CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
JANUARY 17, 2023, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Rosario Diaz
Mayor Pro Tem Brian Tabatabai
Councilman Tony Wu
Councilwoman Letty Lopez-Viado
Councilman Ollie Cantos
Please turn off all cell phones and other electronic devices prior to entering the Council Chambers
AMERICANS WITH DISABILITIES ACT
The City complies with the Americans with Disabilities Act (ADA). If you will need special assistance at Council meetings, please call (626) 939-8433 (voice) or (626) 960-4422 (TTY) from 8 to 5 Monday through Thursday. Do call at least one day prior to the meeting date to inform us of your particular needs and to determine if accommodation is possible. For sign language interpreter services at Council meetings, please request no less than four working days prior to the meeting.
AGENDA MATERIAL
Agenda material is available for review at the City Clerk's Office, Room 317 in City Hall, 1444 W. Garvey Avenue South, West Covina and at www.westcovina.org. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council that is distributed less than 72 hours before the meeting, will be made available for public inspection in the City Clerk’s Office, Room 317 of City Hall located at 1444 W. Garvey Avenue South, West Covina, during normal business hours.
NOTICE
The City Council will regularly convene on the first and third Tuesday of the month. The West Covina Community Development Commission, West Covina Public Financing Authority and the West Covina Community Services Foundation are agencies on which the City Council serves as members. Agendas may contain items for these boards, as necessary.
PUBLIC COMMENTS
ADDRESSING THE CITY COUNCIL
(Per WCMC 2-48, Ordinance No. 2150)
Any person wishing to address the City Council on any matter listed on the agenda or on any other matter within their jurisdiction should complete a speaker card that is provided at the entrance to the Council Chambers and submit the card to the City Clerk.
Please identify on the speaker card whether you are speaking on an agenda item or non-agenda. Requests to speak on agenda items will be heard prior to requests to speak on non-agenda items. All comments are limited to five (5) minutes per speaker.
Oral Communications may be limited to thirty (30) minutes, unless speakers addressing agenda items have not concluded.
Any testimony or comments regarding a matter set for a Public Hearing will be heard during the hearing.
RULES OF DECORUM
Excerpts from the West Covina Municipal Code and Penal Code pertaining to the Rules of Decorum will be found at the end of agenda.
AGENDA
AGENDA
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
TUESDAY JANUARY 17, 2023, 7:00 PM
REGULAR MEETING
INVOCATION
Led by Pastor Kelly Dupee from Faith Community Church
PLEDGE OF ALLEGIANCE
Led by Councilman Wu
ROLL CALL
REPORTING OUT FROM CLOSED SESSION
PRESENTATIONS
Certificate of Recognition Congratulating Fire Captain Hamm on his Retirement ORAL COMMUNICATIONS - Five (5) minutes per speaker
Please step forward to the podium and state your name and city of residence for the record when recognized by the Mayor.
CITY MANAGER'S REPORT
City Manager's report on current City projects.
CONSENT CALENDAR
All matters listed under CONSENT CALENDAR are considered to be routine and can be acted on by one roll call vote.
There will be no separate discussion of these items unless members of the City Council/Community Development Commission request specific items to be removed from the Consent Calendar for separate discussion or action.
APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE DECEMBER 20, 2022, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES.
It is recommended that the City Council approve the December 20, 2022 Regular Session Meeting Minutes.
CITY MANAGER'S OFFICE
2) CONSIDERATION OF RESOLUTION NO. 2023-4 DETERMINING THERE IS A NEED TO
CONTINUE THE LOCAL EMERGENCY
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2022-121 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, DETERMINING THE NEED TO FURTHER CONTINUE THE LOCAL EMERGENCY PROCLAIMED ON MARCH 16, 2020, AND PREVIOUSLY CONTINUED ON APRIL 7, 2020, MAY 5, 2020, JUNE 2, 2020, JUNE 23, 2020, JULY 21, 2020, AUGUST 18, 2020, SEPTEMBER 15, 2020, OCTOBER 6, 2020, OCTOBER 20, 2020, NOVEMBER 17, 2020, DECEMBER 1, 2020, JANUARY 19, 2021, FEBRUARY 16, 2021, MARCH 16, 2021, APRIL 6, 2021, MAY 4, 2021, JUNE 1, 2021, JUNE 15, 2021, JULY 6, 2021, JULY 20, 2021, AUGUST 17, 2021, SEPTEMBER 7, 2021, OCTOBER 5, 2021, NOVEMBER 2, 2021, DECEMBER 7, 2021, JANUARY 4, 2022, FEBRUARY 1, 2022, MARCH 1, 2022, APRIL 5, 2022, MAY 3, 2022, JUNE 7, 2022. JULY 5, 2022, JULY 19, 2022, AUGUST 16, 2022, SEPTEMBER 20, 2022 , OCTOBER 4, 2022, NOVEMBER 15, 2022 AND DECEMBER 6, 2022 3) CONSIDERATION OF AN ORDINANCE AMENDING ARTICLE VIII OF CHAPTER 2 OF THE
WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE REGULATIONS It is recommended that the City Council adopt the following ordinance:
ORDINANCE NO. 2510 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING ARTICLE VIII OF CHAPTER 2 OF THE
WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE
REGULATIONS
4) CONSIDERATION OF RESOLUTION NO. 2023-5 RATIFYING PROCLAMATION NO. 2023-01 PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY RELATED TO
SEVERE WINTER STORMS
Staff recommends that the City Council adopt the following resolution:
RESOLUTION NO. 2023-5 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, RATIFYING PROCLAMATION NO. 2023-1
PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY RELATED TO
SEVERE WINTER STORMS
COMMUNITY DEVELOPMENT
5) CONSIDERATION OF PROFESSIONAL SERVICES AGREEMENT FOR BUILDING AND SAFETY SERVICES WITH TRANSTECH ENGINEERS, INC.
