CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING
AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA
Tuesday, March 3, 2026, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
IMPORTANT NOTICE
Members of the public may begin entering the City Council Chamber 15 minutes prior to the scheduled start time of the meeting as listed above. During this time, and the duration of the meeting, members of the public will have access to the City Council Chamber and first floor restrooms only.
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Public Comments: Time is reserved during the Public Comments portion of the meeting for those in the audience who wish to address the City Council on items listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) and items not listed in the agenda within the subject matter jurisdiction of the City Council, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.
All communications are to be addressed directly to the City Council and not to the members of the audience. Each speaker is limited to a total of three (3) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on anticipated length of the meeting. A speaker's time may not be transferred to another speaker. State Law prohibits the Council/Agency/Authority from taking action on any item not on the agenda.
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Pages
JOINT MEETING—CLOSED SESSION 6:30 PM
CLOSED SESSION - WILL NOT BE HELD
JOINT MEETING—OPEN SESSION 7:30 PM
CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, Patricia Cortez, John C.
King, Mayor Pro Tem/Vice Chair Hector Delgado, and Mayor/Chair Victor Linares
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.
INVOCATION
Given by Covina Police Chaplain Steve Martinez.
APPROVAL OF AGENDA
PRESENTATIONS
A. American Red Cross Month Proclamation
B. SGVCARE
PUBLIC COMMENTS
This is the time and place for the general public to address the City Council/Agency/Authority on any item listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) or not listed on the agenda, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.
Each speaker is limited to a total of three (3) minutes, subject to the Mayor/Chairperson's discretion to amend time limits based on the anticipated length of the meeting.
COUNCIL/AGENCY/AUTHORITY COMMENTS
Council/Agency/Authority Members wishing to make any announcements of public interest or to request that specific items be added to future Council/Agency/Authority agendas may do so at this time.
CITY MANAGER COMMENTS
CONSENT CALENDAR
All matters listed under Consent Calendar are considered routine, and will be enacted by one motion. There will be no separate discussion on these items prior to the time the Council/Agency/Authority votes on them, unless a member of the Council/Agency/Authority requests a specific item be removed from the Consent Calendar for discussion.
CC 1. Minutes 5
Staff Recommendation:
Approve the Minutes of the February 3, 2026, Regular Meeting of the
City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.
CC 2. Payment of Demands 11
Staff Recommendation:
Approve Payment of Demands in the amount of $3,080,035.06.
CC 3. City of Covina Investment Report for Month Ended January 31, 2026
17 Staff Recommendation:
Receive and File.
CC 4. Award of Professional Services Agreement with Mark Thomas & Company, Inc., to Facilitate the Covina Town Center Pedestrian Bridge Feasibility Study and Outreach Program
33 Staff Recommendation:
Approve Professional Services Agreement Authorizing the Project.
CC 5. Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202 – Final Acceptance and Filing Notice of Completion
55 Staff Recommendation:
Accept the work performed by Perera Construction & Design, Inc.; and
1. Authorize the City Clerk to file a Notice of Completion for the Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202.
2. CC 6. Adoption of Ordinance 26-01 59
Staff Recommendation:
That the City Council adopt Ordinance 26-01, entitled “An Ordinance of the City Council of the City of Covina, California, Adding Chapter 8.80 Within Title 8 (Health and Safety) of the Covina Municipal Code Regulating the Sale and Distribution of Kratom Products”.
PUBLIC HEARINGS
PH 1. Introducing Ordinance 26-02, Approving Zone Change (ZCH) 25-3, Amending the City’s Official Zoning Map, and Making a Finding of Exemption Pursuant to CEQA Guidelines Section 15061(b)(3) 67 Staff Recommendation:
Waive full reading and introduce Ordinance 26-02 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zone Change (ZCH) 25-3, and amending the City’s Official Zoning Map 2558 parcels from the existing RD Residential Zone (Multifamily RD 2000 through RD 3000 and RD 3400 through RD 5000) to High Density Residential Zone (HDR) and Medium Density Residential (MDR), respectively, and the list of Assessor’s Parcel Numbers are attached hereto as Exhibit A, and making a finding of exemption pursuant to CEQA Guidelines Section 15061(b)(3)”.
CONTINUED BUSINESS
79
CB 1. Discussion and Direction Regarding the Proposed County of Los Angeles General Half-Cent Sales Tax Ballot Measure and Consideration of a Supplemental Local Transactions and Use Tax for the June 2, 2026 Ballot to Maintain Local Control of Revenues
Staff Recommendation:
That the City Council:
Review and discuss the County of Los Angeles’ proposed halfcent sales tax measure for the June 2, 2026 ballot;1.
Consider adopting Resolution CC 2026-16, calling for the placement of an Ordinance and measure before Covina voters at the June 2, 2026 General Municipal Election to establish a supplemental general transactions and use tax intended to maintain local control of the revenue and directly benefit the Covina community;
2. Consider adopting Resolution CC 2026-17, providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a City measure to be submitted at the June 2, 2026 General Municipal Election;
3. Consider adoption Resolution CC 2026-18, requesting the Board of Supervisors of the County of Los Angeles to consolidate a General Municipal Election to be held on June 2, 2026 with the Statewide General Election to be held on that date pursuant to Section 10403 of the Elections Code.
4. Authorize any necessary changes to the proposed Ordinance and Resolutions to ensure compliance with edits required by the County of Los Angeles Registrar of Voters and the California Department of Tax and Fee Administration (“CDTFA”).
5. Designate members of the City Council that may be interested in drafting and signing the ballot argument in support of the local measure.
6. ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, March 17, 2026, at 6:30 p.m. for closed session and at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.
1 CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT
AGENCY/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING
AUTHORITY JOINT MEETING
MINUTES
February 3, 2026, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember Patricia Cortez
Councilmember John C. King
Mayor Pro Tem/Vice-Chair Hector Delgado
Mayor/Chair Victor Linares
Staff Present: City Clerk Drew Aleman (Elected Member)
City Treasurer Neil Polzin (Elected Member)
City Manager Chris Marcarello
Assistant City Attorney Zach Heinselman
Police Chief Ric Walczak
Assistant City Manager Angel Carrillo
Community Development Director/Deputy City Manager Brian Lee Interim Parks & Recreation/Library Services Director Krystal Smith Public Works Director Rafael M. Fajardo
Finance Director Theresa Franke
Chief Deputy City Clerk Fabian Velez
_____________________________________________________________________
2 JOINT MEETING—CLOSED SESSION 6:30 PM
CALL TO ORDER
Mayor Pro Tem Delgado called the Council/Agency/Authority meeting to order at 6:38 p.m. with Councilmember Cortez, Councilmember King, and Mayor Pro Tem Delgado present.
PUBLIC COMMENTS - CLOSED SESSION
There were no public comments.
CLOSED SESSION
The City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to closed session for the following:
A. Government Code § 54956.9(d)(1) – CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Case Name: Aquiles Quevado Villanueva v. City of Covina, et al.
LASC Case No.: 24PSCV01579
B. Government Code § 54956.9(d)(1) – CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Covina Responsible and Compliant Retail, LLC v. City of Covina, et al.
C. Government Code § 54957.6 – CONFERENCE WITH LABOR
NEGOTIATORS
Agency Designated Representative:
Christopher Marcarello, City Manager; Joanna Espinosa, Human Resources Manager
Update on ongoing negotiations with the various Employee Organizations:
American Federation of State, County and Municipal Employees (AFSCME); Police Association of Covina (PAC); Police Management Group (PMG); and Police Supervisors of Covina (PSC), and discussions with Unrepresented Employees: Mid-Management, Supervisory and Professional, and Confidential and Technical Employees
D. Government Code § 54956.9(d)(4) – CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION
Initiation of Litigation: One (1) potential case.
RECESS
Mayor Pro Tem Delgado recessed the Council to Closed Session at 6:39 p.m.
3 JOINT MEETING—OPEN SESSION 7:30 PM
RECONVENE AND CALL TO ORDER
Mayor Linares called the Council/Agency/Authority meeting to order at 7:35 p.m. with all Councilmembers present.
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Councilmember King.
INVOCATION
Given by Rajan Zed, President of the Universal Society of Hinduism.
APPROVAL OF AGENDA
Motion made by: Councilmember King
Seconded by: Mayor Pro Tem Delgado
Approve the agenda as presented.
Approved (5 to 0)
PRESENTATIONS
A. Covina Chamber Update
The presentation was not held.
B. Black History Month Proclamation
Councilmember Allen provided a brief history on the establishment of Black History Month and presented a Proclamation declaring February as Black History Month in the City of Covina to Library Board of Trustees President Denaee Amaya, Library Board of Trustees member Diana Mullens, Interim Parks & Recreation/Library Services Director Smith, and Library Manager Petra Morris.
Library Board of Trustees President Amaya thanked the City Council for the proclamation and invited the community to events hosted by the Library to commemorate Black History month.
Interim Parks & Recreation/Library Services Director Smith introduced newly-hired Library Manager Morris.
CLOSED SESSION REPORT
Assistant City Attorney Heinselman announced that direction was given to staff and no reportable action was taken.
4 PUBLIC COMMENTS
Neil Polzin thanked the City Council for the Black History Month Proclamation, raised concerns regarding a potential conflict of interest involving the Mayor and a previouslyawarded lease agreement, and called on the City Clerk to conduct a fraud investigation.
Dora Gomez thanked the City Council for their support in working with Project 29:11 and provided a recap on the organization's Thanksgiving and Christmas giveaways.
Virginia Hayes expressed dissatisfaction with the cannabis dispensary located on Rowland Ave., Better Daze, and highlighted concerns with the business.
Ralph Beltran followed up on public comments he previously provided regarding the Quantum Financial System and his experiences after the presentation.
COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen thanked Ms. Gomez and the volunteers of Project 29:11 for their work in providing for the community, welcomed Library Manager Morris, and thanked the Covina Police Department for inviting Los Angeles County District Attorney Nathan Hochman to speak and highlighted his support for the Police Department.
Councilmember King took the opportunity to provide kind words and honor recently deceased Bob Ihsen, former teacher and member of the Covina Historical Society.
Councilmember Cortez requested that staff examine any possible measures to address the concerns received regarding speeding cars near school sites.
Mayor Linares informed Ms. Hayes that City staff will contact her regarding her comments and invited the community to participate in the Parks & Recreation's The Big Game 5k run/walk taking place Saturday February 7, 2026.
Mayor Pro Tem Delgado had no comments.
CITY MANAGER COMMENTS
City Manager Marcarello informed the City Council of a newly proposed half-cent sales tax measure from the County of Los Angeles to appear on the June 2, 2026, ballot and provided brief information on the item.
Mayor Linares called forward Alexa Sanchez, Field Representative for Assemblymember Blanca Rubio, who introduced herself to the community.
CONSENT CALENDAR
CC 1. Minutes
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve the Minutes of the December 16, 2025, Regular Meeting of the City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Housing Authority.
Approved (5 to 0)
5 CC 2. Payment of Demands
Motion made by: Councilmember King
Seconded by: Councilmember Allen
Approve Payment of Demands in the amount of $2,282,693.10.
Approved (5 to 0)
CC 3. City of Covina Investment Report for Month Ended December 31, 2025 Motion made by: Councilmember King
Seconded by: Councilmember Allen
Receive and File.
Approved (5 to 0)
ADJOURNMENT
At 8:12 p.m., the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority adjourned to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, February 17, 2026, at 6:30 p.m., for closed session and 7:30 p.m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. _______________________________
Fabian Velez, Chief Deputy City Clerk
____________________________
Victor Linares, Mayor/Chair
CITY OF COVINA AND
SUCCESSOR AGENCY TO THE
COVINA REDEVELOPMENT AGENCY
AGENDA ITEM REPORT
ITEM NO. CC 2
Meeting: March 3, 2026
Title: Payment of Demands
Presented by: Theresa Franke, Director of Finance
Recommendation: Approve Payment of Demands in the amount of $3,080,035.06 EXECUTIVE SUMMARY:
Attached is a list of warrants and demands which are being presented for approval and are summarized as follows:
Accounts Payable Warrants February 6, 2026 – February 19, 2026 CITY checks/EFTs $ 1,876,563.35
CITY payroll $ 1,167,814.13
CITY voids $ (3,369.27)
Worker’s Comp $ 39,026.85
$ 3,080,035.06
SACRA checks/EFTs $ 0.00
SACRA payroll $ 0.00
$ 0.00
TOTAL checks/EFTs $ 3,080,035.06
DISCUSSION:
The attached reports have been reviewed by the Director of Finance.
FISCAL IMPACT:
Sufficient funding is available and the related costs are included in the Fiscal Year 25/26 budget.
