Agenda packet — Covina City Council, April 18, 2023 (part 3 of 4)

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

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

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

E. Survival of Terms. The indemnification in this Section 10 shall survive the expiration or termination of this Agreement.

11. Insurance.

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

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

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Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Consultant has no employees while performing services under this Agreement, workers’ compensation policy is not required, but Consultant shall provide an executed declaration that it has no employees. 4) Professional Liability Insurance [or Errors and Omissions Insurance] with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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

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

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

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

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

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

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phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

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

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

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of two years (2) years. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

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14. Termination or Suspension of Agreement.

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

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

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

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

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

If to City: If to Consultant:

Community Development Department Susana Hernandez
City of Covina Willdan Financial Services
125 E. College Street| 27368 Via Industria, Suite 200
Covina, California 91723 Temecula, California 92590
_

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

Consultant will take affirmative action to ensure that subcontractors and applicants are employed,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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City:

City of Covina,
a California municipal corporation
By:

Name:

Title:

ATTEST:

By:

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

By:

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

Willdan Financial Services,
a California Corporation
By:

Name:

Title:

By:

Name:

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

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EXHIBIT A

APPROVED FEE SCHEDULE

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
14 Fee for Services
Willdan proposes to provide the Special District Administration and Annexation Services outlined within the Scope of Services section to the City of Covina for the fees outlined below.

Annual District Administration Services
The fees below are based on the time estimated that will be spent on average each year, and on the current parcel counts. If and when the parcel numbers vary or the structure of the district(s) and special taxes/assessments/charges are modified, the fee structure will be adjusted accordingly by an addendum.

District FY 22/23
Fee
CFD 2007-1 $ 4,850.00
CFD 2022-1 (Stormwater) 4,000.00
Landscape Maintenance District 9,765.31
Lighting District No. 1 6,318.73
Vehicle Parking District 4,021.01
Sanitary Sewer Service Charge 10,339.74
Total Annual Administration Fee $ 39,024.79
Optional: Fee per Reminder Letter to Delinquent
Property Owners, at City’s Request $15
As the work progresses, the annual administration fee will be invoiced on a quarterly basis. In future years, the fee may be subject to increase, which will not exceed the most recent annual change in the Consumer Price Index (CPI) for All Urban Consumers in the Los Angeles-Long Beach-Anaheim area, as calculated by the United States Department of Labor. The CPI increase will be effective annually with notice on the anniversary of contract execution.

Notations
 Telephone conference calls are not considered meetings and are not limited by our proposal.  Additional services, including attendance at additional meetings or preparation of handbills, may be authorized by the City and will require an additional fee.  If the City wishes for Willdan to attend additional meetings specific to annual administration services and/or annexation projects, the fee will be $1,500 per meeting plus travel expenses.

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
15 Continuing Disclosure Services
Continuing Disclosure Services Fee
Engagement Fee for New Issues $250 per Issue
Base Annual Report Fee
Pension Obligation Bonds $1,250
Revenue Bonds $1,500
Certificates of Participation $1,250
Incremental Fee per Parity Issue $450
Supplemental/Amended Reports (if necessary) $250 - $950 per Report Notice of Occurrence of Listed Events $250 per Notice
CDIAC Report Preparation and Filing
CDIAC Yearly Status Report (due annually in October) $450 per Report CDIAC Yearly Transparency Report (due annually in January, while proceeds are outstanding) $950 per Report
CDIAC Yearly Transparency Report (due annually in January, once proceeds are fully expended) $250 per Report
Billed invoices are required to be paid within 30 days of receipt.

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
16 Arbitrage Rebate Services
To the extent that the necessary information is available, Willdan endeavors to quote fees that accurately reflect the complexity of the services requested. If circumstances are encountered that affect our ability to proceed, such as additional information coming to our attention not determined or available during our scoping efforts, we will inform you promptly and seek your approval for any changes in scope, timing or fees that may result from such circumstances.

The nature and complexity of each bond issue, the frequency of computation, and the transparency of the transactional data, determines the extent to which the following specialized services may apply.

Arbitrage Services Fee
Engagement Fee. One-time fee charged for newly contracted issues. $500 Base Fee. Annual report. $1,250
Base Fee. Installment report. $2,000
Data Analysis in Excess of 12 months. Arbitrage analysis for periods greater than one year will be charged an extra fee for each additional bond year analyzed.
$250 per year
Commingled Funds Analysis. Clients providing data with commingled funds will incur an additional charge to uncommingle transactional data. $250 per Fund Parity Reserve Allocation. Bonds that have been issued on parity that require an allocation of the reserve fund. $250 per Fund
Transferred Proceeds Analysis. The regulations require an additional level of analysis for proceeds of Refunding and Refunded bonds. $250 per Fund Universal Cap Analysis. The regulations require an additional level of analysis when the balance of bond proceeds exceed the value of the outstanding bonds. $500 per Year Non-Bona Fide Debt Service Fund. Our base fee assumes that the Bond Fund, as defined in the bond documents, meets the bona fide debt service fund exemption to rebate. If this fund fails to qualify for this exemption, an additional fee will be charged to analyze the investment activity. $500 per Fund
IRS Audit Assistance $150 per Hour
Request for Refund of Overpayment No Charge
Online Compliance Management System No Charge
Preparation of IRS Form 8038T (Payment) No Charge
Billed invoices are required to be paid within 30 days of receipt.

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
17 Special District Annexation Services
The fees denoted below are not contingent upon the successful annexation of the parcels to the applicable special district.

CFD Annexation Services
If the City wishes to annex parcels to an existing CFD the associated fee will be $3,000 per annexation. The fee associated with the optional service of attending a City Council meeting is $1,250 per meeting. 1972 Act District Annexation Services
If the City wishes to annex parcels to an existing 1972 Act District the associated fee will be $8,500 per annexation. The fee associated with the optional service of attending a City Council meeting is $1,250 per meeting. The cost associated with the mailing of notices and ballots is not included within the quoted fee and may be included as a separate cost depending on the number of ballots that need to be mailed via the United States Postal Service or Fed Ex, if deemed necessary.

Reimbursable Expenses
Willdan will be reimbursed for out-of-pocket expenses encountered throughout the contract term for all services proposed herein. Examples of reimbursable expenses include, but are not limited to:
 Postage
 Travel expenses
 Mileage (current prevailing rate)
 Maps
 Electronic data provided from the County
and/or other applicable resources
 Construction cost periodicals
 Copying (currently 6¢ per copy)
Any additional expense for reports or from third-party vendors will be billed to the City plus a ten-percent markup. Charges for meeting and consulting with counsel, the City, or other parties regarding services not listed in the scope of work will be at our then-current hourly rates. In the event that a third party requests any documents, Willdan may charge such third party for providing said documents in accordance with Willdan’s applicable rate schedule.

City shall reimburse Willdan for any costs incurred, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or relating to the services identified herein. Reimbursement shall be at Willdan’s rates in effect at the time of such response.

Additional Services
Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. Our current hourly rates are:

Willdan Financial Services
Hourly Rate Schedule
Group Director $210
Assistant Director | Principal Consultant $200
Senior Project Manager $165
Project Manager | Program Director $145
Senior Project Analyst $130
Senior Analyst $120
Analyst $100
Analyst Assistant $75
Property Owner Services Representative $55

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EXHIBIT B

SCOPE OF SERVICES

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T 951.587.3500  800.755.6864 | F 951.587.3510  888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com January 25, 2023
Ms. Alana Spector
Management Analyst - Housing & Grants
City of Covina
125 East College Street
Covina, California 91723
Re: Proposal to Provide Special District Administration and Annexation Services to the City of Covina Dear Ms. Spector:

Willdan Financial Services (“Willdan”) is pleased to submit the following scope of services and fee to the City of Covina (“City”) to provide Special District Administration and Annexation Services, including Continuing Disclosure and Arbitrage Rebate Services. Our team is comprised of leading experts in the field of special district administration, formation and annexation services, as well as federal compliance. We utilize the most advanced special district administration software, and our depth of resources and customer service are unmatched in the industry at a competitive fee.

We are excited about this opportunity to continue to serve the City of Covina. If you wish to discuss any aspect of this proposal, please contact Senor Project Manager Susana Hernandez at (951) 587-3546 or via email at [email protected].

Sincerely,
Willdan Financial Services
Gladys Medina
Vice President and Group Director

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
1 Scope of Services
The following outlines the proposed scope of services to provide Special District Administration and Annexation Services, including Continuing Disclosure and Arbitrage Rebate Services to the City of Covina (“City”). For the entire scope of services stated herein, Willdan Financial Services (“Willdan”) will rely on the validity and accuracy of the City’s data and documentation to complete our proposed scope of work. We will further rely on the formation data as being accurate without performing an independent verification of accuracy, and we will not be responsible for any errors that result from inaccurate data provided by the City or a third party.

We want to ensure that our scope of services is responsive to the City’s needs. We will work with the City to tailor our proposed work plans based on input received prior to approval of a contract, and as needed during the course of the project.

Annual District Administration Services
Community Facilities Districts
Listed below are the tasks associated with the annual administration of the City’s Community Facilities Districts (CFDs) 2007-1 and 2022-1.

1. Attend an annual meeting with City staff to discuss the special tax administration of the CFDs. This meeting can be in-person or virtual if the City prefers.

2. Create, maintain and periodically update an electronic database containing parcel data and annual special tax levy amounts by Assessor’s Parcel Number.

3. Annually calculate and apportion the special taxes as specified in the Rate and Method of Apportionment (RMA) of Special Tax.

4. Provide special tax levies for each parcel by Assessor’s Parcel Number to the County Auditor/Controller’s Office in the media, format, and configuration required by the County of Los Angeles for placement on the annual property tax roll.

5. Research parcel exceptions provided by the County and, if possible, resubmit installment amounts that are unapplied by the County Auditor/Controller’s Office. Willdan will manually invoice special tax installments that cannot be collected on the County property tax roll on behalf of the City.

6. Provide a toll-free number to field inquiries from City staff, property owners, and other interested parties regarding special tax installments and related information.

7. As requested, monitor delinquencies twice a year after obtaining delinquency information from the County and submit periodic delinquency reports to the City.

8. Prepare an Annual Special Tax report. This report will include:
 Fiscal Year budget information;
 Delinquency summaries; and
 Parcel special tax detail report.

9. Prepare “Notice of Special Tax” as required by the California Government Code, Sections 53340.2(b) and 53341.5, as amended. The fee for this service is $15 per Notice and is to be paid by the requestor.

10. At the City's request, prepare and mail invoices (handbills) to those property owners whose proposed annual special tax for their parcel could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices would be provided in two (2) installments, similar to the County tax bills, and would be payable directly to the City.

Client Responsibilities – CFD Administration
Willdan will rely on assistance from the City in obtaining the following information:
 Annual cost recovery information requested by Willdan to be included in the levy budget.

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
2  Information regarding land subdivision, issuance of building permits and/or certificates of occupancy (as required by the City). Although Willdan will annually research information, it may still be necessary to obtain additional assistance from the City.

Landscape Maintenance and Lighting Districts
Listed below are the tasks associated with the annual administration of the City’s Landscape Maintenance District and Lighting District No. 1.

1. Schedule an annual kick-off meeting with City stall to review the 1972 Act Districts; and identify and discuss possible district changes for the upcoming fiscal year, including budget issues, annexations, modifications to district structure, and improvement expansions or changes, as well as any legislative changes that may impact the districts.

2. Prepare an annual levy timeline identifying key dates and timeframes for pertinent tasks throughout the levy process. This timeline will be reviewed and discussed with staff, and adjusted (as needed) to address the City's scheduling requirements or proposed district changes.

3. Maintain and update a district parcel levy database for the upcoming fiscal year. Utilizing the parcel levy database from the prior fiscal year, update (as needed or as new data becomes available) the district's parcel information/data, which is necessary to calculate and submit the annual levy of assessments to the County Auditor/Controller's Office for the upcoming fiscal year. To identify possible parcel changes and discrepancies requiring review, enhance the data through parcel research by using updated secured roll information, County Assessor maps, or various third-party resources. Additional information provided by the City (e.g., updated tract maps, building permit information, or parcels the City has identified as "exempt' or as having special circumstances in calculating the annual assessments) will be reviewed and incorporated into the database.

4. Review the preliminary district budget provided by the City; focus on significant budget changes from the previous year, as well as on accurate cost recovery. As part of this review process, request clarification of specific expenses or revenues, thereby ensuring that budget(s) incorporate appropriate maintenance, material, and capital costs; administrative and other incidental expenses; and available revenue sources and fund balances. Utilize the updated parcel data and levy information to establish more accurate estimates of anticipated assessment revenues associated with the Districts.

Based on review of the preliminary budget(s), Willdan may provide specific recommendations or budget alternatives that the City may consider for inclusion in the final budget(s) to be incorporated in the annual Engineer's Report for presentation to the City Council. These recommendations may include both short and long-term budget considerations and objectives, which may facilitate changes in the level of assessment or funding from other sources. If necessary, meet with City staff to discuss aspects of the annual budget.

5. Prepare the district's annual Engineer's Report in accordance with the Landscaping and Lighting Act of 1972, and the provisions of California Constitution Article XIIID (Proposition 218). This report will include the following items:
 A general district description that may include key historical facts, zone designations, and descriptions; plus, a discussion of district benefits;
 A description of the plans and specification for the improvements (this may include a reference to documents on file at the City);
 An estimate of the improvement costs (budget);
 A description of the Method of Apportionment (assessment calculation);  A district diagram (provided by the City; updated, as required);  An assessment of the estimated cost to each parcel; and  An affidavit stating that a professional engineer has prepared the report.

6. Provide the City with one (1) bound copy of the Engineer's Report for the City Clerk, including the collection roll; and one (1) PDF copy via email for City staff to reproduce (as needed).

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Proposal to Provide Special District
Administration & Annexation Services
City of Covina
3 7. Attend (in addition to the annual kick-off meeting) up to two (2) City Council meetings, Public Hearings, and/or staff meetings; be available to answer questions posed by the City Council or staff.

8. Transfer levy data (upon completion of the Public Hearing and adoption of Resolution to Levy) to an electronic file that is compatible with the County's computer system to record individual parcel tax roll levy amounts.

9. File the electronic collection file, Resolution to Levy, and other necessary documentation required by the County Auditor/Controller's Office to collect assessments.

10. Research exceptions, update parcel number changes, and report revised parcels and updated levy amounts to the County upon receipt of the County's parcel exceptions list. As necessary, prepare additional County-required correspondences for the City that relates to the correction or removal of assessments from the County tax roll (tax bill change requests).

11. Act as primary contact, at the discretion of the City, to answer property owner questions regarding the districts and assessments.

12. Prepare and mail invoices (handbills), upon City's written request, to all property owners whose annual assessment could not be applied to the County tax roll (parcels for which the County does not generate a tax bill). These invoices would provide for two (2) installments similar to the County tax bills and would be payable directly to the City. Willdan will confirm that payment is made, and maintain a payment history for each hand-billed property.

Vehicle Parking District No. 1
Listed below are the tasks associated with the annual administration of the Vehicle Parking District No. 1.

1. Discuss with City staff (prior to the preparation of annual report) any possible changes to the district for the upcoming fiscal year, including budget issues, expansion or changes in the improvements, as well as any legislative changes that may impact the district.

3. Maintain and annually update the district's parcel database. Utilizing the parcel levy database from the prior fiscal year, update the district's parcel information data, which is necessary to calculate the estimated ad valorem assessment revenues, as based on available County-assessed property values within the district. To identify possible parcel changes and/or discrepancies, the district's parcel information will be updated by using available secured roll information, County Assessor maps, and various third-party resources. Additional information provided by the City (e.g., updated maps, building permit information, or acquisitions) will be reviewed and incorporated into the database.

Identified significant changes or inconsistencies will be researched and discussed with the City (as needed) to ensure that the annual assessment for each parcel is calculated according to the district's Method of Apportionment. The updated database will then become the source for estimating the annual assessment revenues for the district's budget. Assessor's parcel maps, secured data roll, or other necessary or required data sources for the calculation of the County's annual assessments or levy submittal (not provided by the City) will be purchased by Consultant and expensed to the City (at cost).

4. Review the preliminary district budget provided by the City; focus on significant budget changes from the previous year, as well as on accurate cost recovery. As part of this review process, request clarification of specific expenses or revenues, thereby ensuring that the budget(s) incorporate appropriate maintenance, material, and capital costs; administrative and other incidental expenses; and available revenue sources and fund balances. The district's updated parcel data will be utilized to establish anticipated assessment revenues.

Based upon the preliminary budget's review, provide specific recommendations or budget alternatives that the City may consider for inclusion in the final budget to be incorporated in the annual report for presentation to the City Council. These recommendations may include both short and long-term budget

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4 considerations and objectives, which may facilitate changes in the level of assessment or funding from other sources. If necessary, meet with City staff to discuss aspects of the annual budget.

5. Review the existing district boundary diagram to ensure that the boundary is consistent with parcels that are currently being assessed. Any inconsistencies will be discussed with the City.

6. Prepare (for presentation to City Council) the district's annual report in accordance with the Vehicle Parking District Law of 1943, and the provisions of California Constitution Article XIIIC and XIIID (Proposition 218). This report will include the following items:
 A brief discussion of the district's background and general description;  A description of improvement plans and specifications (may include a reference to documents that are on file at the City);
 A description of the Method of Apportionment (assessment calculation);  A budget summary of estimated expenses and revenues (provided by the City);  An assessment of the estimated cost to each parcel;
 A copy of the district's boundary (previously provided by the City); and  An affidavit stating that a professional engineer has prepared the report.

7. Provide the City with one (1) bound copy of the annual report for the City Clerk, including the collection roll; and a PDF of the report via email for City staff to reproduce, as needed.

Sanitary Sewer Service Charge
Listed below are the tasks associated with the annual administration of the City’s Sanitary Sewer Service Charges.

1. Review with City staff (prior to annual levy submittal) the district assessments applied to the tax roll for the prior fiscal year, as well as proposed charges calculated for the upcoming fiscal year.

2. Maintain and update an annual parcel levy database for the City's sewer charges by utilizing the parcel levy database that was established for the prior fiscal year. To calculate and submit the annual levy charges to the County Auditor/Controller's Office for the upcoming fiscal year, update (as necessary) parcel information and data. To identify possible parcel changes and discrepancies, the levy data will be based on the County's secured roll; and enhanced through parcel research by using updated Assessor's information and various third-party resources. Additional information provided by the City (e.g., updated tract maps, building permit information, or parcels the City has identified as "exempt' or as having special circumstances in calculating the annual assessments) will be reviewed and incorporated into the database.

To ensure that each parcel's annual charge is calculated according to the Method of Apportionment established by the City, identified significant changes or inconsistencies will be researched and discussed with the City (as needed). Updates to the database will include those necessitated by the addition and/or removal of parcels, land subdivisions and merges, land use changes, and adjusted benefit information.

