CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING
AUTHORITY/COVINA HOUSING AUTHORITY JOINT MEETING
AGENDA
Tuesday, May 5, 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.
Members of the public may view the meeting live on the City’s website at www.covinaca.gov or on local cable television, Spectrum Channel 29 and Frontier Channel 42. To view from the website, click here or scroll down on the home page and click "City Meetings", once on the page, click the highlighted word next to Video Library under the City Council Meeting Agendas and Minutes header.
A live banner will appear at the start of the meeting.
Public Comments: Time is reserved during the Public Comments portion of the meeting for those in the audience who wish to address the City Council on items listed on the agenda (e.g. Consent Calendar, Continued Business, and New Business items) and items not listed in the agenda within the subject matter jurisdiction of the City Council, except for Public Hearing items. Members of the audience will have the opportunity to address the Council/Agency/Authority regarding Public Hearing items at the time the public hearing is held.
All communications are to be addressed directly to the City Council and not to the members of the audience. Each speaker is limited to a total of 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.
Meeting Assistance Information: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or 626-384-5430. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Pages
JOINT MEETING—CLOSED SESSION 6:30 PM
CLOSED SESSION - WILL NOT BE HELD
JOINT MEETING—OPEN SESSION 7:30 PM
CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, John C. King, Victor Linares, Mayor Pro Tem/Vice Chair Patricia Cortez, and Mayor/Chair Hector Delgado
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Cortez.
INVOCATION
Given by Covina Police Chaplain Chuck Cannizzaro.
APPROVAL OF AGENDA
PRESENTATIONS
A. Municipal Clerk's Week Proclamation
B. National Public Works Week Proclamation
C. National Police Week Proclamation
D. Small Business Week Proclamation
E. Southern California Edison Scholarship Presentation
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 7
Staff Recommendation:
Approve the Minutes of the March 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 15
Staff Recommendation:
Approve Payment of Demands in the amount of $3,740,043.07.
CC 3. City of Covina Investment Report for Month Ended March 31, 2026 23 Staff Recommendation:
Receive and File.
CC 4. Request to Cancel the Regular City Council Meeting of May 19, 2026
41 Staff Recommendation:
That the City Council consider cancelling the regular scheduled City Council Meeting of May 19, 2026.
CC 5. Confirmation of Mayor’s Appointments to Intergovernmental Agencies
43 Staff Recommendation:
Approve the Mayor’s appointments of delegates and alternates to Intergovernmental Agencies.
CC 6. Resolution CC 2026-28 Adopting the Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street as the City of Covina’s Fiscal Year 2027 Senate Bill 1 (SB 1) Projects
47 Staff Recommendation:
Adopt Resolution CC 2026-28 adopting the East Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects and reserving all FY 2026-2027 RMRA funds for project construction costs.
CC 7. Award of Contract to Air-Bree Heating & A/C Inc. for Covina Public Library AC Unit Repair Project in the amount of $33,885.00 55 Staff Recommendation:
Approve award of contract for the Air-Bree Heating & A/C Inc. for Covina Public Library HVAC Repair Project in the amount of $33,885.00 and authorize the City Manager to execute the contract; and
1. Authorize a contingency amount of $3,000 (approximately 10% of construction costs) for any unforeseen circumstances.
2. CC 8. AB481 Annual Report for 2025 81
Staff Recommendation:
Review and Approve AB481 Annual Report for 2025.
CC 9. Memorandum(s) of Understanding with Covina Valley Unified and Charter Oak Unified and School Districts Regarding School Resource Officers
101
Staff Recommendation:
Approve the two Memorandum of Understanding (MOU) to assign School Resource Officers (SRO) within Covina Valley Unified and Charter Oak Unified School Districts and authorize the City Manager or his designee to execute the MOUs.
CC 10. Investment Policies for Fiscal Year 2026-2027 for the City of Covina and Successor Agency to the Covina Redevelopment Agency 111
Staff Recommendation:
Adopt Resolution CC 2026-29 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2026-2027 and adopt Successor Agency Resolution SA 2026-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2026-2027.
CC 11. Purchase Order Authorization for Furniture, Fixtures, and Equipment (FFE) and Installation in the Amount of $111,862.85 for the Covina Recreation Village Project – Phase I – West Gymnasium Building 149
Staff Recommendation:
Authorize staff to issue a Purchase Order to National Business Furniture in the amount of $111,862.85;
1. Authorize a contingency amount of $10,000 for any unforeseen conditions; and
2. Approve Resolution CC 2026-30 appropriating $121,862.85 in Measure CC Fund – Fund Balance to be transferred into the Parks CIP Fund for use towards the purchase and installation of FFE for the Covina Recreation Village Project – Phase I – West Gymnasium Building.
3. CC 12. City Council Chambers CableCast System Server Upgrade 153 Staff Recommendation:
Authorize the City Manager to execute the contract with KeyCode Media in the amount of $25,790.11 to upgrade servers located in the City Council Chambers.
NEW BUSINESS
NB 1. Adoption of the Fiscal Year 2026-27 Budget, Fiscal Year 2027-2031 Capital Improvement Program (CIP) and Fiscal Year 2026-27 CIP Budget
163
Staff Recommendation:
Adopt Resolution CC 2026-31 adopting the City of Covina budget for July 1, 2026 through June 30, 2027;
1. Adopt Resolution SA 2026-03 adopting the operating budget for the City of Covina Successor Agency for July 1, 2026 through June 30, 2027; and
2. Adopt Resolution CC 2026-32 adopting the Fiscal year 2027- 2031 Capital Improvement Program and the Fiscal Year 2026-27
3.
Capital Improvement Program Budget.
ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, June 2, 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
March 3, 2026, 7:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Walter Allen, III Councilmember Patricia Cortez
Councilmember John C. King
Mayor 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
City Attorney Kevin Ennis
Assistant City Manager Angel Carrillo
Interim Parks & Recreation/Library Services Director Krystal Smith Public Works Director Rafael M. Fajardo
Finance Director Theresa Franke
Chief Deputy City Clerk Fabian Velez
Staff Absent: Community Development Director/Deputy City Manager Brian Lee _____________________________________________________________________
2 JOINT MEETING—CLOSED SESSION 6:30 PM
CLOSED SESSION - WAS NOT HELD
JOINT MEETING—OPEN SESSION 7:30 PM
CALL TO ORDER
Mayor Linares called the Council/Agency/Authority meeting to order at 7:30 p.m. with all Councilmembers present.
ROLL CALL
PLEDGE OF ALLEGIANCE
Led by Councilmember Cortez.
INVOCATION
Given by Covina Police Chaplain Steve Martinez.
APPROVAL OF AGENDA
Motion made by: Mayor Pro Tem Delgado
Seconded by: Councilmember Allen
Approve the agenda as presented.
Approved (5 to 0)
PRESENTATIONS
A. American Red Cross Month Proclamation
Mayor Linares read a proclamation declaring March 2026 as American Red Cross Month in the City of Covina and presented the proclamation to Covina Police Chief Walczak and American Red Cross representative Micah Forbes.
Mr. Forbes thanked the City for their partnership and encouraged the community to donate on March 17 at the Covina Parks & Recreation Center.
B. SGVCARE
San Gabriel Valley Council of Governments (SGVCOG) Program Manager and Senior Analyst Samuel Pederson provide information on the SGVCOG's SGVCARE program partnering with the Covina Police Department to provide social services. SGVCARE Program Director Giovanni Godoy and Clinical Supervisor Sandra Walt shared success stories from the program.
3 PUBLIC COMMENTS
Speaker Number 1 commented on the lack of productive housing services, opposition to Continued Business item CB 1, first amendment rights, and current political practices.
City Attorney Ennis clarified that the language and comments just provided do not reflect the value of the City.
Uriel Delgadillo-Ulloa expressed dissatisfaction with a prior incident involving the Police Department and court system and progress toward resolution.
Neil Polzin spoke of Mayor Linares' financial history, personal connections between Councilmembers and Mike and Angela Touhey, contributions received by Joe Valdez of PCAM and subsequent contract approvals, requested local campaign finance reform, and questioned the need for Continued Business item CB 1.
Diego Flores thanked Councilmember Cortez and Mayor Linares for their support to the Charter Oak High School athletics program.
Jeanette Flores, Charter Oak Unified School District Board of Trustees member, thanked City Clerk Aleman for his efforts in registering and preregistering students from Charter Oak High School and read a comment on behalf of Isabella Gonzales who thanked Councilmember Cortez for her support of her cheer leading teammates.
JD Sanchez also thanked Councilmember Cortez for her donations to the Charter Oak High School football program.
Cassy Flores read a comment on behalf of Alejandra Flores thanking Councilmember Cortez for her leadership during an internship program with the Upper San Gabriel Valley Municipal Water District and noted the importance of recognizing women leaders during Women's History Month.
Public Speaker Number 2 stated dissatisfaction with the name used to provide their public comments and expressed dissatisfaction with current policing standards regarding members of public agencies and office.
Public speaker 3 thanked the Covina Police Department and Los Angeles County Fire Department for their work on a recent residential fire, stated support for maintaining tax revenue on a local level, emphasized the priority of public safety, and thanked the City Council for their work.
COUNCIL/AGENCY/AUTHORITY COMMENTS
Councilmember Allen thanked the Covina Police Department and Los Angeles County Fire Department for their work with the recent fire and gave kudos to Police Department officers and civilians for all their work.
Councilmember King expressed his enjoyment with being able to read to children at the library with Councilmember Cortez in honor of Dr. Seuss' birthday and encouraged everyone to get their library card. He also thanked the Parks & Recreation Department and Library Services division for their work.
Mayor Pro Tem Delgado recognized Women's History Month and the contributions of women throughout the community and encouraged continued progress to ensuring equity and resources for women to reach their full potential.
4 Councilmember Cortez shared a story regarding Women's History Month, thanked Mayor Pro Tem Delgado for recognizing Women's History Month, thanked the students who provide public comments, and requested that staff provide a resolution to honor the women of Covina. She also thanked Interim Parks & Recreation/Library Services Director Smith and Library Manager Petra Morris for their work and stated she enjoyed being able to participate in the reading event.
Mayor Linares commended Councilmember Cortez for her great work with the City and all she has done to give back. He also invited the community to the library's Disneyland Trivia night, taking place March 11, 2026, from 5:45 p.m. to 7:00 p.m., and the Breakfast with the Bunny event, taking place at Heritage Plaza on March 28, 2026, from 9:00 a.m. to 12:00 p.m. in conjunction with the Covina Kiwanis Club
CITY MANAGER COMMENTS
City Manager Marcarello requested that the City Council consider continuing Public Hearing item PH 1 to the next regular City Council meeting due to the unintentional exclusion of an attachment to the item within the agenda packet.
Police Chief Walczak honor recently deceased Covina Police Department retirees Detective Ron Clark and Officer Dennis Till and provided background on the officers' work with the Police Department.
CONSENT CALENDAR
CC 1. Minutes
Motion made by: Councilmember Allen
Seconded by: Councilmember King
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.
Approved (5 to 0)
CC 2. Payment of Demands
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Approve Payment of Demands in the amount of $3,080,035.06.
Approved (5 to 0)
CC 3. City of Covina Investment Report for Month Ended January 31, 2026 Motion made by: Councilmember Allen
Seconded by: Councilmember King
Receive and File.
Approved (5 to 0)
5 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
Motion made by: Councilmember Allen
Seconded by: Councilmember King
Approve Professional Services Agreement Authorizing the Project.
Approved (5 to 0)
CC 5. Native Garden Open Space Project – Covina Recreation Village Project – Project No. P2202 – Final Acceptance and Filing Notice of Completion
Motion made by: Councilmember Allen
Seconded by: Councilmember King
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.
Approved (5 to 0)
CC 6. Adoption of Ordinance 26-01
Motion made by: Councilmember Allen
Seconded by: Councilmember King
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”.
Approved (5 to 0)
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) 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)”.
6 Mayor Linares opened the public hearing and announced the item will be continued to the March 17, 2026, City Council meeting.
CONTINUED BUSINESS
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:
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.
The PowerPoint presentation was provided by City Manager Marcarello.
Discussion from the City Council included the dissatisfaction with the pending County tax ballot measure, the need for local voters to determine where tax revenues are kept, previous issues with the accounting and distribution of County tax revenues, support for the County tax ballot measure, the desire to avoid tax increases, and the need to provide information to local voters on the proposed County and City tax ballot measures.
Questions and responses included if proposed legislation would exempt cities from the proposed County tax, to which City Manager Marcarello informed that the exemption would only apply to the state cap regarding sales tax; if the failure to pass the County tax measure would affect the implementation of the City tax measure, city staff responded that failure of
7 the passage of the County tax measure would not nullify the City tax measure but the proposed City tax measure includes language allowing the City Council to lower the tax rate to zero if desired; and if the City tax measure will still be required to appear on the ballot if the County tax measure fails, City Attorney Ennis confirmed it will.
Councilmember King and Councilmember Cortez stated they would volunteer to be involved with the drafting and signing of the ballot statement for the City tax measure.
Motion made by: Councilmember King
Seconded by: Councilmember Cortez
That the City Council:
1. Adopt 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. Adopt 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. Adopt 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. Designate Councilmember King and Councilmember Cortez to draft and sign the ballot argument in support of the local measure.
Approved (5 to 0)
ADJOURNMENT
At 8:46 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, March 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: May 5, 2026
Title: Payment of Demands
Presented by: Theresa Franke, Director of Finance
Recommendation: Approve Payment of Demands in the amount of $3,740,043.07.
EXECUTIVE SUMMARY:
Attached is a list of warrants and demands which are being presented for approval and are summarized as follows:
Accounts Payable Warrants April 3, 2026 – April 16, 2026 CITY checks/EFTs $ 2,434,890.43
CITY payroll $ 1,295,817.14
CITY voids $ (145.71)
Worker’s Comp $ 9,481.21
$ 3,740,043.07
SACRA checks/EFTs $ 0.00
SACRA payroll $ 0.00
$ 0.00
TOTAL checks/EFTs $ 3,740,043.07
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
Apr 3, 2026 - Apr 16, 2026
Check # Check Date Vendor Name Amount
6087 04/09/2026 4003 MidAmerica 2,443.44
6088 03/30/2026 1364 HOME DEPOT CREDIT SERVICES 10,146.94 6089 02/02/2026 477 STATE OF CA 4,491.00
21096 04/09/2026 788 COVINA, CITY OF 55,561.46 *
21097 04/09/2026 789 COVINA-FSA, CITY OF 1,920.33
21098 04/09/2026 2033 NATIONWIDE RETIREMENT SOLUTIONS 32,579.52 21099 04/09/2026 788 COVINA, CITY OF 95.71
21100 04/09/2026 2033 NATIONWIDE RETIREMENT SOLUTIONS 7,875.00 21101 04/09/2026 487 CalPERS 114,538.09
21102 04/09/2026 487 CalPERS 7,001.60
subtotal EFT/wires/direct deposits $236,653.09
Internal transfers - workers comp allocation - no net cash effect (55,561.46) * subtotal EFT/wires/direct deposits less Internal Transfers $181,091.63 130978 04/08/2026 19 AARDVARK 1,157.63
130979 04/08/2026 32 ACE-1 AUTO SERVICE 240.00
130980 04/08/2026 85 AJAX SIGN GRAPHICS INC 26.52
130981 04/08/2026 113 ALL CITY MANAGEMENT SVC 16,032.86 130982 04/08/2026 128 ALLIANT INSURANCE SERVICES INC 506.00 130983 04/08/2026 151 AMERICAN LIBRARY ASSOC 550.00
130984 04/08/2026 239 AUTOZONE INC 119.21
130985 04/08/2026 430 BUILDING ELECTRONIC CONTROLS 525.00 130986 04/08/2026 649 CINTAS CORP #693 440.28
130987 04/08/2026 700 COLLEY FORD 344.22
130988 04/08/2026 766 COVINA DISPOSAL CO 20,016.24
130989 04/08/2026 783 CITY OF COVINA WATER 717.28
130990 04/08/2026 878 DELTA DENTAL OF CALIFORNIA 122.02 130991 04/08/2026 958 E.H. WACHS COMPANY 611.04
130992 04/08/2026 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 552.00 130993 04/08/2026 962 SUPERIOR COURT OF CALIFORNIA, CNTY OF LOS ANGELES 9,552.50 130994 04/08/2026 970 EDISON CO 109,970.12
130995 04/08/2026 1075 WEX BANK 206.38
130996 04/08/2026 1156 THE GAS COMPANY 1,307.68
130997 04/08/2026 1215 GONZALES, RICHARD 378.00
130998 04/08/2026 1235 GRAINGER 207.39
130999 04/08/2026 1241 GRAND PRINTING 714.49
131000 04/08/2026 1255 GRISWOLD INDUSTRIES 7,239.33
131001 04/08/2026 1352 HINDERLITER DELLAMAS & ASSOC 548.99 131002 04/08/2026 1437 INTER-CON SECURITY SYSTEMS INC 18,423.25 131003 04/08/2026 1561 KEYSTONE UNIFORM DEPOT 418.56
131004 04/08/2026 1646 LANGUAGE LINE SERVICES INC 68.62 131005 04/08/2026 1710 LIFELOC TECHNOLOGIES INC 215.12
131006 04/08/2026 2027 NAPA AUTO PARTS 300.41
131007 04/08/2026 2091 O REILLY AUTO PARTS 251.48
131008 04/08/2026 2163 PACIFIC PARKING SYS INC 365.20
131009 04/08/2026 2275 POIRIER, ROBERT 131.25
131010 04/08/2026 2415 REPUBLIC MASTER CHEFS 476.12
131011 04/08/2026 2736 STAPLES BUSINESS ADVANTAGE 4,139.56 131012 04/08/2026 2818 GABE BF VAN LEEUWEN 105.00
131013 04/08/2026 2846 THOMAS, TERRI 643.30
131014 04/08/2026 2855 CHARTER COMMUNICATIONS 156.55
131015 04/08/2026 2935 UNDERGROUND SERVICE ALERT 145.45 Attachment A Page 1 of 5
CITY OF COVINA
Check Register
Apr 3, 2026 - Apr 16, 2026
Check # Check Date Vendor Name Amount
131016 04/08/2026 2958 US POSTMASTER 6,378.27
131017 04/08/2026 2958 USPS - POC ACCOUNT #8098154 882.75 131018 04/08/2026 2966 V & V MANUFACTURING 868.20
131019 04/08/2026 3023 VULCAN MATERIALS COMPANY 1,223.68 131020 04/08/2026 3082 WESTERN WATER WORKS SUPPLY 1,851.99 131021 04/08/2026 3190 LAYNE, JONATHAN DANIEL 444.50
131022 04/08/2026 3235 COOK, SHAWNA 571.20
131023 04/08/2026 3293 BAVCO 2,610.35
131024 04/08/2026 3729 SUNBELT RENTALS INC 1,021.61
131025 04/08/2026 3735 QUADIENT LEASING USA, INC. 852.77 131026 04/08/2026 3771 BLACK & WHITE EMERGENCY VEHICLES 813.81 131027 04/08/2026 3982 CAROL A CUGNO 414.00
131028 04/08/2026 3988 LANDSCAPE WAREHOUSE III 45.08
131029 04/08/2026 4065 VERIZON WIRELESS 2,157.55
131030 04/08/2026 4077 INTERWEST CONSULTING GROUP INC 17,086.00 131031 04/08/2026 4089 MEASOM, DEVIN THOMAS 789.60
131032 04/08/2026 4350 RKA Consulting Group 16,282.50
131033 04/08/2026 4360 MOORE IACOFANO GOLTSMAN, INC. 9,928.75 131034 04/08/2026 4455 FRONTIER 657.19
131035 04/08/2026 4483 DALE A. GARRISON 229.00
131036 04/08/2026 4676 Hill Brothers Chemical Company 1,696.18 131037 04/08/2026 4694 Leslie's Poolmart Inc 904.15
