Agenda packet — Covina City Council, May 6, 2025 (part 2 of 4)

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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

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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.

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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. 4) Professional Liability Insurance with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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

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

D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or 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.

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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.

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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 five (5) 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: Sandy Costandi Attn: Gretel Ochoa-Nhac
City of Covina Civiltec Engineering, Inc.
125 E. College Street| 440 N. Mountain Avenue, Suite 210 Covina, California 91723 Upland, California 91786

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

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

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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]

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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:

Title:

ATTEST:

By:

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

By:

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

Civiltec Engineering, 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.)

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EXHIBIT A

APPROVED FEE SCHEDULE

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EXHIBIT B

SCOPE OF SERVICES

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ATTACHMENT B

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated May 6, 2025 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Raftelis Financial Consultants, 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 for the preparation of a Water Rate Study.

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, 2026, unless sooner terminated as provided in Section 14 of this Agreement. The City may, upon mutual agreement, extend the contract for one (1) additional one year term. In no event shall the contract be extended beyond June 30, 2027.

2. Compensation.

A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Ninety Eight Thousand, One Hundred Eighty Seven Dollars ($98,187) (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.

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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 Sudhir Pardiwala, Senior Principal (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.

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

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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

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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

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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.

10. Indemnification.

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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 negligent 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.

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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.

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.

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employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

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.

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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.

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.

14. Termination or Suspension of Agreement.

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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: Sandy Costandi Attn: Sudhir Pardiwala
City of Covina Raftelis Financial Consultants, Inc.
125 E. College Street| 611 Wilshire Blvd., Suite 900
Covina, California 91723 Los Angeles, California 90017

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City:

City of Covina,
a California municipal corporation
By:

Name:

Title:

ATTEST:

By:

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

Raftelis Financial Consultants, 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

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APPROVED AS TO FORM:

By:

Name: Candice K. Lee
Title: City Attorney
authorize only one person to sign this
Agreement on behalf of the corporation.)

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EXHIBIT A

APPROVED FEE SCHEDULE

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EXHIBIT B

SCOPE OF SERVICES

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ATTACHMENT C
RESOLUTION CC 2025-36

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2024/2025 CAPITAL

IMPROVEMENT PROGRAM BUDGET AND APPROPRIATE AN
ADDITIONAL $134,901.44 FOR USE TOWARD THE WATER MASTER

PLAN UPDATE AND WATER RATE STUDY
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the Fiscal Year 2025 Operating Budget & Capital Improvement Plan (CIP) was approved on June 4, 2024; and
WHEREAS, the approved Operating Budget and Capital Improvement Plan (CIP) is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and WHEREAS, the City of Covina wishes to amend the 2024/2025 Capital Improvement Program Budget and appropriate an additional $134,901.44 for use toward the Water Master Plan Update and Water Rate Study.

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

SECTION 1. Amend the Fiscal Year 2024/2025 Capital Improvement Program Budget and appropriate an additional $134,901.44 for use toward the Water Master Plan Update and Water Rate Study
Account No. Account Description Amount ($) Increase/Decrease 6010-5000-
51005-W2504
Water-Water AdminConsulting Fees-Water
Master Plan and Rate Study
$134,901.44 Increase
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.

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Resolution CC 2025-36 Page 2 of 2
APPROVED and PASSED this 6
th day of May, 2025.

City of Covina, California
BY:

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

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-36 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 6
th day of May, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
_________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 15
Meeting: May 6, 2025
Title: First Amendment to the Purchase and Sale Agreement for Property Located at NEC E.

Front Street & N. 1st Avenue, Covina, CA 91723 (APN: 8430-018-004) Presented by: Brian K. Lee, AICP, Deputy City Manager/ Director of Community Development Recommendation: Approve the First Amendment to the Purchase and Sale Agreement and authorize the City Manager to execute said First Amendment, substantially in the form attached, and any documents related to the extension of the title due diligence period and related agreement termination period.

EXECUTIVE SUMMARY:

On September 17, 2024, the City held a groundbreaking ceremony to mark the beginning of construction related to the Covina Recreation Village (“CRV”) Project, which will consist of 2.49 acres of indoor and outdoor recreation space and a new library facility to serve the local community. The project sits directly north of the Covina Metrolink Train Station and train tracks, which separate CRV from the City’s growing FAIR District (Food, Arts, Industry, Residential). The City has desired to install a pedestrian bridge spanning from CRV, across the train tracks, and into the FAIR District since the inception of the CRV project but has faced limitations due to a lack of available land to the south of the tracks which could be used to anchor the adjacent side of the pedestrian bridge.

On January 21, 2025, the City Council authorized the City Manager to enter into a Purchase and Sale Agreement (“Agreement”) for the purchase of property located on the north-east corner of E. Front Street and N. 1st Avenue (APN: 8430-018-004) (“Property”) for the purpose of creating a bridge anchor site. The City and the Seller have reached a consensus and the City is in escrow to purchase the Property for the price of $1,045,000. Since entering into escrow, the City has worked diligently with the title officer and Seller to remove any undue liens and encumbrances from the Property’s title. This action will extend the period to clear such matters by an additional 30 days, from 120 days to 150 days.

DISCUSSION:

Section 2.1.2 of the Agreement requires that the Buyer approve in writing Approved Title Exceptions within 120 days of the Agreement date (dated January 21, 2025). Section 3.3 of the Agreement allows the City to terminate the Agreement 120 days after the previously referenced Agreement date if the results of an inspection or review of materials/Seller’s disclosures are not satisfactory, as could be shown on title. There have been delays from the Seller in returning documents and information needed in order to clear items from title which are not acceptable to the Buyer. As such, the City is requesting a 30-day extension be added to Sections 2.1.2 and 3.3 to make each period 150 days instead of 120 days, which would allow greater time to remove exceptions from the Property’s title that are due from the Seller.

FISCAL IMPACT:

This action has no fiscal impact.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

The act of authorizing the purchase of the Property and/or amending the applicable sections of the Agreement does not approve any new development or construction of buildings, nor does it authorize any new land uses. For

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this reason, it can be seen with certainty that authorizing the purchase of the Property pursuant to the Purchase and Sale agreement substantially in the form attached to this report will not result in any significant adverse impact on the environment. Thus, the action of amending the Agreement is exempt from CEQA environmental review requirements pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.

Respectfully submitted,

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ATTACHMENT A

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DRAFT

ATTACHMENT B

FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE

AND ESCROW INSTRUCTIONS
This FIRST AMENDMENT TO AGREEMENT (this “First Amendment”) is dated as of _____________________, 2025 and is entered into by and between the CITY OF COVINA, a municipal corporation (“City or Buyer”), and BONNIE J. SEATS, surviving trustee of the Seats Trust, u/t/d April 13, 1996 (“Seller”).

RECITALS
A. Buyer and Seller are parties to that certain Agreement for Purchase and Sale and Escrow Instructions dated January 21, 2025 (the “Agreement”) for property, bearing Assessor’s Parcel Number 8430-018-004, located at the northeast corner of East Front Street and North 1st Avenue in the City of Covina, California.

B. Buyer and Seller desire to amend the Agreement as hereinafter set forth.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals, and other consideration, the sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree as follows:

1. Extension of Dates. The time period of “One Hundred and Twenty (120) days” in both Section 2.1.2 and Section 3.3 of the Agreement is hereby changed to “One Hundred and Fifty (150) days”.

2. Counterparts. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.

3. Time of Essence. Time is of the essence of every provision hereof in which time is a factor.

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date and year first above written.

BUYER:

CITY OF COVINA
By:

Print Name: _______________________
Title: ______________________________
ATTEST:
____________________, City Clerk
SELLER:

BONNIE J. SEATS, surviving trustee of the
Seats Trust, u/t/d April 13, 1996
By:

Print Name:

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 16
Meeting: May 6, 2025
Title: 2024 Annual Housing Element Progress Report
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Recommendation: Receive and file.

EXECUTIVE SUMMARY:

State law requires each city to prepare and file Annual Progress Reports (APRs) with the California Department of Housing and Community Development (HCD) describing housing production and the status of Housing Element program implementation. APRs must be prepared using the format established by HCD. Attached for City Council information is the Housing Element APR for calendar year 2024 (Attachment A).

FISCAL IMPACT:

Preparation of APRs is required by State law but no State funding is provided; therefore, it is an unfunded mandate. The City collects a fee on building permits to defray the cost of maintaining the General Plan, which includes preparation of APRs.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Preparation of the APR is not a project subject to CEQA (Cal. Pub. Resources Code, § 21000 et seq.).

Respectfully submitted,

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ATTACHMENT A

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 17
Meeting: May 6, 2025
Title: Agreement between the City of Covina and Dunwright Painting and Coatings for Interior Painting as Tenant Improvements at 401 N. Citrus Avenue Presented by: Brian K. Lee, Deputy City Manager/Director of Community Development Recommendation: Authorize the City Manager to enter into a Minor Construction Agreement with Dunwright Painting and Coating, in substantial form, and execute all related documents.

EXECUTIVE SUMMARY:

As part of the City’s Capital Improvement Program (“CIP”) budget, a project was included to create a shared workspace in the City’s downtown shopping district. Such effort is expected to enhance economic activity in the area and help to attract start-ups and small businesses and other entrepreneurs into the community. The project includes minor tenant improvements and the purchase of office furniture/equipment to convert a commercial building located at 401 N. Citrus Avenue into a 4,265 square foot shared office facility.

On April 19, 2022, the City Council approved an exchange agreement with Bently Real Estate to secure a no-cost eight (8) years, two (2) month lease for the subject property. The agreement was amended on September 5, 2023 to extend the performance period. In exchange, Bently Real Estate will receive approximately 416.9 lineal feet of Geneva Place to use as part of a larger mixed-use development project. Bently Real Estate is responsible for completing certain improvements at 401 N. Citrus to deliver the City a “warm shell”, which will then trigger the dedication of the Geneva Place right of way. This includes installation of an elevator and an HVAC system among other items.

In April of 2022, the City published a Request for Qualifications (RFQ) seeking operational services for a coworking facility at 401 N. Citrus and evaluated the qualifications of respondents. The most qualified respondent was FoundrSpace LLC (“Operator”), and on August 1, 2023, the City Council approved a Management Agreement (“Agreement”) between the City and FoundrSpace LLC for their operation of a co-working facility.

The Agreement detailed certain improvements that will be made by the City to the warm shell, which will bring the facility to a level of usability and habitability that will enable the Operator to begin operations.

To facilitate the interior painting of the facility as part of the tenant improvements, staff recommends that Dunwright Painting and Coatings (“Dunwright”) be awarded a minor construction contract (Attachment A) for the interior painting of the two-story front building and one-story rear building.

DISCUSSION:

The Management Agreement between the City and the Operator stipulates that the City will perform certain improvements to the building on a tiered system and within the allocated budget. Should there be additional funding after the City completes the physical building improvements from the Tier I category, funding may be used to pay for additional build out assistance, up to the amount set aside through the CIP. As proposed, Dunwright will dust, prime, and paint the interior of 401 N. Citrus, which includes a two-story building and a rear one-story building.

The total price for completion of these items is $26,500. Staff recommends a not to exceed amount of $28,000 to allow for contingencies such as small wall repairs and additional surface preparation, if needed. If approved,

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painting will begin once Bently Real Estate completes their construction of the warm shell. Following the City’s completion of the tenant improvements, the Operator will outfit the building to support their operation and the co-working space will open for business.

FISCAL IMPACT:

There is no impact to the General Fund. Funds are budgeted under account 4010-4000-55100-COWRK.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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CITY OF COVINA AGREEMENT FOR

MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated May 6, 2025 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Dunwright Painting and Coatings, a sole proprietor (Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to perform interior surface preparation, priming, and painting for a two-story building and one-story building located at 401 N. Citrus Avenue.

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

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

The parties therefore agree as follows:

1. Term of Agreement. The term of this Agreement shall be from the Effective Date through May 6, 2026 unless sooner terminated as provided in Section 14 of this Agreement. The City may, upon mutual agreement, extend the contract for one (1) additional one-year terms. In no event shall the contract be extended beyond May 6, 2027.

2. Compensation.

A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum not to exceed Twenty-Eight Thousand Dollars ($28,000) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.

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

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

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ATTACHMENT A

3. Contractor’s Work.

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

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

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

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

E. Personnel. Contractor has, or will secure at its own expense, all personnel required to perform the Work required under this Agreement. All of the Work required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Work. Contractor shall determine the means, methods, and details by which Contractor’s personnel will perform the Work under this Agreement.

Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work and compliance with the customary professional standards.

F. Compliance with Laws. The Contractor shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.

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

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

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

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

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

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

M. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.

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

O. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant

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to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30) calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.

4. Method of Payment.

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

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

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

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

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

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6. Independent Contractor.

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

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

B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.

C. Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s personnel practices. or to the

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extent arising from, caused by, or relating to the violation of any of the provisions of this Section

6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.

7. PERS Compliance and Indemnification.

A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.

Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

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

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

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

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

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statute. Contractor shall incorporate a clause substantially similar to this Section 9 into any subcontract that Contractor executes in connection with the performance of this Agreement.

10. Indemnification.

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

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

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negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.

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

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

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

11. Insurance.

A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Two Million Dollars ($4,000,000) per project or location.

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

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

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

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

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

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

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

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

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

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

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

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

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

If to City: If to Contractor:

Attn: Chris Marcarello Attn: Enrique Garza
City of Covina Dunwright Painting and Coatings
125 E. College Street 4792 Templeton Street
Covina, California 91723 Los Angeles, CA 90032

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

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

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

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

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

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

29. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but

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shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims.

All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Article 1.5 and Section 9204, as applicable, pursuant to the definition of "claim" as individually defined therein.

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

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

City: Contractor:

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City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

By:

Name: Fabian Velez
Title: Chief Deputy City Clerk
Dunwright Painting and Coatings
a Sole Propritetorship
By:

Name:

Title:

By:

Name:

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EXHIBIT A

SCOPE OF WORK AND PAYMENT SCHEDULE

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4792 Templeton street Los Angeles Ca. 90032
Contact#:213-454-3762/fax#:323-410-0443
Interior paint proposal
Date: April 1, 2025
Job name: Interior painting of 2 story building and rear building Job address: 401 N. Citrus Ave. Covina Ca. 91723
Proposal submitted to: Brian Lee / City of Covina
We submit specifications and estimate for:

Main building Interior:
● Dust down all walls prior to application of primer coat ● After primer application repair any minor imperfections in drywall/patching ● Primer coat complete All drywall interior walls with PVA primer sealer Including top floor main open space. Ground floor open space new drywall. Walls only or otherwise directed
● Apply two coats of paint finish to all interior new drywall at ground floor main open space. Expose ceiling painting to be determined by Customer ● Paint finish and color to be Specified by Customer
● All coats of paint to be Spray and back roll application Cost : $14,000.00
Stairwell and small elevator lobby: new drywall and metal handrails ● Dust down all walls prior to application of primer coat ● After primer application repair any minor imperfections in drywall/patching ● Primer coat complete All drywall interior walls with PVA primer sealer Including top floor main open space. Ground floor open space new drywall. Walls only or otherwise directed
● Apply two coats of paint finish to all interior new drywall at ground floor main open space. Expose ceiling painting to be determined by Customer ● Paint finish and color to be Specified by Customer

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● All coats of paint to be Spray and back roll application ● Sand and clean all metal hand rails, landings and underneath metal of new stairs ● Primer coat application of protec metal primer to all metal via sprayer ● Apply 2 coat of pro industrial metal paint finish to all metal hand rails, landings and underneath metal of new stairs
Cost : $7,000.00
Rear building Interior painting :
● Dust down all walls prior to application of primer coat ● After primer application repair any minor imperfections and drywall/patch ● Apply primer coat complete all drywall interior walls with PVA primer sealer ● Includes open area and rear additional room
● Apply two coats of paint finish to all interior new drywall ● Paint finish and color to be specified by Customer
● All coats of paint to be Spray and back row application ● This price includes drywall only if ceiling to be painted that would be an additional cost that would need lacquer based primer to cover wood knots Cost: $5,500.00
We propose to furnish labor, sundries and materials - complete in accordance with the above specifications, for the sum of:
$26,500.00 total.

Payment is to be made as follows:
50% deposit
50% upon completion
Authorized name: ____________________________________
Authorized signature: _________________________________ Acceptance Proposal
The above prices, specifications, and conditions are satisfactory and are accepted. You are authorized to do the work as specified. Payment will be made as outlined above Date of acceptance: _______________

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Dunwright Painting Authorized personal signature: _____________________ Customer signature: ___________________________________________

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EXHIBIT B

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

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

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

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

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

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

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

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

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

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

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

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ATTACHMENT B
● All coats of paint to be Spray and back roll application ● Sand and clean all metal hand rails, landings and underneath metal of new stairs ● Primer coat application of protec metal primer to all metal via sprayer ● Apply 2 coat of pro industrial metal paint finish to all metal hand rails, landings and underneath metal of new stairs
Cost : $7,000.00
Rear building Interior painting :
● Dust down all walls prior to application of primer coat ● After primer application repair any minor imperfections and drywall/patch ● Apply primer coat complete all drywall interior walls with PVA primer sealer ● Includes open area and rear additional room
● Apply two coats of paint finish to all interior new drywall ● Paint finish and color to be specified by Customer
● All coats of paint to be Spray and back row application ● This price includes drywall only if ceiling to be painted that would be an additional cost that would need lacquer based primer to cover wood knots Cost: $5,500.00
We propose to furnish labor, sundries and materials - complete in accordance with the above specifications, for the sum of:
$26,500.00 total.

