CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING
AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA
Tuesday, May 6, 2025, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
IMPORTANT NOTICE
Members of the public may begin entering the City Council Chamber 15 minutes prior to the scheduled start time of the meeting as listed above. During this time, and the duration of the meeting, members of the public will have access to the City Council Chamber and first floor restrooms only.
Members of the public may view the meeting live on the City’s website at www.covinaca.gov or on local cable television, Spectrum Channel 29 and Frontier Channel 42. To view from the website, click here or scroll down on the home page and click "City Meetings", once on the page, click the highlighted word next to Video Library under the City Council Meeting Agendas and Minutes header. A live banner will appear at the start of the meeting.
Public Comments: Time is reserved during the Public Comments portion of the meeting for those in the audience who wish to address the City Council on items listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) and items not listed in the agenda within the subject matter jurisdiction of the City Council, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.
All communications are to be addressed directly to the City Council and not to the members of the audience.
Each speaker is limited to a total of five (5) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on anticipated length of the meeting. A speaker's time may not be transferred to another speaker. State Law prohibits the Council/Agency/Authority from taking action on any item not on the agenda.
Meeting Assistance Information: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or 626-384-5430. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Pages
JOINT MEETING—CLOSED SESSION 6:30 PM
CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, Patricia Cortez, John C. King, Mayor Pro Tem/Vice Chair Hector Delgado, and Mayor/Chair Victor Linares
PUBLIC COMMENTS - CLOSED SESSION
The public is invited to comment on Closed Session items only at this time.
CLOSED SESSION
The City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to closed session for the following:
A. Government Code § 54957 - PUBLIC EMPLOYEE PERFORMANCE
EVALUATION
Title: City Manager & City Attorney
RECESS
JOINT MEETING—OPEN SESSION 7:30 PM
RECONVENE AND CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, Patricia Cortez, John C. King, Mayor Pro Tem/Vice Chair Hector Delgado, and Mayor/Chair Victor Linares
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.
INVOCATION
Given by Covina Police Chaplain Steve Martinez.
APPROVAL OF AGENDA
PRESENTATIONS
A. Municipal Clerk's Week
B. National Public Works Week
C. National Police Week
D. Small Business Week
CLOSED SESSION REPORT
PUBLIC COMMENTS
This is the time and place for the general public to address the City Council/Agency/Authority on any item listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) or not listed on the agenda, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.
Each speaker is limited to a total of five (5) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on the anticipated length of the meeting.
COUNCIL/AGENCY/AUTHORITY COMMENTS
Council/Agency/Authority Members wishing to make any announcements of public interest or to request that specific items be added to future Council/Agency/Authority agendas may do so at this time.
CITY MANAGER COMMENTS
CONSENT CALENDAR
All matters listed under Consent Calendar are considered routine, and will be enacted by one motion. There will be no separate discussion on these items prior to the time the Council/Agency/Authority votes on them, unless a member of the Council/Agency/Authority requests a specific item be removed from the Consent Calendar for discussion.
CC 1. Minutes 7
Staff Recommendation:
Approve the Minutes of the April 15, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.
CC 2. Payment of Demands 15
Staff Recommendation:
Approve Payment of Demands in the amount of $5,356,607.81.
CC 3. Bus Shelter Installation Project – Award of Contract to FS Contractors, Inc. for an Amount not to Exceed $154,500
23 Staff Recommendation:
Award a contract for the Bus Shelter Installation Project to FS Contractors, Inc. as the lowest responsive and responsible bidder in an amount not-to-exceed $154,500 and authorize the City Manager to execute the contract;
1. Authorize the City Manager to execute Amendment No 1. to the Memorandum of Agreement between the City of Covina and San Gabriel Valley Council of Governments (SGVCOG) for the East San Gabriel Valley Sustainable Multimodal Improvements Project to include the FY25 Bus Shelter Installation Project and establish funding in the amount of $150,000 for project expenses from the Los Angeles County Metropolitan Authority; and
2. Adopt Resolution CC 2025-34 to reflect a decrease of $95,500 in the Proposition A Budget and an appropriation of $150,000 to the Transportation CIP Budget and the reimbursement of $150,000 to the City by the SGVCOG upon completion of the project.
3. CC 4. Adopting the Barranca Ave. & Covina Blvd. Resurfacing Project from Workman Ave. to Cypress St. along Barranca Ave. and from Fairvale Ave. to Barranca Ave. along Covina Blvd. as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects
63 Staff Recommendation:
Adopt Resolution CC 2025-32 adopting the Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina
Boulevard as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects and reserving all FY 2025-2026 RMRA funds for project construction costs.
CC 5. Request to Cancel the Regular City Council Meeting of May 20, 2025 71 Staff Recommendation:
That the City Council consider cancelling the regular scheduled City Council Meeting of May 20, 2025.
CC 6. Investment Policies for Fiscal Year 2025-2026 for the City of Covina and Successor Agency to the Covina Redevelopment Agency
73 Staff Recommendation:
Adopt Resolution CC 2025-31 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2025-2026 and adopt Successor Agency Resolution SA 2025-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2025-2026.
CC 7. Second Amendment to Professional Services Agreement with Norman A.
Traub Associates, LLC for Workplace Investigation Services 107
Staff Recommendation:
Authorize the City Manager to execute the Second Amendment to Professional Services Agreement with Norman A. Traub & Associates, LLP to provide Professional Services for workplace investigations.
CC 8. Agreement between All City Management Services Inc., and the City of Covina for Crossing Guard Service
111
Staff Recommendation:
Approve the agreement between All City Management Services, Inc. and the City of Covina for school crossing guard services for fiscal year 2025-26; and authorize the City Manager or his designee to execute the agreement; and
1. Approve the crossing guard cost sharing agreements between the City of Covina and Covina Valley Unified School District and Charter Oak Unified School District and authorize the City Manager or his designee to execute agreements.
2. CC 9. Resolution CC 2025-35, Amending the Fiscal Year 2024-2025 Operating Budget and Approving an Appropriation of $50,000 as per a Development Agreement with PKL Investments, LLC
129
Staff Recommendation:
Adopt Resolution CC 2025-35.
CC 10. Core Switch Replacements and Services – Police Department and City Hall
133
Staff Recommendation:
Authorize the City Manager to Execute an Agreement with Intelli-Tech and Acorn Solutions Group to Purchase Fortinet Switches and Services to Install and Maintain.
CC 11. Annual Maintenance Agreement for the City’s 9-1-1 Dispatch Center 139 Staff Recommendation:
Approve the purchase of the Annual Maintenance contract from AT&T in the
amount of $63,647.48 and adopt Resolution CC 2025-33 increasing the FY 2024-25 police department budget by the same amount.
CC 12. Sewer Main Replacement Project – Project No. S2502 – Final Acceptance and Filing Notice of Completion
145
Staff Recommendation:
1. Accept the work performed by GRBCON, Inc.; and
Authorize the City Clerk to file a Notice of Completion for the Sewer Main Replacement Project – Project No. S2502.
2. CC 13. Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502 – Final Acceptance and Filing Notice of Completion 149
Staff Recommendation:
Accept the work performed by California Professional Engineering, Inc.; and
1. Authorize the City Clerk to file a Notice of Completion for the Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502.
2. CC 14. Water Master Plan Update and Water Rate Study – Proposed Professional Services Agreements with Civiltec Engineering, Inc. and Raftelis Financial Consultants, Inc.
153
Staff Recommendation:
Authorize the City Manager to execute a Professional Services Agreement with Civiltec Engineering, Inc. for the preparation of a Water Master Plan Update for an amount not-to-exceed $166,800;
1. Authorize the City Manager to execute a Professional Services Agreement with Raftelis Financial Consultants, Inc. for the preparation of a Water Rate Study for an amount not-to-exceed $98,187; and
2. Adopt Resolution CC 2025-36 to amend the Fiscal Year 2024-2025 Capital Improvement Program Budget to increase funding by $134,901.44 for the Water Master Plan and Water Rate Study and appropriate the necessary funds from the available Water Utility Fund balance.
3. CC 15. 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)
201
Staff 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.
CC 16. 2024 Annual Housing Element Progress Report 221
Staff Recommendation:
Receive and file.
CC 17. Agreement between the City of Covina and Dunwright Painting and Coatings for Interior Painting as Tenant Improvements at 401 N. Citrus Avenue 241
Staff 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.
PUBLIC HEARINGS
PH 1. Adoption of the Fiscal Year 2025-26 Budget, Fiscal Year 2026- 2030 Capital Improvement Program (CIP) and Fiscal Year 2025-26 CIP Budget 267
Staff Recommendation:
Conduct the public hearing and consider all testimony that may be forthcoming;
1. Adopt Resolution CC 2025-37 adopting the City of Covina budget for July 1, 2025 through June 30, 2026;
2. 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
3. Adopt Resolution CC 2025-38 adopting the Fiscal year 2026-2030 Capital Improvement Program and the Fiscal Year 2025-26 Capital Improvement Program Budget.
4. PH 2. The Establishment and Adjustment of Certain Service and DevelopmentRelated and Other User Fees 327
Staff Recommendation:
Open and conduct the Public Hearing and adopt Resolution CC 2025-39 Adopting a City-wide 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.
NEW BUSINESS
NB 1. Adoption of Urgency Ordinance Establishing a Temporary Moratorium on Battery Energy Storage Systems (BESS)
433
Staff Recommendation:
Request the City Council adopt Ordinance 25-01, entitled “An Urgency Ordinance of the City Council of the City of Covina, California, enacted pursuant to Government Code Section 65858 establishing a moratorium on accepting and processing any new entitlement applications and/or issuing any permits for new Battery Energy Storage Systems (BESS) within the City limits; declaring the urgency thereof and making a determination of exemption under the California Environmental Quality Act”.
ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, June 3, 2025, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.
1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT
AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING
AUTHORITY JOINT MEETING
MINUTES
April 15, 2025, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember Patricia Cortez
Councilmember John C. King
Mayor/Chair Victor Linares
Councilmembers Absent: Mayor Pro Tem/Vice-Chair Hector Delgado Staff Present: City Clerk Drew Aleman (Elected Member)
City Treasurer Neil Polzin (Elected Member)
City Manager Chris Marcarello
City Attorney Candice K. Lee
Police Chief Ric Walczak
Deputy City Manager Angel Carrillo
Community Development Director/Deputy City Manager Brian Lee Parks & Recreation/Library Services Director Lisa Evans Public Works Director Rafael Fajardo
Chief Deputy City Clerk Fabian Velez
Staff Absent: City Treasurer Neil Polzin (Elected Member) Interim Finance Director Theresa Franke
_____________________________________________________________________
2 JOINT MEETING—CLOSED SESSION 6:30 PM
CLOSED SESSION - WAS NOT HELD
JOINT MEETING—OPEN SESSION 7:30 PM
CALL TO ORDER
Mayor Linares called the Council/Agency/Authority meeting to order at 7:33 p.m. with all Councilmembers present except Mayor Pro Tem Delgado.
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Councilmember Allen.
INVOCATION
Given by Covina Police Chaplain Ron Butler.
APPROVAL OF AGENDA
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the agenda as presented.
Approved (4 to 0); Delgado Absent
PRESENTATIONS
A. Charter Oak Lady Chargers Cheer Athletes
Mayor Linares provided certificates to the Charter Oak Lady Chargers Cheer Athletes for a successful season. Coaches of the cheer athletes stated how proud they were for the team's accomplishments.
B. Donate Life Month
Mayor Linares presented the proclamation designating April as "Donate Life Month" in the City of Covina, to Susan Lesniak, representing One Legacy.
Ms. Lesniak provided information on the organization's Donate Life Run/Walk taking place on April 26, told her story as a recipient of an organ donation, and provided information on how to support the cause.
C. Recognition of Covina Police Department Baker to Vegas Relay Participants Mayor Linares invited Police Chief Walczak and the Covina Police Department Baker 2 Vegas team members which included Sergeant Manuel Esquivel, Sergeant Mike Colburn, Captain Ryan Davis, Youth Accountability Coordinator Jenica Morin-Pascual, Police Chief Walczak, and former Police Chief Mike Hillman.
Police Chief Walczak provided background on the event and spoke on the team’s performance. Sergeant Esquivel thanked the team and Council for their support of the event.
3 PUBLIC COMMENTS
Denae Amaya, Director of Government Affairs for Athens Services, informed the community of a joint compost giveaway and shredding event taking place at the City Yard on April 26, from 9:00 am to 12:00 pm. Ms. Amaya also noted upcoming events from Athens Services including local presentations for nonprofit organizations focusing on recycling and sorting, an Earth Month presentation at the Senior Center, and tour of the Irwindale materials recovery facility. Lastly, she wished everyone a happy Earth Month.
Melinda Forbes spoke of the need to address issues in the City with respect.
Joan Kucharski from the Covina Senior Citizens Club requested assistance from the City in being able to advertise membership for the Club.
Delphina Russell also requested additional assistance for the senior citizen community within the City and shared some of her experiences as a senior citizen.
COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen thanked the speakers of tonight's meeting for their comments and gave kudos to the Baker 2 Vegas team for their placement in the tough competition. He also noted his attendance at the Easter Bunny event and gave compliments to the Parks & Recreation team for their work.
Councilmember King wished everyone a wonderful Easter and great weekend ahead.
Councilmember Cortez thanked those who spoke for public comments and congratulated the Baker 2 Vegas team. Councilmember Cortez also requested that staff bring an item forward to the City Council to receive an update on the City’s membership within the San Gabriel Valley Council of Governments and was joined by Mayor Linares in the request.
Mayor Linares thanked the speakers for coming out, Director of Government Affairs Amaya for speaking on behalf of Athens Services, Former Police Chief Mike Hillman for his attendance, and the Baker 2 Vegas team. He also highlighted the good news in the Consent Calendar including ongoing street pavement projects, the recognition of Earth Day on April 22, and the start of youth sports. Mayor Linares then invited the community to the Spring into Summer 1.5k Walk hosted by the Parks & Recreation Department at Heritage Plaza on May 17 at 9:00 am.
CITY MANAGER COMMENTS
City Manager Marcarello had no comments.
CONSENT CALENDAR
CC 1. Minutes
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Approve the Minutes of the April 1, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.
Approved (4 to 0); Delgado Absent
4 CC 2. Payment of Demands
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Approve Payment of Demands in the amount of $3,769,274.99.
Approved (4 to 0); Delgado Absent
CC 3. City of Covina Investment Report for Month Ended March 31, 2025 Motion made by: Councilmember Allen
Seconded by: Councilmember King
Receive and File.
Approved (4 to 0); Delgado Absent
CC 4. Covina Park Improvements Project – Project No. P2005 – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember Allen
Seconded by: Councilmember King
1. Accept the work performed by Gentry Brothers, Inc.; and
2. Authorize the City Clerk to file a Notice of Completion for the Covina Park Improvements Project – Project No. P2005.
Approved (4 to 0); Delgado Absent
CC 5. Approval of Fiscal Year 2026 Water Supply Strategy and Authorization to Execute All Requisite Documents
Motion made by: Councilmember Allen
Seconded by: Councilmember King
1. Approve the Fiscal Year 2026 water supply strategy outlined in this report;
2. Authorize the City Manager to execute a Temporary Assignment or Lease of Water Right Form to assign up to 383.66 acre feet of Water Production Rights from the City to an Alternate Water Agency for FY 2026;
3. Authorize the City to solicit and lease up to 400 shares of Covina Valley Water Company stock for Fiscal Year 2026, and execute a Lease Agreement and an Order for Delivery with interested shareholders; and
4. Authorize the City to participate in the Fiscal Year 2026 Covina Valley Water Company lease pool.
Approved (4 to 0); Delgado Absent
CC 6. Escheatment of Unclaimed Funds to the City of Covina in Accordance with the Escheat of Unclaimed Property Policy
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Authorize staff to pursue the escheatment of unclaimed funds to the City in the amount of $97,489.27 and approve the transfer of any available funds remaining
5 unclaimed to be recognized as revenue in the General Fund in accordance with the Escheat of Unclaimed Property Policy.
Approved (4 to 0); Delgado Absent
CC 7. Amend Finance Advisory Commission Regular/Special Meeting Bylaws Motion made by: Councilmember Allen
Seconded by: Councilmember King
Adopt Resolution CC 2025-27 Amending the Bylaws of the Finance Advisory Commission Pertaining to the Establishment of a Meeting Quorum and to Allow Bylaw Amendments at All Meetings.
Approved (4 to 0); Delgado Absent
CC 8. Adoption of Resolutions Relating to the Annexation of Territory to Community Facilities District No. 2007-1, declaring intention to Authorize Annexation, Adopting Boundary Map, and Setting the Public Hearing Date for June 3, 2025
Motion made by: Councilmember Allen
Seconded by: Councilmember King
1. Adopt City Resolution CC 2025-28, declaring intention to authorize the annexation of territory (270 West Dexter Street, Covina//Annexation 37) to Community Facilities District No. 2007-1 (Public Services); and
2. Adopt City Resolution CC 2025-29, adopting boundary map showing territory proposed to be annexed in the future to Community Facilities District No. 2007-1 (Public Services).
Approved (4 to 0); Delgado Absent
CC 9. Adopt Resolution Proclaiming April 22, 2025 as Earth Day in the City of Covina
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Adopt Resolution CC 2025-30 proclaiming April 22, 2025, as Earth Day in the City of Covina.
Approved (4 to 0); Delgado Absent
PUBLIC HEARINGS
PH 1. Public Hearing on City Vacancies and Recruitment and Retention Efforts (Assembly Bill 2561/Government Code Section 3502.3)
Mayor Linares opened the public hearing.
The agenda report was provided by Human Resources Manager Joanna Espinosa.
There were no public comments.
In response to an inquiry regarding the Bill, City Attorney Lee informed the City Council that the Bill was authored by Assemblymember Tina McKinnor.
6 Mayor Linares closed the public hearing.
Motion made by: Councilmember King
Seconded by: Councilmember Cortez
1. City Council to open the public hearing and consider public testimony at which the City will report on workforce vacancies, and recruitment and retention efforts and the City's recognized employee organizations will be provided an opportunity to make a presentation on such subjects (Procedures for the Public Hearing on City Vacancies and Recruitment and Retention Efforts are attached hereto as Attachment “A.”); and
2. Receive and File a staff report on the City’s workforce vacancies, and recruitment and retention efforts in compliance with Assembly Bill (“AB”) 2561. (Gov. Code § 3502.3.).
Approved (4 to 0); Delgado Absent
NEW BUSINESS
NB 1. FY 2025-26 Capital Improvement Project Presentation The agenda report and PowerPoint presentation were provided by Public Works Manager Michael Flores.
Questions and discussion topics included who has been writing the City grants, how updates to Wingate park will affect youth sports, costs and complication of implementation of Metrolink crossing quiet zones, the High-Intensity Activates Crosswalk (HAWK) project, investments in water infrastructure, issues with the crossing light at the Metrolink Station, and kudos to staff.
Motion made by: Councilmember King
Seconded by: Councilmember Cortez
To receive and file the presentation.
Approved (4 to 0); Delgado Absent
NB 2. Creation of City Council Ad-Hoc Committee to Review City Council Procedural Guidelines and Policies
Staff Recommendation:
That the City Council authorize the formation of an Ad-Hoc Committee to review City Council Procedural Guidelines and Policies and appoint two Council Members to serve on the committee.
Mayor Linares opened the floor for Council members wishing to join the ad-hoc committee. Councilmember Allen and Councilmember King volunteered to join the ad-hoc committee.
That the City Council authorize the formation of an Ad-Hoc Committee to review City Council Procedural Guidelines and Policies and appoint two Council Members to serve on the committee.
7 Motion made by: Councilmember Cortez
Seconded by: Mayor Linares
That the City Council authorize the formation of an Ad-Hoc Committee to review City Council Procedural Guidelines and Policies and appoint Councilmember Allen and Councilmember King to serve on the committee.