The updated database will then become the source for calculating the annual charges. Assessor's parcel maps, secured data roll, or other data sources that are necessary or required for the calculation of the annual charges or for levy submittal to the County (not provided by the City) will be purchased by Willdan and expensed to the City.

3. Transfer levy data (upon completion of the Public Hearing and adoption of Resolution to Levy) to an electronic file that is compatible with the County's computer system to record individual parcel tax roll levy amounts.

4. File the electronic collection file, Resolution to Levy, and other necessary documentation required by the County Auditor/Controller's Office to collect charges.

5. Research exceptions, update parcel number changes, and report revised parcels and updated levy amounts to the County upon receipt of the County's parcel exceptions list. As necessary, prepare additional County-required correspondences for the City that relates to the correction or removal of the charges from the County tax roll (tax bill change requests).

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5 6. Provide a final levy tax roll listing to the City upon final reconciliation of the applied levy with the County.

Parcels for which a charge was proposed, but could not be applied to the tax roll, will be identified.

7. Act as primary contact (at the discretion of the City) to answer property owner questions regarding the sanitary sewer charge.

City Responsibilities – Landscape Maintenance and Lighting Districts, Vehicle Parking District and Sanitary Sewer Service Charge
The City is responsible for, and shall provide or prepare, the following in order to properly administer the Landscape Maintenance and Lighting Districts, Vehicle Parking District and Sanitary Sewer Service Charge.  Local newspaper publication and posting of Public Hearing notices, as required by law.  Changes, modifications, or updates to the improvements described in the prior year's Engineer's Report.  Updates of pertinent development information within the City (if needed) that would impact the annual charges.
 Copies of staff reports, resolutions, and other legal notices connected with the project (as may be required for Willdan to complete the outlined scope of work), including (at a minimum) certified copies of the resolution(s) or other documentation required by the County for submittal of the annual levy. The City will also schedule agenda items.
 Copies of the City Ordinance establishing charges or changes.  An updated list of improvements, provided and maintained by each district, for incorporation into the Engineer's Report. If available, the list of improvements should include detailed plans and specifications.  Updated boundary diagrams for incorporation into the Engineer's Report.  City Attorney's review for form and content of all resolutions.  Annual district budget information that is necessary to prepare the annual levy/report, including specific expenses, estimated fund balances required to calculate the annual assessments and prepare the Engineer's Report, and revenues (revenue information should comprise all revenues, other than the estimated assessment revenue).
 Information regarding land subdivisions, issuance of building permits, or other related development information (as requested by Willdan), including tract maps, improvement plans, Assessor's parcel maps, or other maps required to identify benefiting parcels for preparation of the Engineer's Report.  Coordinate and supply the County Auditor/Controller (upon completion of the district Public Hearing and adoption of the Resolution to Levy) with the tax rate and any necessary documentation for inclusion of assessments on the property tax bills.

Continuing Disclosure
Willdan will provide assistance and advice specific to ongoing continuing disclosure matters. With regard to the City’s outstanding debt financings, Willdan will support the City in preparing annual continuing disclosure reports. Willdan will help the City provide required financial and operating data requested by investors and/or required by the bond documents to keep securities holders informed of the investment quality of debt issue.

Willdan will also assist the City in responding to questions from investors and other market participants.

Task 1: Define Compliance Needs and Provide Implementation Schedule Objective: Collect bond documents relating to the debt issue, including but not limited to, the formation documents, the official statement, financial statements, Annual Continuing Disclosure Information Statement, and prior CDIAC report, if applicable.

Description: Willdan will review the bond documents and establish an annual reporting schedule.

Deliverable: Reporting schedule and instruction relating to online tracking systems.

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6 Task 2: Compile Data Necessary to Complete Continuing Disclosure and / or CDIAC Report
Objective: Collect data and other third-party information required to be included in the continuing disclosure report and/or CDIAC Report directly from the City, trustees, fiscal agents, state and county agencies and others.

Description: Review the information for accuracy and compliance with continuing disclosure documents.

Task 3: Report Preparation and Review
Objective: Create a draft of the continuing disclosure report and/or CDIAC Report for review.

Description: Willdan will discuss with City staff any relevant issues and provide suggestions regarding industry standards.

Deliverable: Continuing Disclosure and/or CDIAC Report.

Task 4: Report Dissemination
Objective: Provide timely Continuing Disclosure Report filings to the municipal market, CDIAC reports, if applicable, to the State of California.

Description: Once authorization to disseminate has been received, Willdan will post the report to EMMA and provide confirmation of the date and time of the posting. If applicable, Willdan will post the CDIAC report on the CDIAC website.

Deliverable: Upload completed and approved Continuing Disclosure Report to EMMA, or the currently recognized public repository. Submit CDIAC report to CDIAC.

Task 5: Notices of Occurrence of Listed Events and Supplemental Reporting Objective: Provide timely Notice of Occurrence of Listed Events to the municipal market and supplement annual filings as necessary.

Description: Willdan will prepare Notices of Occurrence of Listed Events covering events enumerated in Rule 15c2-12(b). Willdan will also prepare Supplemental Continuing Disclosure Reports, as necessary.

Deliverable: Upload Notices of Occurrence of Listed Events and Supplemental Continuing Disclosure Reports to EMMA, or the currently recognized public repository. Provide confirmation of the date and time of the posting.

Task 6: Investor Support
Objective: Present a unified message to the municipal market.

Description: Willdan will respond to investor calls either directly or after consultation with your staff.

Deliverable: Investor call support.

Task 7: Ongoing Regulatory Education
Objective: Ensure communication with the secondary market meets current regulatory requirements and is mindful of enforcement actions and investor concerns.

Description: Willdan will monitor information releases from CDIAC, the SEC and the MSRB regarding enforcement actions and regulatory changes. If requested, Willdan will review draft continuing disclosure documents for new issues.

Deliverable: Upon request.

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7 Client Responsibilities – Continuing Disclosure
The City is responsible for, and shall provide or prepare, the following in order for Willdan to providing continuing disclosure services.
 Financial and Operating Information, including but not limited to: bond documentation, adopted budget, audited and unaudited financial statements (if audited financials are not available), communications with CDIAC, bank statements/transactional data, and fund balances.  Timely review of draft Continuing Disclosure Report.
 Authorization to disseminate Continuing Disclosure Report.  All information relating to any change to the credit ratings or the occurrence of Listed Events as identified in the Continuing Disclosure Agreement or Certificate within three business days from the date of occurrence of such event.
 All Ratings Reports sent to Willdan by any Rating Agencies. Authorization for Rating Agencies, Trustees, and any other third parties to send information directly to Willdan.

Arbitrage Rebate Services
Outlined below are the tasks associated with the provision of arbitrage rebate services.

Task 1: Define Compliance Needs and Provide Implementation Schedule Objective: Obtain bond documents, prior reports, and transactional data necessary to prepare arbitrage computations.

Description: Willdan will review the bond documents and prior reports provided by the City and assess the special elections made at issue and the availability of regulatory exceptions.

Deliverable: Implementation schedule and access to online Compliance Management System.

Task 2: Verify Bond Yield and Prepare Arbitrage Rebate and Yield Restriction Analysis
Objective: Compute the cumulative arbitrage rebate liability and/or yield reduction payment accrual for each bond.

Description: Utilizing data provided by the City and authorized third parties, Willdan will:
 Verify the bond yield as stated on the 8038G;
 Identify gross proceeds, transferred proceeds, replacement proceeds, and all other funds subject to arbitrage rebate compliance;
 Assume all expenditures of bond proceeds have been made in accordance with Section 148(f) of the Internal Revenue Code;
 Compute investment earnings, taking into account the proper allocation of commingled funds;
 Future value transactions to the computation date;
 Test for exceptions to rebate and penalty in-lieu requirements;  Analyze unspent construction funds, overfunded reserves, and other events that may be in violation of Section 148(f) of the Internal Revenue Code;  Determine the yield reduction payment pursuant to Section 148(f) of the Internal Revenue Code; and
 Determine the cumulative arbitrage liability pursuant to Section 148(f) of the Internal Revenue Code.

Deliverable: None.

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8 Task 3: Review and Assess Analysis Outcome
Objective: Multi-tiered review of each prepared report and internal discussion of assumptions and opportunities to reduce the rebate liability.

Description: Proper application of the arbitrage rebate regulations requires understanding the purpose of the financing and the investment and expenditure of bond proceeds.

Once the mathematical analysis is complete, two (2) senior-level rebate consultants perform a comprehensive review of the report noting computational assumptions and technical issues to be evaluated. If appropriate, these issues will be communicated to the City.

Deliverable: Possible discussion with your staff.

Task 4: Conclusions, Recommendations, and Action Plan
Objective: Develop conclusions, recommendations, and produce reports.

Description: Willdan will deliver a cumulative inception to current bond year arbitrage rebate report for each bond under contract and, if warranted, will offer recommendations for actions to be taken including:
 Areas where allocation and accounting methodology could be enhanced;  Identification of technologies not currently in use that may be applicable and appropriate for future consideration;
 Identification of obstacles or challenges that could prevent timely or accurate compliance; and
 Instructions for filing IRS forms.

Deliverable: Completed arbitrage rebate report for each bond under contract inclusive of:
 Executive Summary detailing the assumptions and methodology used;  Summary Analysis of all relevant dates;
 Sources and uses of funds;
 Arbitrage yield and yield restriction requirements;
 Rebate liability summarized and by fund;
 Arbitrage/Investment Yield Comparison Graph;
 Rebate Calculations by fund; and
 Outstanding Investments Summary.

Task 5: Review Results
Objective: Discuss arbitrage rebate positions, opportunities, and possible areas of enforcement concern.

Description: Key strategic and procedural issues will be discussed, as well as strengths and challenges relating to long-term arbitrage rebate compliance.

Deliverable: Discussion with City staff.

Task 6: File IRS Payment and Refund Requests
Objective: Assist with filing arbitrage rebate payments and refund requests.

Description: Willdan will supply completed IRS forms and payment instructions, as needed.

Deliverable: Completed IRS Payment and Refund Request Forms, with accompanying instructions.

Task 7: Monitor Regulatory Enhancement and Enforcement Actions Objective: Willdan will help City staff stay abreast of regulatory interpretation and enforcement.

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9 Description: Willdan requires analyst staff to participate in yearly continuing education events and encourages discussion of current regulatory interpretation with clients. Depending upon the circumstances, Willdan may recommend procedural and documentation changes to City staff.

Deliverable: Audit assistance.

Special District Annexation Services
Included herein are separate work plans specific to the annexation of parcels to either an existing Community Facilities District (CFD) or 1972 Act District.

CFD Annexation Services
Willdan proposes to perform the following tasks to annex parcels into the City’s existing CFD. It is anticipated that Willdan will work directly with the developer to these tasks. It is recommended that annexation fees for our services be collected up front from the developer/property owner before project commencement.

1. Following receipt of the City’s authorization to proceed, we will discuss the annexation process and timeline with City staff and identify any additional documents or information that may be needed. At the City’s discretion, this discussion may include the developer/landowner and/or their representatives. As needed throughout the project, we will coordinate with City staff and with the developer(s), their consultant(s) and other outside agencies that may be directly involved in the project, to gather required information for the annexation proceedings.

2. Willdan will serve as the primary contact and liaison between the City and the developer and coordinate the CFD annexation process from start to finish to ensure all documents are distributed and received from the developer to the City in a timely manner and in accordance with the set schedule.

3. Prepare boundary map of the proposed annexation area that meets the requirements of the Community Facilities Act. An electronic copy of the final boundary map will be provided via PDF for the City’s review.

4. At the City’s request, prepare the Resolution of Intention and staff report.

5. Once the map has been approved by City Council, Willdan will provide the CFD Annexation boundary map for recordation at the County of Los Angeles.

6. Prepare the Consent and Waiver forms and property owner ballots.

7. At the City’s request, prepare the Public Hearing and election resolutions and staff report.

8. At the City’s request, prepare the Notice of Public Hearing to be published. The required noticed publication of the Public Hearing in the local newspaper is the responsibility of the City Clerk.

9. Prepare the letter to be sent to the County’s Registrar of Voters, if necessary, to obtain certification of the number of registered voters in the annexation area.

10. Prepare the Notice of Special Tax Lien to be recorded by the City Clerk and the AB 2476 letter.

Client Responsibilities – CFD Annexation Services
Willdan will rely on being able to obtain the following information from the City or the developer(s):
 Contact information for the developer/property owner’s specific contact person who will execute the petition, consent and waiver, and ballot documents.
 A listing of the properties to be included in the annexation area.  Information regarding current zoning, existing land uses, and proposed property development, as required.
 Either electronically or in hard copy, various maps or diagrams of the new development, improvements, or surrounding properties as needed.
 As needed, assist with obtaining pertinent development information from the developer.  Review and approve the draft reports and resolutions before the final documents are prepared for the Council packets. This review is typically performed by the City’s Attorney. Requested changes shall be submitted to Willdan in writing.

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10 1972 Act Annexation Services
The following outlines Willdan’s scope of services to assist the City with the annexation of parcels to an existing 1972 Act District. Services will be provided under the provisions of the Landscaping and Lighting Act of 1972 and Article XIID of the California Constitution (Proposition 218).

Task 1: Develop Annexation Parcel Database
Objective: Update the assessment database that will be used for the noticing and balloting of affected parcels.

Description: Willdan will develop a parcel database for affected properties (properties to be annexed), as well as surrounding properties that may benefit from the proposed improvements. This database will include relevant property information necessary for establishing the proportional benefit and assessments for these properties, consistent with current case law and to the extent possible the current methodology and administration of the applicable District. We will also input current property owner information into the database. Once this data is complete, the proposed assessment methodology and budget can be applied to determine the actual parcel assessment amounts and produce the assessment roll used for noticing and balloting.

Task 2: Develop Proposed Budgets
Objective: Prepare a comprehensive annual budget and corresponding assessment rates that are structured to achieve maximum cost-to-benefit equity for each property and ensure the longterm financial stability of those improvements.

Description: Work with City staff to prepare an appropriate annual budget applicable to the annexation territory, including those improvements being installed by the developer and/or any existing district improvements that benefit the parcels. The budget will be developed utilizing the improvement information and any specific cost estimates provided by the City. This budget should incorporate not only the annual maintenance costs, but also estimates of periodic maintenance expenditures; long-term repair and rehabilitation costs; applicable capital improvement expenditures; administration expenses; and any other funding deemed appropriate to provide the improvements.

Deliverables: Summary of the budget(s).

Task 3: Review Benefits/Improvements, Verify Assessment Methodology Objective: Review the improvements and services to be funded by the assessment and the areas and properties to be served in order to verify the existing special/general benefit nexus and assessment methodology is consistent with current case law.

Description: Review the improvement plans for the provision of services, installation/maintenance, and related expenses, in order to verify the benefit relationships between these improvements and services and the properties that will ultimately be annexed and assessed.

Applicable assessment law and the California Constitution require that we firmly establish a special benefit nexus between the properties that will be assessed, and the services being provided. Based on our findings during the analysis in this task, keeping within the established legal and legislative limitations, and accounting for the ramifications of current court decisions, Willdan will identify any necessary modifications to the existing assessment methodology to ensure a reasonable and defensible special benefit nexus for the proposed assessments. Although we do not expect the proposed method of apportionment to deviate significantly from the methodology currently utilized for the existing District, changing legislation and court decisions may warrant some modifications, particularly as it relates to general benefit. Even if the current method of apportionment is appropriate, we may suggest and implement new or expanded benefit descriptions into the Engineer’s Report that are deemed necessary to support the assessments.

Task 4: Prepare Engineer’s Reports
Objective: Prepare the Engineer’s Reports based on information gathered and in-line with the City’s criteria for ongoing maintenance and services.

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11 Description: Based on the findings and results from prior tasks an Engineer’s Report for the annexation will be prepared. Willdan will ensure that the information contained in the Annexation Report is consistent with information in the Annual District Reports.

The Engineer’s Report will include the elements listed below.  An overview of the annexation of parcels into the existing District.  A general description of the plans and specifications for the improvements that benefit the properties within the annexation territory.
 An estimate of improvement costs for the fiscal year. This information will be provided in a table format that will identify pertinent expenses and revenue used to determine the annual assessments for the annexation, including identification of direct maintenance costs and incidental expenses.
 A description of the boundaries and map of the annexation boundaries.  A description of the Method of Assessment (assessment calculation), including identification and discussion of benefit findings.
 An assessment of the estimated costs to each parcel (proposed assessments) presented as an appendix to the Report or as a separate exhibit listing each parcel and proposed assessment for the fiscal year in which the report is prepared.  An affidavit stating that a professional engineer has prepared the report.

Deliverables: One (1) draft Engineer’s Report for review by City staff. After receiving all edits and comments from City staff, Willdan will prepare and submit a final draft of the Report for Council action.

Task 5: Prepare Resolutions
Objective: Prepare resolutions for the Intent Meeting and Public Hearing.

Description: We will forward all resolutions to the City for review prior to the City Council meeting agenda deadline. We anticipate that the following resolutions will be necessary.

Intent Meeting (two resolutions):
 Resolution Initiating Proceeding; and
 Resolution of Intention, declaring the City’s intent to annex properties and to levy the annual assessments; preliminarily adopts the Engineer’s Report; sets the Public Hearing date; and calls for the property owner balloting.

Public Hearing (two resolutions):
 Resolution declaring the results of the property owner balloting; and  Resolution confirming the Engineer’s Report, the annexation of territory, the assessments, and ordering the levy and collection of those assessments.

Deliverables: A total of four (4) resolutions will be required for City Council approval. The first two are for the initial City Council meeting. The second set of resolutions is specific to the Public Hearing.

Draft resolutions will be delivered to City staff for review and comment prior to final versions being prepared and delivered to the City for the City Council agenda packet.

Task 6: Prepare Notices and Ballots
Objective: Prepare the necessary notice of Public Hearing and the assessment ballot, in compliance with Proposition 218.

Description: Prepare the required notice of Public Hearing and the assessment ballots to be mailed to affected property owners. Draft copies will be sent to City staff for review and comment prior to finalization of the documents.

Our draft of the notice and ballot will be consistent with and in a format widely used throughout the State for such assessment ballot proceedings. This documentation will be tailored as

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City of Covina
12 needed to specifically address the annexation and the assessments for each individual parcel.

Deliverables: The draft notice and ballot will be delivered to City staff for review and comment prior to the final versions being prepared for mailing.

Task 7: Print and Mail Notices and Ballots
Objective: Print and mail the approved notice and ballot.

Description: Upon adoption of the resolutions during the Intent Meeting, we will print and assemble the notice and ballot for mailing. The notice and ballot will be double-sided, in order to save money on postage costs. A return #9 envelope will be included for the property owner to mail back the assessment ballot to the City Clerk.