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Dunwright Painting Authorized personal signature: _____________________ Customer signature: ___________________________________________

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: May 6, 2025
Title: Adoption of the Fiscal Year 2025-26 Budget, Fiscal Year 2026-2030 Capital Improvement Program (CIP) and Fiscal Year 2025-26 CIP Budget Presented by: Chris Marcarello, City Manager
Theresa Franke, Interim Finance Director
Recommendation: 1. Conduct the public hearing and consider all testimony that may be forthcoming;

2. Adopt Resolution CC 2025-37 adopting the City of Covina budget for July 1, 2025 through June 30, 2026;

3. Adopt Resolution SA 2025-03 adopting the operating budget for the City of Covina Successor Agency for July 1, 2025 through June 30, 2026; and

4. Adopt Resolution CC 2025-38 adopting the Fiscal year 2026-2030 Capital Improvement Program and the Fiscal Year 2025-26 Capital Improvement Program Budget.

EXECUTIVE SUMMARY:

The City Manager is tasked to prepare an annual operating budget and a capital improvement program for the City each fiscal year for City Council consideration. Approval of the attached resolutions will establish the Fiscal Year (FY) 2025-26 Operating Budget and the Fiscal Year 2026-30 Capital Improvement Program Budget.

BACKGROUND:

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

The Interim Finance Director submitted the Proposed FY 2025-26 Budget to the Finance Advisory Commission as part of the agenda for the Commission's special meeting of April 30, 2025. Revenue projections and proposed operating budgets for City departments were reviewed and discussed, with the Commission recommending that City Council adopt the Fiscal Year 2025-26 Operating Budget and CIP Budget.

The Community Development Director presented the Proposed FY 2026-2030 CIP and FY 2025-26 CIP Budget to the Planning Commission as part of the agenda for the Planning Commission's regularly scheduled meeting of April 22, 2025. The Planning Commission adopted Resolution No. 2025-002 PC (Attachment D), finding that the proposed FY 2026-2030 CIP and FY 2025-26 CIP Budget is consistent with the goals and policies of the Covina General Plan pursuant to Government Code Sections 65103 and 65401.

DISCUSSION:

The Citywide Proposed FY 2025-26 Budget includes projected revenues totaling $108,642,914 and expenditures of $115,008,484. A sizeable portion of this difference is due to enterprise and grant funds utilizing established fund balances to complete capital projects in the City. It also reflects adjustments to internal service funds, as their fund balances were deemed adequate, not requiring additional contributions. These amounts include the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, and Successor Agency Funds.

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As noted below and in Attachment E, the total expenditures include 21 proposed capital improvement projects that total $14,170,094.

General Fund:

The Fiscal Year 2025-26 General Fund Budget is balanced with $57,247,253 in revenues and expenditures. The proposed General Fund budget utilizes $9,220,014 in Transaction and Use Tax funds, as was intended by Measure CC, to reduce structural deficits and maintain essential City services.

The table below summarizes the Proposed Fiscal Year 25-26 General Fund Budget:

General Fund Revenues:

A conservative approach was utilized in projecting revenues for FY 2025-26. The table below summarizes FY 2025-26 General Fund revenues. The table includes FY 2023-24 actual revenues, the original Adopted Budget, and the projected year-end figures for FY 2024-25 as well as proposed budget figures for FY 2025-26.

FY 2025-2026 is projected to show modest increases in Property Tax, Sales Tax and Utility User's Tax. Furthermore, increases are projected in Licenses and Permits, Intergovernmental, Fines and Forfeitures and Other Revenues. Ongoing Charges for services are also projected to steadily increase. Overall, General Fund revenue is less than 2024-25 revised budget, as 2024-25 reflects a transfer of $5.1 million from Measure CC for use in the acquisition of the Kia property from the Successor Agency.

Proposed 2025-26 Budget June 30, 2025 June 30, 2026
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund 14,239,306 57,247,253 57,247,253 14,239,306 - 1095 Special General Fund (Transaction/Use Tax) 12,469,543 8,831,706 9,220,014 12,081,235 (388,308) 26,708,850 66,078,959 66,467,267 26,320,542 (388,308)
2024 2025 2025 2026
General Fund Revenues Actual Adopted Revised Proposed
Property Tax $ 17,682,095 $ 16,952,000 $ 18,037,000 $ 19,065,000 Sales Tax 10,701,878 11,403,000 10,703,000 10,950,000
Utility Users Tax 6,024,394 5,900,000 5,750,000 6,550,000 Franchises/Other Taxes 3,108,155 3,012,500 2,952,500 3,088,000 Total Taxes 37,516,522 37,267,500 37,442,500 39,653,000 Licenses and Permits 1,267,252 1,076,050 1,236,050 1,129,700 Intergovernmental 1,169,378 1,007,200 1,214,065 1,029,300 Charges for Services 3,389,296 3,507,012 3,863,026 3,545,424 Fines and Forfeitures 1,105,477 1,199,500 699,500 850,985 Other Revenues 4,041,398 9,815,472 16,780,493 11,038,844 General Fund Total $ 48,489,323 $ 53,872,734 $ 61,235,634 $ 57,247,253 2024 2025 2025 2026
Special General Fund Revenues Actual Adopted Revised Proposed Transaction & Use Tax $ 8,535,570 $ 8,627,000 $ 8,627,000 $ 8,831,706 Special General Fund Total $ 8,535,570 $ 8,627,000 $ 8,627,000 $ 8,831,706

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General Fund Expenditures:

The following table summarizes Fiscal Year 2025-2026 General Fund expenditures by department.

General fund expenses reflect ongoing operating costs for all departments. The projections include staffing, supplies and services, contract services as well as capital outlay and indirect costs. Staffing figures take into consideration projected MOU and PERS unfunded liability increases. Overall, expenses are projected at $57.2 million.

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

General Fund Expenditures 2024 2025 Adopted 2025 2026
By Department Actual Budget Revised Proposed
Legislative $ 593,753 $ 605,862 $ 609,294 $ 843,824
Administration 991,453 1,384,105 1,384,105 1,463,541
Finance 1,166,068 1,386,903 1,401,868 1,642,869
Non-Departmental (1,067,160) (2,445,990) (1,749,582) (2,486,964) Human Resources 1,277,857 1,367,107 1,397,107 1,444,443 Police 23,990,988 26,401,599 26,777,748 27,691,562
Emergency Services (6,825) - - -
Fire 10,070,577 12,812,054 12,812,054 13,759,677
Public Works 3,680,550 4,292,710 4,516,840 4,561,915
Parks and Recreation 3,991,392 4,668,008 4,728,927 4,560,170 Community Development 3,800,670 3,400,376 9,428,400 3,766,216 Total General Fund (GF) Expenditures $ 48,489,323 $ 53,872,734 $61,306,761 $ 57,247,253 2024 2025 Adopted 2025 2026
Actual Budget Revised Proposed
Transfer to General Fund $ 32,924 $ 8,533,882 $15,543,901 $ 9,220,014 Transfer to Capital Projects Funds 2,100,685 - 4,697,614 - Transfer to Enterprise Funds 160,150 - - -
Transfer to Internal Services Funds 253,039 - 547,407 - Total Special GF Expenditures $ 2,546,799 $ 8,533,882 $20,788,922 $ 9,220,014 Special General Fund Expenditures

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Staffing Recommendations:

Over the past year, several staff members in various departments have taken on additional duties based on department needs and have had a significant impact on citywide efficacy. With increases in responsibilities and duties, each department has analyzed their staffing needs and several recommendations were presented to ensure proper staffing levels and appropriate classifications are authorized and budgeted. The table below summarizes recommended staffing changes for Fiscal Year 2025-26.

Department Staffing Change Request Amount
Finance Department Reclass Account Clerk II to Sr. Administrative Technician $ 11,800 Police Department Reclass Part Time Admin. Technician to Sr. Admin. Technician $ 3,000 Administration Reclass Deputy City Manager to Assistant City Manager $ 3,000 Community Development Reclass Management Analyst Trainee to Management Analyst $ 6,000 Information Technology Create Information Technology Technician $ 80,000 Funding for these positions are provided through a variety of funds including General Fund, Water Fund, Sewer Fund, and Environmental Fund.

Other Funds:

Proposed revenue and expenditure budgets for the City’s various Special Revenue Funds, Enterprise Funds, Internal Service Funds, Successor Agency Funds and all Other Funds are displayed in Exhibit A to Resolution CC 2025-37 (Attachment A) as well as in the Proposed FY 2025-26 Fund Balances Worksheet provided in Attachment F.

Fiscal Year 2026-2030 CIP & Fiscal Year 2025-26 CIP Budget:

The Proposed FY 2026-2030 CIP contains 64 projects with a total estimated cost of $61.4 million over the fiveyear period. Resolution CC 2025-38 (Attachment C) recommends the adoption of the FY 2026-2030 CIP and the FY 2025-26 CIP Budget totaling $14,170,094. As noted above, the FY 2025-26 CIP contains 21 projects including the Safe and Active Streets Connectivity, Sunkist Park Urban Greening Revitalization, Bus Shelter Installations, and the Covina Recreation Village Project. The Proposed Fiscal Year 2026-2030 CIP is included in Attachment E which outlines a listing of the FY 2025-26 CIP Budget and the FY 2026-2030 CIP Budget, including various projects and funding sources.

FISCAL IMPACT:

Exhibit A to Resolution CC 2025-37 and SA 2025-03 (Attachments A and B) to this report summarizes total projected revenues and appropriations for all funds.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

FY 2025-26 Budget:

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

FY 2026-2030 CIP & 2025-26 CIP Budget:

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

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Respectfully submitted,

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ATTACHMENT A
RESOLUTION CC 2025-37

A JOINT RESOLUTION OF THE CITY COUNCIL OF COVINA,

CALIFORNIA/COVINA PUBLIC FINANCING AUTHORITY/COVINA

HOUSING AUTHORITY ADOPTING THE CITY OF COVINA FISCAL
YEAR 2025-26 BUDGET
WHEREAS, the City Manager presented a Proposed Fiscal Year 2025-26 Budget to the City Council; and
WHEREAS, the City Council has given careful consideration to the Proposed Fiscal Year 2025-26 Budget; and
WHEREAS, City staff is directed to prepare and publish an Approved Fiscal Year Budget document to include changes approved by the City Council for the forthcoming fiscal year; and WHEREAS, the City Manager is responsible to implement the annual budget as authorized by Covina Municipal Code Section 2.08.160; and WHEREAS, the total budget appropriations, as adjusted where required, are incorporated herein by reference; and
WHEREAS, the number of appropriated full-time positions shall not change without City Manager approval; and
WHEREAS, the City faces budget constraints, and therefore, the City Manager is authorized to reduce the workforce by not filling certain vacant positions and/or initiating staffing reductions within established guidelines and procedures; and WHEREAS, there are funds within this budget document that are for specific purposes and appropriations of those funds will comply with accounting principles and governing rules of the funding sources.

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

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

SECTION 1. The Fiscal Year 2025-26 Budget as presented to the City Council at the May 6th, 2025 City Council meeting, as set forth in the May 6th, 2025 City Council Agenda Report entitled “Adoption of the Fiscal Year 2025-26 Budget, Fiscal Year 2026-2030 Capital Improvement Program (CIP) and Fiscal Year 2025-26 CIP Budget” and incorporated herein by reference are hereby approved and adopted as the official municipal budget for the City of Covina (“Fiscal Year 2025-26 Budget”), as summarized in Exhibit A attached hereto.

SECTION 2. Beginning on July 1, 2025, the City Manager is hereby authorized to proceed with the implementation of the programs as set forth in the approved and adopted Fiscal Year 2025-26 Budget, and to transfer any sum of appropriated funds between departments and programs

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Resolution CC 2025-37 Page 2 of 2
provided they do not cross funds.

SECTION 3. Unexpended appropriations from the Fiscal Year 2024-25 Budget may be carried forward to the next fiscal year provided the funds have been previously encumbered for a specific purpose, or apply to authorized, but uncompleted projects in the City’s approved Capital Improvement Program.

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

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

APPROVED and PASSED this 6th day of May, 2026.

City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-37 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 6th day of May, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

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City of Covina
FY 2025-26 Budget Summary
Fund Description Revenue Budget Expenditure Budget
1010 General Fund 57,247,253 57,247,253
1095 Special General Fund (Transaction/Use Tax) 8,831,706 9,220,014.10 Total General Fund 66,078,959 66,467,267
2020 Low Mod Housing Asset Fund 30,000 548,718
2025 Housing Bond Proceeds 04 Priva 6,000 15,000
2055 2004 Bond-Private 10,000 129,000
2100 Community Development Block Gr 293,058 293,058
2185 Building Equipment Reserve 4,000 4,000
2189 Heritage Tree Preservation - -
2200 Police Evidence Reserve - -
2205 Inmate Communication - -
2221 Federal Treasury Narcotics 4,000 -
2222 Federal Justice Narcotic Siezu 10,000 -
2246 Supplemental Law 188,000 91,196
2271 Justice Assistance Grant 10,000 10,000
2272 Justice Assistance Grant Impact - -
2285 COPS Grant 150,000 150,000
2290 Traffic Safety Fund -
2300 State Gas Tax 1,439,069 1,383,790
2310 Road Maintenance and Rehab 1,365,947 1,735,758
2360 CA-Strong Motion Instrumentati - -
2365 SB1186 Fund - -
2370 CA-Green Building Standards - -
2400 Proposition A 1,599,480 1,383,911
2405 Proposition C 1,113,228 1,750,000
2407 TDA 40,332 -
2410 Measure R 814,921 846,948
2420 Measure M 925,744 751,116
2500 Air Quality Improvement 66,000 28,231
2510 Measure W 775,000 531,404
2520 DOC Beverage Container Grant 12,910 12,910

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City of Covina
FY 2025-26 Budget Summary
Fund Description Revenue Budget Expenditure Budget
2530 Oil Payment Program 7,443 7,443
2600 Cultural Arts - -
2604 Quimby Fees - -
2700 Municipal Parking District 272,475 163,755
2710 Street Lighting Assessment Dis 308,500 290,309
2720 Street Trees and Landscaping 218,816 101,454
2740 Community Facilities District 300,000 300,509
2750 Shoppers Lane Parking District 21,000 11,564
2760 Enhanced Infrastructure Financing District 43,000 - 2800 Literacy Grant 46,680 46,680
2810 Library Equipment Reserve - -
2830 Other Library Grants 1,000 -
2890 PEG-Public Education and Government 50,000 73,732
2920 Public Safety Donation - -
2922 DARE Donation Admin - -
2926 Gang & Graffiti Donation - -
2927 Police Explorer Donation - -
2930 Gang/Graffiti Scholarship Fund - -
2931 Every 15 Minutes Admin - -
2957 Playground Equip Replace Donat - -
2958 Teen Program Fundraising - -
2960 Parks & Recreation Donations - -
2965 Youth Program Donations - -
2966 Youth Sports Equip Donation - -
2967 Volunteen Web Berger Grant 2,200 5,480
2968 Senior Fundraising Donations - -
2970 Library Services-Donation - -
2971 Lib Book Donation - -
2972 Library Services-IT Donation - -
2973 Gates Donation Fund - -
2975 Lib Services-Literacy Donation - -
2976 Joseph J Borrello Memorial - -

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City of Covina
FY 2025-26 Budget Summary
Fund Description Revenue Budget Expenditure Budget
2980 Miscellaneous Grants - -
4200 Public Works CIP - -
4300 Transportation CIP 3,000,000 3,000,000
4600 Parks and Recreation CIP 2,500,000 2,500,000
4630 Kahler Russell Park Gymnasium - -
4640 Joslyn Center Reconstruction - -
4701 Impact Fees-General Govt 300 -
4702 Impact Fees-Library Admin 300 -
4703 Impact Fees-Police Admin 300 -
4704 Impact Fees-Park Fac Admin 300 -
4705 Impact Fees-Streets Adm 300 336,331
4706 Impact Fees-Fire Admin 300 -
4707 Storm Water CFD 10,000 4,930
6010 Water Utility Admin 12,163,315 12,998,404
6011 Water Capital Improvement Fund 446,042 1,929,386
6200 Environmental-Waste Mgmt 1,298,942 1,748,823
6300 Sewer Utility 3,081,283 4,455,749
6400 Theatre Fund 352,000 577,725
7010 Central Equipment Operations 1,447,582 2,181,120
7020 Building Maintenance 1,595,512 1,595,591
7200 Information Technology 2,527,448 2,608,999
7360 Worker's Compensation 1,349,841 1,349,841
7370 Public Liablity 2,513,028 2,512,991
8186 Downtown District 8,358 8,358
8187 Prospero - -
T800 OPEB Trust 120,000 4,000
SXXX Successor Agency Funds 20,000 63,000
108,642,914 115,008,484

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ATTACHMENT B
RESOLUTION SA 2025-03

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY OF THE CITY OF COVINA,

CALIFORNIA, ADOPTING THE COVINA SUCCESSOR AGENCY
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1,
2025 AND ENDING JUNE 30, 2026
WHEREAS, the Executive Director has, heretofore, presented to the Successor Agency to the Covina Redevelopment Agency the proposed budget for the fiscal year beginning July 1, 2025 and ending June 30, 2026; and
WHEREAS, copies of said proposed budget are on file in the City Clerk’s office.

