Agenda packet, regular meeting — West Covina City Council, January 17, 2023 (part 2 of 2)

NET POSITION
Held in Trust for Pension Benefits $ 317,934 72,481 $ 390,41 $ 5 156
City of West Covina
Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds
June 30, 2022
Retirement Supplemental Total
Enhancement Retired Pension
Defined Benefit Defined Benefit Trust
Pension Fund Pension Fund Funds

ADDITIONS
Contributions:

Employer Contributions $ 80,946 51,428 $ 132,374 $
Investment Earnings:

Interest Income (44,819) (8,794) (53,613)
Total Additions 36,127 42,634 78,761

DEDUCTIONS
Administrative Costs 4,947 3,086 8,033
Benefit Distributions 173,697 38,080 211,777
Total Deductions 178,644 41,166 219,810
Net Increase (decrease) in fiduciary net position (142,517) 1,468 (141,049) Net Position, beginning of the year 460,451 71,013 531,464 Net Position, end of the year $ 317,934 72,481 $ 390,41 $ 5 157

STATISTICAL SECTION
City of West Covina
Description of Statistical Section Contents
June 30, 2022
This part of the City of West Covina's Annual Comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health.

Contents: Pages

Financial Trends these schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time

159

Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax

173

Debt Capacity these schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future

180

Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place

188

Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs

190
158

2013 2014 2015 2016
Governmental activities:

Net investment in capital assets 164,621,539 $ 161,771,546 $ 144,215,248 $ 148,989,212 $ Restricted 46,016,224 47,468,277 48,793,821 56,902,504
Unrestricted (297,086) 191,878 (129,152,694) ( 138,162,202) Total governmental activities net pension 210,340,677 $ $209,431,701 $ 63,856,375 $ 67,729,514 Business-type activities:

Net investment in capital assets $ - $ - $ - $ -
Restricted - - - -
Unrestricted (426,769) 60,922 188,045 (135,676)
Total business-type activities net pension (426,769) $ $ 60,922 $ 188,045 $ (135,676) Primary government:

Net investment in capital assets 164,621,539 $ $ 161,771,546 $ 144,215,248 $ 148,989,212 Restricted 46,016,224 47,468,277 48,793,821 56,902,504
Unrestricted (723,855) 252,800 (128,964,649) ( 138,297,878) Total primary government net pension 209,913,908 $ $ 209,492,623 $ 64,044,420 $ 67,593,838 Source: City of West Covina Finance Department

CITY OF WEST COVINA
(accrual basis of accounting)
Last Ten Fiscal Years
Net Position by Component
Fiscal Year
159
(continued)
2017 2018 2019 2020 2021 2022
$ 153,784,463 $ 153,940,332 $ 147,204,908 $ 140,572,511 $ 139,507,563 $ 152,889,130 50,717,656 51,130,936 57,782,735 65,969,665 89,226,135 98,381,004 (144,659,629) (201,951,785) (207,212,078) (225,184,697) (255,200,972) (240,284,642) $ 59,842,490 $ 3,119,483 $ (2,224,435) $ (18,642,521) $ (26,467,274) $ 10,985,492 $ - $ - $ - $ - $ - $ -
- - - - - -
(252,336) (275,010) (326,385) (244,119) 38,329 235,307
$ (252,336) $ (275,010) $ (326,385) $ (244,119) $ 38,329 $ 235,307 $ 153,784,463 $ 153,940,332 $ 147,204,908 $ 140,572,511 $ 139,507,563 $ 152,889,130 50,717,656 51,130,936 57,782,735 65,969,665 89,226,135 98,381,004 (144,911,965) (202,226,795) (207,538,463) (225,428,816) (255,162,643) (240,049,335) $ 59,590,154 $ 2,844,473 $ (2,550,820) $ (18,886,640) $ (26,428,945) $ 11,220,799 Fiscal Year
160
2013 2014 2015 2016
Expenses:

Governmental activities:

General government $ 5,519,153 $ 7,472,254 $ 5,676,067 $ 4,963,302 Public safety 47,323,516 45,443,958 49,813,447 48,410,511 Public works 20,372,375 21,109,952 20,586,770 20,259,279 Community services 6,878,176 6,437,040 7,035,872 7,368,492 Community development 1,127,924 658,082 766,886 753,721 Interest on long-term debt 1,652,750 1,677,062 1,353,156 1,572,645 Total governmental activities expenses 82,873,894 82,798,348 85,232,198 83,327,950 Business-type activities:

Computer enterprise 1,435,855 1,284,419 1,427,789 1,638,573 Total business-type activities expenses 1,435,855 1,284,419 1,427,789 1,638,573 Total primary government expenses 84,309,749 84,082,767 86,659,987 84,966,523 Program revenues:

Governmental activities:

Charges for services:

General government 548,333 486,478 885,123 400,051
Public safety 3,018,478 3,037,891 2,825,831 3,170,579
Public works 7,781,333 8,878,122 8,278,038 8,271,744
Community services 1,195,612 1,180,562 1,275,278 1,365,482 Community development 348,112 621,352 502,621 425,013
Operating grants and contributions 10,344,778 11,021,410 12,405,742 13,317,378 Capital grants and contributions 597,405 4,458,250 2,224,864 1,004,826 Total governmental activities
program revenues 29,684,065 23,834,051 28,397,497 27,955,073 Business-type activities:

Charges for services:

Computer enterprise 2,105,421 1,873,636 1,655,134 1,413,114 Total business-type activities
program revenues 1,873,636 2,105,421 1,655,134 1,413,114 Total primary government
program revenues 31,557,701 25,939,472 30,052,631 29,368,187 Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
161
(continued)
2017 2018 2019 2020 2021 2022
$ 7,523,129 5,775,173 $ 7,515,920 $ 7,781,252 $ 18,929,254 $ 3,700,172 $ 67,734,047 56,169,907 58,057,784 72,653,866 62,479,977 49,887,239 21,161,586 21,243,019 21,625,190 23,649,892 17,212,496 13,508,312 8,926,070 7,926,410 9,280,450 9,418,860 7,675,178 12,587,100 1,618,181 2,190,319 795,685 1,394,131 1,568,283 1,238,687 1,515,826 1,575,724 1,680,335 1,874,899 8,354,304 9,033,455 108,478,839 94,880,552 98,955,364 116,772,900 116,219,492 89,954,965 1,305,426 1,575,066 1,263,693 1,230,639 475,672 719,911 1,305,426 1,575,066 1,263,693 1,230,639 475,672 719,911 109,784,265 96,455,618 100,219,057 118,003,539 116,695,164 90,674,876 814,465 546,626 829,295 369,796 312,112 617,087
3,610,467 3,201,495 3,839,103 4,304,075 3,718,158 4,467,009 8,967,472 7,714,148 9,156,370 2,034,963 4,458,831 8,415,913 2,110,943 1,491,858 1,903,119 2,438,156 697,351 1,620,427 416,014 264,959 465,097 6,780,115 - -
10,955,031 10,285,701 12,097,219 19,989,920 21,764,524 29,598,365 445,980 151,966 360,872 582,023 10,621,147 17,666,351
24,771,152 26,205,973 28,651,075 36,499,048 41,572,123 62,385,152 1,274,318 1,199,162 1,099,028 1,249,195 758,120 916,458 1,274,318 1,199,162 1,099,028 1,249,195 758,120 916,458 26,045,470 27,405,135 29,750,103 37,748,243 42,330,243 63,301,610 Fiscal Year
162
2013 2014 2015 2016
Net revenues (expenses):

Governmental activities $ (58,612,191) $ (53,114,283) $ (56,834,701) $ (55,372,877) Business-type activities 669,566 589,217 227,345 (225,459) net primary government
revenues (expenses) (57,942,625) (52,525,066) (56,607,356) (55,598,336) General revenues and other changes
in net position:

Governmental activities:

Taxes:

Property taxes 20,937,356 20,420,020 21,156,596 22,352,163 Sales tax 13,307,736 14,705,790 15,096,101 17,228,237
Franchise tax 3,361,812 3,478,532 3,635,092 3,540,011
Other taxes 6,265,257 7,451,947 7,433,106 6,485,394
Motor vehicle in lieu, unrestricted 57,902 - - -
Investment income 185,451 695,341 660,157 (566,064)
Other general revenues 7,310,544 5,960,967 6,999,034 4,236,920 Transfers 101,775 101,775 101,775 101,775
Extraordinary gain (loss) (19,629,066) - 9,789,266 -
Total governmental activities 31,898,767 52,814,372 55,081,861 63,167,702 Business-type activities:

Investment income - - 1,553 3,513
Other revenues - - - -
Transfers (101,775) (101,775) (101,775) (101,775)
Total business-type activities (101,775) (101,775) (100,222) (98,262) Total primary government 31,796,992 52,712,597 54,981,639 63,069,440 Changes in net position:

Governmental activities (26,713,424) (299,911) (1,752,840) 7,794,825 Business-type activities 568,040 487,442 127,123 (323,721) Total primary government
change in net position $ (26,145,384) $ 187,531 $ (1,625,717) $ 7,471,104 Source: City of West Covina Finance Department
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year

CITY OF WEST COVINA
163
(continued)
2017 2018 2019 2020 2021 2022
$ (82,272,866) (70,109,400) $ (70,304,289) $ (80,273,852) $ (74,647,369) $ (27,569,813) $ (106,264) (300,748) (164,665) 18,556 282,448 196,547
(82,379,130) (70,410,148) (70,468,954) (80,255,296) (74,364,921) (27,373,266) 25,392,860 23,994,740 26,365,067 27,422,706 30,108,110 31,348,677 17,449,827 16,503,563 17,464,609 17,033,647 20,858,803 23,101,668 4,011,817 3,698,184 4,207,765 4,445,101 4,644,360 4,806,348 7,692,437 6,725,309 9,158,794 5,026,703 4,571,270 4,721,569 - - - - - -
559,164 4,452,938 2,016,573 2,682,794 223,485 (1,082,667) 9,256,591 6,847,642 5,747,563 7,244,815 5,520,479 2,126,984 - - - - - -
- - - - - -
62,222,376 64,362,696 64,960,371 63,855,766 65,926,507 65,022,579 2,070 884 1,083 - - -
182,018 82,706 112,207 63,710 - -
- - - - - -
184,088 83,590 113,290 63,710 - -
62,406,464 64,446,286 65,073,661 63,919,476 65,926,507 65,022,579 (7,887,024) (17,910,170) (5,343,918) (16,418,086) (8,720,862) 37,452,766 (116,660) (22,674) (51,375) 82,266 282,448 196,547
$ (8,003,684) $ (17,932,844) $ (5,395,293) $ (16,335,820) $ (8,438,414) $ 37,649,313 Fiscal Year
164
2013 2014 2015 2016
Expenses:

General government $ 5,547,949 $ 7,472,254 $ 5,676,067 $ 4,963,302 Public safety 47,160,347 45,443,958 49,813,447 48,410,511 Public works 20,465,106 21,109,952 20,586,770 20,259,279 Community services 6,911,667 6,437,040 7,035,872 7,368,492 Community development 708,422 658,082 766,886 753,721
Interest on long-term debt 1,652,751 1,677,062 1,353,156 1,572,645 Total expenses 82,446,242 82,798,348 85,232,198 83,327,950 Program revenues:

Charges for services:

General government 548,333 486,478 885,123 400,051
Public safety 3,018,478 3,037,891 2,825,831 3,170,579
Public works 7,781,333 8,878,122 8,278,038 8,271,744
Community services 1,195,612 1,180,562 1,275,278 1,365,482 Community development 348,112 621,352 502,621 425,013
Operating grants and contributions 10,344,778 11,021,410 12,405,742 13,317,378 Capital grants and contributions 597,405 4,458,250 2,224,864 1,004,826 Total program revenues 29,684,065 23,834,051 28,397,497 27,955,073 Net program revenues (expenses) (58,612,191) (53,114,283) (56,834,701) (55,372,877) General revenues and other changes
in net position:

Taxes:

Property taxes 20,937,356 20,420,020 21,156,596 22,352,163 Sales tax 13,307,736 14,705,790 15,096,101 17,228,237
Franchise tax 3,361,812 3, 3, 478,532 3, 635,092 540,011 Other taxes 6,265,257 7, 7, 451,947 6, 433,106 485,394
Motor vehicle in lieu, unrestricted 57,902 - - -
Investment income 185,451 695,341 ( 660,157 566,064)
Other general revenues 7,310,544 5, 6, 960,967 4, 999,034 236,920 Transfers 101,775 101, 101, 775 775 101,775
Extraordinary gain (loss) (19,629,066) - 9, - 789,266
Total governmental revenues
and other changes 31,898,767 52,814,372 55,081,861 63,167,702 Changes in net position $ (26,713,424) $ (299,911) $ (1,752,840) $ 7,794,825 Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Net Position
Governmental Activities
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
165
(continued)
2017 2018 2019 2020 2021 2022
$ 7,523,129 5,775,173 $ 7,515,920 $ 7,781,252 $ 18, $ 3,700,172 929,254 $ 67,734,047 56,169,907 58,057,784 72,653,866 62,479,977 49,887,239 21,161,586 21,243,019 21,625,190 23,649,892 17,212,496 13,508,312 8, 7,926,410 9, 926,070 9, 280,450 7, 418,860 12, 675,178 587,100 1, 2,190,319 795, 618,181 1, 685 1, 394,131 1, 568,283 238,687 1, 1,575,724 1, 515,826 1, 680,335 8,354,304 874,899 9,033,455 108, 94,880,552 98,955,364 478,839 116,772,900 116,219,492 89,954,965 546,626 814,465 829,295 369,796 312,112 617,087
3, 3,201,495 3, 610,467 4, 839,103 3, 304,075 4, 718,158 467,009 8, 7,714,148 9, 967,472 2, 156,370 4, 034,963 8, 458,831 415,913 1,491,858 2,110,943 1,903,119 2,438,156 697,351 1,620,427 416,014 264,959 465,097 6,780,115 - -
10,955,031 10,285,701 12,097,219 19,989,920 21,764,524 29,598,365 445,980 151,966 360,872 582,023 10,621,147 17,666,351
24,771,152 26,205,973 28,651,075 36,499,048 41,572,123 62,385,152 (70,109,400) (82,272,866) (70,304,289) (80,273,852) (74,647,369) (27,569,813) 23,994,740 25,392,860 26,365,067 27,422,706 30,108,110 31,348,677 16,503,563 17,449,827 17,464,609 17,033,647 20,858,803 23,101,668 3,698,184 4,011,817 4,207,765 4,445,101 4,644,360 4,806,348 6,725,309 7,692,437 9,158,794 5,026,703 4,571,270 4,721,569 - - - - - -
4,452,938 559,164 2,016,573 2,682,794 223,485 (1,082,667) 6,847,642 9,256,591 5,747,563 7,244,815 5,520,479 2,126,984 - - - - - -
- - - - - -
62,222,376 64,362,696 64,960,371 63,855,766 65,926,507 65,022,579 $ (7,887,024) $ (17,910,170) $ (5,343,918) $ (16,418,086) $ (8,720,862) $ 37,452,766 Fiscal Year
166
2013 2014 2015 2016
Expenses:

Computer Enterprise $ 1,435,606 $ 1,284,419 $ 1,427,789 $ 1,638,573 Total expenses 1,435,606 1,284,419 1,427,789 1,638,573
Program revenues:

Charges for services:

Computer Enterprise 2,105,421 1,873,636 1,655,134 1,413,114 Total program revenues 2,105,421 1,873,636 1,655,134 1,413,114 Net revenues (expenses) 669,815 589,217 227,345 (225,459) General revenues and other changes
in net position:

Investment income - - 1,553 3,513
Other revenues - - - -
Transfers (101,775) (101,775) (101,775) (101,775)
Total general revenues
and other changes (101,775) (101,775) (100,222) (98,262) Changes in net position $ 568,040 $ 487,442 $ 127,123 $ (323,721) Source: City of West Covina Finance Department
Fiscal Year

CITY OF WEST COVINA
Changes in Net Position
Business-Type Activities
Last Ten Fiscal Years
(accrual basis of accounting)
167
(continued)
2017 2018 2019 2020 2021 2022
$ 1,305,426 1,575,066 $ 1,263,693 $ 1,230,639 $ 475,672 $ $ 719,911 1, 1,575,066 1, 305,426 1, 263,693 475,672 230,639 719, 911 1, 1,274,318 1, 199,162 1, 099,028 758,120 249,195 916, 458 1, 1,274,318 1, 199,162 1, 099,028 758,120.00 249,195 916,458.00 ( (300,748) ( 106,264) 18,556 164,665) 282,448.00 196,547.00 2,070 884 1,083 - - -
182,018 82,706 112,207 63,710 - -
- - - - - -
184,088 83,590 113,290 63,710 - -
$ (116,660) $ (22,674) $ (51,375) $ 82,266 $ 282,448 $ 196,547 Fiscal Year
168
2013 2014 2015 2016
General Fund:

Nonspendable $ 6,621,695 $ 6,595,326 $ 6,483,924 $ 7,129,779 Restricted - - - -
Assigned - - - -
Unassigned 4,108,967 5,687,385 20,531,695 15,032,610
Total general fund $ 10,730,662 $ 12,282,711 $ 27,015,619 $ 22,162,389 All other governmental funds:

Nonspendable $ 6,814,431 $ 157,500 $ 151,923 $ 5,277,203 Restricted 32,133,653 56,225,097 59,918,077 51,467,448
Assigned 893,566 3,891,565 4,930,693 5,065,065
Unassigned (373,264) (47,867) (438,708) (531,412)
Total all other governmental funds $ 39,468,386 $ 60,226,295 $ 64,561,985 $ 61,278,304 Source: City of West Covina Finance Department

CITY OF WEST COVINA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
169
(continued)
2017 2018 2019 2020 2021 2022
$ 9,952,978 6,982,268 $ 8,976,583 $ 7,086,958 $ 4,009,651 $ 3,380,136 $ - - - 7,650 9,440 8,287
- 320,200 320,200 - - -
14,119,078 11,979,653 9,884,913 12,580,716 21,468,986 20,770,457 $ 21,101,346 $ 22,252,831 $ 19,181,696 $ 19,675,324 $ 25,488,077 $ 24,158,880 $ 4,980,450 $ 110,833 $ 99,167 $ 82,420 $ - $ 11,989
45,082,696 49,600,866 57,840,755 64,044,695 92,198,163 100,732,082 2,820,665 2,004,895 1,107,138 1,786,815 9,687,492 6,601,977 (1,100,860) (710,218) (692,305) (1,158,958) (228,169) (164,865) $ 51,782,951 $ 51,006,376 $ 58,354,755 $ 64,754,972 $101,657,486 $ 107,181,183 Fiscal Year
170
2013 2014 2015 2016
Revenues:

Taxes $ 46,185,045 $ 48,785,393 $ 50,918,823 $ 54,237,649 Special assessments 5,511,465 5,513,535 5,595,338 5,550,657 Licenses and permits 1,156,196 1,717,153 1,419,457 1,156,613 Fines and forfeitures 1,048,819 1,036,732 959,606 796,989 Investment income 533,388 716,472 679,844 (570,132)
Rental income 370,913 367,798 406,350 529,833
Intergovernmental 9,496,633 11,097,551 10,769,196 11,218,711 Charges for services 6,124,201 6,751,541 6,803,615 7,731,236 Repayment of notes and loans 925,235 26,148 - -
Other 5,105,117 6,258,384 5,490,327 1,487,103
Total revenues 76,457,012 82,270,707 83,042,556 82,138,659 Expenditures
Current:

General government 5,205,956 7,087,335 5,757,334 5,103,814 Public safety 42,688,487 43,332,847 45,906,138 50,962,883 Public works 16,203,144 17,790,042 13,724,417 15,509,267 Community services 5,872,485 5,399,732 5,816,443 6,864,180 Community development 666,255 679,007 761,896 898,714
Debt service:

Principal retirement 1,773,261 1,870,239 1,866,947 2,027,461 Interest and fiscal charges 1,659,473 1,666,054 1,360,370 1,574,753 Cost of issuance - - - -
Developer agreement payments - - - -
Total expenditures 74,069,061 77,825,256 75,193,545 82,941,072 Excess (deficiency) of revenues
over (under) expenditures 2,387,951 4,445,451 7,849,011 (802,413) Other financing sources (uses):

Transfers in 3,639,400 3,744,115 3,201,793 4,831,038
Transfers out (3,537,625) (3,642,340) (3,100,018) (10,812,296) Acquisition under capital leases - - 2,568,446 -
Issuance of bonds 2,185,000 - - -
Premium of refunding bonds issued - - - -
Payment to refunded bond escrow agent (2,248,061) - - - Extraordinary gain (loss) (19,629,066) - 11,578,351 -
Total other financing sources (uses) (19,527,291) 38,714 11,680,126 (3,412,812) Special Item
Payment towards UAL - - - -
Net change in fund balances $ (17,139,340) $ 4,484,165 $ 19,529,137 $ (4,215,225) Debt service as a percentage of
noncapital expenditures 5.21% 5.18% 4.92% 4.70%
Source: City of West Covina Finance Department

CITY OF WEST COVINA
Changes in Fund Balances of Governmenta
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
171
(continued)
2017 2018 2019 2020 2021 2022
$ 55,502,969 $ 59,255,716 $ 62,477,442 $ 62,588,256 $ 72,496,610 $ 77,294,614 5,318,497 6,077,861 6,347,182 6,490,254 6,837,731 7,040,726 1,037,389 1,089,850 1,140,622 1,491,744 1,528,117 2,780,660 894,618 1,290,187 1,318,333 921,872 380,169 508,463
4,448,607 551,948 2,008,971 2,677,045 (18,511) (1,311,234) 604,817 649,968 647,749 700,455 952,185 1,459,129
10,193,278 7,920,178 12,581,261 15,386,915 11,623,792 20,743,307 7,359,139 8,681,704 7,473,923 7,690,819 6,376,218 10,011,122 - - - - - -
2,129,531 4,229,895 1,142,659 3,783,990 2,785,758 7,140,273 87,488,845 89,747,307 95,138,142 101,731,350 102,962,069 125,667,060 6,214,682 5,700,461 6,828,020 6,488,092 6,910,013 5,047,088 54,480,972 53,087,630 58,205,797 58,857,571 60,290,745 59,843,680 15,328,717 17,635,489 14,800,936 17,262,224 15,356,778 28,481,999 10,824,395 6,975,178 7,290,775 7,263,052 6,172,738 11,085,748 2,198,881 1,182,255 1,086,128 1,214,558 1,568,283 1,238,687 7,931,202 1,958,918 13,353,918 1,833,918 2,428,918 5,869,299 1,566,392 1,501,956 1,691,316 1,932,807 5,419,621 9,063,717 - - 389,726 - 1,083,165 -
- - - - - -
98,545,241 88,041,887 103,646,616 94,852,222 99,230,261 120,630,218 (11,056,396) 1,705,420 (8,508,474) 6,879,128 3,731,808 5,036,842 5,643,232 3,902,056 149,121 1,494,913 197,353,567 19,667,127 (5,643,232) (5,232,566) (9,121) (1,676,955) (201,320,249) (20,509,469) 500,000 - - 196759 3,900,000 -
- 24,165,000 - 210,697,048 - -
- 1,380,718 - - - -
- (12,900,000) - - - -
- - - - - -
500,000 (1,330,510) 12,785,718 14,717 210,630,366 (842,342) - - - (172,543,016) - -
$ (10,556,396) $ 374,910 $ 4,277,244 $ 6,893,845 $ 41,819,158 $ 4,194,500

10.29% 4.18% 15.08% 3.97% 7.91% 12.38%
Fiscal Year
172
Fiscal Year Taxable
Ended Less: Assessed
June 30 Secured Non-Unitary Unsecured Exemptions Value
2013 6,477,468 - 10,645 ( 6, 93,277) 394,836
2014 6,670,267 - 15,080 ( 6, 73,615) 611,732
2015 7,116,733 - 12,346 ( 7, 94,084) 034,995
2016 7,458,200 - 14,738 ( 7, 95,915) 377,023
2017 7,829,861 - 11,212 ( 7, 100,253) 740,820
2018 8,229,924 - 9,185 ( 8, 84,900) 154,209
2019 8,718,033 - 10,356 ( 8, 101,379) 627,010
2020 9,082,038 - 11,724 ( 9, 79,629) 014,133
2021 9,458,367 - 11,927 ( 9, 119,220) 351,074
2022 9,768,205 - 11,452 ( 9, 111,904) 667,753
NOTE:

Source: HdL Coren & Cone, Los Angeles Assessor 2011/2012 - 2020/2021 Combined Tax Rolls City

CITY OF WEST COVINA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
In 1978, the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
(in thousands)
173
(continued)
City and SA
Taxable Total Taxable Total
Less: Assessed Assessed Direct Tax
Secured Unsecured Exemptions Value Value Rate
160, 2,429,152 ( 821 152,386) 2,437,587 8,832,423 33.456% 2,498,131 161,438 (186,502) 2,473,067 9,084,799 14.083% 2,566,170 161,710 (184,907) 2,542,973 9,577,968 14.116% 2,795,635 162,488 (189,554) 2,768,569 10,145,592 14.138% 3,028,206 165,375 (170,529) 3,023,052 10,763,872 14.165% 3,103,316 163,326 (154,330) 3,112,312 11,266,521 14.109% 3,305,249 167,442 (168,062) 3,304,629 11,931,639 14.221% 3,483,295 169,859 (195,530) 3,457,624 12,471,757 14.236% 3,604,156 168,578 (222,612) 3,550,122 12,901,196 14.262% 3,688,744 167,649 (209,821) 3,646,572 13,314,325 14.280% Successor Agency (SA) of the former Community Development Commission (CDC) 174
2013 2014 2015 2016
Basic Levy1 1.00000 1.00000 1.00000 1.00000
Baldwin Park Unified 0.16406 0.15842 0.16519 0.16288
Bassett Unified School District 0.12773 0.11632 0.11539 0.15771 Covina Valley Unified School District 0.09500 0.11472 0.11426 0.11062 Hacienda-La Puente Unified 0.06689 0.06653 0.06432 0.06394 Metropolitan Water District 0.00350 0.00350 0.00350 0.00350 Mt. San Antonio College 0.02896 0.02023 0.02129 0.02154 Rowland Heights Unified 0.10053 0.12297 0.14313 0.12426 Rowland Unified 0.00000 0.00000 0.00000 0.00000
Walnut Valley Unified 0.12554 0.11342 0.11510 0.09285
West Covina Municipal Maint. Dist. 0.18180 0.18310 0.18310 0.18310 West Covina Unified 0.04965 0.03626 0.05412 0.04205
Total Direct & Overlapping2
Tax Rates 1.94365 1.93547 1.97941 1.96245
City Share of 1% Levy Per Prop 133 0.13820 0.13820 0.13820 0.13820 Redevelopment Rate4 N/A N/A N/A N/A
Total Tax Rate5 0.33456 0.14083 0.14116 0.14138
Source: Los Angeles County Assessor 2011/12 - 2020/21 Tax Rate Table 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment Fiscal Year
5 Total Direct Rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft taxes. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purpose of this report, residual revenue is assumed to be distributed to the City in 1 In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlappping rates apply to all city property owners. 3 City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. ERAF general fund tax shifts may not be included in tax ratio figures.

CITY OF WEST COVINA
(rate per $100 of assessed value)
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates
175
(continued)
2017 2018 2019 2020 2021 2022

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000

0.10510 0.13039 0.12402 0.13032 0.19256 0.18029

0.16781 0.17443 0.16349 0.14196 0.14705 0.13911

0.12581 0.14205 0.13976 0.13521 0.12658 0.12995

0.06600 0.10531 0.10706 0.08252 0.08261 0.08511

0.00350 0.00350 0.00350 0.00350 0.00350 0.00350

0.02400 0.02371 0.02435 0.04781 0.04459 0.04608

0.12444 0.11841 0.11861 0.10760 0.10905 0.00000

0.00000 0.00000 0.00000 0.00000 0.00000 0.11128

0.06601 0.07388 0.10582 0.09538 0.09893 0.10066

0.18310 0.18310 0.18310 0.18310 0.18480 0.18480

0.04914 0.09514 0.09795 0.08192 0.09980 0.07968

1.91492 2.04992 2.06766 2.00932 2.08947 2.06046

0.13820 0.13820 0.13820 0.13820 0.13820 0.13820

N/A N/A N/A N/A N/A N/A

0.14165 0.14109 0.14221 0.14236 0.14262 0.14280
Fiscal Year
176
Percent of Percent of
Total City Taxable Total City
Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Plaza West Covina LLC 279,285,708 $ 1 2.10% 208,481,243 $ 1 2.36% GREF Eastland Center LP 190,370,987 2 1.43%
Colony at the Lakes 178,554,874 3 1.34%
624 South Glendora Avenue Owner LLC 95,800,000 4 0.72%
Walnut Ridge Apartments LP 62,580,639 5 0.47% 46,522,377 5 0.53% TPA Nasch LLC 59,799,944 6 0.45%
Envision WC MB RE LLC 54,260,256 7 0.41%
Merrill Gardens 49,035,657 8 0.37%
Citrus Gardens Apartments LP 47,206,116 9 0.35%
Twelve 31 Partners 46,478,245 10 0.35%
Cole MT West Covina California LP 87,727,132 2 0.99%
Hassen Real Estate Partnership 58,814,373 3 0.67%
Gateway Crescent LLC 46,800,000 4 0.53%
CP Lafayette PARC LLC 44,955,888 6 0.51%
Eastland Tower Partnership 42,603,047 7 0.48%
KW of CV Sunset LLC 40,107,000 8 0.45%
Legacy Partners Verandas LP 37,820,154 9 0.43%
Pried XIV Trust 29,756,545 10 0.34%
Totals $1,063,372,426 7.99% $ 643,587,759 7.29%
Non UnitaryTax Roll
Principal Property Taxpayers
2022 2013
Current Year and Nine Years Ago

CITY OF WEST COVINA
Source: HdL Coren & Cone; Los Angeles County Assessor 2012-13 and 2021-22 Combined Tax Rolls and the 177
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2013 9,094,235 8,853,013 97.35% (75,056) 8,777,957 96.52% 2014 9,119,226 9,105,997 99.85% (67,229) 9,038,768 99.12% 2015 9,702,185 9,491,592 97.83% 34,965 9,526,557 98.19% 2016 10,173,156 9,881,520 97.13% 88,647 9,970,167 98.00% 2017 10,671,800 10,440,321 97.83% 109,928 10,550,250 98.86% 2018 11,679,354 11,040,516 94.53% 267,238 11,307,754 96.82% 2019 12,395,960 11,894,401 95.95% 96,641 11,991,042 96.73% 2020 12,607,874 11,998,360 95.17% 241,683 12,240,043 97.08% 2021 13,527,500 12,917,734 95.49% 91,377 13,009,111 96.17% 2022 13,947,187 12,958,850 92.91% 421,937 13,380,787 95.94% Notes:

Source: Los Angeles County Auditor Controller's Office - Accounting Division Last Ten Fiscal Years

PROPERTY TAX LEVIES AND COLLECTIONS

CITY OF WEST COVINA
Fiscal Year of Levy
Collected within the
Total Collections to Date
City
The amounts presented include City property taxes and Community Development Commission tax increment. This schedule also includes amounts collected by the City and the Community Development Commission that were passed-through to other agencies.
178
(continued)
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30 Fiscal Year Amount of Levy Years Amount of Levy 2013 N/A N/A N/A N/A N/A N/A
2014 N/A N/A N/A N/A N/A N/A
2015 N/A N/A N/A N/A N/A N/A
2016 N/A N/A N/A N/A N/A N/A
2017 N/A N/A N/A N/A N/A N/A
2018 N/A N/A N/A N/A N/A N/A
2019 N/A N/A N/A N/A N/A N/A
2020 N/A N/A N/A N/A N/A N/A
2021 N/A N/A N/A N/A N/A N/A
2022 N/A N/A N/A N/A N/A N/A
Total Collections to Date
Community Development Commission
Fiscal Year of Levy
Collected within the
179
Fiscal Year Lease Capital Total Total
Ended Revenue Lease Governmental Business-type
June 30 Bonds Loans Obligations Activities Activities
2013 49,645,000 1,658,532 957,535 52,261,067 -
2014 48,385,000 1,512,768 773,282 50,671,051 -
2015 47,225,000 12,941,113 216,342 60,382,455 -
2016 46,000,000 12,208,103 2,715,337 60,923,440 -
2017 42,570,000 10,920,515 - 53,490,515 -
2018 41,190,000 10,341,597 - 51,531,597 -
2019 39,680,000 9,762,679 - 49,442,679 -
2020 38,425,000 9,183,761 - 47,608,761 -
2021 241,170,000 8,104,843 6,602,048 255,876,891 -
2022 236,070,000 7,525,925 6,411,667 250,007,592 -
Notes:

Details regarding the City's outstanding debt can be found in the notes to the financial statements.

Source: City of West Covina Finance Department
Business-Type
Activities

CITY OF WEST COVINA
Governmental Activities
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(1) These ratios are calculated using personal income and population for the prior calendar year. 180
(continued)
Total Percentage Debt
Primary of Personal Per
Government Income (1) Capita (1)

1.90% 487 52,261,067

1.88% 470 50,671,051

2.28% 560 60,382,455

2.27% 565 60,923,440

1.98% 496 53,490,515

1.88% 476 51,531,597

1.70% 457 49,442,679

1.56% 449 47,608,761

8.06% 2,423 255,876,891

7.52% 2,310 250,007,592
181
Fiscal Year Lease Percent of
Ended Revenue Assessed Per
June 30 Bonds Total Value(1) Capita
2013 49,645 49,645 0.56% 463
2014 48,385 48,385 0.53% 449
2015 47,225 47,225 0.49% 438
2016 46,000 46,000 0.45% 426
2017 42,570 42,570 0.40% 395
2018 41,190 41,190 0.37% 381
2019 39,680 39,680 0.33% 367
2020 38,425 38,425 0.31% 363
2021 241,170 1.87% 2,284 241,170
2022 236,070 1.77% 2,181 236,070
Notes:

Source: City of West Covina Finance Department and Los Angeles County Assessor's Office

CITY OF WEST COVINA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(in thousands of dollars, except Per Capita)
(1) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 182
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable (1) Debt
Debt repaid with Property Taxes:

METROPOLITAN WATER DISTRICT 9,835,780 $ 0.806 79,240 $
MT. SAN ANTONIO CCD DS 2008 SERIES 2013A 160,803,885 12.768 20,531,113 MT. SAN ANTONIO CCD DS 2008 SERIES 2013B 1,620,000 12.768 206,838 MT. SAN ANTONIO CCD DS 2013 REF SERIES A 12,320,000 12.768 1,572,993 MT. SAN ANTONIO CCD DS 2013 REF SERIES B 14,560,000 12.768 1,858,991 MT. SAN ANTONIO CCD DS 2008 SERIES 2015C 3,700,000 12.768 472,408 MT. SAN ANTONIO CCD DS 2015 REF BONDS 3,290,000 12.768 420,061 MT. SAN ANTONIO CCD DS 2018 SERIES 2019A 265,125,000 12.768 33,850,621 MT. SAN ANTONIO CCD DS 2020 SERIES A 59,075,000 12.768 7,542,576 MT. SAN ANTONIO CCD DS 2008 SERIES 2020D 120,358,674 12.768 15,367,151 MT. SAN ANTONIO CCD DS 2008 SERIES 2021E 289,508,893 12.768 36,963,907 BALDWIN PARK USD 2002 SERIES 2004 4,882,131 0.303 14,779 BALDWIN PARK USD 2006 SERIES 2013 1,989,076 0.303 6,021 BALDWIN PARK USD 2016 REF BONDS 57,660,000 0.303 174,546 BALDWIN PARK USD 2006 SERIES 2019 10,895,000 0.303 32,981 BALDWIN PARK USD 2019 REF BONDS 32,996,025 0.303 99,884 BALDWIN PARK USD 2018 SERIES 2020 26,800,000 0.303 81,128 BASSETT USD DS 2006 SER B 10,185,729 0.054 5,528
BASSETT USD DS 2014 REF SERIES A 7,325,000 0.054 3,975
BASSETT USD DS 2014 REF SERIES B 4,970,000 0.054 2,697
BASSETT USD DS 2014 SERIES A 8,375,000 0.054 4,545
BASSETT USD DS 2016 REF BONDS 5,345,000 0.054 2,901
BASSETT USD DS 2014 SERIES B 19,530,000 0.054 10,599
COVINA VALLEY USD DS 2001 SERIES B 7,226,440 31.283 2,260,623 COVINA VALLEY USD DS 2012 SERIES A 3,715,000 31.283 1,162,151 COVINA VALLEY USD DS 2013 REF BONDS 4,470,000 31.283 1,398,335 COVINA VALLEY USD DS 2012 SERIES B 12,000,000 31.283 3,753,920 COVINA VALLEY USD DS 2012 SERIES C 2,130,000 31.283 666,321 COVINA VALLEY USD DS 2012 SERIES C1 15,335,000 31.283 4,797,197 COVINA VALLEY USD DS 2016 REF BONDS 28,515,000 31.283 8,920,252 COVINA VALLEY USD DS 2012 SERIES D 13,600,000 31.283 4,254,443 COVINA VALLEY USD DS 2012 SERIES E 56,580,000 31.283 17,699,733 COVINA VALLEY USD DS 2019 REF BONDS 47,850,000 31.283 14,968,756 HACIENDA-LA PUENTE USD DS 2005 REFUNDING BONDS 12,725,000 1.391 176,960 HACIENDA-LA PUENTE USD DS 2007 REFUNDING 44,590,000 1.391 620,090 HACIENDA-LA PUENTE USD DS 2016 SERIES 2017A 57,895,000 1.391 805,115 ROWLAND HEIGHTS USD DS 2005 REF BONDS 4,569,606 14.542 664,511 ROWLAND HEIGHTS USD DS 2006 SERIES D QSCB 10,575,000 14.542 1,537,815 ROWLAND HEIGHTS USD DS 2006 SERIES E 19,830,000 14.542 2,883,676 ROWLAND HEIGHTS USD DS 2012 SERIES A 375,000 14.542 54,532 ROWLAND HEIGHTS USD DS 2013 REF BONDS 20,030,000 14.542 2,912,760 ROWLAND HEIGHTS USD DS 2012 SERIES B 65,999,972 14.542 9,597,706 ROWLAND HEIGHTS USD DS 2015 REF BONDS 38,625,000 14.542 5,616,842 ROWLAND HEIGHTS USD DS 2019 REF BONDS 10,565,000 14.542 1,536,361 ROWLAND HEIGHTS USD DS 2020 REF BONDS 45,110,000 14.542 6,559,889 WALNUT VALLEY USD DS 2000 SERIES D 10,067,924 0.767 77,224 WALNUT VALLEY USD DS 2000 SERIES E 3,743,269 0.767 28,712 WALNUT VALLEY USD DS 2007 SERIES B MEAS. S 9,421,644 0.767 72,267 WALNUT VALLEY USD DS 2014 REF BONDS SERIES A 3,260,000 0.767 25,005 WALNUT VALLEY USD DS 2014 REF BONDS SERIES B 715,000 0.767 5,484 WALNUT VALLEY USD DS 2016 REF BONDS 37,170,000 0.767 285,105 WALNUT VALLEY USD DS 2016 SERIES A BONDS 38,440,000 0.767 294,846 WALNUT VALLEY USD DS 2019 REF BONDS 25,110,000 0.767 192,601 WALNUT VALLEY USD DS 2016 SERIES B BONDS 106,615,000 0.767 817,769 WEST COVINA USD 2002 REFUNDING SERIES A 7,110,000 95.573 6,795,272 WEST COVINA USD DS 2012 REF BONDS 7,890,000 95.573 7,540,745 WEST COVINA USD DS 2016 SERIES A 99,125,000 95.573 94,737,174 Sub Total Overlapping Debt 323,025,675
City of West Covina Direct Debt - Lease Revenue Bonds 249,274,843 Total Direct and Overlapping Debt $ 572,300,518
Source: HdL Coren & Cone, Los Angeles, County Assessor and Auditor Combined 2020-21 Lien Date Tax Rolls Direct and Overlapping Debt
June 30, 2022

CITY OF WEST COVINA
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Glendora. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for the debt, for each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the County's taxable assessed value that is within the government's boundaries and dividing it by the County's total taxable assessed value. 183
2013 2014 2015 2016
Assessed valuation $ 6,394,836 $ 6,611,732 $ 7,034,995 $ 7,377,023 Conversion percentage 25% 25% 25% 25%
Adjusted assessed valuation 1,598,709 1,652,933 1,758,749 1,844,256 Debt limit percentage 15% 15% 15% 15%
Debt limit 239,806 247,940 263,812 276,638.36
Total net debt applicable to limitation - - - -
Legal debt margin $ 239,806 $ 247,940 $ 263,812 $ 276,638 Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
Source: City of West Covina Finance Department
Los Angeles County Tax Assessor's Office

CITY OF WEST COVINA
(in thousands of dollars)
Last Ten Fiscal Years
Legal Debt Margin Information
Fiscal Year
The Government Code of the State of California provides for a legal debt margin of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proprtionately modified to

3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit. 184
(continued)
2017 2018 2019 2020 2021 2022
$ 8,154,209 7,740,820 $ 8,627,010 $ 9,014,133 $ 9,351,074 $ 9,667,753 $ 25% 25% 25% 25% 25% 25%
2, 1,935,205 2, 038,552 2, 156,753 2,337,769 253,533 2,416,938 15% 15% 15% 15% 15% 15%
305,782.84 290,280.75 323,512.88 338,029.99 350,665.28 362,540.74 - - - - - -
$ 290,281 $ 305,783 $ 323,513 $ 338,030 $ 350,665 $ 362,541

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Fiscal Year
185
Fiscal Year
Ended
June 30 Revenue Principal Interest Coverage
2013 53,006 1,605 1,272 18.42
2014 54,753 1,715 1,249 18.47
2015 57,588 1,655 891 22.62
2016 58,133 1,900 1,121 19.24
2017 64,372 4,005 1,185 12.40
2018 67,196 2,005 1,306 20.29
2019 65,426 1,255 1,918 20.62
2020 70,935 1,255 1,918 22.36
2021 72,992 1,350 1,859 22.75
2022 81,019 5,100 8,845 5.81
Fiscal Year
Ended Tax
June 30 Increment Principal Interest Coverage
2013 12,152 1,305 1,030 5.20
2014 8,675 1,358 978 3.71
2015 9,260 1,420 920 3.96
2016 15,110 1,480 853 6.48
2017 9,365 19,005 802 0.47
2018 9,040 1,480 455 4.67
2019 11,169 1,765 406 5.14
2020 8,190 1,820 361 3.76
2021 6,775 1,865 306 3.12
2022 5,427 1,615 253 2.91
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.

Source: City of West Covina Finance Department

CITY OF WEST COVINA
Pledged Revenue Coverage
Last Ten Fiscal Years
(In thousands of dollars)
Debt Service
Lease Revenue Bonds and Certificates of Participation
Debt Service
Tax Allocation Bonds
186
(continued)
Fiscal Year Less Net
Ended Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2013 5,569 1,027 4,542 1,770 2,004 1.20
2014 5,740 767 4,973 2,055 1,890 1.26
2015 3,305 1,457 1,848 2,340 1,758 0.45
2016 6,911 1,429 5,482 2,940 2,124 1.08
2017 4,596 2,536 2,060 2,745 1,365 0.50
2018 4,431 2,536 1,895 3,000 1,429 0.43
2019 5,304 929 4,375 3,250 1,004 1.03
2020 3,999 3,365 634 3,495 1,120 0.14
2021 5,627 3,916 1,711 3,735 650 0.39
2022 3,879 4,347 (468) 4,055 416 (0.10)
Debt Service
Assessment District Bond
187
Per
Personal Capita Annual
Calendar Income Personal Unemployment
Year Population (in thousands) Income Rate
2012 107,248 2,751,555 25,656 8.2%
2013 107,828 2,698,504 25,026 6.7%
2014 107,879 2,653,176 24,594 10.1%
2015 107,873 2,680,000 24,844 8.2%
2016 107,813 2,705,736 25,096 6.4%
2017 108,245 2,737,892 25,293 5.2%
2018 108,116 2,916,516 26,975 4.6%
2019 105,999 3,053,619 28,807 4.4%
2020 105,593 3,173,022 30,050 13.1%
2021 108,243 3,324,204 30,710 9.2%
Sources: HdL Coren & Cone, California State Department of Finance, and California Employment Demographic and Economic Statistics
Last Ten Calendar Years

CITY OF WEST COVINA
188
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment Queen of the Valley Campus 1 3.03% 1,484 1,464 1 2.90%
WC Unified School District 2 2.89% 1,194 1,398 2 2.34%
Target Store #T1028 & #T2147 455 3 0.94% 3 0.86% 437
City of West Covina 4 0.77% 372 4 0.78% 397
Merakey Allos 5 0.69% 335
Porto's Bakery 6 0.62% 298
Walmart Store #5954 7 0.52% 249 5 0.59% 301
Interspace/Concorde Battery Corporation 231 8 0.48%
The Home Depot 9 0.41% 198
JC Penney Corp Inc. #1505-7 10 0.34% 165
Macy's 6 0.59% 299
Interspace/Concorde Battery 7 0.49% 252
SGV Newspaper Group 8 0.44% 225
East Valley Comm. Health Center 9 0.39% 200
B.J.'s Restaurant & Brewery 10 0.37% 187
Totals 5,165 10.69% 4,976 9.75%
Note: "Total Employment" as used above represents the total employment of all employers located within City limits.

Source: Labor Market Info, EDD, State of California
HdL Coren & Cone
2022 2013
Principal Employers
Current Year and Nine Years Ago

CITY OF WEST COVINA
189
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General government 31 31 32 42 46 36 32 38 48 31
Public safety 244 268 268 282 259 238 237 259 242 253
Public works 69 71 71 75 56 44 - - - 64
Public Services - - - - - - 25 32 41 -
Community services 42 41 41 87 64 64 27 22 22 41
Community development 7 2 2 2 1 1 3 12 13 19
Total 396 389 413 414 487 426 385 333 364 372
Source: City of West Covina Finance Department
Last Ten Fiscal Years
Full-time and Part-time City Employees by Function

CITY OF WEST COVINA
Fiscal Year
190
Function/Program 2013 2014 2015 2016
Public Safety:

Police:

Total arrests 2,755 2,537 2,544 2,624
Calls for police service (1) 65,554 69,874 71,098 72,368 Graffiti sites cleaned 19,910 20,014 16,156 N/A
Fire:

Emergency responses 7,871 7,990 8,555 9,494
Fire inspections 837 749 717 778
Public Services:

Building permits issued 3,882 2,925 3,617 5,038
Graffiti sites cleaned (2) N/A N/A N/A 13,964
Community Services:

Recreation class registrations (3) 6,027 6,283 6,487 7,129 Note:
(1) Calls received that generated an incident number but not necessarily a police response. (2)
(3)
(4)
Source: City of West Covina Finance Department
Fiscal Year
The decrease in recreation class registrations in FY20 relates to COVID restrictions.

Last Ten Fiscal Years
Operating Indicators by Function

CITY OF WEST COVINA
Due to department restructuring, the responsibility for graffiti abatement was absorbed by the Police Department starting fiscal year 2008-2009 and by Public Works starting fiscal year 2015-2016.

The increase in recreation class registrations in FY18 relates to inclusions of daycare classes.
191
(continued)
2017 2018 2019 2020 2021 2022
3,080 2,818 2,538 2,037 1,266 1,266
84,850 74,898 73,713 68,605 61,353 61,353

N/A N/A N/A N/A N/A N/A
9,383 9,353 9,289 8,944 9,405 10,286
805 816 1,009 920 964 1,079
1,399 1,547 2,938 3,022 3,701 4,941
2,391 6,694 3,077 3,140 2,632 4,363
17,902 7,500 26,482 8,075 65 3,533
Fiscal Year
192
2013 2014 2015 2016
Public Safety:

Police:

Stations 1 1 1 1
Fire:

Stations 5 5 5 5
Public works:

Streets (miles) 231.0 231.0 231.0 240.3
Streetlight poles 826 826 826 826
Streelight fixtures 1,109 1,109 1,109 1,109
Traffic signals 117 117 114 114
Parks and recreation:
1 1 1 1
Parks 16 16 16 16
Community centers 4 4 4 4
Wastewater:

Sanitary sewers (miles) 238.9 238.9 238.9 238.9
Storm sewers (miles) 42.0 42.0 42.0 42.0
Source: City of West Covina
Capital Asset Statistics by Function/Program
Sports Complex

CITY OF WEST COVINA
Last Ten Fiscal Years
Function
Fiscal Year
193
(continued)
2017 2018 2019 2020 2021 2022
1 1 1 1 1 1
5 5 5 5 5 5
240.3 240.3 240.3 240.3 240.3 240.3
674 674 674 674 674 674
420 420 420 420 420 420
97 97 97 97 97 97
1 1 1 1 1 1
16 16 16 16 16 16
4 4 4 4 4 4
227.0 227.0 227.0 227.0 227.0 227.0

26.0 26.0 26.0 26.0 26.0 26.0
Fiscal Year
194
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of West Covina
West Covina, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of West Covina (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 22, 2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did 1 Attachment No. 2
not identify any deficiencies in internal control that we consider to be weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

December 22, 2022
2 December 22, 2022
City Council
City of West Covina
West Covina, CA
We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of West Covina for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 13, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements.

No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year, except for the implementation of GASB Statement No. 87, Leases. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:

Management’s estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investments in determining that it is reasonable in relation to the financial statements as a whole.

1 Attachment No. 3
Management’s estimate of capital assets depreciation is based on historical estimates of each capitalized item’s useful life. We evaluated key factors and assumptions used to develop the estimated useful lives in determining that they are reasonable in relation to the financial statements as a whole.

Management’s estimate of the net pension and net OPEB liabilities/(assets) are based on actuarial information provided by the California Public Employee Retirement System’s (CalPERS) actuarial office, and other sources. We evaluated the key factors and assumptions used to develop these liabilities in determining that the estimated liabilities/(assets) are reasonable in relation to the financial statements as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:

The disclosure of the fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuation.

The disclosure of accumulated depreciation in Note 7 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item.

The disclosures for the net OPEB and net pension liabilities/(assets) in Notes 14, 15 and 17 to the financial statements are based on assumptions for discount rates, etc., which could differ from actual experience. The notes disclose the differences in these liabilities/(assets) if different assumptions are used in estimating these liabilities/(assets).

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The following material misstatements detected as a result of audit procedures were corrected by management:

(1) Adjustments were made to adjust accounts receivable and interest receivable at yearend.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
2 Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 22, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to management’s discussion and analysis and the schedules listed as required supplementary information in the table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the supplementary information as listed in the table of contents, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory sections, which accompanies the financial statements but is not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
3 Restrictions on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,
4 City of West Covina www.westcovina.org
Community
2021 - 2022
Financial Report
This report provides a snapshot of the City’s financial information, for Fiscal Year (FY) ending June 30, 2022 presented in a userfriendly format. For additional detail, please see the City's complete Annual Comprehensive Financial Report for fiscal year ending June 30, 2022 available at www.westcovina.org.

Attachment No. 4
www.westcovina.org 2
108K
2021
Population

30.7K 9.2%
2021 Per Capita 2021 Annual
Personal Income Unemployment Rate
City of West Covina Community Financial Report FY 2021-22 City Overview

CITY COUNCIL
Dario Castellanos, Mayor
Rosario Diaz, Mayor Pro Tem
Brian Tabatabai
Letty Lopez-Viado
Tony Wu

ELECTED OFFICIALS
Nickolas S. Lewis, City Clerk
Colleen B. Rozatti, City Treasurer

CITY MANAGER
David N. Carmany

EXECUTIVE MANAGEMENT TEAM
Paulina Morales, Assistant City Manager/Community Development Director Roxanne Lerma, Assistant City Manager/Public Services Director Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Stephanie Sikkema, Finance Director
Vincent Capelle, Fire Chief
Helen Tran, Human Resources Director
Richard Bell, Police Chief
This report is informational in nature and does not constitute a financial statement as defined by Generally Accepted Accounting Principles. The data presented is taken directly from the audited Annual Comprehensive Financial Report (ACFR) for fiscal year ending June 30, 2022.

The City of West Covina is located in the San Gabriel Valley, 20 miles east of downtown Los Angeles and 15 miles north of Orange County. Incorporated as a general law city in 1923, the City's 16 square miles flourished with walnut groves and orange groves for many decades.

West Covina
Attachment No. 4
Assets $444.71M $347.34M
Bonds
$237.2
Total OPEB Liability
$65.1
Notes & Loans
$13.9
Net Pension Liability
$5.8
44%
www.westcovina.org 3
The City’s total (Governmental and Business-type activities) net position increased $37.6 million from the prior year. This is mostly due to a decrease in long-term debt related to the net pension liability of $196.1 million plus an increase in the net pension asset of $65.7 million. In the prior year, there was an issuance of Lease Revenue Bonds. The decrease to debt is offset with a decrease to Deferred Outflows relating to pension and Other Postemployment Benefits liabilities of $185.2 million. Additionally, there is an increase in capital assets of $11.7 million as the City is investing into needed upgrades to the infrastructure.

Statement of Net Position
City of West Covina Community Financial Report FY 2021-22 The City's Net
position increased
by 142% ($37M)
from FY 2020-21
Assets increased by
28% ($97M)
Liabilities Decreased
by over 35% or 206M
Capital Assets make up 44%
The City's net position may serve as a
useful indicator of the government’s
financial position over time.

Capital
Deferred
Inflows $87.42M $6.77M
Total
Net
Position
$11.22M -$26.42M
Deferred
Outflows $21.86M $206.94M
2022 2021
Liabilities $367.83M $573.93M
Attachment No. 4
Nonspendable Restricted Assigned
Unassigned
2018 2019 2020 2021 2022
30 20
10 0
Taxes

79.3%
Charges for Services

11.8%
Licenses and Permits

3.4%
Revenue from Other Agencies

2.9%
Other Revenues

2.6%

78.2%
Public Works, Community Svc, Community Dev.

13.8%
General Government
8%
Beginning Fund
Balance
$25.5M
Revenue Less
Expenditures
+ $19.1M
Net Transfers - $20.4
Ending Fund
Balance = $24.2M
General Fund
www.westcovina.org 4
$81.0 Million
Revenue
$61.9 Million Expenditures
Changes in General Fund Fund Balance by
Fiscal Year (Millions)
City of West Covina Community Financial Report FY 2021-22 The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $20.8 million, while total fund balance was $24.2 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 33.5% of total general fund expenditures, while total fund balance represents 39.0% of that same amount. The nonspendable portion of fund balance in the amount of $3.4 million mainly consists of Land Held for Resale in the amount of $3.0 million.

Attachment No. 4
AGENDA ITEM NO. 8

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: January 17, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF UPGRADE TO MICROWAVE SYSTEM INFRASTRUCTURE RECOMMENDATION:

It is recommended that the City Council:

Authorize the City Manager to issue a Purchase Order in the amount of $1,017,589.00 to Microwave Networks Inc. to upgrade the City's microwave infrastructure;

1. Authorize the City Manager to execute any agreements and documents necessary to upgrade the City's microwave infrastructure, in such form as approved by the City Attorney; and

2. Authorize the City Manager to execute any amendments to the Purchase Order or any agreements entered into in connection with the upgrade of the microwave infrastructure, provided that the total cost for the upgrade does not exceed $1,100,000.00.

3. BACKGROUND:

The City’s current microwave system is a point-to-point microwave data link used to transport TCP/IP network data throughout the City’s public safety communications network infrastructure. The microwave system is the key physical means by which all network data is transported throughout the City’s network infrastructure. The West Covina Fire Department uses this network infrastructure in Fire Stations 2, 3, 4, and 5, for telephones, computers, and 911 dispatched calls. Other critical City facilities like City Hall, Cameron Park, Senior Center, PalmView Park, Vine Daycare, Sportsplex, Industry Hills and the radio tower on City property adjacent to the former BKK landfill use this IP-based point-to-point microwave network for their telephones and computer connectivity.

The current microwave network equipment is quite antiquated and beyond its normal service life.

Purchased and installed in 1990, then modified in the early 2000s, the current equipment is no longer manufactured by vendors and repairs are only on a “best effort” basis. If there are failures with this equipment, it is not guaranteed it will be repaired. Additionally, there is no certainty of when replacement equipment or parts will be available, if at all. This puts the City's public safety communications network in a vulnerable position if there are system failures.

The City’s current in-service microwave equipment, Harris Stratex Truepoint 5000, has not been manufactured for over a decade. This equipment has passed its normal service life. Failures of this equipment are becoming more and more frequent. Numerous repair shops across the United States have reported that key parts required to repair the Truepoint 5000 are no longer available. In the City's efforts to find used replacement parts, there is limited availability of used equipment, and what is available is expensive. All replacement parts are sold "as is" and without extended warranty. As there is available is expensive. All replacement parts are sold "as is" and without extended warranty. As there is no way to repair this equipment, replacement quality and availability are degrading.

Another critical issue is the Harris Stratex Truepoint 5000 data capacity. Currently, the system is operating at its maximum data carrying capacity. This capacity was established 15 years ago. With the increase in cloud-based applications and use of data sharing, the data capacity from 15 years ago is no longer sufficient for the City. In addition, as current City efforts include upgrading both accounting and permitting software systems, ensuring a reliable infrastructure is necessary. The system upgrade will allow the City to address future technology needs for the City's data and communication needs.

Because of these issues, it is highly recommended to replace the City’s microwave equipment and upgrade network infrastructure, to maintain reliable data services for public safety communications.

Existing Licensed and Unlicensed Microwave Network Infrastructure Locations:

1. City Hall

2. Industry Hills

3. Radio Tower on city property adjacent to the former BKK landfill

4. Fire Station 2

5. Fire Station 3

6. Fire Station 4

7. Fire Station 5

8. Cameron Park

9. Senior Center

10. Palmview Park

11. Vine Daycare

12. Sportsplex
DISCUSSION:

A quote and scope of work (Attachment No. 1) was provided by Microwave Networks Inc. utilizing the NASPO ValuePoint Cooperative Purchasing Master Agreement No. 00318 between the State of Washington and Microwave Networks Inc. which is valid until December 31, 2026. A topography and path engineering report has been completed and provided by the vendor showing all 12 microwave backhaul path calculations are setup to meet or exceed industry standard two-way availability of 99.99% connectivity.

The work required for this project needs to be scalable depending upon the needs of the City and its existing microwave system locations being upgraded to industry standards. Overall, Microwave Networks Inc. has provided the scope of work for this project, including an itemized quote for all the equipment being upgraded at each of the 12 microwave network locations.

A cooperative purchasing agreement with Microwave Networks Inc. has been awarded by the State of Washington for the specified goods and services needed. Pursuant to West Covina Municipal Code (WCMC) section 2-335(f), purchases made through cooperative purchasing agreements or programs are exempt from the City's formal competitive bidding requirements, provided that: (1) the Purchasing Officer determines the purchase is in the best interest of the City; (2) the Purchasing Officer determines the purchase is to the City’s economic advantage; and (3) the agreement was competitively awarded using a process that complies with policies, rules, and regulations as approved by the Purchasing Officer. The Purchasing Officer has reviewed the NASPO ValuePoint Cooperative Purchasing Master Agreement and determined that all requirements of WCMC section 2-335(f) have been met.

LEGAL REVIEW:

The City Attorney's Office will review and approve any agreements and documents as to form prior to The City Attorney's Office will review and approve any agreements and documents as to form prior to execution.

Prepared by: Will Trujillo / IT Manager
Fiscal Impact
FISCAL IMPACT:

The total quote and scope of work provided by Microwave Networks Inc. for the Microwave Upgrade is $1,017,589.00.

This project was included in the Capital Improvement Program (CIP) under the Microwave System Infrastructure project (Project No. 22013), which has an available balance of $1,000,000. Funding for the variance is available from another IT project within the Capital Improvement Program to remove a communication tower (Project No. 22018). Funding for the removal of the communications tower is no longer needed. Therefore, staff proposes reallocating the budget of $100,000 to Project No. 22013 to accommodate the overage and any other associated expenses that may arise with the project. Funding for the Microwave System Infrastructure (Project No. 22013) is proposed as follows:

Project
No.

Fund Account No. Current
FY2022-23
Budget
Proposed
Transfer
Amended
FY2022-23
Budget
22018 Fund 179, ARPA
Local Fiscal
Recovery Funds
179.80.7003.7900 100,000 -100,000 0
22013 Fund 179, ARPA
Local Fiscal
Recovery Funds
179.80.7003.7900 1,000,000 100,000 1,100,000
Total 1,100,000 0 1,100,000
Resolution No. 2022-53 authorizes appropriations to be reallocated from one activity account to another provided there is no change in the scope of service delivery level or increase in the appropriation as approved by the City Council. Since this transfer is within the same fund and is not changing the service delivery level or increasing appropriations, a resolution amending the budget is not necessary. If the purchase is approved, an internal budget transfer will be processed.

Attachments
Attachment No. 1 - Microwave Networks Quote and Scope of Work CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Enhance City Image and Effectiveness
A Well-Planned Community
Attachment No. 1
4000 Greenbriar Stafford, TX 77477 Customer: City of West Covina - NASPO ValuePoint Master Agree Ph.: 281-263-6500; Fx: 281-263-6406 Contact: William Trujillo Sales Contact: Itai Farchi Location: West Covina, CA
System Engineer: SLR3 Freight Terms FOB
Quote: IF20812-50 Validity: 90 Days
Date: 11/21/2022 Delivery: 90-120 Days ARO w/Freqs
Currency: US Dollars Payment Terms: Per Contract

PRICE AND MATERIAL LIST
Item Description Includes Items Extended Cost

1.00 Radio equipment Includes items 1.01-1.31 $403,159

2.00 Antenna System Includes items 2.01-2.43 $122,410

3.00 DC Power System Includes items 3.01-3.02 $18,686

4.00 Battery System Includes items 4.01-4.04 $15,902

5.00 HPE Aruba Switches Includes items 5.01-5.02 $155,634

6.00 SPARCS - SNMP Network Management System Includes items 6.01-6.06 $26,936

7.00 Spares Includes items 7.01-7.03 $48,128

8.00 MNI Services Includes items 8.01-8.07 $505,743

9.00 Bronze LSS Includes items 8.01-8.03 $0

10.00 Freight $33,584
Sub Total: $1,330,182
One Time Management Concession ($312,593)
Grand Total: $1,017,589
Notes: All other terms and conditions as per Microwave Networks Inc. (MNI) Standard Terms and Conditions of Trade.

Pricing shown is contingent upon purchase of entire quoted bill of materials and services.

Additional charges may be applied if a particular component, brand, service, or installation partner is required by the customer.

Final antenna type is subject to change based on PCN results.

Legacy and EOL equipment availability is limited and requirements for such may be filled by refurbished equipment on a case-by-case basis per customer approval.

Quote validity as shown on the quote may change due to factors that are outside of MNIs control such as delays and/or cost increases due to challenges within the global supply chain.

MNI will make best effort to keep the original terms but may be forced to update them. Any needed adjustments will be communicated to customer immediately.

Change orders are subject to price increase.

Scheduled delivery dates are approximate and depend on a number of factors including availability of inventory. MNI will make commercial best efforts to accommodate customer’s requested delivery schedule as long as customer provides all information required for MNI to build the order as soon as possible. Customer must take delivery of equipment on the agreed delivery date. If customer; through customer’s action, inaction, or other external factors; delays the agreed delivery date, customer agrees to accept title and be invoiced for equipment on the agreed date (i.e. ship in place). Storage and handling fees may apply.

Customer is responsible for receiving, inspecting, and taking a detailed inventory of any shipments made against a valid purchase order.

Any claims of missing and/or damaged equipment must be submitted to MNI’s customer service department within 15 days of receipt of shipment. Failing to contact MNI within 15 days will result in customer’s waiver of any right to claim for remedy.

Microwave Networks manufactured equipment is covered by 2 years warranty after shipment, per Microwave Networks' Standard Warranty.

Installation quote is based on preliminary path information and is subject to change once path and site surveys have been finalized.

Installation quote assumes site readiness. De-installation, removal, and disposal of any existing equipment is the responsibility of the customer unless quoted specifically by Microwave Networks Inc.

Installation is expected to commence no later than 30 days after delivery of equipment. If installation is delayed by customer for any reason, additional program management and support fees may apply.

MNI is proud to support our mission critical customers on a 24/7 basis. As such, this quote is predicated on MNI having access to the worksite 24 hours a day and 7 days a week including holidays. Any restrictions imposed by customer regarding access and/or on-site working hours are subject to additional fees.

Warranty on installation workmanship is 1 year from date of customer acceptance.

Microwave Networks reserves the right to replace 3rd party products with alternative equipment of similar or superior function and quality.

Warranty on all 3rd party products is the original manufacturer's warranty or 1 year. 4000 Greenbriar Stafford, TX 77477 Customer: City of West Covina - NASPO ValuePoint Master Agreement Number 00318 Ph.: 281-263-6500; Fx: 281-263-6406 Contact: William Trujillo Sales Contact: Itai Farchi Location: West Covina, CA
System Engineer: SLR3 Freight Terms FOB
Quote: IF20812-50 Validity: 90 Days
Date: 11/21/2022 Delivery: 90-120 Days ARO w/Freqs
Currency: US Dollars Payment Terms: Per Contract

PRICE AND MATERIAL LIST
1 2 3 4 5 6 7 8 9 10 11 12
Item Model Description Unit Price BKK
Cameron
City Hall
Fire Station 2Fire Station 3Fire Station 4Fire Station 5 Industry
Senior Center
Sports Plex
Vine Daycare
Total Qty Extended Price

1.00 Proteus Microwave Radio Terminals
MX Radios 0

1.01 J11PW3-253G-NN0-EXBL-C $23,616 3 1 1 1 6 $141,696

1.02 J11NW3-253G-NN0-EXBL-C $14,552 3 2 2 1 3 1 12 $174,624

1.03 J18NW2-253G-NN0-EXBL-C $9,500 1 1 2 $19,000

1.04 8209325-52 7' x 19" EIA Rack and Mount Radio $1,049 2 1 1 1 5 $5,245

1.05 9901925-01 B-Line, SBVB72K, Ground Bar and Hardware Kit, 72" $445 2 1 1 0 0 1 0 0 0 0 1 0 6 $2,670

1.06 9900653-02 Fuse Panel, +/-48/24V $369 1 1 1 0 0 1 0 0 0 0 1 0 5 $1,845 0 UMX Radios 0

1.07 WACE-5X-230D-M750 Proteus UMX 2x2 750Mbps radio, integrated 23 dBi dual polarization antenna $4,212 1 1 2 $8,424

1.08 62-8K-5X-230D-M310-A $3,857 1 1 2 $7,714

1.09 62-8K-5X-00D0-M310-A Proteus UMX MIMO 5.x GHz 270Mbps radio, external antenna ports $3,486 1 1 2 $6,972

1.10 62-AC-ADV-MK Advanced Mounting Kit – wall/pole mount, azimuth & elevation $65 2 0 0 1 0 0 0 0 1 1 0 1 6 $390

1.11 62-AC-GPOE-DC-DC 10-60 VDC input PoE, 10/100/1000Base-T Gigabit interface $260 2 0 0 1 0 0 0 0 1 1 0 1 6 $1,560

1.12 62-AC-GPOE-480V-US 100-240 VAC to 48 VDC PoE, 10/100/1000Base-T interface (US plug) $130 0 $0

1.13 9901744-00 $2 300 0 0 150 0 0 0 0 150 150 0 150 900 $1,800

1.14 62-AC-WIP-GUARD Outdoor data protection device (10/100/1000Base-T) $260 2 0 0 1 0 0 0 0 1 1 0 1 6 $1,560 0 Outdoor Enclosure 0

1.15 OD-62DDC 62" Outdoor Enclosure $6,404 1 1 $6,404

1.16 ACP-2000-T20-110 2,000 BTU AC unit $6,096 1 1 $6,096

1.17 ZP-NDCP Door Louver Cover Plate $151 2 2 $302

1.18 ZZ-SLD-WIND-LCK 2 Position Wind Lock $163 1 1 $163

1.19 OD-INS 1/2" Enclosure Insulation $594 1 1 $594
0 Split Indoor Mounting Accessories 0

1.20 8708272-11 ODU Rack Mount Kit, 11 GHz $702 6 1 1 8 $5,616

1.21 9901992-03 Alpha Wireless,9316 BR005,RG316/U Coax C $5 54 0 0 0 0 6 12 0 0 0 0 0 72 $360

1.22 9901992-00 Amphenol,172180,N-Type Connector $25 9 0 0 0 0 1 2 0 0 0 0 0 12 $300

1.23 9901992-01 Amphenol,122148,TNC Connector $11 9 0 0 0 0 1 2 0 0 0 0 0 12 $132

1.24 8501116-11X1 Waveguide Extension Kit, 11 GHz, CPR90, E-BEND, TOP ODU $358 2 1 1 4 $1,432

1.25 8501115-11X2 Waveguide Extension Kit, 11 GHz, CPR90, HE-BEND, 2ND ODU $685 2 2 $1,370

1.26 8501115-11X3 Waveguide Extension Kit, 11 GHz, CPR90, HE-BEND, 3RD ODU $1,003 2 2 $2,006

1.27 8708317-00 KIT, WG SUPPORT BRACKET, RR1 $104 2 1 1 4 $416

1.28 8509933-00 CLAMP, WG, WIDE, WR90 $34 2 1 1 4 $136

1.29 8509932-00 CLAMP, WG, NARROW, WR90 $63 4 4 $252

1.30 9901777-01 Flex, 11 GHz, MicroTech, MTPS90FHN36B, 3', UG40B-CPR $510 6 1 1 8 $4,080 Radio Total: $403,159
PalmView
Park
Proteus MX, 11 GHz Gigabit Ethernet Radio, Hot Standby Protected, Split Mount, UHP, Licensed for 253 Mbps in 40 MHz Channel
Proteus MX, 11 GHz Gigabit Ethernet Radio, Non Protected, Split Mount, UHP, Licensed for 253 Mbps in 40 MHz Channel
Proteus MX, 18 GHz Gigabit Ethernet Radio, Non Protected, High TX Pwr, Split Mount, Licensed for 253 Mbps in 40 MHz Channel
Proteus UMX MIMO 5.x GHz 270Mbps radio, integrated 23 dBi dual polarization antenna
Superior Essex, SUPX-04-001-55, CAT5E Cable, shielded, outdoor use rated, per foot
4000 Greenbriar Stafford, TX 77477 Customer: City of West Covina - NASPO ValuePoint Master Agreement Number 00318 Ph.: 281-263-6500; Fx: 281-263-6406 Contact: William Trujillo Sales Contact: Itai Farchi Location: West Covina, CA
System Engineer: SLR3 Freight Terms FOB
Quote: IF20812-50 Validity: 90 Days
Date: 11/21/2022 Delivery: 90-120 Days ARO w/Freqs
Currency: US Dollars Payment Terms: Per Contract

2.00 Antenna System
Antennas + Mounts

2.01 9901987-03 Antenna, 18 GHz, 2', Integrated $1,173 1 1 2 $2,346

2.02 9901988-00 Antenna, 11 GHz, 3', Integrated $1,418 2 1 1 3 1 0 8 $11,344

2.03 9901989-00 Antenna, 11 GHz, 4', Integrated $1,928 1 1 1 3 $5,784

2.04 9999999-TBD SPD2-5.2 Antenna, 2 ft, 5 GHz $1,304 1 1 2 $2,608

2.05 9901812-04 Antenna Strut Kit, 2/3 Ft Antenna $329 0 2 1 0 0 2 0 3 0 0 2 0 10 $3,290

2.06 9901766-02 Antenna Strut Kit, 4/6 Ft Antenna $568 0 0 1 1 1 0 0 0 0 0 0 0 3 $1,704

2.07 9901723-13 Pipe Mount, Universal, 4.5" x 63" $838 0 2 2 1 1 2 0 3 0 0 2 0 13 $10,894

2.08 9901448-00 Tripod Mount, 4.5 OD x 96", (Requires roof sled) $1,724 2 1 1 1 1 1 2 1 10 $17,240

2.09 9901448-01 Non-Penetrating Roof Sled for Tripod Mount $1,773 0 2 0 1 1 1 0 0 1 1 2 1 10 $17,730

2.10 9901448-02 Rubber Mat, 1/2"x 18"x 48" $44 0 12 0 6 6 6 0 0 6 6 12 6 60 $2,640 11 GHz WG

2.11 9900941-00 E105, Elliptical Waveguide, 10.5-11.7 GHz - per foot $13 170 170 $2,210

2.12 9901878-00 C90-105FG, Elliptical Waveguide Connector, E105 $312 2 2 $624

2.13 9901878-01 PW-C090, Pressure Window, E105 $32 1 1 $32

2.14 9900942-00 HOIST1-105L, Hoisting Grip, E105 $31 1 1 $31

2.15 GKIT-60-105, Standard Grounding Kit, E105 $25 3 3 $75

2.16 9900945-00 CLAMP-105, Butterfly Hangers, Kit of 10, E105 $21 5 5 $105

2.17 9901878-07 Angle Adapter, 3/8" tapped hole, Stainless (ten) $68 6 6 $408

2.18 9900827-00 3/8" x 1" Bolt Hardware Kit (ten per kit) $12 6 6 $72

2.19 9901017-00 3/8" x 12" Threaded Rod & Hardware (five per kit) $48 2 2 $96

2.20 9901118-00 BOOT4-105, Waveguide Boot Assembly, E105 $44 1 1 $44 18 GHz WG

2.21 9900994-00 Waveguide, EW180, Standard $19 175 175 $3,325

2.22 DS1180SC Fixed Tuned ConnectorConnector, EW180 $442 2 2 $884

2.23 DS55000A42 Pressure Window Assy, WR42 $120 1 1 $120

2.24 990135-09 Hoist Grip, Elliptical WG, EW180 $24 1 1 $24

2.25 DS2410881 2-Hole Ground Kit, EW180 $45 3 3 $135

2.26 9900997-00 Hanger, Butterfly, EW180, Ten per kit $39 5 5 $195

2.27 9900843-00 Angle Adapter, 5/16" tapped hole, for coax, ten per kit $73 6 6 $438

2.28 9900845-00 Hardware Kit for Angle Adapter 9900843-00 - inclds bolts & hardware $53 6 6 $318

2.29 9901741-00 Boot Assy, 4", EW180 Elliptical Waveguide $91 2 2 $182

2.30 9901792-00 Flex Waveguide, 48",UG-595/U,18 & 23GHz $574 1 1 $574 Dehydrators

2.31 9901723-25 Eupen, 0281401, Dehydrator, 48V, ETH/SNMP $5,567 1 1 1 3 $16,701

2.32 990034-09 Gas Distribution Manifold (w gauges), 2-port w/ 25' tube per port $385 1 0 0 0 0 1 1 0 0 0 0 0 3 $1,155 LDF2-50 Coax

2.33 9900641-00 RG8 A/U Cable (LMR-400) -per Foot $2 500 500 150 150 150 300 1750 $3,500

2.34 9900642-00 N-type connector , straight, for IDU/ODU cable LMR 400 $21 8 8 8 8 4 8 44 $924

2.35 9901414-00 TNC-type connector - LMR 400, Right Angle $33 2 2 2 2 1 2 11 $363

2.36 9900398-00 In Line N-Connector Surge Suppressor (indoor, SPU side) $119 2 2 2 2 1 2 11 $1,309

2.37 9900398-01 In Line N-Connector Surge Suppressor (outdoor, ODU side) $115 2 2 2 2 1 2 11 $1,265

2.38 9900832-00 Commscope, 223158-4, Grounding Kit for 1/4" & 3/8" coaxial cable $43 6 6 6 6 3 6 33 $1,419

2.39 9900842-00 $35 0 17 17 5 5 5 0 0 0 0 10 0 59 $2,065

2.40 9900843-00 $73 0 17 17 5 5 5 0 0 0 0 10 0 59 $4,307

2.41 9900845-00 Commscope, 252028-10KT-P, Double Stack Hardware $53 0 17 17 5 5 5 0 0 0 0 10 0 59 $3,127

2.42 9900840-00 Commscope, SEC-638, 4" Cable Boot, 6 3/8"- holes $77 1 1 1 1 1 1 6 $462

2.43 9900841-00 Commscope, L2SGRIP, Hoisting Grip for LDF2-50 $31 2 2 2 2 1 2 11 $341 Antenna System Total: $122,410
9901878-02
Commscope, 912MCLICK Miniature Click-on Hangers for LDF2-50 Foam Heliax Coax Cable (Kit of 10) Commscope, 252026-10KT-P, Angle Adapters Kits for Miniature Click-on Hangers (Kit of 10)
4000 Greenbriar Stafford, TX 77477 Customer: City of West Covina - NASPO ValuePoint Master Agreement Number 00318 Ph.: 281-263-6500; Fx: 281-263-6406 Contact: William Trujillo Sales Contact: Itai Farchi Location: West Covina, CA
System Engineer: SLR3 Freight Terms FOB
Quote: IF20812-50 Validity: 90 Days
Date: 11/21/2022 Delivery: 90-120 Days ARO w/Freqs
Currency: US Dollars Payment Terms: Per Contract

3.00 DC Power System

3.01 9901822-00 Eltek, CTOS0201.001, Flatpack S, 2 Rectifier Unit, -48 VDC $2,261 1 1 1 1 1 1 1 1 8 $18,088

3.02 9901822-01 Eltek, 241122.105, FPS, Rectifier, 1000W (Spare) $598 1 $598 DC Power System Total: $18,686

4.00 Battery System

4.01 9901833-00 NorthStar, 4xNSB60FT, Battery, 48V, 40AH $1,542 1 1 1 1 1 1 1 7 $10,794

4.02 9901833-01 NorthStar, 4xNSB60FT, Battery, 48V, 60AH $2,268 1 1 $2,268

4.03 9901854-03 RM, 3200-T16230-11, 23" Deep Battery Tray $355 1 1 1 1 1 1 1 0 0 1 0 8 $2,840 Battery System Total: $15,902

5.00 HPE Switches

5.01 JL660A HPE Aruba 6300M - switch - 24 ports $21,328 2 1 1 1 5 $106,640

5.02 JL659A HPE Aruba 6300M - switch - 48 ports $24,497 1 1 2 $48,994 DC Power System Total: $155,634

6.00 SPARCS SNMP Based Network Management

6.01 8708270-00 Kit, SPARCS EMS, Unlimited Remote, 10 Pollers (Software Only) $17,331 1 1 $17,331

6.02 9901998-00 Dell PowerEdge R440 Rack Server + Win Server 2019 $6,427 1 1 $6,427

6.03 9901998-01 19" Rack Console w/ Cables $1,348 1 1 $1,348

6.04 DSDELL7220 Latitude 7220 Rugged Extreme Tablet $2,890 2 2 $5,780

6.05 9999-SETUP MNI assisted set-up $1,850 1 1 $1,850

6.06 CONCESSION Management Concession on SPARCS NMS ($5,800) 1 ($5,800) NMS Total: $26,936

7.00 Spares

7.01 638-E11XXXX 11 GHz Ultra High Power ODU $7,121 4 $28,484

7.02 636-H18XXXX 18 GHz High Power ODU $4,354 2 $8,708

7.03 8209345-18 Chnl Unit, No Fuse, No µBus, No Data Card, 128 MB $5,468 2 $10,936 Spares Total: $48,128

8.00 Services

8.01 PATH SURVEY Path and Site Survey $53,900 1 $53,900

8.02 FREQ COORD Frequency Coordination & FCC Licensing Assistance $19,000 1 $19,000

8.03 FACTINT Factory Integration & Test $4,500 1 $4,500

8.04 INSTALL Install, Test & Optimize Equipment Quoted $371,250 1 $371,250

8.05 PROGRAM MGMT Program Management $34,080 1 $34,080

8.06 FACTSTAG $10,300 1$10,300

8.07 TRAINING Proteus MX Training at Customer Location for up to 10 Students $12,713 1 $12,713 Services Total: $505,743
Customer Witnessed Acceptance Testing in Stafford, TX (including travel and accommodations expenses for two engineers)
4000 Greenbriar Stafford, TX 77477 Customer: City of West Covina - NASPO ValuePoint Master Agreement Number 00318 Ph.: 281-263-6500; Fx: 281-263-6406 Contact: William Trujillo Sales Contact: Itai Farchi Location: West Covina, CA
System Engineer: SLR3 Freight Terms FOB
Quote: IF20812-50 Validity: 90 Days
Date: 11/21/2022 Delivery: 90-120 Days ARO w/Freqs
Currency: US Dollars Payment Terms: Per Contract

9.00 BRONZE LSS (Warranty, Network Health Check, Business Day Phone Support 8 AM - 5 PM CST)

9.01 BRONZELSS1 BRONZE LSS Year 1 Included 1 Included

9.02 BRONZELSS2 BRONZE LSS Year 2 Included 1 Included

9.03 BRONZELSS3 BRONZE LSS Year 3 $9,961 1 $9,961

9.04 BRONZELSS4 $10,559 $0

9.05 BRONZELSS5 $11,192 $0

9.06 CONCESSION Management Concession on LSS ($9,961) 1 ($9,961) Extended Warranty Total: $0

10.00 Freight Freight City of West Covina, CA $33,584 1 $33,584 Sub Total: $1,330,182
NASPO FEE Included
One Time Management Concession ($312,593)
Grand Total: $1,017,589
Notes: All other terms and conditions as per Microwave Networks Inc. (MNI) Standard Terms and Conditions of Trade.

Pricing shown is contingent upon purchase of entire quoted bill of materials and services.

Additional charges may be applied if a particular component, brand, service, or installation partner is required by the customer.

Final antenna type is subject to change based on PCN results.

Legacy and EOL equipment availability is limited and requirements for such may be filled by refurbished equipment on a case-by-case basis per customer approval.

Quote validity as shown on the quote may change due to factors that are outside of MNIs control such as delays and/or cost increases due to challenges within the global supply chain.

MNI will make best effort to keep the original terms but may be forced to update them. Any needed adjustments will be communicated to customer immediately.

Change orders are subject to price increase.

Customer is responsible for receiving, inspecting, and taking a detailed inventory of any shipments made against a valid purchase order.

Microwave Networks manufactured equipment is covered by 2 years warranty after shipment, per Microwave Networks' Standard Warranty.

Installation quote is based on preliminary path information and is subject to change once path and site surveys have been finalized.

Installation quote assumes site readiness. De-installation, removal, and disposal of any existing equipment is the responsibility of the customer unless quoted specifically by Microwave Networks Inc.

Warranty on installation workmanship is 1 year from date of customer acceptance.

BRONZE LSS Year 4- Optional
BRONZE LSS Year 5- Optional
Microwave Networks reserves the right to replace 3rd party products with alternative equipment of similar or superior function and quality.Microwave Networks reserves the right to replace 3rd party products with alternative equipment of similar or superior function and quality.

Warranty on all 3rd party products is the original manufacturer's warranty or 1 year.Warranty on all 3rd party products is the original manufacturer's warranty or 1 year.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 6 of 14 ends

Scope of Work (SOW): Installation
Customer: Date: 11/21/2022
Quote #: IF20812-50 Revision:

Order #: TBD Salesperson: Itai F.

Equipment: Proteus MX 11 GHz, 18 GHz, UMX Program Mgr.: TBD Location: West Covina, CA Customer Rep.: William Trujillo GENERAL REQUIREMENTS:

City of West Covina - NASPO
ValuePoint Master
Agreement Number 00318
This Scope of Work (SOW) details Microwave Networks Incorporated (MNI) and Customer responsibilities and tasks to be performed for the installation and commissioning of of the equipment in the attached list.

Pricing and implementation are based on using a Microwave Networks Incorporated (MNI) selected non union work crew. MNI intends to utilize this crew in all locations and for all tasks. The requirements and tasks listed below are considered standard.

The MNI Program Manager (PM) will act as coordinator between the customer and the MNI Installation Supervisor. All requests or needs with regards to the implementation should be directed to the MNI Program Manager. To avoid confusion, the customer is asked to identify to the MNI Program Manager, in writing, all personnel who may authorize changes and perform site acceptance. This list is to be submitted to MNI prior to the start of installation.

Installation work performed by MNI or its authorized sub-contractors will conform to industry guidelines and will utilize quality materials from selected qualified suppliers. All special requirements are to be submitted in writing to the MNI Program Manager prior to the start of installation.

Unless otherwise stated in this SOW, the Customer will furnish equipment receiving, storage and staging space at the site locations. Customer will provide a staging area and secured room for MNI personnel to store documents, test equipment, and other necessary items required for the installation.

No changes to the Scope of Work (SOW) will be authorized unless agreed upon by the customer project coordinator or authorized representative and the Microwave Networks Program Manager. Changes to the SOW will be documented in writing by MNI. If the change(s) affect the sub-contractor, a request for quotation will be issued. Upon determination of cost and schedule impact, a Project Change Order Authorization (PCOA) detailing the requested changes will be forwarded to the Customer's Project Coordinator or authorized representative for signature. No changes will be performed until customer authorization is obtained.

Additional labor to this SOW will be quoted, per occurrence. Delays, as defined in the contractual terms and conditions, may be billed.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 7 of 14 ends

The customer will provide adequate & timely access to all sites.

System acceptance will be based on the Acceptance Test Procedure (ATP).

GENERAL ASSUMPTIONS
All sites are accessible by 2-wheel drive vehicles.

MNI will submit the SOW, which includes the project timeline (sequence of installation tasks with completion dates); to the Customer for approval at least two weeks prior to the scheduled start for installation. The customer is required to sign and return the SOW at least one week prior to the scheduled start date for installation to the MNI Program Manager. Failure to return the approved SOW could cause MNI to delay the start of installation until approval is obtained.

Site work will be performed in a progressive and contiguous manner without work stoppage due to non-MNI related tasks. All additional mobilizations, beyond the initial one, that are not directly caused by MNI, its contractors or MNI delivered equipment, will require a Project Change Authorization (PCOA) generated by the MNI Program Manager and a Customer purchase order prior to the additional mobilizations.

Relocation of existing equipment, unless otherwise specified, will be the responsibility of the customer and is to be completed before installation work commences by MNI or their authorized personnel. Relocation of existing equipment, sites and/or paths is not included in this SOW.

All superstructure, Main Station Grounding, and required cable rack are assumed to be existing or to be installed by others.

Inspection of the site and verification of the installation design will be performed on initial entry to the site by MNI personnel or MNI’s authorized subcontractor for engineering compliance.

General site clean up will be performed by MNI installers, on a daily basis with the trash neatly stacked for removal by the customer or placed in a customer provided receptacle.

Traffic activation of a hop, link or system prior to completion of final testing and system acceptance will constitute BENEFICIAL USE and ACCEPTANCE of the affected portion.

Vendor equipment such as MUX, DSX panels and Channel banks will be integrated at the factory. All intra rack wiring will be installed at that time.

The customer will be responsible for all required licensing and permits unless otherwise directed by the terms and conditions of the contract.

Sites will have adequate space for the new equipment and suitable temperature control and lighting where work is to be performed or materials stored.

Existing towers are sized properly to support the new antenna systems. No tower analysis is included unless specifically detailed in this SOW.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 8 of 14 ends

SPECIFIC REQUIREMENTS:

Function MNI Customer

ENGINEERING
Perform Transmission and System Engineering.

Perform Path Survey.

Perform Frequency Coordination and file PCN.

Prepare Frequency Coordination Applications.

TRANSPORTATION / STORAGE

SITE PREPARATION
Provide Ground Bar.

Install Ground Bar.

TOWERS
Furnish and install all towers.

Furnish and install antenna Pipe Mount(s).

Furnish and install antenna Ice Shield(s).

Furnish and install Waveguide Bridge.

Furnish and install Waveguide Messenger.

Furnish building and plot plan drawings and directions to the sites, if available prior to the commencement of Path survey.

Furnish floor plans and office drawings of existing sites, Showing new equipment locations, term block & fuse panel assignments, etc.

Provide T1 channel assignments and dropping requirements at each location.

Furnish one complete set of installation specifications and measurements for the proposed equipment ATP.

Provide transportation for equipment and materials from MNI factory to the final destination. - Freight charges per terms of Purchase Order.

Deliver all proposed equipment to the site locations from the local Customer warehouse and inventory for discrepancies.

Furnish all site improvements (fences, roads, grading, tree removal, etc.).

Access roads to all work areas of each site shall be suitable and accessible to concrete trucks, truck-trailers, and all other construction equipment.

Provide suitable openings, channels, or ducts for cables and conductors for routing from floor-to-floor and from room-to-room.

Determine structural capabilities of all towers and/or antenna mounting structures and perform all Structural modifications required to support, mount and adapt the proposed antennas.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 9 of 14 ends

SPECIFIC REQUIREMENTS:

Function MNI Customer

ANTENNAS / TRANSMISSION LINE
Install all antenna and transmission line.

Install Wall Feed-Thru’s for coax/wave guide Transmission line.

POWER & GROUND
Provide AC power and breakers as required.

Install batteries and chargers as per quote.

Label DC breakers / fuses and newly installed wiring.

RADIO EQUIPMENT
Install cable and test all radio and auxiliary equipment proposed.

CHANNEL BANKS
Channelization Engineering, develop MUX plan.

Install channel bank equipment.

Furnish and install VF wiring from channel banks to D66 blocks.

ORDER WIRE AND ALARM
Install and test Order Wire.

Verify alarm system database is functional.

Provide ready access (within 50 feet (15 meters) of proposed Equipment locations) to a low resistance ground at each location.

Furnish and install adequate AC receptacle within 6 feet (2 meters) of the battery charger rack.

Furnish and install DC Power and Ground wiring to MNI provided racks per specifications.

Install DSX panel as a point of demarcation for DS1s. Panel will be installed within 30 feet (10 meters) of the radio.

Furnish and install DS1 cross connections from DSX panel to buyer's Channel Banks.

Furnish jumper wire and install cross connections on the distribution frame to interconnect with the buyer’s equipment.

Align multiplex /channel bank. (Options, levels, strapping, frequencies, etc.)
Install and test Alarm master, install and test remotes and control wiring from the radio equipment at each site.

Furnish & Install D66 block or similar and connect to the alarm remote, to terminate alarms at each site.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 10 of 14 ends

SPECIFIC REQUIREMENTS:

Function MNI Customer

TESTING/MISCELLANEOUS
Optimize and test system to MNI Acceptance Test Procedure (ATP).

Record test data for inclusion in the "as built" Documentation.

DOCUMENTATION
Provide complete set of Test Equipment consisting of; Digital Multi-Meter, BER Test Set (capable of the required data rates used in the system),VT100 terminal.

Coordinate system test and alignment with the Customer. Such testing will only include acceptability of MNI installed equipment.

Prepare, submit and file, if applicable, all necessary environmental impact data.

Furnish one complete set of MNI Operation and Maintenance manuals with drawings for each rack.

Provide one complete set of vendor provided Operation and Maintenance literature with drawings for each location.

Sign a project completion notice upon completion of the activities detailed in this Scope of Work. The project completion notice may apply to the project on a per hop or per system basis, as mutually agreed upon by MNI and the Customer.

Prepare and submit a complete documentation package of equipment as installed and accepted (As Builts), to the customer three (3) weeks after system acceptance.

Confidential
4000 Greenbriar, Stafford, Texas 77477 (281) 263-6500

Page 11 of 14 ends

Additional or unusual requirements:
1) Quote assumes all towers have climbing facilities and waveguide ladders with open slots. 2) Quote assumes any water towers have antenna mounting structures and waveguide ladders. 3) Quote assumes all towers have tie back facilities.
4) Any cranes or lifts required will be billed as a change. 5) Any re-routing or moving of existing equipment will be billed as a change. 6) Any required painting or welding will be provided and completed by others. 7) Assumes there are existing entry ports and grounding system. 8) Assumes all structures passed structural analysis for new antennas. 9) Rack locations to be provided by the end customer.
10) If remobilization is required, additional charges will apply. 11) Quoted prices are based on a ten (10) hour work day seven days per week.

Signed: Date:

MNI Representative
Signed: Date:

Customer Representative
(e.g. all work performed after hours, must use union personnel, pre-installed staging and testing, 30 day operational testing, etc.)
It is agreed that this Scope of Work (SOW) is correct and complete for the responsibilities described above. It is further agreed that this SOW supercedes all previous agreements, proposals and discussions.

STANDARD TERMS AND CONDITIONS OF SALE
An authorization to return products under this warranty must be obtained from a MNI representative prior to making shipment to MNI’s service location, and all returns shall be shipped freight pre-paid.

SECTION 1 - GENERAL: All references to MNI herein shall mean Microwave Networks Incorporated, and all references to Buyer herein shall mean the customer named in a contract, purchase order, quotation, proposal, or other agreement between the parties. All quotations from MNI shall be considered solicitations of offers. All orders placed by Buyer shall be considered offers which shall be deemed accepted upon notice thereof from MNI. Buyer will provide MNI with a complete written authorization or purchase order (with frequencies and all other technical specifications required to manufacture the equipment to completion), containing necessary information, such as site name, type and quantity of radios, requested delivery date and delivery instructions. Notwithstanding any terms or conditions which may be included in Buyer's purchase order or other communication, MNI’s acceptance is conditional upon Buyer's assent to the terms and conditions set forth herein or in any other binding contract or agreement between the parties incorporating these terms and conditions. MNI’s failure to object to any term or condition contained in Buyer's purchase order or other communication shall not be deemed to be acceptance of such term or condition. In the absence of Buyer's written acceptance of these terms, acceptance of or payment for purchases hereunder shall constitute an acceptance of these terms and conditions. The terms and conditions set forth herein shall be deemed incorporated (as though set forth in full) into any agreement of sale entered into between MNI and Buyer unless otherwise modified in writing. MNI quotations are not firm unless expressly indicated, with a specific period of time during which the quotation will remain firm on the face thereof. MNI reserves the right, without any increase in price, to modify the design and specifications of equipment designed by MNI, provided that the modification does not adversely affect the original performance specifications as specified by MNI or as requested by the Buyer. Buyer shall not assign any interest in the contents of this quotation without the prior written consent of MNI. All orders are subject to prior credit approval. Stenographic, typographic and clerical errors are subject to correction. All headings contained in these terms and conditions are for reference purposes only and shall not in any way affect the meaning or interpretation of these terms and conditions.SECTION 1 - GENERAL: All references to MNI herein shall mean Microwave Networks Incorporated, and all references to Buyer herein shall mean the customer named in a contract, purchase order, quotation, proposal, or other agreement between the parties. All quotations from MNI shall be considered solicitations of offers. All orders placed by Buyer shall be considered offers which shall be deemed accepted upon notice thereof from MNI. Buyer will provide MNI with a complete written authorization or purchase order (with frequencies and all other technical specifications required to manufacture the equipment to completion), containing necessary information, such as site name, type and quantity of radios, requested delivery date and delivery instructions. Notwithstanding any terms or conditions which may be included in Buyer's purchase order or other communication, MNI’s acceptance is conditional upon Buyer's assent to the terms and conditions set forth herein or in any other binding contract or agreement between the parties incorporating these terms and conditions.

MNI’s failure to object to any term or condition contained in Buyer's purchase order or other communication shall not be deemed to be acceptance of such term or condition. In the absence of Buyer's written acceptance of these terms, acceptance of or payment for purchases hereunder shall constitute an acceptance of these terms and conditions. The terms and conditions set forth herein shall be deemed incorporated (as though set forth in full) into any agreement of sale entered into between MNI and Buyer unless otherwise modified in writing. MNI quotations are not firm unless expressly indicated, with a specific period of time during which the quotation will remain firm on the face thereof. MNI reserves the right, without any increase in price, to modify the design and specifications of equipment designed by MNI, provided that the modification does not adversely affect the original performance specifications as specified by MNI or as requested by the Buyer. Buyer shall not assign any interest in the contents of this quotation without the prior written consent of MNI. All orders are subject to prior credit approval. Stenographic, typographic and clerical errors are subject to correction. All headings contained in these terms and conditions are for reference purposes only and shall not in any way affect the meaning or interpretation of these terms and conditions.

SECTION 2 - SHIPPING AND HANDLING: Unless otherwise specified by Buyer and agreed to by MNI in writing, shipping and handling charges (e.g. Air, Parcel Post, Common Carrier) will be included on the applicable invoice as a separately priced item to be paid by the Buyer. Freight charges are subject to frequent change and in consideration of MNI’s agreement to hold to the charges stated, Buyer agrees to pay such amount without regard to the actual charges applicable at the time of shipment. It is understood that MNI will not provide the Buyer with any copies of carrier freight bills. All packaging and packing shall be in accordance with sound commercial practice. Special export packaging, packing or crating, as required, will be quoted separately.SECTION 2 - SHIPPING AND HANDLING:

Unless otherwise specified by Buyer and agreed to by MNI in writing, shipping and handling charges (e.g. Air, Parcel Post, Common Carrier) will be included on the applicable invoice as a separately priced item to be paid by the Buyer. Freight charges are subject to frequent change and in consideration of MNI’s agreement to hold to the charges stated, Buyer agrees to pay such amount without regard to the actual charges applicable at the time of shipment. It is understood that MNI will not provide the Buyer with any copies of carrier freight bills. All packaging and packing shall be in accordance with sound commercial practice. Special export packaging, packing or crating, as required, will be quoted separately.

SECTION 3 - DELIVERY AND TITLE: Unless otherwise specified, all deliveries and risk of loss shall be determined in accordance with the FOB shipping point for domestic shipments and FCA Stafford, Texas for international shipments in accordance with Incoterms 2000. Shipping or delivery dates are best estimates only and subject to change based on MNI commitments at the time Buyer's purchase order is received and accepted. MNI reserves the right to make deliveries in installments, and contracts or other agreements between the parties shall be severable as to such installments. A delay in delivery or default of any installment shall not relieve Buyer of its obligation to accept and pay for remaining deliveries. Claims for shipment shortage or damage shall be deemed waived unless presented to MNI in writing within ten (10) days of delivery of each shipment, and failure to make any claim within ten (10) days after receipt of each product covered hereunder shall constitute an irrevocable acceptance thereof. Title to the products shall pass to Buyer upon receipt of full payment by MNI for such goods, except that in any jurisdiction in which such retention of title is not recognized, MNI shall be deemed to have retained a purchase money security interest and right of possession in the products until Buyer makes full payment. Buyer's rights to enforce such purchase money security interest and its right of possession shall be non-exclusive remedies. Buyer agrees to cooperate as necessary to assist MNI in perfecting such security interest, upon request.SECTION 3 - DELIVERY AND TITLE: Unless otherwise specified, all deliveries and risk of loss shall be determined in accordance with the FOB shipping point for domestic shipments and FCA Stafford, Texas for international shipments in accordance with Incoterms 2000. Shipping or delivery dates are best estimates only and subject to change based on MNI commitments at the time Buyer's purchase order is received and accepted. MNI reserves the right to make deliveries in installments, and contracts or other agreements between the parties shall be severable as to such installments. A delay in delivery or default of any installment shall not relieve Buyer of its obligation to accept and pay for remaining deliveries. Claims for shipment shortage or damage shall be deemed waived unless presented to MNI in writing within ten (10) days of delivery of each shipment, and failure to make any claim within ten (10) days after receipt of each product covered hereunder shall constitute an irrevocable acceptance thereof. Title to the products shall pass to Buyer upon receipt of full payment by MNI for such goods, except that in any jurisdiction in which such retention of title is not recognized, MNI shall be deemed to have retained a purchase money security interest and right of possession in the products until Buyer makes full payment. Buyer's rights to enforce such purchase money security interest and its right of possession shall be non-exclusive remedies. Buyer agrees to cooperate as necessary to assist MNI in perfecting such security interest, upon request.

Service completion dates indicated on quotations are subject to review and revision on the basis of MNI commitments at the time Buyer’s order is received and accepted. All service completion dates are subject to credit approval, are approximate until confirmed in writing by MNI, and are based upon receipt of timely, accurate, and complete instructions and information from the Buyer.

SECTION 4 - ACCESS: Buyer hereby grants access to MNI to all equipment, sites, premises, and other areas where work is to be performed under these terms and conditions. MNI will make all reasonable efforts to comply with Buyer’s standard rules and regulations for access, a copy of which will be furnished to MNI by Buyer upon the submission of any order to be performed under these terms and conditions. Buyer acknowledges that MNI may use non-union personnel to perform work. MNI will make all reasonable efforts to observe Buyer’s procedures in cooperation with union personnel; however, Buyer agrees to indemnify and hold MNI harmless from all costs associated with the compliance of union work rules or union activities which may interfere with MNI’s performance requirements.SECTION 4 - ACCESS: Buyer hereby grants access to MNI to all equipment, sites, premises, and other areas where work is to be performed under these terms and conditions. MNI will make all reasonable efforts to comply with Buyer’s standard rules and regulations for access, a copy of which will be furnished to MNI by Buyer upon the submission of any order to be performed under these terms and conditions. Buyer acknowledges that MNI may use non-union personnel to perform work. MNI will make all reasonable efforts to observe Buyer’s procedures in cooperation with union personnel; however, Buyer agrees to indemnify and hold MNI harmless from all costs associated with the compliance of union work rules or union activities which may interfere with MNI’s performance requirements.

SECTION 5 - COMMERCIAL WARRANTY: MNI manufactured products are warranted to be free from defect in material and workmanship under normal use and service for a period of two (2) years from the date of shipment. In the event of a defect during the warranty period, Buyer will return the defective item to the MNI depot repair facility for repair or replacement. Repair at MNI’s option may include the replacement of parts or equipment and all replaced parts or equipment shall be the property of MNI. Parts or equipment replaced during the warranty period are warranted for the remainder of the original applicable warranty period or ninety (90) days, whichever is greater. This express warranty is extended by MNI to the original Buyer for commercial, industrial or governmental use. Such action on the part of MNI shall be the full extent of MNI’s liability and Buyer's exclusive remedy for breach of warranty. Expenses of Buyer such as travel expenses are not covered by this warranty.SECTION 5 - COMMERCIAL WARRANTY: MNI manufactured products are warranted to be free from defect in material and workmanship under normal use and service for a period of two (2) years from the date of shipment. In the event of a defect during the warranty period, Buyer will return the defective item to the MNI depot repair facility for repair or replacement. Repair at MNI’s option may include the replacement of parts or equipment and all replaced parts or equipment shall be the property of MNI. Parts or equipment replaced during the warranty period are warranted for the remainder of the original applicable warranty period or ninety (90) days, whichever is greater. This express warranty is extended by MNI to the original Buyer for commercial, industrial or governmental use. Such action on the part of MNI shall be the full extent of MNI’s liability and Buyer's exclusive remedy for breach of warranty. Expenses of Buyer such as travel expenses are not covered by this warranty.

This warranty extends only to products manufactured by MNI, and it is expressly conditioned upon the equipment having been installed in accordance with the installation practices accepted by the telecommunications industry, the standard installation and configuration practices recommended by MNI, and the equipment having been maintained in accordance with MNI recommended standard maintenance practices. Vendor products and other equipment not manufactured by MNI are excluded, but carry their own separate limited warranties.

This warranty shall automatically terminate if the product is used in other than its normal and customary manner, has been subject to misuse, accident, neglect, or damage, is improperly disassembled or has improper alterations or repairs, or if nonconforming parts are used in the product, unless done by a service facility authorized by MNI to perform warranty service. The warranty for Network Management Systems (NMS) shall automatically terminate if software is altered, added, or removed from the platform without prior MNI approval. NMS provided by MNI do not include virus protection software and this warranty does not cover damages caused by computer viruses.

MNI warrants the operation of its equipment only with respect to its published specifications and use conditions. This warranty shall not cover any damages caused by Acts of God including, but not limited to, flood, lightning, seismic activity; and events of Force Majeure, such as fire, explosion, war, civil disturbance et al.MNI warrants the operation of its equipment only with respect to its published specifications and use conditions. This warranty shall not cover any damages caused by Acts of God including, but not limited to, flood, lightning, seismic activity; and events of Force Majeure, such as fire, explosion, war, civil disturbance et al.

THIS MNI WARRANTY IS GIVEN IN LIEU OF ALL OTHER WARRANTIES, EITHER EXPRESSED OR IMPLIED, WHICH ARE SPECIFICALLY EXCLUDED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

In the event that MNI provides services only, MNI warrants the performance and specifications of such services but does not warrant that such services performed will fulfill the total system requirement of the Buyer.

SECTION 6 - PATH ENGINEERING SERVICES WARRANTY
MNI warrants that the installed radio communication path will conform to Customer’s multipath performance reliability objectives when MNI has performed the path survey, recommended the path design, and MNI has implemented such recommendations. This warranty is for a period of 12 months from the date of the survey or one year from the date of installation of the microwave path, whichever expires first. All MNI field activities and path propagation analysis will utilize current hardware, software, engineering practices and judgment with the goal of meeting normal Path Loss, as defined in TIA/EIA Standard RS-252-A. MNI is not responsible for paths that it does not survey, nor for changes in path design beyond those specifically allowed in the path survey report or in writing after the field survey is completed, including but not limited to changes in path design; movement in site locations; buildings or other structures built on-path after date of survey; disturbances of the terrain which may cause blockages or reflections; frequency interferences from 3rd party sources including those caused by Wifi 6E; or change of available antenna mounting space on tower. Any one of these changes will nullify this warranty, and the Customer shall in such case bear the total cost of determining that such change was the cause. MNI will not be responsible for degraded path performance when such degradation is due to such anomalous propagation conditions as:

Long-term loss of fade margin due to antenna decoupling misalignment caused by widely-varying k-factor changes; Long-term loss of fade margin due to Atmospheric Boundary Layering (“ABL”) causing wave front defocusing (beam spreading), signal entrapment (blackout fading), ducting, and other such occurrences. Excessive rain outage rates beyond the published crane and/or chart data used in the calculation; Degradation resulting from certain types of multipath interference attributed to unidentifiable off-path terrain features or structures; Any other technological or atmospheric condition not foreseeable through the exercise of prudent engineering knowledge and judgment. Additionally, MNI will not be responsible for degraded path performance when Non-MNI radio equipment is installed on a surveyed path; MNI radio equipment is not installed by MNI;Existing antenna and waveguide system is used without test and inspection performed by MNI. MNI designs the microwave path based upon best engineering practices and standards common to the industry, and it selects a transmission configuration based upon the most economical method for meeting the path performance objectives. When path loss or reliability objectives are not achieved, exclusive of anomalous propagation or path changes as described above, then Customer’s sole remedy, and MNI’ exclusive liability in connection with path engineering, shall be that MNI will provide incremental labor and material to optimize the antenna system beyond what would have been required during initial installation. Where anomalous propagation is suspected in an installed microwave path, MNI will work with the Customer to obtain reasonable evidence that such condition exists. The total retroactive costs for such study shall be the responsibility of the Customer with MNI providing in-office engineering support. The cost of relocating towers, antennas, passive reflectors or other measures required to remedy this type of problem shall solely be the responsibility of the Customer
SECTION 6 - PATH ENGINEERING SERVICES WARRANTY
MNI warrants that the installed radio communication path will conform to Customer’s multipath performance reliability objectives when MNI has performed the path survey, recommended the path design, and MNI has implemented such recommendations. This warranty is for a period of 12 months from the date of the survey or one year from the date of installation of the microwave path, whichever expires first. All MNI field activities and path propagation analysis will utilize current hardware, software, engineering practices and judgment with the goal of meeting normal Path Loss, as defined in TIA/EIA Standard RS-252-A. MNI is not responsible for paths that it does not survey, nor for changes in path design beyond those specifically allowed in the path survey report or in writing after the field survey is completed, including but not limited to changes in path design; movement in site locations; buildings or other structures built on-path after date of survey; disturbances of the terrain which may cause blockages or reflections; frequency interferences from 3rd party sources including those caused by Wifi 6E; or change of available antenna mounting space on tower. Any one of these changes will nullify this warranty, and the Customer shall in such case bear the total cost of determining that such change was the cause. MNI will not be responsible for degraded path performance when such degradation is due to such anomalous propagation conditions as:

Long-term loss of fade margin due to antenna decoupling misalignment caused by widely-varying k-factor changes; Long-term loss of fade margin due to Atmospheric Boundary Layering (“ABL”) causing wave front defocusing (beam spreading), signal entrapment (blackout fading), ducting, and other such occurrences. Excessive rain outage rates beyond the published crane and/or chart data used in the calculation; Degradation resulting from certain types of multipath interference attributed to unidentifiable off-path terrain features or structures; Any other technological or atmospheric condition not foreseeable through the exercise of prudent engineering knowledge and judgment. Additionally, MNI will not be responsible for degraded path performance when Non-MNI radio equipment is installed on a surveyed path; MNI radio equipment is not installed by MNI;Existing antenna and waveguide system is used without test and inspection performed by MNI. MNI designs the microwave path based upon best engineering practices and standards common to the industry, and it selects a transmission configuration based upon the most economical method for meeting the path performance objectives. When path loss or reliability objectives are not achieved, exclusive of anomalous propagation or path changes as described above, then Customer’s sole remedy, and MNI’ exclusive liability in connection with path engineering, shall be that MNI will provide incremental labor and material to optimize the antenna system beyond what would have been required during initial installation. Where anomalous propagation is suspected in an installed microwave path, MNI will work with the Customer to obtain reasonable evidence that such condition exists. The total retroactive costs for such study shall be the responsibility of the Customer with MNI providing in-office engineering support. The cost of relocating towers, antennas, passive reflectors or other measures required to remedy this type of problem shall solely be the responsibility of the Customer
SECTION 7 - PATENT AND COPYRIGHT INDEMNIFICATION: MNI agrees to defend, at its expense, any suits against Buyer based upon a claim that any products furnished directly infringe a United States patent, copyright, or other intellectual property right of third parties. MNI agrees to pay costs and damages finally awarded in any such suit, provided that MNI is notified promptly in writing of the suit and, at MNI’s request and at its expense, is given control of said suit and all requested assistance for defense of same. If the use or sale of any products furnished hereunder is enjoined as a result of such a suit, MNI, at its option and at no expense to Buyer, shall obtain for Buyer the right of use or sale for said product(s) or shall substitute an equivalent product reasonably acceptable to Buyer and extend this indemnity thereto, or shall accept the return of product(s) and reimburse Buyer the purchase price thereof, less a charge for reasonable wear and tear. This indemnity does not extend to any suit based upon any infringement or alleged infringement of any patent or copyright by the combination of any products furnished by MNI and other elements, nor does it extend to any products of Buyer's design or formula. The foregoing states the entire liability of MNI for patent, copyright, or other intellectual property infringement.SECTION 7 - PATENT AND COPYRIGHT INDEMNIFICATION: MNI agrees to defend, at its expense, any suits against Buyer based upon a claim that any products furnished directly infringe a United States patent, copyright, or other intellectual property right of third parties. MNI agrees to pay costs and damages finally awarded in any such suit, provided that MNI is notified promptly in writing of the suit and, at MNI’s request and at its expense, is given control of said suit and all requested assistance for defense of same. If the use or sale of any products furnished hereunder is enjoined as a result of such a suit, MNI, at its option and at no expense to Buyer, shall obtain for Buyer the right of use or sale for said product(s) or shall substitute an equivalent product reasonably acceptable to Buyer and extend this indemnity thereto, or shall accept the return of product(s) and reimburse Buyer the purchase price thereof, less a charge for reasonable wear and tear. This indemnity does not extend to any suit based upon any infringement or alleged infringement of any patent or copyright by the combination of any products furnished by MNI and other elements, nor does it extend to any products of Buyer's design or formula. The foregoing states the entire liability of MNI for patent, copyright, or other intellectual property infringement.

SECTION 8 - PAYMENT: For domestic shipments, MNI’s standard terms of sale are net thirty days of invoice date, subject to the approval of MNI. For export shipments, the standard payment terms are irrevocable Letter of Credit (in accordance with MNI Letter of Credit Guidelines) or Cash in Advance (as described below), unless MNI has, prior to its acceptance of Buyer's purchase order, approved in writing other credit arrangements. All payments, whether by Letter of Credit or Cash in Advance, shall be made in U.S. Dollars (US$) by electronic funds transfer. All orders on terms of Cash in Advance require a 25% payment upon placement of the order and the balance shall be paid prior to shipment. Exceptions to the payment terms included herein shall be subject to the prior consideration and written approval of MNI. The Buyer shall make payments in full to MNI at the address stated on the MNI invoice or as otherwise specified in writing by MNI. Overdue payments are subject to a service charge of 1½% per month or the maximum legal rate, whichever is lower. To the extent permitted by applicable law, Buyer agrees to pay any and all costs and disbursements, including reasonable attorney's fees, incurred by MNI in legal proceedings to collect overdue invoices or enforce indebtedness. Buyer agrees that any and all costs or disbursements may be added to the total invoice amount already due at time of placement with an attorney or collection agency. There is a 3% fee for any payments done via credit card.SECTION 8 - PAYMENT: For domestic shipments, MNI’s standard terms of sale are net thirty days of invoice date, subject to the approval of MNI. For export shipments, the standard payment terms are irrevocable Letter of Credit (in accordance with MNI Letter of Credit Guidelines) or Cash in Advance (as described below), unless MNI has, prior to its acceptance of Buyer's purchase order, approved in writing other credit arrangements. All payments, whether by Letter of Credit or Cash in Advance, shall be made in U.S. Dollars (US$) by electronic funds transfer. All orders on terms of Cash in Advance require a 25% payment upon placement of the order and the balance shall be paid prior to shipment. Exceptions to the payment terms included herein shall be subject to the prior consideration and written approval of MNI. The Buyer shall make payments in full to MNI at the address stated on the MNI invoice or as otherwise specified in writing by MNI. Overdue payments are subject to a service charge of 1½% per month or the maximum legal rate, whichever is lower. To the extent permitted by applicable law, Buyer agrees to pay any and all costs and disbursements, including reasonable attorney's fees, incurred by MNI in legal proceedings to collect overdue invoices or enforce indebtedness. Buyer agrees that any and all costs or disbursements may be added to the total invoice amount already due at time of placement with an attorney or collection agency. There is a 3% fee for any payments done via credit card.

SECTION 9 - TAXES: Except for the amount, if any, of tax stated in a MNI contract, quotation, proposal, or customer purchase order, or other agreement between the parties, MNI sale prices and warranty provisions are exclusive of any amount for federal, state, local, excise, sales, use, property, retailers occupation, in-country, import, VAT or similar taxes or duties. Such prices are also exclusive of all government permit fees, license fees, customs fees and similar fees levied upon delivery of the MNI products and services.

The Buyer shall be liable for all such taxes, duties and fees, regardless of whether or not the same are separately stated by MNI, and the Buyer shall pay the amount thereof to MNI or, in lieu thereof, the Buyer shall provide MNI with a properly executed tax exemption certificate acceptable to the taxing authorities prior to delivery of MNI product. If MNI is required to pay or bear the burden of any excluded tax then the Buyer shall reimburse to MNI the full amount of any such tax payment no later than ten (10) days after receipt of an invoice.

SECTION 10 - TERMINATION, CHANGES AND DELAYS: MNI shall not be liable for any delay or failure to perform due to any cause beyond its control, including, but not limited to: events of Acts of God including, but not limited to, flood, lightning, seismic activity; and events of Force Majeure such as fire, explosion, war, civil disturbances, default of any supplier; delays caused by any government or regulatory body, frequency authorization, license grant; government intervention; inability to obtain necessary labor, material, or facilities; interruptions of transportation or utilities and strikes. The delivery schedule shall be considered extended by a period of time reasonably necessary to perform after such event(s). Notwithstanding the preceding sentence, in the event MNI is unable to wholly or partially perform due to any cause beyond its control, MNI may terminate any contract without liability to Buyer. Buyer may cancel any order due to the default of MNI upon thirty (30) days prior written notice and failure to cure by MNI.

Otherwise orders may be terminated, changed or delayed by Buyer only with the specific approval of MNI and shall be subject to termination, change or delay charges which shall include compensation for specific expenses and costs related to commitments already made in connection with the order and a reasonable allowance for the cost of overhead, general and administrative expenses and profit in accordance with MNI’s standard accounting practices. Any order canceled after five (5) business days of MNI receiving a purchase order is subject to cancellation charges up to the full amount of the purchase order. Change orders may also necessitate a change in the delivery schedule or service completion date. In the event Buyer causes a delay in contract completion or delivery, MNI shall have the right to submit invoices, due and payable upon receipt, at sales value for progress to date, and Buyer shall pay the invoiced amount and all necessary storage charges and other costs incurred due to such delay.

SECTION 11 - GOVERNMENT OR IN-COUNTRY LICENSING: The Buyer is solely responsible for obtaining any licenses or other authorizations required by the FCC, Federal Aviation Administration or any other government regulatory bodies, and for complying with their rules and with the rules and regulations of any other U.S. or foreign regulatory agency, whether federal, state, local or otherwise.

Neither MNI, nor any of its employees, will be an agent or representative of the Buyer in such matters or otherwise. MNI may assist in the preparation of the license application by the Buyer; however, MNI’s warranty shall not be modified to the detriment of MNI, and MNI shall have no liability to Buyer or any third parties arising out of or relating to MNI rendering technical advice, facilities or service in connection with such assistance.

SECTION 12 - CONTROLLING LAW: This document shall be governed by the internal laws of the State of Texas, as applied to contracts. The parties hereby agree that this document shall not be governed by the United Nations Convention on Contracts for the International Sale of Goods. This document is prepared and executed in the English language only and any translation of this document into any other language shall have no effect on effectiveness of or the interpretation of this document.

SECTION 13 - LIMITATION OF LIABILITY: MNI’s TOTAL LIABILITY IS LIMITED TO THE NET PRICE OF THE PRODUCTS SOLD HEREUNDER, EXCLUDING ANY CHARGES STATED SEPARATELY FROM THE PRODUCT PRICE ON THE INVOICE. BUYER'S SOLE REMEDY FOR LIABILITY OF ANY KIND, INCLUDING NEGLIGENCE, WITH RESPECT TO THE EQUIPMENT AND DOCUMENTATION FURNISHED HEREUNDER IS TO REQUEST MNI, AT MNI’s OPTION, TO REFUND THE PURCHASE PRICE, EXCEPT THAT IN THE CASE OF A BREACH OF PRODUCT WARRANTY, THE BUYER'S SOLE REMEDY IS TO RETURN THE PRODUCT TO MNI FOR REPAIR IN ACCORDANCE WITH SECTION 5 OF THESE STANDARD TERMS AND CONDITIONS OF SALE.

NO ACTION SHALL BE BROUGHT FOR ANY BREACH OF THIS CONTRACT MORE THAN ONE YEAR AFTER THE ACCRUAL OF SUCH CAUSE OF ACTION EXCEPT FOR MONEY DUE UPON AN OPEN ACCOUNT. IN NO EVENT SHALL MNI BE LIABLE FOR INCREASED COSTS, LOSS OF PROFITS, LOSS OF GOODWILL, OR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES FOR ANY REASON.

WITH RESPECT TO SERVICES, MNI LIABILITY FOR ANY PATH SURVEY, SITE SURVEY, FIELD MEASUREMENTS, OR PATH ENGINEERING IS LIMITED TO THE RE-SURVEY, RE-MEASUREMENT, OR REENGINEERING OF THE PATH OR SITE. MNI DOES NOT WARRANTY PROPAGATION OR PATH PERFORMANCE. ALL SURVEYS ARE ACCURATE AS OF THE DATE THE SURVEY WAS CONDUCTED. MNI IS NOT

RESPONSIBLE FOR UNCONTROLLED EVENTS, SUCH AS FUTURE BUILDING OBSTRUCTIONS OR MICROWAVE PATHS IN OR NEAR THE SURVEYED PATH OR CONTROLLED SITE, WHICH COULD CAUSE BLOCKAGE OR INTERFERENCE.

SECTION 14 - WAIVER: The failure of MNI to insist, in any one or more instances, upon the performance of any of the terms, covenants or conditions herein or to exercise any right hereunder, shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant or condition, or the future exercise of such right, but the obligation of the Buyer with respect to such future performance shall continue in full force and effect.

SECTION 15 - SUBSURFACE OR STRUCTURAL CONDITIONS: The prices for any towers included in a MNI proposal are based upon normal soil conditions of E.I.A. standard RS 333 C. Should MNI ‑ ‑ encounter subsurface, structural and/or latent conditions at the site materially differing from those used in the preparation of the quotation, an equitable adjustment to the price shall be mutually agreed upon prior to installation. The Buyer is responsible for specifying tower hardware requirements. If no requirements are provided by the Buyer, MNI will provide its standard production climbing devices and no representation is made by MNI that such devices will be in compliance with OSHA’s Tower Climbing Device Specifications.

SECTION 16 - US GOVERNMENT ORDERS: The provision of Executive Order No. 11246 of September 24, 1965, as amended, regarding equal employment opportunity, and the rules and regulations issued pursuant thereto, are incorporated herein by reference. Any other US Government procurement regulations which are required to be included shall be specifically and separately agreed to in writing prior to incorporation into the final agreement of sale.

SECTION 17 - SPECIAL CONDITIONS OF QUOTATION AND SALE: Supplementary to the above terms and conditions of sale, circumstances which require quotation of special terms and conditions of sale are available from MNI (Sales and/or Customer Care Departments) relating to the following: (A) Installation services (weather, employees, normal workday, FCC construction permits, realignment of existing equipment coordination, relocation of plant and equipment); (B) Frequency coordination (Buyer provided frequencies, MNI proposed frequency plan) and path survey (Buyer path survey, MNI proposed path survey); (C) MNI provided antenna installations of Buyer (antenna pipe mount, waveguide bridge, indoor waveguide runs, accessibility to building work areas, modification to Buyer's or Owner's premises, existing towers); (D) MNI provided towers (grounding (REA), tower lighting, modification to Buyer's or Owner's premises); (E) MNI provided roof mounted towers (roof reinforcing, transmission line entry, plot terrain, site accessibility, clearing and grading, tower load, future antenna loading); (F) Construction and/or civil work; (G) Dangerous or hazardous work conditions or environment; (H) PCS or PCN relocation services and related engineering services.

SECTION 18 - PROJECT DISCLAIMERS:
• Pricing shown is contingent upon purchase of entire quoted bill of materials and services. • Additional charges may be applied if a particular component, brand, service, or installation partner is required by the customer • Microwave Networks reserves the right to replace 3rd party products with alternative equipment of similar or superior function and quality • Warranty on all 3rd party products is the original manufacturer's warranty or 1 year • Final antenna type is subject to change based on PCN results • Legacy and EOL equipment availability is limited and requirements for such may be filled by refurbished equipment on a case-by-case basis per customer approval • Quote is valid for 60 days. Price will be updated and may increase after 60 days • Change orders are subject to price increase
• Shipments may be held up to 90 days from receipt of PO due to factors outside of MNI’s control, after which warehousing and other handling fees may apply • Customer is responsible for receiving and taking a detailed inventory of any shipments made against a valid purchase order. Any claims of missing and/or damaged equipment must be submitted to MNI’s customer service department within 15 days of shipment. • Microwave Networks manufactured equipment is covered by 2 years warranty after shipment, per Microwave Networks' Standard Warranty For Proteus UMX:
• Proteus UMX is covered by 1 year warranty after shipment, per Microwave Networks' Standard Warranty. • With the use of unlicensed spectrum, any spectrum interference or resolution of that interference is not the responsibility of MNI • Throughput and path performance for shared spectrum frequency bands is not guaranteed • UMX radio is not recommended for mission critical applications due to inherent limitations with unlicensed spectrum For Full turnkey or Services Only:
• Installation quote is based on preliminary path information and is subject to change once path and site surveys have been finalized • Installation quote assumes site readiness. De-installation, removal, and disposal of any existing equipment is the responsibility of the customer unless quoted specifically by Microwave Networks Inc. • Installation is expected to commence no later than 30 days after shipment of equipment. Installation may be delayed up to 90 days after shipment of equipment due to factors outside of MNI’s control, after which additional program management and support fees may apply. • Warranty on installation workmanship is 1 year from date of customer acceptance.

For Equipment only project or projects where MNI provides only partial installation services (i.e.Broken Turnkey):
• Microwave Networks Inc. designs and implements custom turn-key solutions and strongly recommends all customers take advantage of MNI’s full turnkey services. MNI is not responsible for the workmanship of any 3rd parties selected by the customer and cannot be responsible for system turn-up and overall performance of any microwave systems not designed and installed by MNI • All installation technicians must successfully complete Microwave Networks certification training • If onsite troubleshooting is required by MNI, additional charges will apply For Lifecycle support services (Gold and Platinum):
• Advanced replacements limited up to 7% of the MNI equipment purchased and subject to availability • Interference detection services will provide notification of potential interference caused by Wi-Fi 6E. Further efforts beyond notification to resolve or mitigate the interference are subject to additional charges.
• Early pay discounts are available for multi-year commitments. Please discuss with your regional director.

SECTION 19 - COMPLETE AGREEMENT: Buyer acknowledges that Buyer has read and understands these Standard Terms and Conditions of Sale as stated, and agrees to be bound by them and that these are the complete and exclusive statement of the agreement between the parties and supersede all proposals, oral or written, and all other communications between the parties relating to the subject matter. No modification hereof shall be binding upon either party unless such modification is in writing signed by duly authorized representatives of the parties. If any part of the terms and conditions included herein is deemed contrary to, prohibited by or invalid under applicable laws or regulations, such provision shall be deemed omitted to the extent so contrary, prohibited or invalid, but the remainder shall not be invalidated and shall be given effect as far as possible.

AGENDA ITEM NO. 9

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: January 17, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF A RESOLUTION AMENDING THE FY 2022-2023 BUDGET RECOMMENDATION:

It is recommended that the City Council adopt the following resolution:

RESOLUTION NO. 2023-3 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST

COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2022 AND ENDING JUNE 30, 2023 (MID-YEAR ADJUSTMENTS) BACKGROUND:

The City Council adopted the Fiscal Year 2022-2023 budget on June 7, 2022 through the adoption of Resolution No. 2022-53. The budget covers the period from July 1, 2022 through June 30, 2023.

Amendments must periodically be made to the budget to conform to changed circumstances following its adoption.

DISCUSSION:

The proposed budget amendment includes the following:

General Fund (Fund 110) - $5,360,000
Per the City’s Fund Balance Policy, the City shall maintain a minimum unassigned fund balance of at least 17% of General Fund operating expenditures. At the end of the fiscal year, the annual excess revenue over expenditures in the City's General Fund will be automatically allocated as follows, unless the transfer is overridden by an action of City Council: 25% stays in General Fund Balance reserves, 40% is transferred to the Capital Projects Fund, 10% is transferred to the Vehicle Replacement Fund, and 25% goes to pay down Other Post Employment Benefit (OPEB) liabilities. Based on the ending balance as of June 30, 2022, $2,859,000 (approximately 40% of General Fund Balance) is recommended to be transferred to the Capital Projects Fund (No. 160), $714,000 (approximately 10%) is recommended to be transferred to the Vehicle Replacement Fund (No. 367), and $1,787,000 (approximately 25%) is recommended to be transferred to a new fund (No. 369) to set aside funding for City's OPEB liability. The last $1,787,000 (approximately 25%) is recommended to stay within the General Fund.

The City funds a PARS Pension Plan for former City Managers. The annual maintenance fees for this plan, approximately $84,000, were inadvertently left out of the FY2022-23 budget and proposed to be added. Additionally, no funding was included in the original budget for employee engagement. Employee engagement programs aim to boost workers' morale, retain talent, and create a bond between workers and the organization. Staff recommends adding $5,000 under Human Resources for these citywide initiatives.

Funding for electricity and miscellaneous maintenance repairs, including the methane alarm system, at the Sportsplex were not included in the original budget. Therefore, staff recommends adding $245,000 to accommodate these and other unanticipated operating expenditures. These increases are proposed to be offset by a decrease in transfers to the CIP fund for a net neutral impact to the General Fund.

Azusa Pedestrian & Signal Improvement Project (Fund 144) - $7,000,000 On December 23, 2022, Rep. Grace F. Napolitano voted to pass H.R. 2617, securing $48.7 million for her congressional district. Included in this bill is a $7,000,000 project for the City of West Covina – Azusa Avenue Pedestrian Handicap Accessibility & Signal Synchronization Improvement Project. Staff proposes increasing revenue and expenditures by this amount to allow staff to begin implementation of the project.

Capital Projects Reconciliation (Funds 160, 173, 170, 175) - $1,680,001 A couple items were included in the Capital Improvement Program but not included in the appropriated totals. Therefore, staff recommends increasing appropriations within these funds as originally intended: Fund 160: Project No. 23021, BKK Detention Basin ($1,000,000) and Fund 175: Project No. 23020 Parks Security Cameras & Lighting ($150,000). Additional funding is also necessary for bathroom improvements at Walmerado Park ($30,000). Funding for this is proposed to be transferred from the Del Norte PDF Fund (No. 170) to the Walmerado-Cameron PDF Fund (No. 173). The original budget included a placeholder for the Sportsplex in the amount of $99,999. Now that actual expenses have been identified for exterior renovations, staff proposes adding $500,001 to the project budget under Fund 160.

Pavement Management ProgramUpdate (Fund 160) - $90,000
In order to receive Federal funding for street rehabilitation projects, it is mandated that every mile of eligible Federal-Aid highways within the City (major arterials) be managed with a Pavement Management Program (PMP). Eligibility for the County of Los Angeles Proposition C funding also requires that a PMP be implemented and updated every three years.The PMP document presents findings and recommendations from a pavement condition survey of City’s street network including pavement condition summaries, preservation and repair activities, and projected budgets for those activities. The last comprehensive update of the City’s PMP was completed in August 2020. Staff recommends adding $90,000 to update the PMP this fiscal year out of the Capital Projects Fund (No.160).

Sewer Repairs (Fund 189) - $413,000
Emergency sewer repairs were necessary to repair a sunken storm drain manhole and pavement at the intersection of Cortez and Prospero ($50,000). Additional funding ($363,000) is also necessary to complete the Upgrades For 2700 Azusa Sewer Lift Station (Project No. 17022). Funding for these projects is available in the Sewer Maintenance Fund (No. 189).

Year End Roll-Overs (Funds 127, 153, 155, and 220) - $489,360 At the end of FY2021-22 there were fund balances in special revenue funds that are proposed to be appropriated for use in the current fiscal year. These include $84,607 in the COPS/SLESF Fund (No. 155), $10,916 in the Police Donations Fund (No.127), $368,100 in the Public Safety Augmentation Fund (No.153), and $25,737 in the WC Community Services Foundation Fund (No. 220). All of this funding is restricted to Public Safety use and proposed to be used for public safety equipment, training, and programs. Revenue of $54,000 is also proposed to be added based on updated estimates.

Follow-up from First Quarter Budget Amendment (Fund 375) - $490,000 The exhibit for the first quarter budget amendment cut off the Police Enterprise Fund (No. 375) which was included in the staff report and first quarter report. Thus, staff has added it to this budget amendment as an administrative cleanup item.

LEGAL REVIEW:

The City Attorney's Office has reviewed the resolution and approved it as to form.

Prepared by: Stephanie Sikkema, Finance Director
Fiscal Impact
FISCAL IMPACT:

Excluding transfers out for use of unassigned fund balance (as per the Fund Balance Policy), the net impact of this amendment is zero for the General Fund. The table below provides a summary of the fiscal impact from the proposed adjustments by fund:

Fund Name (Fund No.) Proposed Revenue Less
Expenditures
Estimated Ending Fund
Balance
General Fund (110) -5,360,000 19,230,049
Capital Projects (160) 934,999 1,806,670
COPS/SLESF (155) -84,607 10,772
Highway Safety Improv. Prog. (144) 0 0
Other Post Emp. Benefits (369) 1,787,000 1,787,000
PDF A - Del Norte (170) -30,000 1,351,285
PDF D Walmerado-Cam. (173) 0 1,487
PDF F - Gal-Wogrov-Cam (175) -150,000 161,511
Police Donations (127) -10,916 21,320
Public Safety Augmentation (153) -368,100 357,809
Sewer Maintenance (189) -413,000 5,697,947
Sportsplex (242) 0 0
Vehicle Replacement (367) 714,000 1,241,499
WC Comm. Svcs Foundation (220) 28,263 1,395
Police Enterprise (375) (490,000) 148,555
Attachments
Attachment No. 1 - Resolution No. 2023-3
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1
RESOLUTION NO. 2023-3

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, ADOPTING A BUDGET

AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2022 AND ENDING JUNE 30, 2023 (MID-YEAR

ADJUSTMENTS)
WHEREAS, on April 19, 2022, the City Manager presented to the City Council a proposed budget for Fiscal Year 2022-23 in compliance with Section 2-151(m) of the West Covina Municipal Code; and
WHEREAS, following the initial presentation of the proposed budget for Fiscal Year 2022-23, the City held meetings and community workshops and conducted an online budget survey in order to solicit input from the public regarding the proposed budget; and WHEREAS, on June 7, 2022, the City Council adopted a budget for the 2022-2023 Fiscal Year; and
WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget.

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

SECTION 1. The City Council hereby approves Budget Amendment No. 2023-013, attached hereto as Exhibit A, for Fiscal Year 2022-23.

SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately.

APPROVED AND ADOPTED this 17th day of January, 2023.

Rosario Diaz
Mayor

APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2023-3 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 17th day of January, 2023, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
Exhibit A
City of West Covina
Fiscal Year 2022-23
Budget Amendment No. 2023-013
Mid-Year Adjustments
Fund Name (No.)
Current
Budget
Proposed
Amendment
Amended
Budget
General Fund (110)
Revenue 80,608,408 0 80,608,408
Expenditures 80,177,238 5,360,000 85,537,238
Revenue less Expenditures 431,170 (5,360,000) (4,928,830) Capital Projects (160)
Revenue 399,000 2,525,000 2,924,000
Expenditures 6,129,306 1,590,001 7,719,307
Revenue less Expenditures (5,730,306) 934,999 (4,795,307) COPS/SLESF (155)
Revenue 271,130 0 271,130
Expenditures 604,698 84,607 689,305
Revenue less Expenditures (333,568) (84,607) (418,175)
Highway Safety Improvement Program (144)
Revenue 3,184,700 7,000,000 10,184,700
Expenditures 3,184,700 7,000,000 10,184,700
Revenue less Expenditures 0 0 0
Other Post Emp. Benefits (369)
Revenue 0 1,787,000 1,787,000
Expenditures 0 0 0
Revenue less Expenditures 0 1,787,000 1,787,000
PDF A - Del Norte (170)
Revenue 0 0 0
Expenditures 0 30,000 30,000
Revenue less Expenditures 0 (30,000) (30,000)
Fund Name (No.)
Current
Budget
Proposed
Amendment
Amended
Budget
PDF D Walmerado-Cam. (173)
Revenue 20 30,000 30,020
Expenditures 309,218 30,000 339,218
Revenue less Expenditures (309,198) 0 (309,198)
PDF F - Gal-Wogrov-Cam (175)
Revenue 530 0 530
Expenditures 0 150,000 150,000
Revenue less Expenditures 530 (150,000) (149,470)
Police Donations (127)
Revenue 60 0 60
Expenditures 1,000 10,916 11,916
Revenue less Expenditures (940) (10,916) (11,856)
Public Safety Augmentation (153)
Revenue 836,610 0 836,610
Expenditures 821,045 368,100 1,189,145
Revenue less Expenditures 15,565 (368,100) (352,535)
Sewer Maintenance (189)
Revenue 3,769,530 0 3,769,530
Expenditures 7,238,997 413,000 7,651,997
Revenue less Expenditures (3,469,467) (413,000) (3,882,467) Sportsplex (242)
Revenue 598,413 245,000 843,413
Expenditures 598,413 245,000 843,413
Revenue less Expenditures 0 0 0
Vehicle Replacement (367)
Revenue 465,000 714,000 1,179,000
Expenditures 506,181 0 506,181
Revenue less Expenditures (41,181) 714,000 672,819
Fund Name (No.)
Current
Budget
Proposed
Amendment
Amended
Budget
WC Community Svcs Foundation (220)
Revenue 50,000 54,000 104,000
Expenditures 367,537 25,737 393,274
Revenue less Expenditures (317,537) 28,263 (289,274)
Police Enterprise (375)
Revenue 645,080 0 645,080
Expenditures 241,831 490,000 731,831
Revenue less Expenditures 403,249 (490,000) (86,751)
AGENDA ITEM NO. 10

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: January 17, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RESOLUTION APPOINTING THE CITY OF WEST COVINA’S

PRIMARY REPRESENTATIVE AND ALTERNATE REPRESENTATIVE TO THE BIG

INDEPENDENT CITIES EXCESS POOL (BICEP) BOARD OF DIRECTORS RECOMMENDATION:

It is recommended that the City Council adopt the following resolution:

RESOLUTION NO. 2023-1 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST

COVINA, CALIFORNIA, APPOINTING A PRIMARY REPRESENTATIVE AND AN ALTERNATE

REPRESENTATIVE TO THE BIG INDEPENDENT CITIES EXCESS POOL (BICEP) BOARD OF

DIRECTORS
BACKGROUND:

The Big Independent Cities Excess Pool (BICEP) Joint Powers Authority was established in 1988, in accordance with the Government Code of the State of California, as a way to “risk-share” insurance coverages by medium-to-large cities. BICEP was formed as a result of the municipal liability insurance crisis of 1985-86, when cities had difficulty purchasing affordable coverage in the traditional insurance marketplace. BICEP is comprised of the cities of Huntington Beach, Oxnard, Santa Ana, West Covina and Ventura.

As a joint powers authority, BICEP is governed by a Board of Directors consisting of one representative from each member agency. The Board of Directors elects its officers annually from member representatives and meetings are held every other month.

DISCUSSION:

The Joint Powers Agreement for the Big Independent Cities Excess Pool Joint Powers Authority, dated July 1, 2006, requires that each member's City Council appoint one director to the Board of Directors of the Joint Powers Authority.

Although the City's excess coverage pool has changed, effective July 1, 2019, to a new carrier, the City has ongoing obligations under the terms and conditions of the BICEP Joint Powers Agreement with regard to claims submitted prior to July 1, 2019.

With the recent resignation of Helen Tran as the City’s Human Resources/Risk Management Director, the City Manager is recommending that Lisa Handy, Interim Director of HR/Risk Management be appointed to serve on the BICEP Board of Directors as the City’s primary representative.

The Joint Powers Agreement also requires that the City Council appoint an alternate director to attend, participate in and vote at any meeting at which the primary representative is absent. The City Manager is recommending that Carmelita Underwood, HR Analyst, be appointed to serve as the alternate representative.

LEGAL REVIEW:

The City Attorney's Office has reviewed the resolution and approved it as to form.

Prepared by: Carmelita Underwood, HR Analyst
Fiscal Impact
FISCAL IMPACT:

This is strictly an administrative item, therefore; there is no fiscal impact associated with this action.

Attachments
Attachment No. 1 - Resolution No. 2023-1
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1
RESOLUTION NO. 2023-1

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, APPOINTING A PRIMARY

REPRESENTATIVE AND AN ALTERNATE

REPRESENTATIVE TO THE BIG INDEPENDENT CITIES

EXCESS POOL (BICEP) BOARD OF DIRECTORS
WHEREAS, the City of West Covina (“City”) is a member of the Big Independent Cities Excess Pool (“BICEP”); and
WHEREAS, the Joint Powers Agreement for the Big Independent Cities Excess Pool Joint Powers Authority (“BICEP JPA”), dated July 1, 2006, requires that each member’s City Council appoint one director and one alternate director to the Board of Directors of the BICEP JPA; and
WHEREAS, the City Council desires to appoint a director and an alternate director to the BICEP JPA Board of Directors.

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

SECTION 1. The City Council hereby appoints Lisa Handy, Interim Director of Human Resources and Risk Management, to serve as the City’s primary representative on the Board of Directors of the Big Independent Cities Excess Pool Joint Powers Authority.

SECTION 2. The individual designated above by the West Covina City Council as the City’s primary representative to the BICEP Board of Directors is hereby confirmed and designated as the City’s delegate to the BICEP Board of Directors for all purposes of representing the City’s interests and exercising the authority of the City with respect to the coverage and the program and voting on behalf of the City on all matters delegated to the Board of Directors and signing such documents as are contemplated to be approved by the Board of Directors under the Liability Program, Workers’ Compensation Program and Liability Memorandum of Coverage Agreements. Such individual shall keep the West Covina City Council informed of such matters on a timely basis.

SECTION 3. The City Council hereby appoints Carmelita Underwood, Human Resources Analyst, as the City’s alternate representative, who shall have the authority to attend, participate in and vote at any meeting of the Board of Directors when the primary representative is absent.

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall enter the same in the book of original resolutions and it shall become effective immediately.

APPROVED AND ADOPTED this 17th day of January, 2023.

Rosario Diaz
Mayor

APPROVED AS TO FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Resolution No. 2023-1 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 17th day of January, 2023, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
AGENDA ITEM NO. 11

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: January 17, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: West Covina Police Department Detective Bureau Status Update RECOMMENDATION:

It is recommended that the City Council receive and file this informational report.

BACKGROUND:

The Police Department will be presenting an overview of the Detective Bureau's operations and responsibilities.

DISCUSSION:

The presentation will cover responsibilities of the West Covina Detective Bureau, including processes for investigation, case management and procession of major crimes in our city.

OPTIONS:

It is recommended that the City Council receive and file the detective bureau presentation from the Police Department.

Prepared by: Richard Bell, Chief of Police
Fiscal Impact
FISCAL IMPACT:

This agenda item is to receive and file, therefore; there is no fiscal impact associated with this action.

Attachments
Attachment No. 1 - Detective Bureau Presentation
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety

CITY COUNCIL MEETING
JANUARY 17, 2023
ATTACHMENT NO. 1
Police Department
Item #11 - Detective Bureau Status Update

DETECTIVE BUREAU STATUS UPDATE
 Under the umbrella of the Investigative and Support Services Division, our Detective Bureau is a major component of the Department’s commitment to providing essential, Front-Line Law Enforcement Services to our community.

ATTACHMENT NO. 1

INVESTIGATIVE DIVISION MAKE UP
Crimes Against Persons | Crimes Against Property | Special Enforcement Team Persons Section - Homicide, Robbery & Kidnapping, Assault & Battery, Sexual Assault, Child & Elder Abuse, Domestic Violence, and Missing Persons.

Property Section - Burglary, Theft, Grand Theft Auto, Forgery, Embezzlement, Graffiti/ Vandalism, and miscellaneous sections to include Juvenile Diversion and drug related cases. Also includes the Forensic Identification Unit (FIU).

Special Enforcement Team - Responsible for investigating Major Narcotic cases and Drug Trafficking Organizations. The Special Enforcement Team also conducts surveillance and follow up investigations in conjunction with our Detectives.

UNDER THE DIRECTION OF THE INVESTIGATIVE LIEUTENANT
Persons Sergeant
1 - FIU Supervisor
8 - Detectives
1 - Crime Analyst
1 - Victim’s Advocate
1 - U.S Marshals' Task Force Officer
1 - Social Media/ Public Relations/
Photographer
Property Sergeant
3 - Detectives
1 - T.R.A.P. Task Force Officer
1 - Crime Analyst
1 - Court Liaison CSO
1 - Case Preparation CSO
 Follow-up Investigations (long term and short term)
 Significantly Less Limitations & Very Experienced
 Search Warrants (technology, social media, data collection)  Interviews and Interrogations
 Surveillance
 Resources (coordinate and collaborate with other organizations)  Case Preparation and Adjudication (investigating officer, discovery, court expert, witness and victim coordination )
 Extradition
 After Conviction Participation
 Sex and Arson Registrants
▪ Preliminary Investigation
▪ Basic Evidence Collection
▪ Arrest vs. No Arrest
▪ Limitations
▪ No Long-Term Investment
▪ Various Experience Levels
PATROL OFFICER VS. DETECTIVE

PATROL OFFICER DETECTIVE

ADDITIONAL RESOURCES
 Internet Crimes Against Children Task Force
 Task Force for Regional Auto Theft
 Crime Analyst
 Victim Advocate
 Records Specialist
 CSOs (witness and officer subpoena coordination)

CASE DIFFERENCES
 Homicides (71% solved)
 Sex Crimes
 Child Abuse
 Child Pornography
 Robberies (Robbery Series, Assaults, Batteries, Kidnapping)  Forgery
 Burglary (hot prowls & burglary series)
 Quick solve cases
 Media attention
 Danger to public
 High profile/full resource cases (stranger child abduction, terrorist events, active shooter events)
 Officer Involved Shooting

FORENSIC IDENTIFICATION UNIT
 Crime Scene processing
 Fingerprint evidence
 Court expert
 Contract Services

CASELOAD
 2,316 Inactive/suspended cases
 1,239 Open cases
 964 Filed with DA
 640 Cleared Other reasons
 325 Victim Refused to Prosecute
 242 DA Rejects
• 124 Under Review by DA
• 98 Unfounded
• 77 Will not Investigate
• 38 In Custody Other Jurisdiction
• 15 Released per PC 849
• 32 Juvenile Diversion
41% Cleared Cases Rate (last 12 months)

ASSIGNED ACTIVE CASES
Case Type # of Active Cases
ICAC 9
Domestic Violence 261
Sex Crimes/Child Abuse 138
Robbery/Assaults 49
Homicide (includes attempts) 39
Misc. Property 173
Fraud 33
Burglary 16
Quick Solve/Pending 524

TRAP/USMS

QUESTIONS

West Covina City CouncilJanuary 17, 2023

West Covina City Council
January 17, 2023