The notice and ballot will be delivered via first class mail. The ballot will contain instructions to return directly to the City Clerk and to not open until the close of the Public Hearing. Mailing of the notice and ballot will be completed a minimum of 45 days prior to the Public Hearing date as set in the resolutions described in Task 5.

Deliverables: Notices and ballots mailed to the property owners of record subject to the proposed new assessment.

Task 8: Public Hearing and Ballot Tabulation
Objective: Hold the Public Hearing to answer questions from the City Council and tabulate ballots received.

Description: At the City’s request, a Willdan representative will attend the Public Hearing to be available to answer questions from the City Council regarding the Engineer’s Report and/or the ballot process. Please see optional services below.

Upon the close of the Public Hearing, the City Clerk will be directed to open the ballot(s) received, and upon completion of the tally, announce the results. However, Willdan will be available to assist the City Clerk as needed and/or be available to answer questions if there are any irregularities or issues with the ballots or ballot process.

Meetings: One (1) City Council session for the Public Hearing upon City request.

Optional Service ─ Aend City Council Meengs
In order to keep the project cost down, we do not anticipate the need for Willdan to attend the Intent Meeting and/or Public Hearing. However, at the City’s request we can attend a Council meeting for an additional fee as outlined in the budget section of this submittal.

Client Responsibilities – 1972 Act Annexation Services
To assist Willdan, the City will provide the following information and/or services:
 Detailed listings and descriptions of the improvements, services and/or maintenance to be funded, which needs to be reviewed during the initial part of this project. Provide (as needed) pertinent budget information, which may include estimated construction costs, estimated service costs or rates, specific replacement costs and/or capital expenditures, City overhead, and available funding from other sources that can be used to offset costs.
 Various maps or diagrams (either electronically or in hardcopy) of the improvement areas and/or parcels to be included in the annexation.
 Prepare all internal memos, staff reports, and other supporting documents necessary for Council agendas.  Review the draft reports and resolutions before the final documents are submitted for the Council agenda packets. This review is usually performed by department staff but may include the City’s legal counsel.

Requested changes shall be submitted to Willdan in writing.

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City of Covina
13 Project Disclaimer
The City of Covina further represents, acknowledges, and agrees that:
(i.) The City uses the services of one or more municipal advisors registered with the U.S. Securities and Exchange Commission (“SEC”) to advise it in connection with municipal financial products and the issuance of municipal securities;
(ii.) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide, any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues); (iii.) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder; (iv.) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and
(v.) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

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Additional Services
Additional services may be authorized by the City and will be billed at our then-current hourly overhead consulting rates. Our current hourly rates are:

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EXHIBIT C

PROJECT TIMELINE

INTENTIONALLY OMITTED

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EXHIBIT D

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

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

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

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

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

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

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

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

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

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

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM #10.l.

Meeting: April 18, 2023
Title: Professional Services Agreement with Advantage Mailing, LLC for Printing and Binding Services for the City of Covina’s Quarterly Newsletter Publication Presented by: Lisa Evans, Director of Parks & Recreation and Library Services Recommendation: Authorize the City Manager to execute the Professional Services Agreement with Advantage Mailing, LLC.

EXECUTIVE SUMMARY:

Since 2012, the City of Covina has utilized the services of Advantage Mailing, LLC to print the City's publication "Covina Today." The company has provided exceptional service and a quality product at a competitive cost. The proposed agreement includes full-color printing, binding and trimming work for approximately 29,000 publication copies each quarter and includes a term of one-year, with two optional extension years. The total annual cost is $54,000 annually.

BACKGROUND:

The Parks & Recreation and Library Services Department has been responsible for the coordination of the City’s quarterly newsletter publication since 2017. In 2022, the department brought the graphic design of the publication in-house to help reduce costs and also improve its overall appearance. Parks & Recreation staff continue to work closely with other city departments to produce an informative brochure, which is mailed to every household and business in Covina.

DISCUSSION:

Advantage Mailing, LLC has provided printing, binding and FOB shipping for the City’s quarterly newsletter for more than 10 years. The company continues to provide excellent service, meets all deadlines, and keeps pricing competitive. It is therefore staff’s recommendation to renew the Agreement with Advantage Mailing, LLC.

FISCAL IMPACT:

Funds for these services are included in the FY 22-23 Adopted Budget and will be included in the FY 23-24 Proposed Budget in account 1010 3000 53500. As indicated in the agreement, the cost of printing, binding, and FOB services shall not exceed $54,000 annually.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated April 18, 2023 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Advantage Mailing, LLC, a California corporation (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor to provide printing and binding services, and FOB shipping to post office and City office of the City’s quarterly newsletter publication.

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

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

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through April 17, 2024, unless sooner terminated as provided in Section 13 of this Agreement. The City may, upon mutual agreement, extend the contract for two (2) additional one year terms. In no event shall the contract be extended beyond April 17, 2026.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant an annual amount not to exceed fifty-four thousand dollars ($54,000.00) for four (4) publications per year 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.

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

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

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3. Consultant’s Services.

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

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

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

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

D. Personnel. Consultant has, or will secure at its own expense, all personnel required to perform the services required under this Agreement. All of the services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services.

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

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

4. Method of Payment.

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

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

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

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

6. Independent Contractor.

A. Consultant is, and shall at all times remain as to City, a wholly independent contractor. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City.

B. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

7. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential. Consultant shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Consultant shall return all data to City upon the expiration or termination of this Agreement. Consultant’s covenant under this Section 7 shall survive the expiration or termination of this Agreement.

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

Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section 8 into any subcontract that Consultant executes in connection with the performance of this Agreement.

9. Indemnification.

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

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

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3) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Section 9 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.

B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Section 9, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 9 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Consultant’s indemnifications and obligations under this Section 9 shall survive the expiration or termination of this Agreement.

10. Insurance.

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

B. Acceptability of Insurers. The insurance policies required under this Section 10 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self insurance shall not be considered to comply with the insurance requirements under this Section 10.

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

D. Primary and Non-Contributing. The insurance policies required under this Section 10 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section 10 shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section 10 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 10 is canceled or reduced in coverage or limits, Consultant shall, within two (2) business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section 10 in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section 10, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any

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

I. Evidence of Insurance. Prior to the performance of services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 10. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

11. Mutual Cooperation.

12. Records and Inspections. Consultantshall maintain full and accurate records with respect to all matters covered under this Agreement for a period of one (1) year. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

13. Termination or Suspension of Agreement.

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

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

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

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

If to City: If to Consultant:

Attn: Parks & Recreation Director Attn: Chris Baker
City of Covina Advantage Mailing, LLC
125 E. College Street| PO Box 66013
Covina, California 91723 Anaheim, California 92816

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

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

17. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 17 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 17, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

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18. No Third Party Beneficiaries Intended. Except as otherwise provided in Section 9, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

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

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

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

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

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

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

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

26. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether

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contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

Name: Evelyn Leach
Title: Interim Chief Deputy City Clerk
Consultant:

Advantage Mailing, LLC,
a California corporation
By:

Name:

Title:

By:

Name:

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EXHIBIT A

APPROVED FEE SCHEDULE
Per publication charge not to exceed:
 32-page publication - Twelve thousand dollars ($12,000.00)  40-page publication – Fifteen thousand dollars ($15,000.00)

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EXHIBIT B

SCOPE OF SERVICES
 Production of 29,000 copies quarterly
 32-40 page publication
 Full-Color Print
 Bindery
 Stitch and Trim
 FOB – Covina Post office and Parks & Recreation office  Bulk Mail Paperwork for Post Office

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EXHIBIT C

PROJECT TIMELINE
This timeline is approximate, and may be adjusted upon notification and mutual agreement of both parties.

Winter Publication Spring Publication Summer Publication Fall Publication

FINAL DOCUMENT

DELIVERED TO

ADVANTAGE
Last week of
November
Last week of
February Last week of April Last week of July

DELIVERED TO POST
OFFICE
Second week of
December
Second week of
March Second week of May
Second week of
August

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM #10.m.

Meeting: April 18, 2023
Title: Consideration of Resolution CC 2023-30, Revising the Date and Time of the First Public Hearing of the Public Financing Authority of the Covina Enhanced Infrastructure Financing District
Presented by: Brian K. Lee, AICP, Director of Community Development Recommendation: Adopt Resolution CC 2023-30 revising the date and time of the first Public Hearing of the Public Financing Authority of the Covina Enhanced Infrastructure Financing District.

BACKGROUND:

On October 18, 2022 the City Council adopted Resolution CC 2022-113, declaring its intention to establish the Covina Enhanced Infrastructure Financing District (the “EIFD”) and establishing the Public Financing Authority of the Covina Enhanced Infrastructure Financing District (the “PFA”) to serve as the governing board of the EIFD. Resolution CC 2022-113 set the date for the first public hearing by the PFA regarding the Infrastructure Financing Plan as March 28, 2023 at 6:30 p.m.

Since that time, the PFA board held its first special meeting on March 21, 2023 and among other items, directed staff to prepare the Infrastructure Financing Plan and received the Infrastructure Financing Plan Adoption Schedule. The adopted schedule presented is shown below:

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DISCUSSION:

Since the adoption of Resolution CC 2022-113 in October 2022, discussions and scheduling of EIFD items have taken longer than anticipated due to extended review and stakeholder discussions. As such, it has become necessary to amend Resolution CC 2022-113 to change the date and time of the first public hearing of the PFA to June 6, 2023 at 5:30 p.m. at the City Hall Council Chambers. This meeting will be fully publicly noticed as required. Staff therefore requests to adopt Resolution CC 2023-30, amending the date and time of the public hearing.

FISCAL IMPACT:

None.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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RESOLUTION CC 2023-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING RESOLUTION CC 2022-113 TO REVISE THE

DATE AND TIME OF THE FIRST PUBLIC HEARING OF THE PUBLIC

FINANCING AUTHORITY OF THE COVINA ENHANCED

INFRASTRUCTURE FINANCING DISTRICT
WHEREAS, on October 18, 2022, pursuant to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with Section 53398.50) (the EIFD Law), the City Council adopted its Resolution No. CC 2022-113, declaring its intention to establish the Covina Enhanced Infrastructure Financing District (the “EIFD”) and establishing the Public Financing Authority of the Covina Enhanced Infrastructure Financing District (the “PFA”) to serve as the governing board of the EIFD; and
WHEREAS, pursuant to Section 9 of Resolution CC 2022-113, the City Council set March 28, 2023, at 6:30 p.m. as the date and time for the first public hearing by the PFA regarding the EIFD and the Infrastructure Financing Plan for the EIFD (the “IFP”); and WHEREAS, the City Council now desires to amend Resolution CC 2022-113 to change the date and time of the first public hearing of the PFA as set forth below.

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

SECTION 1. The City Council hereby amends Section 9 of Resolution CC 2022-113 to read as follows:
“Section 9. The City Council hereby sets the time and place for a public hearing of the PFA on the proposed EIFD and IFP, to be held on June 6, 2023, at 5:30 p.m., or as soon thereafter as the matter may be heard, at City Hall Council Chambers, 125 E. College Street, Covina, CA 91723.”
SECTION 2. This resolution shall take effect immediately upon adoption.

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

APPROVED and PASSED this 18th day of April, 2023.

City of Covina, California
BY: ______________________________
WALTER ALLEN, III, Mayor

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Attachment A
Resolution CC 2023-30 Page 2 of 2
ATTEST:
__________________________________
FABIAN VELEZ, Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2023-xx was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of April, 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________
FABIAN VELEZ, Deputy City Clerk

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM #10.n.

Meeting: April 18, 2023
Title: Resolution CC 2023-31, A Resolution of the City Council of the City of Covina Authorizing the City to Enter into the Settlement Agreements with Teva, Allergan, CVS, Walgreens, and Walmart, Agree to the Terms of the Memorandum of Understanding Allocating S
Presented by: Chris Marcarello, City Manager
Recommendation: Adopt Resolution CC 2023-31, A Resolution of the City Council of the City of Covina Authorizing the City to Enter into the Settlement Agreements with Teva, Allergan, CVS, Walgreens, Walmart, Agree to the Terms of the Memorandum of Understanding Allocating Settlement Proceeds, and Authorize Entry Into the Memorandum of Understanding With the Attorney General and Authorize the City Manager to Take All Actions Necessary and Convenient to Implement the Settlements.

EXECUTIVE SUMMARY:

In 2021, nationwide settlements were reached to resolve opioid litigation brought by states and local agencies against three pharmaceutical distributors—McKesson, Cardinal Health, and AmerisourceBergen —and against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson. The City chose to participate in the 2021 settlements.

In late 2022, additional settlement agreements were announced with three pharmacy chains—CVS, Walgreens, and Walmart—and two manufacturers—Allergan and Teva. As with the 2021 settlements, states and local agencies that want to participate in the 2022 settlements now will have the opportunity to opt in. The deadline for participating in settlement agreements is April 18, 2023. The proposed settlements will proceed only if there is sufficient local agency participation.

BACKGROUND:

As with the 2021 National Settlements, states and local governments that want to participate in the 2022 National Settlements now have the opportunity to “opt in.” The greater the level of subdivision participation, the more funds will ultimately be paid out for abatement. Assuming maximum participation, the 2022 National Settlements require:
 Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or $240 million of cash in lieu of product, as each state may elect;  Allergan to pay up to $2.02 billion over 7 years;
 CVS to pay up to $4.90 billion over 10 years;
 Walgreens to pay up to $5.52 billion over 15 years; and  Walmart to pay up to $2.74 billion in 2023, and all payments to be made within 6 years.

These figures include amounts attributable to prior settlements between the Defendants and certain states/subdivisions and amounts for attorneys’ fees and costs.

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Under both the 2021 and 2022 National Settlements, at least 85% of the funds going directly to participating states and subdivisions must be used for abatement of the opioid epidemic, with the overwhelming bulk of the proceeds restricted to funding future abatement efforts by state and local governments.

California and its cities and counties stand to receive up to $1.8 billion in the 2022 National Settlement for substance use prevention, harm reduction, treatment, and recovery. Payment timeframes vary by settlement and can last up to 15 years. The exact amount of settlement proceeds that California (and its participating cities) will receive will depend on various factors including the level of participation by local agencies. A complex formula weighing various factors will then be applied to determine the amount payable to local agencies. Accordingly, the exact amount of those funds that the City may receive will not be known until after the April 18, 2023 opt-in deadline.

The National Settlements allot a certain amount of money to California to be allocated between the State and local governments. That amount is divided between State and California local governments by agreement (the “Allocation Agreements”). The Allocation Agreements split the dollars coming into California as follows:

1. 15% to a State Fund;

2. 70% to local governments in an Abatement Accounts Fund; and

3. 15% to litigating local governments in a Subdivision Fund.

A city that is an Eligible Local Government will be allocated its Local Allocation only when it becomes a Participating Subdivision by signing the Participation Agreements to the Settlements. The State agreements are available online at https://oag.ca.gov/opioids. Covina must approve the Settlements to be eligible to receive funds, and to avoid having the City’s share go to the State.

There are a number of reasons for the City to agree to the settlements prior to the April 18, 2023 deadline:
 The City is already participating in two settlements relating to the opioid litigation, and this is a logical extension of the City’s previous participation.
 This proposal is a product of years of litigation and years of settlement negotiations.  Negotiators have put forward this deal because they believe it is the possible best deal.  Money is critical to addressing the opioid epidemic at this time.  Litigation has real risk.
 Further insolvencies and bankruptcies of defendants are a real risk.  The State of California would receive money to combat the opioid epidemic, thereby benefitting that entire State of California.

Cities and counties that wish to become initial participating subdivisions must sign and submit the Settlement Agreements and State Subdivision Agreements by April 18, 2023. Cities can then request direct payment of their settlement funds, or let the local allocation be paid to the County. Staff recommends that the City elect direct payment of the settlement funds, as it did for the 2021 National Settlements. Cities that elect for direct payment must follow the use and reporting requirements of the Settlement Agreements. The settlements allow for a broad range of approved uses by state and local governments to abate the opioid epidemic. A list of approved uses (Exhibit E of the Settlement Agreements) is included with the proposed settlement agreement.

The settlements are the product of years of litigation and settlement negotiations. All parties believe this is a fair settlement that brings significant funding to address the opioid epidemic. It is recommended that the City participate in the settlement, approve the agreements, and retain the settlement funds over the coming years for programs and services to be developed locally to serve the community in accordance with the program guidelines.

FISCAL IMPACT:

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There is no financial impact to the City. Covina will receive Settlement Funds for the specified uses limited to the treatment of opioid abusers and prevention of opioid abuse.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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RESOLUTION CC 2023-31

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

CALIFORNIA, AUTHORIZING THE CITY TO ENTER INTO THE

SETTLEMENT AGREEMENTS WITH CVS, ALLERGAN, TEVA, WALMART, AND WALGREENS, AGREEING TO THE TERMS OF THE RELATED STATESUBDIVISION AGREEMENTS, AND AUTHORIZING THE CITY MANAGER

TO TAKE ALL ACTIONS NECESSARY TO IMPLEMENT THE

SETTLEMENTS
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death. The State of California and California local governments spend billions of dollars each year to address the direct consequences of this crisis; and WHEREAS, since 2017, state and local governments in California and around the United States have been pursuing litigation against certain manufacturers, distributors, and retailers of opioid pharmaceuticals in an effort to hold the Opioid Defendants financially responsible for the impact on of the Opioid Epidemic on the City of Covina (“the City”) and resources necessary to combat the opioid epidemic; and
WHEREAS, on or about November 14, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walmart Inc. (“Walmart”); and WHEREAS, on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LLC, Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively, “Teva”); and WHEREAS, on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc) (collectively, “Allergan”); and
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and CVS Health Corporation and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, “CVS”); and WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreen Co. (“Walgreens”); and WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan are referred in this Resolution as “Settling Defendants”; and

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Attachment A
Resolution CC 2023-31 Page 2 of 3
WHEREAS, negotiations with the Settling Defendants have resulted in proposed nationwide settlements of state and local government claims to settle the Litigation; and WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants; and
WHEREAS, the Master Settlement Agreements are available for review on-line at https://nationalopioidsettlement.com/ and at https://oag.ca.gov/opioids; and WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and
WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and
WHEREAS, copies of the State Allocation Agreements are available online at https://oag.ca.gov/opioids; and
WHEREAS, The Allocation Agreements allocate the California Opioid Funds as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”); and
WHEREAS, the funds in the CA Abatement Accounts Fund (the California Abatement Accounts Fund Allocation) will be allocated based on an allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804). The percentage from the CA Abatement Accounts Fund allocated to each eligible local government (any county or city above 10,000 in population) “Eligible Local Government”) is set forth in Appendix 1 to each Allocation Agreement and provided to the Council with this Resolution. The City’s share of the CA Abatement Accounts Fund is a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 to the Allocation Agreements (the “Local Allocation”); and
WHEREAS, any city that is an Eligible Local Government will be allocated its Local Allocation share only when it becomes a Participating Subdivision by signing the Participation Agreements to the Settlements. The Local Allocation share for a city that is a Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date as defined in the Settlement Agreements.

