Covina City Council
June 18, 2024

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA

Tuesday, June 18, 2024, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall

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

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

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

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

Pages

CLOSED SESSION

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

PUBLIC COMMENTS
The public is invited to comment on Closed Session items only at this time. To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

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

A. Government Code § 54957.6 – CONFERENCE WITH LABOR

NEGOTIATORS
Agency Designated Representative:

Chris Marcarello, City Manager
Update on ongoing negotiations with the various Employee Organizations:

American Federation of State, County and Municipal Employees (AFSCME and discussions with Unrepresented Employees: Executives and Mid-Management, Supervisory and Professional, and Confidential and Technical Employees B. Government Code § 54956.8 – CONFERENCE WITH REAL PROPERTY

NEGOTIATORS
Property: 114 E. Italia Street
Agency Negotiators: Chris Marcarello, City Manager, City of Covina Brian Lee, Community Development Director, City of
Covina
Negotiating Parties: TBD
Under Negotiation: Price and Terms of Payment
RECESS
JOINT MEETING—OPEN SESSION 7:30 PM

RECONVENE AND CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE
Led by Councilmember Allen

INVOCATION
Given by Police Chaplain Ron Butler

CLOSED SESSION REPORT

PRESENTATIONS
A. North America Multi-Family Community of the Year
B. Pride Month

PUBLIC COMMENTS
To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Those wishing to speak on a LISTED AGENDA ITEM will be heard when that item is addressed. Those wishing to speak on an item NOT ON THE

AGENDA will be heard at this time. State Law prohibits the Council/Agency/Authority Members from taking action on any item not on the agenda. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

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

CITY MANAGER COMMENTS

CONSENT CALENDAR PUBLIC COMMENTS
The public is invited to comment on Consent Calendar items only at this time. To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

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

CC 1. Payment of Demands 9
Staff Recommendation:

Approve Payment of Demands in the amount of $1,989,571.92.

CC 2. City of Covina Investment Report for Month Ended May 31, 2024 15 Staff Recommendation:

Receive and File.

CC 3. Lease of Automated License Plate Readers from Flock Group, Inc. 33 Staff Recommendation:

Approve a 2-year lease agreement and funding for five (5) additional Automated License Plate Reader Cameras from Flock Group, Inc. and waive bid requirement per CMC Section 2.20.080-Sole Source Purchase;

1. Adopt Resolution CC 2024-46 increasing the Police Department FY 2024-25 expenditure budget by $17,250.

2. CC 4. Agreement between All City Management Services Inc., and the City of Covina for Crossing Guard Service
43 Staff Recommendation:

Approve the agreement between All City Management Services, Inc. and the City of Covina for school crossing guard services for fiscal year 2024-25; and authorize the City Manager or his designee to execute the agreement; and

1. Approve the crossing guard cost sharing agreements between the City of Covina and Covina Valley Unified School District and Charter Oak Unified School District and authorize the City Manager or his designee

2.

to execute agreements.

CC 5. Adoption of Ordinances 24-04, 24-05, and 24-06 61 Staff Recommendation:

Adopt Ordinance 24-04 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zoning Code Amendment ZCA 22-6 amending Chapter 17.56 (Overlay Zone (Outdoor
Advertising Structures)) of the Covina Municipal Code to extend the S overlay to properties with C-P zoning adjacent to freeway right of way, establish advertising displays adjacent to landscape freeways as a conditionally permitted use, and establish requirements for such advertising displays; approving Zoning Change (ZCH) 24-1 amending the Zoning Map to establish an S overlay at 1270 E Garvey Street (APN 8447-031-052); and making findings under CEQA;

1. Adopt Ordinance 24-05 entitled, “An ordinance of the City Council of the City of Covina, California, Amending the Village Oaks Office Park Planned Community Development (PCD) District overlay zone consisting of Phase I (PCD 75-001) to modifying the sign criteria of the design guidelines for Phase I and make certain findings under CEQA; and

2. Adopt Ordinance 24-06 entitled, “An Ordinance of the City Council of the City of Covina, California, approving and adopting a Development Agreement (DA), between the City of Covina and Bulleting Displays, LLC;” related to a proposed advertising display adjacent to landscape freeway (freeway billboard) located at 1270 E. Garvey Street (APN:
8447-031-052).

3. CC 6. Establishment of Fiscal Year 2024-2025 Article XIIIB Appropriation Limit for the City of Covina
101
Staff Recommendation:

Adopt Resolution CC 2024-39 establishing the Fiscal Year 2024-2025 Article XIIIB Appropriation Limit for the City of Covina.

CC 7. Professional Services Agreement and Authorization for Sole-Source Purchase of Water Meters, Repair Parts and Supplies
107
Staff Recommendation:

Authorize a sole-source Professional Services Agreement with Ferguson Waterworks (authorized sole distributor) for the purchase of Neptune Technology Group water meter equipment and supplies in an amount not-toexceed $312,500 over a five-year term through June 30, 2029.

CC 8. Memorandum(s) of Understanding with Covina Valley Unified, Charter Oak Unified and Azusa Unified School Districts Regarding School Resource Officers
127
Staff Recommendation:

Approve the three Memorandums of Understanding (MOU) to assign School Resource Officers (SRO) within Covina Valley Unified, Charter Oak Unified and Azusa Unified School Districts and authorize the City Manager or his designee to execute the MOUs.

CC 9. AB481 Annual Report for 2023 141

Staff Recommendation:

Review and Approve AB481 Annual Report for 2023.

CC 10. Investment Policies for Fiscal Year 2024-2025 for the City of Covina and Successor Agency to the Covina Redevelopment Agency 171
Staff Recommendation:

Adopt Resolution CC 2024-36 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2024-2025 and adopt Successor Agency Resolution SA 2024-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2024-2025.

CC 11. Adoption of Ordinance 24-03 205
Staff Recommendation:

Adopt Ordinance 24-03 entitled, “An Ordinance of the City Council of the City of Covina, California, amending Sections 9.48.010 and 9.48.075 and adding Section 9.48.077 to Title 9 of the Covina Municipal Code updating definitions and establishing regulations for the use of the Covina Skate Park consistent with California Health & Safety Code Section 115800 and making a determination of exemption from CEQA”.

CC 12. Adopt Resolution CC 2024-33 Declaring the Intent to Levy and Collect Assessments on Vehicle Parking District No. 1 for Fiscal Year 2025 and Set Public Hearing for Protests in Relation Thereto
211
Staff Recommendation:

1. City Council to receive and file the Engineer’s Report; and Adopt Resolution CC 2024-33 declaring the City’s intention to levy and collect assessments on Vehicle Parking District No. 1 for Fiscal Year 2025 and setting the Public Hearing date for July 16, 2024 for hearing protests in relation thereto.

2. CC 13. Adopt Resolution CC 2024-37 Ordering the Engineer’s Report and Resolution CC 2024-38 Approving the Engineer’s Report and Declaring the Intent to Levy and Collect Assessments on Covina Landscaping District No. 1 for FY 2025 and Set Public Hearing
231
Staff Recommendation:

Adopt Resolution CC 2024-37 ordering the City’s Assessment Engineer to prepare and file a report levying assessments within the Covina Landscaping District No. 1 for Fiscal Year 2025; and

1. Adopt Resolution CC 2024-38 approving the Engineer’s Report and declaring its intention to levy and collect assessments on the Covina Landscaping District No. 1 for Fiscal Year 2025 and setting the Public Hearing date for July 16, 2024 for hearing protests in relation thereto.

2. CC 14. Adopt Resolution CC 2024-34 Ordering the Engineer’s Report & Resolution CC 2024-35 Approving the Engineer’s Report and Declaring the Intent to Levy & Collect Assessments for Covina’s Lighting District No. 1978- 79 for FY 2025 & Set Public Hearing
293
Staff Recommendation:

Adopt Resolution CC 2024-34 ordering the City’s Assessment Engineer to prepare and file a report levying assessments within the Covina Lighting District No. 1978-79 for Fiscal Year 2025; and

1.

Adopt Resolution CC 2024-35 approving the Engineer’s Report and declaring its intention to levy and collect assessments on the Covina Lighting District No. 1978-79 for Fiscal Year 2025 and setting the Public Hearing date for July 16, 2024 for hearing protests in relation thereto.

2. CC 15. Consideration to Approve Memorandums of Understanding and Salary Schedules between the City of Covina and the Police Association of Covina; the Police Supervisors of Covina and the Police Management Group 377
Staff Recommendation:

Adopt Resolution CC 2024-47, Resolution CC 2024-48 and Resolution CC 2024-49 approving the salary schedules and Memorandums of Understanding between the City of Covina and The Police Association of Covina (“PAC”); the Police Supervisors of Covina (“PSC”) and the Police Management Group (“PMG”) for a four-year period, July 1, 2024 – June 30, 2028.

CC 16. Rowland Avenue Street Rehabilitation Project – Project No. P2204 & P2314 – Final Acceptance and Filing Notice of Completion 385
Staff Recommendation:

1. Accept the work performed by Gentry Brothers, Inc; and Authorize the City Clerk to file a Notice of Completion for the Rowland Avenue Street Rehabilitation Project – Project No. P2204 & P2314.

2. CC 17. Confirm and Approve City Council’s Appointments to Various City of Covina Boards and Commissions
391
Staff Recommendation:

Approve the City Council’s appointments to various City of Covina Boards and Commissions.

CC 18. Renewal of Subrecipient Agreements for Senior Case Management and Senior Nutrition Program Services with YWCA of San Gabriel Valley for FY 2024-2025
393
Staff Recommendation:

Approve the renewal of Subrecipient Agreements for Senior Case Management and Senior Nutrition Program Services with YWCA of San Gabriel Valley for FY 2024-2025 and authorize the City Manager to execute the Agreements.

CC 19. Award of Professional Services Agreement to Compressor Design & Services, Inc for Monthly Preventative Maintenance of the City’s Compressed Natural Gas (CNG) Station at the Public Works Yard
447
Staff Recommendation:

Authorize the City Manager to execute a Professional Services Agreement with Compressor Design & Services, Inc. for monthly preventative maintenance of the City’s CNG station at the Public Works Yard for the period between July 1, 2024, through June 30, 2027, for an amount not-to-exceed $45,000 with the option to extend the agreement for an additional two (2) one-year terms through June 30, 2029.

CC 20. Accept a Grant in the Amount of $39,250 from the State of California Alcohol Beverage Control (ABC)
469
Staff Recommendation:

Adopt Resolution CC 2024-43 accepting grant allocation from the California Department of Alcohol Beverage Control in the amount of $39,250 and increasing the Police Department Fiscal Year 2024-25 budget by the same amount; and

1. Authorize the City Manager or his designee to sign all necessary documents associated with this grant including agreements and assurances that are forthcoming.

2. CC 21. An Amendment to the Ground Lease between the City of Covina and the Covina Housing Authority for Property Owned by the City Located at the Southeast Corner of the Combined Parcels of 601 E. San Bernardino Road and 534 North Barranca Avenue
473
Staff Recommendation:

Authorize the City Manager/Executive Director to execute an amendment to the Ground Lease (“Lease”) between the City of Covina (“City”), as landlord, and the Covina Housing Authority (“Authority”), as tenant, in substantially the form attached as Attachment “B” with such changes therein as the City Manager/Executive Director may approve, and all related documents, and to take such actions as they deem necessary or proper to effectuate the purpose of the Lease.

CC 22. Acceptance of California Highway Patrol Grant Funding 521 Staff Recommendation:

Approve Resolution CC 2024-44 accepting $427,120.68 in grant funding from the Cannabis Tax Fund Grant Program (CTFGP) under the California Highway Patrol;

1. Increase the Police Department FY 2024-25 budget to allocate said funding; and

2. Authorize the City Manager or his designee to execute the grant documents that are forthcoming.

3. CC 23. Police Vehicle Purchase 527
Staff Recommendation:

Approve the purchase of a new police vehicle in the amount of $55,871.74 and vehicle retrofitting for $20,000.

PUBLIC HEARINGS
PH 1. Entitlement Applications for a Proposed Avid Hotel Development at 578 N. Azusa Avenue
533
Staff Recommendation:

City Council approval of:

Resolution CC 2024-40, Initial Study/Mitigated Negative Declaration (IS/MND) with Mitigation Monitoring and Reporting Programs (MMRPs) as adequately prepared in accordance with the California Environmental Quality Act (CEQA);

1. Waive full reading and introduce Ordinance 24-07, entitled “An Ordinance of the City Council of the City of Covina, California, Adopting Planned Community Development (PCD) 21-2, to Allow for the Development of a 0.84-Acre Site for a Hotel Use Consisting of 68

2.

Rooms, Surface Parking on a 36,732-Square-Foot Site, Alley Relocation, and Associated Site Improvements, Located at 578 N.

Azusa Avenue (Apns 8432-006-015 And 8432-006-017)”;

3. Resolution CC 2024-41, Tentative Parcel Map No. 84397; and Resolution CC 2024-42, Conditional Use Permit (CUP) 21-29, and Site Plan Review (SPR) 21-160, to allow for the development of a hotel use and alley relocation, for the property located at 578 N. Azusa Avenue (APNs 8432-006-015 and 8432-006-017).

4. PH 2. Entitlement Applications for a Proposed Three-Story, 75-Unit Residential Townhome Development, for Property Located at 747 N. Barranca Avenue 1367
Staff Recommendation:

City Council approval of Vesting Tentative Tract Map (VTTM) No. 84311, Site Plan Review (SPR) 23-253 and, a determination of exemption from the California Environmental Quality Act (CEQA).

ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for July 2, 2024, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

CITY OF COVINA AND

SUCCESSOR AGENCY TO THE

COVINA REDEVELOPMENT AGENCY

AGENDA ITEM REPORT
ITEM NO. CC 1
Meeting: June 18, 2024
Title: Payment of Demands
Presented by: Anita Agramonte, Administrative Services Director Recommendation: Approve Payment of Demands in the amount of $1,989,571.92.

EXECUTIVE SUMMARY/BACKGROUND:

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

Accounts Payable Warrants May 17, 2024 – May 30, 2024
CITY checks/EFTs $ 917,191.17
CITY payroll $ 1,062,317.48
CITY voids $ (18,390.00)
Worker’s Comp $ 22,304.93
$ 1,983,423.58
SACRA checks/EFTs $ 725.81
SACRA payroll $ 5,422.53
$ 6,148.34
TOTAL checks/EFTs $ 1,989,571.92
DISCUSSION:

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

FISCAL IMPACT:

Sufficient funding is available and the related costs are included in the Fiscal Year 23/24 Budget.

Respectfully submitted,

CITY OF COVINA
Check Register
May 17, 2024 - May 30, 2024
Check # Check Date Vendor Name Amount
5954 05/23/2024 4003 MidAmerica 2,308.40
5955 05/23/2024 487 CalPERS 1,675.19
20821 05/23/2024 788 COVINA, CITY OF 47,526.46
20822 05/23/2024 789 COVINA-FSA, CITY OF 570.84
20823 05/23/2024 2033 NATIONWIDE RETIREMENT SOLUTIONS 27,241.28 20824 05/23/2024 487 CalPERS 94,472.52
subtotal EFT/wires/direct deposits $ 173,794.69
121471 05/22/2024 58 ADVANTAGE 14,779.74
121472 05/22/2024 269 BAKER AND TAYLOR INC 1,193.65
121473 05/22/2024 381 BOOMERANG BLUEPRINT 142.15
121474 05/22/2024 477 EMPLOYMENT DEVELOPMENT DEPT 6,443.00 121475 05/22/2024 649 CINTAS CORP #693 629.58
121476 05/22/2024 700 COLLEY FORD 275.35
121477 05/22/2024 749 BOHL PH.D., NANCY K. 835.00
121478 05/22/2024 762 COVINA CHAMBER OF COMMERCE 175.00 121479 05/22/2024 783 CITY OF COVINA WATER 127.68
121480 05/22/2024 849 DAPEER ROSENBLIT & LITVAK LLP 4,956.63 121481 05/22/2024 957 E.G. BRENNAN & CO. LLC 235.00
121482 05/22/2024 1055 FEDEX 183.19
121483 05/22/2024 1156 THE GAS COMPANY 4,045.98
121484 05/22/2024 1204 GOLDEN STATE WATER COMPANY 83.69 121485 05/22/2024 1275 HAAKER EQUIPMENT CO 1,001.62
121486 05/22/2024 1361 HOLLIDAY ROCK CO INC 1,948.13
121487 05/22/2024 1571 KING BOLT CO 27.41
121488 05/22/2024 1603 COUNTY OF LOS ANGELES 672.00
121489 05/22/2024 1612 LA CNTY DEPT OF PUBLIC WORKS 2,174.07 121490 05/22/2024 1615 REGIONAL TAP SERVICE CENTER 40.00 121491 05/22/2024 1633 LACPCA 500.00
121492 05/22/2024 1792 MANNING & MARDER KASS, 13,077.50 121493 05/22/2024 1991 MOTOROLA 10,906.52
121494 05/22/2024 1993 MPLC 717.16
121495 05/22/2024 2027 NAPA AUTO PARTS 644.23
121496 05/22/2024 2091 O REILLY AUTO PARTS 202.86
121497 05/22/2024 2277 POLLARD WATER 212.61
121498 05/22/2024 2329 PUENTE READY MIX INC 1,578.94
121499 05/22/2024 2345 QUILL 116.24
121500 05/22/2024 2407 REGIONAL TAP SERVICE CENTER 376.70 121501 05/22/2024 2510 S & S WORLDWIDE INC 844.46
121502 05/22/2024 2667 SIRSIDYNIX 890.00
121503 05/22/2024 2676 SMART AND FINAL IRIS CORP 527.22 121504 05/22/2024 2852 THREE VALLEY MUN WATER DISTR 5,285.58 121505 05/22/2024 2855 CHARTER COMMUNICATION 149.58
121506 05/22/2024 3001 VERIZON WIRELESS 1,724.47
121507 05/22/2024 3052 WATERLINE TECHNOLOGIES INC 2,240.28 121508 05/22/2024 3070 WEST COAST ARBORISTS INC 2,710.00 121509 05/22/2024 3080 WESTERN EMULSIONS INC 798.76
121510 05/22/2024 3082 WESTERN WATER WORKS SUPPLY 413.44 121511 05/22/2024 3152 YWCA 547.80
121512 05/22/2024 3584 ENTERPRISE SECURITY INC 455.00
121513 05/22/2024 3749 JCL TRAFFIC SERVICES 3,880.18
121514 05/22/2024 3988 LANDSCAPE WAREHOUSE III 490.18
121515 05/22/2024 4024 PERFORMANCE TRUCK REPAIR INC 7,974.48 Attachment A Page 1 of 4

CITY OF COVINA
Check Register
May 17, 2024 - May 30, 2024
Check # Check Date Vendor Name Amount
121516 05/22/2024 4065 VERIZON BUSINESS SERVICES 843.76 121517 05/22/2024 4201 OFFICE TEAM - A ROBERT HALF COMPANY 476.25 121518 05/22/2024 4236 ADT SECURITY SERVICES 986.76
121519 05/22/2024 4247 UNITED WATER WORKS INC 9,526.49
121520 05/22/2024 4374 ADMINSURE, INC 7,093.92
121521 05/22/2024 4389 EMPLOY AMERICA 2,580.00
121522 05/22/2024 4432 GONZALEZ GOODALE ARCHITECTS 5,180.00 121523 05/22/2024 4433 JAIME YAMASHITA 2,537.50
121524 05/22/2024 4455 FRONTIER 602.90
121525 05/22/2024 4667 Ocean Blue Environmental Services, Inc. 9,158.00 121526 05/22/2024 4688 PCAM, LLC 37,487.05
121527 05/22/2024 4719 O.S.T.S. Inc. 837.00
121528 05/22/2024 4817 Weck Analytical Environmental Services, Inc. 144.00 121529 05/22/2024 4824 Occu-Med, Ltd. 1,683.90
121530 05/22/2024 4833 Michael R. Hillmann 2,080.00
121531 05/22/2024 4835 ABBA TERMITE & PEST CONTROL, INC 125.00 121532 05/22/2024 4863 La Verne Power Equipment 1,949.09 121533 05/22/2024 5080 Spohn Ranch, Inc. 284,867.67
121534 05/22/2024 5109 SITEREP CONSTRUCTION SERVICES, INC. 18,061.31 121535 05/22/2024 5138 Ricoh USA, Inc. 299.63
121536 05/22/2024 5169 Occupational Health Centers of California 308.00 121537 05/22/2024 5213 TANGLED WEB SOLUTIONS: INVESTIGATIONS 1,665.00 121538 05/22/2024 5220 GREENFIELD OUTDOOR FITNESS, INC 176.40 121539 05/22/2024 5228 ODP BUSINESS SOLUTIONS, LLC 310.61 121540 05/22/2024 5291 AMAZON CAPITAL SERVICES, INC 2,055.94 121541 05/22/2024 5354 MALLORY SAFETY & SUPPLY LLC 1,044.50 121542 05/22/2024 5433 BOWMAN INFRASTRUCTURE ENGINEERS LTD 370.00 121543 05/22/2024 5480 INVESTIGATIVE RESOURES INC 350.00 121544 05/22/2024 5499 GOODMAN CAPITAL FINANCE 2,040.83 121545 05/22/2024 5506 QUALITY AUTO SUPPLY INC 52.83
121546 05/22/2024 5522 IMPERIAL COUNTY OFFICE OF EDUCATION 2,165.76 121547 05/22/2024 99999 ALEXANDER FUJUNG AW 41.83
121548 05/22/2024 99999 ANGIE YU 29.20
121549 05/22/2024 99999 ANNETTE GREEN 69.92
121550 05/22/2024 99999 ANTHONY ORJI 255.87
121551 05/22/2024 99999 CHARLES ALLEY 16.12
121552 05/22/2024 99999 DEEANNA TORRES 81.71
121553 05/22/2024 99999 JOHN RADFORD 48.58
121554 05/22/2024 99999 JOHN WRIGHT 52.10
121555 05/22/2024 99999 NAT TORBEY 56.42
121556 05/22/2024 99999 NORMAN YOUSIF 390.00
121557 05/22/2024 99999 PACIFIC GENERAL CONTRACTOR BUILDERS, INC. 1,499.27 121558 05/22/2024 99999 SULLY-MILLER CONTRACTING CO 471.78 121559 05/22/2024 99999 SULLY-MILLER CONTRACTING CO. 323.27 121560 05/23/2024 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 4,338.09 121561 05/23/2024 69 AFSCME District Council 36 686.72
121562 05/23/2024 775 COVINA POLICE ASSOCIATION 3,250.00 121563 05/23/2024 878 DELTA DENTAL OF CALIFORNIA 9,212.51 121564 05/23/2024 3795 PRE-PAID LEGAL SERVICES, INC 138.53 121565 05/23/2024 3846 CLEA 1,120.00
121566 05/23/2024 4255 RELIASTAR LIFE INSURANCE COMPANY 4,514.18 121567 05/23/2024 4710 Fidelity Security Life Insurance Company 976.40 Attachment A Page 2 of 4

