Covina City Council
June 3, 2025

SECTION 15. CITY COUNCIL PROCEEDINGS
The City Council meetings shall be conducted in the procedural order set forth below:

A. Call to Order. The Mayor shall take the Chair at the appointed hour for the meeting, and shall immediately call the Council to order. In the absence of the Mayor and Mayor Pro Tem, the City Clerk, Chief Deputy City Clerk, or Deputy City Clerk, shall call the Council to order, whereupon a temporary Chair shall be elected by the members of the Council present. Upon the arrival of the Mayor or Mayor Pro Tem, the temporary Chair shall immediately relinquish the Chair upon the conclusion of the business presently before the Council. In the absence of the City Clerk, Chief Deputy City Clerk, or Deputy City Clerk, the Mayor shall appoint a Council Member to serve as City Clerk Pro Tem, in accordance with State law.

B. Roll Call. Before proceeding with the business of the Council, the City Clerk, Chief Deputy City Clerk, or Deputy City Clerk shall call the roll of the members, and the names of those present shall be entered in the minutes.

C. Quorum. A majority of all the members elected to the Council shall constitute a quorum at any regular or special meeting of the Council. In the absence of a quorum, the City Clerk shall call the meeting adjourned.

D. Order of Business. All meetings of the Council shall be open to the public. Promptly at the hour set by law on the day of each regular meeting, the Council Members, City Clerk, City Attorney, and City Manager shall take their regular stations in the Council Chambers, and the business of the Council shall be taken up for consideration and disposition in the following order, unless the Mayor, without objection from the Council Members, agree to consider an item out of order:

Call to Order
Roll Call
Pledge of Allegiance
Invocation
Approval of Agenda
Presentations
Public Comments
Council/Agency/Authority Comments
City Manager Comments
Consent Calendar
Continued Public Hearings
Joint Public Hearings
Public Hearings
Continued Business
New Business
Adjournment

SECTION 16. RULES OF DEBATE
A. Mayor. The Mayor may debate and vote on each item before the Council. The Mayor, or such other member of the Council as may be presiding may move, second, and debate from the Presiding Officer, subject only to such limitations of debate as are by these rules imposed on all members and shall not be deprived of any of the rights and privileges of a Council Member by reason of them acting as the Presiding Officer.

B. Getting the Floor. Every member desiring to speak shall address the Presiding Officer, and upon recognition by the Mayor, shall confine themselves to the question under debate, avoiding all personalities and indecorous language and matters outside of the Agency’s subject matter jurisdiction.

C. Interruptions. A member, once recognized, shall not be interrupted when speaking unless it is to call him/her to order, or as herein otherwise provided. If a member, while speaking, be called to order, they shall cease speaking until the question of order is determined, and, if in order, they shall be permitted to proceed.

D. Privilege of Closing Debate. The Council Member moving the adoption of an ordinance, resolution, or other matter shall have the privilege of closing the debate after a full discussion has been had on said item as determined by the Mayor.

E. Move to Reconsider. A motion to reconsider any action taken by the Council may be made prior to the close of such meeting wherein such action was taken. Such motion must be made by a member of the prevailing side, but may be seconded by any member, and may be made at any time and have precedence over all other motions while a member has the floor. It shall be debatable. Nothing herein shall be construed to prevent any member of the Council from making or remaking the same or any other motion at a subsequent meeting of the Council.

F. Reference to Roberts' Rules of Order. Where not addressed in the body of this resolution, all questions as to procedure and debate shall be resolved by the City Attorney's interpretation of Roberts' Rules of Order, Newly Revised Edition.

SECTION 17. ADDRESSING THE COUNCIL
Any person desiring to address the Council on matters not listed on the agenda shall first secure the permission of the Mayor during the period allowed for Oral Communications. On matters listed on the agenda, persons may request the permission of the Mayor to speak on a matter at the time it is being considered by the City Council.

A. Written Communications. Interested parties or their authorized representatives may address the Council by written communications with regard to matters under discussion.

Written communications submitted prior to the start of the meeting will be provided to the Council prior to the discussion. All written communications on items appearing before the

Council received prior to or after consideration will not be read aloud or entered into the official record unless otherwise provided by approval of the Mayor.

B. Oral Communications. Individuals, or their authorized representatives, may address the Council by oral communications on any matter concerning the City's business, or any matter over which the Council has control or jurisdiction.

C. Audio and Visual Aids. The use of City equipment for audio and/or visual aids is prohibited except as approved by the Mayor, City Manager, City Clerk, Chief Deputy City Clerk, or Deputy City Clerk.

D. Council Response to Oral Communications. Matters brought before the Council under Oral Communications shall be referred to staff for additional information and/or report if deemed appropriate by two (2) members of the Council. No formal action shall be taken.

SECTION 18. ADDRESSING THE COUNCIL AFTER MOTION IS MADE After a motion is made by the Council, no person shall address the Council without first securing the permission of the Mayor to do so.

SECTION 19. MANNER OF ADDRESSING COUNCIL—TIME LIMIT AND

MAYORAL DISCRETION
Each person addressing the Council shall step up to the microphone located on the podium, give their name or otherwise identify themselves in an audible tone of voice for the record, and shall limit their address to three (3) minutes unless reasonably revised by the Mayor due to special circumstances, such as ten (10) or more speakers wishing to speak during the Oral Communication portion of the meeting or on a single Public Hearing item. Speakers may not transfer any portion of their time to others or be allowed an extension of time to speak on behalf of others unless authorization is provided by the Mayor. All remarks shall be addressed to the Council as a body and not to any individual member thereof. No person, other than the Council and the person having the floor shall be permitted to enter into any discussion, either directly or through a member of the Council, without the permission of the Mayor. No question shall be asked to a Council Member, City Attorney, or City Manager except through the Mayor. When called upon by the Mayor, the City Manager may, when deemed appropriate, refer the question to a staff member.

On agenda items that receive ten (10) or more requests to speak, the Mayor may: 1) move placement of the item on the agenda to facilitate the flow of all agenda business; 2) may limit the time allotted to speakers on an item; 3) may limit the total time allots for public comment on an individual item.

SECTION 20. ABSTENTION FROM VOTING
A Council Member may abstain from voting on any ordinance, resolution, or other motion.

SECTION 21. CITY ATTORNEY OPINIONS
Requests for formal opinions from the City Attorney must be approved by two (2) of the Council Members.

SECTION 22. ORDINANCES, RESOLUTIONS, MOTIONS & CONTRACTS A. Presentation of Ordinances. No ordinance shall be prepared for presentation to the Council unless ordered by two (2) members of the Council, or requested by the City Manager, or prepared by the City Attorney on his/her own initiative.

B. Prior Approval by Administrative Staff. All ordinances, resolutions, and contract documents shall, before presentation to the Council, have been approved as to form and legality by the City Attorney or their authorized representative, and shall have been examined and approved for administration by the City Manager or their authorized representative.

SECTION 23. REPORTS, RESOLUTIONS, & ORDINANCES TO BE FILED WITH CLERK
All reports, resolutions, and ordinances shall be filed with the Office of the City Clerk and entered in the minutes.

SECTION 24. ADJOURNMENT
A motion to adjourn shall always be in order and decided without debate.

SECTION 25. CERTIFICATION
The City Clerk has certified to the passage and adoption of the resolution, and the same has thereupon taken effect and is in force.

BOARDS, COMMISSIONS, AND COMMITTEES POLICY

PURPOSE:

Public involvement is crucial to the City’s decision-making process, and appointed advisory bodies are an important and valued part of City government. There are particular areas of decision-making which benefit from the advice and counsel of qualified residents. By advising the City Council and City staff, bringing new ideas to the table, and representing all of the diverse elements of our community, advisory bodies assist the City Council in making the best, most informed decisions possible, for the benefit of the entire Covina community. The Covina Municipal Code provides for the establishment of advisory bodies including boards, commissions, and committees to advise the City Council and provide ongoing citizen input into policies and issues affecting the Covina community.

The purpose of this Policy is to outline those Council policies pertaining to the City’s Boards and Commissions and set forth a structure that encourages meaningful involvement by the community in decision-making. Boards and Commissions are created by the City Council for the following general purposes:
 Gather facts and focus attention on specific matters within their area of responsibility, advise the City Council on policy issues, and recommend actions and alternatives for City Council consideration and approval.
 Provide a forum and opportunity for broad community participation in the identification and prioritization of issues.
 Facilitate unbiased reconciliation of contradictory viewpoints among interested parties.  Assist in balancing community desires with municipal needs, responsibility, and resources.  Recommend to the City Council specific policy-related issues for possible Council review and action.

Additionally, each board and commission has specific assignments or areas of responsibility as established by this Policy.

Committees may be created by resolution of the City Council, as needed, to study specific issues or matters that are limited in scope. The length of the assignment would be shorter in duration than the standing, or ongoing, commissions and boards. Ad hoc committees may be established to facilitate the study of Council-directed or staff-requested initiatives. These committees would be project-specific and would function only for the duration of the project.

Boards and commissions are not responsible for administrative/operational matters of the City nor the adoption or implementation of Council policy, except as requested by the City Manager or his/her designated staff.

SECTION 26. BOARDS AND COMMISSIONS

The City Council hereby establishes six Council-appointed boards and commissions:
 Finance Advisory Commission – Advises the City Council on finance-related policies and issues, including the City’s annual operating and capital improvement program, and reviews, evaluates, and monitors Community Development Block Grant (CDBG) programs.
 Library Board of Trustees – Solicits the views of the community and advises the Library Services Director about the policies and operations that promote the efficiency of the Library. The Board may make and enforce all rules, regulations, and bylaws necessary for the administration, government, and protection of the Library under its management, and all property belonging thereto.
 Parks and Recreation Commission – Advises the City Council on matters pertaining to the community service needs of the citizens of Covina relating to cultural and historical activities/programs and special events, facilities, and park maintenance, public recreational services, senior services, and youth services. The Commission will be expected to be visionaries, be open minded to meet the ever-changing interests of the diverse, multicultural community, receive input from individuals and community organizations, and participate in the development of facilities, programs, and services that accommodate the needs of the community.
 Planning Commission – Conducts hearings related to variances, conditional use permits, and zoning regulations; reviews the General Plan; and conducts other studies as required or authorized.
 Transportation & Mobility Advisory Commission – Serves as an advisor and makes recommendations to the City Council in matters pertaining to the operation and management of the City’s transportation and parking systems and provides a public forum for citizen input on related matters. The Commission may discuss, analyze, evaluate, and make recommendations to the City Council on short and long-range measures to enhance the City’s transportation and parking systems.
 Youth Accountability Board – Enriches the community through intervention into the behavior and activities of first-time juvenile offenders who have committed a minor offense.

SECTION 27. ELIGIBILITY AND MEMBERSHIP
A. Compensation – Board, commission, and committee members serve without compensation, unless provided for by resolution of the City Council.

B. City Employment Prohibited – Board, commission, and committee members shall not hold any paid office or employment in the City Government, except as provided herein.

C. Spouses, Household Members, and Relatives – Individuals shall not be eligible to serve on a board or commission, if the individual has a spouse, household member living under the same roof, or has a parent, step-parent, grandparent, child, sister, brother, niece, nephew, uncle, or aunt of the individual or of the individual's spouse that is currently serving as a member of the City Council, or employed as the city manager, assistant city manager, assistant to the city manager, city attorney, department director, assistant director, or the equivalent thereof, for the City of Covina.

D. Concurrent Service – Members of boards or commissions listed herein may serve on more than one commission or board at the same time, except in the case where a conflict arises.

E. Specific Membership Requirements

1. Finance Advisory Commission – This up to 10 member commission serves in an advisory capacity to the City Council in matters pertaining to the City’s finances, reviews and makes recommendations on finance-related policies and issues, including the annual operating and capital improvement program, and reviews, evaluates, and monitors Community Development Block Grant (CDBG) programs. Membership in this Commission is open to local business people and property owners in the City, and the city treasurer. The city treasurer shall serve as a non-voting member of the Commission.

2. Library Board of Trustees – Formed pursuant to Chapter 2.44 of the Covina Municipal Code. This five-member board acts in an advisory capacity to the City Council on library-related issues. Each member shall be a resident of the City and have been a resident for at least one year prior to appointment.

3. Parks and Recreation Commission – This five-member commission acts in an advisory capacity to the City Council in matters and services pertaining to parks, open space, playgrounds, entertainment, other cultural and recreational activities. Each member shall be a resident of the City.

4. Planning Commission – Formed pursuant to Chapter 2.28 of the Covina Municipal Code, this five-member commission acts in an advisory capacity to the City Council and has some decision-making authority on land use and development of the City. Each member shall be a resident of the City.

5. Transportation & Mobility Advisory Commission – This five-member commission acts in an advisory capacity to the City Council concerning policies affecting the City’s transportation and parking systems. Membership in this Commission is open to residents in the City of Covina and business owners within the boundaries of Vehicle Parking District No. 1.

6. Youth Accountability Board – Consists of up to 10 members who must be dedicated to enriching the community through intervention into the behavior and activities of first-time juvenile offenders who have committed a minor offense. Highly desirable applicants will either reside or work in Covina and be graduates of the Covina Police Department Citizens’

Academy. Board members are subject to a thorough background investigation and will be required to sign a confidentiality notice pertaining to all juvenile matters heard by the Board.

SECTION 28. RECRUITMENT, APPOINTMENT, AND SELECTION
A. Appointment

1. The City Council shall have the authority to appoint individuals to a board or commission. Appointed members of boards and commissions serve at the pleasure of the City Council, pursuant to Government Code Section 36506. Appointment to a board or commission is a privilege and a responsibility. It signifies the City Council’s confidence in the member’s wisdom and judgment and places upon the member the duty to prepare for and attend meetings and consistently work toward and vote in a manner that promotes the public interest. Members are not selected to represent a business, area of the community, school, or organization. Each member, and the board or commission, as a whole, is concerned with the general public good.

Where personal interest conflicts with the general welfare of the public, the latter must prevail.

2. When a vacancy exists, applications will be received by the City Clerk’s Office and provided to the City Council for consideration of appointment. If a vacancy occurs, other than by expiration of the term, such vacancies shall be filled by appointment for the unexpired portion of the term. The City Councilmember who nominated the vacating board or commission member shall nominate a replacement.

3. Prior to appointment, prospective members may be interviewed by the entire city Council at a study session meeting pursuant to the Ralph M. Brown Act which requires that all discussions and deliberations by the City Council regarding appointments or confirmation of appointments are to take place in public at regular or special meetings of the body.

4. City Councilmembers will make appointments at a regular or special meeting. All appointments whether initial, due to vacancy, or reappointment shall be subject to ratification of a majority of the City Council.

5. Members shall be appointed for a term of four years expiring on June 30; except for members of the Library Board of Trustees whose terms shall be for three (3) years pursuant to California Education Code Section 18911.

B. Oath of Office
Each board and commission member, before entering upon the discharge of the duties of his/her office, shall receive the City’s Code of Conduct, Resolution No. 09-6748, and take, subscribe to, and file with the Office of the City Clerk or his/her designee the following oath or affirmation:
“I do solemnly swear (or affirm, as the case may be) that I will support the Constitution of the United States and the Constitution of the State of California, and that I will faithfully discharge

the duties of the office of (here inserting the name of office) according to the best of my ability.”
Each board and commission member shall have the opportunity to receive a ceremonial Oath of Office at a regularly-scheduled City Council meeting.

C. Vacancies and Recruitment
Through the Offices of the City Manager and City Clerk, efforts will be made to fill board or commission vacancies as soon as practical. Upon notification of a vacancy, whether scheduled or unscheduled, staff shall inform Council of the status of recruitment efforts to fill the vacancy.

D. Training, Conferences, and Disclosure Obligations

1. Training shall be provided to all board and commission members by the City, including an orientation session for new members. Training shall be delivered as deemed necessary by the Council and/or City Manager and may include topics germane to a specific board or commission and/or training generic to all boards and commissions (e.g. ethics training or “how to run a meeting” for board and commission chairs).

2. Conferences are conducted periodically by outside agencies to assist board and commission members in meeting their respective responsibilities more effectively. The City’s interests are often served by participation in the educational and training programs offered at the conferences. Each member of City boards and commissions may attend related training and/or conferences, provided that the conference subject matter pertains directly to the function of the board and commission and that funds for this purpose have been budgeted. Members are also responsible for attending training required pursuant to State law.

3. Designated boards and commissions are subject to conflict of interest provisions of the Political Reform Act and must file Statements of Economic Interests. Statements must be filed within 30 days of taking office and thereafter annually, as well as within 30 days of leaving office.

SECTION 29. OFFICERS
A. Selection of Chair and Vice-Chair
Each board and commission shall, at the first regular meeting in July of each year, or during the next regularly-scheduled meeting if a July meeting is not otherwise held, elect one of its members to serve as presiding officer, also known as the chair. The Chair will serve commencing after the end of the meeting. The selection of chair and vice-chair shall be the last item on the agenda at the regularly-scheduled meeting.

B. Chair and Vice-Chair – Roles and Responsibilities

1. Chair – Also known as the Presiding Officer, oversees the meetings of the board or commission, and follows the Ralph M. Brown Act (Brown Act) requirements for conducting meetings, and coordinates the scheduling of special meetings or cancellation of a meeting with the staff liaison.

2. Vice-Chair – Serves as the Presiding Officer in the absence of the Chair.

SECTION 30. MEETINGS, ATTENDANCE AND QUORUMS
A. Meetings

1. Each board and commission shall be scheduled to meet regularly on a day and time determined by the board or commission and approved by the City Council.

2. As a matter of policy, it serves the public interest to have the greatest possible public access to commission meetings. Meeting locations shall be selected according to the following guidelines:
 Meeting rooms should be of a size adequate to allow for public participation.  Commissions should meet in a location permitting recurring usage of that location to the greatest extent possible.
 Boards and commissions should preferably meet in the Council Chamber or another facility with adequate parking, interior space, lighting, and accessibility to promote public participation.

3. All board and commission meetings, including special meetings, shall be open to the public and held in a manner provided for in the Brown Act, California Government Code Section 54590, as it may from time-to-time be amended.

4. All board and commission meetings shall operate under Parliamentary Procedure.

Should this Policy and Parliamentary Procedure conflict, this Policy shall take precedence.

5. A majority of the appointed members of the board or commission shall constitute a quorum for the transaction of business.

B. Attendance

1. Regular attendance at the board or commission meeting is critical. A quorum, or majority, of the members is required to conduct business, and unexcused or repeated absence from meetings adversely affects the work of the advisory body and inconveniences the other members. The boards and commissions need the benefit of every member’s expertise and judgment in formulating quality recommendations to the Council.

2. Each member of a City board and commission is expected to attend all regularlyscheduled meetings, and as many special meetings as possible. When a board or commission member knows in advance that he/she will be absent from a meeting, the member shall give advance notice to the Chair and/or staff liaison.

3. The board/commission chair shall, in consultation with the staff liaison, propose that each absence be “excused” or “unexcused”. Absences from special meetings shall be recorded but shall not be classified as “excused” or “unexcused”. a. Excused Absences – excused absences include work-related conflicts, illness or other medical reasons, and personal conflicts including scheduled vacations when notice is provided in advance. Generally, failure to inform the chair or staff liaison prior to the meeting shall result in an unexcused absence unless extenuating circumstances prevent advance notice.
b. Unexcused Absences – unexcused absences from more than 25% of all regularly scheduled meetings over any 12 consecutive month period, shall result in further review by the City Council. The City Council, in its sole discretion, may declare that a member’s seat is vacant based on attendance records.

4. Board and Commission members are responsible for monitoring their own attendance records. The staff liaison shall record the attendance of board and commission members in a uniform manner in the meeting minutes and, upon request from the City Council, prepare the reports of all the City’s boards and commissions showing the attendance of each member at both regular and special meetings during the past 12 months. The percent of regularly-scheduled meetings attended shall only be shown for board and commission members having been in office at least 12 months.

5. Council shall take into consideration board and commission member attendance records, including tardiness, when evaluating the overall performance of board and commission members.

C. Quorum
Boards and commissions have a quorum present when a majority of their total membership is present. “Total membership” means the number of members indicated in Section 3 of this Policy.

D. Majority and Abstentions
Board and/or Commission motions shall be approved by a majority of legal votes cast.

Members who fail to vote are presumed to have waived the exercise of their right and to have consented to allow the will of the organization to be expressed by those voting. The tabulation of a vote is based on the number of members present and voting. Abstentions must be recorded

in the minutes but are not counted, since a member who abstains voluntarily relinquishes his or her vote, and is not counted in the results.

SECTION 31. GENERAL AND SPECIFIC DUTIES
Aside from obligations related to attendance and training noted elsewhere in this Policy, the general and specific duties for all board and commission members are:

A. General Duties

1. Gather facts and focus attention on specific matters within their area of responsibility.

2. Advise the City Council on policy issues, make recommendations, and propose alternatives for City Council consideration.

3. Provide a forum and opportunity for broad community participation in the public process.

4. Facilitate reconciliation of contradictory viewpoints among interested parties.

5. Assist in balancing community desires with municipal responsibility and available resources.

6. Recommend to the City Council specific policy-related issues for possible Council study and action.

B. Specific Duties

1. Finance Advisory Commission
a. Reviews and analyzes financial and investment information including the annual operating and capital improvement program.
b. Advises the City Council on finance-related policies and matters. c. Reviews, evaluates, and monitors Community Development Block Grant (CDBG) programs, and makes recommendations to the City Council on the allocation of funding.