Approved (4 to 0); Delgado Absent
ADJOURNMENT
At 8:45 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, May 6, 2025, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. ________________________________
Fabian Velez, Chief Deputy City Clerk
_____________________________
Victor Linares, Mayor/Chair
CITY OF COVINA AND
SUCCESSOR AGENCY TO THE
COVINA REDEVELOPMENT AGENCY
AGENDA ITEM REPORT
ITEM NO. CC 2
Meeting: May 6, 2025
Title: Payment of Demands
Presented by: Theresa Franke, Interim Director of Finance Recommendation: Approve Payment of Demands in the amount of $5,356,607.81.
EXECUTIVE SUMMARY/BACKGROUND:
Attached is a list of warrants and demands which are being presented for approval and are summarized as follows:
Accounts Payable Warrants March 28, 2025 – April 10, 2025 CITY checks/EFTs $ 4,376,567.54
CITY payroll $ 1,140,407.68
CITY voids $ (180,386.13)
Worker’s Comp $ 19,727.08
$ 5,356,316.17
SACRA checks/EFTs $ 46.74
SACRA payroll $ 244.90
$ 291.64
TOTAL checks/EFTs $ 5,356,607.81
DISCUSSION:
The attached reports have been reviewed by the Interim Director of Finance.
FISCAL IMPACT:
Sufficient funding is available and the related costs are included in the Fiscal Year 24/25 budget.
Respectfully submitted,
CITY OF COVINA
Check Register
Mar 28, 2025 - Apr 10, 2025
Check # Check Date Vendor Name Amount
6012 04/10/2025 4003 MidAmerica 2,018.20
20934 04/01/2025 487 CalPERS 290.06
20935 04/01/2025 487 CalPERS 7,210.53
20936 04/01/2025 487 CalPERS 100,721.95
20947 04/10/2025 487 CalPERS 7,210.53
20948 04/10/2025 487 CalPERS 97,309.06
20949 04/10/2025 788 COVINA, CITY OF 50,795.75 *
20950 04/10/2025 789 COVINA-FSA, CITY OF 1,836.65
20951 04/10/2025 2033 NATIONWIDE RETIREMENT SOLUTIONS 32,527.13 20952 04/10/2025 788 COVINA, CITY OF 95.71 *
20953 04/10/2025 2033 NATIONWIDE RETIREMENT SOLUTIONS 7,500.00 20954 04/10/2025 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 7,402.50 20955 04/10/2025 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 925.20 20956 04/10/2025 4519 Foothill Communications, Inc. 171,851.58 subtotal EFT/wires/direct deposits 487,694.85
Internal transfers - workers comp allocation - no net cash effect (50,891.46) * subtotal EFT/wires/direct deposits less Internal Transfers $436,803.39 125713 04/03/2025 82 AIR-BREE HEATING 3,183.08
125714 04/03/2025 84 AIRGAS-WEST 303.01
125715 04/03/2025 113 ALL CITY MANAGEMENT SVC 15,609.60 125716 04/03/2025 219 AT&T 60.32
125717 04/03/2025 239 AUTOZONE INC 51.87
125718 04/03/2025 254 AZUSA LIGHT & WATER 49.78
125719 04/03/2025 269 BAKER AND TAYLOR INC 3,402.43
125720 04/03/2025 471 CALBO 85.00
125721 04/03/2025 568 CAT SPECIALTIES INC 1,427.27
125722 04/03/2025 572 CATHOLIC CHARITIES OF LOS ANGELES 18,839.00 125723 04/03/2025 649 CINTAS CORP #693 389.63
125724 04/03/2025 664 CIVILTEC ENGINEERING INC. 6,000.00 125725 04/03/2025 703 COMBINED GRAPHICS 493.92
125726 04/03/2025 735 BOBCAT OF LOS ANGELES INC. 809.88 125727 04/03/2025 849 DAPEER ROSENBLIT & LITVAK LLP 1,207.50 125728 04/03/2025 878 DELTA DENTAL OF CALIFORNIA 122.02 125729 04/03/2025 880 DEMCO INC 54.22
125730 04/03/2025 894 DF POLYGRAPH 600.00
125731 04/03/2025 970 EDISON CO 38.34
125732 04/03/2025 970 EDISON CO 3,622.76
125733 04/03/2025 1055 FEDEX 8.95
125734 04/03/2025 1215 GONZALES, RICHARD 189.00
125735 04/03/2025 1235 GRAINGER 1,988.75
125736 04/03/2025 1241 GRAND PRINTING 2,429.42
125737 04/03/2025 1275 HAAKER EQUIPMENT CO 9,083.94
125738 04/03/2025 1401 INTERNATIONAL CODE COUNCIL INC 59.00 125739 04/03/2025 1505 JOHNNY'S POOL SERVICE 66.13
125740 04/03/2025 1531 JW LOCK CO INC 313.39
125741 04/03/2025 1619 LA CNTY SHERIFF'S DEPT 258.60
125742 04/03/2025 1663 LAW ENFORCEMENT MEDICAL 1,725.00 125743 04/03/2025 1694 LEWIS ENGRAVING INC 57.33
125744 04/03/2025 1707 LIEBERT CASSIDY WHITMORE 19,426.00 125745 04/03/2025 1754 LOWE'S COMPANIES INC 193.26
125746 04/03/2025 1792 MANNING & KASS 44,185.98
125747 04/03/2025 1895 MERRIMAC ENERGY GROUP 32,309.83
Attachment A Page 1 of 5
CITY OF COVINA
Check Register
Mar 28, 2025 - Apr 10, 2025
Check # Check Date Vendor Name Amount
125748 04/03/2025 1933 MISSION LINEN SUPPLY 44.98
125749 04/03/2025 2027 NAPA AUTO PARTS 101.69
125750 04/03/2025 2091 O REILLY AUTO PARTS 130.12
125751 04/03/2025 2238 PEST OPTIONS INC 2,150.00
125752 04/03/2025 2329 PUENTE READY MIX INC 1,810.31
125753 04/03/2025 2345 QUILL 214.94
125754 04/03/2025 2415 REPUBLIC MASTER CHEFS 670.83
125755 04/03/2025 2444 RIO HONDO COLLEGE 228.00
125756 04/03/2025 2736 STAPLES BUSINESS ADVANTAGE 658.59 125757 04/03/2025 2818 GABE BF VAN LEEUWEN 59.30
125758 04/03/2025 2846 THOMAS, TERRI 459.20
125759 04/03/2025 2852 THREE VALLEY MUN WATER DISTR 15,735.60 125760 04/03/2025 2903 TRI-XECUTEX CORP 200.00
125761 04/03/2025 2954 URBAN GRAFFITI ENTERPRISES INC 7,200.00 125762 04/03/2025 2966 V & V MANUFACTURING 2,469.60
125763 04/03/2025 3023 VULCAN MATERIALS COMPANY 1,015.10 125764 04/03/2025 3070 WEST COAST ARBORISTS INC 25,053.30 125765 04/03/2025 3102 WILLDAN FINANCIAL SERVICES 2,475.00 125766 04/03/2025 3185 TOSHIBA FINANCIAL SERVICES 1,535.30 125767 04/03/2025 3187 WAGONER, PAMELA 511.00
125768 04/03/2025 3190 LAYNE, JONATHAN DANIEL 317.80
125769 04/03/2025 3235 COOK, SHAWNA 492.80
125770 04/03/2025 3274 WILLDAN 4,482.00
125771 04/03/2025 3621 WAXIE ENTERPRISES INC 1,090.37
125772 04/03/2025 3701 DEPARTMENT OF JUSTICE 292.00
125773 04/03/2025 3718 NADENE VALDEZ 215.60
125774 04/03/2025 3729 SUNBELT RENTALS INC 965.94
125775 04/03/2025 3837 SONSRAY MACHINERY LLC 1,383.99
125776 04/03/2025 3932 ARLENE D. MAR 77.00
125777 04/03/2025 3953 GOLDEN METERS SERVICES INC 2,470.00 125778 04/03/2025 3982 CAROL A CUGNO 550.90
125779 04/03/2025 3988 LANDSCAPE WAREHOUSE III 556.45
125780 04/03/2025 4065 VERIZON WIRELESS 1,690.52
125781 04/03/2025 4089 MEASOM, DEVIN THOMAS 303.10
125782 04/03/2025 4209 ADLERHORST INTERNATIONAL 484.00
125783 04/03/2025 4246 FERGUSON WATERWORKS #1083 4,289.97 125784 04/03/2025 4249 H.Q. ENTERPRISES 203.31
125785 04/03/2025 4350 RKA Consulting Group 10,141.25
125786 04/03/2025 4421 TLG BUSINESS SOLUTIONS 358.77
125787 04/03/2025 4455 FRONTIER 274.99
125788 04/03/2025 4483 DALE A. GARRISON 189.00
125789 04/03/2025 4564 National Union Fire Ins. Co. of Pittsburgh, PA 1,530.00 125790 04/03/2025 4582 USABLUEBOOK 331.06
125791 04/03/2025 4682 Evan Brooks Associates, Inc. 5,500.00 125792 04/03/2025 4688 PCAM, LLC 39,214.50
125793 04/03/2025 4704 S & J Supply Company, Inc. 733.11 125794 04/03/2025 4710 Fidelity Security Life Insurance Company 8.62 125795 04/03/2025 4764 UniFirst Corporation 987.46
125796 04/03/2025 4804 Vihulu L. Villagran 70.00
125797 04/03/2025 4813 JOHNSON CONTROLS FIRE PROTECTION LP 290.23 125798 04/03/2025 4817 Weck Analytical Environmental Services, Inc. 420.00 125799 04/03/2025 4824 Occu-Med, Ltd. 937.80
Attachment A Page 2 of 5
CITY OF COVINA
Check Register
Mar 28, 2025 - Apr 10, 2025
Check # Check Date Vendor Name Amount
125800 04/03/2025 4829 Alicia A. Flores 175.00
125801 04/03/2025 4833 Michael R. Hillmann 2,307.50
125802 04/03/2025 4854 CEJ Engineers, Inc. 71,760.00
125803 04/03/2025 4931 Antonio Castro Jr 2,012.25
125804 04/03/2025 5011 Excel Office Services 351.50
125805 04/03/2025 5075 Amalia Q. Seresinghe 163.80
125806 04/03/2025 5109 SITEREP CONSTRUCTION SERVICES, INC. 99,148.00 125807 04/03/2025 5169 Occupational Health Centers of California 725.00 125808 04/03/2025 5195 A3 COMMUNICATIONS, INC. 44.30
125809 04/03/2025 5228 ODP BUSINESS SOLUTIONS, LLC 221.57 125810 04/03/2025 5269 CONTROL AIR ENTERPRISES LLC. 3,299.00 125811 04/03/2025 5280 ALDERMAN & HILGERS LLP 6,390.00
125812 04/03/2025 5291 AMAZON CAPITAL SERVICES, INC 729.23 125813 04/03/2025 5394 SIERRA PLUMBING & DRAIN CLEANING 500.00 125814 04/03/2025 5404 SAN FERNANDO VALLEY ALARM CO. 372.00 125815 04/03/2025 5423 SUSAN T SCHOCK 70.00
125816 04/03/2025 5445 MARGARET L SMITH 56.00
125817 04/03/2025 5533 KOSMONT & ASSOCIATES INC 205.40
125818 04/03/2025 5536 CAL STAR AUTOGLASS 452.50
125819 04/03/2025 5550 LEAH DAWN OSIER 94.50
125820 04/03/2025 5568 PERERA CONSTRUCTION & DESIGN, INC. 388,242.60 125821 04/03/2025 5580 ROLLINS, INC 147.00
125822 04/03/2025 5582 KATHARINE CURTISS 357.00
125823 04/03/2025 5603 KAYLEE L BARNITT 201.60
125824 04/03/2025 5606 MAGNOLIA ENVIRONMENTAL, LLC 785.00 125825 04/03/2025 5611 LYNN GONZALEZ 317.60
125826 04/03/2025 5612 FOOTHILL ROOFING 23,800.00
125827 04/03/2025 5616 BBR ATHLETICS INC 6,726.35
125828 04/03/2025 5619 TRADEWAY GLASS COMPANY 899.72
125829 04/03/2025 5626 JENNIFER KOU 435.40
125830 04/03/2025 5637 ENCORE DEVELOPMENT COMPANY 5,750.75 125831 04/03/2025 5640 IBUILD CONSTRUCTION CORP., INC 39,445.00 125832 04/03/2025 5643 LEGENDS ROOFING INC. 16,000.00
125833 04/03/2025 99999 DANIEL CARDOZO 3,400.00
125834 04/03/2025 99999 DANIELLA ANDRADE 75.00
125835 04/03/2025 99999 DIANA SIERRA 83.92
125836 04/03/2025 99999 JENNIFER NGUYEN 213.79
125837 04/03/2025 99999 JOSEPH HUANG 15,500.00
125838 04/10/2025 85 AJAX SIGN GRAPHICS INC 100.33
125839 04/10/2025 239 AUTOZONE INC 2.63
125840 04/10/2025 254 AZUSA LIGHT & WATER 1,146.21
125841 04/10/2025 430 BUILDING ELECTRONIC CONTROLS 213.75 125842 04/10/2025 568 CAT SPECIALTIES INC 131.32
125843 04/10/2025 653 CITRUS AUTO UPHOLSTERY 138.58
125844 04/10/2025 654 CITRUS CAR WASH 65.98
125845 04/10/2025 692 CODE PUBLISHING COMPANY 830.00
125846 04/10/2025 703 COMBINED GRAPHICS 330.75
125847 04/10/2025 771 COVINA IRRIGATING CO 247,513.78
125848 04/10/2025 783 CITY OF COVINA WATER 713.93
125849 04/10/2025 798 CRAFCO INC 3,572.10
125850 04/10/2025 947 DUNN EDWARDS CORP 98.64
125851 04/10/2025 970 EDISON CO 72,587.04
Attachment A Page 3 of 5
CITY OF COVINA
Check Register
Mar 28, 2025 - Apr 10, 2025
Check # Check Date Vendor Name Amount
125852 04/10/2025 1156 THE GAS COMPANY 2,577.58
125853 04/10/2025 1204 GOLDEN STATE WATER COMPANY 941.13 125854 04/10/2025 1235 GRAINGER 3,559.16
125855 04/10/2025 1255 GRISWOLD INDUSTRIES 4,881.58
125856 04/10/2025 1275 HAAKER EQUIPMENT CO 39.60
125857 04/10/2025 1361 HOLLIDAY ROCK CO INC 877.09
125858 04/10/2025 1387 HUNTER, JOHN L. 4,712.50
125859 04/10/2025 1614 LA CNTY FIRE DEPARTMENT 1,006,798.99 125860 04/10/2025 1754 LOWE'S COMPANIES INC 879.52
125861 04/10/2025 2027 NAPA AUTO PARTS 701.54
125862 04/10/2025 2091 O REILLY AUTO PARTS 209.75
125863 04/10/2025 2210 PATTON SALES CORP 237.05
125864 04/10/2025 2275 POIRIER, ROBERT 105.00
125865 04/10/2025 2277 POLLARD WATER 312.63
125866 04/10/2025 2329 PUENTE READY MIX INC 1,163.14
125867 04/10/2025 2335 PYRO-COMM SYSTEMS INC 135.00
125868 04/10/2025 2676 SMART AND FINAL IRIS CORP 312.28 125869 04/10/2025 2800 T MOBILE USA 377.70
125870 04/10/2025 2855 CHARTER COMMUNICATIONS 148.16
125871 04/10/2025 2926 TYLER TECHNOLOGIES INC. 52,520.52 125872 04/10/2025 2935 UNDERGROUND SERVICE ALERT 205.73 125873 04/10/2025 2958 USPS - POC ACCOUNT #8098154 742.79 125874 04/10/2025 3023 VULCAN MATERIALS COMPANY 1,031.24 125875 04/10/2025 3070 WEST COAST ARBORISTS INC 4,399.75 125876 04/10/2025 3163 GENTRY BROTHERS INC 761,405.52
125877 04/10/2025 3274 WILLDAN 200.00
125878 04/10/2025 3735 QUADIENT LEASING USA, INC. 852.77 125879 04/10/2025 3749 JCL TRAFFIC SERVICES 3,869.60
125880 04/10/2025 3839 DOANE AND HARTWIG WATER SYSTEMS, INC. 1,248.03 125881 04/10/2025 3988 LANDSCAPE WAREHOUSE III 813.57
125882 04/10/2025 4077 INTERWEST CONSULTING GROUP INC 23,573.50 125883 04/10/2025 4153 CALIFORNIA PROFESSIONAL ENGINEERING, INC. 155,535.20 125884 04/10/2025 4201 OFFICE TEAM - A ROBERT HALF COMPANY 2,120.32 125885 04/10/2025 4246 FERGUSON WATERWORKS #1083 40.58
125886 04/10/2025 4249 H.Q. ENTERPRISES 773.95
125887 04/10/2025 4349 Intelli-Tech 460.00
125888 04/10/2025 4379 789, Inc. 6,061.45
125889 04/10/2025 4433 JAIME YAMASHITA 15,057.50
125890 04/10/2025 4455 FRONTIER 6,815.75
125891 04/10/2025 4488 WILCOX SUPPLY INC 512.79
125892 04/10/2025 4582 USABLUEBOOK 1,378.48
125893 04/10/2025 4676 Hill Brothers Chemical Company 1,692.34 125894 04/10/2025 4682 Evan Brooks Associates, Inc. 1,098.00 125895 04/10/2025 4688 PCAM, LLC 76,755.33
125896 04/10/2025 4713 Fisher Integrated, Inc. 1,200.00 125897 04/10/2025 4714 CIR, Inc. 42,294.86
125898 04/10/2025 4764 UniFirst Corporation 445.55
125899 04/10/2025 4765 AMC Modern IT 2,760.30
125900 04/10/2025 4814 PTM General Engineering Services, Inc. 96,560.83 125901 04/10/2025 4854 CEJ Engineers, Inc. 44,962.50
125902 04/10/2025 4928 Springstead & Associates, Inc. 4,000.00 125903 04/10/2025 4977 Enterprise FM Trust 6,943.09
Attachment A Page 4 of 5
CITY OF COVINA
Check Register
Mar 28, 2025 - Apr 10, 2025
Check # Check Date Vendor Name Amount
125904 04/10/2025 5052 SKY JTC CORPORATION 50,932.35
125905 04/10/2025 5139 Crown Castle Fiber LLC 925.00
125906 04/10/2025 5186 Dash Platform, LLC 789.39
125907 04/10/2025 5269 CONTROL AIR ENTERPRISES LLC. 421.54 125908 04/10/2025 5364 SAM SCHWARTZ ENGINEERING, D.P.C 1,713.22 125909 04/10/2025 5425 AQMNI LLC 2,500.00
125910 04/10/2025 5435 CORE & MAIN LP 1,718.66
125911 04/10/2025 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 18,777.97 125912 04/10/2025 5517 BATTERY CONNECTION INC. 354.80
125913 04/10/2025 5528 JAKE MARTINEZ 5,400.00
125914 04/10/2025 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 18,000.00 125915 04/10/2025 5553 SOUTHERN TIRE MART LLC 137.94
125916 04/10/2025 5568 PERERA CONSTRUCTION & DESIGN, INC. 132,055.55 125917 04/10/2025 5629 PACIFIC EXCEL GROUP LLC 546.61
125918 04/10/2025 99999 ALANA MANTILLA 100.00
125919 04/10/2025 99999 CALIBER BODYWORKS INC 26.04
125920 04/10/2025 99999 DANILO PEREZ 80.00
125921 04/10/2025 99999 ELIZABETH SNIPES 746.19
125922 04/10/2025 99999 FANGYUAN QIN 110.00
125923 04/10/2025 99999 HENRY VAY 49.64
125924 04/10/2025 99999 JOSE CARDONA 1,709.76
125925 04/10/2025 99999 KEVIN FINLEY 70.85
125926 04/10/2025 99999 LEO GONZALEZ 80.00
125927 04/10/2025 99999 MARIA QUEVEDO 80.00
125928 04/10/2025 99999 PABLO FERNANDEZ VINA 75.23
125929 04/10/2025 99999 VALERIE CADY 96.00
125930 04/10/2025 99999 VICKY LIANG 49.48
125931 04/10/2025 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 4,629.65 125932 04/10/2025 69 AFSCME District Council 36 742.50
125933 04/10/2025 775 COVINA POLICE ASSOCIATION 2,600.00 125934 04/10/2025 878 DELTA DENTAL OF CALIFORNIA 9,090.49 125935 04/10/2025 3795 PRE-PAID LEGAL SERVICES, INC 155.48 125936 04/10/2025 3846 CLEA 976.00
125937 04/10/2025 4255 RELIASTAR LIFE INSURANCE COMPANY 4,656.62 125938 04/10/2025 4710 Fidelity Security Life Insurance Company 989.76 subtotal checks $ 3,939,810.89
125557 03/20/2025 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES (8,327.70) 125559 03/20/2025 1204 GOLDEN STATE WATER COMPANY (206.85) 125600 03/20/2025 4519 Foothill Communications, Inc. (171,851.58) subtotal voids $ (180,386.13)
payroll (04/10/25) $ 1,140,652.58
workers' compensation $ 19,727.08
TOTAL checks/EFTs $5,356,607.81
Attachment A Page 5 of 5
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: May 6, 2025
Title: Bus Shelter Installation Project – Award of Contract to FS Contractors, Inc. for an Amount not to Exceed $154,500
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Award a contract for the Bus Shelter Installation Project to FS Contractors, Inc. as the lowest responsive and responsible bidder in an amount not-to-exceed $154,500 and authorize the City Manager to execute the contract;
2. Authorize the City Manager to execute Amendment No 1. to the Memorandum of Agreement between the City of Covina and San Gabriel Valley Council of Governments (SGVCOG) for the East San Gabriel Valley Sustainable Multimodal Improvements Project to include the FY25 Bus Shelter Installation Project and establish funding in the amount of $150,000 for project expenses from the Los Angeles County Metropolitan Authority; and
3. Adopt Resolution CC 2025-34 to reflect a decrease of $95,500 in the Proposition A Budget and an appropriation of $150,000 to the Transportation CIP Budget and the reimbursement of $150,000 to the City by the SGVCOG upon completion of the project.