It is recommended that the City Council:
Award Request for Proposals No. 71-020 for Building and Safety Services to Transtech Engineers, Inc.
1. Authorize the City Manager to execute a Professional Services Agreement with Transtech Engineers, Inc. for Building and Safety services for a three-year term, commencing January 18, 2023 and ending January 17, 2026, with two optional one-year extensions contingent upon satisfactory performance, in substantially the form as attached and in such final form as approved by the City Attorney;
2. Authorize the City Manager to approve any extensions and execute amendments providing for such extensions.
3. 6) CONSIDERATION OF CONSTRUCTION AGREEMENT FOR THE CITYWIDE PEDESTRIAN & VEHICLE TRAFFIC SAFETY IMPROVEMENTS FY 22-23 - PROJECT NO. 23027 It is recommended that the City Council take the following actions:
Award the construction agreement for the Citywide Pedestrian & Vehicle Traffic Safety Improvements (Project No. 23027) to Superior Pavement Markings, Inc. as the lowest responsible bidder;
1. Authorize the City Manager to execute an agreement with Superior Pavement Markings, Inc. for $232,916.00, in substantially the form as attached and in such final form as approved by the City Attorney;
2. Authorize 15% of the awarded contract amount as contingency allowance to be used, if necessary, with the City Manager's approval, for unforeseen conditions;
3. necessary, with the City Manager's approval, for unforeseen conditions;
4. Authorize the City Manager to negotiate and execute any amendments to the agreement; Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (Replacement or Reconstruction).
5. FINANCE DEPARTMENT
7) CONSIDERATION OF ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER RELATED REPORTS FOR THE YEAR ENDED JUNE 30, 2022
It is recommended that the City Council receive and file the following letters and financial reports for the year ended June 30, 2022:
Annual Comprehensive Financial Report;
Government Auditing Standards Letter;
Audit Communication Letter; and
Community Financial Report.
8) CONSIDERATION OF UPGRADE TO MICROWAVE SYSTEM INFRASTRUCTURE 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. 9) CONSIDERATION OF A RESOLUTION AMENDING THE FY 2022-2023 BUDGET 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)
HUMAN RESOURCES/RISK MANAGEMENT
10) 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 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
END OF CONSENT CALENDAR
DEPARTMENTAL REGULAR MATTERS
POLICE DEPARTMENT
POLICE DEPARTMENT
11) West Covina Police Department Detective Bureau Status Update It is recommended that the City Council receive and file this informational report.
MAYOR/COUNCILMEMBERS REPORTS
AB 1234 Conference and Meeting Report (verbal, if any)
(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.)
CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION (Per City of West Covina Standing Rules 4.f - Requests for reports, studies, or investigations that are not readily available must be placed on the City Council/Successor Agency agenda as items of business and must be approved by a majority of the City Council/Successor Agency Board.)
CITY COUNCIL COMMENTS
ADJOURNMENT
Next Tentative City Council Meeting
Regular Meeting February 7, 2023 7:00 PM
RULES OF DECORUM
The following are excerpts from the West Covina Municipal Code:
Sec. 2-48. Manner of addressing council; time limit; persons addressing may be sworn.
Each person addressing the council shall step up to the rostrum, shall give his or her name and city of residence in an audible tone of voice for the record and unless further time is granted by the council, shall limit his or her address to five (5) minutes. a.
b. The city council may establish a limit on the duration of oral communications.
All remarks shall be addressed to the council as a body and not to any member thereof. No person, other than the council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the council, without the permission of the presiding officer. No question shall be asked of a councilmember except through the presiding officer. c.
The presiding officer may require any person to be sworn as a witness before addressing the council on any subject. Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the Penal Code of the state.
d.
Sec. 2-50. Decorum--Required.
While the council is in session, the members shall preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided. a.
Members of the public shall not willfully disrupt the meeting or act in a manner that actually impairs the orderly conduct of the meeting.
For the purposes of this code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the Mayor that continuing to do so will be a violation of the law:
a. Addressing the Mayor and City Council without first being recognized. b. Persisting in addressing a subject or subjects, other than that before the Mayor and City Council. c. Repetitiously addressing the same subject.
d. Failing to relinquish the podium when directed to do so.
From the audience, interrupting or attempting to interrupt, a speaker, the Mayor, a council member, or a staff member or shouting or attempting to shout over a speaker, the Mayor, a council member or a staff member. e.
As a speaker, interrupting or attempting to interrupt the Mayor, a council member, or a staff member, or shouting over or attempting to shout over the Mayor, a council member, or a staff member. Nothing in this section or any rules of the council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City or of the acts or omissions of the City Council. It shall be unlawful to violate the provisions of this Section. f.
b.
If any subsection, sentence, clause, or phrase or word of this Section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Section. The City Council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.
Sec. 2-52. Persons authorized to be within council area.
No person, except city officials, their representatives and members of the news media shall be permitted within the rail in front of the council chamber without the express consent of the council.