Respectfully submitted,
CITY OF COVINA
Check Register
Feb 6, 2026 - Feb 19, 2026
Check # Check Date Vendor Name Amount
6078 02/12/2026 4003 MidAmerica 2,598.58
6079 02/03/2026 1364 HOME DEPOT CREDIT SERVICES 6,686.61 21073 02/12/2026 788 COVINA, CITY OF 52,006.21 *
21074 02/12/2026 789 COVINA-FSA, CITY OF 1,920.33
21075 02/12/2026 2033 NATIONWIDE RETIREMENT SOLUTIONS 33,277.52 21076 02/12/2026 788 COVINA, CITY OF 95.71 *
21077 02/12/2026 2033 NATIONWIDE RETIREMENT SOLUTIONS 7,875.00 21078 02/12/2026 487 CalPERS 109,486.75
21079 02/12/2026 487 CalPERS 7,328.26
subtotal EFT/wires/direct deposits $221,274.97
Internal transfers - workers comp allocation - no net cash effect (51,910.50) * subtotal EFT/wires/direct deposits less Internal Transfers $169,364.47 130204 02/11/2026 32 ACE-1 AUTO SERVICE 80.00
130205 02/11/2026 84 AIRGAS-WEST 802.29
130206 02/11/2026 84 AIRGAS NATIONAL CARBONATION 162.51 130207 02/11/2026 113 ALL CITY MANAGEMENT SVC 14,476.32 130208 02/11/2026 219 AT&T 425.10
130209 02/11/2026 239 AUTOZONE INC 246.46
130210 02/11/2026 568 CAT SPECIALTIES INC 8,261.76
130211 02/11/2026 572 CATHOLIC CHARITIES OF LOS ANGELES 248.00 130212 02/11/2026 649 CINTAS CORP #693 440.28
130213 02/11/2026 653 CITRUS AUTO UPHOLSTERY 154.20
130214 02/11/2026 767 COVINA DOWNTOWN ASSOCIATION 4,813.00 130215 02/11/2026 783 CITY OF COVINA WATER 132.36
130216 02/11/2026 970 EDISON CO 76,367.97
130217 02/11/2026 1075 WEX BANK 45.00
130218 02/11/2026 1156 THE GAS COMPANY 2,040.87
130219 02/11/2026 1235 GRAINGER 874.73
130220 02/11/2026 1361 HOLLIDAY ROCK CO INC 537.68
130221 02/11/2026 1429 INLAND EMPIRE STAGES 2,466.75
130222 02/11/2026 1445 INTERNATIONAL ASSOCIATION OF CHIEFS OF POLICE 220.00 130223 02/11/2026 1531 JW LOCK CO INC 157.46
130224 02/11/2026 1615 REGIONAL TAP SERVICE CENTER 20.00 130225 02/11/2026 1754 LOWE'S COMPANIES INC 300.80
130226 02/11/2026 1933 MISSION LINEN SUPPLY 26.72
130227 02/11/2026 2027 NAPA AUTO PARTS 917.73
130228 02/11/2026 2091 O REILLY AUTO PARTS 1,303.35
130229 02/11/2026 2101 OCLC 148.93
130230 02/11/2026 2163 PACIFIC PARKING SYS INC 335.55
130231 02/11/2026 2204 PASADENA, CITY OF 76,969.00
130232 02/11/2026 2275 POIRIER, ROBERT 131.25
130233 02/11/2026 2329 PUENTE READY MIX INC 1,095.06
130234 02/11/2026 2345 QUILL 241.22
130235 02/11/2026 2407 REGIONAL TAP SERVICE CENTER 261.10 130236 02/11/2026 2415 REPUBLIC MASTER CHEFS 422.83
130237 02/11/2026 2426 REYNOLDS MOTOR CORP. 37.95
130238 02/11/2026 2444 RIO HONDO COLLEGE 372.00
130239 02/11/2026 2584 SCLLN 150.00
130240 02/11/2026 2676 SMART AND FINAL IRIS CORP 354.40 130241 02/11/2026 2711 SOUTHEAST CONSTRUCTION PRODUCTS - COVINA 264.43 130242 02/11/2026 2736 STAPLES BUSINESS ADVANTAGE 312.22 Attachment A Page 1 of 4
CITY OF COVINA
Check Register
Feb 6, 2026 - Feb 19, 2026
Check # Check Date Vendor Name Amount
130243 02/11/2026 2752 STEPHEN DORECK EQUIPMENT RENTALS INC 266,840.75 130244 02/11/2026 2755 STETSON ENGINEERS INC 3,263.00
130245 02/11/2026 2855 CHARTER COMMUNICATIONS 147.05
130246 02/11/2026 2926 TYLER TECHNOLOGIES INC. 55,146.55 130247 02/11/2026 2995 VENTEK INTERNATIONAL 495.00
130248 02/11/2026 3023 VULCAN MATERIALS COMPANY 3,037.63 130249 02/11/2026 3052 WATERLINE TECHNOLOGIES INC 561.34 130250 02/11/2026 3070 WEST COAST ARBORISTS INC 1,690.15 130251 02/11/2026 3082 WESTERN WATER WORKS SUPPLY 6,957.11 130252 02/11/2026 3729 SUNBELT RENTALS INC 357.00
130253 02/11/2026 3749 JCL TRAFFIC SERVICES 4,997.36
130254 02/11/2026 3988 LANDSCAPE WAREHOUSE III 27.29
130255 02/11/2026 4201 OFFICE TEAM - A ROBERT HALF COMPANY 3,808.60 130256 02/11/2026 4225 CORELOGIC SOLUTIONS, LLC 245.86
130257 02/11/2026 4246 FERGUSON ENTERPRISES 14,119.99
130258 02/11/2026 4350 RKA Consulting Group 7,972.50
130259 02/11/2026 4455 FRONTIER 5,218.21
130260 02/11/2026 4571 POWER SECURITY GROUP INC 11,882.00 130261 02/11/2026 4582 USABLUEBOOK 342.48
130262 02/11/2026 4676 Hill Brothers Chemical Company 1,696.18 130263 02/11/2026 4704 S & J Supply Company, Inc. 5,804.34 130264 02/11/2026 4713 Fisher Integrated, Inc. 1,200.00 130265 02/11/2026 4764 UniFirst Corporation 676.37
130266 02/11/2026 4766 HASA, INC. 1,075.93
130267 02/11/2026 4814 PTM General Engineering Services, Inc. 44,578.61 130268 02/11/2026 4817 Weck Analytical Environmental Services, Inc. 195.00 130269 02/11/2026 4835 ABBA TERMITE & PEST CONTROL, INC 250.00 130270 02/11/2026 4893 DXP ENTERPRISES, INC 2,076.14
130271 02/11/2026 4928 Springstead & Associates, Inc. 4,000.00 130272 02/11/2026 5139 Crown Castle Fiber LLC 925.00
130273 02/11/2026 5291 AMAZON CAPITAL SERVICES, INC 573.02 130274 02/11/2026 5371 LAUGH FACTORY COVINA LLC 22,500.00 130275 02/11/2026 5521 COMPRESSOR DESIGN AND SERVICES INC 1,425.00 130276 02/11/2026 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 1,240.00 130277 02/11/2026 5568 PERERA CONSTRUCTION & DESIGN, INC. 583,188.17 130278 02/11/2026 5655 COVINA VALLEY WATER COMPANY 232,014.32 130279 02/11/2026 5706 RAPID FIRE SAFETY & SECURITY LLC 100.00 130280 02/11/2026 5743 GARDA CL WEST, INC. LOCKBOX 233209 373.58 130281 02/11/2026 5765 MASTER BLINDS INC 6,066.62
130282 02/11/2026 5768 OMNI CONCEPTS INC 639.00
130283 02/11/2026 5771 IMMIGRATION RESOURCE CENTER OF SAN GABRIEL VALLEY 3,070.00 130284 02/11/2026 99999 ALEXANDER MARTINEZ 30.95
130285 02/11/2026 99999 ANALI SZEWCZYK 341.77
130286 02/11/2026 99999 CTD PROPERTIES LLC 57.67
130287 02/11/2026 99999 DEREK GONZALES 149.27
130288 02/11/2026 99999 GILL WANG 61.64
130289 02/11/2026 99999 HARRIS PENG 64.46
130290 02/11/2026 99999 HEINRICH SIAUW 45.56
130291 02/11/2026 99999 JO JO GIN 53.98
130292 02/11/2026 99999 JOHN TOVAR 59.03
130293 02/11/2026 99999 JON GRIEGO 346.47
Attachment A Page 2 of 4
CITY OF COVINA
Check Register
Feb 6, 2026 - Feb 19, 2026
Check # Check Date Vendor Name Amount
130294 02/11/2026 99999 KEYMAX GROUP 70.11
130295 02/11/2026 99999 MARLENE MARTINEZ 35.81
130296 02/11/2026 99999 MEEGHAN TIRTASAPUTRA 56.98
130297 02/11/2026 99999 MONIQUE AVILA 61.41
130298 02/11/2026 99999 NORMAN AVILES 35.73
130299 02/11/2026 99999 PEDRO REVELES 24.66
130300 02/11/2026 99999 RAMON MARQUEZ 310.04
130301 02/11/2026 99999 ROBERTA CORTEZ 652.62
130302 02/11/2026 99999 SAU KUEN CHENG 47.92
130303 02/11/2026 99999 YSOBEL OWEN 53.04
130304 02/12/2026 5404 VALLEY ALARM 150.00
130305 02/12/2026 5771 IMMIGRATION RESOURCE CENTER OF SAN GABRIEL VALLEY 3,070.00 130306 02/12/2026 99999 DEREK GONZALES 149.27
130307 02/12/2026 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 5,429.53 130308 02/12/2026 69 AFSCME District Council 36 762.75
130309 02/12/2026 775 COVINA POLICE ASSOCIATION 3,050.00 130310 02/12/2026 878 DELTA DENTAL OF CALIFORNIA 9,517.56 130311 02/12/2026 3795 PRE-PAID LEGAL SERVICES, INC 158.97 130312 02/12/2026 3846 CLEA 1,136.00
130313 02/12/2026 4255 RELIASTAR LIFE INSURANCE COMPANY 8,808.98 130314 02/12/2026 4710 Fidelity Security Life Insurance Company 1,035.23 130315 02/18/2026 219 AT&T 60.80
130316 02/18/2026 219 AT&T 68.09
130317 02/18/2026 221 AT&T MOBILITY 4.64
130318 02/18/2026 477 EMPLOYMENT DEVELOPMENT DEPT 688.00 130319 02/18/2026 749 BOHL PH.D., NANCY K. 1,135.00
130320 02/18/2026 783 CITY OF COVINA WATER 1,272.94
130321 02/18/2026 796 CPRS DISTRICT 13 100.00
130322 02/18/2026 798 CRAFCO INC 3,580.20
130323 02/18/2026 849 DAPEER ROSENBLIT & LITVAK LLP 1,418.72 130324 02/18/2026 878 DELTA DENTAL OF CALIFORNIA 244.04 130325 02/18/2026 970 EDISON CO 73.46
130326 02/18/2026 1198 GLOBALSTAR LLC 208.35
130327 02/18/2026 1204 GOLDEN STATE WATER COMPANY 777.37 130328 02/18/2026 1241 GRAND PRINTING 146.81
130329 02/18/2026 1792 MANNING & KASS 1,224.00
130330 02/18/2026 1933 MISSION LINEN SUPPLY 26.72
130331 02/18/2026 2415 REPUBLIC MASTER CHEFS 451.82
130332 02/18/2026 2506 RYDIN DECAL 592.19
130333 02/18/2026 2587 SCPLRC MEMBERSHIP 400.00
130334 02/18/2026 2736 STAPLES BUSINESS ADVANTAGE 68.44 130335 02/18/2026 2954 URBAN GRAFFITI ENTERPRISES INC 17,695.36 130336 02/18/2026 3001 VERIZON WIRELESS 2,075.78
130337 02/18/2026 3004 VICTORY EXTERMINATING INC 310.00 130338 02/18/2026 3070 WEST COAST ARBORISTS INC 1,150.00 130339 02/18/2026 3701 DEPARTMENT OF JUSTICE 228.00
130340 02/18/2026 3988 LANDSCAPE WAREHOUSE III 657.56
130341 02/18/2026 4065 VERIZON WIRELESS 1,311.00
130342 02/18/2026 4255 RELIASTAR LIFE INSURANCE COMPANY 13.68 130343 02/18/2026 4279 BOSS JANITORIAL SERVICES 10,636.65 130344 02/18/2026 4455 FRONTIER 510.33
Attachment A Page 3 of 4
CITY OF COVINA
Check Register
Feb 6, 2026 - Feb 19, 2026
Check # Check Date Vendor Name Amount
130345 02/18/2026 4710 Fidelity Security Life Insurance Company 17.24 130346 02/18/2026 4805 Fuel Equipment Services, Inc. 648.85 130347 02/18/2026 4854 CEJ Engineers, Inc. 14,220.00
130348 02/18/2026 4863 La Verne Power Equipment 1,613.15 130349 02/18/2026 4925 Humane Society of Pomona Valley, Inc. 29,838.67 130350 02/18/2026 4965 Environment Planning Development Solutions, Inc. 31,952.00 130351 02/18/2026 4977 Enterprise FM Trust 4,602.62
130352 02/18/2026 5099 CliftonLarsonAllen LLP 3,780.00
130353 02/18/2026 5137 MasterCorp Commercial Services LLC 9,971.22 130354 02/18/2026 5138 Ricoh USA, Inc. 300.31
130355 02/18/2026 5291 AMAZON CAPITAL SERVICES, INC 166.20 130356 02/18/2026 5404 VALLEY ALARM 150.00
130357 02/18/2026 5430 THE AMERGROUP INC 895.01
130358 02/18/2026 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 21,194.73 130359 02/18/2026 5480 INVESTIGATIVE RESOURES INC 1,077.80 130360 02/18/2026 5490 ROSS-CAMPBELL INC. 2,000.00
130361 02/18/2026 5580 ROLLINS, INC 147.00
130362 02/18/2026 5592 INTELLISTREETS, INC 1,745.00
130363 02/18/2026 5629 MINUTEMAN PRESS COVINA 717.15
130364 02/18/2026 5743 GARDA CL WEST, INC. LOCKBOX 233209 26.00 130365 02/18/2026 5756 U.S. ELECTRICAL SERVICES, INC 341.18 130366 02/18/2026 5770 DONNOE & ASSOCIATES, INC 385.00
130367 02/18/2026 5775 BARRY M. PLOTKIN 500.00
130368 02/18/2026 99999 ALEX SHENG 56.46
130369 02/18/2026 99999 CARLOS SALAZAR 63.58
130370 02/18/2026 99999 JACK INMAN 56.39
130371 02/18/2026 99999 JACQUELINE HEREDIA 61.48
130372 02/18/2026 99999 KIM PANG 18.36
130373 02/18/2026 99999 MONIQUE AVILA 235.94
130374 02/18/2026 99999 PENSAR BIG INC 65.75
subtotal checks $ 1,707,198.88
129470 12/11/2025 5404 VALLEY ALARM ($150.00)
130283 02/11/2026 5771 IMMIGRATION RESOURCE CENTER OF SAN GABRIEL VALLEY ($3,070.00) 130287 02/11/2026 99999 DEREK GONZALES ($149.27)
subtotal voids ($3,369.27)
payroll (02/12/26) $ 1,167,814.13
workers' compensation $ 39,026.85
TOTAL checks/EFTs $3,080,035.06
Attachment A Page 4 of 4
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: March 3, 2026
Title: City of Covina Investment Report for Month Ended January 31, 2026 Presented by: Theresa Franke, Director of Finance
Charles Russom, Sr. Management Analyst
Recommendation: Receive and File.
EXECUTIVE SUMMARY:
Pursuant to Government Code Section 53600 et seq. and Section 4.0 of the City of Covina’s Investment Policy, a monthly investment report must be provided to the City Council and City Manager, containing detailed information of all securities, investments and monies of the City.
DISCUSSION:
The attached report for the City and Successor Agency reflects the portfolio balances for the month ended January 31, 2026. The report is in conformity with the City’s Investment Policy as well as Government Code 53601. In accordance with the City's Investment Policy, the City Council authorizes staff to continue investing the City's idle funds in similar securities as those presented in these reports attached hereto. There is sufficient investment liquidity to meet the required reserve limits of the City’s operations.
FISCAL IMPACT:
None to receive and file.
Respectfully submitted,
CASH PER BANK AND INVESTMENT BALANCE 12/31/2025 $97,435,398.11 RECEIPTS 1/1/26-1/31/26 20,930,457.72
DISBURSEMENTS 1/1/26-1/31/26 (18,601,463.19)
CASH PER BANK AND INVESTMENT BALANCE 1/31/2026 $99,764,392.64
ANALYSIS OF CASH PER BANK AND INVESTMENT BALANCE - BOOK VALUE INVESTMENT PORTFOLIO Attachment A-2 $56,749,234.81
LOCAL AGENCY INVESTMENT FUND Attachment A-4 34,069,194.74 TOTAL PUBLIC INVESTMENTS 90,818,429.55
CHECKING / PETTY / USBANK CASH BALANCES / MONEY MARKET 8,945,963.09 CASH PER BANK AND INVESTMENT BALANCE 1/31/2026 99,764,392.64 CASH HELD BY TRUSTEES 3,976,375.36
TOTAL CASH PER BANK AND INVESTMENT / TRUSTEE CASH BALANCE 1/31/2026 $103,740,768.00
CITY OF COVINA INVESTMENT REPORT
FOR THE MONTH ENDED JANUARY 31, 2026
The purpose of this report is to provide readers with the overall cash position of the City. There is sufficient investment liquidity to meet the required reserve limits of the City's operations. In addition, the City has adequate resources and revenues to meet its pooled expenditure requirements for the next six months.
BOOK ACQUISITION MATURITY MARKET
TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
City of Covina:
Drawer & Petty Cash N/A $10,280.12 N/A N/A $10,280.12
General - Checking Account BMO 2,537,509.94 N/A Demand 2,537,509.94 Public Agency Saving - Parking Fines BMO 113,150.21 N/A Demand 113,150.21 Utility Billing Account BMO 246,734.15 N/A Demand 246,734.15 Workers' Compensation - Checking Account BMO 143,751.31 N/A Demand 143,751.31 Payroll - Checking Account BMO 405,725.15 N/A Demand 405,725.15 Money Market BMO 5,351,943.37 N/A Demand 5,351,943.37
AFLAC Flexible Spending Account BMO 18,615.69 N/A Demand 18,615.69 USBank Cash Per GL Various 118,253.15 Various Various 118,253.15 USBank Investment Portfolio Various 56,749,234.81 Various Various 56,904,143.29 Local Agency Investment Fund State of California 34,069,194.74 N/A Demand 34,069,194.74 Subtotal (A) $99,764,392.64 $99,919,301.12
Cash Held With 3rd Party Administrator:
TRIP 2017A Covina Wilmington Trust $664.65 N/A Demand $664.65 LA County Loan Agreement U.S. Bank 1,500,038.52 N/A Demand 1,500,038.52 Other Post-Employment Benefits Charles Schwab 1,835,158.00 N/A Demand 1,835,158.00 2021 Taxable Pension Obligation Bonds U.S. Bank 640,511.60 N/A Demand 640,511.60 2019 Wastewater Refunding Bonds U.S. Bank 2.59 N/A Demand 2.59 Subtotal (B) $3,976,375.36 $3,976,375.36
TOTAL (A+B) $103,740,768.00 $103,895,676.48
CITY OF COVINA
CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED JANUARY 31, 2026
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.