EXECUTIVE SUMMARY/BACKGROUND:
The Bus Shelter Installation Project, which consists of the installation of bus shelters and the procurement of metal bus benches and trash receptacles, was approved as part of the Fiscal Year 2024-2025 Capital Improvement Program. Over the past several years, transit stops citywide have been upgraded with the aforementioned amenities, new solar lights, and sidewalk repairs to improve safety, functionality, and aesthetics. This fiscal year, target areas include Grand Avenue and Glendora Avenue, locations part of a greater effort to enhance bus shelters in partnership with the San Gabriel Valley Council of Governments and the San Gabriel Valley Sustainable Multimodal Improvements Project (SMIP).
On November 20, 2023 the City of Covina and the San Gabriel Valley Council of Governments (SGVCOG) entered into a Memorandum of Agreement (MOA) which includes funding for the completion of East San Gabriel Valley Sustainable Multimodal Improvements Project (SMIP) Phase I. Approved as part of a Measure M MultiYear Subregional Program (MSP) application with the Los Angeles County Metropolitan Transportation Authority (LACMTA), the goal of the SMIP is to provide First/Last Mile connections, improve active transport, and enhance bus system infrastructure throughout the East San Gabriel Valley. Approximately $ 14 million in MSP Cycle 2 funds, in conjunction with local city funds from partnering municipalities, are allocated to the SGVCOG for the completion of the SMIP. As one of the nine partnering cities for Phase I, $150,000 in MSP Bus System Improvement Program (BSIP) sub-funds has been allocated to the City for the Glendora & Grand Avenue Complete Streets Project – a multi-faceted transit enhancement project that includes installation of bus shelters along Grand Avenue and Glendora Avenue.
DISCUSSION:
A Request for Proposals (RFP), in accordance with the informal bidding process, was first issued on September 26, 2024 for the installation of five (5) bus shelters and the procurement of five (5) trash receptacles, and five (5) bus benches. As part of the existing MOA with the SGVCOG, $150,000 was allocated for the installation of nine (9) new bus shelters. After evaluation of the proposals received on October 7, 2024, the SGVCOG determined that six (6) total transit stops along Grand Avenue and Glendora Avenue were eligible based on available funding.
As such, an amendment to the MOA (Attachment A) would be required to reflect this change in project detail as below:
Revised Bus Stop Locations
1. Grand Avenue/Arrow Highway (southeast corner), northbound
2. Grand Avenue/Covina Boulevard (northeast corner), northbound
3. Glendora Avenue/Cypress Street (northwest corner), northbound
4. Glendora Avenue/Cypress Street (southeast corner), southbound
5. Glendora Avenue/Ruddock Street (southeast corner), northbound
6. Glendora Avenue/Ruddock Street (southwest corner), southbound Amendment to the MOA required a lengthy process between the SGVCOG and LACTMA – as a result of this time lapse, the unit costs for each amenity increased slightly. This price increase, coupled with the addition of a sixth bus stop, resulted in a total project cost significantly higher than originally proposed. Additionally, the OnCall Consultant list utilized had since been restructured and revisions formally approved by City Council on February 4, 2025. Due to these circumstances, City staff determined the best course of action was to void the original proposal received and resolicit under the new project parameters. As such, the Department of Public Works requested informal proposals from three (3) professional and licensed firms that are currently approved as On-Call Contractors for the Department of Public Works. Via informal bidding procedures, a Request for Proposals (RFP) was issued on April 7, 2025, and proposals were received April 17, 2025 with the following results:
Rank Consultant Location Amount
1 FS Contractors, Inc. Sylmar, CA $154,500.00
2 GM Sager Construction Co., Inc. Pomona, CA $259,325.94 3 iBuild Construction Corp. Walnut, CA No Response
Staff reviewed the proposal documents as well as the consultant’s background and recent projects for competency.
Staff determined that FS Contractors, Inc. is the successful lower bidder. It is recommended that a Contract (Attachment B) for the Bus Stop Improvement Project be awarded to FS Contractors, Inc. as the lowest responsive and responsible bidder in an amount not to exceed $154,500.
FISCAL IMPACT:
Per the MOA Amendment, $150,000 in MSP BSIP funds is allocated for this project, which will be invoiced to SGVCOG upon contractor invoice to the City. In turn, SGVCOG is to invoice LACMTA for final reimbursement to the City. Adoption of Resolution CC 2025-34 will reflect a decrease of $95,500 in Proposition A Funds and appropriate $150,000 to the Transportation CIP Fund for the MSP BSIP Funds that will be reimbursable to the City. The City’s final contribution will total $4,500 in Prop A Local Return funds.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
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 only applies to projects that have the potential for causing a significant effect on the environment.
Respectfully submitted,
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –
Amendment No. 1
4903-9351-5813, v. 1 1
AMENDMENT NO. 1 TO MEMORANDUM OF AGREEMENT
EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENTS
PROJECT
This Amendment No. 1 to the Memorandum of Agreement (“MOA”) is by and between the City of Covina, hereinafter referred to as “CITY” and the San Gabriel Valley Council of Governments (“SGVCOG”) to be effective as of the date signed by both Parties. City and SGVCOG are sometimes referred to hereinafter individually as a “Party” and collectively as the “Parties”.
RECITALS:
A. CITY and SGVCOG entered into that certain MOA, dated November 20, 2023, which MOA provides for completion of the East San Gabriel Valley Sustainable Multimodal Improvements Project (“SMIP) Phase 1, (the “PROJECT”); and
B. Whereas the CITY and SGVCOG desire to amend the MOA for the Scope of Work and budget for SMIP Phase 1 for and the MSP Bus System Improvement Program (BSIP) subfunds PROJECT as provided herein.
AGREEMENT
Now, therefore, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
1. Revised Scope of Work. The Scope of Work for City of Covina SMIP Phase 1, Exhibit “B” to the MOA, is hereby amended, modified and supplemented to include the services described on Exhibit "B" attached hereto and incorporated herein by this reference.
2. Revised Funding Allocation. The Phase 1 Work MSP Funding Allocation, Exhibit “C” to the MOA, is hereby amended, modified and supplemented to include the services described on Exhibit "C" attached hereto and incorporated herein by this reference.
3. Funding & Expenditure Plans. The Phase 1 Funding & Expenditure Plans, Exhibit “D” to the MOA, is hereby amended, modified and supplemented to include the services described on Exhibit "D" attached hereto and incorporated herein by this reference.
4. Integration. This First Amendment and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein and supersede all negotiations with respect hereto. This First Amendment amends, as set forth herein, the MOA and except as specifically amended hereby, the MOA shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the MOA, the terms and provisions of this First Amendment shall control.
ATTACHMENT A
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –
Amendment No. 1
4903-9351-5813, v. 1 2
In witness whereof, the Parties have caused the Amendment No. 1 to the MOA on the date of last execution by the Parties.
CITY OF COVINA
By: ___________________________
Chris Marcarello
City Manager
Date: __________________________
APPROVED AS TO FORM:
_______________________________
Candice K. Lee
City Attorney
SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
By: ____________________________
Marisa Creter
Executive Director
Date: __________________________
APPROVED AS TO FORM:
_______________________________
Cassie E. Trapesonian
General Counsel
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 1
EXHIBIT B
EAST SAN GABRIEL VALLEY
SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP)
Scope of Work
City of Covina SMIP Phase 1
City of Covina
Glendora Avenue & Grand Avenue Complete Streets Project (MSP Cycle 2 [Active Transportation Program Subfund] Allocation $970,000 + MSP Cycle 2 [Bus System Improvement Program Subfund] Allocation $150,000) Covina SMIP Phase 1 Project Description
The City of Covina’s SMIP Phase 1 Project - Glendora Avenue & Grand Avenue Complete Streets Project includes completing Project Approval and Environmental Documentation (PA&ED) (for Glendora Avenue) and Plans, Specifications, and Estimates (PS&E) (for Grand Avenue) for approximately 4.06 miles of Class II bike lanes, signage, bike stations, traffic signal coordination, and ADA compliance upgrades and appurtenances on Grand Avenue, Wingate Park, and Glendora Avenue. The City’s Glendora Avenue & Grand Avenue Complete Streets Project also includes constructing and installing bus shelter renovation improvements along Grand Avenue and Glendora Avenue.
Glendora Avenue currently has two existing travel lanes in each direction with a center stripe and dedicated left-turn lanes at most arterial and some minor intersections. This roadway also has a striped and signed bike lane, although it has substandard widths along some segments. On-street parking is currently allowed in the bike lane, which is not a standard design. Average daily traffic (ADT) volumes are relatively low for an arterial roadway. This “Road Diet” project proposes reconfiguring the existing roadway to reduce the number of existing travel lanes from two to one travel lane in each direction with a center two-way left-turn lane, on-street parking, and 12,250 linear feet of six-feet wide bike Class II bike lanes in each direction.
Grand Avenue currently has two lanes in each direction with a center left-turn lane or raised median. ADT volumes are moderate-to-high for this arterial roadway. The curb lane is rather wide and will be reconfigured to accommodate both on-street parking (where feasible and where it is not currently prohibited) and approximately 21,120 linear feet of Class II bike lanes on both sides of Grand Avenue.
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 2
Kahler Russell (Wingate) Park is a 14.45-acre multipurpose recreational facility located in the City of Covina. Wingate Park is a large park spanning across a half mile distance with amenities such as two large grassy fields, two parking lots, tennis courts, hockey rink, baseball fields, basketball courts, playground, walking trail and restroom facilities.
Within Wingate Park, there is a 30 feet wide walking trail that is approximately one half-mile in length and located adjacent to the natural Charter Oak Creek along the southerly property line, oriented westerly and easterly from Grand Avenue to Glendora Avenue. The walking trail is composed of decomposed granite and is currently in poor condition due to heavy use.
The City of Covina is proposing the installation of a 2,600 linear feet Class II bike lane along the walking trail that will connect Grand Avenue with Glendora Avenue.
Covina SMIP Phase 1 Project Limits/Area & Location Maps The City of Covina’s SMIP Phase 1 Project is located along Grand Avenue, along the walking trail inside Wingate Park, and along Glendora Avenue in the City of Covina. For the Grand Avenue segment, the project limits are between Arrow Highway to the north and Walnut Creek Channel to the south. For the Wingate Park walking trail segment, the project limits are between Grand Avenue and Glendora Avenue. For the Glendora Avenue segment, the project limits are between Arrow Highway to the north and Badillo Street to the south.
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 3
Kahler Russell (Wingate) Park Trail
Covina SMIP Phase 1 Project – Bus Shelter Design
The City’s Glendora Avenue & Grand Avenue Complete Streets Project component which is funded through MSP Cycle 2 Bus System Improvement Program subfunds includes constructing bus shelter renovation improvements along Grand Avenue and Glendora Avenue, as detailed in this section of the MOA.
In an effort to better protect transit patrons from the elements and improve lighting features within bus stop areas, the City of Covina will be installing six (6) new bus shelters that provide shade and include solar lighting at existing Foothill Transit bus stops located along Grand Avenue and Glendora Avenue that are already outfitted with benches and trash receptacles.
The following bus stop locations proposed for new bus shelter installations as part of this Project are as follows:
1. Grand Avenue/Arrow Highway (southeast corner), northbound
2. Grand Avenue/Covina Boulevard (northeast corner), northbound
3. Glendora Avenue/Cypress Street (northwest corner), northbound
4. Glendora Avenue/Cypress Street (southeast corner), southbound
5. Glendora Avenue/Ruddock Street (southeast corner), northbound
6. Glendora Avenue/Ruddock Street (southwest corner), southbound
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 4
The City of Covina has completed design efforts for the proposed enhanced bus shelters. The City’s design and specifications for the new enhanced bus shelter are shown below:
Covina SMIP Phase 1 Project – Bus Shelter Design Specifications Covina SMIP Phase 1 Project Limits/Area & Location Map
The City of Covina’s SMIP Phase 1 Project is located at six street intersections along Grand Avenue and Glendora Avenue, in the City of Covina. The Project Location Maps shown below depict the proposed locations for bus shelter renovations in red circles. For the bus shelter renovations on Grand Avenue, the project limits are between Arrow Highway to the north and Wingate Street to the south. For the bus shelters along Glendora Avenue, the project limits are between Cypress Street to the north and Ruddock Street to the south.
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 5
Covina SMIP Phase 1 Estimated Project Costs & Project Funding/Budget The City of Covina’s total cost estimate for the City’s SMIP Phase 1 Project is $3,526,300, of which a total of $1,120,000 has been currently secured by the SGVCOG in MSP Cycle 2 funds and local City funds: Active Transportation Program (ATP) subfunds ($970,000) to complete Project Approval and Environmental Documentation (PA&ED), Plans, Specifications, and Estimates (PS&E) for Glendora Avenue, Grand Avenue and Wingate Park; and Bus System Improvement Program (BSIP) subfunds ($150,000) and $4,500 in local City funds to complete the construction and installation of new enhanced bus shelters along Grand Avenue and Glendora Avenue. Additional funding will be required to complete the construction phase for Glendora Avenue, Grand Avenue and Wingate Park to implement these projects and are currently being sought through competitive grant(s) and earmark requests. Details for the City’s SMIP Phase 1 Project’s estimated project costs and budget are shown below:
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 6
City of Covina - Glendora Avenue & Grand Avenue Complete Streets Project - Phase 1 Funding Project Milestones /
Phases
Total Cost
Estimate
Secured Funding
Additional
Funding Needed
LACMTA
Measure M Funds Local Agency Total Funding
SGVCOG PM/Admin $97,000 $97,000 ATP $0 $97,000 $0
PA&ED $11,270 $11,270 ATP $0 $11,270 $0
PS&E $861,730 $861,730 ATP $0 $861,730 $0
ROW $0 $0 $0 $0 $0
CON $2,556,300 $150,000 BSIP $4,500 $154,500 $2,401,800 OTHER $0 $0 $0 $0 $0
TOTAL $3,526,300 $1,120,000 ATP & BSIP $4,500 $1,124,500 $2,401,800 Covina SMIP Phase 1 Detailed Project Schedule
Glendora Avenue / Grand Avenue / Wingate Park
Current Project Status: Pre-Design Phase. Community Outreach complete. Currently in 60 percent design
Covina SMIP Phase 1 Glendora/Grand/Wingate Park Milestone Schedule Project Milestones / Phases Start Date End Date Duration (Months) PA&ED June 1, 2024 June 30, 2025 13
30% P.E. June 1, 2024 November 1, 2024 5
PS&E May 1, 2024 December 1, 2025 19
ROW (if applicable) n/a n/a
CON (if applicable) n/a n/a
CLOSEOUT February 1, 2026 May 1, 2026 3
Detailed Bus Shelter Cost Estimate
Item Description Quantity Unit Unit Cost Total Cost
Bus Shelter 6 EA $20,500 $123,000
Bench 6 EA $2,500 $15,000
Trash Receptacles 6 EA $2,750 $16,500
TOTAL $154,500
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1
4903-9351-5813, v. 1 7
Bus Shelters
Current Project Status: Construction Bid
Covina SMIP Phase 1 Bus Shelters Milestone Schedule
Project Milestones / Phases Start Date End Date Duration (Months) PA&ED n/a n/a
PS&E n/a n/a
ROW (if applicable) n/a n/a
CON January 1, 2025 September 30, 2025 9
CLOSEOUT October 1, 2025 December 31, 2025 3
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1 4903-9351-5813, v. 1 1
EXHIBIT C
CITY OF COVINA
EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP) Phase 1 Work MSP Funding Allocation
SMIP Phase 1 Work MSP Funding Allocation
City Project MSP
Subfund
ATP & BSIP Subfunds
TOTAL
FY 2023 FY 2024 FY 2025 FY 2026
Covina Glendora Avenue/Grand Avenue
Complete Streets Project
ATP $ 150,000 $ 820,000 $ - $ - $ 970,000
BSIP $ 50,000 $ 100,000 $ - $ - $ 150,000
TOTAL $ 200,000 $ 920,000 $ - $ - $ 1,120,000
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1 4903-9351-5813, v. 1 1
EXHIBIT D
CITY OF COVINA
EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP) Phase 1 Funding & Expenditure Plans
EXHIBIT D - PROJECT FUNDING
EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP) Measure M MSP - Program - Funding Agreement Projects - FA# 9200000000M470110 City Project Title: Glendora Avenue and Grand Avenue Complete Streets Project - Phase 1 Project#: MM4701.01
PROGRAMMED BUDGET - SOURCES OF FUNDS
SOURCES OF FUNDS FY2022-23 FY2023-24 FY 2024-25 FY2025-26 Total Budget
% of Budget
LACMTA PROGRAMMED FUNDING
MEASURE M MSP CYCLE 2 (ATP) FUNDS $ 150,000 $ 820,000 $ - $ - $ 970,000 SUM PROG LACMTA FUNDS $ 150,000 $ 820,000 $ - $ - $ 970,000 100% OTHER NON LACMTA FUNDING:
LOCAL: Prop A $ - $ - $ - $ - $ - 0%
STATE: $ - $ - $ - $ - $ - 0%
FEDERAL: $ - $ - $ - $ - $ - 0%
PRIVATE OR OTHER: $ - $ - $ - $ - $ - 0%
SUM NON-LACMTA FUNDS $ - $ - $ - $ - $ - 0%
TOTAL PROJECT FUNDS $ 150,000 $ 820,000 $ - $ - $ 970,000 100%
FTIP #: LASMIP103
Subregion ID: SG
3.10.25 Measure M MSP Memorandum of Agreement –Amendment No. 1 4903-9351-5813, v. 1 2
EXHIBIT D - PROJECT FUNDING
EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP) Measure M MSP - Program - Funding Agreement Projects - FA# 9200000000M470203 City Project Title: Glendora Avenue and Grand Avenue Complete Streets Project - Phase 1 Project#: MM4702.03
PROGRAMMED BUDGET - SOURCES OF FUNDS
SOURCES OF FUNDS FY2022-23 FY2023-24 FY 2024-25 FY2025-26 Total Budget
% of Budget
LACMTA PROGRAMMED FUNDING
MEASURE M MSP CYCLE 2 (BSIP) FUNDS $ 50,000 $ 100,000 $ - $ - $ 150,000 SUM PROG LACMTA FUNDS $ 50,000 $ 100,000 $ - $ - $ 150,000 96% OTHER NON LACMTA FUNDING:
LOCAL: Prop A $ - $ - $ 4,500 $ - $ - 0%
STATE: $ - $ - $ - $ - $ - 0%
FEDERAL: $ - $ - $ - $ - $ - 0%
PRIVATE OR OTHER: $ - $ - $ - $ - $ - 0%
SUM NON-LACMTA FUNDS $ - $ - $ 4,500 $ - $ 4,500 4%
TOTAL PROJECT FUNDS $ 50,000 $ 100,000 $ 4,500 $ - $ 154,500 100%
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”) FS Construction, Inc. a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to furnish and install bus shelters and various amenities for six (6) transit stop locations along Glendora Avenue and Grand Avenue for the FY2024-2025 Bus Shelter Installation Project.