131038 04/08/2026 4704 S & J Supply Company, Inc. 7,905.23 131039 04/08/2026 4710 Fidelity Security Life Insurance Company 8.62 131040 04/08/2026 4714 CIR, Inc. 40,715.63
131041 04/08/2026 4764 UniFirst Corporation 206.89
131042 04/08/2026 4766 HASA, INC. 1,436.35
131043 04/08/2026 4804 Vihulu L. Villagran 126.00
131044 04/08/2026 4829 Alicia A. Flores 50.40
131045 04/08/2026 4833 Michael R. Hillmann 4,000.00
131046 04/08/2026 4854 CEJ Engineers, Inc. 53,360.00
131047 04/08/2026 4977 Enterprise FM Trust 4,602.62
131048 04/08/2026 5075 Amalia Q. Seresinghe 627.20
131049 04/08/2026 5166 Project 29:11, A Community Development Corp. 2,000.00 131050 04/08/2026 5186 DAYSMART SOFTWARE 820.02
131051 04/08/2026 5228 ODP BUSINESS SOLUTIONS, LLC 46.58 131052 04/08/2026 5233 RODENT PEST TECHNOLOGIES 146.21
131053 04/08/2026 5251 DANIEL'S TIRE SERVICE 2,541.10
131054 04/08/2026 5269 CONTROL AIR ENTERPRISES LLC. 605.00 131055 04/08/2026 5291 AMAZON CAPITAL SERVICES, INC 1,881.92 131056 04/08/2026 5423 SUSAN T SCHOCK 106.40
131057 04/08/2026 5425 AQMNI LLC 2,399.99
131058 04/08/2026 5439 PARKWOOD LANDSCAPE MAINTENANCE INC 21,418.73 131059 04/08/2026 5445 MARGARET L SMITH 196.00
131060 04/08/2026 5521 COMPRESSOR DESIGN AND SERVICES INC 1,425.00 131061 04/08/2026 5531 CU TECHNOLOGY LLC / ACORN TECHNOLOGY SERVICES 21,250.00 131062 04/08/2026 5550 LEAH DAWN OSIER 677.60
131063 04/08/2026 5573 GUARDIAN ALLIANCE TECHNOLOGIES, INC. 130.00 131064 04/08/2026 5603 KAYLEE L BARNITT 708.40
131065 04/08/2026 5626 JENNIFER KOU 518.50
131066 04/08/2026 5641 ANTONIO IBARRA VEGA 189.00
Attachment A Page 2 of 5
CITY OF COVINA
Check Register
Apr 3, 2026 - Apr 16, 2026
Check # Check Date Vendor Name Amount
131067 04/08/2026 5655 COVINA VALLEY WATER COMPANY 264,398.84 131068 04/08/2026 5690 ELPS CAR WASH 59.98
131069 04/08/2026 5722 ANTHONY FILKINS 168.00
131070 04/08/2026 5741 ARLENE SANTOS 210.00
131071 04/08/2026 5742 SO CAL PACIFIC ELECTRICAL AND LIGHTING 31,874.90 131072 04/08/2026 5757 DEBRA CRUZ 70.00
131073 04/08/2026 99999 AHMED SAMEAR ABULASHIN 49.16
131074 04/08/2026 99999 ALAN KOO 48.55
131075 04/08/2026 99999 BALBINA RAQUEL ORTEGA 59.03
131076 04/08/2026 99999 CALYNN NIMMO LYNCH 18.79
131077 04/08/2026 99999 CIRCLE K STORES 16,000.00
131078 04/08/2026 99999 ELEVEN WESTERN BUILDERS, INC. 15,850.00 131079 04/08/2026 99999 ERIC HUHN 38.08
131080 04/08/2026 99999 GABRIEL SANDOVAL 34.07
131081 04/08/2026 99999 JAYGO INTERNATIONAL LLC 60.54
131082 04/08/2026 99999 JIM NGUYEN 43.29
131083 04/08/2026 99999 JOHN JAY PETERSON ESTATE 53.98
131084 04/08/2026 99999 JOHN JAY PETERSON ESTATE 56.04
131085 04/08/2026 99999 JOHN WRIGHT 119.56
131086 04/08/2026 99999 JORGE GONZALEZ 138.00
131087 04/08/2026 99999 JUAN PEREZ 118.07
131088 04/08/2026 99999 LEONEL NUNO 2,640.00
131089 04/08/2026 99999 LYNNE TRAN 23.83
131090 04/08/2026 99999 MARIO NUNEZ 64.46
131091 04/08/2026 99999 RAYMON LIAN 24.92
131092 04/08/2026 99999 SATYA NARENDRA ANANTHANENI 690.97 131093 04/08/2026 99999 SCREEN WEAVER INC 71.01
131094 04/08/2026 99999 XUANWEN WU 34.30
131095 04/09/2026 68 AFLAC ACCT# YQ792 WORLDWIDE HEADQUARTERS 5,429.62 131096 04/09/2026 69 AFSCME District Council 36 762.75
131097 04/09/2026 775 COVINA POLICE ASSOCIATION 3,500.00 131098 04/09/2026 878 DELTA DENTAL OF CALIFORNIA 10,310.69 131099 04/09/2026 3795 PRE-PAID LEGAL SERVICES, INC 158.97 131100 04/09/2026 3846 CLEA 1,280.00
131101 04/09/2026 4255 RELIASTAR LIFE INSURANCE COMPANY 5,238.58 131102 04/09/2026 4710 Fidelity Security Life Insurance Company 1,094.06 131103 04/15/2026 113 ALL CITY MANAGEMENT SVC 16,027.50 131104 04/15/2026 219 AT&T 484.95
131105 04/15/2026 221 AT&T MOBILITY 4.64
131106 04/15/2026 333 BERLITZ LANGUAGES, INC 240.00
131107 04/15/2026 411 BRODART CO 83.69
131108 04/15/2026 749 BOHL PH.D., NANCY K. 1,470.00
131109 04/15/2026 766 COVINA DISPOSAL CO 153.86
131110 04/15/2026 783 CITY OF COVINA WATER 692.59
131111 04/15/2026 947 DUNN EDWARDS CORP 447.34
131112 04/15/2026 970 EDISON CO 4,050.20
131113 04/15/2026 1055 FEDEX 67.63
131114 04/15/2026 1156 THE GAS COMPANY 10.30
131115 04/15/2026 1204 GOLDEN STATE WATER COMPANY 1,707.12 131116 04/15/2026 1235 GRAINGER 1,080.37
131117 04/15/2026 1241 GRAND PRINTING 326.86
Attachment A Page 3 of 5
CITY OF COVINA
Check Register
Apr 3, 2026 - Apr 16, 2026
Check # Check Date Vendor Name Amount
131118 04/15/2026 1255 GRISWOLD INDUSTRIES 1,720.63
131119 04/15/2026 1275 HAAKER EQUIPMENT CO 15,435.31
131120 04/15/2026 1371 HOSE MAN INC, THE 521.31
131121 04/15/2026 1429 INLAND EMPIRE STAGES 2,486.00
131122 04/15/2026 1505 JOHNNY'S POOL SERVICE 2,130.13
131123 04/15/2026 1561 KEYSTONE UNIFORM DEPOT 963.15
131124 04/15/2026 1571 KING BOLT CO 50.92
131125 04/15/2026 1612 LA CNTY DEPT OF PUBLIC WORKS 3,782.44 131126 04/15/2026 1615 REGIONAL TAP SERVICE CENTER 20.00 131127 04/15/2026 1633 ALHAMBRA POLICE DEPARTMENT 500.00 131128 04/15/2026 1663 LAW ENFORCEMENT MEDICAL 3,725.00 131129 04/15/2026 1754 LOWE'S COMPANIES INC 712.87
131130 04/15/2026 1859 MCMURRAY & STERN 516.02
131131 04/15/2026 2309 PROFESSIONAL ACCOUNT MANAGEMENT LLC 4,188.67 131132 04/15/2026 2309 PROFESSIONAL ACCOUNT MANAGEMENT LLC 9,805.61 131133 04/15/2026 2329 PUENTE READY MIX INC 1,136.11
131134 04/15/2026 2407 REGIONAL TAP SERVICE CENTER 202.90 131135 04/15/2026 2415 REPUBLIC MASTER CHEFS 310.37
131136 04/15/2026 2676 SMART AND FINAL IRIS CORP 656.24 131137 04/15/2026 2736 STAPLES BUSINESS ADVANTAGE 351.06 131138 04/15/2026 2743 STATE CONTROLLER'S OFFICE 3,600.00 131139 04/15/2026 2752 STEPHEN DORECK EQUIPMENT RENTALS INC 166,725.00 131140 04/15/2026 2855 CHARTER COMMUNICATIONS 559.58
131141 04/15/2026 2929 ULINE 145.71
131142 04/15/2026 2935 UNDERGROUND SERVICE ALERT 51.91
131143 04/15/2026 2954 URBAN GRAFFITI ENTERPRISES INC 9,555.36 131144 04/15/2026 3001 VERIZON WIRELESS 2,092.69
131145 04/15/2026 3004 VICTORY EXTERMINATING INC 230.00 131146 04/15/2026 3729 SUNBELT RENTALS INC 359.43
131147 04/15/2026 3796 RICHARDS, WATSON & GERSHON 11,358.00 131148 04/15/2026 3823 JEEPERS CREEPERS EXTERMINATING 269.00 131149 04/15/2026 3839 DOANE AND HARTWIG WATER SYSTEMS, INC. 62,004.87 131150 04/15/2026 3964 RED WING BUSINESS ADVANTAGE ACCOUNT 300.00 131151 04/15/2026 3988 LANDSCAPE WAREHOUSE III 514.87
131152 04/15/2026 4065 VERIZON WIRELESS 1,307.28
131153 04/15/2026 4201 OFFICE TEAM - A ROBERT HALF COMPANY 2,724.03 131154 04/15/2026 4279 BOSS JANITORIAL SERVICES 11,086.63 131155 04/15/2026 4349 Intelli-Tech 2,080.00
131156 04/15/2026 4389 EMPLOY AMERICA 2,741.00
131157 04/15/2026 4421 TLG BUSINESS SOLUTIONS 21.00
131158 04/15/2026 4455 FRONTIER 11,902.43
131159 04/15/2026 4564 National Union Fire Ins. Co. of Pittsburgh, PA 765.00 131160 04/15/2026 4571 POWER SECURITY GROUP INC 11,708.00 131161 04/15/2026 4667 Ocean Blue Environmental Services, Inc. 11,732.19 131162 04/15/2026 4682 Evan Brooks Associates, Inc. 13,943.50 131163 04/15/2026 4688 PCAM, LLC 18,335.94
131164 04/15/2026 4713 Fisher Integrated, Inc. 1,200.00 131165 04/15/2026 4764 UniFirst Corporation 1,019.87
131166 04/15/2026 4854 CEJ Engineers, Inc. 9,740.00
131167 04/15/2026 4869 VERITEXT, LLC 1,093.70
131168 04/15/2026 4885 ELIE FARAH 5,055.00
Attachment A Page 4 of 5
CITY OF COVINA
Check Register
Apr 3, 2026 - Apr 16, 2026
Check # Check Date Vendor Name Amount
131169 04/15/2026 4925 Humane Society of Pomona Valley, Inc. 29,043.67 131170 04/15/2026 4983 Ad Valorem Records,Inc. 8,177.49 131171 04/15/2026 5052 SKY JTC CORPORATION 960.00
131172 04/15/2026 5099 CliftonLarsonAllen LLP 2,205.00
131173 04/15/2026 5117 Steam It All LLC 620.00
131174 04/15/2026 5138 Ricoh USA, Inc. 300.31
131175 04/15/2026 5139 Crown Castle Fiber LLC 925.00
131176 04/15/2026 5221 GPS VEHICLE TRACKING SOLUTIONS 499.00 131177 04/15/2026 5228 ODP BUSINESS SOLUTIONS, LLC 152.81 131178 04/15/2026 5269 CONTROL AIR ENTERPRISES LLC. 8,821.58 131179 04/15/2026 5291 AMAZON CAPITAL SERVICES, INC 2,180.52 131180 04/15/2026 5336 ABI DOCUMENT SUPPORT SERVICES LLC 4,942.86 131181 04/15/2026 5472 BRIAN F. KING CONSULTING INC 8,530.00 131182 04/15/2026 5568 PERERA CONSTRUCTION & DESIGN, INC. 907,465.13 131183 04/15/2026 5623 MGT IMPACT SOLUTIONS, LLC 4,705.65 131184 04/15/2026 5711 SPECIALIZED ELEVATOR SERVICES, LLC 6,750.00 131185 04/15/2026 5743 GARDA CL WEST, INC. LOCKBOX 233209 10.90 131186 04/15/2026 5772 PARTS AUTHORITY LLC 928.75
131187 04/15/2026 5784 PARAGON FORENSICS LLC 570.00
131188 04/15/2026 5785 BEAR SAUSAGE CO LLC 25,000.00
131189 04/15/2026 5786 JULIAN TEA & COTTAGE ARTS LLC 1,870.00 131190 04/15/2026 99999 ANGELA MURILLO 75.51
131191 04/15/2026 99999 BRYAN VAN GUILDER 50.00
131192 04/15/2026 99999 CHARLES RUSSOM 207.62
131193 04/15/2026 99999 DANNIEL MCCORMICK 51.91
131194 04/15/2026 99999 DIANA JARAMILLO 1,000.00
131195 04/15/2026 99999 JOANNA MARTINEZ 77.00
131196 04/15/2026 99999 MARIA CANO-RAMIREZ 67.40
131197 04/15/2026 99999 MIKE MELINTE 148.34
131198 04/15/2026 99999 ROBERT POIRIER 532.41
131199 04/15/2026 99999 SALVADOR AGUILAR 38.08
131200 04/15/2026 99999 TBDC 39.49
131201 04/15/2026 99999 YVETTE TREJO 41.98
subtotal checks $2,253,798.80
128453 10/01/2025 2929 ULINE (145.71)
subtotal voids ($145.71)
payroll (04/09/26) $1,295,817.14
workers' compensation $9,481.21
TOTAL checks/EFTs $3,740,043.07
Attachment A Page 5 of 5
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 3
Meeting: May 5, 2026
Title: City of Covina Investment Report for Month Ended March 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 March 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 2/28/2026 $100,598,239.78 RECEIPTS 3/1/26-3/31/26 20,012,045.75
DISBURSEMENTS 3/1/26-3/31/26 (18,902,223.74)
CASH PER BANK AND INVESTMENT BALANCE 3/31/2026 $101,708,061.79
ANALYSIS OF CASH PER BANK AND INVESTMENT BALANCE - BOOK VALUE INVESTMENT PORTFOLIO Attachment A-2 $57,438,581.93
LOCAL AGENCY INVESTMENT FUND Attachment A-4 40,069,194.74 TOTAL PUBLIC INVESTMENTS 97,507,776.67
CHECKING / PETTY / USBANK CASH BALANCES / MONEY MARKET 4,200,285.12 CASH PER BANK AND INVESTMENT BALANCE 3/31/2026 101,708,061.79 CASH HELD BY TRUSTEES 3,314,107.59
TOTAL CASH PER BANK AND INVESTMENT / TRUSTEE CASH BALANCE 3/31/2026 $105,022,169.38
CITY OF COVINA INVESTMENT REPORT
FOR THE MONTH ENDED MARCH 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 1,231,822.63 N/A Demand 1,231,822.63 Public Agency Saving - Parking Fines BMO 9,850.86 N/A Demand 9,850.86 Utility Billing Account BMO 56,847.88 N/A Demand 56,847.88 Workers' Compensation - Checking Account BMO 112,133.57 N/A Demand 112,133.57 Payroll - Checking Account BMO 75,573.97 N/A Demand 75,573.97 Money Market BMO 2,558,740.23 N/A Demand 2,558,740.23
AFLAC Flexible Spending Account BMO 22,833.06 N/A Demand 22,833.06 USBank Cash Per GL Various 122,202.80 Various Various 122,202.80 USBank Investment Portfolio Various 57,438,581.93 Various Various 57,342,582.31 Local Agency Investment Fund State of California 40,069,194.74 N/A Demand 40,069,194.74 Subtotal (A) $101,708,061.79 $101,612,062.17
Cash Held With 3rd Party Administrator:
TRIP 2017A Covina Wilmington Trust $668.59 N/A Demand $668.59 LA County Loan Agreement U.S. Bank 1,500,050.64 N/A Demand 1,500,050.64 Other Post-Employment Benefits Charles Schwab 1,807,717.46 N/A Demand 1,807,717.46 2021 Taxable Pension Obligation Bonds U.S. Bank 5,668.31 N/A Demand 5,668.31 2019 Wastewater Refunding Bonds U.S. Bank 2.59 N/A Demand 2.59 Subtotal (B) $3,314,107.59 $3,314,107.59
TOTAL (A+B) $105,022,169.38 $104,926,169.76
CITY OF COVINA
CASH AND INVESTMENT SUMMARY
FOR THE MONTH ENDED MARCH 31, 2026
The purpose of this schedule is to show the total cash and investments held by the City of Covina by account.
Exhibit A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
March 2026
Issuer Purchase Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
US Government Issues:
Federal Farm Credit Bank Bond 06/10/25 100.4160 1,000,000 1,009,342.56 4.1064 3133EPZY4 7/30/2026 US Bank
(from Stifel)
FEDL Home Loan Bank Bond 04/07/22 99.6320 1,000,000 1,003,611.45 3.0000 3130A2VE3 9/11/2026 US Bank
(from Stifel)
Federal Home Loan Bks 03/05/26 98.8400 1,000,000 995,570.00 3.5000 3130A35M2 9/14/2026 US Bank FEDL Agric MTG CorpMedium Term Note 06/30/22 98.3830 1,000,000 915,357.70 0.9700 31422XGQ9 10/26/2026 US Bank (from Stifel)
FEDL Farm Credit Bank Bond 02/02/22 98.2750 1,000,000 996,151.59 1.5000 3133ENKV1 1/13/2027 US Bank
(from Stifel)
Federal Farm Credit Bank Bond 04/07/22 99.4520 2,000,000 2,002,418.29 3.1500 3133EJDV8 3/22/2027 US Bank
(from Stifel)
FEDL Home Loan MTG CorpPool #WN2479 12/04/23 100.3290 1,000,000 993,437.50 4.9400 3132XGXH4 5/1/2028 US Bank (from Stifel)
Federal Farm Credit Bks 11/11/25 99.6640 1,000,000 1,000,000.00 3.9100 3133ETT23 5/12/2028 US Bank FEDL NATL MTG ASSNPool#BSB8718 Balloon 03/05/24 99.7170 1,000,000 986,562.50 4.3800 3140LKVL4 6/1/2028 US Bank (from Stifel)
Federal Home Loan Bks 03/20/26 98.5890 1,000,000 984,500.00 3.2500 3130AFFX0 11/16/2028 US Bank FEDL Home Loan MTG CorpPool#WN2534 02/16/24 100.3690 1,000,000 997,187.50 4.9000 3132XGY83 12/1/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPOOL#WN2537 04/16/24 100.3690 1,000,000 989,687.50 4.9000 3132XGZB5 12/1/2028 US Bank (from Stifel)
FEDL Home Loan MTG CorpPOOL#WN2559 04/10/24 100.0550 1,000,000 979,062.50 4.6000 3132XGZZ2 1/1/2029 US Bank (from Stifel)
U S Treasury Note 11/13/25 98.1840 1,000,000 987,500.00 3.2500 91282CEV9 6/30/2029 US Bank FEDL NATL MTG ASSN Note 10/25/24 99.9110 1,000,000 1,000,000.00 4.4000 3135GAXR7 8/3/2029 US Bank
(from Stifel)
FEDL Home Loan Bank Bond 09/04/24 99.4470 980,000 980,000.00 4.2000 3130B2GZ2 8/13/2029 US Bank
(from Stifel)
FEDL Home Loan Bank Bond 10/25/24 98.9930 1,000,000 990,500.00 4.0000 3130B32X0 10/2/2029 US Bank
(from Stifel)
FEDL Home Loan Bank Bond 11/05/24 100.0160 1,000,000 1,000,000.00 4.5000 3130B3M67 11/13/2029 US Bank
(from Stifel)
U S Treasury Note 08/18/25 99.8910 1,000,000 1,002,336.00 3.8750 91282CMZ1 4/30/2030 US Bank FEDL Home Loan Bank Bond 06/16/25 99.7930 1,000,000 1,000,000.00 4.1251 3130B6SF4 6/14/2030 US Bank
(from Stifel)
Federal Farm Credit Bks 10/20/25 89.0020 1,000,000 896,850.00 1.2300 3133EL2C7 7/29/2030 US Bank U S Treasury Note 01/05/26 99.8320 1,000,000 1,009,093.75 3.8750 91282CNN7 7/31/2030 US Bank U S Treasury Note 11/04/25 98.1600 1,000,000 997,335.93 3.7500 91282CNX5 8/31/2030 US Bank Federal Home Loan Bks 10/23/25 98.3670 2,000,000 1,996,200.00 3.6500 3130B8CC4 10/21/2030 US Bank U S Treasury Note 12/24/25 98.7730 1,000,000 991,125.00 3.6250 91282CPN5 11/30/2030 US Bank F H L M C M T N 12/11/25 98.1710 1,000,000 999,750.00 4.0000 3134HCEY1 12/9/2030 US Bank Federal Home Loan Bks 01/16/26 98.9120 1,000,000 1,000,000.00 3.7800 3130B93L2 1/9/2031 US Bank Federal Home Loan Bks 01/28/26 98.9940 1,000,000 1,000,000.00 4.0700 3130B9B66 1/28/2031 US Bank Federal Home Loan Bks 02/11/26 98.9930 1,000,000 1,000,000.00 4.0200 3130B9DE7 2/11/2031 US Bank Federal Argi Mtg Corp M T N 03/05/26 98.5560 1,000,000 995,100.00 3.6250 31428JBQ9 2/20/2031 US Bank Total US Government Issues: 31,980,000 $ 31,698,679.77
1 Attachment A-2 City Page 27 of 219
Exhibit A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
March 2026
Issuer Purchase Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Corporate Issues:
First Bank of The LakeOsage Beach MO CD 10/31/24 100.0000 245,000 245,000.00 4.0000 31925YBU5 4/30/2026 US Bank (from Stifel)
Ally Bank -
Midvale UT CD 04/27/22 99.8920 245,000 245,000.00 2.8500 02007GQQ9 5/5/2026 US Bank
(from Stifel)
Global FED CR UN -
Anchorage AK SHS CTF 05/14/24 100.1810 245,000 245,000.00 5.0500 37892MAP9 5/29/2026 US Bank
(from Stifel)
Inspire FEDL CR UNBristol PA SHS CTF 06/29/23 100.2640 245,000 245,000.00 5.0000 457731AQ0 6/30/2026 US Bank (from Stifel)
GESA CR UNRichland WA CD 07/19/23 100.4540 245,000 245,000.00 5.2500 37424PAH7 7/31/2026 US Bank (from Stifel)
Pima FEDL CR UNTucson AZ SHS CTF 08/02/23 100.5230 245,000 245,000.00 5.3000 722000AC0 8/17/2026 US Bank (from Stifel)
Signature Federal Cred U 08/16/23 100.5660 245,000 245,000.00 5.3000 82671DAG2 8/28/2026 US Bank
(from Stifel)
KodabankDrayton ND CD 03/09/23 100.5200 245,000 245,000.00 5.0000 50007DAC3 9/22/2026 US Bank (from Stifel)
First NATL BankDamariscotta ME CD 03/09/23 100.5230 245,000 245,000.00 5.0000 32117BFR4 9/23/2026 US Bank (from Stifel)
Austin Telco Fed CR UN- Austin
TX SHS CTF 11/14/22 100.7610 245,000 245,000.00 5.0500 052392CC9 11/27/2026 US Bank
(from Stifel)
Baxter CR UNVernon Hills IL SHS CTF 11/14/22 100.7520 245,000 245,000.00 5.0000 07181JAV6 11/30/2026 US Bank (from Stifel)
First Foundation Bank -
Irvine CA CD 06/05/24 100.8010 245,000 245,000.00 5.0625 32026U5X0 12/14/2026 US Bank
(from Stifel)
All in FED CR UnionDaleville AL SHS CTF 12/07/22 100.4150 245,000 245,000.00 4.4500 01664MAA4 12/21/2026 US Bank (from Stifel)
State Bank of India -
New York NY CD 02/01/22 98.2140 245,000 245,000.00 1.7500 856285G21 2/9/2027 US Bank
(from Stifel)
Pentagon Federal CR UN - Tysons
Corner VA 02/02/22 98.1160 245,000 245,000.00 1.7000 70962LBE1 2/18/2027 US Bank
(from Stifel)
California Cr Un Glendale Cali CD 08/11/25 100.1010 245,000 245,000.00 4.0000 130162BQ2 2/22/2027 US Bank Sallie Mae Bank -
Salt Lake City UT CD 02/16/22 98.5260 245,000 245,000.00 2.2000 795451BH5 2/23/2027 US Bank
(from Stifel)
Beal Bank -
Plano TX CD 03/01/22 98.3280 245,000 245,000.00 2.0500 07371AZQ9 3/3/2027 US Bank
(from Stifel)
Beal Bank -
Las Vegas NV CD 03/01/22 98.3280 245,000 245,000.00 2.0500 07371CK81 3/3/2027 US Bank
(from Stifel)
Medallion Bank -
Salt Lake City UT CD 03/01/22 98.3160 245,000 245,000.00 2.0500 58404DNG2 3/8/2027 US Bank
(from Stifel)
United Republic BankElkhorn NE CD 03/05/25 100.1540 245,000 245,000.00 4.0500 909242BZ1 3/19/2027 US Bank (from Stifel)
Cpital One Bank USA NA -
Glen Allen VA CD 04/07/22 98.7960 245,000 245,000.00 2.7000 14042TFJ1 4/13/2027 US Bank
(from Stifel)
Synchrony Bank -
Draper UT CD 04/07/22 98.7930 245,000 245,000.00 2.7000 87165FK45 4/14/2027 US Bank
(from Stifel)
Capital One NA -
Mclean VA CD 04/27/22 99.1070 245,000 245,000.00 3.0500 14042RRA1 5/4/2027 US Bank
(from Stifel)
Pinnace BankNashville TN CD 05/02/25 100.0630 245,000 245,000.00 3.9500 72345SLQ2 5/7/2027 US Bank (from Stifel)
Goldman Sachs Bank USA -
New York NY CD 04/27/22 99.0910 245,000 245,000.00 3.0500 38149M6Y4 5/11/2027 US Bank
(from Stifel)
Toyota Finl Svgs BankHenderson NV CD 05/09/22 99.2410 245,000 245,000.00 3.2000 89235MNH0 5/17/2027 US Bank (from Stifel)
Morgan Stanley Bank NASalt Lake City UT CD 05/16/22 99.2920 245,000 245,000.00 3.2500 61690UJ68 5/19/2027 US Bank (from Stifel)
Morgan Stanley PVT BK NAPurchase NY CD 05/16/22 99.2920 245,000 245,000.00 3.2500 61768EJR5 5/19/2027 US Bank (from Stifel)
Discover BankGreenwood DE CD 05/20/22 99.2280 245,000 245,000.00 3.2000 254673E36 5/24/2027 US Bank (from Stifel)
All In Fed Cr UnDaleville AI 12/31/25 99.8370 245,000 245,000.00 3.7500 01664MBC9 6/30/2027 US Bank 2 Attachment A-2 City Page 28 of 219
Exhibit A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
March 2026
Issuer Purchase Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Optum BankDraper UT CD 06/23/25 100.2940 245,000 245,000.00 4.1500 68405VDM8 6/30/2027 US Bank (from Stifel)
Bankgloucester 01/08/26 99.5050 245,000 245,000.00 3.5000 06644RAN9 7/15/2027 US Bank Western alliance Bk Phoenix Az 01/08/26 99.6300 245,000 245,000.00 3.6000 95763PA76 7/15/2027 US Bank Wells Fargo Bank Natl Assn 01/21/26 99.6870 247,000 247,000.00 3.6500 949764TQ7 7/26/2027 US Bank Mutual First Fed CD 07/23/25 100.1390 245,000 245,000.00 4.0000 62825MAB0 8/5/2027 US Bank Oklahoma CD 08/26/25 100.0870 245,000 245,000.00 3.9500 67885MAC4 8/30/2027 US Bank Workers FEDL Credit UNLittleton MA SHS CTF 08/27/24 100.1450 245,000 245,000.00 4.0000 98138MCK4 8/30/2027 US Bank (from Stifel)
Bank Hapoalim CD 03/09/26 99.7350 245,000 245,000.00 3.7000 06251FDL0 9/8/2027 US Bank Vantage West CR UNTucson AZ SHS CTF 09/04/24 100.1480 245,000 245,000.00 4.0000 92213MAB7 9/13/2027 US Bank (from Stifel)
Gbank Las Vegas Nev CD 03/09/26 99.7940 245,000 245,000.00 3.7500 36830MBZ3 9/17/2027 US Bank University III Cmnty Cr Un Cha
CD 09/18/25 99.6480 249,000 249,000.00 3.6500 914359AQ7 9/24/2027 US Bank Ideal Credit UnionWoodbury MN SHS CTF 12/07/22 101.0220 245,000 245,000.00 4.5000 45157PAZ3 12/29/2027 US Bank (from Stifel)
Alliant Credit UnionChicago IL SHS CTF 12/20/22 101.6050 245,000 245,000.00 4.8500 01882MAA0 12/30/2027 US Bank (from Stifel)