Attachment A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
January 2026
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon Yield CUSIP Maturity
US Government Issues:
F H L M C M T N 12/11/2025 98.9860 1,000,000 $ 999,750.00 4.0000 4.04% 3134HCEY1 12/9/2030 FEDL Home Loan MTG CorpPool #WN2479 12/04/23 101.0990 1,000,000 993,437.50 4.9400 4.89% 3132XGXH4 5/1/2028 FEDL Home Loan MTG CorpPool#WN2534 02/16/24 101.4960 1,000,000 997,187.50 4.9000 4.83% 3132XGY83 12/1/2028 FEDL Home Loan MTG CorpPOOL#WN2537 04/16/24 101.4960 1,000,000 989,687.50 4.9000 4.83% 3132XGZB5 12/1/2028 FEDL Home Loan MTG CorpPOOL#WN2559 4/10/2024 100.9320 1,000,000 979,062.50 4.6000 4.56% 3132XGZZ2 1/1/2029 F N M A 8/5/2025 100.0060 1,000,000 998,000.00 4.2500 4.25% 3136GALS6 8/6/2030 FEDL NATL MTG ASSN Note 10/25/24 100.1790 1,000,000 1,000,000.00 4.4000 4.39% 3135GAXR7 8/3/2029 FEDL NATL MTG ASSNPool#BSB8718 Balloon 03/05/24 100.2440 1,000,000 986,562.50 4.3800 4.37% 3140LKVL4 6/1/2028 FEDL Agric MTG CorpMedium Term Note 06/30/22 98.0510 1,000,000 915,357.70 0.9700 0.96% 31422XGQ9 10/26/2026 Federal Farm Credit Bks 10/20/25 88.9650 1,000,000 896,850.00 1.2300 1.38% 3133EL2C7 7/29/2030 FEDL Farm Credit Bank Bond 02/02/22 98.1090 1,000,000 996,151.59 1.5000 1.53% 3133ENKV1 1/13/2027 Federal Farm Credit Bank Bond 04/07/22 99.5970 1,000,000 1,007,278.29 3.1500 3.16% 3133EJDV8 3/22/2027 Federal Farm Credit Bks 11/11/2025 99.9240 1,000,000 1,000,000.00 3.9100 3.91% 3133ETT23 5/12/2028 Federal Farm Credit Bank Bond 6/10/2025 100.6120 1,000,000 1,009,342.56 4.1064 4.97% 3133EPZY4 7/30/2026 FEDL Home Loan Bank Bond 04/07/22 99.6040 1,000,000 1,003,611.45 3.0000 3.01% 3130A2VE3 9/11/2026 Federal Home Loan Bks 10/23/2025 99.1340 2,000,000 1,996,200.00 3.6500 3.68% 3130B8CC4 10/21/2030 Federal Home Loan Bks 1/16/2026 100.1210 1,000,000 1,000,000.00 3.7800 3.77% 3130B93L2 1/9/2031 FEDL Home Loan Bank Bond 09/09/24 99.9510 2,000,000 2,000,000.00 4.0000 4.00% 3130B2NS0 9/4/2029 FEDL Home Loan Bank Bond 10/25/24 99.5550 1,000,000 990,500.00 4.0000 4.02% 3130B32X0 10/2/2029 Federal Home Loan Bks 1/28/2026 99.9470 1,000,000 1,000,000.00 4.0700 4.07% 3130B9B66 1/28/2031 FEDL Home Loan Bank Bond 6/16/2025 100.6230 1,000,000 1,000,000.00 4.1251 4.10% 3130B6SF4 6/14/2030 FEDL Home Loan Bks 8/26/2025 99.9910 1,000,000 1,000,000.00 4.2000 4.20% 3130B7LS1 8/18/2028 FEDL Home Loan Bank Bond 09/04/24 99.9060 980,000 980,000.00 4.2000 4.20% 3130B2GZ2 8/13/2029 FEDL Home Loan Bank Bond 11/05/24 100.4420 1,000,000 1,000,000.00 4.5000 4.48% 3130B3M67 11/13/2029 FEDL Home Loan Bank Bond 02/18/25 99.9240 1,000,000 1,000,000.00 4.6000 4.60% 3130B4YQ8 2/25/2028 FEDL Home Loan Bank Bond 12./23/2024 100.1020 1,000,000 1,001,962.88 4.6840 4.79% 3130B0EE5 3/6/2028 U S Treasury Note 11/13/2025 98.7070 1,000,000 987,500.00 3.2500 3.29% 91282CEV9 6/30/2029 U S Treasury Note 12/24/2025 98.7110 1,000,000 991,125.00 3.6250 3.67% 91282CPN5 11/30/1930 U S Treasury Note 11/4/2025 99.3670 1,000,000 997,335.93 3.7500 3.77% 91282CNX5 8/31/2030 U S Treasury Note 8/18/2025 100.5000 1,000,000 1,002,336.00 3.8750 3.86% 91282CMZ1 4/30/2030 U S Treasury Note 1/5/2026 100.4610 1,000,000 1,009,093.75 3.8750 3.86% 91282CNN7 7/31/2030 Total US Government Issues: 32,980,000 $ 32,728,332.65
Attachment A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
January 2026
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon Yield CUSIP Maturity
Corporate Issues:
All In Fed Cr UnDaleville AI 12/31/2025 99.9610 245,000 $ 245,000.00 3.7500 3.75% 01664MBC9 6/30/2027 All in FED CR UnionDaleville AL SHS CTF 12/07/22 100.5950 245,000 245,000.00 4.4500 4.42% 01664MAA4 12/21/2026 Alliant Credit UnionChicago IL SHS CTF 12/20/22 101.9460 245,000 245,000.00 4.8500 4.76% 01882MAA0 12/30/2027 Ally Bank -
Midvale UT CD 04/27/22 99.7420 245,000 245,000.00 2.8500 2.86% 02007GQQ9 5/5/2026 Altaone FED CR UN -
Ridgecrest CA SHS CTF 8/27/2024 99.9480 245,000 245,000.00 3.8500 3.85% 02157RAC1 9/13/2029 American Express Natl BKSalt Lake City UT CD 4/28/2025 100.7490 245,000 245,000.00 4.1000 4.07% 02589AHE5 4/30/2030 Austin Telco Fed CR UN- Austin
TX SHS CTF 11/14/22 101.0330 245,000 245,000.00 5.0500 5.00% 052392CC9 11/27/2026 Bankgloucester 1/8/2026 99.6050 245,000 245,000.00 3.5000 3.51% 06644RAN9 7/15/2027 Baxter CR UNVernon Hills IL SHS CTF 11/14/22 101.0160 245,000 245,000.00 5.0000 4.95% 07181JAV6 11/30/2026 Beal Bank -
Plano TX CD 03/01/22 98.1960 245,000 245,000.00 2.0500 2.09% 07371AZQ9 3/3/2027 Beal Bank -
Las Vegas NV CD 03/01/22 98.1960 245,000 245,000.00 2.0500 2.09% 07371CK81 3/3/2027 BMW Bank of North AmericaSalt Lake City UT CD 5/2/2025 100.5110 245,000 245,000.00 4.0000 3.98% 05612LER9 5/9/2029 BNY Mellon NAPittsburgh PA CD 6/12/2025 100.3740 245,000 245,000.00 4.0000 3.98% 05584CY59 6/18/2030 BOM BankNatchitoches LA CD 06/04/25 100.2000 245,000 245,000.00 4.4000 4.39% 09776DAP9 6/16/2028 California Cr Un Glendale Cali
CD 8/11/2025 100.2090 245,000 245,000.00 4.0000 3.99% 130162BQ2 2/22/2027 Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 98.7470 245,000 245,000.00 2.7000 2.73% 14042TFJ1 4/13/2027 Capital One NA -
Mclean VA CD 04/27/22 99.1180 245,000 245,000.00 3.0500 3.08% 14042RRA1 5/4/2027 Carter FEDL CR UNSpringhill LA SHS CTF 01/14/25 100.7570 245,000 245,000.00 4.2000 4.17% 14622LAW2 1/28/2028 Celtic BankSalt Lake City UT CD 6/4/2025 100.4510 245,000 245,000.00 4.0000 3.98% 15118RW45 6/12/2028 Cfg Cmnty Bk Lutherville Md CD 11/18/25 99.8820 245,000 243,902.16 4.0000 4.00% 12527CNN8 11/14/2030 City Natl Bk Los Angeles Calif 1/8/2026 99.7440 245,000 245,000.00 3.6500 3.66% 178180HD0 1/24/2028 Civic Fed Cr CD 8/7/2025 100.2630 245,000 245,000.00 3.9000 3.89% 178808AC5 12/22/2028 ClearPath FED CR UN -
Burbank CA SHS CTF 07/09/24 100.0830 245,000 245,000.00 5.4000 5.40% 18507MAD3 7/30/2029 Connexus Credit CD 7/23/2025 100.7200 245,000 245,000.00 4.1000 4.07% 20825WEB2 8/7/2028 Cornerstone BankFargo ND CD 05/01/23 103.0846 245,000 245,000.00 - 5.33% 219232CR4 5/10/2028 Covantage CUAntigo WI SHS CTF 5/14/2025 101.1760 245,000 245,000.00 4.0500 4.00% 22282XAL4 5/29/2029 Customers Bk Phoenixville Pa 1/15/2026 99.3180 245,000 245,000.00 3.7500 3.78% 23204HRD2 1/15/2031 CY Fair FCUHouston TX SHS CTF 06/26/23 100.2880 245,000 245,000.00 5.3000 5.28% 23248UAC1 7/14/2028 Discover BankGreenwood DE CD 05/20/22 99.2680 245,000 245,000.00 3.2000 3.22% 254673E36 5/24/2027 Dort Finl Cr Un Grand Blanc Mi
CD 9/22/2025 99.5090 247,000 247,000.00 3.6000 3.62% 25844MCE6 10/10/2028 EaglebankBethesda MD CD 04/02/25 100.5710 245,000 245,000.00 4.0500 4.03% 27002YHQ2 4/16/2030 Farmers & Merchants BKAshland NE CD 6/16/2025 100.1430 245,000 245,000.00 4.4000 4.39% 308914AC4 6/24/2030 First Bank of The LakeOsage Beach MO CD 10/31/24 100.0390 245,000 245,000.00 4.0000 4.00% 31925YBU5 4/30/2026 First Foundation Bank -
Irvine CA CD 06/05/24 101.0660 245,000 245,000.00 5.0625 4.95% 32026U5X0 12/14/2026
Attachment A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
January 2026
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon Yield CUSIP Maturity
First Gty Bk Damariscotta Me CD 11/6/2025 100.0290 245,000 $ 245,000.00 4.0500 4.05% 320437BD7 11/14/2030 First NATL BankDamariscotta ME CD 03/09/23 100.7720 245,000 245,000.00 5.0000 4.96% 32117BFR4 9/23/2026 First Premier BankSioux Falls SD CD 5/13/2025 100.3620 245,000 245,000.00 3.9500 3.89% 33610RWL3 5/21/2029 Freedom Northwest CR UN 12/23/2024 100.9370 245,000 245,000.00 4.1200 4.11% 356436AV7 12/31/2029 GESA CR UNRichland WA CD 07/19/23 100.7170 245,000 245,000.00 5.2500 5.21% 37424PAH7 7/31/2026 Global FED CR UNAnchorage AK SHS CTF 6/16/2025 100.9220 245,000 245,000.00 4.2000 4.16% 37892MAX2 6/30/2028 Global FED CR UN -
Anchorage AK SHS CTF 05/14/24 100.4040 245,000 245,000.00 5.0500 5.03% 37892MAP9 5/29/2026 Goldman Sachs Bank USA -
New York NY CD 04/27/22 99.1040 245,000 245,000.00 3.0500 3.08% 38149M6Y4 5/11/2027 Great Midwest Bk Brookfield Wi
CD 9/15/2025 98.8520 245,000 245,000.00 3.7500 3.79% 39083PDT6 9/19/2030 Greenstate Cr Un North Liberty
CD 9/16/2025 99.3520 245,000 245,000.00 3.7500 3.77% 39573LEU8 9/26/2030 Ideal Credit UnionWoodbury MN SHS CTF 12/07/22 101.2970 245,000 245,000.00 4.5000 4.44% 45157PAZ3 12/29/2027 Inspire FEDL CR UNBristol PA SHS CTF 06/29/23 100.5010 245,000 245,000.00 5.0000 4.97% 457731AQ0 6/30/2026 Institution For Svgs In Newbur
CD 10/20/2025 99.6000 245,000 245,000.00 3.6500 3.66% 45780PDH5 10/27/2028 Jeanne D Arc FCULowell MA CD 6/23/2025 100.4140 245,000 245,000.00 4.0000 3.98% 472207AL3 6/28/2030 JP Morgan Chase Bank NAColumbus OH CD 01/24/25 100.6770 245,000 245,000.00 4.7500 4.72% 46657VWH9 1/31/2030 KodabankDrayton ND CD 03/09/23 100.7690 245,000 245,000.00 5.0000 4.96% 50007DAC3 9/22/2026 Luana SVGS BankLuana IA CD 03/05/25 99.9860 245,000 245,000.00 3.9000 3.90% 549104G76 3/13/2030 Marine FEDL CR UNJacksonvill NC SHS CTF 08/27/24 100.0100 245,000 245,000.00 4.3500 4.35% 56824JBB9 2/27/2026 Medallion Bank -
Salt Lake City UT CD 03/01/22 98.1460 245,000 245,000.00 2.0500 2.09% 58404DNG2 3/8/2027 Merrick BankSouth Jordan UT CD 02/18/25 100.8870 245,000 245,000.00 4.2500 4.21% 59013K4U7 2/28/2028 Milestone BankSalt Lake City UT CD 4/28/2025 100.3230 245,000 245,000.00 3.9500 3.94% 59934MDC9 4/28/2028 Money One FCULargo MD SHS CTF 09/01/23 102.9790 245,000 245,000.00 5.0000 4.85% 60936TAL3 9/14/2028 Morgan Stanley Bank NASalt Lake City UT CD 05/16/22 99.3390 245,000 245,000.00 3.2500 3.27% 61690UJ68 5/19/2027 Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 99.3390 245,000 245,000.00 3.2500 3.27% 61768EJR5 5/19/2027 Mutual First Fed CD 7/23/2025 100.3190 245,000 245,000.00 4.0000 3.90% 62825MAB0 8/5/2027 Nelnet Bk Draper Utah 11/3/2025 98.4780 245,000 245,000.00 3.5500 3.60% 64034KCB5 11/5/2030 Numerica Credit Union-Spokane
VLY WA SHS CTF 07/12/23 103.0850 245,000 245,000.00 5.1000 4.95% 67054NBK8 7/31/2028 Oak View Bankshares CD 8/19/2025 100.0110 245,000 245,000.00 4.2500 4.25% 67134XBD6 9/5/2030 Oklahoma CD 8/26/2025 100.2730 245,000 245,000.00 3.9500 3.94% 67885MAC4 8/30/2027 One Commnity BankOregon WI CD 6/12/2025 100.4000 245,000 245,000.00 4.0000 3.98% 682325FT7 3/20/2028 Optum BankDraper UT CD 6/23/2025 100.4940 245,000 245,000.00 4.1500 4.13% 68405VDM8 6/30/2027 Pentagon Federal CR UN -
Tysons Corner VA 02/02/22 97.8800 245,000 245,000.00 1.7000 1.74% 70962LBE1 2/18/2027 Pima FEDL CR UNTucson AZ SHS CTF 08/02/23 100.8120 245,000 245,000.00 5.3000 5.26% 722000AC0 8/17/2026 Pinnace BankNashville TN CD 5/2/2025 100.2210 245,000 245,000.00 3.9500 3.94% 72345SLQ2 5/7/2027 Poppy BankSanta rosa CA CD 4/2/2025 100.0980 245,000 245,000.00 4.1000 4.10% 73319FDX4 4/8/2030
Attachment A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
January 2026
Issuer
Purchase
Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon Yield CUSIP Maturity
Ria Fed Cr Un CD 10/20/2025 98.6960 245,000 $ 245,000.00 3.6000 3.65% 749622BZ8 11/4/2030 Sallie Mae Bank -
Salt Lake City UT CD 02/16/22 98.3650 245,000 245,000.00 2.2000 2.24% 795451BH5 2/23/2027 San Francisco FEDL CR UNSan Francisco CA SHS 11/20/24 101.1930 245,000 245,000.00 4.2500 4.20% 79772FAL0 11/27/2028 Select Bk Fst Va CD CII C D 10/21/2025 99.9930 245,000 245,000.00 3.8500 3.85% 81618LAG2 10/31/2028 Signature Federal Cred U 08/16/23 100.8590 245,000 245,000.00 5.3000 5.36% 82671DAG2 8/28/2026 SKYLA FEDL CR UNCharlotte NC SHS CTF 5/21/2025 100.7940 245,000 245,000.00 4.1000 4.07% 83086XAE0 11/30/2028 Sound CR UNTacoma WA SHS CTF 5/19/2025 100.7710 245,000 245,000.00 4.1500 4.12% 83616HAH7 6/2/2028 Southpoint BankBirmingham AL CD 04/28/25 100.4400 245,000 245,000.00 4.0000 3.98% 84464PCC9 4/28/2028 State Bk India Chicago III 07/30/25 100.6120 245,000 245,000.00 4.0500 4.02% 85628AAT7 7/29/2030 State Bank of India -
New York NY CD 02/01/22 97.9810 245,000 245,000.00 1.7500 1.79% 856285G21 2/9/2027 Synchrony Bank -
