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CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: February 20, 2024
Title: Adoption of Ordinance 24-01
Presented by: Chris Marcarello, City Manager
Candice K. Lee, City Attorney
Recommendation: Adopt Ordinance 24-01 entitled, “An Ordinance of the City Council of the City of Covina, California, Amending Chapter 2.04 (City Council) of the Covina Municipal Code to Add a New Section 2.04.050 (Compensation) Pertaining to Compensation of the Mayor and City Councilmembers”.
EXECUTIVE SUMMARY:
Ordinance 24-01 (Attachment A) was approved at introduction by a 4-0-1 vote of the City Council at the February 6, 2024, City Council Meeting.
DISCUSSION:
It is recommended that the City Council adopt on second reading Ordinance 24-01 entitled, “An Ordinance of the City Council of the City of Covina, California, Amending Chapter 2.04 (City Council) of the Covina Municipal Code to Add a New Section 2.04.050 (Compensation) Pertaining to Compensation of the Mayor and City Councilmembers”.
FISCAL IMPACT:
There is no fiscal impact for the second reading and adoption of an ordinance.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
ATTACHMENT A
ORDINANCE 24-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING CHAPTER 2.04 (CITY COUNCIL) OF THE COVINA MUNICIPAL CODE TO ADD A NEW SECTION 2.04.050
(COMPENSATION) PERTAINING TO COMPENSATION OF THE
MAYOR AND CITY COUNCILMEMBERS
THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
The City Council finds and declares that:
A. Effective January 1, 2024, SB 329 revised Government Code Section 36516 to permit general law cities, such as the City of Covina, to increase the maximum compensation amounts payable to members of the City Council up to a statutory limit based on city population; B. SB 329 was adopted to “reset” city council salaries to take into account that the salary amounts listed in the Government Code had not been revised in 40 years (i.e., since 1984) and thus had not kept pace with inflation. Moreover, in adopting SB 329, the State Legislature found and declared that allowing cities to adjust council member salaries would help city councils become more diverse and would encourage more persons to consider public service as council members because the increased compensation could help individuals from across different income levels receive sufficient income to help ensure that they can continue to serve and support their families;
C. Compensation paid to the Covina Mayor and Members of the City Council has not been changed since 1988, which is a period of 36 years; and D. Increasing the compensation paid to the Mayor and Members of the City Council also may help remove economic barriers to service in City office and help to encourage more individuals to run for office; and
E. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Ordinance are true and correct and are incorporated herein as if set forth in full.
Pursuant to Government Code Section 36516(g)(2), the City Council makes the following findings demonstrating the need for the increased compensation as follows: (i) the statewide compensation schedule for city council members of general law cities, which includes the City of Covina, has not been adjusted since 1984, meaning that city council compensation has not kept pace with inflation; (ii) California has had an approximate 300% increase in the cost of living since 1984; (iii) the privilege to serve on the city council requires the expenditure of significant time during weekdays and weekends to attend meetings of the City as well as other meeting assignments as well as attend events in the community; (iv) city council service also involves time and work in reviewing staff reports, other agenda reports, legal documents, and state legislation that would impact the city; attending to representative assignments at regional government body meetings; staying informed on current local and state issues; and reviewing financial materials, budgets and reports among the many duties of a council member; and (v)
Ordinance 24-01 Page 2 of 3
increasing city council compensation will reflect the time and work being performed by members of the city council but more importantly, will create opportunities to assist the city in encouraging that its council become more diverse as stated by the findings of Senate Bill 329 and that increased compensation can help individuals from across different income levels receive sufficient income from their service to help ensure that they can continue to serve the public and support themselves and their families.
Chapter 2.04 (City Council) of the Covina Municipal Code is hereby amended to add a new Section 2.04.050 (Compensation) to read as follows:
“2.04.050 Compensation.
Pursuant to Government Code Section 36516 or any successor statute, the Mayor and each member of the City Council shall receive a salary of $1,600 per month. The salary of the Mayor and members of the City Council may be changed in the manner provided by law.” The adoption of this Ordinance is not a “project” as defined in Public Resources Code Section 21065 and not subject to CEQA review.
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
Pursuant to Government Code Section 36516.5, the adjustment in compensation for all City Council members provided by this Ordinance shall not take effect until the commencement of the terms of any new City Council members or re-elected City Council members following the general municipal election to be held in March 2024. When such adjustment takes effect, Ordinance No. 88-1667 shall be repealed.
The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be entered in the book of original ordinances of said City; shall make a minute passage and adoption thereof in the records of the meeting at which time the same is passed and adopted; and shall, within fifteen (15) days after the passage and adoption thereof, cause the same to be published as required by law, in a local weekly newspaper of general circulation and which is hereby designated for that purpose.
PASSED, APPROVED and ADOPTED this __ day of _______, 2024.
City of Covina, California
BY:
WALTER ALLEN, III, Mayor
Ordinance 24-01 Page 3 of 3
ATTEST:
____________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
__________________
CANDICE K. LEE, City Attorney
CERTIFICATION
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 24-01 was introduced for first reading at a regular meeting on the __ day of _______, 2024.
Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the __ day of _______, 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
FABIAN VELEZ, Chief Deputy City Clerk
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: February 20, 2024
Title: Request to Cancel the Regular City Council Meeting of March 5, 2024 Presented by: Chris Marcarello, City Manager
Recommendation: That the City Council consider canceling the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority regular scheduled joint meeting of March 5, 2024; and direct the City Clerk’s Office to post the required Notice of Cancellation.
DISCUSSION:
The City of Covina’s General Municipal Election will be held on March 5, 2024, and traditionally, regular meetings are cancelled in order to provide local voters with the opportunity to vote.
The City Council has the legal authority to establish meeting dates and times and to cancel or reschedule such meetings with proper and timely public notice. Therefore, it is recommended that City Council cancel the meeting of March 5, 2024, and direct the City Clerk’s Office to post the required Notice of Cancellation.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: February 20, 2024
Title: Award Professional Services Agreement to Review and Update the City’s Comprehensive User Fee Study
Presented by: Anita Agramonte, Director of Administrative Services Charles Russom, Management Analyst
Recommendation: Authorize the City Manager to execute a Professional Services Contract with Willdan for an amount not to exceed $27,410 to perform and conduct a Comprehensive User Fee Study.
BACKGROUND:
In December 2013, the City of Covina engaged in a Professional Services Agreement with Willdan for the purposes of conducting a Comprehensive User Fee Study. The fee study recommendations were adopted in 2016 and the fees have not been adjusted since adoption. It is a best management practice to update user fees for service every five years to keep consistent with the market and changing City operations. Following staff’s review of time/motion studies and rates that are used to set fees, recommendations will be presented to the City Council for further consideration.
DISCUSSION:
The Administrative Services Department completed an informal request for proposals process to update the City’s existing user fees and received proposals from three qualified vendors - (1) MGT ($114,000), (2) Willdan ($27,410) and (3) NBS ($53,860). Staff evaluated the three responses and while all three firms are well qualified, it is recommended that the City enter into an agreement with Willdan to complete the fee study update.
Having completed the City’s previous Citywide user fee study, Willdan is uniquely qualified to complete this project and provide fee recommendations that will cover costs for services in accordance with State law.
For consideration, the Fee Study Proposal from Willdan is included in Attachment A.
FISCAL IMPACT:
There is sufficient funding in the General Fund 1010-0500-51005 for this project and requires no budget amendment.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
CITY OF COVINA
User Fee Study
Attachment A
Table of Contents
TABLE OF CONTENTS ...........................................................................................................................................................I FIRM PROFILE....................................................................................................................................................................... 1 Willdan Financial Services .........................................................................................................................................1 Broad Experience.......................................................................................................................................................2 Project Dedication ......................................................................................................................................................2 Staff Continuity ...........................................................................................................................................................2 PROJECT TEAM.....................................................................................................................................................................3 Resumes ....................................................................................................................................................................3 Chris Fisher ................................................................................................................................................................4 Mike Medve ................................................................................................................................................................5 Tony Thrasher ............................................................................................................................................................6 Priti Patel ....................................................................................................................................................................7 Robert Quaid ..............................................................................................................................................................8 PROPOSED SCOPE OF SERVICES..................................................................................................................................... 9 User Fee Study Work Plan.........................................................................................................................................9 City Staff Support .....................................................................................................................................................13 Project Schedule ......................................................................................................................................................13 COST PROPOSAL................................................................................................................................................................14 Notes ........................................................................................................................................................................14 Hourly Fee Schedule................................................................................................................................................14 Attachment A
December 08, 2023
Mr. Charles Russom
Management Analyst
City of Covina
125 East College Street
Covina, CA 91723
Re: Proposal to Conduct a User Fee Study for the City of Covina Dear Charles:
Following up on our email correspondence, and our recent phone conversation, please find our proposal to assist the City of Covina (“City”) with the completion of a Comprehensive User Fee Study.
As you know, cities are constantly challenged with competing priorities and objectives and numerous demands on their limited financial resources, all while striving to maintain high standards of service to the community. Processes and staffing often evolve as staff seek efficiencies and more cost-effective service models; or sometimes practices change out of necessity in response to events such as the recent pandemic. Considering this, it is critical for the City to ensure that fees for requested services have been developed and updated to reflect current practices, account for the true cost of providing City services, including provision for costs related to indirect overhead support, and ensure maximum appropriate cost recovery, so that revenues generated by fees cover the cost of those services to the greatest extent possible. City Staff, and ultimately the City Council, need a clear understanding of standards, service levels and the associated costs.
Willdan Financial Services (“Willdan”) is uniquely qualified to assist the City of Covina with this project, following are specific advantages that we bring to the City for this study.
Experience with the City of Covina – Willdan has a history of working successfully with the City of Covina, including the completion of the previous User Fee Study. We will use the previous model and data as the starting point for this project, and bring this same level of professionalism, commitment, and expertise to this proposed engagement. Our knowledge of the City will allow us to effectively gather data and information and clarify questions. Wherever possible, we will leverage our knowledge of the City’s operations and staff to facilitate the requested services in a cost-effective and efficient manner.
Extensive Local Experience with Similar Projects for Southern California Cities — As we discussed, Willdan has worked with numerous cities near Covina, and throughout the San Gabriel Valley and Southern California, on User Fee projects with objectives very similar to those for this study. Our unique local knowledge will help us bring valuable perspective and knowledge of other local cities’ approaches to fees, policies on fee setting and cost recovery, visibility of new fees cities are implementing, and assist us in conducting meaningful and efficient fee comparisons. Recent and ongoing studies include the Cities of Los Angeles, West Hollywood, Burbank, El Monte, Los Alamitos, Lynwood, San Dimas, Montebello, Arcadia, Pomona, Claremont, Chino Hills, and Chino.
Collaborative Approach, Proven Results and User-friendly Models and Reports — Willdan prides itself on working closely with City staff to develop an approach that is targeted toward your specific objectives and reality, and then working together with you to gather first-hand information regarding the processes and tasks required to provide services to those requesting them. This is a distinct advantage we will bring in our approach with the City of Oroville. A collaborative approach ensures we clearly understand your goals and challenges, and just as importantly, you understand the process and the results.
We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the model collaboratively with City staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City’s budget format wherever possible. As a result, the information contained in our models is easy for City staff to interpret, easy to update and adjust on-the-fly, and the familiar software ensures ease of navigation.
Attachment A
Created directly from the models, our reports clearly and graphically illustrate full and recommended levels of cost recovery and projections of revenue for fee programs, break down the costs into direct and indirect overhead categories, and present the fee methodologies.
Our approach is geared toward delivering work on schedule and presenting results at public meetings and council workshops to stakeholders and elected officials who typically do not want or need to see the deep detailed analysis.
The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals. We have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.
Unique Combination of Services and Expertise/Public Engagement —Willdan is a team of nearly 80 professionals who provide essential financial consulting services throughout California, and the United States. Willdan has provided the requested services to municipal clients for two decades; and is the only firm providing these types of consulting services that also has a long history of providing contract staff support to public agencies for the delivery of municipal services. This direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.
We are excited about this opportunity to continue to serve the City of Covina. To discuss any aspect of our proposal, please contact me; my contact information is provided in the table below.
Contact Information
Principal-in-Charge
Chris Fisher
Vice President and Director
Email: [email protected]
27368 Via Industria, Suite 200, Temecula, CA 92590
Tel#: (951) 587-3528 | Fax#: (951) 587-3510
Sincerely,
WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President - Group Director
Attachment A
Firm Profile
Willdan Financial Services, a California
Corporation, is an operating division within Willdan
Group, Inc. (WGI), which was founded in 1964 as
an engineering firm working with local
governments. Today, WGI is a publicly traded
company (WLDN). WGI, through its divisions,
provides professional technical and consulting
services that ensure the quality, value and security
of our nation’s infrastructure, systems, facilities,
and environment. The firm has pursued two primary
service objectives since its inception—ensuring the
success of its clients and enhancing its surrounding
communities.
A financially stable company, Willdan has
approximately 1,400 employees working in more
than a dozen states across the U.S.
Our employees include a number of nationally
recognized Subject Matter Experts for all areas
related to the broadest definition of connected
communities—four of whom are committed to
contribute their expertise throughout the
duration of the City of Covina’s User Fee Study
engagement.
Willdan has solved economic, engineering and energy challenges for local communities and delivered industry-leading solutions that have transformed government and commerce. Today, we are leading our clients into a future accelerated by change in resources, infrastructure, technology, regulations, and industry trends.
Willdan Financial Services
Established on June 24, 1988, Willdan Financial Services, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 1,500 public agencies successfully address a broad range of infrastructure challenges.
Our staff nearly 80 full-time employees support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise.
Willdan assists local public agencies by providing the following services:
Willdan Financial Services
Services
▪ User fee studies;
▪ Cost allocation studies;
▪ Utility rate and cost of service studies;
▪ Real estate economic analysis;
▪ Tax increment finance district formation and
amendment;
▪ Property tax audits;
▪ Economic development strategic plans;
▪ Development impact fee establishment and
analysis;
▪ District administration services;
▪ Feasibility studies;
▪ Municipal advisory services;
▪ Arbitrage and continuing disclosure services;
▪ Debt issuance support; and
▪ Long-term financial plans and cash flow modeling.
Attachment A
Broad Experience
Willdan Financial Services is a team of professionals who provide essential financial consulting services throughout the USA. Our direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.
Willdan has provided user fee study services to municipal clients for over 20 years; and has prepared user fee
studies, cost allocation plans and OMB compliant cost
allocation plans for clients throughout California, and the United States. Willdan’s proven and successful trackrecord conducting user fee studies and cost allocation plan services for public agencies dates to 1998. Since that time, we have developed the expertise to successfully
integrate this service into the Financial Consulting
Services group’s primary functions.
Willdan has extensive experience with a range of fee
studies and the typical pros, cons, and challenges, both in implementation and management. Willdan will bring its
expertise to the City’s process of considering financial, practical, and policy issues in deciding on its future fee program.
Our record of success within the industry provides
assurance of the professionalism and capability we will bring to this engagement.
Project Dedication
Willdan has assembled a project team of five (5) subject matter experts within the Financial Consulting Services group, to conduct the City of Covina’s User Fee Study engagement. This team has coordinated or participated in numerous public stakeholder and staff workshops regarding fees and cost of service-based charges.
The proposed project team members prepared the City of Covina’s current User Fee Study. As previously stated, the Willdan team will leverage our knowledge of the City’s operations to facilitate this study in a cost-effective and efficient manner, focusing less time on data gathering and more on analysis and realistic strategies, providing a higher value.
The Financial Consulting Services group is made up of over 20 professionals who can be called upon as needed; we are confident that our team possesses the depth of experience that will successfully fulfill the desired work performance.
Staff Continuity
Mr. Fisher has been assigned to serve as the City’s representative; he has been selected for this role due to his extensive experience, which includes the preparation and supervision of numerous fee studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.
Mr. Fisher has been with Willdan
for more than 24 years, ensuring
the City of Covina of continuity and
dedication in staffing during the
completion of the project.
Attachment A
Project Team
Our management and supervision of the project team is very simple: staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget.
With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.
City of Covina Project Team
Key Team Member Project Role Responsibility to the Engagement Chris Fisher
Vice President/Director Principal-in-Charge
▪ Ensure client satisfaction, flow of communication, and oversight of the project
▪ Technical guidance;
▪ Project oversight;
▪ Quality assurance & control; and
▪ Meeting and presentation attendance.
Mike Medve
Principal Consultant Co-Project Manager
▪ Task oversight;
▪ Model development;
▪ Produce key elements of the analyses;
▪ Responsible for project deliverables;
▪ Report preparation and evaluation; and
▪ Meeting and presentation attendance.
Tony Thrasher
Principal Consultant Co-Project Manager
▪ Task oversight;
▪ Model development;
▪ Produce key elements of the analyses;
▪ Responsible for project deliverables;
▪ Report preparation and evaluation; and
▪ Meeting and presentation attendance.
Priti Patel
Senior Financial Analyst Financial Analyst
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Report preparation; and
▪ Meeting and presentation attendance.
Robert Quaid
Principal Consultant Quality Assurance
▪ Third party reviewer; and
▪ Report evaluation.
Resumes
Resumes for Willdan’s project team are provided on the following pages.
Our employees know and understand
the problems facing local government
under the current economic climate,
and we have oriented our practice to
support an agency’s modified budget
policies and public service priorities.
Attachment A
Education
San Francisco
State University,
Bachelor of
Science, Finance
Areas of
Expertise
Cost of Service
Analyses
Multi-disciplinary
Team
Management
Special District
Formations
Client
Presentations
Proposition 218
Affiliations
California
Society of
Municipal
Finance Officers
Municipal
Management
Association of
Northern
California
California
Municipal
Treasurers
Association
24 Years’
Experience
Chris Fisher
Principal-in-Charge
Mr. Chris Fisher, Vice President / Director of Willdan’s Financial Consulting Services group, will serve as Principal-in-Charge for the City of Covina project. He will also share his extensive knowledge related to cost-of-service principles with members of the project team.
Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects for public agencies in California, Colorado, Texas, Arizona, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working on these projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety.
Related Experience
City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Mr. Fisher served as the principal-in-charge for the City of National City’s Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee, and ISF Allocation Study.
City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals & Comprehensive User Fee Study: Mr. Fisher is the principal-in-charge for the City’s full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive user Fee Study engagement. The project is ongoing, and the User Fee Study is now underway.
City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City’s Finance Commission and to the City Council.
City of Pomona, CA – Master Fee Schedule Update: Mr. Fisher was the principal-in-charge for the City’s master fee schedule update and update of the development impact fees. Mr. Fisher provided quality control and served as the primary contact with the City.
City of Laguna Hills, CA — Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher oversaw the update of the City’s general overhead allocation plan and cost-ofservice user fees.