The following are excerpts from the Penal Code
148(a) (1) Every Person who willfully resists, delays, or obstructs any public officer, peace officer, or an emergency medical technician, as defined in Division 2.5 (commencing with Section 1797) of the Health and Safety code, in the discharge or attempt to discharge any duty of his or her office or employment, when no other punishment is prescribed, shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail not to exceed one year, or by both that fine and imprisonment. 403 Every person who, without authority of law, willfully disturbs or breaks up any assembly or meeting that is not unlawful in its character, other than an assembly or meeting referred to in Section 303 of the Penal Code or Section 18340 of the Elections Code, is guilty of a misdemeanor.
AGENDA ITEM NO. 1
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 APPROVAL OF THE DECEMBER 20, 2022, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES.
RECOMMENDATION:
It is recommended that the City Council approve the December 20, 2022 Regular Session Meeting Minutes.
BACKGROUND:
The December 20, 2022, City Council/Successor Agency Closed Session Meeting was canceled.
DISCUSSION:
That the City Council adopt the attached minutes.
Prepared by: Lisa Sherrick; Assistant City Clerk
Attachments
Attachment No. 1 - 12/20/2022 Regular Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness 12/20/2022 Regular Session Minutes Draft Attachment No. 1 Page No. 1
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
DECEMBER 20, 2022, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Dario Castellanos
Mayor Pro Tem Rosario Diaz
Councilwoman Letty Lopez-Viado
Councilmember Brian Tabatabai
Councilman Tony Wu
MINUTES
CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Dario Castellanos on Tuesday, December 20, 2022 at 7:00 p.m., in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California
INVOCATION
Led by Pastor Samuel Martinez from Amazing Love Ministries
PLEDGE OF ALLEGIANCE
Led by West Covina Police Explorer Post #499
ROLL CALL
Present: Council Members Tony Wu, Brian Tabatabai, Letty Lopez-Viado, Mayor Pro Tem Diaz, Mayor Castellanos.
Council Members
Absent: None
12/20/2022 Regular Session Minutes Draft Attachment No. 1 Page No. 2
City Staff: David Carmany City Manager, Paulina Morales Assistant City Manager, Tom Duarte City Attorney, Lisa Sherrick Assistant City Clerk; other City staff presented reports and responded to questions as indicated in the minutes.
REPORTING OUT FROM CLOSED SESSION
None
PRESENTATIONS
None
ORAL COMMUNICATIONS - Five (5) minutes per speaker
Lloyd Johnson
Steve Bennett
Ethan Boulais
Bill Robinson
Victor Orly
Rose Lopez
CITY MANAGER'S REPORT
None
CONSENT CALENDAR
ACTION: Motion by Councilman Wu, Second by Councilwoman Lopez 5-0 to: Approve Consent Calendar Items 1-6
APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE DECEMBER 6, 2022, CITY
COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES AND THE DECEMBER 6, 2022, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES.
Carried 5-0 to: approve the December 6, 2022, Closed Session Meeting Minutes and the December 6, 2022 Regular Session Meeting Minutes.
CITY CLERK'S OFFICE
2) CERTIFYING THE OFFICIAL ELECTION RESULTS OF THE NOVEMBER 8, 2022
GENERAL MUNICIPAL ELECTION
Carried 5-0 to: adopt the following resolution:
RESOLUTION NO. 2022-120 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD NOVEMBER 8, 2022, DECLARING
THE RESULTS AND SUCH OTHER MATTERS AS PROVIDED BY LAW
12/20/2022 Regular Session Minutes Draft Attachment No. 1 Page No. 3
FINANCE DEPARTMENT
3) CONSIDERATION OF APPROVAL AND TRANSMITTAL OF AN ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2024 FOR THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY
Carried 5-0: that the City Council, acting as the Successor Agency to the former West Covina Redevelopment Agency, adopt the following resolution:
RESOLUTION NO. 2022-129 – A RESOLUTION OF THE SUCCESSOR
AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY
APPROVING AND AUTHORIZING THE TRANSMITTAL OF AN
ADMINISTRATIVE BUDGET AND A RECOGNIZED OBLIGATION
PAYMENT SCHEDULE (“ROPS”) FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2024
4) CONSIDERATION OF INCREASE IN HOURLY RATES FOR LIMITED
SERVICES PAY SCHEDULE TO REFLECT RECENT INCREASE IN STATE HOURLY MINIMUM WAGE EFFECTIVE JANUARY 1, 2023
Carried 5-0 to: take the following actions:
1. Approve wage adjustments to limited-service positions to bring them into compliance with the State’s minimum wage requirement as of January 1, 2023; and
2. Adopt the following Resolution:
RESOLUTION NO. 2022-128 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, ADJUSTING THE HOURLY PAY
RATES OF CLASSIFICATIONS WITHIN THE LIMITED SERVICES PAY SCHEDULE AND REPEALING RESOLUTION NO. 2022-09
HUMAN RESOURCES/RISK MANAGEMENT
5) CONSIDERATION OF RESOLUTION NO. 2022-113 REPEALING AND
REPLACING THE SALARY SCHEDULE FOR FULL TIME CLASSIFICATIONS Carried 5-0 to: adopt the following resolution:
RESOLUTION NO. 2022-113 - A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, REPEALING AND REPLACING
THE SALARY SCHEDULE FOR FULL-TIME CLASSIFICATIONS OF THE CITY
OF WEST COVINA
PUBLIC SERVICES
6) CONSIDERATION OF THIRD AMENDMENT TO AGREEMENT WITH WEST COAST ARBORISTS, INC. FOR CITYWIDE TREE MAINTENANCE
SERVICES
Carried 5-0 to: take the following actions:
12/20/2022 Regular Session Minutes Draft Attachment No. 1 Page No. 4
1. Authorize the City Manager to execute the Third Amendment to the Maintenance Services Agreement with West Coast Arborists, Inc. allowing the four percent (4%) cost adjustment requested, in such form as approved by the City Attorney.