Draper UT CD 04/07/22 98.7440 245,000 245,000.00 2.7000 2.73% 87165FK45 4/14/2027 Telco Plus CR UnLongview TX SHS CTF 02/03/25 100.8750 245,000 245,000.00 4.2500 4.21% 87921MAA2 2/18/2028 Texas Exchange Bank SSBCrowley TX CD 10/28/24 100.5760 245,000 245,000.00 4.0500 4.03% 88241TUA6 7/12/2028 Third fed Svgs Ln Assn Of CD 9/15/2025 99.3560 245,000 245,000.00 3.7500 3.77% 88413QHX9 9/19/2030 Toyota Finl Svgs BankHenderson NV CD 05/09/22 99.2790 245,000 245,000.00 3.2000 3.22% 89235MNH0 5/17/2027 Truliant FEDL CR UNWinston Salem NC SHS CTF 03/09/23 100.1590 245,000 245,000.00 5.1500 5.14% 89789AAH0 3/23/2026 Tucson FEDL CR UNTucson AZ CD 09/01/23 102.9610 245,000 245,000.00 5.0000 4.86% 898812AC6 9/8/2028 UBS Bank USASalt Lake City UT CD 03/05/25 100.7490 245,000 245,000.00 4.1000 4.07% 90355GUL8 3/12/2030 United Fidelity Bank FSBEvansville IN CD 09/16/24 100.0760 245,000 245,000.00 4.3500 4.35% 910286HZ9 3/27/2026 United Republic BankElkhorn NE CD 03/05/25 100.3150 245,000 245,000.00 4.0500 4.04% 909242BZ1 3/19/2027 University III Cmnty Cr Un Cha
CD 9/18/2025 99.7780 249,000 249,000.00 3.6500 3.66% 914359AQ7 9/24/2027 Utah First Fed Cr Un Salt Lake
CD 08/28/25 99.7780 249,000 249,000.00 3.8500 3.86% 91739JAW5 9/10/2030 Valley Natl BankPassaic NJ CD 02/27/25 100.9060 245,000 245,000.00 4.2500 4.21% 919853QC8 3/6/2028 Vantage West CR UNTucson AZ SHS CTF 09/04/24 100.3330 245,000 245,000.00 4.0000 3.99% 92213MAB7 9/13/2027 Vibrant Cr Un Moline II C D 10/21/2025 99.7590 245,000 245,000.00 3.6500 3.66% 92559TAT5 4/27/2028 Wells Fargo Bank Natl Assn 1/21/2026 99.8100 247,000 247,000.00 3.6500 3.66% 949764TQ7 7/26/2027 Western alliance Bk Phoenix Az 1/8/2026 99.7460 245,000 245,000.00 3.6000 3.61% 95763PA76 7/15/2027 Western State BankDevils Lake ND CD 03/05/25 100.3720 245,000 245,000.00 4.0000 3.98% 95960NLA3 3/25/2030 Workers FEDL Credit UNLittleton MA SHS CTF 08/27/24 100.3390 245,000 245,000.00 4.0000 3.99% 98138MCK4 8/30/2027 Total Corporate Issues: 24,022,000 $ 24,020,902.16
57,002,000 56,749,234.81
- $ 118,253.15
57,002,000 $ 56,867,487.96
US Bank Securities
US Bank Cash
US Bank Total Value of Portfolio
Qty Purch Date Maturity
Date of
Disposition
Share Price at
Purchase Date Net Trade Amount Cost Basis Value Market Value Accrued Interest Issuer CUSIP Held by 10,000 1/5/2026 7/31/2030 100.9094 $ 1,009,093.75 $ 1,009,093.75 $ 1,009,093.75 U S Treasury Note 91282CNN7 US Bank 2,450 1/15/2026 1/15/2031 100.0000 245,000.00 245,000.00 245,000.00 Customers Bk Phoenixville Pa 23204HRD2 US Bank 2,450 1/8/2026 7/15/2027 100.0000 245,000.00 245,000.00 245,000.00 Bankgloucester 06644RAN9 US Bank 2,450 1/8/2026 7/15/2027 100.0000 245,000.00 245,000.00 245,000.00 Western alliance Bk Phoenix Az 95763PA76 US Bank 10,000 1/16/2026 1/9/2031 100.0000 1,000,000.00 1,000,000.00 1,000,000.00 Federal Home Loan Bks 3130B93L2 US Bank 2,450 1/8/2026 1/24/2028 100.0000 245,000.00 245,000.00 245,000.00 City Natl Bk Los Angeles Calif 178180HD0 US Bank 2,470 1/21/2026 7/26/2027 100.0000 247,000.00 247,000.00 247,000.00 Wells Fargo Bank Natl Assn 949764TQ7 US Bank 10,000 1/28/2026 1/28/2031 100.0000 1,000,000.00 1,000,000.00 1,000,000.00 Federal Home Loan Bks 3130B9B66 US Bank Total $ 4,236,093.75 $ 4,236,093.75 $ 4,236,093.75 -
Qty Purch Date Maturity
Date of
Disposition
Share Price at
Sale / Maturity
Date Original Cost Value
Par Value at
Sale/Maturity
Gain / (Loss) on Sale
/ Redemption
Interest Earnings
Since Purchase Issuer CUSIP Held by
2,450 06/26/23 1/7/2026 1/7/2026 100.0000 $ 245,000.00 $ 245,000.00 $ - $ 31,323.13 Southwest Heritage CU- Odessa TX SHS CTF 84503PAF7 US Bank 10,000 11/19/24 11/19/2027 1/16/2026 100.0000 1,000,000.00 1,000,000.00 - 53,572.92 FEDL Home Loan Bank Bond 3130B3RN5 US Bank 2,450 7/2/2024 1/20/2026 1/20/2026 100.0000 245,000.00 245,000.00 - 18,458.90 Jovia FINL FEDL CR UN - Westbury NY CD 48115LAL8 US Bank 2,450 6/16/2025 6/25/2030 1/26/2026 100.0000 245,000.00 245,000.00 - 6,463.96 American Bank Commerce- Wolfforth TX CD 02432LAC1 US Bank $ 1,735,000.00 $ 1,735,000.00 $ - $ 109,818.91
Period Interest Revenue
Previous Month $110,283.00
Previous 12 mos. $2,310,073.02
CITY OF COVINA
INVESTMENT TRANSACTION SUMMARY
FOR THE MONTH ENDED JANUARY 31, 2026
Purchased Investments
Net Revenue Analysis - for Period Ending January 31, 2026 Sold/Matured Investments
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
February 11, 2026
LAIF Home
PMIA Average Monthly
Yields
CITY OF COVINA
CITY TREASURER
125 E. COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 98-19-219
January 2026 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
1/7/2026 1/7/2026 RW 1788791 1749434 BEI ZOU -2,000,000.00 1/15/2026 1/15/2026 QRD 1793228 N/A SYSTEM 299,085.77
1/21/2026 1/21/2026 RD 1793787 1754426 BEI ZOU 4,000,000.00 Account Summary
Total Deposit: 4,299,085.77 Beginning Balance: 31,770,108.97 Total Withdrawal: -2,000,000.00 Ending Balance: 34,069,194.74 1/1
Attachment A-4 City
Statement Total
Balance Percentage
Cash Balances $8,945,963 8.62%
Local Agency Investment Fund 34,069,195 32.84%
Treasury / Agency 32,728,333 31.55%
Certificate of Deposits 24,020,902 23.15%
Funds Held by Bond Trustees 3,976,375 3.83%
Total $103,740,768 100.00%
CITY OF COVINA
Cash & Investment Holdings by Type as of January 31, 2026 *Average Investment coupon rate: 3.88% (based on weighted average of Original Cost Value) Cash Balances, 8.62%
Local Agency Investment
Fund, 32.84%
Treasury / Agency, 31.55%
Certificate of Deposits,
23.15%
Funds Held by Bond
Trustees, 3.83%
HOLDINGS BY TYPE
Attachment A-5 City
CASH PER BANK AND INVESTMENT BALANCE 12/31/2025 $601,214.90 RECEIPTS 1/1/26-1/31/26 6,316.66
DISBURSEMENTS 1/1/26-1/31/26 -
CASH PER BANK AND INVESTMENT BALANCE 1/31/2026 $607,531.56
ANALYSIS OF CASH PER BANK AND INVESTMENT BALANCE
CHECKING ACCOUNT $3,817.64
LOCAL AGENCY INVESTMENT FUND Attachment A-6 603,713.92
AVAILABLE CASH PER BANK BALANCES $607,531.56
CASH HELD BY BOND TRUSTEES 0.00
TOTAL CASH PER BANK AND INVESTMENT / TRUSTEE CASH BALANCE 1/31/2026 $607,531.56 FOR THE MONTH ENDED JANUARY 31, 2026
SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY INVESTMENT REPORT Attachment A- Agency
BANK ACQUISITION MARKET
TYPE OF INVESTMENT ISSUER VALUE DATE DATE VALUE
Successor Agency to the Covina Redevelopment Agency:
Checking Account BMO $3,817.64 N/A Demand $3,817.64
Local Agency Investment Fund State of California 603,713.92 N/A Demand 603,713.92 Subtotal (A) $607,531.56 $607,531.56
Cash Held With 3rd Party Administrator:
(1) 2013 Series A Tax Allocation Bonds U.S. Bank* $0.00 N/A Demand $0.00 Fiscal Agent: U.S. Bank
(2) 2014 Series A Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank
(3) 2004 Series B Tax Allocation Bonds U.S. Bank* 0.00 N/A Demand 0.00 Fiscal Agent: U.S. Bank
Subtotal (B) $0.00 $0.00
TOTAL (A+B) $607,531.56 $607,531.56
* Formerly BNY Mellon
SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY
CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED JANUARY 31, 2026
The purpose of this schedule is to show the total cash and investments held by the Successor Agency to the Covina Redevelopment Agency by account.
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
February 11, 2026
LAIF Home
PMIA Average Monthly
Yields
S/A CITY OF COVINA FOR COVINA
REDEVELOPMENT AGENCY
FINANCE DIRECTOR
125 EAST COLLEGE STREET
COVINA, CA 91723-2199
Account Number: 65-19-007
January 2026 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number Authorized Caller Amount
1/15/2026 1/15/2026 QRD 1792303 N/A SYSTEM 6,316.66
Account Summary
Total Deposit: 6,316.66 Beginning Balance: 597,397.26
Total Withdrawal: 0.00 Ending Balance: 603,713.92
1/1
Attachment A-6 Agency
Quarter
Ending City Agency*
1/31/2024 $100,524,580 $623,663
1/31/2025 $98,265,973 $651,984
1/31/2026. $103,740,768 $607,532
CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY CASH AND INVESTMENTS THREE YEAR COMPARISON AS OF JANUARY 31, 2026 The purpose of this schedule is to show, for comparison purposes, the total cash and investment values for the last 3 years. *Successor Agency to Covina Redevelopment Agency
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
1/31/2024 1/31/2025 1/31/2026.
$100,524,580 $98,265,973
$103,740,768
$623,663 $651,984 $607,532
MONTH ENDING JAN. 31, 2026
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
Attachment A-7 City Agency
State of California
Pooled Money Investment Account
Market Valuation
1/31/2026
Carrying Cost Plus
Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury:
Bills $ 51,799,914,348.32 $ 52,213,105,650.00 NA
Notes $ 45,465,589,677.12 $ 45,668,690,350.00 $ 458,219,329.50 Federal Agency:
SBA $ 265,888,072.99 $ 262,838,882.60 $ 1,003,292.16
MBS-REMICs $ 881,835.22 $ 890,042.46 $ 3,846.93
Debentures $ 4,571,257,842.07 $ 4,585,927,730.00 $ 50,061,695.40 Debentures FR $ - $ - $ -
Debentures CL $ 3,000,000,000.00 $ 3,009,120,850.00 $ 31,953,476.50 Discount Notes $ 28,281,433,868.04 $ 28,568,972,500.00 NA Supranational Debentures $ 4,337,631,978.20 $ 4,352,940,700.00 $ 46,470,793.30 Supranational Debentures FR $ - $ - $ -
CDs and YCDs FR $ - $ - $ -
Bank Notes $ 200,000,000.00 $ 199,872,514.73 $ 1,660,694.44 CDs and YCDs $ 16,050,000,000.00 $ 16,051,759,635.81 $ 173,077,694.49 Commercial Paper $ 9,399,377,736.03 $ 9,485,305,694.54 NA Corporate:
Bonds FR $ - $ - $ -
Bonds $ 962,752,856.04 $ 964,454,544.00 $ 9,505,199.42
Repurchase Agreements $ - $ - $ -
Reverse Repurchase $ - $ - $ -
Time Deposits $ 5,392,000,000.00 $ 5,392,000,000.00 NA
PMIA & GF Loans $ 263,795,740.00 $ 263,795,740.00 NA
TOTAL $ 169,990,523,954.03 $ 171,019,674,834.14 $ 771,956,022.14 Fair Value Including Accrued Interest $ 171,791,630,856.28 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
Attachment A-8
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: March 3, 2026
Title: Award of Professional Services Agreement with Mark Thomas & Company, Inc., to Facilitate the Covina Town Center Pedestrian Bridge Feasibility Study and Outreach Program
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Daniella Chadwick, Sr. Management Analyst
Recommendation: Approve Professional Services Agreement Authorizing the Project.
EXECUTIVE SUMMARY:
The City Council will consider awarding a Professional Service Agreement (PSA) to Mark Thomas & Company, Inc., in an amount not to exceed $150,000 to facilitate the Covina Town Center Pedestrian Bridge Feasibility and Community Outreach Program.
BACKGROUND:
The City received a $150,000 Technical Assistance award from Metro to conduct a feasibility study and corresponding community engagement program for a potential pedestrian bridge in the City’s downtown. This effort will support recent progress towards the City’s long-term goal of installing an ADA-compliant pedestrian and cyclist bridge at 319 E Front Street. The proposed bridge site has the potential to reduce risk of injury by providing a safe crossing over the rail line, improve ADA access to city facilities and regional transportation, increase park acreage within the city, relieve parking congestion, and strengthen the pedestrian network and overall urban fabric of downtown Covina.
Progress to date on this project includes a federal appropriation to improve connectivity to the Metrolink Station (currently in progress) and the recently completed site acquisition, which utilized Measure A Acquisition Grant funds and Measure W-Municipal allocation funds.
This program is intended to provide the City with detailed information regarding permitting and structural requirements and considerations, cost considerations and estimates, a cost/benefit analysis, and a funding and grant forecast. Collectively, these deliverables will position the City to advance to a welldefined bridge project and improve competitiveness for construction funding grants. One potential funding opportunity is the California Transportation Commission (CTC) Local Partnership Program (LPP), a competitive program anticipated to release its call for applications in August 2026. The LPP operates on three-year funding cycles and is limited to agencies that have adopted voter-approved transportation taxes or developer-imposed fees dedicated solely to transportation infrastructure improvements (Covina has the latter requirement). The program requires applicants to submit a welldeveloped project scope and a detailed cost estimate. As part of the LPP, applicants are expected to have a cost estimate for their project prepared. As part of this effort, 3D photorealistic renderings of the proposed bridge will be developed and shared with the community to gather feedback. There will be at least five (5) community touchpoints, with two (2) of the touchpoints in hard-to-reach areas. The scope should take no more than five months to complete.