B. Contractor represents that it is fully qualified to perform such work by virtue of its experience and the training, education and expertise of its principals and employees.
C. City desires to retain Contractor and Contractor desires to serve City to perform this work in accordance with the terms and conditions of this Agreement.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through December 31, 2025 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 December 31, 2026.
2. Compensation.
A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed One Hundred Fifty-Four Thousand Five Hundred Dollars ($154,500) 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.
ATTACHMENT B
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 Ying Kwan, Project Manager (the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Work under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.
C. Time for Performance. Contractor shall commence the Work on the Effective Date and shall perform all Work by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.
D. Standard of Performance. Contractor shall perform all Work under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.
E. Personnel. Contractor has, or will secure at its own expense, all personnel required to perform the Work required under this Agreement. All of the Work required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Work. Contractor shall determine the means, methods, and details by which Contractor’s personnel will perform the Work under this Agreement. Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work and compliance with the customary professional standards.
F. Compliance with Laws. The Contractor shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.
G. Permits and Licenses. Contractor shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.
H. City Approval. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of City or its authorized representatives, and the quality of the workmanship shall be guaranteed for one year from date of acceptance.
I. Performance and Labor and Material Bonds. Within ten (10) business days from the execution of this Agreement, Contractor shall provide the City with: (1) a Performance Bond, which shall be maintained until the end of the warranty period set forth in subsection O of this Section 3, to assure faithful performance of this Agreement in regard to the work required to be constructed pursuant to this Agreement in the amount of the Contract; and (2) a Labor and Materials Bond to secure payment to any contractor, subcontractor, persons renting equipment, or furnishing labor or materials for the work required to be constructed or installed pursuant to this Agreement in the additional amount of the Contract. The bonds shall be in substantially the form attached hereto as Exhibits C and D, incorporated herein by this reference, and approved by the City Attorney. The surety shall be a surety admitted in the State of California and approved by the City.
J. 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.
K. 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.
L. Utility Location. City acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215.
M. Regional Notification Centers. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4215.
N. 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.
O. 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.
P. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30) calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.
4. Method of Payment.
A. Invoices. Contractor shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount due. If City disputes any of Contractor's fees, it shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Contractor. For all reimbursements authorized by this Agreement, Contractor shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.
C. Audit of Records. Contractor shall make all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this agreement available during Contractor’s regular working hours to City for review and audit by City.
D. Waiver of Claims. On or before making final request for payment under Paragraph B, above, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment.
5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor.
6. Independent Contractor.
A. Contractor is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees. Contractor shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Contractor and Contractor’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Contractor’s personnel. Contractor’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Contractor’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Contractor shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Contractor’s personnel require to perform any of the services required by this Agreement. Contractor shall perform the services off of City premises at locations of Contractor’s choice, except as otherwise may from time to time be necessary in order for Contractor’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor’s performance of the Work under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.
City may make a computer available to Contractor from time to time for Contractor’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.
B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule,
regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.
C. Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section
6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
7. PERS Compliance and Indemnification.
A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.
Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.
B. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Contractor or provided for performance of this Agreement are deemed confidential. Contractor shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Contractor shall return all data to City upon the expiration or
termination of this Agreement. Contractor’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.
9. Conflicts of Interest. Contractor and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Contractor’s Work under this Agreement, including the Political Reform Act (Gov.
Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Contractor may perform similar services for other clients, but Contractor and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Contractor shall incorporate a clause substantially similar to this Section 9 into any subcontract that Contractor executes in connection with the performance of this Agreement.
10. Indemnification.
A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.
City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2).
3) Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 10 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.
B. Workers’ Compensation Acts not Limiting. Contractor’s indemnifications and obligations under this Section 10, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.
C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.
D. Survival of Terms. Contractor’s indemnifications and obligations under this Section 10 shall survive the expiration or termination of this Agreement.
11. Insurance.
A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Two Million Dollars ($2,000,000) per project or location.
If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11.
3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor shall provide an executed declaration that it has no employees.
B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self-insurance shall not be considered to comply with the insurance requirements under this Section 11.
C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming the City, its officers, employees, agents and volunteers as additional insureds.
D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.
E. Contractor’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Contractor and Contractor’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against City.
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be approved by City. At City’s option, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.
G. Cancellations or Modifications to Coverage. Contractor shall not cancel, reduce or otherwise modify the insurance policies required by this Section 11 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 11 is canceled or reduced in coverage or limits, Contractor shall, within two (2) business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.
H. City Remedy for Noncompliance. If Contractor does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Contractor’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Contractor’s expense, the premium thereon. Contractor shall promptly reimburse City for any
premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.
I. Evidence of Insurance. Prior to the performance of Work under this Agreement, Contractor shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager. Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.
J. Indemnity Requirements not Limiting. Procurement of insurance by Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 10 of this Agreement.
K. Subcontractor Insurance Requirements. Contractor shall require each of its subcontractors that perform Work under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 11.
12. Mutual Cooperation.
A. City’s Cooperation. City shall provide Contractor with all pertinent data, documents and other requested information as is reasonably available for Contractor’s proper performance of the Work required under this Agreement.
B. Contractor’s Cooperation. In the event any claim or action is brought against the City relating to Contractor’s performance or Work rendered under this Agreement, Contractor shall render any reasonable assistance that City requires.
13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.
14. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City may terminate or suspend this Agreement at any time, at will, for any reason or no reason, after giving written notice to Contractor at least seven (7) calendar days before the termination or suspension is to be effective. Contractor may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least sixty (60) calendar days before the termination is to be effective.
B. Obligations upon Termination. Contractor shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In
the event of City’s termination of this Agreement due to no fault or failure of performance by Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Work required by this Agreement.
15. Force Majeure. Contractor shall not be liable for any failure to perform its obligations under this Agreement if Contractor presents acceptable evidence, in City’s sole judgment, that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Contractor’s reasonable control and not due to any act by Contractor.
16. Notices. Any notices, consents, requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service during Contractor’s and City's regular business hours, or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to Contractor:
Attn: Public Works Dept. - Transportation Attn: Ying Kwan City of Covina FS Contractors, Inc.
125 E. College Street 14838 Bledsoe Street
Covina, California 91723 Sylmar, CA 91342
17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.
Contractor will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.
18. Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.
19. No Third-Party Beneficiaries Intended. Except as otherwise provided in Section 10, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.
20. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.
21. Exhibits. Exhibits A, B, C, and D constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.
22. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement.
23. Amendment of Agreement. This Agreement may be amended only by a writing signed by both parties. If the City Manager has entered into this Agreement on behalf of the City, the City Manager may approve an amendment to this Agreement and additional payment up to the amount of his contract authority. If this Agreement was originally approved by the City Council, then any amendments shall be approved by the City Council, except that the City Manager may approve amendments extending the time for performance, modifying the scope of work without any change to the maximum payment, approving a change in name of the Contractor, or terminating the Agreement.
24. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
25. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
26. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.
28. Attorneys’ Fees. In any litigation or other proceeding by which on party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgment.
29. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims.
All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Article 1.5 and Section 9204, as applicable, pursuant to the definition of "claim" as individually defined therein.
30. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
31. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City:
City of Covina,
a California municipal corporation
By:
Name: Chris Marcarello
Title: City Manager
ATTEST:
By:
Name: Fabian Velez
Title: Chief Deputy City Clerk
Contractor:
FS Contractors, Inc.
a California corporation
By:
Name:
Title:
By:
Name:
Title:
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents
authorize only one person to sign this
Agreement on behalf of the corporation.)
EXHIBIT A
SCOPE OF WORK AND PAYMENT SCHEDULE
EXHIBIT B
CALIFORNIA LABOR CODE COMPLIANCE
(Labor Code §§ 1720 et seq., 1813, 1860, 1861, 3700)
If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code, then:
1. This Agreement is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”) and Contractor agrees to be bound by all the provisions thereof as though set forth in full herein.
2. Contractor shall be registered with the Department of Industrial Relations (“DIR”) in accordance with California Labor Code Section 1725.5 and has provided proof of registration to City prior to the Effective Date of this Agreement.
3. Contractor shall comply with the provisions of California Labor Code Sections 1771, 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The applicable prevailing wage determination(s) may be obtained at (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm), are on file with City, and are available to any interested party upon request. Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under this Agreement by Contractor or by any subcontractor.
4. Pursuant to California Labor Code Section 1771.4, Contractor’s services are subject to compliance monitoring and enforcement by the Department of Industrial Relations.
Contractor shall post job site notices as prescribed by DIR regulations and agrees to furnish the records specified in California Labor Code Section 1776 directly to the Labor Commissioner in the manner prescribed by California Labor Code Section 1771.4(a)(3) and (c)(2).
5. Contractor shall comply with the provisions of California Labor Code Section 1776 which, among other things, require Contractor and each subcontractor to: (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform City of the location of the records. Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors.
6. Contractor shall comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.
7. Contractor shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor for each calendar day during which such
worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.
8. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”
Date _______________ Signature ____________________________________
EXHIBIT C
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
FY 2024-2025 BUS SHELTER INSTALLATION PROJECT – GRAND AVENUE AND
GLENDORA AVENUE
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this
amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
EXHIBIT D
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), State of California, has awarded to (“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
FY 2024-2025 BUS SHELTER INSTALLATION PROJECT – GRAND AVENUE AND
GLENDORA AVENUE
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars
($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of
its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
ATTACHMENT C
RESOLUTION CC 2025-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-2025 OPERATING BUDGET TO REFLECT A DECREASE OF $95,500 IN THE
PROPOSITION A BUDGET, AN APPROPRIATION OF $150,000 TO THE TRANSPORTATION CIP BUDGET, AND GRANT REVENUE OF $150,000
FROM THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
FOR THE FISCAL YEAR 2024-2025 BUS SHELTER INSTALLATION
PROJECT
WHEREAS, the City of Covina (“City”) is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the Fiscal Year 2024-2025 Operating Budget and Capital Improvement Program (CIP) Budget for the City of Covina was approved on June 4, 2024; and WHEREAS, the approved budget is in accordance with all applicable ordinance of the City and all applicable statues of the State; and
WHEREAS, on occasion, the City Council will deem it necessary to amend the Capital Improvement Program Budget to create a budget allocation to facilitate a project the City Council deems necessary and important; and
WHEREAS, those amendments (allocations) to the Budget shall be by approval and memorialized by Resolution of the City Council; and
WHEREAS, The City Council of the City of Covina wishes to amend the FY 2024-25 Capital Improvement Program Budget to reflect a decrease of $95,500 in the Proposition A Budget, an appropriation of $150,000 to the Transportation CIP, and grant revenue from the San Gabriel Valley Council of Governments for the Fiscal Year 2024-2025 Bus Shelter Installation Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the Fiscal Year 2024-2025 Capital Improvement Program Budget as follows:
Account No. Account Description Amount ($) Increase/Decrease 2400TO04-
55100
Prop A-Ops-Buildings
and Structures
$95,500 Decrease
43002200-
42600-P2515
Transportation CIPStreets-Other Grants$150,000 Increase 43002200-
55100-P2515
Transportation CIPStreets-Buildings and
Structures
$150,000 Increase
Resolution CC 2025-34 Page 2 of 2
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 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 2025-34 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
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: May 6, 2025
Title: Adopting the Barranca Ave. & Covina Blvd. Resurfacing Project from Workman Ave. to Cypress St. along Barranca Ave. and from Fairvale Ave. to Barranca Ave. along Covina Blvd. as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: Adopt Resolution CC 2025-32 adopting the Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects and reserving all FY 2025-2026 RMRA funds for project construction costs.
EXECUTIVE SUMMARY BACKGROUND:
Each year, the City receives transportation funding from the State of California, including grants and gas tax funds, through the Highway Users Tax Account (HUTA) for pavement rehabilitation improvement projects.
Senate Bill 1 (SB 1) created the Road Maintenance and Rehabilitation Account (RMRA) to address deferred roadway improvements throughout the State. Funds made available through the RMRA Program can be used as matching funds for State or Federal grant programs or the completion of a variety of road and safety improvement projects. As such, the Department of Public Works is proposing to augment the City’s current SB 1 Project List and allocate all available FY 2026 RMRA funds towards the completion of Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard.
DISCUSSION:
The Road Repair and Accountability Act of 2017 (SB 1) provides additional funding to cities for basic road maintenance, rehabilitation, and critical safety needs on highways and local streets. Program funds are allocated to the Road Maintenance and Rehabilitation Account (RMRA), and it is estimated that the program will produce approximately $1.50 billion statewide in FY 2026 of which the City will receive its annual distribution via a formula pursuant to Streets and Highways Code Section 2032. Under the current formula, the City is estimated to receive approximately $1,345,947 in FY 2026.
The SB 1 Program began distributing related revenue to Covina since November 2017, and pertinent funds can be utilized for the following improvements:
Road Maintenance and Rehabilitation
Safety Projects
Railroad Grade Separations
Traffic Control Devices
Complete Street Components, including active transportation projects, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects in conjunction with any other allowable project
Pursuant to SB 1 Program guidelines, the City must annually adopt an SB 1 Local Streets and Roads Funding Program Project List, via Resolution, to appropriate funds and subsequently, drawdown funds from the State.
Following adoption of the resolution, the City is able to expand the project list to include new eligible projects.
The City’s current SB 1 Project List was approved by the City Council on May 7, 2024, and included the following project:
West Badillo Street Resurfacing Project from North Azusa Avenue to North Lark Ellen Avenue Project
As proposed for FY 2026, the new Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard will entail the removal and replacement of deteriorated pavement, sidewalks, curbs/gutters, installation of Americans with Disabilities Act-compliant pedestrian improvements, median improvements, and signage/striping improvements. An estimated $1,735,597 in RMRA funds, comprised of the City’s FY2026 allocation and remaining fund balance from previously completed SB-1 projects, will be allocated to the Barranca Avenue & Covina Boulevard Resurfacing Project with an estimated total project cost of $1.735 million, including contingencies and construction management. The Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard will be completed within 90 calendar days and the estimated useful life of the project is approximately 15 years.
The anticipated implementation schedule for the Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard is as follows:
Project Design: July 2025 – September 2025
Award of Construction Project: November 2025
Start of Construction: January 2026
Completion of Construction: March 2026
A key requirement of SB 1 is that proposed projects submitted to the California Transportation Commission (CTC) must be adopted by the governing board at a regular public meeting. The list of projects must include a description and location of the project, a proposed schedule for the project’s completion, and the estimated useful life of the improvements. This action will fulfill this requirement and as proposed, staff will submit an updated project list to the CTC no later than July 1, 2025.
FISCAL IMPACT:
There is no fiscal impact to the City associated with approval of Resolution CC 2025-32 (Attachment A). An appropriation in FY26 RMRA funds for the Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard will be included in the Fiscal Year 2026 Capital Improvement Program and the Fiscal Year 2026 Capital Improvement Program Budget.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2025-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2025-2026 LOCAL
STREETS AND ROADS FUNDING PROGRAM PROJECT LIST,
FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT
OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Covina are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Covina must adopt an annual list of projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Covina is scheduled to receive an estimated $1,345,947 in Fiscal Year 2025-2026 (FY 2026) from SB 1; and
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects; and WHEREAS, the funding from SB 1 will help the City of Covina rehabilitate 1.75 miles of Barranca Avenue, from Workman Avenue to Cypress Street and Covina Boulevard from Fairvale Avenue to Barranca Avenue, and to provide for hundreds of similar projects in the future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City of Covina’s streets and roads are in a “good” condition, and this revenue will help to increase the overall quality of our road system; and WHEREAS, the Fiscal Year 2025-2026 SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in
Resolution CC 2025-32 Page 2 of 3
complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The following proposed projects will be funded in-part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues:
Project Name: Barranca Avenue & Covina Boulevard Resurfacing Project Description: Existing pavement on Barranca Avenue and Covina Boulevard is in poor condition at a point of deterioration.
The overlay project will improve the pavement surface and extend the overall life of the pavement. Estimated total project cost is approximately $1.73 million, including
contingencies and construction management. The project
will be completed within 90 calendar days.
Location: Barranca Avenue, from Workman Avenue to Cypress Street and Covina Boulevard from Fairvale Avenue to
Barranca Avenue
Estimated Project Schedule: Start (July 2025) – Completion (March 2026) Estimated Useful Life: 15 years
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
Resolution CC 2025-32 Page 3 of 3
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-32 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
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: May 6, 2025
Title: Request to Cancel the Regular City Council Meeting of May 20, 2025 Presented by: Chris Marcarello, City Manager
Recommendation: That the City Council consider cancelling the regular scheduled City Council Meeting of May 20, 2025.
DISCUSSION:
The City Council has legal authority to establish meeting dates and times and to cancel or reschedule such meetings with proper and timely public notice. Due to an anticipated lack of quorum, it is recommended that the City Council consider cancelling the meeting of May 20, 2025, and direct the City Clerk’s Office to post the required notice of cancellation.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: May 6, 2025
Title: Investment Policies for Fiscal Year 2025-2026 for the City of Covina and Successor Agency to the Covina Redevelopment Agency
Presented by: Theresa Franke, Interim Finance Director
Recommendation: Adopt Resolution CC 2025-31 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2025-2026 and adopt Successor Agency Resolution SA 2025-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2025- 2026.
EXECUTIVE SUMMARY:
An investment policy serves as the foundation for the City’s investment goals and priorities. Pursuant to Section 53646 of the Government Code, the Chief Fiscal Officer may annually render the investment policy to the City Council. The general purpose is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals.
DISCUSSION:
In accordance with legislative recommendation and in keeping with industry best practices, the City of Covina’s Director of Finance annually reviews the City’s/Agency’s investment policies and submits the policies for Council adoption. This process helps to ensure that the policies meet the City’s primary investment objectives of safety, liquidity, and return on investment. In addition, annual reviews confirm that the policies are in compliance with the California Government Code and other relevant legislation, statutes, and laws.
The 2025-2026 Investment Policies for the City of Covina and the Successor Agency have no changes from those approved by the City Council last year and are attached as Exhibit A to the resolutions. Adoption of the investment policy at the start of the fiscal year does not preclude the City Council from amending the policy at any time during the fiscal year.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2025-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, ADOPTING AN INVESTMENT POLICY FOR THE
CITY’S INVESTMENT PORTFOLIO FOR FISCAL YEAR 2025-2026
WHEREAS, the City Council wishes to clarify and establish investment policies to guide the City Treasurer, City Manager, Finance Director, and City staff regarding City investments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Investments of City funds shall be made in accordance with the Statement of Investment Policy attached hereto as Exhibit A, and made a part hereof.