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

SECTION 1. Said proposed Successor Agency to the Covina Redevelopment Agency budget is hereby adopted as the budget of the Successor Agency for the fiscal year commencing July 1, 2025 and ending June 30, 2026. The Successor Agency budget consists of the estimated and anticipated expenditures and revenues for the fiscal year and as related shall be deemed to be debt of the Successor Agency.

SECTION 2. There are hereby appropriated for obligation and expenditure by the Executive Director the amounts shown for the various funds and accounts separately set forth in the Successor Agency to the Covina Redevelopment Agency proposed budget for fiscal year 2025- 2026.

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

SECTION 4. The 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 6th day of May, 2025.

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

VICTOR LINARES, Chair

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Resolution SA 2025-03 Page 2 of 2
ATTEST:

FABIAN VELEZ, Agency Secretary

CERTIFICATION
I, FABIAN VELEZ, Secretary of the Successor Agency to the Covina Redevelopment Agency, do hereby certify that Resolution SA 2025-03, was duly adopted by the Successor Agency to the Covina Redevelopment Agency at a regular meeting held on the 6th day of May, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Agency Secretary

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ATTACHMENT C
RESOLUTION CC 2025-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2026-2030 CAPITAL
IMPROVEMENT PROGRAM AND ADOPTING THE FISCAL YEAR 2025-
2026 CAPITAL IMPROVEMENT PROGRAM BUDGET
WHEREAS, the City Council has given careful consideration to the Proposed Fiscal Year 2025-2026 CIP Budget; and
WHEREAS, the total budget appropriations, as adjusted where required, are incorporated herein by reference; and
WHEREAS, there are funds within this budget document that are for specific purpose and appropriations of those funds will comply with accounting principles and governing rules of the funding sources; and
WHEREAS, on April 22, 2025, the Covina Planning Commission found the CIP consistent with the City’s General Plan in accordance with Government Code Section 65401.

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

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

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

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Resolution CC 2025-38 Page 2 of 2
undertaken. Section 15262 provides a categorical exemption to actions that are feasibility or planning studies related to possible future actions. This Council is aware of and has considered the current and relevant environmental factors as an integral component of the review of this Program.

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

SECTION 2. The City Council hereby adopts the Fiscal Year 2026-2030 CIP and the Fiscal Year 2025-2026 CIP Budget, which documents are on file in the office of the City Clerk of the City of Covina, incorporated herein by reference, and hereby appropriates funds in the City of Covina Fiscal Year 2025-2026 CIP Budget, and the City Manager is authorized to implement the same.

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

APPROVED and PASSED this 6
th
day of May, 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:

FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-38 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 6
th
day of May, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

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Attachment D Page 287 of 445
Attachment D Page 288 of 445
Attachment D Page 289 of 445
Attachment D Page 290 of 445
Attachment D Page 291 of 445
Attachment D Page 292 of 445
Attachment D Page 293 of 445
Attachment D Page 294 of 445
Attachment D Page 295 of 445

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SB-1 Gas Tax PROP C MEASURE M MEASURE R PROP A SEWER WATER

BUILDING MAINT
(FUNDED BY

MEASURE CC)

ENVIRONMENTAL MEASURE W PUBLIC WORKS CIP LMIH BOND FUNDS GENERAL FUND GRANTS IMPACT FEES -

GENERAL GOVT

IMPACT FEES -

LIBRARY

IMPACT FEES -
POLICE

IMPACT FEES - PARK
FAC

IMPACT FEES -

STREETS

IMPACT FEES - FIRE
ADMIN
$ 369,850.00 $ (51,425.00) $ 777,927.00 $ - $ 20,070.00 $ 1,726,292.00 $ 5,145,052.00 $ 1,761,865.00 $ 859,931.00 $ 758,862.00 $ 8,547,592.00 $ 14,310,433.00 $ 32,832.00 $ 210,484.00 $ 71,304.00 $ 27,273.00 $ 336,331.00 $ 129,494.00 $ 1,365,947.00 $ 1,435,269.00 $ 1,113,228.00 $ 925,744.00 $ 827,921.00 $ 1,599,480.00 $ 3,071,283.23 $ 12,288,315.00 $ 1,501,068.54 $ 1,251,400.00 $ 737,800.00 $ 200.00 $ 1,190,300.00 $ - $ 547,375.00 $ 470,738.00 $ 1,264,184.00 $ 3,950,389.93 $ 12,375,180.00 $ 1,579,331.66 $ 1,504,016.89 $ 288,558.00 $ 1,735,597.00 $ 193,544.00 $ 1,891,155.00 $ 378,369.00 $ 377,253.00 $ 2,061,588.00 $ 4,265,945.30 $ 1,675,000.00 $ 781,667.88 $ 506,245.11 $ 8,996,834.00 $ 127,550.00 $ 129,000.00 TBD TBD $ 32,832.00 $ 210,484.00 $ 71,304.00 $ 27,273.00 $ 336,331.00 $ 129,494.00 1 Barranca Avenue & Covina Boulevard Resurfacing Project From Workman Avenue to Cypress Street & from Fairvale to Barranca Avenue $ 1,735,597 $ 1,735,597
2 East San Gabriel Valley Safe and Active Streets Connectivity Project
Badillo Street from Glendora Avenue to ECL and Reeder
Avenue from Badillo Street to Puente Street.
$ 3,000,000 $ 3,000,000
3 Alleyway Roadway Construction Project Covina Recreation Village $ 328,369 $ 200,000 $ 336,331 $ 864,700 4 San Bernardino Road Resurfacing Project From Azusa Avenue to Lark Ellen Avenue $ 1,200,000 $ 1,200,000 5 HAWK Traffic Beacon Installation Project Citrus Avenue & Benbow Street $ 250,000 $ 250,000 6 Miscellaneous Concrete Repair Project City-Wide $ 193,544 $ 50,000 $ 243,544 7 Traffic Signal Battery Backup Installation Project City-Wide $ 300,000 $ 300,000 8 Traffic Calming Improvements Project City-Wide $ 100,000 $ 100,000 9 Pavement Management Program City-Wide $ 70,000 $ 70,000 10 Citywide Facilities Improvements Project Citywide $ 202,253 $ 250,000 $ 452,253 11 Tree Planting Project City-Wide $ 50,000 $ 50,000
12 Fourth Avenue Water Main Replacement Project From Badillo Street to San Bernardino Road $ 1,300,000 $ 1,300,000 13 Cypress Avenue Water Main Replacement Project (Design Only) From Citrus Avenue to Elspeth Way $ 100,000 $ 100,000 14 CCTV Facilities Installation Project Water Facilities $ 100,000 $ 100,000 15 Covina Park Shelter Replacement Project Covina Park $ 129,000 $ 129,000 16 Hollenbeck Park Restroom Renovation Project Hollenbeck Park $ 175,000 $ 175,000 $ 350,000 17 Sunkist Park Urban Greening Revitalization Project Sunkist Park $2,500,000 $ 2,500,000 18 City-Wide Sewer Manhole Lining Project City-Wide $ 175,000 $ 175,000 19 Sewer Relief Line Project City-Wide $ 1,000,000 $ 1,000,000 20 Bus Shelter Installation Project City-Wide $ 100,000 $ 100,000 21 Trash Enclosure Project City-Wide $ 150,000 $ 150,000 $ 14,170,094
Funding Sources SB-1 Gas Tax PROP C MEASURE M MEASURE R PROP A SEWER WATER

BUILDING

MAINT (FUNDED

BY MEASURE CC)

ENVIRONMENTAL MEASURE W PUBLIC WORKS
CIP

LMIH BOND

FUNDS GENERAL FUND GRANTS

IMPACT FEES -

GENERAL
GOVT

IMPACT FEES -

LIBRARY

IMPACT FEES -
POLICE

IMPACT FEES -

PARK FAC

IMPACT FEES -

STREETS

IMPACT FEES - FIRE
ADMIN
Total Available Funding Remaining $ - $ - $ 141,155 $ - $ 5,000 $ 1,961,588 $ 2,715,945 $ - $ 781,668 $ 306,245 $ 8,746,834 $ 127,550 $ - $ - #VALUE! $ 32,832 $ 210,484 $ 71,304 $ 27,273 $ - $ 129,494

ENGINEERING
WATER

PARKS AND RECREATION
ITEM
Total CIP Budget FY 25-26

FUNDINGS SOURCES
Fund Balance - End of FY 2024-25 (Per Finance)
Anticipated Revenue - FY 25-26
SEWER

TRANSPORTATION

ENVIRONMENTAL
Operational Expenses - FY 25-26
Total Funding Sources - FY 25-26

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEAR 2025-2026

FUNDING SOURCES

DEVELOPMENT IMPACT FEES -

RESTRICTED USES

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Attachment E

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 1 Street Residential Resurfacing Project City-Wide Measure M, Measure R, Sewer $ 800,000 $ 800,000 $ 800,000 $ 800,000
2 Barranca Avenue & Covina Boulevard
Resurfacing Project
From Workman Avenue to
Cypress Street & Fairvale
Avenue to Barranca Avenue
SB-1 $ 1,735,597
3 San Bernardino Road Resurfacing Project From Citrus Avenue to Grand Avenue SB-1 $ 1,300,000
4 San Bernardino Road Resurfacing Project From Lark Ellen Avenue to Vincent Avenue Prop C $ 1,000,000
5 San Bernardino Road Resurfacing Project From Azusa Avenue to Lark Ellen Avenue Prop C $ 1,200,000
6 HAWK Traffic Beacon Project Citrus Avenue & Benbow Street Prop C $ 250,000 7 East San Gabriel Valley Safe and Active
Streets Connectivity Project
Badillo Street from Glendora
Avenue to ECL and Reeder
Avenue from Badillo Street to
Puente Street
Grants $ 3,000,000
8 Alleyway Roadway Construction Project Covina Recreation Village Measure M, Sewer, Impact Fees - Streets $ 864,700
9 Traffic Signal Battery Backup Project City-Wide Prop C $ 300,000 10 City-Wide Facilities Improvements Project City-Wide Measure R, Measure W
$ 452,253
11 Hollenbeck Avenue Resurfacing Project From SCL to NCL SB1 $ 1,300,000 12 Glendora Avenue Resurfacing Project From Badillo Street to NCL SB1 $ 1,300,000 13 Vincent Avenue Rehabilitation Project From Badillo Street to Northerly City Limit Prop C $ 1,500,000
14 Pavement Management Program City-Wide Measure R $ 70,000 $ 75,000 $ 75,000 15 City-Wide Alleyway Resurfacing Project City-Wide Gas Tax $ 100,000 $ 100,000 $ 100,000 $ 100,000 16 Miscellaneous Concrete Repair Project City-Wide Gas Tax, Measure M $ 243,544 $ 200,000 $ 200,000 $ 200,000 $ 200,000 17 Traffic Calming Improvements Project City-Wide Measure R $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
18 Traffic Signal Installation Project San Bernardino Road and Prospero Drive
Measure M & R,
Sewer, Water $ 1,200,000
19 Tree Planting Project City-Wide Environmental $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Total $ 8,266,094 $ 4,750,000 $ 2,625,000 $ 2,550,000 $ 2,825,000

ENGINEERING

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
20 Edna Place Pipe Improvements Project Grand Avenue to Barranca Avenue Water $ 6,000,000
21 Navilla Place and Forestdale Avenue Main
Replacement Project (Design Only)
Navilla Place & Forestdale
Avenue Water $ 5,000,000
22 Fourth Avenue Water Main Replacement
Project
From Badillo Street to San
Bernardino Road Water $ 1,300,000
23 Cypress Avenue Water Main Replacement
Project
From Citrus Avenue to Elspeth
Avenue Water $ 100,000 $ 4,000,000
24 CCTV Facilities Installation Project Water Facility Sites Water $ 100,000 25 Rancho La Merced Water Improvement
Project (Design Only) Rancho La Merced Water $ 100,000
26 Water Master Plan & Rate Update City-Wide Water
27 Hurst Tract Water Main Replacement
Project
From Cypress Avenue to Covina
Boulevard and Grand Avenue to
Brightview Drive
Water $ 1,500,000
28 Loma Vista St & Orange Circle Water
Main Replacement Project Loma Vista St/Orange Circle Water $ 750,000 29 San Joaquin Road and Rambling Road
Main Replacement
From Covina Hills to Navilla
Place Water $ 4,000,000
Total $ 1,500,000 $ 1,600,000 $ 4,750,000 $ 9,000,000 $ 6,000,000 WATER

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
30 Covina Park Tennis Court Renovation Covina Park Measure CC $ 350,000 31 Covina Park Aquatic Center Project
(Design & Specs Only) Covina Park Measure CC $ 200,000 $ 1,000,000 32 Sunkist Park Urban Greening
Revitalization Project Sunkist Park Grants $ 2,500,000
33 Hollenbeck Park Restroom Renovation
Project Hollenbeck Park Water, Sewer $ 350,000
34 Covina Park Shelter Replacement Project Covina Park LMIH Bond Funds $ 129,000 35 Covina Park Bandshell Replacement
Project Covina Park
LMIH Bond Funds,
Measure CC, Measure
A
$ 200,000
36 Wingate Park Hockey Rink & Pickleball
Construction Project Wingate Park TBD
37 Covina Park & Wingate Park Restroom
Renovation Project Covina Park & Wingate Park Water, Sewer, Measure CC $ 600,000 38 Covina Park Pool Resurfacing Project Covina Park TBD 39 Covina Park Softball Field Renovation
Project Covina Park TBD
Total $ 2,979,000 $ 750,000 $ 1,600,000 $ - $ -

PARKS AND RECREATION

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
40 City Facility Renovation Project City-Wide Measure CC $ 200,000 $ 100,000 $ 100,000 41 PD Generator Installation Project Police Department Building Maintenance $ 500,000 42 Covina Police Communications and
RealTime Watch Center Police Department TBD, Impact Fees - PD TBD 43 Covina Recreation Village Project Vita Pakt
Measure W, Grants,
Impact Fees - Library,
Impact Fees - Park Fac
TBD
Total $ - $ 700,000 $ 100,000 $ 100,000 $ -

FACILITIES

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
44 City Wide Manhole Lining Project City-Wide Sewer $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 45 Sewer Main Replacement Project City-Wide Sewer $ 100,000 $ 100,000 $ 100,000 $ 100,000 46 Sewer Relief Line Project City-Wide Sewer $ 1,000,000 Total $ 1,175,000 $ 275,000 $ 275,000 $ 275,000 $ 275,000 SEWER

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
47 Bus Shelter Installation Project City Wide Prop A $ 100,000 $ 100,000 $ 100,000 $ 100,000 Total $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ -

TRANSPORTATION

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
48 Trash Enclosure Project City-Wide Environmental $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 49 Frontage Median Bioswale Installation
Project City-Wide Measure W $ 250,000 $ 250,000 $ 250,000 $ 250,000 Total $ 150,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000

ENVIRONMENTAL

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
50 Downtown Restaurant Improvements
Project 100 N. Citrus Avenue Building Maintenance TBD
51 100-112 N. Citrus Avenue HVAC
Replacement Project 100-112 N. Citrus Avenue Energy Grant/Covina Theater $ 500,000 52 Covina Theater - Lincoln Box Replacement
Project 104 N. Citrus Avenue Covina Theater $ 500,000
Total $ - $ 500,000 $ 500,000 $ - $ -

COVINA THEATER

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
53 Royal Oak Middle School Playground &
Ballfields Construction Project 303 Glendora Avenue TBD $ 1,000,000 54 Navigation Center Navigation Center Prop C/Sewer/Water $ 1,000,000 Total $ - $ 2,000,000 $ - $ - $ -

COMMUNITY DEVELOPMENT

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Attachment E

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
55 City Hall & PW Yard Master Plan &
Design Project City Hall & Public Works Yard Impact Fees - Gen Govt TBD Total $ - $ - $ - $ - $ -

IMPACT FEES - GENERAL GOVERNMENT

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Attachment E

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
56 Covina Recreation Village Project -
Furniture, Fixtures & Equipment Covina Recreation Village Impact Fees - Library $ 210,484 Total $ - $ 210,484 $ - $ - $ -

IMPACT FEES - LIBRARY

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
57 Expansion of City-Wide Public Safety
Cameras & Surveillance Project Police Department Impact Fees - PD, Measure CC $ 50,000 58 PD Parking Lot Security Enhancement
Project Police Department Impact Fees - PD, Grants, Measure CC $ 75,000 Total $ - $ 50,000 $ 75,000 $ - $ -

IMPACT FEES - POLICE DEPARTMENT

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Attachment E

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
59 Park Master Plan Analysis Project City-Wide Impact Fees - Park Fac $ 27,273 Total $ - $ - $ - $ - $ 27,273

IMPACT FEES - PARK FACILITIES

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
60 TS Upgrade - 2nd Ave & College Street 2nd Ave/College Street Impact Fees - Streets TBD 61 TS Modification - Citrus Avenue/Cypress
Street Project Citrus Avenue/Cypress Street Prop C, Impact Fees - Streets $ 900,000 62 TS Installation - Prospero Drive/San
Bernardino Road Project
Prospero Drive/San Bernardino
Road
Prop C, Impact Fees -
Streets $ 1,500,000
63 TS Modification - San Bernardino
Road/Grand Avenue
San Bernardino Road & Grand
Avenue
Prop C, Grants, Impact
Fees - Streets $ 1,000,000
Total $ - $ - $ 900,000 $ 1,500,000 $ 1,000,000

IMPACT FEES - STREETS

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Attachment E

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Item Project Title Project Location Funding Source(1) 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030

CITY OF COVINA

CAPITAL IMPROVEMENT PROGRAM
FISCAL YEARS 2026-2030

ENGINEERING
64 LA County Fire Department - Building
Expansion Study Due to Growth
Various LACFD Sites - Owned
by the City of Covina Impact Fees - Fire $ 115,353
Total $ - $ - $ - $ - $ 115,353
Grand Total $ 14,170,094 $ 11,335,484 $ 11,325,000 $ 13,925,000 $ 10,642,626

IMPACT FEES - FIRE

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Attachment E

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City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025 Fund
Balance Revenue Budget
Available
resources Expenditure Budget
June 30, 2026
Fund Balance Chg
1010 General Fund 14,239,306 57,247,253 71,486,560 57,247,253 14,239,306 - 1095 Special General Fund (Transaction/Use Tax) 12,469,543 8,831,706 21,301,249 9,220,014.10 12,081,235 (388,308) Total General Fund 26,708,850 66,078,959 92,787,809 66,467,267 26,320,542 (388,308) 2020 Low Mod Housing Asset Fund 351,858 30,000 381,858 548,718 (166,860) (518,718) 2025 Housing Bond Proceeds 04 Priva 244,597 6,000 250,597 15,000 235,597 (9,000) 2055 2004 Bond-Private 127,300 10,000 137,300 129,000 8,300 (119,000) 2100 Community Development Block Gr - 293,058 293,058.00 293,058 - - 2185 Building Equipment Reserve 1,049 4,000 5,049 4,000 1,049 - 2189 Heritage Tree Preservation 41,223 - 41,223 - 41,223 - 2200 Police Evidence Reserve 337,936 - 337,936 - 337,936 - 2205 Inmate Communication 29,623 - 29,623 - 29,623 -
2221 Federal Treasury Narcotics 108,461 4,000 112,461 - 112,461 4,000 2222 Federal Justice Narcotic Siezu 234,175 10,000 244,175 - 244,175 10,000 2246 Supplemental Law 188,816 188,000 376,816 91,196 285,620 96,804 2271 Justice Assistance Grant - 10,000 10,000 10,000 - - 2272 Justice Assistance Grant Impact 29,630 - 29,630 - 29,630 - 2285 COPS Grant - 150,000 150,000 150,000 - -
2290 Traffic Safety Fund 29,859 - 29,859 29,859 -
2300 State Gas Tax (51,425) 1,439,069 1,387,644 1,383,790 3,854 55,279 2310 Road Maintenance and Rehab 441,667 1,365,947 1,807,614 1,735,758 71,856 (369,811) 2360 CA-Strong Motion Instrumentati 12,173 - 12,173 - 12,173 - 2365 SB1186 Fund 86,980 - 86,980 - 86,980 -
2370 CA-Green Building Standards 3,406 - 3,406 - 3,406 - 2400 Proposition A 1,726,292 1,599,480 3,325,772 1,383,911 1,941,861 215,569 2405 Proposition C 777,927 1,113,228 1,891,155 1,750,000 141,155 (636,772) 2407 TDA 51,708 40,332 92,040 - 92,040 40,332
2410 Measure R 34,549 814,921 849,470 846,948 2,522 (32,027) 2420 Measure M - 925,744 925,744 751,116 174,628 174,628 2500 Air Quality Improvement 86,809 66,000 152,809 28,231 124,578 37,769 2510 Measure W 8,547,592 775,000 9,322,592 531,404 8,791,188 243,596 2520 DOC Beverage Container Grant 30,197 12,910 43,107 12,910 30,197 -

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City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025 Fund
Balance Revenue Budget
Available
resources Expenditure Budget
June 30, 2026
Fund Balance Chg
2530 Oil Payment Program 2,058 7,443 9,501 7,443 2,058 - 2600 Cultural Arts 3,015 - 3,015 - 3,015 -
2604 Quimby Fees 40,110 - 40,110 - 40,110 -
2700 Municipal Parking District 912,281 272,475 1,184,756 163,755 1,021,001 108,720 2710 Street Lighting Assessment Dis (18,057) 308,500 290,443 290,309 133 18,191 2720 Street Trees and Landscaping 608,679 218,816 827,495 101,454 726,041 117,362 2740 Community Facilities District 83,248 300,000 383,248 300,509 82,739 (509) 2750 Shoppers Lane Parking District 65,235 21,000 86,235 11,564 74,671 9,436 2760 Enhanced Infrastructure Financing District - 43,000 43,000 - 43,000 2800 Literacy Grant (5,408) 46,680 41,272 46,680 (5,408) - 2810 Library Equipment Reserve (17,450) - (17,450) - (17,450) - 2830 Other Library Grants 263 1,000 1,263 - 1,263 1,000 2890 PEG-Public Education and Government 622,981 50,000 672,981 73,732 599,249 (23,732) 2920 Public Safety Donation 15,773 - 15,773 - 15,773 -
2922 DARE Donation Admin 4,787 - 4,787 - 4,787 -
2926 Gang & Graffiti Donation 922 - 922 - 922 -
2927 Police Explorer Donation 7,643 - 7,643 - 7,643 -
2930 Gang/Graffiti Scholarship Fund 679 - 679 - 679 -
2931 Every 15 Minutes Admin 2,896 - 2,896 - 2,896 -
2957 Playground Equip Replace Donat 5,941 - 5,941 - 5,941 - 2958 Teen Program Fundraising 2,505 - 2,505 - 2,505 -
2960 Parks & Recreation Donations 14,544 - 14,544 - 14,544 - 2965 Youth Program Donations 11,483 - 11,483 - 11,483 - 2966 Youth Sports Equip Donation 45,962 - 45,962 - 45,962 - 2967 Volunteen Web Berger Grant 22,069 2,200 24,269 5,480 18,789 (3,280) 2968 Senior Fundraising Donations 6,272 - 6,272 - 6,272 - 2970 Library Services-Donation 42,833 - 42,833 - 42,833 - 2971 Lib Book Donation 9,374 - 9,374 - 9,374 -
2972 Library Services-IT Donation 1,475 - 1,475 - 1,475 - 2973 Gates Donation Fund 13,026 - 13,026 - 13,026 -
2975 Lib Services-Literacy Donation 10,933 - 10,933 - 10,933 - 2976 Joseph J Borrello Memorial 61,316 - 61,316 - 61,316 - 2980 Miscellaneous Grants 194,661 - 194,661 - 194,661 - 4200 Public Works CIP 127,550 - 127,550 - 127,550 -
4300 Transportation CIP - 3,000,000 3,000,000 3,000,000 - - 4600 Parks and Recreation CIP 1,465,015 2,500,000 3,965,015 2,500,000 1,465,014.75 -

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City of Covina
FY 2025-26 Budget Summary
Fund Description
June 30, 2025 Fund
Balance Revenue Budget
Available
resources Expenditure Budget
June 30, 2026
Fund Balance Chg
4630 Kahler Russell Park Gymnasium 111,540 - 111,540 - 111,540 - 4640 Joslyn Center Reconstruction 5,000 - 5,000 - 5,000 - 4701 Impact Fees-General Govt 32,832 300 33,132 - 33,132 300 4702 Impact Fees-Library Admin 210,484 300 210,784 - 210,784 300 4703 Impact Fees-Police Admin 71,304 300 71,604 - 71,604 300 4704 Impact Fees-Park Fac Admin 27,273 300 27,573 - 27,573 300 4705 Impact Fees-Streets Adm 336,331 300 336,631 336,331 300 (336,031) 4706 Impact Fees-Fire Admin 129,494 300 129,794 - 129,794 300 4707 Storm Water CFD 18,005 10,000 28,005 4,930 23,075 5,070 6010 Water Utility Admin 3,713,931 12,163,315 15,877,246 12,998,404 2,878,842 (835,089) 6011 Water Capital Improvement Fund 1,483,345 446,042 1,929,387 1,929,386 1 (1,483,344) 6200 Environmental-Waste Mgmt 758,862 1,298,942 2,057,804 1,748,823 308,980 (449,881) 6300 Sewer Utility 5,057,209 3,081,283 8,138,492 4,455,749 3,682,743 (1,374,465) 6400 Theatre Fund 388,276 352,000 740,276 577,725 162,551 (225,725) 7010 Central Equipment Operations 2,446,093 1,447,582 3,893,675 2,181,120 1,712,555 (733,537) 7020 Building Maintenance 859,931 1,595,512 2,455,442 1,595,591 859,851 (79) 7200 Information Technology 1,373,973 2,527,448 3,901,421 2,608,999 1,292,422 (81,551) 7360 Worker's Compensation 2,152,548 1,349,841 3,502,389 1,349,841 2,152,548 - 7370 Public Liablity 832,865 2,513,028 3,345,893 2,512,991 832,902 37 8186 Downtown District 563 8,358 8,921 8,358 563 -
8187 Prospero 225 - 225 - 225 -
T800 OPEB Trust 1,490,177 120,000 1,610,177 4,000 1,606,177 116,000 SXXX Successor Agency Funds 3,546,006 20,000 3,566,006 63,000 3,503,006 (43,000) 69,592,131 108,642,914 178,235,045 115,008,484 63,226,561 (6,408,570)

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2024 2025 2025 2026
Legislative Actual Adopted Revised Proposed
City Council 225,699 308,502 308,502 321,501
City Clerk 4,679 11,179 11,179 11,142
Elections 66,805 650 650 225,650
City Treasurer 4,431 10,031 10,031 10,031
City Attorney 292,138 275,500 278,931 275,500
593,753 605,862 609,294 843,824
2024 2025 2025 2026
Administration Actual Adopted Revised Proposed
City Manager 345,794 481,238 481,238 528,883
Economic Development 117,472 327,516 327,516 259,526
Public Information 103,306 111,327 111,327 133,241
Records Management 424,881 464,025 464,025 541,891
991,453 1,384,105 1,384,105 1,463,541
2024 2025 2025 2026
Finance Actual Adopted Revised Proposed
Accounting 1,153,636 1,375,253 1,390,218 1,630,519
Duplicating 12,432 11,650 11,650 12,350
1,166,068 1,386,903 1,401,868 1,642,869
2024 2025 2025 2026
Non Departmental Actual Adopted Revised Proposed
Cost Allocation (2,362,874) (2,834,596) (2,834,596) (2,849,780) Intergovernmental 40,797 53,700 53,700 55,900
Community Outreach 30,014 60,000 60,000 40,000
General Obligation 3,250 5,000 5,000 5,000
Capital Lease 45,349 - - -
Transfers Out 1,176,304 269,906 966,314 261,916
(1,067,160) (2,445,990) (1,749,582) (2,486,964)
2024 2025 2025 2026
Human Resources Actual Adopted Revised Proposed
General Administration 536,982 564,486 594,486 619,776
General Insurance 740,875 802,621 802,621 824,668
1,277,857 1,367,107 1,397,107 1,444,443
City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26

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City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26
2024 2025 2025 2026
Police Department Actual Adopted Revised Proposed
General Administration 5,860,570 6,525,835 6,586,962 7,356,168 Crime Prevention 520,725 564,887 607,566 645,126
Investigations 2,979,526 3,118,422 3,098,422 3,095,684
Patrol 9,565,886 10,599,858 10,802,673 10,973,150
Police Records 601,521 699,006 699,006 695,971
Jail 479,284 502,490 502,490 465,967
Canine 3,132 5,500 5,500 5,500
Traffic 659,786 671,633 671,633 708,516
Parking Control 451,142 465,765 465,765 450,557
Communications Svcs 1,440,786 1,685,759 1,685,759 1,657,195 Police Training 667,912 688,445 688,445 638,337
Computer Service 339,363 431,000 520,528 470,387
Disaster Preparation 55,804 59,500 59,500 88,500
Animal Control 365,551 383,500 383,500 440,504
23,990,988 26,401,599 26,777,748 27,691,562
2024 2025 2025 2026
Emergency Services Actual Adopted Revised Proposed
Emergency Medical Services (6,825) - - -
(6,825) - - -
2024 2025 2025 2026
Fire Department Actual Adopted Revised Proposed
Fire Suppression 10,070,577 12,812,054 12,812,054 13,759,677 10,070,577 12,812,054 12,812,054 13,759,677
2024 2025 2025 2026
Public Works Actual Adopted Revised Proposed
General Administration 351,354 434,797 434,797 576,689
Graffiti 600 800 800 1,000
Engineering 554,040 669,366 717,184 721,510
Streets 1,532,947 1,944,476 2,039,476 1,990,067
Street Trees Landscaping 100 - 24,900 -
Park Maint 1,241,509 1,243,270 1,299,683 1,272,650
3,680,550 4,292,710 4,516,840 4,561,915

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City of Covina
General Fund Expenditure Summaries by Department
Fiscal Year 2025-26
2024 2025 2025 2026
Parks And Recreation Actual Adopted Revised Proposed
General Administration 750,048 868,590 878,590 980,574
Community Relations 235,763 178,341 178,341 189,290
Recreation Services 693,345 751,713 777,213 709,800
Community Programs 70,808 83,595 83,595 92,735
Senior Services 374,539 443,240 463,705 451,664
Community Parade 325,123 265,389 265,389 257,898
Community Special Events 27,221 50,249 50,249 53,890
Aquatics 288,365 308,918 308,918 139,120
Library Services 1,226,180 1,717,974 1,722,927 1,685,199 3,991,392 4,668,008 4,728,927 4,560,170
2024 2025 2025 2026
Community Development Actual Adopted Revised Proposed
General Administration 1,322,302 1,345,797 6,851,048 1,677,231 Planning 789,550 670,896 895,939 695,589
Planning Commission 12,956 17,225 17,225 17,725
Building Inspection 1,013,651 830,709 838,911 890,780
Code Enforcement 538,459 535,749 554,112 484,891
Business Assistance 123,752 - 271,164 -
3,800,670 3,400,376 9,428,400 3,766,216
Total Gen Fund 48,489,323 53,872,734 61,306,761 57,247,253

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Attachment H

CITY OF COVINA
Budget Policy

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

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

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

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

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Attachment H
recommendations.
o Maintain sufficient reserves to fund equipment replacement at the end of its useful life  Enterprise Funds
o Maintain reserves as recommended by applicable rate studies  Restricted Funds
o Reserves can be used for only designated purposes
o Excess reserves can be designated for recurring and nonrecurring activities or capital improvements depending on the nature of the fund

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

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

BUDGET SHALL BE BALANCED
 Ongoing and recurring costs shall be funded with ongoing and recurring revenues  One-time and nonrecurring costs shall be funded with excess ongoing revenues, available one-time revenues or excess reserves
 One-time or nonrecurring revenues shall not fund ongoing costs

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Attachment H
 Current costs shall be recognized and funded in the current year, not deferred or funded in future years whenever possible
 Budget sufficient funding levels to maintain current City services  The General Fund shall try to maintain a minimum $100,000 operating contingency for unanticipated events
 Make conscious decisions about cost recovery and/or general tax subsidy of those services that benefit only a portion of the tax paying public
 Formalize a five-year capital improvement program to identify priorities, service levels, funding sources and future impacts of decisions made today.

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

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

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

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CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 2
Meeting: May 6, 2025
Title: The Establishment and Adjustment of Certain Service and Development-Related and Other User Fees
Presented by: Theresa Franke, Interim Finance Director
Charles Russom, Sr. Management Analyst
Recommendation: Open and conduct the Public Hearing and adopt Resolution CC 2025-39 Adopting a Citywide Comprehensive User Fee Study, Adopting a comprehensive fee schedule establishing and amending certain service and development-related fees for City services, and Authorizing the payment of such fees by credit card, debit card or electronic funds transfer.