DISCUSSION:
Per CMC 2.20.175 Purchase – Professional and specialized services, the purchase of professional and specialized services by firms, companies, or corporations is made based on demonstrated competence and experience of the service provider. As such, neither formal nor informal bidding is required before the purchase of professional services. However, due to the project being funded from an outside
agency, the City proceeded with an informal Request for Proposal to ensure compliance with the grant contract provisions.
A Request for Proposals (RFP) was sent to 23 professional firms and local nonprofit organizations via email. In addition, the RFP was published in the San Gabriel Valley Examiner, posted on the City’s Website, shared on the City’s Social Media platforms, and posted on LinkedIn. The RFP was open for a total of 49 days, and the submission deadline was on Thursday, January 22, 2026, at 5:00 PM. The City received two (2) proposals in response to the RFP:
schlaich bergermann partner proposing to subcontract with Fehr & Peers (Multimodal Transportation Planning firm) and Day One (a Pasadena-based nonprofit organization). Mark Thomas proposing to subcontract with Safe Move, Inc. (a nonprofit organization based out of Van Nuys, CA).
Mark Thomas ranked first, with a composite score of 92.6 across all raters. Upon completion of the internal review panel, staff opened the sealed cost proposals. Mark Thomas proposed a cost not to exceed $150,000 in line with the project budget. However, the proposal did suggest minor adjustments to budget line items, which require approval of Metro.
Rank Bidder Rater 1 Rater 2 Rater 3 Average Cost Proposal 1 Mark Thomas 91 95 92 92.6 $150,000.00
2 schlaich bergermann partner 81 90 94 88.3 $150,000.00 Due to receiving fewer than three (3) proposals, the city solicited additional consulting firms to document responses explaining why proposals were not submitted. Staff received an immediate response from CSG Consultants, Inc., stating they would not submit a proposal for this project. Additional responses were received from H.W. Lochner & Transtech.
Staff notified all proposers of the selection and now seeks City Council authorization to award the PSA.
Upon award, Mark Thomas & Company, Inc., may begin the scope of services. The scope of work and project schedule are included in the Professional Services Agreement.
FISCAL IMPACT:
On September 2, 2025, the City Council adopted Resolution CC 2025-103 approving the acceptance of $150,000 from Metro to support this effort. No general Fund impact is anticipated. In addition to the grant monies, staff will contribute an estimated valuation of $10,000 in in-kind staff time, which includes personnel efforts related to the RFP process, project administration through the duration of the scope of work, and support related to Council and Commission meetings and outreach activities.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This action is exempt from the California Environmental Quality Act under CEQA Section 15262, Feasibility and Planning Studies, because the eligible activities under this grant program consist only of planning activities, which include but are not limited to Community Engagement and Concept Development. This action does not involve the adoption of a “project”.
Respectfully submitted,
ATTACHMENT A
PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is dated February 17, 2026, (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Mark Thomas, Inc., a California Corporation (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City desires to utilize the services of Consultant as an independent contractor to facilitate the Covina Town Center Pedestrian Bridge Feasibility & Community Outreach Program.
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.
D. Funding for the scope of work authorized under this agreement was provided by Los Angeles County Metro (“LACMTA”, or “Metro”) under Award Agreement No. 9200000000TOC2501.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through October 31, 2026, unless sooner terminated as provided in Section 14 of this Agreement.
2. Compensation.
A. Compensation. As full compensation for Consultant’s services provided under this Agreement, City shall pay Consultant the total flat sum of One Hundred and Forty-Nine Thousand Nine Hundred and Seventy-Three Dollars($149,973) (the “maximum compensation”), as outlined 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.
A. Additional Services. City shall not allow any claims for additional services performed by Consultant, unless the City Council and the Consultant Representative authorize the additional services in writing prior to Consultant’s performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council shall be compensated at the rates set forth in Exhibit A, or, if not specified, at a rate mutually agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.
3. Consultant’s Services.
A. Scope of Services. Consultant shall perform the services described in the Scope of Services, attached as Exhibit B. City may request, in writing, changes in the scope of services to
be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.
B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Consultant Representative shall be Kara Trannel, Contracts and Compliance Manager (the “Consultant Representative”). The Consultant Representative shall directly manage Consultant’s services under this Agreement. Consultant shall not change the Consultant Representative without City’s prior written consent.
C. Time for Performance. Consultant shall commence the services on the Effective Date and shall perform all services in conformance with the project timeline, 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.
4. Method of Payment.
A. Invoices. Consultant shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the
amount due. If City disputes any of Consultant's fees, it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement.
City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Consultant. For all reimbursements authorized by this Agreement, Consultant shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.
C. Audit of Records. Consultant shall make all records, invoices, time cards, cost control sheets and other records maintained by Consultant in connection with this agreement available during Consultant’s regular working hours to City for review and audit by City.
5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files containing data generated for the work, Consultant shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Consultant may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Consultant.
6. Independent Contractor.
A. Consultant is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant and Consultant’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Consultant’s personnel. Consultant’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Consultant’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Consultant shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Consultant’s personnel require to perform any of the services required by this Agreement. Consultant shall perform the services off of City premises at locations of Consultant’s choice, except as otherwise may from time to time be
necessary in order for Consultant’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Consultant’s performance of the services under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services. City may make a computer available to Consultant from time to time for Consultant’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.
B. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
Consultant shall be responsible for and pay all wages, salaries, benefits and other amounts due to Consultant’s personnel in connection with their performance of the services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Consultant and any of its officers, employees, agents, and subcontractors providing any of the services under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.
C. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section 6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
7. PERS Compliance and Indemnification.
A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Consultant agrees that, in providing its employees and any other personnel to City to perform the services under this Agreement, Consultant shall assure
compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended. Without limitation to the foregoing, Consultant shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.
B. Indemnification. Consultant shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Consultant’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Consultant’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Consultant or provided for performance of this Agreement are deemed confidential. Consultant shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Consultant shall return all data to City upon the expiration or termination of this Agreement. Consultant’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.
9. Conflicts of Interest. Consultant and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s services under this Agreement, including the Political Reform Act (Gov.
Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients, but Consultant and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Consultant is not currently performing work that would require Consultant or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section 9 into any subcontract that Consultant executes in connection with the performance of this Agreement.
10. Indemnification.
A. Indemnity for Design Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, indemnify and hold harmless 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, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs
associated therewith, and reimbursement of attorney’s fees and costs of defense (collectively “Liabilities”), whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, its officers, agents, servants, employees, subcontractors, material men, 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 design professional services under this Agreement by a “design professional,” as the term is defined under California Civil Code Section 2782.8(c)(2).
B. Other Indemnities.
1) Other than in the performance of design professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, 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 “Claims”), 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 Claims 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 Claim 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 the 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 B. 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 indemnities, Consultant shall be fully responsible and indemnify,
hold harmless and defend the Indemnitees from and against any and all Claims 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 Claims 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.
C. Workers’ Compensation Acts not Limiting. Consultant’s 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.
D. 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. This hold harmless and indemnification provisions in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, Claim, tax, assessment, penalty or interest asserted against City.
E. Survival of Terms. The indemnification in 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 with minimum limits of Two Million Dollars ($2,000,000) per claim and in aggregate.
B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self insurance shall not be considered to comply with the insurance requirements under this Section 11.
C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming the City, its officers, employees, agents and volunteers as additional insureds.
D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.
E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.
G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section 11 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 11 is canceled or reduced in coverage or limits, Consultant shall, within two (2) business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.
H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.
I. Evidence of Insurance. Prior to the performance of services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11.
The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.
J. Indemnity Requirements not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under Section 10 of this Agreement.
K. Subcontractor Insurance Requirements. Consultant shall require each of its subcontractors that perform services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 11.
12. Mutual Cooperation.
A. City’s Cooperation. City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for Consultant’s proper performance of the services required under this Agreement.
B. Consultant’s Cooperation. In the event any claim or action is brought against the City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance that the 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 four (4) years. Consultant shall, without charge, provide City and Los Angeles County Metro (LACMTA) with access to the records during normal business hours. City and LACMTA may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.
Consultant shall provide access to City and LACMTA to all necessary records, including reproduction at no charge to City and LACMTA, and shall provide adequate and appropriate work space to conduct audits in compliance with the terms and conditions of this agreement.
14. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City may terminate or suspend this Agreement at any time, at will, for any reason or no reason, after giving written notice to Consultant at least seven (7) calendar days before the termination or suspension is to be effective. Consultant may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least sixty (60) calendar days before the termination is to be effective.
B. Obligations upon Termination. Consultant shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination.
In the event of City’s termination of this Agreement due to no fault or failure of performance by Consultant, City shall pay Consultant based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.
15. Force Majeure. Consultant shall not be liable for any failure to perform its obligations under this Agreement if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Consultant’s reasonable control and not due to any act by Consultant.
16. Notices. Any notices, consents, requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service during Consultant’s and City's regular business hours, or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to Consultant:
Attn: Daniella Chadwick Kara Trammel
City of Covina Mark Thomas & Company, Inc.
125 E. College Street| 515 S Flower Street, 18th floor
Covina, California 91723 Los Angeles, CA 90071
17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.
Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race,
color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.
18. Prohibition of Assignment and Delegation. Consultant shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Consultant from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.
19. No Third-Party Beneficiaries Intended. Except as otherwise provided in Section 10, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.
20. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.
21. Exhibits. Exhibits A, B, and C constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.
22. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement.
23. Amendment of Agreement. This Agreement may be amended only by a writing signed by both parties. The City Manager is authorized to sign an amendment to this Agreement on the City Council’s behalf and without the City Council’s prior approval to make the following nonsubstantive modifications to the Agreement: (a) name changes; (b) extensions of time; (c) nonmonetary changes in the scope of work; and (d) termination of the Agreement.
24. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
25. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
26. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.
28. Attorneys’ Fees. In any litigation or other proceeding by which on party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgment.
29. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
30. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he or she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City: Consultant:
City of Covina,
a California municipal corporation
By:
Name: Chris Marcarello
Title: City Manager
ATTEST:
By:
Name: Fabian Velez
Title: Chief Deputy City Clerk
Mark Thomas & Company, Inc.
a California corporation
By:
Name: David Moritz
Title: Executive Vice President + Principal
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents
authorize only one person to sign this
Agreement on behalf of the corporation.)
EXHIBIT A
APPROVED FEE SCHEDULE
EXHIBIT B
SCOPE OF WORK & PROJECT SCHEDULE
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: March 3, 2026
Title: Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202 – Final Acceptance and Filing Notice of Completion Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Accept the work performed by Perera Construction & Design, Inc.; and
2. Authorize the City Clerk to file a Notice of Completion for the Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202.
EXECUTIVE SUMMARY/DISCUSSION:
On July 16, 2024, the City Council approved a contract with Perera Construction & Design, Inc. in the amount of $12,112,926 with a project scope that included the construction of the Covina Recreation Village Project – Phase I – West Gymnasium Building. As a part of the funding for this project, the San Gabriel & Lower Los Angeles Rivers and Mountains Conservancy (RMC) provided the City with a $300,000 grant for work to be completed at the Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202.
The scope of work for the Native Garden Open Space Project is comprised of the following:
Site Work/Permeable Pavers
Provide and Install Irrigation System
Provide and Install Landscape Exclusive of Trees at Bioswale Trees
Boulders
Project construction for the portion funded by the RMC grant has been completed and City staff recommends acceptance of the work performed by Perera Construction & Design, Inc. and to authorize the City Clerk to file a Notice of Completion (Attachment A) for the Native Garden Open Space Project – Covina Recreation Village Project - Project No. P2202.
FISCAL IMPACT:
Project funding for the Native Garden Open Space Project – Covina Recreation Village Project - Project No. P2202 was allocated as follows:
Source of Project Funds Amount Account
RMC Grant Funds $300,000 46003400-55200-P2202
Grand Total $300,000
The following table represents the final project summary:
Item Actual
Project Appropriations $300,000
Perera Construction & Design, Inc. ($300,000)
Total UNDER/OVER BUDGET $0
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
NAME City of Covina
STREET ADDRESS 125 E College Street
CITY Covina
STATE CA
ZIP CODE 91723
SPACE ABOVE THIS LINE FOR RECORDER’S USE
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion. (See reverse side for complete requirements.) Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is The City of Covina .
3. The full address of the owner is 125 E College Street, Covina, CA 91723 .
4. The nature of the interest or estate of the owner is: In fee. (If other than Fee, strike “in fee” and insert, for example, “purchaser under contract of purchase”, or “Lessee”)
5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are:
NAMES ADDRESSES
6. The full names and full addresses of all the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work or improvements herein referred to:
NAMES ADDRESSES
7. A work of improvement on the property hereinafter described was completed on: August 21, 2025 . The work done was:
Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202
8. The names of the contractor, if any, for such work improvement was:
Perera Construction & Design, Inc. July 16, 2024
(If no contractor for work of improvement as a whole, insert “None”) (Date of Contract)
9. The property on which said work of improvement was completed in the City of: Covina County of Los Angeles , State of CA , and is described as follows:
Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202
10. The street address of said property is 640-680 N. Citrus Avenue, Covina, CA 91723 (If no street address has been officially signed, insert “None”.) Dated March 3, 2026
Fabian Velez, Chief Deputy City Clerk, City of Covina
VERIFICATION
I, the undersigned, say: I am the City Engineer The declarant of the foregoing Notice of Completion; (President of, Manager of, Partner of, Owner of)
I have read said Notice of Completion and know the contents thereof; the same is true to my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on March 3, , 2026 at Covina , California .
Rafael M. Fajardo, City of Covina
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: March 3, 2026
Title: Adoption of Ordinance 26-01
Presented by: Ric Walczak, Chief of Police
Recommendation: That the City Council adopt Ordinance 26-01, entitled “An Ordinance of the City Council of the City of Covina, California, Adding Chapter 8.80 Within Title 8 (Health and Safety) of the Covina Municipal Code Regulating the Sale and Distribution of Kratom Products”.
EXECUTIVE SUMMARY:
Ordinance 26-01 (Attachment A) was introduced at the February 17, 2026, City Council Meeting and approved by a vote of 5-0-0 with amendments proposed prior to consideration. The cover page reflecting the amendments are attached as Attachment B.
BACKGROUND:
It is recommended that the City Council adopt on second reading Ordinance 26-01 entitled, “An Ordinance of the City Council of the City of Covina, California, Adding Chapter 8.80 Within Title 8 (Health and Safety) of the Covina Municipal Code Regulating the Sale and Distribution of Kratom Products”.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
ORDINANCE 26-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADDING CHAPTER 8.80 WITHIN TITLE 8 (HEALTH AND
SAFETY) OF THE COVINA MUNICIPAL CODE REGULATING THE SALE
AND DISTRIBUTION OF KRATOM PRODUCTS
THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Title 8 (Health and Safety) of Covina Municipal Code is hereby amended to add a new Chapter 8.80 to read as follows:
Section 8.80.010 Legislative Purpose.
A. It is the intent of the City Council of the City of Covina to prohibit the sale, distribution, or possession of kratom and hydroxymitragynine (also known as 7-OH) products within the City of Covina that contain more than two percent (2%) of 7-OH in the alkaloid fraction, recognizing the significant health risks associated with elevated concentrations of this alkaloid.
B. Kratom (mitragyna speciosa) is a tropical tree native to Southeast Asia, and its leaves are often consumed in powdered or extract form for their stimulant and sedative effects. The active compounds in kratom include mitragynine and 7-OH.
While mitragynine is present in higher concentrations, 7-OH is more potent and is largely responsible for the stronger pain-relieving, sedative, and euphoric effects.
C. Research has shown 7-OH has euphoric and mood-enhancing effects, particularly at higher doses, which can increase its appeal for recreational use.
Research has also shown that 7-OH binds to opioid receptors in the brain with greater affinity than morphine, making it significantly more powerful in relieving pain. This greater potency raises significant concerns about its safety profile, especially regarding the potential for addiction, overdose, and adverse physical and psychological effects, including nausea, vomiting, and potential psychosis. These risks are compounded when products contain higher concentrations of 7-OH.
D. Health advisories have raised concerns over the safety of kratom products, particularly those with higher concentrations of 7-OH, which may increase the potential for abuse and harm to public health. The United States Food and Drug Administration (FDA) has issued several warning letters to various companies for illegally marketing products containing enhanced levels of 7-OH, culminating in a formal request to the U.S. Drug Enforcement Administration (DEA) on July 29, 2025, to place 7-OH products on the controlled substance list.