CITY OF COVINA
Check Register
May 17, 2024 - May 30, 2024
Check # Check Date Vendor Name Amount
121568 05/29/2024 113 ALL CITY MANAGEMENT SVC 14,049.60 121569 05/29/2024 123 WALTER ALLEN III 1,143.99
121570 05/29/2024 219 AT&T 527.55
121571 05/29/2024 245 AVILA, MONIQUE 329.70
121572 05/29/2024 254 AZUSA LIGHT & WATER 36.50
121573 05/29/2024 568 CAT SPECIALTIES INC 952.55
121574 05/29/2024 717 COMPLETE PAPERLESS SOLUTIONS 28,550.00 121575 05/29/2024 775 COVINA POLICE ASSOCIATION 50.00
121576 05/29/2024 878 DELTA DENTAL OF CALIFORNIA 183.03 121577 05/29/2024 880 DEMCO INC 101.27
121578 05/29/2024 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 11,245.00 121579 05/29/2024 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 552.00 121580 05/29/2024 970 EDISON CO 6,242.83
121581 05/29/2024 1055 FEDEX 36.79
121582 05/29/2024 1075 WEX BANK 369.67
121583 05/29/2024 1156 THE GAS COMPANY 21.90
121584 05/29/2024 1215 GONZALES, RICHARD 600.60
121585 05/29/2024 1235 GRAINGER 959.11
121586 05/29/2024 1255 GRISWOLD INDUSTRIES 3,238.37
121587 05/29/2024 1275 HAAKER EQUIPMENT CO 3,796.01
121588 05/29/2024 1361 HOLLIDAY ROCK CO INC 489.19
121589 05/29/2024 1364 HOME DEPOT CREDIT SERVICES 7,615.81 121590 05/29/2024 1619 LA CNTY SHERIFF'S DEPT 253.50
121591 05/29/2024 1825 MASONIC HOMES OF CALIFORNIA 150.00 121592 05/29/2024 1933 MISSION LINEN SUPPLY 18.96
121593 05/29/2024 2309 PROFESSIONAL ACCOUNT MANAGEMENT LLC 8,578.08 121594 05/29/2024 2444 RIO HONDO COLLEGE 100.00
121595 05/29/2024 2466 RODRIGUEZ, DAVID 112.93
121596 05/29/2024 2711 SOUTHEAST CONSTRUCTION INC 342.15 121597 05/29/2024 2736 STAPLES BUSINESS ADVANTAGE 1,238.19 121598 05/29/2024 2800 T MOBILE USA 377.07
121599 05/29/2024 2804 TAG AMS INC 235.00
121600 05/29/2024 2818 GABE BF VAN LEEUWEN 367.50
121601 05/29/2024 2846 THOMAS, TERRI 1,886.70
121602 05/29/2024 2855 CHARTER COMMUNICATION 390.89
121603 05/29/2024 2929 ULINE 105.78
121604 05/29/2024 3023 VULCAN MATERIALS COMPANY 989.93
121605 05/29/2024 3187 WAGONER, PAMELA 1,731.81
121606 05/29/2024 3190 LAYNE, JONATHAN DANIEL 1,272.60
121607 05/29/2024 3235 COOK, SHAWNA 1,099.00
121608 05/29/2024 3614 PAPER RECYCLING AND SHREDDING SPECIALISTS INC 800.00 121609 05/29/2024 3718 NADENE VALDEZ 539.00
121610 05/29/2024 3771 BLACK & WHITE EMERGENCY VEHICLES 133.46 121611 05/29/2024 3982 CAROL A CUGNO 1,180.20
121612 05/29/2024 4089 MEASOM, DEVIN THOMAS 1,759.80
121613 05/29/2024 4379 789, Inc. 4,958.33
121614 05/29/2024 4455 FRONTIER 211.02
121615 05/29/2024 4483 DALE A. GARRISON 189.00
121616 05/29/2024 4710 Fidelity Security Life Insurance Company 19.61 121617 05/29/2024 4719 O.S.T.S. Inc. 2,025.00
121618 05/29/2024 4766 HASA, INC. 958.22
121619 05/29/2024 4804 Vihulu L. Villagran 367.50
Attachment A Page 3 of 4

CITY OF COVINA
Check Register
May 17, 2024 - May 30, 2024
Check # Check Date Vendor Name Amount
121620 05/29/2024 4817 Weck Analytical Environmental Services, Inc. 179.00 121621 05/29/2024 4829 Alicia A. Flores 506.80
121622 05/29/2024 4925 Humane Society of Pomona Valley, Inc. 24,383.67 121623 05/29/2024 4931 Antonio Castro Jr 3,089.86
121624 05/29/2024 5075 Amalia Q. Seresinghe 1,484.00
121625 05/29/2024 5109 SITEREP CONSTRUCTION SERVICES, INC. 32,496.00 121626 05/29/2024 5167 Mitsogo Inc. 4,309.20
121627 05/29/2024 5252 THE YOGA DANCE CO 747.24
121628 05/29/2024 5269 CONTROL AIR ENTERPRISES LLC. 4,861.00 121629 05/29/2024 5423 SUSAN T SCHOCK 189.00
121630 05/29/2024 5503 NICHOLS CONSULTING ENGINEERS CHTD 6,183.75 121631 05/29/2024 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 25,500.00 121632 05/29/2024 99999 CASEY FERRELL 3,940.00
121633 05/29/2024 99999 CHENG-WEI SUN 204.00
121634 05/29/2024 99999 HECTOR DELGADO 400.16
121635 05/29/2024 99999 ROBERT FISHER 19.00
121636 05/29/2024 99999 VICTOR LINARES 281.25
subtotal checks $ 744,122.29
120733 03/27/2024 99999 NORMAN YOUSIF (390.00)
121332 05/08/2024 4687 Mighty Oak Technnology (18,000.00) subtotal voids $ (18,390.00)
payroll (05/23/24) $ 1,067,740.01
payroll ( / / ) $ -
workers' compensation $ 22,304.93
TOTAL checks/EFTs $ 1,989,571.92
Attachment A Page 4 of 4

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 2
Meeting: June 18, 2024
Title: City of Covina Investment Report for Month Ended May 31, 2024 Presented by: Anita Agramonte, Administrative Services Director Charles Russom, Management Analyst
Recommendation: Receive and File.

EXECUTIVE SUMMARY:

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

DISCUSSION:

The attached report for the City and Successor Agency reflects the portfolio balances for the month ended May 31, 2024. The report is in conformity with the City’s Investment Policy as well as Government Code 53601. In accordance with the City's Investment Policy, the City Council authorizes staff to continue investing the City's idle funds in similar securities as those presented in these reports attached hereto. There are sufficient funds to meet the pooled expenditure requirements for all City funds for the next 6 months.

FISCAL IMPACT:

None to receive and file.

Respectfully submitted,

CASH AND INVESTMENT BALANCE 4/30/2024 $95,994,405.34
RECEIPTS 5/1/24-5/31/24 20,392,968.32

DISBURSEMENTS 5/1/24-5/31/24 (16,661,707.87)
CASH AND INVESTMENT BALANCE 5/31/2024 $99,725,665.79

ANALYSIS OF CASH AND INVESTMENT BALANCE - BOOK VALUE
INVESTMENT PORTFOLIO Attachment A-2 $63,957,427.43
LOCAL AGENCY INVESTMENT FUND Attachment A-4 30,326,271.15 TOTAL PUBLIC INVESTMENTS 94,283,698.58
CHECKING / PETTY / STIFEL CASH BALANCES 5,441,967.21
CASH AND INVESTMENT BALANCE 5/31/2024 99,725,665.79
CASH HELD BY BOND TRUSTEES 3,422,334.07
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANCE 5/31/2024 $103,147,999.86

CITY OF COVINA INVESTMENT REPORT
FOR THE MONTH ENDED MAY 31, 2024
The purpose of this report is to provide readers with the overall cash position of the City. There is sufficient investment liquidity to meet the pooled expenditures of all City’s funds for the next 6 months.

Attachment A -City

BOOK ACQUISITION MATURITY MARKET

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

Drawer & Petty Cash N/A $7,847.45 N/A N/A $7,847.45
General - Checking Account BMO 2,392,050.46 N/A Demand 2,392,050.46 Public Agency Saving - Parking Fines BMO 59,460.64 N/A Demand 59,460.64 Utility Billing Account BMO 124,596.36 N/A Demand 124,596.36 Workers' Compensation - Checking Account BMO 59,681.78 N/A Demand 59,681.78 Payroll - Checking Account BMO 99,381.75 N/A Demand 99,381.75 Money Market BMO 2,327,981.12 N/A Demand 2,327,981.12
AFLAC Flexible Spending Account BMO 18,718.89 N/A Demand 18,718.89 STIFEL Cash Per GL Various 352,248.76 Various Various 352,248.76 STIFEL Investment Portfolio Various 63,957,427.43 Various Various 63,338,005.12 Local Agency Investment Fund State of California 30,326,271.15 N/A Demand 30,326,271.15 Subtotal (A) $99,725,665.79 $99,106,243.48
Cash Held With 3rd Party Administrator:

TRIP 2017A Covina Wilmington Trust $290,342.55 N/A Demand $290,342.55 LA County Loan Agreement U.S. Bank 1,750,073.77 N/A Demand 1,750,073.77 Other Post-Employment Benefits Charles Schwab 1,380,568.07 N/A Demand 1,380,568.07 2021 Taxable Pension Obligation Bonds U.S. Bank 1,349.50 N/A Demand 1,349.50 2019 Wastewater Refunding Bonds U.S. Bank 0.18 N/A Demand 0.18 Subtotal (B) $3,422,334.07 $3,422,334.07
TOTAL (A+B) $103,147,999.86 $102,528,577.55

CITY OF COVINA

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED MAY 31, 2024
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.

S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\May 2024\May 2024 Investment Report\CITY -ATTACH A-1 Attachment A-1 CITY Page 18 of 2700 Exhibit A-2

CITY OF COVINA
Stifel
Investment Portfolio as of
May 2024
Investment Detail as of
May 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Agric MTG CorpMedium Term Note 06/30/22 91.306000 1,000,000 $ 915,357.70 0.9400 31422XGQ9 10/26/2026 Stifel FEDL Agric MTG CorpMedium Term Note 10/12/22 99.576000 1,000,000 1,000,000.00 5.1000 3134GX4R2 10/28/2025 Stifel Total Agricultural Mortgage 2,000,000 $ 1,915,357.70
FEDL Farm Credit Bank Bond 02/02/22 97.573000 1,000,000 $ 998,647.01 1.3200 3133ENLU2 1/21/2025 Stifel FEDL Farm Credit Bank Bond 02/02/22 92.016000 1,000,000 996,151.59 1.5000 3133ENKV1 1/13/2027 Stifel Federal Farm Credit Bank Bond 04/07/22 95.847000 1,000,000 1,011,663.04 3.1500 3133EJDV8 3/22/2027 Stifel FEDL Farm Credit Bank Bond 01/10/23 99.600000 1,000,000 1,000,000.00 5.1400 3133EN6C9 1/18/2028 Stifel Total Federal Farm Credit 4,000,000 $ 4,006,461.64

Investment Detail as of
May 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
FEDL Home Loan Bank Bond 02/02/22 96.573000 1,000,000 $ 1,017,502.22 2.6250 3130A6ZQ3 12/12/2025 Stifel FEDL Home Loan Bank Bond 04/07/22 96.062000 1,000,000 1,006,775.27 3.0000 3130A2VE3 9/11/2026 Stifel FEDL Home Loan Bank Bond 06/30/22 99.932000 1,000,000 1,000,047.77 3.1250 3130ASHK8 6/14/2024 Stifel FEDL Home Loan Bank Bond 06/30/22 97.731000 1,000,000 952,708.25 1.0000 3130AQF40 12/20/2024 Stifel FEDL Home Loan Bank Bond 10/12/22 99.449000 1,000,000 1,000,000.00 5.4100 3130ATN94 10/18/2027 Stifel FEDL Home Loan Bank Bond 10/12/22 99.337000 1,080,000 1,079,730.00 5.5000 3130ATMD6 10/27/2027 Stifel FEDL Home Loan Bank Bond 01/09/23 99.683000 2,000,000 2,000,000.00 5.0000 3130AUGG3 1/24/2025 Stifel FEDL Home Loan Bank Bond 02/06/23 99.947000 1,000,000 1,000,000.00 5.5000 3130AUTV6 2/24/2028 Stifel FEDL Home Loan Bank Bond 02/13/23 100.011000 1,000,000 1,000,000.00 5.6000 3130AUXK5 3/9/2026 Stifel FEDL Home Loan Bank Bond 02/21/23 99.907000 1,000,000 1,000,000.00 5.3500 3130AV3C4 3/7/2025 Stifel FEDL Home Loan Bank Bond 02/22/23 99.524000 1,000,000 1,000,000.00 5.3000 3130AV4C3 3/9/2028 Stifel FEDL Home Loan Bank Bond 04/10/23 99.852000 1,000,000 1,000,000.00 5.5000 3130AVMT6 4/28/2028 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 04/24/23 99.466000 1,000,000 1,000,000.00 5.1500 3134GYQT2 5/1/2026 Stifel FEDL Home Loan Bank Bond 05/09/23 99.877000 1,000,000 1,000,000.00 5.0500 3130AVZG0 5/15/2028 Stifel FEDL Home Loan Bank Bond 05/17/23 99.827000 1,000,000 1,000,000.00 5.6000 3130AW5P1 5/25/2028 Stifel FEDL Home Loan MTG Corp
Medium Term Note 06/01/23 99.672000 1,000,000 1,000,000.00 5.8500 3134GYTL6 12/14/2027 Stifel FEDL Home Loan Bank Bond 06/06/23 99.900000 1,000,000 1,000,000.00 5.5000 3130AWD80 6/12/2026 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 10/23/23 99.945000 1,000,000 1,000,000.00 6.0000 3134H1HY2 10/30/2028 Stifel FEDL Home Loan MTG CorpPool #WN2479 12/04/23 98.734700 1,000,000 993,437.50 4.9400 3132XGXH4 5/1/2028 Stifel FEDL Home Loan Bank Bond 01/11/24 99.815000 1,000,000 1,000,000.00 5.5000 3130AYFM3 1/12/2029 Stifel FEDL Home Loan Bank Bond 01/29/24 99.912000 1,000,000 1,000,000.00 5.4000 3130AYJX5 1/23/2029 Stifel FEDL Home Loan Bank Bond 01/29/24 99.660000 1,000,000 1,000,000.00 5.3500 3130AYM86 1/24/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/05/24 99.560000 1,000,000 1,000,000.00 5.5000 3134H1RR6 2/9/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/12/24 99.428000 1,000,000 1,000,000.00 5.3500 3134H1RV7 2/8/2029 Stifel FEDL Home Loan MTG CorpPool#WN2534 02/16/24 98.300300 1,000,000 997,187.50 4.9000 3132XGY83 12/1/2028 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/20/24 99.425000 1,000,000 997,570.00 5.2500 3134H1TX1 2/23/2029 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 02/22/24 99.134000 1,000,000 993,939.00 5.0000 3134H1UK7 2/23/2029 Stifel FEDL Home Loan Bank Bond 03/04/24 100.000000 905,000 905,000.00 6.0000 3130B07L7 3/1/2029 Stifel FEDL Home Loan Bank Bond 03/25/24 99.926000 1,000,000 1,000,000.00 5.5000 3130B0LF4 9/21/2026 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 03/25/24 99.715000 1,000,000.00 1,000,000.00 5.6250 3134H1WN9 3/27/2029 Stifel FEDL Home Loan MTG CorpPOOL#WN2559 4/10/2024 97.771000 1,000,000 979,062.50 4.6000 3132XGZZ2 1/1/2029 Stifel FEDL Home Loan MTG CorpPOOL#WN2537 04/16/24 98.615100 1,000,000 989,687.50 4.9000 3132XGZB5 12/1/2028 Stifel FEDL Home Loan MTG Corp -
Medium Term Note 04/18/24 99.988000 1,000,000 1,000,000.00 6.0000 3134H1K36 4/30/2029 Stifel FEDL Home Loan Bank Bond 5/29/2024 100.000000 1,000,000 1,000,000.00 6.0000 3130B1ME4 6/4/2029 Stifel Total Federal Home Loan 34,985,000 $ 34,912,647.51

Investment Detail as of
May 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
State Bank of India -
New York NY CD 02/01/22 92.055000 245,000 $ 245,000.00 1.7500 856285G21 2/9/2027 Stifel Pentagon Federal CR UN -
Tysons Corner VA 02/02/22 91.809000 245,000 245,000.00 1.7000 70962LBE1 2/18/2027 Stifel Sallie Mae Bank -
Salt Lake City UT CD 02/16/22 93.099000 245,000 245,000.00 2.2000 795451BH5 2/23/2027 Stifel American Express Natl BK -
Salt Lake City UT CD 03/01/22 97.299000 245,000 245,000.00 1.8000 02589ABP6 3/10/2025 Stifel Beal Bank -
Las Vegas NV CD 03/01/22 92.648000 245,000 245,000.00 2.0500 07371CK81 3/3/2027 Stifel Beal Bank -
Plano TX CD 03/01/22 92.648000 245,000 245,000.00 2.0500 07371AZQ9 3/3/2027 Stifel BMW Bank North America -
Salt Lake City UT CD 03/01/22 97.348000 245,000 245,000.00 1.8000 05580AK37 3/4/2025 Stifel Medallion Bank -
Salt Lake City UT CD 03/01/22 92.579000 245,000 245,000.00 2.0500 58404DNG2 3/8/2027 Stifel Live Oak Bkg Co -
Wilmington NC CD 03/03/22 97.561000 249,000 248,751.00 1.8500 538036HW7 2/14/2025 Stifel Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 94.144000 245,000 245,000.00 2.7000 14042TFJ1 4/13/2027 Stifel Synchrony Bank -
Draper UT CD 04/07/22 94.140000 245,000 245,000.00 2.7000 87165FK45 4/14/2027 Stifel Ally Bank -
Midvale UT CD 04/27/22 95.910000 245,000 245,000.00 2.8500 02007GQQ9 5/5/2026 Stifel Capital One NA -
Mclean VA CD 04/27/22 94.992000 245,000 245,000.00 3.0500 14042RRA1 5/4/2027 Stifel Goldman Sachs Bank USA -
New York NY CD 04/27/22 94.971000 245,000 245,000.00 3.0500 38149M6Y4 5/11/2027 Stifel Toyota Finl Svgs BankHenderson NV CD 05/09/22 95.362000 245,000 245,000.00 3.2000 89235MNH0 5/17/2027 Stifel First Natl Bank of Amer- East
Lansing MI CE 05/16/22 96.872000 245,000 245,000.00 3.0000 32110YXE0 11/28/2025 Stifel Morgan Stanley Bank NA- Salt
Lake City UT CD 05/16/22 95.493000 245,000 245,000.00 3.2500 61690UJ68 5/19/2027 Stifel Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 95.493000 245,000 245,000.00 3.2500 61768EJR5 5/19/2027 Stifel Discover BankGreenwood DE CD 05/20/22 95.344000 245,000 245,000.00 3.2000 254673E36 5/24/2027 Stifel Barclays Bank DEWilmington DE CD 05/24/22 97.800000 245,000 245,000.00 3.0500 06740KQS9 6/2/2025 Stifel BMO Harris Bank NAChicago IL CD 06/23/22 97.837000 245,000 245,000.00 3.2000 05600XGK0 6/24/2025 Stifel Oceanfirst Bank NAToms River NJ CD 06/23/22 99.822000 245,000 245,000.00 3.2500 67523TBE2 7/1/2024 Stifel Pinnacle Bank -
Nashville TN CD 06/23/22 99.825000 245,000 245,000.00 3.0500 72345SLE9 6/28/2024 Stifel Synovus BankColumbus GA CD 06/23/22 99.451000 245,000 245,000.00 3.2000 87164DTM2 8/30/2024 Stifel UBS Bank USASalt Lake City UT CD 06/27/22 99.819000 245,000 245,000.00 3.2000 90348J4B3 7/1/2024 Stifel American First CR UNBrea CA SHS CTF 06/30/22 97.789000 245,000 245,000.00 3.2500 02616ABJ7 7/15/2025 Stifel Tennessee Valley AuthPWR Bond 1995 SER E 06/30/22 102.549000 1,000,000 1,051,371.97 6.7500 880591CJ9 11/1/2025 Stifel Austin Telco Fed CR UN- Austin
TX SHS CTF 11/14/22 100.181000 245,000 245,000.00 5.0500 052392CC9 11/27/2026 Stifel Baxter CR UNVernon Hills IL SHS CTF 11/14/22 100.080000 245,000 245,000.00 5.0000 07181JAV6 11/30/2026 Stifel Oklahoma Fedl CR UNOklahoma City OK CD 11/14/22 99.807000 245,000 245,000.00 5.0000 67886WAB3 11/22/2024 Stifel Rogue Credit UnionMedford OR SHS CTF 11/14/22 100.011000 245,000 245,000.00 5.2000 77535MAE3 11/26/2027 Stifel USAlliance FCURye NY SHS CTF 11/14/22 99.814000 245,000 245,000.00 5.0000 90352RCW3 11/29/2024 Stifel All in FED CR UnionDaleville AL SHS CTF 12/07/22 98.777000 245,000 245,000.00 4.4500 01664MAA4 12/21/2026 Stifel Ideal Credit Union- Woodbury
MN SHS CTF 12/07/22 98.957000 245,000 245,000.00 4.5000 45157PAZ3 12/29/2027 Stifel

Investment Detail as of
May 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Workers Credit Union- Littleton
MA SHS CTF 12/07/22 99.988000 245,000 $ 245,000.00 5.0500 98138MAZ3 6/17/2024 Stifel Community West CR UNKentwood MI CD 12/12/22 99.692000 245,000 245,000.00 5.0000 20416JAC8 6/23/2025 Stifel Alliant Credit UnionChicago IL SHS CTF 12/20/22 100.096000 245,000 245,000.00 4.8500 01882MAA0 12/30/2027 Stifel Valley Strong CR UNBakersfield CA SHS CTF 01/04/23 99.801000 245,000 245,000.00 5.1000 920133AL9 7/18/2025 Stifel Technology CR UNSan Jose CA SH CTF 01/09/23 99.803000 245,000 245,000.00 5.1000 87868YAH6 7/21/2025 Stifel Sound CR UNTacoma WA ShS CTF 02/06/23 99.820000 245,000 245,000.00 5.1000 83616HAC8 2/21/2025 Stifel First NATL BankDamariscotta ME CD 03/09/23 99.988000 245,000 245,000.00 5.0000 32117BFR4 9/23/2026 Stifel KodabankDrayton ND CD 03/09/23 99.987000 245,000 245,000.00 5.0000 50007DAC3 9/22/2026 Stifel Truliant FEDL CR UNWinston Salem NC SHS CTF 03/09/23 100.043000 245,000 245,000.00 5.1500 89789AAH0 3/23/2026 Stifel Knoxville TVA Employees -
Credit Union 04/13/23 97.899000 249,000 236,275.11 1.9500 499724AL6 1/16/2025 Stifel Cornerstone BankFargo ND CD 05/01/23 101.847600 245,000 245,000.00 - 219232CR4 5/10/2028 Stifel Bank of BarodaNew York NY CD 05/09/23 99.792000 245,000 245,000.00 5.0500 06063HQL0 11/15/2024 Stifel Centris FEDL CR UNOmaha NE SHS CTF 05/09/23 99.696000 245,000 245,000.00 5.0000 15643VAB8 5/24/2025 Stifel NexBank Dallas TX CD 05/09/23 99.701000 245,000 245,000.00 5.0500 653344CD1 5/15/2025 Stifel Credit Union of TexasAllen TX SHS CTF 05/11/23 99.851000 245,000 245,000.00 5.1500 22551KAZ5 5/27/2025 Stifel Greenstate Credit UnionNorth Liberty IA SH CTF 05/11/23 99.880000 245,000 245,000.00 5.1500 39573LEA2 11/18/2024 Stifel Tech Credit UnionCrown Point in CD CTF 05/15/23 99.876000 245,000 245,000.00 5.1500 87823TAD0 11/25/2024 Stifel First Choice FEDL CR UNNew Castle PA SHS CTF 05/17/23 99.696000 245,000 245,000.00 5.0000 31949HAA9 5/27/2025 Stifel Connexus Credit UnionWausau WI SHS CTF 06/05/23 100.011000 245,000 245,000.00 5.4000 20825WBN9 6/15/2028 Stifel Cross River BankTeaneck NJ CD 06/06/23 99.931000 245,000 245,000.00 5.2500 227563CS0 12/16/2024 Stifel First Source FED CR UNNew Hartford NY SHS CTF 06/06/23 99.994000 245,000 245,000.00 5.4500 33651FAJ8 6/17/2024 Stifel Global Federal CR UNAnchorage AK SHS CTG 06/06/23 99.895000 245,000 245,000.00 5.2000 37892MAL8 6/16/2025 Stifel Americu CR UNRome NY SHS CTF 06/13/23 99.999000 245,000 245,000.00 5.3500 03065QAP3 12/23/2024 Stifel Oregon CMNTY CR UNEugene OR SHS CTF 06/16/23 99.860000 245,000 245,000.00 5.1500 68584JAE9 6/23/2025 Stifel Jefferson Finl FCUMetirie LA SHS CTF 06/21/23 99.918000 245,000 245,000.00 5.2500 474067CH6 12/30/2024 Stifel CY Fair FCUHouston TX SHS CTF 06/26/23 100.571000 245,000 245,000.00 5.3000 23248UAC1 7/14/2028 Stifel Southwest Heritage CU- Odessa
TX SHS CTF 06/26/23 99.905000 245,000 245,000.00 5.1000 84503PAF7 1/7/2026 Stifel Western Alliance BankPhoenix AZ CD 06/26/23 99.897000 245,000 245,000.00 5.2500 95763PPD7 1/7/2025 Stifel Inspire FEDL CR UN- Bristol
PA SHS CTF 06/29/23 99.905000 245,000 245,000.00 5.0000 457731AQ0 6/30/2026 Stifel Liberty Fed CR UNEvansville IN SHS CTF 07/01/23 100.023000 245,000 245,000.00 5.3000 53052LAW9 7/14/2025 Stifel TTCU Federal CR UnionTulsa OK CD 07/10/23 100.082000 245,000 245,000.00 5.3500 89854LAE3 7/25/2025 Stifel Numerica Credit Union-Spokane
VLY WA SHS CTF 07/12/23 101.290000 245,000 245,000.00 5.1000 67054NBK8 7/31/2028 Stifel GESA CR UNRichland WA CD 07/19/23 100.459000 245,000 245,000.00 5.2500 37424PAH7 7/31/2026 Stifel GHS FED CR UN- Binghamton
NY SHS CTF 08/02/23 100.577000 245,000 245,000.00 5.6000 36266LAB2 8/17/2028 Stifel Pima FEDL CR UNTucson AZ SHS CTF 08/02/23 100.576000 245,000 245,000.00 5.3000 722000AC0 8/17/2026 Stifel