SECTION 2. The policies adopted by this resolution are in addition to and supplement any other legal requirements.
SECTION 3. This resolution shall take effect and be in force immediately upon adoption.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 6th day of May, 2025.
City of Covina, California
BY:
VICTOR LINARES, Mayor
ATTEST:
FABIAN VELEZ, Chief Deputy City Clerk
Resolution CC 2025-31 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-31 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
EXHIBIT A
1 CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY
STATEMENT OF INVESTMENT POLICY
PURPOSE:
A. This Investment Policy is set forth by the City of Covina and Successor Agency to the Covina Redevelopment Agency (collectively “City”) for the following purposes:
1. To establish a clear understanding for the Council, City management, responsible employees, and third parties of the objectives, policies, and guidelines for the investment of the City’s idle and surplus funds.
2. To offer guidance to investment staff and any outside advisers on the investment of City funds.
3. To establish a basis for evaluating investment results.
B. The general purpose of this Investment Policy is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals. It is intended to be sufficiently specific to be meaningful, yet adequately flexible to be practical.
C. By adoption of this Investment Policy, the City Council also delegates its authority to invest and reinvest City funds, or to sell or exchange securities so purchased, to the City Mayor/City Council, upon recommendation of the City Treasurer, City Manager and Finance Director, for a period of one year. Pursuant to Section 53607 of the Government Code, any renewal of such delegation shall be made by, and at the discretion of, the City Council each year after review.
D. The City’s Mayor/City Council may enlist help of staff or a contract investment manager to fulfill such delegated investment duties, but the City’s Mayor/City Council must exercise prudence in the selection of any contract investment manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager and staff, and the City’s Mayor/City Council remains responsible for any investment decisions made by contract investment manager or staff designated by the City Mayor/City Council in such delegated investment duties.
POLICY
It is the policy of the City to invest public funds in a manner that will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.
1.0 SCOPE:
This Investment Policy applies to all cash assets of the City. Cash assets held by the City shall be pooled in order to manage the City’s cash resources effectively. All pooled cash assets are accounted for in the City’s Annual Comprehensive Financial Report and include the following funds:
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
2 FUNDS:
1.1.1 General Fund
1.1.2 Special Revenue Funds
1.1.3 Debt Service Funds
1.1.4 Capital Projects Funds
1.1.5 Enterprise Funds
1.1.6 Internal Service Funds
1.1.7 Trust and Agency Funds
The scope of this investment policy does not extend to cash assets held by fiscal agents, deferred compensation cash assets or other cash assets over which the City does not exercise specific control.
2.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. This standard requires all investment officials, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, to act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law and this Investment Policy.
3.0 OBJECTIVES:
The primary objectives, in priority order, of the City’s investment activities shall be:
3.1 Safety. Maintaining the principal value of assets entrusted to the City is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by limiting investment risk in the portfolio. Additionally, since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets.
3.1.1 Credit Risk. The City will minimize credit risk, the risk of loss due to financial failure of the security issuer or backer by:
• Limiting exposure to poor credits and concentrating investments in the safest type of securities.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors that the City will do business with.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
3 • Diversifying the investment portfolio so that the potential losses on individual investments will be minimized.
• Actively monitoring the investment portfolio for ratings changes, changing economic/market conditions, etc.
3.1.2 Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:
• Structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market prior to maturity.
• Investing operating funds primarily in shorter-term securities or short-term investment pools.
3.2 Liquidity. The City’s investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).
3.3 Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The majority of the portfolio is limited to highly rated/low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal. • A security swap would improve the quality, yield, or target duration in the portfolio.
• Liquidity needs of the portfolio require that the security be sold.
4.0 REPORTING:
In accordance with amended Section 53646 of the Government Code, the City Treasurer/Finance Director will annually review the investment policy and render the policy to the City Council. Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.
Pursuant to Section 53646 of the Government Code, the City Treasurer/Finance Director shall render a report to the City Council and City Manager, containing detailed information on all securities, investments, and moneys of the City. The report will be submitted on a quarterly basis and be provided to the Council within 30 days following the end of the quarter.
The report will contain the following information on the funds that are subject to this investment policy: 1) the type of investment, name of the issuer, date of maturity, par and dollar amount invested on all securities in each investment; 2) any investments, including loans and security lending programs, that are under the management of contracted parties; 3) for all securities held by
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
4 the City and under management of any outside party that is also a local agency or Local Agency Investment Fund, the current market value as of the date of the report, and source of this valuation; 4) a statement of the portfolio’s compliance with the City’s investment policy, or manner in which the portfolio is not in compliance; and 5) a statement denoting the City’s ability to meet its pools expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.
The City Treasurer/Finance Director shall make a monthly report of any investment transactions to the City Council, in accordance with Section 53607 of the Government Code.
To the extent the City has funds invested in County investment pools the City Treasurer/Finance Director shall request copies of all the investment reports generated by the Counties pursuant to Government Code Section 27133 and the annual audit required by Government Code Section 27134. The investment report shall reflect a summary of these reports and audits.
5.0 INTERNAL CONTROL:
The Finance Director is responsible for establishing and maintaining an adequate internal control structure designed to reasonably protect the assets of the City from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
Accordingly, the Finance Director shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
Control of collusion.
• Separation of transaction authority from accounting and record keeping. • Custodial safekeeping.
• Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. • Clear delegation of authority to subordinate staff members. • Written confirmation of transactions for investments and wire transfers. • Development of a wire transfer agreement with the lead bank and third-party custodian and implementation of the appropriate safeguards described in the GFOA Recommended Practice on "Electronic Transactions for State and Local Governments."
• Compliance and oversight with investment parameters including diversification and maximum maturities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
5 6.0 EXTERNAL AUDIT:
On at least an annual basis the City shall have an external auditor review the City’s investments and provide an opinion to the City in respect to the City’s compliance with this Investment Policy.
7.0 QUALIFIED DEALERS AND INSTITUTIONS:
The City shall transact business only with those banks, savings and loans, registered investment securities dealers, and authorized representatives of investment pools, as authorized by the California Government Code Section 53600 et seq. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a savings association or federal association (as defined by Section 5102 of the Financial Code), or a brokerage firm designed as a Primary Government Dealer by the Federal Reserve Bank. The Mayor/City Council’s staff shall review all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement.
8.0 AUTHORIZED INVESTMENTS AND DIVERSIFICATION REQUIREMENTS:
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described in the “Permitted Investments” section of this Investment Policy.
The book value of the security will be used when calculating diversity compliance.
8.1 PERMITTED INVESTMENTS under this policy are summarized on Attachment I and shall include:
8.1.1 Securities, including participations or other instruments, issued by and fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a United States government-sponsored enterprise, or for which the faith and credit of the United States are pledged for payment of principal and interest. Permitted securities shall have stated final maturity which does not exceed five years from the date of purchase.
8.1.2 Commercial paper of “prime” quality rated a minimum of P-1 by Moody’s Investor Services (Moody’s) or A-1 by S&P Global Ratings (S&P) provided that:
(a) the maturity does not exceed 180 days from the date of purchase; (b) the issuer is a special purpose corporation, trust, or limited liability company organized and operating in the United States with assets in excess of $500 million; debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO); and program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) no more than 15 percent of the City’s portfolio is invested in commercial paper; and (d) City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
6 8.1.3 Banker’s acceptance of “prime” quality issued by institutions the short-term obligations of which are rated a minimum P-1 by Moody’s or A-1 by S&P provided that: (a) the acceptances are eligible for purchase by the Federal Reserve system; (b) the maturity does not exceed 180 days; and (c) no more than 20 percent of the City’s total portfolio may be invested in banker’s acceptances.
8.1.4 Medium-term (or corporate) notes with fixed coupons and stated final maturity, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, the long-term obligations of which are rated at least AAby S&P or Aa- by Moody’s. No more than 10 percent of the City’s portfolio may be invested in eligible medium-term or corporate notes. The maximum maturity of medium-term corporate notes is five (5) years. Investments in medium-term notes issued by agencies of the Federal Government are governed by Section 8.1.1 of this policy.
8.1.5 Mutual funds that are registered as money market funds with the U.S. Securities and Exchange Commission, invested in U.S. Government securities, and strive to maintain a price of $1.00 per share (“Government money market funds”) and have in excess of $500 million in total portfolio value and a rating of Aaa by Moody’s and AAA by S&P. Investment in such funds shall not exceed ten percent (10%) of the City’s total portfolio.
8.1.6 Certificates of deposit (CDs) with fixed coupons and stated final maturity which does not exceed five (5) years from date of purchase.
8.1.6.1 Insured deposits, time deposits not exceeding $250,000, shall be permitted only in those financial institutions that are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) and also are a state or national bank, savings association, federal association, or credit union. Total insured deposits may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.6.2 Secured (collateralized) time deposits shall be permitted only in those financial institutions meeting the following criteria: (a) in good standing with the California State Collateral Pool; (b) are a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) having long-term debt currently rated A- or higher by S&P or A-3 or higher by Moody’s; or having short-term debt rated at least A-1 by S&P or P-1 by Moody’s. Total secured time deposits may not exceed ten percent (10%) of the City’s total portfolio.
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the purpose of securing local agency deposits and which have a market
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
7 value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Unsecured (negotiable) deposits (NCDs) shall be permitted only in those financial institutions meeting the criteria listed in Subsection 8.1.6.2 and which are also a nationally or state-chartered bank, a savings association or a federal association (as defined in Section 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion. Total NCDs may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.7 Local Agency Investment Funds (LAIF) administered by the State Treasurer’s Office.
8.1.8 Passbook accounts that are maintained solely to provide for ongoing operational needs should be subject to the requirements of this policy.
8.1.9 Municipal Securities include obligations of the City, the State of California, any local agency within the State of California, and any of the other 49 states in addition to California as described below. Permitted securities must be in a rating category of “A” or its equivalent or better by a nationally recognized statistical rating organization (NRSRO). No more than 5% of the portfolio may be invested in any single issuer; no more than 30% of the portfolio may be in Municipal Securities; permitted securities shall have stated final maturity which does not exceed five (5) years from the date of purchase unless, in accordance with Government Code Section 53601, the City Council has granted express authority to make such investment with a longer maturity either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
8.1.9.1 City Bonds – Bonds, notes, warrants, or other evidence of indebtedness of the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City.
8.1.9.2 State Securities – Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
8 8.1.9.3 Obligations of Other Local Agencies – Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Obligations of Other States – Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements. Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement.
8.2 Prohibited Investments. Investments not specifically delineated in Section 8.1 are prohibited. Prohibited investments include, but are not limited to:
8.2.1 Collateralized mortgage obligations, unless issued by a federal agency of the U.S.
Government or a United States government-sponsored enterprise and meeting the criteria set forth in Section 8.1.1 of this Investment Policy.
8.2.2 Repurchase agreements and reverse repurchase agreements.
8.2.3 Futures and options.
8.3 Securities may be sold at a loss in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal or when trading for securities that result in an expected net economic gain to the City.
If both Moody’s and S&P downgrade securities owned by the City to a level below the quality required by this Investment Policy, it shall be the City’s policy to sell such securities promptly.
9.0 INVESTMENT POLICY ADOPTION:
The City’s Investment Policy shall be adopted by resolution of the City Council of the City of Covina. The policy shall be reviewed each fiscal year, and any modifications thereto must be approved by the City Council.
10.0 CONFLICT OF INTEREST:
Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Political Reform Act, (California Government Code Section 8100 et seq., and 2 Cal. Code of Regs. 18110 et seq., (the “PRA”)) and the provisions limiting contractual conflicts of interest under California Government Code Section 1090 et seq. Any firm proposing to provide any type of investment service to the City shall also acknowledge their
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
9 familiarity with and agree to abide by any federal or State law, regulation, rule, or policy pertaining to or limiting campaign contributions by such firms, their employees, spouses, and agents.
The provisions of the PRA shall continue to apply to require disclosure and disqualification by any City official or employee and shall apply to require disclosure of the same by any candidate for City office.
All persons, firms, dealers, brokers, and advisors providing investment service or bond issue assistance shall disclose to the City Manager and Finance Director all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment, or issuing bonds.
ATTACHMENT I
CITY OF COVINA PERMITTED INVESTMENTS
1 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.1 Securities Issued By the
US Gov’t, a federal
agency of the US Gov’t,
or a US Gov’t-sponsored
enterprise
(b) & (f) • No
Maximum
5 years from
date of
purchase
Shall have stated final maturity which does not exceed five (5) years from date of purchase.
Must be fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a U.S. government-sponsored enterprise; or include a pledge of the faith and credit of the United States for payment of principal and interest
8.1.2 Commercial Paper (h) 15% 180 days
from the
date of
purchase
“prime” quality
rated a
minimum of P1 (Moody’s) or
A-1 (S&P)
Must be issued by a special purpose corporation, trust, or limited liability company organized and operating in the United States with:
• assets in excess of $500 million
• Debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO)
• Program-wide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or a surety bond
City may not purchase more than 10% of the outstanding
commercial paper of any single issuer.
8.1.3 Banker’s Acceptance (g) 20% 180 days “prime” quality Must be eligible for purchase by the Federal Reserve system Must be issued by institutions the short-term obligations of which are rated a minimum P1 (Moody’s) or A1 (S&P)
8.1.4 Medium-term (or
corporate) notes issued by
corporations organized
and operating within the
US or by depository
institutions licensed by
the US or any state and
operating within the US
(k) 10% 5 years Must have fixed coupons and stated final maturity Must be issued by institutions the long-term obligations of which are rated at least AA- (S&P) or Aa- (Moody’s)
Investments in medium-term notes issued by agencies of the Federal Gov’t are governed by Section 8.1.1 of City’s
Investment Policy
CITY OF COVINA PERMITTED INVESTMENTS
2 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.5 Mutual funds that are
registered as money
market funds with the US
Securities and Exchange
Commission, invested in
US Govt securities, and
strive to maintain a price
of $1.00/share and have
in excess of $500 million
in total portfolio value
(l)(2)&(4) 10% Aaa (Moody’s)
and AAA
(S&P)
8.1.6.1 Certificates of Deposit
(CDs) with stated final
maturity date – Insured
Deposits, time deposits ≤
$250,000
CA Govt.
Code
§ 53630 et
seq
(53632(a),
53633,
53635.2 &
53653)
30% 5 years Financial institutions must be insured by either the FDIC or NCUSIF.
Must also be a state or national bank, savings association, federal association, or credit union.
8.1.6.2 Certificates of Deposit
(CDs) with stated final
maturity date – Secured
(collateralized) time
deposits
(n)
CA Govt.
Code
§ 53630 et
seq
(53632(a),
53633,
53635.2,
53652 &
53656)
10% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; (b) be a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have shortterm debt rated at least A-1 (S&P) or P-1 (Moody’s).
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the
Government Code as eligible securities for the purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by
CITY OF COVINA PERMITTED INVESTMENTS
3 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Certificates of Deposit
(CDs) with fixed coupons
and fixed maturity –
Unsecured (negotiable)
deposits (NCDs)
(i) 30% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; and (b) having a net operating profit in the two (2) most recently completed years; and (c) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have short-term debt rated at least A-1 (S&P) or P-1 (Moody’s).
Must also be a nationally or state-chartered bank, a savings association or a federal association (as defined in Sec 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion.
8.1.7 Local Agency Investment
Funds (LAIF)
administered by the State
Treasurer’s Office
CA Govt.
Code
§ 16429.1
et seq
As permitted by
LAIF
N/A N/A
8.1.8 Passbook accounts that
are maintained solely to
provide for ongoing
operational needs are
subject to the
requirements of this
policy
CA Govt.
Code
§ 53630 et
seq
CITY OF COVINA PERMITTED INVESTMENTS
4 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.9.1 Municipal Securities: City
Bonds
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Bonds, notes, warrants, or other evidence of indebtedness of the City including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or a department, board, agency, or authority of the City.
8.1.9.2 Municipal Securities:
State Securities
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Municipal Securities:
Obligations of Other
Local Agencies
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Municipal Securities:
Obligations of Other
States
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
CITY OF COVINA PERMITTED INVESTMENTS
5 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.10 Legal settlements – Any
noncash financial
instrument, promissory
note or other form of
indebtedness acquired by
the City as part of a legal
settlement
ATTACHMENT B
RESOLUTION SA 2025-02
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY OF THE CITY OF COVINA,
CALIFORNIA, ADOPTING AN INVESTMENT POLICY FOR THE
SUCCESSOR AGENCY’S INVESTMENT PORTFOLIO FOR FISCAL
YEAR 2025-2026
WHEREAS, the Successor Agency Board wishes to clarify and establish investment policies to guide the City Treasurer, City Manager, Finance Director, and City staff regarding Agency investments.
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Investments of Agency funds shall be made in accordance with the Statement of Investment Policy attached hereto as Exhibit A, and made a part hereof.
SECTION 2. The policies adopted by this resolution are in addition to and supplement any other legal requirements.
SECTION 3. This resolution shall take effect and be in force immediately upon adoption.
SECTION 4. The Agency Secretary shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 6th day of May, 2025.
Successor Agency to the Covina
Redevelopment Agency of Covina,
California
BY:
VICTOR LINARES, Chair
ATTEST:
FABIAN VELEZ, Agency Secretary
Resolution SA 2025-02 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Secretary of the Successor Agency to the Covina Redevelopment Agency, do hereby certify that Resolution SA 2025-02 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: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Dated:
FABIAN VELEZ, Agency Secretary
EXHIBIT A
1 CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY
STATEMENT OF INVESTMENT POLICY
PURPOSE:
A. This Investment Policy is set forth by the City of Covina and Successor Agency to the Covina Redevelopment Agency (collectively “City”) for the following purposes:
1. To establish a clear understanding for the Council, City management, responsible employees, and third parties of the objectives, policies, and guidelines for the investment of the City’s idle and surplus funds.
2. To offer guidance to investment staff and any outside advisers on the investment of City funds.
3. To establish a basis for evaluating investment results.
B. The general purpose of this Investment Policy is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals. It is intended to be sufficiently specific to be meaningful, yet adequately flexible to be practical.
C. By adoption of this Investment Policy, the City Council also delegates its authority to invest and reinvest City funds, or to sell or exchange securities so purchased, to the City Mayor/City Council, upon recommendation of the City Treasurer, City Manager and Finance Director, for a period of one year. Pursuant to Section 53607 of the Government Code, any renewal of such delegation shall be made by, and at the discretion of, the City Council each year after review.
D. The City’s Mayor/City Council may enlist help of staff or a contract investment manager to fulfill such delegated investment duties, but the City’s Mayor/City Council must exercise prudence in the selection of any contract investment manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager and staff, and the City’s Mayor/City Council remains responsible for any investment decisions made by contract investment manager or staff designated by the City Mayor/City Council in such delegated investment duties.
POLICY
It is the policy of the City to invest public funds in a manner that will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.
1.0 SCOPE:
This Investment Policy applies to all cash assets of the City. Cash assets held by the City shall be pooled in order to manage the City’s cash resources effectively. All pooled cash assets are accounted for in the City’s Annual Comprehensive Financial Report and include the following funds:
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
2 FUNDS:
1.1.1 General Fund
1.1.2 Special Revenue Funds
1.1.3 Debt Service Funds
1.1.4 Capital Projects Funds
1.1.5 Enterprise Funds
1.1.6 Internal Service Funds
1.1.7 Trust and Agency Funds
The scope of this investment policy does not extend to cash assets held by fiscal agents, deferred compensation cash assets or other cash assets over which the City does not exercise specific control.
2.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio. This standard requires all investment officials, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, to act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law and this Investment Policy.
3.0 OBJECTIVES:
The primary objectives, in priority order, of the City’s investment activities shall be:
3.1 Safety. Maintaining the principal value of assets entrusted to the City is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by limiting investment risk in the portfolio. Additionally, since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets.