E. Health officials, including the FDA, have raised concerns over the safety of kratom products, particularly those with higher concentrations of 7-OH, which may increase the potential for abuse and harm to public health.
Ordinance 26-01 Page 2 of 4
F. At least one county in California, and several cities in California, have recently taken steps to regulate or ban kratom products, recognizing the need to protect public safety, especially among vulnerable populations.
G. The City Council, in its commitment to safeguarding the health and wellbeing of its residents by ensuring that products available for sale do not pose undue health risks, hereby restricts the sale and distribution of kratom and 7-OH products containing more than two percent (2%) of 7-OH in the alkaloid fraction, thereby reducing potential risks to public health and safety.
H. This ordinance is enacted pursuant to the City’s police powers to protect public safety, health, and welfare.
Section 8.80.020 Definitions. For purposes of this chapter, the following terms shall have the following meanings:
a. 7-OH product means a product containing hydroxymitragynine. b. Attractive to children means any of the following:
1. Use of images that are attractive to children, including, but not limited to, images of any of the following, except as part of required health warnings:
o Cartoons, toys, or robots
o Any real or fictional humans
o Fictional animals or creatures
o Fruits or vegetables, except when used to accurately describe ingredients or flavors contained in a product
2. Likeness to images, characters, or phrases that are popularly used to advertise to children.
3. Imitation of candy packaging or labeling, or other packaging and labeling of cereals, sweets, chips, or other food products typically marketed to children.
4. The terms “candy” or “candies” or variants in spelling such as “kandy” or “kandee.”
5. Brand names or close imitations of brand names of candies, cereals, sweets, chips, or other food products typically marketed to children.
6. Any other image or packaging that is easily confused with commercially available foods that do not contain kratom and are typically marketed to children.
7. Any other packaging used that is attractive to children considering all relevant facts and circumstances.
c. Kratom leaf means the leaf of the kratom plant, also known as mitragyna speciosa, in any form.
Ordinance 26-01 Page 3 of 4
d. Kratom leaf extract means the material obtained by extraction of kratom leaves by any means.
e. Kratom product means a product consisting of kratom leaf, kratom leaf extract, or both; any part of a leaf of the plant mitragyna speciosa in fresh, dehydrated, or dried form; or a kratom extract; or any product that contains any kratom alkaloid or metabolite.
f. Total kratom alkaloids means the sum of mitragynine, speciociliatine, speciogynine, paynantheine, and 7-OH in a kratom product. g. Synthesized means an alkaloid or alkaloid derivative that has been created by chemical synthesis or biosynthetic means (including but not limited to fermentation, recombinant techniques, or yeast-derived enzymatic techniques) rather than traditional food preparation techniques such as heating or extracting. It also includes alkaloids that have been further exposed to chemicals or processes that would confer a structural change in the alkaloids contained within the extract.
Section 8.80.030 Prohibitions
a. Except as otherwise authorized by law, no individual, business, or other entity shall sell, attempt to sell, offer, provide, or distribute a kratom product or 7-OH product to a person under twenty-one (21) years of age. b. Except as otherwise authorized by law, no individual, business, or other entity shall sell, attempt to sell, offer, provide, or distribute a kratom product or 7-OH product with a level of 7-OH that is greater than two percent (2%) of the total kratom alkaloids in the product.
c. Except as otherwise authorized by law, no individual, business, or other entity shall sell, attempt to sell, offer, provide, or distribute a kratom product or 7-OH product that is attractive to children.
d. Any individual, business, or other entity that sells, attempts to sell, offers, provides, or distributes a kratom product or 7-OH product shall conduct age verification to ensure compliance with subdivision (a). e. No person or entity shall offer for sale any kratom product that contains or is adulterated with synthesized or semi-synthesized kratom alkaloids or kratom constituents.
Section 8.80.040 Violations and Penalties. Any person or entity who violates this chapter is guilty of a misdemeanor and upon conviction thereof may be punished by a fine of not more than one thousand dollars ($1,000.00), or by imprisonment in the county jail for a period of not more than six (6) months, or by both such fine and imprisonment.
This section shall not serve to limit any other legal remedies or actions that the City may have to address violations of this chapter.
SECTION 2. Severability. If any section, subsection, paragraph, sentence, clause, phrase, or portion of this ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed severable and such holding shall not affect the validity of the remaining portions. The City Council hereby declares that it
Ordinance 26-01 Page 4 of 4
would have adopted this ordinance irrespective of the invalidity of any particular portion and intends that the invalid portions be severed and the balance of the ordinance be enforced.
SECTION 3. Effective Date. This ordinance shall take effect thirty (30) days after its adoption.
SECTION 4. Publication and Posting. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same or a summary thereof to be published and posted in the manner required by law.
PASSED, APPROVED and ADOPTED this __ day of ________, 2026.
City of Covina, California
BY:
VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
________________________________
KEVIN G. ENNIS, City Attorney
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, California, do hereby certify that Ordinance 26-01 was duly approved and adopted at a regular meeting of the City Council on the __ day of ________, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
___________________________________
FABIAN VELEZ, Chief Deputy City Clerk
City Council/Successor Agency/Public
Financing Authority/Housing Authority
Regular Meeting
February 17, 2026
Attached is the revised document related to New Business Item NB 1: Ordinance 26-01 Regulating the Sale and
Distribution of Kratom Products, which was revised following the posting and distribution of the February 17, 2026,
Agenda:
Attachment A – The title and text of the attached ordinance has been updated to reflect the purposed
chapter addition as Chapter 8.80 of the
Covina Municipal Code. Formatting of the
sections have also been updated with no
additional changes to content.
ATTACHMENT B
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. PH 1
Meeting: March 3, 2026
Title: Introducing Ordinance 26-02, Approving Zone Change (ZCH) 25-3, Amending the City’s Official Zoning Map, and Making a Finding of Exemption Pursuant to CEQA Guidelines Section 15061(b)(3)
Presented by: Brian K. Lee, AICP, Deputy City Manager/Director of Community Development Recommendation: Waive full reading and introduce Ordinance 26-02 entitled, “An Ordinance of the City Council of the City of Covina, California, approving Zone Change (ZCH) 25-3, and amending the City’s Official Zoning Map 2558 parcels from the existing RD Residential Zone (Multifamily RD 2000 through RD 3000 and RD 3400 through RD 5000) to High Density Residential Zone (HDR) and Medium Density Residential (MDR), respectively, and the list of Assessor’s Parcel Numbers are attached hereto as Exhibit A, and making a finding of exemption pursuant to CEQA Guidelines Section 15061(b)(3)”.
EXECUTIVE SUMMARY:
The City's primary objective is to align the RD Multifamily zoning districts with the Medium Density Residential and High-Density Residential land use designations of the 2000 General Plan. This is required by Government Code Section 65860, which mandates all cities, including Covina, to ensure that zoning districts are consistent with their General Plan land use designations. 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. The Planning Commission concluded the hearing on January 13, 2026, and adopted Resolution No. 2025-025 PC by a vote of 5-0, recommending to the City Council the approval of the Zone Change (ZCH) 25-3.
DISCUSSION:
The proposed rezoning intends to simplify the remaining RD zoning districts by renaming RD 2000 through RD 3000 as High Density Residential (HDR) zoning district and RD 3400 through RD 5000 as Medium Density Residential (MDR) zoning district. 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 the current 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. Phase 1 of this project was completed in June of 2025; this proposed Phase 2 will complete the rezoning project.
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. Staff scheduled a Planning Commission study session on October 28, 2025, for Phase 2. The Planning Commission conducted the study session at the October 28, 2025, meeting and a public hearing on January 13, 2026. There were no public comments received from the study session or public hearing. The public hearing notice was published in the San Gabriel Valley Tribune newspaper on February 19, 2026, 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) 25-3 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 – RD 2000-3000 and RD 3400-5000) to High Density Residential (HDR) and Medium Density Residential (MDR) Zones, respectively for 2558 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,
RESOLUTION NO. 2025- 05
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
COVINA, CALIFORNIA, RECOMMENDING APPROVAL TO THE CITY
COUNCIL OF ZONE CHANGE ( ZCH) 25- 3, TO AMEND THE CITY' S OFFICIAL ZONING MAP FOR 2558 PARCELS FROM THE EXISTING
RD RESIDENTIAL ZONE ( MULTIFAMILY RD 2000 THROUGH RD 3000 AND RD 3400 THROUGH RD 5000) TO HIGH DENSITY RESIDENTIAL
ZONE ( HDR) AND MEDIUM DENSITY RESIDENTIAL ( MDR),
RESPECTIVELY, AND THE LIST OF ASSESSORS PARCEL NUMBERS
ARE ATTACHED HERETO AS EXHIBIT A, AND RECOMMENDING TO
MAKE A FINDING OF EXEMPTION PURSUANT TO CEQA
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 zoning districts are consistent with their land use designations; and WHEREAS, the City has identified properties within the RD 2000 through RD 3000 and RD 3400 through RD 5000 zoning designations that have zoning densities inconsistent with range of the applicable General Plan Residential land use designations; 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 RD zoned parcels 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' sshare 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 affinnative vote of not less than two - 1 ATTACHMENT A
thirds of the total voting members after at least one public hearing and must be filed with the City 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 January 13, 2026, the Planning Commission conducted a duly noticed public hearing and considered the proposed Zone Change ( ZCH) 25- 3. After receiving oral and written evidence, and public input, the Planning Commission concluded said hearing, and by a vote, adopted Resolution No. 2025- 05 PC recommending to the City Council the approval of the Zone Change ( ZCH) 25- 3; and
WHEREAS, all legal prerequisites prior to adoption of this Ordinance have occurred.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF
COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated herein and made an operative part of this Resolution.
SECTION 2. California Environmental Quality Act Findings. The Planning Commission determines 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 — RD 2000 through RD 3000) to High Density Residential ( HDR) and RD Residential Zone ( Multifamily — RD 3400 through RD 5000) to Medium Density Residential ( MDR) for 2558 parcels throughout the City will have a significant adverse effect on the environment. The Planning commission further determines 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 Planning Commission 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.
SECTION 3. Findings for ZCH 25- 3. Based on the evidence in the record, Planning Commission hereby finds that the proposed Zone Change ( ZCH) 25- 3 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 in the applicable General Plan land use designation for the properties.
SECTION 4. Planning Commission Recommendation. After giving full consideration to all evidence presented at the public hearing and in consideration of the findings stated in the attached City Council Ordinance, the Planning Commission does hereby recommend that the City Council of the City of Covina adopt the Ordinance substantially similar to that attached hereto and titled as follows:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, APPROVING ZONING CHANGE ( ZCH) 25- 3, AND
AMENDING THE CITY' S OFFICIAL ZONING MAP FOR 2558 PARCELS
FROM THE EXISTING RD RESIDENTIAL ZONE ( MULTIFAMILY RD
2000 THROUGH RD 3000 AND RD 3400 THROUGH RD 5000) TO HIGH
DENSITY RESIDENTIAL ZONE ( HDR) AND MEDIUM DENSITY
RESIDENTIAL ( MDR), RESPECTIVELY, AND THE LIST OF
ASSESSORS PARCEL NUMBERS ARE ATTACHED HERETO AS
EXHIBIT A, AND MAKE A FINDING OF EXEMPTION PURSUANT TO
CEQA
SECTION 5. The documents and materials that constitute the record of proceedings on. which these findings and this Resolution are based are located at the City Clerk' s Office or the Community Development Department, Planning Division, located at 125 E. College Street, Covina, CA 91723 or at www. covinaca. gov. The custodian of these records is the City Clerk.
SECTION 6. The Secretary shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED by the members of the Planning Commission of Covina this 13` hday of January, 2026.
2 BRIAN RODRIGUEZ, CHAIRMAN
CITY OF COVINA PLANNING COMMISSION
I hereby certify that the foregoing is a true copy of a Resolution adopted by the Planning Commission of the City of Covina at a regular meeting thereof held on the by the following vote of the Planning Commission:
NASS, RICHARDSON, MCMEEKIN, FLORES, RODRIGUEZ
Nom NONE
Anse'. NONE
ABSTAIN: ONE
ANNING COMMISSION SECRETARY
ATTACHMENT B
ORDINANCE 26-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, APPROVING ZONE CHANGE (ZCH) 25-3, AND
AMENDING THE CITY’S OFFICIAL ZONING MAP 2558 PARCELS
FROM THE EXISTING RD RESIDENTIAL ZONE (MULTIFAMILY RD 2000 THROUGH RD 3000 AND RD 3400 THROUGH RD 5000) TO HIGH
DENSITY RESIDENTIAL ZONE (HDR) AND MEDIUM DENSITY
RESIDENTIAL (MDR), RESPECTIVELY, 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 2000 through RD 3000 and RD 3400 through RD 5000 zoning designations that have zoning densities inconsistent with range of the applicable General Plan Residential land use designations; 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
Ordinance 26-02 Page 2 of 4
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 two-thirds of the total voting members after at least one public hearing and must be filed with the City 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 January 13, 2025, the Planning Commission conducted a duly noticed public hearing and considered the proposed Zone Change (ZCH) 25-3. After receiving oral and written evidence, and public input, the Planning Commission concluded said hearing, and by a 5-0 vote, adopted Resolution No. 2025-025 PC recommending to the City Council the approval of the Zone Change (ZCH) 25-3; and WHEREAS, on March 3, 2026, 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) 25-3 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) 25-3. Following consideration of the entire record of information received at the public hearing and due consideration of the proposed Zone Change (ZCH) 25-3, 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 RESOLVE 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 – RD 2000 through RD 3000) to High Density Residential (HDR) and RD Residential Zone (Multifamily – RD 3400 through RD 5000) to Medium Density Residential (MDR) for 2558 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 25-3 and the proposed CEQA determination, and based on its own independent judgement, approve the CEQA exemption.
Ordinance 26-02 Page 3 of 4
SECTION 3. Findings for ZCH 25-3. 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) 25-3 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.
SECTION 4. Approval. In consideration of the findings stated above, the City Council of the City of Covina does hereby approve Zone Change (ZCH) 25-3, amending the City’s Official Zoning Map for 2558 parcels throughout the City from the existing RD Residential Zone (Multifamily – RD 2000 through RD 3000) to High Density Residential (HDR) and RD Residential Zone (Multifamily – RD 3400 through RD 5000) to Medium Density Residential (MDR), 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) 25-3.
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 3
rd day of March, 2026.
City Council of Covina, California
BY:
VICTOR LINARES, Mayor
Ordinance 26-02 Page 4 of 4
ATTEST:
______
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
_________
KEVIN G. ENNIS, City Attorney
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Ordinance 26-02 were introduced for first reading at a regular meeting on the ___ day of ______, 2026. Thereafter, said Ordinance was duly approved and adopted at a regular meeting of said City Council on the ___ day of _______, 2026, 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) 25-3
FROM RD RESIDENTIAL ZONE (MULTIFAMILY – RD 2000 THROUGH RD 3000) TO
HIGH DENSITY RESIDENTIAL (HDR) AND RD RESIDENTIAL ZONE (MULTIFAMILY – RD 3400 THROUGH RD 5000) TO MEDIUM DENSITY RESIDENTIAL (MDR) THE LIST OF ASSESSOR’S PARCEL MAP NUMBERS ARE ON FILE IN THE PLANNING DIVISION AND THE MAP IS AVAILABLE ON CITY’S WEBSITE.
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CB 1
Meeting: March 3, 2026
Title: Discussion and Direction Regarding the Proposed County of Los Angeles General Half-Cent Sales Tax Ballot Measure and Consideration of a Supplemental Local Transactions and Use Tax for the June 2, 2026 Ballot to Maintain Local Control of Revenues
Presented by: Chris Marcarello, City Manager
Recommendation: That the City Council:
1. Review and discuss the County of Los Angeles’ proposed half-cent sales tax measure for the June 2, 2026 ballot;
2. Consider adopting Resolution CC 2026-16, calling for the placement of an Ordinance and measure before Covina voters at the June 2, 2026 General Municipal Election to establish a supplemental general transactions and use tax intended to maintain local control of the revenue and directly benefit the Covina community;
3. Consider adopting Resolution CC 2026-17, providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a City measure to be submitted at the June 2, 2026 General Municipal Election;
4. Consider adoption Resolution CC 2026-18, requesting the Board of Supervisors of the County of Los Angeles to consolidate a General Municipal Election to be held on June 2, 2026 with the Statewide General Election to be held on that date pursuant to Section 10403 of the Elections Code.