Investment Detail as of
May 2024
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Communitywide FEDL CR UNSouth Bend IN SHS CTF 08/04/23 100.010000 245,000 $ 245,000.00 5.2000 20416TBD3 8/29/2025 Stifel Signature Federal Cred U 08/16/23 100.596000 245,000 245,000.00 5.3000 82671DAG2 8/28/2026 Stifel Advantage FEDL CR UNRochester NY SHS CTF 08/24/23 100.217000 245,000 245,000.00 5.3000 00790JAD4 12/31/2025 Stifel Money One FCULargo MD SHS CTF 09/01/23 100.971000 245,000 245,000.00 5.0000 60936TAL3 9/14/2028 Stifel Tucson FEDL CR UNTucson AZ CD 09/01/23 100.961000 245,000 245,000.00 5.0000 898812AC6 9/8/2028 Stifel Lafayette FEDL CR UNRockville MD SHS CTF 11/22/23 100.227000 245,000 245,000.00 5.5500 50625LBP7 5/30/2025 Stifel Keypoint CR UNSan Jose CA SHS CTF 12/13/23 100.000000 245,000 245,000.00 5.4000 49332PAC4 12/27/2024 Stifel SCE FCUIrwindale CA SHS CTF 12/13/23 99.692000 245,000 245,000.00 5.0000 78413RAJ6 6/20/2025 Stifel Dannemora FED CR UNPlattsburgh NY CD 12/20/23 100.106000 245,000 245,000.00 5.3000 236334AD0 12/28/2028 Stifel Corp America Family CUElgin IL CD 02/13/24 100.000000 245,000 245,000.00 5.0000 219873AA4 2/21/2025 Stifel FEDL NATL MTG ASSNPool#BSB8718 Balloon 03/05/24 97.208300 1,000,000 986,562.50 4.3800 3140LKVL4 6/1/2028 Stifel Washington State BankWashington IA CD 4/2/2024 99.708000 245,000 245,000.00 5.0000 93974LAG5 10/9/2025 Stifel Bethpage FED CR UNBethpage NY SHS CTF 04/29/24 99.933000 245,000 245,000.00 5.2500 08756MAA8 5/13/2025 Stifel FEDL NATL MTG ASSN Note 05/14/24 99.892000 1,000,000 1,000,000.00 5.7500 3135GASM4 5/15/2029 Stifel Global FED CR UN -
Anchorage AK SHS CTF 05/14/24 99.989000 245,000 245,000.00 5.0500 37892MAP9 5/29/2026 Stifel Morgan Stanley PVT BK NA -
Purchase NY CD 05/14/24 99.921000 245,000 245,000.00 5.0500 61768E3X9 5/22/2026 Stifel Total Certificates of Deposit 23,098,000 $ 23,122,960.58 Stifel Securities 64,083,000 $ 63,957,427.43
Stifel Cash 352,248.76
Stifel Total Value of Portfolio 64,083,000 $ 64,309,676.19

Qty Purch Date Maturity Sale Date
Share Price at
Purchase Date Net Trade Amount Cost Basis Value Market Value Accrued Interest Issuer CUSIP Held by 10,000 05/14/24 5/15/2029 100.000000 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00

FEDL NATL MTG ASSN
Note 3135GASM4 Stifel
2,450 05/14/24 5/22/2026 100.000000 245,000.00 245,000.00 245,000.00 Morgan Stanley PVT BK NA -
Purchase NY CD 61768E3X9 Stifel
2,450 05/14/24 5/29/2026 100.000000 245,000.00 245,000.00 245,000.00 Global FED CR UN -
Anchorage AK SHS CTF 37892MAP9 Stifel
10,000 5/29/2024 6/4/2029 100.000000 1,000,000.00 1,000,000.00 1,000,000.00 FEDL Home Loan Bank Bond 3130B1ME4 Stifel Total $ 2,490,000.00 $ 2,490,000.00 $ 2,490,000.00 -
Qty Purch Date Maturity Sale Date
Share Price at Sale /
Maturity Date Original Cost Value
Par Value at
Sale/Maturity
Gain / (Loss) on
Sale / Redemption
Interest Earnings
Since Purchase Issuer CUSIP Held by
2,450 05/04/23 5/17/2024 5/17/2024 100.000000 $ 245,000.00 $ 245,000.00 - $ 12,652.03 Local Govt FEDL CR UnRaleigh NC SHS CTF 53955LAC1 Stifel 2,480 01/26/23 5/20/2024 5/20/2024 100.000000 248,000.00 248,000.00 - 1,305.57 True Sky FEDL CR UNOklahoma City OK SHS CTF 89786MAA2 Stifel 2,450 05/11/23 5/24/2024 5/24/2024 100.000000 245,000.00 245,000.00 - 12,774.91 Raiz FCUEL Paso TX CD 75102EAN8 Stifel
2,450 11/14/22 5/28/2024 5/28/2024 100.000000 245,000.00 245,000.00 - 18,174.65 Greenwood Credit UnionWarwick RI SHS CTF 397129AJ6 Stifel 2,450 05/24/22 5/28/2024 5/28/2024 100.000000 245,000.00 245,000.00 - 14,003.27 Isreal Discount BK of NYNew York NY CD 465076TQ0 Stifel 2,450 11/14/22 5/28/2024 5/28/2024 100.000000 245,000.00 245,000.00 - 18,291.09 Mountain Amer Fed CR UNWest Jordan UT SHS CTF 62384RAS5 Stifel 2,450 05/17/23 5/29/2024 05/29/24 100.000000 245,000.00 245,000.00 - $12,740.00 I H MISS VLY CR UNMoline IL SHS CTF 44963KAE8 Stifel
Total $ 1,718,000.00 $ 1,718,000.00 $ - $ 89,941.52
Period Interest Revenue
Previous Month $252,654.39
Previous 12 mos. $2,341,493.18

CITY OF COVINA
Investment Transaction Summary
for the Month Ended May 31, 2024
Purchased Investments
Net Revenue Analysis - for Period Ending May 31, 2024
Sold/Matured Investments

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
June 06, 2024
LAIF Home
PMIA Average Monthly
Yields

CITY OF COVINA

CITY TREASURER
125 E. COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 98-19-219
May 2024 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
5/23/2024 5/23/2024 RD 1753515 1713947 THERESA FRANKE 5,000,000.00 Account Summary
Total Deposit: 5,000,000.00 Beginning Balance: 25,326,271.15 Total Withdrawal: 0.00 Ending Balance: 30,326,271.15
6/6/24, 3:44 PM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-4 City

Statement Total
Balance Percentage
Cash Balances $5,441,967 5.28%
Local Agency Investment Fund 30,326,271 29.40%
Treasury / Agency 40,834,467 39.59%
Certificate of Deposits 23,122,961 22.42%
Funds Held by Bond Trustees 3,422,334 3.32%
Total $103,148,000 100.00%

CITY OF COVINA
Cash & Investment Holdings by Type as of May 31, 2024
*Average Investment coupon rate: 4.63% (based on weighted average of Original Cost Value) Cash Balances, 5.28%
Local Agency Investment
Fund, 29.40%
Treasury / Agency, 39.59%
Certificate of Deposits,

22.42%
Funds Held by Bond
Trustees, 3.32%

HOLDINGS BY TYPE
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\May 2024\Investment Holdings by Sector - May 24 Attachment A-5 City

CASH AND INVESTMENT BALANCE 4/30/2024 $629,567.14
RECEIPTS 5/1/24-5/31/24 0.00

DISBURSEMENTS 5/1/24-5/31/24 0.00
CASH AND INVESTMENT BALANCE 5/31/2024 $629,567.14

ANALYSIS OF CASH AND INVESTMENT BALANCE
CHECKING ACCOUNT $71,047.64
LOCAL AGENCY INVESTMENT FUND Attachment A-6 558,519.50
AVAILABLE CASH BALANCES 629,567.14
CASH HELD BY BOND TRUSTEES 15.37
TOTAL CASH AND INVESTMENT / BOND TRUSTEE CASH BALANCE 5/31/2024 $629,582.51 FOR THE MONTH ENDED MAY 31, 2024
The purpose of this report is to provide readers with the overall cash position of the Successor Agency to the Covina Redevelopment Agency (Agency). There is sufficient investment liquidity to meet the pooled expenditures of all Agency's funds for the next 6 months.

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

BANK ACQUISITION MARKET

TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
Successor Agency to the Covina Redevelopment Agency:

Checking Account BMO $71,047.64 N/A Demand $71,047.64
Local Agency Investment Fund State of California 558,519.50 Demand 558,519.50 Subtotal (A) $629,567.14 $629,567.14
Cash Held With 3rd Party Administrator:
(1) 2013 Series A Tax Allocation Bonds U.S. Bank* $0.0 N/A Demand ($0.00) Fiscal Agent: U.S. Bank
(2) 2014 Series A Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank
(3) 2004 Series B Tax Allocation Bonds U.S. Bank* 15.37 N/A Demand 15.37 Fiscal Agent: U.S. Bank
Subtotal (B) $15.37 $15.37
TOTAL (A+B) $629,582.51 $629,582.51
* Formerly BNY Mellon

SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY

CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED MAY 31, 2024
The purpose of this schedule is to show the total cash and investments held by the Successor Agency to the Covina Redevelopment Agency by account.

Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
June 06, 2024
LAIF Home
PMIA Average Monthly
Yields

S/A CITY OF COVINA FOR COVINA

REDEVELOPMENT AGENCY

FINANCE DIRECTOR
125 EAST COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 65-19-007
May 2024 Statement
Tran Type Definitions
Account Summary
Total Deposit: 0.00 Beginning Balance: 558,519.50
Total Withdrawal: 0.00 Ending Balance: 558,519.50
6/6/24, 3:45 PM LAIF Regular Monthly Statement
https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Attachment A-6 Agency

Quarter
Ending City Agency*
5/31/2022 $80,490,647 $3,673,410
5/31/2023 $93,678,644 $3,714,919
5/31/2024. $103,148,000 $629,583

CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY Cash and Investments Three Year Comparison as of May 31, 2024 The purpose of this schedule is to show, for comparison purposes, the total cash and investment values for the last 3 years. *Successor Agency to Covina Redevelopment Agency
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
5/31/2022 5/31/2023 5/31/2024.
$80,490,647
$93,678,644 $103,148,000
$3,673,410 $3,714,919 $629,583
MONTH ENDING MAY 31, 2024
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
S:\Covina_PVT\Finance_PVT\Investments - City & CRA\Monthly Investment Reports\23-24\May 2024\Cash Comparison May 2024 Attachment A-7 City and Agency

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

Bills 31,345,507,540.42 $ 31,767,627,811.00 $ NA
Notes $ 61,147,508,679.17 $ 60,503,198,652.50 $ 408,680,291.50 Federal Agency:

SBA $ 252,674,245.95 $ 256,430,968.71 $ 1,224,472.42
MBS-REMICs $ 1,943,259.80 $ 1,890,061.12 $ 8,477.31
Debentures $ 8,032,854,727.68 $ 7,940,234,515.00 $ 75,035,208.45 Debentures FR $ - $ - $ -
Debentures CL $ 1,850,000,000.00 $ 1,833,569,750.00 $ 11,078,374.50 Discount Notes $ 24,628,901,680.57 $ 24,899,296,200.00 NA Supranational Debentures $ 2,919,839,134.05 $ 2,876,348,080.00 $ 28,492,736.90 Supranational Debentures FR $ - $ - $ -
CDs and YCDs FR $ - $ - $ -
Bank Notes
CDs and YCDs $ 14,900,015,000.00 $ 14,894,671,773.49 $ 245,321,277.76 Commercial Paper $ 11,228,693,958.35 11,106,150,972.23 $ NA Corporate:

Bonds FR - $ $ - $ -
Bonds $ 675,060,154.90 $ 657,079,080.00 $ 6,535,000.03
Repurchase Agreements $ - $ - $ -
Reverse Repurchase $ - $ - $ -
Time Deposits $ 5,105,000,000.00 $ 5,105,000,000.00 NA
PMIA & GF Loans $ 363,727,000.00 $ 363,727,000.00 NA
TOTAL $ 162,329,182,394.77 $ 162,327,767,850.17 $ 776,375,838.87 Fair Value Including Accrued Interest $ 163,104,143,689.04 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).

State of California
Pooled Money Investment Account
Market Valuation
5/31/2024
Attachment A-8

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: June 18, 2024
Title: Lease of Automated License Plate Readers from Flock Group, Inc.

Presented by: David Povero, Chief of Police
Recommendation: 1. Approve a 2-year lease agreement and funding for five (5) additional Automated License Plate Reader Cameras from Flock Group, Inc. and waive bid requirement per CMC Section 2.20.080-Sole Source Purchase;

2. Adopt Resolution CC 2024-46 increasing the police department FY 2024-25 expenditure budget by $17,250.

EXECUTIVE SUMMARY:

Auto theft continues to account for a significant portion of property related crime in Covina. In addition to detecting stolen vehicles, Automated License Plate Reader (ALPR) systems are effective tools in solving many other crimes, including violent crimes. Identifying vehicles associated with criminal activity provides investigators with useful information to solve these crimes, arrest perpetrators, and recover stolen property. ALPR systems are also useful in locating missing persons and locating wanted subject. These cameras capture images of passing traffic and conduct an instant analysis of vehicle descriptions, license plates and other identifiable objects. When information can be matched to vehicles that are stolen or wanted in connection with another crime, an alert is immediately sent so officers can be dispatched. Images and data are securely stored for 30 days along with several other safeguards to ensure public safety is balanced with privacy.

DISCUSSION:

The Flock Safety ALPR System is currently deployed by Covina PD and includes 20 cameras placed throughout the community. Flock cameras generally capture vehicle license plates on vehicle moving in one direction of travel. Because of this, initial camera deployments focused primarily on the major thoroughfares and high traffic areas. Covina PD is seeking five (5) additional cameras to improve coverage on major entrance points to the City along Glendora Ave, Hollenbeck Ave. and Covina Hills Road. The placements will assist in the detection of stolen vehicles entering the City via these roadways and will help solve crimes committed by persons entering Covina from other jurisdictions.

Covina PD has been pleased with the performance of the solution deployed by Flock Safety. In 2023, Flock cameras notifications resulted in at least 34 arrests and hundreds of other notifications. The additional 5 cameras will improve our overall coverage along key roadways.

One of the key benefits of the Flock system is the annual flat rate lease per camera, which is wireless, free of infrastructure setup, and has the option for solar or direct power. They also include a two-year warranty, Criminal Justice Information Services (CJIS) compliant cloud-based hosting, unlimited user licenses, ongoing software enhancements, camera setup, mounting, shipping, handling, and a cellular connection. The Flock lease program prevents the City from being burdened with maintaining costly equipment at the end of the agreement, which could require replacement.

FISCAL IMPACT:

This 2-year lease is for $32,250 plus tax. $17,250 will be the first year payment. Funds are being request from the general fund balance.

This will be a sole source purchase under CMC Section 2.20.080 (B)(1). Procurement by noncompetitive proposals may be made when the supply, service or equipment is available from only one source. The additional 5 cameras are proprietary equipment and available only from Flock Group Inc. for integration with our existing system.

The approval would be subject to non-substantive changes made by the Chief of Police or City Attorney.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

Flock Safety + CA - Covina PD
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Jake Sherman
[email protected]
8187467444

ATTACHMENT A

ORDER FORM
This order form (“Order Form”) hereby incorporates and includes the terms of the previously executed agreement (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations.

This additional services Agreement will be effective when this Order Form is executed by both Parties (the “Effective Date”) Customer: CA - Covina PD Initial Term: 24 Months
Legal Entity Name: CA - Covina PD Renewal Term: 24 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 444 N Citrus Ave Covina, California
91723
Billing Frequency: Annual Plan - First Year Invoiced at Signing.

Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $15,000.00
Flock Safety Flock OS
FlockOS ™ - Essentials Included 1 Included
Flock Safety LPR Products
Flock Safety Falcon ® Included 5 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Flock Safety Professional Services
Professional Services - Standard Implementation Fee $650.00 3 $1,950.00 Professional Services - Existing Infrastructure
Implementation Fee $150.00 2 $300.00
Subtotal Year 1: $17,250.00
Annual Recurring Subtotal: $15,000.00
Estimated Tax: $0.00
Contract Total: $32,250.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $17,250.00
Annual Recurring after Year 1 $15,000.00
Contract Total $32,250.00
*Tax not included

Product and Services Description
Flock Safety Platform Items Product Description Terms
FlockOS™ Flock Safety’s situational awareness operating system.

Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.

The Term shall commence upon first installation and validation of Flock Hardware.

One-Time Fees Service Description
Installation on existing
infrastructure
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

Professional Services - Standard
Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.

Professional Services -
Advanced Implementation Fee
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.

FlockOS Features & Description
FlockOS Features Description
Community Network Access
The ability to request direct access to feeds from privately owned Flock Safety Falcon® LPR cameras located in neighborhoods, schools, and businesses in your community, significantly increasing actionable evidence that clears cases.

Unlimited Users Unlimited users for FlockOS
State Network (License Plate Lookup Only) Allows agencies to look up license plates on all cameras opted into the Flock Safety network within your state.

Nationwide Network (License Plate Lookup Only)
With the vast Flock Safety sharing network, law enforcement agencies no longer have to rely on just their devices alone. Agencies can leverage a nationwide system boasting 10 billion additional plate reads per month to amplify the potential to collect vital evidence in otherwise dead-end investigations.

Time & Location Based Search Search full, partial, and temporary plates by time at particular device locations License Plate Lookup Look up specific license plate location history captured on Flock devices Vehicle Fingerprint Search Search footage using Vehicle Fingerprint™ technology. Access vehicle type, make, color, license plate state, missing / covered plates, and other unique features like bumper stickers, decals, and roof racks.

Insights & Analytics Reporting tool to help administrators manage their LPR program with device performance data, user and network audits, plate read reports, hot list alert reports, event logs, and outcome reports.

ESRI Based Map Interface Map-based interface that consolidates all data streams and the locations of each connected asset, enabling greater situational awareness and a common operating picture.

Real-Time NCIC Alerts on Flock ALPR Cameras
Receive automated alerts when vehicles entered into established databases for missing and wanted persons are detected, including the FBI’s National Crime Information Center (NCIC) and National Center for Missing & Exploited Children (NCMEC) databases.

Unlimited Custom Hot Lists Ability to add a suspect’s license plate to a custom list and get alerted when it passes by a Flock camera Law Enforcement Network Access The ability to request direct access to evidence detection devices from Law Enforcement agencies outside of your jurisdiction.

By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the previously executed agreement.

The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA - Covina PD
By:
\FSSignature2\
By:
\FSSignature1\
Name:
\FSFullname2\
Name:
\FSFullname1\
Title:
\FSTitle2\
Title:
\FSTitle1\
Date:
\FSDateSigned2\
Date:
\FSDateSigned1\
PO Number:

ATTACHMENT B
RESOLUTION CC 2024-46

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

CALIFORNIA, INCREASING THE POLICE DEPARTMENT FISCAL
YEAR 2024-25 EXPENDITURE BUDGET BY $17,250 WITH FUNDS

FROM THE GENERAL FUND BALANCE
WHEREAS, the City of Covina (“City”) is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, The City of Covina would like to add five (5) additional FLOCK cameras to improve coverage on major entrance points to the City along Glendora Ave, Hollenbeck Ave. and Covina Hills Rd.; and
WHEREAS, the total two-year lease of the five (5) cameras is $32,250; and WHEREAS, the first year lease payment is $17,250; and
WHEREAS, this $17,250 will increase the Police Department’s FY 24-25 appropriation by $17,250; and
WHEREAS, appropriations may be made by the City Manager, amendments (increases/decreases) to the Budget shall be by approval and Resolution of the City Council.

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

SECTION 1. The Fiscal Year 2024-25 Budget is hereby amended as follows:

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

APPROVED and PASSED this 18th day of June, 2024
City of Covina, California
BY:

JOHN C. KING, Mayor
Account Number Account Title Original Budget Increase/Decrease Budget Amendment 1010 1130 54420 Patrol Tactical Equipment $ 20,000.00 $ 17,250.00 $ 37,250.00 Page 41 of 2700 Resolution CC 2024-46 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 2024-46 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of June 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 4
Meeting: June 18, 2024
Title: Agreement between All City Management Services Inc., and the City of Covina for Crossing Guard Service
Presented by: David Povero, Chief of Police
Recommendation: 1. Approve the agreement between All City Management Services, Inc. and the City of Covina for school crossing guard services for fiscal year 2024-25; and authorize the City Manager or his designee to execute the agreement; and

2. Approve the crossing guard cost sharing agreements between the City of Covina and Covina Valley Unified School District and Charter Oak Unified School District and authorize the City Manager or his designee to execute agreements.

EXECUTIVE SUMMARY:

The item before you will continue the community partnership the Covina Police Department has with the Charter Oak Unified School District and the Covina-Valley Unified School District for school crossing guards. Each district has identified their specific needs which are fulfilled. In 2022, we proposed that the districts agree to a cost sharing agreement where each district would pay 50% of the costs of school crossing guards for their sites.

This 50/50 cost sharing agreement will continue.

DISCUSSION:

In July 2004, the Covina City Council approved contracting for school crossing guard services with All City Management Services (ACMS), Inc. Since that time, ACMS has continued to provide uninterrupted school crossing guard services for multiple schools in two different school districts in the City of Covina. When searching for a crossing guard provider, we looked for companies that exclusively specialize in this service. ACMS was founded in 1985 and is the only private corporation specifically and exclusively providing school crossing guard services in the nation. ACMS is currently the largest employer of school crossing guards, with over 3,000 Crossing Guards serving over 150 cities, counties and school districts. Staff at the CPD has found them to be a reliable and responsive company that meets the needs of our City.