2. Library Board of Trustees
a. Reviews and make recommendations on the Library Sub-Element of the General Plan.

b. Assesses community conditions which directly affect Library goals and policies and encourage efficiency in operations.
c. Reviews and make recommendations regarding library-related grant applications and funding allocations.

3. Parks and Recreation Commission
a. Advises the City Council on matters pertaining to recreation services, cultural activities and special events, senior services, youth services, human relations, and historical preservation.
b. Fosters, enhances, and recognizes volunteer opportunities for people of all ages within the community.

c. Provides input to the Planning Commission and City Council on matters pertaining to the design and features of parks, community centers, and senior centers that affect the provision of recreation and related services. d. Reviews, analyzes, and recommends programs and activities directed toward enhancing the recreation, social, and senior service opportunities available to all persons in our community.
e. Reviews, analyzes, and recommends programs and activities that enhance communication and relationships between residents, private and public agencies, local institutions, and businesses in our community.

4. Planning Commission
a. Prepares, adopts, and recommends to the City Council a comprehensive, longterm plan for the physical development of the City, which shall be known as the City of Covina General Plan.
b. Prepares, adopts, and recommends to the City Council plans based on the General Plan and drafts of such regulations, programs and legislation as may, in its judgment, be required for the systematic execution of the General Plan (General Plan).
c. Acts on the advisory agency of the City Council in connection with the administration of the State Map Act.
d. Hears and makes determinations on applications for variances, unclassified use permits, tentative tract and parcel maps, as well as precise plans of design in accordance with adopted rules and procedures.

e. Investigates, hears, and recommends to the City Council plans for the improvement and beautification of the City, including such matters relating to changes of zoning regulation and district.
f. Administrates the Historic Preservation duties outlined in Chapter 17.81 of the Covina Municipal Code.

g. Performs all other duties as may be imposed by law or the City Council.

5. Transportation & Mobility Advisory Commission
a. Studies data and statistics, makes reports, holds hearings, and makes recommendations to the City Council on matters relating to traffic safety and parking management programs in the City.
b. Reviews and makes recommendations on Federal, State and regional policy proposals related to bicycles, pedestrians, traffic safety, parking and mobility. c. Reviews and makes recommendations on the applicable sections of the General Plan.

6. Youth Accountability Board
a. Attends bi-monthly meetings during evening hours at the Covina Police Department to review cases referred to the Youth Accountability Board Program.
b. Meets with juvenile offenders and their parents.
c. Drafts and presents “accountability contracts” designed to address the juvenile’s behavior and any other issues to parent(s) and juvenile for agreement. d. Reviews accountability contracts to monitor progress and ensure compliance of participants.

C. Additional Duties
Additional duties may be conferred upon specific boards and/or commissions by the City Council. These shall be memorialized via the City Charter or by revision to this Policy.

SECTION 32. ADMINISTRATION
A. Staff Liaison – The City Manager shall appoint a staff liaison to provide support to each board and commission. The staff liaison to each board and commission shall serve as the recording secretary for the commission and is responsible for maintaining the record of resolutions, findings, determinations, and minutes as required.

B. Communications – In addition to their role as advisors to the Council, boards and commissions function as a communication link between the community and the City, explaining City programs and recommendations, advocating established City policy and services, as well as providing a channel for citizen expression.

C. Board and Commission Reports – In order for the City Council to oversee the progress, accomplishments and challenges, each board and commission shall submit, upon request, to the City Council a report that includes, at a minimum, the board/commission’s meeting dates, attendance sheets, a summary of the board/commission’s accomplishments in the past 12 months and goals for the next 12 months. Upon request, the City Council will conduct a joint meeting to discuss the report and the board/commission’s progress and challenges in meeting its goals and objectives.

D. Joint Meetings – The City Council shall consider joint study sessions with boards and commissions as warranted.

E. Recognition – An annual event to recognize the service of all board and commission members, as well as citizens serving on special Council ad-hoc committees, shall be coordinated through the Office of the City Manager. Outgoing board and commission members who have served their full term shall receive a certificate of appreciation and a small memento of appreciation.

F. Resignation/Completion of Term – When a board or commission member resigns from his or her seat, the member shall notify the City Council in writing (email, fax, or letter), with copies to the staff liaison, City Clerk and City Manager, indicating the effective date for resignation.

G. Removal
A person appointed by the City Council to any board or commission shall continue to serve as a member thereof except when:

1. The person’s term of office expires and a different person has been appointed.

2. The person voluntarily resigns.

3. The City Council vacates a position after reviewing a person’s attendance record.

4. The person has been removed from office by the City Council.

A majority vote of the City Council may remove any member of a board or commission for any reason including, but not limited to, conduct unbecoming a public official, violating the City’s conflict of interest ordinance, or failing to comply with statutory requirements such as the filing requirements under the Political Reform Act. Conduct unbecoming a public official includes the kind of conduct that any reasonable board/commission member would know is incompatible or inimical to public service, would indicate a lack of fitness to perform the functions of a Commissioner, or would discredit or cause embarrassment to the City.

Any member of the City Council may initiate a person’s removal from a board or commission by requesting at a regular City Council meeting that consideration of the person’s removal be placed on the Council’s agenda at a regular or special meeting for discussion and potential action. The City Clerk shall notify the person affected of the time and place of the meeting.

When the item is on the City Council agenda, the City Council may, by majority vote, remove the person from a board or commission.

SECTION 33. BYLAWS
Boards and commissions may craft additional bylaw provisions specific to the group, including establishing regular meeting dates, times and locations, as long as the bylaws do not conflict with Sections 1 through 7 above. Any bylaw provisions and revisions thereto must be approved by the City Council.

ATTACHMENT F
RESOLUTION CC 2025-61

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, UPDATING THE CITY’S FRAUD DETECTION POLICY
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, on November 18, 2014, the City established a fraud detection policy via Resolution No. 14-7306; and
WHEREAS, on August 16, 2022, the City Council updated the Fraud Detection Policy to designate the elected City Clerk to receive complaints of fraud; and WHEREAS, the City Council desires to delegate the Fraud Detection Policy to the Chief Deputy City Clerk and include updated whistleblower protection.

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

SECTION 1. Approve and adopt the attached Fraud Detection Policy.

SECTION 2. This Resolution shall rescind, supersede, and take the place of all provisions of all previous existing Resolutions, orders, and policies of the City pertaining to the subject matter to the extent that they conflict with this Resolution.

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 3rd day of June, 2025.

City of Covina, California
BY:

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

Resolution CC 2025-61 Page 2 of 2

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-61 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3rd day of June, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

Resolution CC 2025-61 Exhibit A
Policy Name: Fraud Prevention and Detection Effective Date: ________, 2025 Fraud Hotline: 626-384-5404

PURPOSE
The City of Covina (City) is committed to protecting taxpayer dollars and assets from fraud and recovering losses as a result of fraudulent activities. The Fraud Prevention and Detection Policy is established to facilitate the development of controls which will aid in the prevention and detection of fraud against the City. The Policy intends to empower the Chief Deputy City Clerk to initiate investigations and report findings to the City Manager. The City website contains a link to a Fraud and Abuse Reporting page, which includes a 24-hour Fraud Hotline (Hotline). This page contains information for the reader on how to report a potential fraud and how the report will be handled.

Fraud awareness and reporting posters have been distributed to City facilities for posting on bulletin boards. Brochures informing the public of this reporting tool will be placed at all public counters.

30.10 POLICY
Under the direction of the Chief Deputy City Clerk, it is the policy of the City to identify, and promptly investigate, any employee behavior that may be considered "fraud" or misuse of City assets. The Chief Deputy City Clerk shall also ensure that administrative officials are held publicly accountable for their use of public funds and other resources at their disposal.

30.20 PROCEDURES

30.21 City Management Responsibilities
The City Manager's Department is responsible for developing and maintaining an effective system of internal control that safeguards taxpayer assets. As part of this Policy, under the direction of the City Manager, the Finance Director will implement administrative regulations that will protect assets from being fraudulently misappropriated. The administrative regulation will include a regular review of fraud risks and the creation of internal controls to combat any perceived risks, a process to control reporting of transactions to protect against fraudulent reporting and/or accounting, require management to develop adequate internal controls to prevent and detect fraud.

The City Attorney is responsible for recovering losses from fraudulent activities. Individual departments are responsible for reporting suspected acts of fraud to the supervisor, Department Director, City Manager, Chief Deputy City Clerk, or the Hotline.

30.22 Process for Handling Suspected Acts of Fraud
Complaints of fraud may be reported to the Hotline or submission of the online reporting form through a link on the City website. The Chief Deputy City Clerk will notify the City Manager and the appropriate Department Director of the reported allegation of fraudulent or irregular conduct upon the commencement of the investigation, to the extent practical. The Chief Deputy City Clerk’s primary responsibility will be to conduct a preliminary inquiry to determine if the suspected act merits further action. If it is determined that the suspected activity warrants further

investigation, the City Manager and/or Human Resources and/or Finance Director will conduct the investigation. If the fraud requires further investigation of apparently discernable criminal conduct, the City Manager will turn the matter over to the Police Department.

A. Suspected Acts of Fraud Reported or Uncovered by City Employees If an employee suspects and reports a suspected act of fraud, the first notification should be made to the employee's immediate supervisor. If the employee suspects that the Immediate supervisor is involved, the employee should report their findings directly to the Department Director. If the employee suspects that the Department Director is involved, the employee should report their findings directly to the Hotline. If the employee is not comfortable bringing this to the attention of the chain of command, the employee has the option of directly reporting their findings to the Hotline. After a suspected act of fraud is reported the Chief Deputy City Clerk will begin the investigation and determine if the suspected action warrants a further investigation. If the information received via the Hotline lacks sufficient data to determine if an investigation is warranted, the Chief Deputy City Clerk may contact the employee (if the contact information has been provided) for additional data. If the suspected action does not warrant a further investigation, no further action shall be taken. If the suspected act of fraud warrants further investigation, the Chief Deputy City Clerk will follow the process outlined above.

B. Suspected Acts of Fraud Reported or Uncovered by Outside Persons If an outside party reports a suspected act of fraud to a City employee, the outside party should be directed to the Hotline.

C. Suspected Acts of Fraud Reported by Elected Officials or City Commissioners If an elected official or member of a City commission suspects fraud, he or she shall report this act to the City Manager.

D. Whistleblower Protections for City Employees
When a City employee has reason to believe that their employer is violating a state or federal statute, or violating or not complying with a local, state, or federal rule or regulation, they may utilize the Fraud Prevention and Detection Policy to disclose this information to appropriate authorities as set forth in this Policy. Pursuant to California Labor Code Section 1102.5, employees are protected when they provide information to or testify before a public body conducting an investigation, hearing or inquiry, when the employee has reasonable cause to believe that the information discloses:

1. A violation of a state or federal statute;

2. A violation or noncompliance with a local, state, or federal rule or regulation; or

3. With reference to employee safety or health, unsafe working conditions, or work practices in the employee’s employment or place of employment.

A whistleblower can also be an employee who refuses to participate in an activity that would result in a violation of a state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation. Even if an employee does not engage in such protected activity, but their employer believes they did or will engage in protected activity in the future, they are perceived to be a whistleblower and are protected. An employer may not retaliate against an employee who is a whistleblower or is perceived to be a whistleblower.

30.23 Suspected Data Breach
In the event of a data breach of employee and/or customer information, per California Senate Bill (SB 46) (2013), the City will comply with the notification requirement providing the security breach notification in electronic form and direct the person whose information has been breached to promptly change user name or security question as applicable, or take other appropriate steps.

SB 46 further specifies that in the case of a breach of specified personal information involving login credentials of an e-mail account, the responsible person or agency should not send the security breach notification to an e-mail address, but may instead comply with the notification requirement in another method that provides clear and conspicuous notice.

30.24 Reporting Requirements
Once an individual has reported alleged fraud, the following three (3) processes will be followed:

1. Level 1 - After a suspected act of fraud has been reported to the appropriate level of City staff, and/or then to the Hotline, the Chief Deputy City Clerk will determine whether further action is necessary. If the Chief Deputy City Clerk determines the accusation has no merit, no further action will be taken. At this level, employee confidentiality is maintained.

2. Level 2 - After a suspected act of fraud has been reported to the appropriate level of City staff, and then to the Hotline, and if the suspected act of fraud has been determined to have merit, an appropriate investigation begins. At this level, only the investigating departments, the City Manager, and Human Resources are contacted.

3. Level 3 - An investigation has determined that fraud has taken place. All appropriate criminal and/or administrative actions are underway. The Finance Department shall notify the City's external auditors of known acts of fraud that have reached the Level 3 status.

DEFINITIONS
Fraud - For the purposes of this Policy, fraud is defined as: the intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right. In some instances, intentional fraud may be considered criminal. Behavior considered by the City of Covina to be fraudulent includes but is not limited to the following:
 Falsifying job-related expenses.
 Forgery or unauthorized alteration of documents such as checks, promissory notes, time sheets, agreements, purchase orders, etc.

 Misrepresenting facts in order to obtain City equipment including cash, notes, equipment, furniture, etc.
 Knowingly authorizing payments for goods not delivered or receiving payments for services not rendered.
 Knowingly falsifying records of cash or money transactions.  Misrepresenting accounting/budget numbers/financial statements to conceal employee theft.
 Misrepresenting the cost of a project so that funds may be used otherwise.  Misrepresenting the cost of uniforms.
 Misrepresenting contractor qualifications to secure an agreement so that the employee receives remuneration from the contractor.

City - City of Covina

Policy - Fraud Prevention and Detection Policy
Chief Deputy City Clerk - City of Covina Chief Deputy City Clerk Hotline - Fraud and Abuse Reporting page/phone line
Elected Official – City of Covina Council members, City Clerk, and City Treasurer

Government Code 53087.6.

(a) (1) A city, county, or city and county auditor or controller who is elected to office may maintain a whistleblower hotline to receive calls from persons who have information regarding fraud, waste, or abuse by local government employees.
(2) A city, county, or city and county auditor or controller who is appointed by, or is an employee of, a legislative body or the government agency that is governed by the city, county, or city and county, shall obtain approval of that legislative body or the government agency, as the case may be, prior to establishing the whistleblower hotline. (b) The auditor or controller may refer calls received on the whistleblower hotline to the appropriate government authority for review and possible investigation. (c) During the initial review of a call received pursuant to subdivision (a), the auditor or controller, or other appropriate governmental agency, shall hold in confidence information disclosed through the whistleblower hotline, including the identity of the caller disclosing the information and the parties identified by the caller.
(d) A call made to the whistleblower hotline pursuant to subdivision (a), or its referral to an appropriate agency under subdivision (b), may not be the sole basis for a time period under a statute of limitation to commence. This section does not change existing law relating to statutes of limitation.
(e)(1) Upon receiving specific information that an employee or local government has engaged in an improper government activity, as defined by paragraph (2) of subdivision (f), a city or county auditor or controller may conduct an investigative audit of the matter. The identity of the person providing the information that initiated the investigative audit shall not be disclosed without the written permission of that person, unless the disclosure is to a law enforcement agency that is conducting a criminal investigation. If the specific information is in regard to improper government activity that occurred under the jurisdiction of another city, county, or city and county, the information shall be forwarded to the appropriate auditor or controller for that city, county, or city and county.
(2) Any investigative audit conducted pursuant to this subdivision shall be kept confidential, except to issue any report of an investigation that has been substantiated, or to release any findings resulting from a completed investigation that are deemed necessary to serve the interests of the public. In any event, the identity of the individual or individuals reporting the improper government activity, and the subject employee or employees shall be kept confidential.
(3) Notwithstanding paragraph (2), the auditor or controller may provide a copy of a substantiated audit report that includes the identities of the subject employee or employees and other pertinent information concerning the investigation to the appropriate appointing authority for disciplinary purposes. The substantiated audit report, any subsequent investigatory materials or information, and the disposition of any resulting disciplinary proceedings are

subject to the confidentiality provisions of applicable local, state, and federal statutes, rules, and regulations.
(f)(1) For purposes of this section, “employee” means any individual employed by any county, city, or city and county, including any charter city or county, and any school district, community college district, municipal or public corporation, or political subdivision that falls under the auditor’s or controller’s jurisdiction.
(2) For purposes of this section, “fraud, waste, or abuse” means any activity by a local agency or employee that is undertaken in the performance of the employee’s official duties, including activities deemed to be outside the scope of his or her employment, that is in violation of any local, state, or federal law or regulation relating to corruption, malfeasance, bribery, theft of government property, fraudulent claims, fraud, coercion, conversion, malicious prosecution, misuse of government property, or willful omission to perform duty, is economically wasteful, or involves gross misconduct.
(Amended by Stats. 2010, Ch. 80, Sec. 1. (AB 1666) Effective January 1, 2011.)

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 24
Meeting: June 3, 2025
Title: Approval of Professional Services Agreement with ClientFirst Technology Consulting for Technology Master Planning, Land Management Software Assessment, and Utility Billing Software Selection Services
Presented by: Angel Carrillo, Deputy City Manager
Theresa Franke, Interim Finance Director
Recommendation: Authorize the City Manager to execute the attached Professional Services Agreement with ClientFirst Technology Consulting Group, LLC, for a one-year period from June 3, 2025, to June 2, 2026, in an amount not to exceed $178,380.

EXECUTIVE SUMMARY:

To support critical City technology initiatives, staff recommends entering into agreements with ClientFirst Technology Consulting to provide professional consulting services in three areas: land management software evaluation, a citywide technology master plan, and utility billing system selection. These services will help modernize internal operations, improve service delivery to the community, and align the City’s information systems with best practices and future needs.

DISCUSSION:

In the ongoing efforts to maintain a robust and secure information technology system, staff has identified ClientFirst as a vendor to provide necessary assessments. The City has identified three key areas for technology modernization and process improvement:
- The need for a comprehensive assessment and evaluation of the City’s current land management software; - The development of a Technology Master Plan (TMP) to guide strategic IT investments over the next five years; - The evaluation and selection of a new utility billing system to better meet operational needs and resident expectations.

ClientFirst has extensive experience working with California municipalities and offers independent, vendorneutral services. The firm has previously delivered successful outcomes for numerous public agencies in areas including process reviews, system selection, project management, and IT strategic planning.

1. Land Management Software Assessment & Vendor Evaluation Scope includes reviewing existing permitting, inspections, code enforcement, and GIS systems. Deliverables include process reviews, system requirements documentation, and preparation of Requests for Qualifications and Information.

2. Technology Master Planning
Scope includes assessment of IT infrastructure, department applications, cybersecurity, staffing, and development of a prioritized implementation roadmap. It includes department-level workshops and plan presentation.

3. Utility Billing Software Selection Consulting

Scope includes business process review, requirements documentation, vendor RFP preparation, proposal evaluations, and support during contract negotiation. Project methodology includes four phases and is tailored to municipal utility operations.

ClientFirst is a highly qualified firm with decades of local government expertise, no software reselling interests, and a collaborative, hands-on approach to implementation planning.

FISCAL IMPACT:

Funding for each engagement is available in the Information Technology and Water Utility Funds’ 2025-26 fiscal year budgets as approved by City Council May 6, 2025. The cost breakdown, based on estimated hours and rates, is as follows:
- Land Management Software Assessment: $38,650 (7200-6200-51005) - Technology Master Planning: $94,905 (7200-6200-51005) - Utility Billing Software Selection: $44,825 (account #6010-0500-51005) Total Combined Cost: $178,380
These are fixed-fee engagements, and any additional services outside of scope will require prior written approval.

Additionally, to ensure competitiveness with current market pricing for information technology services, staff reviewed five (5) recently awarded contracts between other cities and ClientFirst. These contracts confirmed that the proposed pricing is aligned within current market rates. These cities include Glendora, Seal Beach, Camarillo, Seal Beach, South Gate and Vacaville.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

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PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated June 3, 2025 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and ClientFirst Technology Consulting, a ClientFirst Consulting Group, LLC, dba ClientFirst Technology Consulting (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City desires to utilize the services of Consultant as an independent contractor to evaluate and assist in the selection of a Utility Billing System, assess the Land Management Software currently in the implementation stage, and develop a Technology Master Plan for the City’s computer system.

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 seventy eight thousand three hundred eighty dollars ($178,380) (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.

B. 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

ATTACHMENT A

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mutually agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.

3. Consultant’s Services.

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

B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Consultant Representative shall be David Krout, Managing Partner (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 in conformance with the project timeline as reflected in Scope of Services, attached hereto as Exhibit B.

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.

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4. Method of Payment.

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

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

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

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

6. Independent Contractor.

A. Consultant is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services

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under this Agreement. Consultant shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Consultant’s personnel require to perform any of the services required by this Agreement. Consultant shall perform the services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of the services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.

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

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

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

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

7. PERS Compliance and Indemnification.

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A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform the services under this Agreement, Consultant shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.

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

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

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

Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section 9 into any subcontract that Consultant executes in connection with the performance of this Agreement.

10. Indemnification.

A. Indemnities for Third Party Claims.

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

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

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

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

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

11. Insurance.

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

If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If Consultant has no employees while performing services under this Agreement, workers’ compensation policy is not required, but Consultant shall provide an executed declaration that it has no employees. 4) Professional Liability Insurance [or Errors and Omissions Insurance] with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.

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

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

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

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

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

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

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

12923-0001\1917425v3.doc
I. Evidence of Insurance. Prior to the performance of services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

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

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

12. Mutual Cooperation.

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

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

13. Records and Inspections. Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of ten (10) years. Consultant shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.

14. Termination or Suspension of Agreement.

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

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

12923-0001\1917425v3.doc
Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

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

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

If to City: If to Consultant:

Attn: Angel Carrillo Attn: David Krout
City of Covina ClientFirst Technology Consulting
125 E. College Street 1250 Corona Pointe Ct., Suite 209 Covina, California 9123 Corona, CA 92879

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

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

18. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or

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other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.