3.1.1 Credit Risk. The City will minimize credit risk, the risk of loss due to financial failure of the security issuer or backer by:
• Limiting exposure to poor credits and concentrating investments in the safest type of securities.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors that the City will do business with.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
3 • Diversifying the investment portfolio so that the potential losses on individual investments will be minimized.
• Actively monitoring the investment portfolio for ratings changes, changing economic/market conditions, etc.
3.1.2 Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:
• Structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market prior to maturity.
• Investing operating funds primarily in shorter-term securities or short-term investment pools.
3.2 Liquidity. The City’s investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).
3.3 Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The majority of the portfolio is limited to highly rated/low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
• A security with declining credit may be sold early to minimize loss of principal. • A security swap would improve the quality, yield, or target duration in the portfolio.
• Liquidity needs of the portfolio require that the security be sold.
4.0 REPORTING:
In accordance with amended Section 53646 of the Government Code, the City Treasurer/Finance Director will annually review the investment policy and render the policy to the City Council. Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.
Pursuant to Section 53646 of the Government Code, the City Treasurer/Finance Director shall render a report to the City Council and City Manager, containing detailed information on all securities, investments, and moneys of the City. The report will be submitted on a quarterly basis and be provided to the Council within 30 days following the end of the quarter.
The report will contain the following information on the funds that are subject to this investment policy: 1) the type of investment, name of the issuer, date of maturity, par and dollar amount invested on all securities in each investment; 2) any investments, including loans and security lending programs, that are under the management of contracted parties; 3) for all securities held by
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
4 the City and under management of any outside party that is also a local agency or Local Agency Investment Fund, the current market value as of the date of the report, and source of this valuation; 4) a statement of the portfolio’s compliance with the City’s investment policy, or manner in which the portfolio is not in compliance; and 5) a statement denoting the City’s ability to meet its pools expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.
The City Treasurer/Finance Director shall make a monthly report of any investment transactions to the City Council, in accordance with Section 53607 of the Government Code.
To the extent the City has funds invested in County investment pools the City Treasurer/Finance Director shall request copies of all the investment reports generated by the Counties pursuant to Government Code Section 27133 and the annual audit required by Government Code Section 27134. The investment report shall reflect a summary of these reports and audits.
5.0 INTERNAL CONTROL:
The Finance Director is responsible for establishing and maintaining an adequate internal control structure designed to reasonably protect the assets of the City from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
Accordingly, the Finance Director shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
Control of collusion.
• Separation of transaction authority from accounting and record keeping. • Custodial safekeeping.
• Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. • Clear delegation of authority to subordinate staff members. • Written confirmation of transactions for investments and wire transfers. • Development of a wire transfer agreement with the lead bank and third-party custodian and implementation of the appropriate safeguards described in the GFOA Recommended Practice on "Electronic Transactions for State and Local Governments."
• Compliance and oversight with investment parameters including diversification and maximum maturities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
5 6.0 EXTERNAL AUDIT:
On at least an annual basis the City shall have an external auditor review the City’s investments and provide an opinion to the City in respect to the City’s compliance with this Investment Policy.
7.0 QUALIFIED DEALERS AND INSTITUTIONS:
The City shall transact business only with those banks, savings and loans, registered investment securities dealers, and authorized representatives of investment pools, as authorized by the California Government Code Section 53600 et seq. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a savings association or federal association (as defined by Section 5102 of the Financial Code), or a brokerage firm designed as a Primary Government Dealer by the Federal Reserve Bank. The Mayor/City Council’s staff shall review all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement.
8.0 AUTHORIZED INVESTMENTS AND DIVERSIFICATION REQUIREMENTS:
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described in the “Permitted Investments” section of this Investment Policy.
The book value of the security will be used when calculating diversity compliance.
8.1 PERMITTED INVESTMENTS under this policy are summarized on Attachment I and shall include:
8.1.1 Securities, including participations or other instruments, issued by and fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a United States government-sponsored enterprise, or for which the faith and credit of the United States are pledged for payment of principal and interest. Permitted securities shall have stated final maturity which does not exceed five years from the date of purchase.
8.1.2 Commercial paper of “prime” quality rated a minimum of P-1 by Moody’s Investor Services (Moody’s) or A-1 by S&P Global Ratings (S&P) provided that:
(a) the maturity does not exceed 180 days from the date of purchase; (b) the issuer is a special purpose corporation, trust, or limited liability company organized and operating in the United States with assets in excess of $500 million; debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO); and program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) no more than 15 percent of the City’s portfolio is invested in commercial paper; and (d) City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
6 8.1.3 Banker’s acceptance of “prime” quality issued by institutions the short-term obligations of which are rated a minimum P-1 by Moody’s or A-1 by S&P provided that: (a) the acceptances are eligible for purchase by the Federal Reserve system; (b) the maturity does not exceed 180 days; and (c) no more than 20 percent of the City’s total portfolio may be invested in banker’s acceptances.
8.1.4 Medium-term (or corporate) notes with fixed coupons and stated final maturity, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, the long-term obligations of which are rated at least AAby S&P or Aa- by Moody’s. No more than 10 percent of the City’s portfolio may be invested in eligible medium-term or corporate notes. The maximum maturity of medium-term corporate notes is five (5) years. Investments in medium-term notes issued by agencies of the Federal Government are governed by Section 8.1.1 of this policy.
8.1.5 Mutual funds that are registered as money market funds with the U.S. Securities and Exchange Commission, invested in U.S. Government securities, and strive to maintain a price of $1.00 per share (“Government money market funds”) and have in excess of $500 million in total portfolio value and a rating of Aaa by Moody’s and AAA by S&P. Investment in such funds shall not exceed ten percent (10%) of the City’s total portfolio.
8.1.6 Certificates of deposit (CDs) with fixed coupons and stated final maturity which does not exceed five (5) years from date of purchase.
8.1.6.1 Insured deposits, time deposits not exceeding $250,000, shall be permitted only in those financial institutions that are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) and also are a state or national bank, savings association, federal association, or credit union. Total insured deposits may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.6.2 Secured (collateralized) time deposits shall be permitted only in those financial institutions meeting the following criteria: (a) in good standing with the California State Collateral Pool; (b) are a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) having long-term debt currently rated A- or higher by S&P or A-3 or higher by Moody’s; or having short-term debt rated at least A-1 by S&P or P-1 by Moody’s. Total secured time deposits may not exceed ten percent (10%) of the City’s total portfolio.
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the purpose of securing local agency deposits and which have a market
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
7 value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Unsecured (negotiable) deposits (NCDs) shall be permitted only in those financial institutions meeting the criteria listed in Subsection 8.1.6.2 and which are also a nationally or state-chartered bank, a savings association or a federal association (as defined in Section 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion. Total NCDs may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.7 Local Agency Investment Funds (LAIF) administered by the State Treasurer’s Office.
8.1.8 Passbook accounts that are maintained solely to provide for ongoing operational needs should be subject to the requirements of this policy.
8.1.9 Municipal Securities include obligations of the City, the State of California, any local agency within the State of California, and any of the other 49 states in addition to California as described below. Permitted securities must be in a rating category of “A” or its equivalent or better by a nationally recognized statistical rating organization (NRSRO). No more than 5% of the portfolio may be invested in any single issuer; no more than 30% of the portfolio may be in Municipal Securities; permitted securities shall have stated final maturity which does not exceed five (5) years from the date of purchase unless, in accordance with Government Code Section 53601, the City Council has granted express authority to make such investment with a longer maturity either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
8.1.9.1 City Bonds – Bonds, notes, warrants, or other evidence of indebtedness of the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City.
8.1.9.2 State Securities – Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
8 8.1.9.3 Obligations of Other Local Agencies – Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Obligations of Other States – Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements. Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement.
8.2 Prohibited Investments. Investments not specifically delineated in Section 8.1 are prohibited. Prohibited investments include, but are not limited to:
8.2.1 Collateralized mortgage obligations, unless issued by a federal agency of the U.S.
Government or a United States government-sponsored enterprise and meeting the criteria set forth in Section 8.1.1 of this Investment Policy.
8.2.2 Repurchase agreements and reverse repurchase agreements.
8.2.3 Futures and options.
8.3 Securities may be sold at a loss in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal or when trading for securities that result in an expected net economic gain to the City.
If both Moody’s and S&P downgrade securities owned by the City to a level below the quality required by this Investment Policy, it shall be the City’s policy to sell such securities promptly.
9.0 INVESTMENT POLICY ADOPTION:
The City’s Investment Policy shall be adopted by resolution of the City Council of the City of Covina. The policy shall be reviewed each fiscal year, and any modifications thereto must be approved by the City Council.
10.0 CONFLICT OF INTEREST:
Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Political Reform Act, (California Government Code Section 8100 et seq., and 2 Cal. Code of Regs. 18110 et seq., (the “PRA”)) and the provisions limiting contractual conflicts of interest under California Government Code Section 1090 et seq. Any firm proposing to provide any type of investment service to the City shall also acknowledge their
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2025-2026 (Continued)
9 familiarity with and agree to abide by any federal or State law, regulation, rule, or policy pertaining to or limiting campaign contributions by such firms, their employees, spouses, and agents.
The provisions of the PRA shall continue to apply to require disclosure and disqualification by any City official or employee and shall apply to require disclosure of the same by any candidate for City office.
All persons, firms, dealers, brokers, and advisors providing investment service or bond issue assistance shall disclose to the City Manager and Finance Director all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment, or issuing bonds.
ATTACHMENT I
CITY OF COVINA PERMITTED INVESTMENTS
1 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.1 Securities Issued By the
US Gov’t, a federal
agency of the US Gov’t,
or a US Gov’t-sponsored
enterprise
(b) & (f) • No
Maximum
5 years from
date of
purchase
Shall have stated final maturity which does not exceed five (5) years from date of purchase.
Must be fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a U.S. government-sponsored enterprise; or include a pledge of the faith and credit of the United States for payment of principal and interest
8.1.2 Commercial Paper (h) 15% 180 days
from the
date of
purchase
“prime” quality
rated a
minimum of P1 (Moody’s) or
A-1 (S&P)
Must be issued by a special purpose corporation, trust, or limited liability company organized and operating in the United States with:
• assets in excess of $500 million
• Debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO)
• Program-wide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or a surety bond
City may not purchase more than 10% of the outstanding
commercial paper of any single issuer.
8.1.3 Banker’s Acceptance (g) 20% 180 days “prime” quality Must be eligible for purchase by the Federal Reserve system Must be issued by institutions the short-term obligations of which are rated a minimum P1 (Moody’s) or A1 (S&P)
8.1.4 Medium-term (or
corporate) notes issued by
corporations organized
and operating within the
US or by depository
institutions licensed by
the US or any state and
operating within the US
(k) 10% 5 years Must have fixed coupons and stated final maturity Must be issued by institutions the long-term obligations of which are rated at least AA- (S&P) or Aa- (Moody’s)
Investments in medium-term notes issued by agencies of the Federal Gov’t are governed by Section 8.1.1 of City’s
Investment Policy
CITY OF COVINA PERMITTED INVESTMENTS
2 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.5 Mutual funds that are
registered as money
market funds with the US
Securities and Exchange
Commission, invested in
US Govt securities, and
strive to maintain a price
of $1.00/share and have
in excess of $500 million
in total portfolio value
(l)(2)&(4) 10% Aaa (Moody’s)
and AAA
(S&P)
8.1.6.1 Certificates of Deposit
(CDs) with stated final
maturity date – Insured
Deposits, time deposits ≤
$250,000
CA Govt.
Code
§ 53630 et
seq
(53632(a),
53633,
53635.2 &
53653)
30% 5 years Financial institutions must be insured by either the FDIC or NCUSIF.
Must also be a state or national bank, savings association, federal association, or credit union.
8.1.6.2 Certificates of Deposit
(CDs) with stated final
maturity date – Secured
(collateralized) time
deposits
(n)
CA Govt.
Code
§ 53630 et
seq
(53632(a),
53633,
53635.2,
53652 &
53656)
10% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; (b) be a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have shortterm debt rated at least A-1 (S&P) or P-1 (Moody’s).
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the
Government Code as eligible securities for the purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by
CITY OF COVINA PERMITTED INVESTMENTS
3 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Certificates of Deposit
(CDs) with fixed coupons
and fixed maturity –
Unsecured (negotiable)
deposits (NCDs)
(i) 30% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; and (b) having a net operating profit in the two (2) most recently completed years; and (c) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have short-term debt rated at least A-1 (S&P) or P-1 (Moody’s).
Must also be a nationally or state-chartered bank, a savings association or a federal association (as defined in Sec 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion.
8.1.7 Local Agency Investment
Funds (LAIF)
administered by the State
Treasurer’s Office
CA Govt.
Code
§ 16429.1
et seq
As permitted by
LAIF
N/A N/A
8.1.8 Passbook accounts that
are maintained solely to
provide for ongoing
operational needs are
subject to the
requirements of this
policy
CA Govt.
Code
§ 53630 et
seq
CITY OF COVINA PERMITTED INVESTMENTS
4 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.9.1 Municipal Securities: City
Bonds
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Bonds, notes, warrants, or other evidence of indebtedness of the City including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or a department, board, agency, or authority of the City.
8.1.9.2 Municipal Securities:
State Securities
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Municipal Securities:
Obligations of Other
Local Agencies
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Municipal Securities:
Obligations of Other
States
(a), (c),
(d), (e)
30% total
(5% in any
single issuer)
5 years,
unless
otherwise
granted in
accordance
with Govt
Code Sec
53601
“A” or
equivalent
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned,
controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
CITY OF COVINA PERMITTED INVESTMENTS
5 City
Investment
Policy
Section
Authorized Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage of
City’s Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.10 Legal settlements – Any
noncash financial
instrument, promissory
note or other form of
indebtedness acquired by
the City as part of a legal
settlement
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: May 6, 2025
Title: Second Amendment to Professional Services Agreement with Norman A. Traub Associates, LLC for Workplace Investigation Services
Presented by: Joanna Espinosa, Human Resources Manager
Recommendation: Authorize the City Manager to execute the Second Amendment to Professional Services Agreement with Norman A. Traub & Associates, LLP to provide Professional Services for workplace investigations.
EXECUTIVE SUMMARY:
On November 15, 2023, the City entered into an agreement with Norman A. Traub & Associates, LLP to provide independent workplace investigation services. These services support the City’s efforts to ensure a fair and impartial process for investigating complaints and other personnel matters.
DISCUSSION:
The City has used the organization of Norman A. Traub & Associates, LLC for professional services to perform workplace investigations for various personnel matters. Norman A. Traub & Associates has demonstrated a high level of professionalism and neutrality, and their continued services are critical to maintaining compliance with workplace policies and applicable labor laws.
The proposed amendment increases the contract’s not-to-exceed amount by $20,000, for a new total contract amount of $44,999.
FISCAL IMPACT:
The proposed amendment will increase the contract amount by $20,000. Adequate funding is included in the City’s Fiscal Year 2024-25 budget for these purposes.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
None.
Respectfully submitted,
ATTACHMENT A
SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF COVINA AND NORMAN A. TRAUB & ASSOCIATES, LLC FOR INVESTIGATIONS
THIS SECOND AMENDMENT is made and entered into as of MAY 6, 2025 by and between the City of Covina, a California municipal corporation (hereinafter referred to as “City”), and NORMAN A. TRAUB ASSOCIATES, LLC, a limited liability company (hereinafter referred to as "Consultant"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. This SECOND Amendment is made with the respect to the following facts and purposes:
a. On November 15, 2023, the City and Consultant entered into that certain Professional Services Agreement as an independent contractor to perform investigations in the amount of $14,999.
b. The parties now desire to increase the compensation in the amount of $20,000 for a new total agreement amount not to exceed $44,999 and to amend the Agreement as set forth in this Amendment.
2. Paragraph A of Section 2 of the Agreement entitled “COMPENSATION” is hereby amended to read as follows:
A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant a sum not to exceed Fourty-Four nine hundred ninety-nine Dollars ($44,999) (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 pf payment, are null and void.
3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect.
The parties, through their duly authorized representatives, are signing this SECOND Amendment on the date stated in the introductory clause.
2 12923/0001/1924106-1
City:
City of Covina,
a California municipal corporation
By:
Name: Christopher Marcarello
Title: City Manager
ATTEST:
By:
Name: Fabian Velez
Title: Chief Deputy City Clerk
Consultant:
Norman A. Traub & Associates, LLC
a Limited Liability Company
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.)
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: May 6, 2025
Title: Agreement between All City Management Services Inc., and the City of Covina for Crossing Guard Service
Presented by: Ric Walczak, Chief of Police
Recommendation: 1. Approve the agreement between All City Management Services, Inc. and the City of Covina for school crossing guard services for fiscal year 2025-26; and authorize the City Manager or his designee to execute the agreement; and
2. Approve the crossing guard cost sharing agreements between the City of Covina and Covina Valley Unified School District and Charter Oak Unified School District and authorize the City Manager or his designee to execute agreements.
EXECUTIVE SUMMARY:
The City utilizes a private vendor for the provision of crossing guard services throughout the community. These services are provided in partnership between the Police Department, Charter Oak Unified School District and Covina Valley School District. As proposed, this relationship will continue with the City paying 50% of the costs and each District paying for 50% of the costs for crossing guard services adjacent to their school sites.
DISCUSSION:
In July 2004, the Covina City Council approved contracting for school crossing guard services with All City Management Services (ACMS), Inc. Since that time, ACMS has continued to provide uninterrupted school crossing guard services for multiple schools in two different school districts in the City of Covina. When searching for a crossing guard provider, we looked for companies that exclusively specialize in this service. ACMS was founded in 1985 and is the only private corporation specifically and exclusively providing school crossing guard services in the nation. ACMS is currently the largest employer of school crossing guards, with over 3,000 Crossing Guards serving over 150 cities, counties and school districts. Staff at the CPD has found them to be a reliable and responsive company that meets the needs of our City.
After careful review and evaluation of the crossing guard industry, ACMS continues to emerge as the only company that is appropriate for our needs. Some of the agencies they currently contract with around Covina include El Monte, Walnut, Arcadia, Glendora, Rowland Heights, Azusa, Los Angeles County (which covers all the surrounding unincorporated areas), La Puente, Diamond Bar and Baldwin Park. ACMS has been providing excellent crossing guard service to the City of Covina since 2004.
FISCAL IMPACT:
The crossing guard service cost shall not exceed $289,526.00 in total for Fiscal Year 2025-26. This is a 3% increase from the FY 2024-25 school year. Funds will be budgeted in the Police Department for this service in FY 2025-26, account number 1010 1200 51430. As part of this 50/50 cost sharing arrangement, the City of Covina will pay ACMS the full cost of the crossing guard service then in turn shall invoice the remaining 50% of the cost to each of the school districts.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
1 AGREEMENT FOR CROSSING GUARD SERVICES
This AGREEMENT FOR CROSSING GUARD SERVICES (the “Agreement”) is dated April 28, 2025 and is between the CITY OF COVINA (hereinafter called the "City"), and ALL CITY MANAGEMENT SERVICES, INC., a California corporation (hereinafter called the "Contractor").
WITNESSETH
The parties hereto have mutually covenanted and agreed as follows:
1. This Agreement is for a term which commences on or about July 1, 2025 and ends on June 30, 2026 and for such term thereafter as the parties may agree upon.
2. The Contractor will provide personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a “Crossing Guard”.
Contractor will perform criminal background checks and confirm employment eligibility through EVerify on all prospective personnel. The Contractor is an independent contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City.
3. The City’s representative in dealing with the Contractor shall be designated by the City of Covina.
4. The City shall determine the locations where Crossing Guards shall be furnished by the Contractor.
The Contractor shall provide at each designated location personnel properly trained as herein specified for the performance of duties as a Crossing Guard. The Contractor shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with the terms of this Agreement.
5. The Contractor shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement.
6. In the performance of its duties the Contractor and all employees of the Contractor shall conduct themselves in accordance with the conditions of this Agreement and all applicable laws of the state in which the Services are to be performed.