After careful review and evaluation of the crossing guard industry, ACMS continues to emerge as the only company that is appropriate for our needs. Some of the agencies they currently contract with around Covina include El Monte, Walnut, Arcadia, Glendora, Rowland Heights, Azusa, Los Angeles County (which covers all the surrounding unincorporated areas), La Puente, Diamond Bar and Baldwin Park. ACMS has been providing excellent crossing guard service to the City of Covina since 2004.

FISCAL IMPACT:

The crossing guard service cost shall not exceed $280,972.80 in total for Fiscal Year 2024-25. This is a 18% increase from the FY 2022-23 school year. Funds are budgeted in the Police Department for this service in FY 2024-25, account number 1010 1200 51430. As part of this 50/50 cost sharing arrangement, the City of Covina will pay ACMS the full cost of the crossing guard service then in turn shall invoice the remaining 50% of the cost to each of the school districts.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

Respectfully submitted,

ATTACHMENT A

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2024 (“Effective Date”) and is between the City of Covina, A California municipal corporation and Covina Valley Unified School District, hereinafter referred to as “CVUSD”. The City and CVUSD are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City shall utilize and pay All City Management Services as an independent contractor to provide crossing guard services for CVUSD.

B. CVUSD shall pay City 50% of the cost incurred to perform these services in accordance with the terms and conditions of this Agreement.

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2025, unless sooner terminated as provided in Section 4 of this Agreement.

2. Compensation.

A. Compensation. The City and CVUSD each shall be responsible for 50% of the total cost of the crossing guard services of $175,608. CVUSD shall pay City a sum not to exceed $87,804 for a total not-to-exceed amount of EIGHTY SEVEN THOUSAND EIGHT HUNDRED FOUR DOLLARS AND ZERO CENTS (the “maximum compensation”), for the term of this Agreement B. Additional Services. City and CVUSD shall not allow any claims for additional services performed by independent contractor, unless the City Council and the CVUSD Board authorize the additional services in writing prior to the performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council and the CVUSD Board shall be compensated at the hourly rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. Additional service includes crossing service for summer school. City and CVUSD shall make payment for additional services and expenses in accordance with Section 3 of this Agreement.

3. Method of Payment.

A. Invoices. City shall submit to CVUSD an invoice, on a monthly basis, or actual services performed pursuant to this Agreement. The basis of payment shall be per hour worked. The invoice shall be accompanied by supporting documents enumerating the hours worked at each school site for the invoice period.

B. Payment. CVUSD shall pay to City 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

and CVUSD shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant.

4. Termination or Suspension of Agreement.

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

5. 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; (1) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service City’s and CVUSD’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 CVUSD:

Attn: David Povero Attn: Elizabeth Eminhizer
City of Covina Covina Valley Unified
444 N. Citrus Ave. 519 E. Badillo St.

Covina, CA 91723 Covina, CA 91723

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

7. 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

8. Amendment of Agreement. This Agreement may be amended only by a writing signed by all parties. The City Manager and the Superintendent are authorized to sign an amendment to this Agreement on the City Council’s and CVUSD Board’s behalf and without the City Council’s or the CVUSD Board’s prior approval to make the following non-substantive modifications to the Agreement: (a) name changes; (b) non-monetary extensions of time; (c) non-monetary changes in the scope of work; and (d) termination of the Agreement.

9. 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.

10. 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.

11. Time of the Essence. Time is of the essence in respect to all provision 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.

12. 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 and CVUSD.

13. Attorneys’ Fees. In any litigation or other proceeding by which one 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 awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgement.

14. 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.

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

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

City: School District:

City of Covina, California Municipal Covina Valley Unified School District Corporation
By: By:

Name: Chris Marcarello Name: Elizabeth Eminhizer Ed.D.

Title: City Manager Title: Superintendent
(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.)
ATTEST:

By: ________________________________
Name: Fabian Velez
Title: CHIEFDeputy City Clerk

EXHIBIT A

APPROVED FEE SCHEDULE
Nine (10) sites at 3.0 hours per day.
30 total hours per day X 180 days per year X $32.52 hourly billing rate = $175,608 PSA 50% - 50% Split
$87,804 Covina Valley Unified School District
$87,804 City of Covina

EXHIBIT B

SCOPE OF SERVICES
All City Management Services shall provide crossing guard service/trained and uniformed personnel at the following designated ten (10) Covina Valley Unified School District on all days in which school is in session during the regular school year (excluding summer school session). o Barranca/Workman (NW)
o Fourth/Cypress (IFOS)
o Grove Center/Lark Ellen (SE)
o Lark Ellen/Bridger (NE)
o Prospero/Covina (SW)
o Prospero/Cypress (NW)
o Puente/DeLay
o Armel/Badillo (NW)
o Armel/Puente East (NW)
o E. Puente St./Monte Vista Ave.

ATTACHMENT B

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2024 (“Effective Date”) and is between the City of Covina, A California municipal corporation and Charter Oak Unified School District, hereinafter referred to as “COUSD”. The City and COUSD are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City shall utilize and pay All City Management Services as an independent contractor to provide crossing guard services for COUSD.

B. COUSD shall pay City 50% of the cost incurred to perform these services in accordance with the terms and conditions of this Agreement.

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2025, unless sooner terminated as provided in Section 4 of this Agreement.

2. Compensation.

A. Compensation. The City and COUSD each shall be responsible for 50% of the total cost of the crossing guard services of $105,364.80. COUSD shall pay City a sum not to exceed $52,682.40 for a total not-to-exceed amount of FIFTY TWO THOUSAND SIX HUNDRED EIGHTY TWO DOLLARS AND FOURTY CENTS (the “maximum compensation”), for the term of this Agreement B. Additional Services. City and COUSD shall not allow any claims for additional services performed by independent contractor, unless the City Council and the COUSD Board authorize the additional services in writing prior to the performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council and the COUSD Board shall be compensated at the hourly rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. Additional service includes crossing service for summer school. City and COUSD shall make payment for additional services and expenses in accordance with Section 3 of this Agreement.

3. Method of Payment.

A. Invoices. City shall submit to COUSD an invoice, on a monthly basis, or actual services performed pursuant to this Agreement. The basis of payment shall be per hour worked. The invoice shall be accompanied by supporting documents enumerating the hours worked at each school site for the invoice period.

B. Payment. COUSD shall pay to City 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

and COUSD shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant.

4. Termination or Suspension of Agreement.

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

5. 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; (1) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service City’s and COUSD’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 COUSD:

Attn: David Povero Attn: Karyl Brandford
City of Covina Charter Oak Unified School District
444 N. Citrus Ave. 20240 E. Cienega Avenue
Covina, CA 91723 Covina, CA 91724

6. Exhibits. Exhibits A and Bconstitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exits or arises between a provision of this Agreement and a provision of any exhibit the provisions of this Agreement shall control.

7. 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

8. Amendment of Agreement. This Agreement may be amended only by a writing signed by all parties. The City Manager and the Superintendent are authorized to sign an amendment to this Agreement on the City Council’s and COUSD Board’s behalf and without the City Council’s or the COUSD Board’s prior approval to make the following non-substantive modifications to the Agreement: (a) name changes; (b) non-monetary extensions of time; (c) non-monetary changes in the scope of work; and (d) termination of the Agreement.

9. 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.

10. 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.

11. Time of the Essence. Time is of the essence in respect to all provision 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.

12. 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 and COUSD.

13. Attorneys’ Fees. In any litigation or other proceeding by which one 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 awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgement.

14. 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.

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

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

City: School District:

City of Covina, California Municipal Charter Oak Unified School District Corporation
By: By:

Name: Chris Marcarello Name: Jeffrey Jordan, Ed.D.

Title: City Manager Title: Superintendent
(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.)
ATTEST:

By: ________________________________
Name: Fabian Velez
Title: Chief Deputy City Clerk

EXHIBIT A

APPROVED FEE SCHEDULE
Six (6) sites at 3.0 hours per day.
18 total hours per day X 180 days per year X $32.52 hourly billing rate = $105,364.80 PSA 50% - 50% Split
$52,682.40 Charter Oak Unified School District
$52,682.40 City of Covina

EXHIBIT B

SCOPE OF SERVICES
All City Management Services shall provide crossing guard service/trained and uniformed personnel at the following designated six (6) sites within Charter Oak Unified School District on all days in which school is in session during the regular school year (excluding summer school session).  Old Badillo/Reeder
 Badillo/Reader (SW)
 Cienega/Glendora (SW)
 Sunflower/Benwood
 Badillo/Glendora (SW)
 Badillo/Glendora (NW)

1 AGREEMENT FOR CROSSING GUARD SERVICES
This AGREEMENT FOR CROSSING GUARD SERVICES (the “Agreement”) is dated May 16, 2024 and is between the CITY OF COVINA (hereinafter called the "City"), and ALL CITY MANAGEMENT SERVICES, INC., a California corporation (hereinafter called the "Contractor").

WITNESSETH
The parties hereto have mutually covenanted and agreed as follows:

1. This Agreement is for a term which commences on or about July 1, 2024 and ends on June 30, 2025 and for such term thereafter as the parties may agree upon.

2. The Contractor will provide personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a “Crossing Guard”.

Contractor will perform criminal background checks and confirm employment eligibility through EVerify on all prospective personnel. The Contractor is an independent contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City.

3. The City’s representative in dealing with the Contractor shall be designated by the City of Covina.

4. The City shall determine the locations where Crossing Guards shall be furnished by the Contractor.

The Contractor shall provide at each designated location personnel properly trained as herein specified for the performance of duties as a Crossing Guard. The Contractor shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with the terms of this Agreement.

5. The Contractor shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement.

6. In the performance of its duties the Contractor and all employees of the Contractor shall conduct themselves in accordance with the conditions of this Agreement and all applicable laws of the state in which the Services are to be performed.

7. Persons provided by the Contractor as Crossing Guards shall be trained in all applicable laws of the state in which the Services are to be performed pertaining to general pedestrian safety in school crossing areas.

8. Crossing Guard Services (the “Services”) shall be provided by the Contractor at the designated locations on all days in which school is in session in the area under City’s jurisdiction. The Contractor also agrees to maintain communication with the designated schools to maintain proper scheduling.

ATTACHMENT C

2 9. The Contractor shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Contractor shall also provide all Crossing Guards with hand-held Stop signs and any other safety equipment which may be necessary.

10. The Contractor shall at all times provide workers' compensation insurance covering its employees and shall provide and maintain liability insurance for Crossing Guard activities. The Contractor will provide to the City a Certificate of Insurance naming the City and its officials, officers and employees as additional insureds. Such insurance shall include commercial general liability with a combined single limit of not less than $1,000,000.00 per occurrence and in aggregate for property damage and bodily injury. Such insurance shall be primary with respect to any insurance maintained by the City and shall not call on the City's insurance contributions. Such insurance shall be endorsed for contractual liability and personal injury and shall include the City, its officers, agents and interest of the City. Such insurance shall not be canceled, reduced in coverage or limits or non-renewed except after thirty (30) days written notice has been given to the City.

11. Contractor agrees to defend, indemnify and hold harmless the City, its officers, employees, agents and representatives, from and against any and all actions, claims for damages to persons or property, penalties, obligations or liabilities (each a “Claim” and collectively, the “Claims”) that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization arising out of the sole negligent acts or omissions, or willful misconduct, of Contractor, its agents, employees, subcontractors, representatives or invitees. a) Contractor will defend any action or actions filed in connection with any of said claims, damages, penalties, obligations or liabilities and will pay all costs and expenses including attorney's fees incurred in connection herewith.
b) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the sole negligence of Contractor hereunder, Contractor agrees to pay City, its officers, agents, or employees, any and all costs and expenses incurred by the City, its officers agents or employees in such action or proceeding, including, but not limited to, reasonable attorney's fees.
c) In the event that a court determines that liability for any Claim was caused or contributed to by the negligent act or omission or the willful misconduct of City, liability will be apportioned between Contractor and City based upon the parties’ respective degrees of culpability, as determined by the court, and Contractor’s duty to indemnify City will be limited accordingly.

d) Notwithstanding anything to the contrary contained herein, Contractor’s indemnification obligation to City for Claims under this Agreement will be limited to the maximum combined aggregate of Contractor’s general liability and umbrella insurance policies in the amount of $5,000,000 (Five Million Dollars).

12. Either party shall have the right to terminate this Agreement by giving sixty (60) days written notice to the other party.

3 13. The Contractor shall not have the right to assign this Agreement to any other person or entity except with the prior written consent of the City.

14. The City agrees to pay the Contractor for the Services rendered pursuant to this Agreement the sum of Thirty-two Dollars and Fifty-two Cents ($32.52) per hour, per Crossing Guard during the term.

Based on a minimum of sixteen (16) sites and upon a projected (8,640) hours of service the cost shall not exceed Two Hundred Eighty Thousand, Nine Hundred and Seventy-three Dollars ($280,973.00) per year.

15. Payment is due within thirty (30) days of receipt of Contractor’s properly prepared invoice.

16. Contractor may request a price increase during the term as a result of any legally-mandated increases in wages or benefits imposed in the state or municipality in which the Services are to be performed and to which Contractor’s employees would be subject. Contractor shall provide City with 60 daysnotice of its request to increase pricing. City agrees to review and respond to said notice within 30 days of receipt.

17. The City shall have an option to renew this Agreement. In the event this Agreement is extended beyond the end of the term set forth above, the compensation and terms for the Services shall be established by mutual consent of both parties.
18 This Agreement constitutes the complete and exclusive statement of the agreement among the parties with respect to the subject matter hereof and supersedes all prior written or oral statements among the parties, including any prior statements, warranties, or representations. This Agreement is binding upon and will inure to the benefit of the parties hereto and their respective heirs, administrators, executors, successors, and assigns. Each party hereto agrees that this Agreement will be governed by the law of the state in which the Services are to be performed, without regard to its conflicts of law provisions. Any amendments, modifications, or alterations to this Agreement must be in writing and signed by all parties. There will be no presumption against any party on the ground that such party was responsible for preparing this Agreement or any part of it. Each provision of this Agreement is severable from the other provisions. If any provision of this Agreement is declared invalid or contrary to existing law, the inoperability of that provision will have no effect on the remaining provisions of the Agreement which will continue in full force and effect. [SIGNATURES FOLLOW ON NEXT PAGE]

4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year written below.

CITY CONTRACTOR

City of Covina All City Management Services, Inc.

By_____________________________ By______________________________ Signature D. Farwell, Corporate Secretary
_____________________________
Print Name and Title
Date____________________________ Date____________________________

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: June 18, 2024
Title: Adoption of Ordinances 24-04, 24-05, and 24-06
Presented by: Brian K. Lee, Director of Community Development Recommendation: 1. Adopt Ordinance 24-04 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zoning Code Amendment ZCA 22-6 amending Chapter

17.56 (Overlay Zone (Outdoor Advertising Structures)) of the Covina Municipal Code to extend the S overlay to properties with C-P zoning adjacent to freeway right of way, establish advertising displays adjacent to landscape freeways as a conditionally permitted use, and establish requirements for such advertising displays; approving Zoning Change (ZCH) 24-1 amending the Zoning Map to establish an S overlay at 1270 E Garvey Street (APN 8447-031-052); and making findings under CEQA

2. Adopt Ordinance 24-05 entitled, “An ordinance of the City Council of the City of Covina, California, Amending the Village Oaks Office Park Planned Community Development (PCD) District overlay zone consisting of Phase I (PCD 75-001) to modifying the sign criteria of the design guidelines for Phase I and make certain findings under CEQA.

3. Adopt Ordinance 24-06 entitled, “An Ordinance of the City Council of the City of Covina, California, approving and adopting a Development Agreement (DA), between the City of Covina and Bulleting Displays, LLC;” related to a proposed advertising display adjacent to landscape freeway (freeway billboard) located at 1270 E. Garvey Street (APN: 8447-031-052)
EXECUTIVE SUMMARY:

Ordinances 24-04 and 24-05 were approved at introduction by a 3-1-1 vote of the City Council at the June 4, 2024, City Council Meeting. Ordinance 24-06 was simultaneously approved by a 3-1-1 vote at introduction with an amendment to the Development Agreement to include a discounted rate for businesses within the City.

DISCUSSION:

It is recommended that the City Council adopt on second reading of Ordinances 24-04, 24-05, and 24-06.

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 24-04

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, APPROVING ZONING CODE AMENDMENT ZCA 22-6
AMENDING CHAPTER 17.56 (OVERLAY ZONE (OUTDOOR

ADVERTISING STRUCTURES)) OF THE COVINA MUNICIPAL CODE

TO EXTEND THE S OVERLAY TO PROPERTIES WITH C-P ZONING

ADJACENT TO FREEWAY RIGHT OF WAY, ESTABLISH

ADVERTISING DISPLAYS ADJACENT TO LANDSCAPE FREEWAYS

AS A CONDITIONALLY PERMITTED USE, AND ESTABLISH
REQUIREMENTS FOR SUCH ADVERTISING DISPLAYS; APPROVING
ZONING CHANGE (ZCH) 24-1 AMENDING THE ZONING MAP TO
ESTABLISH AN S OVERLAY AT 1270 E GARVEY STREET (APN 8447- 031-052); AND MAKING FINDINGS UNDER CEQA
WHEREAS, in 1964 the City established the S overlay which provides development standards for Outdoor Advertising Structures under Covina Municipal Code (CMC) Section 17.56; and
WHEREAS, Bulleting Displays, LLC c/o Mark Kudler, the applicant, has applied for several entitlements to permit the construction of a freeway billboard sign. The applicant proposes to develop a v-shape digital freeway billboard with two faces each approximately 672 square feet in area and with the overall height of sign measuring 83 feet and other associated site improvements, within the PCD/C-P – Planned Community Development /Commercial Zone (Administrative and Professional Office) on a 1.64-acre site, located at 1270 E Garvey Street – APN – 8447-031-052 – referred to herein as the “Project”; and WHEREAS, the Project requires the following land use entitlements:

1. Zoning Code Amendment (ZCA) 22-6 – to a) allow properties with C-P zoning adjacent to freeway right of way to establish an S overlay, b) establish advertising displays adjacent to landscape freeways as a conditionally permitted use and c) provide specific sign criteria for these types of signs.

2. Zone Change (ZCH) 24-01- to establish an S overlay at 1270 E Garvey Street.

3. Planned Community Development Modification (PCDM) 22-4 – to allow advertising displays adjacent to landscape freeways to be added to the list of permitted signs in Phase I areas of the Village Oaks Park adjacent to freeway right of ways and will reference Section 17.56 for specific sign criteria.

4. Conditional Use Permit (CUP) 22-10 and Site Plan Review (SPR) 22-227, to allow the construction of an “Outdoor Advertising Structure (Freeway Billboard)” at 1270 E Garvey Street zoned PCD/C-P - Planned Community Development / Commercial Zone (Administrative and Professional Office (APN 8447-031-052).

5. Development Agreement (DA), between Bulletin Displays, LLC. and the City of Covina.

Ordinance 24-04 Page 2 of 5
WHEREAS, as part of its consideration of the Project, the City prepared Draft Mitigated Negative Declaration (“MND”) (SCH 2024020529) on the Project pursuant to the California Environmental Quality Action (Public Resources Code Sections 21000 et seq., “CEQA”), the Guideline for Implementation of the California Environmental Quality Act (14 California Code of Regulations, Sections 15000 et seq., the “State MND Guidelines”); and WHEREAS, pursuant to CMC Chapter 17.80, the Planning Commission held a duly noticed public hearing on April 23, 2024, on the proposed Project including the proposed ZCA 22- 6 and ZCH 24-01 and provided a recommendation to the City Council; and WHEREAS, the City Council, after published notice, held a public hearing on June 4, 2024, concerning the proposed Project, and has considered the reports and documents presented by City staff, the Planning Commission’s recommendation, and the written and oral comments presented at the public hearing; and
WHEREAS, on June 04, 2024, the City Council of the City of Covina held a noticed public hearing to review the Project pursuant to the California Environmental Quality Act, Cal. Pub. Res.

Code § 21000 et seq. ("CEQA"), and the State CEQA Guidelines, 14 C. C.R. 15000 et seq. and considered the reports and documents presented by City staff, the Planning Commission' s recommendation, and the written and oral comments presented at the public hearing; and WHEREAS, upon the close of the public hearing, the City Council adopted Resolution CC 2024-28, adopting the Final MND (SCH 2024020529), adopting a Mitigation Monitoring and Reporting Program for the Project. Resolution CC 2024-28 and the findings therein are hereby incorporated by this reference as though set forth in full; and WHEREAS, on June 04, 2024 the City Council of the City of Covina considered the proposed Project including Planned Community Development Modification (PCDM) 22-4, this Zoning Code Amendment (ZCA) 22-6, this Zone Change (ZCH) 24-01, Conditional Use Permit (CUP) 22-10, Site Plan Review (SPR) 22-227, and a Development Agreement. and Final IS/MND, and Mitigation Monitoring and Reporting Program at a duly noticed public hearing at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the proposed Project, the Final MND, and the Mitigation Monitoring and Reporting Program, prior to and at the public hearing; and
WHEREAS, all legal prerequisites prior to adoption of this Ordinance have occurred.

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

SECTION 1. The above recitals are all true and correct and incorporated herein by this reference.

SECTION 2. The City Council has reviewed and considered the information included in the General Plan, Zoning Code and Staff Report for the Public Hearing and public testimony prior

Ordinance 24-04 Page 3 of 5
to taking action on this Ordinance. This information is on file and available at the Community Development Department at Covina City Hall.

SECTION 3. CEQA. The environmental effects of the proposed zoning code and zoning map amendments were analyzed in the Final MND. The City Council reviewed the Final MND and found that it reflects the independent judgment of the City Council and its staff, and is an adequate and extensive assessment of the environmental impacts of the zoning code and zoning map amendments. The City Council approved the Final MND as having been prepared in compliance with the requirements of the California Environmental Quality Act ("CEQA"), made the necessary findings, and adopted a Mitigation Monitoring and Reporting Program through Resolution CC 2024-28. Said Resolution is incorporated herein by this reference as though set forth in full. The City Council incorporates by this reference the findings and mitigation measures contained in the Final MND, and Mitigation Monitoring and Reporting Program as to the environmental effects of the zoning code and zoning map amendments.

SECTION 4. Section 17.56.030 (Overlay restricted to certain zones) of Chapter 17.56 (Overlay Zone (Outdoor Advertising Structures)) of Title 17 (Zoning) of the Covina Municipal Code is hereby amended to read as follows:
“S zones shall be overlaid only upon the following zones as the same are defined in this title: M-1 zones and C-P zones directly adjacent to freeway right of way.” SECTION 5. Section 17.56.040 (Use limitations) of Chapter 17.56 (Overlay Zone (Outdoor Advertising Structures)) of Title 17 (Zoning) of the Covina Municipal Code is hereby amended to add a new paragraph G to read as follows:
“G. Advertising displays adjacent to landscaped freeways shall be subject to Section

17.56.050.”
SECTION 6. Section 17.56.050 (Advertising displays adjacent to landscaped freeways) is hereby deleted in its entirety and replaced with a new Section 17.56.050 Advertising displays adjacent to landscaped freeways to read as follows:
“Notwithstanding any other provisions to this code regarding outdoor advertising structures adjacent to a landscaped freeway, the following provisions apply:

A. Outdoor advertising structures adjacent to a landscaped freeway shall comply with the following provisions:

1. Any outdoor advertising structure adjacent to a landscaped freeway shall comply with Caltrans requirements.

2. In addition to required Caltrans provisions, any outdoor advertising structure adjacent to a landscaped freeway shall be required to have an accompanying Development Agreement approved by the Covina City Council.