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

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

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

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

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

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

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

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

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

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

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

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

City:

City of Covina,
a California municipal corporation
By:

Name: Chris Marcarello
Title: City Manager
ATTEST:

Consultant:

ClientFirst Technology Consulting, a
California Limited Liability Company
By:

Name: David Krout
Title: Managing Partner
By:

Name: Tom Jakobsen
Title: Senior Partner
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents

12923-0001\1917425v3.doc
By:

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

By:

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

EXHIBIT A

APPROVED FEE SCHEDULE
Land Management Software Assessment and Vendor Evaluation Services T. Meser/D. Kraut
C. Hoxie/M.

Truncale Total
Hours 108 70
Rates 225 $                                 205 $
$                           14,350 24,300 $           38,650 $ Technology Master Planning
D. Kraut J.  Federico T. Jakobsen J. Smith T. Soto Total Hours 87 161 70 83 23
Rates 240 $                                 205 $                 240 $             235 $         205 $ $                           33,005 20,880 $           16,800 $       19,505 $   4,715 $          94,905 $ Utility Billing Software Selection Consulting Services
D. Kraut/Jamie T.

Shell J.  Federico Total
Hours 119.5 87.5
Rates 225 $                                 205 $
$                           17,938 26,888 $           44,825 $ Total Cost All Projects 178,380 $

EXHIBIT B

SCOPE OF SERVICES
As described in attached proposals for:
 Land Management Software Assessment and Vendor Evaluation Services (Attachment B-1)
 Technology Master Planning Services (Attachment B-2)
 Utility Billing Software Selection Consulting Services (Attachment B-3)

Attachment B-1

Attachment B-2

Attachment B-3

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. CC 25
Meeting: June 3, 2025
Title: Establishment of Post-Employment Health Savings Plan (PEHP) through Nationwide Retirement Solutions for Police Management Group (PMG) Effective June 3, 2025; and Side Letter Agreement between the City/PMG
Presented by: Christopher Marcarello, City Manager
Joanna Espinosa, Human Resources Manager
Recommendation: 1. Adopt Resolution CC 2025-63, to establish a Post-Employment Health Savings Plan (PEHP) through Nationwide Retirement Solutions for the Police Management Group (PMG) as set forth in City/PMG Memorandum of Understanding (MOU) dated July 1, 2024 – June 30, 2028.; and

2. Authorizing the City Manager to execute a Side Letter Agreement between the City of Covina and the Police Management Group (PMG), revising Article 14.4.D.

EXECUTIVE SUMMARY:

The Resolution authorizes the City Manager to establish a Post-Employment Health Savings Plan (PEHP) with Nationwide Retirement Solutions to comply with the current Memorandum of Understanding (MOU) between the City and Police Management Group (PMG). The PEHP enables qualified PMG employees to transfer ninety percent (90%) of their accrued sick leave at retirement to a retiree health savings account (within applicable IRS regulations and limitations), at the current base hourly rate, to be used for qualifying medical expenses during retirement. The terms and provisions of the PEHP program were negotiated in the current MOU between the City and PMG. In recent months, with the pending retirement of existing PMG members, staff worked with Nationwide Retirement Solutions, who is the City’s current provider for 457(b) and 401(a) plans, to set up the new plan.

BACKGROUND:

On June 18, 2024, the City Council approved a new four (4) year Memorandum of Understanding between the City and Police Management Group (PMG). The PMG is a small bargaining group, representing sworn Police employees in the classifications of Captain and Lieutenant. As a means of encouraging sworn officers to preserve sick leave-related banks, the City and PMG negotiated a new provision for the cash out of unused accrued sick leave at retirement. By establishing a retiree health savings plan, PMG members now have the ability to transfer ninety percent (90%) of their accrued sick leave at retirement to a retiree health savings account at their current hourly base rate of pay (Section 14.3-D).

These accounts, also known as Post-Employment Health Savings Plans (PEHPs), enable retired employees to set aside money, on a tax-free basis, for future qualifying medical expenses during retirement. These expenses include medical insurance premiums and out-of-pocket medical costs, including prescription drugs, co-pays, eyeglasses and other medical expenses. PEHP is a tax-exempt voluntary employees’ beneficiary association (VEBA) trust, which provides employee benefits authorized by IRS Code Section 501 (c)(9).

In recent months, the City contacted Nationwide Retirement Solutions, the current provider for the City’s 457(b) and 401(a) plans, to set up the new PEHP plan. Nationwide has an existing program to address the City’s needs and comply with the provisions of the City/PMG MOU, as well as IRS regulations.

Furthermore, the City and PMG have met and conferred and agree to revise the language set forth in the PMG MOU (Article 14.4 D) to ensure compliance with IRS regulations and limitations.

DISCUSSION:

Staff recommends adoption of the Resolution to establish and implement the PEHP plan for the PMG group; and approve Side Letter.

FISCAL IMPACT:

None.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

ATTACHMENT A
RESOLUTION CC 2025-63

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

CALIFORNIA, ESTABLISHING A POST-EMPLOYMENT HEALTH

SAVINGS PLAN FOR POLICE MANAGEMENT GROUP EMPLOYEES
WHEREAS, the City of Covina (“City”) is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California; and WHEREAS, the City of Covina negotiates and formally adopts Memoranda of Understanding with its various employee bargaining units, and has currently in effect a Memorandum of Understanding between the City and Police Management group with a term of July 1, 2024 through June 30, 2028;
WHEREAS, the terms of said Memorandum of Understanding between the City and Police Management Group require the establishment of a Post-Employment Health Savings Plan for unit employees who wish to designate a portion of their unused accrued sick leave to said plans at the time of retirement (Section 14.3-D);
WHEREAS, the City Council of Covina appointed the City Manager, and any City staff he/she may designate to assist him/her in that role, as the administrator of all benefit plans, including 457(b) and 401(a) defined contribution plans and post-employment health plans for the benefit of the City’s eligible employees, with responsibility for the administration, assets and investments of the Plans; and

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

SECTION 1. The City Council does hereby authorize the City Manager to establish a Post-Employment Health Savings Plan (PEHP) through Nationwide Retirement Solutions for the Police Management Group (PMG) as set forth in City/PMG Memorandum of Understanding (MOU) dated July 1, 2024 – June 30, 2028 effective June 1, 2025.

SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and the same shall thereupon take effect and is in force.

APPROVED and PASSED this 3rd day of June 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor

Resolution CC 2025-63 Page 2 of 2
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-63 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3rd day of June 3, 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

SIDE LETTER OF AGREEMENT

BETWEEN

THE CITY OF COVINA
AND

THE POLICE MANAGEMENT GROUP
This Side Letter of Agreement (“Agreement”) between the City of Covina (“City”) and the Police Management Group (“PMG”) (collectively “Parties”) is entered into with respect to the following:

WHEREAS, on June 18, 2024, the City Council approved a Memorandum of Understanding (MOU) between the City of Covina and the Police Management Group which took effect July 1, 2024; and
WHEREAS, Article 14.4 D (Payout of Accrued Sick Leave Upon Separation or Retirement) of the PMG MOU establishes options for payout of accrued sick leave upon separation or retirement; and
WHEREAS, effective July 1, 2024, per the terms of the approved Memorandum of Understanding, the Parties agreed to allow employees who retired from the City to contribute up to 90% of 800 hours of accrued sick leave into a retiree health savings account; and WHEREAS, the Parties met and conferred to modify the existing language to ensure that the established retiree health savings account provisions are in compliance with applicable IRS regulations and limitations; and
WHEREAS, the Parties met and conferred and agree to revise the language set forth in the Parties’ Agreement; and
THEREFORE, the Parties hereby agree to the following:

Article 14.4 D of the PMG MOU shall be revised as follows:

D. For Employees Retiring from the City Only (New)
Effective July 1, 2024, employees retiring from the City will have ninety percent (90%) of accrued sick leave transferred into a Retiree Health Savings/Reimbursement Account (within applicable IRS regulations and limitations) at his/her then current base hourly rate. The maximum accrued sick leave that can be utilized is one thousand (1,000) hours. For example, an employee with 1,000 hours accrued would receive 90% of his/her accruals, or 900 hours. Any remaining balance will be transferred into the city’s 457(b) plan up to

the annual IRS limit, if available. Any remaining balance may be cashed out or utilized for PERS Service Credit at the employee’s discretion.

This benefit shall be forfeited in any individual case of disciplinary termination.

Parties agree to meet and confer to discuss amendments to the portion of accrued sick leave that is converted into a retiree health savings account.

All other terms of the PMG MOU remain in effect for the term of the MOU.

This side letter shall become effective June 1, 2025, retroactive to July 1, 2024, and only upon City Council approval.

FOR THE CITY OF COVINA
Chris Marcarello Date
City Manager

FOR THE POLICE MANAGEMENT GROUP
Ryan Davis Date
Police Captain
Antonio Zavala Date
Police Lieutenant

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: June 3, 2025
Title: Consideration of Resolutions Authorizing Annexation of Territory to City of Covina Community Facilities District No. 2007-1 (Public Services) (Annexation No. 37), and to Call and Hold a Special Election (270 West Dexter Street, Covina) Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Recommendation: 1. City Council to open the public hearing and consider public testimony and close the public hearing; and

2. Adopt Resolution CC 2025-46, authorizing the annexation of territory to Community Facilities District No. 2007-1 (Annexation No. 37) and authorizing the levy of a special tax and submitting the levy of tax to the qualified electors; and

3. Adopt Resolution CC 2025-47, calling a special election and submitting to the voters of Annexation No. 37 of City of Covina Community Facilities District No. 2007-1 (Public Services), propositions regarding the annual levy of special taxes within Annexation No. 37 to finance public services, and the establishment of an appropriations limit; and

4. Adopt Resolution CC 2025-48 making certain findings, certifying the results of an election and adding property to Community Facilities District No. 2007-1 (Public Services), Annexation No. 37.

EXECUTIVE SUMMARY:

At the April 15, 2025, City Council meeting, the Council adopted the boundary map showing territory proposed to be annexed as Annexation No. 37, and declared its intention to authorize the annexation of that territory to Community Facilities District (CFD) No. 2007-1 (Public Services).

The purpose of the CFD is to finance the public safety and park services that are provided to the territory within the District beyond that provided by the City generally. In Fiscal Year 2024-2025, it has been determined that the cost of these services, for each additional multi-family residential unit, will be $645.38 per year. This program has been conceived with the intention that all future residential development, which results in a net increase of non-exempted residential units, would be required to annex to the CFD. The project at 270 West Dexter Street, Covina will have a new multi-family residential duplex. The special tax will be applicable to the new multi-family residential duplex in Annexation No. 37.

DISCUSSION:

The purpose of the public hearing is to 1) authorize the annexation of territory to the CFD (Annexation No. 37); 2) call and hold an election of property owners within the CFD, and 3) authorize the levy of a special tax within Annexation No. 37 to the CFD. The related resolutions are hereby presented to the City Council, pursuant to the Conditions of Approval for the new multi-family residential duplex to be built at 270 West Dexter Street, Covina, California.

Pursuant to the Conditions of Approval for development of a multi-family development at 270 West Dexter Street, Covina, the applicant agreed to annex to the CFD, or to pay an in-lieu fee based on the financial impact on Police, Fire, Emergency, and Parks services. The builder opted to annex into the CFD. Under the proposed CFD, in Fiscal Year 2024-2025, any newly constructed, non-exempted multi-family residential unit is charged $645.38 per year

for the following services: police, fire protection and suppression, paramedic services, and park maintenance.

This Special Tax appears on the annual Property Tax bill for each unit. The Special Tax authorized by the CFD shall be levied on all units for which building permits were issued on or before May 1 of the preceding fiscal year.

FISCAL IMPACT:

The “Special Tax” authorized by the proposed Community Facilities District (CFD) will generate $1,290.76 annually, based on the new multi-family residential duplex at the FY 2024-2025 tax rate of $645.38 per multifamily unit and will be deposited to Account No. 2740-4800-45800. The Special Tax shall be used to pay for the following additional services in the District: police, fire protection and suppression, paramedic services, and park maintenance. The Special Tax will increase annually by the greater of two percent (2.00%), or the percentage change in the Consumer Price Index.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Staff has determined that the annexation of the does not constitute a “project” under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4) because such annexation involves the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.

Respectfully submitted,

W Dexter St
S
4 t
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Av
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S
3 r
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Av
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W Puente St
ANNEXATION MAP NO. 37
COMMUNITY FACILITIES DISTRICT NO. 2007-1
(PUBLIC SERVICES)

CITY OF COVINA

COUNTY OF LOS ANGELES

STATE OF CALIFORNIA
SHEET 1 OF 1
FILED IN THE OFFICE OF THE CITY CLERK THIS ________
DAY OF ____________, 202_.

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING
PROPOSED BOUNDARIES OF ANNEXATION NO. 37 TO
COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC

SERVICES), CITY OF COVINA, COUNTY OF LOS ANGELES,

STATE OF CALIFORNIA, WAS APPROVED BY THE CITY

COUNCIL OF THE CITY OF COVINA AT A REGULAR
MEETING THEREOF, HELD ON THE ________ DAY OF
_______________, 202__, BY ITS RESOLUTION NO.
_______________.
____________________________________________________

FABIAN VELEZ, CHIEF DEPUTY CITY CLERK

CITY OF COVINA
FILED THIS _______ DAY OF _____________, 202__, AT THE
HOUR OF __________ O'CLOCK __.M. IN THE BOOK ________

OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES
DISTRICTS, PAGE(S) ______ AND AS INSTRUMENT NO.
__________________ IN THE OFFICE OF THE COUNTY

RECORDER IN THE COUNTY OF LOS ANGELES, STATE OF
CALIFORNIA.
__________________________

BY DEPUTY

COUNTY RECORDER

COUNTY OF LOS ANGELES

STATE OF CALIFORNIA

REFERENCE IS MADE TO THAT BOUNDARY MAP OF
COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC

SERVICES) OF THE CITY OF COVINA RECORDED WITH

THE LOS ANGELES COUNTY RECORDER'S OFFICE ON
MAY 18, 2007, AS DOCUMENT NO. 20071218337 IN THE

BOOK OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS.

THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL

SHOWN ON THIS DIAGRAM SHALL BE THOSE LINES AND

DIMENSIONS AS SHOWN ON THE LOS ANGELES COUNTY
ASSESSOR'S MAPS FOR THOSE PARCELS LISTED.

THE LOS ANGELES COUNTY ASSESSOR'S MAPS SHALL

GOVERN FOR ALL DETAILS CONCERNING THE LINES AND
DIMENSIONS OF SUCH LOTS OR PARCELS.

LEGEND

ANNEXATION BOUNDARY
T1 MAP REFERENCE NUMBER
T1
¹

MAP REFERENCE
NUMBER

ASSESSORS

PARCEL NUMBER
1 8444-010-010

ATTACHMENT A

ATTACHMENT B
RESOLUTION CC 2025-46

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

CALIFORNIA, AUTHORIZING THE ANNEXATION OF TERRITORY
TO COMMUNITY FACILITIES DISTRICT NO. 2007-1 (ANNEXATION NO. 37) AND AUTHORIZING THE LEVY OF A SPECIAL TAX AND

SUBMITTING THE LEVY OF TAX TO THE QUALIFIED ELECTORS
WHEREAS, this Council, on April 15, 2025, adopted Resolution CC 2025-28 (hereafter referred to as the “Resolution of Intention”) stating its intention to annex territory to City of Covina Community Facilities District No. 2007-1 (Public Services) (“CFD No. 2007-1”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and WHEREAS, a copy of the Resolution of Intention, which states the authorized services to be provided and financed by CFD No. 2007-1, and a description and map of the proposed boundaries of the territory to be annexed to CFD No. 2007-1 (“Annexation No. 37”), is on file with the City Clerk and the provisions thereof are fully incorporated herein by this reference as if fully set forth herein; and
WHEREAS, on the 3
rd of June, 2025, this Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed annexation of territory to CFD No. 2007-1; and
WHEREAS, at said hearing all interested persons desiring to be heard on all matters pertaining to the annexation of territory to CFD No. 2007-1 and the levy of said special taxes within the area proposed to be annexed were heard and a full and fair hearing was held; and WHEREAS, prior to the time fixed for said hearing, written protests had not been filed against the proposed annexation of territory to CFD No. 2007-1 by (i) 50% or more of the registered voters, or six registered voters, whichever is more, residing in CFD No. 2007-1, or (ii) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the territory proposed to be annexed to CFD No. 2007-1, or (iii) owners of one-half or more of the area of land in the territory within CFD 2007-1 and not exempt from special tax, or (iv), owners of one-half or more of the area of land in the territory proposed to be annexed to CFD No. 2007- 1 and not exempt from the special tax; and
WHEREAS, a boundary map for Annexation No. 37 to CFD No. 2007-1 has been filed with the County Recorder of the County of Los Angeles, which map shows the territory to be annexed in these proceedings, and a copy thereof is on file with the City Clerk.

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

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

SECTION 2. Authorization. All prior proceedings taken by this Council with respect to CFD No. 2007-1 and the proposed annexation of territory thereto have been duly considered and

Resolution CC 2025-46 Page 2 of 4
are hereby determined to be valid and in conformity with the Act.

SECTION 3. Boundaries. The description and map of the boundaries of the territory to be annexed to CFD No. 2007-1, on file with the City Clerk, are hereby finally approved, are incorporated herein by reference, and shall be included within the boundaries of CFD No. 2007- 1, and said territory is hereby annexed to CFD No. 2007-1, subject to voter approval of the levy of the special taxes therein as hereinafter provided.

SECTION 4. Services. The services which CFD No. 2007-1 is authorized to finance are in addition to those provided in or required for the territory within CFD No. 2007-1 and the territory to be annexed to CFD No. 2007-1 and will not be replacing services already available.

A general description of the services to be financed is as follows:

PUBLIC SERVICES
New police services, fire protection and suppression services, paramedic services, and park maintenance, including but not limited to (i) the costs of contracting services, (ii) related facilities, equipment, vehicles, ambulances, fire apparatus and supplies, (iii) the salaries and benefits of City staff that directly provide police services, fire protection and suppression services, paramedic services, and park maintenance respectively, and (iv) City overhead costs associated with providing such services within CFD No. 2007-1. The Special Tax provides only partial funding for Public Services.

SECTION 5. Special Taxes. It is the intention of this City Council that, except where funds are otherwise available, a special tax sufficient to pay for said services to be provided in CFD No. 2007-1 and the territory proposed to be annexed as part of Annexation No. 37, secured by recordation of a continuing lien against all non-exempt real property in Annexation No. 37, will be levied annually within the boundaries of Annexation No. 37 from and after the annexation of such property to CFD No. 2007-1. The special taxes shall be those as originally authorized through the formation of CFD No. 2007-1 and adopted by Ordinance of this legislative body, and no changes or modifications are proposed in the special taxes from those as originally set forth and made applicable to CFD No. 2007-1.

For particulars as to the rate and method of apportionment of the proposed special tax (the “RMA”), reference is made to the attached and incorporated Exhibit “A,” which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within Annexation No. 37 to clearly estimate the maximum annual amount that said person will have to pay on said special tax.

SECTION 6. Election. The provisions of the Resolution of Intention of the City, each as heretofore adopted by this Council, are by this reference incorporated herein as if fully set forth herein.
(a) Pursuant to the provisions of the Act, the proposition of the levy of the special tax within Annexation No. 37 shall be submitted to the voters within Annexation No. 37 at an election called therefore as

Resolution CC 2025-46 Page 3 of 4
hereinafter provided. This Council hereby finds that twelve (12) or more persons have not been registered to vote within Annexation No. 37 for each of the 90 days preceding the close of the hearing heretofore conducted and concluded by this Council for the purposes of these annexation proceedings. Accordingly, and pursuant to Section 53326 of the Act, this Council finds that for purposes of these proceedings the qualified electors are the landowners within Annexation No. 37 and that the vote shall be by said landowners, each having one vote for each acre or portion thereof such landowner owns in Annexation No. 37.
(b) Pursuant to Section 53326 of the Act, the election shall be conducted by mail ballot under applicable sections of the California Elections Code, commencing with Section 4000 of said code with respect to elections conducted by mail. The Council called a special election to consider the measures described and incorporated in the ballot, attached as Exhibit “B,” which election was held on June 3
rd, 2025, (hereafter referred to as “Election
Day”). The City Clerk was the election official to conduct the election and provided each landowner in the territory to be annexed to CFD No. 2007-1, a ballot in the form of Exhibit “B”, which form is hereby approved. The City Clerk has accepted the ballots of the qualified electors received prior to 7:30 p.m. on Election Day, whether received by mail or by personal delivery. (c) This Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days to elapse before said election is for the protection of voters, has been waived by the voters and the date for the election hereinabove specified is established accordingly.

SECTION 7. 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 3
rd day of June, 2025.

City of Covina, California
BY:

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

Resolution CC 2025-46 Page 4 of 4

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-46 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of June, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

Resolution CC 2025-46 Exhibit A

EXHIBIT A

FIRST AMENDED RATE AND METHOD OF APPORTIONMENT

FIRST AMENDED

RATE AND METHOD OF APPORTIONMENT

CITY OF COVINA
COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SERVICES) A special tax as hereinafter defined shall be levied on and collected for Community Facilities District No. 2007-1 (Public Services) of the City of Covina (“CFD No. 2007-1”) each Fiscal Year, commencing in Fiscal Year 2007-2008, in an amount determined by the City Council of the City of Covina through the application of the appropriate Special Tax for “Developed Property,” as described below. All of the real property in CFD No. 2007-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Act” means the Mello-Roos Communities Facilities Act of 1982 as amended, being Chapter

2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any actual ordinary and necessary expense of the City of Covina, or designee thereof or both, to carry out the administration of CFD No. 2007-1 related to the determination of the amount of the levy of the Special Tax, the collection of the Special Tax including the expenses of collecting delinquencies, the payment of a proportional share of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2007-1, fees and expenses for counsel, Special Tax consultant and other consultants hired by the City in relation to CFD No. 2007-1, costs associated with responding to public inquiries regarding CFD No. 2007-1, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2007-1.
“Affordable Housing” means any Unit within CFD No. 2007-1 that is subject to a written and recordable covenant, deed restriction, resale restriction, regulatory agreement or similar agreement with either the City of Covina or the Redevelopment Agency of the City of Covina, which restricts the amount of rent for that Unit to “affordable rent” (as that term is defined in California Health and Safety Code Section 50053) for a period of not less than fifty-five (55) years, or which restricts the purchase price for that Unit to “affordable housing cost” (as that term is defined in California Health and Safety Code Section 50052.5) for a period of not less than forty-five (45) years. A Unit shall no longer be considered Affordable Housing following the expiration or termination of the applicable covenant, restriction or agreement. “Annual Escalation Factor” means for the Special Tax, the greater of (i) two percent (2.00%), or (ii) the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number within the boundaries of CFD No. 2007-1.

“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel number.
“Base Year” means Fiscal Year ending June 30, 2008.
“Boundary Map” means the map of the boundaries for CFD No. 2007-1, as approved by the City Council, and recorded with the County in maps of assessments and community facilities districts.
“Building Permit” means a permit for new construction for a residential dwelling Unit. For purposes of this definition, “Building Permit” shall not include permits for construction or installation of retaining walls, utility improvements, or other such improvements not intended for human habitation.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Special Tax Requirements and providing for the levy and collection of the Special Tax.
“CFD No. 2007-1” means Community Facilities District No. 2007-1 (Public Services) established by the City under the Act.
“City” means the City of Covina.
“City Council” means the City Council of the City, acting as the Legislative Body of CFD No. 2007-1, or its designee.
“Consumer Price Index” means the index published by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Los Angeles-Riverside-Orange County area.
“County” means the County of Los Angeles.
“Developed Property” means all Assessor’s Parcels within CFD No. 2007-1 for which Building Permits were issued on or before May 1 preceding the Fiscal Year for which the Special Tax is being levied, provided that a Final Map was created on or before January 1 of the prior Fiscal Year and that each such Assessor's Parcel is associated with a Lot, as determined reasonably by the City and/or CFD administrator.
“Exempt Property” means all Assessor’s Parcels within CFD No. 2007-1 designated as being exempt from the Special Tax as determined in Section F. “Final Map” means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision.

“Fiscal Year” means the period commencing on July 1 of any year and ending the following June 30.
“Lot” means an individual legal lot created by a Final Map for which a Building Permit could or has been issued.
“Maximum Special Tax” means the Maximum Special Tax determined in accordance with Section C, which can be levied by CFD No. 2007-1 in any Fiscal Year on Taxable Property within CFD No. 2007-1.
“Mixed-Use Property” means all Assessor’s Parcels of Developed Property for which Building Permit(s) have been issued for purposes of constructing Non-Residential Property and Residential Property. Residential Units on Mixed-Use Property shall be classified as MultiFamily Residential. “Multi-Family Residential” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing a residential structure consisting of two or more residential Units that share common walls, including, but not limited to, duplexes, triplexes, town homes, condominiums, apartment Units, and residential Units on Assessor’s Parcels that are considered Mixed-Use Property. “Non-Residential Property” means all Assessor’s Parcels for which a Building Permit was issued for any type of non-residential use.
“Public Property” means any property within the boundaries of CFD No. 2007-1 that is owned by or irrecoverably dedicated to the City, the federal government, the State of California, the County, CFD No. 2007-1, or other public agency. For purposes of this definition, property owned by the Redevelopment Agency of the City of Covina is not considered Public Property and any property owned by the Redevelopment Agency will be subject to the levy of a Special Tax in accordance with Sections C and D herein.
“Public Services” means new police services, fire protection and suppression services, paramedic services, and park maintenance, including but not limited to (i) the costs of contracting services, (ii) related facilities, equipment, vehicles, ambulances, fire apparatus and supplies, (iii) the salaries and benefits of City and Fire District staff that directly provide police services, fire protection and suppression services, paramedic services, and park maintenance, and (iv) City and Fire District overhead costs associated with providing such services within CFD No. 2007-1. The Special Tax provides only partial funding for police, fire protection services, paramedic services, and park maintenance.
“Special Tax” means any special tax authorized to be levied by CFD No. 2007-1 pursuant to the Act to fund the Special Tax Requirement.
“Single-Family Residential” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one single-family residential dwelling Unit.
“Taxable Property” means all Assessor’s Parcels within CFD No. 2007-1 that are not exempt from the levy of the Special Tax.

“Tax Class” means any of the classes listed in Table 1 below. “Undeveloped Property” means all Assessor’s Parcels within CFD No. 2007-1 for which Building Permits have not been issued and that is not classified as Approved Property or Public Property.
“Unit” means any separate residential dwelling unit in which a person or persons may live, which comprises an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use.

B. CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor’s Parcel within CFD No. 2007-1 shall be classified as Developed Property or Exempt Property. In addition, each Fiscal Year, beginning with Fiscal Year 2007-2008, each Assessor’s Parcel of Developed Property shall be further classified as Single-Family Residential, Multi-Family Residential, or Mixed-Use Property.

C. MAXIMUM ANNUAL SPECIAL TAX
The Maximum Special Tax for each Assessor’s Parcel classified as Single-Family Residential, MultiFamily Residential, and Mixed-Use Property in Fiscal Year 2007-2008 shall be equal to the Maximum Special Tax set forth in Table 1.

TABLE 1

MAXIMUM ANNUAL SPECIAL TAX RATES
Fiscal Year 2007-2008
Tax Class Description Maximum
Special Tax
1 Single-Family Residential $527 per Unit
2 Multi-Family Residential $395 per Unit
3 Mixed-Use Property $395 per Unit
For each subsequent Fiscal Year following the Base Year, the Maximum Special Tax for each Assessor’s Parcel classified as Developed Property shall be adjusted by the Annual Escalation Factor.

Multiple Tax Classes
In some instances an Assessor’s Parcel may contain more than one Tax Class. The Maximum Special Tax levied on such Assessor’s Parcel shall be the sum of the Maximum Special Tax that can be imposed on all Tax Classes located on that Assessor’s Parcel.

D. METHOD OF APPORTIONMENT OF SPECIAL TAX
Commencing with Fiscal Year 2007-2008, and for each subsequent Fiscal Year, the Special Tax shall be levied on each Assessor’s Parcel of Developed Property at the applicable Maximum Special Tax as set forth in Section C.

E. TERMINATION OF SPECIAL TAX
The Special Tax shall be levied in perpetuity to fund Public Services provided to CFD No. 2007-1.

F. EXEMPTIONS
The City shall classify as Exempt Property: (i) Public Property, (ii) Non-Residential Property, (iii) Undeveloped Property, (iv) Affordable Housing, or (v) Assessor’s Parcels with public or utility easements making impractical their utilization for other purposes than those set forth in the easement.

G. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2007-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

H. MANNER OF COLLECTION
The annual Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2007-1 may collect the Special Taxes at a different time or in a different manner if necessary to meet its financial obligations.

Resolution CC 2025-46 Exhibit B

EXHIBIT B

SAMPLE BALLOT

ATTACHMENT C
RESOLUTION CC 2025-47

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

CALIFORNIA, CALLING A SPECIAL ELECTION AND SUBMITTING
TO THE VOTERS OF ANNEXATION NO. 37 OF CITY OF COVINA
COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SERVICES)

PROPOSITIONS REGARDING THE ANNUAL LEVY OF SPECIAL
TAXES WITHIN ANNEXATION NO. 37 TO FINANCE PUBLIC

SERVICES, AND THE ESTABLISHMENT OF AN APPROPRIATIONS
LIMIT
WHEREAS, pursuant to Section 53339.7 of the California Government Code the City Council (hereafter referred to as the “City Council”) of the City of Covina (the “City”) has adopted the resolution authorizing the annexation of territory to City of Covina Community Facilities District No. 2007-1 (Public Services), County of Los Angeles, State of California (“CFD No. 2007-1”); and
WHEREAS, by that resolution, the City Council called a special election on the propositions to be submitted to the voters of the territory proposed to be annexed to CFD No. 2007-1 (“Annexation No. 37”) with respect to the levy of special taxes therein for the financing of public services within CFD No. 2007-1; and
WHEREAS, pursuant to Section 53326 of the California Government Code, it is necessary that the City Council submit to the voters of Annexation No. 37 the annual levy of special taxes on taxable property within Annexation No. 37; and WHEREAS, pursuant to Section 53325.7 of the California Government Code and the provisions of said Code, the City Council may also submit to the voters of Annexation No. 37 a proposition for the establishment of an appropriations limit for Annexation No. 37; and WHEREAS, twelve (12) or more registered voters have not resided within the territory of Annexation No. 37 for each of the ninety (90) days preceding June 3, 2025.

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

SECTION 1. Findings. The City Council finds that: (i) the foregoing recitals are true and correct; (ii) 12 persons have not been registered to vote within the territory to be annexed to CFD No. 2007-1 for each of the 90 days preceding the close of the public hearing on June 3, 2025; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of the territory to be annexed to CFD No. 2007-1, whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within Annexation No. 37 which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the owners of all of the land in Annexation No. 37 by written consent (a) waived the time limits set forth in Section 53326 of the California Government Code

Resolution CC 2025-47 page 2 of 4
for holding the election called by this resolution and the election on the propositions (b) consented to the holding of the election on June 3, 2025, (c) waived notice and mailed notice of the time and date of the election, (d) waived an impartial analysis by the City Attorney of the ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, and mailing of a statement pursuant to Section 9401 of that Code, and (e) waived a synopsis of the measures to be included in the official ballot for said elections pursuant to Section 12111 of that Code; and (v) the City Clerk (hereafter referred to as the “City Clerk”) has consented to the holding of the election on June 3, 2025.

SECTION 2. Call of Election. The City Council hereby calls and schedules an election for June 3, 2025, on the proposition of the annual levy of special taxes on taxable property within Annexation No. 37 to CFD No. 2007-1 to finance public services within the CFD No. 2007-1, and on the proposition of the establishment of an appropriations limit for Annexation No. 37 to CFD No. 2007-1.

SECTION 3. Propositions. The propositions to be submitted to the voters of Annexation No. 37 at such special election shall be as follows:

Proposition A: Shall special taxes be levied annually on taxable property within the territory to be annexed into the City of Covina Community Facilities District No. 2007-1 (Public Services), County of Los Angeles, State of California (“Annexation No. 37”); and collected so long as the special taxes are needed to pay for police services, fire protection and suppression services, paramedic services, and park maintenance at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit “B” to the Resolution of Intention, Resolution No. 07-6578, adopted by the City Council of the City of Covina on May 1, 2007, and as amended by Resolution No. 09-6743?
Proposition B: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, be established for Annexation No. 37 to the City of Covina Community Facilities District No. 2007-1 (Public Services), County of Los Angeles, State of California, in the amount of $100,000 per annum? The First Amended Rate and Method of Apportionment is attached as Exhibit A.

SECTION 4. Conduct of Election. Except as otherwise provided in Section 5 hereof, the special election shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000), of that Code, insofar as they may be applicable.

SECTION 5. Election Procedures. The procedures to be followed in conducting the special election on (i) the proposition with respect to the levy of special taxes on taxable property within Annexation No. 37 to CFD No. 2007-1 to pay for public services, and (ii) the proposition with respect to the establishment of an appropriations limit for Annexation No. 37 to CFD No. 2007-1 in the amount of $100,000 per annum shall be as follows:

Resolution CC 2025-47 page 3 of 4
(a) Pursuant to Section 53326 of the California Government Code, ballots for the special election shall be distributed to the qualified electors by the City Clerk by mail or by personal service.
(b) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and in particular Division 4 (commencing with Section 4000) of that Code with respect to election conducted by mail, the City Clerk, or designated official, shall mail or deliver to each qualified elector an official ballot in the appropriate form, and shall also mail or deliver to all such qualified electors a ballot pamphlet, instructions to voter, and a return identification envelope addressed to the City Clerk for the return of voted official ballots.
(c) The official ballot to be mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landownervoter. (d) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (e) The information to voter form to be delivered by the City Clerk to the landowner-voter shall inform them that the official ballot shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 7:30 p.m. on the 3
rd day of June, 2025; provided that if all qualified
electors have voted, the election shall be closed with the concurrence of the City Clerk.
(f) Upon receipt of the return identification envelope, which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot.

SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

Resolution CC 2025-47 page 4 of 4
APPROVED and PASSED this 3
rd day of June, 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 2025-47 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of June, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

Resolution CC 2025-47 Exhibit A

EXHIBIT A

FIRST AMENDED RATE AND METHOD OF APPORTIONMENT
(Please see Exhibit A to Resolution CC 2025-46, Attachment B, in this same packet)

ATTACHMENT D
RESOLUTION CC 2025-48

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

CALIFORNIA, MAKING CERTAIN FINDINGS, CERTIFYING THE

RESULTS OF AN ELECTION AND ADDING PROPERTY TO
COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SERVICES), ANNEXATION NO. 37
WHEREAS, the City Council of the City of Covina (the “City Council”), has previously formed a Community Facilities District pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, said Article 3.5 thereof. The existing Community Facilities District being designated as Community Facilities District No. 2007-1 (Public Services) (hereafter referred to as CFD No. 2007-1); and
WHEREAS, the City Council initiated proceedings to annex certain territory to Community Facilities District No. 2007-1 (Public Services), Annexation No. 37 (hereafter referred to as “Annexation No. 37”); and
WHEREAS, at this time the unanimous consent to the annexation of Annexation No. 37 has been received from the property owner or owners of such territory; and WHEREAS, twelve (12) or more registered voters have not resided within the territory of Annexation No. 37 for each of the ninety (90) days preceding June 3, 2025, therefore, pursuant to the Act the qualified electors of Annexation No. 37 shall be the “landowners” of Annexation No. 37 as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within; and WHEREAS, the time limit specified by the Act for conducting an election to submit the levy of the special taxes on the property within Annexation No. 37 to the qualified electors of Annexation No. 37 and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of Annexation No. 37; and WHEREAS, the City Council adopted on June 3, 2025, a resolution entitled “Resolution of the City Council of the City of Covina, California, Calling a Special Election and Submitting to the Voters of Annexation No. 37 of City of Covina Community Facilities District No. 2007-1 (Public Services) Propositions Regarding the Annual Levy of Special Taxes within Annexation No. 37 to Finance Public Services, and the Establishment of an Appropriations Limit” (the “Resolution Calling Election”), calling for a special election (the “Special Election”) of the qualified electors within Annexation No. 37; and
WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, the Special Election was held on June 3, 2025, and the City Clerk has on file a Certificate of Election Official and Statement of Votes Cast (the “Certificate”), a copy of which is attached hereto as Exhibit A and by this reference incorporated herein; and

Resolution CC 2025-48 Page 2 of 3
WHEREAS, the measures voted upon did receive the favorable 2/3’s vote of the qualified electors, and the City Council desires to declare the results of the Special Election; and WHEREAS, a map showing the territory to be annexed and designated as Annexation No. 37 (hereafter referred to as the “Annexation Map”), a copy of which is attached as Exhibit B hereto and incorporated herein by this reference, and a list of Properties to be annexed and landowners, a copy of which is attached as Exhibit C hereto and incorporated herein by this reference, has been submitted to the City Council.

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

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

SECTION 2. Findings. This City Council does hereby determine as follows:
(a) The unanimous consent to the annexation of Annexation No. 37 to CFD No. 2007-1 has been given by all of the owners within Annexation No. 37 and such consent shall be kept on file in the Office of the City Clerk. (b) Twelve (12) or more registered voters have not resided within the territory of Annexation No. 37 for each of the ninety (90) days preceding June 3, 2025, therefore, pursuant to the Act the qualified electors of Annexation No. 24 shall be the “landowners” of such Annexation No. 37 as such term is defined in Government Code Section 53317(f). (c) Pursuant to the Certificate, the qualified electors of Annexation No. 37 have unanimously voted in favor of the levy of special taxes within Annexation No. 37 upon its annexation to CFD No. 2007-1 and the establishment of an appropriations limit for Annexation No. 37.

SECTION 3. Annexed Area. The boundaries and parcels of territory within Annexation No. 37 and on which special taxes will be levied in order to pay for the costs and expenses of authorized public services are shown on the Annexation Map as submitted to and hereby approved by this City Council.

SECTION 4. Declaration of Annexation. The City Council does hereby determine and declare that Annexation No. 37 is now added to and becomes a part of CFD No. 2007-1. The City Council, acting as the legislative body of CFD No. 2007-1, is hereby empowered to levy the authorized special tax within Annexation No. 37.

SECTION 5. Notice. Immediately upon adoption of this Resolution, notice shall be given as follows:

An Amendment to the Notice of Special Tax Lien (Notice of Annexation) shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution.

SECTION 6. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.

Resolution CC 2025-48 Page 3 of 3
APPROVED and PASSED this 3
rd day of June, 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 2025-48 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of June 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

Resolution CC 2025-48 Exhibit A

EXHIBIT A

CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST

Resolution CC 2025-48 Exhibit A

CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF COVINA )
The undersigned, ELECTION OFFICIAL OF THE CITY OF COVINA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions commencing with Section 53326 of the Government Code of the State of California, I did canvass the returns of the votes cast at the

CITY OF COVINA
COMMUNITY FACILITIES DISTRICT NO. 2007-1
(PUBLIC SERVICES)
ANNEXATION NO. 37

SPECIAL ELECTION
in the City, held on June 3, 2025.

I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the area proposed to be annexed, Annexation No. 37 to Community Facilities District No. 2007- 1 (Public Services) of the City of Covina for or against the Measure are full, true and correct.

NUMBER OF ELIGIBLE VOTES:

VOTES CAST ON PROPOSITION A: YES
NO
VOTES CAST ON PROPOSITION B: YES
NO
WITNESS my hand this 3
rd day of June 2025.
_____________________________________
City Clerk
City of Covina

Resolution CC 2025-48 Exhibit B

EXHIBIT B

ANNEXATION MAP

Resolution CC 2025-48 Exhibit C

EXHIBIT C

LIST OF PROPERTIES TO BE ANNEXED

Resolution CC 2025-48 Exhibit C

LIST OF PROPERTIES TO BE ANNEXED
ANNEXATION NO. 37
ASSESSOR PARCEL NO(S) 8444-010-010
Vesting Tract No.

N/A
Address
270 W. Dexter Street
Covina, Ca 91723
Landowner
Longcong Ke & Meiqin Ke
270 W. Dexter Street
Covina, Ca 91723

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 2
Meeting: June 3, 2025
Title: Introduction of Ordinance 25-03
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Recommendation: Waive full reading and introduce Ordinance 25-03 entitled, “An Ordinance of the City Council of the City Of Covina, California, approving Zone Change (ZCH) 25-2 and amending the City's official Zoning Map for 340 parcels from the existing RD Residential Zone (Multifamily, RD 1250 and RD 1500) to High Density Residential (HDR) Zone and the list of Assessors’ Parcel Numbers are attached hereto as Exhibit A, and making a finding of Exemption Pursuant to CEQA Guidelines Section 15061(b)(3)”.

EXECUTIVE SUMMARY/BACKGROUND:

The City Council will consider a proposed zone change and amendments to the City’s official zoning map to align with the City’s General Plan. Pursuant to Government Code Section 65860, cities – including Covina – are mandated to ensure that zoning districts are consistent with their General Plan land use designations. Currently, the City’s “RD” Multifamily zoning districts do not align with the “Medium Density Residential” and “High Density Residential” land use designations that are listed in the General Plan. These proposed actions will not otherwise impact the current uses of properties within specified zones and is not related to a specific development project. As proposed, this is the first of a two-phase approach to update zoning districts within the City. As planned, a subsequent phase would be considered in fall 2025.

Following a public study session, direct outreach to properties within the specified zoning districts and posting of an informational Frequently Asked Questions flyer on the City’s website, the Planning Commission conducted a public hearing on April 22, 2025 to consider the proposed Phase 1 Zone Change 25-2. There were no participants nor public comments at the hearing. The Planning Commission concluded the hearing on April 22, 2025, and adopted Resolution No. 2025-003 PC by a vote of 4-0 (one absent), recommending to the City Council the approval of the Zone Change (ZCH) 25-2.

DISCUSSION:

The proposed rezoning intends to simplify the 12 RD zoning districts by renaming RD 5000 through RD 3400 as Medium Density Residential (MDR) zone and RD 3000 through RD 1250 as High Density Residential (HDR) zone. The current General Plan land use designations already govern any site's allowed use and intensity, supplemented by the RD Multifamily development regulations established under Covina Municipal Code (CMC) Chapter 17.28. Therefore, the proposed rezoning is an administrative clean-up needed due to the requirement for zoning ordinances and districts to be consistent with the General Plan. The project will take part in two phases based on the current zoning districts. Phase 1 applies to properties with the RD 1500 and RD 1250 zones, and there are a total of 340 properties affected by the rezoning. Phase 2 applies to properties within the RD 2000 through RD 5000 zones, and there are a total of 2244 properties affected by the rezoning. Staff anticipates Phase 2 proposed rezoning will be around the fall of 2025.

PUBLIC PARTICIPATION:

Public participation is a crucial and integral aspect of the planning process for rezoning properties. Staff prepared an overview and a Frequently Asked Question (FAQ) informational flyer about the proposed rezoning and posted it on the City's website on November 25, 2024. In addition to the FAQ, staff posted the Phase 1 and 2 timelines

for study sessions and future public hearings, including the Phase 1 RD rezoning map showing the locations of the affected properties. Staff mailed the Planning Commission study session notice and the public hearing notice to all the legal property owners of the affected properties. The Planning Commission conducted a study session on February 25, 2025 and a public hearing on April 22, 2025. There were no public comments received from the study session or the public hearing. All property owners affected by the proposed rezoning were mailed notices of the City Council public hearing at least twenty (20) days before the hearing, as required by law. In addition, the public hearing notice was published in the San Gabriel Valley Examiner newspaper on May 8, 2025, with a one-eighth page. The following link is the City’s website for the proposed rezoning and general plan alignment project.
https://covinaca.gov/city-departments/rezoning-general-plan-alignment-project/ FISCAL IMPACT:

There is no fiscal impact.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Zone Change (ZCH) 25-2 is exempt from CEQA because it can be seen with certainty that there is no possibility that the proposed Zone Change from the existing RD Residential Zone (Multifamily - RD1250 and RD 1500) to High Density Residential (HDR) Zone for 340 parcels throughout the City will have a significant adverse effect on the environment. Adopting the Zone Change would not approve any development project or other physical change to the environment, nor would it increase development potential beyond already applicable General Plan limits. Furthermore, the proposed zone change does not change allowable land uses or development intensities as authorized under the existing General Plan as it implements Government Code Section 65860 to align the zoning with their applicable General Plan land use designation. Therefore, the adoption of this Zone Change is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines.

Respectfully submitted,

ATTACHMENT
A

ATTACHMENT C
Frequently Asked Questions
City of Covina Rezoning, and General Plan Alignment Project What is the General Plan?
The General Plan is a comprehensive, long-term plan for the development of the City.

The general plan is at the top of the hierarchy of local land use regulations; zoning and other land use decisions must conform to the general plan. See Covina's General Plan. https://covinaca.gov/city-departments/community-development/planning/resources/ What is the difference between a zoning district and land use designation? Individual properties are given a land use designation in the land use element of the General Plan. These designation govern the allowed uses and intensity of development on a property. See Covina's General Plan Land Use Designations. https://covinaca.gov/citydepartments/community-development/planning/resources/ A zoning district sets out rules for what can and cannot be developed on a property. These rules apply to key types of land uses: residential, commercial, industrial, and other uses of land in the City. Zoning Districts also provide controls on the form and placement of buildings on individual parcels, such as height, setbacks, and parking requirements. See Covina's Zoning Districts.
https://www.codepublishing.com/CA/Covina/
Why is the City rezoning my property?
Government Code Section 65860 requires that all cities, including Covina, align zoning districts so that they are consistent with their respective land use designations. The City identified several Zoning Districts that are inconsistent with applicable General Plan land use designations. These Zoning Districts include RD-1250, RD-1500, RD-2000, RD2500, RD-2900, RD-2950, RD-3000, RD-3400, RD-3500, RD-3900, RD-4000, and RD5000.

Is my property rezoning happening because of a new development proposal? No, nothing in this rezoning process includes or is driven by any new development proposal. The rezoning is required by state law so the zoning is consistent with the General Plan land use designation.

Will the rezoning impact the use of my property?
No, the rezoning brings the zoning designation for a property to match the applicable General Plan designation. Because the General Plan prevails over Zoning, the General Plan designations already govern the allowed use and intensity of any site. This rezoning is an administrative clean-up triggered by the requirement that zoning ordinances inconsistent with the General Plan must be amended to be made consistent with the general plan.

What uses are allowed once my property is rezoned?

ATTACHMENT C
Your property will remain subject to the same General Plan land use designation. Click the link, https://www.codepublishing.com/CA/Covina/, to see Covina Municipal Code Title 17, Chapter 17.28 for the RD zoning regulations, and the allowed uses in the RD zoning districts.

How will I benefit from the rezoning?
This rezoning of your property brings several benefits. It helps to clarify what you can do with your property. Further, aligning zoning districts and land use designations reduces confusion. Property owners have a clearer understanding of how their property can be used for future projects, which will save them time and costs when developing their property.

If the rezoning of my property creates a legal non-conforming use on my property, how will this impact me?
A legal non-conforming use is a lawful use of land or structure which ceases to conform to the provisions of the applicable regulations. A legal non-conforming use may continue indefinitely. However, if such use is discontinued or abandoned for six months or more, it must conform to the provisions of the zoning district.
end

ATTACHMENT B
ORDINANCE 25-03

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, APPROVING ZONE CHANGE (ZCH) 25-2, AND
AMENDING THE CITY’S OFFICIAL ZONING MAP FOR 340 PARCELS

FROM THE EXISTING RD RESIDENTIAL ZONE (MULTIFAMILY RD
1250 AND RD 1500) TO HIGH DENSITY RESIDENTIAL ZONE (HDR),

AND THE LIST OF ASSESSORS PARCEL NUMBERS ARE ATTACHED

HERETO AS EXHIBIT A, AND MAKING A FINDING OF EXEMPTION
PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3)
WHEREAS, the City is responsible for adopting and implementing land use regulations within its boundaries; and
WHEREAS, Government Code Section 65860 mandates all cities, including Covina, ensure that zoning districts are consistent with their land use designations; and WHEREAS, the City has identified properties within the RD-1500 and RD-1250 zoning designations that have zoning densities inconsistent with range of the applicable General Plan High Residential land use designation; and
WHEREAS, the City therefore must amend the zoning designations to so it is consistent with the General Plan; and
WHEREAS, the proposed Zone Change is consistent with the General Plan and Housing Element. None of the zoning amendments result in a reduction of residential density for any parcel are identified in the housing element as necessary to fulfill the City’s RHNA allocation. Thus, the sites identified in the housing element remain adequate to accommodate the City’s share of RHNA; and
WHEREAS, the Zone Change will not otherwise affect the current use of the affected properties, and no specific development project is connected with the proposed Zone Change; and WHEREAS, CMC Chapter 17.80 provides the procedures and proceedings for any amendment to the text of Title 17 (Zoning) of the CMC and the Zone Change to the Official Zoning Map of City of Covina; and
WHEREAS, Government Code Section 65854 provides that the Planning Commission hold a hearing on proposed zone change and Section 65855 requires that at the hearing, the Planning Commission render its decision in the form of a written recommendation to the City Council, and transmit the recommendation in such form and manner as specified by the City Council; and
WHEREAS, CMC Section 17.80.050 further provides that any recommendation by the Planning Commission for an amendment shall require an affirmative vote of not less than twothirds of the total voting members after at least one public hearing and must be filed with the City

Ordinance 25-03 Page 2 of 4
Council, together with a report of findings, hearings, and other supporting data, within thirty (30) days after the conclusion of the public hearing; and
WHEREAS, on April 22, 2025, the Planning Commission conducted a duly noticed public hearing and considered the proposed Zone Change (ZCH) 25-2. After receiving oral and written evidence, and public input, the Planning Commission concluded said hearing, and by a 4-0 (one absent) vote, adopted Resolution No. 2025-003 PC recommending to the City Council the approval of the Zone Change (ZCH) 25-2; and
WHEREAS, on June 3, 2025, the City Council of the City of Covina held a duly noticed public hearing as prescribed by law to consider the proposed Zone Change (ZCH) 25-2 and any comments received prior to or at the public hearing, at which time staff presented its report, and interested persons had an opportunity to and did testify either in support or in opposition to proposed Zone Change (ZCH) 25-2. Following consideration of the entire record of information received at the public hearing and due consideration of the proposed Zone Change (ZCH) 25-2, the City Council closed the public hearing on that same date; and WHEREAS, all legal prerequisites prior to adoption of this Ordinance have occurred.

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

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

SECTION 2. California Environmental Quality Act Findings. The City Council hereby finds that the proposed Zone Change (ZCH) is exempt from CEQA because it can be seen with certainty that there is no possibility that the proposed Zone Change from the existing RD Residential Zone (Multifamily - RD1250 and RD 1500) to High Density Residential (HDR) Zone for 340 parcels throughout the City will have a significant adverse effect on the environment. The City Council further finds that the Zone Change implements Government Code Section 65860 to align the zoning with their applicable General Plan land use designation, that it would not approve any development project or cause other physical change to the environment, that it would not increase the development potential beyond already applicable General Plan limits, nor change the allowable land uses or development intensities as authorized under the existing General Plan.

Therefore, the City Council determines that the adoption of this Zone Change is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines. The City Council has reviewed the administrative record concerning the proposed ZCH 25-2 and the proposed CEQA determination, and based on its own independent judgement, approve the CEQA exemption.

SECTION 3. Findings for ZCH 25-2. Based on the evidence in the record, reviewing the recommendation of the Planning Commission, and after fully informed, the City Council hereby finds that the proposed Zone Change (ZCH) 25-2 is consistent with the Land Use Plan and the Programs and Implementation Measures of the Covina General Plan Land Use Element, and is in compliance with State Law because the amended zoning designation now conforms with the density ranges or regulations of the applicable General Plan land use designation for the properties.

Ordinance 25-03 Page 3 of 4
SECTION 4. Approval. In consideration of the findings stated above, the City Council of the City of Covina does hereby approve Zone Change (ZCH) 25-2, amending the City’s Official Zoning Map for 340 parcels throughout the City from the existing RD Residential Zone (Multifamily – RD 1250 and RD 1500) to High Density Residential (HDR) Zone, and the list of Assessor’s Parcel Numbers, as set forth in Exhibit “A”; and, incorporated herein by this reference as though set forth in full. Further, the City Council hereby directs the Director of Community Development to cause the amendment of the Official Zoning Map of the City of Covina to reflect Zone Change (ZCH) 25-2.

SECTION 5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless remain in full force and effect. The City Council hereby declares that it would have adopted each section, subsection, sentence, clause, phrase, or portion of this Ordinance, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions of this Ordinance be declared invalid or unenforceable.

SECTION 6. Savings Clause. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any ordinance, which violation was committed prior to the effective date of this Ordinance, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinances.

SECTION 7. Effective Date. This Ordinance shall become effective within thirty (30) days after its adoption.

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

PASSED, APPROVED, and ADOPTED this __ day of ____, 2025.

City of Covina, California
BY:

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

Ordinance 25-03 Page 4 of 4
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 25-02 was introduced for first reading at a regular meeting on the __ day of ____, 2025. Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the __ day of ____, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Dated:

FABIAN VELEZ, Chief Deputy City Clerk

EXHIBIT A
ZONE CHANGE (ZCH) 25-2
FROM RD RESIDENTIAL ZONE (MULTIFAMILY RD 1250 AND RD 1500) TO HIGH

DENSITY RESIDENTIAL (HDR)

LIST OF ASSESSORS PARCEL MAP NUMBERS
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
1 8445026018 8451003029 8430030022 8444010014
2 8445026019 8451003030 8430031026 8444010017
3 8445026017 8451003028 8430030001 8444010002
4 8445025021 8451003025 8430030029 8444010018
5 8445026021 8451003027 8430030005 8444008026
6 8445026025 8451007020 8430030004 8444010001
7 8445026002 8451007019 8430030008 8444010006
8 8445026005 8451007021 8430031028 8444008030
9 8445026020 8451007037 8430031027 8444010025
10 8445027015 8451007039 8432006013 8444010009
11 8445026023 8451007041 8432006014 8444010020
12 8445027014 8451007022 8432006021 8444010019
13 8445027016 8451007040 8434016013 8444010021
14 8445027025 8451007036 8434016012 8444008029
15 8445027005 8451007038 8434016029 8444010024
16 8445027007 8451007043 8434016028 8445012013
17 8445027008 8451019086 8434016036 8445012015
18 8445027020 8451019088 8434016038 8445012014
19 8445027017 8451019084 8434016016 8445012018
20 8445027019 8451019087 8434016020 8445012020
21 8445028004 8451019085 8434016027 8445014024
22 8445027026 8428016018 8434017010 8445012017
23 8445028005 8428016021 8434017014 8445014021
24 8445028001 8429020022 8434016041 8445014004
25 8445028002 8429027012 8434017024 8445014006
26 8445030017 8429027009 8434016039 8445014005
27 8445028003 8429027013 8434016030 8445014015
28 8445030001 8429030001 8434017023 8445014023
29 8445028019 8429027015 8434016017 8445014016
30 8445028021 8429029006 8434016019 8445014020
31 8445028018 8429027016 8434017021 8445014022
32 8445028022 8429029005 8434017022 8445014001
33 8445030008 8429030002 8434017081 8445014003
34 8445028023 8429027008 8444004016 8445012019
35 8445030020 8429027014 8444004013 8445014002
36 8445030021 8429030012 8444004015 8445014017
37 8445030002 8429030014 8444004017 8445017014
38 8445030004 8429030027 8444004014 8445017015
39 8445030014 8429029007 8444004022 8445017032
40 8445030016 8429029009 8444004028 8445017012
41 8445030018 8429030003 8444004023 8445017018
42 8445030022 8429030044 8444004024 8445017024
43 8445030023 8429030043 8444004031 8445017031

44 8445031006 8429030041 8444007013 8445018011
45 8445031009 8429030042 8444007016 8445018013
46 8445031008 8429029008 8444007022 8445018009
47 8445031005 8429030045 8444007023 8445018016
48 8445031007 8429030046 8444007017 8445018008
49 8445031010 8429030048 8444007024 8445018010
50 8445031011 8429030047 8444007025 8445018004
51 8445031013
52 8422002076 8429030049 8444007021 8445018006
53 8451003026 8429030050 8444007040
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
Assessor Parcel Map
numbers
1 8445018021 8445022039 8445017034 8434017076
2 8445018012 8445022041 8445017036 8434017078
3 8445018014 8445022042 8445017038 8434017039
4 8445017013 8444010026 8445017035 8434017040
5 8445017016 8408021002 8444007032 8434017057
6 8445018002 8408021011 8444007034 8434017058
7 8445018027 8408021903 8444007028 8434017071
8 8445018029 8408021022 8444007033 8434017072
9 8445018015 8451007045 8444007035 8434017051
10 8445018017 8429012019 8444007030 8434017053
11 8445018031 8429033025 8444007029 8434017060
12 8445018030 8445018039 8444007031 8434017062
13 8445018007 8445018020 8434017028 8434017038
14 8445018032 8445018033 8434017029 8434017041
15 8445022012 8444004032 8434017027 8434017055
16 8445022014 8444010010 8434017030 8434017056
17 8445022021 8432016025 8434017032 8434017073
18 8445022035 8432016026 8434017031 8434017074
19 8445022017 8444004033 8434017033 8434017034
20 8445022018 8444004029 8434017036 8434017045
21 8445022034 8422002042 8434017043 8434017052
22 8445022037 8451007058 8434017050 8434017059
23 8445022040 8451007057 8434017054 8434017070
24 8445022009 8451007059 8434017061 8434017077
25 8445022032 8444010029 8434017068 8434017047
26 8445022011 8444010030 8434017075 8434017049
27 8445022013 8444010031 8434017079 8434017064
28 8445022020 8445018036 8434017035 8434017066
29 8445022010 8445018038 8434017037 8434017046
30 8445022031 8445018035 8434017042 8434017048
31 8445022015 8445018037 8434017044 8434017063
31 8445022016 8445017033 8434017067 8434017065
33 8445022019 8445017037 8434017069 8434017080

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 3
Meeting: June 3, 2025
Title: Ordering the Annexation of Territory to Covina Landscape Maintenance District No. 1, Confirming a Diagram and Assessment, Ordering the Improvements, and the Levy and Collection of Assessments within such Territory for FY 2025/2026 Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Conduct a public hearing and consider all testimony that may be forthcoming; and

2. Adopt Resolution CC 2025-44 Ordering the Annexation of Territory to Covina Landscape Maintenance District No. 1, Confirming a Diagram and Assessment, Ordering the Improvements, and the Levy and Collection of Assessments within such Territory for FY 2025/2026.

EXECUTIVE SUMMARY/BACKGROUND:

On April 1, 2025, the City Council adopted Resolution CC 2025-23 initiating proceedings to annex Zone 19 into Covina Landscape Maintenance District No. 1 and to levy and collect annual assessments. The Council also adopted Resolution CC 2025-24 declaring its intention to annex territory into the District and begin levying assessments for this annexation starting in FY 2025/2026. Additionally, the Council called for a property owner protest proceeding and initially scheduled a public hearing for Tuesday, May 20, 2025, at 7:30 p.m. in the Council Chambers, located at 125 East College Street, Covina, California. This hearing has since been rescheduled to June 3, 2025 to receive public input regarding the proposed assessments for FY 2025/2026.

The Covina Landscape Maintenance District No. 1 (hereafter referred to as “District”) was formed April 6, 1981 pursuant to the provisions of the California Streets and Highways Code, Division 15, Part 2, Landscaping and Lighting Act of 1972 (hereafter referred to as “1972 Act”), in order to provide and maintain public landscape improvements in specified areas within the City of Covina.

Each fiscal year, prior to making and collecting assessments within the District, the City Council must adopt resolutions directing the City’s Licensed Engineer to prepare and file a report regarding the proposed assessment for each Zone, approving the Engineer’s Report (Attachment B), and declaring the City Council’s intention to levy and collect assessments for the upcoming fiscal year. Additionally, before any assessments may be made, the City Council must also adopt a resolution establishing a noticed public hearing to hear any protests against the assessment and for the approval of the Engineer’s Report and adoption of a resolution ordering the levy of assessments for FY 2025/2026.

In accordance with the 1972 Act, the District utilizes benefit zones to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District. Within the boundaries of the District, parcels are assigned to a zone, each of which is associated with specific improvements that provide special benefit to properties within the zone.

DISCUSSION:

As a condition of the City’s Subdivision Ordinance and a requirement for issuance of a permit for the construction of commercial, residential, and planned unit developments, developers are required to install median and parkway landscaping and appurtenant facilities along the public streets fronting the proposed development. These improvements generally include, but are not limited to, various landscape materials such as trees, turf, shrubs, vines, groundcover, and irrigation.

After installation, it is City policy that the servicing, operation, maintenance, repair, and replacement of landscaping and appurtenant facilities become the responsibility of the properties that specifically benefit from the facilities. The attached Engineer’s Report has been prepared in connection with the annexation of the parcels into the District and the resulting new assessment for the parcels within Zone 19 established in the Report in connection with the annexation territory for FY 2025/2026, pursuant to a resolution of the City Council. The Report consists of five parts: Part I: Plans and Specifications, Park II: Method of Apportionment, Part III: Estimate of Costs, Part IV: Boundary Diagrams, and Part V: Assessment Roll.

Zone 19
Tract No. 84311, generally located north of Limoncello Lane, east of Ruby Red Drive and west of Barranca Avenue, will develop out to seventy-five (75) condominiums and is currently identified by the Los Angeles County Assessor’s Office as parcel 8430-015-021. Improvements within this area will consist of eight (8) trees and 1,008 square feet of irrigated landscaping.

The City recommends that the rate of $20.20 per EBU be imposed for Zone 19 for FY 2025/2026, which will generate sufficient revenue to cover projected expenses with an inflator. The annexation territory budget is on page 15 of the FY 2025/2026 Annexation Engineer’s Report.

In order to assure that the improvement funding is sufficient in the future to address the ongoing maintenance and replacement cost increases that naturally occur over time due to inflation, the special benefit assessments being presented to the property owners in the ballot proceeding conducted in connection with the Engineer’s Report includes an annual inflationary adjustment (assessment range formula). This inflationary adjustment formula provides for the FY 2025/2026 maximum assessment (initial maximum assessment rate) for the Annexation Territory to increase by an amount equal to the lesser of: (1) three percent (3.0%) or (2) the annual percentage increase of the Local Consumer Price Index (CPI) for “All Urban Consumers” for the Los Angeles-Long BeachAnaheim Area (February of the given year from the previous February or similar time frame) in FY 2025/2026.

Table 1: Covina Landscape District No. 1, Zone 19 – FY 2025/2026 Summary Budget Item Zone 19
Proposed Assessments $1,514
General Benefit Subsidy 0
Total Projected Revenue $1,514
Landscape Maintenance Expenses $1,037
Administration 164
Total Projected Expenses $1,201
Estimated Ending Fund Balance (Reserves) $313
There is no general benefit contribution from the City for Zone 19 at present. The general benefit represents what the City would pay for minimum service if the Zone did not exist, but the improvements were in place and need to be maintained at a minimum level of service.

Ballot Proceedings
As part of these proceedings, the City shall conduct a property owner protest ballot proceeding (“Ballot Proceeding”) for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4, and in accordance with the provisions of Government Code, Section 53753. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments, and written protests regarding the annexation, the resulting new Zone boundaries, and the new assessments described herein. Upon conclusion of the public hearing, property owner protest ballots received

will be opened and tabulated to determine whether majority protest exists as defined in Article XIIID of the California Constitution.

As specified by the California Constitution, Article XIIID Section 4(e):
“A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.”
After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed Zone 19 assessments, further proceedings to annex the parcels within the District and implementation of the new Zone and new assessments shall be abandoned at this time.

If tabulation of the ballots indicate that majority protest does not exist for the proposed new assessments and the assessment range formula presented and described herein, the City Council, by resolution, may adopt this Report (as submitted or amended); approve the assessment diagram (Zone Boundary Diagram) contained herein; order the annexation of the parcels within the District and the improvements to be made; and confirm the new assessments as outlined in this Report.

FISCAL IMPACT:

The proposed Zone 19 assessments are sufficient to cover operating expenses. Accordingly, the proposed action has no impact on the General Fund.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

RESOLUTION CC 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA

ORDERING THE ANNEXATION OF TERRITORY TO COVINA
LANDSCAPE MAINTENANCE DISTRICT NO. 1, CONFIRMING A

DIAGRAM AND ASSESSMENT, ORDERING THE IMPROVEMENTS,

AND THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN SUCH
TERRITORY FOR FISCAL YEAR 2025/2026 PURSUANT TO THE
PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA

STREETS AND HIGHWAYS CODE AND ARTICLE XIIID OF THE

CALIFORNIA CONSTITUTION
WHEREAS, the City Council has, by previous Resolutions, initiated proceedings and declared its intention for the annexation of territory identified as Tract No. 84311 (hereinafter referred to as the “Annexation Territory”), into the Landscape Maintenance District No. 1 (hereinafter referred to as the “District”) and the levy and collection of assessments within the Annexation Territory for the 2025/2026 fiscal year, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (hereinafter referred to as the “Act”), to pay the costs and expenses for the ongoing maintenance, operation, and servicing of the landscape improvements and appurtenant facilities related thereto; and
WHEREAS, the initial Public Hearing was scheduled for May 20, 2025, and rescheduled to June 3, 2025; and
WHEREAS, the City Council caused to be prepared a written report (the “Engineer’s Report”) in accordance with the Act and Article XIIID of the California Constitution; and WHEREAS, it is estimated that the improvements to be installed and constructed within the Annexation Territory will be accepted and maintained by the City as part of the District for the 2025/2026 fiscal year; and
WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the Annexation Territory for the fiscal year commencing July 1, 2025, ending June 30, 2026 (fiscal year 2025/2026), to pay the costs and expenses of the ongoing operation, maintenance, and servicing of improvements determined to be of special benefit to the properties and the development of properties within the Annexation Territory, and all appurtenant facilities related thereto.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. Protest Determination: Following notice duly given in accordance with law, the City Council has held a full and fair public hearing regarding the Engineer’s Report, the annexation of territory to the District, and the levy and collection of the proposed assessment within such territory for fiscal year 2025/2026. All interested persons were afforded the opportunity to hear and be heard. The City Council considered all oral and written statements, protests and communications made or filed by interested persons, and tabulated all ballots. The City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XIIID of the California Constitution. All protests and objections to the annexation of territory to the District and the levy and collection of the proposed assessment against lots or parcels of property within the annexed territory for fiscal year 2025/2026 are hereby overruled by the City Council.

SECTION 2. Findings: Based upon its review of the facts presented, the City Council hereby finds and determines that:
a) The land within the Annexation Territory will receive special benefit from the operation, maintenance, and servicing of landscape improvements to be provided by the City as part of the District.
b) The Annexation Territory includes all of the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the Annexation Territory has been apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services to be provided commencing with fiscal year 2025/2026.
d) Only special benefits are assessed and no assessment is imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.

SECTION 3. Improvements: The City Council hereby orders the proposed improvements to be made. Said improvements include, but are not limited to, the maintenance, operation, and incidental expenses related to the landscaped areas within the public right-of-ways or easements associated with the parcels of land within the Annexation Territory that may include, but are not limited to: street trees; turf; ground cover and shrubs; irrigation and electrical systems; monuments; hardscape improvements; and all necessary appurtenances and services connected with the public right-of-ways, public easements, and facilities designated, and to be maintained by the City in connection with the special benefit received by parcels of land within the Annexation Territory. The cost of providing such

improvements generally include, but are not limited to, all materials, equipment, utilities, labor, and incidental expenses including administrative expenses for the regular annual maintenance as authorized by the Act. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained for the Annexation Territory are on file in the Department of Public Works of the City of Covina and by reference these plans, and specifications are made part of this Resolution and the Engineer’s Report prepared in connection with these proceedings.

SECTION 4. Annexation Approval: The City Council hereby orders the annexation of territory to be known as “Tract No. 84311” to the District. The District will continue to be designated as City of Covina Landscape Maintenance District No. 1, the boundaries of which shall be contained in the assessment diagram for the District, the establishment of the maximum assessment rate and assessment range formula connected therewith; and the assessments for the fiscal year commencing July 1, 2025, ending June 30, 2026.

SECTION 5. Confirmation of Diagram and Assessment: The City Council hereby confirms the diagram and assessment, with respect to the annexed parcel, as originally proposed in the Engineer’s Report. The assessment is in compliance with the provisions of the Act and Article XIIID of the California Constitution. The assessment is levied without regard to property valuation. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 3 above for the fiscal year commencing on July 1, 2025, ending June 30, 2026.

SECTION 6. Levy of Assessment: The adoption of this Resolution constitutes the levy of an assessment for the fiscal year commencing July 1, 2025, ending June 30, 2026.

SECTION 7. Collection of Assessments: The County Auditor of Los Angeles County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy so described in the Engineer’s Report for the Annexation Territory as Zone 19 of the District, and such levies shall be submitted to the County Auditor along with the other assessments for the District and collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

SECTION 8. Deposit of Funds: The City Treasurer shall deposit all money representing assessments collected by the County for the Annexation Territory to the credit of a fund for Zone 19 of the District, and such money shall be expended only for the maintenance, operation, and servicing of the improvements as described in the Engineer’s Report and generally described in Section 3 of this Resolution.

SECTION 9. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the City Council’s approval of the annexation of the parcels within Zone 19 to the District, the adoption and confirmation of the Annexation Territory Assessment Diagram, and the establishment of the maximum assessment rates, assessment range formula, and the assessments for fiscal year 2025/2026 as contained in the Engineer’s Report.

APPROVED and PASSED this 3
rd day of June 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIEN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:

____________________________________
CANDICE K. LEE, City Attorney

CERTIFICATION
I, Fabien Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-XX was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of June 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________

FABIEN VELEZ
Chief Deputy City Clerk

City of Covina
Landscape Maintenance
District No. 1
Engineer’s Report
Annexation of Territory and Establishment of
Zone 19
(Tract No. 84311)
Commencing Fiscal Year 2025/2026
Intent Meeting: April 1, 2025
Public Hearing: June 3, 2025
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500
F 951.587.3510
www.willdan.com

ATTACHMENT B

ENGINEER'S ANNEXATION REPORT AFFIDAVIT
City of Covina
Landscape Maintenance District No. 1
Annexation of Territory and Improvements; and
Establishment of Zone 19
Commencing in Fiscal Year 2025/2026
City of Covina,
County of Los Angeles, State of California
As part of the Resolution of Intention packet presented for the consideration of the Covina City Council, this Report and the enclosed budget, diagrams, and description outline specific proposed changes to the Landscape Maintenance District No. 1 (LMD No. 1) for Fiscal Year 2025/2026, including the annexation of territory to LMD No. 1, the expansion of the improvements to be maintained within LMD No. 1, and the proposed annual assessments for all parcels within the Annexation Territory commencing in Fiscal Year 2025/2026. Reference is hereby made to the Los Angeles County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of parcels within LMD No. 1, Zone 19 and annexation territory known as Tract No. 84311 that will be subject to the proposed annual assessment.

The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this 4th day of June, 2025.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Covina
By: ________________________________
Stacee Reynolds
Principal Consultant
By: ________________________________
Tyrone Peter
R. C. E. # C81888

Table of Contents
INTRODUCTION ........................................................................................................................................... 1 ANNEXATION TERRITORY ..................................................................................................................... 2 PROCEEDINGS AND REPORT CONTENT ............................................................................................. 3 PART I — PLANS AND SPECIFICATIONS ................................................................................................. 6 DESCRIPTION OF THE DISTRICT .......................................................................................................... 6 EXISTING DISTRICT ZONES AND IMPROVEMENTS ........................................................................... 7 ZONES AND IMPROVEMENTS ANNEXATION TERRITORY FISCAL YEAR 2025/2026 ...................... 9 PART II — METHOD OF APPORTIONMENT............................................................................................. 10 LEGISLATIVE REQUIREMENTS FOR ASSESSMENTS ...................................................................... 10 BENEFIT ANALYSIS .............................................................................................................................. 10 ASSESSMENT METHODOLOGY .......................................................................................................... 11 PART III — ESTIMATE OF COSTS ............................................................................................................ 14 PROPOSED BUDGET AND ASSESSMENT ......................................................................................... 14 PART IV — BOUNDARY DIAGRAMS ........................................................................................................ 17 PART V — ASSESSMENT ROLL ............................................................................................................... 20

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Introduction
The City of Covina (“City”), under the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (“1972 Act”) established the assessment district designated as:

LANDSCAPE MAINTENANCE DISTRICT NO. 1
(hereinafter referred to as “LMD” or “District”). Pursuant to the provisions of the 1972 Act and in compliance with the substantive and procedural requirements of Article XIIID of the California State Constitution (the “California Constitution”), the City Council of the City of Covina, proposes to annex territory established as Zone 19 to expand the improvements to be provided and maintained within the LMD, and to conduct a property owner protest ballot proceeding for special benefit assessments to be levied and collected annually on the parcels within the Annexation Territory in order to fund in whole or in part the maintenance and operation of certain public improvements that may include, but is not limited to landscaping, parks and appurtenant facilities that provide special benefits to those properties commencing in Fiscal Year 2025/2026.

As required pursuant to Chapter 1, Article 4 of the 1972 Act, this Report shall serve as the detailed Engineer’s Report for the annexation of territory to Landscape Maintenance District No. 1 for Zone 19 (hereafter referred to as the, “Annexation Territory”) and the establishment of annual assessments to be levied and collected upon properties within the proposed Annexation Territory in connection with the special benefits each property receives from the maintenance and servicing of the improvements to be provided by the City through the District. The assessments described herein will provide an annual funding source to adequately support the ongoing maintenance, servicing, operation, and incidental expenses associated with the landscape improvements, and appurtenant facilities and amenities that benefit the identified properties within the Annexation Territory. The Annexation Territory as shown in the diagram contained in Part IV of this Report, encompasses all lots and parcels of land within a defined area of the City that will receive special benefits from the improvements to be funded by the assessments. Parcels within the Annexation Territory will be assessed for their proportionate special benefit of the shared landscape improvements and appurtenant facilities.

The City Council of the City of Covina adopted its General Plan with various elements to provide guidelines for orderly development of property within the City. The City Council further adopted ordinances and regulations governing the development of land providing for the installation and construction of certain landscaping and appurtenant facilities to enhance the quality of life and to benefit the value of property.

The requirement for the installation of landscaping, streets and appurtenant facilities is a condition of development provided for in the City’s Subdivision Ordinance and is a requirement for issuance of a permit for construction of commercial, residential, and planned unit development. These improvements generally include but are not limited to street lights and related equipment and fixtures; various landscape materials such as trees, turf, shrubs, vines, and ground cover; irrigation and drainage systems; structural amenities such as monuments, block walls, retaining walls, or other fencing; hardscapes including mulch, trail and path surfaces, stamped concrete and pavers; recreational amenities such as benches, picnic facilities and play structures; signage; and related appurtenances.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

The installation of landscaping and appurtenant facilities is the responsibility of the sub-divider or other development/applicant, triggered by the approval of a tentative subdivision map or other development application. After installation, it is City policy that the servicing, operation, maintenance, repair and replacement of landscaping and appurtenant facilities in turn become the financial responsibility of the properties that specially benefit from the facilities.

In accordance with the 1972 Act, the District utilizes benefit zones (“Zones”) to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District. Within the boundaries of the District, parcels are assigned to a Zone, each of which is associated with specific improvements that provide special benefit to properties within that Zone.

ANNEXATION TERRITORY
The Annexation Territory consists of all lots and parcels of land within the planned areas identified as Tract No. 84311. Tract No. 84311 will develop out to seventy-five (75) condominiums designated as Zone 19. This annexation area will pay the special benefit costs associated with the ongoing annual maintenance of the improvements within the Zone.

This Report has been prepared pursuant to the provisions of the California Constitution and the 1972 Act and shall serve as the detailed Engineer’s Report regarding the annexation of the designated Annexation Territory into the Covina Landscape Maintenance District No. 1 and the proposed assessments to be levied on the properties therein commencing in Fiscal Year 2025/2026 for the proportional special benefits the properties will receive from the ongoing maintenance and servicing of the improvements associated with and/or resulting from the development of properties within the Annexation Territory.

The City Council proposes to annex the Annexation Territory into the District as Zone 19 (Proposed Zone), and to levy and collect annual special benefit assessments on the County tax rolls to provide ongoing funding for the direct expenditures, incidental expenses, and fund balances that are necessary to service and maintain the landscaping improvements associated with and resulting from the development of property within the Annexation Territory. The improvements described in this Report for the Annexation Territory are based on the initial improvement and development plans for Assessor Parcel Number 8430-015-021 and by reference those plans and specifications are made part of this Report.

The estimated budget provided herein is based on the City’s estimate of the expenses for local improvements and services within the Annexation Territory. The resulting annual assessments are calculated utilizing the method of apportionment established under Part II of this report and are made pursuant to the 1972 Act and the substantive and procedural provisions of the California Constitution.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (APN) by the Los Angeles County Assessor’s Office. The Los Angeles County Auditor/Controller uses APNs and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

PROCEEDINGS AND REPORT CONTENT
This Report specifically addresses the proposed annexation of territory, establishment of the Zone, the resulting Zone boundary, the various improvements within the Zone, and the proposed assessment to be levied in connection with the special benefits the properties will receive from the maintenance and servicing of the improvements based on the estimated operating and maintenance expenses. The proposed annual assessments to be levied on properties within the Annexation Territory will provide a source of funding for the continued operation, maintenance and servicing of the landscaping and appurtenant facilities (collectively referred to as improvements) to be provided by the District for the special benefit of properties within the Zone.

The District assessments as described herein are based on the City’s estimate of the costs to maintain, operate and service the improvements. The costs of the improvements and the proposed annual assessments budgeted and assessed against properties within the Annexation Territory may include, but are not limited to the estimated expenditures for regular annual maintenance and repairs; incidental expenditures related to the operation and administration of the District; deficits or surpluses from prior years; revenues from other sources; and the collection of funds for operational reserves and/or periodic repairs, replacements and rehabilitation projects as authorized by the 1972 Act. The net annual cost to provide the improvements for each Zone are allocated to the benefiting properties within that Zone using a weighted method of apportionment (refer to Assessment Methodology in Part II, Method of Apportionment) that calculates the proportional special benefit and assessment for each parcel as compared to other properties that benefit from the District improvements and services. Thus, each parcel is assessed proportionately for only those improvements, services and expenses for which the parcel will receive special benefit.

Ballot Proceedings
As part of these proceedings, the City shall conduct a property owner protest ballot proceeding (“Ballot Proceeding”) for the proposed levy of an assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4, and in accordance with the provisions of Government Code, Section 53753. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the annexation, the resulting Zone boundaries and the assessments described herein. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists as defined in Article XIIID of the California Constitution.

As specified by the California Constitution, Article XIIID Section 4e:
“A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.” After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the Proposed Zone assessments, further proceedings to annex the parcels within the Proposed Zone into the District shall be abandoned.

If tabulation of the ballots indicate that majority protest does not exist for the Proposed Zone assessments and the assessment range formula presented and described herein, the City Council by resolution may adopt this Report (as submitted or amended); approve the assessment diagrams (Zone Boundary Diagram) contained herein; order the annexation of the parcels to the LMD and the improvements to be made; and confirm the assessments as outlined in this Report.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

The assessments as approved, may be levied and collected on the County tax rolls commencing in Fiscal Year 2025/2026 together with the assessments for other properties in the District. For Fiscal Year 2025/2026 and each subsequent fiscal year, an engineer’s annual levy report for the District shall be prepared and presented to the City Council to address any proposed changes to the District, including Zone 19, as well as any proposed changes to the improvements, budgets and assessments for that fiscal year. The City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the levy of annual assessments for the District.

If in any fiscal year, the proposed annual assessments for parcels with the District exceed the maximum assessments described herein, such an assessment would be considered an increased assessment and must be confirmed through a mailed property owner protest ballot proceeding for the affected parcels before that or increased assessment may be imposed.

Report Content
This Report has been prepared in connection with the annexation of a parcel into the LMD and the resulting assessments for the parcels at build-out within Zone 19 established herein in connection with the annexation of territory for Fiscal Year 2025/2026, pursuant to a resolution of the City Council and consists of the following five (5) parts.

Part I — Plans and Specifications
Contains a general description of the District and zones of benefit (“Zones”) and specifically addresses the improvements and services that provide special benefits to the parcels within the Annexation Territory which include, but is not limited to local landscaping, and related amenities including operational expenses and fund balances authorized by the 1972 Act. The plans and specifications contained in this Report generally describe the nature and extent of the improvements. In conjunction with these general descriptions of the improvements a visual depiction of the improvements is provided in the Zone Boundary Diagram contained in Part IV of this Report. The detailed plans and specifications for the improvements in the Annexation Territory are on file in the Public Works Department of the City of Covina and by reference are made part of this Report.

Part II — Method of Apportionment
Outlines the special and general benefits associated with the improvements to be provided within the Annexation Territory, and the basis upon which the estimated costs to provide such improvements has been apportioned to each parcel of land therein in proportion to the special benefits to be received.

Part III — Estimate of Costs
Identifies the estimated annual funding costs (budget) required for the maintenance and operation of the improvements including, but not limited to, annual maintenance and service expenses, utility costs, related incidental expenses, and fund balances authorized by the 1972 Act and deemed appropriate to fully support the improvements. Those improvements and/or costs determined to be of general benefit shall be funded by a City contribution. This budget establishes the maximum assessments to be approved by the property owner(s) of record within the Annexation Territory as part of the Ballot Proceeding.

This section also identifies and outlines an Assessment Range Formula (inflationary adjustment) that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments but also provides for reasonable cost adjustments due to inflation.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part IV — Boundary Diagrams
Diagrams showing the existing District and Annexation Territory. The lines and dimensions of each lot, parcel, and subdivision of land contained in this diagram are inclusive of all parcels listed in “Part V — Assessment Roll” of this Report and the corresponding County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the Annexation Territory.

Part V — Assessment Roll
A listing of the proposed assessment amounts for each parcel within the Annexation Territory. The “Balloted Maximum Assessment” amount for each parcel represents that parcel’s proposed maximum assessment amount for each parcel within the Proposed Zone commencing in Fiscal Year 2025/2026 and is based on the parcel’s calculated proportional special benefit as outlined in “Part II — Method of Apportionment,” and calculated assessment rate established by the budget in “Part III — Estimate of Costs.” The assessment amount identified as the “FY 2025/2026 Estimated Assessment” represents the anticipated assessment amounts to be levied and collected on the County Tax Rolls for Fiscal Year 2025/2026. The actual assessment amounts to be levied and collected for Fiscal Year 2025/2026 shall be finalized, approved and adopted by the City Council together with the assessments for other properties in the District as part of the annual assessment process for Fiscal Year 2025/2026.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part I — Plans and Specifications

DESCRIPTION OF THE DISTRICT
The purpose of this District and specifically the Annexation Territory is to provide in part through annual assessments, funding for the ongoing operation, maintenance, and servicing of local landscaping, and related appurtenant facilities and services in specified areas of the City. The territory within the District consists of those lots or parcels of land within the City of Covina for which the City, through the District, maintains these local improvements and related amenities installed in connection with the development of those properties and for the benefit of those lots or parcels.

As authorized by the 1972 Act, the improvements provided by the District and associated with the Zone incorporate various local and related amenities installed in connection with the development of the property (properties) and are maintained and serviced for the benefit of real property within Zone 19. The maintenance of the improvements may also include various appurtenances including, but not limited to block walls, retaining walls or other fencing, trail and path surfaces, stamped concrete, pavers, mulch or other hardscapes, irrigation and related electrical equipment and drainage systems, benches, play structures, picnic or other recreational facilities, monuments, signage, ornamental lighting, street lighting, and related equipment. The work to be performed within the Zone may include but is not limited to (as applicable), the personnel, materials, equipment, electricity, water, contract services, repair and rehabilitation of the improvements and incidental expenses required to operate the District and provide the improvements and services.

Improvements provided within the District may include but are not limited to:
 Landscaping and related facilities and amenities located within designated street medians, parkway and streetscape side-panels, and entryways within the public right of ways or easements adjacent to public right of ways; and within public places including greenbelt areas, open spaces, and neighborhood parks within Zone 19. These improvements may include, but are not limited to:
• Various landscape materials such as trees, turf, shrubs, vines, ground cover, annual or perineal plantings;
• Irrigation and drainage systems;
• Structural amenities such as monuments, block walls, retaining walls, or other fencing; and • Hardscapes including mulch, trail and path surfaces, stamped concrete and pavers.

The maintenance of these improvements may include, but is not limited to the regularly scheduled mowing, trimming, pruning, fertilization, pest control, weed and graffiti abatement, installation, replacement and rehabilitation of the landscaping, repair or replacement of irrigation or drainage systems, and repair or replacement of hardscape improvements and recreational amenities. The City Public Works Department shall authorize and schedule such maintenance and servicing as needed and based on available Zone funding.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

EXISTING DISTRICT ZONES AND IMPROVEMENTS
In accordance with the 1972 Act, the District utilizes Zones and/or Sub-Zones (collectively referred to as Zones) to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District. Each Zone is associated with specific improvements and/or types of improvements that provide special benefit to properties within that Zone. The boundaries of each Zone are based on the improvements to be maintained and the relationship and proximity of the developments and properties that derive special benefits from those specific improvements.

As of Fiscal Year 2024/2025, the District is comprised of the following Zones and developments.

Zone 1
Generally located in the southeast region of the City, south of Covina Hills Road, north of Holt Avenue and the San Bernardino Freeway, and east of Grand Avenue. The Zone was established in April 1981 and the annual assessments provide for the maintenance of landscaping in Parque Xalapa, Forest Hills Drive and Covina Hills Road Slope and Oak Tree Park.

Zone 2
Generally located in the north-central region of the City, south of Arrow Highway, north of Cienega and west of Grand Avenue. The Zone was established in April 1981 and the annual assessments provide for the maintenance of landscaping at the entrances to Arrow Grand Circle off Arrow Highway and the north side of Cienega Street between Grand Avenue and Barranca Avenue that is adjacent to the properties within the Zone.

Zone 4
Comprised of four (4) residential developments (single-family and condominiums) generally located south of Arrow Highway, north of Puente Street along the Azusa Avenue corridor. These four residential developments are inclusive of Tract 15506, Tract 14394, Tract 18642, Tract 33882 and Tract 34224. The annual assessments for Zone 4 provide for the maintenance of street landscaping (including street tree maintenance) associated with the properties as well as a portion of the maintenance costs of Azusa Avenue landscaping (15% of the costs).

Zone 5
Comprised of the commercial/industrial properties generally located south of Arrow Highway, north of Badillo Street along the Azusa Avenue corridor. The annual assessments for Zone 5 provide for the maintenance of street landscaping (including street tree maintenance) specifically associated with these properties including 85% of the maintenance costs of Azusa Avenue landscaping.

Zone 6
Annexed into the District in Fiscal Year 2017/2018. Tract No. 73455 is comprised of sixty-three (63) singlefamily residential properties, generally located south of E. Cypress Street, west of N. Kidder Avenue and east of N. Banna Avenue. Improvements within this area consist of approximately 6,143 square feet of parkway landscaping and twenty-eight (28) local street trees.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Zone 7
Known as Citrus Promenade was annexed into the District in Fiscal Year 2018/2019. Tract No. 74512-1, generally located east of Citrus Avenue and west of Fairvale Avenue is comprised of one hundred seventeen (117) townhomes. Improvements within this area consist of median and parkway landscaping along Citrus Avenue.

Zone 8
Annexed into the District in Fiscal Year 2018/2019. Parcel Map No. 72690 generally located south of Dexter Street and east of 4th Avenue has been developed into three (3) townhomes and is identified by the Los Angeles County Assessor’s Office as parcel 8444-010-031. Improvements within this area consist of four (4) street trees.

Zone 9
Annexed into the District in Fiscal Year 2018/2019. Parcel Map No. 73595 generally located south of E.

Ruddock Street, west of Reeder Avenue and north of E. Badillo Street was planned to be subdivided into a four (4) lot residential subdivision and is identified by the Los Angeles County Assessor’s Office as parcel 8427-022-045. Improvements within this area were planned for four (4) street trees. However, development has not occurred and Zone 9 has not been levied commencing Fiscal Year 2023/2024.

Zone 10
Known as Atwood, annexed into the District in Fiscal Year 2019/2020. Tract No. 72116 generally located south of W. San Bernardino Road, west of N. Citrus Avenue and north of W. Orange Street contains sixtyeight (68) townhomes, four (4) live/work lofts and one (1) parcel containing three (3) office/retail units.

Improvements within this area consist of thirty-one (31) street trees.

Zone 11
Annexed into the District in Fiscal Year 2021/2022. Tract No. 73660 generally located west of N. Citrus Avenue and north of W. Orange Street developed into eight (8) condominium units and is identified by the Los Angeles County Assessor’s Office as parcel 8431-028-113. Improvements within this area consist of two (2) street trees.

Zone 12
Annexed into the District in Fiscal Year 2021/2022. Tract No. 1224 Lot 6, generally located west of N. Citrus Avenue and north of W. Orange Street developed into two (2) commercial buildings and is identified by the Los Angeles County Assessor’s Office as parcel 8431-028-111. Improvements within this area will consist of six (6) street trees.

Zone 13
Known as Covina Bowl was annexed into the District in Fiscal Year 2022/2023. Tract No. 82874 generally located south of W. San Bernardino Road, north of W. Badillo Street and west of N. Rimsdale Avenue developed out to a restaurant and one hundred thirty-two (132) condominiums originally identified by the Los Angeles County Assessor’s Office as parcels 8434-017-008, 8434-017-009, and 8434-018-020.

Improvements within this area will consist of twenty-five (25) street trees and 7,757 square feet of irrigated landscaping.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Zone 14
Known as Zest was annexed into the District in Fiscal Year 2022/2023. Tract No. 83178 generally located south of Kelby Park and west of Barranca Avenue developed into one hundred fifty-one (151) townhomes and was identified by the Los Angeles County Assessor’s Office as parcel 8430-015-018. Improvements within this area consist of four (4) street trees and 662 square feet of irrigated landscaping.

Zone 15
Known as Campsite Brewery was annexed into the District in Fiscal Year 2023/2024. Tract No. 45569 (Campsite Brewery) generally located north of Front Street and west of Curtis Avenue is one (1) business with two (2) buildings and identified by the Los Angeles County Assessor’s Office as parcel 8430-018-019.

Improvements within this area consist of twelve (12) street trees and 2,307 square feet of irrigated landscaping.

Zone 16
Annexed into the District in Fiscal Year 2023/2024. Parcel Map No. 82493 generally located north of East Puente Street and west of Monte Vista Avenue with two (2) residential parcels currently identified by the Los Angeles County Assessor’s Office as parcel 8446-009-020 and 021. Improvements within this area consist of three (3) street trees.

Zone 17
Annexed into the District in Fiscal Year 2023/2024. Tract No. 83343 is generally located north of Covina Boulevard, west of Fairvale Avenue and east of Citrus Avenue developed into thirty-eight (38) residential townhomes and was identified by the Los Angeles County Assessor’s Office as parcel 8406-019-098.

Improvements within this area consist of eighteen (18) street trees and 3,275 square feet of irrigated landscaping.

Zone 18
Annexed into the District in Fiscal Year 2023/2024. Tract No. 83203 is generally located north of W. Puente Street, east of S. 4th Avenue and west of S. 3rd Avenue and is planned for ten (10) residential townhomes currently identified by the Los Angeles County Assessor’s Office as parcel 8444-010-028. Improvements within this area consist of fourteen (14) street trees and 2,750 square feet of irrigated landscaping.

ZONES AND IMPROVEMENTS ANNEXATION TERRITORY FISCAL YEAR 2025/2026 Zone 19
Tract No. 84311, generally located north of Limoncello Lane, east of Ruby Red Drive and west of Barranca Avenue, will develop out to seventy-five (75) condominiums and is currently identified by the Los Angeles County Assessor’s Office as parcel 8430-015-021. Improvements within this area will consist of eight (8) trees and 1,008 square feet of irrigated landscaping.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part II — Method of Apportionment

LEGISLATIVE REQUIREMENTS FOR ASSESSMENTS
The costs of the proposed improvements have been identified and allocated to properties within the Annexation Territory based on proportional special benefit, consistent with the provisions of the 1972 Act and the assessment provisions of Proposition 218 (being contained in Article XIIID of the California Constitution).

The improvements provided by this District and for which properties within the Annexation Territory are assessed, are identified as local landscaping and related amenities that were either installed in direct connection with the development of properties to be included within the designated Proposed Zone or were installed for the benefit of those properties as a result of property development or potential development of those properties and were considered necessary elements for the development of such properties to their full and best use. The formulas used for calculating assessments and the designation of Zones herein reflect the composition of parcels within the Annexation Territory, and the improvements and activities to be provided, and have been designed to fairly apportion the cost of providing those improvements based on a determination of the proportional special benefits to each parcel.

In addition to the provisions of the 1972 Act, Article XIIID of the California Constitution outlines specific requirements regarding assessments including the following:

Article XIIID Section 2d defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service.” Article XIIID Section 2i defines Special Benefit as follows:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”
Article XIIID Section 4a defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”

BENEFIT ANALYSIS
Landscaping Special Benefit
The ongoing maintenance of landscaped areas within the District (specifically Zone 19 as addressed in this Report), provide aesthetic benefits to the properties and a more pleasant environment to walk, drive, live, and/or work. The primary function of these landscape improvements and related amenities is to serve as an aesthetically pleasing enhancement and green space for the benefit of the immediately surrounding properties and developments for which the improvements were constructed and installed and/or were facilitated by the development or potential development of properties within Zone 19. These landscape

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

improvements are an integral part of the physical environment associated with the parcels in the Zone and while some of the improvements may in part be visible to properties outside the Zone, collectively if these improvements are not properly maintained, it is the parcels within the Zone (as may be applicable) that would be aesthetically burdened. Additionally, the street landscaping in Zone 19 serve as a pleasant aesthetic amenity that enhances the approach to the parcels. In some District zones, the landscaped areas may include green space areas (neighborhood parks, greenbelts, open space and/or trails) that may provide a physical buffer between properties, overall open space within a development, and/or recreational areas that serve as an extension of the physical attributes of the parcels assessed, such as their front or rear yards. As a result, the maintenance of these landscape improvements and the related amenities provide particular and distinct benefits to the properties and developments associated with those improvements within each Zone.

Landscaping General Benefit
Based on the parameters of special benefit as outlined by the California Constitution, general benefit may be described as an overall and similar benefit to the public in general resulting from the improvements, activity or services to be provided for which an assessment is levied. Although the Proposed Zone improvements are located on public streets that are visible to the general public, it is clear that the ongoing maintenance of these improvements are only necessary for the appearance, safety and advantage of the properties within the Zone and are not required nor necessarily desired by any properties outside the Zone. Inasmuch as the improvements and the services to be provided are specific to the development and properties within the Zone and these improvements and services do not extend beyond the Zone’s boundaries, any access or proximity to these improvements by other nearby properties or developments would be considered incidental and the potential general benefits to the public at large are considered intangible.

ASSESSMENT METHODOLOGY
To assess benefits equitably it is necessary to calculate each property’s relative share of the special benefits conferred by the funded improvements and service. The Equivalent Benefit Unit (EBU) method of assessment apportionment is utilized for this District and establishes a basic unit (base value) of benefit and then calculates the benefit derived by each assessed parcel as a multiple (or a fraction) of that basic unit. The EBU method of apportioning special benefits is typically seen as the most appropriate and equitable assessment methodology for assessment districts, as the benefit to each parcel from the improvements are apportioned as a function of comparable property characteristics which may include but is not limited to land use and property size.

For the purposes of this Engineer’s Report, an EBU is the quantum of benefit derived from the various Zone improvements by a single-family residential parcel. The single-family residential parcel has been selected as the basic unit for calculation of assessments. Thus, the “benchmark” property (the single-family residential parcel) derives one EBU of benefit and is assigned 1.00 Equivalent Benefit Unit. Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed, among all assessable parcels in proportion to the estimated benefits to be received by each parcel from the improvements. The benefit formula used for the District should reflect the composition of the parcels, and the improvements and services provided, to fairly apportion the costs based on special benefit to each parcel.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

The existing District’s Method of Apportionment utilizes commonly accepted assessment engineering practices, established pursuant to the 1972 Act and the provisions of the California Constitution. The method outlined for Zone 19 is based on the premise that each assessed parcel receives benefit from the improvements maintained and financed by the District’s assessments. The desirability of properties within the Zone is enhanced by the presence of well-maintained landscaping in close proximity to those properties.

The costs associated with the improvements within Zone 19 are equitably spread among the benefiting parcels within the Zone and the funds collected shall be dispersed and used for only the improvements and services provided by the District.

Identifiers for each Zone designation are identified below:

Zones 1, 2, 5 and 12
Balance to Levy / Total Number of 1,000 sq. ft. (Lot Size) = Levy per 1,000 sq. ft.

Converted to Equivalent Benefit Units (“EBU”)
Balance to Levy / Total Number of EBUs = Assessment Rate per EBU Zones 4, 6, 7, 8, 9, 11, 14, 16, 17 and 18
Balance to Levy / Total Number of Units = Levy per Unit Converted to EBU
Balance to Levy / Total EBU = Assessment Rate per EBU
Zone 10
Residential
Balance to Levy / Total Number of Units = Levy per Unit Converted to EBU
Balance to Levy / Total EBU = Assessment Rate per EBU
Commercial
Balance to Levy / Total Number of 1,000 sq. ft. (Lot Size) = Levy per 1,000 sq. ft.

Converted to EBU
Balance to Levy / Total Number of EBUs = Assessment Rate per EBU Live/Work
Each residential unit is assessed one (1) Equivalent Benefit Unit (EBU), and each commercial parcel is assessed at a rate per square foot. The four (4) live-work units are assessed 1 EBU per residential unit plus 1,000 square feet per levy for non-residential use. It is anticipated that the typical live-work unit will be 5,453.50 SF (square feet) with 70% of the area assigned to non-residential use, which equals 3,809.75 SF.

Balance to Levy / Total Number of Units (Levy Units) plus Levy per Acre Converted to EBU
Balance to Levy / Total EBU = Assessment Rate per EBU

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Zone 13
Residential
Balance to Levy / Total Number of Units = Levy per Unit Converted to EBU
Balance to Levy / Total EBU = Assessment Rate per EBU
Commercial
Balance to Levy / Total Number of 1,000 sq. ft. (Lot Size) = Levy per 1,000 sq. ft.

Converted to EBU
Balance to Levy / Total Number of EBUs = Assessment Rate per EBU The levy amount for each parcel is then calculated by multiplying the Zone Assessment Rate by assigned EBU on each parcel:

Assessment Rate x Parcel’s EBU = Parcel Levy Amount
Zone 15
Commercial
Balance to Levy / Total Number of 1,000 sq. ft. (Lot Size) = Levy per 1,000 sq. ft.

Converted to EBU
Balance to Levy / Total Number of EBUs = Assessment Rate per EBU New Annexation Territory
Zone 19
Residential
Balance to Levy / Total Number of Units = Levy per Unit Converted to EBU
Balance to Levy / Total EBU = Assessment Rate per EBU

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part III — Estimate of Costs
The 1972 Act provides that the estimated costs of the improvements shall include the total cost of the improvements, including incidental expenses.

The 1972 Act also provides that the amount of any surplus, deficit, or contribution be included in the estimated cost of improvements. The net amount to be assessed on the lots or parcels within the Annexation Territory is the total cost of maintenance and servicing with adjustments either positive or negative for reserves, surpluses, deficits, and/or contributions.

PROPOSED BUDGET AND ASSESSMENT
The budget and assessments outlined on the following page for the Annexation Territory for the designated Zone 19 are based on the national standards and related funding necessary for the operation, maintenance and servicing of the District improvements identified in Part I of this Report.

This budget represents an estimate of the special benefit expenses anticipated to be collected for Fiscal Year 2025/2026 at the time this Report was prepared and establishes the maximum assessment rates to be balloted and approved by the property owner(s) of record within the Annexation Territory as part of the Ballot Proceeding.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Annexation Territory Budget Fiscal Year 2025/2026

BUDGET ITEM
Zone 19
Budget
Landscape Maintenance and Appurtenant Facilities $483
Tree Trimming 143
Landscape Utilities (Water/Electricity) 170
Maintenance & Street Infrastructure 69
Rehabilitation & Replacement 172
$1,037
Administration Overhead $45
County Administration Fee 21
Professional Services 73
Legal Notices 25
$164
$1,201
Operational Reserves $313
General Benefit (contribution) 0
General Fund (Contribution) 0
$313
$1,514
Current Parcel Count 1
Total Parcels at Built -Out 75
Parcels Levied at Built Out 75
Total EBUs 75.0000
Proposed Maximum Assessment per EBU $20.20
Proposed Assessment for FY 2025/2026 $20.20

BALANCE TO LEVY

DISTRICT STATISTICS

ANNUAL MAINTENANCE (DIRECT COSTS)
Direct Landscape Maintenance Expenses
Administration
Total Costs & Expenses

LEVY ADJUSTMENTS
Total Levy Adjustments
Total Administration
Total Annual Landscape Maintenance Expenses

INDIRECT COSTS
Note: The budget has been rounded to the nearest dollar.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Annual Inflationary Adjustment (Assessment Range Formula) It is recognized that the cost of providing for the improvements described in Part I, Plans and Specifications, of this Report will inevitably increase over time as a result of inflation and that any “new or increased assessments” require certain noticing and balloting requirements pursuant to Article XIIID of the California Constitution (Proposition 218). However, Government Code Section 54954.6(a) provides that a “new or increased assessment” does not include “an assessment that does not exceed an assessment formula or range of assessments...previously adopted by the agency or approved by the voters in the area where the assessment is imposed.” This definition of a new or increased assessment is reaffirmed in the Proposition 218 Omnibus Implementation Act, Government Code Section 53753.5.

To assure that the improvement funding is sufficient in the future to address the ongoing maintenance and replacement cost increases that naturally occur over time due to inflation, the special benefit assessments being presented to the property owners during the Ballot Proceeding conducted in connection with this Report includes an annual inflationary adjustment (assessment range formula). This inflationary adjustment formula provides for the Fiscal Year 2025/2026 maximum assessments (initial maximum assessment rate) established herein for the Annexation Territory to increase by an amount equal to the lesser of: (1) three percent (3.0%), or (2) the annual percentage increase of the Local Consumer Price Index (CPI) for “All Urban Consumers” for the Los Angeles-Long Beach-Anaheim Areas (February of the given year from the previous February or similar time frame).

The adoption of the maximum assessment rates and the Assessment Range Formula described herein does not mean that the annual assessments will necessarily increase each fiscal year, nor does it absolutely restrict the assessments to the annually adjusted maximum assessment rates. Although the maximum assessment rates that may be levied shall be increased each fiscal year, the actual amount to be assessed will be based on the Balance to Levy for that fiscal year. If the calculated assessment is less than the adjusted maximum assessment, then the calculated assessment may be approved by the City Council for collection.

If the calculated assessment (based on the proposed budget) is greater than the adjusted maximum assessment for that fiscal year, then the assessment would be considered an increased assessment and would require property owner approval through another property owner protest ballot proceeding before imposing such an increase. Otherwise, it would be necessary to reduce the budget or provide a contribution from the City to reduce the Balance to Levy (amount to be assessed) to an amount that can be supported by an assessment rate less than or equal to the adjusted maximum assessment rate authorized for that fiscal year.

The Assessment Range Formula shall be applied to the maximum assessment rates for Zone 19 in the Annexation Territory commencing in Fiscal Year 2025/2026 and shall be applied in each subsequent fiscal year unless the City Council formally suspends its application.

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part IV — Boundary Diagrams
The Fiscal Year 2025/2026 District Diagrams on the following pages show the boundaries of the Covina Landscape Maintenance District No. 1 including Zone 19 (Sheet 1) and a separate diagram for Zone 19 (Sheet 2).

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Covina Landscape Maintenance District No. 1
Engineer’s Report
Annexation of Territory and Establishment of Zone 19
Fiscal Year 2025/2026

Part V — Assessment Roll
Parcel identification for each lot or parcel within the Annexation Territory shall be the APN as shown on the Los Angeles County Secured Roll for the year in which this Report is prepared and reflective of the Assessor’s Parcel Maps.

The following is the lot and parcel of land (parcel) within the Annexation Territory and the corresponding maximum assessments being set for Fiscal Year 2025/2026.

APN Zone Owner Area Acres EBU
Maximum Rate Per
Assessment Unit
FY 2025/2026
Maximum
Assessment FY
2025/2026
8430-015-021 19 TH BARRANCA II LLC Tract 84311 2.780 75.000 $20.20 $1,515.00

CC Regular Meeting

AGENDA ITEM REPORT
ITEM NO. PH 4
Meeting: June 5, 2025
Title: Adopt Resolution Ordering the Annexation of Territory to Covina Lighting District No. 1978-79, Confirming a Diagram and Assessment, Ordering the Improvements, and the Levy and Collection of Assessments within Such Territory for FY 2025/2026 Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Conduct a public hearing and consider all testimony that may be forthcoming; and

2. Adopt Resolution CC 2025-45 Ordering the Annexation of Territory to Covina Lighting District No. 1978-79, Confirming a Diagram and Assessment, Ordering the Improvements, and the Levy and Collection of Assessments within such Territory for FY 2025/2026.

EXECUTIVE SUMMARY/BACKGROUND:

Tract No. 84311 into Covina Lighting District No. 1978-79 and to levy and collect annual assessments. The Council also adopted Resolution CC 2025-24 declaring its intention to annex territory into the District and begin levying assessments for this annexation starting in FY 2025/2026. Additionally, the Council called for a property owner protest proceeding and initially scheduled a public hearing for Tuesday, May 20, 2025, at 7:30 p.m. in the Council Chambers, located at 125 East College Street, Covina, California. This hearing has since been rescheduled to June 3, 2025 to receive public input regarding the proposed assessments for FY 2025/2026.

The Covina Lighting District No. 1978-79 was formed on November 20, 1978, pursuant to the California Streets and Highways Code, Part 2, Division 15, Landscaping and Lighting Act of 1972 (hereinafter referred to as the “1972 Act”), to finance the energy and maintenance costs of new streetlights installed by several commercial and residential developers. The District was formed through a public hearing process, and the properties within the District were designated Zone A for single-family residential and condominium units and Zone B for commercial, industrial, and apartment properties.

The City expanded the District in 1980 to include all developments that may or may not be required to install new streetlights but were required to construct public improvements adjacent to the property being developed, except when the development did not increase the existing floor area by fifty percent (50%) pursuant to the regulations of Chapter 11 of the Covina Municipal Code. Although a citywide District was not implemented, it was the City’s intent to work toward incrementally expanding the District to cover the entire City.

In December 1988, the District was expanded by annexing (through public hearing proceedings) parcels east and west of Azusa Avenue from Arrow Highway to 600 feet south of Badillo Street. A number of parcels were annexed to the District when streetlights were installed in conjunction with utility undergrounding projects.

Parcels were also annexed to the District in connection with City sponsored street projects. These annexations were in areas where the property owners requested that streetlights be installed in their blocks with the owners paying for the installation of the streetlights. Subsequent annexations to the District included similar projects and developments but also included various individual residential and commercial properties that were annexed to the District as a condition of property improvements (building permits). This process of annexation resulted in the existing District representing approximately thirty-five percent (35%) of the parcels within the City.

Each fiscal year, prior to making and collecting assessments within the Covina Lighting District No. 1978-79, the City Council must adopt resolutions directing the City’s Licensed Engineer to prepare and file a report regarding the proposed assessment for each Zone, approving the Engineer’s Report (Attachment B), and declaring

the City Council’s intention to levy and collect assessments for the upcoming fiscal year. Additionally, before any assessments may be levied, the City Council must also adopt a resolution establishing a noticed public hearing to hear any protests against the assessment and for the approval of the Engineer’s Report and adoption of a resolution ordering the levy of assessments for FY 2025/2026.

DISCUSSION:

Pursuant to the provisions of the 1972 Act, being Part 2, Division 15, of the California Streets and Highways Code, commencing with Section 22500, the attached Engineer’s Report is prepared in compliance with the requirements of Article 4, Chapter 1, of the 1972 Act regarding the annexation of territory into the City’s existing Covina Lighting District No. 1978-79.

The City Council of the City of Covina, being the legislative body for the District, may, pursuant to the 1972 Act, annex territory and levy annual assessments for the operation and administration of the District. In Section 22608 of the 1972 Act, it states “right of majority protest shall be limited to the territory proposed to be annexed.” In addition, the 1972 Act provides for the levy of annual assessments after annexation into or formation of an assessment district for the continued maintenance and servicing of the improvements. The 1972 Act further allows various areas to be annexed into an existing district when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to properties which benefit from the installation, maintenance, and servicing of such improvements.

In accordance with the 1972 Act, the District utilizes benefit zones to address variations in the nature, location, and extent of the improvements that provide special benefits to parcels in the District. There are two Zones in the Covina Lighting District No. 1978-79 designated as Zones A and B. Zone A is comprised of single-family residences and condominium units. Zone B is comprised of commercial, industrial, apartment, and similar multifamily residential properties. The proposed assessments are for the costs of providing street lighting in these two zones.

The attached Engineer’s Report specifically addresses the annexation of approximately 2.78 acres of territory consisting of one parcel (Tract No. 84311) in connection with the annexation territory for FY 2025/2026, pursuant to a resolution of the City Council. The Report consists of five parts: Part I: Plans and Specifications, Park II:

Method of Apportionment, Part III: Estimate of Costs, Part IV: Boundary Diagram, and Part V: Assessment Roll.

This territory is more specifically identified as:

APN 8430-015-01 (Tract No. 84311)
Generally located north of Limoncello Lane, east of Ruby Red Drive and west of Barranca Avenue, will develop out to seventy-five (75) condominiums. This development will benefit from existing streetlights.

This annexation territory is proposed to be annexed into the District and levied assessments commencing in FY 2025/2026 and shall be known and referred to as:

Annexation No. 83 for the Covina Lighting District No. 1978-79 This annexation area will pay the special benefit costs associated with the on-going annual maintenance of the improvements including the servicing, operation, maintenance, repair, and replacement of the improvements.

The FY 2025/2026 proposed assessment rates are $20.80 per Benefit Unit (BU) for Zone A and $2.70 per BU for Zone B. Benefit Units are calculated per 1,000 square feet of land area for Zone B. The rates of $20.80 per unit

for Zone A and $2.70 per 1,000 square feet of land area for Zone B have been in effect since FY 1996 and are the maximum assessment rates for each Zone.

Table 1: Annexation No. 83 Assessment Rates and Revenue Zone A Units/BU Proposed Rate Assessment Revenue
Tract No. 84311 75 units $20.80/unit $1,560.00
There are no Commercial properties being annexed into this District for FY 2025/2026.

The Annexation Engineer’s Report proposes a $1,508 General Fund contribution for Zone A to finance the shortfall portion of the FY 2025/2026 expenses. These General Fund contribution costs are already included in the budget identified on the next page in Table 2 and require no additional appropriations.

Table 2: Annexation No. 83 – FY 2025/2026 Summary
Zone A
Budget Item Total Amount
Proposed Assessments $1,560
General Fund Contribution $1,508
Total Projected Revenue $3,068
Energy and Maintenance $2,717
Administration $ 351
Total Projected Expenditures $3,068
Estimated Ending Fund Balance ($0)
Ballot Proceedings
As part of these proceedings, the City shall conduct a property owner protest ballot proceeding (“Ballot Proceeding”) for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID, Section 4, and in accordance with the provisions of Government Code, Section 53753. In conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the annexation, the resulting new annexation territory, and the new assessments described herein. Upon conclusion of the public hearing, property owner protest ballots received will be opened and tabulated to determine whether majority protest exists as defined in Article XIIID of the California Constitution.

As specified by the California Constitution, Article XIIID Section 4(e):
“A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property.”
After completion of the ballot tabulation, the City Council will confirm the results of the balloting. If majority protest exists for the proposed Annexation No. 83 assessment, further proceedings to annex the parcels within the District and implementation of the new Zone and new assessments shall be abandoned at this time.

If tabulation of the ballots indicate that majority protest does not exist for the proposed new assessments described herein, the City Council, by resolution, may adopt this Report (as submitted or amended); approve the assessment

diagram (Zone Boundary Diagram) contained herein; order the annexation of the parcels within the District and the improvements to be made; and confirm the new assessments as outlined in this Report.

FISCAL IMPACT:

The assessment of properties within Annexation No. 83, under the proposed assessment rates, raises the funds necessary to pay the special benefit portion of the costs associated with Annexation No. 83. The General Fund portion of the costs associated with Annexation No. 83 requires a General Fund contribution of $1,508.00 in FY 2025/2026.

CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):

Not applicable.

Respectfully submitted,

Report Approval Details
Document Title: PH - Annexation of Territory to Covina Lighting District No. 1978-

79.docx
Attachments: - Attachment A - Resolution CC 2025-45.docx - Attachment B - Annex 83 Engineers Report.pdf
Final Approval Date: May 29, 2025
This report and all of its attachments were approved and signed as outlined below:

Raphael Guillen
Rafael Fajardo
Theresa Franke
Fabian Velez
Chris Marcarello

ATTACHMENT A
RESOLUTION CC 2025-45

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

CALIFORNIA, ORDERING THE ANNEXATION OF TERRITORY TO
COVINA LIGHTING DISTRICT NO. 1978-79, CONFIRMING A

DIAGRAM AND ASSESSMENT, ORDERING THE IMPROVEMENTS,

AND THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN SUCH
TERRITORY FOR FISCAL YEAR 2025/2026 PURSUANT TO THE
PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA

STREETS AND HIGHWAYS CODE AND ARTICLE XIIID OF THE

CALIFORNIA CONSTITUTION
WHEREAS, the City Council has, by previous Resolutions, initiated proceedings and declared its intention for the annexation of territory identified as Tract No. 84311, Annexation No. 83 (hereinafter referred to as the “Annexation Territory”), into the Lighting District No. 1978-79 (hereinafter referred to as the “District”) and the levy and collection of assessments within the Annexation Territory for the 2025/2026 fiscal year, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (hereinafter referred to as the “Act”), to pay the costs and expenses for the ongoing maintenance, operation, and servicing of the lighting improvements and appurtenant facilities related thereto; and
WHEREAS, the initial Public Hearing was scheduled for May 20, 2025, and rescheduled to June 3, 2025; and
WHEREAS, the City Council caused to be prepared a written report (the “Engineer’s Report”) in accordance with the Act and Article XIIID of the California Constitution; and WHEREAS, it is estimated that the improvements to be installed and constructed within the Annexation Territory will be accepted and maintained by the City as part of the District for the 2025/2026 fiscal year; and
WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the Annexation Territory for the fiscal year commencing July 1, 2025 and ending June 30, 2026 (fiscal year 2025/2026), to pay the costs and expenses of the ongoing operation, maintenance, and servicing of improvements determined to be of special benefit to the properties and the development of properties within the Annexation Territory, and all appurtenant facilities related thereto.

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

CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. Protest Determination: Following notice duly given in accordance with law, the City Council has held a full and fair public hearing regarding the Engineer’s Report, the

Resolution CC 2025-45 Page 2 of 4
annexation of territory to the District, and the levy and collection of the proposed assessment within such territory for fiscal year 2025/2026. All interested persons were afforded the opportunity to hear and be heard. The City Council considered all oral and written statements, protests, and communications made or filed by interested persons, and tabulated all ballots. The City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XIIID of the California Constitution. All protests and objections to the annexation of territory to the District and the levy and collection of the proposed assessment against lots or parcels of property within the annexed territory for fiscal year 2025/2026 are hereby overruled by the City Council.

SECTION 2. Findings: Based upon its review of the facts presented, the City Council hereby finds and determines that:
a) The land within the Annexation Territory will receive special benefit from the operation, maintenance, and servicing of lighting improvements to be provided by the City as part of the District.
b) The Annexation Territory includes all of the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the Annexation Territory has been apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services to be provided commencing with fiscal year 2025/2026.
d) Only special benefits are assessed and no assessment is imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.

SECTION 3. Improvements: The City Council hereby orders the proposed improvements to be made. Said improvements include, but are not limited to, the maintenance, operation, and incidental expenses related to the lighting improvements and any facilities which are appurtenant to such improvements within the public right-of-ways or easements associated with the parcels of land within the Annexation Territory and all necessary appurtenances and services connected with such improvements. The cost of providing such improvements generally include, but are not limited to, all materials, equipment, utilities, labor, and incidental expenses including administrative expenses for the regular annual maintenance as authorized by the Act. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained for the Annexation Territory are on file in the Department of Public Works of the City of Covina and by reference these plans and specifications are made part of this Resolution and the Engineer’s Report prepared in connection with these proceedings.

SECTION 4. Annexation Approval: The City Council hereby orders the annexation of territory to be known as “Annexation No. 83” and described as Tract No. 84311 to the District.

The District will continue to be designated as City of Covina Lighting District No. 1978-79, the

Resolution CC 2025-45 Page 3 of 4
boundaries of which shall be contained in the assessment diagram for the District, the establishment of the maximum assessment rate connected therewith, and the assessments for the fiscal year commencing July 1, 2025 and ending June 30, 2026.

SECTION 5. Confirmation of Diagram and Assessment: The City Council hereby confirms the diagram and assessment, with respect to the annexed parcels, as originally proposed in the Engineer’s Report. The assessment is in compliance with the provisions of the Act and Article XIIID of the California Constitution. The assessment is levied without regard to property valuation. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 3 above for the fiscal year commencing on July 1, 2025 and ending June 30, 2026.

SECTION 6. Levy of Assessment: The adoption of this Resolution constitutes the levy of an assessment for the fiscal year commencing July 1, 2025 and ending June 30, 2026.

SECTION 7. Collection of Assessments: The County Auditor of Los Angeles County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy so described in the Engineer’s Report for the Annexation Territory of the District, and such levies shall be submitted to the County Auditor along with the other assessments for the District and collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

SECTION 8. Deposit of Funds: The City Treasurer shall deposit all money representing assessments collected by the County for the Annexation Territory (Annexation No. 83 of the District) to the credit of a fund for Annexation No. 83 of the District, and such money shall be expended only for the maintenance, operation, and servicing of the improvements as described in the Engineer’s Report and generally described in Section 3 of this Resolution.

SECTION 9. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the City Council’s approval of the annexation of the parcels within Annexation No. 83 to Lighting District No. 1978-79, the adoption and confirmation of the Annexation Territory Assessment Diagram, and the establishment of the maximum assessment rates, assessment range formula, and the assessments for Fiscal Year 2025/2026 as contained in the Engineer’s Report.

APPROVED and PASSED this 3
rd day of June, 2025.

City of Covina, California
BY:

VICTOR LINARES, Mayor

Resolution CC 2025-45 Page 4 of 4
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

CERTIFICATION
I, Fabien Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-45 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of June 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

Dated:
____________________________________________
FABIAN VELEZ, Chief Deputy City Clerk

City of Covina
Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Commencing Fiscal Year 2025/2026
Intent Meeting: April 1, 2025
Public Hearing: June 3, 2025
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500
F 951.587.3510
www.willdan.com

ATTACHMENT B

ENGINEER'S ANNEXATION REPORT AFFIDAVIT
City of Covina
Covina Lighting District No. 1978-79
Annexation No. 83
Commencing in Fiscal Year 2025/2026
City of Covina,
Los Angeles County, State of California
As part of the Resolution of Intention packet presented for the consideration of the Covina City Council, this Report and the enclosed budget, diagrams, and description outline specific proposed changes to the Covina Lighting District No. 1978-79 for Fiscal Year 2025/2026, including the annexation of territory to the District; and the proposed new annual assessments for all parcels within Annexation No. 83 commencing in Fiscal Year 2025/2026. Reference is hereby made to the Los Angeles County Assessor’s Parcel Maps for a detailed description of the lines and dimensions of parcels within Annexation No. 83 known as Assessor Parcel Number 8430-015-021 (Tract No. 84311) that will be subject to the proposed annual assessments.

The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this 4th day of April, 2025.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Covina
By: ________________________________
Stacee Reynolds
Principal Consultant
By: ________________________________
Tyrone Peter
R. C. E. # C81888

Table of Contents
INTRODUCTION ........................................................................................................................................... 1 PART I — PLANS AND SPECIFICATIONS ................................................................................................. 3 IMPROVEMENTS AUTHORIZED BY THE 1972 ACT ............................................................................. 3 DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICED ....................................... 4 PART II — METHOD OF APPORTIONMENT............................................................................................... 5 LEGISLATIVE REQUIREMENTS FOR ASSESSMENTS ........................................................................ 5 SPECIAL BENEFITS ................................................................................................................................ 5 GENERAL BENEFIT ................................................................................................................................ 6 ASSESSMENT METHODOLOGY ............................................................................................................ 6 APPORTIONMENT ................................................................................................................................... 7 PART III — ESTIMATE OF COSTS .............................................................................................................. 8 PART IV — ASSESSMENT DIAGRAM ........................................................................................................ 9 PART V — ASSESSMENT ROLL ............................................................................................................... 10

Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026

Introduction
Pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2, Division 15, of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), this report is prepared in compliance with the requirements of Article 4, Chapter 1, of the 1972 Act regarding the annexation of territory into the City’s existing Covina Lighting District No. 1978-79 (hereafter referred to as “District”).

The City Council of the City of Covina, being the legislative body for the District, may, pursuant to the 1972 Act, annex territory and levy annual assessments for the operation and administration of the District. In Section 22608 of the 1972 Act, it states “right of majority protest shall be limited to the territory proposed to be annexed.”
In addition, the 1972 Act provides for the levy of annual assessments after annexation into or formation of an assessment district for the continued maintenance and servicing of the improvements. The 1972 Act further allows various areas to be annexed into an existing district when the territory in the annexation receives substantially the same proportional special benefits from the improvements. The costs associated with the installation, maintenance, and servicing of the improvements may be assessed to properties benefiting from the installation, maintenance, and servicing of such improvements.

This report specifically addresses the annexation of approximately 2.78 acres of territory consisting of one parcel (Tract No. 84311).

In accordance with the 1972 Act, the District utilizes benefit zones (“Zones”) to address variations in the nature, and extent of the improvements that provide special benefits to parcels in the District. Within the boundaries of the District, parcels are assigned to either Residential Zone A or Commercial Zone B.

This territory is more specifically identified as:
 APN 8430-015-01 located north of Limoncello Lane, east of Ruby Red Drive and west of Barranca Avenue, will develop out to seventy-five (75) condominiums. This development will benefit from existing streetlights.

This annexation territory is proposed to be annexed into the District and levied assessments commencing in Fiscal Year 2025/2026, and shall be known and referred to as:

Annexation No. 83 for the Covina Lighting District No. 1978-79 (hereafter referred to “Annexation No. 83”). The properties associated with and identified herein as Annexation No. 83 are shown on the Assessment Diagrams incorporated herein as Part IV of this Report.

This Report has been prepared in connection with the annexation of parcels into the District for Fiscal Year 2025/2026, designated as Annexation No. 83, pursuant to a resolution of the City Council and consists of the following five (5) parts.

Part I – Plans and Specifications
Contains a description of the improvements to be maintained or serviced throughout the District.

Part II – Method of Apportionment
Describes the basis on which the costs have been apportioned to each parcel of land within the District, in proportion to the estimated benefits to be received.

Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026

Part III – Estimate of Costs
Identifies the estimated cost of the services or maintenance to be provided throughout the District, including incidental costs and expenses in connection therewith.

Part IV – Assessment Diagram
Contains a diagram showing the existing exterior boundaries of the District, and the location and parcels that receive special benefits from the streetlight improvements to be provided and maintained as part of Annexation No. 83. The lines and dimensions of each lot, parcel, and subdivision of land within Annexation No. 83 are inclusive of all parcels listed in Part V, Assessment Roll, of this Report and the corresponding Los Angeles County Assessor’s Parcel Maps for said parcels as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein. Reference is hereby made to the Los Angeles County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within Annexation No. 83.

Part V – Assessment Roll
Identifies the maximum assessment to be levied on each benefited lot or parcel of land within Annexation No. 83.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the Report and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.

Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026

Part I — Plans and Specifications
IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to the District, the 1972 Act defines improvements to mean one or any combination of the following:
 The installation or construction of public lighting facilities.  The maintenance and/or servicing of any public lighting facilities.  The acquisition of any existing lighting improvement otherwise authorized pursuant to this section.

The 1972 Act defines “incidental expenses” to include all of the following:
 The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment.
 The costs of printing, advertising, and the giving of published, posted, and mailed notices.  Compensation payable to the county for collection of assessments.  Compensation of any engineer or attorney employed to render services in the proceeding pursuant to this part.
 Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements.
 Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.  Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines “maintain” or “maintenance” to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including the repair, removal, or replacement of all or any part of any improvement.

Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026

DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICED The District was established to collect funds to cover the expenses for energy and maintenance of streetlights in the City. These costs are billed by the Southern California Edison Company for all District streetlights currently owned and maintained by Edison (approximately 1,247 streetlights) and all District streetlights owned by the City (approximately 215 streetlights).

The following tables show the wattage and lumens of the City’s streetlights, distinguishing between those owned by Edison and those owned by the City, along with the number of units in each zone.

The existing improvements for the District include, but are not limited to, and may be generally described as follows:
 The installation of streetlighting, traffic signals, and other appurtenant facilities that are necessary for the daily operation of said lighting located within City road rights-of-way. Installation covers all work necessary for the installation or replacement of said lighting and all appurtenant work necessary to complete said installation or replacement.
 The operation, maintenance, and servicing of all existing streetlighting, traffic signals, and other appurtenant facilities necessary for the daily operation of said lighting located within City road rights-ofway. Operation, maintenance, and servicing means all work necessary to maintain said lights in proper operation including providing energy to operate the lights.

Locations of all streetlights for the District are included in a database held at the City. The annexation diagram is on page 9 of this report, as Annexation No. 83. The Los Angeles County Assessor’s Maps, copies of which are in the City of Covina Engineering Division’s office, are made a part hereof.

Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026

Part II — Method of Apportionment

LEGISLATIVE REQUIREMENTS FOR ASSESSMENTS
The costs of the proposed improvements have been identified and allocated to properties within Annexation No. 83 based on proportional special benefit with the Assessor Parcel Numbers currently in the District, consistent with the provisions of the 1972 Act and the assessment provisions of Proposition 218 (being contained in Article XIIID of the California Constitution). The improvements provided by this District and for which properties within the annexation areas are assessed are identified as streetlights that were installed prior to this annexation. The formulas used for calculating assessments and the designation of Zones herein reflect the composition of parcels within Annexation No. 83, and the streetlight improvements are fairly apportioned among the parcels in the District.

In addition to the provisions of the 1972 Act, Article XIIID of the California Constitution outlines specific requirements regarding assessments including the following:

Article XIIID Section 2d defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service.” Article XIIID Section 2i defines Special Benefit as follows:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.”
Article XIII D Section 4a defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”

SPECIAL BENEFITS
Street lighting in the District is primarily useful for illuminating the streets that provide access to the properties in the District as well as the sidewalks and parking lanes associated with those properties. While it is recognized that both streetlights and traffic signals serve in part to enhance traffic safety, installation and construction of these improvements were clearly required by the development of properties within the District and these improvements provide three main special benefits to those properties: (i) property security benefit, (ii) pedestrian safety benefit, and (iii) parkway/roadway egress benefit. Furthermore, because traffic circulation in the City is largely the result of local traffic to and from these properties by the property owners and guests, it is reasonable to assume that these properties derive a particular and distinct benefit from the streetlights and traffic signals that support the safe access to the properties and essentially all pedestrians and parking vehicles in the lit areas will, after dark, be directly associated with the assessed properties. As a result, the maintenance of these lighting improvements is a particular and distinct benefit to the properties in Zone A.