City Natl Bk Los Angeles Calif 01/08/26 99.6000 245,000 245,000.00 3.6500 178180HD0 1/24/2028 US Bank Carter FEDL CR UNSpringhill LA SHS CTF 01/14/25 100.5280 245,000 245,000.00 4.2000 14622LAW2 1/28/2028 US Bank (from Stifel)
Telco Plus CR UnLongview TX SHS CTF 02/03/25 100.6330 245,000 245,000.00 4.2500 87921MAA2 2/18/2028 US Bank (from Stifel)
Merrick BankSouth Jordan UT CD 02/18/25 100.6410 245,000 245,000.00 4.2500 59013K4U7 2/28/2028 US Bank (from Stifel)
Valley Natl BankPassaic NJ CD 02/27/25 100.6300 245,000 245,000.00 4.2500 919853QC8 3/6/2028 US Bank (from Stifel)
Stryv Bk Wichita CD 03/09/26 99.3420 245,000 245,000.00 3.5500 86368LBD9 3/13/2028 US Bank One Commnity BankOregon WI CD 06/12/25 100.1860 245,000 245,000.00 4.0000 682325FT7 3/20/2028 US Bank (from Stifel)
Vibrant Cr Un Moline II C D 10/21/25 99.6250 245,000 245,000.00 3.6500 92559TAT5 4/27/2028 US Bank Milestone BankSalt Lake City UT CD 04/28/25 100.1050 245,000 245,000.00 3.9500 59934MDC9 4/28/2028 US Bank (from Stifel)
Southpoint BankBirmingham AL CD 04/28/25 100.1990 245,000 245,000.00 4.0000 84464PCC9 4/28/2028 US Bank (from Stifel)
Cornerstone BankFargo ND CD 05/01/23 102.8397 245,000 245,000.00 - 219232CR4 5/10/2028 US Bank (from Stifel)
Sound CR UNTacoma WA SHS CTF 05/19/25 100.5000 245,000 245,000.00 4.1500 83616HAH7 6/2/2028 US Bank (from Stifel)
Celtic BankSalt Lake City UT CD 06/04/25 100.1980 245,000 245,000.00 4.0000 15118RW45 6/12/2028 US Bank (from Stifel)
BOM BankNatchitoches LA CD 06/04/25 100.0630 245,000 245,000.00 4.4000 09776DAP9 6/16/2028 US Bank (from Stifel)
Global FED CR UNAnchorage AK SHS CTF 06/16/25 100.6180 245,000 245,000.00 4.2000 37892MAX2 6/30/2028 US Bank (from Stifel)
Texas Exchange Bank SSBCrowley TX CD 10/28/24 100.2990 245,000 245,000.00 4.0500 88241TUA6 7/12/2028 US Bank (from Stifel)
CY Fair FCUHouston TX SHS CTF 06/26/23 100.0340 245,000 245,000.00 5.3000 23248UAC1 7/14/2028 US Bank (from Stifel)
Numerica Credit Union-Spokane
VLY WA SHS CTF 07/12/23 102.6470 245,000 245,000.00 5.1000 67054NBK8 7/31/2028 US Bank
(from Stifel)
3 Attachment A-2 City Page 29 of 219
Exhibit A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
March 2026
Issuer Purchase Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Connexus Credit CD 07/23/25 100.4210 245,000 245,000.00 4.1000 20825WEB2 8/7/2028 US Bank Tucson FEDL CR UNTucson AZ CD 09/01/23 102.5040 245,000 245,000.00 5.0000 898812AC6 9/8/2028 US Bank (from Stifel)
Live Oak Bkg Co Wilmington N C
CD 03/02/26 99.4940 249,000 249,000.00 3.7000 538037BC5 9/13/2028 US Bank Money One FCULargo MD SHS CTF 09/01/23 102.5180 245,000 245,000.00 5.0000 60936TAL3 9/14/2028 US Bank (from Stifel)
Dort Finl Cr Un Grand Blanc Mi
CD 09/22/25 99.2530 247,000 247,000.00 3.6000 25844MCE6 10/10/2028 US Bank Institution For Svgs In Newbur
CD 10/20/25 99.3250 245,000 245,000.00 3.6500 45780PDH5 10/27/2028 US Bank Select Bk Fst Va CD CII C D 10/21/25 99.4630 245,000 245,000.00 3.8500 81618LAG2 10/31/2028 US Bank San Francisco FEDL CR UNSan Francisco CA SHS 11/20/24 100.8050 245,000 245,000.00 4.2500 79772FAL0 11/27/2028 US Bank (from Stifel)
SKYLA FEDL CR UNCharlotte NC SHS CTF 05/21/25 100.4280 245,000 245,000.00 4.1000 83086XAE0 11/30/2028 US Bank (from Stifel)
Civic Fed Cr CD 08/07/25 99.9150 245,000 245,000.00 3.9000 178808AC5 12/22/2028 US Bank Members Tr Southwest Fcu CD 02/19/26 99.3350 245,000 245,000.00 3.7000 585899AP2 3/2/2029 US Bank Gulf Cap Bk Houston Tex CD 03/09/26 99.2850 245,000 245,000.00 3.7000 40219MBE3 3/26/2029 US Bank BMW Bank of North AmericaSalt Lake City UT CD 05/02/25 100.1410 245,000 245,000.00 4.0000 05612LER9 5/9/2029 US Bank (from Stifel)
First Premier BankSioux Falls SD CD 05/13/25 100.0010 245,000 245,000.00 3.9500 33610RWL3 5/21/2029 US Bank (from Stifel)
Covantage CUAntigo WI SHS CTF 05/14/25 100.8050 245,000 245,000.00 4.0500 22282XAL4 5/29/2029 US Bank (from Stifel)
West Gate Bk Lincoln Neb CD 02/20/26 99.2460 245,000 245,000.00 3.9000 95285QDY1 9/5/2029 US Bank Triad Bk Frontenac Mo CD 03/02/26 98.5000 245,000 245,000.00 3.5000 89579NCX9 9/11/2029 US Bank Altaone FED CR UN -
Ridgecrest CA SHS CTF 08/27/24 99.6240 245,000 245,000.00 3.8500 02157RAC1 9/13/2029 US Bank
(from Stifel)
Freedom Northwest CR UN 12/23/24 100.5870 245,000 245,000.00 4.1200 356436AV7 12/31/2029 US Bank
(from Stifel)
JP Morgan Chase Bank NAColumbus OH CD 01/24/25 100.4610 245,000 245,000.00 4.7500 46657VWH9 1/31/2030 US Bank (from Stifel)
UBS Bank USASalt Lake City UT CD 03/05/25 100.3990 245,000 245,000.00 4.1000 90355GUL8 3/12/2030 US Bank (from Stifel)
Luana SVGS BankLuana IA CD 03/05/25 99.6370 245,000 245,000.00 3.9000 549104G76 3/13/2030 US Bank (from Stifel)
Western State BankDevils Lake ND CD 03/05/25 100.0280 245,000 245,000.00 4.0000 95960NLA3 3/25/2030 US Bank (from Stifel)
Poppy BankSanta rosa CA CD 04/02/25 99.7040 245,000 245,000.00 4.1000 73319FDX4 4/8/2030 US Bank (from Stifel)
EaglebankBethesda MD CD 04/02/25 100.2030 245,000 245,000.00 4.0500 27002YHQ2 4/16/2030 US Bank (from Stifel)
American Express Natl BKSalt Lake City UT CD 04/28/25 100.3680 245,000 245,000.00 4.1000 02589AHE5 4/30/2030 US Bank (from Stifel)
BNY Mellon NAPittsburgh PA CD 06/12/25 99.9670 245,000 245,000.00 4.0000 05584CY59 6/18/2030 US Bank (from Stifel)
Farmers & Merchants BKAshland NE CD 06/16/25 100.0360 245,000 245,000.00 4.4000 308914AC4 6/24/2030 US Bank (from Stifel)
Jeanne D Arc FCULowell MA CD 06/23/25 99.9860 245,000 245,000.00 4.0000 472207AL3 6/28/2030 US Bank (from Stifel)
State Bk India Chicago III 07/30/25 100.1610 245,000 245,000.00 4.0500 85628AAT7 7/29/2030 US Bank Oak View Bankshares CD 08/19/25 99.9920 245,000 245,000.00 4.2500 67134XBD6 9/5/2030 US Bank Utah First Fed Cr Un Salt Lake CD 08/28/25 99.3240 249,000 249,000.00 3.8500 91739JAW5 9/10/2030 US Bank 4 Attachment A-2 City Page 30 of 219
Exhibit A-2
CITY OF COVINA
US Bank and Stifel
Investment Portfolio as of
March 2026
Issuer Purchase Date
Market Price Per
Share Qty
Total Original Cost
Value Coupon CUSIP Maturity Trustee
Great Midwest Bk Brookfield Wi
CD 09/15/25 98.1160 245,000 245,000.00 3.7500 39083PDT6 9/19/2030 US Bank Third fed Svgs Ln Assn Of CD 09/15/25 98.8810 245,000 245,000.00 3.7500 88413QHX9 9/19/2030 US Bank Greenstate Cr Un North Liberty
CD 09/16/25 98.8980 245,000 245,000.00 3.7500 39573LEU8 9/26/2030 US Bank Ria Fed Cr Un CD 10/20/25 98.2320 245,000 245,000.00 3.6000 749622BZ8 11/4/2030 US Bank Nelnet Bk Draper Utah 11/03/25 98.0250 245,000 245,000.00 3.5500 64034KCB5 11/5/2030 US Bank Cfg Cmnty Bk Lutherville Md CD 11/18/25 99.0610 245,000 243,902.16 4.0000 12527CNN8 11/14/2030 US Bank First Gty Bk Damariscotta Me CD 11/06/25 99.2690 245,000 245,000.00 4.0500 320437BD7 11/14/2030 US Bank Customers Bk Phoenixville Pa 01/15/26 98.7660 245,000 245,000.00 3.7500 23204HRD2 1/15/2031 US Bank Farmers Merchants Bk Berlin 02/10/26 98.4810 245,000 245,000.00 3.9000 307811NB1 2/20/2031 US Bank Universal Bk West 02/10/26 97.8080 245,000 245,000.00 3.7500 91337VAS3 2/26/2031 US Bank First Alliance Cr Un Rochester CD 03/09/26 98.6450 245,000 245,000.00 3.9500 33556AAC0 3/27/2031 US Bank Total Corporate Issues: 25,741,000 $ 25,739,902.16
57,721,000 $ 57,438,581.93
122,202.80
US Bank Total Value of Portfolio 57,721,000 $ 57,560,784.73 US Bank Securities
US Bank Cash
5 Attachment A-2 City Page 31 of 219
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 2,450 2/19/2026 3/2/2029 100.0000 245,000.00 245,000.00 245,000.00 Members Tr Southwest Fcu CD 585899AP2 US Bank 2,450 2/20/2026 9/5/2029 100.0000 245,000.00 245,000.00 245,000.00 West Gate Bk Lincoln Neb CD 95285QDY1 US Bank 9,951 3/5/2026 2/20/2031 99.5100 995,100.00 995,100.00 995,100.00 Federal Argi Mtg Corp M T N 31428JBQ9 US Bank 9,956 3/5/2026 9/14/2026 99.5570 995,570.00 995,570.00 995,570.00 Federal Home Loan Bks 3130A35M2 US Bank 9,951 3/5/2026 3/22/2027 99.5140 995,140.00 995,140.00 995,140.00 Federal Farm Credit Bks 3133EJDV8 US Bank 2,450 3/2/2026 9/11/2029 100.0000 245,000.00 245,000.00 245,000.00 Triad Bk Frontenac Mo CD 89579NCX9 US Bank 2,490 3/2/2026 9/13/2028 100.0000 249,000.00 249,000.00 249,000.00 Live Oak Bkg Co Wilmington N C CD 538037BC5 US Bank 2,450 3/9/2026 3/13/2028 100.0000 245,000.00 245,000.00 245,000.00 Stryv Bk Wichita CD 86368LBD9 US Bank 2,450 3/9/2026 9/17/2027 100.0000 245,000.00 245,000.00 245,000.00 Gbank Las Vegas Nev CD 36830MBZ3 US Bank 2,450 3/9/2026 9/8/2027 100.0000 245,000.00 245,000.00 245,000.00 Bank Hapoalim CD 06251FDL0 US Bank 9,845 3/20/2026 11/16/2028 98.4500 984,500.00 984,500.00 984,500.00 Federal Home Loan Bks 3130AFFX0 US Bank 2,450 3/9/2026 3/26/2029 100.0000 245,000.00 245,000.00 245,000.00 Gulf Cap Bk Houston Tex CD 40219MBE3 US Bank 2,450 3/9/2026 3/27/2031 100.0000 245,000.00 245,000.00 245,000.00 First Alliance Cr Un Rochester CD 33556AAC0 US Bank Total $ 6,179,310.00 $ 6,179,310.00 $ 6,179,310.00 -
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 07/09/24 7/30/2029 3/2/2026 100.0000 245,000.00 245,000.00 $ - $ 20,950.50 ClearPath FED CR UN -Burbank CA SHS CTF 18507MAD3 US Bank 20,000 09/09/24 9/4/2029 3/4/2026 100.0000 2,000,000.00 2,000,000.00 - 118,444.44 FEDL Home Loan Bank Bond 3130B2NS0 US Bank 10,000 12/23/2024 3/6/2028 3/6/2026 100.0000 1,000,000.00 1,000,000.00 - 72,000.00 FEDL Home Loan Bank Bond 3130B0EE5 US Bank 2,450 03/09/23 3/23/2026 3/23/2026 100.0000 245,000.00 245,000.00 - 37,921.52 Truliant FEDL CR UN- Winston Salem NC SHS
CTF 89789AAH0 US Bank
2,450 09/16/24 3/27/2026 3/27/2026 100.0000 245,000.00 245,000.00 - 15,942.48 United Fidelity Bank FSB- Evansville IN CD 910286HZ9 US Bank $ 3,735,000.00 $ 3,735,000.00 $ - $ 265,258.94
Period Interest Revenue
Previous Month $207,949.95
Previous 12 mos. $2,352,496.14
CITY OF COVINA
INVESTMENT TRANSACTION SUMMARY
FOR THE MONTH ENDED MARCH 31, 2026
Purchased Investments
Net Revenue Analysis - for Period Ending March 31, 2026 Sold/Matured Investments
Attachment A-3 City
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
April 13, 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
March 2026 Statement
Tran Type Definitions
Effective
Date
Transaction
Date
Tran
Type Confirm
Number
Web
Confirm
Number
Authorized
Caller Amount
3/16/2026 3/16/2026 RD 1795580 1756249 BEI ZOU 1,000,000.00 3/27/2026 3/26/2026 RD 1795974 1756649 BEI ZOU 3,500,000.00 Account
Summary
Total Deposit: 4,500,000.00 Beginning Balance: 35,569,194.74 Total Withdrawal: 0.00 Ending Balance: 40,069,194.74
1/1
Attachment A-4 City
Statement Total
Balance Percentage
Cash Balances $4,200,285 4.00%
Local Agency Investment Fund 40,069,195 38.15%
Treasury / Agency 31,698,680 30.18%
Certificate of Deposits 25,739,902 24.51%
Funds Held by Bond Trustees 3,314,108 3.16%
Total $105,022,169 100.00%
CITY OF COVINA
Cash & Investment Holdings by Type as of March 31, 2026 *Average Investment coupon rate: 3.78% (based on weighted average of Original Cost Value) Cash Balances, 4.00%
Local Agency Investment
Fund, 38.15%
Treasury / Agency, 30.18%
Certificate of Deposits,
24.51%
Funds Held by Bond
Trustees, 3.16%
HOLDINGS BY TYPE
Attachment A-5 City
CASH PER BANK AND INVESTMENT BALANCE 2/28/2026 $607,531.56 RECEIPTS 3/1/26-3/31/26 -
DISBURSEMENTS 3/1/26-3/31/26 -
CASH PER BANK AND INVESTMENT BALANCE 3/31/2026 $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 3/31/2026 $607,531.56 FOR THE MONTH ENDED MARCH 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 MARCH 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
April 13, 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
March 2026 Statement
Tran Type Definitions
Account
Summary
Total Deposit: 0.00 Beginning Balance: 603,713.92
Total Withdrawal: 0.00 Ending Balance: 603,713.92
1/1
Attachment A-6 Agency
Quarter
Ending City Agency*
3/31/2024 $95,021,599 $623,678
3/31/2025 $94,864,022 $651,984
3/31/2026. $105,022,169 $607,532
CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY CASH AND INVESTMENTS THREE YEAR COMPARISON AS OF MARCH 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
3/31/2024 3/31/2025 3/31/2026.
$95,021,599 $94,864,022
$105,022,169
$623,678 $651,984 $607,532
MONTH ENDING MAR. 31, 2026
City of Covina & Agency* Total Cash & Investments
Three Year Comparison
City Agency*
sdsdad
Attachment A-7 City Agency
Carrying Cost Plus
Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury:
Bills $ 44,722,522,982.34 $ 45,041,222,236.88 $ 45,033,151,400.00 NA Notes $ 49,292,258,674.55 $ 49,271,989,419.91 $ 49,320,696,150.00 $ 406,254,298.00 Federal Agency:
SBA $ 284,735,106.47 $ 284,670,977.29 $ 282,270,088.95 $ 954,910.41 MBS-REMICs $ 828,976.21 $ 828,976.21 $ 834,536.98 $ 3,616.34 Debentures $ 4,170,836,653.34 $ 4,170,836,653.34 $ 4,169,747,640.00 $ 33,432,528.40 Debentures FR $ - $ - $ - $ -
Debentures CL $ 2,450,000,000.00 $ 2,450,000,000.00 $ 2,447,226,000.00 $ 31,675,185.50 Discount Notes $ 18,589,440,826.53 $ 18,748,772,124.99 $ 18,737,614,500.00 NA Supranational:
Debentures $ 4,234,413,202.81 $ 4,234,289,244.48 $ 4,225,099,790.00 $ 34,129,170.50 Debentures FR $ - $ - $ - $ -
Debentures CL $ 300,000,000.00 $ 300,000,000.00 $ 300,916,000.00 $ 2,155,555.00 Discount Notes $ 5,996,263,597.22 $ 6,051,445,319.44 $ 6,048,424,000.00 NA CDs and YCDs FR $ - $ - $ - $ -
Bank Notes $ 400,000,000.00 $ 400,000,000.00 $ 399,517,809.83 $ 3,603,472.22 CDs and YCDs $ 17,400,000,000.00 $ 17,400,000,000.00 $ 17,390,638,342.15 $ 180,555,958.37 Commercial Paper $ 10,784,921,083.25 $ 10,855,911,297.17 $ 10,853,096,291.64 NA Corporate:
Bonds FR $ - $ - $ - $ -
Bonds $ 973,660,364.24 $ 973,256,676.74 $ 970,809,904.00 $ 9,472,413.81 Repurchase Agreements $ - $ - $ - $ -
Reverse Repurchase $ - $ - $ - $ -
Time Deposits $ 5,472,000,000.00 $ 5,472,000,000.00 $ 5,472,000,000.00 NA PMIA & GF Loans $ 266,015,740.00 $ 266,015,740.00 $ 266,015,740.00 NA TOTAL $ 165,337,897,206.96 $ 165,921,238,666.45 $ 165,918,058,193.55 $ 702,237,108.55 Fair Value Including Accrued Interest $ 166,620,295,302.10 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost).
The value of each participating dollar equals the fair value divided by the amortized cost (0.999980831) As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,999,616.63 or $20,000,000.00 x0.999980831 State of California
Pooled Money Investment Account
Market Valuation
3/31/2026
Attachment A-8 City
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 4
Meeting: May 5, 2026
Title: Request to Cancel the Regular City Council Meeting of May 19, 2026 Presented by: Chris Marcarello, City Manager
Recommendation: That the City Council consider cancelling the regular scheduled City Council Meeting of May 19, 2026.
DISCUSSION:
The City Council has legal authority to establish meeting dates and times and to cancel or reschedule such meetings with proper and timely public notice. Due to an anticipated lack of quorum, it is recommended that the City Council consider cancelling the meeting of May 19, 2026, and direct the City Clerk’s Office to post the required notice of cancellation.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 5
Meeting: May 5, 2026
Title: Confirmation of Mayor’s Appointments to Intergovernmental Agencies Presented by: Chris Marcarello, City Manager
Recommendation: Approve the Mayor’s appointments of delegates and alternates to Intergovernmental Agencies.
EXECUTIVE SUMMARY / BACKGROUND:
With each election and/or reorganization of the City Council, appointments are made by the Mayor to various organizations in which the City has membership or participates as a liaison. Certain organizations require the Mayor to serve as delegate and must be updated at the start of a new mayoral term.
DISCUSSION:
Attachment A to this staff report is the list of appointments that require the Mayor to serve as delegate, which includes the following organizations:
Sanitation Districts of Los Angeles County
City Selection Committee
FISCAL IMPACT:
Funding for necessary travel expenses has been authorized and budgeted in the City Council Conferences as Travel Account #1010-0010-53200.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
CITY OF COVINA
AGENCY DELEGATE ALTERNATE MEETING DAYS & TIMES STIPEND Notes Sanitation Districts of Los
Angeles County
19555 Workman Mill Road
Whittier, CA 90607
562-908-4288
[email protected]
Delgado Cortez 4
th Wednesday, Every Month at
1:30 pm, District Offices
Kimberly Christensen, Secretary to
Board
$125
Per mtg
*Mayor must be
Delegate; any
Councilmember
may be Alternate
*700 Form
Required
Foothill Transit
100 S. Vincent Ave, Ste 200
West Covina, CA 91790
626-931-7300 ext. 0
626-931-7304, Board Secretary
Allen Cortez Last Friday of each month at 7:45
am, except for Feb and Nov
Annual meeting is in May
Doran Barnes, CEO
[email protected]
$150
Per mtg
*700 Form
Required
Independent Cities Association
PO Box 39381
Downey, CA 90239
310-486-7555
[email protected]
Linares Allen 2
nd Thursday, Every Month Except
August at 7 pm
Marcel Rodarte, Business
Manager
n/a
League of California Cities
LA County Division
1400 K Street, Suite 400
Sacramento, CA 95814
626-786-5142
Allen Delgado 1
st Thursday of January, March, &
June (& as needed) at 6:30 pm
(various locations)
Jennifer Quan, Executive Director
[email protected]
n/a *Walt is Chair of
the League’s
Public Safety
Committee
San Gabriel Valley Council of
Governments (SGV COG)
1000 S. Fremont Ave. Unit #42
Alhambra, CA 91803
626-457-1800
[email protected]
Delgado Linares 3
rd Thursday, Every Month at 4 pm
Foothill Transit Office
100 S Vincent Ave, Ste 200
West Covina, CA 91790
Marisa Creter, Executive Director
Currently, meetings are virtual.
$75
Per mtg
*700 Form
Required
San Gabriel Valley Mosquito &
Vector Control District
1145 N. Azusa Canyon Road
West Covina, CA 91790
626-814-9466
Cortez 2
nd Friday, Every Month at 7 am
Jarrod Dever, District Manager
$100
Per mtg
SGV Water Association
(Watermaster)
725 N. Azusa Avenue
Azusa, CA 91702
626-815-1300
www.sgvwa.org
www.Watermaster.org
King Linares 1
st Wednesday, Every Month at
2:30 pm at San Gabriel Basin
Watermaster
Arrica Jimenez, Administration
Manager
[email protected]
n/a
Southern California Association
of Governments (SCAG)
900 Wilshire Blvd. Ste 1700
Los Angeles, CA 90017
213-630-1420
Delgado Cortez Annual/When Called
Kome Ajise, Executive Director
[email protected]
[email protected]
n/a *700 Form
Required for
committee
members only
City Selection Committee &
LAFCO
LA County Commission Services
Hall of Administration
Delgado Cortez When Called (Held in conjunction
w/League Meetings)
Lori Glasgow, Executive Officer
[email protected]
n/a *Mayor must be
Delegate; any
Councilmember
may be Alternate
ATTACHMENT A
MAY 5, 2026
MAYOR'S APPOINTMENTS TO INTERGOVERNMENTAL AGENCIES
CITY OF COVINA
MAYOR'S APPOINTMENTS TO BOARDS, COMMISSIONS AND COMMITTEES May 5, 2026
COUNCIL LIAISON TO BOARDS, COMMISSIONS, COMMITTEES
Community Recognition Committee – King/Allen
Finance Advisory Commission – Cortez/King
Library Board of Trustees – Delgado/King
(Library Community Room—6:30 pm/3rd Wednesday each month)
Planning Commission – Linares/Cortez
(Council Chambers @ 7:00 p.m. 2nd & 4th Tuesday each month) Traffic and Parking Advisory Commission – Delgado/Linares Youth Accountability Board – King/Linares
(Quarterly —check agenda for time and location)
City Auditors Committee – Cortez/Allen
(Meets twice a year with the City Auditors)
Covina Chamber of Commerce – Linares/King
Covina Concert Band – Allen/King
(Recreation Hall at Covina Park @ 9:00 a.m. on the 3rd Saturday of odd months, Jan. March, May, July, Sept., Nov.) Council Committee -- Policy Development Assignments
(Policy development assignments may occur throughout the year as needed) Code Enforcement – Linares/Allen
Parks & Recreation – King/Delgado
Planning – Cortez/Linares
Public Library – King/Delgado
Seniors – Allen/Cortez
500 W. Temple Street, Rm B50
Los Angeles, CA 90012
213-974-1411
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 6
Meeting: May 5, 2026
Title: Resolution CC 2026-28 Adopting the Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street as the City of Covina’s Fiscal Year 2027 Senate Bill 1 (SB 1) Projects Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: Adopt Resolution CC 2026-28 adopting the East Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street as the City of Covina’s Fiscal Year 2026 Senate Bill 1 (SB 1) Projects and reserving all FY 2026-2027 RMRA funds for project construction costs.