3. Any outdoor advertising structure adjacent to a landscaped freeway shall be required to obtain a Conditional Use Permit that complies with Section 17.62.

4. Development Standards. In addition to the provisions of this chapter, any outdoor advertising structure adjacent to a landscaped freeway shall conform to the following development standards:

Ordinance 24-04 Page 4 of 5
a. Height: Not to exceed 85 feet as measured from the finished grade of the outdoor advertising structure to the highest element of the outdoor advertising structure.
b. Size of advertising panel shall be no larger than 700 square feet in area. c. Outdoor Advertising Structure Display Panel(s). An outdoor advertising structure may be single sided or “double-sided” so the face of the advertising panel is designed to be primarily visible to freeway vehicular traffic. A maximum of two (2) advertising panels per outdoor advertising structure is allowed.

B. Outdoor Advertising Structure Display Panel Disposition. An outdoor advertising structure display panel may be either digital or static.

C. A lighting study will be required, reviewed and approved by the Planning Department.

SECTION 7. Zoning Change (ZCH) 24-1 is hereby approved and the zoning map is amended to establish an S overlay at 1270 E Garvey Street (APN 8447-031-052).

SECTION 8. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 9. Effective Date. This Ordinance shall take affect thirty (30) days after its adoption. The City Clerk is directed to certify to the enactment of this Ordinance and to cause this ordinance to be published and/or posted as required by law.

SECTION 10. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published within 15 days after its passage, in accordance with Section 36933 of the Government Code.

PASSED, APPROVED and ADOPTED this ___ day of ______, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

Ordinance 24-04 Page 5 of 5
APPROVED AS TO FORM:

____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 24-04 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

ATTACHMENT B
ORDINANCE 24-05

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

CALIFORNIA, AMENDING THE VILLAGE OAKS OFFICE PARK

PLANNED COMMUNITY DEVELOPMENT (PCD) DISTRICT OVERLAY
ZONE CONSISTING OF PHASE I (PCD 75-001) TO MODIFYING THE

SIGN CRITERIA OF THE DESIGN GUIDELINES FOR PHASE I AND

MAKE CERTAIN FINDINGS UNDER CEQA
WHEREAS, On May 5, 1975 the City approved PCD 75-001 establishing a PCD zone classification know as Village Oaks Office Park Phase I, Phase II and Phase III; and WHEREAS, On April 16, 1991 the City approved Ordinance 91-1725 amending the sign criteria of the design guidelines in the Village Oaks Office Park; and WHEREAS, Bulleting Displays, LLC c/o Mark Kudler, the applicant, has applied for several entitlements to permit the construction of a freeway billboard sign. The applicant proposes to develop a v-shape digital freeway billboard with two faces each approximately 672 square feet in area and with the overall height of sign measuring 83 feet and other associated site improvements, within the PCD/C-P – Planned Community Development /Commercial Zone (Administrative and Professional Office) on a 1.64-acre site, located at 1270 E Garvey Street – APN – 8447-031-052 – referred to herein as the “Project”; and WHEREAS, Planned Community Development Modification (PCDM) 22-4 proposes amend PCD 75-001 modifying the existing sign criteria for Phase I of the Village Oaks Park Office Park to include advertising displays adjacent to landscape freeways; and WHEREAS, CMC Section 17.80.020 provides that the Planning Commission may initiate proceedings by motion and then hold public hearings and make a recommendation on proposed Zoning Code text amendments as provided in CMC Sections 17.80.030 through 17.80.050; and WHEREAS, CMC Section 17.80.030 provides that the City' s Planning Department shall study the proposed amendment and shall provide information necessary to assure action consistent with the intent of Title 17 (Zoning) of the CMC and the City of Covina General Plan; and WHEREAS, CMC Section 17.80.040 provides that after the Planning Commission initiates proceedings by motion, the Community Development Director shall give notice of a public hearing in accordance with Sections 17. 80.040.B. and C.; and WHEREAS, CMC Section 17.80.050 provides that the Planning Commission shall hold a public hearing on the date and at the time and place specified in the notice; and WHEREAS, on April 23, 2024, during a duly noticed public hearing, the Planning Commission adopted Resolution 2024-003 PC, recommending to the City Council the adoption of this Ordinance 24-05 approving PCDM 22-4 and certifying the Mitigated Negative Declaration and the amendments herein; and

Ordinance 24-05 Page 2 of 4
WHEREAS, on June 4, 2024 the City Council held a duly noticed public hearing at which time interested persons had an opportunity to testify in support of, or opposition to, the proposed amendments, and at which time the City Council considered the Mitigated Negative Declaration and all associated applications listed in Section 4 of this Ordinance.

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

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

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

SECTION 3. The City Council finds that the proposed Ordinance amends portions of the Covina Municipal Code is in substantial compliance with State law and is consistent with the following goals and policies of the General Plan and would not be detrimental to the public interest, health, safety, convenience, or welfare of the City.

1. That the site for the proposed use is adequate in size and shape to accommodate the use;
Facts: The project proposes to construct a sign with surrounding landscaping. The Project proposes no physical changes to the existing building. All existing parking is to remain. Therefore, this criterion has been met.

2. That the site for the proposed use relates to streets and highways adequate in width and pavement type to carry the quantity and kind of traffic generated by the proposed use;
Facts: The site is within an established area characterized by commercial/office uses that conform well to surrounding neighborhood infrastructure and support services with access to major streets, freeway systems, and retail services. The proposed project does impact quantity and kind of traffic generated by the use and its surrounding environment. Therefore, this criterion has been met.

3. That the proposed use is not detrimental to the surrounding properties or uses permitted in the general area;
Facts: The existing site is surrounded by commercial sites to the north and west.

Interstate 10 is located directly south of the project site and a park is located to the east.

The construction of a new freeway billboard sign is compatible with the surrounding uses. Sensitive receptors have been identified and mitigation measures will be implemented to ensure light trespass from the Project does not exceed 0.74 foot-candles above ambient lighting at light-sensitive properties. Consequently, the Project is not anticipated to produce light or glare such that daytime or nighttime views would be adversely affected. No video, flashing, or motion would be displayed, pursuant to state

Ordinance 24-05 Page 3 of 4
law. In conclusion, the proposed use will have no adverse effects on the abutting properties or the permitted use. Therefore, this criterion has been met.

4. That the conditions stated in the decision are deemed necessary to protect the health, safety and general welfare;
Facts: The Development Review Committee, comprised of Building & Safety, Environmental Services, Los Angeles County Fire, Covina Police Department, Planning and Engineering, were provided an opportunity to review and comment on the project application. In addition, the proposed use has been conditioned to ensure that no potential issues would arise during operations. The staff’s comments confirm that the proposed use would operate in a manner that would be consistent with the Covina Municipal Code and would not negatively affect the public health, safety, and general welfare of the community. Therefore, this criterion has been met.

SECTION 4. CEQA. The environmental effects of the proposed Planned Community Development Modification were analyzed in the Final MND. The City Council reviewed the Final MND and found that it reflects the independent judgment of the City Council and its staff, and is an adequate and extensive assessment of the environmental impacts of the zoning code and zoning map amendments. The City Council approved the Final MND as having been prepared in compliance with the requirements of the California Environmental Quality Act ("CEQA"), made the necessary findings, and adopted a Mitigation Monitoring and Reporting Program through Resolution CC 2024-28. Said Resolution is incorporated herein by this reference as though set forth in full. The City Council incorporates by this reference the findings and mitigation measures contained in the Final MND, and Mitigation Monitoring and Reporting Program as to the environmental effects of the zoning code and zoning map amendments.

SECTION 5. Section A.2. of the Village Oaks Office Park sign criteria shall be amended as follows:

The commercial building on the south side of Garvey Streets hall be subject to the Covina Design Guidelines and the Municipal Code sign regulations of the C-2 zone except for outdoor advertising displays adjacent to landscaped freeways which are subject to Chapter 17.56 of the Covina Municipal Code.

SECTION 6. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.

SECTION 7. This Ordinance shall take affect thirty (30) days after its adoption. The City Clerk is directed to certify to the enactment of this Ordinance and to cause this ordinance to be published and/or posted as required by law.

Ordinance 24-05 Page 4 of 4
SECTION 8. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published within 15 days after its passage, in accordance with Section 36933 of the Government Code.

PASSED, APPROVED and ADOPTED this ___ day of ______, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:

____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 24-04 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

ATTACHMENT C
ORDINANCE 24-06

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

COVINA, CALIFORNIA, APPROVING AND ADOPTING A

DEVELOPMENT AGREEMENT (DA), BETWEEN THE CITY OF
COVINA AND BULLETING DISPLAYS, LLC;” RELATED TO A

PROPOSED ADVERTISING DISPLAY ADJACENT TO LANDSCAPE
FREEWAY (FREEWAY BILLBOARD) LOCATED AT 1270 E.

GARVEY STREET (APN: 8447-031-052)

WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Government Code Sections 65864 et seq. (the Development Agreement Statute) which authorizes cities to enter into agreements for the development of real property in order to establish certain development rights in such property; and WHEREAS, pursuant to Government Code Section 65865 the City has adopted rules and regulations establishing procedures and requirements for consideration of development agreements; and
WHEREAS, Bulleting Displays, LLC c/o Mark Kudler, the applicant, has applied for several entitlements to permit the construction of a freeway billboard sign. The applicant proposes to develop a v-shape digital freeway billboard with two faces each approximately 672 square feet in area and with the overall height of sign measuring 83 feet and other associated site improvements, within the PCD/C-P – Planned Community Development /Commercial Zone (Administrative and Professional Office) on a 1.64-acre site, located at 1270 E Garvey Street – APN – 8447-031-052 – referred to herein as the “Project”; and WHEREAS, the Project requires the following land use entitlements:

1. Zoning Code Amendment (ZCA) 22-6 – to a) allow properties with C-P zoning adjacent to freeway right of way to establish an S overlay, b) establish advertising displays adjacent to landscape freeways as a conditionally permitted use and c) provide specific sign criteria for these types of signs.

2. Zone Change (ZCH) 24-01- to establish an S overlay at 1270 E Garvey Street.

3. Planned Community Development Modification (PCDM) 22-4 – to allow advertising displays adjacent to landscape freeways to be added to the list of permitted signs in Phase I areas of the Village Oaks Park adjacent to freeway right of ways and will reference Section 17.56 for specific sign criteria.

4. Conditional Use Permit (CUP) 22-10 and Site Plan Review (SPR) 22-227, to allow the construction of an “Outdoor Advertising Structure (Freeway Billboard)” at 1270 E Garvey Street zoned PCD/C-P - Planned Community Development/Commercial Zone (Administrative and Professional Office (APN 8447-031-052).

Ordinance 24-06 Page 2 of 5

5. Development Agreement (DA), between Bulletin Displays, LLC. and the City of Covina.

WHEREAS, a copy of the proposed Development Agreement is attached hereto and incorporated herein as Exhibit “A” to this Ordinance; and WHEREAS, as part of its consideration of the Project, the City prepared Draft Mitigated Negative Declaration (“MND”) (SCH 2024020529) on the Project pursuant to the California Environmental Quality Action (Public Resources Code Sections 21000 et seq., “CEQA”), the Guideline for Implementation of the California Environmental Quality Act (14 California Code of Regulations, Sections 15000 et seq., the “State MND Guidelines”); and WHEREAS, pursuant to the Development Agreement Statute, the Planning Commission held a duly noticed public hearing on April 23, 2024, on the proposed Project and has found that the proposed Development Agreement is consistent with objectives of the General Plan, compatible with the uses authorized for the project area, in conformity with public convenience and beneficial to the public welfare, and will not adversely impact the orderly development of property; and
WHEREAS, the City Council, after published notice, held a public hearing on June 4, 2024, concerning the proposed Project, and has considered the reports and documents presented by City staff, the Planning Commission’s recommendation, and the written and oral comments presented at the public hearing; and
WHEREAS, on June 4, 2024, the City Council of the City of Covina held a noticed public hearing to review the Project pursuant to the California Environmental Quality Act, Cal. Pub. Res.

Code § 21000 et seq. (" CEQA"), and the State CEQA Guidelines, 14 C. C.R. 15000 et seq. and considered the reports and documents presented by City staff, the Planning Commission's recommendation, and the written and oral comments presented at the public hearing; and WHEREAS, upon the close of the public hearing, the City Council adopted Resolution CC 2024-28, adopting the Final MND (SCH 2024020529), adopting a Mitigation Monitoring and Reporting Program for the Project. Resolution CC 2024-28 and the findings therein are hereby incorporated by this reference as though set forth in full; and WHEREAS, on June 4, 2024, the City Council of the City of Covina considered the proposed Project including Planned Community Development Modification (PCDM) 22-4, Zoning Code Amendment (ZCA) 22-6, Zone Change (ZCH) 24-01, Conditional Use Permit (CUP) 22-10, Site Plan Review (SPR) 22-227, this Development Agreement. and Final IS/MND, and Mitigation Monitoring and Reporting Program at a duly noticed public hearing at which time all interested persons had an opportunity to and did testify either in support or in opposition to this matter. The City Council considered all the testimony and any comments received regarding the proposed Project, the Final MND, and the Mitigation Monitoring and Reporting Program, prior to and at the public hearing; and
WHEREAS, all legal prerequisites prior to adoption of this Ordinance have occurred.

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

Ordinance 24-06 Page 3 of 5
SECTION 1. The forgoing recitals are true and correct and are incorporated herein and made an operative part of this Resolution.

SECTION 2. CEQA. The environmental effects of the proposed Development Agreement were analyzed in the Final MND. The City Council reviewed the Final MND and found that it reflects the independent judgment of the City Council and its staff, and is an adequate and extensive assessment of the environmental impacts of the Development Agreement. The City Council approved the Final MND as having been prepared in compliance with the requirements of the California Environmental Quality Act ("CEQA"), made the necessary findings, and adopted a Mitigation Monitoring and Reporting Program through Resolution CC 2024-28. Said Resolution is incorporated herein by this reference as though set forth in full. The City Council incorporates by this reference the findings and mitigation measures contained in the Final MND, and Mitigation Monitoring and Reporting Program as to the environmental effects of the Development Agreement. Those actions apply equally to this approval and are incorporated herein by this reference.

SECTION 3. After giving full consideration to all evidence presented at the public hearing, both oral and written, and after being fully informed, said City Council does hereby find and decide that the Project is consistent with the public interest and with the City’s General Plan:

The Project would “Maintain its variety of functional commercial office, retail and service businesses, and whenever possible seek to expand the amount and mix of businesses to attract more shoppers/customers/patrons and to increase sales tax”. New commercial space and multifamily residences that would accommodate growth and serve existing and future residents, workers, and shoppers. Thus, the proposed Project is consistent with Land Use Element Objective 2, section 3 Policies.

SECTION 4. After giving full consideration to all evidence presented at the public hearing, and in consideration of the findings stated in Section 3 of this Ordinance, the City Council of the City of Covina hereby approves the Development Agreement (DA), as set forth in Exhibit “A” and is incorporated herein by this reference as though set forth in full.

SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The Mayor is authorized to execute the Development Agreement on behalf of the City once this Ordinance is effective. The executed development agreement shall be recorded against the title to the property.

SECTION 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings and this Resolution are based are located at the City Clerk’s office located at 125 E. College Street, Covina, CA 91723. The custodian of these records is the City Clerk.

SECTION 7. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of

Ordinance 24-06 Page 4 of 5
the City of Covina hereby declare that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 8. Effective Date. This Ordinance shall become effective within thirty (30) days after its adoption.

SECTION 9. Publication. The City Clerk shall certify to the adoption of this Ordinance.

Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary of thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Covina.

SECTION 10. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall enter the same in the Book of Original Ordinances.

PASSED, APPROVED and ADOPTED this __ day of ___, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney

Ordinance 24-06 Page 5 of 5

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 24-06 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

ATTACHMENT C

EXHIBIT A
Development Agreement (Attached)

2537197_4 -1-
11/2021

DEVELOPMENT AGREEMENT
This DEVELOPMENT AGREEMENT (“Agreement”) is entered made and entered on the ____ day of ______________, 20__, by and between the City of Covina, a municipal corporation organized and existing under the laws of the State of California (“City”), and Bulletin Displays, LLC, a California Limited Liability Company (“Developer”).

RECITALS
A. California Development Agreement Law (Government Code Sections 65864-65869.5) authorizes the City to enter into agreements with persons having an interest in real property for the development of such property.

B. The Developer has a lease to construct and maintain a billboard, located at the street address known as 1720 E. Garvey Street, Covina, California (“Property”). Nothing contained in this Agreement shall be deemed to amend or modify any of the terms or provisions of the Lease.

C. The Developer has applied for approval of this Agreement in order to construct one billboard consisting of two 14 foot by 48 foot digital LED displays, per the renderings and specifications listed in Exhibit “A” and Exhibit “B” (“Billboard”).

D. If this Agreement is not otherwise terminated, in consideration of entering into this Agreement, Developer has agreed, inter alia, to pay to City, over thirty (30) years, an amount equaling not less than Three Million Four Hundred Fifty Thousand Dollars ($3,450,000).

E. In light of the substantial commitments agreed to by Developer pursuant to this Agreement, City is willing to enter this Agreement as a means of providing assurance that Developer may proceed with the construction and maintenance of the Billboard at the Property subject to the terms and conditions herein.

F. Developer, with the assistance of legal counsel, has reviewed the terms and conditions contained herein, and based thereon has found the same to be fair, just and reasonable, and the City has determined that entering this Agreement will further the interests of its residents and businesses, and that the public health, safety and welfare will be enhanced thereby.

G. The City Council has found that this Agreement and the proposed Billboard is consistent with the City’s General Plan.

H. The City has made the appropriate findings and imposed the required conditions pursuant to Title 17 (Zoning) of the Covina Municipal Code (“Code”) in order to ensure that the interests of the public are benefitted as a result of the Billboard.

I. Prior to, and in connection with, the approval of this Agreement, the City Council reviewed the Project to be developed pursuant to this Agreement as required by the California Environmental Quality Act (“CEQA.”) On _______, 202_, the City Council adopted Resolution No. ____, adopting the Mitigated Negative Declaration (“MND”) prepared for this Agreement and the Project Approvals as defined in Subsection 1.7 of this Agreement.

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J. On __________________, 20___, the Planning Commission of the City of Covina conducted a duly noticed public hearing and thereafter adopted its resolution recommending approval of this Agreement to the City Council.

K. On __________________, 20___, the City Council of the City of Covina conducted and concluded a duly noticed public hearing concerning this Agreement.

NOW, THEREFORE, with reference to the foregoing recitals and in consideration of the mutual promises, obligations and covenants herein contained, the Parties agree as follows:

1. Definitions.

1.1 “Agreement” means this Development Agreement.

1.2 “City” means the City of Covina, California.

1.3 “Billboard” means the off-premise billboard structure composed of two 14 foot by 48 foot digital, LED displays more fully described in Section 1.6, below.

1.4 “Developer” means Bulletin Displays, LLC, a California Limited Liability Company. The Developer is and shall remain the owner of the Project as a trade fixture and Developer is the owner of all of the sign permits for the Project.

1.5 “Effective Date” means the date the Ordinance adopting this Agreement takes effect..

1.6 “Project” means the construction of one new Billboard with two 14 foot by 48 foot digital LED displays, with one display facing the Interstate 10 West freeway and the other display facing the Interstate 10 East freeway, per the renderings and specifications listed in Exhibit “A” and Exhibit “B”.

1.7 “Project Approvals” means General Plan Amendment (GPA) No. _____, Zone Change (ZC) No. _____, PCD Minor Modification No.____, Conditional Use Permit _____, Site Plan Review No._____, and all amendments thereto (collectively “the Project Approvals”; individually “a Project Approval”) to provide for the construction of the Billboard at the Property.

1.8 “Property” means the real property having Assessor’s Parcel Number 8447-031- 052, and also known as 1270 E. Garvey Street, Covina, California 91724.

2. Mutual Benefits. This Agreement is entered into for the purpose of carrying out the Project in a manner that will ensure certain anticipated benefits to the City, residents of the City and the Developer. The City and the Developer agree that certain assurances on the part of each party will be necessary to achieve the desired benefits and that this Agreement is predicated upon the good faith and joint cooperation of the parties.

2.1 Benefits to the City. The benefits to the City (including, without limitation, the residents of the City) under this Agreement include the payment by the Developer of fees to the City to mitigate the potential impacts of the Project. To mitigate the Project’s impacts on persons and property in the immediate vicinity and to the City in general, the Developer shall pay the “Development Fee” to the

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City as follows: (a) during years 2022 through 2031, $110,000 per year, to be paid starting _______ (__) months after issuance of the final City building permit, and every year thereafter in years 2023-2031 on the anniversary of the initial payment for each year of operation of the Billboard; (b) during years 2032- 2041, $115,000 per year on the anniversary of the initial payment for each year of operation of the Billboard; (c) during years 2042-2051, $120,000 per year on the anniversary of the initial payment for each year of operation of the Billboard.

In addition, the Developer shall execute a Reimbursement Agreement as is described in Exhibit “C”, submit a deposit to and reimburse the City for all costs, entitlement/application fees, permitting fees, including legal fees, consultant fees and staff time, incurred by the City in connection with the processing of the Developer’s application for all entitlements for the Project, including but not limited to the preparation and review of this Agreement and all ordinances, resolutions and environmental review related thereto.

2.2 Benefits to the Developer. The Developer has expended and will continue to expend substantial amounts of time and money on the planning and development of the Project. In addition, the Developer will expend substantial amounts of time and money in contributing to the payment for the mitigation of the impacts in connection with the Project. The Developer would not make such additional expenditures without the rights conferred by this Agreement and such additional expenditures will be made in reliance upon this Agreement.

3. Term. The term of this agreement shall be Thirty (30) years from the Effective Date.

Unless this Agreement is extended in writing by the parties, this Agreement shall expire on the earlier of the following: (i) 180 days after the date that the Billboard is abandoned as an outdoor advertising structure; or (ii) unless contested by Developer, immediately upon termination of Developer’s authorization to use the Property for the purposes permitted by this Agreement. Following the expiration of the Term, the Developer shall remove the Billboard and the Property shall be restored to its original condition.

4. Binding Effect of Agreement; Authority of Developer. The burdens of this Agreement bind, and the benefits of this Agreement inure to, the successors in interest to the Parties hereto. Developer warrants and represents that it has full legal authority to utilize the Property for the use and term authorized herein; that there is no encumbrance, mortgage, or lien of any nature affecting the Property that would be adversely affected by this Agreement; that Developer has full legal right to enter into this Agreement; and that the persons executing this Agreement on behalf of Developer have been duly authorized to do so.

5. Assignment. The Developer shall not assign any interest in this Agreement or a portion of this Agreement without prior written consent of the City, which will not be unreasonably withheld. Notwithstanding the foregoing, the Developer shall have the right to assign or otherwise transfer this Agreement in its entirety without such consent, but with prior written notice to City (i) to a subsidiary, parent, or entity under common control with the Developer, or (ii) to a successor party in the event of a merger, acquisition, sale, transfer or other disposition of all or substantially all of the assets of the Developer, or (iii) as part of financial assignment to a financial institution that finances Developer and the City Manager shall be authorized to execute any documentation required to approve and/or acknowledge the financing. Any security posted by Developer may be substituted by the assignee or transferee. After a transfer or

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assignment as permitted by this Section, and written agreement of the assignee or transferee to be bound by this Agreement, then, provided the Developer is not then in breach of this Agreement, the City shall look solely to such assignee or transferee for compliance with the provisions of this Agreement.