2. Authorize an increase the annual maximum compensation from $485,000 to $985,000 for Fiscal Year 2022-23 only.
3. Adopt the following resolution:
RESOLUTION NO. 2022-115 - 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 (TREE MAINTENANCE SERVICES)
END OF CONSENT CALENDAR
DEPARTMENTAL REGULAR MATTERS
CITY CLERK'S OFFICE
7) RECOGNITION OF OUTGOING CITY COUNCIL MEMBER AND ADMINISTRATION
OF OATH OF OFFICE TO NEWLY ELECTED OFFICERS
Take appropriate action.
8) REORGANIZATION OF MAYOR AND MAYOR PRO TEM
Hearing no opposition, the City Council reorganized in accordance with the order of mayoral succession mandated by Section 2-21 of the West Covina Municipal Code, or modify the order of mayoral succession as permitted by Section 2-21 of the West Covina Municipal Code.
MAYOR/COUNCILMEMBERS REPORTS
Councilman Cantos filed a report concerning all his actions leading up to his election.
CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION None
CITY COUNCIL COMMENTS
Councilwoman Lopez-Viado wished everyone Happy Holidays and a Happy New Year. -This section has Intentionally been left blank-
12/20/2022 Regular Session Minutes Draft Attachment No. 1 Page No. 5
ADJOURNMENT
The meeting was adjourned in honor of Mr. Robert Chandler. Our deepest condolences to his family. A motion to adjourn the Regular Meeting was made by Councilwoman Lopez-Viado, and the meeting was adjourned at 9:46 p.m. The next regularly scheduled Regular City Council Meeting will be held on Tuesday January 17, 2023 at 7:00 p.m. in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California.
Submitted by:
____________________________
Lisa Sherrick
Assistant City Clerk
_______________________________
Rosario Diaz
Mayor
AGENDA ITEM NO. 2
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 NO. 2023-4 DETERMINING THERE IS A NEED TO
CONTINUE THE LOCAL EMERGENCY
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2022-121 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, DETERMINING THE NEED TO FURTHER CONTINUE THE LOCAL EMERGENCY PROCLAIMED ON MARCH 16, 2020, AND PREVIOUSLY CONTINUED ON APRIL 7, 2020, MAY 5, 2020, JUNE 2, 2020, JUNE 23, 2020, JULY 21, 2020, AUGUST 18, 2020, SEPTEMBER 15, 2020, OCTOBER 6, 2020, OCTOBER 20, 2020, NOVEMBER 17, 2020, DECEMBER 1, 2020, JANUARY 19, 2021, FEBRUARY 16, 2021, MARCH 16, 2021, APRIL 6, 2021, MAY 4, 2021, JUNE 1, 2021, JUNE 15, 2021, JULY 6, 2021, JULY 20, 2021, AUGUST 17, 2021, SEPTEMBER 7, 2021, OCTOBER 5, 2021, NOVEMBER 2, 2021, DECEMBER 7, 2021, JANUARY 4, 2022, FEBRUARY 1, 2022, MARCH 1, 2022, APRIL 5, 2022, MAY 3, 2022, JUNE 7, 2022. JULY 5, 2022, JULY 19, 2022, AUGUST 16, 2022, SEPTEMBER 20, 2022 , OCTOBER 4, 2022, NOVEMBER 15, 2022 AND DECEMBER 6, 2022 BACKGROUND:
On March 17, 2020, the City Council adopted Resolution 2020-19, ratifying Proclamation 2020-01 declaring the existence of a local emergency, which was issued by the City Manager acting in the capacity of Director of Emergency Services. The local emergency is due to the coronavirus (COVID-19) pandemic. Following adoption of the resolution, the City Council needs to review the need for continuing the local emergency at least once every thirty (30) days in accordance with Section 8-7(a)(2) of the West Covina Municipal Code (WCMC).
The City Council previously continued the local emergency on April 7, 2020, May 5, 2020, June 2, 2020, June 23, 2020, July 21, 2020, August 18, 2020, September 15, 2020, October 6, 2020, October 20, 2020, November 17, 2020, December 1, 2020, January 19, 2021, February 16, 2021, March 16, 2021, April 6, 2021, May 4, 2021, June 1, 2021, June 15, 2021, July 6, 2021, July 20, 2021, August 17, 2021, September 7, 2021, October 5, 2021, November 2, 2021, December 7, 2021, January 4, 2022, February 1, 2022, March 1, 2022, April 5, 2022, May 3, 2022, June 7, 2022, July, 5, 2022, July 19, 2022, August 16, 2022, September 20, 2022, October 18, 2022, November 15, 2022 and December 6, 2022.
DISCUSSION:
Since March 4, 2022 in Los Angeles County, masks have no longer been required in most indoor settings, but continue to be strongly recommended by the Los Angeles County Department of Public Health ("LA County Health Department"). Pursuant to a revised Health Officer Order issued September 22, 2022, masks are strongly recommended, but not required, on public transit and in indoor transportation hubs in Los Angeles County. Correctional facilities and detention centers, homeless shelters, emergency shelters and cooling centers are permitted to use the Centers for Disease Control and Prevention (CDC) COVID-19 Community Levels to determine the level of masking requirements within their facilities. Masks are still required for all persons, regardless of vaccination status, in all indoor healthcare settings.