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Resolution CC 2023-31 Page 3 of 3

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA HEREBY RESOLVES AS FOLLOWS:

SECTION 1. The City Council hereby approves and authorizes the City Manager to settle and release the City’s claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements and Allocation Agreements.

SECTION 2. The City Manager shall have authority to, and is directed to, take all actions necessary on behalf of the City to implement and effectuate the agreements approved by this Resolution in consultation with the City Attorney.

SECTION 3. All actions heretofore taken by the Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

SECTION 4. The Deputy City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18th day of April, 2023.

City of Covina, California
BY: ______________________________
WALTER ALLEN, III, Mayor
ATTEST:

FABIAN VELEZ, Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2023-31 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18thday of April, 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Deputy City Clerk

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM #10.o.

Meeting: April 18, 2023
Title: Appropriation for Public Safety Facility Repairs and Contract Emergency Planning Services
Presented by: Chris Marcarello, City Manager
Recommendation: That the City Council adopt Resolution CC 2023-32, authorizing appropriations from the City’s allotment of American Rescue Plan Act funds to complete certain public safety facility repairs and emergency services planning functions.

EXECUTIVE SUMMARY:

The City Council is requested to consider the appropriation of funds for certain public safety facility repairs and emergency services planning functions. The proposed activities include concrete/parking lot repairs, plumbing repairs and heating/ventilation repairs at City-owned facilities that house local public safety functions. Further, the proposed funding will facilitate the completion of key emergency services initiatives currently underway, including the Los Angeles County Fire Department’s implementation of a new mass evacuation notification system and other mass casualty planning protocols.

BACKGROUND:

Facility Repairs
The City has four (4) facilities that are dedicated to local public safety functions, including the Police Department facility at 444 N. Citrus Avenue, Station 154 at 401 N. Second Avenue, Station 153 at 1577 East Cypress Avenue and Station 152 at 807 West Cypress Avenue. Most of these facilities are 1970s-era and have aging systems – including electrical, plumbing and heating/ventilation equipment. From time-to-time, additional unforeseen repairs are needed to maintain regular operations.

The repairs are needed at these public safety facilities include the following:
 Plumbing and Sump Pump Repairs (Police Station)
 Heating/ventilation Repairs (Police Station)
 Repair and repaint exterior building fascia (Fire Station)  Replace damaged/deteriorated concrete and asphalt concrete roadway (Fire Station)  Repaint interior apparatus bay (Fire Station)
The City obtained cost estimates from existing contract service providers for repairs and determined that the aggregate cost will be $268,000, including a 10% contingency amount.

Of note, per the terms of the City’s 2003 agreement with the Consolidated Fire Protection District of Los Angeles County (“District”), the District is responsible for routine repairs not to exceed $30,388 annually per fire station.

Upon agreement by the Fire Chief and City Manager, any non-routine repairs may be completed by the City or the District. As such, the City reviewed he District’s cost estimate of $508,000 (Attachment 1) for fire station repairs and determined that cost savings could be achieved by utilizing existing City contract service providers.

Emergency Services Planning
The City’s operating budget includes $50,000 for a contract services provider to provide emergency planning and disaster preparedness services. In the current budget year, the provider has increased its workload in assisting the

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City with the LA Co FD’s implementation of a new mass evaluation system – Zonehaven – and in the development of mass casualty response protocols. As proposed, the City would appropriate an additional $13,000 for the completion of these projects this fiscal year.

FISCAL IMPACT:

As proposed, $30,000 will be appropriated into 1010-1000-52400 for Police Department facility repairs, $13,000 into 1010-1700-51005 for contract emergency services planning and $238,000 into 2990-1650-55100 for fire station repairs.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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RESOLUTION CC 2023-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING THE FISCAL YEAR 2022-23 BUDGET TO
APPROPRIATE $281,000 FOR THE COMPLETION OF CITY FACILITY

REPAIRS AND EMERGENCY SERVICES PLANNING
WHEREAS, the City of Covina owns certain real property and facilities that are used for public safety functions; and
WHEREAS, such public safety facilities are in need of certain plumbing, heating/ ventilation, exterior façade, interior painting, drainage and roadway repairs in order to maintain operability; and
WHEREAS,such repairs were unforeseen and not included in the City’s Fiscal Year 2022- 23 budget; and
WHEREAS, City staff has worked with its existing contract services maintenance providers to develop cost estimates to complete repairs; and WHEREAS, timing is of the essence to complete facility repairs and ensure a continuity of public safety services.

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

SECTION 1. Amend the Fiscal Year 2022-23 Operating Budget as follows:

Account Number Description Project Name Amount
1010-1000-52400 Maint. /Bldg. Repairs $ 30,000
1010-1700-51005 Emergency
Preparedness
$ 13,000
2990-1650-55100 Buildings and
Structures
$238,000
SECTION 2. Authorize the City Manager to enter into professional services agreements for related repairs in an amount not to exceed $281,000.

SECTION 3. This Resolution shall take effect immediately upon adoption.

SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

APPROVED and PASSED this 18th day of April, 2023
Attachment A

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Resolution CC 2023-32 Page 2 of 2
City of Covina, California
BY: ______________________________
WALTER ALLEN, III, Mayor
ATTEST:
__________________________________
FABIAN VELEZ, Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2023-32 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of April, 2023, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________
FABIAN VELEZ, Deputy City Clerk

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Attachment B

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CC Regular Meeting

AGENDA ITEM REPORT
Item #11.a.

Meeting: April 18, 2023, City Council
Title: Planned Community Development Modification 22-1
Presented by: Brian K. Lee, Director of Community Development Recommendation: That the City Council approve Planned Community Development Modification (PCD) 22- 01 and introduce Ordinance CC 23-03, entitled “An Ordinance of the City Council of the City of Covina, California, Approving Planned Community Development Modification (PCDM) 22-01 as Modified and Amending the Covina Townhomes Planned Community Development (PCD) 77-002 District Overlay Zone by Modifying Condition of Approval No. 4 and Adding Numbers 12 and 13 Under Section 3 of Ordinance No. 1374, and Making a Finding of Exemption Under the California Environmental Quality Act (CEQA) Guidelines”.

On March 14, 2023, the Planning Commission approved Planning Commission Resolution No. 2022-024 PC, recommending to the City Council a modification to Planned Community Development (PCD) 77-002 (Ordinance. 1374) as follows:
 Replacement of the former wooden fence and twelve (12) foot wide emergency egress gate spanning the width of the East Nubia Street right-of-way with a new tubular-steel fence, twenty (20) foot wide gate for emergency egress only and a pedestrian access gate (with a perforated metal visibility screen attached to the tubular-steel fence);
 Installation of a new tubular-steel security fence/vehicle and pedestrian gate main entrance feature securing the North Citrus Avenue access; and,
 Modification to the existing common area tennis court to provide for basketball play.

BACKGROUND:

On May 15, 2022, the applicant submitted plans to the Planning Division for review. City staff routed plans for review to the following divisions and agencies: Planning, Public Works, Covina Police, and Los Angeles County Fire Department. The project applicant (Covina Townhomes HOA) requested an amendment to PCD 77-002, to construct a new Citrus Avenue primary (front) vehicle and pedestrian entry gate and fence, modify the existing tennis court to provide for basketball use and to modify the 1977 approval of the East Nubia Street fence and emergency access gate to allow vehicle and pedestrian access via a tubular-steel fence system spanning the width of the East Nubia Street right-of-way.

The requested PCD modification application is a result of property maintenance notices that were issued to Covina Townhomes for the collapse of the original wood fence and emergency gate feature abutting the East Nubia Street right-of-way. The collapsed wood fence and emergency gate resulted in an unrestricted access between the Covina Townhomes and the East Nubia Street right-of-way.

Prior to consideration of modification to PCD77-002 by the Planning Commission, City staff (Planning, Public Works, Police and Los Angeles County Fire Department) analyzed the requested modification. Staff recommendation to the Planning Commission was to approve the proposed primary Citrus Avenue fence and gate feature, the modification to the existing tennis courts to allow for basketball, and the reconstruction of the fence along the property line abutting the width of the East Nubia Street right-of-way. Staff’s recommendation for the East Nubia Street fencing proposal was to allow for the requested tubular-steel fence (with perforated metal EXECUTIVE SUMMARY:

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screening), restrict the vehicle access gate to emergency access only (secured by a “Knox Box” locking feature) and to allow a pedestrian gate. Note: the width of the emergency access gate is required to be widened to twenty (20) feet pursuant to current Los Angeles County Fire Department standards.

DISCUSSION:

After hearing public testimony and Planning Commissioners’ discussion, the Planning Commission voted to approve Resolution 2022-024 PC, as recommended by City Staff, and making a finding of Exemption under CEQA. The Planning Commission approved Resolution 2022-024 PC with a vote of 5-0.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Community Development Department staff has determined that the project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) Guidelines. The project qualified as a Class 1 exemption under State CEQA Guidelines Section 15301, which covers the operation, repair, maintenance, permitting, or minor alterations of existing public or private structures of the CEQA Guidelines. The project would consist of adding/repairing a wrought iron fence at the rear access from East Nubia Street, and the installation of new security gates at the main entrance off Citrus Avenue. Staff finds that there is no substantial evidence that the project will have a significant effect on the environment.

Respectfully submitted,

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ORDINANCE 23-03

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA,

CALIFORNIA, APPROVING PLANNED COMMUNITY DEVELOPMENT
MODIFICATION (PCDM) 22-01 AS MODIFIED AND AMENDING THE

COVINA TOWNHOMES PLANNED COMMUNITY DEVELOPMENT
(PCD) 77-002 DISTRICT OVERLAY ZONE BY MODIFYING CONDITION OF APPROVAL NO. 4 AND ADDING NUMBERS 12 AND 13 UNDER
SECTION 3 OF ORDINANCE NO. 1374, AND MAKING A FINDING OF

EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY

ACT (CEQA) GUIDELINES
WHEREAS, Stephanie Callahan, the Applicant, on behalf of the Covina Townhome Owners Association (HOA), filed Planned Community Development Modification application, PCDM 22-01, a request to modify Planned Community Development (PCD) 77-002 (Ordinance. 1374) Section 3, Conditions of Approval, number 4, to approve the following modifications:
a) The installation of a 6-foot tall wrought iron fence with a pedestrian gate, approximately 36’-4” feet in length, for “emergency access” only to East Nubia Street, providing a Knox-box for only emergency responders.
b) Installation of a new security gate to the front of the property (Citrus Ave) with the proposed modifications to their open space to accommodate the proposed vehicular turnaround; and,
c) Modify their outdoor recreation area (common open space) to include two new basketball posts to their existing tennis court, to serve as both a tennis and basketball court; and
WHEREAS, On December 5, 1977, the City Council approved Ordinance No. 1374 establishing a Planned Community Development (PCD) 77-002 District Overlay Zone; and WHEREAS, Covina Municipal Code (CMC) Chapter 17.58 governs Planning Community Developments and provides that applications for PCDs may be determined pursuant to the procedure set forth in CMC 17.80.090 through 17.80.150; and WHEREAS, CMC Section 17.80.090 provides that the owner of property proposed for a PCD amendment or the authorized representative of the owner may initiate proceedings by filing a petition with the City’s Planning Department on forms provided; and WHEREAS, CMC Section 17.80.110 provides that the City’s Planning Department shall investigate the facts bearing on the proposed PCD amendment to provide information necessary to assure action consistent with the intent of this title and the general plan; and WHEREAS, CMC Section 17.80.120 provides that after the PCD amendment application is deemed complete, the City’s Community Development Director shall give notice of a hearing in accordance with Section 17.80.120; and
Attachment A

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Ordinance 23-03 Page 2 of 7
WHEREAS, CMC Sections 17.80.130.A. and B. provide that the Planning Commission shall hold a public hearing on the date and at the time and place specified in the notice, announce its decision within 30 days after the conclusion of the public hearing, recommend either approval or disapproval of the proposed PCD amendment, and set forth findings in support of the recommendation; and
WHEREAS, CMC Sections 17.80.130.B. and C. provide that the Planning Commission’s decision shall not enlarge the area of the proposed PCD amendment in any way and must immediately be filed with the City Council and a copy thereof mailed to the petitioner at the address shown on the petition; and
WHEREAS, Government Code Section 65855 requires that at the hearing, the Planning Commission render its decision in the form of a written recommendation to the City Council, including the reasons for the recommendation and the relationship of the proposed PCD amendment to the City of Covina General Plan, and transmit the recommendation to the City Council in such form and manner as specified by the City Council; and WHEREAS, the Planning Commission conducted a public hearing on December 13, 2022, continued until February 14, 2023, and then continued again until February 28, 2023, to consider the proposed Planned Community Development Modification (PCDM) and any comments received prior to or at the public hearing either in support or in opposition to proposed PCDM.

Following consideration of the entire record of information received at the public hearing and due consideration of the proposed PCDM, the Planning Commission adopted Resolution 2022-024 PC, recommending that the City Council approve PCDM 22-01 and adopt draft Ordinance CC 23- XXX amending the Covina Townhomes Planned Community Development (PCD) 77-002 and making a finding of exemption under the California Environmental Quality Act; and WHEREAS, CMC Section 17.80.140 provides that the hearing date of the City Council public hearing shall be set by the City Clerk for not more than 60 days after the filing of the Planning Commission’s resolution with the City Council; and WHEREAS, CMC Section 17.80.150 provides that the City Council shall hold a public hearing on the date and at the time and place specified in the notice and may either adopt, by ordinance, the PCD amendment recommended by the Planning Commission after holding at least one public hearing thereon or modify the PCD amendment recommended by the Planning Commission, provided the proposed modification is been referred back to the Planning Commission for a report, pursuant to Sections 17.80.150.C. and D.; and WHEREAS, on April 18, 2023, the City Council of the City of Covina held a duly noticed public hearing as prescribed by law to consider the proposed Planned Community Development Modification (PCDM) and any comments received prior to or at the public hearing, at which time staff presented its report, and interested persons had an opportunity to and did testify either in support or in opposition to proposed Planned Community Development Modification (PCDM).

Following consideration of the entire record of information received at the public hearing and due consideration of the proposed Planned Community Development Modification (PCDM), the City Council closed the public hearing on that same date; and

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Ordinance 23-03 Page 3 of 7
WHEREAS, all legal prerequisites prior to adoption of this Ordinance have occurred.

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

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

SECTION 2. California Environmental Quality Act Findings. The City Council hereby makes the following environmental findings and determinations in connection with the approval of the proposed Planned Community Development Modification (PCDM) 22-001: The Project has been environmentally reviewed pursuant to the provisions of CEQA and the State CEQA Guidelines. The City Council, based on its own independent judgement, has determined that the Project is categorically exempt from the detailed review-related requirements of the California Environmental Quality Act (CEQA). This determination was made based on Section 15301 Class 1 of the CEQA Guidelines, asthe Project consists of the operation, repair, maintenance, permitting, or minor alterations of existing private structures on the subject property, and Section 15303 Class 3 of the CEQA Guidelines, as the Project consists of construction of limited numbers of small accessory structures including fences. The overall project proposed consists of adding/repairing a wrought iron fence at the rear access from East Nubia Street, and the installation of new security gates at the main entrance off Citrus Avenue. Furthermore, there is no possibility that the activity in question may have a significant effect on the environment and the Project is not subject to CEQA pursuant to Guidelines Section 15061(b)(3). Therefore, the Planning Commission finds that the project will not have a significant effect on the environment and is exempt from CEQA.

SECTION 3. Findings for Approval of Planned Community Development Amendment (PCDA). Based on the evidence in the record, the City Council of the City of Covina find that the proposed PCDM 22-01 is in compliance with State law and is consistent with General Plan Objective E (1)(y) which states: “Utilize the Zoning Ordinance’s Planned Community Development (PCD) process (which allows for development standard modification if certain conditions are met) as a vehicle for getting attractive, functional, compatible, and innovative projects, thus facilitating residential and nonresidential development and General Plan implementation.”

1. That the site for the proposed use is adequate in size and shape to accommodate the use;
Facts: The proposed construction of the front security gate and the new 6-foot tall wrought iron fence off Nubia Street is contained within the existing property of Covina Townhomes. No additional square footage is being proposed. It complies with the Covina Municipal Code, Covina General Plan, and Covina Design Guidelines.

Covina Townhomes is proposing to construct a front security gate and the new black wrought iron fence with no alteration to the building height, appearance, and setback. The building footprint will not be altered. The project design conforms to the general plan, the design guidelines, transportation demand management regulations, and any specific plans or guidelines which may be applicable to the project. The project design is harmonious, consistent, and complete within itself and

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Ordinance 23-03 Page 4 of 7
functionally and visually compatible with neighboring structures and the area in which it is located. The development will constitute an adequate environment for the intended use by sustaining the desirability and stability of the neighborhood and community. Therefore, this criterion has been met.

2. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use;
Facts: The construction of a new security gate and rear access gate, for emergency access only, complies with all the applicable regulations as described in the staff report and with the approved PCD 77-002. The proposed security gate and preservation of the rear gate access (off Nubia Street) for emergency access only, will result in vehicle calming measures as vehicles enter and exit the townhome condominium complex from Citrus Avenue. Ingress and egress will remain off Citrus Avenue and no increase in traffic will occur onto Nubia Street, with the exception of emergency responders. The existing street width and pavement type to carry the quantity of traffic generated will not change the already existing traffic demand from the townhome development. The facility will protect and maintain the visual aesthetic of the community, which then complies with the General Plan Land Use Objective 1, Section 2. Residential (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.” Therefore, this criterion has been met.

3. That the proposed use is not detrimental to the surrounding properties or uses permitted in the general area;
Facts: The proposed new gates will be confined in conformance with development standards consistent with the character, appearance, and features of the Covina Townhome Development. The proposed security gate and preservation of the rear gate access (off Nubia Street) for emergency access only, will result in vehicle calming measures as vehicles enter and exit the townhome condominium complex from Citrus Avenue. Ingress and egress will remain off Citrus Avenue and no increase in traffic will occur onto Nubia Street, with the exception of emergency responders, thereby facilitating the desired sustainability and stability adequate for its environment, the neighborhood, and the community it will serve. Therefore, this criterion has been met.