6. Project Development.

6.1 Entitlement to Develop. The City hereby grants to the Developer the right to perform and complete the Project, and to maintain and use the Billboard, subject to the requirements imposed under this Agreement and as required by City’s Municipal Code. The City acknowledges that Developer will have to apply to the City and to the California Department of Transportation and such other entities, if any, and Developer shall in good faith ensure that necessary permits are applied for with the City and the California Department of Transportation and such other entities, if any, in an expeditious manner. The City will not oppose any permit applied for hereunder by Developer, that is consistent with the use authorized herein and otherwise with the terms of this Agreement, and will provide information and documentation as reasonably requested by Developer. Either party may elect to withdraw from this Agreement in the event that Developer determines that all necessary governmental authorizations which are required to give effect to the provisions of this Agreement cannot be obtained; provided, however, that the City must use good faith efforts and cooperation to supply all permits to be provided by the City for the Billboard under this Agreement.

6.2 Permitted Density, Height and Uses. The Developer shall construct, operate and maintain the Billboard in compliance with the conditions set forth in Exhibit “ A” and Exhibit “B” attached hereto, any and all applicable local, State and federal laws and regulations, and with the following:
(a) Surface Area. The surface area of each billboard face, poster, printing or advertisement included within the Billboard shall not exceed Six-HundredSeventy Two (672) square feet, without the City’s prior, written consent.

The square feet limit does not include any City logos or city name placed on the billboard structure.
(b) Design of Billboard. The Billboard shall not exceed Fifty-Six (56) feet in overall width, nor Eighty-Five (85) feet in overall height. There shall be two digital, illuminated changeable copy, full color LED displays, each no more than 14 feet by 48 feet , as depicted in Exhibit “ A” attached hereto. The Billboard’s technical specifications shall meet or exceed those specifications set forth in Exhibit “B” attached hereto. Plans and specifications for, and a colored rendering of, the Billboard shall be submitted in advance to the Director of Community Development (“Director”) for review and reasonable approval that is made pursuant to this Agreement, and he or she shall be authorized to approve minor modifications to the design.
(c) Repair and Maintenance. The Developer shall keep the Billboard clean, graffiti-free, fully functional 24 hours per day, 7 days per week, and otherwise in good repair. Faded, weathered, and/or deteriorated surfaces, and any and all malfunctioning LEDs, integrated electronics,

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equipment and/or other components, shall be promptly repaired or replaced. Developer may repair and/or replace the Billboard as appropriate, at its sole discretion.
(d) Advertising, Public Service Announcements.
(i) The Developer shall not allow any advertisement on the Billboard or on the Property that is likely to interfere with, mislead, or distract traffic or conflict with any traffic control device, including, but not limited to, words such as “Stop,” “Look,” “Drive-In,” “Caution,” or “Danger.”
(ii) The Developer shall not allow any advertisement on the Billboard or on the Property that displays tobacco, marijuana, “gentlemen’s clubs,” or other related sexually explicit messages. If the City Manager determines, at his or her reasonable discretion, that any advertising on the Billboard or on the Property displays tobacco, marijuana, “gentlemen’s clubs,” or other related sexually explicit messages, the City may in exercise of its police and regulatory powers, serve written notice upon the Developer requiring the removal of the tobacco, marijuana, “gentlemen’s clubs,” or other related sexually explicit messages. The Developer shall remove all tobacco, marijuana, “gentlemen’s clubs,” or other related sexually explicit advertising within three business days after the City serves such notice and any posting of the advertising that is removed within said three business days does not constitute a breach of this Agreement. The Developer shall have the right to appeal the City Manager’s decision to the City Council. (iii) In addition to providing to the City display time in connection with local emergencies, Developer shall provide five (5) weeks’ worth of display time per year for public service announcements (“PSA”) by the City on one of two displays of the Billboard, subject to availability of space. The City can chose to utilize any of the five weeks’ worth of display time on any of Developer’s other freeway digital displays within the Los Angeles Designated Market. With respect to the Billboard, Developer shall place City-provided announcements, on a space available basis, in one of the eight (8) display images in the current rotation of display images at any time. The City shall be responsible for providing Developer with approved advertising copy and shall also be responsible for any costs associated with providing Developer with artwork in acceptable format per Developer’s specifications. City’s use is subject to the following conditions and parameters: all copy must be submitted to Developer at least five (5) days before the proposed display date and will be subject to Developer’s standard advertising copy rejection and removal policies, which allow Developer, in its sole discretion, to approve or disapprove copy and remove copy once posted or displayed. The elapsed time between any such copy removal by Developer, and the
subsequent display of replacement City-provided copy, shall be

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added to the City’s allotment of advertising display time provide in this Section 6.2.d.(iii).
(iv) The Developer shall provide a quarterly report to the City documenting the date, time and duration of each PSA displayed as required by this Section. Any time that the City does not use its allotted time or does not provide timely advertising copy ready to post, Developer does not have to provide that allotted time and City cannot cumulatively bank their allotted time since any unused annual portion of the allotted time will be expired at the end of any particular year.
(v) Developer shall provide a ten percent (10%) discount on advertising rates to businesses located in the City of Covina. (vi) Developer shall increase the size of the city logo to the satisfaction and approval of the Community Development
Director.

6.3 Ministerial Approvals. The Developer shall be required to obtain from the City, and pay all customary fees and charges incidental thereto, for a building permit to construct the Billboard and/or otherwise as required to complete the Project, and an annual City business license. City will use its best efforts to expedite the processing of Developer’s applications to install the Billboard.

6.4 Changes in Project. Subject to the terms of this Agreement and not including any routine maintenance or servicing of the Billboard, which includes replacement of any or all of the digital displays components, the Developer shall not be entitled to any change, modification, revision or alteration in the permitted uses of the Property, the density or intensity of use, and the design, improvement and/or standards and specifications applicable to the Project or use of the Property without applying for further City review and approval.

7. Rules, Regulations and Official Policies.

7.1 "Land Use Regulations" means all ordinances, resolutions, laws, general or specific plans, codes, rules, regulations and official policies of City adopted and effective on or before the Effective Date of this Agreement governing development and use of land, including, without limitation, the permitted uses of land, the density or intensity of use, the maximum height and size of proposed structures, the provisions for reservation or dedication of land for public purposes, environmental review; and the design, improvement, installation and construction standards and specifications, all as applicable to the development of the Property with the Project. "Land Use Regulations" does not include any City ordinance, resolution, code, rule, regulation or official policy, governing:
a. the conduct of businesses, professions, and occupations; b. taxes and assessments;
c. the control and abatement of nuisances;

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d. the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; and/or
e. the exercise of the power of eminent domain.

7.2 Conflicting Enactments. Any change in the Land Use Regulations, including, without limitation, any change in any applicable City general, area or specific plan, zoning, subdivision or building regulation, adopted or becoming effective after the Effective Date of this Agreement, which would, absent this Agreement, otherwise be applicable to the installation, maintenance and/or use of the Billboard by Developer and which would conflict in any way with or be more restrictive than the Land Use Regulations, unless otherwise provided in this Agreement or necessary to protect the public health or safety, shall not be applied by City to the Billboard. The parties acknowledge and agree that any such subsequent conflicting enactment may apply to any existing off-site signs, other than the Billboard.

7.3 Development Fees. Except as provided in this Agreement, the City shall not, without the prior written consent of the Developer, increase any fees applicable to the Project, or impose any new fees for the Project that did not exist as of the Effective Date of this Agreement, except those fees set forth in this Agreement or related to building in effect on the Effective Date of this Agreement. Developer shall pay any fees applicable to the Project at the rates that are in effect on the Effective Date of this Agreement.

7.4 Timing of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), that failure of the parties herein to provide for the timing of development resulting in a later adopted initiative restriction the timing of development to prevail over such parties’ agreement, it is the parties’ intent to cure that deficiency by acknowledging and providing that Developer shall have the right (without obligation) to install the Billboard in such order and at such rate and at such times as Developer deems appropriate within the exercise of its subjective business judgment.

7.5 Subsequent Actions and Approvals. This Agreement shall not prevent the City in subsequent actions after the Effective Date applicable to the Property from applying new rules, regulations and policies which do not conflict with the Land Use Regulations, or conflict with this Agreement and the rights of the Developer hereunder, nor shall this Agreement prevent the City from denying or conditionally approving any subsequent development project application on the basis of such existing or new rules, regulations and policies.

7.6 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following shall apply to the development of the Property:
a. Procedural regulations not inconsistent with this Agreement, relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure.

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b. Changes adopted by the International Conference of Building Officials as part of the then most current versions of the Uniform Building Code, Uniform Fire Code, Uniform Plumbing Code, Uniform Mechanical Code, Uniform Solar Energy Code, Uniform Administrative Code, National Electrical Code, and any other Uniform Code, and also adopted by CITY.

Notwithstanding any provision of this Agreement to the contrary, construction in connection with the Project shall be subject to changes occurring from time to time in the provisions of the CITY’s building standards codes, including the CITY’s building, mechanical, and electrical regulations that are based on the recommendations of multi-state professional organization(s) and become applicable throughout the CITY, including the California Building Code and other similar or related uniform codes.
c. State and Federal Laws. Changes in, or additions to, the Land Use Regulations shall apply to the Project if such changes or additions are specifically mandated to be applied to developments such as the Project by applicable California or federal laws or regulations that go into effect on or after the Effective Date, which prevent or preclude compliance with one or more of the provisions of this Agreement. If City or Developer believes that such a change or addition required by California or federal law or regulation exists, then that party shall provide the other party hereto with a copy of such California or federal law or regulation and a statement of the nature of its conflict with the provisions of the Land Use Regulations and/or of this Agreement. In the event that any such change or addition shall be required by California or federal law or regulation, then the provision(s) of this Agreement that require said change(s) shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations and City shall reasonably cooperate with Developer in minimizing the impact of such change upon the Project and the Property. This Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. Developer and City shall have the right, but not the obligation, to challenge the new law preventing compliance with the terms of this Agreement, and in the event such challenge is successful, this Agreement shall remain unmodified and in full force and effect. City is under no obligation to refund any fees, costs, or payments in the event any Federal or State law prohibits the installation of the Billboard after the City’s receipt of any fees, costs or payments. Developer’s payments prior to said prohibition shall be neither refundable nor subject to pro-ration.

8. Cooperation/Implementation.

8.1 No Inconsistent Actions. Except as required by any unstayed court order, neither City, nor any of its agencies, officers or employees, shall take any action that is inconsistent with the terms of this Agreement.

8.2 Further Assurances; Covenant to Sign Documents. Each party shall take all actions and do all things, and execute, with acknowledgment or affidavit, if

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required, any and all documents and writings that may be necessary or proper to achieve the purposes and objectives of this Agreement.

8.3 State, Federal or Case Law. Where any state, federal or case law allows City to exercise any discretion or take any act with respect to that law, City shall, in an expeditious and timely manner, at the earliest possible time, (a) exercise its discretion in such a way as to be consistent with, and carry out the terms of, this Agreement and (b) take such other actions as may be necessary to conform with the terms of this Agreement.

8.4 Other Governmental Bodies. To the extent that City, its City Council, Planning Commission or any other City agency constitutes and sits as any other board or agency, it shall not take any action that is inconsistent with the terms of this Agreement. Nothing in this paragraph shall restrict or inhibit any individual member of the City’s City Council, Planning Commission or any other City agency who is also a member of another governmental body, the composition of which is different than the City’s City Council, Planning Commission or other City agency, from exercising his or her discretion on such other governmental body.

9. Indemnification and Legal Challenge.

9.1 Participation in Litigation: Indemnity. To the full extent permitted by law, Developer agrees to and shall fully indemnify, hold harmless, and defend, City and its respective elected and appointed officials, officers, members, agents, employees, and representatives (each an “Agent” and collectively “Agents”) from any and all claims, suits, causes of action, fines, penalties, proceedings, damages, injuries or losses of any name, kind or description, specifically including attorneys’ fees (collectively, “Claim(s)”), arising in any way out of or challenging the validity of this Agreement, any of the related Project Approvals, the Mitigated Negative Declaration or the CEQA Determination for the Project (“CEQA Determination”). Developer’s indemnification obligation shall include, but not be limited to, actions to attack, set aside, void, or annul any approval, should it occur, related to this Agreement, any of the other related Project Approvals, the Mitigated Negative Declaration or the CEQA Determination, including actions invoking Planning and Zoning Law or CEQA. City shall be entitled to select, at its sole and absolute discretion, its own counsel to conduct its defense, and Developer shall be responsible for paying all fees and costs of counsel the City selects except as provided herein. Developer shall pay all of City’s defense costs, including without limitation, court costs and attorney fees that City may be required by a court to pay as a result of such Claims(s).

Although the City may choose to change its legal counsel at any given time, the Developer will not pay for the City to hire more than one law firm at a time to conduct the City’s defense. Such participation in the defense of such Claim(s) or the retention of separate counsel by City shall not relieve Developer of its obligations under this Agreement. All indemnity provisions set forth in this Agreement shall survive termination or expiration of this Agreement.

9.2 City shall promptly provide written notice to Developer of any Claim(s). City shall take all necessary and reasonable steps to provide such notice to Developer in a timely fashion and in a manner that will not result in any substantial prejudice to Developer’s ability to defend the relevant Claim(s). Such notice shall contain a

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copy of any relevant pleadings filed in connection with the relevant Claim(s). City acknowledges that Developer desires to provide the defense of any Claim(s) in a cost efficient manner. City and Developer shall coordinate and cooperate in their defense activities, whether City is participating in defense undertaken by Developer or is retaining separate counsel. As used in this Agreement, cooperation does not include City having to take any action or make any decision that City does not believe, in the exercise of its good faith judgment, is in its own best interest. Unless expressly provided to the contrary, nothing in this Agreement shall be construed in a manner that requires City to exercise its discretion in a particular manner.

9.3 Developer may not resolve such Claim(s) without City’s prior written consent. In all events, City shall have the right to resolve any such Claim(s) in any manner, in its discretion, provided, however, Developer’s consent shall be required (and may be granted or withheld in Developer’s discretion) if the resolution of the Claim(s) shall require a payment by Developer or limit Developer’s rights under the Development Approvals, including, without limitation, this Agreement.

Developer’s obligation to pay the cost of any such Claim(s), including judgment, post-judgment motions, and any and all appeals, shall extend until any Claim is completely concluded, judgment is entered and completely satisfied.

9.4 In the event Developer fails or refuses to reimburse City for its cost to defend any Claim(s), CITY shall have the right to terminate this Agreement, subject to the notice and cure requirements of Section 15 below. Additionally, in the event of any such Claim(s), the Term of this Agreement shall be tolled for the period during which such Claim(s) are proceeding until fully and finally resolved.

9.5 In order to ensure compliance with this Section 9, within twenty (20) calendar days after notification by City of the receipt of any Claim(s), Developer shall deposit with City cash or other security in the amount of fifty thousand dollars ($50,000), satisfactory in form to the City Attorney, guaranteeing indemnification or reimbursement to City of all costs and fees related to any action triggering the obligations of this Section 9. If City is required to draw on that cash or security to indemnify or reimburse itself for such costs or fees, Developer shall restore the deposit to its original amount within fifteen (15) days after notice from City that replenishment is required. Additionally, if at any time the City Manager determines that an additional deposit or additional security in an amount not to exceed an additional fifty thousand dollars ($50,000) is necessary to secure the obligations of this Section 9, Developer shall provide such additional payment or security within fifteen (15) days of notice from the City Manager.

9.6 The foregoing indemnity shall not include claims or liabilities arising from the sole, active negligence or willful misconduct of the City, or its officers, agents or employees who are directly responsible to the City.

10. Insurance.

10.1 Types of Insurance.
(a) Liability Insurance. Beginning on the Effective Date hereof and until completion of the Term, Developer shall, at its sole cost and expense,

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keep or cause to be kept in force for Developer comprehensive broad form general liability insurance against claims and liabilities covered by the indemnification provisions of Section 9. Developer has agreed to indemnify the City hereunder to the extent of the liability insurance coverage with respect to its use, occupancy, disuse or condition of the Site, improvements or adjoining areas or ways, affected by such use of the Site or for property damage, providing protection of at least Two Million Dollars ($2,000,000) for bodily injury or death to any one person, at least Two Million Dollars ($2,000,000) for any one accident or occurrence, and at least Two Million Dollars ($2,000,000) for property damage. Developer shall also furnish or cause to be furnished to the City upon City’s request evidence that any contractors with whom Developer has contracted for the performance of any work for which Developer is responsible maintains the same coverage required of Developer. (b) Worker’s Compensation. Developer shall also furnish or cause to be furnished to the City upon City’s request evidence that any contractor with whom Developer has contracted for the performance of any work for which Developer is responsible hereunder carries worker's compensation insurance as required by law.
(c) Insurance Policy Form, Sufficiency, Content and Insurer. All insurance required by express provisions hereof shall be carried only by responsible insurance companies qualified to do business by California with an AM Best Rating of no less than “A”. All such policies shall be non-assignable and shall contain language, to the extent obtainable, to the effect that (i) the insurer waives the right of subrogation against the City and against the City’s agents and representatives except as provided in this Section; (ii) the policies are primary and noncontributing with any insurance that may be carried by the City, but only with respect to the liabilities assumed by Developer under this Agreement; and (iii) the policies cannot be canceled or materially changed except if written notice by the insurer is given to the City or the City’s designated representative as expeditiously as the insurance company agrees to provide such notice. Developer shall furnish the City with certificates evidencing the insurance required to be procured by the terms of this Agreement.

10.2 If Developer fails or refuses to procure or maintain insurance as required hereby or fails or refuses to furnish the City with required proof that the insurance has been procured and is in force and paid for, the City, after complying with the requirements of Section 15, may view such failure or refusal to be a default hereunder.

11. Amendment or Termination of Agreement. Except as otherwise provided herein, this Agreement may be amended or terminated in whole or in part only by mutual written consent of the Parties.

12. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between City and Developer and clarifications may be appropriate with respect to the details of performance of City and Developer. If and when, from time to time, during the term of this Agreement, City and Developer agree that such

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clarifications or non-substantive changes to this Agreement are necessary or appropriate, they shall effectuate such clarifications through operating memoranda approved by City and Developer, which, after execution, shall be attached hereto as addenda and become a part hereof, and may be further clarified from time to time as necessary with future approval by City and Developer. No such operating memoranda shall constitute an amendment to this Agreement requiring public notice or hearing. The City Manager shall be authorized to make the determination whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such a character to constitute an amendment hereof pursuant to Section 11 above. The City Manager may execute any operating memoranda hereunder.

13. Governing Law and Venue. The provisions of this Agreement shall be governed by the laws of California. Venue for any legal action shall be the Superior Court of the County of Los Angeles, California.

14. Developer Remedy Limited to Specific Performance; No Monetary Damages Remedy Against City. The nature of a development agreement under the Development Agreement Law is a very unusual contract involving promoting a development project facing many complex issues including geologic, environmental, financial, market, regulatory and other constantly evolving factors over an extremely long time frame. The high level of uncertainty and risk involved justify the extraordinary commitments made to Developer by City or vice versa. The parties acknowledge that City would not have entered into this Agreement had it been exposed to monetary damages claims from Developer for any termination, or Default hereunder. As such, the parties agree that in no event shall Developer be entitled to recover monetary damages of any amount or of any kind against City for City’s termination or Default under this Agreement. For purposes of enforcement, therefore, Developer’s sole remedy for any Default of this Agreement shall be the remedy of specific performance. Before Developer takes action to obtain a judicial order for specific performance against City, Developer shall comply with the notice and cure provisions of Section 15.

15. Default; Notice and Opportunity to Cure; Termination.

15.1 Default; Notice and Opportunity to Cure. A non-Defaulting Party in its discretion may elect to declare a Default under this Agreement in accordance with the procedures hereinafter set forth for any alleged Default of the other party ("Defaulting Party"). However, the non-Defaulting Party must provide written notice to the Defaulting Party setting forth the nature of the breach or failure and the actions, if any, required by the Defaulting Party to cure such breach or failure.

The Defaulting Party shall be deemed in Default under this Agreement, if the breach or failure can be cured, but the Defaulting Party has failed to take such actions and cure such Default within thirty (30) days after the date of such notice.

However, if such Default cannot be cured within such thirty (30) day period, and if the Defaulting Party does each of the following:

1. Notifies the non-Defaulting Party in writing with a reasonable explanation as to the reasons the asserted Default is not curable within the thirty (30) day period;

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2. Notifies the non-Defaulting Party of the Defaulting Party's proposed cause of action to cure the Default;

3. Promptly commences to cure the Default within the thirty (30) day period;

4. Makes periodic reports to the non-Defaulting Party as to the progress of the program of cure; and

5. Diligently prosecutes such cure to timely completion, then:

The Defaulting Party shall not be deemed in Default of this Agreement once the Default has been timely cured.

15.2 Termination Notice. Upon receiving a Default Notice, should the Defaulting Party fail to timely cure any Default, or fail to diligently pursue such cure as prescribed above, the non-Defaulting Party may, in its discretion, provide the Defaulting Party with a written notice of intent to terminate this Agreement (“Termination Notice”). The Termination Notice shall state that the non-Defaulting Party will elect to terminate the Agreement within thirty (30) days and state the reasons therefor (including a copy of any specific charges of Default) and a description of the evidence upon which the decision to terminate is based. Once the Termination Notice has been issued, the non-Defaulting Party’s election to terminate this Agreement shall only be rescinded (i) if the Defaulting Party fully and completely cures all Defaults prior to the date of termination, or (ii) if the nonDefaulting Party elects to revoke the Termination Notice.

15.3 Legal Action. In the event that the Developer fails to cure or correct any Default, the City may: (i) terminate this Agreement; or (ii) institute an action at law or equity against the Developer to seek specific performance of the terms of this Agreement, or to cure, correct, or remedy any Default, to recover the specified amounts due for failure to comply with the terms of this Agreement.

15.4 No Cause Termination. Developer, in its discretion, may terminate this Agreement upon ninety (90) days notice for any reason. In the event of a termination by Developer under this Section, Developer acknowledges and agrees that the City may retain all fees, including Development Fees paid up to the date of termination, and Developer shall pay the prorated amount of Development Fees within sixty (60) days after the date of termination that equates to the percentage of time elapsed in the year of the Term at the time of termination. If the Developer terminates this agreement within the first two years of the anniversary of the date of this agreement, Developer shall reimburse the City for those items listed in Exhibit “D” , but said reimbursement shall be limited to Thirty-Thousand ($30,000.00) dollars (Reimbursement Costs to be Paid by Developer in Event of Termination).

16. Periodic Review of Compliance with Agreement.

16.1 Annual Review. Each year on the anniversary of the Effective Date (or, in the event such date falls on a weekend or holiday, the next available business day), throughout the term of this Agreement, either the Developer or City may request

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that the Developer and City meet or exchange necessary correspondence and review, pursuant to Government Code Section 65865.1, Such meeting, if desired shall take place at the offices of the Developer, or at such other places or times that are mutually agreed upon by the parties. If as a result of such review, the moving party reasonably determines, on the basis of substantial evidence presented at such meeting, that the responding party has not complied in good faith with the terms and conditions hereof, the moving party shall provide written notice thereof (hereinafter referred to as the "Notice of Non-Compliance"), specifying in detail and reasons for such finding. After the moving party delivers the Notice of Non-Compliance, the responding party shall have the right to cure such non-compliance as provided in Section 15 above. In the event that the responding party does not timely cure the noncompliance after a Notice of NonCompliance is delivered by the moving party, the moving party may proceed to terminate this Agreement on ten (10) days prior written notice to the responding party in accordance with the termination procedure set for in Section 15 above.

16.2 Good Faith Compliance. During each periodic review, the Parties shall be required to reasonably demonstrate good faith compliance with the terms of this Agreement.

16.3 Statement of Compliance. Within (10) days following any written request which either City or Developer may make from time to time, the other shall execute and deliver to the requesting party a statement certifying that: (1) this Agreement is unmodified and in full force and effect or, if there have been modifications hereto, that this Agreement is in full force and effect, as modified, and stating the date and nature of such modifications; (2) there are no current uncured defaults under this Agreement or specifying the dates and nature of any such defaults; and (3) any other reasonable information requested. The failure to deliver such statement within such time shall be conclusive upon the party that fails to deliver such statement that this Agreement is in full force and effect without modification and that there are no uncured defaults in the performance of the requesting party. The Director of Community Development shall be authorized to execute any certificate requested by Developer hereunder.

17. Waivers and Delays.

17.1 Waiver. Except as otherwise specified in this Agreement, failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, and failure by a party to exercise its rights upon a default by the other party hereto, shall not constitute a waiver of such party’s right to demand strict compliance by such other party in the future.

17.2 Third Parties. Nonperformance shall not be excused because of a failure of a third person.

17.3 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other acts of God, fires, wars, riots or similar hostilities, strikes, other labor difficulties, federal or state government regulations, court actions, or other causes beyond the party’s reasonable control.

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18. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in the United States mail, postage prepaid and return receipt requested and addressed as follows:

TO CITY: City of Covina
Attn: City Manager
125 E. College Street
Covina, CA 91723
TO DEVELOPER: Bulletin Displays, LLC
Attn: IMPORTANT LAND LEASE NOTICE
3127 E. South Street, Ste. B
Long Beach, CA 90805
Either party may change the address stated herein by giving notice, in writing, to the other party and thereafter notices shall be addressed and submitted to the new address. Notices shall be deemed received upon personal delivery or upon the third day following deposit in the United States mail in the manner set forth above.

19. Attorney’s Fees. If action is brought by any party, the prevailing party shall recover all attorney’s fees and costs and expenses incurred in connection with such action to the extent permitted herein. Attorneys’ fees under this Section shall include attorneys’ fees on any appeal and in addition, a party entitled to attorneys’ fees shall be entitled to all other reasonable costs and expenses incurred in connection with such action. In addition to the foregoing award of attorneys’ fees to the prevailing party, the prevailing party in any lawsuit shall be entitled to its attorneys’ fees incurred in any post judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.

20. Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between the City, on one hand, and the Developer, on the other, is that of a government entity regulating the development of private property.

21. Project Timing. Developer shall have one (1) year from the Effective Date of this Agreement to complete the construction of the Billboard, but this time limit shall be extended for the time the City takes to process any permits or complete any inspections and such one year period, as extended, shall be shortened by delays in processing permits or conducting inspections that are caused by Developer’s failure to submit (or delay in submitting) necessary applications, fees or information for permits or failing to cooperate with inspections, as applicable.

22. No Third Party Beneficiary. This Agreement is not intended, nor shall it be construed, to create any third party beneficiary rights in any person who is not a party, unless expressly otherwise provided.

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23. Authority to Execute. Each person executing this Agreement on behalf of the Developer warrants and represents that he or she has the authority to execute this Agreement on behalf of the Developer and to bind the Developer to the performance of its respective obligations hereunder.

24. Severability of Terms. If any term or provision of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to enforce or otherwise deprive the Developer or the City of the benefits of this Agreement.

25. Subsequent Amendment to Authorizing Statute. This Agreement has been entered into in reliance upon the provisions of the statute governing development agreements (Government Code Section 65864 - 65869.5 inclusive) in effect as of the Agreement date. Accordingly, to the extent the subsequent amendment to the Government Code would affect the provisions of this Agreement, such amendment shall not be applicable to this Agreement unless necessary for this Agreement to be enforceable or unless this Agreement is modified pursuant to the provisions set forth in the Agreement and Government Code Section 65868.

26. Integrated Agreement. This Agreement consists of this document and all attached Exhibits, each of which is incorporated by reference herein. The provisions of this document shall govern over any inconsistent provisions contained in any Exhibit hereto.

27. Entire Agreement. This Agreement sets forth an contains the entire undertaking and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

28. Construction of Agreement. The provisions of this Agreement and the exhibits hereto shall be construed as a whole according to their common meaning and not strictly for or against Developer or City and consistent with the provisions hereof, in order to achieve the objectives and purposes. Wherever required by the context, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine or neuter genders, or vice versa. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

29. Advice; Neutral Interpretation. Each Party has received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions hereof. This Agreement has been drafted through a joint effort of the Parties and their counsel and therefore shall not be construed against either of the Parties in its capacity as draftsperson, but in accordance with its fair meaning.

30. Time is of the Essence. Time is of the essence of this Agreement and of each and every term and condition hereof.

31. Recordation. In order to comply with Government Code Section 65868.5, the parties do hereby direct the City Clerk to record a copy of this Agreement against the Property with

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the County Recorder of Los Angeles County within ten (10) days after the Effective Date and the City Clerk shall supply both Parties with certified copies thereof.

32. Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts hall be construed together and have the same effect as if all of the parties had executed the same instrument.

33. City Park Sign (s). Shall City desire to pursue a Park Sign with Developer, parties may meet and confer to discuss costs, placement, sizing and to content to be displayed on sign.

Dated: , 202__ BULLETIN DISPLAYS, LLC
By: _________________________________
Print Name:

Title:

By: _________________________________
Print Name:

Title:

Dated: , 202__ CITY OF COVINA
By: _______________________________

City Manager
ATTEST:

By:

City Clerk
APPROVED AS TO FORM:

By:

City Attorney

EXHIBIT A

PHYSICAL DESCRIPTION/RENDERING OF BILLBOARD

EXHIBIT B

TECHNICAL SPECIFICATIONS FOR BILLBOARD

UNLESS OTHERWISE APPROVED IN WRITING BY THE DIRECTOR, THE BILLBOARD SHALL COMPLY WITH THE FOLLOWING TECHNICAL SPECIFICATIONS (Per Face):

EXHIBIT C

REIMBURSEMENT AGREEMENT

EXHIBIT D

REIMBURSEMENT COSTS TO BE PAID BY DEVELOPER IN EVENT OF TERMINATION

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: June 18, 2024
Title: Establishment of Fiscal Year 2024-2025 Article XIIIB Appropriation Limit for the City of Covina
Presented by: Anita Agramonte, Director of Administrative Services Bei Zou, Senior Accountant
Recommendation: Adopt Resolution CC 2024-39 establishing the Fiscal Year 2024-2025 Article XIIIB Appropriation Limit for the City of Covina.

EXECUTIVE SUMMARY / BACKGROUND:

As a means to limit the growth of government spending, the Gann Initiative, or appropriation limit calculation, was approved by California voters in 1979; this resulted in Article XIIIB of the California Constitution which requires that each level of government establish annual appropriation limits based upon a specific formula. The appropriation limit calculations were modified in June 1990 as a result of the passage of Proposition III. The imposed limitations require that calculations utilize anticipated tax proceeds as well as growth factors in population and inflation; these factors are provided by the California Department of Finance.

DISCUSSION:

The City of Covina’s appropriation limit for Fiscal Year 2024-2025 is $133,301,998. The proceeds from taxes are $43,585,000 and are below the appropriation limit. There is no excess of taxes over the appropriation limit as defined by Article XIIIB.

Any challenge to the 2024-2025 appropriation limit calculation must be done within forty-five days of the adopted resolution effective date.

FISCAL IMPACT:

This action will set the appropriation limit to $133,301,998.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

None.

Respectfully submitted,

RESOLUTION CC 2024-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ESTABLISHING THE 2024-2025 APPROPRIATION

LIMIT FOR THE CITY OF COVINA
WHEREAS, Title 1, Division 9, Section 7910 of the Government Code requires that each local government establish its appropriation limit by resolution each fiscal year at a regularly scheduled City Council meeting or a noticed special meeting; and WHEREAS, any challenge to the 2024-2025 fiscal year appropriation limit must be brought within forty-five days of the resolution effective date.

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

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

SECTION 2. The City Council does hereby determine and declare that the City of Covina’s appropriation limit for Fiscal Year 2024-2025 is $133,301,998 per attached Exhibits A and B.

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

APPROVED and PASSED this 18th day of June, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

ATTACHMENT A
Resolution CC 2024-39 Page 2 of 2

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-39 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of June, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

Appropriation Limit Calculation
Appropriation limit for the 2023-2024 fiscal year 128,583,002 $ Per Capita Cost of Living Change 1.0362
Percent Growth in County Population x 1.0005
Total Adjustment 1.0367
2024-2025 Appropriation Limit 133,301,998 $
Appropriation Subject to Limitation
2024-2025 Appropriation Limit 133,301,998 $
Less: Proceeds from taxes (43,585,000)
Add: Users Fees in excess of costs -
Total Appropriations Under Limitation 89,7 $ 16,998

EXHIBIT A
Based on 2024-2025 Budget

CITY OF COVINA, CALIFORNIA

APPROPRIATION LIMIT CALCULATION

General Fund
Taxes
Property Taxes - Current Year Secured 10,385,000 - 10,385,000 $ Sales and Use Taxes 20,030,000 - 20,030,000 $
Franchises - 2,362,500 2,362,500 $
Utility Users Tax 5,900,000 - 5,900,000 $
Other Taxes 630,000 - 630,000 $
License & Permits - 1,076,750 1,076,750 $
Fines & Foreitures - 1,219,500 1,219,500 $
Intergovernmental 40,000 933,500 973,500 $
Property Tax in Lieu of MVL 6,600,000 - 6,600,000 $
Other Inter-agency revenue - - - $
Charges for Current Services - User Fees - 3,507,012 3,507,012 $ Miscellaneous Revenue - 996,000 996,000 $
Net - Transfers - 285,591 285,591 $
Total 43,585,000 $ 10,380,853 $ 53,965,853 $
Proceeds From
Taxes
Non ProceedsRestricted-Non
Discretionary
Total
Proceeds/NonProceeds

SCHEDULE OF ESTIMATED REVENUES

PROCEEDS AND NON-PROCEEDS FROM TAXES
Based on 2024-2025 Budget

CITY OF COVINA, CALIFORNIA

EXHIBIT B

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: June 18, 2024
Title: Professional Services Agreement and Authorization for Sole-Source Purchase of Water Meters, Repair Parts and Supplies
Presented by: Rafael M. Fajardo, Interim Director of Public Works/City Engineer Recommendation: Authorize a sole-source Professional Services Agreement with Ferguson Waterworks (authorized sole distributor) for the purchase of Neptune Technology Group water meter equipment and supplies in an amount not-to-exceed $312,500 over a five-year term through June 30, 2029.

EXECUTIVE SUMMARY:

In April 2010, the City entered into an agreement with Global Water Management, LLC (Global) for water utility billing services while upgrading to an Advanced Metering Infrastructure (AMI) and Automated Meter Reading (AMR) system. During this time, the City also approved the purchase of geographic information system (GIS) equipment that was compatible with the Global AMI and AMR system. As part of this effort, 8,665 Neptune Technology Group (Neptune)-manufactured smart water meters were installed to support the AMI System.

Moreover, Neptune utilizes Ferguson Waterworks as its sole distributor in the State of California for water meters, reading systems, parts, networks and other value-added services (Attachment A). As proposed, the City’s Department of Public Works is proposing to enter into a five-year agreement with Ferguson Waterworks to purchase requisite replacement parts and equipment for the City’s water system as needed.

DISCUSSION:

The Department of Public Works typically conducts a review of its operational practices to ensure its operations remain up-to-date with industry standards and best practices. As such, the Department recently completed a review of purchasing protocols for water meters as well as pertinent repair parts and discovered that Ferguson Waterworks is the only distributor of Neptune-manufactured smart meters in the State of California. In an effort to provide the City’s Water Division with the ability to respond to meter equipment failures and other operational challenges expeditiously and effectively, Public Works Department and Finance Department staff concur that purchasing all necessary equipment and supplies directly from Ferguson Waterworks complies with the City’s Municipal Code Section 2.20.080, entitled Bidding, Required and Exceptions and will help to expedite service delivery to the City’s water customers.

CMC Section 2.20.080 extends the City Council the flexibility to waive the formal bid procedures prescribed in CMC Sections 2.20.100 through 2.20.160 under the following conditions:

A. Purchase of supplies, services, or equipment shall be by bid procedures pursuant to CMC 2.20.090 through 2.20.170.

B. Procurement by noncompetitive proposals may be made only when at least one of the following circumstances applies:

1. The supply, service, or equipment is available from only one source;

2. The public exigency or emergency for the supply, service, or equipment will not permit a delay

resulting from competitive solicitation;

3. After solicitation of a number of sources, competition is determined inadequate;

4. The amount involved is $10,000 or less; or

5. The services being procured are professional or specialized services as identified within CMC

2.20.175.

As the sole, authorized distributor of Neptune water meters, reading systems, and related parts, the Department of Public Works recommends that the City Council authorize the award of a five (5) year sole-source purchasing agreement with Ferguson Waterworks for the timely procurement of water meters, reading systems, parts and networks in an amount not-to-exceed $62,500 per fiscal year and an amount not-to-exceed $312,500 over the term of the agreement. The annual and five-year term limit amounts are based on historical purchase trends and forecasted needs for the upcoming fiscal year.

FISCAL IMPACT:

There is no fiscal impact associated with this sole-source Purchasing Agreement. Funds have been budgeted into the FY 24-25 Water-Water Production Budget in account number 6010-5080-52428. For future years of the Agreement, funding will be allocated in this budget line item accordingly.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

The actions proposed herein have been reviewed for compliance with the California Environmental Quality Act (CEQA) and are exempt per Section 15061 (b) (3). The actions are covered by the general rule that CEQA only applies to projects that have the potential for causing a significant effect on the environment. The contents of this memo will not result in any significant effect on the environment.

Respectfully submitted,

NePTUNe

TECHNOLOGY GROUP
April 19th, 2024
Attn: Mike Melinte
City of Covina
534 Barranca Ave. Covina, CA 91723
Ref.: Ferguson Waterworks- Sole Authorized Distributor - State of california Neptune Technology Group Inc. is pleased to affirm that Ferguson Waterworks is the sole authorized distributor in the State of California for Neptune RF meter reading equipment and software, Neptune water meters and Neptune parts.

Ferguson Waterworks is authorized by Neptune to submit an offer for Neptune water meters and related products.

Thank you for your interest in Neptune products. If you have any questions, please contact your local Ferguson representative, Adam Milauskas, 949-467-4758, or your local Neptune representative, Tony Glassier, 303-941-1674.
1600 Alabama
Hlghway229
Tallassee, AL 36078
800-633-8754
neptu etg .c rr
Tony Glassier
Regional Manager

ATTACHMENT A

ATTACHMENT B

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2024 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Ferguson Waterworks, Inc a California corporation. (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor as the sole-source vendor for the purchase of water meters, repair parts, and supplies.

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

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

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2029 unless sooner terminated as provided in Section 14 of this Agreement. In no event shall the contract be extended beyond June 30, 2029.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Three Hundred and Twelve Thousand Five Hundred Dollars ($312,500) (the “maximum compensation”), based on the hourly rates set forth in the Approved Fee Schedule, attached hereto as Exhibit A. Any terms in Exhibit A, other than the payment rates and schedule of payment, are null and void.

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

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

3. Consultant’s Services.

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

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

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

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

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

F. Compliance with Laws. The Consultant shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section. 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 CNG Preventative Maintenance. Consultant shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit C.

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

4. Method of Payment.

A. Invoices. Consultant shall submit to City an invoice, on a 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 Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.

B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City

shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.

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

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

6. Independent Contractor.

A. Consultant is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’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 Consultant’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. Consultant shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Consultant’s personnel require to perform any of the services required by this Agreement. Consultant shall perform the services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of the services 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 Consultant from time to time for Consultant’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 Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing

services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of the services under this Agreement and as required by law. Consultant 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, Consultant and any of its officers, employees, agents, and subcontractors providing any of the services 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. Consultant 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 Consultant’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 Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Consultant’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. Consultant agrees that, in providing its employees and any other personnel to City to perform the services under this Agreement, Consultant 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, Consultant 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. Consultant 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 Consultant’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Consultant’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 Consultant or provided for performance of this Agreement are deemed confidential. Consultant shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Consultant shall return all data to City upon the expiration or termination of this Agreement. Consultant’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.

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

Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section 9 into any subcontract that Consultant 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, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City

harmless from any failure of Consultant to comply with applicable workers’ compensation laws.

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

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

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 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. Consultant’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. Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Four Million Dollars ($4,000,000) per project or location.

If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Consultant

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

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 Consultant’s insurance and shall not contribute with it.

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

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

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

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a

reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

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

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three (3) years. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

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

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

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

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

If to City: If to Consultant:

Attn: Public Works, Engineering Mike Balla, CA Area Manager City of Covina Ferguson Waterworks
125 E. College Street 25572 Avenue Stanford
Covina, California 91723 Santa Clarita, CA 91355

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

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

Ferguson Waterworks, 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

APPROVED FEE SCHEDULE

EXHIBIT B

SCOPE OF SERVICES

EXHIBIT C

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

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

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

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

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

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

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

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

7. Consultant shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Consultant shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Consultant or by any subcontractor for each calendar day during which such

worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.

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

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: June 18, 2024
Title: Memorandum(s) of Understanding with Covina Valley Unified, Charter Oak Unified and Azusa Unified School Districts Regarding School Resource Officers Presented by: David Povero, Chief of Police
Recommendation: Approve the three Memorandum of Understanding (MOU) to assign School Resource Officers (SRO) within Covina Valley Unified, Charter Oak Unified and Azusa Unified School Districts and authorize the City Manager or his designee to execute the MOUs.

EXECUTIVE SUMMARY:

The item before you continues the community partnership the Covina Police Department has with the Charter Oak Unified School District for one (1) sworn police officer to be funded by COUSD and assigned to Charter Oak High School, and continues our community partnership with the Covina-Valley Unified School District for two (2) sworn police officers to be funded by CVUSD and assigned to Covina and Northview High Schools.

Additionally, Azusa Unified School District is returning to the program after a one-year absence with one officer assigned to Gladstone Middle School.

BACKGROUND:

The Covina Police Department School Resource Officer program was implemented in February 1994 in partnership with the Charter Oak Unified School District. In September 1997, the program expanded to include Gladstone High School of the Azusa Unified School District, and in September 2002, Covina Valley Unified School District joined the program with a SRO assigned to split time at their two high schools located in Covina.

DISCUSSION:

Historically the Covina Police Department has a solid partnership with its schools in an effort to increase safety and security at local campuses. Various programs have included education on substance abuse, criminal gang awareness and school safety measures. A highly trained sworn law enforcement officer is a benefit to any school.

As a First Responder already on campus, their visible presence increase security aspects, builds rapport with staff, students and parents and is a method for investigation and intervention.

Through strong partnerships with Charter Oak Unified, Covina Valley Unified, and Azusa Unified, the Covina Police Department is in a position to assign one (1) sworn Covina Police Officer to the Charter Oak High School, and two (2) sworn Covina Police Officers to be deployed to Covina and Northview High Schools. One officer will be assigned to Gladstone Middle School.

FISCAL IMPACT:

The Police Department is in constant communication with the districts and remain flexible as to SRO specific scheduling. The personnel cost of the existing full-time SROs will be reimbursed pursuant to the Memorandum of Understanding between the City of Covina and the Districts. The Districts will be billed for actual wages and applicable benefits for the positions incurred during the regular school year.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A

MEMORANDUM OF UNDERSTANDING
between

CITY OF COVINA AND CHARTER OAK UNIFIED SCHOOL DISTRICT
This Memorandum of Understanding (hereinafter referred to as “MOU” or agreement) is entered into by the City of Covina (City) and Charter Oak Unified School District (District) for the purpose of continuing the School Resource Officer (SRO) to Charter Oak Unified School District, commencing at the start of the 2024-2025 school year. This MOU will terminate at the conclusion of the last Charter Oak Unified School District 2025 graduation.

It is mutually agreed that the Covina Police Department (Department) will provide a sworn law enforcement officer to Charter Oak Unified School District to act as a School Resource Officer (SRO). This officer will be selected by the Chief of Police and will act first and foremost as a law enforcement officer. The officer may be required to perform duties as the Principal may request in writing within the parameters established by the Covina Police Department and approved by the Chief of Police in writing. Any conflicts in interpretation of the SRO’s duties and responsibilities should be resolved jointly between the Principal and the Chief of Police. Where conflict resolution is not possible, the Chief of Police will retain the authority for the final decision.

The SRO is and shall be at all times remain a wholly independent contractor as to the District. The SRO is and shall remain at all times an employee of the Covina Police Department with all rights, benefits, and privileges thereto and shall be under the City’s exclusive control and direction. As the employer of the SRO, the Covina Police Department will provide Workers’ Compensation Insurance for the SRO, when appropriate depending on the job classification and/or part-time/full-time status. Covina Police Department will pay the SRO’s salary. The District will be billed 100% of the assigned officer’s actual wage, on an hour-by-hour basis for the time assigned to the District. The Department will bill the District for these costs on a monthly basis.

The SRO will ordinarily be attired in a police uniform; however, will work on occasion in plain clothes. The SRO will normally work four (4) days a week, ten (10) hours a day, and will be assigned to the Charter Oak Unified School District. If the SRO is a part-time employee, the City and School District must understand the limitation in hours worked within a Fiscal Year, normally 960 hours. Therefore, communication in hours worked and available hours are essential for the program’s success. The SRO will coordinate all of his/her activities with the Principal and concerned staff members, and will seek permission, guidance, and advice prior to enacting any program within the school.

The SRO’s duties and responsibilities will include, but not be limited to the following:

ATTACHMENT A
Safety
 Shall work under the direction and supervision of the Operations Division of the Covina Police Department in cooperation with the school site principal  Act as liaison between the students/staff and the Covina Police Department.  Act as liaison between Covina Police Department and other First Responders through effective communication when responding to emergencies, reports of crime and school safety matters.
 Provide safety to the students and staff by investigating all crimes as it pertains to the identified District sites, and take appropriate action in regard to the law and other applicable statutes.
 Take reasonable precautions to protect the privacy of students as well as promote safety and education.
 Provide intelligence information to the City and the District as it pertains to safety, service, and the prevention of crime.
 Assist staff in matters of school safety through the school day, with attention paid to root causes and referral to appropriate counseling and mentoring services.

Education
 Maintain a friendly, approachable presence at District events.  Promote school attendance and engagement.
 Assist with outreach through student, school, and home contacts, and referral to appropriate District partners and agencies.
 Assist and attend meetings of the School Attendance Review Board (SARB) when appropriate.
 Be responsible for education on a variety of subjects related to crime and safety.  Assist in the promotion of college, career and trade opportunities.  Where appropriate, present classroom lessons pertaining to the danger of substance abuse, school site safety, personal safety, pedestrian/bicycle safety, internet safety and cyberbullying safety.
 Provide positive reinforcement to students via mentoring, a visible presence and a role model through positive and professional relationships with students and staff.  With Department approval, assist with planning and implementation of community and school sponsored events including, but not limited to Red Ribbon Week, Substance Abuse presentations, Domestic Violence Prevention programs, and Gang Awareness presentations, as well as others appropriate events.  With Department approval, attend orientation and other related student and family programs from District partners.
 With Department approval, attend extra-curricular student activities where the SRO’s role is needed, and may be covered via overtime pay or the use of flex time.

ATTACHMENT A
The precise responsibilities of the SRO shall be mutually agreed upon between COUSD and the Covina Police Department representative in writing. The SRO will be assigned to COUSD by the Police Department and evaluated by his/her Police Department Division Captain or designee with input from COUSD.

1. The District will provide office space, necessary furniture, office supplies and telephone for the SRO to carry out their duties per the Agreement.

2. The City will provide a motor vehicle for the SRO to perform their duties.

3. COUSD will pay the City for SRO services, based on the assigned officer’s salary and benefits as of 7/01/2024 for the duration of this MOU. The Police Department will bill COUSD at the end of each month and the invoice shall be payable within 30 days from the time of receipt.

4. This MOU may be terminated upon 30 days written notice by either party at any time, without cause.

5. The term of this MOU shall be for the 2024-2025 academic school year.

The District agrees to protect, hold harmless, defend and indemnify the City, officials, employees, officers, agents, and volunteers (collectively “City Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the District in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the City Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.