On January 6, 2023, the LA County Health Department reported that Los Angeles County remains at the Medium Community Level on the CDC's COVID-19 framework.
The State of California remains in a State of Emergency. Los Angeles County's local emergency and public health emergency remain in effect.
Staff is requesting that the City Council determine there is a need to continue the local emergency.
LEGAL REVIEW:
The City Attorney's Office has reviewed the resolution and approved it as to form.
OPTIONS:
The options available to the City Council are as follows:
1. Adopt the resolution as submitted; or
2. Terminate the local emergency; or
3. Provide alternative direction.
Prepared by: David Carmany, City Manager
Attachments
Attachment No. 1 - Resolution No. 2023-4
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Maintain Good Intergovernmental Relations
Achieve Fiscal Sustainability and Financial Stability
RESOLUTION NO. 2023-4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, DETERMINING THE NEED
TO FURTHER CONTINUE THE LOCAL EMERGENCY
PROCLAIMED ON MARCH 16, 2020 AND PREVIOUSLY
CONTINUED ON APRIL 7, 2020, MAY 5, 2020, JUNE 2,
2020, JUNE 23, 2020, JULY 21, 2020, AUGUST 18, 2020,
SEPTEMBER 15, 2020, OCTOBER 6, 2020, OCTOBER 20,
2020, NOVEMBER 17, 2020, DECEMBER 1, 2020,
JANUARY 19, 2021, FEBRUARY 16, 2021, MARCH 16,
2021, APRIL 6, 2021, MAY 4, 2021, JUNE 1, 2021, JUNE 15, 2021, JULY 6, 2021, JULY 20, 2021, AUGUST 17, 2021,
SEPTEMBER 7, 2021, OCTOBER 5, 2021, NOVEMBER 2,
2021, DECEMBER 7, 2021, JANUARY 4, 2022, FEBRUARY
1, 2022, MARCH 1, 2022, APRIL 5, 2022, MAY 3, 2022,
JUNE 7, 2022, JULY 5, 2022, JULY 19, 2022, AUGUST 16,
2022, SEPTEMBER 20, 2022, OCTOBER 18, 2022,
NOVEMBER 15, 2022 AND DECEMBER 6, 2022
WHEREAS, the California Emergency Services Act (Government Code section 8550 et seq.) authorizes the City Council, or an official designated by ordinance adopted by the City Council, to proclaim a local emergency when the City is threatened by conditions of disaster or extreme peril to the safety of persons and property within the City that are likely to be beyond the control of the services, personnel, equipment, and facilities of the City; and
WHEREAS, West Covina Municipal Code section 8-7(a)(1) empowers the City Manager, as the Director of Emergency Services, to declare the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity; and
WHEREAS, on March 16, 2020, the City Manager declared a local emergency as authorized by Government Code section 8630(a) and West Covina Municipal Code section 8-7(a)(1) through Proclamation No. 2020-01 due to the COVID-19 pandemic; and WHEREAS, on March 17, 2020, the City Council adopted Resolution No. 2020- 19, ratifying the City Manager’s proclamation as required by Government Code section 8630(b) and West Covina Municipal Code section 8-7(a)(1); and WHEREAS, Section 8-7(a)(2) of the West Covina Municipal Code empowers the City Manager to request that the City Council review the need for continuing the local emergency at least once every 30 days until the City Council terminates the local emergency; and
WHEREAS, at the time the City Council ratified the proclamation, the World Health Organization (WHO) reported, as of March 15, 2020, 153,517 confirmed cases of COVID- 19 globally, 5,735 of which resulted in death. On January 6, 2023, the WHO reported a total of 657,977,736 confirmed cases globally, 6,681,433 of which resulted in death; and WHEREAS, at the time the City Council ratified the proclamation, the California Department of Public Health (CDPH) reported that, as of March 15, 2020, there were 335 confirmed cases of COVID-19 in California, six (6) of which resulted in death. On January 5, 2023, CDPH reported that, as of January 3, 2023, there were a total of 10,934,798 confirmed cases in California, 98,038 of which resulted in death; and WHEREAS, at the time the City Council ratified the proclamation, the Los Angeles County Department of Public Health (“LA County Health Department”) reported that, as of March 15, 2020, Los Angeles County had 69 confirmed cases, including one (1) death and one (1) confirmed case at West Covina High School. On January 6, 2023, the LA County Health Department reported that, as of January 5, 2023, Los Angeles County had a total of 3,646,917 confirmed cases, 34,783 of which resulted in death; and WHEREAS, as of January 5, 2023, the LA County Health Department reported a total of 38,484 confirmed cases in the City of West Covina, 396 of which resulted in death; and
WHEREAS, on April 7, 2020, the City Council adopted Resolution No. 2020-22, determining there was a need to continue the local emergency and confirming the written orders and regulations promulgated by the City Manager; and WHEREAS, on May 5, 2020, the City Council adopted Resolution No. 2020-41, determining there was a need to continue the local emergency and confirming the written orders and regulations promulgated by the City Manager; and WHEREAS, on June 2, 2020, the City Council adopted Resolution No. 2020-45, determining there was a need to continue the local emergency; and WHEREAS, on June 23, 2020, the City Council adopted Resolution No. 2020-68, determining there was a need to continue the local emergency; and WHEREAS, on July 21, 2020, the City Council adopted Resolution No. 2020-85, determining there was a need to continue the local emergency; and WHEREAS, on August 18, 2020, the City Council adopted Resolution No. 2020- 91, determining there was a need to continue the local emergency and confirming a written order promulgated by the City Manager; and
WHEREAS, on September 15, 2020, the City Council adopted Resolution No. 2020-96, determining there was a need to continue the local emergency; and WHEREAS, on October 6, 2020, the City Council adopted Resolution No. 2020- 101, determining there was a need to continue the local emergency; and WHEREAS, on October 20, 2020, the City Council adopted Resolution No. 2020- 105, determining there was a need to continue the local emergency and clarifying the City Manager’s emergency powers; and
WHEREAS, on November 17, 2020, the City Council adopted Resolution No. 2020-116, determining there was a need to continue the local emergency; and WHEREAS, on December 1, 2020, the City Council adopted Resolution No. 2020- 118, determining there was a need to continue the local emergency and providing that, notwithstanding the requirements of West Covina Municipal Code section 8-7(a)(2), due to the City Council’s meeting schedule, the next regular meeting at which the City Council would consider the need to continue the local emergency would be January 19, 2021; and