7. Persons provided by the Contractor as Crossing Guards shall be trained in all applicable laws of the state in which the Services are to be performed pertaining to general pedestrian safety in school crossing areas.
8. Crossing Guard Services (the “Services”) shall be provided by the Contractor at the designated locations on all days in which school is in session in the area under City’s jurisdiction. The Contractor also agrees to maintain communication with the designated schools to maintain proper scheduling.
ATTACHMENT A
2 9. The Contractor shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Contractor shall also provide all Crossing Guards with hand-held Stop signs and any other safety equipment which may be necessary.
10. The Contractor shall at all times provide workers' compensation insurance covering its employees and shall provide and maintain liability insurance for Crossing Guard activities. The Contractor will provide to the City a Certificate of Insurance naming the City and its officials, officers and employees as additional insureds. Such insurance shall include commercial general liability with a combined single limit of not less than $1,000,000.00 per occurrence and in aggregate for property damage and bodily injury. Such insurance shall be primary with respect to any insurance maintained by the City and shall not call on the City's insurance contributions. Such insurance shall be endorsed for contractual liability and personal injury and shall include the City, its officers, agents and interest of the City. Such insurance shall not be canceled, reduced in coverage or limits or non-renewed except after thirty (30) days written notice has been given to the City.
11. Contractor agrees to defend, indemnify and hold harmless the City, its officers, employees, agents and representatives, from and against any and all actions, claims for damages to persons or property, penalties, obligations or liabilities (each a “Claim” and collectively, the “Claims”) that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization arising out of the sole negligent acts or omissions, or willful misconduct, of Contractor, its agents, employees, subcontractors, representatives or invitees. a) Contractor will defend any action or actions filed in connection with any of said claims, damages, penalties, obligations or liabilities and will pay all costs and expenses including attorney's fees incurred in connection herewith.
b) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the sole negligence of Contractor hereunder, Contractor agrees to pay City, its officers, agents, or employees, any and all costs and expenses incurred by the City, its officers agents or employees in such action or proceeding, including, but not limited to, reasonable attorney's fees.
c) In the event that a court determines that liability for any Claim was caused or contributed to by the negligent act or omission or the willful misconduct of City, liability will be apportioned between Contractor and City based upon the parties’ respective degrees of culpability, as determined by the court, and Contractor’s duty to indemnify City will be limited accordingly.
d) Notwithstanding anything to the contrary contained herein, Contractor’s indemnification obligation to City for Claims under this Agreement will be limited to the maximum combined aggregate of Contractor’s general liability and umbrella insurance policies in the amount of $5,000,000 (Five Million Dollars).
12. Either party shall have the right to terminate this Agreement by giving sixty (60) days written notice to the other party.
3 13. The Contractor shall not have the right to assign this Agreement to any other person or entity except with the prior written consent of the City.
14. The City agrees to pay the Contractor for the Services rendered pursuant to this Agreement the sum of Thirty-three Dollars and Fifty-one Cents ($33.51) per hour, per Crossing Guard during the term.
Based on a minimum of sixteen (16) sites and upon a projected (8,640) hours of service the cost shall not exceed Two Hundred Eighty-nine Thousand, Five Hundred and Twenty-six Dollars ($289,526.00) per year.
15. Payment is due within thirty (30) days of receipt of Contractor’s properly prepared invoice.
16. Contractor may request a price increase during the term as a result of any legally-mandated increases in wages or benefits imposed in the state or municipality in which the Services are to be performed and to which Contractor’s employees would be subject. Contractor shall provide City with 60 daysnotice of its request to increase pricing. City agrees to review and respond to said notice within 30 days of receipt.
17. The City shall have an option to renew this Agreement. In the event this Agreement is extended beyond the end of the term set forth above, the compensation and terms for the Services shall be established by mutual consent of both parties.
18 This Agreement constitutes the complete and exclusive statement of the agreement among the parties with respect to the subject matter hereof and supersedes all prior written or oral statements among the parties, including any prior statements, warranties, or representations. This Agreement is binding upon and will inure to the benefit of the parties hereto and their respective heirs, administrators, executors, successors, and assigns. Each party hereto agrees that this Agreement will be governed by the law of the state in which the Services are to be performed, without regard to its conflicts of law provisions. Any amendments, modifications, or alterations to this Agreement must be in writing and signed by all parties. There will be no presumption against any party on the ground that such party was responsible for preparing this Agreement or any part of it. Each provision of this Agreement is severable from the other provisions. If any provision of this Agreement is declared invalid or contrary to existing law, the inoperability of that provision will have no effect on the remaining provisions of the Agreement which will continue in full force and effect. [SIGNATURES FOLLOW ON NEXT PAGE]
4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year written below.
CITY CONTRACTOR
City of Covina All City Management Services, Inc.
By_____________________________ By______________________________ Signature D. Farwell, Corporate Secretary
_____________________________
Print Name and Title
Date____________________________ Date____________________________ April 28, 2025
ATTACHMENT B
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2025 (“Effective Date”) and is between the City of Covina, A California municipal corporation and Charter Oak Unified School District, hereinafter referred to as “COUSD”. The City and COUSD are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City shall utilize and pay All City Management Services as an independent contractor to provide crossing guard services for COUSD.
B. COUSD shall pay City 50% of the cost incurred to perform these services in accordance with the terms and conditions of this Agreement.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2026, unless sooner terminated as provided in Section 4 of this Agreement.
2. Compensation.
A. Compensation. The City and COUSD each shall be responsible for 50% of the total cost of the crossing guard services of $108,572.40. COUSD shall pay City a sum not to exceed $54,286.20 for a total not-to-exceed amount of FIFTY FOUR THOUSAND TWO HUNDRED EIGHTY SIX DOLLARS AND TWENTY CENTS (the “maximum compensation”), for the term of this Agreement.
B. Additional Services. City and COUSD shall not allow any claims for additional services performed by independent contractor, unless the City Council and the COUSD Board authorize the additional services in writing prior to the performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council and the COUSD Board shall be compensated at the hourly rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. Additional service includes crossing service for summer school. City and COUSD shall make payment for additional services and expenses in accordance with Section 3 of this Agreement.
3. Method of Payment.
A. Invoices. City shall submit to COUSD an invoice, on a monthly basis, or actual services performed pursuant to this Agreement. The basis of payment shall be per hour worked. The invoice shall be accompanied by supporting documents enumerating the hours worked at each school site for the invoice period.
B. Payment. COUSD shall pay to City all undisputed invoice amounts within thirty (30) calendar days after receipt, up to the maximum compensation set forth in Section 2 of this Agreement. City
and COUSD shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant.
4. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City or COUSD may terminate or suspend this Agreement at any time, at Will, for any reason or no reason, after giving written notice to the other party at least seven (7) calendar days before the termination or suspension is to be effective.
5. Notices. Any notices, consents requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective; (1) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service City’s and COUSD’s regular business hours, (or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to COUSD:
Attn: Ric Walczak Attn: Karyl Brandford
City of Covina Charter Oak Unified School District
444 N. Citrus Ave. 20240 E. Cienega Avenue
Covina, CA 91723 Covina, CA 91724
6. Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exits or arises between a provision of this Agreement and a provision of any exhibit the provisions of this Agreement shall control.
7. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement
8. Amendment of Agreement. This Agreement may be amended only by a writing signed by all parties. The City Manager and the Superintendent are authorized to sign an amendment to this Agreement on the City Council’s and COUSD Board’s behalf and without the City Council’s or the COUSD Board’s prior approval to make the following non-substantive modifications to the Agreement: (a) name changes; (b) non-monetary extensions of time; (c) non-monetary changes in the scope of work; and (d) termination of the Agreement.
9. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
10. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
11. Time of the Essence. Time is of the essence in respect to all provision of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
12. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina and COUSD.
13. Attorneys’ Fees. In any litigation or other proceeding by which one party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgement.
14. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
15. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of COUSD warrants and represents that he or she has the authority to execute this Agreement on behalf of COUSD and has the authority to bind COUSD to the performance of its obligations hereunder.
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City: School District:
City of Covina, California Municipal Charter Oak Unified School District Corporation
By: By:
Name: Chris Marcarello Name: Jeffrey Jordan, Ed.D.
Title: City Manager Title: Superintendent
(Two signatures of corporate officers required
For corporations under Corporations Code
Section 313, unless corporate documents
Authorize only one person to sign this
Agreement on behalf of the corporation.)
ATTEST:
By: ________________________________
Name: Fabian Velez
Title: Chief Deputy City Clerk
EXHIBIT A
APPROVED FEE SCHEDULE
Six (6) sites at 3.0 hours per day.
18 total hours per day X 180 days per year X $33.51 hourly billing rate = $108,572.40 PSA 50% - 50% Split
$54,286.20 Charter Oak Unified School District
$54,286.20 City of Covina
EXHIBIT B
SCOPE OF SERVICES
All City Management Services shall provide crossing guard service/trained and uniformed personnel at the following designated six (6) sites within Charter Oak Unified School District on all days in which school is in session during the regular school year (excluding summer school session). Old Badillo/Reeder
Badillo/Reader (SW)
Cienega/Glendora (SW)
Sunflower/Benwood
Badillo/Glendora (SW)
Badillo/Glendora (NW)
ATTACHMENT C
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated July 1, 2025 (“Effective Date”) and is between the City of Covina, A California municipal corporation and Covina Valley Unified School District, hereinafter referred to as “CVUSD”. The City and CVUSD are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City shall utilize and pay All City Management Services as an independent contractor to provide crossing guard services for CVUSD.
B. CVUSD shall pay City 50% of the cost incurred to perform these services in accordance with the terms and conditions of this Agreement.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through June 30, 2026, unless sooner terminated as provided in Section 4 of this Agreement.
2. Compensation.
A. Compensation. The City and CVUSD each shall be responsible for 50% of the total cost of the crossing guard services of $180,954. CVUSD shall pay City a sum not to exceed $90,477 for a total not-to-exceed amount of NINETY THOUSAND FOUR HUNDRED SEVENTY SEVEN DOLLARS AND ZERO CENTS (the “maximum compensation”), for the term of this Agreement B. Additional Services. City and CVUSD shall not allow any claims for additional services performed by independent contractor, unless the City Council and the CVUSD Board authorize the additional services in writing prior to the performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council and the CVUSD Board shall be compensated at the hourly rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. Additional service includes crossing service for summer school. City and CVUSD shall make payment for additional services and expenses in accordance with Section 3 of this Agreement.
3. Method of Payment.
A. Invoices. City shall submit to CVUSD an invoice, on a monthly basis, or actual services performed pursuant to this Agreement. The basis of payment shall be per hour worked. The invoice shall be accompanied by supporting documents enumerating the hours worked at each school site for the invoice period.
B. Payment. CVUSD shall pay to City all undisputed invoice amounts within thirty (30) calendar days after receipt, up to the maximum compensation set forth in Section 2 of this Agreement. City
and CVUSD shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant.
4. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City or CVUSD may terminate or suspend this Agreement at any time, at Will, for any reason or no reason, after giving written notice to the other party at least seven (7) calendar days before the termination or suspension is to be effective.
5. Notices. Any notices, consents requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective; (1) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service City’s and CVUSD’s regular business hours, (or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to CVUSD:
Attn: Ric Walczak Attn: Elizabeth Eminhizer
City of Covina Covina Valley Unified
444 N. Citrus Ave. 519 E. Badillo St.
Covina, CA 91723 Covina, CA 91723
6. Exhibits. Exhibits A and B constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exits or arises between a provision of this Agreement and a provision of any exhibit the provisions of this Agreement shall control.
7. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement
8. Amendment of Agreement. This Agreement may be amended only by a writing signed by all parties. The City Manager and the Superintendent are authorized to sign an amendment to this Agreement on the City Council’s and CVUSD Board’s behalf and without the City Council’s or the CVUSD Board’s prior approval to make the following non-substantive modifications to the Agreement: (a) name changes; (b) non-monetary extensions of time; (c) non-monetary changes in the scope of work; and (d) termination of the Agreement.
9. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
10. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
11. Time of the Essence. Time is of the essence in respect to all provision of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
12. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina and CVUSD.
13. Attorneys’ Fees. In any litigation or other proceeding by which one party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgement.
14. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
15. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of CVUSD warrants and represents that he or she has the authority to execute this Agreement on behalf of CVUSD and has the authority to bind CVUSD to the performance of its obligations hereunder.
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City: School District:
City of Covina, California Municipal Covina Valley Unified School District Corporation
By: By:
Name: Chris Marcarello Name: Manuel Correa
Title: City Manager Title: Chief Business Officer
(Two signatures of corporate officers required
For corporations under Corporations Code
Section 313, unless corporate documents
Authorize only one person to sign this
Agreement on behalf of the corporation.)
ATTEST:
By: ________________________________
Name: Fabian Velez
Title: CHIEF Deputy City Clerk
EXHIBIT A
APPROVED FEE SCHEDULE
Ten (10) sites at 3.0 hours per day.
30 total hours per day X 180 days per year X $33.51 hourly billing rate = $180,954 PSA 50% - 50% Split
$90,477 Covina Valley Unified School District
$90,477 City of Covina
EXHIBIT B
SCOPE OF SERVICES
All City Management Services shall provide crossing guard service/trained and uniformed personnel at the following designated ten (10) Covina Valley Unified School District on all days in which school is in session during the regular school year (excluding summer school session). o Barranca/Workman (NW)
o Fourth/Cypress (IFOS)
o Grove Center/Lark Ellen (SE)
o Lark Ellen/Bridger (NE)
o Prospero/Covina (SW)
o Prospero/Cypress (NW)
o Puente/DeLay
o Armel/Badillo (NW)
o Armel/Puente East (NW)
o E. Puente St./Monte Vista Ave.
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: May 6, 2023
Title: Resolution CC 2025-35, Amending the Fiscal Year 2024-2025 Operating Budget and Approving an Appropriation of $50,000 as per a Development Agreement with PKL Investments, LLC
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Recommendation: Adopt Resolution CC 2025-35.
EXECUTIVE SUMMARY/DISCUSSION
As part of the Covina Village Specific Plan (Commercial and Residential) development to be located at 1000 N.
Azusa Avenue (former Albertsons site) in Covina, the City entered into a Development Agreement with PKL Investments, LLC. The City Council adopted Ordinance 23-13, approving the Development Agreement on January 16, 2024, and the Development Agreement was subsequently executed and filed with the Los Angeles County Clerk on March 11, 2024. Per Section 6 (d) of the Agreement entitled “Permitted Extensions of Commencement and Completion Deadlines”, PKL Investments, LLC submitted a request to extend the commencement deadline for sixty (60) days and supplied a payment of $50,000 to the City of Covina.
The City intends to use the payment of $50,000 towards City Projects which may include but is not limited to:
the Covina Metrolink Connectivity Project (Fiscal Year 2023 Federal Appropriation Authorized through the Community Project Funding/Congressionally Directed Spending Program), the Covina Recreation Village Project, and/or additional Mural Installations within the City’s Town Center area. It is recommended that the Council adopt Resolution CC 2025-35 (Attachment A), appropriating these funds into Community Development Account 1010-4010-55100 to facilitate Community Development-initiated public improvements/tasks.
FISCAL IMPACT:
The receipt and appropriation of $50,000 is from the cash payment to the City of Covina from PKL Investments, LLC, according to the Development Agreement adopted by the City Council on January 16, 2024.
The receipt and appropriation of said funds has a net-zero fiscal impact on the General Fund due to the funds originating from the Development Agreement and not from standard General Fund revenues. Resolution CC 2025-35 proposes the following appropriation and amendment to the FY25 Operating Budget:
Account Number Account Title Original
Budget Increase Amended Budget
1010-4010-48990
Community
Development Revenue –
Other
$0 $50,000 $50,000
1010-4010-55100
Community
Development Buildings
& Structures
$0 $50,000 $50,000
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This action is exempt from the California Environmental Quality Act (CEQA).
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2025-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING THE FISCAL YEAR 2024-2025 OPERATING BUDGET, APPROVING THE ACCEPTANCE OF PAYMENT $50,000
FROM EXTENSION PAYMENT FROM PKL INVESTMENTS, LLC AND
APPROPRIATION TO COMMUNITY DEVELOPMENT ACCOUNT 1010-
4010-55100 TO FACILITATE NEPA COMPLIANCE FOR THE COVINA
METROLINK CONNECTIVITY PROJECT
WHEREAS, the City of Covina (“City”) is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the budget for the City of Covina for the fiscal year commencing July 1, 2024, and ending on June 30, 2025, was approved on June 4, 2024; and WHEREAS, the approved budget is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and
WHEREAS, on occasion, the City Council will deem it necessary to amend the Operating Budget to create a new budget allocation in order to facilitate a project the City Council deems necessary and important; and
WHEREAS, those amendments (allocations) to the Budget shall be by approval and memorialized by Resolution of the City Council; and
WHEREAS, The City Council of the City of Covina adopted Ordinance 23-13, approving a Development Agreement between the City of Covina and PKL Investments, LLC.; and WHEREAS, pursuant to Section 6 (D) of the Agreement entitled “Permitted Extensions of Commencement and Completion Deadlines”, PKL Investments, LLC., supplied a payment of $50,000 to the City of Covina; and
WHEREAS, the City Council of the City of Covina wishes to establish a new budget allocation to facilitate Community Development Department lead/City Initiated public benefit projects; and
WHEREAS, the appropriation of the $50,000 payment from PKL Investments, LLC., is cost-neutral to the General Fund.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the fiscal year 2024-2025 Operating Budget as follows:
Resolution CC 2025-35 Page 2 of 2
Account Number Account Title Origina
l Budget Increase Amended Budget
1010-4010-48990
Community
Development Revenue
– Other
$0 $50,000 $50,000
1010-4010-55100
Community
Development
Buildings & Structures
$0 $50,000 $50,000
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
APPROVED and PASSED this 6th 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 2025-35 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
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: May 6, 2025
Title: Core Switch Replacements and Services – Police Department and City Hall Presented by: Angel Carrillo, Deputy City Manager
Recommendation: Authorize the City Manager to Execute an Agreement with Intelli-Tech and Acorn Solutions Group to Purchase Fortinet Switches and Services to Install and Maintain.
EXECUTIVE SUMMARY:
The City currently operates with two core switches—one located at City Hall and the other at the Police Department—that have reached end-of-life and require replacement. The new proposal from Fortinet recommends upgrading to a modern, flexible switching system that allows for future expansion or replacement as needed. Additionally, Acorn Solutions Group, who currently manage the City's core switches, will provide configuration services to support the implementation of the new system.
BACKGROUND:
The City currently operates two core network switches—one located at City Hall and the other at the Police Station—to ensure system redundancy. Both switches are approximately 20 years old, have exceeded their endof-life, and are exhibiting signs of failure. If not replaced, these failures pose a significant risk of a complete system outage.
To address this, City staff collaborated with engineers from Fortinet to develop a replacement proposal tailored to the City's operational needs. Fortinet has been established as the City’s standard for network switches, which helps reduce both the cost and complexity of system maintenance. The proposed design transitions from a traditional chassis-based model to a more agile and scalable switch stack architecture.
DISCUSSION:
Over the past three years, the City has been systematically replacing its aging infrastructure with Fortinet solutions, moving toward a unified management platform. This integrated approach has enhanced the City's ability to monitor and manage systems, improve outage response, and ensure service continuity. By maintaining network redundancy, the City is better equipped to handle outages and emergency situations without disrupting essential services to residents. A key objective of the City's IT department is to support uninterrupted, 24/7 operations, particularly for critical functions such as public safety.
Intelli-Tech has provided a quote under the OMNIA NCPA contract (01-170) for the purchase of two core switches and related equipment, totaling $129,588.65. In addition, Acorn Technology Services will provide professional services for setup and configuration at a cost of $20,150, with the project estimated to require 130 hours. The total project cost is $149,738.65. This proposal also includes a new firewall for the Police Department, which will mirror the system at City Hall and provide essential protection and redundancy.