BACKGROUND:

The California Government Code allows cities to recover all or a portion of the cost of providing exchange-based services through the application of fees. The City’s last comprehensive fee update was performed in 2015 and since this time, costs have steadily increased each year. As such, funding was included in the City’s Fiscal Year 2024-25 budget to complete a comprehensive study of user fees and the associated costs to provide services. This work has progressed over the last several months and has been compiled for the Council’s further review and consideration. In addition to this work, a comparison study of fees for service in other neighboring cities has been completed to provide additional context relative to the City’s existing and proposed fees.

In order to ensure that the fees that are charged are in line with applicable regulations, staff recommends adoption of Resolution CC 2025-39 establishing and adjusting certain service and development-related fees for City services.

DISCUSSION:

Over the last several months, City Departments have evaluated the City’s existing fee schedule to assess the range of services that are provided to the community. Included in this review was an assessment of staff time and related costs to provide each service. These factors were used to then calculate the cost of City services as follows:
 Calculating the fully-allocated employee cost per hour, which consists of an employee’s full salary and benefits, plus total overhead; and
 Conducting a “time survey” to determine the position(s) and time required to provide each service.

Times were based on minutes spent for each service and reflect an average for each fee.

Exhibit A to the resolution details the type of fees provided by the City, the full cost of providing the service related to that fee, the current fee, and the recommended fee. Fees have been adjusted accordingly, reflecting cost increases or decreases of providing that service. A full detailed report provided by our consultant Willdan Financial Services is attached under Attachment A.

While 100% cost recovery is generally recommended, there are instances when a lower recovery amount may be considered. For instance, most communities set a lower recovery amount for recreation and youth programs to increase accessibility to community programs. In other instances, certain fees are capped by state or federal statutes. The City Council is requested to adopt the fees in the City’s 12 Study Areas – City Clerk, Finance, Engineering, Environmental, Water, Industrial Waste, Parks/Recreation/Library, Building, Planning, Housing & CDBG, Film, and Police.

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The results of this study were presented to the City’s Finance Commission at the April 30, 2025, Special Meeting. The Commission provided the following feedback:
 Water Past Due Account Balances: Currently, customers are charged a 10% penalty on past due water account balances. The proposed user fee study contemplated changing this amount to be 10% of the most recent bill. The Commission expressed interest in maintaining the existing fee for this service. As a result of this feedback, it is recommended that this penalty remain unchanged.  Use of Fully-Burdened Rates for Reconnection Fees: Currently, customer are charged $120 to reconnect water services following a service disconnection. The proposed user fee study contemplates changing this amount to the fully burdened cost associated with reconnecting an account – which is $412.25. On weekends or days when City offices are closed, the City utilizes an on-call staff member to respond to service reconnection requests. Existing collective bargaining agreements require that staff members be paid a minimum of three (3) hours when responding to after-hours on-call activities. The Commission expressed interest in maintaining the existing fee for this service. As a result of this feedback, it is recommended that the reconnection fee remain unchanged.

Additionally, the Commission provided feedback regarding some water fees not receiving full cost recovery, the differences between Proposition 218 established fees that require a majority protest, the estimated impacts of fee increases on users and the quality of services provided by the City’s third-party business license consultant. Staff clarified that some fees have a phased-in approach to reaching full cost recovery, that the current fee study focuses on individualized fees for service and are not property-related as described in Proposition 218, that a review of neighboring cities was completed to ensure that the City’s proposed fees are within the market standards and that further review will be completed on business license processing.

FISCAL IMPACT:

The exact dollar impact across funds is currently unknown. However, the recommended changes in fees will ensure compliance with applicable regulations and move the City closer toward full cost recovery for services rendered.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not Applicable.

Respectfully submitted,

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CITY OF COVINA
User Fee Study
Attachment A

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i Comprehensive User Fee Study

TABLE OF CONTENTS
TABLE OF CONTENTS ................................................................................................. i Executive Summary .................................................................................................. 1 User Fee Background ............................................................................................... 2 Background .................................................................................................................................................. 2 California User Fee History .......................................................................................................................... 2 Additional Policy Considerations ................................................................................................................. 3 Study Objective ....................................................................................................... 4 Scope of the Study ....................................................................................................................................... 4 Aim of the Report......................................................................................................................................... 5 Project Approach and Methodology ........................................................................... 6 Conceptual Approach................................................................................................................................... 6 Fully Burdened Hourly Rates........................................................................................................................ 6 Summary Steps of the Study ........................................................................................................................ 7 Allowable Costs ............................................................................................................................................ 7 Methodology ................................................................................................................................................ 8 Quality Control/Quality Assurance .............................................................................................................. 8 Reasons for cost increases/decreases over current fees............................................................................. 8 City Staff Contributions ................................................................................................................................ 9 Covina User Fees ................................................................................................... 10 Cost Recovery............................................................................................................................................. 10 Subsidization .............................................................................................................................................. 10 Impact on Demand (Elasticity) ................................................................................................................... 11 Summary .................................................................................................................................................... 11 City Clerk/Records Management ............................................................................. 12 Analysis ...................................................................................................................................................... 12 Finance ................................................................................................................ 13 Analysis ...................................................................................................................................................... 13 Film Permits ......................................................................................................... 14 Analysis ...................................................................................................................................................... 14 Engineering .......................................................................................................... 15 Attachment A

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ii Comprehensive User Fee Study
Analysis ...................................................................................................................................................... 15 Water .................................................................................................................. 16 Analysis ...................................................................................................................................................... 16 Environmental ...................................................................................................... 17 Analysis ...................................................................................................................................................... 17 Industrial Waste .................................................................................................... 18 Analysis ...................................................................................................................................................... 18 Parks & Recreation and Library Services ................................................................... 19 Analysis ...................................................................................................................................................... 19 Building ................................................................................................................ 20 Analysis ...................................................................................................................................................... 20 Planning ............................................................................................................... 21 Analysis ...................................................................................................................................................... 21 Housing & CDBG .................................................................................................... 22 Analysis ...................................................................................................................................................... 22 Police ................................................................................................................... 23 Analysis ...................................................................................................................................................... 23 Appendix A – Total Allowable Cost to be Recovered .................................................. 24 Appendix B –Fully Burdened Hourly Rates ................................................................ 25 Appendix C – Cost Recovery Analysis ....................................................................... 28 Attachment A

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1 Comprehensive User Fee Study
Executive Summary
The City of Covina engaged Willdan Financial Services (Willdan) to determine the full costs incurred by the City to support the various activities for which the City charges user fees. Due to the complexity and the breadth of performing a comprehensive review of fees, Willdan employed a variety of fee methodologies to identify the full costs of individual fee and program activities. This report and the appendices herein identify 100% full cost recovery for City services. Appendix C details the full cost and suggested fees as determined through discussion with departmental staff. The recommended fees identified herein are either at or less than full cost recovery.

Attachment A

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2 Comprehensive User Fee Study
User Fee Background
Background
As part of a general cost recovery strategy, local governments adopt user fees to fund programs and services that provide limited or no direct benefit to the community as a whole (“User Fees”). As cities struggle to maintain levels of service and variability of demand, they have become increasingly aware of subsidies provided by the General Fund and have implemented cost-recovery targets. To the extent that governments use general tax monies to provide individuals with private benefits, and not require them to pay the full cost of the service (and, therefore, receive a subsidy), the government is limiting funds that may be available to provide other community-wide benefits. In effect, the government is using community funds to pay for private benefits. Unlike most revenue sources, cities have more control over the level of user fees they charge to recover costs, or the subsidies they can institute.

Fees in California are required to conform to the statutory requirements of the California Constitution, Proposition 218, Proposition 26, and the California Code of Regulations. The Code also requires that the City Council adopt fees by either ordinance or resolution, and that any fees in excess of the estimated total cost of rendering the related services must be approved by a popular vote of two-thirds of those electors voting because the charge would be considered a tax and not a fee. There are no fees suggested to be set above the cost of service and as such a public vote is not required.

California User Fee History
Before Proposition 13, in times of fiscal shortages, California cities were able to raise property taxes, which funded everything from police and recreation to development-related services. However, this situation changed with the passage of Proposition 13 in 1978.

Proposition 13 established the era of revenue limitation in California local government. In subsequent years, the state saw a series of additional limitations to local government revenues. Proposition 4 (1979) defined the difference between a tax and a fee: a fee can be no greater than the cost of providing the service; and Proposition 218 (1996) further limited the imposition of taxes for certain classes of fees. As a result, cities were required to secure a supermajority vote in order to enact or increase taxes. Due to the thresholds needed to increase local taxes, cities have less control and very few successful options for new revenues.

The State of California took a series of actions in the 1990’s and 2000’s to improve the State’s fiscal situation, at the expense of local governments. In 2004-05, the Educational Revenue Augmentation Funds (“ERAF”) take-away of property taxes and the reduction of Vehicle License Fees further reduced local tax revenues.

In addition, on November 2, 2010, California voters approved Proposition 26, the “Stop Hidden Taxes Initiative”, which is aimed at defining “regulatory fees” as a special tax rather than a fee, thus requiring approval by two-thirds vote of local voters. These regulatory fees are typically intended to mitigate the societal and environmental impacts of a business or person’s activities. Proposition 26 contains seven categories of exceptions. The fees analyzed as part of a user fee study typically fall under categories one through five consisting of charges for specific benefits, government service, regulatory need, for use of government property, or a fine/penalty.

Attachment A

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3 Comprehensive User Fee Study
Additional Policy Considerations
State regulations require that municipalities update their fee schedules to reflect the actual costs of certain public services primarily benefiting users. User fees recover costs associated with the provision of specific services benefiting the user, thereby typically reducing the use of General Fund monies for such purposes.

In addition to collecting the direct cost of labor and materials associated with processing and administering user services, it is common for local governments to recover reasonable support costs. Support costs are those costs relating to a local government’s central service departments that are allocable to the local government’s operating departments. Central services support cost allocations were incorporated using the resulting indirect overhead percentages determined through the City’s cost allocation plan. A cost allocation plan identifies the central service functions of the City such as Finance, City Manager, and Human Resources and allocates their cost to the departments and funds of the City that they support. This plan was used in the user fee study to account for the burden placed upon central services by the operating departments in order to allocate a proportionate share of central service cost through the study.

As labor effort and costs associated with the provision of services fluctuate over time, a significant element in the development of any fee schedule is that it has the flexibility to remain current. Therefore, it is recommended that the City include an inflationary factor in the resolution adopting the fee schedule to allow the City to annually increase or decrease the fees by changes in a pre-approved inflationary index, as described below. However, such inflationary increases shall not exceed the reasonable estimated cost of providing the services each year.

The City may employ many different inflationary factors. The most commonly used inflator is some form of the Consumer Price Index (CPI) as it is widely well known and accepted. A similar inflator is the implicit price deflator for GDP, which is much like the CPI except that while the CPI is based on the same “basket” of goods and services every year, the price deflators’ “basket” can change year to year. Since the primary factor for the cost of a City’s services is usually the costs of the personnel involved, tying an inflationary factor that connects more directly to the personnel costs can also be suitable if there is a clear method, or current practice of obtaining said factor.

Each City should use an inflator that they believe works the best for their specific situation and needs but cannot rely solely on the CPI increase as it is incumbent upon each agency to ensure the amount of the fees charged does not exceed the reasonable estimated costs of providing the services. It is also recommended that the City perform this internal review annually with a comprehensive review of services and fees performed every five years, which would include adding, amending, or removing fees for programs/services.

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4 Comprehensive User Fee Study
Study Objective
As the City of Covina seeks to efficiently manage limited resources and adequately respond to increased service demands, it needs a variety of tools. A user fee study provides assurance that the City has the best information and the best resources available to make sound decisions, fairly and legitimately set fees, maintain compliance with state law and local policies, and meet the needs of the City administration and its constituency. Given the limitations on raising revenue in local government, the City recognizes that a user fee Study is a very cost-effective way to understand the total cost of services and identify potential fee deficiencies. Essentially, a user fee is a payment for a requested service provided by a local government that primarily benefits an individual or group.

The total cost of each service included in this analysis is based on the full cost of providing City services, including direct salaries and benefits of City staff, direct departmental costs, and indirect costs from central service support. This study determines the full cost recovery fee for the City to provide each service; however, each fee is set at the City’s discretion, up to 100% of the total cost, as specified in this report.

The principal goal of the study was to help the City determine the full cost of the services that the City provides. In addition, Willdan established a series of additional objectives including:
 Developing a rational basis for setting fees
 Identifying subsidy amount, if applicable, of each fee in the model  Ensuring compliance with State law
 Developing an updatable and comprehensive list of fees  Maintaining accordance with City policies and goals
The study results will help the City better understand its true costs of providing services and may serve as a basis for making informed policy decisions regarding the most appropriate fees, if any, to collect from individuals and organizations that require individualized services from the City.

Scope of the Study
The scope of this study encompasses a review and calculation of the user fees charged by the following Covina departments and fee groups:
 City Clerk/Records Management
 Finance
 Film Permits
 Engineering
 Water
 Environmental
 Industrial Waste
 Parks & Recreation and Library Services
 Building
 Planning
 Housing & CDBG
 Police
The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs (fees) or program cost recovery levels.

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5 Comprehensive User Fee Study
Aim of the Report
The user fee study focused on the cost of City services, as City staff currently provide them at existing, known, or reasonably anticipated service and staff level needs. This report provides a summary of the study results, and a general description of the approach and methods Willdan and City staff used to determine the recommended fee schedule. The report is not intended to document all of the numerous discussions throughout the process, nor is it intended to provide an influential dissertation on the qualities of the utilized tools, techniques, or alternative approaches.

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6 Comprehensive User Fee Study
Project Approach and Methodology
Conceptual Approach
The basic concept of a user fee study is to determine the “reasonable cost” of each service provided by the City for which it charges a user fee. The full cost of providing a service may not necessarily become the City’s fee, but it serves as the objective basis as to the maximum amount that may be collected.

The standard fee limitation established in California law for such fees is the “estimated, reasonable cost” principle. In order to maintain compliance with the letter and spirit of this standard, every component of the fee study process included a related review. The use of budget figures, time estimates, and improvement valuation clearly indicates reliance upon estimates for some data.

Fully Burdened Hourly Rates
The total cost of each service included in this analysis is primarily based on the Fully Burdened Hourly Rates (FBHRs) that were determined for City personnel directly involved in providing services. The FBHRs include not only personnel salary and benefits (see Appendix B), but also any costs that are reasonably ascribable to personnel. The cost elements that are included in the calculation of fully burdened rates are:
 Salaries & benefits of personnel involved
 Operating costs applicable to fee operations
 Departmental support, supervision, and administration overhead  Central service overhead costs allocated through the cost allocation plan An important factor in determining the fully burdened rate is in the calculation of productive hours for personnel. This calculation takes the available workable hours in a year of 2,080 and adjusts this figure to 1,650 productive or billable hours to account for calculated or anticipated hours’ employees are involved in non-billable activities such as paid vacation, sick leave, holidays, and other considerations, as necessary.

Dividing the full cost, including overhead, of a position by the number of productive hours provides the FBHR.

The FBHRs are then used in conjunction with time estimates, when appropriate for how a service is provided, to calculate a fee’s cost based on the personnel and the amount of their time that is involved in providing each service.

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7 Comprehensive User Fee Study
Summary Steps of the Study
The process of the study is straightforward and simple in concept. The following list provides a summary of the study process steps:

Allowable Costs
This report identifies three types of costs that, when combined, constitute the fully burdened cost of a service (Appendix A). Costs are defined as
direct labor, including salary and benefits,
departmental overhead costs, and the City’s
central services overhead, where
departmental and central service overhead
costs constitute support costs. These cost
types are defined as follows:
 Direct Labor (Personnel Costs): The
costs related to staff salaries for
time spent directly on fee-related
services.
 Departmental Overhead: A
proportional allocation of
departmental overhead costs,
including operation costs such as
supplies and materials that are necessary for the department to function.  Central Services Overhead: These costs, as provided via the City’s cost allocation plan, represent services provided by those central services departments whose primary function is to support other City departments.

Data Analysis
Department Interviews
Time Estimates
Labor Costs
Cost Allocation Plan
Building Cost Layers
Direct Services
Indirect Services
Department Overhead
City-Wide Overhead
Set Fees
Define the Full Cost of
Services
Set Cost Recovery Policy
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8 Comprehensive User Fee Study
Methodology
The three methods of analysis for calculating fees used in this report are the:

Case Study Method (Standard Unit Cost Build-Up Approach): This approach estimates the actual labor and material costs associated with providing a unit of service to a single user. This analysis is suitable when City staff time requirements do not vary dramatically for a service, or for special projects where the time and cost requirements are easy to identify at the project’s outset. Further, the method is effective in instances when a staff member from one department assists on an application, service or permit for another department on an as-needed basis. Costs are estimated based upon interviews with City staff regarding the time typically spent on tasks, a review of available records, and a time and materials analysis.

Program Cost Approach: In some instances, the underlying data is not available or varies widely, leaving a standard unit cost build-up approach impractical. In addition, market factors and policy concerns (as opposed to actual costs) tend to influence rental based fee levels more than other types of services. Willdan employed a different methodology where appropriate to fit a programs’ needs and goals. Typical programmatic approach cases are facility use fees, penalties, and instances where a program cost is divided over the user base to obtain a per applicant cost for shared cost services.

Valuation Based Fees: This method of collection is used when the valuation of the improvement can be used as a proxy for the amount of effort it would take for City staff to complete the service provided. More specifically, this approach is commonly used for certain User Fees in the Building Division. It is generally accepted that as a project’s size scales up, the cost of the project increases, and the amount of effort needed to review and inspect also increases. Using valuation-based fees provide for a system that can adjust as project sizes scale. Land is not included in the valuation.

Quality Control/Quality Assurance
All study components are interrelated, thus flawed data at any step in the process will cause the ultimate results to be inconsistent and unsound. The elements of our Quality Control process for user fee calculations include:
 Involvement of knowledgeable City staff
 Clear instructions and guidance to City staff
 Reasonableness tests and validation
 Internal and external reviews
 Cross-checking
Reasons for cost increases/decreases over current fees
Within the fee tables in Appendix C, the differences are identified between the full costs calculated through the study and the fee levels currently in effect. The reasons for differences between the two can arise from a number of possible factors including:

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9 Comprehensive User Fee Study
 Previous fee levels may have been set at levels less than full cost intentionally, based on policy decisions
 Staffing levels and the positions that complete fee and service activity may vary from when the previous costs were calculated
 Personnel and materials costs could have increased at levels that differed from any inflationary factors used to increase fees since the last study
 Costs that this study has identified as part of the full cost of services may not have been accounted for in a previous study
o Departmental overhead and administration costs
o Indirect overhead from the cost allocation plan
 Changes in processes and procedures within a department, or the City as a whole  Changes in the demand for services in a City may have also changed the staffing or cost structure of departments over time
City Staff Contributions
As part of the study process, Willdan received tremendous support and cooperation from City staff, who contributed and reviewed a variety of components to the study, including:
 Budget and other cost data
 Staffing structures
 Fee and service structures, organization, and descriptions  Direct and indirect work hours (billable/non-billable)  Time estimates to complete work tasks
 Review of draft results and other documentation
A user fee study requires significant involvement of the managers and line staff from the departments on top of their existing workloads and competing priorities. The contributions from City staff were critical to this study. We would like to express our appreciation to the City and its staff for their assistance, professionalism, positive attitudes, helpful suggestions, responsiveness, and overall cooperation.

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10 Comprehensive User Fee Study
Covina User Fees
Cost Recovery
The cost recovery models, by department/division fee type, are presented in detail in Appendix C. Full cost recovery is determined by summing the estimated amount of time each position (in increments of minutes or hours) spends to render a service. Time estimates for each service rendered were obtained through interviews conducted with City staff for each department/division fee included in the study. The resulting cost recovery amount represents the total cost of providing each service. The City’s current fee being charged for each service, if applicable, is provided in this section, as well, for reference.

It is important to note that the time data used to determine the amount of time each employee spends assisting in the provision of the services listed on the fee schedule is essential in identifying the total cost of providing each service and will differ from City to City depending on staffing, positions involved, experience of staff, the use of consultants, and the policies and procedures in place for each City.

Specifically, in providing services, a number of employees are often involved in various aspects of the process, spending anywhere from a few minutes to several hours on the service.

The primary goal of this study was to identify the cost of City services, to provide information to help the City make informed decisions regarding the actual fee levels and charges. The responsibility of determining the final fee levels is a complicated task. City staff must consider many issues in formulating recommendations, and the City Council must consider those same issues and more in making the final decisions.

City staff assumes the responsibility to develop specific fee level recommendations to present to the City Council. Unfortunately, there are no hard and fast rules to guide the City, since many of the considerations are based on the unique characteristics of the City of Covina, and administrative and political discretion.

However, in setting the level of full cost recovery for each fee, one should consider whether the service solely benefits one end user or the general community.

Subsidization
Recalling the definition of a user fee helps guide decisions regarding subsidization. The general standard is that individuals (or groups) who receive a wholly private benefit should pay 100% of the full cost of the services. In contrast, services that are simply public benefit should be funded entirely by the general fund’s tax dollars. Unfortunately, for the decision makers, some services fall into the range between these two extremes.

Further complicating the decision, opponents of fees often assert that the activities subject to the fees provide economic, cultural, “quality of life,” or other community benefits that exceed the costs to the City, but it is important to distinguish the difference between any purported possible benefits that may be conveyed through the result of activities of the service receiver and the direct benefit being conveyed through the City providing the service to the requestor.

It is recommended the City consider such factors during its deliberations regarding appropriate fee levels.

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11 Comprehensive User Fee Study
Of course, subsidization can be an effective public policy tool since it can be used to reduce fees to encourage certain activities (such as to ensure public safety) or allow some people to be able to afford to receive services they otherwise could not at the full cost. In addition, subsidies can be an appropriate and justifiable action, such as to allow citizens to rightfully access services, without overburdensome costs.

Despite the intent, it is important for the City and public to understand that subsidies must be covered by another revenue source, typically the General Fund’s other unrestricted funds.

Impact on Demand (Elasticity)
Economic principles of elasticity suggest that increased costs for services (higher fees) will eventually curtail the demand for the services; whereas lower fees may spark an incentive to utilize the services and encourage certain actions. Either of these conditions may be a desirable effect to the City. However, the level of the fees that would cause demand changes is largely unknown. The cost of service study did not attempt to evaluate the economic or behavioral impacts of higher or lower fees; nevertheless, the City should consider the potential impacts of these issues when deciding on fee levels.

Summary
City staff is recommending setting user fees at suggested fee amounts as detailed in Appendix C. City and departmental goals, City Council priorities, policy initiatives, past performance, implementation issues, and other internal and external factors should influence staff recommendations and City Council decisions. In this case, the proper identification of additional services (new or existing services) and the update to a consistent and comprehensive fee schedule were the primary objectives of this study. City staff has reviewed the full costs and identified the recommended fee levels for consideration by City Council.

The following sections provide background for each department, division, and fee group and the results of this study’s analysis of their fees. For the full list of each fee’s analysis, refer to Appendix C of this report.

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12 Comprehensive User Fee Study
City Clerk/Records Management
The City Clerk’s Office/Records Management Department supports City Council by administrating meeting agenda workflow and packets, posting meeting agendas, recording Council votes and processing Council documents, and preparing meeting minutes; facilitates the Boards and Commissions Program; responds to Public Records Act requests; processes all City contracts and agreements; receives, logs, and routes claims, subpoenas, summons and other legal documents; and maintains and stores legally-mandated records.

Equally important, but not as routine, are administrative services related to municipal elections. The Department preserves the City’s history while promoting strong community accessibility through the use of records management software and the City’s website to keep citizens informed and engaged on issues that impact their lives. Organizational goals are achieved by staying well-informed of the current laws governing the Department’s areas of responsibility and legal requirements, providing municipal clerkspecific training for staff, creating a culture of high integrity, adhering to State-required ethics training, and administering Fair Political Practices Commission filings in accordance with the Political Reform Act.

Analysis
Willdan individually reviewed the services associated with the City Clerk’s Office/Records Management Department. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The services included in City Clerk’s Office/Records Management Department are a mixture of document copy fees, City Clerk certification, agenda annual subscription, sign retrieval, and political reform fees set by the State. The analysis relied primarily upon a standard unit cost build-up approach, whereby we determined the reasonable cost of each fee occurrence using staff time to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most City Clerk’s Office/Records Management Department fees are currently set below the full cost of providing the service. Staff have suggested reasonable fee adjustments as detailed in Appendix C. As a result, there would be:
 3 fees for Copies of Documents and Council Meeting DVD or Audio CD would decrease;  14 fees would remain as currently set, and;
 2 new fees for Documents on USB and a Sign Retrieval fee would be added.

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13 Comprehensive User Fee Study
Finance
General Administrative support services provided by the Finance Division include: finance administration, accounting, water utility finances, audit and financial reporting, budget, treasury and revenue management for the City, SACRA, and Housing Authority financial operations.

Analysis
Willdan individually reviewed the services associated with the Finance Division. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The services listed under the Finance Division consist of business license processing fees, a yard sale permit, credit card use, and a returned check fee set by the state. The analysis of the cost-based services relied upon a standard unit cost build-up approach, whereby we determined the reasonable cost of each fee occurrence using staff time to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that a few of Finance’s fees are currently set below the full cost of providing the service and staff have suggested reasonable fee adjustments as detailed in Appendix C. As a result, there would be:
 An increase for 2 fees, and;
 5 fees would remain as currently set.

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14 Comprehensive User Fee Study
Film Permits
City film permits are required for any commercial or student filming taking place within city limits. These permits help manage public space usage, ensure safety, and coordinate city services such as police or traffic control when needed. The associated fees allow the city to recover administrative and operational costs incurred during the permitting process.

Analysis
Willdan individually reviewed the services associated with Film Permits. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Film Permit services relied upon a standard unit cost build-up approach, whereby we determined the reasonable cost of each fee occurrence using staff time to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that Film Permit fees are currently set below the full cost of providing the service and staff have suggested reasonable fee adjustments as detailed in Appendix C. As a result, there would be:
 An increase for 3 fees;
 3 new fees would be added;
 3 fees would remain as currently set, and;
 The average fee change would be an increase of 58%.

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15 Comprehensive User Fee Study
Engineering
The Engineering Services Division provides design, post-design, contract administration, and compliance with the City’s Capital Improvement projects to include: sanitary sewers, storm drains, domestic water storage, transmission systems, public street improvements, park development, and city buildings. The Engineering Services Division manages the use of the public right-of-way and the operation of the City’s street lighting special district. Permits are issued and conditional requirements are imposed on individuals and parties wishing to utilize public right-of-ways for personal or construction purposes to ensure compliance with the City’s Municipal Code.

Analysis
Willdan individually reviewed the services associated with the Engineering Division. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Engineering services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most flat rate fees are currently set below the full cost of providing the service. Staff have suggested increasing fees to full cost recovery as detailed in Appendix C. As a result, there would be:
 An increase for 33 fees;
 12 new fees would be added;
 5 fees would decrease;
 7 fees would remain as currently set, and;
 The average fee change would be an increase of 57%.

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16 Comprehensive User Fee Study
Water
The Water Utility Division is committed to planning, protecting, operating, and maintaining the potable water system of the city in a manner that ensures the cost-effective delivery of adequate, high-quality water resources to its customers.

Analysis
Willdan individually reviewed the services associated with the Water Division. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Water services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most flat rate fees are currently set below the full cost of providing the service. Staff have suggested increasing fees to full cost recovery as detailed in Appendix C. As a result, there would be:
 An increase for 17 fees;
 2 new fees would be added;
 2 fees would change from flat fees to Deposit-based fees;  1 fee would remain as currently set, and;
 The average fee change would be an increase of 130%.

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17 Comprehensive User Fee Study
Environmental
The City sewer system includes 121 miles of public sanitary sewer and one sewer lift station. Personnel assigned to sewer maintenance clean and maintain the sewer system in compliance with the Sewer System Management Plan (SSMP), updated in 2019, in compliance with a formal order issued by the State Water Resources Control Board. The order requires every owner and operator of publicly owned sewer systems to develop and implement a system specific SSMP. This plan sets forth goals and actions to be followed and guidelines for various activities involved in managing, operating, maintaining, repairing, replacing, and expanding the sewer system. This includes cleaning all sewer lines annually, all hot spots monthly, and CCTV inspection of the entire sewer system every five years.

Analysis
Willdan individually reviewed the services associated with Environmental. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Environmental services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most flat rate fees are currently set below the full cost of providing the service. Staff have suggested increasing cost recovery of fees as detailed in Appendix C.

As a result, there would be:
 An increase for 9 fees;
 5 new fees would be added;
 1 fee would decrease;
 10 fees would remain as currently set, and;
 The average fee change would be an increase of 54%.

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18 Comprehensive User Fee Study
Industrial Waste
The City sewer system includes 121 miles of public sanitary sewer and one sewer lift station. Personnel assigned to sewer maintenance clean and maintain the sewer system in compliance with the Sewer System Management Plan (SSMP), updated in 2019, in compliance with a formal order issued by the State Water Resources Control Board. The order requires every owner and operator of publicly owned sewer systems to develop and implement a system specific SSMP. This plan sets forth goals and actions to be followed and guidelines for various activities involved in managing, operating, maintaining, repairing, replacing, and expanding the sewer system. This includes cleaning all sewer lines annually, all hot spots monthly, and CCTV inspection of the entire sewer system every five years.

Analysis
Willdan individually reviewed the services associated with Industrial Waste. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of the Industrial Waste services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most current flat fees are above the calculated cost of service as determined in this study. Staff have suggested reasonable fee adjustments as detailed in Appendix C. As a result, there would be:
 An increase for 2 fees;
 4 fees would decrease;
 1 fee for Wastewater Sampling and Analysis would change from a flat fee to actual costs, and;  The average fee change would be a decrease of 25%.

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19 Comprehensive User Fee Study
Parks & Recreation and Library Services
The Parks & Recreation and Library Services Department works to provide the community with quality programs, services, activities, and events to enhance their quality of life. Department programs include youth and adult sports, day camp, leisure classes, cultural excursions, aquatics, senior services, facility rentals, city-wide special events, and Library services.

Analysis
Willdan individually reviewed the services associated with the Parks & Recreation and Library Services Department. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of most Parks & Recreation and Library Services programs encompassed facility rentals and other recreation services. The fee for use of government owned facilities and property can be set discretionally by the City per Proposition 26 to reduce the cost to the public for related facilities costs, and because there is market availability for facility use elsewhere. The cost of acquisition, maintenance, repair, and upgrade to the City and subsequently the community is partially offset by rental or use fee revenue. As such these fees should be set using the knowledge of activity use for the facilities, policy desires of the City, and market factors when desirable. It is generally accepted that many Parks & Recreation programs provide a measure of public benefit to the residents and City as a whole. In addition, cities generally want to ensure that their programs and services remain affordable to the community at large, and that the programs remain competitive with surrounding jurisdictions and private businesses. Therefore, full cost recovery is typically not the primary goal of fee setting. An overall program cost analysis for Parks & Recreation and Library was also performed and determined that the department is currently operating at around 16% cost recovery. A time and cost analysis was performed on the fees in the schedule that could have direct staff involvement identified to determine the direct cost for each. Staff have suggested reasonable fee adjustments to the fee schedule, and they are detailed in Appendix C. As a result, there would be:
 An increase for 12 fees;
 4 fees would decrease;
 27 fees would have a change in methodology from 2-hour period fee to a per hour or per person per day fee;
 20 fees would remain as currently set, and;
 The average fee change would be an increase of 2%.

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20 Comprehensive User Fee Study
Building
The Building & Safety Division is responsible for managing construction permits and inspections for compliance with Federal, State, and local building regulations. The mission of the Building & Safety Division is to protect the people who live and work in the City by ensuring a safe built environment through the plan check and review process and inspection process. Building staff provides technical support to homeowners, contractors, and design professionals on the latest building code regulations. It is the overall goal of the Building & Safety Division to provide superior customer service.

Analysis
Willdan individually reviewed the services and programs associated with the Building & Safety Division. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Building & Safety services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most flat rate fees are currently set below the full cost of providing the service. Staff have suggested increasing cost recovery of fees as detailed in Appendix C.

As a result, there would be:
 An increase for 253 fees;
 2 new fees, a Scanning Fee and Plan Maintenance Fee, would be added;  6 fees would remain as currently set, and;
 The average fee change would be an increase of 15%.

In addition to the above referenced fees listed under Building, the Building Permit fees are also provided by this division. For the Building Permit fees, valuation is used as a proxy for measuring the amount of effort needed to provide services on a case-by-case basis. This method is an industry standard widely used by other jurisdictions to evaluate the cost of providing service. It is generally understood that the larger and more complex a project is, the more time and effort that is required to provide code compliance services.

Project valuation also follows that trend, and so by using a combination of either project valuation or historical revenue figures along with a multiplier or cost recovery analysis for historical and anticipated future trends, current cost recovery along with variability in charges due to project type and scale is determined. The result of the cost analysis completed for the Building Permit program found that the program is currently operating at 87% cost recovery based on average annual activity levels from fiscal year 2017 to 2023. Staff is recommending that the fees be increased to 100% cost recovery.

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21 Comprehensive User Fee Study
Planning
The Planning Division advises and reports to the City Council, City Manager, and Planning Commission on community development issues. The mission of the Planning Division is to guide the orderly growth and development in the community that improves the quality of life, provide timely and efficient services to the community, and achieve the highest design quality possible while also considering safety and conformance with the General Plan. A major function of the Planning Division is to process development applications and administrate and ensure compliance with the City’s Zoning Codes. The Planning Division is required by State Law to prepare, periodically review, and revise the City’s General Plan and implement the Plan through the administration of specific plans, zoning regulations, subdivision ordinances, and environmental reviews.

The Planning Division is also responsible for leading the Development Review Committee (DRC) process, which is a process to ensure that applications receive valuable feedback from the various city divisions with regards to proposed projects.

Analysis
Willdan individually reviewed the services associated with the Planning Division. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Planning services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most flat rate fees are currently set below the full cost of providing the service. It is recommended that the City set Planning fees at the levels detailed in Appendix C As a result, there would be:
 An increase for 58 fees;
 5 new fees would be added;
 7 fees would decrease;
 3 fees for Environmental Review and General Plan Amendment would change from a flat or deposit plus actual costs fee to Consultant Costs plus 15%;
 7 fees would remain as currently set, and;
 The average fee change would be an increase of 47%.

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22 Comprehensive User Fee Study
Housing & CDBG
The Covina Economic Development Loan/Grant program (Program) assists in the retention and attraction of qualifying Covina businesses in commercial locations. The purpose of the economic development assistance is to help eligible for-profit businesses meet a financing gap and to become independent, selfsustaining and successful. In return, the businesses will stimulate the economic vitality of the City through job creation and an increase in sales tax.

The Covina Housing Division provides assistance to residents for a variety of needs by providing resource information.

Analysis
Willdan individually reviewed the services associated with Housing & CDBG. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Housing & CDBG services relied primarily upon a standard unit cost build-up approach, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City central services. It is recommended that the City set Housing & CDBG fees at the levels detailed in Appendix C As a result, there would be:
 12 new fees would be added.

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23 Comprehensive User Fee Study
Police
The Covina Police Department employs 101 highly dedicated and trained personnel to provide full public safety services to its 53,000 citizens over a 7.0 square mile area. The mission of the men and women of the Department is “Protecting our community through responsible policing and the relentless pursuit of crime.” Through a Service Area Policing Model, the residents have direct access to the Police Department to address the quality of life issues that are vital to its successful community. The values of the Department are displayed on the uniforms of every Police Department employee; Honor-Integrity-Service. These core values combined with a well-rounded approach of education, prevention, intervention and enforcement form the foundation of a policing approach that makes Covina one of the safest cities in the San Gabriel Valley.

Analysis
Willdan individually reviewed the services associated with the Police Department. The review also consisted of an evaluation of existing services in an effort to update the fee schedule.

The analysis of Police services relied primarily upon a standard unit cost build-up approach for fees, excluding penalties, whereby the reasonable cost of each fee occurrence was determined using staff time involved with providing the service to recover the direct cost of staff and the pro-rata share of departmental costs, including indirect costs for City Central Services. Willdan then compared the calculated full cost against the current fee amount to determine, if charged, whether the current fee is recovering the costs associated with the requested service. The analysis found that most fees are currently set below the full cost of providing service. It is recommended that the City set Police fees at the levels detailed in Appendix C. As a result, there would be:
 An increase for 31 fees;
 8 new fees would be added;
 2 fees, the Location/Premise History Search fee and Lost Citation fee, would change from a per page to a per search or per citation fee;
 7 fees would decrease;
 22 fees would remain as currently set;
 The average Police services fee change would be an increase of 9%, and;  All parking fines and penalties would increase with an average fee change of 7%.

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24 Comprehensive User Fee Study
Appendix A – Total Allowable Cost to be Recovered
Below are the total allowable costs that may be recovered through user fees; however, only a portion of the total allowable cost is recovered as staff not only works on services related to user fees, but also works on an array of other City functions during the operational hours of the City. The direct overhead percentages below are derived by dividing other operational costs by salaries and benefits. The indirect allocation percentages are provided through the cost allocation plan. The amounts listed below will not reconcile to City budgets as costs that should not be included in overhead for personnel in the application of determining fully burdened hourly rates were excluded. Examples of these costs are capital, debt, monetary transfers, contract costs, and other costs that are charged directly to the service requestor.

City of Covina - User Fee
Overhead Rate Calculations
Department
Total Salaries
& Benefits
Department
Operations &
Administration
Direct
Overhead
%
Indirect Cost
Allocation
Indirect
Allocation
%
1010: City Clerk 4,341 200 5% - 0%
1010: City Treasurer 3,848 200 5% - 0%
1010: City Manager 232,824 32,150 14% 105,257 45%
1010: Finance 666,009 235,700 35% 158,753 24%
1010: Records Management 273,388 47,391 17% 69,473 25%
1010: Public Safety 19,547,329 3,347,897 17% 1,312,323 7% 1010: Public Works 1,211,881 813,800 67% 612,983 51%
1010: Community Development 1,541,274 359,810 23% 203,272 13% 1010: Culture and Recreation 2,445,323 1,043,309 43% 637,226 26% 6010: Water Utility Admin 2,952,607 1,041,441 35% 739,438 25% 6200: Environmental-Waste Mgmt 547,463 343,913 63% 203,827 37% 6300: Sewer Utility 935,003 314,490 34% 578,576 62%
7010: Central Equipment Operations 332,345 170,004 51% 179,296 54% 7020: Building Maintenance 310,499 76,024 24% 22,518 7% 7200: Information Technology 485,976 24,820 5% 29,912 6% Attachment A

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25 Comprehensive User Fee Study
Appendix B –Fully Burdened Hourly Rates
Below are fully burdened hourly rates (FBHR) of staff positions that provide for the services detailed in Appendix C. The FBHRs were used to determine the full cost of each service. They include the salary and benefit costs for each position as well as all applicable overhead amounts for each position.

City of Covina - User Fee
Fully Burdened Hourly Rate Calculation
Department Title
Fully Burdened
Hourly Rate
Blended Rates
Water Distribution Operator (Blended Rate) $129.14
Position Rates
1010: Community Development CD - Administrative Technician $92.00 1010: Community Development CD - Assistant Planner $122.86 1010: Community Development CD - Associate Planner $135.73 1010: Community Development CD - Community Development Director $279.69 1010: Community Development CD - Management Analyst $127.95 1010: Community Development CD - Management Analyst Trainee $101.15 1010: Community Development CD - Neighborhood Preservation Officer $107.96 1010: Community Development CD - Office Assistant II $78.40 1010: Community Development CD - Permit Technician $96.17 1010: Community Development CD - Planning Manager $190.84 1010: Community Development CD - Planning Technician $100.69 1010: Community Development CD - Senior Administrative Technician $101.65 1010: Community Development CD - Senior Management Analyst $148.71 1010: Records Management City Clerk - Chief Deputy City Clerk $194.79 1010: Records Management City Clerk - Deputy City Clerk $115.71 1010: City Manager CM - Deputy City Manager $331.07
6200: Environmental-Waste Mgmt Env. - Account Clerk II $147.53 6200: Environmental-Waste Mgmt Env. - Administrative Technician $147.24 6200: Environmental-Waste Mgmt Env. - Environmental Services Analyst $212.63 6200: Environmental-Waste Mgmt Env. - Environmental Services Manager $257.52 6200: Environmental-Waste Mgmt Env. - Office Assistant I $105.04 6200: Environmental-Waste Mgmt Env. - Sr. Management Analyst $238.00 7010: Central Equipment Operations Equip. - Equipment Foreman $206.13 7010: Central Equipment Operations Equip. - Equipment Maintenance Supervisor $208.33 7010: Central Equipment Operations Equip. - Senior Equipment Mechanic $192.32 1010: Finance Fin - Administrative Services Director $335.89 1010: Finance Fin - Deputy Admin Svcs Director - Finance $270.80 1010: Finance Fin - Finance Manager $243.67
1010: Finance Fin - Management Analyst/Sr. Management Analyst $178.59 1010: Finance Fin - Payroll Technician $125.03
1010: Finance Fin - Senior Accountant $155.43
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26 Comprehensive User Fee Study
City of Covina - User Fee
Fully Burdened Hourly Rate Calculation
Department Title
Fully Burdened
Hourly Rate
Position Rates
7200: Information Technology IT - GIS Analyst $111.43
7200: Information Technology IT - Information Technology Srvcs Mgr $175.82 2800: Literacy Grant Lib - Library Services Supervisor $76.35 1010: Personnel Personnel - Administrative Technician $126.43 1010: Personnel Personnel - Deputy Admin Svcs Director - HR $309.88 1010: Personnel Personnel - Human Resources Analyst (Underfilling Sr. HR Analyst) $175.83 1010: Personnel Personnel - Human Resources Manager $278.83 1010: Personnel Personnel - Management Analyst $175.83
1010: Personnel Personnel - Management Analyst Trainee $139.01 1010: Public Safety Pub. Safety - Administrative Technician $82.36 1010: Public Safety Pub. Safety - Chief of Police $291.76 1010: Public Safety Pub. Safety - Community Services Officer $78.05 1010: Public Safety Pub. Safety - Community Services Specialist $97.26 1010: Public Safety Pub. Safety - Court Officer $97.26
1010: Public Safety Pub. Safety - Executive Assistant to the Police Chief $101.76 1010: Public Safety Pub. Safety - General Maintenance Worker $70.06 1010: Public Safety Pub. Safety - Jailer $79.59
1010: Public Safety Pub. Safety - Management Analyst $114.55 1010: Public Safety Pub. Safety - Parking Officer $77.33 1010: Public Safety Pub. Safety - Police Captain $271.36 1010: Public Safety Pub. Safety - Police Lieutenant $236.28 1010: Public Safety Pub. Safety - Police Officer $138.91 1010: Public Safety Pub. Safety - Police Records Clerk $70.28 1010: Public Safety Pub. Safety - Police Records Supervisor $113.22 1010: Public Safety Pub. Safety - Police Recruit $126.00 1010: Public Safety Pub. Safety - Police Sergeant $183.97 1010: Public Safety Pub. Safety - Property/Evidence Clerk $86.07 1010: Public Safety Pub. Safety - Public Safety Communications Sup $113.22 1010: Public Safety Pub. Safety - Public Safety Dispatcher $92.54 1010: Public Safety Pub. Safety - Sr. Management Analyst $133.13 1010: Public Works PW - Administrative Technician $165.86 1010: Public Works PW - Building Maintenance Worker $174.00 1010: Public Works PW - Building Maintenance Worker I $158.93 1010: Public Works PW - Building Maintenance Worker II $174.82 1010: Public Works PW - Building Maintenance Worker III $192.31 1010: Public Works PW - City Engineer $396.62
1010: Public Works PW - Deputy PW Dir/City Engineer $447.35 1010: Public Works PW - Deputy PW Dir/Operations&Transit $424.98 1010: Public Works PW - General Maintenance Worker $141.08 1010: Public Works PW - Maintenance Worker I $156.10
1010: Public Works PW - Maintenance Worker II $171.71
1010: Public Works PW - Maintenance Worker III $197.46
1010: Public Works PW - Management Analyst $230.68
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27 Comprehensive User Fee Study
City of Covina - User Fee
Fully Burdened Hourly Rate Calculation
Department Title
Fully Burdened
Hourly Rate
Position Rates
1010: Public Works PW - Management Analyst Trainee $182.36 1010: Public Works PW - Office Assistant I $118.33
1010: Public Works PW - Office Assistant II $141.34
1010: Public Works PW - Park Foreman $245.53
1010: Public Works PW - Park Worker (includes irrigation specialist) $156.23 1010: Public Works PW - Parks & Building Superintendent $259.38 1010: Public Works PW - Parks Maintenance Supervisor $254.28 1010: Public Works PW - Public Works Director $504.24
1010: Public Works PW - Public Works Manager $337.32
1010: Public Works PW - Senior Administrative Technician $183.26 1010: Public Works PW - Street Maintenance Foreman $232.01 1010: Culture and Recreation Rec - Administrative Technician $118.51 1010: Culture and Recreation Rec - Building Maintenance Worker $124.32 1010: Culture and Recreation Rec - Library Assistant $110.48 1010: Culture and Recreation Rec - Library Services Manager $233.98 1010: Culture and Recreation Rec - Library Services Supervisor $181.69 1010: Culture and Recreation Rec - Management Analyst $164.82 1010: Culture and Recreation Rec - Office Assistant II $100.99 1010: Culture and Recreation Rec - Park Worker $111.63
1010: Culture and Recreation Rec - Park Worker - Irrigation Specialist $123.00 1010: Culture and Recreation Rec - Parks & Recreation Director $265.02 1010: Culture and Recreation Rec - Parks & Recreation Supervisor $181.69 1010: Culture and Recreation Rec - Recreation Coordinator $132.43 6300: Sewer Utility Sewer - Maintenance Worker I $134.16 6300: Sewer Utility Sewer - Maintenance Worker II $147.58 6300: Sewer Utility Sewer - Maintenance Worker III $169.71 6300: Sewer Utility Sewer - Sewer Maintenance Worker III $185.77 6300: Sewer Utility Sewer - Street & Sewer Superintendent $276.34 6300: Sewer Utility Sewer - Street Maintenance Foreman $199.41 6300: Sewer Utility Sewer - Street Maintenance Supervisor $203.86 6010: Water Utility Admin Water - Account Clerk I $99.38 6010: Water Utility Admin Water - Water Distribution Operator I $113.31 6010: Water Utility Admin Water - Water Distribution Operator II $128.84 6010: Water Utility Admin Water - Water Distribution Operator III $145.26 6010: Water Utility Admin Water - Water Distribution Supervisor $184.30 6010: Water Utility Admin Water - Water Quality/Customer Service Rep II $131.83 6010: Water Utility Admin Water - Water Systems Operator I $136.43 6010: Water Utility Admin Water - Water Systems Operator II $150.07 6010: Water Utility Admin Water - Water Systems Supervisor $166.50 6010: Water Utility Admin Water - Water Utilities Superintendent $218.82 Attachment A

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28 Comprehensive User Fee Study
Appendix C – Cost Recovery Analysis
The following tables provide the results of the analysis, resulting full cost recovery amount, and recommended fees. For fees, services, and penalties in which the full cost, existing fee, and suggested fee is listed as “NA”, the amount or percentage was not calculable. This is most common when either the current or the suggested fee includes a variable component that is not comparable on a one-to-one basis, a full cost was not calculated (for penalties, fines, market-based fees, or items not included in the study), or when there is not a current fee amount to compare against.