WHEREAS, on January 19, 2021, the City Council adopted Resolution No. 2021- 01, determining there was a need to continue the local emergency; and WHEREAS, on February 16, 2021, the City Council adopted Resolution No. 2021- 12, determining there was a need to continue the local emergency; and WHEREAS, on March 16, 2021, the City Council adopted Resolution No. 2021- 17, determining there was a need to continue the local emergency; and WHEREAS, on April 6, 2021, the City Council adopted Resolution No. 2021-25, determining there was a need to continue the local emergency; and WHEREAS, on May 4, 2021, the City Council adopted Resolution No. 2021-49, determining there was a need to continue the local emergency; and WHEREAS, on June 1, 2021, the City Council adopted Resolution No. 2021-65, determining there was a need to continue the local emergency; and WHEREAS, on June 15, 2021, the City Council adopted Resolution No. 2021-72, determining there was a need to continue the local emergency; and WHEREAS, on July 6, 2021, the City Council adopted Resolution No. 2021-76, determining there was a need to continue the local emergency; and WHEREAS, on July 20, 2021, the City Council adopted Resolution No. 2021-86, determining there was a need to continue the local emergency; and WHEREAS, on August 17, 2021, the City Council adopted Resolution No. 2021- 91, determining there was a need to continue the local emergency; and WHEREAS, on September 7, 2021, the City Council adopted Resolution No. 2021- 92, determining there was a need to continue the local emergency; and WHEREAS, on October 5, 2021, the City Council adopted Resolution No. 2021- 99, determining there was a need to continue the local emergency; and WHEREAS, on November 2, 2021, the City Council adopted Resolution No. 2021- 101, determining there was a need to continue the local emergency; and WHEREAS, on December 7, 2021, the City Council adopted Resolution No. 2021- 116, determining there was a need to continue the local emergency; and WHEREAS, on January 4, 2022, the City Council adopted Resolution No. 2022- 07, determining there was a need to continue the local emergency; and WHEREAS, on February 1, 2022, the City Council adopted Resolution No. 2022- 14, determining there was a need to continue the local emergency; and WHEREAS, on March 1, 2022, the City Council adopted Resolution No. 2022-21, determining there was a need to continue the local emergency; and WHEREAS, on April 5, 2022, the City Council adopted Resolution No. 2022-29, determining there was a need to continue the local emergency; and WHEREAS, on May 3, 2022, the City Council adopted Resolution No. 2022-38, determining there was a need to continue the local emergency; and WHEREAS, on June 7, 2022, the City Council adopted Resolution No. 2022-58, determining there was a need to continue the local emergency; and WHEREAS, on July 5, 2022, the City Council adopted Resolution No. 2022-79, determining there was a need to continue the local emergency; and WHEREAS, on July 19, 2022, the City Council adopted Resolution No. 2022-84, determining there was a need to continue the local emergency; and WHEREAS, on August 16, 2022, the City Council adopted Resolution No. 2022- 87, determining there was a need to continue the local emergency; and WHEREAS, on September 20, 2022, the City Council adopted Resolution No. 2022-96, determining there was a need to continue the local emergency; and WHEREAS, on October 18, 2022, the City Council adopted Resolution No. 2022- 102, determining there was a need to continue the local emergency; and WHEREAS, on November 15, 2022, the City Council adopted Resolution No. 2022-112, determining there was a need to continue the local emergency; and WHEREAS, on December 6, 2022, the City Council adopted Resolution No. 2022- 121, determining there was a need to continue the local emergency; and WHEREAS, since March 4, 2022 in Los Angeles County, masks have no longer been required in most indoor settings, but continue to be strongly recommended by the LA County Health Department; and
WHEREAS, on September 22, 2022, the LA County Health Department issued a revised Health Officer Order to closely align with the State Public Health Officer’s September 20, 2022 guidance regarding masking in the following higher-risk settings:
correctional facilities, homeless shelters, emergency shelters, and cooling and heating centers; and
WHEREAS, pursuant to the September 22, 2022 Health Officer Order, the Health Officer strongly recommends, but no longer requires, that persons continue to mask on public transit and in transportation hubs; and
WHEREAS, pursuant to the September 22, 2022 Health Officer Order, in the following non-healthcare indoor settings, facilities may use the CDC COVID-19 Community Levels to determine the level of masking requirements within their facility:
state and local correctional facilities and detention centers, homeless shelters, emergency shelters and cooling and heating centers; and WHEREAS, pursuant to the September 22, 2022 Health Officer Order, masks are still required in all indoor healthcare settings; and
WHEREAS, on January 6, 2023, the LA County Health Department reported that Los Angeles County remains at the Medium Community Level on the Centers for Disease Control and Prevention’s (CDC) COVID-19 framework; and
WHEREAS, the City Manager has requested that the City Council review the need for continuing the local emergency in accordance with Section 8-7(a)(2) of the West Covina Municipal Code; and
WHEREAS, the City Council has reviewed the need for continuing the local emergency as required by West Covina Municipal Code section 8-7(a)(2); and WHEREAS, the City Council finds that the conditions resulting from the COVID-19 emergency are still beyond the control of the services, personnel, equipment, and facilities of the City and require the combined forces of other political subdivisions to combat.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council has reviewed the need for continuing the local emergency as required by West Covina Municipal Code section 8-7(a)(2), and determines, based on the foregoing recitals, that there is a need to continue the local emergency.