EXECUTIVE SUMMARY BACKGROUND:
Each year, the City receives transportation funding from the State of California, including grants and gas tax funds, through the Highway Users Tax Account (HUTA) for pavement rehabilitation improvement projects. Senate Bill 1 (SB 1) created the Road Maintenance and Rehabilitation Account (RMRA) to address deferred roadway improvements throughout the State. Funds made available through the RMRA Program can be used as matching funds for State or Federal grant programs or the completion of a variety of road and safety improvement projects. As such, the Department of Public Works is proposing to augment the City’s current SB 1 Project List and allocate all available FY2027 RMRA funds towards the completion of the Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street.
DISCUSSION:
The Road Repair and Accountability Act of 2017 (SB 1) provides additional funding to cities for basic road maintenance, rehabilitation, and critical safety needs on highways and local streets. Program funds are allocated to the Road Maintenance and Rehabilitation Account (RMRA), and it is estimated that the program will produce approximately $1.70 billion statewide in FY2027 of which the City will receive its annual distribution via a formula pursuant to Streets and Highways Code Section 2032.
Under the current formula, the City is estimated to receive approximately $1,439,402 in FY 2027.
The SB 1 Program began distributing related revenue to Covina since November 2017, and pertinent funds can be utilized for the following improvements:
Road Maintenance and Rehabilitation
Safety Projects
Railroad Grade Separations
Traffic Control Devices
Complete Street Components, including active transportation projects, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects in conjunction with any other allowable project
Pursuant to SB 1 Program guidelines, the City must annually adopt an SB 1 Local Streets and Roads Funding Program Project List, via Resolution, to appropriate funds and subsequently, drawdown funds
from the State. Following adoption of the resolution, the City is able to expand the project list to include new eligible projects.
The City’s current SB 1 Project List was approved by the City Council on May 6, 2025, and included the following project:
Barranca Avenue & Covina Boulevard Resurfacing Project from Workman Avenue to Cypress Street along Barranca Avenue and from Fairvale Avenue to Barranca Avenue along Covina Boulevard
As proposed for FY 2027, the new Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street will entail the removal and replacement of deteriorated pavement, sidewalks, curbs/gutters, installation of Americans with Disabilities Act-compliant pedestrian improvements, and signage/striping improvements. An estimated $1,439,402 in RMRA funds, comprised of the City’s FY 2027 allocation and remaining fund balance from previously completed SB-1 projects, will be allocated to the Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street with an estimated total project cost of $1.439 million, including contingencies and construction management. The Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street will be completed within 90 calendar days and the estimated useful life of the project is approximately 15 years.
The anticipated implementation schedule for Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street is as follows:
Project Design: July 2026 – September 2026
Award of Construction Project: October 2026
Start of Construction: January 2027
Completion of Construction: March 2027
A key requirement of SB 1 is that proposed projects submitted to the California Transportation Commission (CTC) must be adopted by the governing board at a regular public meeting. The list of projects must include a description and location of the project, a proposed schedule for the project’s completion, and the estimated useful life of the improvements. This action will fulfill this requirement and as proposed, staff will submit an updated project list to the CTC no later than July 1, 2026.
FISCAL IMPACT:
There is no fiscal impact to the general fund associated with approval of Resolution CC 2026-28 (Attachment A). An appropriation in FY27 RMRA funds for the Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to Puente Street will be included in the Fiscal Year 2027 Capital Improvement Program and the Fiscal Year 2027 Capital Improvement Program Budget.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
This project has been determined to be categorically exempt under CEQA in accordance with Title 14, Chapter 3, Class 1, Sections 15301 and 15302. This exemption includes the minor alteration of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The project involves negligible or no expansion of an existing use.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2026-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2026-2027 LOCAL
STREETS AND ROADS FUNDING PROGRAM PROJECT LIST,
FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT
OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017), was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Covina are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Covina must adopt an annual list of projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1 by resolution, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Covina is scheduled to receive an estimated $1,439,402 in Fiscal Year 2026-2027 (FY 2027) from SB 1; and
WHEREAS, this is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and costeffective projects; and WHEREAS, the funding from SB 1 will help the City of Covina rehabilitate 1.8 miles of Badillo Street, from Glendora Avenue to Sunflower Avenue, and Reeder Avenue from Badillo Street to Puente Street, and to provide for hundreds of similar projects in the future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City of Covina’s streets and roads are in a “good” condition, and this revenue will help to increase the overall quality of our road system; and
Resolution CC 2026-28 Page 2 of 3
WHEREAS, the Fiscal Year 2026-2027 SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The following proposed projects will be funded in-part or solely with Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account revenues:
Project Name: Badillo Street Resurfacing Project from Glendora Avenue to Sunflower Avenue and Reeder Avenue
from Badillo Street to Puente Street
Description: Existing pavement on Badillo Street and Reeder Avenue is in poor condition at a point of deterioration.
The overlay project will improve the pavement surface
and extend the overall life of the pavement. Estimated
total project cost is approximately $1.43 million,
including contingencies and construction
management. The project will be completed within 90
calendar days.
Location: Badillo Street from Glendora Avenue to Sunflower Avenue and Reeder Avenue from Badillo Street to
Puente Street.
Estimated Project Schedule: Start (July 2026) – Completion (March 2027) Estimated Useful Life: 15 years
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 5
th day of May, 2026.
City of Covina, California
BY:
HECTOR DELGADO, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
Resolution CC 2026-28 Page 3 of 3
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2026-28 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 5
th day of May, 2026 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
Dated:
_____________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 7
Meeting: May 5, 2026
Title: Award of Contract to Air-Bree Heating & A/C Inc. for Covina Public Library AC Unit Repair Project in the amount of $33,885.00
Presented by: Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Approve award of contract for the Air-Bree Heating & A/C Inc. for Covina Public Library HVAC Repair Project in the amount of $33,885.00 and authorize the City Manager to execute the contract; and
2. Authorize a contingency amount of $3,000 (approximately 10% of construction costs) for any unforeseen circumstances.
EXECUTIVE SUMMARY/BACKGROUND:
The Covina Public Library, located at 234 N. Second Avenue, has three HVAC units that service the building. Over the past several years, the units have required numerous repairs and replacements to miscellaneous components. Addressing these maintenance needs in a timely manner is of high importance as the Covina Public Library is a cooling center for the City’s residents. With a warmer than average winter season this year, the units did not see the usual decrease in usage as anticipated, which would typically extend the life cycle through the summer months. Instead, the warm weather required continuous use of all three units and, as a result, significantly increased the rate of normal wear and tear. At this juncture, all three units require repairs to maintain function and continue normal operations.
City staff recommends award of a Minor Construction & Maintenance Agreement to Air-Bree Heating & A/C, Inc. for the Covina Public Library HVAC Repair Project in the amount of $33,885.00 with a contingency of $3,000 (approximately 10%) for any unforeseen circumstances. The scope of work includes refrigerant leak checks, coil replacements/maintenance, filter replacements, rewiring, and other ancillary repairs. These repairs prepare the Covina Public Library for the hot summer months, ensuring the facility can continue to act as a cooling center and remain a comfortable place to visit and work.
DISCUSSION:
Pursuant to informal bidding procedures, City staff solicited qualified contractors to perform the specified scope of work. The solicitation included service / repairs of all three HVAC units at the Covina Public Library as, without such repairs, the units risk full failure and may require complete replacement.
After solicitation, two of the contractors, Control Air Enterprises LLC and American Cooling, informed City staff they do not have the scope to perform repairs on the first and third units – such is reflected in their bid amounts. The following are the results for the Covina Public Library AC Unit Repair Project, with Air-Bree Heating & A/C Inc. as the only contractor able to perform the necessary work on all three units:
Rank Vendor Location Amount
1 Air-Bree Heating & A/C Inc. La Puente, CA $33,885.00
2 Control Air Enterprises LLC Anaheim, CA $23,861.00
3 American Cooling Riverside, CA $25,789.00
City staff reviewed all proposal documents as well as the contractor’s background and recent projects for competence and determined Air-Bree Heating & A/C, Inc. to be the lowest responsive and responsible bidder (Attachment A). As such, it is recommended that a Minor Construction and Maintenance Service Agreement (Attachment B) for the Covina Public Library HVAC Repair Project be awarded to Air-Bree Heating & A/C, Inc. as the lowest responsive and responsible bidder in the amount of $33,885.00.
FISCAL IMPACT:
Sufficient funding is available in the Public Works Department Operational Budget, Building Maintenance Budget (Account No. 70206100-52490), approved as part of the Fiscal Year 2025-2026 Citywide Budget at City Council on May 6, 2025.
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,
Comments:
1- All work to be done during working hours and as clean and professional as per job requires.
2- Permits, HERS rater or any other work other than the above mentioned, it’ll be an accrued cost if necessary.
3- Any questions or concerns please feel free to contact us, Thank You
Subtotal: $ 33,885.00
Estimate Amount $ 33,885.00
Company Signature 03/25/2026
Estimate
Air-Bree Heating & A/C Inc
LIC. NO. 544484
132 S. 5th AVE
La Puente, CA 91746
OfØce Phone: 626-330-7722
[email protected]
Estimate Number: E260325932
Estimate Date: 03/25/2026
Payment Terms: Due On Receipt
Estimate Amount: 33,885.00
Billing Address
CITY OF COVINA
FINANCE DEPARTMENT
125 E. COLLEGE ST.
COVINA, CA 91723
[email protected], [email protected]…
Shipping Address
COVINA LIBRARY
234 N. SECOND ST.
COVINA, CA
Item Name Quantity Unit Price Taxable Total
QUOTE PRICE
system # 1
Refrigerant leak check and repair as necessary,wash condenser coils,labor and start up
1.00 3,865.00 3,865.00
QUOTE PRICE
System # 2
2 compressor & contactors replacement.
Consist of :
Recover refrigerant and recycle, remove both compressors Ølter driers, install new, solder, pressurize, leak check, vacuum and charge with 62 lbs. of R410a refrigerant as per name plate requires, rewire, replace both contactors, and rewire, wash system’s condenser coils, labor and start up.
1.00 22,740.00 22,740.00
QUOTE PRICE
System # 3
CONDENSER COIL REPAIR.
Consist of :
Remove leaking condenser coil and have condenser coil repair company repair as necessary,reinstall,replace Ølter drier and check for leaks ,charge system with R22 refrigerant,labor and start up.
1.00 7,280.00 7,280.00
ATTACHMENT A
PLEASE MAKE CHECKS PAYABLE TO::
AIR-BREE HEATING & A/C INC
Past due invoices will be charged with a 10% Ønance fee, including monthly payments.
CITY OF COVINA AGREEMENT FOR
MINOR CONSTRUCTION AND MAINTENANCE SERVICES
This Agreement (“Agreement”) is dated May 5, 2026 (“Effective Date”) and is between the City of Covina, a California municipal corporation (“City”) and Air-Bree Heating & A/C Inc., a California corporation (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
A. City desires to utilize the services of Contractor as an independent contractor to perform HVAC repairs at the Covina Public Library located at 234 N. Second Avenue, Covina, CA 91723.
B. Contractor represents that it is fully qualified to perform such work by virtue of its experience and the training, education and expertise of its principals and employees.
C. City desires to retain Contractor and Contractor desires to serve City to perform this work in accordance with the terms and conditions of this Agreement.
The parties therefore agree as follows:
1. Term of Agreement. The term of this Agreement shall be from the Effective Date through July 30, 2026 unless sooner terminated as provided in Section 14 of this Agreement. The City may, upon mutual agreement, extend the contract for one (1) additional one year terms. In no event shall the contract be extended beyond June 30, 2027.
2. Compensation.
A. Cost of Work. For the Work described in Section 3 of this Agreement, Contractor shall receive the sum of exceed Thirty-Three Thousand Eight Hundred Eighty-Five Dollars ($33,885.00) payable in accordance with the Schedule of Payments, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule). Any terms other than a description of the work to be performed, costs of the work, or the payment schedule contained in Exhibit A is null and void and not a part of this Agreement.
B. Expenses. The amount set forth in paragraph A shall include reimbursement for all actual and necessary expenditures reasonably incurred in the performance of this Agreement.
C. Additional Services. City shall not allow any claims for additional services performed by Contractor, unless the City Council and the Contractor Representative authorize the additional services in writing prior to Contractor’s performance of the additional services or incurrence of additional expenses. Any additional services or expenses authorized by the City Council shall be compensated at the rates set forth in Exhibit A (Scope of Work and Payment Schedule), or, if not specified, at a rate mutually agreed to by the parties. City shall make payment for additional services and expenses in accordance with Section 4 of this Agreement.
ATTACHMENT B
3. Contractor’s Work.
A. Scope of Services. Contractor shall construct and install all of the work described in the Scope of Work, attached hereto and incorporated herein as Exhibit A (Scope of Work and Payment Schedule) and shall provide and furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the Work. All of said Work to be performed and materials to be furnished for the Work shall be in strict accordance with the specifications set forth in the Scope of Work. The Work shall be completed within the time set forth in the Scope of Work. Contractor shall not commence the Work until such time as directed in writing by the City. City may request, in writing, changes in the Scope of Work to be performed. Any changes mutually agreed upon by the parties, and any increase or decrease in compensation, shall be incorporated by written amendments to this Agreement.
B. Party Representatives. For the purposes of this Agreement, the City Representative shall be the City Manager, or such other person designated in writing by the City Manager (the “City Representative”). For the purposes of this Agreement, the Contractor Representative shall be Name, Title (the “Contractor Representative”). The Contractor Representative shall directly manage Contractor’s Work under this Agreement. Contractor shall not change the Contractor Representative without City’s prior written consent.
C. Time for Performance. Contractor shall commence the Work on the Effective Date and shall perform all Work by the deadline established by the City Representative or, if no deadline is established, with reasonable diligence.
D. Standard of Performance. Contractor shall perform all Work under this Agreement in accordance with the standard of care generally exercised by like professionals under similar circumstances and in a manner reasonably satisfactory to City.
E. Personnel. Contractor has, or will secure at its own expense, all personnel required to perform the Work required under this Agreement. All of the Work required under this Agreement shall be performed by Contractor or under its supervision, and all personnel engaged in the work shall be qualified to perform such Work. Contractor shall determine the means, methods, and details by which Contractor’s personnel will perform the Work under this Agreement.
Contractor shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work and compliance with the customary professional standards.
F. Compliance with Laws. The Contractor shall keep itself informed of all local, state and federal ordinances, laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such ordinances, laws and regulations. The City and its agents shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this section. This Agreement may call for services that, in whole or in part, constitute “public works,” as defined in the California Labor Code. Therefore, as to those services that may be “public works”, including construction services. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit B.
G. Permits and Licenses. Contractor shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the provision of services under this Agreement, including a business license.
H. City Approval. All labor, materials, tools, equipment, and services shall be furnished and work performed and completed subject to the approval of City or its authorized representatives, and the quality of the workmanship shall be guaranteed for one year from date of acceptance.
I. Contractor's Independent Investigation. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by City for purposes of letting this Contract out to proposal will be accepted as an excuse for any failure or omission on the part of the Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
J. Contractor's Affidavit. After the completion of the Work contemplated by this Agreement, Contractor shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors on the Work have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice which has been filed under the provisions of the laws of the State of California.
K. Utility Location. City acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215.
L. Regional Notification Centers. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4215.
M. Inspection. The Work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the Work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the Work.
N. Warranty. Contractor shall guarantee or warranty the work done pursuant to this Agreement for a period of one year following acceptance thereof by City against any defective work or labor done or defective materials furnished.
O. Liquidated Damages; Extension Of Time. In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the sum of one Thousand Dollars ($1,000.00) per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 3 of this Agreement. Such sum shall be deducted from any payments due to or to become due to Contractor. Contractor will be granted an extension of time and will not be assessed liquidated damages far unforeseeable delays beyond the control of, and without the fault or negligence of, the Contractor including delays caused by City. Within ten (10) calendar days of the occurrence of such delay, Contractor shall give written notice to City. Within thirty (30)
calendar days of the occurrence of the delay, Contractor shall provide written documentation sufficient to support its delay claim to City. Contractor's failure to provide such notice and documentation shall constitute Contractor's waiver, discharge, and release of such delay claims against City.
4. Method of Payment.
A. Invoices. Contractor shall submit to City an invoice, on a monthly basis or less frequently, for actual services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount due. If City disputes any of Contractor's fees, it shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
B. Payment. City shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in Section 2 of this Agreement. City shall not withhold federal payroll, state payroll or other taxes, or other similar deductions, from payments made to Contractor. For all reimbursements authorized by this Agreement, Contractor shall provide receipts on all reimbursable expenses in excess of Fifty Dollars ($50) in such form as approved by the Finance Director.
C. Audit of Records. Contractor shall make all records, invoices, time cards, cost control sheets and other records maintained by Contractor in connection with this agreement available during Contractor’s regular working hours to City for review and audit by City.
D. Waiver of Claims. On or before making final request for payment under Paragraph B, above, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Agreement; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release and indemnify agreement with each claim for payment.
5. Ownership of Documents. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files containing data generated for the work, surveys, notes, and other documents prepared in the course of providing the services to be performed (“written products”) pursuant to this Agreement shall become the sole property of the City without restriction or limitation upon its use and may be used, reused, disseminated or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files containing data generated for the work, Contractor shall make available to the City, upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. Contractor may take and retain copies of the written products as desired, but the written products shall not be the subject of a copyright application by Contractor.
6. Independent Contractor.
A. Contractor is, and shall at all times remain as to City, a wholly independent contractor and not an employee of City. The personnel performing the services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor's exclusive direction and control. Contractor shall have no power to incur any
debt, obligation, or liability on behalf of City. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees. Contractor shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Contractor and Contractor’s personnel shall not supervise any of City’s employees; and City’s employees shall not supervise Contractor’s personnel. Contractor’s personnel shall not wear or display any City uniform, badge, identification number, or other information identifying such individual as an employee of City; and Contractor’s personnel shall not use any City e-mail address or City telephone number in the performance of any of the services under this Agreement. Contractor shall acquire and maintain, at its sole cost and expense, such vehicles, equipment, and supplies as Contractor’s personnel require to perform any of the services required by this Agreement. Contractor shall perform the services off of City premises at locations of Contractor’s choice, except as otherwise may from time to time be necessary in order for Contractor’s personnel to receive projects from City, review plans on file at City, pick up or deliver any work product related to Contractor’s performance of the Work under this Agreement, or as may be necessary to inspect or visit City locations and/or private property to perform the services.
City may make a computer available to Contractor from time to time for Contractor’s personnel to obtain information about or to check on the status of projects pertaining to the services under this Agreement.
B. No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing Work hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing Work hereunder. Contractor shall be responsible for and pay all wages, salaries, benefits and other amounts due to Contractor’s personnel in connection with their performance of the Work under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, other retirement or pension benefits, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. Notwithstanding any other agency, state, or federal policy, rule, regulation, statute or ordinance to the contrary, Contractor and any of its officers, employees, agents, and subcontractors providing any of the Work under this Agreement shall not become entitled to, and hereby waive any claims to, any wages, salaries, compensation, benefit or any incident of employment by City, including, but not limited to, eligibility to enroll in, or reinstate to membership in, the California Public Employees Retirement System (“PERS”) as an employee of City, and entitlement to any contribution to be paid by City for employer contributions or employee contributions for PERS benefits.
C. Contractor shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s personnel practices. or to the extent arising from, caused by, or relating to the violation of any of the provisions of this Section
6. In addition to all other remedies available under law, City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. This duty of indemnification is in addition to
Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
7. PERS Compliance and Indemnification.
A. General Requirements. The parties acknowledge that City is a local agency member of PERS, and as such has certain pension reporting and contribution obligations to PERS on behalf of qualifying employees. Contractor agrees that, in providing its employees and any other personnel to City to perform the Work under this Agreement, Contractor shall assure compliance with the Public Employees’ Retirement Law, commencing at Government Code Section 20000, the regulations of PERS, and the Public Employees’ Pension Reform Act of 2013, as amended.
Without limitation to the foregoing, Contractor shall assure compliance with regard to personnel who have active or inactive membership in PERS and to those who are retired annuitants and in performing this Agreement shall not assign or utilize any of its personnel in a manner that will cause City to be in violation of the applicable retirement laws and regulations.
B. Indemnification. Contractor shall defend (with legal counsel approved by City, whose approval shall not be unreasonably withheld), indemnify, and hold harmless City, and its City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs, and expenses of any nature to the extent arising from, caused by, or relating to Contractor’s violation of any provisions of this Section 7. This duty of indemnification is in addition to Contractor’s duty to defend, indemnify, and hold harmless as set forth in any other provision of this Agreement.
8. Confidentiality. All data, documents, discussion, or other information (collectively “data”) developed or received by Contractor or provided for performance of this Agreement are deemed confidential. Contractor shall keep all data confidential and shall not disclose any data to any person or entity without City’s prior written consent. City shall grant such consent if disclosure is legally required. Contractor shall return all data to City upon the expiration or termination of this Agreement. Contractor’s covenant under this Section 8 shall survive the expiration or termination of this Agreement.
9. Conflicts of Interest. Contractor and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Contractor’s Work under this Agreement, including the Political Reform Act (Gov.
Code, § 81000 et seq.) and Government Code Section 1090. During the term of this Agreement, Contractor may perform similar services for other clients, but Contractor and its officers, employees, associates and subcontractors shall not, without the City Representative’s prior written approval, perform work for another person or entity for whom Contractor is not currently performing work that would require Contractor or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Contractor shall incorporate a clause substantially similar to this Section 9 into any subcontract that Contractor executes in connection with the performance of this Agreement.
10. Indemnification.
A. Indemnities for Third Party Claims.
1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens and losses of any nature whatsoever, including fees of accountants, attorneys or other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liability with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. 2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees. Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws.
City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this Subparagraph A. 2). 3) Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 10 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the parties.
B. Workers’ Compensation Acts not Limiting. Contractor’s indemnifications and obligations under this Section 10, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.
C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 10 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liability, tax, assessment, penalty or interest asserted against City.
D. Survival of Terms. Contractor’s indemnifications and obligations under this Section 10 shall survive the expiration or termination of this Agreement.
11. Insurance.
A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Four Million Dollars ($4,000,000) per project or location.
If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of Two Million Dollars ($2,000,000) per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Work under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under Subparagraph A. 1) of this Section 11. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of Two Million Dollars ($2,000,000) per accident for bodily injury or disease. If Contractor has no employees while performing Work under this Agreement, workers’ compensation policy is not required, but Contractor shall provide an executed declaration that it has no employees.
B. Acceptability of Insurers. The insurance policies required under this Section 11 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self-insurance shall not be considered to comply with the insurance requirements under this Section 11.
C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming the City, its officers, employees, agents and volunteers as additional insureds.
D. Primary and Non-Contributing. The insurance policies required under this Section 11 shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.
E. Contractor’s Waiver of Subrogation. The insurance policies required under this Section 11 shall not prohibit Contractor and Contractor’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against City.
F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be approved by City. At City’s option, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.
G. Cancellations or Modifications to Coverage. Contractor shall not cancel, reduce or otherwise modify the insurance policies required by this Section 11 during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) calendar days’ prior written notice to City. If any insurance policy required under this Section 11 is canceled or reduced in coverage or limits, Contractor shall, within two (2) business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.
H. City Remedy for Noncompliance. If Contractor does not maintain the policies of insurance required under this Section 11 in full force and effect during the term of this Agreement, or in the event any of Contractor’s policies do not comply with the requirements under this Section 11, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Contractor’s expense, the premium thereon. Contractor shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.
I. Evidence of Insurance. Prior to the performance of Work under this Agreement, Contractor shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 11. The endorsements are subject to City’s approval. Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current endorsements on file with City’s Risk Manager. Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.
J. Indemnity Requirements not Limiting. Procurement of insurance by Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 10 of this Agreement.
K. Subcontractor Insurance Requirements. Contractor shall require each of its subcontractors that perform Work under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 11.
12. Mutual Cooperation.
A. City’s Cooperation. City shall provide Contractor with all pertinent data, documents and other requested information as is reasonably available for Contractor’s proper performance of the Work required under this Agreement.
B. Contractor’s Cooperation. In the event any claim or action is brought against the City relating to Contractor’s performance or Work rendered under this Agreement, Contractor shall render any reasonable assistance that City requires.
13. Records and Inspections. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of five (5) years. Contractor shall, without charge, provide City with access to the records during normal business hours. City may examine and audit the records and make transcripts therefrom, and inspect all program data, documents, proceedings and activities.
14. Termination or Suspension of Agreement.
A. Right to Terminate or Suspend. City may terminate or suspend this Agreement at any time, at will, for any reason or no reason, after giving written notice to Contractor at least seven (7) calendar days before the termination or suspension is to be effective. Contractor may terminate this Agreement at any time, at will, for any reason or no reason, after giving written notice to City at least sixty (60) calendar days before the termination is to be effective.
B. Obligations upon Termination. Contractor shall cease all work under this Agreement on or before the effective date of termination specified in the notice of termination. In the event of City’s termination of this Agreement due to no fault or failure of performance by Contractor, City shall pay Contractor based on the percentage of work satisfactorily performed up to the effective date of termination. In no event shall Contractor be entitled to receive more than the amount that would be paid to Contractor for the full performance of the Work required by this Agreement.
15. Force Majeure. Contractor shall not be liable for any failure to perform its obligations under this Agreement if Contractor presents acceptable evidence, in City’s sole judgment, that such failure was due to strikes, lockouts, labor disputes, embargoes, acts of God, inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental controls, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond Contractor’s reasonable control and not due to any act by Contractor.
16. Notices. Any notices, consents, requests, demands, bills, invoices, reports or other communications which either party may desire to give to the other party under this Agreement must be in writing and conclusively deemed effective: (a) on personal delivery, (b) on confirmed delivery by reputable document delivery service or courier service during Contractor’s and City's regular business hours, or (c) five business days after deposit in the United States mail, by first class mail, postage prepaid, and addressed to the party to be notified as set forth below:
If to City: If to Contractor:
Attn: Public Works, Building Maintenance Attn:
City of Covina Air-Bree Heating & A/C Inc.
125 E. College Street 132 S. 5th Ave
Covina, California 91723 La Puente, CA 91746
17. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Contractor shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information, sexual orientation or other basis prohibited by law.
Contractor will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental disability, medical condition, genetic information or sexual orientation.
18. Prohibition of Assignment and Delegation. Contractor shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without City’s prior written consent. City’s consent to an assignment of rights under this Agreement shall not release Contractor from any of its obligations or alter any of its primary obligations to be performed under this Agreement. Any attempted assignment or delegation in violation of this Section 18 shall be void and of no effect and shall entitle City to terminate this Agreement. As used in this Section 18, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs.
19. No Third-Party Beneficiaries Intended. Except as otherwise provided in Section 10, this Agreement is made solely for the benefit of the parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.
20. Waiver. No delay or omission to exercise any right, power or remedy accruing to City under this Agreement shall impair any right, power or remedy of City, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver of any breach, any failure of a condition, or any right or remedy under this Agreement shall be (1) effective unless it is in writing and signed by the party making the waiver, (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy, or (3) deemed to constitute a continuing waiver unless the writing expressly so states.
21. Exhibits. Exhibits A, B, C, and D constitute a part of this Agreement and are incorporated into this Agreement by this reference. If any inconsistency exists or arises between a provision of this Agreement and a provision of any exhibit, the provisions of this Agreement shall control.
22. Entire Agreement. This Agreement and all exhibits referred to in this Agreement constitute the final, complete and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement and supersede all other prior or contemporaneous oral or written understandings and agreements of the parties. No party has been induced to enter into this Agreement by, nor is any party relying on, any representation or warranty except those expressly set forth in this Agreement.
23. Amendment of Agreement. This Agreement may be amended only by a writing signed by both parties. If the City Manager has entered into this Agreement on behalf of the City, the City Manager may approve an amendment to this Agreement and additional payment up to the amount of his contract authority. If this Agreement was originally approved by the City Council, then any amendments shall be approved by the City Council, except that the City Manager may approve amendments extending the time for performance, modifying the scope of work without any change to the maximum payment, approving a change in name of the Contractor, or terminating the Agreement.
24. Headings. The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the parties to this Agreement.
25. Word Usage. Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.
26. Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance; provided, however, that the foregoing shall not be construed to limit or deprive a party of the benefits of any grace or use period allowed in this Agreement.
27. Governing Law and Choice of Forum. This Agreement, and any dispute arising from the relationship between the parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in a municipal, superior or federal court with geographic jurisdiction over the City of Covina.
28. Attorneys’ Fees. In any litigation or other proceeding by which on party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing party shall be shall be awarded reasonable attorneys’ fees together with any costs and expenses, to resolve the dispute and to enforce the final judgment.
29. Claim Dispute Resolution. In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters. All claims arising out of or related to the Agreement or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims.
All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to
Article 1.5 and Section 9204, as applicable, pursuant to the definition of "claim" as individually defined therein.
30. Severability. If a court of competent jurisdiction holds any provision of this Agreement to be illegal, invalid or unenforceable for any reason, the validity of and enforceability of the remaining provisions of this Agreement shall not be affected and continue in full force and effect.
31. Authority to Execute Agreement. The person or persons executing this Agreement on behalf of Contractor warrants and represents that he or she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
[SIGNATURE PAGE FOLLOWS]
The parties, through their duly authorized representatives, are signing this Agreement on the date stated in the introductory clause.
City:
City of Covina,
a California municipal corporation
By:
Name: Chris Marcarello
Title: City Manager
ATTEST:
By:
Name: Fabian Velez
Title: Chief Deputy City Clerk
Contractor:
Air-Bree Heating & A/C Inc.
a California corporation
By:
Name:
Title:
By:
Name:
Title:
(Two signatures of corporate officers required
for corporations under Corporations Code
Section 313, unless corporate documents
authorize only one person to sign this
Agreement on behalf of the corporation.)
EXHIBIT A
SCOPE OF WORK AND PAYMENT SCHEDULE
EXHIBIT B
CALIFORNIA LABOR CODE COMPLIANCE
(Labor Code §§ 1720 et seq., 1813, 1860, 1861, 3700)
If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code, then:
1. This Agreement is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”) and Contractor agrees to be bound by all the provisions thereof as though set forth in full herein.
2. Contractor shall be registered with the Department of Industrial Relations (“DIR”) in accordance with California Labor Code Section 1725.5 and has provided proof of registration to City prior to the Effective Date of this Agreement.
3. Contractor shall comply with the provisions of California Labor Code Sections 1771, 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The applicable prevailing wage determination(s) may be obtained at (http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm), are on file with City, and are available to any interested party upon request. Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under this Agreement by Contractor or by any subcontractor.
4. Pursuant to California Labor Code Section 1771.4, Contractor’s services are subject to compliance monitoring and enforcement by the Department of Industrial Relations.
Contractor shall post job site notices as prescribed by DIR regulations and agrees to furnish the records specified in California Labor Code Section 1776 directly to the Labor Commissioner in the manner prescribed by California Labor Code Section 1771.4(a)(3) and (c)(2).
5. Contractor shall comply with the provisions of California Labor Code Section 1776 which, among other things, require Contractor and each subcontractor to: (1) keep accurate payroll records, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform City of the location of the records. Contractor is responsible for compliance with Section 1776 by itself and all of its subcontractors.
6. Contractor shall comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that Contractor is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.
7. Contractor shall comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor for each calendar day during which such
worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.
8. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”
Date _______________ Signature ____________________________________
EXHIBIT C
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
Covina Public Library HVAC Repairs
(Project Description/ Name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of Dollars ($ ), this
amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
EXHIBIT D
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of Covina (“City”), State of California, has awarded to (“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
Covina Public Library HVAC Repairs
(Project Description/Name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of Dollars
($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of
its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration or addition.
IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
“Principal”
By:
Its
By:
Its
(Seal)
“Surety”
By:
Its
By:
Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 8
Meeting: May 5, 2026
Title: AB481 Annual Report for 2025
Presented by: Ric Walczak, Chief of Police
Recommendation: Review and Approve AB481 Annual Report for 2025.
EXECUTIVE SUMMARY:
AB481 requires a law enforcement agency to declare the funding, acquisition and use of military equipment to its governing body. Military equipment is defined within AB481. AB481 requires a law enforcement agency to review and/or audit the funding, acquisition and use of military equipment on an annual basis. The attached report includes a review and/or audit of year 2025 and declares the Police Department’s inventory, inventory description, training and budget projections pertaining to military equipment.
DISCUSSION:
Assembly Bill No. 481 (AB481) was approved by the Governor in September 2021. The Covina Police Department met the requirement of AB481 in 2023 as required. This included adopting a military equipment policy (706), creating an of inventory of equipment that met the definition of military equipment per AB481 and included other pertinent information about the equipment per AB481 requirements. This inventory/report was presented to the City Council by the Chief of Police in April 2022 and approved/adopted by ordinance. Since this time, the Department has completed an inventory/report on an annual basis. The inventory/report reviews year 2025 and introduces 2026 inventory.
FISCAL IMPACT:
None. The existing Police Department budget addresses projected 2026 costs.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 9
Meeting: May 5, 2026
Title: Memorandum(s) of Understanding with Covina Valley Unified and Charter Oak Unified and School Districts Regarding School Resource Officers Presented by: Ric Walczak, Chief of Police
Recommendation: Approve the two Memorandum of Understanding (MOU) to assign School Resource Officers (SRO) within Covina Valley Unified and Charter Oak Unified School Districts and authorize the City Manager or his designee to execute the MOUs.
EXECUTIVE SUMMARY:
The item before you will continue the community partnership the Covina Police Department has with the Charter Oak Unified School District for one (1) sworn police officer to be funded by COUSD and assigned to Charter Oak High School, and continues our community partnership with the Covina-Valley Unified School District for two (2) sworn police officers to be funded by CVUSD and assigned to Covina and Northview High Schools.
DISCUSSION:
The Covina Police Department School Resource Officer program was implemented in February 1994 in partnership with the Charter Oak Unified School District. In September 2002, Covina Valley Unified School District joined the program with a SRO assigned to split time at their two high schools located in Covina
Historically the Covina Police Department has had a solid partnership with its schools in an effort to increase safety and security at local campuses. Various programs have included education on substance abuse, criminal gang awareness and school safety measures. A highly trained sworn law enforcement officer is a benefit to any school. As a First Responder already on campus, their visible presence increase security aspects, builds rapport with staff, students and parents and is a method for investigation and intervention.
Through strong partnerships with Charter Oak Unified and Covina Valley Unified, the Covina Police Department is in a position to assign one (1) sworn Covina Police Officer to the Charter Oak High School, and two (2) sworn Covina Police Officers to be deployed to Covina and Northview High Schools.
FISCAL IMPACT:
The Police Department is in constant communication with the districts and remain flexible as to SRO specific scheduling. The personnel cost of the existing full-time SROs will be reimbursed pursuant to the Memorandum of Understanding between the City of Covina and the Districts. The Districts will be billed for actual wages and applicable benefits for the positions incurred during the regular school year.
This program requires no additional general fund appropriations.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
between
CITY OF COVINA AND CHARTER OAK UNIFIED SCHOOL DISTRICT
This Memorandum of Understanding (hereinafter referred to as “MOU” or agreement) is entered into by the City of Covina (City) and Charter Oak Unified School District (District) for the purpose of continuing the School Resource Officer (SRO) program with Charter Oak Unified School District, commencing at the start of the 2026-2027 school year. This MOU will terminate at the conclusion of the last Charter Oak Unified School District 2027 graduation.
It is mutually agreed that the Covina Police Department (Department) will provide one (1) sworn law enforcement officer to Charter Oak Unified School District to act as a School Resource Officer (SRO). This officer will be selected by the Chief of Police and will act first and foremost as a law enforcement officer. The officer may be required to perform duties as the Principal may request in writing within the parameters established by the Covina Police Department and approved by the Chief of Police in writing. Any conflicts in interpretation of the SRO’s duties and responsibilities should be resolved jointly between the Principal and the Chief of Police. Where conflict resolution is not possible, the Chief of Police will retain the authority for the final decision.
The SRO is and shall be at all times remain a wholly independent contractor as to the District. The SRO is and shall remain at all times an employee of the Covina Police Department with all rights, benefits, and privileges thereto and shall be under the City’s exclusive control and direction. As the employer of the SRO, the Covina Police Department will provide Workers’ Compensation Insurance for the SRO, when appropriate depending on the job classification and/or part-time/full-time status. Covina Police Department will pay the SRO’s salary. The District will be billed 100% of the assigned officer’s actual wage, on an hour-by-hour basis for the time assigned to the District. The Department will bill the District for these costs on a monthly basis.
The SRO will ordinarily be attired in a police uniform; however, will work on occasion in plain clothes. The SRO will normally work four (4) days a week, ten (10) hours a day, and will be assigned to the Charter Oak Unified School District.
If the SRO is a part-time employee, the City and School District must understand the limitation in hours worked within a Fiscal Year, normally 960 hours.
Therefore, communication in hours worked and available hours are essential for the program’s success. The SRO will coordinate all of his/her activities with the Principal and concerned staff members, and will seek permission, guidance, and advice prior to enacting any program within the school.
ATTACHMENT A
The SRO’s duties and responsibilities will include, but not be limited to the following:
Safety
Shall work under the direction and supervision of the Operations Division of the Covina Police Department in cooperation with the school site principal
Act as liaison between the students/staff and the Covina Police Department.
Act as liaison between Covina Police Department and other First Responders through effective communication when responding to emergencies, reports of crime and school safety matters. Provide safety to the students and staff by investigating all crimes as it pertains to the identified District sites, and take appropriate action in regard to the law and other applicable statutes.
Take reasonable precautions to protect the privacy of students as well as promote safety and education.
Provide intelligence information to the City and the District as it pertains to safety, service, and the prevention of crime.
Assist staff in matters of school safety through the school day, with attention paid to root causes and referral to appropriate counseling and mentoring services.
Education
Maintain a friendly, approachable presence at District events. Promote school attendance and engagement.
Assist with outreach through student, school, and home contacts, and referral to appropriate District partners and agencies. Assist and attend meetings of the School Attendance Review Board (SARB) when appropriate.
Be responsible for education on a variety of subjects related to crime and safety.
Assist in the promotion of college, career and trade opportunities. Where appropriate, present classroom lessons pertaining to the danger of substance abuse, school site safety, personal safety, pedestrian/bicycle safety, internet safety and cyberbullying safety.
Provide positive reinforcement to students via mentoring, a visible presence and a role model through positive and professional relationships with students and staff.
With Department approval, assist with planning and implementation of community and school sponsored events including, but not limited to Red Ribbon Week, Substance Abuse presentations, Domestic Violence Prevention programs, and Gang Awareness presentations, as well as others appropriate events.
ATTACHMENT A
With Department approval, attend orientation and other related student and family programs from District partners.
With Department approval, attend extra-curricular student activities where the SRO’s role is needed, and may be covered via overtime pay or the use of flex time.
The precise responsibilities of the SRO shall be mutually agreed upon between COUSD and the Covina Police Department representative in writing. The SRO will be assigned to COUSD by the Police Department and evaluated by his/her Police Department Division Captain or designee with input from COUSD.
1. The District will provide office space, necessary furniture, office supplies and telephone for the SRO to carry out their duties per the Agreement.
2. The City will provide a motor vehicle for the SRO to perform their duties.
3. COUSD will pay the City for SRO services, based on the assigned officer’s salary and benefits as of 7/01/2026 for the duration of this MOU.
The Police Department will bill COUSD at the end of each month and the invoice shall be payable within 30 days from the time of receipt.
4. This MOU may be terminated upon 30 days written notice by either party at any time, without cause.
5. The term of this MOU shall be for the 2026-2027 academic school year.
The District agrees to protect, hold harmless, defend and indemnify the City, officials, employees, officers, agents, and volunteers (collectively “City Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the District in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the City Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.
The City agrees to protect, hold harmless, defend and indemnify the District officials, employees, officers, agents, and volunteers (collectively “District Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the City in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the District Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.
This MOU is the final and entire agreement between the Parties. All agreements of the Parties with respect to the subject matter hereof are in writing and supersede all prior written and oral agreements and understandings. This
ATTACHMENT A
Agreement cannot be modified except by a written document signed by both of the Parties. None of the Parties are relying upon any other negotiations, discussions, or agreements in connection with the subject matter of this Agreement. This is a fully integrated Agreement.
The Parties agree that all actions or proceedings arising in connection with this MOU shall be tried and litigated exclusively in the Superior Court of California located in the County of Los Angeles, State of California.
I have read and understand this Memorandum of Understanding and the information contained within.
CITY OF COVINA CHARTER OAK UNIFIED SCHOOL
DISTRICT
Christopher Marcarello Dr. Danny Kim
City Manager District Superintendent
Date Date
Ric Walczak Cristian Aguilar, Ph.D.
Chief of Police President, Governing Board
Date Date
ATTACHMENT B
MEMORANDUM OF UNDERSTANDING
between
CITY OF COVINA AND COVINA VALLEY UNIFIED SCHOOL DISTRICT This Memorandum of Understanding (hereinafter referred to as “MOU” or agreement) is entered into by the City of Covina (City) and Covina Valley Unified School District (District) for the purpose of continuing the School Resource Officer (SRO) program with Covina Valley Unified School District, commencing at the start of the 2026-2027 school year. This MOU will terminate at the conclusion of the last Covina Valley Unified School District 2027 graduation.
It is mutually agreed that the Covina Police Department (Department) will provide up to two (2) sworn law enforcement officers to Covina Valley Unified School District to act as a School Resource Officer (SRO) based on staffing levels.
These officers will be selected by the Chief of Police and will act first and foremost as a law enforcement officer. These officers may be required to perform duties as the Principal may request in writing within the parameters established by the Covina Police Department and approved by the Chief of Police in writing.
Any conflicts in interpretation of the SRO’s duties and responsibilities should be resolved jointly between the Principal and the Chief of Police. Where conflict resolution is not possible, the Chief of Police will retain the authority for the final decision.
The SRO is and shall be at all times remain a wholly independent contractor as to the District. The SRO is and shall remain at all times an employee of the Covina Police Department with all rights, benefits, and privileges thereto and shall be under the City’s exclusive control and direction. As the employer of the SRO, the Covina Police Department will provide Workers’ Compensation Insurance for the SRO, when appropriate depending on the job classification and/or part-time/full-time status. Covina Police Department will pay the SRO’s salary. The District will be billed 100% of the assigned officer’s actual wage, on an hour-by-hour basis for the time assigned to the District. The Department will bill the District for these costs on a monthly basis.
The SRO will ordinarily be attired in a police uniform; however, will work on occasion in plain clothes. The SRO will normally work four (4) days a week, ten (10) hours a day, and will be assigned to the Covina Valley Unified School District. If the SRO is a part-time employee, the City and School District must understand the limitation in hours worked within a Fiscal Year, normally 960 hours. Therefore, communication in hours worked and available hours are essential for the program’s success. The SRO will coordinate all of his/her activities with the Principal and concerned staff members, and will seek
ATTACHMENT B
permission, guidance, and advice prior to enacting any program within the school.
The SRO’s duties and responsibilities will include, but not be limited to the following:
Safety
Shall work under the direction and supervision of the Operations Division of the Covina Police Department in cooperation with the school site principal
Act as liaison between the students/staff and the Covina Police Department.
Act as liaison between Covina Police Department and other First Responders through effective communication when responding to emergencies, reports of crime and school safety matters. Provide safety to the students and staff by investigating all crimes as it pertains to the identified District sites, and take appropriate action in regard to the law and other applicable statutes.
Take reasonable precautions to protect the privacy of students as well as promote safety and education.
Provide intelligence information to the City and the District as it pertains to safety, service, and the prevention of crime.
Assist staff in matters of school safety through the school day, with attention paid to root causes and referral to appropriate counseling and mentoring services.
Education
Maintain a friendly, approachable presence at District events. Promote school attendance and engagement.
Assist with outreach through student, school, and home contacts, and referral to appropriate District partners and agencies. Assist and attend meetings of the School Attendance Review Board (SARB) when appropriate.
Be responsible for education on a variety of subjects related to crime and safety.
Assist in the promotion of college, career and trade opportunities. Where appropriate, present classroom lessons pertaining to the danger of substance abuse, school site safety, personal safety, pedestrian/bicycle safety, internet safety and cyberbullying safety.
Provide positive reinforcement to students via mentoring, a visible presence and a role model through positive and professional relationships with students and staff.
With Department approval, assist with planning and implementation of community and school sponsored events including, but not limited to Red Ribbon Week, Substance Abuse presentations, Domestic Violence
ATTACHMENT B
Prevention programs, and Gang Awareness presentations, as well as others appropriate events.
With Department approval, attend orientation and other related student and family programs from District partners.
With Department approval, attend extra-curricular student activities where the SRO’s role is needed, and may be covered via overtime pay or the use of flex time.
The precise responsibilities of the SRO shall be mutually agreed upon between CVUSD and the Covina Police Department representative in writing. The SRO will be assigned to CVUSD by the Police Department and evaluated by his/her Police Department Division Captain or designee with input from CVUSD.
1. The District will provide office space, necessary furniture, office supplies and telephone for the SRO to carry out their duties per the Agreement.
2. The City will provide a motor vehicle for the SRO to perform their duties.
3. CVUSD will pay the City for SRO services, based on the assigned officer’s salary and benefits as of 7/01/2026 for the duration of this MOU. The Police Department will bill CVUSD at the end of each month and the invoice shall be payable within 30 days from the time of receipt.
4. This MOU may be terminated upon 30 days written notice by either party at any time, without cause.
5. The term of this MOU shall be for the 2026-2027 academic school year.
The District agrees to protect, hold harmless, defend and indemnify the City, officials, employees, officers, agents, and volunteers (collectively “City Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the District in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the City Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.
The City agrees to protect, hold harmless, defend and indemnify the District officials, employees, officers, agents, and volunteers (collectively “District Indemnitees”) from any and all losses, claims, liabilities, causes of action, demands, judgments, proceedings, costs, expenses, penalties, liens, losses or damages of any nature whatsoever, including attorney fees (collectively “Claims”) arising out of the acts or omissions of the City in the performance of the MOU, except for Claims arising from the negligence or willful misconduct of the District Indemnitees. This indemnification provision shall survive the expiration or termination of this MOU.
ATTACHMENT B
This MOU is the final and entire agreement between the Parties. All agreements of the Parties with respect to the subject matter hereof are in writing and supersede all prior written and oral agreements and understandings. This Agreement cannot be modified except by a written document signed by both of the Parties. None of the Parties are relying upon any other negotiations, discussions, or agreements in connection with the subject matter of this Agreement. This is a fully integrated Agreement.
The Parties agree that all actions or proceedings arising in connection with this MOU shall be tried and litigated exclusively in the Superior Court of California located in the County of Los Angeles, State of California.
I have read and understand this Memorandum of Understanding and the information contained within.
CITY OF COVINA COVINA VALLEY UNIFIED SCHOOL
DISTRICT
Christopher Marcarello Manuel Correa
City Manager Chief Business Officer
Date Date
Ric Walczak Rachael Robles
Chief of Police President, Governing Board
Date Date
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 10
Meeting: May 5, 2026
Title: Investment Policies for Fiscal Year 2026-2027 for the City of Covina and Successor Agency to the Covina Redevelopment Agency
Presented by: Theresa Franke, Finance Director
Recommendation: Adopt Resolution CC 2026-29 adopting an investment policy for the City’s investment portfolio for Fiscal Year 2026-2027 and adopt Successor Agency Resolution SA 2026-02 adopting an investment policy for the Agency’s investment portfolio for Fiscal Year 2026-2027.
EXECUTIVE SUMMARY:
An investment policy serves as the foundation for the City’s investment goals and priorities. Pursuant to Section 53646 of the Government Code, the Chief Fiscal Officer may annually render the investment policy to the City Council. The general purpose is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals.
DISCUSSION:
In accordance with legislative recommendation and in keeping with industry best practices, the City of Covina’s Director of Finance annually reviews the City’s/Agency’s investment policies and submits the policies for Council adoption. This process helps to ensure that the policies meet the City’s primary investment objectives of safety, liquidity, and return on investment. In addition, annual reviews confirm that the policies are in compliance with the California Government Code and other relevant legislation, statutes, and laws.
The 2026-2027 Investment Policies for the City of Covina and the Successor Agency have no changes from those approved by the City Council last year and are attached as Exhibit A to the resolutions.
Adoption of the investment policy at the start of the fiscal year does not preclude the City Council from amending the policy at any time during the fiscal year.
FISCAL IMPACT:
None.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2026-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, ADOPTING AN INVESTMENT POLICY FOR THE CITY’S INVESTMENT PORTFOLIO FOR FISCAL YEAR 2026-2027
WHEREAS, the City Council wishes to clarify and establish investment policies to guide the City Treasurer, City Manager, Finance Director, and City staff regarding City investments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Investments of City funds shall be made in accordance with the Statement of Investment Policy attached hereto as Exhibit A, and made a part hereof.
SECTION 2. The policies adopted by this resolution are in addition to and supplement any other legal requirements.
SECTION 3. This resolution shall take effect and be in force immediately upon adoption.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 5th day of May, 2026.
City of Covina, California
BY:
HECTOR DELGADO, Mayor
ATTEST:
FABIAN VELEZ, Chief Deputy City Clerk
Resolution CC 2026-29 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2026-29 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 5th day of May, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
FABIAN VELEZ, Chief Deputy City Clerk
EXHIBIT A
1 CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY
STATEMENT OF INVESTMENT POLICY
PURPOSE:
A. This Investment Policy is set forth by the City of Covina and Successor Agency to the Covina Redevelopment Agency (collectively “City”) for the following purposes:
1. To establish a clear understanding for the Council, City management, responsible employees, and third parties of the objectives, policies, and guidelines for the investment of the City’s idle and surplus funds.
2. To offer guidance to investment staff and any outside advisers on the investment of City funds.
3. To establish a basis for evaluating investment results.
B. The general purpose of this Investment Policy is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals. It is intended to be sufficiently specific to be meaningful, yet adequately flexible to be practical.
C. By adoption of this Investment Policy, the City Council also delegates its authority to invest and reinvest City funds, or to sell or exchange securities so purchased, to the City Mayor/City Council, upon recommendation of the City Treasurer, City Manager and Finance Director, for a period of one year. Pursuant to Section 53607 of the Government Code, any renewal of such delegation shall be made by, and at the discretion of, the City Council each year after review.
D. The City’s Mayor/City Council may enlist help of staff or a contract investment manager to fulfill such delegated investment duties, but the City’s Mayor/City Council must exercise prudence in the selection of any contract investment manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager and staff, and the City’s Mayor/City Council remains responsible for any investment decisions made by contract investment manager or staff designated by the City Mayor/City Council in such delegated investment duties.
POLICY
It is the policy of the City to invest public funds in a manner that will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.
1.0 SCOPE:
This Investment Policy applies to all cash assets of the City. Cash assets held by the City shall be pooled in order to manage the City’s cash resources effectively. All pooled cash assets are accounted for in the City’s Annual Comprehensive Financial Report and include the following funds:
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
2 FUNDS:
1.1.1 General Fund
1.1.2 Special Revenue Funds
1.1.3 Debt Service Funds
1.1.4 Capital Projects Funds
1.1.5 Enterprise Funds
1.1.6 Internal Service Funds
1.1.7 Trust and Agency Funds
The scope of this investment policy does not extend to cash assets held by fiscal agents, deferred compensation cash assets or other cash assets over which the City does not exercise specific control.
2.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio.
This standard requires all investment officials, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, to act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law and this Investment Policy.
3.0 OBJECTIVES:
The primary objectives, in priority order, of the City’s investment activities shall be:
3.1 Safety. Maintaining the principal value of assets entrusted to the City is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by limiting investment risk in the portfolio. Additionally, since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets.
3.1.1 Credit Risk. The City will minimize credit risk, the risk of loss due to financial failure of the security issuer or backer by:
Limiting exposure to poor credits and concentrating investments in the safest type of securities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
3 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors that the City will do business with.
Diversifying the investment portfolio so that the potential losses on individual investments will be minimized.
Actively monitoring the investment portfolio for ratings changes, changing economic/market conditions, etc.
3.1.2 Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:
Structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market prior to maturity.
Investing operating funds primarily in shorter-term securities or short-term investment pools.
3.2 Liquidity. The City’s investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).
3.3 Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.
Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The majority of the portfolio is limited to highly rated/low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
A security with declining credit may be sold early to minimize loss of principal.
A security swap would improve the quality, yield, or target duration in the portfolio.
Liquidity needs of the portfolio require that the security be sold.
4.0 REPORTING:
In accordance with amended Section 53646 of the Government Code, the City Treasurer/Finance Director will annually review the investment policy and render the policy to the City Council. Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.
Pursuant to Section 53646 of the Government Code, the City Treasurer/Finance Director shall render a report to the City Council and City Manager, containing detailed information on all securities, investments, and moneys of the City. The report will be submitted on a
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
4 quarterly basis and be provided to the Council within 30 days following the end of the quarter.
The report will contain the following information on the funds that are subject to this investment policy: 1) the type of investment, name of the issuer, date of maturity, par and dollar amount invested on all securities in each investment; 2) any investments, including loans and security lending programs, that are under the management of contracted parties; 3) for all securities held by the City and under management of any outside party that is also a local agency or Local Agency Investment Fund, the current market value as of the date of the report, and source of this valuation; 4) a statement of the portfolio’s compliance with the City’s investment policy, or manner in which the portfolio is not in compliance; and 5) a statement denoting the City’s ability to meet its pools expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.
The City Treasurer/Finance Director shall make a monthly report of any investment transactions to the City Council, in accordance with Section 53607 of the Government Code.
To the extent the City has funds invested in County investment pools the City Treasurer/Finance Director shall request copies of all the investment reports generated by the Counties pursuant to Government Code Section 27133 and the annual audit required by Government Code Section 27134. The investment report shall reflect a summary of these reports and audits.
5.0 INTERNAL CONTROL:
The Finance Director is responsible for establishing and maintaining an adequate internal control structure designed to reasonably protect the assets of the City from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
Accordingly, the Finance Director shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
Control of collusion.
Separation of transaction authority from accounting and record keeping.
Custodial safekeeping.
Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. Clear delegation of authority to subordinate staff members.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
5 Written confirmation of transactions for investments and wire transfers.
Development of a wire transfer agreement with the lead bank and thirdparty custodian and implementation of the appropriate safeguards described in the GFOA Recommended Practice on "Electronic Transactions for State and Local Governments."
Compliance and oversight with investment parameters including diversification and maximum maturities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
6 6.0 EXTERNAL AUDIT:
On at least an annual basis the City shall have an external auditor review the City’s investments and provide an opinion to the City in respect to the City’s compliance with this Investment Policy.
7.0 QUALIFIED DEALERS AND INSTITUTIONS:
The City shall transact business only with those banks, savings and loans, registered investment securities dealers, and authorized representatives of investment pools, as authorized by the California Government Code Section 53600 et seq. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a savings association or federal association (as defined by Section 5102 of the Financial Code), or a brokerage firm designed as a Primary Government Dealer by the Federal Reserve Bank. The Mayor/City Council’s staff shall review all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement.
8.0 AUTHORIZED INVESTMENTS AND DIVERSIFICATION REQUIREMENTS:
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described in the “Permitted Investments” section of this Investment Policy. The book value of the security will be used when calculating diversity compliance.
8.1 PERMITTED INVESTMENTS under this policy are summarized on Attachment I and shall include:
8.1.1 Securities, including participations or other instruments, issued by and fully guaranteed as to principal and interest by the U.S.
Government, a federal agency of the U.S. Government, or a United States government-sponsored enterprise, or for which the faith and credit of the United States are pledged for payment of principal and interest. Permitted securities shall have stated final maturity which does not exceed five years from the date of purchase.
8.1.2 Commercial paper of “prime” quality rated a minimum of P-1 by Moody’s Investor Services (Moody’s) or A-1 by S&P Global Ratings (S&P) provided that: (a) the maturity does not exceed 180 days from the date of purchase; (b) the issuer is a special purpose corporation, trust, or limited liability company organized and operating in the United States with assets in excess of $500 million; debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
7 (NRSRO); and program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) no more than 15 percent of the City’s portfolio is invested in commercial paper; and (d) City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
8.1.3 Banker’s acceptance of “prime” quality issued by institutions the shortterm obligations of which are rated a minimum P-1 by Moody’s or A-1 by S&P provided that: (a) the acceptances are eligible for purchase by the Federal Reserve system; (b) the maturity does not exceed 180 days; and (c) no more than 20 percent of the City’s total portfolio may be invested in banker’s acceptances.
8.1.4 Medium-term (or corporate) notes with fixed coupons and stated final maturity, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, the long-term obligations of which are rated at least AA- by S&P or Aa- by Moody’s. No more than 10 percent of the City’s portfolio may be invested in eligible medium-term or corporate notes. The maximum maturity of medium-term corporate notes is five (5) years. Investments in medium-term notes issued by agencies of the Federal Government are governed by Section 8.1.1 of this policy.
8.1.5 Mutual funds that are registered as money market funds with the U.S.
Securities and Exchange Commission, invested in U.S. Government securities, and strive to maintain a price of $1.00 per share (“Government money market funds”) and have in excess of $500 million in total portfolio value and a rating of Aaa by Moody’s and AAA by S&P. Investment in such funds shall not exceed ten percent (10%) of the City’s total portfolio.
8.1.6 Certificates of deposit (CDs) with fixed coupons and stated final maturity which does not exceed five (5) years from date of purchase.
8.1.6.1 Insured deposits, time deposits not exceeding $250,000, shall be permitted only in those financial institutions that are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) and also are a state or national bank, savings association, federal association, or credit union. Total insured deposits may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.6.2 Secured (collateralized) time deposits shall be permitted only in those financial institutions meeting the following criteria: (a) in good standing with the California State Collateral Pool; (b) are a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) having long-term debt currently rated Aor higher by S&P or A-3 or higher by Moody’s; or having short-term debt rated at least A-1 by S&P or P-1 by Moody’s. Total secured
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
8 time deposits may not exceed ten percent (10%) of the City’s total portfolio.
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Unsecured (negotiable) deposits (NCDs) shall be permitted only in those financial institutions meeting the criteria listed in Subsection 8.1.6.2 and which are also a nationally or statechartered bank, a savings association or a federal association (as defined in Section 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion. Total NCDs may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.7 Local Agency Investment Funds (LAIF) administered by the State Treasurer’s Office.
8.1.8 Passbook accounts that are maintained solely to provide for ongoing operational needs should be subject to the requirements of this policy.
8.1.9 Municipal Securities include obligations of the City, the State of California, any local agency within the State of California, and any of the other 49 states in addition to California as described below. Permitted securities must be in a rating category of “A” or its equivalent or better by a nationally recognized statistical rating organization (NRSRO). No more than 5% of the portfolio may be invested in any single issuer; no more than 30% of the portfolio may be in Municipal Securities; permitted securities shall have stated final maturity which does not exceed five (5) years from the date of purchase unless, in accordance with Government Code Section 53601, the City Council has granted express authority to make such investment with a longer maturity either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
9 8.1.9.1 City Bonds – Bonds, notes, warrants, or other evidence of indebtedness of the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City.
8.1.9.2 State Securities – Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Obligations of Other Local Agencies – Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Obligations of Other States – Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements. Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement.
8.2 Prohibited Investments. Investments not specifically delineated in Section 8.1 are prohibited. Prohibited investments include, but are not limited to:
8.2.1 Collateralized mortgage obligations, unless issued by a federal agency of the U.S. Government or a United States government-sponsored enterprise and meeting the criteria set forth in Section 8.1.1 of this Investment Policy.
8.2.2 Repurchase agreements and reverse repurchase agreements.
8.2.3 Futures and options.
8.3 Securities may be sold at a loss in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal or when trading for securities that result in an expected net economic gain to the City.
If both Moody’s and S&P downgrade securities owned by the City to a level below the quality required by this Investment Policy, it shall be the City’s policy to sell such securities promptly.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
10 9.0 INVESTMENT POLICY ADOPTION:
The City’s Investment Policy shall be adopted by resolution of the City Council of the City of Covina. The policy shall be reviewed each fiscal year, and any modifications thereto must be approved by the City Council.
10.0 CONFLICT OF INTEREST:
Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Political Reform Act, (California Government Code Section 8100 et seq., and 2 Cal. Code of Regs. 18110 et seq., (the “PRA”)) and the provisions limiting contractual conflicts of interest under California Government Code Section 1090 et seq. Any firm proposing to provide any type of investment service to the City shall also acknowledge their familiarity with and agree to abide by any federal or State law, regulation, rule, or policy pertaining to or limiting campaign contributions by such firms, their employees, spouses, and agents.
The provisions of the PRA shall continue to apply to require disclosure and disqualification by any City official or employee and shall apply to require disclosure of the same by any candidate for City office.
All persons, firms, dealers, brokers, and advisors providing investment service or bond issue assistance shall disclose to the City Manager and Finance Director all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment, or issuing bonds.
ATTACHMENT I
CITY OF COVINA PERMITTED INVESTMENTS
1 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.1 Securities Issued By
the US Gov’t, a federal agency of the US Gov’t, or a US Gov’tsponsored enterprise (b) & (f) No
Maximum
5 years from date of purchase
Shall have stated final maturity which does not exceed
five (5) years from date of purchase. Must be fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a U.S. government-sponsored enterprise; or include a pledge of the faith and credit of the United States for payment of principal and interest
8.1.2 Commercial Paper (h) 15% 180 days
from the date of purchase
“prime” quality rated a minimum of P-1 (Moody’s) or A-1 (S&P) Must be issued by a special purpose corporation, trust, or limited liability company organized and operating in the United States with:
assets in excess of $500 million
Debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO) Program-wide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or a surety bond City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
8.1.3 Banker’s Acceptance (g) 20% 180 days “prime”
quality
Must be eligible for purchase by the Federal Reserve system Must be issued by institutions the short-term obligations of which are rated a minimum P1 (Moody’s) or A1 (S&P)
8.1.4 Medium-term (or
corporate) notes issued by corporations organized and operating within the US or by depository institutions licensed by the US or any state (k) 10% 5 years Must have fixed coupons and stated final maturity Must be issued by institutions the long-term obligations of which are rated at least AA- (S&P) or Aa- (Moody’s) Investments in medium-term notes issued by agencies of the Federal Gov’t are governed by Section 8.1.1 of City’s Investment Policy
CITY OF COVINA PERMITTED INVESTMENTS
2 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
and operating within the US
8.1.5 Mutual funds that are
registered as money market funds with the US Securities and Exchange Commission, invested in US Govt securities, and strive to maintain a price of $1.00/share and have in excess of $500 million in total portfolio value (l)(2)&(4) 10% Aaa
(Moody’s) and AAA (S&P)
8.1.6.1 Certificates of Deposit
(CDs) with stated final maturity date – Insured Deposits, time deposits ≤ $250,000 CA Govt. Code § 53630 et seq (53632(a), 53633, 53635.2 & 53653) 30% 5 years Financial institutions must be insured by either the FDIC or NCUSIF. Must also be a state or national bank, savings association, federal association, or credit union.
8.1.6.2 Certificates of Deposit
(CDs) with stated final maturity date – Secured (collateralized) time deposits (n) CA Govt. Code § 53630 et seq (53632(a), 53633, 53635.2, 53652 & 53656) 10% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; (b) be a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have short-term debt rated at least A-1 (S&P) or P-1 (Moody’s). Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the
CITY OF COVINA PERMITTED INVESTMENTS
3 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Certificates of Deposit
(CDs) with fixed coupons and fixed maturity – Unsecured (negotiable) deposits (NCDs) (i) 30% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; and (b) having a net operating profit in the two (2) most recently completed years; and (c) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have shortterm debt rated at least A-1 (S&P) or P-1 (Moody’s). Must also be a nationally or state-chartered bank, a savings association or a federal association (as defined in Sec 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion.
8.1.7 Local Agency
Investment Funds (LAIF) administered by the State Treasurer’s Office CA Govt. Code § 16429.1 et seq
As permitted by LAIF
N/A N/A
8.1.8 Passbook accounts
that are maintained
CA Govt. Code
CITY OF COVINA PERMITTED INVESTMENTS
4 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
solely to provide for ongoing operational needs are subject to the requirements of this policy § 53630 et seq
8.1.9.1 Municipal Securities:
City Bonds
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Bonds, notes, warrants, or other evidence of indebtedness of the City including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or a department, board, agency, or authority of the City.
8.1.9.2 Municipal Securities:
State Securities
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Municipal Securities:
Obligations of Other Local Agencies
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
CITY OF COVINA PERMITTED INVESTMENTS
5 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.9.4 Municipal Securities:
Obligations of Other States
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements –
Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement
ATTACHMENT B
RESOLUTION SA 2026-02
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY OF THE CITY OF COVINA, CALIFORNIA,
ADOPTING AN INVESTMENT POLICY FOR THE SUCCESSOR
AGENCY’S INVESTMENT PORTFOLIO FOR FISCAL YEAR 2026-2027 WHEREAS, the Successor Agency Board wishes to clarify and establish investment policies to guide the City Treasurer, City Manager, Finance Director, and City staff regarding Agency investments.
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Investments of Agency funds shall be made in accordance with the Statement of Investment Policy attached hereto as Exhibit A, and made a part hereof.
SECTION 2. The policies adopted by this resolution are in addition to and supplement any other legal requirements.
SECTION 3. This resolution shall take effect and be in force immediately upon adoption.
SECTION 4. The Agency Secretary shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 5th day of May, 2026.
Successor Agency to the Covina
Redevelopment Agency of Covina,
California
BY:
HECTOR DELGADO, Chair
ATTEST:
FABIAN VELEZ, Agency Secretary
Resolution SA 2026-02 Page 2 of 2
CERTIFICATION
I, Fabian Velez, Secretary of the Successor Agency to the Covina Redevelopment Agency, do hereby certify that Resolution SA 2026-02 was duly adopted by the Successor Agency to the Covina Redevelopment Agency at a regular meeting held on the 5th day of May, 2026, by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Dated:
FABIAN VELEZ, Agency Secretary
EXHIBIT A
1 CITY OF COVINA AND SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT AGENCY
STATEMENT OF INVESTMENT POLICY
PURPOSE:
A. This Investment Policy is set forth by the City of Covina and Successor Agency to the Covina Redevelopment Agency (collectively “City”) for the following purposes:
1. To establish a clear understanding for the Council, City management, responsible employees, and third parties of the objectives, policies, and guidelines for the investment of the City’s idle and surplus funds.
2. To offer guidance to investment staff and any outside advisers on the investment of City funds.
3. To establish a basis for evaluating investment results.
B. The general purpose of this Investment Policy is to outline a philosophy and attitude that will guide the investment of City funds toward the desired investment goals. It is intended to be sufficiently specific to be meaningful, yet adequately flexible to be practical.
C. By adoption of this Investment Policy, the City Council also delegates its authority to invest and reinvest City funds, or to sell or exchange securities so purchased, to the City Mayor/City Council, upon recommendation of the City Treasurer, City Manager and Finance Director, for a period of one year. Pursuant to Section 53607 of the Government Code, any renewal of such delegation shall be made by, and at the discretion of, the City Council each year after review.
D. The City’s Mayor/City Council may enlist help of staff or a contract investment manager to fulfill such delegated investment duties, but the City’s Mayor/City Council must exercise prudence in the selection of any contract investment manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager and staff, and the City’s Mayor/City Council remains responsible for any investment decisions made by contract investment manager or staff designated by the City Mayor/City Council in such delegated investment duties.
POLICY
It is the policy of the City to invest public funds in a manner that will provide the highest investment return with maximum security while meeting the daily cash flow demands of the City and conforming to all State and local statutes governing the investment of public funds.
1.0 SCOPE:
This Investment Policy applies to all cash assets of the City. Cash assets held by the City shall be pooled in order to manage the City’s cash resources effectively. All pooled cash assets are accounted for in the City’s Annual Comprehensive Financial Report and include the following funds:
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
2 FUNDS:
1.1.1 General Fund
1.1.2 Special Revenue Funds
1.1.3 Debt Service Funds
1.1.4 Capital Projects Funds
1.1.5 Enterprise Funds
1.1.6 Internal Service Funds
1.1.7 Trust and Agency Funds
The scope of this investment policy does not extend to cash assets held by fiscal agents, deferred compensation cash assets or other cash assets over which the City does not exercise specific control.
2.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing the overall portfolio.
This standard requires all investment officials, when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, to act with the care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law and this Investment Policy.
3.0 OBJECTIVES:
The primary objectives, in priority order, of the City’s investment activities shall be:
3.1 Safety. Maintaining the principal value of assets entrusted to the City is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio by limiting investment risk in the portfolio. Additionally, since all possible cash demands cannot be anticipated, the portfolio shall consist largely of securities with active secondary or resale markets.
3.1.1 Credit Risk. The City will minimize credit risk, the risk of loss due to financial failure of the security issuer or backer by:
Limiting exposure to poor credits and concentrating investments in the safest type of securities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
3 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors that the City will do business with.
Diversifying the investment portfolio so that the potential losses on individual investments will be minimized.
Actively monitoring the investment portfolio for ratings changes, changing economic/market conditions, etc.
3.1.2 Interest Rate Risk. The City will minimize the risk that the market value of securities in the portfolio will fall due to changes in general interest rates by:
Structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities in the open market prior to maturity.
Investing operating funds primarily in shorter-term securities or short-term investment pools.
3.2 Liquidity. The City’s investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity).
3.3 Return on Investment. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.
Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The majority of the portfolio is limited to highly rated/low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity with the following exceptions:
A security with declining credit may be sold early to minimize loss of principal.
A security swap would improve the quality, yield, or target duration in the portfolio.
Liquidity needs of the portfolio require that the security be sold.
4.0 REPORTING:
In accordance with amended Section 53646 of the Government Code, the City Treasurer/Finance Director will annually review the investment policy and render the policy to the City Council. Any investment currently held that does not meet the guidelines of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such moneys shall be reinvested only as provided by this policy.
Pursuant to Section 53646 of the Government Code, the City Treasurer/Finance Director shall render a report to the City Council and City Manager, containing detailed information on all securities, investments, and moneys of the City. The report will be submitted on a
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
4 quarterly basis and be provided to the Council within 30 days following the end of the quarter.
The report will contain the following information on the funds that are subject to this investment policy: 1) the type of investment, name of the issuer, date of maturity, par and dollar amount invested on all securities in each investment; 2) any investments, including loans and security lending programs, that are under the management of contracted parties; 3) for all securities held by the City and under management of any outside party that is also a local agency or Local Agency Investment Fund, the current market value as of the date of the report, and source of this valuation; 4) a statement of the portfolio’s compliance with the City’s investment policy, or manner in which the portfolio is not in compliance; and 5) a statement denoting the City’s ability to meet its pools expenditure requirements for the next six months, or an explanation as to why sufficient money shall, or may, not be available.
The City Treasurer/Finance Director shall make a monthly report of any investment transactions to the City Council, in accordance with Section 53607 of the Government Code.
To the extent the City has funds invested in County investment pools the City Treasurer/Finance Director shall request copies of all the investment reports generated by the Counties pursuant to Government Code Section 27133 and the annual audit required by Government Code Section 27134. The investment report shall reflect a summary of these reports and audits.
5.0 INTERNAL CONTROL:
The Finance Director is responsible for establishing and maintaining an adequate internal control structure designed to reasonably protect the assets of the City from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.
Accordingly, the Finance Director shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
Control of collusion.
Separation of transaction authority from accounting and record keeping.
Custodial safekeeping.
Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. Clear delegation of authority to subordinate staff members.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
5 Written confirmation of transactions for investments and wire transfers.
Development of a wire transfer agreement with the lead bank and thirdparty custodian and implementation of the appropriate safeguards described in the GFOA Recommended Practice on "Electronic Transactions for State and Local Governments."
Compliance and oversight with investment parameters including diversification and maximum maturities.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
6 6.0 EXTERNAL AUDIT:
On at least an annual basis the City shall have an external auditor review the City’s investments and provide an opinion to the City in respect to the City’s compliance with this Investment Policy.
7.0 QUALIFIED DEALERS AND INSTITUTIONS:
The City shall transact business only with those banks, savings and loans, registered investment securities dealers, and authorized representatives of investment pools, as authorized by the California Government Code Section 53600 et seq. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State as a broker/dealer, as defined in Section 25004 of the Corporation Code, who is a member of the Financial Industry Regulatory Authority (FINRA), or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a savings association or federal association (as defined by Section 5102 of the Financial Code), or a brokerage firm designed as a Primary Government Dealer by the Federal Reserve Bank. The Mayor/City Council’s staff shall review all institutions that wish to do business with the City in order to determine if they are adequately capitalized, make markets in securities appropriate to the City’s needs, and agree to abide by the conditions set forth in this Investment Policy. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide a current audited financial statement.
8.0 AUTHORIZED INVESTMENTS AND DIVERSIFICATION REQUIREMENTS:
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described in the “Permitted Investments” section of this Investment Policy. The book value of the security will be used when calculating diversity compliance.
8.1 PERMITTED INVESTMENTS under this policy are summarized on Attachment I and shall include:
8.1.1 Securities, including participations or other instruments, issued by and fully guaranteed as to principal and interest by the U.S.
Government, a federal agency of the U.S. Government, or a United States government-sponsored enterprise, or for which the faith and credit of the United States are pledged for payment of principal and interest. Permitted securities shall have stated final maturity which does not exceed five years from the date of purchase.
8.1.2 Commercial paper of “prime” quality rated a minimum of P-1 by Moody’s Investor Services (Moody’s) or A-1 by S&P Global Ratings (S&P) provided that: (a) the maturity does not exceed 180 days from the date of purchase; (b) the issuer is a special purpose corporation, trust, or limited liability company organized and operating in the United States with assets in excess of $500 million; debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
7 (NRSRO); and program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond; (c) no more than 15 percent of the City’s portfolio is invested in commercial paper; and (d) City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
8.1.3 Banker’s acceptance of “prime” quality issued by institutions the shortterm obligations of which are rated a minimum P-1 by Moody’s or A-1 by S&P provided that: (a) the acceptances are eligible for purchase by the Federal Reserve system; (b) the maturity does not exceed 180 days; and (c) no more than 20 percent of the City’s total portfolio may be invested in banker’s acceptances.
8.1.4 Medium-term (or corporate) notes with fixed coupons and stated final maturity, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, the long-term obligations of which are rated at least AA- by S&P or Aa- by Moody’s. No more than 10 percent of the City’s portfolio may be invested in eligible medium-term or corporate notes. The maximum maturity of medium-term corporate notes is five (5) years. Investments in medium-term notes issued by agencies of the Federal Government are governed by Section 8.1.1 of this policy.
8.1.5 Mutual funds that are registered as money market funds with the U.S.
Securities and Exchange Commission, invested in U.S. Government securities, and strive to maintain a price of $1.00 per share (“Government money market funds”) and have in excess of $500 million in total portfolio value and a rating of Aaa by Moody’s and AAA by S&P. Investment in such funds shall not exceed ten percent (10%) of the City’s total portfolio.
8.1.6 Certificates of deposit (CDs) with fixed coupons and stated final maturity which does not exceed five (5) years from date of purchase.
8.1.6.1 Insured deposits, time deposits not exceeding $250,000, shall be permitted only in those financial institutions that are insured by either the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF) and also are a state or national bank, savings association, federal association, or credit union. Total insured deposits may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.6.2 Secured (collateralized) time deposits shall be permitted only in those financial institutions meeting the following criteria: (a) in good standing with the California State Collateral Pool; (b) are a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) having long-term debt currently rated Aor higher by S&P or A-3 or higher by Moody’s; or having short-term debt rated at least A-1 by S&P or P-1 by Moody’s. Total secured
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
8 time deposits may not exceed ten percent (10%) of the City’s total portfolio.
Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Unsecured (negotiable) deposits (NCDs) shall be permitted only in those financial institutions meeting the criteria listed in Subsection 8.1.6.2 and which are also a nationally or statechartered bank, a savings association or a federal association (as defined in Section 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion. Total NCDs may not exceed thirty percent (30%) of the City’s total portfolio.
8.1.7 Local Agency Investment Funds (LAIF) administered by the State Treasurer’s Office.
8.1.8 Passbook accounts that are maintained solely to provide for ongoing operational needs should be subject to the requirements of this policy.
8.1.9 Municipal Securities include obligations of the City, the State of California, any local agency within the State of California, and any of the other 49 states in addition to California as described below. Permitted securities must be in a rating category of “A” or its equivalent or better by a nationally recognized statistical rating organization (NRSRO). No more than 5% of the portfolio may be invested in any single issuer; no more than 30% of the portfolio may be in Municipal Securities; permitted securities shall have stated final maturity which does not exceed five (5) years from the date of purchase unless, in accordance with Government Code Section 53601, the City Council has granted express authority to make such investment with a longer maturity either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
9 8.1.9.1 City Bonds – Bonds, notes, warrants, or other evidence of indebtedness of the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department, board, agency, or authority of the City.
8.1.9.2 State Securities – Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue- producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Obligations of Other Local Agencies – Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
8.1.9.4 Obligations of Other States – Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements. Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement.
8.2 Prohibited Investments. Investments not specifically delineated in Section 8.1 are prohibited. Prohibited investments include, but are not limited to:
8.2.1 Collateralized mortgage obligations, unless issued by a federal agency of the U.S. Government or a United States government-sponsored enterprise and meeting the criteria set forth in Section 8.1.1 of this Investment Policy.
8.2.2 Repurchase agreements and reverse repurchase agreements.
8.2.3 Futures and options.
8.3 Securities may be sold at a loss in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal or when trading for securities that result in an expected net economic gain to the City.
If both Moody’s and S&P downgrade securities owned by the City to a level below the quality required by this Investment Policy, it shall be the City’s policy to sell such securities promptly.
CITY OF COVINA
STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2026-2027 (Continued)
10 9.0 INVESTMENT POLICY ADOPTION:
The City’s Investment Policy shall be adopted by resolution of the City Council of the City of Covina. The policy shall be reviewed each fiscal year, and any modifications thereto must be approved by the City Council.
10.0 CONFLICT OF INTEREST:
Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with the provisions of the Political Reform Act, (California Government Code Section 8100 et seq., and 2 Cal. Code of Regs. 18110 et seq., (the “PRA”)) and the provisions limiting contractual conflicts of interest under California Government Code Section 1090 et seq. Any firm proposing to provide any type of investment service to the City shall also acknowledge their familiarity with and agree to abide by any federal or State law, regulation, rule, or policy pertaining to or limiting campaign contributions by such firms, their employees, spouses, and agents.
The provisions of the PRA shall continue to apply to require disclosure and disqualification by any City official or employee and shall apply to require disclosure of the same by any candidate for City office.
All persons, firms, dealers, brokers, and advisors providing investment service or bond issue assistance shall disclose to the City Manager and Finance Director all fee sharing, fee-splitting, and commission arrangements with other entities or persons prior to the City agreeing to buy an investment, or issuing bonds.
ATTACHMENT I
CITY OF COVINA PERMITTED INVESTMENTS
1 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.1 Securities Issued By
the US Gov’t, a federal agency of the US Gov’t, or a US Gov’tsponsored enterprise (b) & (f) No
Maximum
5 years from date of purchase
Shall have stated final maturity which does not exceed
five (5) years from date of purchase. Must be fully guaranteed as to principal and interest by the U.S. Government, a federal agency of the U.S. Government, or a U.S. government-sponsored enterprise; or include a pledge of the faith and credit of the United States for payment of principal and interest
8.1.2 Commercial Paper (h) 15% 180 days
from the date of purchase
“prime” quality rated a minimum of P-1 (Moody’s) or A-1 (S&P) Must be issued by a special purpose corporation, trust, or limited liability company organized and operating in the United States with:
assets in excess of $500 million
Debt other than commercial paper, if any, that is rated “A” or higher by a nationally recognized statistical rating organization (NRSRO) Program-wide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or a surety bond City may not purchase more than 10% of the outstanding commercial paper of any single issuer.
8.1.3 Banker’s Acceptance (g) 20% 180 days “prime”
quality
Must be eligible for purchase by the Federal Reserve system Must be issued by institutions the short-term obligations of which are rated a minimum P1 (Moody’s) or A1 (S&P)
8.1.4 Medium-term (or
corporate) notes issued by corporations organized and operating within the US or by depository institutions licensed by the US or any state (k) 10% 5 years Must have fixed coupons and stated final maturity Must be issued by institutions the long-term obligations of which are rated at least AA- (S&P) or Aa- (Moody’s) Investments in medium-term notes issued by agencies of the Federal Gov’t are governed by Section 8.1.1 of City’s Investment Policy
CITY OF COVINA PERMITTED INVESTMENTS
2 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
and operating within the US
8.1.5 Mutual funds that are
registered as money market funds with the US Securities and Exchange Commission, invested in US Govt securities, and strive to maintain a price of $1.00/share and have in excess of $500 million in total portfolio value (l)(2)&(4) 10% Aaa
(Moody’s) and AAA (S&P)
8.1.6.1 Certificates of Deposit
(CDs) with stated final maturity date – Insured Deposits, time deposits ≤ $250,000 CA Govt. Code § 53630 et seq (53632(a), 53633, 53635.2 & 53653) 30% 5 years Financial institutions must be insured by either the FDIC or NCUSIF. Must also be a state or national bank, savings association, federal association, or credit union.
8.1.6.2 Certificates of Deposit
(CDs) with stated final maturity date – Secured (collateralized) time deposits (n) CA Govt. Code § 53630 et seq (53632(a), 53633, 53635.2, 53652 & 53656) 10% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; (b) be a state or national bank, savings association, federal association, or credit union; (c) having a net operating profit in the two (2) most recently completed years; and (d) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have short-term debt rated at least A-1 (S&P) or P-1 (Moody’s). Per Government Code Section 53601(n), secured time deposits must be secured by a valid first priority security interest in securities of the types listed by Section 53651 of the Government Code as eligible securities for the
CITY OF COVINA PERMITTED INVESTMENTS
3 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
purpose of securing local agency deposits and which have a market value at least equal to the respective market values required for the applicable type of security required by Section 53652 of the Government Code for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank that is not affiliated with the financial institution issuing the secured time deposit, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or other state or federal regulations applicable to the types of securities in which the security interest is granted.
8.1.6.3 Certificates of Deposit
(CDs) with fixed coupons and fixed maturity – Unsecured (negotiable) deposits (NCDs) (i) 30% 5 years Financial institutions must (a) be in good standing with the California State Collateral Pool; and (b) having a net operating profit in the two (2) most recently completed years; and (c) have long-term debt currently rated A- or higher ( S&P) or A-3 or higher (Moody’s) or have shortterm debt rated at least A-1 (S&P) or P-1 (Moody’s). Must also be a nationally or state-chartered bank, a savings association or a federal association (as defined in Sec 5102 of the Financial Code), a state or federal credit union, or a federally-licensed or state-licensed branch of a foreign bank, and, in addition, having total assets in excess of $1 billion.
8.1.7 Local Agency
Investment Funds (LAIF) administered by the State Treasurer’s Office CA Govt. Code § 16429.1 et seq
As permitted by LAIF
N/A N/A
8.1.8 Passbook accounts
that are maintained
CA Govt. Code
CITY OF COVINA PERMITTED INVESTMENTS
4 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
solely to provide for ongoing operational needs are subject to the requirements of this policy § 53630 et seq
8.1.9.1 Municipal Securities:
City Bonds
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Bonds, notes, warrants, or other evidence of indebtedness of the City including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or a department, board, agency, or authority of the City.
8.1.9.2 Municipal Securities:
State Securities
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Registered state warrants or treasury notes or bonds of the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the State or by a department, board, agency, or authority of the State.
8.1.9.3 Municipal Securities:
Obligations of Other Local Agencies
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Bonds, notes, warrants, or other evidence of indebtedness of any local agency within the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
CITY OF COVINA PERMITTED INVESTMENTS
5 City
Investment
Policy
Section
Authorized
Investment
CA Govt.
Code
Section
53601
Paragraph
Maximum
Percentage
of City’s
Total
Portfolio
Maximum
Maturity
Minimum
Quality Other
8.1.9.4 Municipal Securities:
Obligations of Other States
(a), (c), (d), (e)
30% total (5% in any single issuer)
5 years, unless otherwise granted in accordance with Govt Code Sec 53601 “A” or equivalent
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
8.1.10 Legal settlements –
Any noncash financial instrument, promissory note or other form of indebtedness acquired by the City as part of a legal settlement
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 11
Meeting: May 5, 2026
Title: Purchase Order Authorization for Furniture, Fixtures, and Equipment (FFE) and Installation in the Amount of $111,862.85 for the Covina Recreation Village Project – Phase I – West Gymnasium Building
Presented by: Krystal Smith, Interim Director of Parks & Recreation and Library Services Rafael M. Fajardo, Director of Public Works/City Engineer Recommendation: 1. Authorize staff to issue a Purchase Order to National Business Furniture in the amount of $111,862.85;
2. Authorize a contingency amount of $10,000 for any unforeseen conditions; and
3. Approve Resolution CC 2026-30 appropriating $121,862.85 in Measure CC Fund – Fund Balance to be transferred into the Parks CIP Fund for use towards the purchase and installation of FFE for the Covina Recreation Village Project – Phase I – West Gymnasium Building.
EXECUTIVE SUMMARY/BACKGROUND:
On July 16, 2024, the City Council approved a contract with Perera Construction and Design, Inc. for the construction of the Covina Recreation Village (CRV) Project – Phase I – West Gymnasium Building.
The scope of work included in Phase I includes the construction of 2 gymnasium spaces, interior offices for the Parks and Recreation Department, a new indoor rock-climbing wall and appurtenant building improvements. The total construction cost for Phase I is approximately $13.02 million, which is funded by approximately $11.836 million in grant funds and $1.187 million in local funds (Quimby fees, Environmental Fund).
As construction of Phase I nears completion (expected in July), it is appropriate to procure furniture, fixtures and equipment (“FFE”) to properly equip the new facility. As proposed, the City Council will consider the purchase and installation of new office furniture components, including desks, conference tables, chairs, etc that will be used at the facility. The delivery and installation will be coordinated with the vendor to ensure that the facility is outfitted prior to the CRV’s Fall 2026 opening date.
DISCUSSION:
The procurement of FFE at the CRV has been divided into two phases: Phase I (West Gymnasium Building) includes desks, conference tables, chairs, etc. Phase II (Library Facility) construction work began roughly 1 year following the start of Phase II and is expected to be completed in late fall 2026.
The procurement of FFE for Phase II includes library furniture, fixtures and equipment and will be presented at a later date.
As proposed, the City will utilize a competitively bid master agreement available through the Equalis Group purchasing cooperative for Phase I FFE items (Equalis Group Contract #COG-2152M). Through its participation in Equalis, the City of Covina is authorized to utilize competitively bid unit prices offered to members and reduce lead times associated with the City completing its own competitive procurement solicitation.
FISCAL IMPACT:
Approval of Resolution CC 2026-30 will appropriate $121,862.85 in Measure CC Fund – Fund Balance to be transferred into the Parks CIP Fund for use towards the purchase and installation of FFE for the Covina Recreation Village Project – Phase I – West Gymnasium Building.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
ATTACHMENT A
RESOLUTION CC 2026-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, TO AMEND THE FISCAL YEAR 2025/2026 CAPITAL
IMPROVEMENT PROGRAM BUDGET AND INCREASE FUNDING FOR
PURCHASE ORDER AUTHORIZATION FOR FURNITURE, FIXTURES,
AND EQUIPMENT (FFE) AND INSTALLATION IN THE AMOUNT OF
$121,862.85 FOR THE COVINA RECREATION VILLAGE PROJECT – PHASE I – WEST GYMNASIUM BUILDING
WHEREAS, the City of Covina is a municipal corporation duly organized and existing pursuant to the Constitution and laws of the State of California (“City”); and WHEREAS, the Fiscal Year 2026 Operating Budget & Capital Improvement Plan (CIP) was approved on May 20, 2025; and
WHEREAS, the approved Operating Budget and Capital Improvement Plan (CIP) is in accordance with all applicable ordinances of the City and all applicable statutes of the State; and
WHEREAS, the City of Covina wishes to amend the 2025/2026 Capital Improvement Program Budget to establish an Expenditure Budget in the Parks CIP Fund from Measure CC for use towards the purchase of furniture, fixtures, and equipment (FFE) and installation in the amount of $121,862.85 (including contingency balance) for the Covina Recreation Village Project – Phase I – West Gymnasium Building.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Amend the Fiscal Year 2025/2026 Capital Improvement Program Budget for the Covina Recreation Village Project – Phase I – West Gymnasium Building.
SECTION 2. Establish an expenditure account and appropriate $121,862.85 from available Measure CC Funds to be transferred into the Parks CIP for use towards FFE for the Covina Recreation Village Project – Phase I – West Gymnasium Building:
Account
No.
Account Description Amount ($) Increase/Decrease
1095-
0000-
59140-
P2202
Measure CC-TransferCIP-Covina Recreation
Village Project
$121,862.85 Increase
4600-
3400-
49110-
P2202
Parks CIP-Park FacTransfer-From GFCovina Recreation
Village Project
$121,862.85 Increase
4600- Parks CIP-Park Fac- $121,862.85 Increase
Resolution CC 2026-30 Page 2 of 2
3400-
55600-
P2202
Furniture and Fixtures
-Covina Recreation
Village Project
SECTION 3. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 5
th day of May, 2026.
City of Covina, California
BY:
HECTOR DELGADO, Mayor
ATTEST:
___________________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CERTIFICATION
I, Fabian Velez, Chief Deputy City Clerk of the City of Covina, do hereby certify that Resolution CC 2025-30 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 5
th day of May, 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Dated:
_____________________________________
FABIAN VELEZ, Chief Deputy City Clerk
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. CC 12
Meeting: May 5, 2026
Title: City Council Chambers CableCast System Server Upgrade Presented by: Angel Carrillo, Assistant City Manager
Fabian Velez, Chief Deputy City Clerk
Recommendation: Authorize the City Manager to execute the contract with KeyCode Media in the amount of $25,790.11 to upgrade servers located in the City Council Chambers.
EXECUTIVE SUMMARY/BACKGROUND:
Recent changes in law require the City to have two-way audio-visual participation for City Council meetings beginning July 1, 2026. In preparation for the upcoming deadline, staff has reviewed current hardware capabilities and identified necessary upgrades that must be made to servers which stream and host City Council meetings. These upgrades will allow compliance by the upcoming deadline.
DISCUSSION:
On October 3, 2025, Governor Newsom signed Senate Bill 707 (SB 707) into law. SB 707 amends numerous sections of the Brown Act in order to encourage increased participation at City Council meetings by members of the public and make meetings more accessible. Among these changes are the need for two-way remote attendance of meetings. Provisions regarding remote attendance will also require meetings to recess in the event that the two-way service experience technical difficulties.
Staff has examined the ability of current equipment and found that the servers used to stream and host City Council meeting videos are nearing end-of-life and are limited in capabilities to be able to comply with two-way remote attendance. In order to avoid future disruptions, the attached quote from KeyCode media has been put together to include materials and labor for upgrades that will not only meet the new meeting standards but also increase accessibility by including closed captioning for videos.
Further action will be needed by the City Council to comply with SB 707, including the updating of policies for meetings and agenda translations, which will return for consideration prior to the July 1st deadline.
FISCAL IMPACT:
Sufficient funding is available in the IT Department Budget, Account No. 7200-6200-55700.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
Not applicable.
Respectfully submitted,
Angel Carrillo
Assistant City Manager
Cablecast System
Quote # 247002 Version 1
Prepared for:
City of Covina
Prepared by:
Heather Williams
Key Code Media, Inc. - California
270 S. Flower Street
Burbank, CA 91502
818-303-3900
www.keycodemedia.com
ATTACHMENT A
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
OMNIA Contract
No. Part # Description Qty Price Ext. Price
OMNIA Contract Agreement No 2019.001407
Key Code Media is the preferred resource for audiovisual equipment, installation, and aftermarket support. We approach both complex projects and equipment procurement with a high-touch customer service focus, ensuring equipment is delivered, installed, and adopted by a customer successfully. We focus on your vision and business needs, deploying solutions that work today and into the future, keeping you ahead of technology. (Calif C7 & C10 contractor’s #1010561) Key Code Media solutions are available on a cooperative contract from the University of California and offered to OMNIA Partners participants nationwide.
Equipment
Mfr. Name Mfr. Part # Product Details Qty. Discount MSRP KCM Unit Price
KCM Ext.
Price
Contract
Unit Price
Contract
Pricing
CABLECAST CBL-VIOLITE8002 channel configurable 1x1
SD/HD SDl encode/decode,
multi-format server with 8TB
of storage in a 2 RU chassis
with whisper quiet fans.
Selectable SD or HD SDI
with embedded audio.
Pulls in RTP, RTMP,
RTSP, NDI, SRT and
HLS streams. Includes
Cablecast Automation,
Video and CG server
Software. Cablecast CG
Player Software is
optional. Includes
graphics, crawl, bug, bug
text on output. 3 year
hardware warranty,
system commissioning
and one year of Gold
support included. Does
not include rack rails.
1 5.00% $10,000.00 $9,500.00 $9,500.00 $9,500.00 Y
CABLECAST CBL-CGPLAYER
-LIC
Cablecast CG bulletin board
software for installation in
Cablecast VIO video servers
All bulletin board features
and native integration
with the Cablecast
schedule for display of
"Airs Again On", "Coming
up Next" and Cablecast
schedule bulletins,
updated dynamically
throughout the day.
1 5.00% $1,550.00 $1,472.50 $1,472.50 $1,472.50 Y
Quote #247002 v 1 Apr 30, 2026 Page: 2 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
Equipment
Mfr. Name Mfr. Part # Product Details Qty. Discount MSRP KCM Unit Price
KCM Ext.
Price
Contract
Unit Price
Contract
Pricing
CABLECAST CBL-VIOLITEHAAnnual hardware warranty
contract for the CBLVIOLITE.
First 3 years are included
with the purchase
2 5.00% $1,000.00 $950.00 $1,900.00 $950.00 Y
CABLECAST DISCOUNT Discount included for years 4
& 5 with initial hardware
purchase
1 0.00% ($527.25) ($500.89) ($500.89) $-304.00 Y
CABLECAST CBL-GOLD-CH1YRAnnual software
maintenance contract per I/O
(Input/Output)
Same day email, phone
and remote login
support. Includes all new
software releases. Also
includes premium
features only available
with Gold or Platinum
support. VIO4 = 4 I/O.
VIO2, VIO Lite and VIO
Stream = 2 I/O.
*Software updates are
customer installed with
guided instructions
included, support
assistance provided as
needed.
8 5.00% $400.00 $380.00 $3,040.00 $380.00 Y
CABLECAST DISCOUNT Discount included for years 2
-5 with initial hardware
purchase
Manufacturer Discount
1 0.00% ($320.00) ($304.00) ($304.00) $-304.00 Y
CABLECAST CBL-VIO-LIVEUPGCablecast Live streaming
software upgrade for VIO
video servers. This software
only upgrade can be applied
to a VIO Lite, or a VIO2 to
stream one channel of video.
Use in conjunction with
REFLECT or REFLECT
+, to bring your content
to Roku, Amazon Fire TV,
Apple TV, Android
mobile, as well as iPhone
& iPad. Commissioning
included.
1 5.00% $2,000.00 $1,900.00 $1,900.00 $1,900.00 Y
CABLECAST CBLCAPTIONING500Pricing for a 500 hour block of the Cablecast Closed
Caption Captioning Service.
Supports live captioning of
meetings and events as well
as on-demand captioning of
video files. Runs on both
Cablecast VIO and FLEX
video servers, as well as VIO
Stream
1 5.00% $3,750.00 $3,562.50 $3,562.50 $3,562.50 Y
Quote #247002 v 1 Apr 30, 2026 Page: 3 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
Equipment
Mfr. Name Mfr. Part # Product Details Qty. Discount MSRP KCM Unit Price
KCM Ext.
Price
Contract
Unit Price
Contract
Pricing
KCMPS KCMPS-201 Installer 12 0.00% $105.00 $105.00 $1,260.00 $0.00 KCMPS KCMPS-202 Sr. Installer 12 0.00% $120.00 $120.00 $1,440.00 $0.00 KCMPS KCMPS-206 Engineer 12 0.00% $165.00 $165.00 $1,980.00 $0.00 KCMPS KCMPS-210 Project Manager 4 0.00% $135.00 $135.00 $540.00 $0.00 Subtotal: $25,790.11
Scope of Work
Quote #247002 v 1 Apr 30, 2026 Page: 4 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
Key Code Total Care
30 Day Key Code Total Care Bronze
Thank you for choosing Key Code Media, this quote is covered under a 30-day remote support plan. The equipment is covered under manufacturing warranty and the labor is covered by Key Code Support.
Key Code support hosts its own secure remote access support system. This system is much like a TeamViewer remote access, with the exception that it’s hosted by Key Code Media and sits behind our firewall. As part of Change Me and Key Code Media support agreement, we can install this lightweight utility on all purchased computers at the discretion of facility staff. This will allow a support engineer to log in and see what the operator is seeing in real time.
Service Expectations
This support proposal includes the following Service Level agreements:
1. Provide normal business hours support
a. Access to M-F 9am EST - 6pm PST support line
b. Includes emergency and non-emergency call for:
i. Software Issues and Version Upgrades
ii. Hardware support for purchased equipment
iii. Remote support
c. Major Holidays are not included in coverage
i. Christmas Day
ii. July 4
th
iii. Thanksgiving +1
iv. New Year’s Day
v. Memorial Day
vi. Labor Day
2. Contract Includes Costs for Mileage Associated with support visits a. Does not include for Airfare, Hotel, Rental Car, or Per-Diem b. Does not include Travel Costs associated with other quotes c. All Non-Covered T&E will be invoiced at actual cost
Warranty Terms
The warranty begins upon completion of install and lasts for 30 days.
Support Contract Information
Service Hotline: 818-303-3980
Email Support: [email protected] (Email is monitored from 9a – 6p) Call Back Response Time
9am – 6pm response time 5 – 30 minutes
Quote #247002 v 1 Apr 30, 2026 Page: 5 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
KCM Purchase Terms & Conditions
Key Code Media Purchase Terms & Conditions
1. Payment Terms: All terms are subject to credit approval, otherwise, 50% deposit due with order and the remaining balance due COD unless the purchase order was pursuant to loan or lease with approved financing institution (financing documents must accompany this signed contract. Invoices are due per terms based on invoice date. Partial payment is due on partial shipments. A service handling charge of 3% for credit card payments will be added to all credit card orders.
2. Service charge and/or Interest: Any payments deferred after the due date as specified herein shall bear interest and/or service charges at the rate of 1.5% per month (calculated daily) or the maximum rate allowed by law. In addition, Key Code Media shall have all remedies afforded by the Uniform Commercial Code as adopted in the State of for any defaults by client. If any invoice remains unpaid, in full or in part, after the due date Key Code Media, Inc has full discretion in obtaining an attorney or outside agency to recovery any and all outstanding amounts. The Purchaser agrees that he/she/it is fully liable or any and all legal and/or collection fees incurred in the collection of any outstanding amounts owing to Key code Media, Inc.
3. Security Interest: Key Code Media, Inc. shall retain title to all goods until Key Code Media Inc. receives payment in full. The Purchaser hereby grants to Seller a security Interest in all goods shipped to the Purchaser and the proceeds thereof until the Purchaser pays for such goods in full. A copy of this Agreement may be filed by Seller at any time as a financing statement in order to perfect Seller’s security interest.
4. Representation of Solvency: The Purchaser hereby represents that he/she/it is solvent and that on each delivery this representation shall be deemed received, unless notice to the contrary is given in writing by the Purchaser to Key Code Media, at or before the delivery of goods.
