Covina City Council
May 17, 2022

City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022

REGULAR MEETING AGENDA
125 E. College Street, Covina, California
Council Chamber of City Hall
Tuesday, May 17, 2022

IMPORTANT NOTICE
This meeting is being conducted in accordance with Assembly Bill 361, regarding the COVID19 pandemic.

Members of the public may view the meeting live on the City’s website at www.covinaca.gov or on local cable television, Spectrum channel 29 and Frontier Channel 42. To view from the website, hover over the Departments & Services tab until the drop-down menu appears and click on City Council Video Library under the City Council header. A live banner will appear at the start of the meeting.

Public Comments: During the meeting, there will be an opportunity for the public to speak.

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

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

Remotely via Zoom: Access the meeting remotely via Zoom with one of the following devices:

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Dial: +1 669 900 6833
Webinar ID: 820 9930 1089
Passcode: 679956
City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022

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Note:

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

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY
JOINT MEETING—CLOSED SESSION
6:30 PM – WILL NOT BE HELD

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY
JOINT MEETING—OPEN SESSION
7:30 PM

CALL TO ORDER

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

PLEDGE OF ALLEGIANCE
Led by Councilmember Marquez

INVOCATION
Given by Covina Police Chaplain David Truax
City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022

PRESENTATIONS
A. National Police Week Proclamation

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

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

CITY MANAGER COMMENTS

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

CC 1. Minutes
Staff Recommendation:

Approve the Minutes of the May 3, 2022, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.
2022 05 03 Minutes CC Draft
CC 2. Minutes
Staff Recommendation:

Approve the Minutes of the March 15, 2022, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority as amended.
2022 03 15 Minutes CC revised 5.2.22
CC 3. Payment of Demands
Staff Recommendation:

Approve Payment of Demands in the amount of $2,406,340.04.

Agenda Report: Payment of Demands APR 15 2022 - APR 28 2022 - Pdf City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022
CC 4. Monthly Investment Report of the Treasurer to the City Council and Successor Agency to the Covina Redevelopment Agency for April 2022
Staff Recommendation:

Receive and File.

Agenda Report - Monthly Investment Report Ended April 30, 2022 - Pdf CC 5. Approve and Make AB 361 Findings for Special Brown Act Requirements for Teleconference Meetings
Staff Recommendation:

Approve and make the following findings so that meetings of the City Council and the City’s Other Legislative Bodies are authorized to meet remotely in accordance with AB 361’s special Brown Act requirements for teleconference meetings: (1) the City Council has reconsidered the circumstances of the COVID-19 state of emergency; and (2) state and local officials continue to recommend measures to promote social distancing.

Agenda Report - AB 361 Findings - Special Brown Act Requirements for Teleconference Mtgs - Pdf
CC 6. Request to Cancel the Regular City Council Meeting of June 7, 2022 Staff Recommendation:

That City Council consider canceling the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority regular scheduled Joint Meeting of June 7, 2022; and direct the City Clerk's Office to post the required notice of cancelation.

Agenda Report - Cancel June 7, 2022, City Council Meeting - Pdf CC 7. Ordinance 22-06 Approving Zoning Code Amendment (ZCA) 22-002 Amending Chapter 17.69 (“Accessory Dwelling Units”) of Title 17 (Zoning) of the Covina Municipal Code Related to Accessory Dwelling Units; and Find the Proposed Zoning Code Amendment to be Exempt from the Requirements of the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15282(h) - Second Reading and Adoption
Staff Recommendation:

Adopt on second reading Ordinance 22-06 entitled, “An Ordinance of the City of Covina, California, amending various sections of the zoning code (Title 17 of the Covina Municipal Code) regarding accessory dwelling units and junior accessory dwelling units, and making a determination of exemption under the California Environmental Quality Act (“CEQA”).

Agenda Report - Ordinance 22-06 ZCA 22-002 ADUs - Second Reading & Adoption - Pdf
CC 8. Proposed Solid Waste Franchise Amendments Related to State Recycling Mandate (SB 1383)
City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022
Staff Recommendation:

1. Approve Amendment No. 2 to the Amended and Restated Exclusive Franchise Agreement for Solid Waste Collection Services to comply with Statemandated organics recycling requirements (Senate Bill 1383) and to adopt other proposed changes to the existing franchise agreement;

2. Adopt Resolution CC 2022-51 approving Amendment No. 2 to the Franchise Agreement with Arakelian dba Athens Services and authorizing an increase in the maximum permitted solid waste and recycling collection service rates charged by Athens for solid waste collection services; and

3. Authorize the City Manager to execute the amendment to the franchise agreement.

Agenda Report - Amendment No. 2 to the Franchise Agreement with Arakelian dba Athens Services - Pdf
CC 9. Approval of Fiscal Year 2023 Water Supply Strategy and Authorization to Execute all Requisite Documents
Staff Recommendation:

1. Approve the Fiscal Year 2023 water supply strategy outlined in this report;

2. Authorize the City Manager or his designee to negotiate a temporary lease assignment of Fiscal Years 2022 through 2024 Water Production Rights (equal to 359.69 acre feet per year), or execute a temporary assignment of water rights to assign 359.69 acre feet of FY 2023 Water Production Rights from the City of Covina to the Covina Irrigating Company;

3. Authorize the City to lease up to 500 shares of Covina Irrigating Company stock for Fiscal Year 2023 in an amount not-to-exceed $187,500, and execute an Offer Letter, a Lease Agreement, and an Order for Delivery with interested shareholders; and

4. Authorize the City to participate in the Fiscal Year 2023 Covina Irrigating Company lease pool to the level needed to enable the City to achieve its water supply target.

Agenda Report - Fiscal Year 2023 Water Supply Strategy - Pdf CC 10. Establishment of Fiscal Year 2022-2023 Article XIIIB Appropriation Limit for the City of Covina
Staff Recommendation:

Adopt Resolution CC 2022-52 establishing the Fiscal Year 2022-2023 Article XIIIB Appropriation Limit for the City of Covina.

Agenda Report - Resolution CC 2022-52 FY 2022-23 Gann Appropriation Limit - Pdf
CC 11. First Amendment to the Professional Services Agreement with American Traffic Solutions Inc. (ATS) to Extend Red-Light Photo Enforcement Service Staff Recommendation:

City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022
Authorize the City Manager to execute the First Amendment to the Professional Services Agreement with American Traffic Solutions to extend Red-Light photo enforcement service.

Agenda Report - American Traffic Solutions Inc First Amendment - Pdf CC 12. Approval of a First Amendment to Agreement between the City of Covina and Clifton Larson Allen, LLP
Staff Recommendation:

Authorize City Manager to execute the First Amendment to the Professional Service Agreement with Clifton Larson Allen to provide audit services.

Agenda Report - Clifton Larson Allen LLP First Amendment - Pdf CONTINUED PUBLIC HEARINGS - NONE.

PUBLIC HEARINGS
PH 1. Adoption of the Fiscal Year 2022-23 Budget, Fiscal Year 2023-2027 Capital Improvement Program (CIP) and Fiscal Year 2022-23 CIP Budget Staff Recommendation:

1. Conduct the public hearing and consider all testimony that may be forthcoming;

2. Adopt Resolution CC 2022-53 adopting the City of Covina budget for July 1, 2022 through June 30, 2023;

3. Adopt Resolution SA 2022-01 adopting the operating budget for the City of Covina Successor Agency for July 1, 2022 through June 30, 2023; and

4. Adopt Resolution CC 2022-54 adopting the Fiscal Year 2023-2027 Capital Improvement Program and the Fiscal Year 2022-23 Capital Improvement Program Budget.

Agenda Report - FY 22-23 Budget, FY 23-27 CIP and FY 2022 CIP Budget - Pdf CONTINUED BUSINESS - NONE.

NEW BUSINESS
NB 1. Ordinance 22-07, An Urgency Ordinance Establishing Regulations Pertaining to Two-Unit Residential Developments and Urban Lot Splits in Single Family Residential Zones
Staff Recommendation:

Adopt Ordinance 22-07 entitled, "An Urgency Ordinance of the City of Covina, California, Establishing Regulations Pertaining to Two-Unit Residential Developments and Urban Lot Splits in Single Family Residential Zones and Declaring the Urgency Thereof".

Agenda Report - Urgency Ordinance 22-07 SB 9 - Pdf
City Council/CSA/CPFA/CHA Agenda Tuesday May 17, 2022

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, June 21, 2022 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.

The Covina City Clerk’s Office does hereby declare that the agenda for the Tuesday, May 17, 2022, meeting was posted on the City’s website and near the front entrances of: Covina City Hall, 125 East College Street, Covina, and in accordance with California Government Code Section 54954.2(a).

If you challenge in court any discussion or action taken concerning an item on this agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City’s consideration of the item at the meeting.

MATERIALS RELATED TO AN ITEM ON THIS AGENDA, AND SUBMITTED TO THE CITY COUNCIL AFTER PUBLICATION OF THE AGENDA, ARE AVAILABLE TO THE PUBLIC IN THE CITY CLERK’S OFFICE AT 125 E.

COLLEGE STREET, COVINA.

DRAFT
COUNCIL/CSA/CPFA/CHA MINUTES Page 1 of 7 Tuesday, May 3, 2022 MINUTES OF MAY 3, 2022

REGULAR MEETING OF THE COVINA CITY COUNCIL/SUCCESSOR AGENCY TO

THE COVINA REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY HELD IN THE COUNCIL CHAMBER OF CITY HALL, 125 EAST COLLEGE STREET, COVINA, CALIFORNIA AND

VIRTUALLY VIA ZOOM
This meeting was conducted in accordance with Assembly Bill 361, regarding the COVID-19 pandemic.

CALL TO ORDER/ROLL CALL
Mayor Pro Tem Allen called the Council/Agency/Authority meeting to order at 7:32 p.m. Mayor Pro Tem Allen announced that Mayor Cortez would not be in attendance and that Councilmember Linares would be arriving shortly.

ROLL CALL
Councilmembers Present: John C. King, Victor Linares (arrived at 7:34 p.m.), Jorge A.

Marquez, and Mayor Pro Tem/Vice-Chair Walter Allen, III.

Councilmembers Absent: Mayor/Chair Patricia Cortez.

Elected Members Present: City Treasurer Geoffrey Cobbett.

Elected Members Absent: City Clerk Mary Lou Walczak.

Staff Members Present: City Manager Chris Marcarello, City Attorney Candice K. Lee, Police Chief David Povero, Administrative Services Director Anita Agramonte, Community Development Director Brian Lee, Parks & Recreation/Library Services Director Lisa Evans, Public Works Director Andy Bullington, Deputy City Manager Angel Carrillo, Acting Assistant Fire Chief Carl Flores, and Chief Deputy City Clerk Nicole Alvarez.

PLEDGE OF ALLEGIANCE
Led by Councilmember King

INVOCATION
Given by Covina Police Chaplain David Truax

PRESENTATIONS
A. Small Business Week
ITEM NO. CC 1
DRAFT
COUNCIL/CSA/CPFA/CHA MINUTES Page 2 of 7 Tuesday, May 3, 2022 A proclamation declaring May 1 – 7, 2022, as National Small Business Week was read into record by Mayor Pro Tem Allen and presented to Covina Chamber of Commerce President/CEO Dawn Nelson.

B. National Public Works Week Proclamation
A proclamation declaring May 15 – 21, 2022, as National Public Works Week was read into record by Mayor Pro Tem Allen and presented to Public Works Director Bullington and City Engineer Rafael Fajardo on behalf of the Public Works Department.

C. Municipal Clerk's Week Proclamation
A proclamation declaring May 1 – 7, 2022, as Municipal Clerk’s Week was read into record and presented to Chief Deputy City Clerk Alvarez on behalf of the City Clerk’s Office.

PUBLIC COMMENTS
Sharon Roquemore expressed her concerns regarding public street parking restrictions within the City.

COUNCIL AGENCY AUTHORITY COMMENTS
Councilmember King commented on the election season and engaging with the community.

Councilmember Linares also commented on the election season and engaging with the community.

Councilmember Linares acknowledged those in attendance from Pawn Shop Skate Co.

Councilmember Marquez commented on the election season and his upcoming retirement.

Councilmember Marquez recognized and thanked the Public Works staff for all the work they do, their dedication and selflessness to the residents.

In response to an inquiry from Councilmember Marquez, Mayor Pro Tem Allen and City Manager Marcarello provided a status update regarding the Quiet Zone and Citrus crossing.

Mayor Pro Tem Allen commented on his attendance at Luminate Church for the installation of their new pastor and their partnership with the City.

CITY MANAGER COMMENTS
City Manager Marcarello announced that the Public Works Department will be hosting a virtual Community Workshop regarding organic waste recycling requirements (SB 1383) Wednesday, May 4, 2022, at 7:00 p.m. via Zoom.

Councilmember King commented on the history and heritage of Pawn Shop Skate Co. and thanked those in attendance from Pawn Shop Skate Co.

CONSENT CALENDAR
A motion was made by Councilmember Marquez, seconded by Councilmember Linares, to approve Consent Calendar items CC 1 – 9 as presented.

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COUNCIL/CSA/CPFA/CHA MINUTES Page 3 of 7 Tuesday, May 3, 2022 Motion approved by roll call vote for Consent Calendar items CC 1 – 9 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN
NOES: NONE
ABSTAIN: NONE
ABSENT: CORTEZ
CC 1. City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority approved the Minutes of the April 19, 2022, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.

CC 2. City Council/Successor Agency to the Covina Redevelopment Agency approved Payment of Demands in the amount of $4,116,864.22.

CC 3. City Council adopted on second reading Ordinance 22-05, entitled "Adopting a Military Equipment Use Policy in Accordance with Assembly Bill 481." CC 4. City Council approved the City of Covina Community Development Block Grant (CDBG) Downtown Neighborhood Business Workforce Augmentation Program Guidelines.

CC 5. City Council adopted Resolution CC 2022-44 adopting the East Rowland Avenue Rehabilitation Project as the City of Covina’s Fiscal Year 2023 Senate Bill 1 (SB 1) Project and reserving all FY 2022-2023 RMRA funds for project construction costs.

CC 6. City Council approved and made the following findings so that meetings of the City Council and the City’s Other Legislative Bodies are authorized to meet remotely in accordance with AB 361’s special Brown Act requirements for teleconference meetings: (1) the City Council has reconsidered the circumstances of the COVID-19 state of emergency; and (2) state and local officials continue to recommend measures to promote social distancing.

CC 7. City Council accepted the work performed by Legend Pump & Well Service Inc.; and authorized the City Clerk to file a Notice of Completion for the Water Well Demolition Project.

CC 8. City Council adopted Resolution CC 2022-49, amending the Fiscal Year 2021-2022 operating budget to appropriate $50,000 from the General fund into account 1010- 4000-51005-COWRK to pay legal review, furniture deposits, Request for Proposals (RFP) and Request for Qualifications (RFQ) process, and similar tasks for the Covina Co-Working Project to be located at 401 North Citrus Avenue in Covina.

CC 9. City Council:

1. Approved the plans and specifications for the Citrus Avenue Rehabilitation Project;

2. Awarded the Contract for the Citrus Avenue Rehabilitation Project to Gentry Brothers Inc. as the lowest responsive and responsible bidder in an amount of $4,390,677.25 and authorize the City Manager to execute the Contract;

3. Authorized an amount of $331,150 for any unforeseen construction expenses;

4. Adopted Resolution CC 2022-50 to amend the Fiscal Year 2021-2022 Capital Improvement Program Budget to reflect an appropriation of $550,000 from Measure CC Fund Balance to be used in the Transportation CIP fund and to DRAFT
COUNCIL/CSA/CPFA/CHA MINUTES Page 4 of 7 Tuesday, May 3, 2022 reflect an appropriation of $500,000 from Proposition C Fund Balance for the Citrus Avenue Rehabilitation Project; and

5. Approved Memorandum of Understanding (MOU) between City of West Covina and Covina for Citrus Avenue Rehabilitation Project.

CONTINUED PUBLIC HEARINGS – None.

PUBLIC HEARINGS
PH 1. Consideration of Resolutions CC 2022-45, CC 2022-46 and CC 2022-47, Authorizing Annexation of Territory to City of Covina Community Facilities District No. 2007-1 (Public Services) (Annexation No. 30), and to Call and Hold a Special Election (342 S Fourth Avenue, Covina)
Mayor Pro Tem Allen opened the public hearing.

The agenda report was provided by Community Development Director Lee.

There were no public comments, nor did anyone wish to submit a written protest, therefore, Mayor Pro Tem Allen closed the public hearing.

Chief Deputy City Clerk Alvarez confirmed that no written protests had been received and therefore, a majority protest did not exist; and that all landowners in the proposed annexation territory had submitted consent and waivers to hold the special election today.

Mayor Pro Tem Allen had announced that because a majority protest did not exist, it was appropriate for the City Council to consider resolutions annexing the territory and calling a special election within the annexation area.

A motion was made by Councilmember King, seconded by Councilmember Linares, to:

1. Adopt Resolution CC 2022-45, authorizing the annexation of territory to Community Facilities District No. 2007-1 (Annexation No. 30) and authorizing the levy of a special tax and submitting the levy of tax to the qualified electors; and

2. Adopt Resolution CC 2022-46, calling a special election and submitting to the voters of Annexation No. 30 of City of Covina Community Facilities District No. 2007-1 (Public Services), propositions regarding the annual levy of special taxes within Annexation No. 30 to finance public services, and the establishment of an appropriations limit.

Motion approved by roll call vote for Resolutions CC 2022-45 and CC 2022-46 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN
NOES: NONE
ABSTAIN: NONE
ABSENT: CORTEZ
Chief Deputy City Clerk Alvarez confirmed that the ballots had been received.

Chief Deputy City Clerk Alvarez completed the canvassing of the ballots and reported that:

DRAFT
COUNCIL/CSA/CPFA/CHA MINUTES Page 5 of 7 Tuesday, May 3, 2022 • On Proposition A, 1 vote was cast in support of the proposition and 0 votes were cast in opposition to the proposition; therefore, Proposition A was approved with 100% vote in favor.
• On Proposition B, 0 votes were cast in support of the proposition and 1 vote was cast in opposition to the proposition; therefore, Proposition B was not approved with 100% vote in opposition.

Council did not proceed with a motion to adopt Resolution CC 2022-47.

In response to an inquiry from Councilmember King, Community Development Director Lee responded that the vote may be a misunderstanding and he will follow up with the owner and discuss options. Community Development Director Lee clarified that the project is not in jeopardy at this time.

PH 2. Ordinance 22-06 Approving Zoning Code Amendment (ZCA) 22-002 Amending Chapter 17.69 (“Accessory Dwelling Units”) of Title 17 (Zoning) of the Covina Municipal Code Related to Accessory Dwelling Units; and Find the Proposed Zoning Code Amendment to be Exempt from the Requirements of the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15282(h)
Mayor Pro Tem Allen opened the public hearing.

A brief overview was provided by Community Development Director Lee. A PowerPoint presentation was presented by Senior Planner Mercy Lugo.

Questions followed regarding parking concerns, easements, set-back requirements, and two-story accessory dwelling units.

There were no public comments. Mayor Pro Tem Allen closed the public hearing.

A motion was made by Councilmember Marquez, seconded by Councilmember Linares, to waive full reading, read by title only, and introduce for first reading Ordinance 22-06 entitled, “An Ordinance of the City of Covina, California, amending various sections of the zoning code (Title 17 of the Covina Municipal Code) regarding accessory dwelling units and junior accessory dwelling units, and making a determination of exemption under the California Environmental Quality Act (“CEQA”).

Motion approved by roll call vote for Public Hearing item PH 2 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN
NOES: NONE
ABSTAIN: NONE
ABSENT: CORTEZ
City Attorney Lee read the title of Ordinance 22-06 into record.

CONTINUED BUSINESS – None.

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COUNCIL/CSA/CPFA/CHA MINUTES Page 6 of 7 Tuesday, May 3, 2022

NEW BUSINESS
NB 1. Fiscal Year 2023 Capital Improvement Projects Presentation A brief introduction was provided by Public Works Director Bullington. City Engineer Fajardo presented a PowerPoint presentation including, but not limited to the following projects:
• Grand Avenue Street Rehabilitation
• Rowland Avenue Street Rehabilitation
• Workman Avenue Street Rehabilitation
• Residential Street Rehabilitation
• Police Department Locker Room Renovation
• Police Department Emergency Generator Installation
• Covina Skate Park
Anthony Piscopo, from Pawn Shop Skate Co., expressed his appreciation to be a part of the Covina Skate Park project.

There were no public comments.

Council comments included, compliments to staff on a job well done, skate park, and request to consider potential changes to Banna Park garden area.

Mayor Pro Tem Allen clarified that this item was informational only and no Council action was needed.

NB 2. Resolution CC 2022-48, a Resolution of the City Council of the City of Covina, California, to Approve Site Plan Review (SPR) 22-62, a Conceptual Master Plan for the Covina Recreation Village Located at 640 – 680 North Citrus Avenue The agenda report and PowerPoint presentation were provided by Community Development Director Lee.

Questions and comments followed regarding the library, the rock wall, seating, basketball, other amenities, and compliments to staff.

There were no public comments.

A motion was made by Councilmember King, seconded by Councilmember Linares, to adopt Resolution CC 2022-48 approving the Site Plan Review (SPR) 22-62, a Conceptual Master Plan for the Covina Recreation Village Located at 640 – 680 North Citrus Avenue.

Motion approved by roll call vote for Public Hearing item NB 2 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN
NOES: NONE
ABSTAIN: NONE
ABSENT: CORTEZ
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COUNCIL/CSA/CPFA/CHA MINUTES Page 7 of 7 Tuesday, May 3, 2022

ADJOURNMENT
At 9:30 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority was adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, May 17, 2022, at 6:30 p.m. for closed session and 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

Respectfully Submitted:
__________________________________________
Georgianna Nicole Alvarez, CMC, CPMC
Chief Deputy City Clerk
Approved this 17th day of May, 2022:
_____________________________________
Patricia Cortez, Mayor/Chair

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 1 of 8 Tuesday, March 15, 2022 MINUTES OF MARCH 15, 2022

REGULAR MEETING OF THE COVINA CITY COUNCIL/SUCCESSOR AGENCY TO

THE COVINA REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY HELD IN THE COUNCIL CHAMBER OF CITY HALL, 125 EAST COLLEGE STREET, COVINA, CALIFORNIA AND

VIRTUALLY VIA ZOOM
This meeting was conducted in accordance with Assembly Bill 361, regarding the COVID-19 pandemic.

CALL TO ORDER
Mayor Marquez called the Council/Agency/Authority meeting to order at 7:30 p.m. with all Councilmembers present.

ROLL CALL
Councilmembers Present: Walter Allen, III, John C. King, Victor Linares, Mayor Pro Tem/Vice-Chair Patricia Cortez, and Mayor/Chair Jorge A. Marquez.

Councilmembers Absent: None.

Elected Members Present: City Clerk Mary Lou Walczak.

Elected Members Absent: City Treasurer Geoffrey Cobbett.

Staff Members Present: City Manager Chris Marcarello, City Attorney Candice K. Lee, Police Chief David Povero, Administrative Services Director Anita Agramonte, Community Development Director Brian Lee, Parks & Recreation/Library Services Director Lisa Evans, Public Works Director Andy Bullington, Deputy City Manager Angel Carrillo, and Chief Deputy City Clerk Nicole Alvarez.

PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Cortez

INVOCATION
Given by Covina Police Chaplain Chuck Cannizzaro

CITY COUNCIL REORGANIZATION
A. City Clerk to Conduct Election of Mayor
ITEM NO. CC 2
Amendments were made to
Public Hearing item PH 1 and
are shown in tracked changes.

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 2 of 8 Tuesday, March 15, 2022 City Clerk Walczak declared the positions of Mayor and Mayor Pro Tempore vacant and opened nominations for Mayor. Councilmember Allen nominated Mayor Pro Tem Cortez for Mayor. The nomination was seconded by Councilmember Linares. Hearing no other nominations, City Clerk Walczak closed the nomination period and declared Mayor Pro Tem Cortez Mayor of the Covina City Council by acclamation.

B. Incoming Mayor to Conduct Election of Mayor Pro Tempore Mayor Cortez called for nominations for the position of Mayor Pro Tempore. Councilmember King nominated Councilmember Allen for the position of Mayor Pro Tempore. The nomination was seconded by Councilmember Linares. Hearing no other nominations, Mayor Cortez closed the nomination period and declared Councilmember Allen Mayor Pro Tempore of the Covina City Council by acclamation.

PRESENTATIONS
A. Recognition of Outgoing Mayor
Certificates were presented to outgoing Mayor Marquez by the following: Carrie Lam, Representative of Congresswoman Grace Napolitano; Jamilex Rodriguez, representative of Senator Susan Rubio; Julissa Zepeda, representative of State Assemblymember Blanca Rubio; and Ryan Serrano, representative of Los Angeles County Board of Supervisor Hilda Solis. Certificates were presented to Mayor Cortez by the following: Jamilex Rodriguez, representative of Senator Susan Rubio, and Denaee Amaya, representative of State Assemblymember Blanca Rubio. A certificate was presented to Mayor Pro Tem Allen by Jamilex Rodriguez, representative of Senator Susan Rubio.

City Manager Marcarello, on behalf of the City, recognized outgoing Mayor Marquez for his leadership and love of the community. City Manager Marcarello expressed appreciation to his family for their sacrifice and presented outgoing Mayor Marquez with a token of appreciation.

Mayor Cortez, on behalf of Council, thanked outgoing Mayor Marquez for his service, dedication, enthusiasm, and leadership with the City and presented him with a gavel plaque.

PUBLIC COMMENTS
Bob Cruz, Regional Public Affairs Manager for Southern California Gas Company, complimented outgoing Mayor Marquez on a job well done and congratulated Mayor Cortez. Mr. Cruz said farewell to the City and introduced his replacement Lanae O’Shields. Ms. O’Shields commented that she is looking forward to the continued partnership and congratulated Mayor Cortez.

Robert and Nancy Rawlings requested support from City Council in their protest of the issuance of an alcoholic beverage license that is being requested by Goals Soccer.

Dora Gomez thanked outgoing Mayor Marquez for all he has done in the community and his support of Project 29:11; and welcomed Mayor Cortez.

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 3 of 8 Tuesday, March 15, 2022

COUNCIL AGENCY AUTHORITY COMMENTS
Mayor Cortez thanked Council for the opportunity to serve as Mayor and commented that it is an honor to serve with them. Mayor Cortez commented on St. Patty’s Day, thanked her family, friends, and representatives who were in attendance. Mayor Cortez also commented on being a woman in the Mayor seat and the second Latina woman in the Mayor seat. Mayor Cortez expressed her appreciation for the opportunity and all she is looking forward to. Mayor Cortez thanked Senator Susan Rubio, Assemblymember Blanca Rubio, and Congresswoman Grace Napolitano for their support in City projects. Mayor Cortez commented on the City’s strong financial footing and the unity of the City.

Mayor Pro Tem Allen commented on the team spirit of the Council. Mayor Pro Tem Allen commended outgoing Mayor Marquez for an outstanding job, expressed he will be missed and wished him well. Mayor Pro Tem Allen paid homage to outgoing Mayor Marquez’ wife Alma and his mom and dad. Mayor Pro Tem Allen congratulated Mayor Cortez and commended her for a well-deserved position; and expressed that he is looking forward to working with her as Mayor.

Mayor Pro Tem Allen expressed similar concerns to Robert and Nancy Rawlings.

Councilmember Marquez encouraged residents to view the “State of the City” online at wearecovina.com. Councilmember Marquez commented that it’s been a pleasure to work with Mayor Cortez and wished her luck.

Councilmember Linares commended outgoing Mayor Marquez on his service, love for the City and career path. Councilmember Linares commented on his history with Mayor Cortez and expressed that he is proud of her and looking forward to this year.

Councilmember King commended outgoing Mayor Marquez and expressed that he’s proud of how he led the City through the pandemic and congratulated him as outgoing Mayor. Councilmember King thanked outgoing Mayor Marquez’ wife Alma, daughter Matilda, and entire Marquez family for raising a great son and their sacrifice to let him be a part of everything the City does.

Councilmember King commented on Mayor Cortez’ professionalism, heart for the community, and strengths. Councilmember King commented on the great team the City has with Council and staff and all the good that is going on in the City. Councilmember King expressed his pride in Mayor Cortez as Mayor and commented that it is well earned and deserved.

CITY MANAGER COMMENTS – None.

CONSENT CALENDAR
Councilmember King requested to pull Consent Calendar item CC 10.

A motion was made by Councilmember Linares, seconded by Mayor Pro Tem Allen, to approve Consent Calendar items CC 1 – 9 and 11 – 15 as presented.

Motion approved by roll call vote for Consent Calendar items CC 1 – 9 and 11 – 15 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 4 of 8 Tuesday, March 15, 2022 ABSTAIN: NONE
ABSENT: NONE
CC 1. City Council/Successor Agency to the Covina Redevelopment Agency approved the Payment of Demands in the amount of $2,167,594.66.

CC 2. City Council/Successor Agency to the Covina Redevelopment Agency received and filed the Monthly Investment Report of Treasurer to the City Council and Successor Agency to the Covina Redevelopment Agency for February 2022.

CC 3. City Council awarded the Demolition Project for City-owned Properties located at 593 & 611 East San Bernardino Road (Former Covina Trading Post Property) to (1) Converse Consultants to prepare the Report and Monitoring of Asbestos and LeadBased Paint Survey in the Amount of $29,850, and (2) to Precision Contracting for Building Demolition in the Amount of $66,800 and authorized the City Manager to execute the Contracts; and established a contingency allowance of $25,000 for unforeseen conditions that require mitigation services, if needed.

CC 4. City Council approved and made the following findings so that meetings of the City Council and the City’s Other Legislative Bodies are authorized to meet remotely in accordance with AB 361’s special Brown Act requirements for teleconference meetings: (1) the City Council has reconsidered the circumstances of the COVID-19 state of emergency; and (2) state and local officials continue to recommend measures to promote social distancing.

CC 5. City Council accepted the work performed by FS Contractors, Inc. and; authorized the City Clerk to file a Notice of Completion for the Downtown Parking Lot No. 4 Renovation Project Combined with Downtown Trash Enclosure Project CC 6. City Council authorized the City Manager to execute the Third Amendment to the Professional Services Agreement with PMAM Corporation for alarm tracking and billing.

CC 7. City Council:

1. Approved plans and specifications for the Miscellaneous Repair Concrete Project - 321 E. Front Street;

2. Awarded a contract for the Miscellaneous Repair Concrete Project - 321 E.

Front Street to Gentry Brothers, Inc. and Greentech Landscape, Inc. as the lowest responsive and responsible bidders in amounts not-to-exceed $119,521 and $41,910, respectively, and authorized the City Manager to execute the contracts; and

3. Authorized a contingency amount of $15,000.00 for any unforeseen construction expenses.

CC 8. City Council accepted the work performed by Precision Contracting, Inc.; and authorized the City Clerk to file a Notice of Completion for the Covina Recreation Village Project Asbestos and Lead Base Paint Abatement Services CC 9. City Council received and filed the 2021 Annual Housing Element Progress Report.

CC 11. City Council adopted City Resolution CC 2022-24, declaring intention to authorize the annexation of territory to Community Facilities District No. 2007-1 (Public

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 5 of 8 Tuesday, March 15, 2022 Services); and adopted City Resolution CC 2022-25, adopting boundary map showing territory proposed to be annexed in the future to Community Facilities District No. 2007-1 (Public Services); and set the Public Hearing date for May 3, 2022 (342 S.

Fourth Avenue, Covina//Annexation 30)
CC 12. City Council adopted Resolution CC 2022-26 authorizing the City Manager to execute all documents and agreements for projects funded through the State of California Department of Transportation (Caltrans) on behalf of the City of Covina CC 13. City Council adopted Resolution CC 2022-27 accepting a donation from the Champion Family Foundation in the amount of $9,000 and increasing the Police Department FY 2021-22 revenue and expenditure budget; and approved the implementation of a drone program with the purchase of a drone or Unmanned Aerial System (UAS) for the Police Department in the amount of $9,000.

CC 14. City Council received and filed the SB 341 Compliance Report on the Housing Successor Agency low and moderate income housing asset fund.

CC 15. City Council authorized the City Manager to sign a "Piggyback" Contract Authorization Letter with Ocean Blue Environmental Services, Inc for Hazardous Waste Disposal Services; and authorized the City Manager to sign a Professional Services Agreement outlining a three (3) year contract with Ocean Blue Environmental Services, Inc for Hazardous Waste Disposal Services in an amount notto-exceed $50,000 per year with an option for two (2) additional one-year terms.

CONSENT CALENDAR ITEM PULLED FOR SEPARATE DISCUSSION
CC 10. Acceptance of Grant Funds from the State of California Department of Parks and Recreation for the Covina Recreation Village Project and to Appropriate the Necessary Funds
Staff Recommendation:

Adopt Resolution CC 2022-23 amending the Fiscal Year 2021-2022 Operating Budget to accept $4,845,229 from the State of California Department of Parks and Recreation and appropriate the funds for the purpose of construction services for the Covina Recreation Village Project.

Councilmember King wanted to highlight this item and thank Assemblymember Rubio and Senator Susan Rubio for their hand in helping making this happen.

A motion was made by Councilmember King, seconded by Mayor Pro Tem Allen, to approve Consent Calendar item CC 10 as presented.

Motion approved by roll call vote for Consent Calendar item CC 10 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 6 of 8 Tuesday, March 15, 2022

CONTINUED PUBLIC HEARINGS
CPH 1. A Continued Public Hearing for Notice of Intent to Vacate a Portion of Geneva Place between Citrus Avenue and 3rd Avenue and a Strip of Public Alley located at East Side of 141 West Geneva Place.

Mayor Cortez declared the public hearing open.

The agenda report was presented by Community Development Director Lee.

There were no public comments.

A motion was made by Councilmember Marquez, seconded by Councilmember Linares, to continue the Public Hearing to the meeting of April 19, 2022.

Mayor Pro Tem Allen commented on his dissatisfaction of the length of time this item has taken due to the other party.

Motion approved by roll call vote for Continued Public Hearing item CPH 1 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

PUBLIC HEARINGS
PH 1. Consideration of Resolutions CC 2022-28, CC 2022-29 and CC 2022-30, Authorizing Annexation of Territory to City of Covina Community Facilities District No. 2007-1 (Public Services) (Annexation No. 31), and to Call and Hold a Special Election (316 S. Barranca Avenue, Covina)
Mayor Cortez opened the public hearing.

The agenda report was presented by Community Development Director Lee.

There were no public comments, nor did anyone wish to submit a written protest..

Mayor Cortez closed the public hearing.

City Clerk Walczak confirmed that no written protest had been received and therefore, a majority did not exist; and that all landowners in the proposed annexation territory had submitted consent and waivers to hold the special election today.

Mayor Cortez had announced that because a majority protest did not exist, it was appropriate for the City Council to consider resolutions annexing the territory and calling a special election within the annexation area.

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 7 of 8 Tuesday, March 15, 2022 A motion was made by Councilmember King, seconded by Mayor Pro Tem Allen, to:

Aadopt Resolution CC 2022-28, authorizing the annexation of territory to Community Facilities District No. 2007-1 (Annexation No. 31) and authorizing the levy of a special tax and submitting the levy of tax to the qualified electors.; and
Motion approved by roll call vote for Resolution CC 2022-28 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
A motion was made by Councilmember Linares, seconded by Councilmember Marquez, to A adopt Resolution CC 2022-29, calling a special election and submitting to the voters of Annexation No. 31 of City of Covina Community Facilities District No. 2007-1 (Public Services), propositions regarding the annual levy of special taxes within Annexation No. 31 to finance public services, and the establishment of an appropriations limit.; and Motion approved by roll call vote for Resolution CC 2022-29 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
City Clerk Walczak confirmed that the ballots had been received and at the Mayor’s request proceeded to canvass the ballots.

City Clerk Walczak completed the canvassing of the ballots and reported that:
• On Proposition A, one (1) vote was cast in support of the proposition and 0 votes were cast in opposition to the proposition; therefore, Proposition A was approved with 100% vote in favor.
• On Proposition B, one (1) vote was cast in support of the proposition and 0 votes were cast in opposition to the proposition; therefore, Proposition B was approved with 100% vote in favor.

A motion was made by Councilmember Marquez, seconded by Councilmember King, Ato adopt Resolution CC 2022-30, making certain findings, certifying the results of an election and adding property to Community Facilities District No. 2007-1 (Public Services), Annexation No. 31.

Motion approved by roll call vote for Public Hearing item PH 1 as follows:

AYES: KING, LINARES, MARQUEZ, ALLEN, CORTEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE

AMENDED
COUNCIL/CSA/CPFA/CHA MINUTES Page 8 of 8 Tuesday, March 15, 2022 CONTINUED BUSINESS - None.

NEW BUSINESS – None.

ADJOURNMENT
At 8:31 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority was adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, April 5, 2022, at 6:30 p.m. for closed session and 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

Respectfully Submitted:
__________________________________________
Georgianna Nicole Alvarez, CMC, CPMC
Chief Deputy City Clerk
Approved this 19th day of April, 2022:
_____________________________________
Patricia Cortez, Mayor/Chair
CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: CC Regular Meeting - May 17 2022
Title: Payment of Demands
Presented By: Geoffrey Cobbett, City Treasurer
Anita Agramonte, Administrative Services Director
Recommendation: Approve Payment of Demands in the amount of $2,406,340.04.

EXECUTIVE SUMMARY / BACKROUND:

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

Accounts Payable Warrants April 15, 2022 - April 28, 2022 CITY checks/EFTs $ 1,466,229.32
CITY payroll $ 920,146.33
CITY voids $ -
Worker's Comp $ 15,274.61
$ 2,401,650.26
SACRA checks/EFTs $ 406.12
SACRA payroll $ 4,283.66
$ 4,689.78
TOTAL checks/EFTs $ 2,406,340.04
DISCUSSION:

The attached reports have been reviewed by the City Treasurer and by the Administrative Services Director.

FISCAL IMPACT:

Sufficient funding is available and the related costs are included in the Fiscal Year 21/22 Adopted Budget.

ATTACHMENTS:

Attachment A - Check Register April 15, 2022 - April 28, 2022 Respectfully submitted,

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
5787 04/13/2022 487 CALIFORNIA PUBLIC EMPLOYEES' 4,634.73 5788 02/03/2022 477 STATE OF CA 1,996.00
5789 04/21/2022 487 CALIFORNIA PUBLIC EMPLOYEES' 2,250.00 5790 04/28/2022 4160 ICMA RETIREMENT TRUST-IRA 30.00
5791 04/28/2022 1405 ICMA RETIREMENT TRUST-457 5,880.94 5792 04/28/2022 4003 MidAmerica 2,053.20
5793 04/28/2022 2033 NATIONWIDE RETIREMENT SOLUTIONS 13,609.00 20518 04/28/2022 788 COVINA, CITY OF 46,407.99
20519 04/28/2022 789 COVINA-FSA, CITY OF 868.18
20520 04/28/2022 1247 GREAT WEST LIFE & ANNUITY 4,292.00 subtotal EFT/wires/direct deposits $82,022.04
102886 10/07/2020 99999 KELLY CHURNSIDE (13.62)
103217 10/28/2020 99999 MARCELA MONTANO (90.00)
103221 10/28/2020 99999 NORMA GARCIA (101.00)
103229 10/28/2020 99999 SONIA OLIVAREZ (45.00)
103335 11/04/2020 99999 HEIDI L. GARCIA (17.00)
103337 11/04/2020 99999 LETICIA IBARRA (30.00)
103340 11/04/2020 99999 MARIO R. DELACRUZ (14.00)
103352 11/04/2020 99999 SARAHI ANTILLON (80.00)
103449 11/12/2020 99999 KRYSTAL CONTRERAS (80.00)
103459 11/12/2020 99999 RAINER RUANO (30.00)
103556 11/18/2020 99999 ARTURO SANDOVAL (30.00)
103570 11/18/2020 99999 JORGE RIVERA HERNANDEZ (30.00)
103571 11/18/2020 99999 JOSE BLANCO (80.00)
103584 11/18/2020 99999 VICTORIA FERNANDEZ (101.00)
103676 11/25/2020 99999 GELCO, CORPORTATION,LSR (30.00) 103677 11/25/2020 99999 GELCO,CORPORATION. LSR (30.00)
103691 11/25/2020 99999 PORFHY JESUS OCHOA (45.00)
110967 04/28/2022 1617 LA CNTY REGISTRAR RECORDER (150.00) 103377 11/04/2020 3155 ZAVALA, ANTONIO (75.59)
103492 11/12/2020 775 COVINA POLICE ASSOCIATION (2,800.00) 105445 04/01/2021 775 COVINA POLICE ASSOCIATION (2,950.00) 105649 04/15/2021 775 COVINA POLICE ASSOCIATION (2,950.00) 105872 05/06/2021 1075 CHEVRON AND TEXACO BUSINESS CARD SERVICES (326.58) 107811 09/16/2021 123 WALTER ALLEN III (15.00)
110829 04/20/2022 37 ACRYLATEX 115.98
108931 12/01/2021 99999 ADRIANA GALARZA (68.01)
109411 01/13/2022 4667 Ocean Blue Environmental Services, Inc. (6,342.57) 110830 04/20/2022 4374 ADMINSURE, INC 11,917.60
110831 04/20/2022 5000 Advanced Applied Engineering, Inc. 5,804.50 110832 04/20/2022 52 ADVANCED GRAPHIX INC 401.50
110833 04/20/2022 219 AT&T 72.83
110834 04/20/2022 254 AZUSA LIGHT & WATER 101.81
110835 04/20/2022 255 AZUSA PLUMBING & HEATNG SUPPLY 163.60 110836 04/20/2022 333 BERLITZ LANGUAGES, INC. 50.00
110837 04/20/2022 437 BURRO CANYON ENT INC 230.00
110838 04/20/2022 568 CAT SPECIALTIES INC 2,663.97
110839 04/20/2022 4854 CEJ Engineers, Inc. 30,720.00
110840 04/20/2022 600 CERTIFIED UNDERCAR PARTS 67.76

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
110841 04/20/2022 654 CITRUS CAR WASH 42.98
110842 04/20/2022 692 CODE PUBLISHING COMPANY 480.00
110843 04/20/2022 696 COLBURN, MICHAEL 144.36
110844 04/20/2022 700 COLLEY FORD 4,345.42
110845 04/20/2022 749 THE COUNSELING TEAM 710.00
110846 04/20/2022 766 COVINA DISPOSAL CO 18,014.70
110847 04/20/2022 783 CITY OF COVINA WATER 340.62
110848 04/20/2022 3839 DOANE AND HARTWIG WATER SYSTEMS, INC. 4,853.18 110849 04/20/2022 5186 Dash Platform, LLC 1,964.77
110850 04/20/2022 878 DELTA DENTAL OF CALIFORNIA 122.02 110851 04/20/2022 894 DF POLYGRAPH 175.00
110852 04/20/2022 5084 Dr. Sunshine, LLC 1,412.50
110853 04/20/2022 970 EDISON CO 2,554.78
110854 04/20/2022 4885 ELIE FARAH 24,900.00
110855 04/20/2022 5053 ENVIRONMENTAL SCIENCE ASSOCIATES 2,035.00 110856 04/20/2022 4682 Evan Brooks Associates, Inc. 810.00 110857 04/20/2022 4265 EVERBRIDGE, INC 15,605.02
110858 04/20/2022 4455 FRONTIER 749.64
110859 04/20/2022 4448 FS CONTRACTORS, INC. 33,626.82
110860 04/20/2022 3953 GOLDEN METERS SERVICES INC 2,418.81 110861 04/20/2022 1204 GOLDEN STATE WATER COMPANY 72.40 110862 04/20/2022 4432 GONZALEZ GOODALE ARCHITECTS 80,882.50 110863 04/20/2022 1235 GRAINGER 1,573.64
110864 04/20/2022 1361 HOLLIDAY ROCK CO INC 662.60
110865 04/20/2022 1387 HUNTER, JOHN L. 11,549.25
110866 04/20/2022 3988 LANDSCAPE WAREHOUSE III 43.71
110867 04/20/2022 1437 INTER-CON SECURITY SYSTEMS INC 12,802.81 110868 04/20/2022 1531 JW LOCK CO INC 569.80
110869 04/20/2022 1561 KEYSTONE UNIFORM DEPOT 1,551.77
110870 04/20/2022 1615 REGIONAL TAP SERVICE CENTER 100.00 110871 04/20/2022 1617 LA CNTY REGISTRAR RECORDER 75.00 110872 04/20/2022 1673 LAWSON PRODUCTS INC 144.60
110873 04/20/2022 1792 MANNING & MARDER KASS, 23,263.03 110874 04/20/2022 5137 MasterCorp Commercial Services LLC 3,926.67 110875 04/20/2022 4717 Merchants Landscape Services, Inc. 20,444.38 110876 04/20/2022 4833 Michael R. Hillmann 3,510.00
110877 04/20/2022 1933 MISSION LINEN SUPPLY 13.20
110878 04/20/2022 4737 Municipal Code Corporation 4,800.00 110879 04/20/2022 4667 Ocean Blue Environmental Services, Inc. 6,342.57 110880 04/20/2022 2104 OFFICE DEPOT 146.58
110881 04/20/2022 99999 ADRIANNA CARRANZA 101.00
110882 04/20/2022 99999 BREANA FACUNDO 45.00
110883 04/20/2022 99999 BRIAN KOCH 45.00
110884 04/20/2022 99999 BRIAN MASUDA 45.00
110885 04/20/2022 99999 DALTON BROWNELL 80.00
110886 04/20/2022 99999 DARLENE ELWELL 65.00
110887 04/20/2022 99999 DAVID RUDERMAN 45.00
110888 04/20/2022 99999 ELIA LERMA 45.00
110889 04/20/2022 99999 ERIK BELL 48.27

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
110890 04/20/2022 99999 GONZALO URENA 22.25
110891 04/20/2022 99999 GUOJIAN CHEN 472.05
110892 04/20/2022 99999 HART BROTHERS CONSTRUCTION 2,250.00 110893 04/20/2022 99999 HERTZ VEHICLES LLC 75.00
110894 04/20/2022 99999 HOANG BAOVUONG 45.00
110895 04/20/2022 99999 HUGO VEGA 1,260.00
110896 04/20/2022 99999 JAZMINE DURAN 45.00
110897 04/20/2022 99999 JENNIFER PAVON 110.00
110898 04/20/2022 99999 JESUS SUAREZ 30.00
110899 04/20/2022 99999 JONATHAN TYE 45.00
110900 04/20/2022 99999 JOSIE KEENER 45.00
110901 04/20/2022 99999 LAURA SALAS 80.00
110902 04/20/2022 99999 LAUREN DELUNA 45.00
110903 04/20/2022 99999 LI LIU 45.00
110904 04/20/2022 99999 LORENZO RANKIN 45.00
110905 04/20/2022 99999 MERITAGE HOMES 1,884.00
110906 04/20/2022 99999 SHENPEN HSUEH 45.00
110907 04/20/2022 99999 SUNRUN INSTALLATIONS SERVICES, INC. 237.76 110908 04/20/2022 99999 ZIMING HE 30.00
110909 04/20/2022 4688 PCAM, LLC 37,488.41
110910 04/20/2022 4024 PERFORMANCE TRUCK REPAIR INC 813.08 110911 04/20/2022 2345 QUILL 87.44
110912 04/20/2022 2407 REGIONAL TAP SERVICE CENTER 523.80 110913 04/20/2022 2415 REPUBLIC MASTER CHEFS 698.40
110914 04/20/2022 5138 Ricoh USA, Inc. 232.95
110915 04/20/2022 5138 Ricoh USA, Inc. 299.63
110916 04/20/2022 4350 RKA Consulting Group 160.00
110917 04/20/2022 2614 SGV CITY MANAGERS' ASSOCIATION 35.00 110918 04/20/2022 4389 SOCIAL VOCATIONAL SERVICES, INC. 2,167.00 110919 04/20/2022 3589 SOUTHERN COMPUTER WAREHOUSE INC 1,976.87 110920 04/20/2022 5080 Spohn Ranch, Inc. 6,950.00
110921 04/20/2022 5117 Steam It All LLC 550.00
110922 04/20/2022 2800 T MOBILE USA 306.00
110923 04/20/2022 2852 THREE VALLEY MUN WATER DISTR 1,579.67 110924 04/20/2022 2855 CHARTER COMMUNICATION 267.10
110925 04/20/2022 4558 TONON ATTORNEY SERVICE 229.43
110926 04/20/2022 2903 TRI-XECUTEX CORP 170.00
110927 04/20/2022 2926 TYLER TECHNOLOGIES INC. 45,369.22 110928 04/20/2022 4764 UniFirst Corporation 777.66
110929 04/20/2022 2954 URBAN GRAFFITI ENTERPRISES INC 7,200.00 110930 04/20/2022 4444 URBAN RESTORATION GROUP US INC 289.32 110931 04/20/2022 4255 RELIASTAR LIFE INSURANCE COMPANY 13.38 110932 04/20/2022 3621 WAXIE ENTERPRISES INC 84.68
110933 04/20/2022 3078 THOMSON REUTERS - WEST 403.35
110934 04/20/2022 3080 WESTERN EMULSIONS INC 340.00
110935 04/20/2022 3134 XEROX CORPORATION 745.29
110936 04/20/2022 3137 Y TIRE SALES 2,243.31
110937 04/28/2022 14 A1 RENTALS 1,424.61
110938 04/28/2022 3755 CARB/PERP 865.00

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
110939 04/28/2022 123 WALTER ALLEN III 15.00
110940 04/28/2022 219 AT&T 460.95
110941 04/28/2022 245 AVILA, MONIQUE 147.00
110942 04/28/2022 254 AZUSA LIGHT & WATER 206.40
110943 04/28/2022 255 AZUSA PLUMBING & HEATNG SUPPLY 1,011.27 110944 04/28/2022 477 STATE OF CA 13.00
110945 04/28/2022 4854 CEJ Engineers, Inc. 31,501.84
110946 04/28/2022 682 CLINICAL LAB OF SAN BERNARDINO 630.00 110947 04/28/2022 5022 Colantuono, Highsmith & Whatley, PC 633.98 110948 04/28/2022 703 COMBINED GRAPHICS 192.94
110949 04/28/2022 775 COVINA POLICE ASSOCIATION 8,700.00 110950 04/28/2022 849 DAPEER ROSENBLIT & LITVAK LLP 5,375.46 110951 04/28/2022 878 DELTA DENTAL OF CALIFORNIA 122.02 110952 04/28/2022 958 E.H. WACHS COMPANY 2,356.00
110953 04/28/2022 970 EDISON CO 36,111.32
110954 04/28/2022 4885 ELIE FARAH 1,430.00
110955 04/28/2022 5053 ENVIRONMENTAL SCIENCE ASSOCIATES 47,333.52 110956 04/28/2022 1055 FEDEX 12.84
110957 04/28/2022 4455 FRONTIER 288.02
110958 04/28/2022 1156 THE GAS COMPANY 5,593.38
110959 04/28/2022 4432 GONZALEZ GOODALE ARCHITECTS 5,600.00 110960 04/28/2022 4979 GRBCON, Inc. 197,124.15
110961 04/28/2022 1361 HOLLIDAY ROCK CO INC 236.49
110962 04/28/2022 1371 HOSE MAN INC, THE 196.92
110963 04/28/2022 3988 LANDSCAPE WAREHOUSE III 605.50
110964 04/28/2022 4077 INTERWEST CONSULTING GROUP INC 18,635.00 110965 04/28/2022 1571 KING BOLT CO 62.02
110966 04/28/2022 1612 LA CNTY DEPT OF PUBLIC WORKS 3,540.43 110967 04/28/2022 1617 LA CNTY REGISTRAR RECORDER 150.00 110968 04/28/2022 1619 LA CNTY SHERIFF'S DEPT 462.52
110969 04/28/2022 4694 Leslie's Poolmart Inc 311.06
110970 04/28/2022 3169 LOGAN SUPPLY COMPANY 131.94
110971 04/28/2022 1735 LOPEZ JR, FREDDIE 105.00
110972 04/28/2022 1924 MILLERS & ISHAMS 401.04
110973 04/28/2022 4360 MOORE IACOFANO GOLTSMAN, INC. 4,012.50 110974 04/28/2022 5181 NBS Government Finance Group 2,837.50 110975 04/28/2022 4667 Ocean Blue Environmental Services, Inc. 2,803.29 110976 04/28/2022 2101 OCLC 1,534.24
110977 04/28/2022 99999 BRIDGETT GEREGHTY 11.06
110978 04/28/2022 99999 COBY WAGMAN 70.59
110979 04/28/2022 99999 DAVID LEE MARTIN 69.89
110980 04/28/2022 99999 DEBORAH CHEN 44.82
110981 04/28/2022 99999 DOMINGA BARRERA 11.17
110982 04/28/2022 99999 FERNANDO ARIAS 57.69
110983 04/28/2022 99999 FERTIG & GORDON 34.15
110984 04/28/2022 99999 GARRETT DRISCOLL 50.67
110985 04/28/2022 99999 HECTOR MENDOZA 75.18
110986 04/28/2022 99999 HENRY TSAI 52.05
110987 04/28/2022 99999 HSIANGSHENG LIN 39.21

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
110988 04/28/2022 99999 JOHN WRIGHT 42.08
110989 04/28/2022 99999 JOHN WRIGHT 26.90
110990 04/28/2022 99999 JOSEPH RAMIREZ 17.91
110991 04/28/2022 99999 KATHEE ROGERS 127.79
110992 04/28/2022 99999 KATHEE ROGERS 155.46
110993 04/28/2022 99999 KAY TUN 47.13
110994 04/28/2022 99999 KELLY CHURNSIDE 13.62
110995 04/28/2022 99999 LONNIE WORKMAN 82.90
110996 04/28/2022 99999 ROBERT BOLTON 40.73
110997 04/28/2022 99999 ROBERT WURTZ 11.41
110998 04/28/2022 99999 SOCAL GAS 265.00
110999 04/28/2022 99999 SUZEE DELLA DONNA 342.50
111000 04/28/2022 99999 TODD SMITH 81.01
111001 04/28/2022 99999 WRIGHT REAL PROPERTY MANAGEMENT 25.21 111002 04/28/2022 5154 Game Time 461,862.07
111003 04/28/2022 2345 QUILL 128.50
111004 04/28/2022 2415 REPUBLIC MASTER CHEFS 363.06
111005 04/28/2022 3796 RICHARDS, WATSON & GERSHON 30,090.36 111006 04/28/2022 4350 RKA Consulting Group 13,237.50
111007 04/28/2022 2487 RSG, Inc. 1,123.75
111008 04/28/2022 2619 SGV EXAMINER 885.00
111009 04/28/2022 3837 SONSRAY MACHINERY LLC 639.13
111010 04/28/2022 4738 Support Solutions, Inc. 2,285.18 111011 04/28/2022 2855 CHARTER COMMUNICATION 397.04
111012 04/28/2022 2913 TT TECHNOLOGIES INC 2,216.99
111013 04/28/2022 2935 UNDERGROUND SERVICE ALERT 232.72 111014 04/28/2022 4764 UniFirst Corporation 385.49
111015 04/28/2022 4247 UNITED WATER WORKS INC 2,969.38
111016 04/28/2022 4065 VERIZON BUSINESS SERVICES 813.60 111017 04/28/2022 3001 VERIZON WIRELESS 2,119.42
111018 04/28/2022 3023 VULCAN MATERIALS COMPANY 640.81
111019 04/28/2022 3052 WATERLINE TECHNOLOGIES INC 838.77 111020 04/28/2022 4743 TREMCO/WEATHERPROOFING TECHNOLOGIES, INC. 3,890.00 111021 04/28/2022 4728 West Coast Telcom Products 462.50 111022 04/28/2022 3274 WILLDAN ENGINEERING 6,720.00
111023 04/28/2022 3152 YWCA 2,735.42
111024 04/28/2022 3155 ZAVALA, ANTONIO 75.59
111025 04/28/2022 1617 LA CNTY REGISTRAR RECORDER 75.00 111026 04/28/2022 1617 LA CNTY REGISTRAR RECORDER 75.00 111027 04/28/2022 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 3,474.38 111028 04/28/2022 69 AFSCME District Council 36 676.42
111029 04/28/2022 3846 CLEA 833.00
111030 04/28/2022 775 COVINA POLICE ASSOCIATION 2,550.00 111031 04/28/2022 878 DELTA DENTAL OF CALIFORNIA 8,236.35 111032 04/28/2022 4710 Fidelity Security Life Insurance Company 902.70 111033 04/28/2022 1106 FRANCHISE TAX BOARD 283.33
111034 04/28/2022 3795 PRE-PAID LEGAL SERVICES, INC 139.48 111035 04/28/2022 2235 PERS LONG TERM CARE PROGRAM 191.04 111036 04/28/2022 4255 RELIASTAR LIFE INSURANCE COMPANY 4,164.13

CITY OF COVINA
Check Register
Apr 15, 2022 - Apr 28, 2022
Check # Check Date Vendor Name Amount
111037 04/28/2022 3045 WASHINGTON NATIONAL INSURANCE COMPANY 33.38 subtotal checks $ 1,384,613.40
voids (prior to current mo.) $ -
payroll (04/28/22) $ 924,429.99
workers' compensation $ 15,274.61
TOTAL checks/EFTs $2,406,340.04

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: CC Regular Meeting - May 17 2022
Title: Monthly Investment Report of the Treasurer to the City Council and Successor Agency to the Covina Redevelopment Agency for April 2022
Presented By: Geoffrey Cobbett, City Treasurer
Anita Agramonte, Administrative Services Director
Recommendation: Receive and File.

EXECUTIVE SUMMARY / BACKROUND:

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

DISCUSSION:

The attached monthly report for the City reflects the portfolio balances for the month ended April 30, 2022. The report is in conformity with the City’s Investment Policy as well as Government Code 53607. There are sufficient funds to meet the pooled expenditure requirements for all City funds for the next 6 months.

FISCAL IMPACT:

None to receive and file.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

ATTACHMENTS:

Attachment A - Monthly Investment Report
Attachment A-1 - Total Investment Portfolio
Attachment A-2 - Investment Transaction Summary
Attachment A-3 - City LAIF Statement
Attachment A-4 - Successor Agency LAIF Statement
Respectfully submitted,

MONTHLY INVESTMENT REPORT REPORT TO THE CITY COUNCIL
FOR THE MONTH ENDED April 30, 2022
TOTAL INVESTMENT BALANCE AS OF 3/31/2022

TRANSFERS IN

TRANSFERS OUT

INTEREST

ACCRUED INTEREST ON PURCHASED ASSETS

GAIN OR (LOSS) ON SALE OF INVESTMENTS
CASH BALANCE 4/30/2022

ANALYSIS OF CASH AND INVESTMENT BALANCE - BOOK VALUE

INVESTMENT PORTFOLIO
LOCAL AGENCYINVESTMENT FUND — CITY

LOCAL AGENCY INVESTMENT FUND - SACRA

TOTAL INVESTMENT BALANCE
ATTACHMENT A-1
ATTACHMENT A-3
ATTACHMENT A-4
Respectfully submitted
\
Geoffrey Cobbett
City Treasurer
$70.157,715.85
3,400,000.00
(2,000,000.00)
40,834.41
(4,927.22)
902.80
$71,594,525.84
21,453,028.]5
49,6 12,664.65
528,833.04
$7l,594,525.84
Attachment A

Trustee Purch date Dated Qty
Market Price Per
Share
Total Original Cost
Value Total Market Value Coupon CUSIP Maturity Issuer
U.S. Bank 09/12/19 3,550 100.000000 356,234.18 355,000.00 1.6250 912828WZ9 4/30/2022 US Treasury U.S. Bank 10/30/19 4,850 100.000000 487,595.51 485,000.00 1.8750 912828X47 4/30/2022 US Treasury U.S. Bank 10/30/19 4,850 100.101000 486,250.39 485,489.85 1.7500 912828XR6 5/31/2022 US Treasury U.S. Bank 08/28/19 7,750 100.149000 781,629.88 776,154.75 1.7500 9128286Y1 6/15/2022 US Treasury U.S. Bank 02/15/19 9,500 100.237000 937,902.34 952,251.50 2.1250 912828XG0 6/30/2022 US Treasury U.S. Bank 10/30/19 4,850 100.184000 486,212.50 485,892.40 1.7500 9128287C8 7/15/2022 US Treasury U.S. Bank 09/12/19 4,250 100.106000 423,804.69 425,450.50 1.5000 912828YA2 8/15/2022 US Treasury U.S. Bank 11/27/19 6,250 100.141000 625,488.28 625,881.25 1.6250 912828TJ9 8/15/2022 US Treasury U.S. Bank 11/27/19 6,250 100.227000 629,809.57 626,418.75 1.8750 912828M49 10/31/2022 US Treasury U.S. Bank 03/04/20 1,600 99.770000 162,918.75 159,632.00 1.5000 912828Z29 1/15/2023 US Treasury U.S. Bank 08/28/19 7,750 99.938000 783,143.55 774,519.50 1.6250 912828P38 1/31/2023 US Treasury U.S. Bank 03/04/20 2,850 99.602000 289,408.59 283,865.70 1.3750 912828Z86 2/15/2023 US Treasury U.S. Bank 02/21/20 5,250 99.595000 524,034.00 522,873.75 1.3750 3130AJ7E3 2/17/2023 Federal Home Loan U.S. Bank 04/21/20 6,100 98.285000 608,475.00 599,538.50 0.3750 3137EAEQ8 4/20/2023 FHLMC U.S. Bank 05/07/20 6,100 98.158000 609,743.80 598,763.80 0.3750 3137EAER6 5/5/2023 FHLMC U.S. Bank 06/09/20 6,000 97.819000 598,044.00 586,914.00 0.3000 3133ELG81 6/8/2023 Federal Farm Credit BKs Stifel 02/02/22 20,000 97.409000 1,990,871.52 1,948,180.00 0.9000 3133ENLF5 1/18/2024 FEDL Farm Credit Bank Bond Stifel 02/02/22 10,000 96.034000 998,647.01 960,340.00 1.3200 3133ENLU2 1/21/2025 FEDL Farm Credit Bank Bond Stifel 03/03/22 2,490 97.122000 248,751.00 241,833.78 1.8500 538036HW7 2/14/2025 Live Oak Bkg Co Stifel 03/01/22 2,450 96.899000 245,000.00 237,402.55 1.8000 05580AK37 3/4/2025 BMW Bank North America Stifel 03/01/22 2,450 96.869000 245,000.00 237,329.05 1.8000 02589ABP6 3/10/2025 American Express Natl BK Stifel 02/02/22 10,000 98.720000 1,040,733.90 987,200.00 2.6250 3130A6ZQ3 12/12/2025 FEDL Home Loan Bank Bond Stifel 04/27/22 2,450 99.538000 245,000.00 243,868.10 2.8500 02007GQQ9 5/5/2026 Ally Bank Stifel 04/07/22 10,000 99.873000 1,012,621.38 998,730.00 3.0000 3130A2VE3 9/11/2026 FEDL Home Loan Bank Bond Stifel 02/02/22 10,000 93.506000 996,151.59 935,060.00 1.5000 3133ENKV1 1/13/2027 FEDL Farm Credit Bank Bond Stifel 02/01/22 2,450 94.330000 245,000.00 231,108.50 1.7500 856285G21 2/9/2027 State Bank of India Stifel 02/02/22 2,450 94.045000 245,000.00 230,410.25 1.7000 70962LBE1 2/18/2027 Pentagon Federal CR UN Stifel 02/16/22 2,450 96.278000 245,000.00 235,881.10 2.2000 795451BH5 2/23/2027 Sallie Mae Bank Stifel 03/01/22 2,450 95.574000 245,000.00 234,156.30 2.0500 07371AZQ9 3/3/2027 Beal Bank Stifel 03/01/22 2,450 95.574000 245,000.00 234,156.30 2.0500 07371CK81 3/3/2027 Beal Bank Stifel 03/01/22 2,450 95.542000 245,000.00 234,077.90 2.0500 58404DNG2 3/8/2027 Medallion Bank Stifel 04/07/22 10,000 100.832000 1,019,769.11 1,008,320.00 3.1500 3133EJDV8 3/22/2027 Federal Farm Credit BKs Stifel 04/07/22 2,450 98.415000 245,000.00 241,116.75 2.7000 14042TFJ1 4/13/2027 Cpital One Bank USA NA Stifel 04/07/22 2,450 98.413000 245,000.00 241,111.85 2.7000 87165FK45 4/14/2027 Synchrony Bank Stifel 04/27/22 2,450 99.652000 245,000.00 244,147.40 3.0500 14042RRA1 5/4/2027 Capital One NA Stifel 04/27/22 2,450 99.781000 245,000.00 244,463.45 3.0500 38149M6Y4 5/11/2027 Goldman Sachs Bank USA 18,912,539.53 19,283,240.54
U.S. Bank Securities $ 8,743,646.25 8,790,695.03 $
U.S. Bank Mmkt $ 2,413,286.97 2,413,286.97 $
U.S. Bank Total Value of Portfolio 11,203,982.00 $ 11,156,933.22 $ Stifel Securities $ 10,168,893.28 10,492,545.51 $
Stifel Cash $ (243,499.36) (243,499.36) $
Stifel Total Value of Portfolio 10,249,046.15 $ 9,925,393.92 $ - - Total Value of Portfolio 21,453,028.15 $ 21,082,327.14 $ The purpose is to demonstrate compliance with the city's adopted Investment Policy. This is a required report per Government Code section 53646(b). The investment portfolio as presented is in compliance with the City’s adopted Investment Policy.

CITY OF COVINA
U.S. Bank and Stifel
Investment Portfolio as of
April 2022
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Inve Page 3 of 6 stment Reports\21-22\April 2022\April 2022 Investment Report Attachment A-1 Qty Purch Date Maturity
Share Price at
Purch Date
Net Trade
Amount
Cost Basis
Value Market Value
Accrued
Interest Issuer CUSIP Held by
02/02/22 12/12/ 10,000 2025 103.120000 1,043,375.96 1,031,200.00 1,041,614.59 (1,761.37) FEDL Home Loan Bank Bon 3130A6ZQ3 Stifel 03/03/22 2/14/ 2,490 2025 98.210000 248,826.72 248,751.00 (75.72) 244,542.90 Live Oak Bkg Co 538036HW7 Stifel 03/01/22 3/4/ 2,450 2025 97.978000 245,000.00 245,000.00 - 240,046.10 BMW Bank North America 05580AK37 Stifel 03/01/22 3/10/ 2,450 2025 97.947000 245,000.00 245,000.00 - 239,970.15 American Express Natl BK 02589ABP6 Stifel 03/01/22 3/3/ 2,450 2027 97.258000 245,000.00 245,000.00 - 238,282.10 Beal Bank 07371AZQ9 Stifel 03/01/22 3/3/ 2,450 2027 97.258000 245,000.00 245,000.00 - 238,282.10 Beal Bank 07371CK81 Stifel 03/01/22 3/8/ 2,450 2027 97.240000 245,000.00 245,000.00 - 238,238.00 Medallion Bank 58404DNG2 Stifel Total 2,517,202.68 ######### 2,470,561.35 (1,837.09)
Qty Purch Date Maturity
Sale /
Maturity Date
Share Price at Sale
/ Maturity Date
Original Cost
Value
Par Value at
Sale/Maturity
Gain / (Loss)
on Sale /
Redemption
Interest
Earnings Since
Purchase Issuer CUSIP Held by

NO TRANSACTIONS IN APRIL
Total - - - -

CITY OF COVINA
Investment Transaction Summary
for the Month Ended April 30, 2022
Purchased Investments
Sold/Matured Investments
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\21-22\April 2022\April 2022 Investment Report Attachment A-2












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Attachment A-4 Page 6 of 6
CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: CC Regular Meeting - May 17 2022
Title: Approve and Make AB 361 Findings for Special Brown Act Requirements for Teleconference Meetings
Presented By: Chris Marcarello, City Manager
Recommendation: Approve and make the following findings so that meetings of the City Council and the City’s Other Legislative Bodies are authorized to meet remotely in accordance with AB 361’s special Brown Act requirements for teleconference meetings: (1) the City Council has reconsidered the circumstances of the COVID-19 state of emergency; and (2) state and local officials continue to recommend measures to promote social distancing.

EXECUTIVE SUMMARY:

This item is on the agenda so that the City Council and the other legislative bodies of the City, including the Successor Agency to the Covina Redevelopment Agency, the Covina Public Financing Authority, the Covina Housing Authority, the Planning Commission, the Parks and Recreation Commission, the Traffic and Parking Advisory Commission, the Finance Advisory Commission and the Library Board of Trustees (collectively “City’s Other Legislative Bodies”) may meet virtually pursuant to Assembly Bill (“AB”) 361’s special Brown Act requirements for teleconference meetings. These special requirements give local public agencies greater flexibility to conduct teleconference meetings when there is a declared state of emergency and either social distancing is mandated or recommended, or when the legislative body determines an in-person meeting would present imminent risks to the health and safety of attendees.

BACKGROUND:

On March 4, 2020, Governor Newsom proclaimed a state of emergency to exist in California due to the spread of COVID-19. The Governor subsequently issued numerous executive orders suspending or modifying state laws to facilitate the response to the emergency. Among other things, these executive orders superseded certain Brown Act requirements and established special rules to give local public agencies greater flexibility to conduct teleconference meetings. The special rules included provisions allowing local public agencies to conduct teleconference meetings without having to provide a physical location from which the public may attend or comment, without having to use teleconference locations that are publicly accessible, and without having to identify teleconference locations on the agenda. Those special rules expired on September 30, 2021.

On September 16, 2021, in anticipation of then-imminent expiration of his special rules for teleconference meetings, the Governor signed AB 361. In key part, this bill amends the Brown Act to establish special requirements for teleconference meetings if a legislative body of a local public agency makes two findings pursuant to Government Code Section 54953(e)(3). Like the special rules in the Governor’s executive orders, the special Brown Act requirements in AB 361 include provisions allowing public agencies to conduct teleconference meetings without having to provide a physical location from which the public may attend or comment, without having to use teleconference locations that are publicly accessible, and without having to identify teleconference locations on the agenda. The AB 361 special Brown Act requirements are scheduled be repealed on January 1, 2024.

An agency may hold a public meeting under AB 361 under certain specified circumstances, including if it is held during a proclaimed state of emergency and state or local officials have imposed or recommended measures to promote social distancing. As discussed below, the declared emergency is still in effect and Los Angeles County officials recommend measures to promote social distancing.

In order for a local public agency to continue to be subject to the AB 361 special Brown Act requirements for teleconference meetings, a legislative body of a local public agency first must make a finding that it has “reconsidered” the circumstances of a declared state of emergency. Second, the legislative body must find that such emergency continues to directly impact the ability of the legislative body’s members to meet in person.

Alternatively, for the second finding, the legislative body must find that state or local officials continue to impose or recommend social distancing measures. These findings must be made again within 30 days and on a monthly basis thereafter. The City Council last made these findings on May 3, 2022.

DISCUSSION:

The City Council and the City’s Other Legislative Bodies have met remotely or in a hybrid meeting format throughout the pandemic to protect the health and safety of the public and staff pursuant to these requirements.

The factual circumstances exist for the City to hold meetings pursuant to AB 361. The declared emergency is still in effect. Furthermore, Los Angeles County officials recommend measures to promote social distancing.

The Los Angeles County Department of Public Health Order Responding Together at Work and in the Community recommends physical distancing. The County Health Department encourages people at risk for severe illness or death from COVID-19 to take protective measures such as social distancing and, for those not yet fully vaccinated, to physically distance from others whose vaccination status is unknown. The County Health Department also continues to recommend that employers take steps to support physical distancing and that people maintain physical distancing to prevent COVID transmission in public settings. See http://publichealth.lacounty.gov/media/Coronavirus/docs/HOO/HOO_SaferReturnWorkCommunity.pdf.

Therefore, staff recommends the City Council approve and make the following findings so that meetings of the City Council and the City’s Other Legislative Bodies are authorized to be conducted remotely in accordance with AB 361 and subject to the special Brown Act requirements for teleconference meetings: (1) the City Council has reconsidered the circumstances of the COVID-19 state of emergency; and (2) state or local officials continue to recommend measures to promote social distancing.

If the Council makes the findings and confirms that the City's Legislative Bodies will be meeting during a proclaimed state of emergency and state or local officials have imposed or recommended measures to promote social distancing, the City Council should make these findings again within 30 days to continue to be subject to the AB 361 special Brown Act requirements.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.

Respectfully submitted,

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: CC Regular Meeting - May 17 2022
Title: Request to Cancel the Regular City Council Meeting of June 7, 2022 Presented By: Chris Marcarello, City Manager
Recommendation: That City Council consider canceling the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority regular scheduled Joint Meeting of June 7, 2022; and direct the City Clerk's Office to post the required notice of cancelation.

DISCUSSION:

City of Covina's General Municipal Election will be held on June 7, 2022 and the City would like to provide Covina voters with full opportunity to vote.

The City Council has the legal authority to establish meeting dates and times and to cancel or reschedule such meetings with proper and timely public notice. Therefore, staff is recommending that City Council cancel the meeting on June 7, 2022, and direct the City Clerk's Office to post the required notice of cancelation.

FISCAL IMPACT:

None.

Respectfully submitted,

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: CC Regular Meeting - May 17 2022
Title: Ordinance 22-06 Approving Zoning Code Amendment (ZCA) 22-002 Amending Chapter

17.69 (“Accessory Dwelling Units”) of Title 17 (Zoning) of the Covina Municipal Code Related to Accessory Dwelling Units; and Find the Proposed Zoning Code Amendment to be Exempt from the Requirements of the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15282(h) - Second Reading and Adoption Presented By: Brian K. Lee, AICP, Director of Community Development Recommendation: Adopt on second reading Ordinance 22-06 entitled, “An Ordinance of the City of Covina, California, amending various sections of the zoning code (Title 17 of the Covina Municipal Code) regarding accessory dwelling units and junior accessory dwelling units, and making a determination of exemption under the California Environmental Quality Act (“CEQA”).

EXECUTIVE SUMMARY / BACKROUND:

Ordinance 22-06 (Attachment A) was approved at introduction by a 4-0-1 vote (Mayor Cortez absent) of the City Council at the May 3, 2022, City Council Meeting.

DISCUSSION:

It is recommended that City Council adopt on second reading Ordinance 22-06 entitled, “An Ordinance of the City of Covina, California, amending various sections of the zoning code (Title 17 of the Covina Municipal Code) regarding accessory dwelling units and junior accessory dwelling units, and making a determination of exemption under the California Environmental Quality Act (“CEQA”).

FISCAL IMPACT:

There is no fiscal impact for a second reading and adoption of an ordinance.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

ATTACHMENTS:

Attachment A - Ordinance 22-06 ZCA 22-002 ADUs
Respectfully submitted,
ORDINANCE 22-06

AN ORDINANCE OF THE CITY OF COVINA, CALIFORNIA,
AMENDING VARIOUS SECTIONS OF THE ZONING CODE (TITLE 17

OF THE COVINA MUNICIPAL CODE) REGARDING ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS,

AND MAKING A DETERMINATION OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”)
WHEREAS, the California Department of Housing and Community Development has determined that housing production is not keeping pace with demand, and the housing shortage is causing people to drive longer distances between a home that is affordable and where they work, or double up to share space, both of which reduces quality of life and produces negative environmental impacts; and
WHEREAS, accessory dwelling units can address a portion of the need for additional housing; and
WHEREAS, recent amendments to California Government Code Sections 65852.2 and 65852.22 became effective on January 1, 2020 that regulate the development of Accessory Development Units (“ADUs”) and Junior Accessory Development Units (“JADUs”); and WHEREAS, Zoning Code Amendment (ZCA) 19-07 was adopted May 7, 2019 amending various provisions of Title 17 (Zoning) of the Covina Municipal Code (CMC) to establish appropriate standards and procedures related to accessory dwelling units consistent with State law collectively, the proposed" Zoning Code Amendments"); and WHEREAS, recent amendments to California Government Code Sections 65852.2 and 65852.22 became effective on January 1, 2021 that regulate the development of Accessory Development Units (“ADUs”) and Junior Accessory Development Units (“JADUs”) necessitate amendment to 17.69 for compliance and clarity; and
WHEREAS, Zoning Code Amendment (ZCA) 20-10 was adopted December 1, 2020 amending various provisions of Title 17 (Zoning) of the Covina Municipal Code (CMC) to establish appropriate standards and procedures related to accessory dwelling units consistent with State law collectively, the proposed" Zoning Code Amendments"); and WHEREAS, CMC Section 17. 80. 010 provides that any amendment to the text of Title 17 (Zoning) of the CMC that imposes any regulation not theretofore imposed or removes or modifies any such regulation theretofore imposed shall be made according to the procedure set forth in CMC Sections 17. 80. 020 through 17. 80. 070; and WHEREAS, Zoning Code Amendment (ZCA) 22-002 proposes to amend Chapter 17.69 (“Accessory Dwelling Units”) of Chapter Title 17 (Zoning) of the Covina Municipal Code (CMC) to establish appropriate standards and procedures related to accessory dwelling units consistent with State law (collectively, the proposed “Zoning Code Amendments”); and

Ordinance 22-06 Page 2 of 12
WHEREAS, CMC Section 17. 80. 020 provides that the Planning Commission may initiate proceedings by motion and then hold public hearings and make a recommendation on proposed Zoning Code text amendments as provided in CMC Sections 17. 80. 030 through 17. 80. 050; and
WHEREAS, CMC Section 17. 80. 030 provides that the City' s Planning Department shall study the proposed amendment and shall provide information necessary to assure action consistent with the intent of Title 17 (Zoning) of the CMC and the City of Covina General Plan; and WHEREAS, CMC Section 17. 80. 040 provides that after the Planning Commission initiates proceedings by motion, the Community Development Director shall give notice of a public hearing in accordance with Sections 17. 80.040.B. and C.; and WHEREAS, CMC Section 17. 80. 050 provides that the Planning Commission shall hold a public hearing on the date and at the time and place specified in the notice; and WHEREAS, on March 22, 2022, during a duly noticed public hearing, the Planning Commission adopted Resolution 2022-003 PC, recommending to the City Council the adoption of this Ordinance 22-06 approving Zoning Code Amendment (ZCA) 22-002, a Notice of Exemption and the amendments herein; and
WHEREAS, on May 3, 2022, the City Council held a duly noticed public hearing at which time interested persons had an opportunity to testify in support of, or opposition to, the proposed amendments, and at which time the City Council considered the Notice of Exemption and Zoning Text Amendment.

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

SECTION 1. The above recitals are all true and correct.

SECTION 2. The City Council has reviewed and considered the information included in the General Plan, Zoning Code and Staff Report for the Public Hearing and public testimony prior to taking action on this Ordinance. This information is on file and available at the Community Development Department at Covina City Hall.

SECTION 3. The City Council finds that the proposed Ordinance amends portions of the Covina Municipal Code is in substantial compliance with State law and is consistent with the following goals and policies of the General Plan and would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Applicable General Plan goals are identified below with a description of how the Accessory Dwelling Unit/Junior Accessory Dwelling Unit Ordinance furthers the goals of the General Plan:

A. Policy 2 Facilitates housing production commensurate with projected needs for households of all types and income levels.

B. Policy 4 Mitigates potential constraints to housing for households of all income levels and persons with disabilities.

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C. Policy 5 Affirmatively furthers fair housing and equal housing opportunities for all persons.

SECTION 4. The City Council has independently reviewed and considered the requirements of the California Environmental Quality Act (“CEQA”) and finds and determines that the adoption of this Ordinance is exempt pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282 (h), as an action to implement the provisions of Government Code Sections 65852.2 and 65852.22.

SECTION 5. Chapter 17.69 (Accessory Dwelling Units) of Title 17 (Zoning) of the Covina Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 17.69 Accessory Dwelling Units and Junior Accessory Dwelling Units.

17.69.010 Intent.

17.69.015 Definitions.

17.69.020 Application and Approval Process.

17.69.030 Accessory Dwelling Unit Development Standards.

17.69.040 Local Accessory Dwelling Unit Development Standards.

17.69.050 Junior Accessory Dwelling Unit Development Standards.

17.69.010 Intent.

This chapter is intended to implement the requirements of California Government Code Section 65852.2 regarding accessory dwelling units (ADUs) and 65852.22 regarding junior accessory dwelling units (JADUs). In the event of a conflict between the Government Code, as it may be amended from time to time, and this chapter, the Government Code shall prevail. In the event of a conflict between this chapter and another provision of this code, this chapter shall prevail.

17.69.015 Definitions.

The following words shall have the meanings set forth below, unless the context otherwise permits or requires:

1. “Accessory Dwelling Unit” or “ADU” has the meaning ascribed in Government Code Section 65852.2, as the same may be amended from time to time.

2. “Attached ADU” means an ADU that is constructed as a physical expansion (i.e., addition) of the Primary Dwelling and shares a common wall with the Primary Dwelling.

3. “Detached ADU” means an ADU that is constructed as a separate structure from the Primary Dwelling, which does not share any walls with the Primary Dwelling.

4. “Existing structure” means an existing single-family dwelling, multi-family dwelling, or other accessory structure that can be safely converted into habitable space under the California Building Standards Code, as amended by the City, and other applicable law.

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5. “Junior Accessory Dwelling Unit” or “JADU” has the meaning ascribed in Government Code Section 65852.22, as the same may be amended from time to time.

6. “Primary dwelling” means the existing or proposed single-family dwelling or multi-family dwelling on the lot where an ADU would be located.

7. “Public transit” has the meaning ascribed in Government Code Section 65852.2(j), as the same may be amended from time to time.

8. “Tandem parking” means two or more automobiles parked on a driveway or in any other location on a lot, lined up behind one another.

17.69.020 Application and Approval Process.

A. An application for an accessory dwelling unit or junior accessory dwelling unit shall be considered ministerial, without discretionary review or a hearing, within 60 days after receiving a complete application. Certain accessory dwelling units are reviewed through a ministerial building permit only process and shall be subject only to the standards in Section 17.69.030 (see paragraph “D” below), whereas other accessory dwelling units are subject to a ministerial Planning ADU Review and subject to the standards in Section 17.69.030 and the local standards in Section

17.69.040 (see paragraph “E” below). Junior accessory dwelling units shall be reviewed through a ministerial building permit only process and shall be subject only to the standards in Section

17.69.050 (see paragraph “D” below).

B. If an accessory dwelling unit is being proposed as part of a newly proposed accessory structure, the application for the accessory dwelling unit may be considered separate from, and after, the application for the accessory structure.

C. The lot shall contain an existing primary unit at the time an application for an accessory dwelling unit or junior accessory dwelling unit is submitted, or the application for the accessory dwelling unit or junior accessory dwelling unit may be made in conjunction with the development of the primary unit. Where the applicant needs a discretionary approval for the primary dwelling unit, commencement of the 60-day review period shall commence upon the approval of the primary dwelling unit. However, the City may choose to process the accessory dwelling unit / junior accessory dwelling unit and the primary dwelling unit concurrently, so long as the application for the accessory dwelling unit / junior accessory dwelling unit is approved within 60 days after the approval of the primary structure and the primary structure is issued building permits prior to or concurrent with the accessory dwelling unit / junior accessory dwelling unit.

D. The Director of Community Development, or designee, shall approve an application for the following accessory dwelling units and junior accessory dwelling units in a streamlined building permit only process, so long as the proposed ADU complies with the requirements of Section 17.69.030:

1. Accessory Dwelling Units on Single Family Lots (Conversions and Simultaneous Proposals): One accessory dwelling unit within the space of an existing or proposed single-family dwelling or a detached accessory dwelling unit in an existing accessory structure.

The accessory dwelling unit may expand the space of the existing accessory structure by up to 150

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square feet beyond the physical dimensions of the accessory structure to allow for ingress and egress. Rear and side yard setbacks must be sufficient for fire and safety. The accessory dwelling unit must have exterior access separate from the proposed or existing single-family dwelling. An ADU allowed under this subparagraph may be combined with a JADU authorized under Section

17.69.050.

2. Detached Accessory Units on Single Family Lots: One detached, new construction ADU, so long as the ADU maintains at least a 4-foot rear and side yard setback, does not exceed 800 square feet, and does not exceed a height of 16 feet. This ADU may be combined with a JADU authorized under Section 17.69.050.

3. Accessory Dwelling Units in Multifamily Buildings. Multiple ADUs within the portions of an existing multifamily dwelling, in spaces not used as living space. Examples include conversion of storage rooms, boiler rooms, attics, basements, and garages. Each unit must comply with building standards. The number of ADUs that may be created in a multifamily dwelling is equal to 25% of the number of existing units, or one accessory unit, whichever is greater.

4. Detached ADUs on Multifamily Lots: Not more than two detached ADUs, on a lot with an existing multifamily dwelling. The accessory units are subject to a 16-foot height limit and must maintain at least a 4-foot rear and side yard setback. An applicant may apply to build ADUs either under paragraph “3” or paragraph “4” but not both.

E. For an accessory dwelling unit that does not qualify for the approvals under subdivision “D” above, the Director of Community Development, or designee, shall approve a ministerial Planning ADU Review if the ADU complies with the standards in Section 17.69.030 and the local standards in Section 17.69.040.

17.69.030 Accessory Dwelling Unit Development Standards.

The following standards shall apply to all accessory dwelling units:

A. No more than one accessory dwelling unit and one junior accessory dwelling unit shall be permitted on any one lot.

B. The minimum gross floor area of an accessory dwelling unit shall be 220 square feet.

C. The total area of floor space for an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling living area, with a maximum floor area of 1,000 square feet.

D. The accessory dwelling unit may be rented but shall not be sold or otherwise conveyed separately from the primary residence on the lot. The owner of the lot shall enter into a restrictive covenant with the city providing that the accessory dwelling unit shall not be sold, or title thereto transferred separate from that of the property as a whole, and shall not be leased for a period of less than 30 consecutive days.

E. An attached accessory dwelling unit shall have a separate entrance.

F. In addition to the required parking for the primary unit, one off-street parking space shall be provided on the same lot that the accessory dwelling unit is located. However, this paragraph

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“F” shall not require an off-street parking space if:

1. The accessory dwelling unit is located within one-half mile, measured in walking distance, of public transit, including bus stops;

2. The accessory dwelling unit is located within an architecturally and historically significant historic district;

3. The accessory dwelling unit is part of the proposed or existing primary residence or an existing accessory structure;

4. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit; or

5. When there is a designated parking space for a car share vehicle located within one block of the accessory dwelling unit.

G. Off-street parking shall be permitted in front, side, and rear yard setback areas or through tandem parking. The parking does not need to be covered or in an enclosed garage.

H. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or where such structure is converted into an accessory dwelling unit, any off-street parking required for the primary residence that is lost shall not be required to be replaced.

I. No setback shall be required for an existing legally constructed garage that is converted to an accessory dwelling unit, or for a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit. Side yard and rear yard setbacks of four feet shall be required for any other accessory dwelling unit, with the exception of two-story accessory dwelling units. ADUs greater than 16 feet in height, (i.e. detached two-story ADUs, a second-story ADU above a garage, the addition of a second-story ADU to an existing single-story residence, the addition of an attached two-story ADU to the primary residence, or any combination thereof) shall be permitted within the primary residence “buildable area,” as determined under CMC Sections 17.14 and 17.26 residential development standards.

J. Upon approval of an accessory dwelling unit on a lot, the lot shall not be further divided unless there is adequate land area to divide the lot consistent with the general plan and zoning designation.

K. A parcel with an existing guest house may not also have an accessory dwelling unit; however, a guest house may be converted to an accessory dwelling unit subject to the provisions of this chapter.

L. Except as otherwise required herein, all construction, structural alterations or additions made to create an accessory dwelling unit shall comply with current development standards and building, electrical, fire and plumbing codes. This includes a requirement that all accessory dwelling units shall comply with the grading standards and permit processes and requirements for

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development on slopes.

M. Except as otherwise required herein, the accessory dwelling unit shall be subject to the same minimum required front yard setback as the main dwelling unit.

N. A detached accessory dwelling unit that is 800 square feet or less, not more than 16 feet in height, and compliant with a minimum 4-foot side and rear setback, shall be considered consistent with all City development standards, irrespective of any other Municipal Code limitations governing lot coverage, floor area ratio, or open space. For any other detached accessory dwelling unit, lot coverage, floor area ratio, and open space requirements for the underlying zone shall apply.

O. Fire sprinklers are not required for ADUs if they are not required for the primary residence, as determined by the Fire Marshal.

P. If the ADU will be connected to an onsite wastewater treatment system, the city may require that approval from the Regional Water Quality Control Board and a percolation test has been completed within the last 5 years, or 10 years in the case of tests that have been recertified.

Q. An ADU proposed on a lot or parcel that is not served by a public sanitary sewer system shall require approval by the Los Angeles County Department of Public Health, and any other applicable agencies, of a private sewage disposal system, prior to Building and Safety Division permit issuance.

R. Detached ADU sited within four to one or greater slopes, whether upslope or downslope, or within a High to Very High Fire Hazard Severity Zone (FHSZ) designation from Los Angeles County Fire Department, shall meet the following requirements:

1. May encroach into the four to one (4:1) or greater slopes by a maximum distance of 6 feet;

2. Require Planning review and Los Angeles County Fire Department Review;

3. Provide a minimum 10-foot fire defensive zone around the ADU (Defensible space is the buffer you create between a building on your property and the grass, trees, shrubs, or any wildland area that surround it. CALFIRE);

4. Comply with construction requirements in the California Building Code and California Residential Code that are specific to the wildland-urban interface fire area.

5. Roof material shall be tiles, slate or imitation thereof. Where the roof material for the main house consists of composition shingles, detached ADU can include the same material. If composition shingles are used, 40-year or higher grade architectural dimension shingles shall be used.

S. Grading, filling, excavating and construction activities must comply with health and safety requirements of California Building and Grading Standards. Detached ADUs between 500 and 1,000 square feet must submit a drainage plan that provides: existing and proposed topography of the property; existing and proposed drainage system consisting of swales, pipes, catch basins, inlets, outlets; and historic drainage patterns that demonstrate it has not altered in a manner to cause drainage problems to neighboring properties.

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17.69.040 Local Accessory Dwelling Unit Standards.

An accessory dwelling unit approved pursuant to the Planning ADU Review process shall comply with the following standards, in addition to the standards in Section 17.69.030:

A. Design.

1. The colors, exterior finishes, and roof pitch of the ADU shall match those of the primary dwelling. The roof slope of the ADU must match that of the dominant roof slope of the primary dwelling, which is the slope shared by the largest portion of the roof.

2. If the applicant seeks to build an ADU in a garage, and such ADU requires an expansion of more than 150 square feet, the garage door shall be removed and the opening shall be treated and finished to match the primary residence.

3. All windows shall have exterior trims and sills. Exterior window treatments that face the front and side facades of the ADU must include at least one of the following:
decorative shutters, awnings, window shades, or bay windows.

4. Each ADU shall provide a minimum of 60 square feet of covered porch entry with decorative railing and decorative porch lighting.

B. Height and Setback. Maximum building height shall not exceed 16 feet in height when 4 feet from a side and rear property line. ADUs greater than 16 feet in height, (i.e. detached twostory ADUs, a second-story ADU above a garage, the addition of a second-story ADU to an existing single-story residence, the addition of an attached two-story ADU to the primary residence, or any combination thereof) shall be permitted within the primary residence “buildable area,” as determined under CMC Sections 17.14 and 17.26 residential development standards.

C. Unit Size. The maximum size of an ADU shall be 850 square feet for a studio or onebedroom unit and 1,000 square feet for an ADU with two or more bedrooms.

D. Lot Coverage. An accessory dwelling unit larger than 800 square feet shall not cover more than 35 percent of the required rear yard within single family zones.

E. Separation from Primary Unit. A detached ADU larger than 800 square feet shall be separated from the primary dwelling and any other accessory structure by at least 6 feet (measured from eave to eave).

F. Entryway. In cases, where proposed ADU is on a corner lot or reverse corner lot, the entry to an ADU shall face the public right-of-way and shall have a roof cover.

G. Site Plan. A detached ADU shall be located behind the rear building line of the primary residence.

H. Grading and Drainage. Finished ground surfaces/slopes within 5 feet of the ADU shall slope away from the structure at a 5% minimum slope. All exterior hard surfaces shall be installed

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with a 1% minimum slope and shall drain away from the ADU. Drainage swales and drainage pipes shall have a minimum slope of 1%. Lot grading shall not slope towards property lines in a manner which would cause storm flows onto neighboring properties.

I. Fees Charged for Accessory Dwelling Units.

1. Utility Connection Fees and Capacity Charges. Where an accessory dwelling unit will be developed within the space of an existing single-family dwelling or accessory structure (i.e., an ADU conversion), and the ADU qualifies for approval with just a building permit, the City shall not require the applicant to install a new or separate utility connection nor charge connection fees or capacity charges. However, the City may charge connection fees and capacity charges for an ADU that is constructed in conjunction with a new single-family dwelling or if it is a newly constructed ADU that is not a conversion of existing space.

2. Impact Fees. The applicant shall pay to the city all applicable impact fees imposed on new residential development, including, but not limited to, park and recreational facility fees. Impact fees shall not apply to an ADU less than 750 square feet in size. For larger ADUs (i.e., 750 square feet or more), impact fees shall be charged proportionally to the square footage of the primary dwelling unit. For example, if a primary dwelling is 1,600 square feet and a proposed accessory dwelling unit is 800 square feet, the applicable impact fee for the accessory dwelling unit is 50% of the amount of the fee for the single-family dwelling.

17.69.050 Junior Accessory Dwelling Units.

A. These provisions are adopted pursuant to California Government Code Sections 65852.2 and 65852.22. The purpose of these standards is to establish standards for the development of junior accessory dwelling units in a manner that preserves the integrity of single-family development, avoids adverse impacts on such areas, and provides additional housing opportunities consistent with state law.

B. As stated in Section 17.69.020, an application for a building permit to create a JADU shall be considered ministerially, without discretionary review or a public hearing, and approved within 60 days after receiving a complete application, so long as the JADU meets all of the following standards:

1. The lot shall contain an existing primary unit at the time an application for a JADU is submitted, or the application for the JADU may be made in conjunction with the application for the primary unit. A JADU shall be constructed within the walls of the proposed or existing single-family residence.

2. No more than one ADU and one JADU shall be permitted on any one lot.

3. The minimum gross floor area of a JADU including an efficiency unit shall be 220 square feet.

4. The maximum floor area for a JADU shall be 500 square feet.

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5. A JADU may include separate sanitation facilities, or may share sanitation facilities with the existing or proposed single-family dwelling. If the JADU shares sanitation facilities with the single-family dwelling, there shall be interior access between the two units.

6. A JADU shall include an efficiency kitchen, which shall include all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

7. The owner of the lot shall reside on the lot, either in the primary unit or in the JADU. Prior to issuance of a building permit, the property owner shall enter into a restrictive covenant with the City regarding such owner-occupancy on a form prepared by the City, which shall be recorded against the property. Such covenant also shall provide that the JADU shall not be sold or title thereto transferred separate from that of the property, and the JADU shall not be leased for a period of less than 30 consecutive days. If the owner ceases to reside on the property, use of the junior accessory dwelling unit shall be discontinued and the unit converted into a portion of the primary unit.

8. A JADU shall have a separate exterior entrance from the primary single-family residence.

9. No parking requirements shall be imposed on the JADU.

10. Except as otherwise required herein, all construction or structural alterations made to create the JADU shall comply with current development standards and building, electrical, fire and plumbing codes.

11. Fire sprinklers are not required for a JADU if they are not required for the primary residence as determined by the Fire Marshal.

C. The Director of Community Development, or designee, shall approve an application for a JADU through the streamlined “building permit only” process identified under Section

17.69.020.

D. A JADU is exempt from connection fees, capacity charges, and impact fees.

E. In the event of any conflicts between the standards set forth in this chapter and those set forth in the regulations of the applicable zoning district, the provisions of this chapter shall prevail.

F. A JADU that conforms to this section shall be deemed to be in compliance with the general plan.”
SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional

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without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. Submittal of Ordinance. The Community Development Director shall submit a copy of this Ordinance to the Department of Housing and Community Development within 60 days after adoption of this Ordinance.

SECTION 8. Effective Date. This Ordinance shall take affect thirty (30) days after its adoption. The City Clerk is directed to certify to the enactment of this Ordinance and to cause this ordinance to be published and/or posted as required by law.

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

PASSED, APPROVED and ADOPTED this ______day of___________.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor
ATTEST:
___________________________________________

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk
APPROVED AS TO FORM:

____________________________________
CANDICE K. LEE, City Attorney

Ordinance 22-06 Page 12 of 12

CERTIFICATION
I, Georgianna Nicole Alvarez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 22-06 was introduced for first reading at a regular meeting on the 3 rd day of May,
2022. Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the ___ day of _________, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
___________________________________________

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: CC Regular Meeting - May 17 2022
Title: Proposed Solid Waste Franchise Amendments Related to State Recycling Mandate (SB 1383)
Presented By: Chris Marcarello, City Manager
Andy Bullington, Director of Public Works
Recommendation: 1. Approve Amendment No. 2 to the Amended and Restated Exclusive Franchise Agreement for Solid Waste Collection Services to comply with State-mandated organics recycling requirements (Senate Bill 1383) and to adopt other proposed changes to the existing franchise agreement;

2. Adopt Resolution CC 2022-51 approving Amendment No. 2 to the Franchise Agreement with Arakelian dba Athens Services and authorizing an increase in the maximum permitted solid waste and recycling collection service rates charged by Athens for solid waste collection services; and

3. Authorize the City Manager to execute the amendment to the franchise agreement.

EXECUTIVE SUMMARY:

SB 1383 (Short-Lived Climate Pollutant Reduction Strategy) adopted by the State in September 2016, requires the reduction of organic waste disposal of 50% by 2020, 75% by 2025, and 20% of currently disposed surplus food to be rescued for people to eat by 2025. Beginning January 1, 2022, SB 1383 imposes a suite of requirements upon California jurisdictions. Residents and businesses must begin recycling food waste, jurisdictions must procure products made of recovered organic waste, and an outreach and inspection program must be implemented.

On February 1, 2022, the City Council received a presentation on SB 1383 and provided direction to staff related to proposed amendments to the City's existing solid waste and recycling collection services franchise agreement.

While these regulations aim to enhance sustainability efforts, they also create new unfunded mandates to implement. Additionally, based on the Council's direction, the City and its franchised solid waste hauler have completed public outreach and agreed to a meet and confer process for future annual consumer price index changes.

It is requested that the City Council consider approving Amendment No. 2 to the existing franchise agreement to address these new recycling mandates and Resolution 2022-51 related to maximum permitted solid waste/recycling services rates within the City. As proposed, any rate adjustments would go into effect beginning July 1, 2022 and be advertised in advance using solid waste billing inserts and City outreach channels.

BACKGROUND:

The State legislature adopted SB 1383 in September 2016 to set methane emissions reduction targets for California in an effort to reduce emissions of short-lived climate pollutants by reducing the amount of organic materials sent to landfills and direct millions of meals to the 1 in 5 Californians experiencing food scarcity. As a result of this regulatory requirement, cities throughout the State have been mandated to reduce organic waste disposal and develop alternative measures to encourage recycling and reuse programs. Failure to meet many of these requirements could subject the City to fines and penalties.

DISCUSSION:

Following the City Council's direction on February 1, 2022, the following measures have been completed:

Community Engagement and Outreach
• CalRecycle provided a presentation at the City Council meeting on February 1, 2022 to describe the requirements of SB 1383
• Staff hosted a public workshop on this topic at the February 1, 2022 City Council Meeting • Staff held another special community workshop on May 4, 2022, at 7 pm, via Zoom.

At the public workshops, staff provided detailed information on the food scrap recycling requirements and associated costs that will be required to manage the State’s unfunded mandated program and rate increase projections slated for July 1, 2022 should Council approve the contract amendments. Moreover, thirty-seven attendees participated these workshops to provide feedback, ask questions and have staff provide answers.

Proposed Amendment to Franchise Agreement to Implement SB 1383 Organics Program • Residential collection of food scraps and other organic materials would be placed in green barrels instead of solely landscaping waste. Materials would be transported to the Athens American Organics composting facility for diversion. This will require the purchase of new equipment, vehicles and staff to implement. • Athens and City staff will continue to work cooperatively in preparing and distributing outreach and education to residents, commercial businesses and multi-family residential units on how to recycle organic materials.
• Athens will provide data management and software enhancements to ensure Statewide reporting requirements are met.
• Athens will aid the City in promoting Edible Food Recovery by providing educational materials created by the SGVCOG’s Edible Food Recovery program to customers and visitors to their website. • Athens will ensure compliance with organic procurement requirements by utilizing Renewable Natural Gas (RNG) in collection vehicles when it becomes readily available and providing compost for use within the community.
• Athens will perform quarterly monitoring of barrels to ensure low contamination rates, which will support the successful processing of the food and organic materials into compost.

In addition to these implementation activities, the following community benefits have been tentatively agreed upon by both parties:
• Athens Services will provide Organic Recycling Services from January 1, 2022 to June 30, 2022 at no charge to customers. This represents a one-time cost savings of $281,000. • Athens will provide electronic waste collection services four times per year at a value of $25,000 per year. • Athens will provide twice a year Downtown Sidewalk pressure washing at a value of $15,000 per year. • Athens will provide bins and collection services at the City’s Recycling Center at a value of $25,000 per year.

To reflect these proposed amendments and community benefits, the draft amendment to the existing solid waste and recycling franchise agreement includes the following proposed language changes:
• Addition of language related to organics recycling programs in accordance with State requirements. • Inclusion of a six month program cost waiver to ensure compliance with the provisions of SB 1383 beginning January 1, 2022.

• Use of the Garbage and Trash Collection Consumer Price Index + 1% for annual rate adjustments. This index better reflects cost factors affecting waste hauling services and provision that if CPI + 1% exceeds 6% then City and Athens Services would meet and confer. • To fully implement all requirements and comply with SB 1383, an increase in refuse rates will be necessary. A residential refuse rate increase of 11% would be required, and would equal a net increase of $3.68 per month. Commercial and multi-family properties would see an increase of 1.3%, which would equal a net increase of $2.48 per month. To reduce fiscal impacts on residents and business, staff is recommending a phased approach to rate increases. Beginning July, 1 2022 and each July 1st thereafter, until July 1, 2025, the rate increase would include a step increase in addition to the annual change in CPI + 1% for residential properties. A similar step increase would take effect for commercial and multi-family properties in addition to the annual change in CPI + 1%, as well as the phased rate increases approved in December 2019.

Customer
Class
SB 1383 Net
Cost Increase
Required
Step-in
Increase
July 2022
Step-in
Increase
July 2023
Step-in
Increase
July 2024
Step-in
Increase
July 2025
Residential $3.68 $1.46 $0.74 $0.74 $0.74
Commercial $2.48 $0.98 $0.50 $0.50 $0.50
Multifamily $2.48 $0.98 $0.50 $0.50 $0.50
The table below list current rates, proposed rates for Fiscal year 2023 and projected rates for out-years (depending on CPI changes).

Service Level Current
FY 23
Proposed
7/1/22
FY24
Projected
7/1/23
FY25
Projected
7/1/24
FY26
Projected
7/1/25
Residential
90 Gallon $37.31 $40.73 $43.57 $46.63 $49.84
Residential -
Senior/Low
Income Discount
30 Gallon
$32.05 $35.27 $37.84 $40.66 $43.64
Commercial &
Multifamily
(3yd, 1 pickup
per week)
$215.92 $227.61 $238.89 $251.79 $265.13
*Note: rate increases listed above, do not include rates set in December 2019 for AB 1826 implementation which will continue to be added to Commercial/MFR rates annually.

Staff has completed negotiations and additional community outreach as directed by the City Council. It is recommended that the City Council approve Amendment No. 2 to the Franchise Agreement and to adopt Resolution CC 2022-51 related to maximum permitted solid waste and recycling collection rates to comply with the State’s SB 1383 Requirements. As mentioned above, failure to meet many of these requirements could subject the City to fines and penalties.

FISCAL IMPACT:

There is no increase to the City’s General Fund. As noted above, the residential curbside rate for 90-gallon containers would increase at the end of the phase-in period (July 2025) by a total of $3.68 per month while the commercial and multifamily rate for a 3-yard bin would increase by $2.48 per month.

Additionally, rate payers would receive a one-time cost savings of $281,000 and approximately $65,000 in annual service enhancements while preserving all of the prior negotiated franchisee payments.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

ATTACHMENTS:

Attachment A - Amendment No. 2 to the Amended & Restated Exclusive Franchise Agreement_Athens Services 05172022
Attachment B - Resolution CC 2022-51 Rates 07012022
Respectfully submitted,

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AMENDMENT NO. 2

TO THE AMENDED AND RESTATED

EXCLUSIVE FRANCHISE AGREEMENT BY AND BETWEEN

CITY OF COVINA AND

ARAKELIAN ENTERPRISES, INCORPORATED
THIS AMENDMENT NO. 2 TO THE AMENDED AND RESTATED EXCLUSIVE

FRANCHISE AGREEMENT BY AND BETWEEN CITY OF COVINA AND ARAKELIAN ENTERPRISES, INCORPORATED (“Amendment No. 2” or “Amendment”), effective as of the date specified in Section 1 hereof, is made and entered into by and between the CITY OF COVINA (“CITY”) and ARAKELIAN ENTERPRISES, INC., DBA ATHENS SERVICES (“CONTRACTOR”).

RECITALS
A. CITY and CONTRACTOR (each a “Party” and collectively the “Parties”) have previously entered into that certain Amended and Restated Exclusive Franchise Agreement, dated February 15, 2011, for the exclusive provision of refuse collection services to all commercial, industrial, and residential units in CITY, as amended by that certain Amendment No. 1, effective January 1, 2020 (as previously amended, hereinafter, “Agreement”).

B. The State of California has found and declared that the amount of solid waste generated in California, coupled with diminishing disposal capacity and interest in minimizing potential environmental impacts from landfilling and the need to conserve natural resources, has created an urgent need for State and local agencies to enact and implement aggressive integrated waste management programs, and the State has, through enactment of the California Integrated Waste Management Act of 1989 and subsequent related legislation, including but not limited to the Jobs and Recycling Act of 2011 (AB 341), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016, approved by the Governor on September 19, 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in landfill disposal and to maximize the use of feasible waste reduction, reuse, recycling, and composting options in order to reduce the amount of material that must be disposed.

C. SB 1383 and the Short-Lived Climate Pollutants: Organic Waste Reduction Regulations developed by the California Department of Resources Recycling and Recovery and adopted in 2020 (“SB 1383 Regulations”) establish regulatory requirements for jurisdictions, generators, haulers, solid waste facilities, and other entities to support achievement of the Statewide organic waste disposal reduction targets.

D. The SB 1383 Regulations require CITY to adopt and enforce an ordinance or enforceable mechanism to implement relevant provisions of the SB 1383 Regulations.

E. CITY adopted Ordinance No. 21-08 (“Ordinance”) on November 16, 2021, to implement relevant provisions of the SB 1383 Regulations by amending the Covina Municipal Code to add Chapter 8.10 (Mandatory Organic Waste Disposal Reduction).

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F. The City Council adopted Resolution CC 2021-142, implementing a Recovered Organic Waste Product Procurement Policy on December 21, 2021.

G. The SB 1383 Regulations require CITY to implement collection programs for organic waste, and in connection therewith meet processing facility requirements, conduct contamination monitoring, provide education and outreach, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements of the SB 1383 Regulations. CITY has chosen to delegate some of its responsibilities to CONTRACTOR, acting as CITY’s designee, through this Amendment No. 2, and CONTRACTOR desires to take on these responsibilities and provide organic waste collection services in CITY in compliance with the SB 1383 Regulations.

H. CITY and CONTRACTOR desire to amend the Agreement as set forth herein.

AGREEMENT
In consideration of the foregoing and of the mutual covenants of the Parties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to amend the Agreement as follows:

SECTION 1. EFFECTIVE DATE OF AMENDMENT
This Amendment No. 2 shall be effective as the date on which all of the following have occurred:
(i) the Amendment has been approved by the City Council; (ii) the Amendment has been executed on behalf of the CITY by the person authorized to enter into this Amendment; and (iii) the Amendment has been executed on behalf of the CONTRACTOR by the person authorized to enter into this Amendment.

SECTION 2. SCOPE OF FRANCHISE
A. The first paragraph of Section 2.02 of the Agreement is amended to read as follows:
“The franchise granted to CONTRACTOR shall be exclusive except as to the following categories of Refuse, Recyclable Materials and Organic Waste listed in this Section 2.02. The granting of this franchise shall not preclude the categories of Solid Waste, Recyclable Materials and Organic Waste listed below from being delivered to and collected and transported by others in the manner specifically described, provided that every Residential, Commercial and Industrial Unit within CITY shall be required to maintain service equivalent to other similar residences, commercial establishments or industrial facilities.”
B. Paragraph (e) of Section 2.02 of the Agreement is amended to read as follows:
“(e) A property owner or their construction contractor may utilize their own trucks to remove C&D from a construction site; provided

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that such C&D must be delivered to a facility that is approved by CITY and capable of diverting the percentage of material stipulated in CITY’s C&D Ordinance (Ordinance 18-03). Property owners or their construction contractors not utilizing their own trucks or not achieving the required diversion on a construction site must contract for service with CONTRACTOR.”
SECTION 3. COLLECTION SERVICE PROGRAMS
Section 3.03, Article IV, and the first paragraph of Section 10.02 of the Agreement shall be deleted in their entirety and replaced with a new Article IV to read as follows:
“Article IV. COLLECTION SERVICE PROGRAMS
Section 4.01 Collection Service Programs
CONTRACTOR shall provide collection, processing,
transportation, and disposal services to Residential, Commercial, and Industrial Units in accordance with Exhibit H, attached hereto and incorporated by this reference.”
SECTION 4. ADDITIONAL SERVICES AT CITY FACILITIES
A. Paragraph (a) of Section 6.01 of the Agreement is amended to read as follows:
“(a) CONTRACTOR shall provide, at its sole expense, collection services under this Agreement for all existing and future CITY facilities (including by way of example, but not limited to, City Hall, City Yard, Parks, Police and Fire Building, Library, Recycle Center, Senior Center, Community Center, Scout House, and CITY street receptacles) and shall provide necessary Bins as required, free of charge, in accordance with a collection schedule to be established by CITY’s City Manager or his designee.”
B. Paragraphs (e) and (f) are added to Section 6.01 of the Agreement to read as follows:
“(e) CONTRACTOR shall, at its sole expense, collect four (4) ewaste “low boys” roll-off containers at the Covina City Public Works Yard each calendar year, beginning with the year that commences on January 1, 2022. CONTRACTOR shall collect one “low boy” container no greater than 10 cubic yards in size per pickup. Such pick-ups shall occur on dates and times mutually agreed upon by CITY and CONTRACTOR. CITY shall pay
CONTRACTOR its then-existing rate for the collection of additional roll-off containers.”

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“(f) CONTRACTOR shall, at its sole expense, provide pressure washing services at sidewalks, parkways, and public spaces in the downtown area of CITY as set forth in Exhibit I, attached hereto and incorporated by this reference, twice annually, beginning with the year that commences on January 1, 2022, provided that CITY shall indemnify, defend, and hold harmless CONTRACTOR for all claims, causes of action, demands, damages, costs, losses, or expenses (‘Losses’), including but not limited to attorney fees, that may result from property damage to sidewalks and other public improvements caused by such pressure washing services, provided such Losses do not arise from the sole negligence or willful misconduct of CONTRACTOR.”
SECTION 5. COLLECTION EQUIPMENT
Paragraph (a) of Section 10.05 of the Agreement is amended to read as follows:
“(a) CONTRACTOR shall provide an adequate number of
vehicles for regular collection services. All vehicles shall be registered with the Department of Motor Vehicles of the State of California; shall be kept clean, safe, and in good repair; and shall keep all collected materials covered during transportation. Such vehicles shall be kept and maintained free from any leaks, including, without limitation, leaks of hydraulic oil, brake fluid, engine oil, fuel, or transmission fluid. Each vehicle shall have clearly visible on each side the identity and telephone number of CONTRACTOR. All regular collection vehicles utilized in CITY shall be painted a uniform color. All Bins shall be painted a uniform color also and repainted, repaired, and/or cleaned as necessary to avoid the production of offensive odors or a dilapidated or rusted appearance.” SECTION 6. TERM
In order for Contractor to recover costs associated with the “phase-in” of rate adjustments specified in Exhibit B, Section C of the Agreement, as modified in this Amendment No. 2, Paragraph (b) of Article XVII of the Agreement (Term of This Franchise Agreement) is amended to add the following sentence at the end:
“Neither party shall be permitted to issue any written notice of intent to terminate the one-year extension provision prior to July 1, 2038.” SECTION 7. SCHEDULE OF RATES (EXHIBIT A)
Commencing on July 1, 2022, Exhibits A, A-1, and A-2 of the Agreement are hereby deleted and replaced in their entirety with Exhibit A “MAXIMUM SERVICE RATES” attached hereto.

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SECTION 8. ADJUSTMENT OF RATES (EXHIBIT B)
Commencing on July 1, 2022, Exhibit B of the Agreement is hereby deleted and replaced in its entirety with Exhibit B “RATE ADJUSTMENTS” attached hereto.

SECTION 9. RECYCLABLE MATERIALS TO BE COLLECTED (EXHIBIT C) Commencing on July 1, 2022, Exhibit C of the Agreement is hereby deleted and replaced in its entirety with Exhibit C “LIST OF ACCEPTABLE SOURCE SEPARATED RECYCLED MATERIALS” attached hereto.

SECTION 10. GREEN WASTE MATERIALS TO BE COLLECTED (EXHIBIT D) Commencing on July 1, 2022, Exhibit D of the Agreement is hereby deleted and replaced in its entirety with Exhibit D “LIST OF ACCEPTABLE SOURCE SEPARATED GREEN CONTAINER WASTE” attached hereto.

SECTION 11. STREET SWEEPING SERVICES (EXHIBIT E)
Commencing on July 1, 2022, Exhibit E of the Agreement is hereby deleted and replaced in its entirety with Exhibit E “STREET SWEEPING SERVICES” attached hereto.

SECTION 12. AB 939 REPORTING QUANTITIES (EXHIBIT F)
Commencing on July 1, 2022, Exhibit F of the Agreement is hereby deleted in its entirety. For the avoidance of doubt, references to Exhibit F in Sections 1.11, 4.03, and 11.01(a) shall have no force and effect.

SECTION 13. SORT LINE ANALYSIS (EXHIBIT G)
Commencing on July 1, 2022, Exhibit G of the Agreement is hereby deleted in its entirety. For the avoidance of doubt, references to Exhibit G in Sections 1.11 and 11.03 shall have no force and effect.

SECTION 14. COLLECTION SERVICE PROGRAM (EXHIBIT H)
Commencing on July 1, 2022, Exhibit H “COLLECTION SERVICE PROGRAM” is hereby added to the Agreement.

SECTION 15. PRESSURE WASHING MAP (EXHIBIT I)
Commencing on July 1, 2022, Exhibit I “PRESSURE WASHING MAP” is hereby added to the Agreement.

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SECTION 16. DELETED PROVISIONS
In addition to Section 3.03, Article IV, and the first paragraph of Section 10.02 of the Agreement, the following sections or provisions are also hereby deleted from the Agreement in their entirety:

A. Section 4.05 (Compost for CITY Use)
B. Section 20.04 (Rates and Adjustments for Recycling Services) C. Section 20.06 (Payment to CONTRACTOR for Billing Services) D. Section 20.07 (Recycling Services Payment to CITY)
SECTION 17. DUE EXECUTION
The person(s) executing this Amendment No. 2 on behalf of a Party hereto warrant(s) that (i) such Party is duly organized and existing; (ii) such person(s) are duly authorized to execute and deliver this Amendment No. 2 on behalf of said Party; (iii) by so executing this Amendment No. 2, such Party is formally bound to the provisions of this Amendment No. 2; and (iv) entering into this Amendment No. 2 does not violate any provision of any other agreement to which said Party is bound.

SECTION 18. ENTIRE AMENDMENT
This Amendment No. 2 contains the entire agreement and understanding between the Parties with respect to the subject matter of this Amendment No. 2 and supersedes any and all prior or contemporaneous oral and written representations, warranties, agreements, and understandings between the Parties concerning the subject matter of this Amendment No. 2.

SECTION 19. FULL FORCE AND EFFECT
Other than as set forth in this Amendment No. 2, the terms of the Agreement shall remain unchanged and in full force and effect. In the event of any conflict between the Agreement and this Amendment No. 2, this Amendment No. 2 shall apply.

SECTION 20. COUNTERPARTS
This Amendment No. 2 may be executed in counterparts, each of which shall be considered an original.
[Signature page follows on next page]

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IN WITNESS WHEREOF, CITY and CONTRACTOR have caused this Amendment No. 2 to be executed and attested by their respective officers hereunto duly authorized.

CITY OF COVINA,
a Municipal Corporation
ARAKELIAN ENTERPRISES, INC.,
dba ATHENS SERVICES
By: _________________________________
Name: _______________________________
Title: Mayor
Dated: _______________________________
By: _________________________________
Name: _______________________________
Title: ________________________________
Dated: _______________________________
ATTEST:

By: _________________________________
Name: _______________________________
Title: City Clerk
Dated: _______________________________
APPROVED AS TO FORM:

By: _________________________________
Name: _______________________________
Title: City Attorney
Dated: _______________________________

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EXHIBIT A

MAXIMUM SERVICE RATES

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EXHIBIT B

RATE ADJUSTMENTS
A. Maximum Service Rates. Commencing July 1, 2022, rates for services provided to customers shall be specified in Exhibit A of this Agreement. For the avoidance of doubt, Exhibit A is calculated pursuant to a methodology utilizing the Consumer Price Index for Trash and Garbage Collection (CUUR0000SEHG02), U.S. City Average (not seasonally adjusted) plus one percent (i.e., Trash CPI + 1), and includes supplemental adjustments such net residential and commercial rates are further adjusted by +$1.46 and +$0.98, respectively.

B. Annual Rate Adjustment. Commencing July 1, 2023, and annually thereafter on July 1, the rates provided in Exhibit A shall be automatically adjusted by the Annual Rate Adjustment. CONTRACTOR shall notify CITY of the annual rate increase by April 30 of each contract year. For the purposes of this Exhibit, “Annual Rate Adjustment” means the annual adjustment of Maximum Service Rates set forth in Exhibit A by the percentage increase in CPI for the prior 12-month period (March of the prior year to March of the current year) plus one percent (1%) (i.e., Trash CPI +1), and “CPI” or “Trash CPI” means the Consumer Price Index for Trash and Garbage Collection (CUUR0000SEHG02), U.S. City Average (not seasonally adjusted), or an equivalent index approved by mutual agreement in the event said index is no longer published. If the Annual Rate Adjustment exceeds six percent (6%) in any given year, the Parties shall meet and confer to discuss options to modify rate adjustment calculations.

C. Phase-in. Notwithstanding any provision in the Agreement to the contrary, for the period beginning July 1, 2022, and ending June 30, 2026, in addition to any other rate adjustment permitted under this Agreement, the rates provided in Exhibit A shall be subject to supplemental adjustments such that net residential rates increase by $3.68 and net commercial and multifamily rates increase by $2.48, as specified below.

Period
Beginning
Residential Commercial/Multifamily
Supplemental Adjustment (Net) Supplemental Adjustment (Net) July 1, 2022 +$1.46 +$0.98
July 1, 2023 +$0.74 +$0.50
July 1, 2024 +$0.74 +$0.50
July 1, 2025 +$0.74 +$0.50
Total +$3.68 +$2.48
D. Special Rate Adjustment. In the event circumstances beyond the control of CONTRACTOR impose or generate extraordinary costs in the performance of the Agreement, CONTRACTOR may petition CITY to determine if an adjustment in compensation is warranted to avoid undue financial hardship on CONTRACTOR. For each request, CONTRACTOR shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to CITY with support for assumptions made by CONTRACTOR in preparing the estimate of extraordinary costs. CITY shall review CONTRACTOR’s request and, in CITY’s sole judgment, make the final determination on the adjustment.

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EXHIBIT C

LIST OF ACCEPTABLE SOURCE SEPARATED RECYCLED MATERIALS

PLASTICS
• Plastics number 1 as bottle or clamshell
• Plastics numbers 2, 4, 5 & 7
• Soda, juice, & water bottles
• Beverage & detergent jugs
METALS
• Aluminum foil & pie tins (clean)
• Scrap metal
• Steel cans, dishware, etc.
• Tin & aluminum cans
PAPER (clean & dry)
• Envelopes
• File folders (paper only)
• Junk mail & magazines
• Newspaper
• Paper (white & mixed color)
• Paper grocery bags
• Telephone
• Acceptable (but may not be recycled)
o Cereal boxes (no plastic insert)
o Egg cartons (paper only & clean)
o Frozen food boxes
o Soup, milk, & juice cartons
CARDBOARD (or similar)
• Cardboard & corrugated boxes
GLASS
• Amber, green, & mixed-color glass
• Clear food glass jars
• Soda, tea, & liquor bottles
No window glass, porcelain, or non-food related glass.

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EXHIBIT D

LIST OF ACCEPTABLE SOURCE SEPARATED GREEN CONTAINER WASTE

GREEN WASTE
• Flower & hedge trimmings
• Grass clippings
• Leaves & branches
• Lumber, scrap wood, & plywood (not painted or treated) • Weeds

FOOD SCRAPS
• Bread, rice, & pasta
• Cheese & dairy
• Coffee grounds & filters
• Fruits & vegetables
• Flowers & herbs
• Meat, bones, & poultry
• Seafood & soft shells
• Pet food (non-medicated)
FOOD-SOILED PAPER*
• Food-stained paper
• Paper egg cartons
• Paper napkins & kitchen paper towels
• Pizza boxes
• Plates
• To-go boxes (no coating)
• Wooden & fiber-based utensils
*Must be 100% fiber-based. No materials with petroleum based plastic, wax, or bio-plastic coating, liner, or laminate.

ORGANIC TEXTILES
• Organically derived textiles

UNACCEPTED ITEMS
• All plastics
• Cacti, succulents, & yucca

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• Compostable plastics (bioplastics)
• Coffee cups & pods
• Fats, oils, & grease
• Food stickers (please remove from items)
• Gloves
• Hard shells (clams, mussels, oysters)
• Medication
• Palm fronds
• Paper napkins & towels with cleaning chemicals
• Parchment & wax paper
• Pet waste
• Rocks & soil
• Rubber bands & twist ties
• Tea bags
• Textiles
• Tissues & wet wipes

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EXHIBIT E

STREET SWEEPING SERVICES
(SEE 2011 AMENDED AND RESTATED AGREEMENT)

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EXHIBIT F

INTENTIONALLY OMITTED

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EXHIBIT G

INTENTIONALLY OMITTED

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EXHIBIT H

COLLECTION SERVICE PROGRAMS
A. Definitions. Unless specified otherwise, all capitalized terms in this Exhibit shall refer to those defined terms specified in Chapter 8.10 (Mandatory Organic Waste Disposal Reduction) of the Covina Municipal Code and 14 California Code of Regulations Section 18982.

If any term defined in this Amendment No. 2 has been previously defined in the Agreement, the definition in this Amendment No. 2 shall control. In the event of a conflict between a definition in this Exhibit and a definition in 14 California Code of Regulations Section 18982, the definition in Section 18982 shall control.

B. Single-Family Collection Services.

1. Single-Family Collection Program. CONTRACTOR shall, in accordance with the rates set forth in Exhibit A, provide to each Single-Family Generator, a three-container collection program of one black 90-gallon Barrel for the separate collection of Black Container Waste, one blue 90-gallon Barrel for the separate collection of Source Separated Recyclable Materials, and one green 90-gallon Barrel for the separate collection of Source Separated Green Container Organic Waste. For Single-Family Generators that have not previously subscribed for mandatory service, no fees shall be imposed for the first delivery of Barrels or Bins provided pursuant to the collection programs in this Exhibit, except as provided in the Agreement. As an alternative, low-income Generators at Single-Family residences, as determined by CITY, can elect to receive a black 30-gallon or 60-gallon Barrel for the collection of Black Container Waste. In the event, however, that more than five percent (5%) of Single-Family Generators in CITY request 30-gallon or 60-gallon Barrels, CONTRACTOR and CITY will meet and confer to agree upon pricing for additional 30-gallon and 60-gallon Barrels above the five percent (5%) threshold. For Generators residing at premises of fewer than five (5) units and receiving Barrel service on a doorto-door basis Generator may request, either two 60-gallon Barrels, one black, one blue, and one 90-gallon green Barrel or three 90-gallon Barrels, provided that the Barrel size and number to be distributed to such Generators will be determined jointly by CONTRACTOR and CITY and in accordance with SB 1383 and the SB 1383 Regulations.

2. Automation; Collection Schedule. CONTRACTOR shall provide automated curbside collection service for the collection of Black Container Waste, Source Separated Recyclable Materials, and Source Separated Green Container Organic Waste to each Single-Family customer one (1) time per week. Barrels shall be placed curbside not before twentyfour (24) hours prior to the scheduled collection day (but before 6:00 a.m.) and removed within twenty-four (24) hours after the collection day.

3. Disabled Customers; Roll-out Service. CONTRACTOR shall provide Barrel roll-out service for disabled customers at no charge. These customers shall be defined as persons who qualify and receive a written letter from their physician indicating that they are physically unable to roll out Barrels used for Black Container Waste, Source Separated Recyclable Materials, and Source Separated Green Container Organic Waste collection. CONTRACTOR shall provide free manual roll-out services for this category of residents due to their physical limitations. For customers not qualified for free roll-out service, CONTRACTOR shall provide

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roll-out service to those who order and agree to pay for such service. The monthly charge for such services is set forth in Exhibit A of this Agreement. The following conditions shall apply to all paid roll-out services:
a. Barrels must be accessible, and any debris surrounding Barrels will not be picked up by CONTRACTOR’s personnel.
b. Roll-out service shall be available at rates specified in Exhibit A for Barrels located fifty (50) feet or less from the truck pick-up point (it is understood that this distance will cover the majority of households requesting this service). c. Rates for roll-out service as established in Exhibit A shall be subject to a rate adjustment pursuant to Exhibit B.

4. Unauthorized Uses. If any Barrel is not used by the customer in the manner specified by the automated collection program, CONTRACTOR shall use a bilingual (English, Spanish) red tag to advise the customer of proper use.

5. Service Changes. CITY and CONTRACTOR shall work together to prevent the frequent change in number and size of Barrels issued to Single-Family customers. This may involve the application of a fee for Barrel delivery. The amount of the fee, and criteria for its application, must be approved by CITY before the fee is applied.

C. Commercial, including Multifamily Dwelling, Collection Services.

1. Commercial Collection Program. CONTRACTOR shall, in accordance with the rates set forth in Exhibit A, provide to each Commercial Business, including Multi-Family Dwellings, a two-container collection program for the separate collection of Gray Container Waste and Source Separated Green Container Organic Waste. For Commercial Generators that have not previously subscribed for mandatory service, no fees shall be imposed for the first delivery of Barrels or Bins provided pursuant to the collection programs in this Exhibit, except as provided in the Agreement. CONTRACTOR shall provide automated collection service for the collection of Gray Container Waste and Source Separated Green Container Waste to all Commercial Businesses, including Multi-Family Dwellings, at least one (1) time per week for Barrel collection service and at a frequency of one (1) time per week, two (2) times per week, three (3) times per week, four (4) times per week, five (5) times per week, and six (6) times per week for Bin service.

2. Gray Containers. CONTRACTOR shall offer and provide Bin collection service for Gray Container Waste in Bin size capacities of one-and-a-half (1.5) cubic yards and up to six (6) cubic yards, and collection service to each customer for each Bin size. Up to thirty (30) cubic yard Roll-Off Bin service shall also be provided upon request. Customers shall have a right to change Bin sizes and frequency of service upon thirty (30) days’ notice, and CONTRACTOR shall provide such service and adjust the customer rate to correspond with the service level changes according to the rates established in the Agreement. CONTRACTOR agrees that to the extent feasible, in the determination of CITY, Commercial Businesses, including Multi-Family Dwellings, shall be serviced by Bins instead of Barrels.

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3. Green Containers. CONTRACTOR shall offer and provide, at a minimum, one (1) 64-gallon container for Source Separated Green Container Organic Waste to each Commercial customer, including Multi-Family Dwellings. CONTRACTOR may adjust, subject to the reasonable disapproval of CITY, the foregoing default level of service to any one of the following Bin types for Source Separated Green Container Organic Waste: one-and-a-half (1.5) cubic yards and up to two (2) cubic yards.

4. Location of Bins for Collection. CONTRACTOR shall provide Bins for Commercial customers, including Multi-Family Dwellings, whenever customers request their use, and shall not impose any fee or charge for delivery of such Bins, other than in connection with temporary or roll-off services. Each Bin shall be placed in an accessible, outside location on a hard surface according to individual agreement. CONTRACTOR may decline to collect Solid Waste in Bins not so placed.

5. Discounts. Beginning January 1, 2022, CONTRACTOR may bill Commercial customers, including Multi-Family Dwellings for Organic Waste collection services a fee not to exceed the “Organic Services” rates provided in Exhibit A, less the discount provided in the table below:

Calendar Year Discount
2022 75%
2023 50%
2024 25%
2025 and beyond 0%
If Organic Waste volumes call for a roll-off capacity, CONTRACTOR may provide roll-off service at a fee not to exceed the fees set forth in the “Organic Services” rates in Exhibit A.

6. Service Changes. CONTRACTOR reserves the right to inspect, audit, and review the service level (size, quantity of container(s) and weekly frequency of pick-up) of collection services at each Commercial Business, including Multi-Family Dwellings. CONTRACTOR may reduce or increase the service level based on the inspection and audit. In the event of any dispute between a Generator and CONTRACTOR regarding a reduction or increase in the service levels, the matter shall be resolved by the City Manager, whose decision shall be final.

D. Container Color and Labeling.

1. Container Color. Notwithstanding any provision in the Agreement to the contrary, no later than January 1, 2036 (or the earlier of the end of the useful life of a container purchased prior to January 1, 2022 that is required to be replaced), all containers provided to Generators by CONTRACTOR must comply with the color requirements included below or otherwise specified in 14 CCR Section 18982 or 14 CCR, Division 7, Chapter 12, Article 3. Colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation, and the lids and bodies shall be uniform for each container type, as follows: (i) Black Container bodies and/or lids shall be black or gray; (ii) Gray Container bodies and/or lids shall be black or gray; (iii) Blue Container bodies and/or lids shall be blue; and (iii) Green Container bodies and/or lids shall

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be green. Hardware such as hinges and wheels on the containers may be a different color than specified herein.

2. Container Labeling. Beginning January 1, 2022, CONTRACTOR shall imprint or place a label on the body or lid of each new container that has been provided to a Generator that includes language or graphic images, or both, indicating the primary materials accepted and the primary materials prohibited in that container. Imprints or labels shall clearly indicate items that are Prohibited Container Contaminants for each container.

E. Collection, Processing, and Transportation of Discarded Materials.

1. Facilities. CONTRACTOR shall to the extent applicable: (i) collect and deliver Source Separated Green Container Organic Waste to an Organic Waste Processing Facility selected by CONTRACTOR for processing and diversion; (ii) collect and deliver Source Separated Recyclable Materials to an Material Recovery Facility, as defined in the Agreement (“MRF”), or certified recycling facility selected by CONTRACTOR, for recycle and Recovery Processing of that material; (iii) collect and deliver Black Container Waste to a Landfill selected by CONTRACTOR, but at CONTRACTOR’s option, divert to an MRF or a certified transformation facility (refuse to energy) selected by CONTRACTOR; (iv) collect and deliver all Gray Container Waste and roll-off containers, to a High Diversion Organic Waste Processing Facility selected by CONTRACTOR for mixed-waste Processing and diversion; (v) for C&D collected by CONTRACTOR, collect and deliver all such material to a certified facility selected by CONTRACTOR that meets seventy-five percent (75%) diversion of all C&D collected by CONTRACTOR in CITY; (vi) collect and deliver all material from roll-off inert containers to a certified inert facility selected by CONTRACTOR for Processing and diversion; and (vii) to the extent not addressed in the foregoing, where applicable, deliver all Source-Separated Solid Waste to a certified facility selected by CONTRACTOR for Processing and diversion. Through written notice to CITY annually on or before July 1 of each year, commencing July 1, 2022, and at least thirty (30) days prior to selecting a different facility or facilities, CONTRACTOR shall identify the facility or facilities to which it will transport Organic Waste, and the available capacity at such facility or facilities. All facilities selected by CONTRACTOR hereunder shall comply with SB 1383 and the SB 1383 Regulations.

2. Hauler Routes. Routes for collection shall be established by CONTRACTOR for the following: (i) Single-Family Generators using a Black Container; (ii) Single-Family Generators using a Blue Container; (iii) Commercial Businesses, including MultiFamily Dwellings, using a Gray Container; (iv) Single-Family Generators and Commercial Businesses, including Multi-Family Dwellings, using a Green Container; and (v) customers requesting Bulky Waste collection. CONTRACTOR shall not include stops outside of CITY’s collection service area in a Hauler Route or commingle materials collected in CITY with materials collected outside CITY without the prior written approval of CITY. CONTRACTOR shall provide CITY written notice of any changes to the Hauler Routes at least thirty (30) days in advance.

3. Organic Waste Routes. Unless prohibited by CalRecycle, CONTRACTOR may collect Source Separated Green Container Organic Waste from multiple cities within one Source Separated Green Container Organic Waste route and, if so, will report Organic Waste tonnage among the cities by volume or by such other method required by CalRecycle. The

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restriction regarding multiple CITY collections in this Exhibit at Section E.2 of the Agreement is expressly not applicable to Source Separated Green Container Organic Waste collection.

4. Uncontainerized Green Waste; Community Composting. CONTRACTOR acknowledges that Generators may additionally manage their Organic Waste by preventing or reducing their Organic Waste, managing Organic Waste on-site, using the Uncontainerized Green Waste and Yard Waste Collection Service and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).

5. Records. CONTRACTOR shall maintain accurate records of the quantities of discarded materials transported to and accepted at any facility, that include sufficient information for CITY to comply with CITY’s recordkeeping and reporting requirements pursuant to the SB 1383 Regulations.

F. Acceptable Source Separated Recyclable Materials and Source Separated Green Container Organic Waste.

1. Acceptable Source Separated Recyclable Materials. The list of Source Separated Recyclable Materials that are to be accepted for collection in a Blue Container is set forth in Exhibit C to this Agreement. CITY and CONTRACTOR agree that the list of acceptable Source Separated Recyclable Materials may be modified from time to time with the written approval of CITY.

2. Source Separated Green Container Organic Waste. The list of Source Separated Green Container Organic Waste that isto be accepted for collection in a Green Container is set forth in Exhibit D to this Agreement. CITY and CONTRACTOR agree that the list of acceptable Source Separated Green Container Organic Waste may be modified from time to time with the written approval of CITY.

G. Edible Food Recovery.

1. Identification of Commercial Edible Food Generators. Not later than fortyfive (45) days after the effective date of Amendment No. 2 to this Agreement, and annually every January 1 thereafter, CONTRACTOR shall identify customers that meet the definition of Tier One or Tier Two Commercial Edible Food Generators and provide to CITY a list of such customers, which shall include the following information: customer name, service address, contact information, Tier One or Tier Two classification, and type of business.

2. Identification of Edible Food Recovery Organizations. Not later than fortyfive (45) days after the effective date of Amendment No. 2 to this Agreement, to support CITY’s efforts to promote Edible Food Recovery programs, CONTRACTOR shall maintain the list of Food Recovery Organizations and Food Recovery Services and information about Edible Food Recovery on CONTRACTOR’s website, which is specific to CITY and shall provide a link to information about CITY’s Edible Food Recovery programs on CONTRACTOR’s website.

3. Maintain and Promote Listings. Not later than forty-five (45) days after the effective date of Amendment No. 2 to this Agreement, CONTRACTOR shall cooperate with and

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assist CITY with the distribution of information to Commercial Edible Food Generators regarding CITY’s Edible Food Recovery programs.

H. Education and Outreach. CONTRACTOR and CITY have a shared responsibility to cooperatively provide education and outreach activities, and to create and disseminate educational materials that comply with 14 CCR Section 18985.1 to Single-Family residential premises and Commercial Businesses, including Multi-Family Dwellings. CONTRACTOR may provide the education information required by this section by including it with regularly scheduled notices, education materials, billing inserts, or other information disseminated to customers.

CONTRACTOR shall maintain records of its education and outreach activities pursuant to the SB 1383 Regulations and provide this information upon request to CITY.

I. Route Reviews; Waste Evaluations.

1. Route Reviews. CONTRACTOR shall, at its sole expense, on a quarterly basis, commencing with the quarter in which the effective date of Amendment No. 2 occurs, conduct Hauler Route reviews for Prohibited Container Contaminants consistent with 14 CCR Section 18984.5(b) in a manner deemed safe by CONTRACTOR. Containers may be randomly selected along Hauler Routes. CONTRACTOR shall develop a Hauler Route review methodology in compliance with 14 CCR Section 18984.5(b) and submit it to CITY not more than annually upon the request of CITY. Upon finding Prohibited Container Contaminants in a container, CONTRACTOR shall follow the contamination protocols in paragraph J.

2. Waste Evaluations. CONTRACTOR shall, at its sole expense, at least twice per year but no more than quarterly, commencing with the quarter in which the effective date of Amendment No. 2 occurs, conduct waste evaluations that meet the requirements of 14 CCR Section 18984.5(c) with respect to waste delivered to a CONTRACTOR-owned or -controlled facility or with respect to information otherwise accessible to CONTRACTOR that permits it to perform characterization studies. CITY maintains the right to observe, or hire a third party to observe, the waste evaluations. CONTRACTOR shall develop a waste evaluation methodology in compliance with 14 CCR Section 18894.5(c), including corrective actions that may be adopted in the event of Contamination of greater than twenty-five (25%), and submit it to CITY not more than annually upon the request of CITY. Waste evaluations shall occur in two (2) distinct seasons of the year.

3. Records. CONTRACTOR shall maintain records required under 14 CCR Section 18984.6 related to its compliance hereunder. Reports shall be provided to CITY upon request.

J. Contamination Protocols.

In order to reduce the presence of Prohibited Container Contaminants, CONTRACTOR shall implement the protocols, as specified herein.

1. First and Second Contamination Events. Upon the first and second discoveries of Prohibited Container Contaminants in containers within a given calendar year, each starting January 1, and with the first calendar year starting on January 1, 2022, CONTRACTOR will collect the contaminated waste if safe to do so, and transport the contaminated waste to a

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Material Recovery Facility, as defined in the Agreement and compliant with SB 1383, and the SB 1383 Regulations for sorting or a Landfill for disposal, as applicable, and affix a “Contamination Violation Notice” in a form approved by CITY to any container with Prohibited Container Contaminants. CONTRACTOR shall also report issuance of any such notices to CITY within five (5) business days. CONTRACTOR must also contact the customer by phone, by U.S. mail, by email, in person, or by tag, to ensure that the customer has the appropriate level of service for proper collection of discarded materials.

2. Third and Fourth Contamination Events. Upon the third and fourth discoveries of Prohibited Container Contaminants in containers within a given calendar year starting January 1, the protocols specified in Section J.1 of this Exhibit shall apply.

CONTRACTOR may also elect to charge the then-maximum contamination fee set forth in Exhibit A for the discovery hereunder. For any assessed contamination fee, CONTRACTOR must provide digital/visual documentation of CONTRACTOR’s discovery thereof to customer and CITY within five (5) business days. All digital/visual documentation provided to CITY shall include date, time, address, and description of the contamination discovered.

3. Fifth and Subsequent Contamination Events. Upon each of the fifth and any subsequent discoveries of Prohibited Container Contaminants in containers within a given calendar year starting January 1, the protocols specified in Section J.2 of this Exhibit shall apply. Upon five (5) business days’ notice to CITY and customer, CONTRACTOR may also (i) increase the container size, (ii) require additional containers for excessive Container Contamination or increase collection frequency, and/or (iii) provide notice that CONTRACTOR has recommended that CITY commence any applicable code enforcement action against Generators. CITY will consult with CONTRACTOR and consider, as applicable, appropriate legal remedies against offending Generators in order to secure discontinuance of the contamination. All CITY costs of such action shall be recovered from the offending Generators.

4. Disputes. In the event of any dispute between a Generator and CONTRACTOR regarding an increase in the service levels relating to Prohibited Container Contaminants, the matter shall be resolved by the City Manager, whose decision shall be final. If a customer disputes, in writing, an assessment of a contamination fee within thirty (30) days of the assessment, CONTRACTOR will temporarily halt any such assessment and CONTRACTOR may request a ruling by the City Manager to resolve the dispute. A request by CONTRACTOR to the City Manager to rule on any such dispute must be filed within ten (10) business days of a customer’s written dispute, and CONTRACTOR must include written documentation and digital/visual evidence of ongoing overall problems. Upon receipt of such documentation, the City Manager will rule on the dispute within ten (10) business days, and the City Manager’s decision resolving the dispute between customer and CONTRACTOR will be final.

K. SB 1383 Procurement. CONTRACTOR shall procure and provide to CITY sufficient quantities of Renewable Gas generated in California, as specified in 14 CCR Section 18993.1 (“RNG”) to meet CONTRACTOR’s required portion of the CITY’s annual Recovered Organic Waste Product Procurement Target. The foregoing shall apply upon CONTRACTOR’s notice to CITY that RNG is readily available to CONTRACTOR for use in CITY.

CONTRACTOR shall maintain records of its efforts to assist CITY in satisfying its annual Organic Waste Product Procurement Target, including but not limited to records required in accordance

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with 14 CCR Section 18993.1. CONTRACTOR shall deliver compost (up to a maximum of 50 tons per year) to the City for its use. At City’s request no more than twice per year, the CITY and CONTRACTOR shall meet and confer to mutually prepare a plan for the delivery location and amounts per delivery for compost to be provided to CITY. All costs of delivering compost to CITY shall be borne by CONTRACTOR.

L. Waivers. CONTRACTOR acknowledges that pursuant to Chapter 8.10 of the Code, a Generator may submit to CITY an application(s) requesting a de minimis waiver and/or physical space waiver in accordance with 14 CCR Section 18984.11. CITY, at its discretion, may grant one or more such waivers to Generators in accordance with 14 CCR Section 18984.11, or as otherwise authorized by CalRecycle. CONTRACTOR shall cooperate with and provide support to CITY in connection with CITY’s evaluation of any application hereunder and CONTRACTOR shall adjust a Generator’s service level and billing within five (5) business days of notification from CITY that CITY has granted or rescinded a waiver.

M. Reporting. Notwithstanding any provision in the Agreement to the contrary, CONTRACTOR acknowledges that CITY is required to maintain an implementation record that documents records related to programs required by the SB 1383 Regulations. CONTRACTOR agrees, at its sole expense, to maintain accounting, statistical, and similar records related to its performance of Contractor’s express obligations required by this Exhibit and to provide the reports required by this Exhibit to CITY, and in a format maintained in the normal course of business, to assist CITY in complying with the SB 1383 Regulations. CONTRACTOR shall maintain such records in accordance with 14 CCR Section 18995.2(e). The Parties shall meet and confer if CITY elects to modify the records and reports required of CONTRACTOR pursuant to this Exhibit with respect to type of report, number, content, format (including digital submission), or frequency.

CONTRACTOR shall provide records to CITY within ten (10) business days of a request.

N. Compliance with SB 1383. CONTRACTOR will develop and maintain its Organic Waste collection services as required in this Exhibit in a manner designed to assist CITY and Generators in achieving and maintaining compliance with SB 1383 and the SB 1383 Regulations.

CONTRACTOR shall be deemed in non-compliance hereunder if CalRecycle determines that the requirements of SB 1383 or the SB 1383 Regulations are not met and the failure is: (i) due to the sole failure of CONTRACTOR to meet its obligations under this Exhibit; or, (ii) due to CONTRACTOR’s sole delay in providing information required under this Exhibit which that prevents CITY from submitting reports to CalRecycle in a timely manner. In the event of noncompliance hereunder, CITY shall be entitled to the reimbursement of penalties assessed by CalRecycle against the CITY arising therefrom.

O. Organic Waste Ordinance; Enforcement. CONTRACTOR shall coordinate with CITY by providing, upon CITY’s request, notice to CITY of any and all persons refusing Organic Waste services. CITY shall be responsible for all code enforcement actions to support compliance with SB 1383. CONTRACTOR shall not be liable for any claims, actions, obligations, demands, damages, liabilities, costs, or expenses for any damages or injuries caused by or arising from (i) the failure of Generators to accept Organic Waste services, or (ii) the suspension or termination of services upon nonpayment in whole or in part by Generators, provided CONTRACTOR reports such instances of noncompliance or nonpayment to CITY for code enforcement.

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EXHIBIT I

MAP OF DOWNTOWN SERVICE AREA FOR PRESSURE WASHING

RESOLUTION CC 2022-51

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE FRANCHISE

AGREEMENT WITH ARAKELIAN DBA ATHENS SERVICES AND

AUTHORIZING AN INCREASE IN THE MAXIMUM PERMITTED

SOLID WASTE AND RECYCLING COLLECTION SERVICES RATES

CHARGED BY ATHENS FOR SOLID WASTE COLLECTION SERVICES
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the City entered into an exclusive franchise agreement with Athens Services on January 1, 1993 and subsequently amended the agreement on February 11, 2011 to provide solid waste and recycling collection services for all solid waste generated within the City and it is the hauler’s responsibility to provide collection services, customer service, billing and fee collection services; and
WHEREAS, the City approved Amendment No. 1 to the amended and restated exclusive franchise agreement with Athens Services on December 3, 2019, which became effective on January 1, 2020, to provide organic recycling services in order to comply with AB 1826 requirements, to commercial and multifamily accounts within the City; and WHEREAS, California Assembly Bill (AB) 939 and Senate Bill (SB) 1016 require local public agencies to submit a Source Reduction Recycling Element report annually to CalRecycle summarizing its solid waste recycling progress and compliance with mandated disposal reduction goals as required by Public Resources Code Section 41812; and WHEREAS, California AB 1826 and SB 1383 require local public agencies to implement new recycling programs and beneficial reuse alternatives that divert organics materials from landfills and report on progress in meeting these requirements through annual reports to CalRecycle; and
WHEREAS, the fees charged by the City’s franchised solid waste hauler for solid waste and recycling collection services are not property-related as defined in Article XII D of the California Constitution or taxes within the scope of Articles XII A and XIII C of the California Constitution; and
WHEREAS, the City’s franchise agreement for solid waste collection services dated February 15, 2011 and subsequent Amendment No. 1, set the parameters for the establishment of service rates, including that the City’s role with respect to rate setting is to establish rate ceilings and strict adjustment formulas to govern rate increases for the protection of customers related to solid waste collection services and programs; and
WHEREAS, effective July 1, 2022, the previous CPI index shall be replaced with CPI – Garbage and Trash Collection Index, herein referred to as “Trash Index”. This is a national consumer-based cost index calculated by the Bureau of Labor and Statistics from their monthly survey of consumer trash costs and reported by private firms, municipalities and other sources.

Resolution CC 2022-51 Page 2 of 4
The Trash Index focuses on the actual costs associated with the solid waste industry and all costs associated with providing that service. This CPI index is a component of the national CPI and LA Area CPI. Annually beginning July 1, 2022, Athens Services shall be entitled to subsequent annual rate adjustments in “Trash Index” + 1% (calculated based on the change from the prior March to current March index) in accordance with Amendment No. 2 of the exclusive franchise agreement between the City and Athens Services. If the “Trash Index” + 1% should exceed a 6% increase in any given year, then both the City and hauler shall meet to confer in order to secure an equitable rate for customers; and
WHEREAS, to further implement new additional provisions of SB 1383 that were not previously included in rates adopted December 3, 2019, commercial and multi-family residential rates shall be increased by a net rate of $0.98 on July 1, 2022 and shall be increased annually for 3 years (last increase July 1, 2025) by a net rate of $0.50 for a total net increase of $2.48 to implement the additional organic recycling program. Provisions related to phased billing of the regular organics rate, adopted on December 3, 2019 (see Resolution 2019-121), will prevail in Amendment No. 2. The subsequent increase shall be clearly delineated on billing invoices as relating to SB 1383; and
WHEREAS, effective July 1, 2022, residential solid waste and recycling collection rates shall be increased by a net rate of $1.46 on July 1, 2022 and shall be increased annually for 3 years (last increase July 1, 2025) by a net rate of $0.74 for a total net increase of $3.68 to implement an organics recycling program as a result of SB 1383. Such increase shall be clearly delineated on billing invoices as relating to SB 1383; and WHEREAS, representatives from the City and Athens Services have met, conferred and reviewed in detail the proposed changes for residential and commercial accounts, determined that proposed adjustments are pursuant to contractual provisions and necessary for the efficient removal of solid waste within the City and compliance with State requirements.

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The collection, removal and disposal of garbage and solid waste materials are for the health, safety and welfare of community members in the City of Covina.

SECTION 3. The adjustment in fees for residential and commercial collection and disposal fees is required to comply with State mandates and is necessary to continue providing collection services to all customer accounts.

SECTION 4. At the February 1, 2022 City Council meeting, the Covina City Council received a presentation regarding State solid waste and recycling mandates, projected impacts to the local community and alternatives to implement programs to meet new State requirements.

SECTION 5. At the May 17, 2022 City Council meeting, the Covina City Council reviewed residential and commercial solid waste and recycling rates, affirms that rate

Resolution CC 2022-51 Page 3 of 4
adjustments are accurate and authorizes the preparation of a resolution to affect the adjusted rates as prescribed on Exhibit “A”.

SECTION 6. Amendment No. 2 to the amended and restated franchise agreement with Athens Services details the rate adjustments and the services to be rendered in order for the City to comply with CalRecycle’s organic waste recycling requirements pertaining to SB 1383. At the May 17, 2022 City Council meeting, the Covina City Council reviewed and approved Amendment No. 2.

SECTION 7. Effective the adoption of Resolution CC 2022-51 all solid waste and recycling collection services rates shall be adjusted as described on the fee schedule on Exhibit “A” attached hereto, with a billing date of July 1, 2022.

APPROVED and PASSED this 17th day of May, 2022.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor

ATTEST:
___________________________________________

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk
APPROVED AS TO FORM:
__________________________________
CANDICE K. LEE, City Attorney

Resolution CC 2022-51 Page 4 of 4

CERTIFICATION
I, Georgianna Nicole Alvarez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2022-51 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17th day of May, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: CC Regular Meeting - May 17 2022
Title: Approval of Fiscal Year 2023 Water Supply Strategy and Authorization to Execute all Requisite Documents
Presented By: Andy Bullington, Director of Public Works Recommendation: 1. Approve the Fiscal Year 2023 water supply strategy outlined in this report;

2. Authorize the City Manager or his designee to negotiate a temporary lease assignment of Fiscal Years 2022 through 2024 Water Production Rights (equal to 359.69 acre feet per year), or execute a temporary assignment of water rights to assign 359.69 acre feet of FY 2023 Water Production Rights from the City of Covina to the Covina Irrigating Company;

3. Authorize the City to lease up to 500 shares of Covina Irrigating Company stock for Fiscal Year 2023 in an amount not-to-exceed $187,500, and execute an Offer Letter, a Lease Agreement, and an Order for Delivery with interested shareholders; and

4. Authorize the City to participate in the Fiscal Year 2023 Covina Irrigating Company lease pool to the level needed to enable the City to achieve its water supply target.

EXECUTIVE SUMMARY:

This item presents a strategy for assembling the most cost-effective water supply for Covina water customers for FY 2023, emphasizing the use of water produced by Covina Irrigating Company (CIC). The strategy is predicated on an estimated total water demand of 5,430 acre feet (AF) for FY 2023.

BACKGROUND:

The City’s Water Division provides safe, clean, and reliable water to approximately 8,500 residents and businesses. Since the City does not pump its own water, the City relies on water from external sources. Water produced by CIC and allocated to the City is the most cost-effective supply available. If the City’s entitlement of CIC water becomes exhausted, or an unforeseen interruption in CIC supply occurs, the City would instead purchase imported water at a significantly higher cost.

Based on current and anticipated consumption for the upcoming fiscal year, the water demand for FY 2023 is expected to be 5,430 acre feet. Assembly of the City’s annual water supply depends on three CIC sources.

First, the City owns 4,219 shares of CIC stock. Each share is generally equal to one acre foot of water (or 325,851 gallons). CIC’s water comes predominantly from the Main San Gabriel Basin and the San Gabriel River at an estimated FY 2023 cost of $480 per acre foot. This rate includes the Water Development Assessment (RDA) that allows the Watermaster to purchase and import additional water to replenish the Main San Gabriel Basin, which continues to experience a depletion of groundwater stemming from California drought conditions.

Second, the City has prescriptive pumping rights in the Main San Gabriel Basin. Since 1999 when the City ceased pumping operations at the Grand Avenue Well due to nitrate contamination, the City has been able to assign these pumping rights to CIC to produce water for the City. The actual quantity of water produced varies based on the operating safe yield (OSY) in the Basin (amount of water that can be withdrawn without producing an undesired effect). In the current fiscal year, the actual production quantity is 359.69 acre feet. The Watermaster will set the FY 2023 OSY by June 2022, however 359.69 acre feet of water production is expected to remain unchanged.

The City’s estimated cost to use the water is $385 per acre foot. In any year in which the water supply is surplus, the City maintains the option to lease its pumping rights and gain the financial benefit. For example, the City leased its water rights in FY 2021 in exchange for $285,000, paid to the Water Fund.

Third, the City may lease shares of CIC stock for a lease duration of one fiscal year. The target for FY 2023 is to lease up to 500 shares if available. The City will secure lease agreements with as many individual CIC shareholders as are interested, and will acquire the remainder from the lease pool managed by CIC. The lease rate to be paid by the City is estimated to be $375 per share, plus $480 per AF to treat the water.

As a result of the current drought condition, the Three Valleys Municipal Water District and the Metropolitan Water District are working in partnership to relieve dependence on water supplies from the depleting State Water Project, while offering water retailers discounted water. The City may have an opportunity to reduce the amount of water leased through CIC (which costs more), and instead purchase water through Metropolitan’s discount program (which would provide water from alternate connections that do not impact the State Water Project).

Leased water through CIC would cost the City approximately $855 per AF, while Metropolitan’s discounted water would cost only $799 per AF. Metropolitan’s discount program has not yet been finalized, and will be available for a limited time only. Staff will continue to explore this option as it develops, and may secure up to 1,000 AF of discounted Metropolitan water as a result.

DISCUSSION:

In preparation for FY 2023, the Department of Public Works is seeking to assemble the most cost-effective water supply. The proposed FY 2023 water supply is outlined in the table below:

Proposed FY 2023 Water Supply
Item Shares Acre Feet
City Ownership 4,219.00 4,219.00
CIC Stock Leases (may vary) 500.00 500.00
Metropolitan Water District, Discounted Water (may vary) 1,000.00 1,000.00 Total 5,719.00
Note that any unused water is retained in the City’s inventory and transfers over to the subsequent fiscal year.

Surplus water that is purchased at today’s price but utilized at a later date, results in financial savings to the City.

To assemble the most cost-effective water supply, as outlined in the table above, the Department of Public Works recommends the City Council authorize the following actions:

1. Authorize the City Manager or his designee to negotiate a temporary lease assignment of Fiscal Years 2022 through 2024 water production rights (equal to 359.69 acre feet per year), or assign the City’s FY 2023 water production rights of 359.69 acre feet to CIC. To confirm the assignment, a Temporary Assignment or Lease of Water Right Form would be executed by the City Manager, notarized, forwarded to the appropriate party for mutual signature, and ultimately submitted to the Watermaster for approval;

2. Solicit and secure leases for CIC stock at a cost of $375 per share from those shareholders interested in leasing stock to the City. An offer package would be sent to all shareholders, and will include an offer letter, a Lease Agreement, and an Order for Delivery (Attachments A, B, and C). All required forms must be signed by the shareholder and returned to the City by June 13, 2022; and

3. Authorize the City to participate in the FY 2023 CIC lease pool to the level needed to enable the City to achieve its lease target of 500 acre feet. Shares would be acquired from the lease pool at an estimated rate of $375 per share.

FISCAL IMPACT:

To assemble an adequate water supply for FY 2023, there will be a Water Fund impact of $2,251,620.

A breakdown of costs for FY 2023 is as follows:
• Redeeming the 4,219 shares of CIC stock owned by the City will cost $480 per share, for a total cost of $2,025,120.
• Leasing up to 500 shares of CIC stock will cost $375 per share to the lessor plus $480 per share to CIC to produce the water, for a total cost of $427,500.
• Purchasing up to 1,000 AF of discounted water from Metropolitan Water District will cost $799 per AF, for a total cost of $799,000.

Sufficient funding for these purchases is included in the FY 2023 Department of Public Works budget. There is no General Fund impact associated with any of these transactions.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

ATTACHMENTS:

Attachment A - Offer Letter
Attachment B - Lease Agreement
Attachment C - Order for Delivery
Respectfully submitted,

CITY OF COVINA www.covinaca.gov
125 East College Street ● Covina, CA 91723-2199
May 18, 2022
To: Covina Irrigating Company Stockholder
Re: Lease of CIC Stock for Fiscal Year 2022-2023
Dear Covina Irrigating Company Stockholder:

This letter requests a temporary lease of your shares of Covina Irrigating Company stock for Fiscal Year 2022-2023 (July 1, 2022 through June 30, 2023). The City of Covina is requesting to lease your water shares during this time period, in order to secure a reliable and cost-effective water supply for the City’s water customers in Fiscal Year 2022-2023.

The City of Covina is offering to lease your stock at a rate of $375 per share. The City’s lease terms will provide a one-time lump sum payment to you by July 31, 2022.

If you are interested in leasing your shares to the City during Fiscal Year 2022-2023, please sign and date the enclosed two documents: 1) Lease Agreement, and 2) Order for Delivery of Water Under Lease Agreement. Please return the signed documents prior to June 13, 2022. A return envelope is enclosed for your convenience.

Thank you in advance for your consideration. Please feel free to contact Sandy Costandi if you have any questions regarding this offer. Ms. Costandi may be reached by telephone at (626) 384-5487 or by e-mail at [email protected].

Sincerely,

CITY OF COVINA
Andy Bullington
Director of Public Works

LEASE AGREEMENT
THIS LEASE is entered into on May 18, 2022, by and between ________ (“Lessor”), and the City of Covina (“Lessee”).

IN CONSIDERATION of the terms and conditions hereinafter set forth, Lessor hereby leases to the Lessee and Lessee hereby rents from Lessor ____ shares of Covina Irrigating Company stock registered in the Lessor’s name of ________ for the fiscal year July 1, 2022 through June 30, 2023.

Lessor agrees to execute such documents of assignment to Lessee in a form and manner which, from time to time, is required by Covina Irrigating Company.

1. The term of this Lease shall be for a period of one year, commencing July 1, 2022 and ending June 30, 2023.

2. Lessee shall pay Lessor rent: A one-time sum of $____ determined by multiplying the number of registered shares by $375.00 per share.

3. Lessor is responsible and liable for payment for any assessments levied on the Covina Irrigating Company shares by the Covina Irrigating Company or any other person or entity.

4. Lessee agrees not to assign, mortgage or hypothecate this Lease or any interest herein without first obtaining the written consent of Lessor.

5. Lessee agrees, at its expense, to submit all the required reports requested by Covina Irrigating Company.

6. Lessee agrees to pay Lessor all costs and expenses, including attorney's fees in a reasonable sum, in any action brought by Lessor to recover any rent due and unpaid hereunder, or for the breach of any of the covenants and agreements contained in this Lease, whether said action progresses to judgment or not.

7. All communications, notices and demands of any kind shall be made in writing and served or sent by registered mail, postage prepaid, to the following address:

To Lessee: City of Covina
125 E. College Street
Covina, CA 91723
To Lessor: Name
Agency
Address
Address

8. It is understood and agreed that the Lessee may cure any default relating to payment of rent, within thirty (30) days after receipt of notice from Lessor. Lessor shall not commence any litigation proceedings against Lessee for the collection of rent within said thirty (30) day period.

9. This Lease shall inure to the benefit of and be binding upon the parties’ heirs, successors and assigns.

10. This agreement only pertains to the use of entitled water and does not deprive Lessor of any of its stock voting rights or convey any voting rights to Lessee.

11. The Lessor's tax identification number (Social Security number or Employer Identification number) for tax reporting by the lessee is as follows:

Social Security Number or EIN __________________________ LESSOR:

By:

LESSEE: City of Covina
By:

Chris Marcarello
City Manager
Date: Date: May 18, 2022______

ORDER FOR DELIVERY OF WATER UNDER LEASE AGREEMENT
TO: COVINA IRRIGATING COMPANY
COVINA IRRIGATING COMPANY is hereby instructed to deliver a volume of water represented by ____ shares of stock registered in the name of _______ for the fiscal year ending June 30, 2023.

Under this agreement the LESSEE agrees to guarantee payment to COVINA IRRIGATING COMPANY for all cost of water delivered (except assessments) according to the By-Laws of COVINA IRRIGATING COMPANY.

The LESSOR under this agreement guarantees payment to COVINA IRRIGATING COMPANY in the event of default by the LESSEE for all water costs and agrees that these charges shall become a lien upon the registered owner of the stock the same as though the water had been delivered to the LESSOR. With this agreement the LESSOR and the LESSEE also acknowledge that neither COVINA IRRIGATING COMPANY, nor its Board of Directors, Employees, or Affiliates have any involvement whatsoever in the lease of stock by stockholders, and assumes no liability in connection therewith except to deliver water in accordance with the Company By-Laws.

LESSOR:

By:

LESSEE: City of Covina
By:

Chris Marcarello
City Manager
Date: Date: May 18, 2022______

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: CC Regular Meeting - May 17 2022
Title: Establishment of Fiscal Year 2022-2023 Article XIIIB Appropriation Limit for the City of Covina
Presented By: Anita Agramonte, Director of Administrative Services Recommendation: Adopt Resolution CC 2022-52 establishing the Fiscal Year 2022-2023 Article XIIIB Appropriation Limit for the City of Covina.

EXECUTIVE SUMMARY / BACKROUND:

As a means to limit the growth of government spending, the Gann Initiative, or appropriation limit calculation, was approved by California voters in 1979; this resulted in Article XIIIB of the California Constitution which requires that each level of government establish annual appropriation limits based upon a specific formula. The appropriation limit calculations were modified in June 1990 as a result of the passage of Proposition III.

The imposed limitations require that calculations utilize anticipated tax proceeds as well as growth factors in population and inflation; these factors are provided by the California Department of Finance.

DISCUSSION:

The City of Covina’s appropriation limit for Fiscal Year 2022-2023 is $124,043,027. The proceeds from taxes are $38,964,000 and are below the appropriation limit. There is no excess of taxes over the appropriation limit as defined by Article XIIIB.

Any challenge to the 2022-2023 appropriation limit calculation must be done within forty-five days of the adopted resolution effective date.

FISCAL IMPACT:

This action will set the appropriation limit to $124,043,027.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

ATTACHMENTS:

Attachment A - Resolution CC 2022-52 FY 2022-23 Gann Appropriation Limit Respectfully submitted,
RESOLUTION CC 2022-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2022-2023

APPROPRIATION LIMIT FOR THE CITY OF COVINA
WHEREAS, Title 1, Division 9, Section 7910 of the Government Code requires that each local government establish its appropriation limit by resolution each fiscal year at a regularly scheduled City Council meeting or a noticed special meeting; and WHEREAS, any challenge to the 2022-2023 fiscal year appropriation limit must be brought within forty-five days of the resolution effective date.

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

SECTION 1. The City Council does hereby determine that the annual adjustment factors to be selected in modifying the prior-year appropriation limit are the change in California’s per capita income and the increase in the County’s population.

SECTION 2. The City Council does hereby determine and declare that the City of Covina’s appropriation limit for Fiscal Year 2022-2023 is $124,043,027 per attached Exhibits A and B.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 17
th
day of May, 2022.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor
ATTEST:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

Resolution CC 2022-52 Page 2 of 2

CERTIFICATION
I, Georgianna Nicole Alvarez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2022-52 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17
th
day of May, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

Appropriation Limit Calculation
Appropriation limit for the 2021-2022 fiscal year 116,156,032 $ Per Capita Cost of Living Change 1.0755
Percent Growth in County Population x 0.9929
Total Adjustment 1.0679
2022-2023 Appropriation Limit 124,043,027 $
Appropriation Subject to Limitation
2022-2023 Appropriation Limit 124,043,027 $
Less: Proceeds from taxes (38,964,000)
Add: Users Fees in excess of costs -
Total Appropriations Under Limitation 85,0 $ 79,027

EXHIBIT A
Based on 2022-2023 Budget

CITY OF COVINA, CALIFORNIA

APPROPRIATION LIMIT CALCULATION

General Fund
Taxes
Property Taxes - Current Year Secured 8,919,000 - 8,919,000 $ Sales and Use Taxes 19,000,000 - 19,000,000 $
Franchises - 2,106,000 2,106,000 $
Utility Users Tax 4,840,000 - 4,840,000 $
Other Taxes 375,000 - 375,000 $
License & Permits - 973,000 973,000 $
Fines & Foreitures - 920,000 920,000 $
Intergovernmental - 641,006 641,006 $
Property Tax in Lieu of MVL 5,830,000 - 5,830,000 $
Other Inter-agency revenue - - - $
Charges for Current Services - User Fees - 2,675,534 2,675,534 $ Miscellaneous Revenue - 726,400 726,400 $
Net - Transfers - 3,300,000 3,300,000 $
Total 38,964,000 $ 11,341,940 $ 50,305,940 $
Proceeds From
Taxes
Non-Proceeds
From Taxes
Total
Proceeds/NonProceeds

SCHEDULE OF ESTIMATED REVENUES

PROCEEDS AND NON-PROCEEDS FROM TAXES
Based on 2022-2023 Budget

CITY OF COVINA, CALIFORNIA

EXHIBIT B

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: CC Regular Meeting - May 17 2022
Title: First Amendment to the Professional Services Agreement with American Traffic Solutions Inc. (ATS) to Extend Red-Light Photo Enforcement Service Presented By: David Povero Chief of Police
Recommendation: Authorize the City Manager to execute the First Amendment to the Professional Services Agreement with American Traffic Solutions to extend Red-Light photo enforcement service.

EXECUTIVE SUMMARY / BACKROUND:

The City of Covina has been utilizing a Red-Light Photo Enforcement Program through American Traffic Solutions (ATS) since April 2007. The original contract, program implementation, training and customer service that was provided were very successful and the program continues to date. The initial agreement was for five (5) years with the option of two additional two-year terms. The first amendment extended the term for two years (2011-2013). The second amendment was approved by the City Council and extended the term for the final twoyears (2014-2016). The third amendment extended the contract once again for one year to May 31,2017. A new agreement was authorized and took affect on June 1, 2017 and is now set to expire on June 1, 2022. This proposed new three-year amendment will extend service to June 1, 2025.

DISCUSSION:

To date, the program continues to monitor seven approaches contained within these three intersections:

N/B Azusa Avenue at Cypress Street
N/B Barranca Avenue at Rowland Street
E/B Rowland Street at Barranca Avenue
W/B Rowland Street at Barranca Avenue
N/B Grand Avenue at Badillo Street
S/B Grand Avenue at Badillo Street
E/B Badillo Street at Grand Avenue
The Red Light Photo Enforcement Program was implemented to enhance traffic safety, reduce traffic collisions related to red light violations and increase driver awareness. The program has been operational for the past fifteen years and provides historical perspective on the functionality and success of the system. Based on the citation and collision data from the last four years, drivers are getting the message to stop on red lights in Covina.

Year
No. of
Activations
(Sent to PD)
No. of
Rejections
(Rejected by
PD)
Citations Issued RTOR Non-RTOR
2018 16,401 11,413 4,988 3,485 1,503
2019 16,438 11,242 5,196 3,638 1,558
2020 16,353 11,880 4,473 2,891 1,582
Year
No. of
Activations
(Sent to PD)
No. of
Rejections
(Rejected by
PD)
Citations Issued RTOR Non-RTOR
2021 17,845 14,633 3,212 2,303 909
Total 67,037 49,168 17,869 12,317 5,552
Of the 67,037 camera activations in the last four years, 49,168 activations or 73.3% were rejected thus leaving

26.7% or 17,869 citations issued to drivers. RTOR stands for "right turn on red" citations. As the yearly stats show, there is a trend of decreasing citations as more drivers are learning to stop at red lights.

The community's recidivism rate from 2007 to 2021 is only 5.2% which means 94.8% of all violators who received a ticket do not get another violation. This low rate of repeat behavior indicates a positive change in driver behavior which makes our streets safer.

FISCAL IMPACT:

The new monthly cost of the contract for service reflects an increase per year as follows:
$16,698.31 per month starting June 1 ,2022 to June 1, 2023 $17,228.21 per month starting June 1, 2023 to June 1, 2024 $17,775.75 per month starting June 1, 2024 to June 1, 2025 These cost increases will be covered by the revenue from fines in the Red Light Photo Enforcement Program.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

ATTACHMENTS:

Attachment A - First Amendment to American Traffic Solutions Respectfully submitted,

1 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF COVINA AND AMERICAN TRAFFIC SOLUTIONS, INC.

THIS FIRST AMENDMENT is made and entered into as of June 1, 2022 by and between the City of Covina, a California municipal corporation (hereinafter referred to as “City”), and American Traffic Solutions, Inc. ("ATS"), a corporation duly formed under the laws of the State of Kansas with its principal place of business at 1150 N. Alma School Road, Mesa AZ 85201 (hereinafter referred to as “ATS”). This First Amendment is made with the respect to the following facts and purposes:

WHEREAS, On May 16, 2017, the City and ATS entered into that certain Professional Services Agreement for monitoring red light violations and to issue citations for traffic violations on behalf of the City (“Agreement”).

WHEREAS, The parties now desire to amend this Agreement to extend the term of this Agreement to June 1, 2025 and to amend the Fees and Payment terms set forth in the Agreement.

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. Section 4.a of the Agreement entitled “TERM AND TERMINATION” is hereby replaced in its entirety to read as follows:
“The term of this Agreement shall be for eight (8) years beginning on June 1, 2017 to June 1, 2025, unless sooner terminated as provided in Section 4 of this Agreement. In no event shall the Agreement be extended beyond June 1, 2025.

2. Section 7 of the Agreement entitled “FEES AND PAYMENT” is hereby replaced in its entirety to read as follows:
“As full compensation for ATS’s services provided under this Agreement, City shall pay ATS a sum not to exceed sixteen thousand six hundred and ninety-eight dollars and thirty-one cents. ($16,698.31) starting June 1, 2022; seventeen thousand two hundred twenty-eight dollars and twenty-one cents ($17,228.21) starting June 1, 2023; and seventeen thousand seven hundred seventy-five dollars and seventyfive cents ($17,775.75) starting June 1, 2024. These are based on the rates set forth in the Amended Approved Fee Schedule, attached hereto as Exhibit A, Schedule 1 with an automatic 3.33% CPI increase over each remaining year following the date of this Amendment; 10% CPI increase in total throughout this Amendment Term.

On or before the 10th day of each month, City shall pay all Fees due to ATS based upon invoices from the preceding month. Late payments are subject to interest calculated at 1.5% per month open balances.

2 3. Schedule 1 Approved Fee Schedule- Per Dual Camera System is hereby replaced in its entirely to read as follows:

Schedule 1
Approved Fee Schedule - Per Dual Camera System
The City agrees to pay ATS the Fee(s) as itemized below:

Monthly Unit Price
Existing Dual Camera Systems June 1, 2022 June 1, 2023 June 1, 2024 CV01: NB Azusa Avenue at Cypress Street $ 2,273.33 $ 2,349.03 $ 2,427.25 CV02: NB Barranca Avenue at Rowland Street $ 2,273.33 $ 2,349.03 $ 2,427.25 CV03: EB Rowland Street at Barranca Avenue $ 2,273.33 $ 2,349.03 $ 2,427.25 CV04: WB Rowland Street at Barranca Avenue $ 2,273.33 $ 2,349.03 $ 2,427.25 CV05: NB Grand Avenue at Badillo Street $ 2,273.33 $ 2,349.03 $ 2,427.25 CV06: SB Grand Avenue at Badillo Street $ 2,273.33 $ 2,349.03 $ 2,427.25 CV07: EB Badillo Street at Grand Avenue $ 2,273.33 $ 2,349.03 $ 2,427.25 Live Video 1 $ 195.00 $ 195.00 $ 195.00
Live Video 2 $ 295.00 $ 295.00 $ 295.00
Live Video 3 $ 295.00 $ 295.00 $ 295.00
TOTAL per month $ 16,698.31 $ 17,228.21 $ 17,775.75

4. Except for the expressly amended or modified terms specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

3 The parties, through their duly authorized representatives, are signing this First Amendment 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: Georgianna Nicole Alvarez
Title: Chief Deputy City Clerk
APPROVED AS TO FORM:

By:

Name: Candice K. Lee
Title: City Attorney
Consultant:

American Traffic Solutions, Inc., a Kansas
corporation
By:

Name: Jon Baldwin
Title: Executive Vice President,
Government Solutions
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.)

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 12
Meeting: CC Regular Meeting - May 17 2022
Title: Approval of a First Amendment to Agreement between the City of Covina and Clifton Larson Allen, LLP
Presented By: Anita Agramonte, Administrative Services Director Theresa Franke, Finance Manager
Recommendation: Authorize City Manager to execute the First Amendment to the Professional Service Agreement with Clifton Larson Allen to provide audit services.

EXECUTIVE SUMMARY:

The City engages an audit firm each year to perform an independent audit of the City’s financial statements including governmental activities, business type activities, major funds and the aggregate remaining funds as well as related notes to the financial statements which collectively comprise the City’s basic financial statements. It is considered best practice to rotate auditors every five to six years. Clifton Larson Allen, LLP (CLA), formerly White Nelson Diehl Evans, LLP (WNDE)has been the City's audit firm for the past three years. Staff recommends extending the agreement for an additional 2 years.

BACKGROUND:

On March 19, 2019, the City entered into a Professional Services Agreement ("PSA")for audit services with White Nelson Diehl Evans, LLP (WNDE) in an amount not to exceed $175,300. The agreement allows for extension of time not to exceed two years. On February 2, 2021, the City, WNDE, and CLA entered into an Assignment, Assumption and Consent Agreement stating that WNDE assigns all rights, interests, duties and obligations of WNDE to CLA under the Agreement effective as of November 1, 2020.

DISCUSSION:

The initial agreement included audits for the subsequent 3 years and provided for a two year extension upon mutual agreement. Staff recomends exercising the extensoin option and extending the term of the Agreement to be effective through June 30, 2024. A 3% increase in annual fees for the next two fiscal years necesitates increasing the contract amount not to exceed Two-hundred-ninety-nine-thousand-nine-hundred-eight Dollars ($299,908), plus any additional fees for major programs subject to the single Audits, as set forth in the Amendment as attached hereto.

FISCAL IMPACT:

Sufficient funds will be budgeted and available in the Finance Department's audit budget, and no additional General Fund appropriation is necessary at this time.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not Applicable.

ATTACHMENTS:

Attachment A - Clifton Larson Allen LLP First Amendment Respectfully submitted,

1 FIRST AMENDMENT TO AGREEMENT BETWEEN THE CITY OF COVINA AND CLIFTON LARSON ALLEN, LLP.

THIS FIRST AMENDMENT is made and entered into as of July 1, 2022 by and between the City of Covina, a California municipal corporation (hereinafter referred to as “City”), and Clifton Larson Allen, a Limited Liability Partnership (hereinafter referred to as "Consultant" or “CLA”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. This FIRST Amendment is made with respect to the following facts and purposes:
a. On March 19, 2019, the City and White Nelson Diehl Evans, a Limited Liability Partnership (hereinafter referred to as “WNDE”) entered into that certain Professional Services Agreement (“Agreement”) for professional financial auditing services in an amount not to exceed One-hundred-seventy-five-thousand-three-hundred-ten Dollars ($175,310)(the “maximum compensation”). The term of the Agreement is set to expire June 30, 2022 unless sooner terminated as provided in Section 13 of the Agreement. b. On February 2, 2021, the City, WNDE, and CLA entered into an Assignment, Assumption and Consent Agreement stating that WNDE assigns all rights, interests, duties and obligations of WNDE to CLA under the Agreement effective as of November 1, 2020. c. The parties now desire to increase the contract amount not to exceed Twohundred-ninety-nine-thousand-nine-hundred-eight Dollars ($299,908), plus any additional fees for major programs subject to the single Audits, and to extend the term of the Agreement to be effective through June 30, 2024 and to amend the Agreement as set forth in this Amendment.

2. Section 1 of the Agreement entitled “TERM OF AGREEMENT” is hereby amended to read as follows:
“The term of this Agreement shall be from the Effective Date through June 30, 2024 unless sooner terminated as provided in Section 13 of this Agreement.”

3. Paragraph A of Section 2 of the Agreement entitled “COMPENSATION” is hereby amended to read as follows:
“A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Two-hundred-ninety-nine-thousand-nine-hundred-eight Dollars ($299,908) (the “maximum compensation”), plus any additional fees for major programs subject to the single Audits, as set forth in the Approved Fee Schedule, attached hereto as Exhibit A. Any terms in Exhibit A, other than the payment rates and schedule of payment, are null and void.”

4. Exhibit “A” to the Agreement is hereby amended by adding thereto the items set forth on Attachment “A” to this Amendment, which is attached hereto and incorporated herein as though set forth in full.

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

The parties, through their duly authorized representatives, are signing this FIRST Amendment 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: Georgianna Nicole Alvarez
Title: Chief Deputy City Clerk
APPROVED AS TO FORM:

By:

Name: Candice K. Lee
Title: City Attorney
Consultant:

CliftonLarsenAllen,
a Limited Liability Partnership
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.)

Attachment A
Displayed below and incorporated herein is Exhibit A reflecting the amended cost as provided by the Consultant.

EXHIBIT A

APPROVED FEE SCHEDULE
Quoted Hourly
Rates
Quoted Hourly
Rates FY22*
Quoted Hourly
Rates FY23*
Partner $225/hr $232/hr $239/hr
Audit Manager $165/hr $170/hr $175/hr
Audit Supervisor $110/hr $113/hr $117/hr
Staff Accountants $95/hr $98/hr $101/hr
• 3% maximum increase for FY21/22 and FY22/23
Annual Maximum Compensation
Audit Year 2018/19 2019/20 2020/21 2021/22 2022/23
Audit-City of Covina $49,660 $49,660 $51,150 $52,685 $54,266 Single Audit $ 3,890 $ 3,890 $ 4,000 $ 4,120 $ 4,244
Controllers Reports $ 4,310 $ 4,310 $ 4,440 $ 4,573 $ 4,710 Total Annual Maximum
Compensation $57,860 $57,860 $59,590 $61,378 $63,220
(2) The fee contemplates auditing one major program. Additional major programs will be audited for an additional cost of $1,750 (years 1-3), $1,803 (year 4), $1,857 (year 5).

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: CC Regular Meeting - May 17 2022
Title: Adoption of the Fiscal Year 2022-23 Budget, Fiscal Year 2023-2027 Capital Improvement Program (CIP) and Fiscal Year 2022-23 CIP Budget Presented By: Chris Marcarello, City Manager
Anita Agramonte, Administrative Services Director
Recommendation: 1. Conduct the public hearing and consider all testimony that may be forthcoming;

2. Adopt Resolution CC 2022-53 adopting the City of Covina budget for July 1, 2022 through June 30, 2023;

3. Adopt Resolution SA 2022-01 adopting the operating budget for the City of Covina Successor Agency for July 1, 2022 through June 30, 2023; and

4. Adopt Resolution CC 2022-54 adopting the Fiscal Year 2023-2027 Capital Improvement Program and the Fiscal Year 2022-23 Capital Improvement Program Budget.

EXECUTIVE SUMMARY:

The City Manager is tasked to prepare an annual operating budget and a capital improvement program for the City each fiscal year for City Council consideration. Approval of the attached resolutions will establish the Fiscal Year (FY) 2022-23 Operating Budget and the Fiscal Year 2023-2027 Capital Improvement Program Budget.

BACKGROUND:

Covina Municipal Code (CMC) Section 2.08.160 provides for a preliminary budget to be presented to the City Council before the fifteenth day of June each year. The CMC also states that continuing appropriations for yearend encumbrances, contractual commitments, and capital projects shall be automatically carried forward. All other appropriations shall lapse at year-end unless carried forward by City Council action. According to this code section, the City Manager is to keep the City Council informed thereto.

The Administrative Services Director submitted the Proposed FY 2022-23 Budget to the Finance Advisory Commission as part of the agenda for the Commission's regular meeting of May 11, 2022. Revenue projections and proposed operating budgets for City departments were reviewed and discussed.

The Community Development Director presented the Proposed FY 2023-2027 CIP and FY 2022-23 CIP Budget to the Planning Commission as part of the agenda for the Planning Commission's regularly scheduled meeting of April 12, 2022. The Planning Commission adopted Resolution No. 2022-005PC (Attachment D), finding that the proposed FY 2023-2027 CIP and FY 2022-23 CIP Budget is consistent with the goals and policies of the Covina General Plan pursuant to Government Code Sections 65103 and 65402.

DISCUSSION:

The Citywide Proposed FY 2022-23 Budget includes projected revenues totaling $117,242,502 and expenditures of $114,754,465. These amounts include the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, and Successor Agency Funds. As noted below and in Attachment E, the total expenditures include 28 proposed capital improvement projects that total $19,127,591. The proposed budget incorporates recommendations from both the Finance and the Planning Commissions.

General Fund:

The Fiscal Year 2022-23 General Fund Budget is balanced with $46,320,250 in revenues and expenditures. The proposed General Fund budget utilizes $4,014,310 in Transaction and Use Tax funds, and $3,000,000 in ARPA Revenue Replacement Funds.

The table below summarizes the Proposed Fiscal Year 22-23 General Fund Budget:

General Fund Revenues:

A conservative approach was utilized in projecting revenues for FY 2022-23. The table below summarizes FY 2022-23 General Fund revenues. The table includes FY 2020-21 actual revenues, the original Adopted Budget, and the projected year-end figures for FY 2021-22 as well as proposed budget figures for FY 2022-23.

General Fund Expenditures:

The following table summarizes Fiscal Year 2022-23 General Fund Expenditures by department.

General Fund expenditures by department are further detailed in Attachment G.

Staffing Recommendations:

Over the past year several staff members in various departments have taken on additional duties based on department needs and due to the enhanced retirement options that were offered last fiscal year. In order to fulfill the duties that were performed by the vacated positions, several staff member have stepped up and taken on additional responsibilities. During the budget process, each department has analyzed their staffing needs and several recommendations were presented to ensure proper staffing levels and appropriate classifications are authorized and budgeted within each department. The table below summarizes recommended staffing changes for Fiscal Year 2022-23.

Funding for these positions is provided through a variety of funds including General Fund, Water Fund, Facility Maintenance Fund, and Housing Fund.

Other Funds:

Proposed revenue and expenditure budgets for the City’s various Special Revenue Funds, Enterprise Funds, Internal Service Funds, Successor Agency Funds and all Other Funds are displayed in Exhibit A to Resolution CC 2022-53 (Attachment A) as well as in the Proposed FY 2022-23 Fund Balances Worksheet provided in Attachment F.

Fiscal Year 2023-2027 CIP and Fiscal Year 2022-23 CIP Budget:

The Proposed FY 2023-2027 CIP contains 51 projects with a total estimated cost of $120 Million over the five year period. Resolution CC 2022-54 (Attachment C) recommends the adoption of the FY 2023-2027 CIP and the FY 2023 CIP Budget totaling $19,127,591. As noted above, the FY 2022-23 CIP contains 28 projects including the Covina Recreation Village Project Phase II, Grand Avenue Rehabilitation Project, and Covina Skate Park Project. The Proposed Fiscal Year 2023-2027 CIP is included in Attachment E which outlines a listing of the FY 2022-23 CIP Budget and the FY 2023-2027 CIP Budget, including various projects and funding sources.

American Rescue Plan Act
The American Rescue Plan Act of 2021 ("ARPA") included the Coronavirus Local Fiscal Recovery Fund to provide $350 billion for states, municipalities, counties, tribes and territories to assist with pandemic-related response activities. The City of Covina was awarded $11.3 Million in ARPA funds, of which $10 Million may be considered revenue replacement and utilized to fund general city services. For Fiscal Year 2022-23, $3 Million in ARPA funding is included to fund general services, and an additional $564,310 will be utilized to fund other projects allowable within the ARPA guidelines.

Budget Policy:

The Budget Policy is included in the Adopted Budget annually, and this year staff has made some minor amendments to the policy to properly reflect current practices as well as recommended funding levels for various finds and projects. The updated Budget Policy is reflected as Attachment H, for City Council consideration and approval.

FISCAL IMPACT:

Exhibit A to Resolution CC 2022-53 (Attachment A) to this report summarizes total projected revenues and appropriations for all funds.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

FY 2022-23 Budget:

The project has been reviewed for compliance with the California Environmental Quality Act (CEQA) and is exempt per Section 15061 (b) (3). The project is covered by the General Rule that CEQA applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

FY 2023-2027 and FY 2022-23 CIP Budget:

As work for each project moves through the City's approval process, the appropriate environmental analysis will be conducted and brought to the City Council.

ATTACHMENTS:

Attachment A - Resolution CC 2022-53 City Budget
Attachment B - Resolution SA 2022-01 Successor Agency Budget Attachment C - Resolution CC 2022-54 CIP Budget
Attachment D - Planning Commission Resolution 2022-005PC City Wide CIP Attachment E - 5 Year CIP Master Plan FY 2023-2027
Attachment F - Fund Balance Worksheet FY 2022-23
Attachment G - FY 2022-23 General Fund Exp Budget Detail Attachment H - Budget Policy
Respectfully submitted,

RESOLUTION CC 2022-53

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COVINA, CALIFORNIA/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY ADOPTING THE CITY
OF COVINA FISCAL YEAR 2022-23 BUDGET
WHEREAS,the City Manager presented a Proposed Fiscal Year 2022-23 Budget to the City Council; and
WHEREAS, the City Council has given careful consideration to the Proposed Fiscal Year 2022-23 Budget; and
WHEREAS, City staff is directed to prepare and publish an Approved Fiscal Year Budget document to include changes approved by the CityCouncil forthe forthcoming fiscal year; and
WHEREAS, the City Manager is responsible to implement the annual budget as authorized by Covina Municipal Code Section 2.08.160; and WHEREAS, the total budget appropriations, as adjusted where required,are incorporated herein by reference;and
WHEREAS, the number of appropriated full-time positions shall not change without City Manager approval; and
WHEREAS, the City faces budget constraints, and therefore, the City Manager is authorized to reduce the workforce by not filling certain vacant positions and/or initiating staffing reductions within established guidelines and procedures; and WHEREAS, there are funds within this budget document that are for specific purposes and appropriations of those funds will comply with accounting principles and governing rules of the funding sources.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA,

CALIFORNIA/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING AUTHORITY DO HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The Fiscal Year 2022-23 Budget as presented to the City Council at the May 17, 2022 City Council meeting, as set forth in the May 17, 2021 City Council Agenda Report entitled “Adoption of the Fiscal Year 2022-23 Budget, Fiscal Year 2022-2026 Capital Improvement Program (CIP) and Fiscal Year 2022 CIP Budget” and incorporated herein by reference are hereby approved and adopted as the official municipal budget for the City of Covina (“Fiscal Year 2022-23 Budget”), as summarized in Exhibit A attached hereto.

SECTION 2. Beginning on July 1, 2022, the City Manager is hereby authorized to proceed with the implementation of the programs as set forth in the approved and adopted Fiscal Year 2022-23 Budget, and to transfer any sum of appropriated funds between departments and programs provided they do not cross funds.

Resolution CC 2022-53 Page 2 of 2
SECTION 3. Unexpended appropriations from the Fiscal Year 2021-22 Budget may be carried forward to the next fiscal year provided the funds have been previously encumbered for a specific purpose, or apply to authorized, but uncompleted projects in the City’s approved Capital Improvement Program.

SECTION 4. This Resolution shall take effect immediately upon adoption.

SECTION 5. The City Clerk shall certify to the passage and adoption of this Resolution.

APPROVED and PASSED this 17
th
day of May, 2022.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor
ATTEST:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

CERTIFICATION
I, Georgianna Nicole Alvarez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2022-53 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17
th
day of May, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

City of Covina
FY 2022‐23 Budget Summary
Fund Description
Revenue
Budget
Expenditure
Budget
1010 General Fund 46,320,250      46,320,250
1095 Special General Fund (Transaction/Use Tax) 8,000,000         6,564,310 Total General Fund 54,320,250      52,884,560
2020 Low Mod Housing Asset Fund 25,000              3,070,988 2025 Housing Bond Proceeds 04 Priva 4,500                35,000 2055 2004 Bond‐Private 8,000                ‐
2100 Community Development Block Gr 295,465            295,465 2120 Permanent Local Housing Allocation 459,715            459,715 2140 Homeless Grant Fund 300,000            300,000
2185 Building Equipment Reserve 5,000                11,000 2189 Heritage Tree Preservation ‐                     ‐ 2205 Inmate Communication ‐                     ‐
2221 Federal Treasury Narcotics 100                    ‐ 2222 Federal Justice Narcotic Siezu 1,000                ‐ 2230 Other State Grants 65,070              65,070
2246 Supplemental Law 160,000            106,504
2271 Justice Assistance Grant 14,286              14,286 2278 Homeland Security Grant ‐                     ‐
2290 Traffic Safety Fund 7,000                ‐
2300 State Gas Tax 1,413,790         1,215,000
2310 Road Maintenance and Rehab 1,115,132         1,110,881 2360 CA‐Strong Motion Instrumentati ‐                     ‐ 2365 SB1186 Fund ‐                     ‐
2370 CA‐Green Building Standards ‐                     ‐ 2400 Proposition A 1,328,239         1,808,518
2405 Proposition C 995,209            542,710
2407 TDA 45,978              1,000
2410 Measure R 744,156            470,238
2420 Measure M 1,843,577         1,930,000
2500 Air Quality Improvement 62,800              86,470 2510 Measure W 7,867,884         432,350
2520 DOC Beverage Container Grant 12,300              12,300 2530 Oil Payment Program 7,054                7,054
2600 Cultural Arts ‐                     ‐
2604 Quimby Fees ‐                     ‐
2700 Municipal Parking District 184,600            152,993 2710 Street Lighting Assessment Dis 248,894            248,894 2720 Street Trees and Landscaping 211,389            151,053 2740 Community Facilities District 176,681            303,000 2750 Shoppers Lane Parking District 15,000              8,700 2800 Literacy Grant 18,000              18,000
2807 Workforce Act Grant 10,000              10,000
2810 Library Equipment Reserve 17,800              16,400 2890 PEG‐Public Education and Government 75,000              ‐ 5/12/2022 Page 8 of 34 Exhibit A
City of Covina
FY 2022‐23 Budget Summary
Fund Description
Revenue
Budget
Expenditure
Budget
2920 Public Safety Donation ‐                     ‐
2922 DARE Donation Admin ‐                     ‐
2926 Gang & Graffiti Donation ‐                     ‐
2927 Police Explorer Donation 3,500                3,500 2930 Gang/Graffiti Scholarship Fund ‐                     ‐ 2931 Every 15 Minutes Admin ‐                     ‐
2957 Playground Equip Replace Donat ‐                     ‐ 2958 Teen Program Fundraising ‐                     ‐
2960 Parks & Recreation Donations ‐                     ‐ 2963 Joslyn Foundation Donation ‐                     ‐ 2965 Youth Program Donations ‐                     ‐
2966 Youth Sports Equip Donation ‐                     ‐ 2967 Volunteen Web Berger Grant 2,200                2,991 2968 Senior Fundraising Donations ‐                     2,100 2969 Grandmothers Club Donations ‐                     1,494 2970 Library Services‐Donation 17,500              17,500 2971 Lib Book Donation ‐                     ‐
2972 Library Services‐IT Donation ‐                     ‐ 2973 Gates Donation Fund ‐                     ‐
2975 Lib Services‐Literacy Donation ‐                     ‐ 2976 Joseph J Borrello Memorial ‐                     ‐ 2990 ARPA 5,675,524         3,542,265
4010 General CIP 400,000            400,000
4060 Covina iTEC Project fund ‐                     ‐
4300 Transportation CIP 4,000,000         4,000,000
4600 Parks and Recreation CIP 4,000,000         3,850,000 4630 Kahler Russell Park Gymnasium ‐                     ‐ 4640 Joslyn Center Reconstruction ‐                     ‐ 4701 Impact Fees‐General Govt ‐                     ‐
4702 Impact Fees‐Library Admin ‐                     ‐
4703 Impact Fees‐Police Admin ‐                     ‐
4704 Impact Fees‐Park Fac Admin ‐                     39,000 4705 Impact Fees‐Streets Adm 25,000              755,000 4706 Impact Fees‐Fire Admin ‐                     ‐
6010 Water Utility Admin 12,935,500      11,127,435
6011 Water Capital Improvement Fund 70,000              4,408,222 6200 Environmental‐Waste Mgmt 1,165,360         2,099,783 6300 Sewer Utility 2,996,539         5,113,070
7010 Central Equipment Operations 1,951,174         1,795,491 7020 Building Maintenance  1,854,596         1,529,896
7200 Information Technology 1,247,986         1,247,986 7360 Worker's Compensation 1,121,131         1,121,131
7370 Public Liablity 1,417,781         1,417,781
8186 Downtown District 9,000                9,000
8187 Prospero 5,625                5,625
5/12/2022 Page 9 of 34 Exhibit A
City of Covina
FY 2022‐23 Budget Summary
Fund Description
Revenue
Budget
Expenditure
Budget
T800 OPEB Trust 120,000            6,700
ZZZZ Default ‐ Employee Master ‐                     ‐
SXXX Successor Agency Funds 6,165,218         6,490,346 114,754,465 117,242,502
5/12/2022 Page 10 of 34 Exhibit A
RESOLUTION SA 2022-01

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY OF THE CITY OF COVINA,

CALIFORNIA, ADOPTING THE COVINA SUCCESSOR AGENCY
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1,
2022 AND ENDING JUNE 30, 2023
WHEREAS, the Executive Director has, heretofore, presented to the Successor Agency to the Covina Redevelopment Agency the proposed budget for the fiscal year beginning July 1, 2022 and ending June 30, 2023; and
WHEREAS, copies of said proposed budget are on file in the City Clerk’s office.

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

SECTION 1. Said proposed Successor Agency to the Covina Redevelopment Agency budget is hereby adopted as the budget of the Successor Agency for the fiscal year commencing July 1, 2022 and ending June 30, 2023. The Successor Agency budget consists of the estimated and anticipated expenditures and revenues for the fiscal year and as related shall be deemed to be debt of the Successor Agency.

SECTION 2. There are hereby appropriated for obligation and expenditure by the Executive Director the amounts shown for the various funds and accounts separately set forth in the Successor Agency to the Covina Redevelopment Agency proposed budget for fiscal year 2022- 2023.

SECTION 3. That the Executive Director shall have the authority to incur obligations and enter into contracts less than Twenty-Five Thousand Dollars ($25,000.00) without prior written approval of the Agency, provided that such expenditures are consistent with the budget.

SECTION 4. The Agency Secretary 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 17
th
day of May, 2022.

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

PATRICIA CORTEZ, Chair

Resolution SA 2022-01 Page 2 of 2
ATTEST:

GEORGIANNA NICOLE ALVAREZ
Agency Secretary

CERTIFICATION
I, Georgianna Nicole Alvarez, Secretary of the Successor Agency to the Covina Redevelopment Agency, do hereby certify that Resolution SA 2022-01, was duly adopted by the Successor Agency to the Covina Redevelopment Agency at a regular meeting held on the 17 th
day of June, 2022, by
the following vote:

AYES: BOARD MEMBERS:

NOES: BOARD MEMBERS:

ABSTAIN: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:

Dated:

GEORGIANNA NICOLE ALVAREZ
Agency Secretary

RESOLUTION CC 2022-54

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2023-2027 CAPITAL
IMPROVEMENT PROGRAM AND ADOPTING THE FISCAL YEAR 2022-
2023 CAPITAL IMPROVEMENT PROGRAM BUDGET
WHEREAS, the City Council has given careful consideration to the Proposed Fiscal Year 2022-2023 CIP Budget; and
WHEREAS, the total budget appropriations, as adjusted where required, are incorporated herein by reference; and
WHEREAS, there are funds within this budget document that are for specific purpose and appropriations of those funds will comply with accounting principles and governing rules of the funding sources; and
WHEREAS, on April 12, 2022, the Covina Planning Commission found the CIP consistent with the City’s General Plan in accordance with Government Code Section 65401.

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

SECTION 1. Adoption of this CIP is categorically exempt from environmental review under the California Environmental Quality Act (CEQA). Pursuant to Section 15262 of the State Guidelines for Implementation of CEQA, a project involving only feasibility or planning studies for possible future actions, which actions the City Council has not approved, adopted, or funded, does not require preparation of an EIR or Negative Declaration, but does require consideration of environmental factors. In reviewing this Program and conducting public hearings on it, the City Council has considered relevant environmental factors. This City Council, as the lead agency for environmental review, pursuant to CEQA and the Guidelines promulgated thereunder (collectively CEQA), has reviewed the scope and nature of this Capital Improvement Program and has concluded that the planning and prioritization process comprising this activity is not a project pursuant to CEQA because it does not order or authorize the commencement of any physical or other activity that would directly or indirectly have a significant effect upon the environment. The Capital Improvement Program merely establishes a listing of priority and allocates funds for the City to commence the necessary planning studies, including review pursuant to CEQA, at a future unspecified date. The future planning studies will be conducted at the earliest possible time so as to ensure thorough review pursuant to CEQA. Recognizing that the protection of the environment is a key factor in the quality of life within the City of Covina and to further the City’s strict adherence to both the spirit and letter of the law as regards to CEQA, this City Council has also considered this Capital Improvement Program as if it were a Project pursuant to CEQA.

Reviewing this Program as a Project, this City Council concludes the Project would be exempt from review under CEQA, both pursuant to Section 15061(b)(3) and to the categorical exemption set forth in Section 15262 of CEQA. Section 15061(b)(3) would apply because it can be seen with certainty that this prioritizing and fund allocation program cannot and does not have the potential to cause a significant effect on the environment. No physical activity will occur until all required

Resolution CC 2022-54 Page 2 of 2
CEQA review is conducted at the time the physical improvements prioritized in the Program are undertaken. Section 15262 provides a categorical exemption to actions that are feasibility or planning studies related to possible future actions. This Council is aware of and has considered the current and relevant environmental factors as an integral component of the review of this Program.

This Council, as lead agency, hereby determines and decides that the exemption provided in both Sections 15061(b)(3) and 15262 apply in the event this is deemed a Project pursuant to CEQA.

SECTION 2. The City Council hereby adopts the Fiscal Year 2023-2027 CIP and the Fiscal Year 2022-2023 CIP Budget, which documents are on file in the office of the City Clerk of the City of Covina, incorporated herein by reference, and hereby appropriates funds in the City of Covina Fiscal Year 2022-2023 CIP Budget, and the City Manager is authorized to implement the same.

SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 17
th
day of May, 2022.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor
ATTEST:

GEORGIANNA NICOLE ALVAREZ
Chief Deputy City Clerk

CERTIFICATION
I, Georgianna Nicole Alvarez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2022-54 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 17
th
day of May, 2022, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

GEORGIANNA NICOLE ALVAREZ,
Chief Deputy City Clerk

RESOLUTION NO. 2022—005PC

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
COVINA FINDING THAT THE PROPOSED FISCAL YEAR 2023-2027

CITY OF COVINA FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM

IS CONSISTENT WITH THE GOALS AND POLICIES OF THE COVINA

GENERAL PLAN
WHEREAS, the City of Covina Capital Improvement Program (CIP) is a five-year program adjusted annually that outlines public improvements and estimated expenditures to construct improvements; and
WHEREAS, the proposed CIP is for Fiscal Years 2023-2027 for City Council review and consideration (Attachment A); and
WHEREAS, California (]h.)V'ernnient Code Section 65401 requires the City’s Planning Commission to make a determinationthat the City‘s annual CIP is in conformance with the City‘s General Plan: and
WHEREAS, the Planning Commission held a duly noticed public meeting on April l2, 2022, on the proposed CIP for consistency with the Covina General Plan, at which time all persons interested in the proposed CIP had the opportunity and did address the Planning Commission on this matter.

NOW THEREFORE, II-IE PLANNING COMMISSION OF THE CITY OF COVINA DOES HEREBY RE.'=§()LVE AS FOLLOWS:

SECTION I. 'I'i1«':Planning Commission has duly considered the full record before it, which may include but I’; not limited to such things the City staff report, testimony by staff and the public, and other rnatcriaitxand evidence submitted or provided to the Commission.

Furthermore, the recitals set forth above are found to be tme and correct and are incorporated herein by reference. ‘
SECTION 2. Th-_:_(LorrnmmityDevelopment Department completed an environmental assessmentfor the project in laccorftiance with the CaliforniaEnvironmental Quality Act (CEQA).

The CIP was reviewed for'cnnf(.\’r'9hance with the CEQAand the California Public Resource Code, Division 13‘ Since the CIP is a public improvement and transportation planning document which identifies areas for possible improvements based on the availability of funding, the approval of the CIP is exempt from the CEQAandthe CEQAGuidelines pursuant, to CEQAGuidelines Section 15738(b)(4l l'x.:causethe proposed CIP is not a “proicct” as de?ned by CEQAbut involves the

creation of government funding mechanisms or other government ?scal activities that do not involve any commitment to any speci?c project that may result in a potentially signi?cant physical impact on the environment. Should a speci?c improvement identi?ed in the CIP be undertaken, a full environmental analysis of that improvement will be performed in accordance with the requirements of CEQA.The Planning Commission recommends that the City Council of the City of Covina determinebased on its own independent judgment, that the proposed CIP for Fiscal Year 2023-2027 is exempt from CEQA.

SECTION 3. The Planning Commission, after considering all the written and oral evidence offered including the staff report and all attachments, further ?nds and determines that the proposed CIP is consistent with the following goals and policies of the Covina General Plan pursuant to Government Code Section 65103 and 65402:

1. Land Use Element
A. General Land Use Policy C.1.a.2(b)(c)(e)(f)(g). Ensure that major land use change proposals, particularly those regarding vacant schools, utility sites, and other institutional surplus properties, carefully consider many factors, including, but not limited to:

I Street capacity, public facilities, and other infrastructure impacts. 0 Effects on the local circulation, public transportation, and regional circulation/transportation networks.
0 The provision of services and utilities.
0 All relevant environmental and physical constraints and resources. 0 Covina’s image and character.

B. General Land Use Policy C.l.a.4. Accommodate growth that adequately serves existing and future residents, workers, shoppers, and others while protecting their health, safety, and welfare.

C. General Land Use Policy C.l.a.5. Accommodate growth that is consistent with current general land use patterns, that maintains existing relative land use quantities, and that respects physical and environmental resources and constraints.

D. General Land Use Policy C.l.a.9. Provide for the continuation of existing and development of new or expanded public streets and facilities, storm drains and other infrastructure, parking amenities, and utilities to support the City‘s land uses and meet all needs.

E. General Land Use Policy C.l.a.l5. Monitor land use, traffic, and circulation pressures associated with the Metrolink Commuter Train Station near the downtown and best capitalize on potentially bene?cial impacts by adopting strategies such as an “urban village” or livable cities concept, incorporating mixed uses, sufficient businesses, and attractive and functional public and private improvements.

F. General Land Use Policy C.1.a.l7. Maintain consistency between the Land Use Element and implementation mechanisms including, but not limited to, the Zoning and Subdivision Ordinances, the Design Guidelines.and the Capital Improvement Program.

G. General Land Use Policy C.l.a.22. Capture all potential benefits resulting from the Metrolink Commuter Train Station, downtown revitalization, Azusa Avenue beauti?cation, and other major programs/efforts.

H. General Land Use Policy C.1.a.27. Address its park/open space de?ciency and attempt to mitigate the problem to the greatest extent possible.

I. General Land Use Policy C.2.a.6. Ensure that the overall amount, locations, and timing of development reflect community desires and needs as well as physical and environmental constraints and will not inhibit the City’s ability to meet street capacities and to provide other infrastructure. utilities, and adequate community services.

J. General Land Use Policy C.3.a.9. Encourage that medium to high-density complexes be developed in appropriately designated areas and replace old, deteriorating residential structures.

K. General Land Use Policy C.4.a.3. Consider developing additional parks ofall types and sizes at various areas, with an emphasis placed on locating new facilities in the eastern and westem portions of the City and in neighborhoods in and around medium-to high-density developments.

L. General Land Use Policy D. 1.a.4. Maintain an adequate amount of and distribution ofpublic and quasi-public facilities.

M. General Land Use Policy D.l.a.S (b)(c)(e)(g). Ensure that major land use change proposals, particularly those regarding vacant schools, utility sites, and other institutional surplus properties, carefully consider many factors, including, but not limited to:
- Street capacity. public facilities, and other infrastructure impacts.

- Effects on the local circulation, public transportation, and regional circulation/transportationnetworks.
- The provision of services and utilities.
- All relevant environmental and physical constraints and resources. - Covina’s image and character.

N. General Land Use Policy D.l.a.7. Provide for the continuation of existing and developmentof new or expanded public streets and facilities, storm drains and other infrastructure, parking amenities, and utilities to support the City’s land uses and meet all needs.

0. General Land Use Policy D.3.a.9. Pay particular attention to the special needs and character of the downtown and continue appropriate economic revitalization and physical enhancement activities.

P. General Land Use Policy E. 1.n. Maintain the downtown area’s pedestrian friendly atmosphere as a means of enhancing its social and economic vitality.

Q. General Land Use Policy E.l .q. Attempt to maintain the attractiveness and condition of all streets and public landscaping, particularly major ones and those at key City entry points, public improvements, and public facilities, so that Covina evokes a positive perception by residents.workers, shoppers, passer-by, and others.

R. General Land Use Policy E.1.w. Preserve existing parklands and open space resources and consider developing additional parks of all types and sizes at various areas.

S. General Land Use Policy F. 1.i. Ensure that the circulation network and major street widths adequately serve all current and planned residential, commercial, industrial, and institutional uses — or that all future developments not overburden streets and other infrastructure or local services.

T. General Land Use Policy G.l.c. Achieve an adequately designed and functional street system and other infrastructure, including utility and storm drainage systems plus an adequate distribution of public and quasi-public facilities, in accommodating future growth to best maintain the community’s visual.economic.and spiritual vitality.

II. Circulation Element
A. General Circulation Policy C.3. Maintain and, where administratively and ?nancially possible. improve the physical condition. structural integrity, design capacity,

utilization, appearance, and/or cleanliness of Covina’s public right-of-way and facilities. including, but not limited to, streets, alleys, sidewalks, medians, landscaping, parking areas, and miscellaneous infrastructure.

B. General Circulation Policy C.4. Where necessary and feasible, conduct traffic circulationimprovements and congestion mitigationmeasures, including,but not limited to, traf?c signal installation, synchronization, or upgrade, lane restriping or modi?cation, and/or speed limit, stop sign, or street light installation.

C. General Circulation Policy C.6. Handle needed street and related infrastructure and transportation improvements on a realistic, viable, prioritized, systematic, consistent, and cost effective basis and, if possible, from the standpoint of bene?ting the greatest number of Covina residents and businesses.

D. General Circulation Policy C.7. Accommodate, where financially. administratively, and technically feasible, needed street and related infrastructure and transportation improvements. among other reasons, to minimize traffic con?icts and hazards as well as liability, to improve vehicular and pedestrian safety, to bolster ongoing code enforcement efforts, and to enhance community appearance, image, and character, social, economic, and recreational vitality, and overall quality of life.

E. General Circulation Policy C.1l. Reconcile the need to resolve remaining, major road and infrastructure deficiencies with the need to maintain the maturing community’s aging street and circulation networks.

F. General Circulation Policy C.16. Monitor and, where administratively and ?nancially possible, consider expanding the City’s bikeways and related facilities in appropriate areas, such as near or linking schools, parks. and major commercial activities and employment centers, for functional as well as recreational uses, in a manner that best meets local conditions and needs.

G. General Circulation Policy C.23. Continue encouraging, where administratively and ?nancially feasible, public transportation-and pedestrian-accommodating enhancements to the infrastructure, including. but not limited to, bus pads and sidewalk and wheelchair ramps.

H. General Circulation Policy D.6. Monitor and attempt to best maintain the functional and design adequacy and parking capacity of the Covina Metrolink Commuter Rail

Station and, where desired and feasible, improve and/or expand the Station and/or related parking to meet local and regional needs.

I. General Circulation Policy D.7. Accommodatethe linking of the Covina Metrolink Commuter Rail Station and other public transit depots to feeder transportation, to the greatest extent feasible.

J. General Circulation Policy E.1. Maintain and, where necessary and feasible, consider enhancements to downtown traffic, circulation, parking and overall infrastructure, including, but not limited to, better synchronizing traffic signals, constructing more off-street parking in de?cient areas, improving parking lot security/lighting, and better, more clearly linking off-street parking to district businesses through sufficient signage and other strategies.

K. General Circulation Policy E.4. Where appropriate, consider infrastructure and related enhancements to facilitate downtown pedestrian circulation, taking into account safety, lighting, pleasantness, adequacy, and accessibility for the disabled.

L. General Circulation Policy F.l. Ensure, to the greatest extent feasible, through direct or liaison efforts, the continued maintenance and adequacy and, where necessary, improvement of Covina’s sewers and sewage disposal systems system to prevent contamination of groundwater and receiving water quality and to accommodate long-term growth and revitalization.

M. General Circulation Policy F.3. Ensure. to the greatest extent feasible, through direct or liaison efforts, the continued maintenance and adequacy and. where necessary, improvements of Covina’s storm drain and storm drainage system to prevent or minimize flooding and soil erosion and to accommodate future growth and revitalization.

N. General Circulation Policy F.5. Ensure, to the greatest extent feasible, through direct or liaison efforts, the continued maintenance and adequacy and. where necessary, improvement of Covina’s water supply facilities and water distribution system as well as the ability of the water network to meet future growth and revitalization.

0. General Circulation Policy F.6. Ensure, to the greatest extent feasible, through direct or liaison efforts, that all current and future peak period water demands are met and that water pressure and fire flow rates in all areas are adequate.

P. General Circulation Policy G.13. Continue accommodating pedestrian circulation, to the greatest degree possible. in terms of adequately-sized, conveniently located.safe, functional.

unobstructed, and disabled-accessiblemajor-and small-streetpublic sidewalks, public crosswalks, private walkways and access routes, private walkways/access route linkages to public sidewalks, and sufficient connections betweenpublic sidewalk and crosswalks.

III. Natural Resources and Open Space Element
A. General Natural Resources and Open Space Policy B.2.h. Provide for landscape improvements to the City’s sidewalks, streets, civic properties, and related public spaces and facilities, in accordance with all applicable standards and provisions, for aesthetic and ecological reasons, to the greatest extent possible.

B. General Natural Resources and Open Space Policy B.2.i. Provide for needed landscape improvements to the City’s parks and recreational facilities, as described in the Covina Park System Master Plan and other sources, in accordance with all applicable standards and provisions, for aesthetic and ecological reasons, to the greatest extent possible.

C. General Natural Resources and Open Space Policy B.2.j. Encourage the preservation of existing mature street and other public trees in conjunction with all public works projects, except where infeasible and/or unsafe.

D. General Natural Resources and Open Space Policy C.1.i. Whenever possible and feasible.attempt to acquire and improve land for park and recreational uses.

E. General Natural Resources and Open Space Policy C.l.o. Continue to upgrade. enhance, redesign, and/or replace existing parks and recreational areas and appurtenant facilities and amenities to improve overall park use, safety, and/or appearance as well as to maintain community image and vitality, whenever possible.

F. General Natural Resources and Open Space Policy C.5.a. Continue providing for adequate maintenance of the physical condition, operation, cleanliness.and appearance of all parks and recreational facilities and appurtenant amenities, following reasonable, applicable procedures and standards.

IV. Safeg Element
A. General Safety Policy B.3.k. Maintain sufficient personnel, equipment. facilities. and resources in the Fire and Police Departments to handle ?re incidents.

SECTION 4. Based upon the entire record before the Planning Commission, all written and oral evidence presented to the Planning Commission. and the ?ndings made in this Resolution,

the Planning Commission hereby recommends that the City Council adopt the Fiscal Year 2023- 2027 City of Covina Five-Year Capital Improvement Program (CIP).

SECTION 5. The Planning Commission hereby directs the Community Development Directorto forward a copy of this Resolution to the City Council for their consideration at the next available regular City Council meeting.