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CITY CLERK/RECORDS MANAGEMENT FEES
# Title
Current
Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 1 Annual Subscription of Agenda Packet $93.00 $115.71 20% $93.00 $0 2 Candidate Nomination Filing $25.00 Per Election Code Section 10228 NA NA $25.00 $03 Documents - USB New $34.38 83% $6.00 NA 4 Certification by City Clerk $15.00 $48.70 69% $15.00 $0 5 Copies of Documents (Letter or Legal - Black & White Copies) $0.25 $16.23 99% $0.10 -$0.156 Copies of Documents (Letter or Legal - Color Copies) $0.40 $16.23 98% $0.25 -$0.157 Copies of Documents (Oversized Pages) (11x17" or Greater) $2.00 $16.23 88% $2.00 $08 Council Meeting DVD or Audio CD $15.00 $29.13 83% $5.00 -$10 9 Fax Transmissions or Email Documents No Charge NA NA No Charge $0 10 Mailing Documents Actual Cost NA NA Actual Cost $0
11 Notary Service N/A Per GC Section 8211 NA NA N/A $012 Political Reform Act Late Filing $10.00 Per Day Set By Government Code 91013; $100 Maximum NA NA $10.00 $0 13 Reproduction of Campaign Statements (FPPC) $0.10 Set by Government Code 81008 NA NA $0.10 $014 Reproduction of Campaign Statements Which Are Five or More Years Old (FPPC) $0.10 Set by Government Code 81008 NA NA $0.10 $0 15 Reproduction of Conflict of Interest Statements (FPPC) $0.10 Set by Government Code 81008 NA NA $0.10 $016 Subpoena For Personal Appearance $275.00 Set by Government Code 68096.1.B NA NA $275.00 $017 Subpoena of Records $15.00 Charged Under The Accounting Code for Copies. Evidence Code 1563.6 NA NA $15.00 $0 18 Sign Retrieval Fee New
per
Retrieval
Trip
$53.98 81% $10.00 NA
19 Initiative Petition Fee $200.00 Set by Elections Code 9202.B NA NA $200.00 $0 Attachment
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FINANCE FEES
# Title Current Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 1 Business License - Change $5.00 Contracted Amount plus staff time $18.06 0% $18.00 $13 2 Business License - Close Out Sale Adjustment $10.00 Contracted Amount $23.06 0% $23.00 $133 Business License Processing Fee (New Application) $30.00 Contracted Amount plus staff time $30.45 1% $30.00 $04 Business License Processing Fee (Renewal) $30.00 Contracted Amount plus staff time $30.41 1% $30.00 $05 Credit Card Use Fee Actual Cost Per CA Government Code 6159 NA NA Actual Cost $06 Returned Check Fee $25.00 For First Check; $35.00 for Each Additional Check per CA Civil Code 1719 NA NA $25.00 $07 Yard Sale Permit $10.00 $12.42 20% $10.00 $0 Attachment
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FILM FEES
# Title Current Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 1 Permit Fee $300.00 Film Permit $690.51 0% $690.00 $390 2 Student Permit Fee New Student Film Permit $690.51 57% $300.00 NA 3 State Mandated SB 1186 $4.00 State Mandated NA NA $4.00 $04 Police Cost (Officer) $85.00 Per Hour/Officer Police Officer Presence Required $138.91 1% $138.00 $53 5 Police Cost (Sergeant) New Per Hour/Sergeant Police Sergeant Presence Required $183.97 1% $183.00 NA 6 Daily Parking Permit (Rooftop Only) $500.00 Per Day Roof Top Reservation $576.92 0% $575.00 $757 Public Works Encroachment Permit See Engineering Fees NA NA See Engineering Fees NA 8 Fire Department Cost Estimate See LA County Fire Fee Schedule NA NA See LA County Fire Fee Schedule NA 9 Additional Fee per Day New Per Day Each Day After 1st Film Day $662.15 22% $517.00 NA Attachment
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ENGINEERING FEES
# Title Current Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 1 Miscellaneous Plan Check $200.00 per review $431.72 0% $431.00 $231 2 Miscellaneous Inspection $110.00 per hour, per inspection $430.44 0% $430.00 $3203 Administrative Conditional Use Permit - Major Activity Event Review $600.00 $1,015.29 0% $1,015.00 $4154 Administrative Conditional Use Permit - Minor Activity Event Review $200.00 $726.63 0% $726.00 $5265 Curb & Gutter (Repair or Replacement) - 250LF & Under $305.00 Under 250LF $990.21 0% $990.00 $6856 Curb and Gutter Plan Review (Plan Check & Inspection) 6% of Construction Cost 3% for Plan Review and 3% for Inspection NA NA 6% of Construction Cost $0 7 Curb Drain (4" Core Drill) - 200LF & Under $230.00 $990.21 0% $990.00 $7608 Residential Driveway, New or Modification $319.00 Per Approach $1,081.84 0% $1,081.00 $762 9 Encroachment Permit - Lane Closure Only (Traffic Control Per Week or Less and Per Location) $265.00 $990.21 0% $990.00 $725 10 Encroachment Permit - Roll-Off Bins, Per Week or Any Portion Thereof $163.00 $183.26 0% $183.00 $20 11 Final Tract Map - Plan Check - Residential (3 Plan Checks) $2,500.00 + $60/Lot Including Record Map Analysis, Monument Review, Condition Verification, Map Clearance $6,141.59 2% $6,000.00 $3,500
12 Lot Line Adjustment - Residential or Commercial $1,665.00 $1,720.62 0% $1,720.00 $5513 Excavation - Up to 500 SF $1,550.00 $791.90 0% $791.00 -$759 14 Precise Grading Plan - 500 SF or Greater
14 Plan Check $200.00 per hour $823.23 3% $800.00 $600
14 Inspection $110.00 per hour $338.81 3% $330.00 $22015 Rough Grading Plan - 500 SF or Greater 14 Plan Check $200.00 per hour $823.23 3% $800.00 $600
14 Inspection $110.00 per hour $338.81 3% $330.00 $22016 Sewer Plan Review (Plan Check & Inspection) 6% of Construction Cost 3% for Plan Review and 3% for Inspection NA NA 6% of Construction Cost $0 17 Storm Drain Plan Review (Plan Check & Inspection) 6% of Construction Cost 3% for Plan Review and 3% for Inspection NA NA 6% of Construction Cost $018 Street Plan Review (Plan Check & Inspection) 6% of Construction Cost 3% for Plan Review and 3% for Inspection NA NA 6% of Construction Cost $019 Street Vacation (Plus Consultant Costs) $1,189.00 $1,322.83 0% $1,322.00 $13320 Tree Installation - Furnish and Plant 15-Gallon Tree with Root Barrier (Contracted Service) $254.00 WCA Contract Price $275.00 0% $275.00 $21 21 Tree Installation - Furnish and Plant 24" Box Tree with Root Barrier (Contracted Service) $394.00 WCA Contract Price $495.00 0% $495.00 $101 22 Tree Installation - Furnish and Plant 36" Box Tree with Root Barrier (Contracted Service) $994.00 WCA Contract Price $1,200.00 0% $1,200.00 $206 23 Water Plan Review (Plan Check & Inspection) 6% of Construction Cost 3% for Plan Review and 3% for Inspection NA NA 6% of Construction Cost $0 24 Wide Load Permits (Per Trip, Per California DOT) $16.00 NA NA $16.00 $025 Trench Cut Fee New New fee, per consultant study. Consultant to provide calculation. NA NA Based on PCI calculation NA 26 Commercial Driveway Approach Modification $319.00 Per Approach $818.25 0% $818.00 $499.00 27 Curb & Gutter (Repair or Replacement) - 250LF-500LF $305.00 250LF-500LF $1,006.48 0% $1,006.00 $701.00 28 Curb & Gutter (Repair or Replacement) - Per Additional $50LF - 1 Hour/Additional 50 linear ft of insp time. $305.00 Per Additional $50 LF $1,292.58 0% $1,292.00 $987.00 29 Residential Driveway Approach Modification $319.00 Per Approach $720.38 0% $720.00 $401.00 30 Sidewalk - Under 500SF New Under 500SF $720.38 0% $720.00 NA 31 Sidewalk - 500SF-1000SF New 500SF-1000SF $1,006.48 0% $1,006.00 NA32 Sidewalk - Over 1000SF New Over 1000SF $1,292.58 0% $1,292.00 NA Attachment
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ENGINEERING FEES
# Title Current Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 33 Curb Drain (4" Curb Drill) - 250LF - 500LF $230.00 250LF - 500LF $1,006.48 0% $1,006.00 $776.00 34 Curb Drain Box Culvert $230.00 $720.38 0% $720.00 $490.0035 AC Paving (Under 500 SF) New Under 500SF $720.38 0% $720.00 NA36 AC Paving (500SF - 1000SF) New 500SF-1000SF $1,006.48 0% $1,006.00 NA 37 AC Paving (Over 1000 SF) New Over 1000SF $1,292.58 0% $1,292.00 NA38 PCC Paving (Under 500 SF) New Under 500SF $720.38 0% $720.00 NA 39 PCC Paving (500SF - 1000SF) New 500SF-1000SF $1,006.48 0% $1,006.00 NA40 PCC Paving (Over 1000 SF) New Over 1000SF $1,292.58 0% $1,292.00 NA 41 Excavation (500SF-1000SF) $1,550.00 500SF-1000SF $1,006.48 0% $1,006.00 -$544.00 42 Excavation (Over 1000SF) $1,550.00 Over 1000SF $1,292.58 0% $1,292.00 -$258.0043 Lane Closure - Residential Street $265.00 Per Week or Less, Per Location
$720.38 0% $720.00 $455.00
44 Lane Closure - Collector Street $265.00
Per Week or Less, Per Location
$720.38 0% $720.00 $455.00
45 Lane Closure - Arterial Street $265.00
Per Week or Less, Per Location
$720.38 0% $720.00 $455.00
46 Street Closure - Residential Street $265.00 Per Day $720.38 0% $720.00 $455.0047 Street Closure - Collector Street $265.00 Per Day $720.38 0% $720.00 $455.0048 Street Closure - Arterial Street $265.00 Per Day $720.38 0% $720.00 $455.0049 After Hours Insepction New Per Hour $306.21 0% $306.00 NA 50 Encroachment (Access to ROW, non-construction) $320.00 $621.22 0% $621.00 $301.0051 Consultant Costs Actual Cost NA NA Actual Cost $0.00 52 Final Tract Map Plan Check - Commercial, Fourth & Each Subsequent Check Submittal New per review Fourth & Each Subsequent Check Submittal $431.72 0% $431.00 NA 53 Tentative Tract Map - Residential/Commercial (3 Plan Checks) $1,250.00 + $100 Per each land, and/or air lot/unit
$1,288.90 1% $1,280.00 $30.00
54 Final Parcel Map Plan Check - Residential/Commercial $2,500.00 + $100 Per each land, and/or air lot/unit
$1,819.78 0% $1,819.00 -$681.00
55 Tentative Parcel Map Plan Check - Residential/ Commercial $2,500.00 + $100 Per each land, and/or air lot/unit
$1,819.78 0% $1,819.00 -$681.00
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WATER FEES
# Title Current Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Fee Δ 1 Additional Fee If Customer Has Self-Restored $162.00 $215.09 0% $215.00 $53 2 Broken Lock/Damage (Plus Cost of Lock) $69.00 Actual Costs to be compiled depending on equipment/repairs that are needed. $215.09 0% $215 + Actual Repair Costs $146 3 Delinquent Account Field/Office Notification Fee $31.00 $75.86 1% $75.00 $44 4 Deliquent Reconnect Fee - After Hours $120.00 Minimum 3 Hours Call Back Time per MOU $412.25 9% $375.00 $2555 Deliquent Reconnect Fee - Same Day New $156.68 4% $150.00 NA 6 Deliquent Reconnect Fee - Next Business Day $81.00 $156.68 17% $130.00 $497 Late Payment Charge 10% of Delinquent Balance NA NA 10% of Delinquent Balance $0 8 Each Additional Set and Removal $41.00 $146.74 1% $146.00 $105 9 Fire Flow Availability $240.00 $476.05 0% $476.00 $236 10 Initial Fire Hydrant Meter/Construction Meter Fee $80.00 $229.99 0% $229.00 $149 11 Initial Service Turn On - After Hours $120.00 Minimum 3 Hours Call Back Time per MOU $437.10 60% $175.00 $55 12 Meter Re-Read $37.00 $90.76 1% $90.00 $53
13 Meter Set (Plus Actual Cost) $103.00 Actual Costs to be compiled depending on equipment/repairs that are needed. $229.99 0% $229.00 $12614 Multi-Unit Delinquent Account Field Notification (Per Unit) $4.00 per unit In Addition to #3 above $9.94 9% $9.00 $5 15 Pressure Test $76.00 $131.83 1% $131.00 $55
16 Service Line Install - 1" or 2" (Plus Actual Cost) $399.00 NA NA $4,000 Deposit for 1", $6,000 Deposit for 2" - Will Only Charge Actual Costs (Labor & Material) Variable
17 Meter Connection (Downgrade/Upgrade Meters) - 5/8" to 1", 1" to 3/4", 1- 1/2" to 1", 2" to 1". $150.00 + $76/Hr Actual Costs to be compiled depending on equipment/repairs that are needed. NA NA $1,000 Deposit - Will Only Charge Actual Costs (Labor & Material) Variable18 Trip Charge for Additional Field Visit $95.00 $141.77 1% $141.00 $46 19 Trip Charge for Additional Field Visit - After Hours New $397.34 0% $397.00 NA20 Turn On & Off Water Service Customer Repair $88.00 $141.77 1% $141.00 $5321 Turn On & Off Water Service Customer Repair After Hours $120.00 Minimum 3 Hours Call Back Time per MOU $397.34 0% $397.00 $27722 Water Meter Test $112.00 $517.77 0% $517.00 $405 Attachment
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ENVIRONMENTAL FEES
# Title
Current
Fee/Charge Unit Notes Full Cost Subsidy % Suggested Fee Unit Notes Fee Δ 1 C&D Admin Review Large Tenant Improvements, Multifamily, Commercial/Industrial and Other Projects (Non-Refundable) TBD New Ordinance required to set fees. $168.66 5% $160.00 flat fee per project Fee established by Ordinance CC18-03 and original fee set by Resolution CC18-14 NA 2 C&D Admin Review Mid-Sized Tenant Improvements, Single Family Residential New Construction (Non-Refundable) TBD New Ordinance required to set fees. $134.93 7% $125.00 flat fee per project Fee established by Ordinance CC18-03 and original fee set by Resolution CC18-14 NA3 C&D Admin Review Small Tenant Improvements and Residential Additions (Non-Refundable) TBD New Ordinance required to set fees. $101.19 11% $90.00 flat fee per project Fee established by Ordinance CC18-03 and original fee set by Resolution CC18-14 NA 4 C&D Diversion Plan Additional Review or Verification (Per Hour) TBD New Ordinance required to set fees. $337.32 3% $327.00 per hour Fee established by Ordinance CC18-03 and original fee set by Resolution CC18-14 NA5 C&D Performance Security Deposit (Refundable, $30,000 Maximum) TBD New Ordinance required to set fees. NA NA 3% of project value up to the first $100,000. 2% of the next $400,000. 1% of the next $500,000. 0.25% for any amount over $1,000,000. flat fee determined by project valuation
Fee established by Ordinance CC18-03 and fee
set by Resolution CC18-14 NA
6 Hazardous Material/Illicit Discharge/Sewer Overflow Response During Non-Business Hours & Holidays (Staff time + Materials) Acutal Costs Based on OT Rate Actual costs based on staff costs to respond and remediate discharge, materials used, disposal costs, contractor cost (if engaged by City) and Admin Cost (25%) NA NA
Actual Costs Based on OT Rate + Materials
per incident
Actual costs based on: staff time to respond and remediate discharge, materials used, disposal costs, and contractor cost (if engaged by City) $0
7 Hazardous Material/Illicit Discharge/Sewer Overflow Response During Regular Business Hours (Staff time + Materials) Actual Costs Based on FBR Actual costs based on staff costs to respond and remediate discharge, materials used, disposal costs, contractor cost (if engaged by City) and Admin Cost (25%) NA NA
Actual Costs Based on FBR + Materials
per incident
Actual costs based on: staff time to respond and remediate discharge, materials used, disposal costs, and contractor cost (if engaged by City) $0
8 If Resident Found To Have Discharged Pool Without Pool Discharge Permit (Per Incident) $57.00 per inspection Staff time to do Chlorine test = 1/2 hr MAT = $57.47 $168.66 5% $160.00 per incident City staff time to do inspection and/or notification. Staff = PWM, 0.5 hrs @ $327/hr = $163.75. $103 9 Illegal Rolloff Impound Fee (Penalty) $500.00 NA NA $500.00 per incident Impound Fee $0 10 LID Plan Review $2,000.00
LID Review (10 hrs from first review to approval, with engineer versed in LID, however revisions and additional meetings are typicially required (+2 hrs)) JLHA $135 x 10 hrs + Admin Cost (25%) = $1,687.50 or JLHA $135 x 12 hrs + Admin Cost (25%) = $2025; JLHA is recommending $2,000 deposit + actual costs at $169/hr if project requires more than 12 hours of review.

NA NA $2,750.00 per project
LID Plan review takes JLHA an average of 18 hrs from first review to approval. Include 1 hr for city staff time. Staff = JLHA, 18 hrs @ $135/hr = $2,430Staff = City, PWM 1 hr @ $327/hr = $327 $750
11 Maintenance Covenant Processing $203.55
Applicant provides Covenant; staff reviews, CM signs, returns 4 copies (CC, JLHA, ES). Not incorporated into LID Review. $198.66 0% $198.00 per project
City staff time for processing + cost of recording.Staff = PWM, 0.5 hrs @ $327/hr = $163.75LA County Recorder = $30 -$6
12 Mobile Washing Equipment/Inspection (Per Inspection) (At Business License Review) $89.00 per inspection Staff = 1/2 MAT($57.47) + 1/4 SAT ($31.28) = $88.75 $101.19 0% $101.00 per inspection City staff time to perform an inspection of the mobile equipment. Staff = PWM, 0.3 hrs @ $327/hr = $98. $12 13 No Fee - Resident Attends Workshop and Receives a free+ Compost Bin $0.00 $72 subsidized by AB 939 fee (source reduction) $72.00 100% $0.00 per bin Cost of compost bin ($72) is subsidized by IWM fee to encourage source reduction $0 14 Non-Resident Wants to Purchase Compost Bin and Other Item Sale $72.00 Straight Cost incl. tax $72.00 0% $72.00 per item Straight Cost, including tax $0 15 NPDES - Environmental Compliance Fee (Per Year, Charged to All Non Home-Based Businesses with New Business License Application and with Annual Renewal) $15.00
Staff has not tacked costs; Recommend leave at $15 and track over next year to get better handle on actual costs incurred to justify raising fee.

NA NA $15.00 per year $0
16 NPDES Construction Site Inspection - Violation Follow-Up (Per Incident) (Consultant Costs for Inspection + City Staff Time to Issue NOV) $334.00 per inspection Actual Costs - JLHA ($128/hr) + 1/4 EST ($50.06) + 1/2 MAT ($57.47) + 1/4 SAT ($31.28) x Admin Cost (25%) = $333.51 $371.94 0% $371.00 per inspection Inspection takes JLHA 1 hr. Include 0.5 hr for City staff time. $3717 NPDES Construction Site Inspection (Per Inspection) (Min of 1 Per Quarter During Active Construction for Length of Project) $160.00 per inspection Actual Costs - JLHA ($128/hr) x Admin Cost (25%) = $160.00 Ask contractor for estimated construction time and multiply by number of months anticipated. $203.28 2% $200.00 per inspection Inspection takes JLHA 1 hr. $40 18 NPDES Permit "No Exposure" or "Non-Applicability" or Other Certification Verification/Correction (Per Business) (Actual Staff Time) $139.00 per hour Staff = 1/2 MAT($57.47) + 1/4 SAT ($31.28) + 1/4 EST (50.06) = $277.62 (Round up) = $138.82 $270.30 0% $270.00 per business Consultant and City Staff time to bring business into compliance with NPDES permit.Include 0.5 hrs for JLHA and 0.5 hrs for City staff. $131
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Covina City CouncilMay 6, 2025

Covina City Council
May 6, 2025