5. Return of Goods: A restocking fee of up to 30% will be charged on canceled or changed orders. No merchandise may be returned without prior consent. No return will be allowed for any items that were delivered over more than 30 days or any custom made items, used and B stock items, software products and maintenance contract. Credit on returns will be subject to the condition of the returned product upon inspection. In the event client reconfigures, reschedules or cancels an order containing special order items, client shall be subject to charges associated with the purchase of said items. Costs may include the full cost of these items in addition to any and all costs, expenses and/or penalties imposed on Key Code Media by vendors for return of goods. The Purchaser also covers the shipping on the return. Please refer to our RMA Policy for more information.
6. Shipping: Delivery dates are approximate and subject to delay due to events beyond the reasonable control of Key Code Media, Inc. Freight charges will cover for both inbound and outbound and is for estimation purposes only. The actual amount will be provided by the shipping Company after purchaser receives shipment. Key Code Media, Inc will update that information to your invoice. Partial payment is due on partial shipments.
7. ALL TRADE IN CREDIT ORDERS: Any hardware trade-ins or software licenses must be returned within 30 days upon delivery of new upgraded system. If products are not returned within 30 days, client will no longer be entitled to Trade In credit and will be charged the Trade-in credit. Client must be the original owner of the hardware or software or have a valid system transfer approved by the manufacturer.
8. Taxes: Purchaser shall reimburse Key Code Media, Inc. for all taxes, excises, or other charges that Seller may be required to pay to the government upon the sale, production, or transportation of the Goods sold hereunder. A valid Reseller Certificate or Post Production Exemption certificate must be completed in order to receive the full or partial sales tax exemption.
9. Warranty: Key Code Media technical services are not covered under manufacturer’s warranties express or implied. No express or implied warranty of any kind is made with respect to the goods. In addition, no liability is assumed by our company for damage and/or injury resulting from use of products supplied by this company.
Quote #247002 v 1 Apr 30, 2026 Page: 6 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
10. Limitation of Liability: Except to the extent prohibited under applicable law, in no event shall Key Code Media’s liability arising out of this Quotation/Purchase exceed the amount shipped by Key Code Media to the Purchaser hereunder. In no event shall Key Code Media be liable for costs of procurement of substitute products or services, lost profits or any consequential, special, incidental, or indirect damages, however caused and on any theory of liability (including negligence or strict liability), arising out of this quotation. The purchaser acknowledges and agrees that the amounts payable hereunder by the Purchaser are based in part upon these limitations, notwithstanding any failure of essential purpose of any limited remedy.
11. No claim or right arising out of a breach of this contract by client can be discharged, in whole or in part, by a waiver or renunciation of any other claim or right by Key Code Media. This contract supersedes all prior proposals, negotiations and all other terms (including terms implied on customer purchase orders). This contract can be modified or rescinded only by a writing signed by both parties.
12. Both parties agree that federal and state courts have jurisdiction and venue and this contract shall be governed by the Uniform Commercial Code (as adopted in ) and the substantive and procedural laws of California. The prevailing party shall be entitled to reasonable attorney fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled by virtue of this contract and applicable law.
SUBJECT TO STATEAND LOCAL TAXES WHERE APPLICABLE
F.O.B. FACTORY,FREIGHT IS ADDITIONAL
Tariff Adjustment Clause:
In the event of any increase in tariffs, duties, or other governmental charges imposed on the goods after the date of this agreement, Key Code Media has the right to pass these additional costs on to the Buyer. Such increases will be calculated based on the actual additional costs incurred by Key Code Media and will be added to the final invoice or a subsequent invoice.
Key Code Media will notify the Buyer of any such adjustments as soon as reasonably possible. By accepting these Terms and Conditions, the Buyer agrees to pay any additional charges resulting from such increases.
Pricing Update from Key Code Media
Due to ongoing market volatility, Key Code Media must temporarily revise pricing on a weekly basis.
Global demand for memory and storage components, along with volatility in tariffs affecting core manufacturer products, is creating rapid and unpredictable price fluctuations across the industry. Many manufacturers are honoring pricing for only one week at a time.
Effective immediately, all Key Code Media quotes are valid for seven days. Quotes older than seven days will need to be refreshed to reflect current manufacturer pricing.
We understand this may be an inconvenience and appreciate your flexibility as we navigate these conditions. This policy will be revised once the market stabilizes.
Thank you for your continued partnership.
Quote #247002 v 1 Apr 30, 2026 Page: 7 of 8
Cablecast System
Prepared for: City of Covina
Sales Quotation
Quote #247002 v 1
Apr 30, 2026
Cablecast System
Prepared by: Bill To: Ship To: Quote Information:
Key Code Media, Inc. -
California
City of Covina City of Covina Quote #: 247002
Heather Williams
818-303-3900
Fax 818-303-3901
[email protected]
,
Mark Samuels
(626) 384-5433
[email protected]
125 E College St
Covina, CA 91723-2129
Mark Samuels
(626) 384-5433
[email protected]
Version: 1
Delivery Date: 04/30/2026
Expiration Date: 05/29/2026
Terms: ADVANCE
Quote Summary
Description Amount
Equipment $25,790.11
Subtotal: $25,790.11
Estimated Tax: $997.50
Total: $26,787.61
This Sales Quote ("SO") includes the Terms and Conditions ("T&C") available at https://www.keycodemedia.com/purchase-termsconditions/ and https://www.keycodemedia.com/master-service-agreement/, which are applicable to all professional servicerelated purchases. It constitutes an offer or counter-offer, as applicable, by Key Code Media, Inc. ("Seller"). This SO, along with the incorporated T&C, becomes binding upon the Buyer listed herein ("Buyer") at the earliest of the following events: (i) Buyer's acknowledgment of this agreement; or (ii) the receipt of any goods and/or services ordered under this agreement. Please note that no Buyer acknowledgment form, purchase order, or any other document can modify the terms outlined in the SO or the T&C.
Key Code Media, Inc. - California City of Covina
Signature:
Name: Heather Williams
Title: Account Manager
Date: 04/30/2026
Signature:
Name: Mark Samuels
Date:
Quote #247002 v 1 Apr 30, 2026 Page: 8 of 8
CC Regular Meeting
AGENDA ITEM REPORT
ITEM NO. NB 1
Meeting: May 5, 2026
Title: Adoption of the Fiscal Year 2026-27 Budget, Fiscal Year 2027-2031 Capital Improvement Program (CIP) and Fiscal Year 2026-27 CIP Budget Presented by: Chris Marcarello, City Manager
Theresa Franke, Finance Director
Recommendation: 1. Adopt Resolution CC 2026-31 adopting the City of Covina budget for July 1, 2026 through June 30, 2027;
2. Adopt Resolution SA 2026-03 adopting the operating budget for the City of Covina Successor Agency for July 1, 2026 through June 30, 2027; and
3. Adopt Resolution CC 2026-32 adopting the Fiscal year 2027-2031 Capital Improvement Program and the Fiscal Year 2026-27 Capital Improvement Program Budget.
EXECUTIVE SUMMARY:
The City Manager is tasked to prepare an annual operating budget and a capital improvement program for the City each fiscal year for City Council consideration. Approval of the attached resolutions will establish the Fiscal Year (FY) 2026-27 Operating Budget and the Fiscal Year 2027-31 Capital Improvement Program Budget.
BACKGROUND:
Covina Municipal Code (CMC) Section 2.08.160 provides for a preliminary budget to be presented to the City Council before the fifteenth day of June each year. The CMC also states that continuing appropriations for year- end encumbrances, contractual commitments, and capital projects shall be automatically carried forward. All other appropriations shall lapse at year-end unless carried forward by City Council action. According to this code section, the City Manager is to keep the City Council informed thereto.
The Finance Director submitted the Proposed FY 2026-27 Budget to the Finance Advisory Commission as part of the agenda for the Commission's special meeting of April 22, 2026. Revenue projections and proposed operating budgets for City departments were reviewed and discussed, with the Commission recommending that City Council adopt the Fiscal Year 2026-27 Operating Budget.
The Community Development Director presented the Proposed FY 2027-2031 CIP and FY 2026-27 CIP Budget to the Planning Commission as part of the agenda for the Planning Commission's regularly scheduled meeting of April 28, 2026. The Planning Commission adopted Resolution No. 2026-005 PC (Attachment D), finding that the proposed FY 2027-2031 CIP and FY 2026-27 CIP Budget is consistent with the goals and policies of the Covina General Plan pursuant to Government Code Sections 65103 and 65401.
DISCUSSION:
The Citywide Proposed FY 2025-26 Budget includes projected revenues totaling $110,786,848 and expenditures of $112,579,401. A sizeable portion of this difference is due to the building maintenance fund, as the fund balance was deemed adequate, not requiring additional contributions. Furthermore,
these amounts include the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, and Successor Agency Funds. As noted below and in Attachment E, the total expenditures include 31 proposed capital improvement projects that total $7,474,158.
General Fund:
The Fiscal Year 2026-27 General Fund Budget is balanced with $58,540,563 in revenues and expenditures. The proposed General Fund budget utilizes $8,777,640 in Transaction and Use Tax funds, as was intended by Measure CC, to reduce structural deficits and maintain essential City services.
The table below summarizes the Proposed Fiscal Year 26-27 General Fund Budget:
General Fund Revenues:
A conservative approach was utilized in projecting revenues for FY 2026-27. The table below summarizes FY 2026-27 General Fund revenues. The table includes FY 2024-25 actual revenues, the original Adopted 2025-26 Budget, and the projected year-end figures for FY 2025-26 as well as proposed budget figures for FY 2026-27.
FY 2026-2027 is projected to show increases in Property Tax and Sales Tax revenues. Furthermore, modest increases are projected in Licenses and Permits, and conservative decreases are projected in intergovernmental, charges for service, and utility user’s tax. Overall, General Fund revenues are expected to reflect modest change, budgeted expenses are also reflecting modest increases.
Proposed 2026-27 Budget June 30, 2026 June 30, 2027
Beginning Fund Balance Revenues Expenditures Ending Fund Balance Change 1010 General Fund $ 14,288,280 $ 58,540,563 $ 58,540,563 $ 14,288,280 - 1095 Special General Fund (Transaction/Use Tax) 16,033,343 8,902,342 8,777,640 16,158,045 124,702 $ 30,321,622 67,442,905 67,318,203 $ 30,446,324 124,702 2025 2026 2026 2027
General Fund Revenues Actual Adopted Revised Proposed
Property Tax $ 19,218,808 $ 19,065,000 $ 19,065,000 $ 19,721,000 Sales Tax 11,342,980 10,950,000 11,500,000 11,800,000
Utility Users Tax 6,315,246 6,550,000 6,550,000 6,525,000 Franchises/Other Taxes 3,068,623 3,088,000 2,878,000 2,910,000 Total Taxes 39,945,657 39,653,000 39,993,000 40,956,000 Licenses and Permits 1,193,523 1,129,700 1,129,700 1,196,671 Intergovernmental 1,289,572 1,029,300 916,300 812,435
Charges for Services 3,898,357 3,545,424 3,854,556 3,840,495 Fines and Forfeitures 779,158 850,985 638,936 806,622
Other Revenues 13,991,252 11,038,844 11,511,543 10,928,340 General Fund Total $ 61,097,519 $ 57,247,253 $ 58,044,035 $ 58,540,563 2025 2026 2026 2027
Special General Fund Revenues Actual Adopted Revised Proposed Transaction & Use Tax $ 8,693,965 $ 8,831,706 $ 8,685,000 $ 8,902,342 Special General Fund Total $ 8,693,965 $ 8,831,706 $ 8,685,000 $ 8,902,342
General Fund Expenditures:
The following table summarizes Fiscal Year 2026-2027 General Fund expenditures by department.
General fund expenses reflect ongoing operating costs for all departments. The projections include staffing, supplies, contract services as well as capital outlay and indirect costs. Staffing figures take into consideration projected MOU and PERS unfunded liability increases. Overall, expenses are projected at $58.5 million.
General Fund expenditures by department are further detailed in Attachment G.
Staffing Recommendations:
Over the past year, several staff members in various departments have taken on additional duties based on department needs and have had a significant impact on citywide efficiency. With increases in responsibilities and duties, each department has analyzed their staffing needs and several recommendations were presented to ensure proper staffing levels and appropriate classifications are authorized and budgeted. The table below summarizes recommended staffing changes for Fiscal Year 2026-27.
Department Staffing Change Request Amount
City Clerk
Reclass Chief Deputy City Clerk to City Clerk Services and Communications Director
$14,039
Finance Reclass Sr. Analyst to Budget and Revenue Manager $8,975 Community
Development Reclass Sr. Analyst to Community Development Manager $7,253
Parks & Recreation Reclass two Recreation Supervisors to Superintendents $7,700 Parks & Recreation Reclass Recreation Coordinator to Recreation Coordinator II $10,867 General Fund Expenditures 2025 2026 Adopted 2026 Revised 2027 By Department Actual Budget Budget Proposed
Legislative $ 605,636 $ 843,824 $ 843,824 $ 665,161
Administration 1,260,195 1,463,541 1,485,545 1,469,116
Finance 1,377,482 1,642,869 1,645,269 1,626,386
Non-Departmental (1,776,570) (2,486,964) (2,486,964) (2,866,432) Human Resources 1,337,701 1,444,443 1,462,443 1,483,874 Police 26,682,394 27,691,562 27,981,231 29,426,695
Emergency Services 28,743 - - -
Fire 12,914,170 13,759,677 13,759,677 13,350,399
Public Works 4,257,470 4,561,915 4,591,614 4,558,285
Parks and Recreation 4,198,284 4,560,170 4,575,035 4,688,074 Community Development 9,260,086 3,766,216 4,281,361 4,139,006 Total General Fund (GF) Expenditures $ 60,145,590 $ 57,247,253 $ 58,139,035 $ 58,540,563 2025 2026 Adopted 2026 Revised 2027
Actual Budget Budget Proposed
Transfer to General Fund $ 10,197,045 $ 9,220,014 $ 9,692,713 $ 8,777,640 Transfer to Capital Projects Funds 1,073,149 - 4,621,048 - Transfer to Enterprise Funds - - - -
Transfer to Internal Services Funds 546,142 - - -
Total Special GF Expenditures $ 11,816,336 $ 9,220,014 $ 14,313,761 $ 8,777,640 Special General Fund Expenditures
Funding for these positions are provided through a variety of funds including General Fund, Water Fund, Sewer Fund, and Environmental Fund.
Other Funds:
Proposed revenue and expenditure budgets for the City’s various Special Revenue Funds, Enterprise Funds, Internal Service Funds, Successor Agency Funds and all Other Funds are displayed in Exhibit A to Resolution CC 2026-31 (Attachment A) as well as in the Proposed FY 2026-27 Fund Balances Worksheet provided in Attachment F.
Fiscal Year 2027-2031 CIP & Fiscal Year 2026-27 CIP Budget:
The Proposed FY 2027-2031 CIP contains 56 projects with a total estimated cost of $61.4 million over the five-year period. Resolution CC 2026-32 (Attachment C) recommends the adoption of the FY 2027- 2031 CIP and the FY 2026-27 CIP Budget totaling $7.5 million. As noted above, the FY 2026-27 CIP contains 31 projects including the Badillo Street Resurfacing Project, Traffic Signal Installation Project, and Sunkist Park Urban Greening Revitalization Project. The Proposed Fiscal Year 2027-2031 CIP is included in Attachment E which outlines a listing of the FY 2026-27 CIP Budget and the FY 2027-2031 CIP Budget, including various projects and funding sources.
FISCAL IMPACT:
Exhibit A to Resolution CC 2026-31 and SA 2026-03 (Attachments A and B) to this report summarizes total projected revenues and appropriations for all funds.
CEQA (CALIFORNIA ENVIRONMENTAL QUALITY ACT):
FY 2026-27 Budget:
The project has been reviewed for compliance with the California Environmental Quality Act (CEQA) and is exempt per Section 15061 (b) (3). The project is covered by the General Rule that CEQA applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
FY 2027-2031 CIP & 2026-27 CIP Budget:
As work for each project moves through the City's approval process, the appropriate environmental analysis will be conducted and brought to the City Council Respectfully submitted,
Attachment A
RESOLUTION CC 2026-31
A JOINT RESOLUTION OF THE CITY COUNCIL OF COVINA,
CALIFORNIA/COVINA PUBLIC FINANCING AUTHORITY/COVINA
HOUSING AUTHORITY ADOPTING THE CITY OF COVINA FISCAL
YEAR 2026-27 BUDGET
WHEREAS, the City Manager presented a Proposed Fiscal Year 2026-27 Budget to the City Council; and
WHEREAS, the City Council has given careful consideration to the Proposed Fiscal Year 2026-27 Budget; and
WHEREAS, City staff is directed to prepare and publish an Approved Fiscal Year Budget document to include changes approved by the City Council for the forthcoming fiscal year; and
WHEREAS, the City Manager is responsible to implement the annual budget as authorized by Covina Municipal Code Section 2.08.160; and WHEREAS, the total budget appropriations, as adjusted where required, are incorporated herein by reference; and
WHEREAS, the number of appropriated full-time positions shall not change without City Manager approval; and
WHEREAS, the City faces budget constraints, and therefore, the City Manager is authorized to reduce the workforce by not filling certain vacant positions and/or initiating staffing reductions within established guidelines and procedures; and WHEREAS, there are funds within this budget document that are for specific purposes and appropriations of those funds will comply with accounting principles and governing rules of the funding sources.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COVINA,
CALIFORNIA/COVINA PUBLIC FINANCING AUTHORITY/COVINA HOUSING AUTHORITY DO HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Fiscal Year 2026-27 Budget as presented to the City Council at the May 5th, 2026 City Council meeting, as set forth in the May 5th, 2026 City Council Agenda Report entitled “Adoption of the Fiscal Year 2026-27 Budget, Fiscal Year 2027- 2031 Capital Improvement Program (CIP) and Fiscal Year 2026-27 CIP Budget” and incorporated herein by reference are hereby approved and adopted as the official municipal budget for the City of Covina (“Fiscal Year 2026-27 Budget”), as summarized in Exhibit A attached hereto.
SECTION 2. Beginning on July 1, 2026, the City Manager is hereby authorized to
Resolution CC 2025-31 Page 2 of 2
proceed with the implementation of the programs as set forth in the approved and adopted Fiscal Year 2026-27 Budget, and to transfer any sum of appropriated funds between departments and programs provided they do not cross funds.
SECTION 3. Unexpended appropriations from the Fiscal Year 2025-26 Budget may be carried forward to the next fiscal year provided the funds have been previously encumbered for a specific purpose, or apply to authorized, but uncompleted projects in the City’s approved Capital Improvement Program.
SECTION 4. This Resolution shall take effect immediately upon adoption.
SECTION 5. The City Clerk shall certify to the passage and adoption of this Resolution.
APPROVED and PASSED this 5th day of May, 2026.
City of Covina, California
BY:
HECTOR DELGADO, 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 2026-31 was duly adopted by the City Council of the City of Covina at a regular meeting held on the 5th day of May, 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 of Covina
FY 2026-27 Budget Summary
Fund Description Revenue Budget Expenditure Budget
1010 General Fund 58,540,563 58,540,563
1095 Special General Fund (Transaction/Use Tax) 8,902,342 8,777,640 Total General Fund 67,442,905 67,318,203
2020 Low Mod Housing Asset Fund 30,000 377,269
2025 Housing Bond Proceeds 04 Priva 6,000 15,000
2055 2004 Bond-Private 5,000 -
2100 Community Development Block Gr 287,730 287,730
2120 Permanent Local Housing Allocation - -
2185 Building Equipment Reserve 5,000 5,000
2189 Heritage Tree Preservation - -
2200 Police Evidence Reserve - -
2205 Inmate Communication - -
2221 Federal Treasury Narcotics 4,000 -
2222 Federal Justice Narcotic Siezu 10,000 -
2230 Other State Grants - -
2246 Supplemental Law 205,000 141,327
2270 Other Federal Grants - -
2271 Justice Assistance Grant - -
2272 Justice Assistance Grant Impact - -
2278 Homeland Security Grant - -
2285 COPS Grant 100,000 100,000
2290 Traffic Safety Fund 6,000
2300 State Gas Tax 1,491,082 1,460,336
2310 Road Maintenance and Rehab 1,459,402 1,440,074
2360 CA-Strong Motion Instrumentati - -
2365 SB1186 Fund - 30,000
2370 CA-Green Building Standards - -
2400 Proposition A 1,568,612 1,535,820
2405 Proposition C 1,164,720 1,125,000
2407 TDA 42,958 -
2410 Measure R 841,113 630,113
2420 Measure M 948,262 946,772
2500 Air Quality Improvement 66,000 28,312
2510 Measure W 995,000 807,282
2520 DOC Beverage Container Grant 12,930 14,010
City of Covina
FY 2026-27 Budget Summary
Fund Description Revenue Budget Expenditure Budget
2530 Oil Payment Program 7,397 10,073
2600 Cultural Arts - -
2604 Quimby Fees - -
2700 Municipal Parking District 290,475 348,747
2710 Street Lighting Assessment Dis 296,700 287,538
2720 Street Trees and Landscaping 218,615 109,581
2740 Community Facilities District 350,000 507,668
2741 Community Facilities District-Stormwater - 6,000
2750 Shoppers Lane Parking District 21,000 11,585
2760 Enhanced Infrastructure Financing District 172,182 - 2800 Literacy Grant 43,493 68,104
2810 Library Equipment Reserve - -
2830 Other Library Grants - -
2890 PEG-Public Education and Government 57,000 56,517
2920 Public Safety Donation - -
2922 DARE Donation Admin - -
2926 Gang & Graffiti Donation - -
2927 Police Explorer Donation - 1,628
2930 Gang/Graffiti Scholarship Fund - -
2931 Every 15 Minutes Admin - -
2957 Playground Equip Replace Donat - -
2958 Teen Program Fundraising - 1,000
2960 Parks & Recreation Donations - 6,500
2965 Youth Program Donations - -
2966 Youth Sports Equip Donation - -
2967 Volunteen Web Berger Grant 2,200 5,487
2968 Senior Fundraising Donations - -
2969 Grandmothers Club Donations - -
2970 Library Services-Donation - -
2971 Lib Book Donation - -
2972 Library Services-IT Donation - -
2973 Gates Donation Fund - -
2975 Lib Services-Literacy Donation - -
2976 Joseph J Borrello Memorial - -
2980 Miscellaneous Grants - -
4010 General CIP - -
City of Covina
FY 2026-27 Budget Summary
Fund Description Revenue Budget Expenditure Budget
4050 Development Project Deposits - -
4200 Public Works CIP - -
4300 Transportation CIP - -
4600 Parks and Recreation CIP - -
4630 Kahler Russell Park Gymnasium - -
4640 Joslyn Center Reconstruction - -
4701 Impact Fees-General Govt 7,000 133,032
4702 Impact Fees-Library Admin 5,000 52,956
4703 Impact Fees-Police Admin 5,000 290,000
4704 Impact Fees-Park Fac Admin 5,000 168,316
4705 Impact Fees-Streets Adm 10,000 -
4706 Impact Fees-Fire Admin 5,000 195,804
6010 Water Utility Admin 14,093,189 15,908,898
6011 Water Capital Improvement Fund 4,600,000 825,000
6200 Environmental-Waste Mgmt 1,265,818 1,791,930
6300 Sewer Utility 3,081,283 4,158,594
6400 Theatre Fund 267,000 499,279
7010 Central Equipment Operations 1,891,698 1,957,581
7020 Building Maintenance 9,550 1,802,060
7200 Information Technology 2,611,623 2,611,770
7360 Worker's Compensation 1,560,836 1,560,836
7370 Public Liablity 3,054,717 2,864,809
8186 Downtown District 8,358 8,358
8187 Prospero - -
T800 OPEB Trust 140,000 4,500
SXXX Successor Agency Funds 15,000 63,000
110,786,848 112,579,401
ATTACHMENT B
RESOLUTION SA 2026-03
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY OF THE CITY OF COVINA, CALIFORNIA,
ADOPTING THE COVINA SUCCESSOR AGENCY ANNUAL BUDGET
FOR THE FISCAL YEAR COMMENCING JULY 1, 2026 AND ENDING
JUNE 30, 2027
WHEREAS, the Executive Director has, heretofore, presented to the Successor Agency to the Covina Redevelopment Agency the proposed budget for the fiscal year beginning July 1, 2026 and ending June 30, 2027; and
WHEREAS, copies of said proposed budget are on file in the City Clerk’s office.
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COVINA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Said proposed Successor Agency to the Covina Redevelopment Agency budget is hereby adopted as the budget of the Successor Agency for the fiscal year commencing July 1, 2026 and ending June 30, 2027. The Successor Agency budget consists of the estimated and anticipated expenditures and revenues for the fiscal year and as related shall be deemed to be debt of the Successor Agency.
SECTION 2. There are hereby appropriated for obligation and expenditure by the Executive Director the amounts shown for the various funds and accounts separately set forth in the Successor Agency to the Covina Redevelopment Agency proposed budget for fiscal year 2026-2027.
SECTION 3. That the Executive Director shall have the authority to incur obligations and enter into contracts less than Twenty-Five Thousand Dollars ($25,000.00) without prior written approval of the Agency, provided that such expenditures are consistent with the budget.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
APPROVED and PASSED this 5th day of May, 2026.
Successor Agency to the Covina
Redevelopment Agency of Covina,
California
BY:
HECTOR DELGADO, Chair