This procurement falls under OMNIA Partners’ TD SYNNEX NCPA Contract #01-170 – Advanced Technology Solutions Aggregator. This cooperative purchasing agreement enables the City to leverage a competitively solicited contract for cost-effective and streamlined procurement. Intelli-Tech is an authorized supplier under this program.
OMNIA Partners’ NCPA cooperative contracts are available to public agencies nationwide, provided their state laws permit intergovernmental contract use. As a governmental entity, the City of Covina is authorized to utilize OMNIA NCPA’s competitively bid agreements. The current contract term extends from December 14, 2023, through December 31, 2026, with two optional one-year extensions FISCAL IMPACT:
The total cost for implementation in Year One is $149,738.65. This includes hardware, equipment, and professional services. Fortinet FortiCare 24x7 Premium Support is included for the first three years at no additional cost. Beginning in Year Four, ongoing support is estimated to incur an additional annual expense of approximately $3,500.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
1652 Yeager Avenue
La Verne, CA 91750
(909) 394-5188 DATE
fax (909) 394-5190 04/16/25
BILLING
City of Covina
125 E College St
Covina, CA 91723
Attn: Accounts Payable
SHIP TERMS
City of Covina Net 30
125 E College St FOB
Covina, CA 91723
Attn: Shawn Granger
# Qty Part No. Description ETA Price Extended
1 2 FS-1024E Fortinet FortiSwitch 1024E 5-7 Days $ 9,450.00 $ 18,900.00 Fortinet FortiSwitch 1024E - Switch - managed - 24 x 1 Gigabit / 10 Gigabit SFP+ + 2 x 100 Gigabit QSFP28 - front to back airflow - rack-mountable 2 2 FC-10-S1E24-247-02-36 Fortinet FortiCare 24x7 Premium Support - 3 Year *** $ 3,850.00 $ 7,700.00 For 1024E Switch. Fortinet FortiCare 24x7 Comprehensive Support - Extended service agreement (renewal) - advance parts replacement 3y 3 14 FS-448E-FPOE Fortinet FortiSwitch 448E-FPOE Switch 5-7 Days $ 3,510.00 $ 49,140.00 Fortinet FortiSwitch 448E-FPOE - Switch - L3 - managed - 48 x 10/100/1000 (PoE+) + 4 x 10 Gigabit SFP+ - rack-mountable - PoE+
4 14 FC-10-S448F-247-02-36 Fortinet FortiCare 24x7 Premium Support - 3 Year *** $ 1,370.00 $ 19,180.00 For 448E Fortinet FortiCare 24x7 Comprehensive Support - Extended service agreement (renewal) - advance parts replacement - 3 years 5 35 FN-TRAN-SFP+SR Fortinet Transceiver Module 10GE SFP+ SR 5-7 Days $ 55.00 $ 1,925.00 10GE SFP+ transceiver module, short range 10 GE SFP+ transceiver module, short range 300m, LC connector, MMF, 850nm, 0C to 70C, for systems with SFP+
6 1 FN-TRAN-SFP+LR Fortinet Transceiver Module 10GE SFP+ LR 5-7 Days $ 104.00 $ 104.00 10GE SFP+ transceiver module, long range 10 GE SFP+ transceiver module, long range 10km, LC connector, SMF, 1310nm, 0C to 85C, for systems with SFP+ slots
7 1 FN-CABLE-SFP+1 Fortinet 10GE SFP+ Attach Cable 1m 5-7 Days $ 57.00 $ 57.00 10 GE SFP+ passive direct attach cable, 1m 10 GE SFP+ passive direct attach cable, 1m, 0C to 70C, transceivers included, for systems with SFP/SFP+ slots
8 1 FN-CABLE-SFP+3 Fortinet 10GE SFP+ Attach Cable 3m 5-7 Days $ 73.00 $ 73.00 10 GE SFP+ passive direct attach cable, 3m 10 GE SFP+ passive direct attach cable, 3m, 0C to 70C, transceivers included, for systems with SFP/SFP+ slots
9 1 FG-400F-BDL-950-36 Fortinet FortiGate 400F Hardware Appliance 5-7 Days $ 22,750.00 $ 22,750.00 FortiGate-400F Hardware plus 3 Year FortiCare Premium and FortiGuard Unified Threat Protection (UTP)
Sub-total $ 119,829.00
OMNIA NCPA CONTRACT 01-170 Tax 10.5% $ 9,759.65
Shipping (estimated) $ -
NOTE: ALL CUSTOM ORDERS ARE NON-CANCELABLE/NON-RETURNABLE eWaste $ - NOTE: PRICING AND AVAILABILITY IS SUBJECT TO CHANGE WITHOUT NOTICE Grand Total $ 129,588.65 NOTE: PRICING IS CONTINGENT ON QUANTITY QUOTED ABOVE
PURCHASE ORDER NO
RFQ #
DEPARTMENT
[email protected] [email protected]
Shawn Granger Kevin Praeger
(626) 384-5433 (909) 394-5188 x4515
QUOTE
QUOTATION NO.
SG111224A-KP
CONTACT ACCOUNT TEAM
ATTACHMENT A
TD SYNNEX Public Sector I tdsynnex.com/na/us/td-synnex-public-sector July 18, 2024
INTELLI-TECH
1652 YEAGER AVENUE
LA VERNE CA 91750 US
Re: Participating Dealer Authorization – INTELLI-TECH
National Cooperative Purchasing Alliance #01-170
To whom it may concern:
Please allow this letter to serve as confirmation that INTELLI-TECH is authorized to sell through and under the TD SYNNEX Corporation National Cooperative Purchasing Alliance #01- 170 (the “Contract”) contract. Under that existing Participating Dealer Agreement between the parties, TD SYNNEX Corporation has granted INTELLI-TECH the non-exclusive right to sell products that are awarded under the Contract to permitted government end users.
Nothing in this letter of authorization should be construed as TD SYNNEX Corporation giving permission to INTELLI-TECH to add TD SYNNEX-distributed vendors to contract vehicles held by INTELLI-TECH.
You should feel free to provide a copy of this letter to any of your public sector customers.
Sincerely,
Randy Finley
Senior Director
Public Sector Business Development
TD SYNNEX Corporation
39 Pelham Ridge Drive
Greenville, South Carolina 29615
(510) 402-7058
[email protected]
ATTACHMENT B
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: May 6, 2025
Title: Annual Maintenance Agreement for the City’s 9-1-1 Dispatch Center Presented by: Ric Walczak, Chief of Police
Recommendation: Approve the purchase of the Annual Maintenance contract from AT&T in the amount of $63,647.48 and adopt Resolution CC 2025-33 increasing the FY 2024-25 police department budget by the same amount.
EXECUTIVE SUMMARY:
The Covina Police Department’s 9-1-1 Dispatch Center relies on the AT&T/VESTA Call Handling Equipment (CHE) system to receive and manage emergency calls. The maintenance contract for this essential system expired on April 19, 2024. Renewal is required to ensure uninterrupted technical support and avoid costly time and material billing for system service and repairs.
DISCUSSION:
VESTA CHE is critical infrastructure for public safety operations, providing reliable call handling and routing capabilities that support police, fire, and emergency medical services. Regular maintenance ensures operational readiness, timely software updates, and system integrity in accordance with Next Generation 9-1-1 (NG9-1-1) standards.
The California Office of Emergency Services (Cal OES) reimburses Public Safety Answering Points (PSAPs) for CHE maintenance. Upon City Council approval, the Police Department will issue a purchase order, submit the required documentation (quote, invoice, and proof of payment), and request full reimbursement from Cal OES.
FISCAL IMPACT:
While the City will initially cover the contract cost of $63,647.48, 100% of this amount is reimbursable through Cal OES.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
ATTACHMENT B
RESOLUTION CC 2025-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO APPROPRIATE $63,647.48 AND TO INCREASE THE POLICE DEPARTMENT BUDGET FY 2024-25 BUDGET REVENUE AND
EXPENDITURE BY THE SAME AMOUNT
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 reallocation of appropriations may be made by the City Manager, amendments (increases/decreases) to the Budget shall be by approval and Resolution of the City Council; and
WHEREAS, the City of Covina shall transfer $63,647.48 from the general fund balance to purchase an annual maintenance service from AT&T for the 911 dispatch system; and WHEREAS, appropriating this amount will increase the police department revenue and expenditure account for FY 2024-25 by $63,647.48.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the fiscal year 2024-2025 Communications budget as follows:
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 6
th day of May, 2025.
City of Covina, California
BY:
VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
Account Number Account Title Original Budget Increase Budget Amendment 2230-1410-42190 CHEM Other State Grants 0 63,647.48 63,647.48 2230-1410-52490 CHEM Communication Svcs Maint-Other 0 63,647.48 63,648.48
Resolution CC 2025-33 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-33 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: NONE
NOES: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 12
Meeting: May 6, 2025
Title: Sewer Main Replacement Project – Project No. S2502 – Final Acceptance and Filing Notice of Completion
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by GRBCON, Inc.; and
2. Authorize the City Clerk to file a Notice of Completion for the Sewer Main Replacement Project – Project No. S2502.
EXECUTIVE SUMMARY/BACKGROUND:
On March 18, 2025, the City Council approved a contract with GRBCON, Inc. in the amount of $152,675 with a project scope that included the installation of approximately 195 Linear Feet of 6” Sewer Main, a 24” access manhole installation, a 6” clean out, connection to City Sewer Main on 2nd Avenue and asphalt trench restoration.
Project construction has been completed and City staff recommends acceptance of the work performed by GRBCON, Inc. and to authorize the City Clerk to file a Notice of Completion (Attachment A) for the Sewer Main Replacement Project – Project No. S2502.
FISCAL IMPACT:
Project funding for the Sewer Main Replacement Project – Project No. S2502 was allocated as follows:
Source of Project Funds Amount Account
Sanitary Sewer $187,843 6300-2700-55350-S2502
Total $187,843
The following table represents the final project summary:
Item Actual
Project Appropriations $187,843
GRBCON, Inc. – Contract Amount ($152,675)
Siterep Construction Services, Inc – Inspection Services ($20,000) Total Expenditures ($172,675)
Total UNDER BUDGET $15,168
Project savings amount of $15,168 will be returned to the Sanitary Sewer Fund – Fund Balance for use on future projects.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities
involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
NAME City of Covina
STREET ADDRESS 125 E College Street
CITY Covina
STATE CA
ZIP CODE 91723
SPACE ABOVE THIS LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is The City of Covina .
3. The full address of the owner is 125 E College Street, Covina, CA 91723 .
4. The nature of the interest or estate of the owner is: In fee. (If other than Fee, strike “in fee” and insert, for example, “purchaser under contract of purchase”, or “Lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. The full names and full addresses of all the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
7. A work of improvement on the property hereinafter described was completed on: April 17, 2025 . The work done was:
Sewer Main Replacement Project – Project No. S2502
8. The names of the contractor, if any, for such work improvement was:
GRBCON, Inc. March 18, 2025
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:
Sewer Main Replacement Project – Project No. S2502
10. The street address of said property is 444 N. Citrus Avenue, Covina, CA 91723 (If no street address has been officially signed, insert “None”.) Dated May 6, 2025
Fabian Velez, Chief Deputy City Clerk, City of Covina
VERIFICATION
I, the undersigned, say: I am the City Engineer The declarant of the foregoing Notice of Completion; (President of, Manager of, Partner of, Owner of)
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 6, , 2025 at Covina , California .
Rafael M. Fajardo, City of Covina
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 13
Meeting: May 6, 2025
Title: Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502 – Final Acceptance and Filing Notice of Completion
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by California Professional Engineering, Inc.; and
2. Authorize the City Clerk to file a Notice of Completion for the Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502.
EXECUTIVE SUMMARY:
On July 2, 2024, the City Council approved a contract with California Professional Engineering, Inc. in the amount of $162,000 with a project scope that included the installation of a new traffic signal at the northwest corner of Citrus Avenue and Puente Street.
Project construction has been completed and City staff recommends acceptance of the work performed by California Professional Engineering, Inc. and to authorize the City Clerk to file a Notice of Completion (Attachment A) for the Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502.
DISCUSSION:
During construction, the need for additional work not included in the original scope of work was identified by City staff. As a result, the City Engineer reviewed and approved the following change orders, increasing the overall contract amount by $1,721.26:
Change Order No. 1 – Increased the overall contract amount by $1,721.26 to re-route advance conduit into #6 pullbox.
FISCAL IMPACT:
Project funding for the Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502 was allocated as follows:
Source of Project Funds Amount Account
Measure R $250,000 2410-2200-55340-T2502
Total $250,000
The following table represents the final project summary:
Item Actual
Project Appropriations $250,000
California Professional Engineering, Inc. – Contract Amount plus Change Order ($163,721.26)
Elie Farah Inc. – Submittal Review ($1,875)
Siterep Construction Services, Inc – Inspection Services ($10,000)
Total Expenditures ($175,596.26)
Total UNDER BUDGET $74,403.74
A total project savings of $74,403.74 was achieved upon completion of project construction; $59,925 was transferred out of the project as part of the FY 2024-25 Mid-Year Budget Reconciliation Process and the remaining balance of $14,478.74 will be returned to Measure R – Fund Balance for use on future projects.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.
The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
NAME City of Covina
STREET ADDRESS 125 E College Street
CITY Covina
STATE CA
ZIP CODE 91723
SPACE ABOVE THIS LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is The City of Covina .
3. The full address of the owner is 125 E College Street, Covina, CA 91723 .
4. The nature of the interest or estate of the owner is: In fee. (If other than Fee, strike “in fee” and insert, for example, “purchaser under contract of purchase”, or “Lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. The full names and full addresses of all the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
7. A work of improvement on the property hereinafter described was completed on: March 26, 2025 . The work done was:
Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502
8. The names of the contractor, if any, for such work improvement was:
California Professional Engineering, Inc. July 2, 2024
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:
Traffic Signal Upgrade Project – Citrus Avenue and Puente Street – Project No. T2502
10. The street address of said property is Citrus Avenue & Puente Street (If no street address has been officially signed, insert “None”.) Dated May 6, 2025
Fabian Velez, Chief Deputy City Clerk, City of Covina
VERIFICATION
I, the undersigned, say: I am the City Engineer The declarant of the foregoing Notice of Completion; (President of, Manager of, Partner of, Owner of)
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 6, , 2025 at Covina , California .
Rafael M. Fajardo, City of Covina
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 14
Meeting: May 6, 2025
Title: Water Master Plan Update and Water Rate Study – Proposed Professional Services Agreements with Civiltec Engineering, Inc. and Raftelis Financial Consultants, Inc.
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Authorize the City Manager to execute a Professional Services Agreement with Civiltec Engineering, Inc. for the preparation of a Water Master Plan Update for an amount not-to-exceed $166,800;
2. Authorize the City Manager to execute a Professional Services Agreement with Raftelis Financial Consultants, Inc. for the preparation of a Water Rate Study for an amount not-to-exceed $98,187; and
3. Adopt Resolution CC 2025-36 to amend the Fiscal Year 2024-2025 Capital Improvement Program Budget to increase funding by $134,901.44 for the Water Master Plan and Water Rate Study and appropriate the necessary funds from the available Water Utility Fund balance.
EXECUTIVE SUMMARY/BACKGROUND:
The City’s Water Utility provides safe, clean, and reliable water to approximately 8,500 residents and businesses.
As part of its operational strategy, the City of Covina Water Utility develops a Water Master Plan every five years and an accompanying Water Rate Study to ensure that customer rates appropriately support the goals identified in the Master Plan. The Water Utility’s last Master Plan and Rate Study were completed in 2020, covering the planning horizon of 2021 through 2025. As proposed, the City Council will consider authorizing agreements with Civiltec Engineering, Inc. and Raftelis Financial Consultants, to initiate work on these documents, with an expected completion at the end of the year.
DISCUSSION:
In order to meet the demands of the City’s water customers, and maintain an efficient and reliable infrastructure, the Covina Water Utility prepares a Water Master Plan Update and Water Rate Study every five years. The need for these master and financial planning efforts is driven by the condition of the City’s infrastructure, the regional water supply, increasing energy costs, recurrent drought conditions, and increasing water conservation regulations. The water industry is ever changing and dynamic in many ways, and the City’s Water Utility is committed to providing dependable service to its customers.
Key highlights of the work effort will include:
Analysis of the infrastructure that delivers water to customers. Evaluation of the current water system demands, and the impact of pending land developments. Analysis of the regional water supply.
Assessment of operations and maintenance needs.
Development of the capital improvement program.
Review of the current rate structure, long-term financial plan, and cost requirements. Development of a five-year customer rate schedule.
In anticipation of preparing the Water Master Plan and Rate Study, the Department of Public Works entered into negotiations with two firms that completed the City’s 2020 studies. Following the conclusion of this process, it was determined that both firms would be able to meet the City’s desired completion date of December 2025 and that the total not-to-exceed cost to develop the Master Plan and Rate Study were within range of current market rates. Both firms possess a strong working understanding of the City’s utility system, infrastructure, rate models and finances, helping to streamline the time to complete an updated Master Plan and Rate Study by roughly six months. The total not-to-exceed cost to prepare these studies is $264,987, with the Master Plan professional services agreement with Civiltec Engineering costing $166,800 and the Rate Study professional services agreement with Raftelis costing $98,187.
The proposed consulting firms have completed satisfactory work for the Department of Public Works in various engagements. Civiltec has completed more than 60 water master plans and/or updates, as well as numerous urban water management plans, drought contingency plans, and operations and maintenance plans. Civiltec has been completing water system planning documents throughout Southern California since 1990. Raftelis is one of the largest and most experienced water, wastewater, and stormwater utility financial and management consulting practices in the nation. Raftelis has provided these services to hundreds of jurisdictions across the country and abroad.
The term of the proposed PSAs will begin on the date of contract award through June 30, 2026. The work is expected to be completed by December 31, 2025, however the PSAs will include additional time should it be needed.
FISCAL IMPACT:
There is no general fund fiscal impact. The fiscal impact associated with the proposed PSA with Civiltec for the preparation of a Water Master Plan Update is an amount not-to-exceed $166,800. The fiscal impact associated with the proposed PSA with Raftelis for the preparation of a Water Rate Study is an amount not-to-exceed $98,187. The total project cost is $264,987. Funding in the amount of $130,085.56 is available in the FY 2025 Public Works Water Utility Administration Budget (account no. 6010-5000-51005). Resolution CC 2025-36 will appropriate the remaining $134,901.44 that is needed to complete the proposed work.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
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 Civiltec Engineering, 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 Master Plan Update.
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 One Hundred Sixty Six Thousand, Eight Hundred Dollars ($166,800) (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 Gretel Ochoa-Nhac, Project Manager (the “Consultant Representative”). The Consultant Representative shall directly manage Consultant’s services under this Agreement. Consultant shall not change the Consultant Representative without City’s prior written consent.
C. Time for Performance. Consultant shall commence the services on the Effective Date and shall perform all services by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.
D. Standard of Performance. Consultant shall perform all services under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.
E. Personnel. Consultant has, or will secure at its own expense, all personnel required to perform the services required under this Agreement. All of the services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant shall determine the means, methods, and details by which Consultant’s personnel will perform the services under this Agreement. Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the services and compliance with the customary professional standards.
F. Compliance with Laws. The Consultant shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this section.
G. Permits and Licenses. Consultant shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.
4. Method of Payment.
A. Invoices. Consultant shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount
12923-0001\1917425v3.doc
due. If City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.
C. Audit of Records. Consultant shall make all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this agreement available during Consultant’s regular working hours to City for review and audit by City.
5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Consultant may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Consultant.
6. Independent Contractor.
A. Consultant is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Consultant shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Consultant’s personnel require to perform any of the services required by this Agreement. Consultant shall perform the services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of the services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.
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City may make a computer available to Consultant from time to time for Consultant’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.
B. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of the services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.
C. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section
6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
7. PERS Compliance and Indemnification.
A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform the services under this Agreement, Consultant shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired