Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026
GENERAL BENEFIT
In regard to street lighting on the arterial streets, similar to local streetlights located on the collector streets and development perimeters, it is certainly reasonable to recognize that arterial streetlights provide a measure of general benefit to the public and to properties in general resulting from nighttime traffic safety and circulation on these primary streets. Based on a report completed by Meyer, Mohaddes Associates, in March 2006, regarding the City’s Transportation Impact Fee Program, it is estimated that the average number of vehicular trips generated by properties within the City account for approximately sixty-six percent (66%) of the total daily trips on the City’s arterial streets, with thirty-four percent (34%) being either pass-through trips from outside the City or additional trips above the average from properties within the City. Utilizing this information as part of the analysis for separating general benefits from special benefits, it is reasonable to conclude that thirty-four percent (34%) of the street light improvements and associated costs of the City’s arterial streetlights can be identified as general benefit to the public at large and to the properties that are assessed. Therefore, thirty-four percent (34%) of the District’s maintenance costs are for general trafficrelated improvements along the City’s arterial streets, which together improve the overall safety of the community at large, and the properties therein and therefore, are considered to be a general benefit.
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 Benefit Unit (BU) 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 BU 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 are not limited to, land use and property size.
For the purposes of this Engineer's Report, BU 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 BU 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.
The existing District’s Method of Apportionment utilizes commonly accepted assessment-engineering practices and were established pursuant to the 1972 Act and the provisions of the California Constitution.
The method outlined for each Zone is based on the premise that each assessed parcel receives benefit from the improvements maintained and financed by the District’s assessments.
Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026
APPORTIONMENT
Assessments proposed for individual lots within the District are for special benefit received and are determined based upon two benefit zones, Zone A and Zone B, which are identified in the chart below:
Benefit Zones
FY 2025/2026
Maximum Assessment
per Benefit Unit
(1) Residential - Zone A $20.80
(2) Non-Residential - Zone B $2.70
Zone A residential parcels are assigned one (1) unit per dwelling unit and BUs for commercial parcels in Zone B are calculated per thousand square feet of land area.
This same method of apportionment is applicable to parcels within Annexation No. 83.
The benefit to properties for traffic signals, intersection lighting and local safety lighting on City streets are a benefit to the parcels within the City. The parcels within the District share equally the cost of the signal and safety lights. Thus, the total benefit to each parcel within the District is a combination of the traffic signal and safety lighting.
Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
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 Annexation No. 83 is the total cost of maintenance and servicing with adjustments either positive or negative for reserves, surpluses, deficits, and/or contributions.
The estimated annual improvement costs for Annexation No. 83 are identified below.
BUDGET ESTIMATES
Note: A full breakdown of Revenue and Expenses will be provided in the Annual Engineers Reports for Fiscal Year 2025/2026 for Lighting District No. 1978-79.
Annexation to Zone A
Tract 84311
Delivery and Maintenance $2,717
Engineering Services 68
Administrative Overhead 271
Legal Notices 1
Property Tax Administrative Fees 10
Contingency (1) 0
Expense Total $3,068
Proposed Assessment Revenue $1,560
General Fund Contribution 1,508
Revenue Total $3,068
Benefit Units (BUs) at Build Out 75.00
Proposed Assessment Rate Per Unit $20.80
Proposed Expenses
Estimated Revenues
Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026
Part IV — ASSESSMENT DIAGRAM
Covina Lighting District No. 1978-79
Engineer’s Report
Annexation No. 83
Fiscal Year 2025/2026
Part V — ASSESSMENT ROLL
Parcel identification for each lot or parcel within Annexation No. 83 shall be the parcels 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 a list of the parcels of land (parcels) within the District and the corresponding maximum assessments being set for Fiscal Year 2025/2026, as determined by the assessment rate and method of apportionment described herein.
APN Zone Owner Area EBU
Maximum Rate Per
Assessment Unit
FY 2025/2026
Maximum
Assessment
FY 2025/2026
8430-015-021 83 TH BARRANCA II LLC Tract 84311 75.0000 $20.80 $1,560.00
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. NB 1
Meeting: June 3, 2025
Title: Introduction of Ordinance 25-05 Amending Chapter 2.54 (Public Projects) of Title 2 (Administration and Personnel)
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: Waive full reading and introduce Ordinance 25-02, entitled “Amending Chapter 2.54 (Public Projects) of Title 2 (Administration and Personnel) of the Covina Municipal Code, Revising Procedures and Requirements for Bidding of Public Works Projects, and Finding this Ordinance to be Exempt Under the California Environmental Quality Act (CEQA)”.
EXECUTIVE SUMMARY/BACKGROUND:
On September 29, 2024, Governor Gavin Newsom approved Assembly Bill (“AB”) 2192 (Carillo), which amends portions of California’s Uniform Public Construction Cost Accounting Act (“CUPCCAA” or “Act”) (Pub.
Contract Code § 22000 et seq.). The amendments, effective January 1, 2025, increase the bidding thresholds in Public Contract Code Section 22032, expand the statutory definition of “public projects,” and broaden the oversight authority of the California Uniform Construction Cost Accounting Commission (“Commission”).
DISCUSSION:
Assembly Bill 2192 (“AB 2192”), which took effect January 1, 2025, increases the bidding thresholds for public agencies that have opted into the California Uniform Public Construction Cost Accounting Act (“Act”) on Public Projects as defined in the Act.
Currently, the Act allows for a public works project in the amount of $45,000 or less to be performed by the public agency’s force account, by negotiated contract, or by purchase order. Projects in the amount of $175,000 or less can use informal bidding procedures as set forth in the Act. Projects that exceed $175,000 must be put out to bid under formal bidding procedures as set forth in the Act. AB 2192, and increases the limits for each level as follows:
Previous Threshold AB 2192 Threshold
City Employee (Force Account) $45,000 or less $75,000 or less Informal Bidding Process $175,000 or less $220,000 or less Formal Bidding Process Over $200,000 Over $220,000
The City previously adopted Ordinance No. 15-2043, thereby opting to be governed by the alternate bidding procedures in the Act. However, in so doing, the City adopted the informal and formal bidding amounts as they existed in 2015. Since then, those limits have been regularly increased while the City’s bidding limits have remained fixed at the 2015 levels.
It is the intent of the City Council in adopting this Ordinance to revise the City’s bidding limits for informally bid and formally bid public works contracts, to the current levels set forth in the Act, while providing that such levels will adjust automatically as those levels are revised by the State Legislature. The City Council’s further intent in adopting this Ordinance is to revise the City’s public works procurement procedures to more fully reflect the requirements of the Act, and other requirements of the California Public Contract Code, Labor Code and Civil Code applicable to public works contracts.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Finding this ordinance to be categorically exempt under the California Environmental Quality Act (CEQA).
Respectfully submitted,
Report Approval Details
Document Title: First Reading of Ordinance No. 2025-XX Amending Chapter 2.54 Public Projects - AB 2192.docx
Attachments: - Attachment A - Ordinance 25-02.DOCX
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
ORDINANCE 25-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, AMENDING CHAPTER 2.54 (PUBLIC PROJECTS) OF
TITLE 2 (ADMINISTRATION AND PERSONNEL) OF THE COVINA
MUNICIPAL CODE, REVISING PROCEDURES AND REQUIREMENTS
FOR BIDDING OF PUBLIC WORKS PROJECTS, AND FINDING THIS
ORDINANCE TO BE EXEMPT UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council makes the following findings in connection with the adoption of this Ordinance:
A. Prior to the enactment of the Uniform Public Construction Cost Accounting Act, California Public Contract Code Sections 22000-22045, (“the Act”), local agencies in California, including the City of Covina, were required to competitively bid all public works projects, as defined, in excess of $5,000 in accordance with the requirements of California Public Contract Code Section 20160, et seq. Further, prior to the Act, a uniform cost accounting standard was unavailable for construction work performed or contracted by or for local public agencies.
B. Pursuant to the Act, the Uniform Construction Cost Accounting Commission, in conjunction with the State Controller, has established uniform public construction cost accounting procedures for implementation by local public agencies electing to be governed by the provisions of the Act in performing or contracting for construction of public works projects. These include procedures based on whether the project is subject to informal or formal bidding, pursuant to bidding threshold dollar amounts established by the Act, and revised from time to time.
C. The City has heretofore adopted its Ordinance No. 15-2043, thereby opting to be governed by the alternate bidding procedures in the Act. However, in so doing, the City adopted the informal and formal bidding amounts as they existed in 2015. Since then, those limits have been regularly increased, while the City’s bidding limits have remained fixed at the 2015 levels.
D. It is the intent of the City Council in adopting this Ordinance, to revise the City’s bidding limits for informally bid and formally bid public works contracts, to the current levels set forth in the Act, while providing that such levels will adjust automatically as those levels are revised by the State Legislature. The City Council’s further intent in adopting this Ordinance is to further revise the City’s public works procurement procedures to more fully reflect the requirements of the Act, and other requirements of the California Public Contract Code, Labor Code and Civil Code applicable to public works contracts.
SECTION 2. Chapter 2.54 (Public Projects) of Title 2 (Administration and Personnel) of
Ordinance 25-02 Page 2 of 5
the Covina Municipal Code is hereby repealed. A new Chapter 2.54 (Public Projects) is hereby added to Title 2 (Administration and Personnel) of the Covina Municipal Code to read as follows:
“Chapter 2.54. PUBLIC PROJECTS
2.54.010. Informal and formal bidding limits and procedures.
The informal and formal bidding limits for “public projects”, as defined in the Uniform Public Construction Cost Accounting Act, California Public Contract Code Sections 22000-22045, shall be as set forth in Public Contract Code Section 22032, as those limits may be amended from time to time. In accordance with the foregoing bidding limits, public works projects may be: (i) performed by City employees by force account, by negotiated contract, or by purchase order; (ii) let to contract by informal bidding procedures set forth in this Chapter; or (iii) let to contract by formal bidding procedures set forth in this Chapter.
2.54.020. Contractors list for informal bidding.
A list of contractors shall be developed and maintained in accordance with the provisions of Public Contract Code Section 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.
2.54.030. Notice inviting informal bids.
(a) All contractors on the list, developed in accordance with Section 2.54.020 of this Chapter, for the category of work being bid, and all construction trade journals, as referenced in Public Contract Code Section 22036, shall be mailed a notice inviting informal bids. (b) Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids.
(c) If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified in Public Contract Code Section 22036. (d) If the product or service is proprietary in nature such that it can be obtained only from a certain source or contractor(s), City procedures governing sole source procurements shall be followed, to the extent permitted by law.
(e) All mailing of notices to contractors and construction trade journals pursuant to this Section shall be completed not less than ten (10) calendar days before bids are due. (f) The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for submission of bids.
(g) If, following informal bidding, all bids received are in excess of the informal bid limit amounts specified in Section 2.54.010 of this Chapter, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract, up to the higher amount set forth
Ordinance 25-02 Page 3 of 5
in Public Contract Code Section 22034(d), as the same may be amended from time to time, to the lowest responsible bidder, if it determines the City’s cost estimate was reasonable.
2.54.040. Notice inviting formal bids.
The notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published in the City, then in a newspaper of general circulation which is circulated within the City. If there is no such newspaper circulated in the City, then publication shall be by posting the notice in at least three places within the City as have been designated the posting of its notices. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or email and mailed to all construction trade journals specified in Public Contract Code Section 22036.
The notice shall be sent at least fifteen (15) calendar days before the date of opening the bids.
In addition to notice required by this Section, the City may give such other notice as it deems proper.
2.54.050. Award of contracts.
(a) In its discretion, the City may reject any bids presented, if the City, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the agency, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the City’s intention to reject the bid and shall be mailed at least two business days prior to the hearing at which the City intends to reject the bid. If, after the first notice inviting bids, all bids are rejected, after reevaluating its cost estimates of the project, the City shall have the option of either of the following:
(1) Abandoning the project or readvertising for bids in the manner described by this Chapter.
(2) By passage of a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by the employees of the City, may have the project done by force account without further complying with this Chapter. (b) If a contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses. (c) If no bids are received through the formal or informal bidding procedure, the project may be performed by the employees of the City by force account, or negotiated contract without further complying with this Chapter.
(d) Notwithstanding the foregoing, the City Manager is authorized to award informally bid contracts pursuant to this Section.
2.54.060. Other requirements applicable to contracts for public works projects. (a) Pursuant to Civil Code Section 9550, et seq., a payment bond is required for all contracts
Ordinance 25-02 Page 4 of 5
for public works projects over $25,000.
(b) All public works projects over $1,000 require payment of prevailing wages and compliance with Labor Code Sections 1720 through 1861.
(c) All contracts for public works projects require compliance with applicable provisions of the Public Contract Code whether or not informal or formal bidding, or no bidding, is required.”
SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Section 15060(c)(2) of the California CEQA Guidelines, the City Council finds that this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Additionally, pursuant to Section 15060(c)(3) the activity is not a “project” as defined in Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.
SECTION 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court or competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrases, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof, be declared invalid or unconstitutional.
SECTION 5. CITY CLERK CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen (15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and post a certified copy of the text of this Ordinance in the Office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and, within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.
PASSED, APPROVED, and ADOPTED this __ day of ____, 2025.
City of Covina, California
BY:
VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
Ordinance 25-02 Page 5 of 5
APPROVED AS TO FORM:
____________________________________
CANDICE K. LEE, City Attorney
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 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