4. That the conditions stated in the decision are deemed necessary to protect the health, safety and general welfare;
Facts: The project design is harmonious, consistent, and complete within itself and functionally and visually compatible with neighboring structures and the area in which it is located. The development will constitute an adequate environment for the intended use by sustaining the desirability and stability of the neighborhood and community. The construction of a new security gate and rear access gate, for

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Ordinance 23-03 Page 5 of 7
emergency access only, complies with all the applicable regulations as described in the staff report and with the approved PCD 77-002. The proposed security gate and preservation of the rear gate access (off Nubia Street) for emergency access only, will result in vehicle calming measures as vehicles enter and exit the townhome condominium complex from Citrus Avenue. Ingress and egress will remain off Citrus Avenue and no increase in traffic will occur onto Nubia Street, with the exception of emergency responders. The proposed new gates will be confined in conformance with development standards consistent with the character, appearance, and features, thereby facilitating the desired sustainability and stability adequate for its environment, the neighborhood, and the community it will serve.

Therefore, this criterion has been met.

SECTION 4. The City Council hereby approves (PCDM) 22-001, as set forth in Sections 5, 6, and 7 of this Ordinance, subject to the Conditions of Approval attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 5. Condition of Approval No. 4, in Section 4 of Ordinance No. 1374, establishing the Planned Community Development (PCD) District Overlay Zone for Covina Townhomes, is hereby amended to read as follows, with next text indicated with an underline:
“4. That a continuous concrete block wall, 6 feet above adjacent single-family residential property finished grade, be provided. A 6-foot tall wrought iron gate, approximately 36’-4” linear feet for “emergency access only” shall be installed on East Nubia Street, providing a Knox-box for only emergency responders. The gate shall include a pedestrian gate for Covina Town Home residents to access East Nubia Street. The gate shall be properly maintained at all times.”
SECTION 6. Subsections 12 and 13 are hereby added to Section 3 of Ordinance No. 1374, adding new conditions of approval to Covina Townhomes Planned Community Development (PCD) District Overlay Zone, to read as follows:
“12. Install a new security gate along the front main entrance of the property (North Citrus Avenue) per stamped city approved plans, to accommodate the proposed vehicular turnaround.”
“13. Modify their outdoor recreation area (common open space) to include two new basketball posts to their existing tennis court, to serve as both a tennis and basketball court.”
SECTION 7. All other provisions of Ordinance No. 1374 not amended as set forth in Sections 5 and 6 of this Ordinance shall remain in full force and effect.

SECTION 8. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The City Council hereby declares that it would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more

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Ordinance 23-03 Page 6 of 7
sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable.

SECTION 9. Savings Clause. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any ordinance, which violation was committed prior to the effective date of this Ordinance, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinances.

SECTION 10. Effective Date. This Ordinance shall become effective within thirty (30) days after its adoption.

SECTION 11. 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 APPROVED this ___ day of__________, 2023.

City Council of Covina, California
BY: _______________________________
WALTER ALLEN, III, Mayor
ATTEST:
____________________________________
FABIAN VELEZ, Deputy City Clerk
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney

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Ordinance 23-03 Page 7 of 7

CERTIFICATION
I, Fabian Velez, Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 23-03 was introduced for first reading at a regular meeting on the _____ day of ______, 2023. Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the ___ day of ______, 20__, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Deputy City Clerk

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1 Exhibit “A”

DRAFT CONDITIONS OF APPROVAL
Ordinance 23-03
April 18, 20232023

The Planned Community Development Modification (PDCM) 22-01 shall allow approval for the modification Planned Community Development (PCD) 77-002 (Ordinance. 1374) to allow a black wrought iron fence at the rear of the property to become access for Emergency Services with a pedestrian access gate from East Nubia Street, and installation of new turn around security gates at the main entrance off Citrus Avenue and an installation of two basketball goal post assembly at the existing tennis sport court. The parcel is Zoned – Planned Community Development / Residential 4000 (PCD/RD) zone, located at 1244 North Citrus Avenue. (APN; 8406-019-029) A. TIME LIMIT:

1. Planned Community Development Modification (PCDM) 22-01: Approval shall lapse and shall become void one (1) year following the date on which the approval became effective, unless a greater amount of time is granted as a condition of approval, or unless prior to the expiration date a building permit is issued and construction is commenced and diligently pursued toward completion on the site which was the subject of the application. The applicant may apply to extend the expiration date for a maximum of one year upon written request to the Director of Community Development a minimum of thirty (30) days prior to expiration. The request must be approved by the Planning Commission prior to the expiration of the approved PCDM applications.

B. GENERAL REQUIREMENTS:

1. This approval will not be effective for any purposes until the Applicant has filed with the Planning Division an affidavit stating that it is aware of and agrees to accept all of the conditions of this approval as set forth herein.

2. To the full extent permitted by law, Applicant agrees to and shall fully indemnify, hold harmless, and defend CITY and it’s respective elected and appointed officials, officers, members, agents, employees, and representatives (each an “Agent” and collectively “Agents”) from any and all claims, suits, causes of action, fines, penalties, proceedings, damages, injuries or losses of any name, kind or description, specifically including attorneys’ fees (collectively, “Claim(s)”), arising in any way out of or challenging the validity of Project, or the CEQA Determination.

3. The Applicant’s indemnification obligations, as set forth above in this Approval, shall survive the completion or abandonment of the Project or the issuance of a certificate of occupancy with respect thereto. However, Applicant’s obligations after the issuance of a certificate of compliance for the Project shall be limited to indemnifying and defending the Indemnified Parties from legal challenges filed to set aside any part of the Project or its

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2 related components. The provisions of this Condition of Approval are intended by the City and the Applicant to be interpreted and construed to provide the fullest protection possible under the law to the City. Further, all obligations and Liabilities under this Approval are to be paid by the Applicant as they are incurred. The Applicant’s obligations to indemnify under this Approval shall include the obligation of the Applicant to defend the City with legal counsel of the City’s own choosing. In the event the City elects not to select such counsel, the Applicant shall designate such counsel subject to the City’s prior approval.

4. All indemnity provisions, as set forth above, shall continue to be the liability and obligation of Applicant, binding upon Applicant, until the final resolution of all Claims, and shall survive the completion, partial completion, or abandonment of the Project.

5. The Project Site and all improvements thereon, including landscaping, must be maintained in a sound, healthy, and attractive condition reasonably free of weeds, visible deterioration, graffiti, debris, and/or other conditions that violate the Covina Municipal Code.

6. The costs and expenses of any code enforcement activities, including, but not limited to, attorneys' fees, caused by the applicant's violation of any condition imposed hereunder or any provision of the Covina Municipal Code must be paid by the applicant.

7. The management of the business shall at all times take reasonable steps a) to prevent any outside loitering by any associated patrons and b) to encourage all business-related persons to be courteous with neighboring businesses.

8. The management of the business shall ensure that all employees and customers of the business that drive to the site park on the underlying site in legal parking spaces.

9. At all times when any outside lighting typically operates, the exterior lighting on the property shall be fully functional. This lighting shall further meet the design and minimum foot-candle standards of the City to sustain public safety (or, 1.0 foot-candle of illumination) and shall be hooded to prevent the reflection of lights upon the adjacent properties to the south and east of the subject project. All exterior lighting on the site shall not generate any glare onto any surrounding properties or the adjacent public rights-ofway. Exterior lighting shall be pointed downwards and away from any residences. Only the blue accent LED lighting depicted on the submitted plans shall be allowed on the canopy fascia.

10. Approval of this request shall not waive compliance with all other sections of the Covina Municipal Code, the Covina Design Guidelines, and all other applicable plans and nonCity laws and regulations that are in effect at the time of application approval by the Planning Commission and at the time of building permit issuance(s) by the Covina Building Division.

11. The City shall have the reasonable right of entry to inspect the immediate premises and the overall property to verify compliance with these Conditions of Approval.

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3 12. If any provision of this approval is held or declared to be invalid, then the entire approval shall be void and the privileges granted hereunder shall lapse.

C. SITE DEVELOPMENT:

1. The Project site shall be developed and maintained in accordance with the approved plans on file with the Community Development Department, all representations of the record made by the Applicant(s), the Conditions contained herein, the Covina Municipal Code, and the Covina Design Guidelines.

2. Final plans incorporating all Conditions of Approval and any plan-related changes required in the approval process shall be submitted to the Community Development Director, or his designee, for review and approval, prior to submittal for the Plan Check process.

3. The applicant shall install a powder-coated, perforated metal mesh screen along the entire width of the gate on East Nubia Street. Color to match gate pickets.

4. Minor modifications in elevation details and/or colors may be submitted with detailed drawings and/or information to the Community Development Director, or his designee, for review and approval prior to, or during, the subsequent Plan Check process.

5. Other than the approved modifications under PCDM 22-1, as set forth under Ordinance 23- 03, Conditions of Approval under PCD 77-002 (Ordinance No. 77.1374) shall remain in effect.

D. BUILDING AND SAFETY DIVISION:

1. The applicant shall submit 4 sets of complete construction plans to the City’s Building and Safety Division.

2. The applicant shall also submit two sets each of any structural and energy calculations with the complete construction plans. All calculations must bear an original signature from the documented author.

3. The Project shall comply with federal and state accessibility requirements to and throughout the proposed building. The applicant shall include compliance methods and structural details on the complete construction plans.

4. Construction activity within 500’ of a residential zone is prohibited between the hours of 8:00 p.m. and 7:00 a.m. and on Sundays and Holidays unless otherwise permitted by the City.

5. The building plan check process may address additional project concerns. Approved construction plans will be routed to the Planning, Engineering, Water, and Environmental Services Departments for review. These Departments may individually determine other Project requirements subsequent to the review of the approved construction plans.

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4 E. PUBLIC WORKS - ENVIRONMENTAL SERVICES DIVISION:

1. Environmental Services - Upon completion of C&D, the applicant shall complete the form, sign, and return the original with Athens Loads Characterization Report. The applicant shall provide a turning template for diesel tanker trailers to the underground diesel storage tank.

6. Only Athens Services/Covina Disposal, 888-336-6100, is allowed to provide bins and pick up and dispose of trash and recyclables, including all C&D projects. Exception: The project contractor, using his/her own equipment and staff may take recyclables to a recycling facility.

7. The applicant shall complete the form, sign, return the original, and attach a copy to the field plans.

6. The applicant shall submit deposits to the City’s Environmental Services Division, as required, prior to issuance of Building Permits.

7. The applicant shall underground, within the exterior boundary line of the subject property, all electrical, telephone, CATV, and similar service wires or cables that provide direct service to the subject property.

F. PUBLIC WORKS – ENGINEERING:

1. The applicant shall obtain a public works permit for all work in or adjacent to the public right-of-way (ROW). All work within the public ROW shall be in accordance with applicable standards of the City of Covina, i.e. Standard Specifications for Public Works Construction (Green Book), and the Work Area Traffic Control Handbook (WATCH), and further that construction equipment ingress and egress be controlled by a plan approved by the City Engineer.

2. Existing City roads requiring construction shall remain open to traffic at all times with adequate detours during construction. Street or lane closure permits are required.

3. Due to the construction, the applicant shall be responsible for any repairs within the limits of the project site development, including streets and paving, curbs and gutters, sidewalks, and street lights, as determined by the city engineer.

4. The proposed rear gate abutting East Nubia street shall remain for emergency vehicles only and not another means of entry or existing for the Covina Townhomes Property.

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5 G. COVINA POLICE DEPARTMENT:

1. Exterior lighting to include: parking lot light fixtures and wall-mounted light fixtures shall be of LED. Detailed plans to show compliance shall be submitted to Police Department and Planning Division for review and approval, prior to issuance of a permit and prior to installation. The condition of approval shall be accomplished on or before opening.

2. At no time will any security personnel, whether employed by a private company or licensed by the city, or employed by the establishment, be armed with any type of firearm.

3. When applicable, the owner or operator shall contract with a security company for security personnel or hire security personnel as employees.

4. The owners, operators, or managers shall, subject to the approval of the Police Department, develop a plan to ensure that all exterior locations are adequately and safely illuminated during hours of darkness.

5. The owners, operators, or managers must comply with all City codes and ordinances relating to police response and abatement nuisance conditions.

6. The owners, operators, or managers shall, subject to the approval of the Police Department, develop a plan to monitor the area surrounding the location for trash and other discarded items that impact public health and to maintain the cleanliness of the parking lots, sidewalks, and the property of adjacent business owners.

7. The owners, operators, or managers must comply with all City codes and ordinances relating to police response and abatement nuisance conditions.

8. Rolling driveway gates, and any pedestrian gate, shall have a keypad installed with the current access code provided to Police Dispatch at (626) 384-5808.

9. All landscaping should follow the two-foot six-foot rule. All landscaping should be ground cover, two feet or less, and lower tree canopies should be at six feet. This increases natural surveillance and eliminates hiding areas within landscaping. Tree canopies should not interfere with or block the lighting along sidewalks or parking lots. This creates shadows and areas of concealment. Planters will use plant species with limited growth. This is to ensure that maintenance does not become an issue and surveillance from the building is maintained.

G. LOS ANGELES COUNTY FIRE DEPARTMENT:

1. The Project shall comply with the provisions of the City’s Fire Code.

END OF CONDITIONS

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EXHIBIT 6
1977 Planning Commission Minutes,
City Council Minutes, Staff Reports, and
Ordinance/PCD 77-002
Attachment B

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Attachment C
EXHIBIT 1
Zoning and Aerial Map

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4 EXHIBIT 2
City Application

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12 EXHIBIT 3
Radius Map and Notification

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25 EXHIBIT 4
Plans

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CITY OF COVINA
Attachment D

PLANNING COMMISSION AGENDA REPORT
ITEM NUMBER CPH 1
March 14, 2023
TO: Chairman and Members of the Planning Commission
FROM: Brian K. Lee, AICP, Director of Community Development SUBJECT: Application for Planned Community Development Modification (PCDM) 22-1 and Determination of Exemption from CEQA; A request to modify Planned Community Development (PCD) 77-002 (Ordinance. 1374) to allow the installation of a 6-foot tall wrought iron fence and pedestrian gate to the rear access onto East Nubia Street and, the installation of new security gates to the main entrance, off Citrus Avenue. The Planning Commission will consider Resolution No. 2022-024 PC making a recommendation to the City Council on PCDM 22-1. The Planning Commission will consider the project exempt from further review under CEQA. The site is within the Planned Community Development/Multi-Family Residential-4000 (PCD/RD) zone, located at 1244 North Citrus Avenue. (APN; 8406-019-029)

SITE AND PROJECT DESCRIPTION
A. Project Information:

Request: Modification to PCD 77-002 (Ordinance No. 1374) Applicant: Covina Town Homes
HOA Representatives: Stephanie Callahan (President)
David Martinez (Vice President)
Location: 1244 N. Citrus Ave.

Assessor Parcel
Map No: 8406-019-029
B. Site and Surrounding Land Uses-Table 1:

General Plan Zoning Existing Uses
Site Medium Density
Residential (7-14 Units)
PCD/RD-4000 - Planned
Community Development /
Residential Zone (Multiple
Family - 4,000 sq. ft.)
Covina Townhomes

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2 North Medium Density
Residential (7-14 Units
per acre)
PCD/RD-3000 - Planned
Community Development /
Residential Zone (Multiple
Family - 3,000 sq. ft.) / R-R -
Residential Zone (Trailer and
Mobile Home Parks)
Multi-Family Units /
Tumbling Waters Mobile
Park
South Medium Density
Residential (7-14 Units
per acre)
PCD/RD-4000 - Planned
Community Development /
Residential Zone (Multiple
Family - 4,000 sq. ft.)
Residential/Condominium
Complex
East Low-Density
Residential (0-6 Units
per acre)
R-1-7500 - Residential Zone
(Single Family - 7,500 sq. ft)
Residential Homes
West Low-Density
Residential (0-6 Units
per acre)
R-1-7500 - Residential Zone
(Single Family - 7,500 sq. ft)
Residential Homes
C. Site Characteristics: The Subject Site is located north of the Downtown area and Covina Transit Center. The site is an approximately 6.04-acre lot with 18 existing two-story residential buildings, totaling 68 units, with an existing pool and tennis court. Access to the site is via two driveways located along Citrus Avenue and East Nubia Street. There are approximately 92 parking spaces available on site. No changes were proposed to the existing building footprint, nor a change to parking.

D. PROJECT SUMMARY: On June 14, 2022, Covina Townhomes applied to modify Planned Community Development (PCD) 77-002 (Ordinance. 1374) to allow for the installation of a wrought iron fence to the rear access onto East Nubia Street and, the installation of new security gates to the main entrance, off Citrus Avenue, and to modify their existing open space (tennis court) to install two new basketball posts. Both gates, one located to the rear, and the other to the front of the property, are proposed to be 6 feet in height, provide emergency access to emergency vehicles, and would include the installation of two new lighting fixtures.

SITE HISTORICAL BACKGROUND
At the May 10, 1977, Planning Commission meeting, the Planning Commission approved a recommendation to the City Council to approve a Zone Change to re-zone the parcel, located at 1244 N. Citrus Avenue, from C-3A (Community or Regional Shopping Center) Commercial to an RD (Multi-Family Residential) zone, to allow for the future construction of a 124-unit apartment complex, by developer Oak Bay Company. During public hearing testimony, nearby community residents spoke against the proposed development, specifically concerned with the proposed increase in density, (the developer proposed 124 apartment units), and concerns for privacy and public safety impacts to residents in nearby single-family residential units, etc.

At the June 6, 1977, City Council meeting, the City Council held a public hearing to consider a zone change from a commercial use (C-3A) to a multi-family residential use (RD-2100) for property located at 1244 N.

Citrus Avenue. During the Public hearing, several nearby property owners gave testimony opposing the proposed zone change for the same reasons addressed at the May 10, 1977, Planning Commission meeting. The City Council denied the application for a zone change to RD-2100.

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3 At the June 20, 1977, City Council adopted a resolution formalizing the denial of Zone change 77-002.

At the September 27, 1977, Planning Commission meeting, the Planning Commission considered a request for a proposed Planned Community Development (PCD) overlay zone, to allow the development of a 68-unit multifamily condominium project at 1244 North Citrus Avenue. Applicant/developer Oak Bay Company addressed community concerns raised at the previous planning and city council meetings and modified the project to lower the density and mitigate potential impacts to nearby single-family residential homes, specifically on Nubia Street and Fairvale Avenue. Public hearing testimony was received, and the Planning Commission approved a recommendation to the City Council to approve PCD 77-002 (Ordinance No. 1374).

On November 7, 1977, the City Council held a public hearing on a proposed planned community development overlay zone to allow the development of a 68-unit condominium project at 1244 N. Citrus Avenue. Public hearing was opened and no comments were received.

On December 5, 1977, the City Council adopted PCD 77-002 (Ordinance 1374).

Source information can be found under Exhibit 6 for the 1977 Planning Commission and City Council minutes, staff reports, and ordinance/PCD 77-002 for your reference.