SECTION 2. This local emergency shall continue to exist until the City Council proclaims the termination of the local emergency. The City Council shall review the need for continuing the local emergency in the manner required by law.
SECTION 3. Pursuant to Resolution No. 2020-105, while the local emergency remains in effect, the City Manager shall limit the exercise of the powers granted to the City Manager, as the Director of Emergency Services, during a proclaimed local emergency pursuant to Section 8-7 of the West Covina Municipal Code, to actions directly related to responding to the COVID-19 pandemic.
SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
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. 2023-4 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. 3
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 AN ORDINANCE AMENDING ARTICLE VIII OF CHAPTER 2 OF
THE WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE
REGULATIONS
RECOMMENDATION:
It is recommended that the City Council adopt the following ordinance:
ORDINANCE NO. 2510 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING ARTICLE VIII OF CHAPTER 2 OF THE WEST COVINA
MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE REGULATIONS BACKGROUND:
Assembly Bill No. 571 (“AB 571”) amended California Government Code section 85301 to impose a default campaign contribution limit on cities and counties that do not impose campaign contribution limits, effective January 1, 2021. California Government Code section 85702.5 permits the City to, by ordinance or resolution, impose a campaign contribution limit that is different from the amount set forth in California Government Code section 85301(d).
The City of West Covina’s campaign finance regulations are codified in Article VIII (Campaign Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code. The City Council last updated Article VIII of Chapter 2 in 2015 through the adoption of Ordinance No. 2272.
Pursuant to Section 2-402 of Article VIII of Chapter 2, no person shall make, and no candidate shall receive from any person, any contribution to the campaign of any individual candidate for any City of West Covina elective office in excess of $500 in any calendar year. Section 2-402 provides that the amount shall be adjusted on January 1 of every odd-numbered year to reflect any increase or decrease in the Consumer Price Index for the prior year. Due to adjustments based on increases to the Consumer Price Index, the maximum contribution limit is currently $615.
Staff is presenting for the City Council's consideration proposed Ordinance No. 2510, which would increase the maximum contribution limit to $650 and make other updates to Article VIII.
On December 6, 2022, the West Covina City Council, by a 5-0 vote, introduced for first reading Ordinance No. 2510, proposing changes relating to campaign finance regulations. The City Council proposed additional changes and those changes are reflected for the second reading Ordinance No. proposed additional changes and those changes are reflected for the second reading Ordinance No. 2510.
DISCUSSION:
The proposed ordinance makes the following changes to Article VIII of Chapter 2 of the West Covina Municipal Code:
Increases the maximum contribution limit to $650
Provides that committees are subject to the contribution limit Adds a definitions section. The current provisions of Article VIII of Chapter 2 provide that the definitions set forth in the Political Reform Act apply to the provisions of Article VIII. The proposed ordinance similarly references the definitions set forth in the Political Reform Act, but also provides definitions for certain key terms, utilizing the definitions set forth in the Political Reform Act Renumbers and rearranges certain sections of Article VIII of Chapter 2 At introduction and first reading of the ordinance, the City Council directed staff to revise the ordinance so candidates and committees are both subject to the $650 contribution limit. At the City Council's direction, staff amended the ordinance to provide that committees are subject to the contribution limit and made other minor clarifying changes for consistency throughout the ordinance.
Staff recommends that the City Council adopt Ordinance No. 2510. The Ordinance will take effect on the 31st day following adoption, which is on or about February 18, 2023.
LEGAL REVIEW:
The City Attorney's Office has reviewed the ordinance and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve staff's recommendation; or
2. Provide alternative direction.
Prepared by: David Carmany, City Manager
Attachments
Attachment No. 1 - Ordinance No. 2510
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness Ordinance No. 2510
ORDINANCE NO. 2510
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AMENDING ARTICLE VIII OF
CHAPTER 2 OF THE WEST COVINA MUNICIPAL CODE
RELATING TO CAMPAIGN FINANCE REGULATIONS
WHEREAS, Assembly Bill No. 571 (“AB 571”) amended California Government Code section 85301 to impose a default campaign contribution limit on cities and counties that do not impose campaign contribution limits, effective January 1, 2021; and WHEREAS, California Government Code section 85702.5 permits the City to, by ordinance or resolution, impose a campaign contribution limit that is different from the amount set forth in California Government Code section 85301(d); and
WHEREAS, the City of West Covina’s campaign finance regulations are codified in Article VIII (Campaign Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code; and WHEREAS, the City Council last updated Article VIII of Chapter 2 in 2015 through the adoption of Ordinance No. 2272; and
WHEREAS, pursuant to Section 2-402 of Article VIII of Chapter 2, no person shall make, and no candidate shall receive from any person, any contribution to the campaign of any individual candidate for any City of West Covina elective office in excess of $500 in any calendar year. Section 2-402 provides that the amount shall be adjusted on January 1 of every odd-numbered year to reflect any increase or decrease in the Consumer Price Index for the prior year; and WHEREAS, due to adjustments based on increases to the Consumer Price Index, the maximum contribution amount is currently $615; and
WHEREAS, the City Council desires to update and clarify the City’s campaign finance regulations, including increasing the maximum contribution amount to $650 and providing that committees are subject to such limitation; and
WHEREAS, the City Council finds that transparency in local elections regarding financial contributions and influence are important to promoting the election process and ensuring a fair election process for all candidates; and
WHEREAS, the City Council also finds that the provisions of Article VIII of Chapter 2 are necessary to combat corruption and the appearance of corruption in the City’s election process; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The City Council finds that all of the recitals set forth herein are true and correct.