5. Authorize any necessary changes to the proposed Ordinance and Resolutions to ensure compliance with edits required by the County of Los Angeles Registrar of Voters and the California Department of Tax and Fee Administration (“CDTFA”).
6. Designate members of the City Council that may be interested in drafting and signing the ballot argument in support of the local measure.
EXECUTIVE SUMMARY:
The County of Los Angeles recently approved the placement of a measure on the June 2, 2026, election ballot that will ask voters to increase the Countywide sales tax rate by a half-cent over the next five years to offset federal funding cuts to public health services. This development has prompted discussions amongst local agencies regarding existing sales tax rates, the statutory cap on County/local sales taxes, and the ongoing disparity of resources that are returned to cities relative to the total resources that are collected locally.
On February 17, 2026, the Covina City Council considered the County’s proposed measure and requested the preparation of resolutions for a supplemental local transactions and use tax for the June 2, 2026, ballot that would maintain local control of revenues generated in Covina for the direct benefit of the Covina community. Additionally, the City Council requested City staff to compile that information relative to preliminary polling information and draft legislation on the County’s proposed measure.
Further, the City Council inquired into the California Department of Tax and Fee Administration process
that is used to determine how funds are disbursed if both the local and County measures pass and are subject to the combined statutory cap on County/local sales taxes.
It is recommended that the City Council consider these topics and provide direction on whether to adopt a resolution for the June 2, 2026, election asking voters whether they would like to preserve local control of revenues generated in Covina for the direct benefit of the Covina community.
BACKGROUND:
In Covina, the cumulative sales tax rate is 10.50%, which is comprised of the Statewide sales tax rate of 7.25% and County/local Taxes totaling 3.25%. Although California Revenue and Taxation Code Section 7251.1 sets the maximum County/local transaction and use tax, or statutory cap, at two percent (2%), several Countywide sales tax measures that exceed the statutory cap are still implemented due to special legislation that exempts these measures from the County/local statutory sales tax cap.
County Measure R (1/2 cent sales tax), County Measure M (1/2 cent sales tax) and County Measure A (1/2 cent sales tax) are among such measures. With these exemptions, there is 1/4 cent in capacity that remains under the two percent (2%) County/local statutory sales tax cap.
Voter approval of recent Countywide sales tax measures like Measure H and Measure A has prompted discussion among local agencies regarding the efficacy of these measures and the parity of local returns when compared to total tax resources that are generated within local jurisdictions. As an example, Measure H (approved in 2017 by approximately 69% of Countywide voters) levied a onequarter percent (1/4%) transactions and use tax for a period of ten (10) years. In Covina, it is estimated that the initial transactions and use tax measure generated over $15 million prior to its repeal in 2024.
Of these resources, roughly $500 thousand was returned to Covina for the creation of a local homelessness plan, diversion/prevention programs, and case management services. More recently, Measure A (approved in 2024 by approximately 58% of Countywide voters) repealed Measure H and levied a one-half percent (1/2%) transactions and use tax until voters decide to end it. In Covina, it is estimated that roughly $5 million is generated annually. According to the Measure A Allocation Methodology, at least fifteen percent (15%) will be allocated to cities, councils of governments and/or the County (for unincorporated areas) for homelessness prevention programs and affordable housing. 2026 Ballot Measure
On February 10, 2026, the Los Angeles County Board of Supervisors approved a June 2026 ballot measure ("County Ballot Measure”) that will ask voters whether to increase the County sales tax rate by a half-cent to offset federal funding cuts to public health services. If approved by voters, it is anticipated that the tax would generate $1 billion annually over a five-year period. As drafted, the County Ballot Measure would seek a legislative exemption from the existing 2% statutory cap on County/local sales taxes and preserve one-quarter percent (1/4%) in sales tax capacity under the statutory cap. The proposed spending plan would allocate forty-seven percent (47%) for nocost/reduced-cost health care services, five percent (5%) for school-based health programs, ten percent (10%) for public health programs, five percent (5%) for Medicaid outreach and enrollment programs, two-and-a-half percent (2.5%) for correctional health services, twenty-two percent (22%) for financial support to the Department of Health Services, five percent (5%) for non-profit hospitals, twoand-a-half percent (2.5%) for in-home supportive services, and one percent (1%) for public health programs in the Cities of Pasadena and Long Beach.
Without special legislation to exempt the County Ballot Measure from the two percent (2%) County/local statutory sales tax cap, passage of the County Ballot Measure would cause the sales tax to exceed that County/local cap and may result in the Measure not being implemented at all or only up to the available cap which could then preclude the City from thereafter enacting its own local sales tax
measure. Based on the foregoing, several cities have considered the adoption of local tax measures to preserve resources for the direct benefit of their community. In 2024, voters in the cities of Azusa and Glendora approved one-quarter percent (1/4%) transactions and use taxes to retain local control of tax resources. In these communities, voters determined that preserving local control of these tax resources was preferred over paying into future Countywide programs that may have limited local return and benefit. If both the County Ballot Measure and a local city sales tax measure are placed on the June ballot and both measures are passed by the voters, and the County Ballot Measure does not obtain special legislation to exempt it from the cap, it is uncertain whether the City may implement its sales tax measure in Covina.
February 17, 2026 Direction
During the February 17th meeting, the City Council considered these factors and requested the preparation of supplemental local transactions and use tax resolutions for the June 2, 2026 ballot that would maintain local control of revenues generated in Covina for the direct benefit of the Covina community. Further, the City Council requested to compile information regarding preliminary polling data of the County’s June Measure, draft legislation and the process for disbursing funds should both a County and local measure pass and both are determined to be subject to the Statutory Cap on County/Local sales taxes. In response, the following information is summarized for the City Council’s consideration:
Preliminary Polling Data
To date, no widely reported independent public polling data is available to support the County’s June Measure. Preliminary figures have been provided in local media coverage from local officials and advocates that there is nearly 60% support among Los Angeles County residents for a temporary tax increase to preserve public health care services.1 Draft Legislation for County’s June Measure
AB 1768 was introduced by Assembly Member Bryan on February 9, 2026. As proposed, this legislation would amend Section 7294.7 of the Revenue and Taxation Code to authorize the County of Los Angeles to levy a ½ cent sales tax for general and special purposes in excess of the of the County/Local statutory sales tax cap of 2% through December 31, 2031. CDTFA Process for Disbursing Funds Should Multiple Measures Pass Under the Statutory Cap on County/Local Sales Taxes
In reviewing this topic, one example was identified where City and County sales tax measures were approved by voters on the same ballot and it was determined that cumulatively, the measures would exceed the County/local Sales Tax Cap.
In November 2024, voters in Sonoma County approved Measure I, a countywide ¼ cent sales tax measure to fund child care, education and health care services. Also, in November 2024, voters in the City of Sebastopol approved Measure U, a ½ cent sales tax measure to fund local road improvement, public safety and general government services.
In its review of the measures, the California Department of Tax and Fee and Administration (“CDTFA”) opined that neither tax could be implemented because, when combined, both would
1 LA County Sales Take Hike Is On The Ballot In June | KFI AM 640, https://kfiam640.iheart.com/content/2026-02-13-la-county-salestake-hike-is-on-the-ballot-in-june/.
push the sales tax in the City of Sebastopol above 10.25%, the maximum sales tax currently allowed in Sonoma County by State law. The CDTFA further explained that a legal opinion from the California Attorney General’s Office or legislation from the California Legislature would be needed to implement the sales tax rates.
Resolutions and Draft Ballot Measure
To ensure that the revenues generated in Covina benefit the local community, the City Council may adopt a resolution calling for the placement for an ordinance to be submitted to Covina voters. As proposed, this measure would preserve 0.25% that is currently available under the maximum County/local transaction and use tax, or statutory cap, of two percent (2%) and help to protect and improve City initiatives and services, including public safety, infrastructure repair and local quality of life measures.
If adopted by the City Council, an Ordinance would be submitted to Covina voters at the General Municipal Election on June 2, 2026, to supplement the City’s Local Transactions and Use Tax with the following question:
Covina Public Safety, Local Control, and Accountability Measure. To maintain local funding for 911 emergency medical, fire, and police services; clean up encampments; address homelessness; improve city parks and facilities, repair streets and potholes, and provide senior and youth recreation programs, shall the City of Covina adopt an ordinance implementing a supplemental ¼ cent sales tax, providing approximately $3,000,000 annually, remaining in effect until ended by voters, with money staying in the City?
Consideration of the Supplemental Local Transactions and Use Tax Ballot Measure is intended to ensure that no other agencies can claim the 0.25% that is currently available under the maximum County/Local Transaction and Use Tax Statutory Cap. Covina residents will instead have the opportunity to vote in favor of preserving the 0.25% tax for local control and community benefit. This measure will allow the tax to remain in Covina for the residents’ direct benefit.
Other cities have taken similar actions to preserve this sales tax for local control following the repeal of Measure H in 2024, including the cities of Azusa, Glendora and South El Monte. Additionally, other cities are reportedly considering similar actions on spring 2026 ballots, including the cities of Calabasas, Diamond Bar, Gardena, Glendale, San Marino, and Westlake Village.
If it is decided not to include a local measure for Covina to preserve the 0.25% transactions and use tax, or if Covina voters do not approve the measure, other government agencies will be able to use the tax for countywide purposes or other initiatives that may not directly benefit the Covina community. The deadline to submit a ballot measure for the June 2, 2026 election is March 6th. In order to do so, the City Council will consider adopting the necessary resolutions to approve the placement of a local supplemental transactions and use tax to Covina voters on the June 2nd ballot. Draft ballot measure language has been reviewed with the CDTFA to ensure that, if approved by voters, the supplemental tax will be legally implemented.
Summary
With approximately 72% of the City’s general fund budget dedicated to local public safety services, additional funding would help with maintaining local 911 emergency medical/police/fire response services, assisting local individuals experiencing homelessness and clean up encampments, repairing
local roadways, build and improve existing City parks and facilities and provide senior and afterschool programs.
While the County’s June Measure may impact the sales tax rate in Covina, residents and the City Council have no control over its placement on the June 2, 2026 ballot. With this in mind, it is the City’s intention to educate residents on the impact of the proposed initiative and the importance of preserving local control of revenue sources generated in Covina to provide direct benefit to the Covina community.
Based on the foregoing, it is recommended that the City Council review and provide direction regarding the draft ballot measure for a supplemental local transactions and use tax for the June 2, 2026 ballot that would maintain local control of revenues generated in Covina for the direct benefit of the Covina community. Timing is of the essence regarding this matter since the deadline to submit a ballot measure for the June 2, 2026, election is March 6, 2026.
FISCAL IMPACT:
There is no fiscal impact for submitting the local transactions and use tax to Covina voters. The City will conduct its General Municipal Election on June 2, 2026 and all costs have been included in the City’s Fiscal Year 2026 operating budget.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2026-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, ORDERING THAT A GENERAL TAX MEASURE BE
SUBMITTED TO VOTERS OF THE CITY OF COVINA AT THE JUNE 2, 2026 GENERAL MUNICIPAL ELECTION FOR THE VOTERS OF COVINA
TO ESTABLISH A SUPPLEMENTAL GENERAL TRANSACTIONS AND
USE TAX (SALES TAX) AT THE RATE OF ONE-QUARTER CENT (1/4¢),
WITH THE TAX TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, the City of Covina (“City”) is authorized to levy a Transactions and Use Tax for general purposes pursuant to California Revenue and Taxation Code Section 7285.9, subject to approval by a majority vote of the electorate; and WHEREAS, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election pursuant to California Elections Code Section 9222; and
WHEREAS, on November 5, 1996, the voters of California approved Proposition 218, which amended the California Constitution to add Article XIIIC to require that all general taxes which are imposed, extended, or increased must be submitted to the electorate and approved by a majority vote of the qualified voters voting in the election; and
WHEREAS, pursuant to Proposition 218, any local election for the approval of a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government, except when the local governing body has declared a fiscal emergency by unanimous vote; and
WHEREAS, the next regularly scheduled general election at which the City Council members will be elected is the June 2, 2026 election; and WHEREAS, pursuant to California Revenue and Taxation Code Section 7285.9, a two-thirds (2/3) vote of all members of the City Council is required to place a tax measure on the June 2, 2026 ballot; and
WHEREAS, California Revenue and Taxation Code Section 7251.1 sets a combined limit of 2% on the total transactions and use taxes that a county and any city within the county may levy; and
WHEREAS, Los Angeles County voters have, for many years, used 1% of the 2% statutory limit for local sales taxes for the enactment of County Propositions A and C to fund countywide transportation and services; and
Resolution CC 2026-16 Page 2 of 7
WHEREAS, the remaining ¼ percent (one quarter of a cent ($0.0025)) of the total 2% statutory limit for local sales taxes has not been levied in the City and is subject to either County or City authorization and use; and
WHEREAS, the Board of Supervisors of Los Angeles County has placed a proposed new one-half cent sale tax measure on the June 2, 2026 ballot (the “County June Measure”), which if passed, would be used by the County for general purposes to fund medical services throughout the County; and
WHEREAS, if the County June Measure is approved by County voters and special legislation is not enacted by the Legislature to exempt the County June Measure from the 2% statutory cap, the entire remaining capacity for local city and county sales tax measures will be captured by the County; and
WHEREAS, the City has historically generated more revenue from sales taxes collected from County-imposed sales taxes than the amount that has been returned to the City for programs and purposes in the City such that if the County June Measure captures the remaining ¼ cent sales tax capacity in the City, the City will likely receive a very small percentage of the revenue in return for use in the City; and WHEREAS, the City should have local control over local taxpayer dollars to be spent on Covina City services and for the City to be more fiscally self-reliant and serve the needs of its citizens; and
WHEREAS, if the City enacts its own supplemental ¼ cent transactions and use tax, every penny of that measure would be spent on services that benefit City residents and no funds could be taken by the County, State or other local governmental entity; and WHEREAS, the City Council is reluctant to impose additional taxes on the people, but if the County intends to impose those taxes through the County June Measure, the City would rather enact its own sales tax measure during the same election to allow the City to capture the remaining ¼ cent sales tax capacity, control its use, and ensure that the revenue is spent solely for City programs and services; and WHEREAS, the City desires to obtain locally-generated funding for 911 emergency medical/fire/police response services, to clean up encampments and address homelessness, build and improve existing city parks and facilities, fix potholes and repair streets, and provide senior and afterschool programs for City residents; and WHEREAS, the City’s proposed measure would provide a reliable source of local funding for those City services; and
WHEREAS, if enacted, the City measure, which is entitled the City of Covina’s Supplemental General Transactions and Use Tax Ordinance, would impose a supplementary Transactions and Use Tax of 0.25% (one-quarter of a cent on each dollar of sales that are subject to transaction and use taxes) that would provide a protected,
Resolution CC 2026-16 Page 3 of 7
stable local source of approximately $3,000,000 annually to fund the vital City services the community relies on; and
WHEREAS, the one-quarter cent (1/4 cent) tax is a general tax, the revenue of which will be placed in the City’s general fund and used to pay for general City services, including, but not limited to, public safety services, youth and senior programs, city streets and facilities and other general purposes; and
WHEREAS, based on the recitals contained herein, the City Council intends to submit to the voters of Covina at the June 2, 2026 General Municipal Election, a measure that, commencing the first day of the first calendar quarter more than 110 days after enactment, would establish a supplemental locally-controlled general transaction and use tax of one-quarter cent (1/4 cent) on the sale, use, or both, of all tangible personal property sold at retail in the City until it is repealed by voters, as more specifically set forth herein and in the attached proposed ordinance that adds Chapter 3.19 to Title 3 of the City’s Municipal Code; and
WHEREAS, the ordinance to be considered by the voters of the City, and the terms of its approval, collection, and use of the general transaction and use tax, are described and provided for in the ordinance attached hereto as Exhibit “A”; and WHEREAS, nothing contained herein or in the ordinance attached hereto as Exhibit “A” is intended to, or shall repeal, amend or replace, the existing provisions of Chapter 3.12 (Uniform Local Sales and Use Tax) or Chapter 3.18 (the City of Covina Transactions and Use Tax Ordinance of 2018), and those existing Chapters and provisions shall remain in place and in full force and effect and will not be superseded or affected by the passage or defeat of the proposed ballot measure or the ordinance attached as Exhibit “A”.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The facts set forth in the recitals of this Resolution are true and correct, and establish the factual basis for the City Council’s adoption of this Resolution.
SECTION 2. Section 7285.9 of the California Revenue and Taxation Code authorizes any city to levy, increase, or extend a transactions and use tax for general purposes at a rate of 0.125 percent, or a multiple thereof, subject to approval by a twothirds vote of all of the members of the City Council and by a majority of the qualified voters of the City voting in an election on the issue.
SECTION 3. By Resolution CC 2026-18, adopted on March 3, 2026, the City Council has previously called and given notice of the General Municipal Election to be held in the City on June 2, 2026, and to be consolidated with the statewide general election conducted on the same date. Pursuant to California Elections Code Sections 9222 and 10201, the City Council hereby orders the submittal of the City of Covina’s
Resolution CC 2026-16 Page 4 of 7
Supplemental General Transactions and Use Tax Ordinance to the voters for consideration. The full text of the City of Covina Supplemental Transactions and Use Tax Ordinance is attached to this Resolution as Exhibit “A” and incorporated herein by reference. The measure to be submitted to the voters shall appear and be printed on the ballot substantially in the following form:
Covina Public Safety, Local Control, and Accountability Measure Covina Public Safety, Local Control, and Accountability Measure. To maintain local funding for 911 emergency medical, fire, and police services; clean up encampments; address homelessness; improve city parks and facilities, repair streets and potholes, and provide senior and youth recreation programs, shall the City of Covina adopt an ordinance implementing a supplemental ¼ cent sales tax, providing approximately $3,000,000 annually, remaining in effect until ended by voters, with money staying in the City?
YES
NO
SECTION 4. The City Council, by at least 2/3 vote, hereby approves and submits the Measure to the voters to adopt the proposed Covina Transactions and Use Tax Ordinance, which is attached to this Resolution as Exhibit “A”. The City Council approves the proposed Ordinance that will adopt a supplemental general tax, as defined in Article XIIIC of the California Constitution, supplemental to existing sales and uses taxes, and is at a rate of 0.25% on transactions and uses in the City as defined in the Ordinance, to be collected by the California Department of Tax and Fee Administration. As a general tax, the Ordinance shall not take effect unless and until approved by a vote of at least a majority of the qualified voters voting on the question at the June 2, 2026 election and shall remain in effect until repealed by the voters.
SECTION 5. The City Attorney is hereby directed to prepare an impartial analysis of the measure pursuant to California Elections Code Section 9280. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect and operation of the Measure, and to transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point font and in bold type, the following: “The above statement is an impartial analysis of the City of Covina’s Supplemental General Transactions and Use Tax Ordinance or Measure __. If you desire a copy of the ordinance
Resolution CC 2026-16 Page 5 of 7
or measure, please call the Office of the City Clerk at (626) 384-5430 and a copy will be mailed at no cost to you.”
SECTION 6. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. All persons qualified and registered to vote in the City of Covina as of the date of such election shall be entitled to vote.
SECTION 7. The City Clerk is authorized, instructed, and directed to coordinate with the Los Angeles County Registrar-Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. The ballots to be used at the election shall be in form and content as required by law.
SECTION 8. Notice of the time and place of holding the election on the Measure is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in the time, form and manner as required by law, and to publish a synopsis of the measure as required by law.
SECTION 9. That the City Council authorizes the Los Angeles County RegistrarRecorder/County Clerk to conduct the election and canvass the results, and all reasonable and actual election expenses incurred by the County shall be paid by the City upon presentation of a properly submitted bill.
SECTION 10. The full text of the Measure shall be printed in the voter information guide. A statement shall be printed in that guide pursuant to California Elections Code Section 9223 advising voters that they may obtain a copy of this Resolution and the Measure and the Ordinance, at no cost, upon request made to the City Clerk.
SECTION 11. Pursuant to California Elections Code Section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the City Clerk’s Office of the specific dates that the examination period will run.
SECTION 12. The City Council finds and determines that the Measure relates to organizational or administrative activities of government that will not result in the direct or indirect physical changes to the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15378(b)(5).
SECTION 13. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
Resolution CC 2026-16 Page 6 of 7
SECTION 14. The City Clerk is hereby directed to submit a complete certified copy of this Resolution to the Los Angeles County Registrar of Voters Office and the Los Angeles County Board of Supervisors no later than March 6, 2026.
SECTION 15. The Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
SECTION 16. This Resolution shall become effective upon its adoption.
APPROVED and PASSED this 3rd day of March, 2026.
City of Covina, California
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 2026-16 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3rd day of March, 2026, 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
1 ORDINANCE ___
AN ORDINANCE ADOPTED BY THE PEOPLE OF THE CITY OF
COVINA, CALIFORNIA, ADDING CHAPTER 3.19 TO THE MUNICIPAL
CODE TO ENACT A SUPPLEMENTAL ONE-QUARTER PERCENT
(1/4%) GENERAL TRANSACTIONS AND USE TAX (SALES TAX), TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code Section 7285.9, the City of Covina (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and
WHEREAS, the People of the City desire to add a new Chapter 3.19 (Supplemental Transactions and Use Tax) to Title 3 (Revenue and Finance) of the Covina Municipal Code, establishing a Supplemental General Transactions and Use Tax until ended by the voters, on the sale, use, or both the sale and use of all tangible personal property sold at retail in the City, at a rate of one-quarter cent (1/4 cent).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF COVINA DO HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Title and Text. This Ordinance shall be known as the “Covina Supplemental General Transactions and Use Tax,” the full text of which is set forth in Attachment “1,” attached hereto and incorporated herein by reference.
SECTION 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) of all members of the City Council on March 3, 2026.
SECTION 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Covina voting at the General Municipal Election of June 2, 2026. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter.
SECTION 4. Operative Date. “Operative Date” for the Covina Supplemental General Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted.
SECTION 5. Amendments. This Chapter may be amended by the City Council without a vote of the people, except that,.as required by Article XIII C of the California Constitution, voter approval is required for any amendment provision that would increase the rate of any tax levied pursuant to this Ordinance. The people of the City of Covina affirm that the deletion, restoration, relocation, renumbering, amendment or alteration of the provisions of this Chapter and any provision of this Ordinance or provision of the
2 Municipal Code adopted by this Ordinance is authorized and may be acted upon by the City Council without a vote of the people, provided that such action does not establish any new tax or increase any existing tax.
SECTION 6. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 7. Effective Date and Termination. This Ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon approval by the voters and shall remain in effect until repealed by the voters of the City of Covina.
I hereby certify that the Covina Supplemental General Transactions and Use Tax Ordinance was submitted to the voters by the City Council at a regular meeting of the City Council of the City of Covina on the 3rd day of March, 2026, and PASSED, APPROVED, AND ADOPTED by the voters of the City of Covina on the 2nd day of June, 2026.
City of Covina, California
VICTOR LINARES, Mayor
ATTEST:
_______________________________
FABIAN VELEZ, Chief Deputy City Clerk
APPROVED AS TO FORM:
________________________
Kevin Ennis, City Attorney
3 Attachment 1
Chapter 3.19 (“Supplemental General Transactions and Use Tax”) of Title 3 (“Revenue and Finance”) is hereby added to the Covina Municipal Code to read as follows:
“CHAPTER 3.19
SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX
Sections:
3.19.010 - Short Title.
3.19.020 - Operative Date.
3.19.030 - Purpose.
3.19.040 - Contract With State
3.19.050 - Transactions Tax Rate.
3.19.060 - Place of Sale.
3.19.070 - Use Tax Rate.
3.19.080 - Adoption of Provisions of State Law.
3.19.090 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.19.100 - Permit Not Required.
3.19.110 - Exemptions and Exclusions.
3.19.120 - Amendments.
3.19.130 - Enjoining Collection Forbidden.
3.19.140 - Duration of Tax.
Sections:
3.19.010. SHORT TITLE. This chapter shall be known as the “Covina Supplemental General Transactions and Use Tax Ordinance of 2026.” The City of Covina hereinafter shall be called “City.” This chapter shall be applicable in the incorporated territory of the City.
3.19.020. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the approval of this ordinance, the date of adoption being set as forth below.
3.19.030. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a supplemental retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, authorizing the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
4 B. To adopt a supplemental retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a supplemental retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
D. To adopt a supplemental retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
E. Nothing contained in this Chapter is intended to, or shall repeal, amend or replace, the existing provisions of Chapter 3.12 (Uniform Local Sales and Use Tax) or Chapter 3.18 (the City of Covina Transactions and Use Tax Ordinance of 2018), and those existing Chapters and provisions shall remain in place and in full force and effect and will not be superseded or affected by the adoption of this Chapter 3.19.
3.19.040. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.19.050. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a supplemental tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.25 percent (1/4%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
3.19.060. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and
5 regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.19.070. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.25 percent (1/4%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.19.080. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.19.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of the City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
6 B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203. “A retailer engaged in business in the City” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.19.100. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.
3.19.110. EXEMPTIONS AND EXCLUSIONS.
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial
vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
7 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance, in which case the tax rate shall be the rate in effect in the City prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance, in which case the tax rate shall be the rate in effect in the City prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance, in which case the tax rate shall be the rate in effect in the City prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
8 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.19.120. AMENDMENTS. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.19.130. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.19.140. DURATION OF TAX. The tax imposed by this Chapter shall continue until this ordinance is repealed.”
ATTACHMENT B
RESOLUTION CC 2026-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, PROVIDING AND SETTING THE RULES FOR FILING OF
PRIMARY AND REBUTTAL ARGUMENTS REGARDING A CITY
MEASURE TO BE SUBMITTED AT THE JUNE 2, 2026, GENERAL
MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Covina, California, on June 2, 2026, at which there will be submitted to the voters the following measure, which would add Chapter 3.19 to Title 3 of the Covina Municipal Code, thereby establishing a supplemental general transactions and use tax at the rate of one-quarter cent (1/4 cent) (“Sales Tax Measure”):
Covina Public Safety, Local Control, and Accountability Measure:
Covina Public Safety, Local Control, and Accountability Measure. To maintain local funding for 911 emergency medical, fire, and police services; clean up encampments; address homelessness; improve city parks and facilities, repair streets and potholes, and provide senior and youth recreation programs, shall the City of Covina adopt an ordinance implementing a supplemental ¼ cent sales tax, providing approximately $3,000,000 annually, remaining in effect until ended by voters, with money staying in the City?
Yes
No
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Primary Arguments. Pursuant to Article 4, Chapter 3, Division 9 of the California Elections Code, including Section 9282, the City Council authorizes: (i) the City Council or any member(s) of the City Council; (ii) any individual voter eligible to vote on the Sales Tax Measure; (iii) a bona fide association of such citizens; or (iv) any combination of voters and associations, to file a direct written argument in favor of or against the Sales Tax Measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, and to change the arguments until and including the date fixed below by the City Clerk, after which no arguments for or against the City Measure may be submitted to the City Clerk.
The City Clerk, who serves as the designated City Elections Official, declares that the deadline to submit arguments for or against the Sales Tax Measure pursuant to this Resolution is March 13, 2026, at 5:00 p.m.. Each argument shall not exceed 300 words and shall be filled with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
Resolution CC 2026-17 Page 2 of 3
SECTION 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the arguments for and against a City measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the author(s) of the argument against, and copies of the argument against to the author(s) of the argument in favor. The author(s), or a majority of the authors, may prepare and submit rebuttal arguments not exceeding 250 words or may authorize, in writing, others to submit a rebuttal argument.
The rebuttal argument may not be signed by more than five authors. A rebuttal argument shall be filed with the City Clerk, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers pursuant to Section 9283 of the Elections Code, not later than March 23, 2026 at 5:00 p.m., which date is not more than 10 days after the final date for filing direct arguments in accordance with Section 9285 of the Elections Code. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
SECTION 3. Multiple Arguments. In the event that more than one argument for or against the Sales Tax Measure is timely submitted, the City Clerk shall select one of the direct arguments and one of the rebuttal arguments against the Sales Tax Measure for printing and distribution to voters. The City Clerk shall give preference and priority first, to arguments submitted by the City Council or a member or members of the City Council; second, to individual voters or bona fide associations who are the bona fide sponsors or proponents of the Sales Tax Measure; third, to other bona fide associations; and lastly, to other individual eligible voters, as set forth in Section 9287 of the Elections Code.
SECTION 3. Prior Resolutions. All previous resolutions providing for the filing of primary and rebuttal arguments for measures are repealed.
SECTION 4. June 2, 2026 Election. The provisions of Section 1 and 2 shall apply only to the election to be held on June 2, 2026, and shall thereafter be repealed.
SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
APPROVED and PASSED this 3
rd day of March, 2026.
City of Covina, California
BY:
VICTOR LINARES, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
Resolution CC 2026-17 Page 3 of 3
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, California, do hereby certify that Resolution CC 2026-17 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of March, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
_____________________________________
FABIAN VELEZ, Chief Deputy City Clerk
ATTACHMENT C
RESOLUTION CC 2026-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE
COUNTY OF LOS ANGELES TO CONSOLIDATE A GENERAL
MUNICIPAL ELECTION TO BE HELD ON JUNE 2, 2026 WITH THE
STATEWIDE PRIMARY ELECTION TO BE HELD ON THAT DATE
PURSUANT TO SECTION 10403 OF THE CALIFORNIA ELECTIONS
CODE FOR THE PURPOSES OF HAVING THE VOTERS OF THE CITY
OF COVINA CONSIDER A MEASURE AND ORDINANCE TO
ESTABLISH A SUPPLEMENTAL GENERAL ONE-QUARTER CENT
(1/4¢), TRANSACTIONS AND USE TAX
WHEREAS, on January 20, 2026, the City Council of the City of Covina adopted Resolution CC 2026-09 giving notice of the holding of a City of Covina General Municipal Election to be held on Tuesday, June 2, 2026 for the election of certain City officers and requesting that the election be conducted by the Registrar of Voters of Los Angeles County; and
WHEREAS, on January 20, 2026, the City Council of the City of Covina also adopted Resolution CC 2026-10, requesting the Board of Supervisors of the County of Los Angeles to consolidate the City’s General Municipal Election to be held on June 2, 2026 with the Statewide Primary Election to be held on the same date; and WHEREAS, on March 3, 2026, the City Council of the City of Covina adopted Resolution CC 2026-16, ordering that a general tax measure be submitted to the voters at the General Municipal Election to be held on June 2, 2026 for the purpose of submitting to the voters the question relating to adoption of a one-quarter cent Supplemental General Transactions and Use Tax; and
WHEREAS, it is therefore desirable that the General Municipal Election for that ballot measure be consolidated with the Statewide Primary Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of Los Angeles canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Request for Consolidation. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide Primary Election on Tuesday, June 2, 2026, for the purpose of submitting to the voters the following question relating to the Supplemental Transactions and Use Tax.
SECTION 2. Measure Language. A measure is to appear on the ballot as follows:
Resolution CC 2026-18 Page 2 of 3
Covina Public Safety, Local Control, and Accountability Measure:
Covina Public Safety, Local Control, and Accountability Measure. To maintain local funding for 911 emergency medical, fire, and police services; clean up encampments; address homelessness; improve city parks and facilities, repair streets and potholes, and provide senior and youth recreation programs, shall the City of Covina adopt an ordinance implementing a supplemental ¼ cent sales tax, providing approximately $3,000,000 annually, remaining in effect until ended by voters, with money staying in the City?
Yes
No
SECTION 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Pursuant to California Elections Code Sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election.
SECTION 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.
SECTION 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide Primary Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Covina is authorized and directed to pay for the expenses incurred after receiving a statement from the County of Los Angeles.
SECTION 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Los Angeles.
SECTION 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
APPROVED and PASSED this 3
rd day of March, 2026.
City of Covina, California
VICTOR LINARES, Mayor
Resolution CC 2026-18 Page 3 of 3
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 2026-18 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 3
rd day of March, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
DATED:
FABIAN VELEZ, Chief Deputy City Clerk