Patent Policy to the Heads of the Executive Departments and Agencies, dated 2/18/1983); and Executive Order 12591, 4/10/87, 52 FR 13414, Title 3 CFR, 1987 Comp., p. 220 (as amended by Executive Order 12618, 12/22/87, 52 FR 48661, Title 3 CFR, 1987 Comp., p. 262). Subrecipient hereby agrees to be bound by the Policy, and will contractually require its personnel to be bound by the Policy.

B. Rights to Use Inventions
As applicable, County of Los Angeles will have an unencumbered right, and a non-exclusive, irrevocable, royalty-free license to use, manufacture, improve upon, and allow others to do so for all government purposes, any Invention developed under this Agreement.

C. Copyright Policy

1. Unless otherwise provided by the State or the terms of this Agreement, when copyrightable material ("Material") is developed under this Agreement, the County of Los Angeles, at its discretion, may copyright the Material. If the County of Los Angeles declines to copyright the Material, the County of Los Angeles will have an unencumbered right, and a non-exclusive, irrevocable, royalty-free license, to use, manufacture, improve upon, and allow others to do so for all government purposes, any Material developed under this Agreement.

2. The State will have an unencumbered right, and a non-exclusive, irrevocable, royalty-free license, to use, manufacture, improve upon, and allow others to do so for all government purposes, any Material developed under this Agreement or any Copyright purchased under this Agreement.

3. Subrecipient must comply with Title 24 CFR 85.34.

D. Rights to Data
The State and the County of Los Angeles will have unlimited rights or copyright license to any data first produced or delivered under this Agreement. "Unlimited rights" means the right to use, disclose, reproduce, prepare derivative works, distribute copies to the public, and perform and display publicly, or permit others to do so; as required by Title 48 CFR 27.401. Where the data are not first produced under this Agreement or are published copyrighted data with the notice of 17 U.S.C. Section 401 or 402, the State acquires the data under a copyright license as set forth in Title 48 CFR 27.404(f)(2) instead of unlimited rights. (Title 48 CFR 27.404(a)).

E. Obligations Binding on Subcontractors
Subrecipient must require all subcontractors to comply with the obligations of this section by incorporating the terms of this section into all subcontracts. §414. Child Support Assignment Orders
Under the terms of this Agreement, Subrecipient must, as applicable, comply with California Family Code Section 5230 et seq.
§415. Minority, Women, And Other Business Enterprise Outreach Program It is the policy of the County of Los Angeles to provide Minority Business Enterprises, Women Business Enterprises and all other business enterprises an equal opportunity to participate in the performance of all Subrecipient's contracts,

including procurement, construction and personal services. This policy applies to all of the Subrecipient's contractors and sub-contractors. §416. Compliance with Fair Chance Employment Practices
Subrecipient shall comply with fair chance employment hiring practices set forth in California Government Code Section 12952, Employment Discrimination:

Conviction History. Subrecipient's violation of this paragraph of the Agreement may constitute a material breach of the Agreement. In the event of such material breach, County of Los Angeles may, in its sole discretion, terminate the Agreement.
§417. Method of Payment and Required Information
The County of Los Angeles may, at its sole discretion, determine the most appropriate, efficient, secure, and timely form of payment provided under this Agreement. Subrecipient further agrees that the default form of payment shall be Electronic Funds Transfer (EFT) or Direct Deposit, unless an alternative method of payment is deemed appropriate by the A-C.

Subrecipient shall provide the A-C with electronic banking and related information for the Subrecipient and/or any other payee that the Subrecipient designates to receive payment pursuant to this Agreement at
https://directdeposit.lacounty.gov/. Such electronic banking and related information includes, but is not limited to: bank account number and routing number, legal business name, valid taxpayer identification number or TIN, a working e-mail address capable of receiving remittance advices and other payment related correspondence, and any other information that the A-C determines is reasonably necessary to process the payment and comply with all accounting, record keeping, and tax reporting requirements.

Any provision of law, grant, or funding agreement requiring a specific form or method of payment other than EFT or Direct Deposit shall supersede this requirement with respect to those payments. At any time during the duration of this Agreement, the Subrecipient may submit a written request for an exemption to this requirement and must be based on specific legal, business or operational needs and explain why the payment method designated by the A-C is not feasible and an alternative is necessary. The A-C, in consultation with CEO, shall decide whether to approve exemption requests.

SECTION V

DEFAULTS, SUSPENSION, TERMINATION, AND AMENDMENTS
§501. Defaults
Should either party fail for any reason to comply with the contractual obligations of this Agreement within the time specified by this Agreement, the non-breaching party reserves the right to terminate the Agreement, reserving all rights under State and Federal law.
§502. Termination
This Agreement may be terminated, in whole or in part, from time to time, when such action is deemed by the County of Los Angeles, in its sole discretion, to be in its best interest. Termination of work hereunder shall be effected by notice of termination to the Subrecipient specifying the extent to which performance of work is terminated and the date upon which such termination becomes effective.

The date upon which such termination becomes effective shall be no less than ten (10) days after the notice is sent.
§503. Amendments
Except as otherwise provided in this paragraph, any change in the terms of this Agreement, including changes in the services to be performed by Subrecipient, that are agreed to by the Subrecipient and the County of Los Angeles must be incorporated into this Agreement by a written amendment properly signed by persons who are authorized to bind the parties. Notwithstanding the foregoing, any increase or decrease of the grant amount specified in §301.A., above, or any extension of the performance period specified in §201, above, does not require a written amendment, but may be effectuated by a written notification by the County of Los Angeles to the Subrecipient.

SECTION VI

ENTIRE AGREEMENT
§601. Complete Agreement
This Agreement contains the full and complete Agreement between the two parties. Neither verbal agreement nor conversation or other communication with any officer or employee of either party will affect or modify any of the terms and conditions of this Agreement.

§602. Number of Pages and Attachments
This Agreement may be executed utilizing wet, scanned digital, and electronic signatures, each of which is deemed to be an original. This Agreement includes (27) pages and (8) Exhibits which constitute the entire understanding and agreement of the parties.
[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the Subrecipient and the County of Los Angeles have caused this Agreement to be executed by their duly authorized representatives.

COUNTY OF LOS ANGELES
BY
FESIA A. DAVENPORT Date
Chief Executive Officer
BY ______________________________

EDWARD YEN
Executive Officer, Board of Supervisors
BY ______________________________

OSCAR VALDEZ
Auditor-Controller

APPROVED AS TO FORM
DAWYN R. HARRISON
County Counsel
BY
Deputy County Counsel

CITY OF COVINA
BY ___________________________________________________ _________________ City Representative/Title (Signature) (Print Name) Date

APPROVED AS TO FORM
BY ___________________________________________________ _________________ City Attorney (Signature – If Needed) (Print Name) Date ATTEST
BY ___________________________________________________ _________________ City Clerk (Signature – If Needed) (Print Name) Date

EXHIBITS
Exhibit A Certification and Disclosure Regarding Lobbying Exhibit B Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions
Exhibit C Certification Regarding Drug Free Workplace
Exhibit D Certification of Grant Assurances
Exhibit E Final Grant Award Letter and Project Worksheet Exhibit F 2024 Notice of Funding Opportunity & 2024 Cal OES Supplemental to Federal Notice of Funding Opportunity
Exhibit G Reimbursement Form and Instructions
Exhibit H Monitoring Instrument

CERTIFICATION REGARDING

DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION

LOWER TIER COVERED TRANSACTIONS
This certification is required by the regulations Implementing Executive Order 12549, Debarment and Suspension, 24 CFR Part 24 Section 24.510, Participants' responsibilities.
(READ ATTACHED INSTRUCTIONS FOR CERTIFICATION BEFORE

COMPLETING)

1. The prospective recipient of Federal assistance funds certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.

2. Where the prospective recipient of Federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

AGREEMENT NUMBER

CONTRACTOR/BORROWER/AGENCY

NAME AND TITLE OF AUTHORIZED REPRESENTATIVE

SIGNATURE DATE

EXHIBIT B

STATE OF CALIFORNIA

DRUG-FREE WORKPLACE CERTIFICATION
STD. 21
COMPANY/ORGANIZATION NAME:

The contractor or grant recipient named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above-named contractor or recipient will:

1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). 2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b), to inform employees about all of the following:
(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.

3. Provide as required by Government Code Section 8355(c), that every employee who works on the proposed contract or subgrant:
(a) Will receive a copy of the company’s drug-free policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract or subgrant.

CERTIFICATION
I, the official named below, hereby swear that I am duly authorized legally to bind the contractor or Recipient to the above described certification. I am fully aware that this certification, executed on the date and in the county below, is made under penalty of perjury under the laws of the State of California.

OFFICAL’S NAME DATE EXECUTED

EXECUTED IN THE COUNTY OF
CONTRACTOR or RECEIPEINT SIGNATURE
TITLE
FEDERAL I.D. NUMBER

STATEMENT ON THE DRUG-FREE WORKPLACE
To comply with the enactment of Senate Bill 1120, (Chapter 1170, Statutes of 1990), which established the Drug-Free Workplace Act of 1990, the
(your agency)
accordingly provides this statement of compliance.

In order to maintain funding eligibility, state agencies, along with those in receipt of grant and contractual awards, must certify that they provide drug-free workplaces and have issued drug-free workplace statements to their employees [Section 8355(a) of the Government Code]. Consequently, in accordance with this directive, this statement is issued to meet this requirement.

The (your agency), an agency within the State of California has adopted this statement in compliance with legislation which addresses issues to avoid the dangers arising from drug and alcohol abuse in the workplace. These dangers include death and injury to the employee, co-workers, or the public resulting from accidents, dereliction of duty, poor judgment and carelessness. Substance abuse also results in lost productivity, reduced efficiency, and increased absenteeism by the substance abuser and interferes with the job performance of employees who do not use illegal or unauthorized substances. [Section 8355(b)(1)]
California law prohibits the unlawful manufacture, dispensation, possession, or illegal use of a controlled substance. That prohibition extends to all places and includes the worksite of California state employees. [Section 8355(a)]
Employees convicted of a violation of criminal drug statute, when the violation occurred at an employee’s worksite, shall report the conviction to the granting and monitoring State agency upon conviction. [Section 8356(a)(1)(2)]
In the event of the unlawful manufacture, distribution, dispensation, possession or illegal use of a controlled substance at a State worksite, the State may take disciplinary action pursuant to the law and/or require the satisfactory completion of a drug abuse assistance or rehabilitation program. [Section 8355(b)(4)] The Employee Assistance Program (EAP) provides drug problem assessment and referral to appropriate counseling and rehabilitation services. The EAP is available to all agency employees. Procedures exist to ensure the confidentiality of EAP records. Contact your personnel office for further information.

It is the intent of the (your agency) to ensure by execution of this statement of compliance that each employee shall abide by the terms of this drug-free workplace statement. [Section 8355(c)]