City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher is the principal-in-charge for the ongoing full cost allocation plan and user fee study. Willdan’s work includes the gathering of necessary data and information, interviews with City staff to identify overhead support services and how they are used and interviews to gather information related to fee-based services. We are also developing financial models to calculate overhead allocations and personnel rates and the full cost of services for which fees are charged. We are working with staff to finalize cost recovery targets, prepare reports and present the results.
City of Indian Wells, CA — User Fee Study: Mr. Fisher was the principal-in-charge for the City’s user fee study for the Administrative, Building, Planning and Public Works Departments. Our team gathered and confirmed data, met with City staff to discuss the City’s overhead support structure and how operating activities use and benefit from overhead support services. We conducted interviews to gather information related to fee-based services to be used in calculating the full cost of providing services. We developed financial models to calculate overhead allocations and the full cost of services and worked with staff to develop fee-setting recommendations. We prepared reports and presented the results and met with the development community to address their questions about the study’s methodology and results.
City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher served as the principal-in-charge for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through competitive bid, been reselected to update the cost allocation plan.
Attachment A
Education
Bachelor of
Science,
Information and
Computer
Science,
Management and
Mathematics
Minors,
Cum Laude,
University of
California, Irvine
Areas of
Expertise
Public Finance
Public Facility
Financing
Special District
Formation and
Administration
Proposition 218
New Markets Tax
Credits
Grant Writing
Cost Allocation
Plans
Fiscal Analysis for
User Fees and
Rates
17 Years’
Experience
Mike Medve
Project Manager
Mr. Mike Medve is a Principal Consultant, with 17 years of experience, with expertise in public finance, including special district formation and administration, fiscal impact analysis, public facilities financing plans, integrated financing districts, Proposition 218, tax credit financing, state and federal grant and loan programs, sales tax revenue bonds, and infrastructure financing districts. He has developed financial pro formas and cash flow analyses for numerous types of public and private project financing programs.
Prior to joining Willdan, Mr. Medve was a consultant in the field of public finance for Parsons Brinckerhoff and David Taussig & Associates. Over the years, he has been a financing team member for over $150 million in limited obligation bonds and over $50 million in grant funds. He has served as the lead consultant for over two dozen clients, both public and private, throughout the country.
Related Experience
City of Murrieta, CA — Cost Allocation & OMB Compliant Plan and Comprehensive User Fee Study: Mr. Medve served as the project manager for the City’s Cost Allocation and Comprehensive User Fee study. The primary objective for the cost allocation study was to ensure that general government costs were fairly and equitably allocated to appropriate programs and funds. Mr. Medve is once again serving as the project manager for the City’s update.
City of Lake Elsinore, CA — Cost Allocation Plan & User Fee Study: Mr. Medve served as the project manager for the City of Lake Elsinore’s Cost Allocation Plan & User Fee Study. The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs cost recovery levels.
City of San Jacinto, CA — Cost Allocation Plan and User Fee Study: Mr. Medve was the project manager for the Cost Allocation Plan and User Fee Study portion of the City of San Jacinto’s engagement, which also included an update of the development impact fees. Mr. Medve was responsible for the development of models and reports and coordinating analytical support.
City of Lynwood, CA — Full Cost Allocation Plan and Comprehensive Fee Study:
As the project manager for the City of Lynwood OMB compliant full cost allocation plan and comprehensive fee study engagement, Mr. Medve worked closely with City staff to analyze data, report production, participated in multiple meetings, and assisted the City appointed Project Manager in the adoption of the new fees.
City of Yucaipa, CA — Cost Allocation Plan and User Fee Study: Mr. Medve was assigned to work with the City on this engagement as project manager, analyzing data, working with staff to make refinements, and developing cost allocation and fee models to ensure full-cost recovery for building and safety, planning, community development, and public works departments.
City of Calexico, CA — Cost Allocation Plan and EMS User Fee Study: Mr. Medve was the project manager for the City of Calexico cost allocation plan EMS fee study engagement. He was the primary in developing the model.
City of Palm Desert, CA — EMS User Fee Study: Mr. Medve served as Project Manager on the City’s EMS User Fee Study. The City’s expressed goal was to prevent overuse of City EMS resources by assisted living facilities, many of which contributed to a large percentage of EMS call volume. EMS fees were developed primarily to discourage abuse, and as such were held to nominal levels. Provisions were enacted to exempt Medicare enrollees and to allow one free EMS call per year per residence.
Burney Fire Protection District, CA — EMS User Fee Study: Mr. Medve served as Project Manager on an EMS User Fee Study. Mr. Medve updated the district’s existing fees to correspond with the latest staffing and budget data. He also added a category of service for non-transport EMS responses.
Attachment A
Education
Bachelor of
Science
in Economics;
California State
Polytechnic
University,
Pomona
Areas of
Expertise
Cost Allocation
Plans
Fiscal Analysis for
User Fees and
Rates
District
Administration
Services
Utility Rate
Studies
14 Years’
Experience
Tony Thrasher
Co-Project Manager
Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Co-Project Manager for the City’s engagement. Mr. Thrasher is a Principal Consultant within the Financial Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses for cost allocation plans, user fees, and utility rate studies.
Mr. Thrasher’s prior employment was as a financial analyst working in bond, equity, and mortgagebacked security markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank.
His experience includes portfolio accounting, differential analysis, and forecasting.
Related Experience
City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Mr. Thrasher served as the project manager for the City of National City’s previous CAP/User Fee/ISF Study that was completed in 2018. He led the gathering and verification of data, development of the model and analysis, reports and presentations, and presented results to City Staff and the City Council.
City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City of San Marcos’ full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive User Fee Study engagement. He is the primary in developing the model, which contains all City personnel and expenditures broken down into the ICRP tables. The project is ongoing, and the User Fee Study is now underway.
City of Encinitas, CA — Cost Allocation Plan, Indirect Cost Rate Proposals and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City of Encinitas’ ongoing fee study. Mr. Thrasher and his team developed the comprehensive model that included allocation of indirect overhead costs. He also attended meetings with local stakeholders to discuss the approach and address questions and concerns. Willdan was also retained to update the original study.
City of Mission Viejo, CA — Cost Allocation Plan and User Fee Study: Mr. Thrasher was assigned to work with the City on this project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure full-cost recovery for building and safety, planning, community development, and public works departments.
City of Irvine, CA —Cost Allocation Plan and Comprehensive User Fee Study: Serving as the project’s project manager and lead analyst, Mr. Thrasher oversaw the development of the model and led analytical efforts; and designed micro-level allocation models to ensure full-cost recovery for public safety, public works, community development, community services, and administrative departments. The City of Irvine has recently re-engaged Willdan, through competitive bid, to conduct a Cost Allocation Plan and User Fee Study.
City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr.
Thrasher is the technical project manager for the City’s Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement.
City of Pomona, CA – Master Fee Schedule Update: Mr. Thrasher served as the project manager for the master fee schedule update portion of the City of Pomona’s engagement, which also included an update of the development impact fees. Mr. Thrasher was responsible for the development of models and reports and coordinating analytical support.
City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr.
Thrasher was the project manager for the City’s cost allocation plan, OMB compliant plan and comprehensive user fee study engagement. Willdan has recently, through competitive bid, been re-selected to update the cost allocation plan.
Attachment A
Education
Bachelor of Arts;
Business
Management,
Information
Systems and
International
Business,
University of
Cincinnati
Areas of
Expertise
Cost Allocation
Plans
User Fee Studies
Proposition 218
10 Years’
Experience
Priti Patel
Analytical Support
Ms. Priti Patel is a Senior Analyst within the Financial Consulting Services group, whereby she supports project managers in conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 compliance, and forming special districts.
Coordinating and conducting activities associated with Cost Allocation Plans and User Fee Studies, including database integration and manipulation, revenue and expenditure analyses, and documentation preparation are just some of Ms. Patel’s duties. With these duties, she interacts with clients on a regular basis.
Ms. Patel joined Willdan as an analyst with the District Administration Group, while with DAS she performed research and analysis needed for local government financial issues related to district administration, including document data entry, and updating, database management, research and report preparation. She also provided general information on questions pertaining to Assessment Districts and special taxes (such as Mello-Roos Pools), as well as the status of property delinquencies.
Related Experience
City of National City, CA — Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study: Ms. Patel worked as part of the team on the City’s 2018 CAP/User Fee/ISF study. She worked extensively on development of the model and analysis, met with City Staff to review service delivery processes and develop the cost-of-service analysis, and drafted final reports for each of the studies.
City of Richmond, CA — Cost Allocation Plan & User Fee Study: Ms. Patel was the financial analyst on the City of Richmond’s ongoing User Fee Study and Cost Allocation Plan. She assisted the project manager with gathering and validation of data, development of the models and related analysis, staff interviews and preparation of reports and presentations.
City of Pittsburg, CA — Cost Allocation Plan and User Fee Study: Ms. Patel was assigned to aid senior project team members on the City of Pittsburg Cost Allocation Plan and User Fee Study engagement. She will be a technical lead for the gathering of data, creation of the models and preparation of study reports and presentations. The City hired Willdan for the original study, and for two subsequent updates.
City of Dinuba, CA — Cost Allocation Plan Update and Utility Rate Study: Ms. Patel assisted with a utility rate study and a cost allocation plan update for the City. Duties included reviewing relevant documentation, gathering information related to indirect staffing and functions, assisting in the preparation of a comprehensive draft cost allocation model and plan, and testing and reviewing the model and results with project management staff.
City of Monterey, CA — Cost Allocation Plan: Ms. Patel is serving as the financial analyst for the City of Monterey Cost Allocation Plan and updates. In this role she is responsible for obtaining updated information and data, reviewing overhead structure and functions, and preparing the updated model and report. The City has continued to retain Willdan for updates to the original study.
City of Fillmore, CA — Full Cost Allocation Plan and User Fee Study: Ms. Patel helped develop a cost allocation plan and model that fully allocated central overhead costs to appropriate operating departments, funds, and/or programs. She assisted in the completion of the model and report and worked directly with senior staff to disseminate their feedback and process revisions.
City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study:
Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study, Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. She is also assisting in the preparation of user-friendly Excel-based models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.
Attachment A
Education
Bachelor of
Science,
University of
Southern
California
Areas of
Expertise
Fiscal Analysis
for User Fees
and Rates
Cost Allocation
Plans
Acquisition Audit
Services
Statutory
Financial
Reporting
Fund Audits
Quality Review of
Community
Facilities,
Lighting &
Landscaping, and
Assessment
Districts
Affiliations
California Society
of Municipal
Finance Officers
California Society
of CPAs
40 Years’
Experience
Robert Quaid
Quality Assurance/Technical Advisor
With his 40 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr. Quaid provides project management, procedural support, technical support, and quality review for Willdan’s District Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis.
Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance. He began his career with the public accounting firm formerly known as Haskins & Sells (currently known as “Deloitte & Touche”). His experience includes financial statement analyses, asset administration, computer conversion, and reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA.
Related Experience
Cities of Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For each of these cities, Mr. Quaid served in the role of task manager for the development of an OMB A-87 compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff on how to use the cost allocation model.
City of Rialto, CA — Comprehensive User Fee Study: Project manager for the Comprehensive User Fee Study to develop a user fee model in Microsoft Excel and update fees for Planning, Engineering, Building, Public Works, Recreation, Police, Fire, City Clerk, Treasurer and Finance.
City of Cathedral City, CA — Comprehensive User Fee Study: Mr. Quaid served as project manager for a user fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance.
Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients. Provided below are a few examples of clients for which services have been provided in the previous three years. ▪ City of Arcadia, CA
▪ City of Aurora, CO
▪ City of Cerritos, CA
▪ City of Claremont, CA
▪ City of Coalinga, CA
▪ City of DeSoto, TX
▪ City of El Cerrito, CA
▪ City of Fillmore, CA
▪ City of Galt, CA
▪ City of Hayward, CA
▪ City of Indian Wells, CA
▪ City of Missouri City, TX
▪ City of Monterey, CA
▪ City of Petaluma, CA
▪ City of Pomona, CA
▪ City of Richmond, CA
▪ City of Rocklin, CA
▪ City of St. Helena, CA
▪ County of San Benito, CA
▪ City of San Bruno, CA
▪ City of Salinas, CA
▪ City of Union City, CA
▪ City of Watsonville, CA
▪ City of Yucaipa, CA
Attachment A
Proposed Scope of Services
Willdan understands that the City of Covina’s objective is to review and update its master fee schedule to ensure fees accurately reflect costs of providing services, and so that adopted fees recover those costs to the best extent feasible.
We will review fee-related processes, services, and activities, develop a model and comprehensive cost-of-service analysis, then work with City Staff to develop recommendations for the City Council to adopt updated fees that recover those costs to the greatest extent possible, given local policy considerations. Where appropriate, we will also evaluate opportunities to create and implement new fees for services the City is providing for which no fee currently exists.
Our proposed work plan, described in detail by task, is provided below and addressed the objectives above. We explain how each task will be accomplished and identify associated meetings and deliverables. Since this Work Plan does not entail a Cost Allocation Plan (CAP), we will note where we will need to obtain data from the City’s existing CAP. We want to ensure our scope provides quality and clarity and is responsive to the City’s needs and specific local circumstances. We will work in concert with the City to adjust the scope as needed during the course of the study.
User Fee Study Work Plan
Task 1: Initial Document Request
Objective: Initial due diligence; obtain study-related data.
Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the on-site interviews described in Task 5. Also note, we will request data and information from the City’s current CAP, or potentially, the current CAP model, so that we have the necessary overhead factors to use in calculating the full cost of services for which fees are charged.
We will request information and documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already available) related specifically to programs and activities which have associated fees, and for which the City has this level of detail.
Since this project does not include the development of a new Cost Allocation Plan (CAP), we will also request information and data from the City’s current CAP so that we can include provision for the cost of overhead support services in the fee calculations.
Deliverables: Willdan: Submit information request to City.
City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). We will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.
Task 2: Compile Inventory of Current and Potential Fees Objective: Willdan will identify a schedule of fees and methodology for calculating the fees.
Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study.
Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required.
Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed and finalized during the kick-off call).
City: Review completed fee schedule with comments/revisions to be discussed during the kick-off meeting.
Task 3: Kick-off Conference Call / Refine Scope
Objective: Confirm goals and objectives for the User Fee Study. Identify and discuss policy considerations typically associated with a User Fee Study, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2).
Attachment A
Description: Verify our understanding of the City’s goals, the City’s cost-recovery policy for user fees, and to fill any gaps in data/information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.
During this call, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project’s schedule.
Meetings: One (1) project kick-off call to initiate the project, discuss data needs, and address policy objectives.
Deliverables: Willdan: 1) Revised project scope and schedule (if needed).
City: 1) Provide further data needs; and 2) determine/introduce City’s project manager.
Task 4: Develop User Fee Model/Incorporate Overheads
Objective: Develop and test model.
Description: This task involves the development of the model ultimately used to calculate the departmental fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5.
Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on salaries and benefits.
Most of the overhead information will need to be obtained from the City from its current CAP and will be incorporated directly into the user fee model. We will request clarification and/or additional data if necessary.
The model will incorporate the City’s CAP, to provide an allocation of administrative and overhead costs to fee related activities and departments providing services to customers, so that fees and billable rate schedules incorporate applicable costs.
Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations.
Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council.
Task 5: Staff Interviews and On-site Information Gathering Objective: Meet with City staff to complete Time Surveys and understand service delivery processes.
Description: In order to assist staff with the completion of the survey worksheets, we will schedule one and a half (1.5) days of meetings with staff; however, the number of meetings needed may vary depending on the number of staff and departments involved.
The Willdan Team will conduct interviews with supervisors/managers, as well as other staff, as deemed appropriate and/or necessary, from each department involved in the user fee study to determine the average time required by City staff to provide each of the services for which a fee is collected.
The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels. This will allow Willdan and City staff to conclude with a final meeting to review the draft full cost recovery fees and adjust any times as necessary once all information has been compiled and input into the fee model. We will schedule the interviews with staff to minimize any disruption to their normal workflow.
Meetings: One and a half (1.5) business days of meetings/staff interviews.
Deliverables: Willdan and City: Time surveys and draft full cost recovery fees.
Task 6: Data Analysis and Final User Fee Schedule
Objective: Incorporate information obtained from on-site surveys to fully develop model.
Description: We will update the model, based on information received during the on-site surveys, to generate a comprehensive user fee schedule. In addition, it is very common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting.
Attachment A
Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs (i.e., building fees) and suggest potential areas where fees could be collected where they are not currently.
We will calculate and present the full cost recovery level for fees, both current and projected under the new fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees.
Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee programs for compliance with Propositions 218 and
26. In developing the fee schedules for each division, we will make recommendations for new fees where appropriate, based on our experience with other cities. Some areas for new fees may be due to changes in law (legalized cannabis), or for activities that the City finds itself performing regularly, but for which no fee is collected.
Where possible, we will incorporate discussion of the City’s economic development policies, and where these may intersect with fee programs, for instance setting fees in a manner that encourages certain activities.
The user fee data analysis and model development may take three (3) to four (4) weeks with frequent correspondence with City staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity.
Meetings: One (1) meeting, as necessary, to gather additional input, complete analysis and finalize fee schedule.
Follow-up meetings may be conducted via web meetings if appropriate, to expedite the process.
Deliverables: Final user fee model for City Council presentation and discussion.
Task 7: Common Fees Comparison
Objective: Examine selected user fees charged by up to five (5) comparable cities in Los Angeles County or other jurisdictions that are close in proximity or similar to the City of Covina.
Description: We will access and use our knowledge of other jurisdictions to benchmark the City’s five (5) most common visible fees or highest yielding fees with comparable jurisdictions.
Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs. For this reason, Willdan often takes a selection of the City’s most commonly used and/or highest yielding fees or compares fee burdens for standardized projects (i.e. single-family home or 2,000 sq ft commercial project) between cities.
The survey will contain the following, a comparison of common or similar fees and charges used by the City and other jurisdictions; current and proposed fees and charges unique to the City of Covina; fees and charges used by other public entities not currently used in the City; and If possible, identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions.
Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.
Task 8: Prepare and Present Draft Report
Objective: Prepare draft report.
Description: This task involves the preparation of the draft report that discusses the study’s background, the methodologies utilized in the study, and the results and presentation to various stakeholder groups.
As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy-to-understand tables.
Individual fee summaries by department and a comprehensive fee schedule will be included.
Attachment A
The draft report will include the following:
▪ Key results and findings;
▪ Basic descriptions of each service;
▪ The full cost of each service at lowest reasonable activity level and current cost recovery levels; ▪ Costs broken down graphically into indirect and direct components, with a graphic display of the level of cost recovery;
▪ Fee recommendations with associate levels of cost recovery; ▪ Projections of potential fee revenue;
▪ Assessment of reasonableness of each City’s costs;
▪ Review of reasonableness of current consultant cost structure (for Building Division services); ▪ As appropriate, recommend alternative methodologies for building permit fee calculation; and ▪ Summary and recommendations.
The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.
Meetings: One (1) conference call with City staff, to present draft results address questions and receive feedback.
Deliverables: Willdan: Draft report for City review and comment.
City: Review of draft report, with comments and edits.
Task 9: Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review of draft report and fee model.
Description: The goal of this task is to conduct an in-depth review of the draft report and model, incorporate feedback and changes as a result of previous discussions, and arrive at an optimum fee structure.
Often through the course of an engagement, City staff will volunteer insightful likes and dislikes regarding the existing fee structure. We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of:
▪ Understandability;
▪ Fairness to applicants;
▪ Ease of calculation;
▪ Appropriate levels of cost recovery; and
▪ Full cost recovery hourly rates.
When adjusting fee recovery levels, we believe it is important to address these concerns.
Following one (1) round of comments from City staff on the draft report and feedback from City staff, we will prepare the final report for presentation to the City Council.
Meetings: One (1) online demonstration (WebEx) to review the report and model, with any revisions.
Deliverables: Draft report, revised draft /final report.
Task 10: Prepare and Present Final Report/Instruct Staff on Model Objective: Prepare and present final report to City Council. Instruct staff on the operation and use of the model for future modifications.
Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation.
Meetings: One (1) meeting with the City Council to present the results, adopt the updated fee schedule, and complete the first reading of the ordinance to update the City’s Municipal Code. We will also provide staff training on the operation and use of the model on the same day, during regular business hours.
Deliverables: Provide one (1) electronic PDF file copy of the final report and models; and, if requested, provide one (1) bound copy, and one (1) unbound copy to the City. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD.
Attachment A
City Staff Support
To complete our tasks, we will need the cooperation of City Staff. We suggest that the City of Covina assign a key individual to represent the City as the project manager who can function as our primary contact. We anticipate that the City’s project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy issues.
Willdan will endeavor to minimize the impact on City Staff in the completion of this project. We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City’s project manager to steer the project back on track. We will keep the City’s project manager informed of data or feedback we need to keep the project on schedule.
Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.
Project Schedule
The project timeline can only be met with the cooperation of City Staff. Delays in responding to our requests for data and review will result in corresponding delays to the project timeline. If that is the case, we will notify the City immediately of the possible impact.
Attachment A
Cost Proposal
Willdan Financial Services (“Willdan”) proposes a total not-to-exceed fixed fee of $27,410 for the User Fee Study engagement.
Notes
▪ The cost of preparing the User Fee Study can be included in the resulting new fee schedule(s). Therefore, over time, the City can recover the initial outlay of funds that was required to complete this study. ▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ City shall reimburse Willdan for any costs Willdan incurs, 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 project. Reimbursement shall be at Willdan 's rates in effect at the time of such response.
Hourly Fee Schedule
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 listed below.
Willdan Hourly Rate Schedule
Position Team Member Hourly Rate
Group Manager Chris Fisher $250
Managing Principal $240
Principal Consultant
Mike Medve,
Tony Thrasher, &
Bob Quaid
$210
Senior Project Manager $185
Project Manager $165
Senior Project Analyst Priti Patel $135
Senior Analyst $125
Analyst II $110
Analyst I $100
Attachment A
27368 Via Industria, Suite 200
Temecula, CA 92590-4856
951.587.3500 | 800.755.6864 | Fax: 951.587.3510
www.willdan.com
Attachment A
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: February 20, 2024
Title: Approve the Legal Services Agreement with Manning & Kass, Ellrod, Ramirez, Trester, LLP
Recommendation: Approve the Legal Services Agreement with Manning & Kass, Ellrod, Ramirez, Trester, LLP and authorize the City Manager to execute the Agreement on behalf of the City.
EXECUTIVE SUMMARY:
Manning & Kass, Ellrod, Ramirez, Trester, LLP (MKERT) has provided legal services for the City of Covina since at least 2015. MKERT has represented and successfully defended the City against several sensitive and high-profile use-of-force cases and other liability claims. The City has a need to continue this relationship and desires to engage in a new contract to establish MKERT’s recent rate increases which are reasonable and reflect current market rates for legal services.
It is recommended that the City Council approve the Agreement for Legal Services (Exhibit A) to ensure continuity in defending the City against claims for liability.
BACKGROUND:
Established in 1994, MKERT has over 160 attorneys and support staff who effectively provide legal services to the City. MKERT uses a “team concept” in defending the City’s interests which includes working closely with the City Manager’s Office, department heads, and Risk Management to reduce liability for Covina. MKERT has built a relationship with the City for approximately 10 years. Their familiarity with operations makes them especially effective in representing Covina.
DISCUSSION:
The Agreement with MKERT, which includes the newly established hourly rates is attached as Exhibit A.
FISCAL IMPACT:
Legal fees are currently budgeted under the Risk Management budget and should suffice to provide for MKERT’s rate increase. Any additional funding will be included in the mid-year budget request.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
15TH FLOOR AT 801 TOWER
801 SOUTH FIGUEROA STREET
LOS ANGELES, CALIFORNIA 90017-3012
Tel: (213) 624-6900
Fax: (213) 624-6999
ManningKass.com
STEVEN D. MANNING
DENNIS B. KASS
ANTHONY J. ELLROD
EUGENE P. RAMIREZ
FREDRIC W. TRESTER
LAWRENCE D. ESTEN
MILDRED K. O'LINN *
ALFRED M. DE LA CRUZ
BRIAN T. MOSS *
JEFFREY M. LENKOV
MARGUERITE L. JONAK *
MICHAEL L. SMITH
LOUIS W. PAPPAS
EUGENE J. EGAN
CLIFFORD A. CLANCEY
R. ADAM ELLISON
JASON J. MOLNAR *
DAVID V. ROTH
JEANETTE L. DIXON
DAVID R. REEDER*
ANTHONY CANNIZZO
RICHARD G. GARCIA
KATHLEEN A. HUNT *
STEVEN J. RENICK
D. HIEP TRUONG
JANET D. JOHN *
SHARON S. JEFFREY
KENNETH S. KAWABATA
LALO GARCIA
JONATHAN J. LABRUM *
KAREN LIAO
MATTHEW E. KEARL
GRETHCHEN COLLIN
LYNN CARPENTER *
ROBERT E. MURPHY *
JASON J. DOSHI
EMILY EDWARDS
DAVID R.RUIZ
CRAIG SMITH
JONATHAN HACK*
EMILY ELLSE
SEAN DOWSING
ANDREA KORNBLAU
CHRISTINE LA VORGNA
DANIEL B. HERBERT *
MARK A. HAGOPIAN
DONALD R. DAY *
JOHN M. HOCHHAUSLER
CHRISTOPHER DATOMI
ROLAND TONG
STEVEN W. DELATEUR
CHRISTOPHER KANJO
WILLIAM KELSBERG
JOSEPH ESCAREZ
COURTNEY NAKATANI
DEANN RIVARD
DANIEL SULLIVAN
NATALYA VASYUK
MARK WILSON
KELSEY NICOLAISEN
KIRSTEN BROWN
TIFFANY HENDERSON
SALLY FREEMAN*
LIZETTE ALVARADO
ELLEN BURACH-ZION
EVGENIA JANSEN
ANTOINETTE MARINO*
GLENN JOHNSTON
CHRISTINA TAPIA
S. CHRISTIAN ANDERSON
MARK SENIOR
MIRIAM ORTIZ
KRISTINE RIZZO
MICHELLE J. MARTIN
OLESYA MIKHAYLOVA
ROYA FOHRER
SOPHIE O. LAFRANCHI
KAYLEIGH ANDERSEN
LINNA LOANGKOTE
DAVID ALPERN
LISA IVERSEN
NICOLE JONES
LISA MARTINELLI
WILLIAM NELSON
NICHOLE SANTIAGO
VIJAY PATEL
TWIGGY ALVAREZ
NATALIE ORTIZ
YURY A. KOLESNIKOV
JENNA PAGE
NATHALIE C. HACKETT
RICHARD MCKIE
JOSEPH GORDON
KIRK J. EDSON
JOANA COLOMA
RICHARD MOJICA
LOAN DAO
CHANDRA CARR
JAMES A. HARRIS
GABRIELLA PEDONE
TIFFANY SOHRABIAN
JESSICA BECERRA
NATALIE PORTONE
ANDREW RAZMA
DANIEL KNIERIM
HANNAH ELLENHORN
LACEY SIPSEY
TANYA PROUTY
ADAM AFSAR
ANNA KARTOSHKINA
KRISTINA ROSS
AMANDA WILBUR
TANNER LONDON
FIONA MILLER
CALVIN PARK
MAYA SORENSEN
PETYA HRABAR
PAMELA ACEBO
ELLARIE HERNANDEZ
LINDSAY LE
VICTORIA TREPANY
DORIS YOUMARA
VASUDHA PUROHIT
ELIKA ZIAEI
ISHA GULATI
DANIEL VIZCARRONDO
RIANE BRIONES
JALESSA ALMONACY
BEAR ALLEN-BLAINE
HALLEY THIEL
ALISON DEYOUNG
VICTORIA LEVIN
ADAM O’SHEA
BRITTANY MCKINLEY
JERRIE WEISS
ELLE REED
OF COUNSEL
JOHN D. MARINO*
ARI MARKOW
TRISHA NEWMAN
MICHAEL A. WEISMANTEL
MARISA ZARATE
CAROL ROHR
CHARLES MOLLIS
GEOFFREY PLOWDEN
MICHAEL BRAVE
* Admitted in Multiple
Jurisdiction
† Admitted to Practice Law in
Arizona only
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February 15, 2024
RETAINER AGREEMENT
Manning & Kass, Ellrod, Ramirez, Trester, LLP (“Firm) is pleased to have the opportunity to represent you with regard to the legal needs mentioned below. We look forward to serving you effectively, economically and professionally.
The purpose of this Agreement is to explain the nature and limitations of our representation, as well as obtain your consent to our fee arrangements which are set forth below. We apologize for the formality of this Agreement, but we believe it is to everyone’s benefit for you to understand fully the terms of our representation at the outset. In addition, California Business and Professions Code § 6148 imposes certain obligations upon parties to a legal service contract to memorialize their understanding in writing.
1. Conditions. This Agreement will not take effect, and we will have no obligation to provide any legal services, until we have received a fully executed copy of this Agreement with all required signatures.
2. Scope of Engagement. Specifically, this Firm in compliance with all applicable laws, agrees to perform legal services on an as needed basis, as determined by the City Attorney or designee of the City Attorney, on matters as agreed to and accepted by the Firm, as follows: legal services related to civil liability, including investigation, advisory services, written, legal opinions and representation before administrative and judicial bodies. The Firm is authorized to perform the services hereunder only in those cases, or other matters, that are or have been assigned to the Firm by the City Attorney or designee of the City Attorney, and such related actions as are agreed to on a case by case basis. Representation by the Firm will continue under the terms of this Retainer Agreement up to and through trial, settlement, arbitration, dismissal, judgment or any other final resolution of each case. The scope of our engagement will not include issues pertaining to any other matter, post-judgment motions, appeals, or any other post-judgment issues unless approved by the Firm.
ATTACHMENT A
RETAINER AGREEMENT
City of Covina
February 15, 2024
If a change of circumstances in the matter calls for a new written retainer, or if we, in our sole discretion believe a new written retainer is appropriate for any new matter, then a new written retainer, signed by a partner in our Firm will be required before we will proceed with the case. In that situation, we will advise you the necessity of a new retainer and we will incur no legal duty to render any legal services, until and unless we receive the separate retainer, signed by you and all the terms and conditions of that retainer have been met. The terms of such a retainer will be at our sole discretion. A change of circumstances may include the inception of mediation, or arbitration, the commencement of litigation, if we were retained for a matter in which litigation had not yet commenced, or any other event that we believe in our sole discretion calls for a new retainer.
In addition to the foregoing, after the normal conclusion of services if the Firm or any member is ever called upon to perform additional services, including producing documents or being deposed about the matters that were the subject of the representation, you agree to pay the Firm the associated costs as well as the thenapplicable hourly rates for the applicable member’s time, including preparation time.
3. Legal Fees, Billing Policies and Procedures. Our charges for legal services are based on the hourly rates of our professional staff. Professional time is billed in increments of 1/10th of an hour. Our rates for this matter are $285.00 per hour for partners and income partners; $235.00 per hour for associates and $150.00 per hour for law clerks and paralegals. Should the matter require the specialized services of our Appellate attorneys, the rates for such services are $350.00 per hour for partners and income partners and $300.00 per hour for associates.
We review and adjust these billing rates periodically, and the applicable hourly rates are those in effect at the time the services are performed. We will of course, notify you of any changes in advance.
Statements for our services rendered and costs advanced will be due upon receipt. We expect our clients to keep their accounts current at all times.
If you dispute the costs or fees billed on any invoice or any portion of an invoice you must, within 15 days of receipt of that invoice, advise us in writing, identifying each entry you dispute and the nature of that dispute. If you do not do so within 15 days we will assume that you do not dispute the costs and fees on that invoice and you expressly waive any right to contest that invoice or any portion of that invoice at a later time.
If a billing statement is not paid when due, interest will be charged on the principal balance (fees, costs, and disbursements) shown on the statement. Interest will be calculated by multiplying the unpaid balance by the periodic rate of .833% per month (TEN PERCENT [10%] ANNUAL PERCENTAGE RATE). The unpaid balance will bear interest until paid.
4. Costs and Expenses. In the course of this representation, we may incur certain costs and expenses on your behalf. We will obtain your consent before incurring any cost in excess of $500. Bills we receive will be forwarded to you for direct payment to the service provider. The costs and expenses that we will bill you for include, but are not limited to, process servers' fees, fees fixed by law or assessed by courts or other
RETAINER AGREEMENT
City of Covina
February 15, 2024
agencies, court reporters' fees, long distance telephone calls, messenger and other delivery fees, postage, parking, investigation expenses, consultants' fees, computer research services, expert witness fees, telecopies, mileage at the IRS approved rate, inoffice photocopying at $ .25 per page, and other similar items. These charges will appear on your monthly statement and, once again, we expect our clients to keep their accounts current.
5. General Responsibilities of Attorney and Client. We will provide services of the type described above, and we will keep you informed of the progress and respond to your inquiries.
You will provide us with such factual information and materials as we require to perform the foregoing services, and you will make such business or technical decisions and determinations as are appropriate. It is understood that you are not relying on us for business, investment or accounting decisions or to investigate the character or credit of persons with whom you may be dealing.
The Firm routinely uses internet electronic mail to communicate with its clients.
While electronic mail is a generally accepted form of communication in the business and legal communities and is considered to be confidential and reliable, using it creates some risk that such communications may be intercepted by, or otherwise disclosed to, third parties. Client assumes all risks associated with using internet electronic mail for communications between this Firm and Client. If Client considers communications to be of such a nature that this risk is unacceptable, Client must advise Firm in writing and request not to communicate by electronic mail. In such cases, Client shall be responsible for all additional costs associated with using alternative means of communication.
6. Disclaimer of Result Guarantee. This fee agreement is not contingent upon the ultimate outcome of your legal needs. Sometimes, the final result is not in accordance with a client's hopes and expectations. Nothing in this agreement and nothing in our statements to you will be construed as a promise or guarantee about the outcome of your legal matter. We make no such promises or guarantees. Our comments about the outcome of your matter, if any, are mere expressions of opinion only.
7. Discharge and Withdrawal. You may discharge us at any time for any reason. In addition, it is understood that we may terminate our legal services and withdraw from this engagement with your consent or for good cause. Good cause includes any breach of this agreement, failure to pay our fees and other charges promptly, refusal to cooperate with us or to follow our advice on a material matter or any other fact or circumstance that would render our continuing representation unlawful or unethical.
In the event our engagement is terminated for any reason, you will continue to be obligated for our services and other charges incurred before the termination date. If we are required to take legal action to recover our fees for professional services or expenses incurred, you will be responsible for all court costs and attorney’s fees incurred.
After the conclusion of our services which are the subject of this Agreement, whether by discharge, withdrawal, normal conclusion of this matter, or otherwise, if the Firm or any attorney of the Firm is ever called upon to perform additional services,
RETAINER AGREEMENT
City of Covina
February 15, 2024
including giving testimony in any deposition or court proceeding, about the subject matter of this representation, you agree to pay the Firm the hourly rates set forth herein for the applicable attorney’s time, including preparation time.
No legal action, including the arbitration proceedings described in paragraph 10 may be brought by you for any cause of action against Manning & Kass, Ellrod, Ramirez, Trester LLP or any agent or employee of Manning & Kass, Ellrod, Ramirez, Trester LLP, unless you have complied with all the terms and provisions of this Agreement.
8. Retention of Records. You agree that the Firm will retain all documents relevant to the legal services provided to you, including all documents you have furnished to us, for a period of five years from the date our services have concluded (or if a minor is involved, until the minor reaches majority, if longer). After that five year period has expired you agree that the file and all retained documents may be destroyed unless you contact our office at least ninety days prior to the expiration of that five year period and arrange to pick up the file.
9. Insurance Disclosure. This firm does maintain errors and omissions insurance coverage applicable to the services to be rendered.
10. Arbitration. In any dispute arising out of, or related to, a claimed breach of this Agreement, the professional services rendered by us, or your failure to pay fees for professional services and other expenses specified, or any other disagreement of any nature, type or description regardless of the facts or the legal theories which may be involved, such dispute shall be resolved by binding arbitration by an arbitrator mutually agreed upon by the parties. In the event that the parties cannot agree, each party shall choose an arbitrator, and those two arbitrators shall then select a single neutral arbitrator who will hear the dispute. Discovery for this binding arbitration shall be limited to that which is allowed under the California Municipal Court statutes, including all rights and remedies thereunder. The arbitration shall take place in the County of Los Angeles unless otherwise agreed upon in writing. Except as mentioned in Paragraph 8 above, each party shall bear its own attorney fees and costs.
11. Survival. In the event that any provision of this Agreement is deemed to be illegal or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which shall remain in full force and effect.
12. Received by Client. Client’s signature acknowledges receipt of this Agreement and assent to its terms. Please review this Agreement carefully and, after signing it, return the document to the Firm.
13. Entire Agreement. This writing constitutes the entire agreement between the parties concerning the engagement described in Paragraph 2. It supersedes all prior agreements and understandings, written or oral, and no representations by the parties, written or oral, are binding unless expressly stated in this Retainer Agreement. The Retainer Agreement may be modified only in a writing signed by all the parties to this Retainer Agreement.
In the event that the Firm provides additional legal services to you outside the scope of the engagement described in Paragraph 2 without the parties entering into a separate written agreement, the terms of that representation will be governed by the
RETAINER AGREEMENT
City of Covina
February 15, 2024
provisions of this Agreement to the extent applicable and not inconsistent with such representation.
We are pleased that you have selected Manning & Kass, Ellrod, Ramirez, Trester LLP as your counsel in this matter. Your signature below confirms that you have read this Agreement and agree to be bound by its terms. Further, we will assume you assent to the terms of this Agreement, whether signed or not, if you accept our legal services without objecting to any of the terms of this Agreement in writing.
CITY OF COVINA
Dated: ________________, 2024 By:_________________________ Signature
___________________________
Print Name
___________________________
Print Title
MANNING & KASS
ELLROD, RAMIREZ, TRESTER LLP
Dated: ________________, 2024 By: _________________________ Steven D. Manning
Managing Partner
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 12
Meeting: February 20, 2024
Title: Resolution CC 2024-08 to Amend the Fiscal Year 2023/2024 Capital Improvement Program to Increase Funding for the Covina Skate Park Project in the Amount of $200,000 Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director of Public Works/City Engineer Recommendation: 1. Amend the Contract for the Covina Skate Park Project with Spohn Ranch, Inc. in the amount of $195,000 for a new not-to-exceed amount of $1,631,350;
2. Amend the Professional Services Agreement with Siterep Construction Services, Inc for Inspection Services in the amount of $5,000 for a new, not-to-exceed amount of $55,160; and
3. Adopt Resolution CC 2024-08 to appropriate $200,000 from available Measure W – Municipal Fund Balance to the Covina Skate Park Project (Account No. 2510-3400-55200- P2207) to provide the additional funding necessary to complete the Covina Skate Park Project.
EXECUTIVE SUMMARY:
On August 1, 2023, the City Council approved a contract with Spohn Ranch Inc. for the construction of a 10,000 square-foot skate park and appurtenances at Wingate Park along Grand Avenue. During the course of construction, an opportunity was identified to enhance an area adjacent to the skate park facility with a storm water capture installation. Such installation would help to capture and treat stormwater, which would then be used to recharge local groundwater sources. As proposed, the Council will consider authorizing a project change order to authorize the installation and utilize local funds from the Safe, Clean Water Program (“Measure W”) that are specifically geared towards this purpose.
DISCUSSION:
During project construction, the need for grading adjustments, not included in the original scope of work, was identified by City staff. During the course of construction activities, the adjustment of some proposed elevations on the finished floor of the skate park bowl was needed to enable additional stormwater runoff to make its way to the street along Grand Avenue. However, City staff decided that instead of sending stormwater runoff to the street, a best practice would be to implement a system to capture the storm water runoff within the park area as required by the Safe, Clean Water Program (Measure W). Therefore, City staff requested a change order from the construction contractor for the installation of a biofiltration mechanism to capture and filter the stormwater.
The current contract with Spohn Ranch Inc. allows the City to increase any item or portion of work described in the contract document by no more that 25% of the total contract amount, or $361,000. With regards to the Covina Skate Park Project, the proposed additional work and unit price cost as outlined in Attachment “A” amounts to $195,000 plus $5,000 in inspection costs related to the Biofiltration mechanism and does not exceed the 25% threshold. Thus, there is no requirement or added value in bidding the new scope of work. The adoption of Resolution CC 2024-08 will allow for the additional $200,000 to be charged to Measure W – Municipal funding, which is dedicated to funding stormwater capture projects and programs.
The contract for this project will be set as follows:
Contract Award Amount - (Spohn Ranch, Inc.)
Initial Approved Contingency Allowance
Initial Contract “Not to Exceed” Amount Approved by City Council $1,249,000
$187,350
$1,436,350
New Appropriation for CO #1 – (Spohn Ranch, Inc.)
New Contract “Not to Exceed” Amount – (Spohn Ranch, Inc.) New Appropriation for Additional Inspection Services (Siterep) $195,000
$1,631,350
$5,000
Total Project Construction Cost $1,636,350
FISCAL IMPACT:
The total project cost for the Covina Skate Park Project, as approved by the City Council on August 1, 2023, is $1,486,510 including construction costs, contingency allowance, and construction management. The adoption of Resolution CC 2024-08 will appropriate an additional $200,000 from the Measure W – Municipal Fund Balance (Account No. 2510-3400-55200-P2207) and provide the necessary funding to complete the Covina Skate Park Project. The amended total project construction costs will amount to $1,636,350.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2024-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2023/2024 CAPITAL
IMPROVEMENT PROGRAM BUDGET AND INCREASE FUNDING FOR
THE COVINA SKATE PARK PROJECT FROM AVAILABLE MEASURE
W – MUNICIPAL FUNDS IN THE AMOUNT OF $200,000
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the Fiscal Year 2024 Operating Budget & Capital Improvement Plan (CIP) was approved on May 16, 2023; and
WHEREAS, the approved Operating Budget and Capital Improvement Plan (CIP) is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and WHEREAS, the City of Covina wishes to amend the 2023/2024 Capital Improvement Program Budget to establish an Expenditure Budget in the Measure W Fund for use towards the Covina Skate Park Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the Fiscal Year 2023/2024 Capital Improvement Program Budget for the Covina Skate Park Project.
SECTION 2. Establish an expenditure account and appropriate $200,000 from available Measure W Fund Balance for use in the Covina Skate Park Project account number:
Account No. Account Description Amount
($)
Increase/Decrease
2510-3400-
55200-P2207
Measure W-Park FacilitiesImprovements Not
Bldgs/Structures-Covina Skate
Park Project
$200,000 Increase
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 20th day of February, 2024.
City of Covina, California
BY:
WALTER ALLEN, III, Mayor
Resolution CC 2024-08 Page 2 of 2
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-08 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 20th day of February, 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
_________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
ATTACHMENT B
February 14, 2024
City of Covina
Rafael Fajardo
City Engineer
125 East College St.
Covina, CA 91723
RE: Wingate Skate Park Inspection Services Change Order Request #1 Dear Mr. Fajardo,
As you are aware, the drainage scope for the Wingate Skate Park was added after the project was awarded and the time it took to construct added time to the project. Please see below cost impact due to the added drainage scope.
Total CO#1: $5,000.00
Please feel free to contact me if you have any questions regarding this change order request.
Sincerely,
Andre Ortiz
Vice-President
Siterep Construction Services, Inc.
ATTACHMENT C
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 13
Meeting: February 20, 2024
Title: Covina Police Department Locker Room Renovation Project – Award of Contract for McMurray Stern Inc. to Furnish and Install New Lockers at the Police Department Women and Men Locker Rooms
Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director of Public Works/City Engineer Recommendation: Award a contract for the Covina Police Department Locker Room Renovation Project to McMurray Stern Inc. as the lowest responsible bidder to furnish and install new lockers in the men and women locker rooms in a not-to-exceed amount of $321,974.11 and authorize the City Manager to execute the contract.
EXECUTIVE SUMMARY:
The Department of Public Works continually reviews operational practices for compliance with Covina Municipal Code (CMC) and other applicable rules and regulations, including the review of purchasing limits and competitive procurement processes. After reviewing several vendor agreements with other public agencies, the Department identified an opportunity to utilize a competitively bid agreement made available through the US Communities/Omnia’s procurement “piggyback” opportunity to furnish and install new lockers in the men and women locker rooms situated within the Police Department’s headquarters. As proposed, the City will piggyback onto the existing agreement and realize cost savings in the procurement of said items.
CMC Section 2.20.210 - Joint Purchasing Agreements with other Governmental Entities provides the City Manager with the flexibility to waive the formal bid procedure prescribed in CMC Sections 2.20.100 through
2.20.160 when it is to the City’s advantage for the following instances:
A. Supplies, vehicles, equipment, or services can be purchased in cooperation with other governmental entities or associations; or
B. Supplies, vehicles, equipment, or services can be purchased from a vendor offering the same prices, terms, and conditions as in a previous award from the City or another governmental entity either by competitive bid or through a negotiated process.
As proposed, the City has agreed to purchase the new Police Department lockers, including installation, under Sourcewell Contract #010920-SPC, which was a contract negotiated by the State Department of General Services. The terms of the State contract make the negotiated pricing available to all public agencies from one of the seven contracted service providers located within the State, including McMurray Stern Inc. (Santa Fe Springs, CA). In accordance with the City’s Purchasing Policy, the City Council may use a competitive bid conducted by another public agency to purchase goods and services. Also known as “piggybacking” onto another contract, this process allows the City to consider the same competitively bid price without having to spend a significant amount of staff time to formally bid and purchase the same goods or services. As such, staff recommends that the City Council authorize the City Manager to execute a “Piggyback Contract Authorization” letter (Attachment C) and issue a purchase order to McMurray Stern Inc. in an amount not-to-exceed $321,974.11.
DISCUSSION:
As part of the City’s Fiscal Year 2023-2024 Capital Improvement Program, the City Council approved a project entitled “Police Department Locker Room Renovation Project,” which consists of the renovation of Police Department Locker Rooms located on the first floor and basement levels.
Separate bids were also solicited for the renovation of the men and women locker rooms, which is necessary prior to the installation of the new lockers. BBS Construction, Inc. was the successful bidder for the renovation project and construction will commence in April 2024. McMurray Stern, Inc. will furnish and install the new lockers once construction is completed.
FISCAL IMPACT:
The costs for furnishing and installing new lockers in the Police Department’s men and women locker rooms is included in the overall Police Department Locker Room Renovation Project capital improvement budget. Project funding source is noted below:
ACCOUNT NUMBER FUND AMOUNT
7020-6100-55100-F2301 Building Maintenance $321,974.11
TOTAL $321,974.11
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
"PIGGYBACK" CONTRACT AUTHORIZATION
The parties to this "PIGGYBACK" CONTRACT do mutually agree to the use of the Contract listed below:
Contract Number: Sourcewell Contract #010920-SPC
Contract Name: PD Locker Room Purchase and Installation Description of Services: Furnish and Installation of Locker Rooms Spacesaver Corporation authorizes the City of Covina to piggyback on the above referenced contract with McMurray Stern, Inc. Spacesaver Corporation shall provide the following documents to City of Covina:
1. Original Contract
2. Award Letter
3. Renewal Amendment (If applicable)
Original Contracting Entity:
Spacesaver Corporation
1450 Janesville Avenue
Fort Atkinson, WI 53538
Contractor shall honor and provide the City of Covina with all pricing, terms and conditions and scope of services as those listed in the above referenced contract originally entered into with Spacesaver Corporation. The parties to this Contract are the City of Covina and the following named Contractor:
Contractor Contractor Primary Contact
McMurray Stern, Inc. Name: Brent Sheffield
15511 Carmenita Road Phone:562-623-3000
Santa Fe Springs, CA 90670 Email: [email protected] The effective date of the contract is February 20, 2024 and terminates on June 30, 2025. In no event shall the contract be extended beyond June 30, 2025. ___________________ __________ ___________________ __________ Brent Sheffield Date Christopher Marcarello Date
Design Consultant City Manager
ATTACHMENT A
C I T Y O F C O V I N A
125 East College Street Covina, California 91723-2199 www.covinaca.gov
ATTACHMENT B
CITY OF COVINA AGREEMENT FOR
MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated February 20, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and McMurray Stern, Inc., a California corporation (Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to furnish and install full length lockers as a part of the PD Locker Room Renovation Project.
B. Contractor represents that it is fully qualified to perform such work by virtue of its experience and the training, education and expertise of its principals and employees.
C. City desires to retain Contractor and Contractor desires to serve City to perform this work in accordance with the terms and conditions of this Agreement.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2024, unless sooner terminated as provided in Section 14 of this Agreement.
2. Compensation.
A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed Three Hundred and Twenty-One Thousand Nine Hundred and Seventy-Four Dollars and Eleven Cents ($321,974.11) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.
B. Expenses. The amount set forth in paragraph A shall include reimbursement for all actual and necessary expenditures reasonably incurred in the performance of this Agreement.
C. Additional Services. City shall not allow any claims for additional services performed by Contractor, unless the City Council and the Contractor Representative authorize the additional services in writing prior to Contractor’s performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council shall be compensated at the rates set forth in Exhibit A (Scope of Work and Payment Schedule), or, if not specified, at a rate mutually agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.
3. Contractor’s Work.
A. Scope of Services. Contractor shall construct and install all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule) and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed in writing by the City. City may request, in writing, changes in the Scope of Work to be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.
B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Contractor Representative shall be Brent Sheffield, Design Consultant (the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Work under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.
C. Time for Performance. Contractor shall commence the Work on the Effective Date and shall perform all Work by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.
D. Standard of Performance. Contractor shall perform all Work under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.
E. Personnel. Contractor has, or will secure at its own expense, all personnel required to perform the Work required under this Agreement. All of the Work required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Work. Contractor shall determine the means, methods, and details by which Contractor’s personnel will perform the Work under this Agreement.
Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work and compliance with the customary professional standards.
F. Compliance with Laws. The Contractor shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.
G. Permits and Licenses. Contractor shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.
H. City Approval. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of City or its authorized representatives, and the quality of the workmanship shall be guaranteed for one year from date of acceptance.
I. Contractor's Independent Investigation. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
J. Contractor's Affidavit. After the completion of the Work contemplated by this Agreement, Contractor shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been filed under the provisions of the laws of the State of California.
K. Utility Location. City acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215.
L. Regional Notification Centers. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4215.
M. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.
N. Warranty. Contractor shall guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by City against any defective work or labor done or defective materials furnished.
O. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30)
calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.
4. Method of Payment.
A. Invoices. Contractor shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount due. If City disputes any of Contractor's fees, it shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Contractor. For all reimbursements authorized by this Agreement, Contractor shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.
C. Audit of Records. Contractor shall make all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this agreement available during Contractor’s regular working hours to City for review and audit by City.
D. Waiver of Claims. On or before making final request for payment under Paragraph B, above, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment.
5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor.
6. Independent Contractor.
A. Contractor is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall have no power to incur any
debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees. Contractor shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Contractor and Contractor’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Contractor’s personnel. Contractor’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Contractor’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Contractor shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Contractor’s personnel require to perform any of the services required by this Agreement. Contractor shall perform the services off of City premises at locations of Contractor’s choice, except as otherwise may from time to time be necessary in order for Contractor’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor’s performance of the Work under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.
City may make a computer available to Contractor from time to time for Contractor’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.
B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.
C. Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section
6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to
Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
7. PERS Compliance and Indemnification.
A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.
Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.
B. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Contractor or provided for performance of this Agreement are deemed confidential. Contractor shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Contractor shall return all data to City upon the expiration or termination of this Agreement. Contractor’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.
9. Conflicts of Interest. Contractor and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Contractor’s Work under this Agreement, including the Political Reform Act (Gov.
Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Contractor may perform similar services for other clients, but Contractor and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Contractor shall incorporate a clause substantially similar to this Section 9 into any subcontract that Contractor executes in connection with the performance of this Agreement.
10. Indemnification.
A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.
City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2). 3) Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 10 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.
B. Workers’ Compensation Acts not Limiting. Contractor’s indemnifications and obligations under this Section 10, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.
C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.
D. Survival of Terms. Contractor’s indemnifications and obligations under this Section 10 shall survive the expiration or termination of this Agreement.
11. Insurance.
A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Four Million Dollars ($4,000,000) per project or location.
If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor shall provide an executed declaration that it has no employees.
B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self-insurance shall not be considered to comply with the insurance requirements under this Section 11.
C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming the City, its officers, employees, agents and volunteers as additional insureds.
D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.
E. Contractor’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Contractor and Contractor’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against City.
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be approved by City. At City’s option, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.
G. Cancellations or Modifications to Coverage. Contractor shall not cancel, reduce or otherwise modify the insurance policies required by this Section 11 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 11 is canceled or reduced in coverage or limits, Contractor shall, within two (2) business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.
H. City Remedy for Noncompliance. If Contractor does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Contractor’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Contractor’s expense, the premium thereon. Contractor shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.
I. Evidence of Insurance. Prior to the performance of Work under this Agreement, Contractor shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager. Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.
J. Indemnity Requirements not Limiting. Procurement of insurance by Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 10 of this Agreement.
K. Subcontractor Insurance Requirements. Contractor shall require each of its subcontractors that perform Work under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 11.
12. Mutual Cooperation.
A. City’s Cooperation. City shall provide Contractor with all pertinent data, documents and other requested information as is reasonably available for Contractor’s proper performance of the Work required under this Agreement.
B. Contractor’s Cooperation. In the event any claim or action is brought against the City relating to Contractor’s performance or Work rendered under this Agreement, Contractor shall render any reasonable assistance that City requires.
13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.
14. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City may terminate or suspend this Agreement at any time, at will, for any reason or no reason, after giving written notice to Contractor at least seven (7) calendar days before the termination or suspension is to be effective. Contractor may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least sixty (60) calendar days before the termination is to be effective.
B. Obligations upon Termination. Contractor shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Work required by this Agreement.
15. Force Majeure. Contractor shall not be liable for any failure to perform its obligations under this Agreement if Contractor presents acceptable evidence, in City’s sole judgment, that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Contractor’s reasonable control and not due to any act by Contractor.
16. Notices. Any notices, consents, requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service during Contractor’s and City's regular business hours, or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to Contractor:
Attn: Brent Sheffield
City of Covina McMurray Stern, Inc
125 E. College Street 15511 Carmenita Road
Covina, California 91723 Santa Fe Springs, CA 90670
17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.
Contractor will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.
18. Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.
19. No Third-Party Beneficiaries Intended. Except as otherwise provided in Section 10, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.
20. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.
21. Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.
22. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement.
23. Amendment of Agreement. This Agreement may be amended only by a writing signed by both parties. If the City Manager has entered into this Agreement on behalf of the City, the City Manager may approve an amendment to this Agreement and additional payment up to the amount of his contract authority. If this Agreement was originally approved by the City Council, then any amendments shall be approved by the City Council, except that the City Manager may approve amendments extending the time for performance, modifying the scope of work without any change to the maximum payment, approving a change in name of the Contractor, or terminating the Agreement.
24. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
25. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
26. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.
28. Attorneys’ Fees. In any litigation or other proceeding by which on party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgment.
29. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims.
All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to
Article 1.5 and Section 9204, as applicable, pursuant to the definition of "claim" as individually defined therein.
30. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
31. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City:
City of Covina,
a California municipal corporation
By:
Name: Chris Marcarello
Title: City Manager
ATTEST:
Contractor:
By:
Name: Fabian Velez
Title: Chief Deputy City Clerk
McMurray Stern, Inc.
a California Corporation
By:
Name:
Title:
By:
Name:
Title:
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents
authorize only one person to sign this
Agreement on behalf of the corporation.)
EXHIBIT A
SCOPE OF WORK
EXHIBIT B
CALIFORNIA LABOR CODE COMPLIANCE
(Labor Code §§ 1720 et seq., 1813, 1860, 1861, 3700)
If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code, then:
1. This Agreement is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”) and Contractor agrees to be bound by all the provisions thereof as though set forth in full herein.
2. Contractor shall be registered with the Department of Industrial Relations (“DIR”) in accordance with California Labor Code Section 1725.5 and has provided proof of registration to City prior to the Effective Date of this Agreement.
3. Contractor shall comply with the provisions of California Labor Code Sections 1771, 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The applicable prevailing wage determination(s) may be obtained at (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm), are on file with City, and are available to any interested party upon request. Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under this Agreement by Contractor or by any subcontractor.
4. Pursuant to California Labor Code Section 1771.4, Contractor’s services are subject to compliance monitoring and enforcement by the Department of Industrial Relations.
Contractor shall post job site notices as prescribed by DIR regulations and agrees to furnish the records specified in California Labor Code Section 1776 directly to the Labor Commissioner in the manner prescribed by California Labor Code Section 1771.4(a)(3) and (c)(2).
5. Contractor shall comply with the provisions of California Labor Code Section 1776 which, among other things, require Contractor and each subcontractor to: (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform City of the location of the records. Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors.
6. Contractor shall comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.
7. Contractor shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor for each calendar day during which such
worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.
8. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”
Date _______________ Signature __________________________________
ATTACHMENT C
BILL TO
Covina Police Departnent
444 N. Citrus Ave.
Covina, United States 91723
INSTALL TO
444 N. Citrus Avenue, Covina, CA
Covina,
Design Consultant
Brent Sheffield
Payment Terms
Deposit/Progress Payments
Payment Schedule
Covina Police Department
Room Sourcewell Contract - Men's & Women's Lockers
LINE QTY DESCRIPTION UNIT LIST EA DISC % PRICE EA EXTENDED TOTAL 1 78 PSL-COVER,SLOPED TOP,SPLICE JOINT
24 X 03 Each $19.00 48.90% $9.71 $757.30
2 1
PSL-SLOPED TOP,INTERMEDIATE,ADDER
24 X36 Each $142.00 48.90% $72.56 $72.56
3 3 PSL-SLOPED TOP,STARTER/END 24 X 36 Each $126.00 48.90% $64.39 $193.16 4 3
PSL-SLOPED TOP,INTERMEDIATE,ADDER
24 X 54 Each $221.00 48.90% $112.93 $338.79
5 1 PSL-SLOPED TOP,STARTER/END 24 X 54 Each $174.00 48.90% $88.91 $88.91 6 17 PSL-SLOPED TOP,INTERMEDIATE,ADDER
24 X 72 Each $252.00 48.90% $128.77 $2,189.12
7 3 PSL-SLOPED TOP,STARTER/END 24 X 72 Each $237.00 48.90% $121.11 $363.32 8 9 PSL-SLOPED TOP,END CAP,LEFT 24 Each $30.00 48.90% $15.33 $137.97
9 9 PSL-SLOPED TOP,END CAP,RIGHT 24 Each $30.00 48.90% $15.33 $137.97 10 10 PSLSTCF24L Each $61.50 48.90% $31.43 $314.27
McMurray Stern
15511 Carmenita Rd
Santa Fe Springs, CA 90670
www.mcmurraystern.com
QUOTATION
# Q-35704-6 - 01-18-24 Sourcewell Contract
VALID UNTIL 02/17/24
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM Room Sourcewell Contract - Men's & Women's Lockers
LINE QTY DESCRIPTION UNIT LIST EA DISC % PRICE EA EXTENDED TOTAL 11 4 PSLSTCF24L02 Each $61.50 48.90% $31.43 $125.71
12 1 PSLSTCF24R Each $61.50 48.90% $31.43 $31.43
13 13 PSLSTCF24R02 Each $61.50 48.90% $31.43 $408.54
14 102 PSL-SLOPE TOP SUPPORT Each $31.50 48.90% $16.10 $1,641.84 15 47 RECEPTACLE-DUPLEX 1 Each $15.50 48.90% $7.92 $372.26 16 33 RECEPTACLE-DUPLEX 2 Each $15.50 48.90% $7.92 $261.38 17 18 RECEPTACLE-DUPLEX 4 Each $15.50 48.90% $7.92 $142.57 18 4 RECEPTACLE-DUPLEX 5 Each $15.50 48.90% $7.92 $31.68 19 10 CABLE-PLUG TO PLUG 12 PSL Each $99.00 48.90% $50.59 $505.89 20 27 CABLE-PLUG TO PLUG 24 710489. Each $106.00 48.90% $54.17 $1,462.48
McMurray Stern
15511 Carmenita Rd
Santa Fe Springs, CA 90670
www.mcmurraystern.com
QUOTATION
# Q-35704-6 - 01-18-24 Sourcewell Contract
VALID UNTIL 02/17/24
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM Room Sourcewell Contract - Men's & Women's Lockers
LINE QTY DESCRIPTION UNIT LIST EA DISC % PRICE EA EXTENDED TOTAL 21 13 CABLE-PLUG TO PLUG 49 PSL Each $118.00 48.90% $60.30 $783.87 22 46 CABLE-POWER DIST. 710488. PSL Each $111.00 48.90% $56.72 $2,609.17 23 12 CAP-POWER DISTRIBUTION,DUST CAP Each $6.00 48.90% $3.07 $36.79 24 10 CABLE-ELEC DIST. 710495. HARNESS,8-
10 SYSTEM Each $118.00 48.90% $60.30 $602.98
25 6
CABLE-POWER IN FEED 710487. 72
LENGTH Each $230.00 48.90% $117.53 $705.18
26 2
KEY-MASTER KEY OVERRIDE,DSM
1600/1700 SERIES Each $48.00 48.90% $24.53 $49.06
27 18 PDVAM844565 Each $63.00 48.90% $32.19 $579.47
28 6
PERSONNEL STORAGE LCKR-2 TIER, 84H
X 24D X 18W Each $1,938.00 48.90% $990.32 $5,941.91
29 106 PSL-DRAWER,SINGLE DOOR 84 X 24 X 18 Each $1,780.00 48.90% $909.58 $96,415.48 30 118 PSLCLKLH Each $103.00 48.90% $52.63 $6,210.69
McMurray Stern
15511 Carmenita Rd
Santa Fe Springs, CA 90670
www.mcmurraystern.com
QUOTATION
# Q-35704-6 - 01-18-24 Sourcewell Contract
VALID UNTIL 02/17/24
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM Room Sourcewell Contract - Men's & Women's Lockers
LINE QTY DESCRIPTION UNIT LIST EA DISC % PRICE EA EXTENDED TOTAL 31 6 DROP-IN FLOOR,18 WIDE PSL Each $130.00 48.90% $66.43 $398.58 32 106 BODY ARMOR DRYING RACK 18W X 24D Each $123.00 48.90% $62.85 $6,662.42 33 106 PSLDRW092418 Each $410.00 48.90% $209.51 $22,208.06 34 12 PSL END PANEL,SINGLE 84 X 24 Each $158.00 48.90% $80.74 $968.86 35 106 SHELF-FULL WIDTH STD ADJ PLAIN PSL
24 X 18 Each $95.00 48.90% $48.55 $5,145.77
36 118 PSL, FULL WIDTH SHELF W/CLOTHES
HANGER, 24D X 18W Each $155.00 48.90% $79.21 $9,346.19
37 106 PSLHANG Each $35.00 48.90% $17.89 $1,895.81
38 118 NUMBER TAG,PSL Each $11.25 48.90% $5.75 $678.35
39 4
PSL-SLOPED TOP,INTERMEDIATE,ADDER
24 X 18 Each $95.00 48.90% $48.55 $194.18
40 13 PSL-SLOPED TOP,STARTER/END 24 X 18 Each $86.00 48.90% $43.95 $571.30
McMurray Stern
15511 Carmenita Rd
Santa Fe Springs, CA 90670
www.mcmurraystern.com
QUOTATION
# Q-35704-6 - 01-18-24 Sourcewell Contract
VALID UNTIL 02/17/24
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM Room Sourcewell Contract - Men's & Women's Lockers
LINE QTY DESCRIPTION UNIT LIST EA DISC % PRICE EA EXTENDED TOTAL 41 1
Salsbury Industries - 9 Locker Benches
w/Pedestals Lot $9,083.33 0.00% $9,083.33 $9,083.33
42 1 PC Lighting & Electrical Lot Lot $5,952.00 0.00% $5,952.00 $5,952.00 43 1 Freight by Others lot $20,683.0
7 0.00% $20,683.07 $20,683.07
44 1
Includes Design, Project Management,
Installation, Site Preparation, Unloading,
Inside Delivery, Travel Expenses and
Prevailing Wage.
Each $84,740.3
3 0.00% $84,740.33 $84,740.33
McMurray Stern
15511 Carmenita Rd
Santa Fe Springs, CA 90670
www.mcmurraystern.com
QUOTATION
# Q-35704-6 - 01-18-24 Sourcewell Contract
VALID UNTIL 02/17/24
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM
CUSTOMER SIGN OFF
\signature1 \date1 Total List $456,234.23
Authorized Signature Accepted Date Discount 35.99%
Subtotal $292,040.00
Sales Tax $29,934.10
\fullname1
Total $321,974.11
Print Name
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM Terms and Conditions
The purchase order, proposal and sales or service agreement (collectively, the “Proposal”) provided by McMurray Stern, LLC, a Delaware limited liability company (“Company”), specifically incorporates the following Terms and Conditions. The Proposal and these Terms and Conditions are collectively referred to as the “Agreement” between Company and Purchaser, and exclusively govern and control the parties’ respective rights and obligations. In the event of a conflict between these Terms and Conditions and the Proposal, these Terms and Conditions will control, except for terms relating to price, quantity, and specifications, in which case the Proposal will control.
1. TAXES: The price does not include any sales, use, excise, or similar taxes, surcharges, tariffs and duties, and Purchaser shall be responsible for all such items, however designated or levied, and whether or not invoiced by Company. If taxes are included as part of the price and the rate or base of the tax is increased or decreased, Purchaser will pay any increased taxes, and Company will give credit for any tax decrease.
2. WARRANTY FOR GOODS AND SERVICES:
a. Company warrants (the “Goods Warranty”) that the Goods as set forth in the Proposal will be, on the date of the start of the Warranty Period, free from material defects in material and workmanship. “Goods” for purposes of this Agreement means any goods, products, machinery, equipment, parts, materials, computer hardware and other items to be provided by the Company as set forth in the Proposal. b. Company warrants (the “Services Warranty”) that the Services (as defined below) will be performed in a professional and workmanlike manner. “Services” for purposes of this Agreement means the installation, commissioning, or other services to be performed by the Company as set forth in the Proposal.
c. Any failure of the Goods to conform to the Goods Warranty, or the Services to conform to the Services Warranty, is referred to herein as a “Warranty Defect”.
d. Company’s obligations under the Goods Warranty and the Services Warranty are conditioned upon full and timely payment of all amounts owed by Purchaser and receipt by Company of prompt written notice from Purchaser of the claimed Warranty Defect, including a description of the Warranty Defect and its discovery, and the opportunity for Company to validate and inspect in Purchaser’s facility the Goods or Services claimed to be defective. e. The Goods Warranty and the Services Warranty shall terminate, and any claim of a Warranty Defect shall be deemed waived and extinguished, upon the expiration of the Warranty Period (as defined below), except as to any Warranty Defect for which Purchaser has given Company written notice in accordance with Section 2.d prior to the expiration of the Warranty Period. f. The “Warranty Period” shall be one (1) year from Acceptance; provided that, where no Services are included in the Proposal or sale, the Warranty Period is one year from shipment of the Goods. As used herein, “Acceptance” shall mean substantial completion of the Services to be provided by the Company. If the Purchaser shall use any Goods which require Services, such use shall also be deemed to be “Acceptance”. g. In the event of a Warranty Defect for which Purchaser has timely and properly given notice pursuant to Section 2.d, Company shall be responsible, (i) in the case of Goods, to repair or replace the defective Goods, delivered F.O.B. Company’s manufacturing plant, as determined by the Company in its sole discretion, and (ii) in the case of Services, to re-perform the Services that were not performed in accordance with the Services Warranty. The Warranty Defect obligation does not include costs of labor or other charges incurred in removing or installing parts (which shall be paid by Purchaser), and does not apply to Goods damaged by Purchaser, or its agents, representatives, employees, contractors, licensees or invitees, or by overloading, exposure to corrosive or abrasive substances or abnormal dampness, misuse, abuse, neglect or accident, or to Goods which have been improperly applied, installed, adjusted, operated, maintained, repaired, modified, changed or altered by persons other than Company, or to parts subject to wear and tear and replacement in ordinary course (such as, but not limited to: belts, chains, fuses, light bulbs, bushings, or similar items), or to other ordinary wear and tear. Company’s Goods Warranty with respect to any repaired or replaced Goods, or Services Warranty with respect to any re-performed Services, shall terminate on the date that the warranty would terminate under Section 2.e and 2.f as to any Goods or Services not subject to a claim of a Warranty Defect.
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM h. Company makes no warranties or representations, nor assumes any obligations with regard to, Purchaser’s existing equipment or facilities or for any equipment supplied by Purchaser or any third-party and used in the Company system, and Purchaser assumes full responsibility for the use and operation of such equipment.
i. If Company fails to repair or replace within thirty (30) days the defective Goods for which Purchaser has timely and properly given notice of a Warranty Defect pursuant to Section 2.d, then provided that Purchaser has given Company thirty (30) days prior written notice after such failure to repair or replace, and Company has not made such repair or replacement within such thirty (30) day notice period (or if the nature of such repair or replacement is not capable of being completed within such 30-day period, the Company has not commenced such repair or replacement), Purchaser may obtain repair or replacement of the defective goods from a third-party, and in such event Company shall be liable to Purchaser for the lesser of (i) the reasonable costs of such repair or replacement by a third-party or (ii) that part of the purchase price of the defective part of the Goods that has already been paid by Purchaser.
j. EXCEPT AS SET FORTH IN THIS SECTION 2, THE GOODS AND SERVICES ARE BEING SOLD “AS IS”, AND THE COMPANY
MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE GOODS OR SERVICES OTHER THAN THE EXPRESS WARRANTIES CONTAINED IN SECTION 2. COMPANY HEREBY EXPRESSLY DISCLAIMS ANY AND ALL OTHER
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY REPRESENTATION
OR WARRANTY AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE.
3. PRICE AND PAYMENT: Purchaser shall make all payments due to the Company upon the terms set forth on the Proposal in immediately available funds. If any payment due from the Purchaser is not received by the Company within five (5) days after the due date, then Purchaser shall pay to the Company a late charge equal to five percent (5%) of the overdue amount. In addition, Purchaser shall pay interest on all late payments at the lesser of the rate of 10% per annum or the highest rate permissible under applicable law, calculated daily. The purchaser shall reimburse the Company for all costs incurred in collecting any late payments, including, without limitation, reasonable attorneys’ fees. Goods are sold on a firm sale basis. Orders cannot be canceled once placed. The purchaser shall have no right under these Terms and Conditions, or any other agreement, document, or law, to withhold, offset, recoup, or debit any amounts owed to the Company against any other amount owed to it by the Company. A surcharge will be assessed on any credit card payments by Purchaser in the amount equal to three percent (3%) of the transaction amount, but in no event shall the surcharge be greater than the amount actually paid by the Company to its payment processor for processing the transaction.
4. INSURANCE BY COMPANY: Company will maintain insurance covering its operations as follows:
a. Worker’s Compensation Insurance as required by the state having jurisdiction over Company and Employer’s Liability with limit of $1,000,000. b. Commercial General Liability Insurance with combined single limit for bodily injuries and property damage of $2,000,000. c. Automotive Liability Insurance for bodily injuries, including death and property damage with combined single limit of $1,000,000. d. Umbrella and/or excess coverage with a limit of $5,000,000.
Company may, at its sole option, satisfy these requirements with commercial insurance or through a program of combined self-insurance, self-insured retention, and excess insurance. Certificates of insurance will be furnished upon request.
5. INSURANCE BY PURCHASER: Purchaser assumes all risk of loss from damage and destruction of the Goods and any applicable installation charges thereof. Such risk of loss will transfer to Purchaser at the F.O.B. point pursuant to the shipping terms of the Agreement, or if not specified, F.O.B. Origin.
Purchaser does not assume any risk of loss that is due to the actions of Company employees, contractors or subcontractors. Purchaser agrees to acquire and maintain all risk insurance covering damage and destruction of the Goods at replacement value and in no event less than the purchase price including any increases by Change Order(s). The insurance policy or policies shall name the Company as an additional insured, shall provide for thirty (30) days prior notification to Company if the insurance coverage is terminated, reduced, or otherwise materially modified, shall provide that the insurance proceeds shall be payable to Company and Purchaser as their interests may appear, and shall provide for a waiver of subrogation in favor of Company. Payments made by an insurance carrier to Company as a result of such damage or destruction of the Goods will be applied against the purchase price and any other amounts owed by Purchaser under the Agreement. Purchaser shall furnish Company with certificates evidence of such insurance.
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM
6. INDEMNIFICATION: The Goods furnished hereunder will be manufactured with Company safety features and furnished with user safety instructions.
The operation of the Goods with safety features removed or modified and/or the disregard of the user safety instructions is outside of Company’s control and is the responsibility of Purchaser. Therefore, Purchaser agrees to indemnify, defend and hold Company harmless from any and all claims, demands, liabilities, causes of action, suits, costs, and expenses of any kind or nature (including attorney’s fees) for loss or damage which may be suffered by Company as a result of injury to persons arising from such removal or modification to Company-furnished safety features and/or the disregard of Companyfurnished user safety instructions, including any person injured while riding, sitting, stepping, walking, or climbing on the Goods furnished hereunder.
7. CHANGE ORDER: The parties may agree at any time prior to final payment of the Agreement to make additions, deletions, or other revisions by Change Order or Work Order (as defined below) without invalidating the Agreement. No such change will be made by Company until an approved Change Order or Work Order is executed as provided below.
a. When the price, schedule and other conditions relating to the change can be determined prior to the start of work under the change, a document describing this change (“Change Order”) will be issued for execution by the parties. b. When the change requires immediate action and the issuance of an executed Change Order with firm price would unreasonably delay the change, Purchaser shall place its signature upon a document authorizing Company to proceed with the change (“Work Order”). After the change under the Work Order has been completed, Company will calculate the firm price for the change using actual costs (including overhead and reasonable profit) current at time of performance of the work. Completed Work Order(s) will be incorporated into a Change Order for execution by the parties.
Unless expressly modified by a Change Order or Work Order, the provisions of the Agreement and these Terms and Conditions will govern all work performed under such Change Order or Work Order.
8. DELIVERIES: The Company will use commercially reasonable efforts to deliver Goods on any estimated delivery date set forth in the Proposal. The Company shall not be liable for any delays, loss or damage in transit, including any delays as set forth in Section 12 below. If for any reason Purchaser fails to accept delivery of any Goods, or if the Company is unable to deliver Goods because Purchaser has not provided appropriate instructions, documents, licenses, or authorizations: (i) risk of loss to Goods shall pass to Purchaser; (ii) Goods shall be deemed to have been delivered; (iii) the Company, at its option, may store Goods until Purchaser picks it up, whereupon Purchaser shall be liable for all related costs and expenses (including, without limitation, storage and insurance); and (iv) Purchaser will compensate the Company for any other associated loss, damage, and additional expense suffered or incurred by the Company as a result of such delay. Except as otherwise set forth above, title and risk of loss passes to Purchaser as set forth in Section 5. As collateral security for the payment of the purchase price of Goods, Purchaser hereby grants to the Company a lien on and security interest in and to all of the right, title, and interest of Purchaser in, to and under Gods, wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the foregoing. The security interest granted under this provision constitutes a purchase money security interest under the UCC.
9. REMEDIES:
a. Purchaser’s Remedies Prior to Acceptance. Prior to Acceptance, if Company defaults in the performance of any of its material obligations under the Agreement, Company shall have thirty (30) days following written notice from Purchaser advising Company of the default, in which to (i) cure the default or, (ii) if the default is not reasonably curable within such thirty (30) day period, to implement a plan to cure the default in a diligent manner. If Company fails to effect such cure within such thirty (30) day period or fails to implement a plan to cure the default within such thirty (30) day period and thereafter prosecute such cure diligently to completion, then Purchaser shall have the right to terminate the Agreement upon written notice to Company. In the event of such termination, Purchaser shall either (i) pay to Company the value of the Goods and Services already provided to Purchaser, or (ii) complete the work specified in the Agreement. If Purchaser elects to complete the work specified in the Agreement and the reasonable costs of completion exceed the unpaid balance of the Proposal price, Company shall pay the difference to Purchaser upon submission of reasonable evidence of the costs thereof.
b. Purchaser’s Remedies After Acceptance. After Acceptance, Purchaser’s remedies set forth in Section 2.g (with respect to Warranty Defects) are Purchaser’s sole and exclusive remedies for any claim that Purchaser may have related to the Agreement or the Goods or Services, in connection with the design, manufacture, sale, handling, transportation, delivery, installation, performance or otherwise of the Goods or the Services.
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM c. Company’s Remedies: In addition to any remedies that may be provided in the Agreement, the Company may terminate this Agreement with immediate effect upon written notice to Purchaser, if Purchaser: (i) fails to pay any amount when due under the Agreement; (ii) has not otherwise performed or complied with the Agreement, in whole or in part; or (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization, or assignment for the benefit of creditors. In such event, the Company shall have the right to (i) suspend performance of its obligations under the Agreement until the default is cured, (ii) terminate the Agreement, and/or (iii) exercise any other right or remedy provided for in the Agreement, or available to Company under applicable law. d. LIMITATION OF REMEDIES. THE AGREEMENT SETS FORTH PURCHASER’S SOLE AND EXCLUSIVE REMEDIES FOR ANY
DEFECT IN OR NON-CONFORMITY OF ANY GOODS OR SERVICES, FOR ANY NEGLIGENT DESIGN, MANUFACTURE, OR INSTALLATION OF THE GOODS, FOR ANY DELAY IN DELIVERY, AND FOR ANY BREACH OF THE AGREEMENT BY COMPANY.
IN NO EVENT SHALL THE COMPANY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL,
EXEMPLARY, PUNITIVE, OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES, OR DIMINUTION IN VALUE, ARISING
OUT OF, OR RELATING TO, THE GOODS OR SERVICES, OR IN CONNECTION WITH ANY BREACH UNDER A PROPOSAL OR
THESE TERMS AND CONDITIONS, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR
NOT A PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND (D) THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE. THE COMPANY’S MAXIMUM CUMULATIVE LIABILITY UNDER THE AGREEMENT
FOR ANY AND ALL CLAIMS, DAMAGES, LOSSES, LIABILITIES OR THE LIKE OF ANY KIND, WHETHER RELATING TO THE
GOODS OR SERVICES, THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, SHALL NOT EXCEED THE TOTAL OF THE AMOUNTS PAID TO THE COMPANY UNDER THE PROPOSAL WHICH IS THE SUBJECT OF THE CLAIM. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, PURCHASER ASSUMES ALL RISK AND LIABILITY FOR THE RESULTS OBTAINED BY THE USE OF GOODS AND
SERVICES, WHETHER IN TERMS OF OPERATING COSTS, GENERAL EFFECTIVENESS, SUCCESS OR FAILURE, AND
REGARDLESS OF ANY ORAL OR WRITTEN STATEMENTS MADE BY THE COMPANY, OR OTHERWISE, RELATED TO USE OF THE GOODS AND/OR SERVICES. PURCHASER AND COMPANY AGREE THAT THE EXCLUSIONS AND LIMITATIONS SET
FORTH IN THIS PARAGRAPH ARE SEPARATE AND INDEPENDENT FROM ANY REMEDIES WHICH PURCHASER MAY HAVE
IN THE AGREEMENT AND SHALL BE GIVEN FULL FORCE AND EFFECT WHETHER OR NOT ANY OR ALL SUCH REMEDIES SHALL BE DEEMED TO HAVE FAILED OF THEIR ESSENTIAL PURPOSE.
10. COMPLIANCE WITH LAW. Purchaser shall comply with all applicable laws, regulations, and ordinances. Purchaser has and shall maintain in effect all the licenses, permissions, authorizations, consents, and permits that it needs to own and operate the Goods and carry out its obligations under these Terms and Conditions.
11. INTELLECTUAL PROPERTY: The Company shall retain all right, title and interest to its own intellectual property, formulas, software and designs, including, without limitation, trademark, copyright, and any and all renewals, extensions, revivals and resuscitations thereof, throughout the universe in perpetuity in all media now known or hereafter devised.
12. DELAYS: If Company’s performance is delayed or prevented by Purchaser or other any cause uncontrolled or unforeseen by Company (including but not limited to acts of God, pandemics (including COVID-19 or any variants thereof), casualty, labor disturbance, strikes, riots, civil disturbance, inability to obtain supplies or transportation, explosion, flood, fire, power failure, embargos, boycotts, governmental or military action, war, terrorism, or any order modification by Purchaser): (i) except as set forth in the Proposal, Purchaser agrees to pay Company invoices upon notification that the Goods are ready for shipment in accordance with the shipping schedule and to reimburse Company for expenses incident to such delay including, without limitation, the cost of engineering, the cost of Goods and labor escalations; maintaining, repairing, refurbishing and replacing Goods; and storage, demurrage, and pullout charges from installation site; and (ii) the time for delivery of the Goods and performance of the Services will be extended for a period at least equal to the time lost by reason of the delay, and Company will not be liable for any damages caused by the delay and such delay shall not be considered a breach or default by the Company. No obligation of a party to pay money otherwise due is subject to any delay condition.
13. PATENT INDEMNITY: Company agrees to indemnify and hold Purchaser harmless from any damages that may be awarded against Purchaser in any final appealable judgment based upon a claim that the Goods or its use infringes any currently existing United States patents owned by third parties, provided that Purchaser notifies Company in writing, within ten (10) days of Purchaser’s knowledge of any such claim, and gives Company the exclusive
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM control of the defense and settlement of any claim, including at Company’s option, the right to: (i) make changes in the Goods; (ii) replace the Goods; and/or (iii) obtain a license; to avoid any alleged infringement. Company shall have no obligation hereunder with respect to claims, suits or proceedings, resulting or related, in whole or in part, from: (i) any modifications or alterations of the Goods by Purchaser; (ii) any combining by Purchaser of the Goods with other equipment not furnished by Company; (iii) compliance by Company with Purchaser’s specifications; or (iv) incorporating a design or modification at Purchaser’s request.
14. ASSIGNMENT/SUBCONTRACTS: Neither Party shall delegate the performance of any obligation hereunder, nor assign any rights arising under the Agreement, to any third person without the prior written consent of the other Party; provided, however, each party shall have the right to assign this Agreement to an entity which purchases all or substantially all of the assets of such party. The Parties agree that consent shall not be unreasonably withheld.
Company reserves the right to use subcontractors in the performance of any services to be performed by Company.
15. CONFIDENTIALITY: The Agreement, any information marked as confidential and any other information (written/electronic/oral) which is of the nature that a reasonable person would understand its owner would not want it disclosed to the public will be considered to be “Confidential Information” of Company. Further, Confidential Information of Company shall also include (i) any document or data transaction between the parties, (ii) matters of a technical nature such as trade secret processes or devices, know-how, drawings, specifications, proposals, data, formulas, software, inventions (whether or not patentable or copyrighted), specifications and characteristics of products or services planned or being developed, and research subjects, methods and results, (iii) matters of a business nature such as information about costs, profits, pricing, policies, markets, sales, suppliers, customers, product plans, and marketing concepts, plans or strategies, (iv) matters relating to project initiatives and designs, (v) matters of a human resources nature such as employment policies and practices, personnel, including individual names, address, and telephone numbers, compensation and employee benefits, and/or (vi) other information of a similar nature not generally disclosed to the public. Purchaser shall not use or disclose Confidential Information except to its employees subject to a similar confidentiality agreement, who have a need to know to perform their responsibilities. The obligations set forth herein to maintain confidentiality shall not apply to Confidential Information that: (i) Purchaser can document was rightfully in the public domain prior to disclosure or becomes publicly known through no fault of the Purchaser; (ii) Purchaser can document through written evidence dated prior to the date of disclosure, was rightfully known to the Purchaser prior to disclosure; (iii) is disclosed to Purchaser by a third-party, rightfully in possession of the Confidential Information and not in violation of a confidentiality agreement with Company or other restriction on use; or (iv) was independently developed by Purchaser without the use of or reference to the Confidential Information. Any separate confidentiality agreement executed between the parties shall continue to remain in full force and effect.
16. CHANGES IN LAWS AND REGULATIONS: Company’s prices and timely performance are based on all applicable laws, rules, regulations, orders, codes, standards, or requirements of governmental authorities effective on the date of Company’s Proposal. Any change to any law, rule, regulation, order, code, standard or requirement which requires any change hereunder shall entitle Company to an equitable adjustment in the prices and any time of performance.
17. MISCELLANEOUS:
a. Entire Agreement. The Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior agreement, understanding, discussions, representations, or proposals made between the parties. The terms of this sale are expressly limited to the terms and conditions set forth in the Agreement. Any changes, modifications, or additions to the Agreement are binding and enforceable only if made in writing and signed by the respective parties. Any and all terms set forth on Purchaser’s purchase order or otherwise proposed by Purchaser are hereby objected to and shall be void unless expressly agreed to in a written document signed by both parties. b. Governing Law. The Agreement shall be interpreted and enforced in accordance with the substantive laws of the State of California without regard to its conflicts of law principles. Any legal suit, action or proceeding arising out of or related to this Agreement, or the matters contemplated this Agreement, shall be instituted exclusively in the federal or state courts located in Los Angeles, California, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding and waives any objection based on improper venue or forum non convenience. c. Severability. The invalidity or unenforceability of any provision of the Agreement shall not affect the enforceability or validity of the remaining provisions, and the Agreement shall be construed in all respects as if any invalid or unenforceable provision were omitted.
15511 Carmenita Road ▪ Santa Fe Springs, CA 90670-5609 ▪ T: 562.623.3000 ▪ F: 562.623.3039 ▪ MCMURRAYSTERN.COM d. Nonwaiver. Failure of either party to require performance of any provision shall not affect its right to thereafter require full performance of that provision. The waiver by either party of a breach of any provision shall not constitute a waiver of any subsequent breach or nullify the effectiveness of such provision.
e. Captions. Captions preceding Articles are for convenience only and are not to be construed as part of the Agreement or as a limitation of the scope of the Article to which they refer.
f. Third Party Beneficiaries. Except as provided for in Section 5, no provision of these Terms and Conditions is intended to confer any rights, benefits, remedies, obligations, or liabilities hereunder upon any person other than the parties and their respective successors and permitted assigns. g. Ambiguities. Each party and its counsel have participated fully in the review and revision of the Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting the Agreement. h. Data Destruction. At the termination of this Agreement, Customer will provide Company with a list of all confidential Customer data it wishes to have Company destroy. Company will destroy all confidential Customer data and provide confirmation of such destruction sixty (60) days after receipt of such list.
i. Independent Contractor. Each party shall be an independent contractor under the Agreement. The relationship between the parties shall not be construed to be that of employer and employee, nor to constitute a partnership, joint venture, or agency of any kind. Neither party shall have the right to bind the other party to any contract or other commitment. j. Survival. All indemnity provisions contained in this Agreement will survive the expiration or sooner termination of this Agreement.
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 14
Meeting: February 20, 2024
Title: Covina Police Department Locker Room Renovation Project – Award of Contract for Construction Services to BBS Construction, Inc. in the Amount of $695,000 Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director of Public Works/City Engineer Recommendation: 1. Award a contract for the Covina Police Department Locker Room Renovation Project – Construction Services to BBS Construction, Inc. as the lowest responsive, responsible bidder in the amount of $695,000 and authorize the City Manager to execute the contract;
2. Establish a contingency allowance of $69,500 (10% of contract amount) for unforeseen conditions or additional construction services, if needed; and
3. Adopt Resolution CC 2024-09 amending the FY 2023-24 Capital Improvement Program Budget and appropriating an additional $629,778.65 from the Police Department Community Facilities District Fund, Police Department Impact Fees Fund, and Measure CC Fund to be transferred into the Building Maintenance Fund for completion of the Covina Police Department Locker Room Renovation Project.
EXECUTIVE SUMMARY:
As part of the City’s Fiscal Year 2023-2024 Capital Improvement Program, the City Council approved a project entitled “Police Department Locker Room Renovation Project,” which consists of the complete renovation of the Police Department Locker Rooms located on the First Floor and Basement levels.
Following a public bidding process, it has been determined that the lowest responsive and responsible bidder for the project is BBS Construction, Inc. As such, it is recommended that a contract (Attachment C) be awarded for the Police Department Locker Room Renovation Project to BBS Construction, Inc. as the lowest responsive and responsible bidder in the amount of $695,000 and authorize the City Manager to execute the contract.
DISCUSSION:
A Notice Inviting Bids (NIB) was published in the San Gabriel Valley Examiner on Thursday, December 7th & 14th 2023. In addition, the Notice Inviting Bids was sent to McGraw Hill Construction/FW Dodge Company (Green Sheets).
Sealed bids were accepted in the Office of the City Clerk until 10:00 am on Tuesday, December 19th, 2023.
Beginning at 10:00 a.m. on December 19th, 2023, the City Clerk publicly opened and two (2) sealed bids with the following results:
Rank Consultant Location Cost
1 BBS Construction, Inc West Covina, CA $695,000
2 Monet Construction Los Angeles, CA $918,000
Staff reviewed the proposal documents as well as the consultants’ background and recently completed projects for competency and responsiveness to the deliverables identified in the NIB. Staff determined that BBS Construction, Inc. is the successful lowest bidder.
Once completed, the renovation project will provide Police Department personnel with new shower rooms and toilets, refurbishment of existing walls, new flooring, new cabinets and sinks as well as plumbing and ventilation improvements.
FISCAL IMPACT:
A total funding amount of $750,000 was allocated in the City’s approved Fiscal Year 2023-2024 Budget, Building Maintenance (Account No. 70206100-55100-F2301). Adoption of Resolution CC 2024-09 will appropriate additional project funding from the Police Department Community Facilities District Fund, Police Department Impact Fees Fund, and the Measure CC Fund of $629,778.65 in order to complete the project. Total construction costsfor the PD Locker Room Renovation Project is now slated to be $1,091,474.11. The cumulative cost of this project (design and construction costs) amounts to $1,379,778.65 and is outlined below:
PD Locker Room Renovation Project
Total Budget Allocation
Preconstruction Phase
EC & Associates (Design)
Converse Consultants (Asbestos Survey Report)
Danny Ryan Precision Contracting (Asbestos Abatement)
Boomerang (Document Reproduction)
Remaining Available Balance
Actual Construction Cost
Construction Contract Amount (BBS Construction Inc.)
$750,000
$98,870
$38,980
$150,000
$454.54
$461,695.46
$695,000
Contingency Allowance
Locker Installation (Owner Purchased and Installed)
Architect Construction Support (EC & Associates)
Total Construction Costs
Final Amount Needed (Shortfall) – Per Resolution
Total Project Cost
$69,500
$321,974.11
$5,000
$1,091,474.11
($629,778.65)
$1,379,778.65
Funding for the construction shortfall will be appropriated from the following funding sources and transferred into the Building Maintenance Fund for project completion:
FUND AMOUNT
PD Community Facilities District (CFD) $196,314.95
PD Impact Fees $50,000.00
Measure CC $383,463.70
TOTAL $629,778.65
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2024-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2023/2024 CAPITAL
IMPROVEMENT PROGRAM BUDGET AND INCREASE FUNDING FOR
THE PD LOCKER ROOM RENOVATION PROJECT IN THE AMOUNT
OF $629,778.65 FROM THE PD COMMUNITY FACILITIES DISTRICT
FUND, PD IMPACT FEES FIND AND THE MEASURE CC FUND
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the Fiscal Year 2024 Operating Budget & Capital Improvement Plan (CIP) was approved on May 16, 2023; and
WHEREAS, the approved Operating Budget and Capital Improvement Plan (CIP) is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and WHEREAS, the City of Covina wishes to amend the 2023/2024 Capital Improvement Program Budget to appropriate monies from the PD Community Facilities District Fund, PD Impact Fees Fund, and Measure CC Fund to be transferred into the Building Maintenance Fund for use towards the PD Locker Room Renovation Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the Fiscal Year 2023/2024 Capital Improvement Program Budget for the Covina Skate Park Project.
SECTION 2. Appropriate monies from the PD Community Facilities District Fund, PD Impact Fees Fund, and Measure CC Fund to be transferred into the Building Maintenance Fund for use towards the PD Locker Room Renovation Project account numbers:
Account No. Account Description Amount ($) Increase/Decrease 1095-0000-59140 Measure CC - Transfer
Out Building Maint
Fund
$383,463.70 Increase
2740-1000-59140 Community Facilities
District - PD Admin -
Transfer Out Building
Maint Fund
$196,314 Increase
4703-1000-59140 Police Impact Fund - PD
Admin - Transfer Out
Building Maint Fund
$50,000 Increase
7020-6100-49110 Building Maintenance- $383,463.70 Increase
Resolution CC 2024-09 Page 2 of 2
City Facilities -Transfer
In General Fund
7020-6100-49120 Building MaintenanceCity Facilities-Transfer In Spec Rev Proj
$196,314,.95 Increase
7020-6100-49140 Building
Maintenance-City
Facilities -Transfer In
Capital ProjectsProject
$50,000 Increase
7020-6100-
55100-F2301
Building MaintenanceCity Facilities-Buildings
& Structures-Project: PD
Locker Room
$629,778.65 Increase
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 20th day of February, 2024.
City of Covina, California
BY:
WALTER ALLEN, III, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-09 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 20th day of February, 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
____________________________________
FABIAN VELEZ, Chief Deputy City Clerk
ATTACHMENT B
ATTACHMENT C
CONTRACT
CITY OF COVINA CONTRACT FOR
PD LOCKER ROOM RENOVATION PROJECT - CONSTRUCTION
THIS CONTRACT (“Contract”) is made and entered this 20TH day of February, 2024 (“Effective Date”), by and between the CITY OF COVINA, a California municipal corporation (“City”) and BBS Construction, Inc a California corporation (“Contractor”). Contractor’s California State Contractor’s license number is 839266; Class A. Contractor’s DIR registration number is 100010924.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any postBid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference.
In the event of any conflict between the terms of this Contract and any incorporated documents, the terms of this Contract shall control.
2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as PD Locker Room Renovation Project - Construction (“Project”), as described in this Contract and in the Contract Documents.
3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor an amount not to exceed Six Hundred Ninety Five Thousand Dollars ($695,000) in accordance with the prices as submitted in the Bid, attached hereto as Exhibit “A” and incorporated herein by this reference.
4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance, Additional Insured Endorsement (Comprehensive General Liability), Additional Insured Endorsement (Automobile Liability), and Additional Insured Endorsement (Excess Liability).
5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. § 15) or under the Cartwright Act (Cal. Bus. & Prof. Code, § 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.
6. Prevailing Wages. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply.
7. Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
ATTACHMENT C
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
8. Trenches and Other Excavations. If this Project involves the digging trenches or other excavations that will extend deeper than four (4) feet below the surface, Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to proposers prior to the deadline for submitting proposals; and (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
9. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.
10. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
11. Entire Agreement. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.
12. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.
[SIGNATURE PAGE FOLLOWS]
ATTACHMENT C
CITY OF COVINA
By:
City Manager
ATTEST:
By:
Chief Deputy City Clerk
Dated:
(“CONTRACTOR”)
By:
Printed Name:
Title:
By:
Printed Name:
Title:
ATTACHMENT C
EXHIBIT A
ATTACHMENT C
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
PD LOCKER ROOM RENOVATION PROJECT - CONSTRUCTION
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of
Dollars ($ ), this
amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications.
Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.
ATTACHMENT C
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
ATTACHMENT C
EXHIBIT D
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
PD LOCKER ROOM RENOVATION PROJECT - CONSTRUCTION
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars
($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the
ATTACHMENT C
terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 15
Meeting: February 20, 2024
Title: Fiscal Year 2023-24 Mid-Year Budget Update and Adjustments Resolution CC 2024-10 Presented by: Anita Agramonte, Administrative Services Director Charles Russom, Management Analyst
Recommendation: 1. Adopt Resolution CC 2024-10 authorizing Fiscal Year 2023-2024 mid-year budget adjustments; and
2. Receive and file the Fiscal Year 2023-24 Mid-Year Budget Update.
EXECUTIVE SUMMARY:
The Mid-Year Budget Update provides an update on the status of the City's finances. The report includes recommended budget revisions as well as year-end revenue and expenditure projections.
BACKGROUND:
The City Council adopted the FY 2023-24 Budget on May 16, 2023. The total revenue budget was projected at $102,061,279 and total expenditures of $121,770,339 were estimated. The adopted General Fund budget was balanced with revenues and expenditures totaling $47,598,259.
The originally adopted budget has been amended over the past several months to include prior year carryovers and additional appropriations authorized by the City Council. Factoring in these amendments and additional appropriations, the current General Fund revenue budget totals $50,073,259 while the budgeted expenditures total $54,129,131.
DISCUSSION:
As a part of the Mid-Year report, staff has analyzed year to date revenues and expenditures as compared to the budget and identified accounts requiring adjustments.
General Fund:
The table below summarizes the original Fiscal Year 2023-24 General Fund adopted budget:
The following table summarizes the current Fiscal Year 2023-24 General Fund budget, revised to include any budget resolutions approved by the City Council to date, including encumbrance carryovers:
Adopted 2023-24 Budget June 30, 2023 June 30, 2024
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 12,019,946 47,598,259 47,598,259 12,019,946 - 1095 Special General Fund (Transaction/Use Tax) 9,515,261 8,500,000 7,367,619 10,647,642 1,132,381 21,535,207 56,098,259 54,965,878 22,667,588 1,132,381
The current budget projects a General Fund deficit of $4,055,872 and Transaction and Use Tax Fund deficit of $2,843,434 at the end of Fiscal Year 2023-24. The Transaction and Use Tax Fund includes transfers to the General Fund to offset general operating costs, as well as funding for Capital Projects.
General Fund Revenues:
The table below summarizes Fiscal Year 2023-24 general fund revenues. The table includes FY 2022-23 Actual revenues, and reflects the adopted and revised FY 2023-24 Budget, recommended mid-year adjustments as well as year-end figures indicating projected Fiscal Year 2023-24 revenue outcomes.
Overall, as outlined in the table above, an increase in revenues of $1,280,920 is projected. Taxes are projected to surpass the original budget by $1,152,000 due to projected increases in the Property Tax, Utility Users Tax and Franchise revenue categories. Additional increases are projected in Licenses and Permits and in Charges for Services. A reduction in Sales tax and Charges for Services are also included. The original budget process utilized a conservative approach in projecting revenues, however based on year to date receipts and an analysis of final outcomes for FY 2022-23, it is anticipated that most categories will surpass initial projections, as illustrated above. 2023-24 Revised Budget June 30, 2023 June 30, 2024
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 14,310,433 50,073,259 54,129,131 10,254,561 (4,055,872) 1095 Special General Fund (Transaction/Use Tax) 18,642,694 8,500,000 11,343,434 15,799,260 (2,843,434) 32,953,127 58,573,259 65,472,565 26,053,821 (6,899,306) 2023 2024 2024 2024 2024
General Fund Revenues Actual Adopted Revised Mid-Yr Adj Projected YE Property Tax 16,416,923 15,630,000 15,630,000 700,000 16,330,000 Sales Tax 11,493,906 11,500,000 11,500,000 (300,000) 11,200,000 Utility Users Tax 6,041,869 5,065,000 5,065,000 669,000 5,734,000 Franchises/Other Taxes 3,017,976 2,657,000 2,657,000 83,000 2,740,000 Transaction/Use Tax - Transfer - - - - -
Total Taxes 36,970,673 34,852,000 34,852,000 1,152,000 36,004,000 Licenses and Permits 1,184,244 981,000 981,000 85,000 1,066,000 Intergovernmental 980,244 868,300 868,300 868,300
Charges for Services 3,480,309 3,278,840 5,678,840 (204,880) 5,473,960 Fines and Forfeitures 1,304,523 835,000 835,000 (15,000) 820,000 Other Revenues 1,306,965 6,783,119 6,858,119 11,800 6,869,919 General Fund Total 45,226,957 47,598,259 50,073,259 1,028,920 51,102,179 2023 2024 2024 2024 2024
Special General Fund Revenues Actual Adopted Revised Mid-Yr Adj Projected YE Transaction & Use Tax 8,787,686 8,500,000 8,500,000 - 8,500,000 Special General Fund Total 8,787,686 8,500,000 8,500,000 - 8,500,000 City of Covina
General Fund Revenue Summary
Fiscal Year 2023-24
General Fund Expenditures:
The following table summarizes Fiscal Year 2023-24 General Fund expenditures by department. The table includes year to date expenditures as of January 31, 2024, recommended mid-year adjustments as well as projected year-end expenditure figures for Fiscal Year 2023-24.
The recommended expenditure mid-year adjustments represent a total increase of 1,105,380. Notably, the NonDepartmental amount 770,030 is being transferred to both the Building Maintenance & Public Liability funds.
This is due to the funds needing to be replenished due to repairs and also legal activity and settlements incurred by the City. For the departments, it is an increase of $335,350 for programs and services utilized for city operations. Special General Fund sees and increase in expenditures in the Capital Projects and Internal Services Funds. The increase to Capital Projects is due in part of items that inadvertently were not included in the carryover process. The transfer to Internal Services is to the Information Technology Fund for the Covina Police Department to obtain new radio units. General Fund Expenditures by department are further detailed in Attachment B.
Fund Balances:
The following table illustrates the General Fund budget including all the recommended mid-year adjustments, including the Measure CC fund. This balance meets the City’s goal of maintaining a minimum of 20% emergency reserve in the General Fund.
General Fund Expenditures 2023 2024 Adopted 2024 Revised Mid-Year 2024 Actual Budget Budget Adjustments Projected
Legislative 635,153 684,662 684,662 40,200 724,862
Administration 869,903 985,538 986,929 - 986,929
Finance 1,065,060 1,226,812 1,233,312 11,150 1,244,462
Non-Departmental (2,567,779) (1,814,245) (1,814,245) 770,030 (1,044,215) Human Resources 1,204,060 1,272,321 1,272,321 20,000 1,292,321 Police 23,322,366 23,826,173 24,168,853 154,000 24,322,853 Fire 9,000,222 10,542,624 10,542,624 - 10,542,624
Public Works 3,549,776 3,801,179 3,801,179 - 3,801,179
Parks and Recreation 3,701,753 4,325,339 4,330,461 10,000 4,340,461 Community Development 3,169,948 2,747,855 8,923,035 100,000 9,023,035 Total Gen. Fund Expenditures 43,950,462 47,598,259 54,129,131 1,105,380 55,234,512 2023 2024 Adopted 2024 Revised Mid-Year 2024
Actual Budget Budget Adjustments Projected
Transfer to General Fund - 6,117,619 6,192,619 - 6,192,619 Transfer to Capital Projects Funds 1,102,214 1,250,000 4,947,020 913,876 5,860,896 Transfer to Enterprise Funds 1,820,000 - 203,795 - 203,795 Transfer to Internal Services Funds 1,200,000 - - 486,546 486,546 Total Special Gen. Fund Expenditures 4,122,214 7,367,619 11,343,434 1,400,422 12,743,856 City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2023-24
Special General Fund Expenditures
All the recommended General Fund mid-year adjustments are summarized in Resolution CC 2024-10 (Attachment C) and detailed in Exhibit A.
Other Funds:
There are several adjustments recommended in various Special Revenue Funds, Capital Projects Funds, Enterprise Funds and Internal Service Funds as detailed in Attachment A. Primarily these adjustments represent clean-up items mostly pertaining to Grant funds that were expended in the prior FY and reimbursement revenues were received in the current FY, as well as a few budget items that were approved in the prior FY and inadvertently missed during the carryover process. Additional adjustments pertain to increases in Library grants and additional funding for Transportation, Capital Projects, and Internal Service Funds.
FISCAL IMPACT:
Should all the recommended mid-year adjustments be approved, the total revenue budget will be $141,938,319 and budgeted expenditures would total $188,207,930 citywide. The General Fund is projected to end the year with a fund balance of $10,178,101.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
2023-24 Mid-Year Projection June 30, 2023 June 30, 2024 Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 14,310,433 51,102,179 55,234,511 10,178,101 (4,132,332) 1095 Special General Fund (Transaction/Use Tax) 18,642,694 8,500,000 12,743,856 14,398,838 (4,243,856) 32,953,127 59,602,179 67,978,368 24,576,939 (8,376,189)
City of Covina
FY 2023‐24 Budget Mid‐Year Summary
Fund Description
June 30, 2023 Fund
Balance Revenue Budget
Mid‐Year
Adjustment
Available
resources
Expenditure
Budget
Mid‐Year
Adjustments
June 30, 2024
Fund Balance Chg
1010 General Fund 14,310,433 1, 50,073,259 028,920 65,412,612 1, 54,129,131 105,380 (4, 10,178,101 132,332) 1095 Special General Fund (Transaction/Use Tax) 18, 8, 642,694 500,000 27,142,694 1, 11,343,434 398,422 (4, 14,400,838 241,856) Total General Fund 32,953,127 1, 58,573,259 028,920 92,555,306 2, 65,472,565 503,803 (8, 24,578,939 374,189) 2020 Low Mod Housing Asset Fund 2,526,647 30,000 2, 2, 556,647 ( 953,943 (2, 397,296) 923,943) 2025 Housing Bond Proceeds 04 Priva 908,346 6,000 14,000 914,346 (8 900,346 ,000) 2055 2004 Bond‐Private 265,829 3,000 268,829 60,347 208,482 (205,482) 2100 Community Development Block Gr ‐ 4,527 487,161 491,688.00 4,527 487,161 ‐ ‐ 2120 Permanent Local Housing Allocation ‐ 1, 1, 269,711 1, 269,711 ‐ 269,711 ‐ 2185 Building Equipment Reserve 1,091 5,000 6,091 5,000 1,091 ‐2189 Heritage Tree Preservation 41,223 ‐ 41,223 41,223 0 (41,223)2200 Police Evidence Reserve 230,158 230,158 ‐ 230,1582205 Inmate Communication 29,623 ‐ 29,623 ‐ 29,623 ‐2221 Federal Treasury Narcotics 161,628 600 ‐ 162,228 600 162,228 2222 Federal Justice Narcotic Siezu 175,189 1,600 ‐ 176,789 ‐ 1,600 176,7892230 Other State Grants 0 60,000 641,596 701,596 0 701,596 (0)2246 Supplemental Law ‐ 160,000 160,000 40,974 119,026 40,974 2270 Other Federal Grants (2,352) 71,442 69,090 69,090 ‐ 2,352 2271 Justice Assistance Grant (13,062) 27,070 60 14,068 27,070 ( ‐ 13,002) 13,062 2278 Homeland Security Grant ‐ 45,577 45,577 45,577 ‐ ‐2285 COPS Grant ‐ 250,000 250,000 ‐ 250,000 ‐ 2290 Traffic Safety Fund 24,570 7,000 31,570 ‐ 31,570 7,0002300 State Gas Tax 188,507 1, 1, 452,615 1, 641,122 ( 705,775 ( 64,653) 253,160) 2310 Road Maintenance and Rehab 2,397,485 1, 3, 274,519 3, 672,004 75,179 596,825 (2,322,306) 2360 CA‐Strong Motion Instrumentati 12,173 ‐ 12,173 ‐ 12,173 ‐2365 SB1186 Fund 90,504 ‐ 90,504 16,500 74,004 (16,500)2370 CA‐Green Building Standards 3,457 ‐ 3,457 ‐ 3,457 ‐2400 Proposition A 1,954,936 1, 44,407 599,730 3, 2, 599,073 50,000 009,400 1, ( 539,673 415,263) 2405 Proposition C 1,571,924 1, 2, 219,398 2, 791,322 287,483 (1, 503,839 068,085) 2407 TDA ‐ 59,027 59,027 37,574 21,453 21,453 2410 Measure R 471,680 1, 910,048 1, 381,728 70,042 311,686 (401,638) 2420 Measure M 414,420 2, 2, 032,988 2, 447,408 ( 447,689 14,919 15,201) (399,500)2500 Air Quality Improvement 212,519 63,800 276,319 59,246 217,073 (153,273) 2510 Measure W 8,751,627 7,872,884 16,624,511 15,911,515 (8, 712,996 038,631) 2520 DOC Beverage Container Grant 20,044 12,885 54 32,983 20,044 54 12,885 (7,159)
City of Covina
FY 2023‐24 Budget Mid‐Year Summary
Fund Description
June 30, 2023 Fund
Balance Revenue Budget
Mid‐Year
Adjustment
Available
resources
Expenditure
Budget
Mid‐Year
Adjustments
June 30, 2024
Fund Balance Chg
2530 Oil Payment Program 1,898 7,998 ( 9,268 628) 7,998 ( 1,898 628) ‐ 2600 Cultural Arts 3,015 ‐ 3,015 ‐ 3,015 ‐2604 Quimby Fees 204,484 ‐ ‐ 204,484 ‐ 204,484 2700 Municipal Parking District 667,503 241,483 908,986 165,202 76,281 743,784 2710 Street Lighting Assessment Dis (56,331) 280,824 224,493 ( 256,364 24,460 31,871) 2720 Street Trees and Landscaping 515,082 207,517 90,651 722,599 631,948 116,866 2740 Community Facilities District 258,065 250,000 508,065 311,750 ( 196,315 61,750) 2750 Shoppers Lane Parking District 42,024 16,400 58,424 11,300 47,124 5,1002800 Literacy Grant ‐ 45,000 1,841 46,841 45,000 1,841 ‐ ‐ 2810 Library Equipment Reserve (23,634) 16,000 (7 16,000 ,634) ( ‐ 23,634) 2830 Other Library Grants 2,955 1,000 184,305 188,260 3,976 173,440 10,844 7,889 2890 PEG‐Public Education and Government 582,785 76,000 18,500 658,785 30,000 27,500 610,285 2920 Public Safety Donation 15,773 ‐ 15,773 ‐ 15,773 ‐2922 DARE Donation Admin 4,787 ‐ 4,787 ‐ 4,787 ‐2926 Gang & Graffiti Donation 922 ‐ 922 ‐ 922 ‐2927 Police Explorer Donation 15,298 ‐ 15,298 1,608 13,690 (1,608) 2930 Gang/Graffiti Scholarship Fund 679 ‐ 679 ‐ 679 ‐ 2931 Every 15 Minutes Admin 2,896 ‐ 2,896 ‐ 2,896 ‐2957 Playground Equip Replace Donat 5,941 ‐ 5,941 ‐ 5,941 ‐ 2958 Teen Program Fundraising 2,505 ‐ 2,505 ‐ 2,505 ‐ 2960 Parks & Recreation Donations 14,544 ‐ 14,544 ‐ 14,544 ‐2965 Youth Program Donations 11,483 ‐ 11,483 ‐ 11,483 ‐2966 Youth Sports Equip Donation 55,562 ‐ 55,562 ‐ 55,562 ‐2967 Volunteen Web Berger Grant 27,486 2,200 29,686 5,530 24,156 (3,330) 2968 Senior Fundraising Donations 6,272 ‐ 6,272 ‐ 6,272 ‐2969 Grandmothers Club Donations 2,008 ‐ 2,008 ‐ 2,008 ‐2970 Library Services‐Donation 42,833 ‐ 42,833 ‐ 42,833 ‐2971 Lib Book Donation 9,374 ‐ 9,374 ‐ 9,374 ‐2972 Library Services‐IT Donation 1,475 ‐ 1,475 ‐ 1,475 ‐2973 Gates Donation Fund 13,026 ‐ 13,026 ‐ 13,026 ‐2975 Lib Services‐Literacy Donation 10,933 ‐ 10,933 ‐ 10,933 ‐2976 Joseph J Borrello Memorial 86,216 ‐ 86,216 27,390 58,826 (27,390)
City of Covina
FY 2023‐24 Budget Mid‐Year Summary
Fund Description
June 30, 2023 Fund
Balance Revenue Budget
Mid‐Year
Adjustment
Available
resources
Expenditure
Budget
Mid‐Year
Adjustments
June 30, 2024
Fund Balance Chg
2990 ARPA 4,877,683 ‐ 4, 5, 877,683 ( 052,891 412,615) (4, 237,407 640,276) 4010 General CIP (74,892) 75,000 888,336 888,444 ( 888,633 0 189) 74,892 4050 Development Project Deposits 456,664 ‐ 456,664 ‐ 456,6644060 Covina iTEC Project fund ‐ ‐ ‐ ‐ ‐ ‐4200 Public Works CIP (86,945) ‐ 518,092 ‐ 431,147 ‐ 431,147 86,9454300 Transportation CIP (494,162) 4, ( 541,051 4, 46,889) 4, 000,000 (0) 000,000 494,162 4600 Parks and Recreation CIP (121,504) ( 23,094,302 183,793) 22,789,004 ( 22,854,656 200,000) 134,348.35 255,853 4630 Kahler Russell Park Gymnasium 111,540 ‐ ‐ 111,540 ‐ 111,540 4640 Joslyn Center Reconstruction 5,000 ‐ 5,000 ‐ 5,000 ‐4701 Impact Fees‐General Govt 231,178 ‐ ‐ 231,178 ‐ 231,178 4702 Impact Fees‐Library Admin 190,003 ‐ ‐ 190,003 ‐ 190,003 4703 Impact Fees‐Police Admin 90,826 ‐ 90,826 ‐ 50,000 40,826 (50,000) 4704 Impact Fees‐Park Fac Admin 53,632 ‐ 53,632 39,000 14,632 (39,000)4705 Impact Fees‐Streets Adm 793,849 ‐ 793,849 545,434 ( 248,415 545,434) 4706 Impact Fees‐Fire Admin 115,353 ‐ ‐ 115,353 ‐ 115,353 4707 Storm Water CFD 6,032 11,000 17,032 11,000 6,032 ‐6010 Water Utility Admin 4,650,809 10,956,700 15,607,509 12,808,575 2, 137,266 (1, 661,668 989,141) 6011 Water Capital Improvement Fund 7,179,086 8, 928,935 5, 108,021 ( 934,142 2, 576,000) (4, 749,879 429,207) 6200 Environmental‐Waste Mgmt 1,728,768 1, 2, 161,860 2, 890,628 22,274 214,457 (1, 653,897 074,871) 6300 Sewer Utility 7,030,321 3,131,283 4, 10,161,604 718,694 5, 123,230 (1, 319,680 710,641) 6400 Theatre Fund 1,116,896 1, 2, 022,008 1, 138,904 40,000 699,620 ( 399,284 717,612) 7010 Central Equipment Operations 2,533,414 1, 4, 984,384 2, 517,798 ( 681,581 1, 39,000) ( 875,217 658,197)7020 Building Maintenance 761,441 2,019,971 3, 500,000 2, 281,413 17,000 375,983 888,430 126,988 7200 Information Technology 1,993,035 1,328,154 3, 534,546 1, 855,735 703,054 1, 596,046 ( 556,635 436,400)7360 Worker's Compensation 1,254,924 1, 2, 108,485 1, 363,410 1, 108,485 0 254,925 7370 Public Liablity 1,515,768 1,661,488 3, 500,000 1, 677,256 1, 661,488 240,000 ( 775,768 740,000) 8186 Downtown District 642 9,000 ( 9,000 642) 9,000 ‐ (642) 8187 Prospero 238 5,625 ( 5,625 238) 5,625 ‐ (238)T800 OPEB Trust 1,178,456 1, 120,000 6,700 298,456 1,291,756 113,300 ZZZZ Default ‐ Employee Master ‐ ‐ ‐ ‐ ‐ ‐SXXX Successor Agency Funds 3, 5, 112,190 ‐ 524,840 8, 8, 637,030 2, 682,949 ( 854,694 (3, 45,919) 158,109) 96,129,395 3, 138,647,314 291,005 238,067,713 6, 181,289,617 918,313 ( 49,859,784 46,269,612)
2023 2024 2024 Mid-Year Projected
Legislative Actual Adopted Revised Adjustments Year End City Council 165,780 214,273 214,273 21,000 235,273
City Clerk 2,893 3,141 3,141 1,400 4,541
Elections 190,720 205,500 205,500 - 205,500
City Treasurer 2,789 2,748 2,748 1,300 4,048
City Attorney 272,972 259,000 259,000 16,500 275,500
635,153 684,662 684,662 40,200 724,862
2023 2024 2024 Mid-Year Projected
Administration Actual Adopted Revised Year End Year End City Manager 337,053 382,230 382,230 - 382,230
Economic Development 109,886 120,978 120,978 - 120,978
Public Information 126,328 92,969 92,969 - 92,969
Records Management 296,637 389,361 390,752 - 390,752
869,903 985,538 986,929 - 986,929
2023 2024 2024 Mid-Year Projected
Finance Actual Adopted Revised Year End Year End
Accounting 1,056,252 1,214,312 1,220,812 11,150 1,231,962 Duplicating 8,808 12,500 12,500 - 12,500
1,065,060 1,226,812 1,233,312 11,150 1,244,462
2023 2024 2024 Mid-Year Projected
Non Departmental Actual Adopted Revised Year End Year End Cost Allocation (2,822,874) (2,362,874) (2,362,874) - (2,362,874) Debt Service - 5,000 - - -
Intergovernmental 35,275 47,500 47,500 - 47,500
Community Outreach 37,328 63,000 63,000 - 63,000
General Obligation 4,900 - 5,000 - 5,000
Capital Lease 1,819 - - - -
Transfers Out 175,772 433,129 433,129 770,030 1,203,159 (2,567,779) (1,814,245) (1,814,245) 770,030 (1,044,215) 2023 2024 2024 Mid-Year Projected
Human Resources Actual Adopted Revised Year End Year End General Administration 515,117 494,492 494,492 20,000 514,492 General Insurance 688,942 777,829 777,829 - 777,829
1,204,060 1,272,321 1,272,321 20,000 1,292,321
2023 2024 2024 Mid-Year Projected
Police Department Actual Adopted Revised Year End Year End General Administration 6,068,840 5,674,696 5,704,796 29,000 5,733,796 Crime Prevention 461,770 514,936 557,615 - 557,615
Investigations 2,659,511 2,932,089 2,932,089 40,000 2,972,089 Patrol 9,258,045 9,553,951 9,853,951 75,000 9,928,951
Police Records 602,942 691,527 691,527 - 691,527
Jail 461,751 466,331 466,331 - 466,331
Canine 3,772 3,500 3,500 - 3,500
Traffic 489,116 556,728 556,728 - 556,728
Parking Control 554,569 484,540 484,540 - 484,540
Communications Svcs 1,295,581 1,543,392 1,543,392 10,000 1,553,392 Police Training 637,455 592,083 561,983 - 561,983
Computer Service 377,801 378,500 378,500 - 378,500
Disaster Preparation 76,584 59,500 59,500 - 59,500
Animal Control 374,629 374,400 374,400 - 374,400
23,322,366 23,826,173 24,168,853 154,000 24,322,853
City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2023-24
City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2023-24
2023 2024 2024 Mid-Year Projected
Fire Department Actual Adopted Revised Year End Year End Fire Suppression 9,000,222 10,542,624 10,542,624 - 10,542,624 9,000,222 10,542,624 10,542,624 - 10,542,624
2023 2024 2024 Mid-Year Projected
Public Works Actual Adopted Revised Year End Year End
General Administration 339,570 355,091 355,091 - 355,091 Civic Center - - - - -
Graffiti 123 600 600 - 600
Engineering 521,763 598,820 598,820 - 598,820
Streets 1,267,088 1,619,463 1,619,463 - 1,619,463
Street Lighting 295,842 - - - -
Traffic Control 83,827 - - - -
Yard Center (15) - - - -
Park Maint 1,041,577 1,227,205 1,227,205 - 1,227,205
3,549,776 3,801,179 3,801,179 - 3,801,179
2023 2024 2024 Mid-Year Projected
Parks And Recreation Actual Adopted Revised Year End Year End General Administration 758,474 749,191 749,191 - 749,191 Community Relations 220,427 227,764 227,764 - 227,764
Recreation Services 662,329 787,768 786,401 - 786,401
Community Programs 69,796 90,483 90,483 10,000 100,483
Senior Services 315,949 461,980 461,980 - 461,980
Community Parade 341,821 366,054 367,421 - 367,421
Community Special Events 13,859 44,143 44,143 - 44,143
Aquatics 284,775 328,352 328,352 - 328,352
Library Services 1,034,321 1,269,604 1,274,727 - 1,274,727 3,701,753 4,325,339 4,330,461 10,000 4,340,461
2023 2024 2024 Mid-Year Projected
Community Development Actual Adopted Revised Year End Year End General Administration 997,997 954,937 6,436,859 65,000 6,501,859 Planning 790,778 627,153 813,914 10,000 823,914
Planning Commission 17,103 17,688 17,688 - 17,688
Building Inspection 754,236 790,108 775,408 - 775,408
Code Enforcement 304,831 357,970 434,170 25,000 459,170 Housing - - 50,000 - 50,000
Business Assistance 305,004 - 394,996 - 394,996
3,169,948 2,747,855 8,923,035 100,000 9,023,035
Total Gen Fund 43,950,462 47,598,259 54,129,131 1,105,380 55,234,512
RESOLUTION CC 2024-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AUTHORIZING FISCAL YEAR 2023-2024 MID-YEAR
BUDGET ADJUSTMENTS
WHEREAS, on May 16, 2023, the City Council of Covina adopted Resolution CC 2023-36 adopting the Fiscal Year 2023-24 Budget for the City of Covina/Covina Public Financing Authority/Covina Housing Authority; and
WHEREAS, certain programs included in the Fiscal Year 2023-24 Budget will have revenue and expenditures which may vary from the adjusted budget; and WHEREAS, the City Council desires that the Fiscal Year 2023-24 Budget be adjusted for each of these programs to assure budgetary compliance; and WHEREAS, the cost center adjustments are reported in Exhibit A of this Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the budget adjustments to the City of Covina Fiscal Year 2023-24 Budget are adopted as listed in Exhibit A and the City Manager is authorized to implement the same.
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 20th day of February, 2024.
City of Covina, California
BY:
WALTER ALLEN, III, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
ATTACHMENT C Page 271 of 279
Resolution CC 2024-10 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-10 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 20th day of February, 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
_____________________________________
FABIAN VELEZ, Chief Deputy City Clerk
Account Object Project
Amount Increase /
(Decrease)
General Fund
Proposed Revenue Adjustments
General
Property Tax 10100000 40120 300,000
Gen Prop in Lieu of MVL 10100000 40187 400,000
Sales Tax 10100000 40200 (300,000)
Transient Occupancy Tax 10100000 40300 60,000
UUT - Telephone 10100000 40720 (21,000)
UUT - Electricity 10100000 40740 700,000
UUT Water 10100000 40780 (10,000)
Gen Fran 10100000 40820 (27,000)
Gen Fran- Refus 10100000 40880 50,000
Public Works
GF-Engineering-Eng Serv-O 10102100 43250 (250,000)
Parks & Recreation
Community Involvement fees 10103300 43328 10,120
Community Special Event fees 10103200 43311 (10,000)
Donations/Sponsorship 10103200 48100 11,800
Community Development
Code Enforcement Fines 10104200 44800 (15,000)
Building Permits 10104100 41200 35,000
Electrical Permits 10104100 41220 20,000
Plumbing Permits 10104100 41240 15,000
Mechanical Permits 10104100 41260 15,000
Planning Reviews 10104010 43400 25,000
Planning Zoning 10104010 43410 20,000
Proposed Expenditure Adjustments
City Council / Administration
Gen-City Council Attendance 10100310 50070 21,000
Gen-City Clerk Attendance 10100100 50070 1,400
Gen-City Treasurer Attendance 10100200 50070 1,300
City Attorney Fees 10100400 51200 16,500
Administrative Services
Gen-Finance Consulting 10100500 51005 5,000
Property Tax A 10100500 51170 6,150
Personnel Legal Fees 10100800 51250 20,000
City of Covina
FY 2023-24 Mid-Year Adjustments Summary
Account Object Project
Amount Increase /
(Decrease)
Police Department
Personnel Legal Fees 10101000 51250 4,000
Janitorinal 10101000 52300 5,000
Overtime Investigation 10101120 50030 40,000
Overtime Patrol 10101130 50030 75,000
Communications Maintenance other 10101410 52490 10,000
Other Legal expense 10101000 51290 20,000
Parks and Recreation
Regular Part-Time Employees 10103300 50015 10,000
Regular Part-Time Employees 10103500 50015 (20,000)
Buildings 10103500 55100 20,000
Community Development
Planning Legal Notice 10104010 53540 10,000
Consulting Fees 10104000 51005 50,000
Legal (CD Admin) 10104000 51290 15,000
Code Enforcement Overtime Unlicensed Vendors 10104200 50030 ULVEN 24,000 Code Enforcement Supplies Unlicensed Vendors 10104200 54000 ULVEN 1,000 Financial Services Prvd
Transfer-Internal Service Fund 10109900 59170 770,030
Special General Fund
Transfer - Capital Projects 10950000 59140 P2202 413,876 Gen Special General Trans 10950000 59140 50,000
Transfer-Capital Projects Fund 10953400 59140 P2207 450,000 Transfer - Internal Services Fund 10950000 59170 484,546 Special Revenue Funds
Community Development Block Grant
Community Development Block Grant Award 21004850 42050 85000 4,527 Community Development Block Grant Award 21004850 53750 85000 3,871 Community Development Block Grant Award 21004850 53760 85000 656 Federal Justice Narcotic Seizure
Motor Vehicle Repairs 2222XXXX 5XXXX 10,000
Other State Grants
High Frequency Communications Equipment 22301410 42190 HFCE 60,000 Other Federal Grants
Other Federal 22701120 42090 ATF23 71,442
Other Federal O.T. 22701120 50030 ATF23 69,090
Account Object Project
Amount Increase /
(Decrease)
Justice Assistance Grants
JAG Grant 22711120 42080 JAG22 60
Workers Compensation 22711120 50400 JAG22 (885)
Medicare Contribution 22711120 50110 JAG22 (173)
Regular Part-Time Employees 22711120 50015 JAG22 (11,944) Prop A
Property Rental Fees 24000000 43600 44,407
Prop A-Op-Metrolink Lawn/Landscape 2400TO01 52320 50,000 Measure M
Sidewalk Infrastructure 24202200 55250 P2312 (27,913)
Street Infrastructure 24202200 55310 T2101 (88,864)
Street Infrastructure 24202200 55310 P2008 (78,423)
Regular Full-Time Employees 24202200 50010 180,000
Doc Beverage Grant
DOC Beverage Grant - Revenue 25205550 42165 54
DOC Beverage Grant - General Supplies 25205550 54990 54 Oil Payment Program
Oil Payment Program - Revenue 25305550 42165 (628)
Oil Payment Program - Promo Supplies 2530-5550 54150 (628) Literacy Grant
Library Services Literacy Grant 28003900 42186 1,841
Regular Full-Time Employees 28003900 50010 1,841
Other State Grants
Other State Grants 28303900 42190 184,305
Regular Part-Time Employees 28303900 50015 (20,000)
Books 28303900 54100 13,976
Special Supplies 28303900 54350 10,000
Public Education Grant
Consulting Fees 28900920 51005 30,000
ARPA
Regular Full-Time Employees 29903500 50010 17,881
Child Care 29903550 53736 (300,000)
Grant Awards 29903300 53750 (50,000)
Janitorial 29901650 52300 6,825
Business Assistance 29904750 53785 (64,318)
Medicare Contribution 29904000 50110 (362)
Workers Compensation 29904000 50400 (238)
Regular Part-Time Employees 29904000 50015 (24,960)
Software Leases and Fees 29900700 51795 2,557
Account Object Project
Amount Increase /
(Decrease)
Capital Projects
General CIP
Transfer-General Fund 40100000 49110 50,000
Private Grant 40106100 48500 25,000
Regular Full-Time Employees 40104010 50010 CASMC (189)
Public Works CIP
Other State Grants/Subventions 42002200 42190 86,945
CIP-Public Works-Other Revenue 42002200 48990 P2405 431,147 CIP -Streets-Street Infrastructure-Street Residential Resurfacing Project 42002200 55310 P2405 431,147 Transportation CIP
Other Governmental Units 43002200 42990 P2010 (46,889)
Parks CIP
Prop A Discretionary 46003400 42240 P2109 (5,793)
Transfer-General Fund 46003400 49110 P2207 (178,000)
Improvements-Not Bldgs/Structr 46003400 55200 P2207 (200,000) Impact Fees (Police Admin)
Transfer to Internal Services Fund 47030000 59170 50,000 Enterprise Funds
Water Utility Admin
Water Utility- Billing Collection 60105005 51160 1,000
Water Utility-Production-Chemicals Supplies 60105060 54660 38,000 Transfer-Internal Service Fund 60105000 59170 98,266
Water Capital Improvement
Rowland Ave Water Project 60115060 55420 W2303 (576,000) Environmental Waste Management
Environmental-Street Sweeping-Maint-Street Infra 62005540 52412 13,800 Transfer-Internal Service Fund 62005550 59170 8,474
Sewer Utility
Transfer-Internal Service Fund 63002700 59170 123,230
Covina Theater
Electric Utilities 64003800 52120 30,000
Maintenance - Building and Structures 64003800 52400 10,000
Account Object Project
Amount Increase /
(Decrease)
Internal Service Funds
Central Equipment Operations
Motor Vehicles 70106010 55550 (39,000)
Building Maintenance Fund
Transfer-General Fund 70206100 49110 347,780
Transfer-Enterprise Fund 70206100 49160 152,220
Building Maintenance Telphone 70206100 52200 17,000
Information Technology
Transfer - General Fund 72006200 49110 534,546
IT - Software 72006200 51795 36,500
IT - Maintenance 72006200 52480 25,000
Police Radio Equipment 7200IT10 55XXX 534,546
Public Liability
Transfer-General Fund 73700870 49110 422,250
Transfer-Enterprise Fund 73700870 49160 77,750
Other Professional Fees 73700870 51890 140,000
Liability 73700870 53000 1,100,000
Business Area Enhancement Districts
Downtown District
Business Registration Downtown 81867700 40540 (642)
Prospero Park
Prospero Park District BusReg- 81870000 40550 (238)
Successor Agency Funds
Transfer to SACRA S3000000 59181 2,854,694
Transfer from SACRA RORF S5310000 49181 2,854,694
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: February 20, 2024
Title: Ordinance 24-XX, Adding a Utility/Trench Cut Fees Section to the City’s Municipal Code and Establishing Utility/Trench Cut Fees in the City-Wide Fee Schedule Presented by: Andy Bullington, Director of Public Works Rafael M. Fajardo, Deputy Director of Public Works/City Engineer Recommendation: Continue the Public Hearing to a date uncertain.
DISCUSSION:
Noticing for the proposed Utility/Trench Cut Fees Ordinance and adoption of fees was published for two consecutive weeks on February 1, 2024 and February 8, 2024 in the San Gabriel Examiner. Staff is requesting that the City Council continue the Public Hearing to a date uncertain. This extension will provide for additional time to review the proposed study, Ordinance and fees with potentially impacted parties. Following this process, the item will be added to the City Council’s calendar for further consideration.
Respectfully submitted,