SECTION 6. The Secretary shall certify to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED by members of the Planning Commission of Covina on this 12”‘day ofApril. 2022.
‘/ lA ’ 5; i I , /\/\/L
Jozi-FNCON , AIRMAN

COVINA PLANNING COMMISSION
I hereby certify that the foregoing is a true copy of a resolution adopted by the Planning Commission ofthe City of Covina at a regular meeting thereof held on the 12”‘day of April, 2022, by the following vote of the Planning Commission:

AYES: HODAPP, ZERMENO, MCMEEKIN, MANNING
NOES: NONE
ABSENT: NONE
ABSTAIN: N?
/’

COVINA PLANNING COM ECRETARY

PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
Item Project Title Project Location
Funding
Source(1) 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Tentative 1 Grand Avenue Street Improvements Project San Bernardino Road to Southerly City Limit
Gas Tax, Prop
C, STPL $ 1,942,710
2 Vincent Avenue Rehabilitation Project From Badillo Street to Northerly City Limit Prop C $ 1,500,000
3 Pavement Management Program City Wide TIF, Gas Tax $ 55,000 $ 60,000 $ 60,000 4 Badillo Street Resurfacing Project From Azusa Avenue to Lark Allen Avenue
Measure M, Gas
Tax $ 2,000,000
5 Street Residential Resurfacing Project City Wide Gas Tax, Prop C, R, $ 500,000 $ 800,000 $ 800,000 $ 800,000 $ 800,000 6 Rowland Avenue Street Rehabilitation Project Grand Avenue to Citrus Avenue SB-1 $ 1,360,881 7 Barranca Avenue Street Rehabilitation Project -
Phase I
From Northerly City Limit to San
Bernardino Road SB-1 $ 1,500,000
8 Miscellaneous Concrete Repair Project City Wide Gas Tax $ 200,000 $ 200,000 $ 200,000 $ 200,000 9 Traffic Signal Upgrade Project City Wide Gas Tax, Prop C, R, TIF $ 500,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 10 Traffic Calming Improvements Project City Wide Measure M $ 30,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 11 San Bernardino Avenue Street Rehabilitation
Project - Phase I
From Vincent Avenue to Azusa
Avenue
Measure M &
Prop C $ 2,000,000
12 San Bernardino Avenue Street Rehabilitation
Project - Phase II
From Hollenbeck to Citrus
Avenue
Measure M &
Prop C $ 800,000
13 San Bernardino Avenue Street Rehabilitation
Project - Phase III
From Citrus Avenue to Grand
Avenue
Measure M &
Prop C $ 1,500,000
14 Workman Avenue Street Rehabilitation Project From Citrus Avenue to Hollenbeck Avenue
Measure M &
Sewer $ 600,000
15 Workman Street Street Rehabilitation Project -
Phase II
From Citrus Avenue to Barranca
Avenue
Measure M &
Prop C $ 850,000
16 Glendora/Grand Avenue Sustainable Multimodal
Improvement Project Glendora/Grand Avenue Grants $ 1,100,000 17 Median Beautification Project City Wide
Prop C,
Measure M,
Measure W
$ 100,000 $ 100,000 $ 100,000 $ 100,000
18 City Wide Tree Planting Project City Wide Gas Tax $ 50,000 $ 50,000 $ 50,000 $ 50,000 Total $ 6,088,591 $ 5,900,000 $ 3,910,000 $ 3,550,000 $ 3,110,000

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEAR 2023-2027

ENGINEERING

PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
Item Project Title Project Location
Funding
Source(1) 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Tentative

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEAR 2023-2027

ENGINEERING
19 Front Street Water Main Installation Project From Citrus Avenue to Second Avenue Water $ 600,000
20 Fenimore Avenue, Loma Vista & Calvados Avenue
Water Main Replacement Project
From Rowland Avenue to
Workman Water $ 1,250,000
21 Edna Place Pipe Improvements Project Cypress St East of Grand Ave and West of Glendora Ave Water $ 6,000,000
22 Navilla and Forestdale Main Replacement Project
From Puente Street to Rowland
Avenue and From Grand to
Barranca Avenue
Water $ 5,000,000
23 Azusa Avenue Main Installation Project From San Bernardino to Edna Place Water $ 2,500,000
24 Rowland Avenue Water Service Replacement
Project
From Citrus Avenue to Grand
Avenue Water $ 500,000
25 Fourth Avenue Water Main Replacement Project From Badillo Street to San Bernardino Road Water $ 1,000,000
26 Cypress Avenue Water Main Replacement Project From Citrus Avenue to Barranca Avenue Water $ 4,000,000
27 Badillo Street Water Main Replacement Project From Azusa Avenue to Lark Allen Avenue Water $ 1,500,000 $ 2,000,000
28 San Joaquin Road and Rambling Road Main
Replacement
From Covina Hills to Navilla
Place Water $ 4,000,000
Total $ 2,350,000 $ 2,500,000 $ 6,000,000 $ 9,000,000 $ 8,500,000 29 Kelby Park Improvement Project Kelby Park Unfunded $ 1,500,000 30 Hollenbeck Park Improvement Project Hollenbeck Park Grants $ 1,200,000 31 Covina Park Master Plan City Wide Park Impact
Fees $ 39,000
32 Covina Skate Park Project Wingate Park Measure CC,
Sewer $ 1,000,000
33 Covina Park Aquatic Center Covina Park Unfunded $ 1,000,000 34 Cougar Park Parking Improvement Project Cougar Park Measure W, Prop 68 $ 300,000
Total $ 1,339,000 $ 1,200,000 $ - $ 1,000,000 $ 1,500,000 WATER

PARKS AND RECREATION

PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION
Item Project Title Project Location
Funding
Source(1) 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Tentative

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEAR 2023-2027

ENGINEERING
35 City Facility Renovation Project Civic Center Measure CC $ 500,000 36 City Hall Engineering Department Office
Renovation Project City Hall - Engineering Environmental $ 50,000 37 PD Generator Installation Project - Design Police Department Building Maintenance $ 100,000 $ 500,000
38 PD Locker Room Renovation Project - Design Police Department Building Maintenance $ 100,000 $ 800,000
39 Covina Recreation Village Project Phase II Covina Recreation Village (Citrus Avenue) Grants $ 3,000,000 $ 5,000,000 $ 5,000,000 $ 5,000,000 $ 5,000,000 40 Fuel Tank Rust Restoration and Repair Project City Yard Central Equipment $ 50,000
41 Incubator Co Working Space Project 401 N Citrus Avenue Measure CC
and Building
Maintenance
$ 400,000
Total $ 4,200,000 $ 6,300,000 $ 5,000,000 $ 5,000,000 $ 5,000,000 42 Manhole/Trench Adjustment Project City Wide Sewer $ 150,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 43 Sewer Relief Line Project City Wide Sewer $ 750,000 $ 1,200,000 $ 800,000 $ 800,000 $ 800,000 44 Sewer Repair Lines Project City Wide Sewer $ 500,000 $ 500,000 $ 500,000 $ 500,000 45 CCTV Inspection Project City Wide Sewer $ 500,000
Total $ 900,000 $ 2,250,000 $ 1,350,000 $ 1,350,000 $ 1,350,000 46 Quiet Zone Implementation Project Railroad Xing Prop A $ 500,000 $ 500,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 47 Metrolink Pedestrian Bridge Project Front Street to Covina Village Grants $ 3,500,000 $ 600,000 48 Bus Shelter Installation Project City Wide Prop A $ 100,000 Total $ 4,100,000 $ 1,100,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 49 DT Trash Enclosure Improvement Project - Phase
III
DT - 100 Block of N. Citrus
Avenue Environmental $ 150,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 50 Frontage Median Bioswale Installation Project Arrow Highway Environmental $ 150,000 $ 150,000 $ 150,000 $ 150,000 51 Wingate Park EWMP Project 935 N Glendora Avenue Environmental $ 14,260,168 $ 8,080,082 Total $ 150,000 $ 14,510,168 $ 8,330,082 $ 250,000 $ 250,000 Grand Total $ 19,127,591 $ 33,760,168 $ 25,590,082 $ 21,150,000 $ 20,710,000

FACILITIES
SEWER

TRANSPORTATION

ENVIRONMENTAL

City of Covina
FY 2022‐23 Fund Balance Summary
Fund Description
June 30, 2022 Fund
Balance
Revenue
Budget
Available
resources
Expenditure
Budget
June 30, 2023
Fund Balance Chg
1010 General Fund 9,471,696                  46,320,250      55,791,945         46,320,250             9,471,696              ‐ 1095 Special General Fund (Transaction/Use Tax) 6,481,741                  8,000,000         14,481,741         6,564,310               7,917,431              1,435,690 Total General Fund 15,953,437                54,320,250      70,273,687         52,884,560             17,389,127            1,435,690 2020 Low Mod Housing Asset Fund 274,976                      25,000              299,976               3,070,988               (2,771,012)             (3,045,988) 2025 Housing Bond Proceeds 04 Priva 748,980                      4,500                753,480               35,000                     718,480                  (30,500) 2055 2004 Bond‐Private 0                                  8,000                8,000                   ‐                           8,000                      8,000 2100 Community Development Block Gr ‐                              295,465            295,465.00         295,465                   ‐                          ‐ 2120 Permanent Local Housing Allocation (1)                                 459,715            459,714               459,715                   (1)                             ‐ 2140 Homeless Grant Fund ‐                              300,000            300,000               300,000                   ‐                          ‐ 2185 Building Equipment Reserve 8,632                          5,000                13,632                 11,000                     2,632                      (6,000) 2189 Heritage Tree Preservation 41,623                        ‐                     41,623                 ‐                           41,623                    ‐ 2205 Inmate Communication 30,114                        ‐                     30,114                 ‐                           30,114                    ‐ 2221 Federal Treasury Narcotics 21,011                        100                    21,111                 ‐                           21,111                    100 2222 Federal Justice Narcotic Siezu 172,259                      1,000                173,259               ‐                           173,259                  1,000 2230 Other State Grants ‐                              65,070              65,070                 65,070                     ‐                          ‐ 2246 Supplemental Law 461,973                      160,000            621,973               106,504                   515,469                  53,496 2271 Justice Assistance Grant (0)                                 14,286              14,286                 14,286                     (0)                             ‐ 2278 Homeland Security Grant 128                             ‐                     128                     ‐                           128                          ‐ 2290 Traffic Safety Fund 8,385                          7,000                15,385                 ‐                           15,385                    7,000 2300 State Gas Tax (2,251)                         1,413,790         1,411,539           1,215,000               196,539                  198,790 2310 Road Maintenance and Rehab 220,348                      1,115,132         1,335,480           1,110,881               224,599                  4,251 2360 CA‐Strong Motion Instrumentati 11,685                        ‐                     11,685                 ‐                           11,685                    ‐ 2365 SB1186 Fund 63,100                        ‐                     63,100                 ‐                           63,100                    ‐ 2370 CA‐Green Building Standards 2,682                          ‐                     2,682                   ‐                           2,682                      ‐ 2400 Proposition A 504,790                      1,328,239         1,833,029           1,808,518               24,511                    (480,279) 2405 Proposition C 54,501                        995,209            1,049,710           542,710                   507,000                  452,499 2407 TDA 24,961                        45,978              70,939                 1,000                       69,939                    44,978 2410 Measure R 2,710                          744,156            746,866               470,238                   276,628                  273,918 2420 Measure M 86,996                        1,843,577         1,930,573           1,930,000               573                          (86,423) 2500 Air Quality Improvement 25,085                        62,800              87,885                 86,470                     1,415                      (23,670) 2510 Measure W 330,418                      7,867,884         8,198,302           432,350                   7,765,952              7,435,534 2520 DOC Beverage Container Grant 0                                  12,300              12,300                 12,300                     0                              ‐ 2530 Oil Payment Program ‐                              7,054                7,054                   7,054                       ‐                          ‐ 5/12/2022 Exhibit A

City of Covina
FY 2022‐23 Fund Balance Summary
Fund Description
June 30, 2022 Fund
Balance
Revenue
Budget
Available
resources
Expenditure
Budget
June 30, 2023
Fund Balance Chg
2600 Cultural Arts 3,015                          ‐                     3,015                   ‐                           3,015                      ‐ 2604 Quimby Fees 204,485                      ‐                     204,485               ‐                           204,485                  ‐ 2700 Municipal Parking District 460,321                      184,600            644,921               152,993                   491,928                  31,607 2710 Street Lighting Assessment Dis (12,591)                      248,894            236,304               248,894                   (12,591)                   ‐ 2720 Street Trees and Landscaping 383,854                      211,389            595,243               151,053                   444,190                  60,336 2740 Community Facilities District 197,406                      176,681            374,087               303,000                   71,087                    (126,319) 2750 Shoppers Lane Parking District 27,909                        15,000              42,909                 8,700                       34,209                    6,300 2800 Literacy Grant ‐                              18,000              18,000                 18,000                     ‐                          ‐ 2807 Workforce Act Grant ‐                              10,000              10,000                 10,000                     ‐                          ‐ 2810 Library Equipment Reserve 57                                17,800              17,857                 16,400                     1,457                      1,400 2890 PEG‐Public Education and Government 494,533                      75,000              569,533               ‐                           569,533                  75,000 2920 Public Safety Donation 15,273                        ‐                     15,273                 ‐                           15,273                    ‐ 2922 DARE Donation Admin 4,787                          ‐                     4,787                   ‐                           4,787                      ‐ 2926 Gang & Graffiti Donation 922                             ‐                     922                     ‐                           922                          ‐ 2927 Police Explorer Donation 17,190                        3,500                20,690                 3,500                       17,190                    ‐ 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                    ‐ 2963 Joslyn Foundation Donation 20,247                        ‐                     20,247                 ‐                           20,247                    ‐ 2965 Youth Program Donations 11,483                        ‐                     11,483                 ‐                           11,483                    ‐ 2966 Youth Sports Equip Donation 55,562                        ‐                     55,562                 ‐                           55,562                    ‐ 2967 Volunteen Web Berger Grant 30,386                        2,200                32,586                 2,991                       29,595                    (791) 2968 Senior Fundraising Donations 6,272                          ‐                     6,272                   2,100                       4,172                      (2,100) 2969 Grandmothers Club Donations 2,008                          ‐                     2,008                   1,494                       514                          (1,494) 2970 Library Services‐Donation 43,414                        17,500              60,914                 17,500                     43,414                    ‐ 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 86,216                        ‐                     86,216                 ‐                           86,216                    ‐ 2990 ARPA 2,117,651                  5,675,524         7,793,175           3,542,265               4,250,910              2,133,259 4010 General CIP ‐                              400,000            400,000               400,000                   ‐                          ‐ 5/12/2022 Exhibit A

City of Covina
FY 2022‐23 Fund Balance Summary
Fund Description
June 30, 2022 Fund
Balance
Revenue
Budget
Available
resources
Expenditure
Budget
June 30, 2023
Fund Balance Chg
4060 Covina iTEC Project fund 52,861                        ‐                     52,861                 ‐                           52,861                    ‐ 4300 Transportation CIP ‐                              4,000,000         4,000,000           4,000,000               ‐                          ‐ 4600 Parks and Recreation CIP 34,169                        4,000,000         4,034,169           3,850,000               184,169.35            150,000 4630 Kahler Russell Park Gymnasium 111,540                      ‐                     111,540               ‐                           111,540                  ‐ 4640 Joslyn Center Reconstruction 5,000                          ‐                     5,000                   ‐                           5,000                      ‐ 4701 Impact Fees‐General Govt 213,706                      ‐                     213,706               ‐                           213,706                  ‐ 4702 Impact Fees‐Library Admin 187,015                      ‐                     187,015               ‐                           187,015                  ‐ 4703 Impact Fees‐Police Admin 74,685                        ‐                     74,685                 ‐                           74,685                    ‐ 4704 Impact Fees‐Park Fac Admin 39,355                        ‐                     39,355                 39,000                     355                          (39,000) 4705 Impact Fees‐Streets Adm 730,036                      25,000              755,036               755,000                   36                            (730,000) 4706 Impact Fees‐Fire Admin 107,580                      ‐                     107,580               ‐                           107,580                  ‐ 6010 Water Utility Admin (1,628,573)                 12,935,500      11,306,927         11,127,435             179,492                  1,808,065 6011 Water Capital Improvement Fund 9,149,675                  70,000              9,219,675           4,408,222               4,811,453              (4,338,222) 6200 Environmental‐Waste Mgmt 952,382                      1,165,360         2,117,742           2,099,783               17,959                    (934,423) 6300 Sewer Utility 5,771,540                  2,996,539         8,768,079           5,113,070               3,655,009              (2,116,531) 7010 Central Equipment Operations 1,866,002                  1,951,174         3,817,176           1,795,491               2,021,685              155,683 7020 Building Maintenance  1,854,596         1,854,596           1,529,896               324,700 7200 Information Technology 1,578,712                  1,247,986         2,826,698           1,247,986               1,578,712              ‐ 7360 Worker's Compensation 0                                  1,121,131         1,121,131           1,121,131               0                              ‐ 7370 Public Liablity (0)                                 1,417,781         1,417,781           1,417,781               (0)                             ‐ 8186 Downtown District 1,454                          9,000                10,454                 9,000                       1,454                      ‐ 8187 Prospero 375                             5,625                6,000                   5,625                       375                          ‐ T800 OPEB Trust 1,219,737                  120,000            1,339,737           6,700                       1,333,037              113,300 ZZZZ Default ‐ Employee Master ‐                              ‐                     ‐                      ‐                           ‐                          ‐ SXXX Successor Agency Funds (2,522,290)                 6,165,218         3,642,928           6,490,346               (2,847,418)             (325,128) 117,242,502 41,223,279    158,465,782       114,754,465           43,711,317            2,163,338 5/12/2022 Exhibit A

2021 2022 2022 2023
Legislative Actual Adopted Projected YE Adopted
City Council 45,780                 57,887          104,187         126,287 City Clerk 2,548                   2,748            2,748              2,748 Elections ‐                        189,900        339,900         100 City Treasurer 2,548                   2,748            2,748              2,748 City Attorney 257,262                     235,000        235,000          235,000 488,283 308,137        684,583         366,883
2021 2022 2022 2023
Administration Actual Adopted Projected YE Adopted
City Manager 227,708               252,460        261,460         348,467 Economic Development 85,918                 98,066          130,066         97,625 Public Information 94,319                 74,178          74,178           105,938 Records Management 248,777                     293,639        293,639          332,752 718,343 656,722        759,343         884,782
2021 2022 2022 2023
Administrative Services Actual Adopted Projected YE Adopted Accounting 892,622               988,790        988,790         1,118,981 Duplicating 10,378                 11,444          11,444           11,444 HR General Administration 400,051               388,292        413,292         502,224 General Insurance 638,144                     707,935        707,935          742,015 2,096,461 1,941,195    2,121,461      2,374,664
2021 2022 2022 2023
Non Departmental Actual Adopted Projected YE Adopted
Cost Allocation (2,901,175)          (2,822,874)   (2,822,874)    (2,822,874) Debt Service ‐                        ‐                 500,000         ‐ Intergovernmental 43,714                 41,700          41,700           44,000 Community Outreach ‐                        61,000          61,000           63,000 Transfers Out 815,866                     166,764        166,764          175,772 (2,553,410) (2,041,595)   (2,053,410)    (2,540,102)
City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2022‐23

City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2022‐23
2021 2022 2022 2023
Police Department Actual Adopted Projected YE Adopted
General Administration 5,576,963            5,524,629    5,617,107      5,695,776 Crime Prevention 506,197               526,700        587,817         538,534 Investigations 2,163,408            2,369,323    2,369,323      2,463,131 Patrol 8,603,536            8,323,537    8,403,537      9,539,067 Police Records 413,862               424,750        424,750         656,641 Jail 488,444               451,308        521,308         467,143 Canine 38,706                 39,306          39,306           3,500 Traffic Safety 207,387               495,821        495,821         538,978 Parking Control 382,300               393,191        423,191         470,694 Communications Svcs 1,424,463            1,411,664    1,476,664      1,437,636 Police Training 566,278               497,562        526,095         565,612 Computer Service 147,538               205,700        360,700         376,200 Disaster Preparation 5,171                   59,500          59,500           59,500 Animal Control 406,692                     360,200        360,200          374,600 21,083,191 21,665,319 20,930,945    23,187,012
2021 2022 2022 2023
Emergency Services ‐ COVID Actual Adopted Projected YE Adopted COVID‐19 Costs 596,007                              ‐        770,000                   ‐ ‐ 596,007                 770,000         ‐
2021 2022 2022 2023
Fire Department Actual Adopted Projected YE Adopted
Fire Suppression 11,073,705         11,975,759 11,975,759    12,008,428 2021 2022 2022 2023
Public Works Actual Adopted Projected YE Adopted
General Administration 198,376               215,890        215,890         350,388 Civic Center 104,595               125,662        125,662         ‐ Graffiti 292                       500                500                 500 Engineering 256,393               226,114        326,114         491,512 Streets 1,230,444            881,358        881,358         1,268,896 Street Lighting 262,832               300,000        300,000         300,000 Traffic Control 61,708                 141,500        141,500         124,200 Yard Center 171,634               276,531        276,531         ‐ Park Maint 876,195                     991,648        991,648       1,033,639 3,159,204 3,162,469    3,259,204      3,569,135

City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2022‐23
2021 2022 2022 2023
Parks And Recreation Actual Adopted Projected YE Adopted General Administration 610,324               588,673        611,560         742,907 Community Relations 122,281               206,109        206,109         204,525 Recreation Services 408,079               694,527        642,527         725,991 Community Programs 13,397                 53,471          163,980         66,475 Senior Services 145,405               366,635        322,971         432,501 Community Parade 40,618                 164,202        164,202         177,742 Community Special Events ‐                        25,221          25,221           27,550 Aquatics 212,577               295,939        320,939         305,461 Library Services 849,687                  1,126,728     1,042,007       1,134,306 3,521,505 2,402,368    3,499,516      3,817,456
2021 2022 2022 2023
Community Development Actual Adopted Projected YE Adopted General Administration 584,561               631,572        736,486         971,042 Historic Preservation ‐                        5,000            5,000              10,000 Planning 500,690               520,582        945,582         526,516 Planning Commission 12,674                 12,675          12,675           17,675 Building Inspection 671,329               712,943        708,993         733,622 Housing  ‐                        ‐                 50,000           ‐ Code Enforcement 385,600                     350,918        365,918          393,137 2,233,689 2,154,855    2,824,654      2,651,992
Total Gen Fund 41,184,809         42,723,024 45,506,427   46,320,250

CITY OF COVINA
Budget Policy

PURPOSE
The purpose of this policy is to define the principles behind preparing and administering the City’s annual financial plan.

ESTIMATED REVENUES
• Estimated revenues will be identified by fund, program and activity • Fund types include general,special revenue, debt service, capital projects, enterprise, agency and internal service funds
• Identify recurringvs. nonrecurring revenues
• Identify general revenues vs. restricted revenues

APPROPRIATIONS
• Each programwill identify activities and the recommended appropriations • Identify recurring vs. nonrecurring appropriations
• Identify general vs. restricted appropriations
• Continuingappropriationsfor year-end
o Encumbrances and contractual commitments
o Grant, restricted donation and capital project appropriations are considered life-cycle appropriations
o All other appropriations shall lapse at year-end unless carried forward by City Council action

FUND BALANCES/WORKING CAPITAL
• Budgetwill calculateavailablefund balances and/or working capital available in the variousfunds
• Budget will establish adequate reserves
o Capital needs
o Offset economic hard times
o Stabilize fluctuations in cash flow requirements
o Emergency situations
• General Fund
o Minimum of 20% of operating expenses-reserve shall be maintained o Excess reserves will be designated for nonrecurring activities or capital improvements • Internal Service Funds
o Maintain general liability and worker's compensation reserves based on actuarial recommendations.
o Maintain sufficient reserves to fund equipment replacement at the end of its useful life

• Enterprise Funds
o Maintain reserves as recommended by applicable rate studies • Restricted Funds
o Reserves can be used for only designated purposes
o Excess reserves can be designated for recurring and nonrecurring activities or capital improvements depending on the nature of the fund

COMMUNITY NEEDS ASSESSMENT, MONITORING AND REPORTING
• Identifying community needs for essential services
o Describing the programs required to provide the essential services o Identifying the purpose of activities performed in delivering services ▪ Identifying resourcesrequired toperform program activities andaccomplish goals and objectives
• Monitoring standards to measure and evaluate
o Output and outcomes of program activities
o Accomplishment of program activities
o Staffing levels
o Programactivity revenue and appropriations
▪ Make budgetary and financial decisions on conservative estimates of revenues, expenditures and other financing sources and uses
▪ The greater the uncertainty and/or volatility of the budgetary and financial estimates, the more conservative the estimates

CHANGES IN SERVICE LEVELS
• The base budget is the required appropriation level needed to maintain the previous year’s budget service level
• Change in service is the proposed increase or decrease in service level • Increase in services shall be offset with new revenue or a corresponding decrease in other program services
• Grants shall not have a negative impact on General Fund services • Future operating grants will not be funded by the General Fund unless there is a new revenue source or decrease in other program services

BUDGET SHALL BE BALANCED
• Ongoing and recurring costs shall be funded with ongoing and recurring revenues • One-time and nonrecurring costs shall be funded with excess ongoing revenues, available one-time revenues or excess reserves
• One-time or nonrecurring revenues shall not fund ongoing costs • Current costs shall be recognized and funded in the current year, not deferred or funded in future years whenever possible

• Budget sufficient funding levels to maintain current City services • The General Fund shall try to maintain a minimum $100,000 operating contingency for unanticipated events
• Make conscious decisions about cost recovery and/or general tax subsidy of those services that benefit only a portion of the tax paying public
• Formalize a five-year capital improvement program to identify priorities, service levels, funding sources and future impacts of decisions made today.

INFRASTRUCTURE MAINTENANCE
• Identify preventive maintenance of infrastructure to minimize future expenditures o Make conscious effort to amortize capital costs
▪ Replacing or expanding existing facilities and equipment ▪ With respect to equipment, rates shall be established to recover the replacement cost of each item at the end of its useful life ▪ Facilities shall be amortized to cover ongoing maintenance and cyclical repairs, and for the replacement or expansion of major structures

EXCEPTIONS
• City Council authorization is required except for:
o Emergencies
o Legal requirements
o Accounting changes and prior period adjustments

IMPLEMENTATION
• The City Manager shall be responsible for the preparation and submission of the budget • The City Manager shall be authorized to make the appropriate changes to adhere to the budget policy
• Staff shall report to the City Council periodically (quarterly or semi-annually at a minimum) with an update on actual revenues and expenditures as shown in the adopted budget

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. NB 1
Meeting: CC Regular Meeting - May 17 2022
Title: Ordinance 22-07, An Urgency Ordinance Establishing Regulations Pertaining to TwoUnit Residential Developments and Urban Lot Splits in Single Family Residential Zones Presented By: Brian K. Lee, AICP, Director of Community Development Recommendation: Adopt Ordinance 22-07 entitled, "An Urgency Ordinance of the City of Covina, California, Establishing Regulations Pertaining to Two-Unit Residential Developments and Urban Lot Splits in Single Family Residential Zones and Declaring the Urgency Thereof".

BACKGROUND:

On April 5, 2022, the City Council adopted Urgency Ordinance 22-03, which imposed an interim 45-day Urgency Ordinance to regulate urban lot splits and urban dwellings pursuant to Senate Bill (SB) 9. The Urgency Ordinance will expire on May 20, 2022, unless extended. Staff intended to request an extension as allowed under California Government Code Section 65858(b), which will extend the Urgency Ordinance for 10 months and 15 days. Due to procedural steps, the staff was not able to schedule the extension for Council consideration at this meeting. As a result, staff requests that the City Council adopt a new Urgency Ordinance (Attachment A) for another 45-days. It is of utmost importance to have another Urgency Ordinance in place with the established interim regulations. Attached for the City Council reference is the April 5, 2022 agenda report (Attachment B), which described and explained the interim regulations for the ministerial approval of urban lot splits and the development of two residential units per lot in single-family residential zones.

FISCAL IMPACT:

There are no direct budgetary impacts associated with the City Council adopting the Urgency Ordinance establishing interim regulations and objective standards for the subdivision and development of qualified SB 9 properties. There will be staff costs associated with this work.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Adoption of Urgency Ordinance 22-07 is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Division 13 (commencing with Section 21000) of Public Resources Code, and Government Code sections 65852.21(j) and 66411.7(n)) because an ordinance adopted to implement the rules of Senate Bill 9 is not considered a project under Division 13 of the Public Resources Code.

ATTACHMENTS:

Attachment A - Urgency Ordinance 22-07 (SB 9) Regulations Attachment B - April 5, 2022 Agenda Report - Urgency Ordinance 22-03 SB 9 Respectfully submitted,

ORDINANCE 22-07

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

COVINA, CALIFORNIA, ESTABLISHING REGULATIONS

PERTAINING TO TWO-UNIT RESIDENTIAL DEVELOPMENTS AND

URBAN LOT SPLITS IN SINGLE-FAMILY RESIDENTIAL ZONES AND

DECLARING THE URGENCY THEREOF
WHEREAS, City of Covina (City) declares this urgency Ordinance to become effective on January 1, 2022, establishing regulations pertaining to two-unit residential developments and urban lot splits within single-family residential zones in the City pursuant to Senate Bill 9 (2021), which became effective on January 1, 2022. Senate Bill 9 (SB 9) requires the City to approve ministerially two-unit residential developments and urban lot splits within single-family residential districts subject to objective standards. This urgency ordinance establishes objective standards and regulations relating to lot configuration, unit size, height, setback, landscape, architectural review, among other things. The lack of such objective standards and regulations for two-unit residential developments and urban lot splits would threaten the character of existing neighborhoods and negatively impact property values, personal privacy, and fire safety. The regulations adopted by this urgency ordinance will remain in place until the Covina Municipal Code is amended to incorporate the standards contained in this Ordinance or such other or different standards as may be enacted by subsequent Ordinance of the City Council; and WHEREAS, California Government Code Section 65858 authorizes the City Council to adopt, as an urgency measure, an interim ordinance for the immediate preservation of the public peace, health, or safety; and
WHEREAS, in 2021, the California Legislature approved and the Governor signed into law Senate Bill 9 ("SB 9"), which among other things, adds Section 65852.21 and 66411.7 to the Government Code enacting new limits on local authority to regulate urban lot splits and two-unit projects on land otherwise zoned for single-family development; and WHEREAS, SB 9 allows local agencies to adopt the objective design, development, and subdivision standards for two-unit residential developments and urban lot splits; and WHEREAS, SB 9 took effect January 1, 2022, and preempts any conflicting city ordinance; and
WHEREAS, the City desires to amend its local regulatory scheme to comply with Government Code sections 66411.7 and 65852.21 and to regulate projects governed by SB 9 appropriately; and
WHEREAS, there is a current and immediate threat to the public health, safety, or welfare based on the passage of SB 9 because the City currently lacks adequate local objective standards to regulate projects governed by SB 9, meaning that if the City does not immediately adopt appropriate objective standards for two-unit residential developments and urban lot splits that are consistent with SB 9, then as of January 1, 2022, the City's review of such projects would be limited to the application of the few objective standards that currently exist in the Covina