The City agrees to protect, hold harmless, defend and indemnify the District officials, employees, officers, agents, and volunteers (collectively “District Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the City in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the District Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.

This MOU is the final and entire agreement between the Parties. All agreements of the Parties with respect to the subject matter hereof are in writing and supersede all prior written and oral agreements and understandings. This Agreement cannot be modified except by a written document signed by both of the Parties. None of the Parties are relying upon any other negotiations, discussions, or agreements in connection with the subject matter of this Agreement. This is a fully integrated Agreement.

The Parties agree that all actions or proceedings arising in connection with this MOU shall be tried and litigated exclusively in the Superior Court of California located in the County of Los Angeles, State of California.

ATTACHMENT A
I have read and understand this Memorandum of Understanding and the information contained within.

CITY OF COVINA CHARTER OAK UNIFIED SCHOOL

DISTRICT

Christopher Marcarello Jeffrey D. Jordan, Ed.D.

City Manager District Superintendent
Date Date
David Povero Kristin McGuire
Chief of Police President, Governing Board
Date Date

ATTACHMENT B

MEMORANDUM OF UNDERSTANDING
between

CITY OF COVINA AND COVINA VALLEY UNIFIED SCHOOL DISTRICT This Memorandum of Understanding (hereinafter referred to as “MOU” or agreement) is entered into by the City of Covina (City) and Covina Valley Unified School District (District) for the purpose of continuing the School Resource Officer (SRO) to Covina Valley Unified School District, commencing at the start of the 2024-2025 school year.

This MOU will terminate at the conclusion of the last Covina Valley Unified School District 2025 graduation.

It is mutually agreed that the Covina Police Department (Department) will provide two (2) sworn law enforcement officers to Covina Valley Unified School District to act as a School Resource Officer (SRO). These officers will be selected by the Chief of Police and will act first and foremost as a law enforcement officer. These officers may be required to perform duties as the Principal may request in writing within the parameters established by the Covina Police Department and approved by the Chief of Police in writing. Any conflicts in interpretation of the SRO’s duties and responsibilities should be resolved jointly between the Principal and the Chief of Police. Where conflict resolution is not possible, the Chief of Police will retain the authority for the final decision.

The SRO is and shall be at all times remain a wholly independent contractor as to the District. The SRO is and shall remain at all times an employee of the Covina Police Department with all rights, benefits, and privileges thereto and shall be under the City’s exclusive control and direction. As the employer of the SRO, the Covina Police Department will provide Workers’ Compensation Insurance for the SRO, when appropriate depending on the job classification and/or part-time/full-time status. Covina Police Department will pay the SRO’s salary. The District will be billed 100% of the assigned officer’s actual wage, on an hour-by-hour basis for the time assigned to the District. The Department will bill the District for these costs on a monthly basis.

The SRO will ordinarily be attired in a police uniform; however, will work on occasion in plain clothes. The SRO will normally work four (4) days a week, ten (10) hours a day, and will be assigned to the Covina Valley Unified School District. If the SRO is a parttime employee, the City and School District must understand the limitation in hours worked within a Fiscal Year, normally 960 hours. Therefore, communication in hours worked and available hours are essential for the program’s success. The SRO will coordinate all of his/her activities with the Principal and concerned staff members, and will seek permission, guidance, and advice prior to enacting any program within the school.

ATTACHMENT B
The SRO’s duties and responsibilities will include, but not be limited to the following:

Safety
 Shall work under the direction and supervision of the Operations Division of the Covina Police Department in cooperation with the school site principal  Act as liaison between the students/staff and the Covina Police Department.  Act as liaison between Covina Police Department and other First Responders through effective communication when responding to emergencies, reports of crime and school safety matters.
 Provide safety to the students and staff by investigating all crimes as it pertains to the identified District sites, and take appropriate action in regard to the law and other applicable statutes.
 Take reasonable precautions to protect the privacy of students as well as promote safety and education.
 Provide intelligence information to the City and the District as it pertains to safety, service, and the prevention of crime.
 Assist staff in matters of school safety through the school day, with attention paid to root causes and referral to appropriate counseling and mentoring services.

Education
 Maintain a friendly, approachable presence at District events.  Promote school attendance and engagement.
 Assist with outreach through student, school, and home contacts, and referral to appropriate District partners and agencies.
 Assist and attend meetings of the School Attendance Review Board (SARB) when appropriate.
 Be responsible for education on a variety of subjects related to crime and safety.  Assist in the promotion of college, career and trade opportunities.  Where appropriate, present classroom lessons pertaining to the danger of substance abuse, school site safety, personal safety, pedestrian/bicycle safety, internet safety and cyberbullying safety.
 Provide positive reinforcement to students via mentoring, a visible presence and a role model through positive and professional relationships with students and staff.  With Department approval, assist with planning and implementation of community and school sponsored events including, but not limited to Red Ribbon Week, Substance Abuse presentations, Domestic Violence Prevention programs, and Gang Awareness presentations, as well as others appropriate events.  With Department approval, attend orientation and other related student and family programs from District partners.
 With Department approval, attend extra-curricular student activities where the SRO’s role is needed, and may be covered via overtime pay or the use of flex time.

ATTACHMENT B
The precise responsibilities of the SRO shall be mutually agreed upon between CVUSD and the Covina Police Department representative in writing. The SRO will be assigned to CVUSD by the Police Department and evaluated by his/her Police Department Division Captain or designee with input from CVUSD.

1. The District will provide office space, necessary furniture, office supplies and telephone for the SRO to carry out their duties per the Agreement.

2. The City will provide a motor vehicle for the SRO to perform their duties.

3. CVUSD will pay the City for SRO services, based on the assigned officer’s salary and benefits as of 7/01/2024 for the duration of this MOU. The Police Department will bill CVUSD at the end of each month and the invoice shall be payable within 30 days from the time of receipt.

4. This MOU may be terminated upon 30 days written notice by either party at any time, without cause.

5. The term of this MOU shall be for the 2024-2025 academic school year.

The District agrees to protect, hold harmless, defend and indemnify the City, officials, employees, officers, agents, and volunteers (collectively “City Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the District in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the City Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.

The City agrees to protect, hold harmless, defend and indemnify the District officials, employees, officers, agents, and volunteers (collectively “District Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the City in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the District Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.

This MOU is the final and entire agreement between the Parties. All agreements of the Parties with respect to the subject matter hereof are in writing and supersede all prior written and oral agreements and understandings. This Agreement cannot be modified except by a written document signed by both of the Parties. None of the Parties are relying upon any other negotiations, discussions, or agreements in connection with the subject matter of this Agreement. This is a fully integrated Agreement.

The Parties agree that all actions or proceedings arising in connection with this MOU shall be tried and litigated exclusively in the Superior Court of California located in the County of Los Angeles, State of California.

ATTACHMENT B
I have read and understand this Memorandum of Understanding and the information contained within.

CITY OF COVINA COVINA VALLEY UNIFIED SCHOOL

DISTRICT

Christopher Marcarello Elizabeth Eminhizer, Ed.D.

City Manager District Superintendent
Date Date
David Povero Maria E. Cruz
Chief of Police President, Governing Board
Date Date

ATTACHMENT C

MEMORANDUM OF UNDERSTANDING
Between

CITY OF COVINA AND AZUSA UNIFIED SCHOOL DISTRICT
This Memorandum of Understanding (hereinafter referred to as “MOU” or agreement) is entered into by the City of Covina (City) and Azusa Unified School District (District) for the purpose of continuing the School Resource Officer (SRO) to Azusa Unified School District, commencing at the start of the 2024-2025 school year. This MOU will terminate at the conclusion of the last Azusa Unified School District 2025 graduation.

It is mutually agreed that the Covina Police Department (Department) will provide a sworn law enforcement officer to Azusa Unified School District to act as a School Resource Officer (SRO). This officer will be selected by the Chief of Police and will act first and foremost as a law enforcement officer. The officer may be required to perform duties as the Principal may request in writing within the parameters established by the Covina Police Department and approved by the Chief of Police in writing. Any conflicts in interpretation of the SRO’s duties and responsibilities should be resolved jointly between the Principal and the Chief of Police. Where conflict resolution is not possible, the Chief of Police will retain the authority for the final decision.

The SRO is and shall be at all times remain a wholly independent contractor as to the District. The SRO is and shall remain at all times an employee of the Covina Police Department with all rights, benefits, and privileges thereto and shall be under the City’s exclusive control and direction. As the employer of the SRO, the Covina Police Department will provide Workers’ Compensation Insurance for the SRO, when appropriate depending on the job classification and/or part-time/full-time status. Covina Police Department will pay the SRO’s salary. The District will be billed 100% of the assigned officer’s actual wage, on an hour-by-hour basis for the time assigned to the District. The Department will bill the District for these costs on a monthly basis.

The SRO will ordinarily be attired in a police uniform; however, will work on occasion in plain clothes. The SRO will normally work four (4) days a week, ten (10) hours a day, and will be assigned to the Azusa Unified School District. If the SRO is a part-time employee, the City and School District must understand the limitation in hours worked within a Fiscal Year, normally 960 hours. Therefore, communication in hours worked and available hours are essential for the program’s success. The SRO will coordinate all of his/her activities with the Principal and concerned staff members, and will seek permission, guidance, and advice prior to enacting any program within the school. The Covina Police Department is aware of the Azusa Unified School District's Board Policy 5145.11 which states: "Except in cases of child abuse or neglect, the principal or designee shall notify the student's parent/guardian within 24 hours after law enforcement has interviewed the student on school premises."

ATTACHMENT C
The SRO’s duties and responsibilities will include, but not be limited to the following:

Safety
 Shall work under the direction and supervision of the Operations Division of the Covina Police Department in cooperation with the school site principal  Act as liaison between the students/staff and the Covina Police Department.  Act as liaison between Covina Police Department and other First Responders through effective communication when responding to emergencies, reports of crime and school safety matters.
 Provide safety to the students and staff by investigating all crimes as it pertains to the identified District sites, and take appropriate action in regard to the law and other applicable statutes.
 Take reasonable precautions to protect the privacy of students as well as promote safety and education.
 Provide intelligence information to the City and the District as it pertains to safety, service, and the prevention of crime.
 Assist staff in matters of school safety through the school day, with attention paid to root causes and referral to appropriate counseling and mentoring services.

Education
 Maintain a friendly, approachable presence at District events.  Promote school attendance and engagement.
 Assist with outreach through student, school, and home contacts, and referral to appropriate District partners and agencies.
 Assist and attend meetings of the School Attendance Review Board (SARB) when appropriate.
 Be responsible for education on a variety of subjects related to crime and safety.  Assist in the promotion of college, career and trade opportunities.  Where appropriate, present classroom lessons pertaining to the danger of substance abuse, school site safety, personal safety, pedestrian/bicycle safety, internet safety and cyberbullying safety.
 Provide positive reinforcement to students via mentoring, a visible presence and a role model through positive and professional relationships with students and staff.  With Department approval, assist with planning and implementation of community and school sponsored events including, but not limited to Red Ribbon Week, Substance Abuse presentations, Domestic Violence Prevention programs, and Gang Awareness presentations, as well as others appropriate events.  With Department approval, attend orientation and other related student and family programs from District partners.
 With Department approval, attend extra-curricular student activities where the SRO’s role is needed, and may be covered via overtime pay or the use of flex time.

ATTACHMENT C
The precise responsibilities of the SRO shall be mutually agreed upon between AUSD and the Covina Police Department representative in writing. The SRO will be assigned to AUSD by the Police Department and evaluated by his/her Police Department Division Captain or designee with input from AUSD.

1. The District will provide office space, necessary furniture, office supplies and telephone for the SRO to carry out their duties per the Agreement.

2. The City will provide a motor vehicle for the SRO to perform their duties.

3. AUSD will pay the City for SRO services, based on the assigned officer’s salary and benefits as of 7/01/2024 for the duration of this MOU. The Police Department will bill AUSD at the end of each month and the invoice shall be payable within 30 days from the time of receipt.

4. This MOU may be terminated upon 30 days written notice by either party at any time, without cause.

5. The term of this MOU shall be for the 2024-2024 academic school year.

The District agrees to protect, hold harmless, defend and indemnify the City, officials, employees, officers, agents, and volunteers from any and all losses, claims, liabilities, causes of action, demands, judgements, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees arising out of or in any way connected with the performance of the MOU. This indemnification provision shall survive the expiration or termination of this MOU.

This MOU is the final and entire agreement between the Parties. All agreements of the Parties with respect to the subject matter hereof are in writing and supersede all prior written and oral agreements and understandings. This Agreement cannot be modified except by a written document signed by both of the Parties. None of the Parties are relying upon any other negotiations, discussions, or agreements in connection with the subject matter of this Agreement. This is a fully integrated Agreement.

The Parties agree that all actions or proceedings arising in connection with this MOU shall be tried and litigated exclusively in the Superior Court of California located in the County of Los Angeles, State of California.

ATTACHMENT C
I have read and understand this Memorandum of Understanding and the information contained within.

CITY OF COVINA AZUSA UNIFIED SCHOOL DISTRICT

Christopher Marcarello Arturo Ortega
City Manager District Superintendent
Date Date
David Povero Yolanda Rodriguez-Peña
Chief of Police President, Governing Board
Date Date

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: June 18, 2024
Title: AB481 Annual Report for 2023
Presented by: Chief David Povero
Recommendation: Review and Approve AB481 Annual Report for 2023.

EXECUTIVE SUMMARY:

AB481 requires a law enforcement agency to declare to the Governing Body (City Council) the Funding, Acquisition and Use of Military Equipment. Military Equipment is defined within AB481. AB481 requires a law enforcement agency to review and/or audit the Funding, Acquisition and Use of Military Equipment on an annual basis. The attached report includes a review and/or audit of year 2023 and declares the Police Department’s inventory, inventory description, training and budget projections pertaining to Military Equipment.

DISCUSSION:

Assembly Bill No. 481 (AB481) was approved by the Governor in September 2021. The Covina Police Department met the requirement of AB481 in 2023 as required. This included adopting a Military Equipment policy (706), creating an of inventory of equipment that met the definition of Military Equipment per AB481 and included other pertinent information about the equipment per AB481 requirements. This inventory/report was presented to the City Council by the Chief of Police in April 2022 and approved/adopted by ordinance. This inventory/report is completed on an annual basis. The inventory/report reviews year 2023 and introduces 2024 inventory.

FISCAL IMPACT:

None. Existing Police Department budget addresses projected 2024 costs.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not Applicable.

Respectfully submitted,

ATTACHMENT A

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: June 18, 2024
Title: Investment Policies for Fiscal Year 2024-2025 for the City of Covina and Successor Agency to the Covina Redevelopment Agency
Presented by: Anita Agramonte, Administrative Services Director Theresa Franke, Administrative Services Deputy Director Recommendation: Adopt Resolution CC 2024-36 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2024-2025 and adopt Successor Agency Resolution SA 2024-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2024- 2025.

EXECUTIVE SUMMARY:

An investment policy serves as the foundation for the City’s investment goals and priorities. Pursuant to Section 53646 of the Government Code, the Chief Fiscal Officer may annually render the investment policy to the City Council. The general purpose is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals.

DISCUSSION:

In accordance with legislative recommendation and in keeping with industry best practices, the City of Covina’s Director of Administrative Services annually reviews the City’s/Agency’s investment policies and submits the policies for Council adoption. This process helps to ensure that the policies meet the City’s primary investment objectives of safety, liquidity, and return on investment. In addition, annual reviews confirm that the policies are in compliance with the California Government Code and other relevant legislation, statutes, and laws.

The 2024-2025 Investment Policies for the City of Covina and the Successor Agency have no changes from those approved by the City Council last year and are attached as Exhibit A to the resolutions. Adoption of the investment policy at the start of the fiscal year does not preclude the City Council from amending the policy at any time during the fiscal year.

FISCAL IMPACT:

None.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,
Anita Agramonte
Administrative Services Director
Theresa Franke
Administrative Services Deputy Director - Finance

ATTACHMENT A
RESOLUTION CC 2024-36

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

CALIFORNIA, ADOPTING AN INVESTMENT POLICY FOR THE
CITY’S INVESTMENT PORTFOLIO FOR FISCAL YEAR 2024-2025
WHEREAS, the City Council wishes to clarify and establish investment policies to guide the City Treasurer, City Manager, Administrative Services Director, and City staff regarding City investments.

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

SECTION 1. Investments of City funds shall be made in accordance with the Statement of Investment Policy attached hereto as Exhibit A, and made a part hereof.

SECTION 2. The policies adopted by this resolution are in addition to and supplement any other legal requirements.

SECTION 3. This resolution shall take effect and be in force immediately upon adoption.

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

APPROVED and PASSED this 18th day of June, 2024.

City of Covina, California
BY:

JOHN C. KING, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

Resolution CC 2024-36 Page 2 of 2

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2024-36 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 18th day of June, 2024, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

EXHIBIT A
1 CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY

STATEMENT OF INVESTMENT POLICY
PURPOSE:

A. This Investment Policy is set forth by the City of Covina and Successor Agency to the Covina Redevelopment Agency (collectively “City”) for the following purposes:

1. To establish a clear understanding for the Council, City management, responsible employees, and third parties of the objectives, policies, and guidelines for the investment of the City’s idle and surplus funds.

2. To offer guidance to investment staff and any outside advisers on the investment of City funds.

3. To establish a basis for evaluating investment results.

B. The general purpose of this Investment Policy is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals. It is intended to be sufficiently specific to be meaningful, yet adequately flexible to be practical.

C. By adoption of this Investment Policy, the City Council also delegates its authority to invest and reinvest City funds, or to sell or exchange securities so purchased, to the City Mayor/City Council, upon recommendation of the City Treasurer, City Manager and Administrative Services Director, for a period of one year. Pursuant to Section 53607 of the Government Code, any renewal of such delegation shall be made by, and at the discretion of, the City Council each year after review.

D. The City’s Mayor/City Council may enlist help of staff or a contract investment manager to fulfill such delegated investment duties, but the City’s Mayor/City Council must exercise prudence in the selection of any contract investment manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager and staff, and the City’s Mayor/City Council remains responsible for any investment decisions made by contract investment manager or staff designated by the City Mayor/City Council in such delegated investment duties.

POLICY
It is the policy of the City to invest public funds in a manner that will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.

1.0 SCOPE:

This Investment Policy applies to all cash assets of the City. Cash assets held by the City shall be pooled in order to manage the City’s cash resources effectively. All pooled cash assets are accounted for in the City’s Annual Comprehensive Financial Report and include the following funds:

CITY OF COVINA

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2024-2025 (Continued)
2 FUNDS:

1.1.1 General Fund

1.1.2 Special Revenue Funds

1.1.3 Debt Service Funds

1.1.4 Capital Projects Funds

1.1.5 Enterprise Funds

1.1.6 Internal Service Funds

1.1.7 Trust and Agency Funds
The scope of this investment policy does not extend to cash assets held by fiscal agents, deferred compensation cash assets or other cash assets over which the City does not exercise specific control.

2.0 PRUDENCE:

The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. This standard requires all investment officials, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, to act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law and this Investment Policy.

3.0 OBJECTIVES:

The primary objectives, in priority order, of the City’s investment activities shall be:

3.1 Safety. Maintaining the principal value of assets entrusted to the City is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by limiting investment risk in the portfolio. Additionally, since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets.

3.1.1 Credit Risk. The City will minimize credit risk, the risk of loss due to financial failure of the security issuer or backer by:
 Limiting exposure to poor credits and concentrating investments in the safest type of securities.
 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors that the City will do business with.

CITY OF COVINA

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2024-2025 (Continued)
3  Diversifying the investment portfolio so that the potential losses on individual investments will be minimized.
 Actively monitoring the investment portfolio for ratings changes, changing economic/market conditions, etc.

3.1.2 Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:
 Structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market prior to maturity.
 Investing operating funds primarily in shorter-term securities or short-term investment pools.

3.2 Liquidity. The City’s investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).

3.3 Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The majority of the portfolio is limited to highly rated/low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
 A security with declining credit may be sold early to minimize loss of principal.  A security swap would improve the quality, yield, or target duration in the portfolio.
 Liquidity needs of the portfolio require that the security be sold.

4.0 REPORTING:

In accordance with amended Section 53646 of the Government Code, the City Treasurer/Administrative Services Director will annually review the investment policy and render the policy to the City Council. Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.

Pursuant to Section 53646 of the Government Code, the City Treasurer/Administrative Services Director shall render a report to the City Council and City Manager, containing detailed information on all securities, investments, and moneys of the City. The report will be submitted on a quarterly basis and be provided to the Council within 30 days following the end of the quarter.

The report will contain the following information on the funds that are subject to this investment policy: 1) the type of investment, name of the issuer, date of maturity, par and dollar amount invested on all securities in each investment; 2) any investments, including loans and security lending programs, that are under the management of contracted parties; 3) for all securities held by

CITY OF COVINA

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2024-2025 (Continued)
4 the City and under management of any outside party that is also a local agency or Local Agency Investment Fund, the current market value as of the date of the report, and source of this valuation; 4) a statement of the portfolio’s compliance with the City’s investment policy, or manner in which the portfolio is not in compliance; and 5) a statement denoting the City’s ability to meet its pools expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.

The City Treasurer/Administrative Services Director shall make a monthly report of any investment transactions to the City Council, in accordance with Section 53607 of the Government Code.

To the extent the City has funds invested in County investment pools the City Treasurer/Administrative Services Director shall request copies of all the investment reports generated by the Counties pursuant to Government Code Section 27133 and the annual audit required by Government Code Section 27134. The investment report shall reflect a summary of these reports and audits.

5.0 INTERNAL CONTROL:

The Administrative Services Director is responsible for establishing and maintaining an adequate internal control structure designed to reasonably protect the assets of the City from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.

Accordingly, the Administrative Services Director shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:

Control of collusion.
 Separation of transaction authority from accounting and record keeping.  Custodial safekeeping.
 Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary.  Clear delegation of authority to subordinate staff members.  Written confirmation of transactions for investments and wire transfers.  Development of a wire transfer agreement with the lead bank and third-party custodian and implementation of the appropriate safeguards described in the GFOA Recommended Practice on "Electronic Transactions for State and Local Governments."
 Compliance and oversight with investment parameters including diversification and maximum maturities.

CITY OF COVINA

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2024-2025 (Continued)
5 6.0 EXTERNAL AUDIT:

On at least an annual basis the City shall have an external auditor review the City’s investments and provide an opinion to the City in respect to the City’s compliance with this Investment Policy.

7.0 QUALIFIED DEALERS AND INSTITUTIONS:

The City shall transact business only with those banks, savings and loans, registered investment securities dealers, and authorized representatives of investment pools, as authorized by the California Government Code Section 53600 et seq. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a savings association or federal association (as defined by Section 5102 of the Financial Code), or a brokerage firm designed as a Primary Government Dealer by the Federal Reserve Bank. The Mayor/City Council’s staff shall review all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement.

8.0 AUTHORIZED INVESTMENTS AND DIVERSIFICATION REQUIREMENTS:

All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described in the “Permitted Investments” section of this Investment Policy.

The book value of the security will be used when calculating diversity compliance.

8.1 PERMITTED INVESTMENTS under this policy are summarized on Attachment I and shall include:

8.1.1 Securities, including participations or other instruments, issued by and fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a United States government-sponsored enterprise, or for which the faith and credit of the United States are pledged for payment of principal and interest. Permitted securities shall have stated final maturity which does not exceed five years from the date of purchase.

8.1.2 Commercial paper of “prime” quality rated a minimum of P-1 by Moody’s Investor Services (Moody’s) or A-1 by S&P Global Ratings (S&P) provided that:
(a) the maturity does not exceed 180 days from the date of purchase; (b) the issuer is a special purpose corporation, trust, or limited liability company organized and operating in the United States with assets in excess of $500 million; debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO); and program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) no more than 15 percent of the City’s portfolio is invested in commercial paper; and (d) City may not purchase more than 10% of the outstanding commercial paper of any single issuer.