STAFF ANALYSIS
On February 28, 2023, The Planning Commission’s regular meeting was canceled due to technical (audio) issues, and thus, by motion, the item was continued to the March 14, 2023, regular meeting.

On February 14, 2023, staff presented the Planning Commission with a report. The Planning Commission opened the Public Hearing, accepted public testimony, and by motion, continued the item to the next regular Planning Commission meeting on February 28, 2023.

On December 13, 2022, staff presented the Planning Commission with a report. The Planning Commission, open the Public Hearing, accepted public testimony, and by motion, continued the item to a date uncertain to allow staff to receive LA County Fire Department comments and return to the planning commission at a future date, with a comprehensive report and analysis from all respective departments and agencies.

On June 14, 2022, Covina Townhomes (applicant) submitted a request to modify existing PCD No. 77-002 to install a 6-foot tall wrought iron fence with a pedestrian gate, approximately 36’-4” in length, to allow for a secondary means of ingress/egress onto East Nubia Street for vehicles and pedestrians. The modification would also include two new lighting fixtures proposed along the rear gate, abutting East Nubia Street, the installation of a new turnaround security fence located off Citrus Avenue (front of the property), and modify their outdoor recreation area (common open space) to include two new basketball posts to their existing tennis court, to serve as both a tennis and basketball court.

The PCD modification request is in response to property maintenance violation notices that were issued to Covina Townhomes for an unpermitted 5-foot tall dilapidated wood fence abutting East Nubia Street. Under the original 1977 approval (PCD 77-002), a “continuous concrete wall, 6-feet abutting adjacent single-family residential property was to be provided,” with the Fire Department requiring the emergency gate be a minimum of 12-feet in width (as required per Los Angeles County Fire Code in effect in 1977), chained and locked, using a standard padlock. The Los Angeles County (LAC) Fire Code requires secondary access with all new developments.

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4 The fence facing East Nubia street had deteriorated due to weathering and lack of maintenance. City staff found no permits or approved plans that would allow Covina Townhomes to construct a wooden fence. A notice of violation was mailed to the Homeowner’s Association, as well as, the HOA’s attorney.

City Code Enforcement and planning staff made several attempts to contact the HOA to assist and resolve the property maintenance violation. In response to the negligence and improper care of the fence and continued noncompliance with the Covina municipal code, code enforcement cited the property in February, March, and April of 2022.

On May 15, 2022, the applicant submitted plans to the Planning Division for review. City staff routed plans for review to the following divisions and agencies: Planning, Public Works, Covina Police, and Los Angeles County Fire Department. City staff provided the applicant with recommended changes to their proposal, specifically to their request to change the “emergency-only” rear access onto Nubia Street. As described earlier, the applicant is requesting a PCD modification for the following:

1. To allow a secondary means of ingress/egress in the rear of the property. This would also include a pedestrian gate to access East Nubia Street;

2. A new security gate to the front of the property (Citrus Ave) and a modification to their open space; and,

3. Modify their outdoor recreation area (common open space) to include two new basketball posts to their existing tennis court, to serve as both a tennis and basketball court.

Over several months and several rounds of review with the applicant (5 rounds of review), notwithstanding staff’s recommendations, the applicant requested to move forward with the project as presented to the Planning Commission. In late November 2022, planning staff began preparing the applicant’s submittal for planning commission consideration, tentatively scheduling this item for a December 2022 planning commission meeting.

As proposed, city staff has no issues with PCD Modification No’s 2 and 3 above, with the exception of No. 1.

The following issues of concern were raised by the following city departments/agencies:

Public Works – Engineering
The existing gated access from Nubia Street has been an emergency-only access gate since the development was constructed in late 1977, early 1978. The residents on Nubia Street have experienced minimal traffic access from the condominium townhome development. Since its approval in 1977, the townhome development has existed all this time without the need for secondary full-time access. The Public Works Engineering Division does not support the need for a full-time secondary gated entry and recommends that the rear gate access from Nubia Street should be only for emergency vehicular access and pedestrian purposes for the following reasons:
• A vehicular turnaround is required to avoid a vehicle backup into the travel lane. • There is limited available space on the townhome site to provide a vehicular turnaround and any improvements may jeopardize the on-site circulation.
• There is not adequate land owned by the HOA to support a turnaround with a site design modification.
• The applicant would be required to provide a traffic study that would evaluate impacts on the traffic volumes in Nubia.

Covina Police Department

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5 The Covina Townhomes currently has a main ingress/egress into the complex via the front ungated driveway situated on Citrus Avenue. Prior to the disintegration of the rear fence gate, the complex had a secured rear gate that abuts a dead-end on Nubia Street. This gate is an emergency-only manual gate that should not be utilized beyond an emergency and should remain secure. Covina Police Department does not recommend changing the use of the rear gate from emergency only to a secondary main access gate for the following reasons:

1. The Covina Townhomes complex was originally designed to have only the Citrus Avenue address as the primary access.

2. Complexes such as these are well-planned, designed, and constructed with on-site amenities, so residents can live with proper utility services, recreation amenities, safety/security aspects, and travel and flow concepts for both vehicular and pedestrian traffic.

3. Adding a new through-traffic gate to the rear will result in additional traffic safety concerns with increased traffic flow to the adjacent residential community east of the Covina Townhomes.

4. The rear gate abuts a dead-end where the Covina Police Department is experiencing homeless issues and upward trends of crime occurrences per police department staff.

Los Angeles County Fire Department
On July 2022, initial comments received from the city’s dedicated Fire Inspector Liaison (Fire Prevention Division), stated that LA County Fire had no comments or issues with the proposed modifications. Due to the multiple reviews and revisions presented to city staff, in late November 2022, planning division staff contacted LA County Fire to confirm whether they would be providing any final conditions of approval for this project.

On December 5, 2022, upon review of the latest revised plans submitted to the planning division, the city’s Fire Inspector Liaison informed planning staff the proposed new installation of a turnaround system requires review by a Los Angeles County Fire Department plan checker, not an inspector.

On December 13, 2022, PCDM No. 22-01 was presented to the Planning Commission. At that time, the Public Hearing was opened for public testimony by affected community residents on Nubia and Fairvale Street, including Covina Townhomes. Residents located inside the townhomes expressed support for the rear gate as another means of ingress/egress. However, residents of East Nubia Street and North Fairvale Avenue are not in support of such a proposal. Concerns raised during public testimony were the following:
 Increase in traffic.
 Increase in pedestrian traffic.
 Homeless wandering around the back.
 Speeding of cars originating from Covina Townhomes.
 Secondary access for the subject site.

Residents reported a high volume of traffic stemming from the rear gate, stating that this was not the case a year ago, followed by an increase in pedestrians coming from Covina Town Homes. Testimony also stated that there have been a number of near-miss accidents by speeding cars almost hitting Nubia and Fairvale residents.

Similar public comments were also raised during public testimony during the initial development of the site at both the Planning Commission and City Council meetings held in 1977. Below is a summary table of issues raised by residents in 1977 and in 2022:

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6 At the December 13, 2022, Planning Commission meeting, staff conveyed to the Planning Commissioners that staff had not yet received LA County Fire Departments comments on the proposed modifications requested by Covina Town Homes. Staff requested that the Planning Commission continue the item to a date uncertain to allow staff to receive LA County Fire Department comments and return to the planning commission with a comprehensive report and analysis from all respective departments and agencies.

On January 9, 2023, planning staff received LA County Fire Department’s final comments and conditions of approval, confirming that the Los Angeles County Fire Department, Land Development Unit approves the proposed modifications as presented, with the installation of new gates on Citrus Avenue and, a 6-foot tall emergency access gate east of the property (Nubia Street) to be a minimum 20-foot wide opening (per current Los Angeles County Fire Department Code Requirements), as a secondary ingress/egress access, with a 4’-6” wide pedestrian gate. The remaining width of the gate within the public right-of-way area (public street, parkway, and sidewalk area) shall be fixed and screened with a metal mesh screen, perforated to address wind shear.

PUBLIC HEARING NOTICE AND NOTIFICATION
The applicant was given a copy of the staff report and all property owners within a radius of at least 300 feet from the overall project site were mailed notices of the Planning Commission public hearing on February 14, 2023, a minimum of ten (10) days before the hearing as required by law. In addition, the public hearing notice was published in the San Gabriel Examiner newspaper on February 2, 2023. On February 14, 2023, the Planning Commission opened the Public Hearing, accepted public testimony, and by motion, continued the item to February 28, 2023. At the Regular Planning Commission meeting of February 28, 2023, the Public Hearing was continued to the March 14, 2023 regular meeting due to audio technical issues.

ENVIRONMENTAL DETERMINATION
Community Development Department staff has determined that the project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) Guidelines. The project qualified as a Class 1 exemption under State CEQA Guidelines Section 15301, which covers the operation, repair, maintenance, permitting, or minor alterations of existing public or private structures of the CEQA Guidelines. The project would consist of adding/repairing a wrought iron fence at the rear access from East Nubia Street, and the installation of new security gates at the main entrance off Citrus Avenue. Staff finds that there is no substantial evidence that the project will have a significant effect on the environment.

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7 RECOMMENDATION
Staff recommends that the Planning Commission adopt Resolution No. 2022-024 PC, a resolution of the Planning Commission of the City of Covina recommending that the City Council approve Planned Community Development Modification (PCD) 22-01 and adopt draft Ordinance CC 23-XXX amending the Covina Townhomes Planned Community Development (PCD) 77-002 by modifying Condition of Approval No. 4 and adding numbers 12 and 13 under Section 3 of Ordinance No. 1374, and making a finding of exemption of the California Environmental Quality Act (CEQA) guidelines and, recommending that the City Council adopt draft Ordinance No. 23-XX for Planned Community Development Modification (PCDM) 22-01 with conditions.

Staff’s recommendation of the following modifications are as follows:
a) The installation of a 6-foot tall wrought iron gate for “emergency access” only to East Nubia Street, providing a Knox-box for only emergency responders.
b) The installation of a pedestrian gate for Covina Town Home residents to access East Nubia Street. c) Installation of a new security gate to the front of the property (Citrus Ave) with the proposed modifications to their open space to accommodate the proposed vehicular turnaround; and, d) Modify their outdoor recreation area (common open space) to include two new basketball posts to their existing tennis court, to serve as both a tennis and basketball court.

And, making a finding of exemption under CEQA.

Prepared by: Approved by:
_______________________________
Joshua Pereira
Planning Technician

EXHIBITS

1. Area Map

2. Application

3. 300-foot Radius Map and Notification

4. Project Plans

5. Resolution and Conditions of Approval

6. 1977 Planning Commission Minutes, City Council Minutes, Staff Reports, and Ordinance/PCD 77-002

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM #11.b.

Meeting: April 18, 2023
Title: Ordinance 23-04 – An Ordinance of the City of Covina adding Chapter 5.89 to Title 5, Amending Section 5.24.100, and Repealing Section 10.32.150 of the Covina Municipal Code Regarding Regulations of Peddlers, Sidewalk Vendors and Mobile Food Facilities and
Presented by: Brian K. Lee, AICP, Director of Community Development Recommendation: Approve Ordinance 23-04 and making a determination of exemption under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), and that no further environmental review is required.

EXECUTIVE SUMMARY:

The proposed Ordinance 23-04 will add a new Chapter 5.80 to Title 5 (Business Licenses and Regulations) and repeal current Section 10.32.150 (Peddlers, Sidewalk Vendors and Mobile Food Facilities) of Title 10 (Vehicles and Traffic). The resulting ordinance will update the City of Covina’s Municipal Code regulations regarding sidewalk vendors and mobile food facilities (i.e., push carts and food trucks). State of California law has changed over the past several years, which has resulted in California law superseding local regulations regarding how sidewalk vendors and mobile food facilities may be regulated. The current Covina code provisions are both obsolete (in regards to how these types of businesses currently are operated and in some instances where current Covina code has been superseded by California law). Therefore, proposed Ordinance 23-04 is proposed to address the aforementioned issues.

DISCUSSION:

In January 1, 2019, California Senate Bill 946 became effective. The aforementioned law limits the authority of California cities and counties to regulate sidewalk vendors, except in accordance with California Government Code 51038 and 51039. However, cities may regulate sidewalk vendors in regards to public safety, conformity with public ADA access requirements and similar public safety issues. In regards to mobile food vendors (aka, Food Trucks), the Covina Municipal Code does not comprehensively address how Food Truck vending may occur within the public right-of-way. Ordinance 23-04 provides provisions to clarify how Food Truck operations may occur within the public right-of-way. (Note: Food Trucks proposed to be located on private property currently require the approval of an ACUP.)
Ordinance 23-04, in addition to eliminating current CMC Section 10.32.150, would create a new Chapter 5.80 to the Covina Municipal Code. The new “Sidewalk Vendors and Mobile Food Facilities” provisions would result in the following regulations:
 Section 5.80.010 – Definitions: The “Definitions” section defines current language and phrases in use today within the text of the ordinance, and defines their meaning for the purposes of enforcement.

Examples of terms that are defined include, but are not limited to, “Food or Food Products”, “Goods or “Merchandise”, “Hearing Officer”, “Mobile Food Facility Operator”, “Roaming Sidewalk Vendor” and “Vending Cart”.
 Section 5.80.020 – Business License: This section requires all sidewalk vendors and Food Trucks operating within the boundaries of the City of Covina must obtain a Covina Business License.

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 Section 5.80.030 – Vending Permit Required: This section creates a new permit category of “Vending Permit”. In addition to obtaining a Covina Business License, the sidewalk vendor or Food Truck operator will also be required to obtain a Vending Permit. City staff has not yet created the framework for the Vending Permit.
 Section 5.80.040 – Vending Permit Application: This section articulates the information that will be required by any applicant for a Vending Permit. Examples of information to be required include, but are not limited to, description of food or merchandise offered for sale, photograph of the vending cart or food truck (for a food truck a valid California Driver’s License, vehicle registration, etc. will be required), a description of the streets, right-of-way or other locations in which the applicant intends to vend, a California Seller’s Permit pursuant to the California Revenue and Taxation Code, if vending food for food products, proof of a valid permit from the Los Angeles County Department of Public Health, and proof of liability insurance.
 Section 5.80.050 – Criteria for Approval and Denial of Vending Permit: This section articulates the basis where City staff shall approve or deny the issuance of a Vending Permit.  Section 5.80.060 – Permit Expiration and Renewal: This section establishes the duration for a valid Vending Permit. The duration of the permit is proposed to be 12 months, from the date of issuance, upon which it expires unless renewed.
 Section 5.80.070 – Permit Nontransferable: This section prohibits the Vending Permit to be transferred to a different person or entity other than to whom the Vending Permit was issued.  Section 5.80.080 – Sidewalk Vendor Operator Requirements: This section establishes the regulations as to the manner in which a sidewalk vendor may operate within the City of Covina after obtaining a Vendor Permit and a Business License. Examples of the aforementioned regulations are as follows:
 Shall NOT be located within 20 feet of any street intersection;  Shall NOT be located within 20 feet of any driveway or driveway apron;  Shall NOT be location upon or within any roadway, median strip, frontage median, or dividing section;
 Shall NOT be located within 300 feet of a permitted certified farmer’s market;  Shall NOT be located within 300 feet of the nearest property line of any property on which a school building is located (between the hours of 8:00 a.m. and 4:00 p.m. each day that the school is in session). Note: if the vendor has the written permission by the school principle to be located within 300 feet and/or within the 8:00 a.m. and 4:00 p.m., this provision will not apply;  Shall NOT be located within 300 feet of an area designated for a temporary special event (which an ACUP has been issued);
 The sidewalk vendor shall NOT obstruct the free movement of pedestrians or vehicles (i.e., the sidewalk vendor must not encroach into the 4-foot width “path” pursuant to ADA);  The sidewalk vendor shall NOT vend within 50 feet of another sidewalk vendor;  Sidewalk vending is only permitted between the hours of 8:00 a.m. to 10:00 p.m. daily, with the exceptions noted in proposed Ordinance 23-04;
 Stationary sidewalk vendor must obtain a Covina Encroachment Permit (from the Public Works Department), in addition to the Vendor Permit and Covina Business License;  Stationary sidewalk vendors shall NOT vend in areas that are exclusively zoned “residential”;  In City parks: Sidewalk vendors shall only operate during the open hours of the park and the vendor shall NOT vend in any park where the is a signed agreement for a concessionaire to exclusively sale food or merchandise;
 The use of propane, natural gas, batteries and other explosive or hazardous materials (i.e., the burning of wood, charcoal and the utilization of open flames) is prohibited by sidewalk vendors;  Shall NOT utilize amplified sound, loudspeakers or public address systems;  Shall NOT vend alcoholic beverages, cannabis, adult-oriented material, tobacco products or any product used to smoke/vape, etc.;
 Shall NOT use any electrical outlet or power source that is owned by the City without the prior consent of the City of Covina; and,

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 Shall NOT barricade or otherwise set a perimeter around a vendor area that obstructs the free movement of pedestrians and/or cyclists and similar actions.  Section 5.80.090 – Mobile Food Operating Requirements: Similar in scope to the aforementioned Sidewalk Vendor section, this section establishes the regulations as to the manner in which a Food Truck may operate within the City of Covina after obtaining a Vendor Permit and a Business License. Examples of the aforementioned regulations are as follows:
 The Food Truck operator shall NOT locate within 100 feet of any street intersection controlled by a crosswalk, traffic light or stop sign;
 The Food Truck operator shall NOT locate within 20 feet of any driveway or driveway apron;  The Food Truck operator shall NOT locate on any publicly-owned or operated parking lot, unless the Food Truck operator has written permission of the owner;  The Food Truck operator shall NOT locate within 300 feet of a permitted certified farmer’s market or an area designated for a special temporary permit;
 The Food Truck operator shall NOT locate within 300 feet of the nearest property line of any property on which a school building is located between the hours of 8:00 a.m. to 4:00 p.m. each day that school is in session (Note: this prohibition does not apply if the school principle has provided the Food Truck operator written permission to enter onto school property);  The Food Truck operator shall not locate within 300 feet of any area designated for a temporary special event permit for the duration of the temporary special event;  No Food Truck shall vend within 50 feet of another Food Truck;  Vending is prohibited from the exposed street or traffic side of the Food Truck, and the manner in which the Food Truck operates shall NOT cause any customer to stand within the portion of the street open to other vehicles;
 The Food Truck operator shall NOT place any equipment or furniture onto a public sidewalk;  Food Truck operations are permitted between the hours of 8:00 a.m. and 10:00 p.m. daily, except in residential areas where it is permitted between 9:00 a.m. and 5:00 p.m.;  The Food Truck shall maintain a clearly identifiable trash receptacle within the vicinity of the Food Truck;
 No amplified music, sound-making devices, loudspeakers, etc. are allowed;  The Food Truck shall NOT sale alcoholic beverages, cannabis, adult-oriented material, tobacco products, or products used to smoke/vape, etc.;
 The Food Truck shall NOT use any electrical outlet or power source that is owned by the City of Covina;
 The Food Truck operator shall NOT use existing parking spaces for customer queuing, furniture, portable restrooms, signage or otherwise barricade or set a perimeter around a vending area; and,  A Food Truck SHALL be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility to ensure that restroom facilities are available to Food Truck employees whenever the Food Truck is stopped to conduct business for a period of time greater than one-hour.
 Section 5.80.100 – Regulations for Vending on Private Property: This section regulates the manner in which a Food Truck may operate on private property as follows:
 This section essentially references the requirements of the ACUP (Administrative Conditional Use Permit) process and/or where the Covina Zoning Code specifically provides provisions for on-site private property operations. This section also references where an ACUP is not required for a Food Truck on private property, such as when they’re serving an active construction site and operating solely for a private party and no outside customers are allowed.  Section 5.80.110 – Permit Rescission: This section addresses the process to revoke (or rescind) an issued Vendor Permit.
 Section 5.80.120 – Administrative Citations: This section establishes the penalties for violating Chapter

5.80.

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 Section 5.80.130 and Section 5.80.140 – Appeals and Administrative Regulations: These sections provide for the exercise of due-process for an aggrieved party to file for an appeal. The Administrative Regulations section allows for City staff to create appropriate application forms, permit evaluation procedures, enforcement procedures and similar actions.

FISCAL IMPACT:

At this point in time, the full fiscal impact is unknown. This ordinance will result in new permit fees that would be collected and additional Business License revenue. However, additional staff time will result in the implementation and enforcement of the ordinance.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Pursuant to the California Environmental Quality Act (CEQA), the City has analyzed the project, proposed Sidewalk Vendors and Mobile Food Facilities Ordinance, and concluded that the project is exempt from the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3), because the activity in question does not have a significant effect on the physical environment. Furthermore, the City has determined that the project does not involve substantial changes which will result in new significant environmental effects, in that adoption of Ordinance 23-04 creates new permitting requirements for sidewalk vendors and mobile food facilities that ensures the City of Covina’s Municipal Code is consistent with State of California law.

Respectfully submitted,

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SB 946 ends criminalization* of sidewalk vending in California and allows local authorities to adopt non-criminal laws to protect public health, safety and welfare.

SB 946: General Info.

SAFE SIDEWALK VENDING ACT
According to the Act a sidewalk vendor is a person who sells food or merchandise on a sidewalk or pedestrian path. It does not apply to food trucks or anything with a motor.

Here is what Local Authorities CAN do:
• Limit hours of operation
• Prohibit stationary sidewalk vending in residential areas. • Prohibit sidewalk vending near farmers’ markets, swap meets, and temporary special permit areas.
• Require sanitary conditions.
• Require vendors to comply with the Americans with Disability Act (for example, vendors cannot block curb ramps). • Require a permit or license.
• Request certain information about the business’ operations (name, mailing address, type of sale).

Here is what Local Authorities CAN’T do:
• Require sidewalk vendors to operate in a specific area, unless the local authority is restricting vending to protect the community’s health, safety, or welfare. • Require vendors to ask permission from businesses or anyone besides the government. • Prohibit sidewalk vendors from operating in public parks, unless the park has a concession agreement, or the park is restricting vending in to protect the community’s health, safety, or welfare.
• Restrict the number of sidewalk vendors, unless the city or county must restrict the number of vendors to protect the community’s health, safety, or welfare.

Cities can create their own laws for sidewalk vendors. A vendor must comply with the laws at the city, county and state level.

FOR QUESTIONS ABOUT SB 946 OR OTHER

SIDEWALK VENDING LAWS
Please email [email protected]
*If you have a misdemeanor or infraction conviction for sidewalk vending, you may submit a petition to the trial court to request that the criminal conviction be dismissed.” Attachment A

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ORDINANCE 23-04

AN ORDINANCE OF THE CITY OF COVINA,
CALIFORNIA ADDING CHAPTER 5.80 TO TITLE 5,
AMENDING SECTION 5.24.100, AND REPEALING
SECTION 10.32.150 OF COVINA MUNICIPAL CODE

REGARDING REGULATION OF PEDDLERS, SIDEWALK

VENDORS, AND MOBILE FOOD FACILITIES AND

DETERMINING THE SAME TO BE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, Senate Bill (“SB”) 946 signed into law on September 17, 2018, and effective January 1, 2019 limits the authority of cities and counties to regulate sidewalk vendors, except in accordance with California Government Code Sections 51038 and 51039; and WHEREAS, California Vehicle Code Section 22455(b) provides that a local authority may, by ordinance, adopt additional requirements for public safety regulating the type of vending and the time, place, and manner of vending from vehicles upon any street; and WHEREAS, the City of Covina Municipal Code currently does not have a comprehensive street and sidewalk mobile vendor program that regulates stationary and roaming sidewalk vending and mobile food vending in the public right of way; and WHEREAS, the City Council also recognizes that the act of vending on sidewalks and other areas of the public right-of-way may also create the potential for increased safety hazards, such as, but not limited to, inhibiting the ability of disabled individuals and other pedestrians to follow a safe path of travel; interfering with the performance of police, firefighter, and emergency medical personnel services; encouraging pedestrians to cross mid-block or stand in roadways to purchase food; and creating obstacles and contributing to congestion for pedestrian, vehicle, and bicycle traffic; and
WHEREAS, the City Council finds that restrictions on sidewalk vending are needed to accommodate vendors and their equipment, while also safe-guarding the flow of pedestrian movement on sidewalks and in the public right-of-way, and ensuring no interference with the performance of police, firefighter, and emergency medical personnel services; and WHEREAS, the City Council finds that the regulation of vendors engaged in the sale of food and food products will help to ensure that sidewalk vendors and mobile food facility operators obtain all necessary permits and comply with applicable sanitation, food preparation, and food handling laws, and thereby will protect the public health and safety against health problems such as food contamination, poor hygienic practices, and the threat of food poisoning; and WHEREAS, the City Council finds that regulations related to the collection and disposal of trash or other debris generated by street and sidewalk vending are necessary to ensure that such trash or debris is not left, thrown, discarded, or deposited on City streets, sidewalks, pathways, gutters, or storm drains, or upon public or private lots, so that the same might be or become a pollutant; and

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WHEREAS, the City Council finds that restrictions on street and sidewalk vending in public parks is necessary to ensure the public’s use and enjoyment of natural resources and recreational opportunities, and to prevent an undue concentration of commercial activity that would unreasonably interfere with the scenic and natural character of these parks; and WHEREAS, the City Council adopts this Ordinance under the authority provided in SB 946 and California Vehicle Code Section 22455(b) and finds that the time, place, and manner regulations and requirements provided herein are directly related to the City’s purpose of protecting of the health, safety, and welfare of its residents, businesses and visitors.

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

Section 1. The Covina Municipal Code is hereby amended to repeal Section

10.32.150.

Section 2. The Covina Municipal Code is hereby amended to amend Section 5.24.100, which shall read as follows:
“5.24.010 Commercial solicitor defined.
“Commercial solicitor” means any person who engages in the business or occupation of selling or offering for sale any goods, wares or merchandise, or any article or services, or conducting surveys or polls, or any other form of activity involving canvassing, soliciting or peddling from house to house or place to place within the city. “Commercial solicitor” includes peddlers, hawkers, itinerant vendors, and all similar forms of commercial activity, but excludes charitable and religious solicitations and appeals. For purposes of this Chapter, “commercial solicitor” also excludes sidewalk vendors and mobile food facility operators, which shall be subject to the requirements of Chapter 5.80.”
Section 3. The Covina Municipal Code is hereby amended to add a new Chapter 5.80 to Title 5 which shall read as follows:
“CHAPTER 5.80

SIDEWALK VENDORS AND MOBILE FOOD FACILITIES

5.80.010 Definitions

5.80.020 Business license required

5.80.030 Vending permit required

5.80.040 Vending permit application

5.80.050 Criteria for approval or denial of vending permit

5.80.060 Permit expiration and renewal

5.80.070 Permit nontransferable

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5.80.080 Sidewalk vendor operating requirements

5.80.090 Mobile food facility operating requirements

5.80.100 Regulations for vending on private property

5.80.110 Permit rescission

5.80.120 Administrative citations

5.80.130 Appeals

5.80.140 Administrative regulations

5.80.010 Definitions.

For purposes of this Chapter, the following words or phrases shall have the following meanings:

A. Certified farmers’ market” means a location operated in accordance with Chapter

10.5 of Division 17 of the California Food and Agricultural Code and any regulations adopted pursuant to that chapter.

B. “Director” means the City Manager or their designee.

C. “Enforcement Official” means the City Manager, the Chief of Police, or either of their designees who is charged with enforcing the Covina Municipal Code.

D. “Food” or “Food Products” mean any item described by California Health and Safety Code Section 113781.

E. “Goods” or “Merchandise” mean any item that is not food or a food product and can be sold and immediately obtained from a sidewalk vendor. Items for rent, subscription plans, and other services shall not be considered goods or merchandise.

F. “Hearing Officer” means any person selected by the City Manager to conduct an administrative hearing that has no bias or pecuniary interest in the matter to be heard.

G. “Mobile Food Facility” has the same meaning as Section 17.04.417 of the Code and means any self-propelled, motorized device or vehicle by which any person or property may be propelled or moved upon a highway (excepting a device moved exclusively by human power), or which may be drawn or towed by a self-propelled, motorized vehicle, from which food or food products are sold, offered for sale, displayed, bartered, exchanged or otherwise given.

H. “Mobile Food Facility Operator” means any person that operates or assists in the operation of a mobile food facility.

I. “Person” means one or more natural persons, groups, businesses, business trusts, companies, corporations, joint ventures, joint stock companies, partnership, entities, associations, clubs, or organizations composed of two or more individuals (or the manager, lessee, agent, servant, officer, or employee of any of them), whether engaged in business, nonprofit, or any other activity.

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J. “Roaming Sidewalk Vendor” means any sidewalk vendor who moves from place to place and stops only to complete a transaction.

K. “Sidewalk Vendor” means any person who vends from a vending cart or from one's person, upon a public sidewalk, parkway, pedestrian path, or other public right-of-way available to pedestrians.

L. “Stationary Sidewalk Vendor” means a sidewalk vendor who vends from a fixed location.

M. “Swap meet” means a location operated in accordance with Article 6 of Chapter 9 of Division 8 of the California Business and Professions Code, and any regulations adopted pursuant to that article.

N. “Temporary special permit” means any permit issued by the City for the temporary use of, or encroachment on, the sidewalk or any other public area, including, but not limited to, an encroachment permit, special event permit, or temporary use permit, for purposes including, but not limited to, filming, parades, festivals, or outdoor concerts.

O. “Vend” or “vending” means to sell, offer for sale, display for sale, or solicit offers to purchase, food, food products, beverages, goods, or merchandise.

P. “Vending Cart” means any pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other non-motorized conveyance used for vending, that is not a vehicle as defined in the California Vehicle Code. “Vending Cart” does not include a “Mobile Food Facility.” Q. “Vendor” means a person who vends from a vending cart, from one's person, or from a mobile food facility, including an employee or agent of another.

5.80.020 Business License Required.

All sidewalk vendors and mobile food facility operators desiring to vend in the City shall obtain and maintain a valid business license issued by the City in accordance with Chapter 5.04 of this Code.

5.80.030 Vending Permit Required.

In addition to procuring a business license, as set forth in Section 5.80.020, all sidewalk vendors and mobile food facility operators desiring to vend in the City on public or private property shall first obtain a vending permit. Except as otherwise provided in this chapter, vending from a vending cart, from one's person, or from a mobile food facility on any public street, alley, parkway, sidewalk, or other public property or private property in the City is prohibited.

5.80.040 Vending Permit Application.

To apply for a vending permit, a person must file an application with the Director, accompanied by a nonrefundable processing fee in an amount established by resolution of the City Council. The application shall be in a form prescribed by the Director and shall contain, at a minimum, the following:

A. The legal name and current address and telephone number of the applicant;

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B. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; C. A description of the food or merchandise offered for sale; D. A photograph of the mobile food facility or vending cart. If the applicant intends to use a mobile food facility, a description of the type of vehicle to be used, the vehicle's registration and license number, and the applicant's California driver's license numbers); E. Whether the applicant intends to operate as a stationary sidewalk vendor, a roaming sidewalk vendor, or a mobile food facility operator;
F. A description of the streets, rights-of-way, or other locations in which the applicant intends to vend;
G. A California seller's permit number pursuant to California Revenue and Taxation Code § 6067;
H. If a vendor of food or food products, certification to completion of a food handler course and proof of all required approvals from the Los Angeles County Department of Public Health, including a valid and current Mobile Food Facility permit; I. Proof of liability insurance in the amount and subject to the terms on file with the City's Risk Manager. The City's Risk Manager shall promulgate provisions regarding insurance requirements for sidewalk vendors and mobile food facilities and shall be in an amount which is determined to be sufficient to adequately protect the City, persons, and property for injuries or damages which may be caused by activity under this Chapter; J. Certification by the applicant that the information contained in the application is true to their knowledge and belief; and
K. Any other reasonable information regarding the time, place, and manner of the proposed vending.

5.80.050 Criteria for Approval or Denial of Vending Permit.

The Director, or their designee, shall approve the issuance of a vending permit unless he or she determines that:

A. Information contained in the application, or supplemental information requested from the applicant, is false in any material detail;
B. The applicant has failed to provide a complete application, after having been notified of the requirement to produce additional information or documents; C. The applicant has failed to demonstrate an ability to conform to the operating standards set forth in this Chapter; or
D. The applicant has failed to pay any previous administrative fines, complete any community service, and/or complete any other alternative disposition associated with a previous violation of this Chapter.

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If the vending permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant.

5.80.060 Permit Expiration and Renewal.

A vending permit shall be valid for 12 months from the date of issuance, and shall expire and become null and void on the anniversary of its issuance. A person may apply for a permit renewal on a form provided by the City prior to the expiration of their active vending permit.

5.80.070 Permit Nontransferable.

No vending permit granted pursuant to this chapter shall be transferable.

5.80.080 Sidewalk Vendor Operating Requirements.

Sidewalk vendors shall comply with the following standards and conditions:

A. Sidewalk vendors shall maintain at all times while vending a valid vending permit, a valid business license in accordance with Chapter 5.04 of this Code, and any other permit(s) or license(s) required by the City or other governmental agencies. A current, valid business license sticker shall be affixed in plain view to the vending cart. Vendors of food or food products shall in addition affix in plain view to the vending cart a current, valid Los Angeles County Department of Public Health Letter Grade and a certification sticker indicating that it is a permitted food facility.

B. No sidewalk vendor shall vend in the following locations:

1. Within twenty feet of any street intersection;

2. Within twenty feet of any driveway or driveway apron;

3. Upon or within any roadway, median strip, frontage median, or dividing section;

4. Within 300 feet of a permitted certified farmers' market, a swap meet, or an area designated for a temporary special permit. This prohibition shall be limited to the operating hours of the farmers' market or swap meet, or the limited duration of the temporary special permit;

5. Within 300 feet of the nearest property line of any property on which a school building is located, between the hours of 8:00 a.m. and 4:00 p.m., each day that school is in session. This prohibition will not apply if the school principal gives the pushcart vendor written permission to enter or park on school property. The sidewalk vendor shall provide a copy of that authorization to the City within five days of its receipt, and possess a copy while vending to provide upon request to any Enforcement Official. For the purposes of this section, “school” includes a licensed daycare; or

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6. Within 300 feet of an area designated for a temporary special event permit for the duration of the temporary special permit, provided that any notice provided by the City to affected businesses or property owners under such special event permit is also provided to sidewalk vendors with a valid current vending permit issued pursuant to this Chapter. Such notice may be provided by posting notice at the location of the temporary special event.

7. Within any public property other than a public sidewalk or other pedestrian path as provided herein, including, without limitation, streets, alleys, plazas, and City-owned parking.

C. No sidewalk vendor shall vend in a manner that blocks or obstructs the free movement of pedestrians or vehicles. Sidewalk vendors must at all times provide a clearance of not less than four feet on all sidewalks or pedestrian areas so as to enable persons to freely pass while walking, running, or using mobility assistance devices.

D. No sidewalk vendor shall block or impede access to bicycle racks, bus stops, parking meters, required accessibility routes and curb cuts, trash enclosure areas or trash bins, fire hydrants, fire call boxes, or other emergency facilities.

E. No sidewalk vendor shall vend within 50 feet of another sidewalk vendor or a mobile food facility.

F. No sidewalk vendor shall distribute any item from the vending cart in a manner that causes any person to stand in the street.

G. Sidewalk vendors shall not offer, provide, rent, or sell a service that is neither defined as merchandise or food.

H. Vending is permitted between the hours of 8:00 a.m. and 10:00 p.m., daily, except as follows:

1. In residential areas, vending shall be permitted between the hours of 9:00 a.m. and 5:00 p.m.

2. In nonresidential areas, the limit on hours of operation shall not be more restrictive than the hours of operation of other businesses or uses on the same street.

3. In City parks, vending shall be permitted only during the open hours of the park.

I. Stationary sidewalk vendors shall obtain an encroachment permit, and must operate exclusively from the location and for the time periods designated by the encroachment permit.

J. Stationary sidewalk vendors shall not vend in areas that are zoned exclusively residential.

K. Stationary sidewalk vendors shall not vend at any park where the City or the park operator has signed an agreement for concessions that exclusively permits the sale of food or merchandise by a concessionaire.

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L. Sidewalk vendors shall maintain a clearly designated trash receptacle in the immediate vicinity of the vending cart, marked with a sign requesting use by patrons. Prior to leaving any vending location, the vendor shall pick up, remove, and dispose of all trash generated by the vending operations within a 25-foot radius of the vending location.

M. Sidewalk vendors shall maintain and possess at all times while vending proof of liability insurance in the amount required by the City.

N. Sidewalk vendors of food or food products shall possess and display in plain view on the vending cart a valid health permit from the Los Angeles County Department of Public Health.

O. Sidewalk vendors shall comply with all applicable state and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; and the Americans with Disabilities Act of 1990 and other disability access standards (both state and federal).

P. All vending carts must comply with the following requirements:

1. While in operation, all sidewalk vending equipment must not exceed a maximum length of six feet and a maximum width of four feet;

2. All vendors must maintain an unobstructed view over 4 feet in height from the ground to the tabletop structure of their sidewalk vending equipment; or

3. A sidewalk vendor may have one umbrella. When in use, the umbrella shall not exceed 10 feet in height as measured from ground level to its highest point. The umbrella cannot be attached to any public or private fixture, such as the sidewalk, street furniture, fence, bench, or trees. The umbrella must be made of a sturdy and safe material and must be attached and anchored to the sidewalk vending equipment in such a way that sudden bursts of wind will not dislodge it.

Q. No vending cart shall become a permanent fixture on the vending site or be considered an improvement to real property. No sidewalk vendor shall erect, place, or maintain any tent, canopy or other temporary shelter (excluding one umbrella) in the public right-of-way, a park, or sidewalk.

R. All sidewalk vendors shall be limited to two chairs. The chairs may be placed behind or next to (but not in front of) the vending cart.

S. All food and merchandise shall be stored inside of or affixed to the vending cart, or carried by the sidewalk vendor, and cannot be stored, placed, or kept on any public property.

T. No sidewalk vending cart or other vending equipment shall be left unaccompanied, stored, parked, or left overnight on any public property or public right-of-way.

U. Vending carts shall not touch, lean against or be affixed at any time to any building or structure including, but not limited to poles, signs, trees, lampposts, parking meters, mailboxes, traffic signals, fire hydrants, benches, bus shelters, newsstands, trashcans or traffic barriers, or other objects on public property or in the public right-of-way.

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V. All vending carts shall be accompanied during all hours of operation by at least one individual whose name and contact information has been previously provided to the City.

W. All signage and advertising related in any way to the sidewalk vendor must be attached to the vending cart or the sidewalk vendor's person, and shall not be electrical, flashing, wind- powered or animated.

X. Sidewalk vendors shall immediately clean up any food, grease or other fluid or item related to sidewalk vending activities that falls on public property. No liquid can be discharged, including water, grease, oil, etc., onto or into City property, including but not limited to streets, storm drains, catch basins, or sewer facilities. All discharges shall be contained and properly disposed of by the vendor.

Y. No sidewalk vendor may persistently and importunely engage in vending with a person after that person has indicated that he or she is not interested in the things being vended.

Z. The use of propane, natural gas, batteries and other explosive or hazardous materials, the burning of wood or charcoal, and the utilization of open flames is prohibited.

AA. Excessive smoke, odors, and other air quality nuisances are prohibited.

BB. Amplified sound-making devices, including but not limited to loudspeakers and public address systems, are prohibited.

CC. Alcoholic beverages, cannabis, adult-oriented material, tobacco products, products that contain nicotine, or any product used to smoke/vape nicotine or marijuana cannot be sold.

DD. Use of an electrical outlet or power source that is owned by the City without consent from the City is prohibited.

EE. Sidewalk vendors may not barricade or otherwise set a perimeter around a vending area to obstruct the free movement of pedestrians or cyclists, block the path of a person, or obstruct the free movement of vehicles, bicycles, or parked vehicles.

5.80.090 Mobile Food Facility Operating Requirements.

Mobile food facility operators shall comply with the following standards and conditions:

A. Mobile food facility operators shall obtain and maintain at all times while vending a valid vending permit, a valid business license in accordance with Chapter 5.04 of this Code, and any other permit(s) or license(s) required by the City or other governmental agencies. A current, valid business license sticker shall be affixed to the back of the mobile food facility. Vendors of food or food products shall in addition affix to the lower left-hand side of the windshield a current, valid Los Angeles County Department of Public Health Letter Grade and a certification sticker indicating that it is a permitted food facility.

B. In addition to any other equipment required by law, each mobile food facility shall be equipped with the following:

1. A convex mirror mounted so that the driver can see the area in front of the truck that is obscured by the truck's hood; and

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2. A back-up alarm audible for a distance of at least 100 feet.

C. Lettering showing the mobile food facility operator or owner's name, business address, and telephone number shall be permanently affixed to both sides of the mobile food facility in a conspicuous place. The lettering shall at all times be visible, shall not be less than four inches in height, and shall be in contrast to the color of the background upon which it is placed.

D. No mobile food facility operator shall vend in the following locations:

1. Within 100 feet of any street intersection controlled by a crosswalk, traffic light, or stop sign;

2. Within twenty feet of any driveway or driveway apron;

3. Within any publicly-owned or operated parking lot, unless the mobile food facility operator has written permission of the owner and complies with the provisions of section 5.80.090;

5. Within 300 feet of the nearest property line of any property on which a school building is located, between the hours of 8:00 a.m. and 4:00 p.m. each day that school is in session. This prohibition will not apply if the school principal gives the mobile food facility operator written permission to enter or park on school property. The mobile food facility operator shall provide a copy of that authorization to the City within five days of its receipt, and possess a copy while vending to provide upon request to any Enforcement Official; or

6. Within 300 feet of an area designated for a temporary special event permit for the duration of the temporary special permit, provided that any notice provided by the City to affected businesses or property owners under such special event permit is also provided to mobile food facility operators with a valid current vending permit issued pursuant to this Chapter. Such notice may be provided by posting notice at the location of the temporary special event.

E. The mobile food facility shall not obstruct pedestrian or vehicular traffic.

F. No mobile food facility operator shall vend within 50 feet of another mobile food facility or a sidewalk vendor.

G. Vending is prohibited on the exposed street or traffic side of the mobile food facility. No food, food products, goods, or merchandise shall be distributed from the mobile food facility in a manner so as to cause any customer or potential customer to stand in that portion of the street that is open to other vehicles.

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H. No part of a mobile food facility or any other equipment or furniture related to the operation of the mobile food facility shall encroach onto a public sidewalk.

I. Vending is permitted between the hours of 8:00 a.m. and 10:00 p.m., daily, except that in residential areas vending shall only be permitted between the hours of 9:00 a.m. and 5:00 p.m.

J. Mobile food facility operators shall maintain a clearly designated trash receptacle in the immediate vicinity of the mobile food facility, marked with a sign requesting use by patrons.

Prior to leaving any vending location, the vendor shall pick up, remove, and dispose of all trash generated by the vending operations within a 25-foot radius of the vending location.

K. Mobile food facility operators shall maintain and possess at all times while vending proof of liability insurance in the amount required by the City.

L. Mobile food facility operators shall comply with all applicable federal, state, and local laws, including without limitation state food preparation, handling, and labeling requirements; fire codes and regulations; noise standards; the Americans with Disabilities Act of 1990 and other disability access standards; and traffic, parking, and California Vehicle Code provisions.

M. No mobile food facility shall become a permanent fixture on the vending site or be considered an improvement to real property.

N. The mobile food facility shall be located on surfaces paved with concrete, asphalt or another impervious surface. No liquid can be discharged, including water, grease, oil, etc., onto or into City streets, storm drains, catch basins, or sewer facilities. All discharges shall be contained and properly disposed of by the mobile food facility operator.

O. Excessive smoke, odors, and other air quality nuisances are prohibited.

P. Amplified sound-making devices, including but not limited to loudspeakers and public address systems, are prohibited.

Q. Alcoholic beverages, cannabis, adult-oriented material, tobacco products, products that contain nicotine, or any product used to smoke/vape nicotine or marijuana cannot be sold.

R. Use of an electrical outlet or power source that is owned by the City without consent from the City is prohibited.

S. No mobile food facility operators shall use existing parking spaces on the site for customer queuing, tables, chairs, portable restrooms, signs, and/or any other ancillary equipment.

Operators shall not barricade or otherwise set a perimeter around a vending area to obstruct the free movement of pedestrians or cyclists, block the path of a person, or obstruct the free movement of vehicles, bicycles, or parked vehicles.

T. A mobile food facility shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility to ensure that restroom facilities are available to facility employees whenever the mobile food facility is stopped to conduct business for more than a one-hour period.

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U. All signage and advertising related in any way to the mobile food facility must be attached to the mobile food facility, and shall not be electrical, flashing, blinking, wind- powered or animated.

5.80.100 Regulations for Vending on Private Property.

In addition to compliance with the operating requirements set forth in Sections 5.80.070 and 5.80.080, any vendor operating or conducting business from a vending cart or mobile food facility on private property shall comply with the following:

A. The vendor shall comply with all applicable zoning regulations and land use entitlements for the private property.

B. Unless vending is otherwise authorized by the applicable zoning regulations and/or land use entitlements for the private property or as otherwise provided for herein, the vendor shall obtain from the Community Development Director an administrative conditional use permit pursuant to Section 17.62.190 prior to engaging any vending activity. Any request for such a permit shall require the written consent of the property owner, which shall be provided to the Community Development Director. In determining whether to grant the administrative conditional use permit, the Community Development Director shall make the following findings: (i) the vending is allowed within the applicable underlying zone or is consistent with the uses permitted in such zone; (ii) the vending will not be detrimental to the public health, safety and welfare or adversely affect property values or the present or future development of the surrounding area; and (iii) the property is physically suitable for the activity. The Community Development Director shall review and approve the administrative conditional use permit application within 30 days of receipt. If the administrative conditional use permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant.

C. No administrative conditional use permit, however, is required under this Section for the following mobile food facility activities:

1. Mobile food facilities that serve active construction sites as long as the mobile food facility does not vend to the general public during their stop and the stop at the site is no longer than one hour.

2. Mobile food facilities on private property operating solely for private catering purposes as long as the vehicle is situated entirely on private property, service is limited to the guests of the catered event only and no payment transactions occur for individual orders taken by the mobile food facility operator.

3. The mobile food facility is on private property for no more than one hour as long as: (a) vending is authorized by the applicable zoning and/or land use entitlement; and (b) the vendor has the written consent from the property owner and said consent shall be provided to the City upon request.

D. Notwithstanding the foregoing, mobile food facilities may be allowed on private property as a permanent or semi-permanent feature only with the approval of a conditional use permit pursuant to the Covina Town Center Specific Plan.

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5.80.110 Permit Rescission.

A. Sidewalk vendors. The Director may rescind a vending permit issued to a sidewalk vendor for a fourth violation or any subsequent violation of this Chapter.

B. Mobile food facility operators. The Director may rescind a vending permit issued to a mobile food facility operator for a first violation or any subsequent violation of this Chapter.

C. Should a vending permit be rescinded, the sidewalk vendor or mobile food facility operator shall be required to cease operation immediately. A sidewalk vendor or mobile food facility operator whose permit is rescinded may apply for a new vending permit upon the expiration of the term of the rescinded permit.

5.80.120 Administrative Citations.

A. Except as provided in Subsection (B) below, any violation of this Chapter is punishable by an administrative citation in following amounts:

1. One hundred dollars ($100) for a first violation.

2. Two hundred dollars ($200) for a second violation within one year of the first violation.

3. Five hundred dollars ($500) for each additional violation within one year of the first violation.

B. Vending without a valid City-issued vending permit is punishable by an administrative citation in the following amounts:

1. Two hundred fifty dollars ($250) for a first violation.

2. Five hundred dollars ($500) for a second violation within one year of the first violation.

3. One thousand dollars ($1,000) for each additional violation within one year of the first violation.

4. Upon proof of a valid vending permit, the administrative citations set forth in this paragraph shall be reduced to amounts set forth in Subsection (A).

C. A violation of this Chapter shall not be punishable as an infraction or misdemeanor.

No person alleged to have violated the provisions herein shall be subject to arrest except when otherwise permitted by law.

D. Failure to pay an administrative citation issued pursuant to this section shall not be punishable as an infraction or misdemeanor. Additional fines, fees, assessments, or any other financial conditions beyond those authorized herein shall not be assessed.

E. When assessing administrative citations pursuant to this chapter, the hearing officer shall take into consideration the person's ability to pay the fine. The City shall provide the person with notice of their right to request an ability-to-pay determination and shall make available

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instructions or other materials for requesting an ability-to-pay determination. The person may request an ability-to-pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program.

F. If the person meets the criteria described in California Government Code Section 68632(a) or (b), the City shall accept, in full satisfaction, 20% of an administrative citation imposed pursuant to this chapter.

G. The hearing officer may allow a person to complete community service in lieu of paying the total administrative citation, may waive the administrative citation, or may offer an alternative disposition.

H. Notwithstanding paragraphs A through G, penalties for violations of this Chapter related to mobile food facility operation shall be as set forth in Chapters 1.16, or 1.26 and any penalties provided therein are cumulative to any other penalty provided by law.

5.80.130 Appeals.

A. Any person aggrieved by the decision of the Director to issue, deny issuance, or rescind a vending permit may file an appeal with the City Clerk within 14 calendar days from the date of the decision. The permit, if one has been issued, shall remain in effect while the appeal is being heard by the Hearing Officer. The Hearing Officer shall make their decision on the basis of the preponderance of the credible evidence presented at the appeal hearing and shall render a decision within 30 days of the hearing to either affirm, reverse, or modify the action of the Director. The decision shall be in writing, and shall set forth the findings and reasons for the decision. The Hearing Officer's decision after such hearing shall be final and conclusive.

B. Except as otherwise specified herein, appeals of administrative citations shall be conducted in accordance with the procedures and requirements Chapter 1.26 of this Code.

5.80.140 Administrative regulations.

The Director may promulgate administrative regulations to implement the provisions of this Chapter, including, but not limited to, permit application procedures and requirements, permit conditions, operating conditions, inspection frequencies, enforcement procedures, location restrictions, or concentration restrictions. No person shall fail to comply with any such regulations.

Section 4. CEQA. The City Council finds and determines that there is no possibility that the adoption of this Ordinance will have a significant effect on the environment. Accordingly, this Ordinance is not subject to the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15378 of Division 6 of Title 14 of the California Code of Regulations.

Section 5. 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 without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

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Section 6. Effective Date. This Ordinance shall take effect 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.

INTRODUCED this ___ day of _____, 2023.

PASSED, APPROVED, AND ADOPTED this____ day of _____, 2023.

City of Covina, California
BY:

PATRICIA CORTEZ, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Deputy City Clerk
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney

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ATTACHMENT B
ORDINANCE 23-04

AN ORDINANCE OF THE CITY OF COVINA,
CALIFORNIA ADDING CHAPTER 5.80 TO TITLE 5,
AMENDING SECTION 5.24.100, AND REPEALING
SECTION 10.32.150 OF COVINA MUNICIPAL CODE

REGARDING REGULATION OF PEDDLERS, SIDEWALK

VENDORS, AND MOBILE FOOD FACILITIES AND

DETERMINING THE SAME TO BE EXEMPT FROM THE

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ATTACHMENT B
WHEREAS, the City Council finds that restrictions on street and sidewalk vending in public parks is necessary to ensure the public’s use and enjoyment of natural resources and recreational opportunities, and to prevent an undue concentration of commercial activity that would unreasonably interfere with the scenic and natural character of these parks; and WHEREAS, the City Council adopts this Ordinance under the authority provided in SB 946 and California Vehicle Code Section 22455(b) and finds that the time, place, and manner regulations and requirements provided herein are directly related to the City’s purpose of protecting of the health, safety, and welfare of its residents, businesses and visitors.

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

Section 1. The Covina Municipal Code is hereby amended to repeal Section

10.32.150.

SIDEWALK VENDORS AND MOBILE FOOD FACILITIES

5.80.010 Definitions

5.80.020 Business license required

5.80.030 Vending permit required

5.80.040 Vending permit application

5.80.050 Criteria for approval or denial of vending permit

5.80.060 Permit expiration and renewal

5.80.070 Permit nontransferable

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ATTACHMENT B

5.80.080 Sidewalk vendor operating requirements

5.80.090 Mobile food facility operating requirements

5.80.100 Regulations for vending on private property

5.80.110 Permit rescission

5.80.120 Administrative citations

5.80.130 Appeals

5.80.140 Administrative regulations

5.80.010 Definitions.

For purposes of this Chapter, the following words or phrases shall have the following meanings:

A. Certified farmers’ market” means a location operated in accordance with Chapter

10.5 of Division 17 of the California Food and Agricultural Code and any regulations adopted pursuant to that chapter.

B. “Director” means the City Manager or their designee.

C. “Enforcement Official” means the City Manager, the Chief of Police, or either of their designees who is charged with enforcing the Covina Municipal Code.

D. “Food” or “Food Products” mean any item described by California Health and Safety Code Section 113781.

F. “Hearing Officer” means any person selected by the City Manager to conduct an administrative hearing that has no bias or pecuniary interest in the matter to be heard.

H. “Mobile Food Facility Operator” means any person that operates or assists in the operation of a mobile food facility.

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ATTACHMENT B
J. “Roaming Sidewalk Vendor” means any sidewalk vendor who moves from place to place and stops only to complete a transaction.

K. “Sidewalk Vendor” means any person who vends from a vending cart or from one's person, upon a public sidewalk, parkway, pedestrian path, or other public right-of-way available to pedestrians.

L. “Stationary Sidewalk Vendor” means a sidewalk vendor who vends from a fixed location.

O. “Vend” or “vending” means to sell, offer for sale, display for sale, or solicit offers to purchase, food, food products, beverages, goods, or merchandise.

5.80.020 Business License Required.

5.80.030 Vending Permit Required.

5.80.040 Vending Permit Application.

A. The legal name and current address and telephone number of the applicant;

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ATTACHMENT B
B. If the applicant is an agent of an individual, company, partnership, corporation, or other entity, the name and business address of the principal; C. A description of the food or merchandise offered for sale; D. A photograph of the mobile food facility or vending cart. If the applicant intends to use a mobile food facility, a description of the type of vehicle to be used, the vehicle's registration and license number, and the applicant's California driver's license numbers); E. Whether the applicant intends to operate as a stationary sidewalk vendor, a roaming sidewalk vendor, or a mobile food facility operator;
F. A description of the streets, rights-of-way, or other locations in which the applicant intends to vend;
G. A California seller's permit number pursuant to California Revenue and Taxation Code § 6067;
H. If a vendor of food or food products, certification to completion of a food handler course and proof of all required approvals from the Los Angeles County Department of Public Health, including a valid and current Mobile Food Facility permit; I. Proof of liability insurance in the amount and subject to the terms on file with the City's Risk Manager. The City's Risk Manager shall promulgate provisions regarding insurance requirements for sidewalk vendors and mobile food facilities and shall be in an amount which is determined to be sufficient to adequately protect the City, persons, and property for injuries or damages which may be caused by activity under this Chapter; J. Certification by the applicant that the information contained in the application is true to their knowledge and belief; and
K. Any other reasonable information regarding the time, place, and manner of the proposed vending.

5.80.050 Criteria for Approval or Denial of Vending Permit.

The Director, or their designee, shall approve the issuance of a vending permit unless he or she determines that:

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ATTACHMENT B
If the vending permit is denied, written notice of such denial and the reasons therefor shall be provided to the applicant.

5.80.060 Permit Expiration and Renewal.

5.80.070 Permit Nontransferable.

No vending permit granted pursuant to this chapter shall be transferable.

5.80.080 Sidewalk Vendor Operating Requirements.

Sidewalk vendors shall comply with the following standards and conditions:

B. No sidewalk vendor shall vend in the following locations:

1. Within twenty feet of any street intersection;

2. Within twenty feet of any driveway or driveway apron;

3. Upon or within any roadway, median strip, frontage median, or dividing section;

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