ATTACHMENT NO. 1
Ordinance No. 2510
SECTION 2. Amendment to Article VIII of Chapter 2. Article VIII (Campaign Contributions) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby amended to read as follows:
Sec. 2-400. Findings, declarations, and purpose.
In enacting this article, the city council finds and declares as follows:
(1) Findings and declarations.
a. Monetary contributions to political campaigns are a legitimate form of participation in the political process; however, the financial strength of certain persons, as defined herein, should not permit the exercise of a disproportionate, controlling, or corrupting influence in a local election of candidates.
b. The increasing costs of political campaigns have compelled candidates to take larger amounts of money from persons with specific financial stake in matters before the city council. This has caused a public perception that votes may be improperly influenced by monetary contributions.
c. The tendency for campaign contributions to be dominated by a small number of very large contributors undermines the integrity of the governmental process, the competitiveness of campaigns, and the public confidence in local officials and local agencies. d. High campaign costs are also forcing officeholders to spend more time on fundraising and less time on the public’s business. The constant pressure to raise contributions is distracting officeholders from urgent governmental matters. (2) Purpose. The city council enacts this article to accomplish the following purposes:
a. To improve methods of financing campaigns in order to ensure the public’s rightto-know, combat corruption, and the appearance of corruption, and undue influence, enable candidates to compete more equitably for public office, and promote citizen participation in the political process.
b. To prevent parties with a specific financial interest in the city’s decisions from exerting undue influence over those decisions by means of large campaign contributions. c. To allow candidates and officeholders to spend a lesser proportion of their time on fundraising and greater proportion of their time dealing with issues of importance to the city and its residents.
d. To improve the disclosure of contribution sources in reasonable and effective ways.
e. To restore public trust in governmental electoral institutions.
Sec. 2-400.1. Definitions.
The following terms as used in this article shall, unless the context already indicates otherwise, have the respective meanings set forth in this section. Terms not defined in this article Ordinance No. 2510
shall have the meaning ascribed to them in the Political Reform Act of 1974, California Government Code section 81000 et seq., and the regulations enacted by the California Fair Political Practices Commission.
Candidate has the meaning set forth in California Government Code section 82007, as amended, which defines a candidate as:
(1) Anyone who is listed on a ballot or is qualified to have write-in votes cast on their behalf counted by elections officials for nomination or election to any elective office. (2) Anyone who receives a contribution, makes an expenditure, or gives their consent for another person to receive a contribution or make an expenditure, to bring about the person’s nomination or election to an elective office, even if any of the following apply:
(A) The specific elective office for which the person will seek nomination or election is unknown at the time the contribution is received or the expenditure is made. (B) The person has not announced the candidacy or filed a declaration of candidacy. (3) An elected officer, including any elected officer who is the subject of a recall.
Committee has the meaning set forth in California Government Code section 82013, as amended, which defines a committee as any person or combination of persons who directly or indirectly does any of the following:
(1) Receives contributions totaling two thousand dollars ($2,000) or more in a calendar year.
(2) Makes independent expenditures totaling one thousand dollars ($1,000) or more in a calendar year; or
(3) Makes contributions totaling ten thousand dollars ($10,000) or more in a calendar year to or at the behest of candidates or committees.
Contribution has the meaning set forth in California Government Code section 82015, as amended, which defines a contribution as a payment, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, except to the extent that full and adequate consideration is received or if it is clear from the surrounding circumstances that the payment is not made for political purposes.
Person has the meaning set forth in California Government Code section 82047, as amended, which defines a person as an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.
Sec. 2-401. Campaign contribution reporting requirements.
Candidates, officeholders in positions of elective office in the city, and committees shall adhere to the following campaign contribution reporting requirements:
Ordinance No. 2510
(1) Provide full disclosure of any contribution in the amount of one hundred dollars ($100.00).
(2) Provide the names and addresses of all individuals who provide any contribution in the amount of one hundred dollars ($100.00) or more. (3) Require that all money contributions in the amount of one hundred dollars ($100.00) or more be made in the form of a written instrument containing the name of the contributor and the name of the payee and drawn from the account of the contributor or the intermediary, as defined in California Government Code section 84302.5. “Written instrument” includes, but is not limited to, check and credit card donations, but excludes money orders, traveler’s checks and cashier’s checks.
Sec. 2-402. Contributions by persons.
No person shall make, and no candidate or committee shall receive from any person, any contribution to the campaign of any candidate or any city measure in excess of six hundred fifty dollars ($650.00) in any calendar year. This amount shall automatically be adjusted on January 1 of every odd-numbered year to reflect any increase or decrease in the Consumer Price Index for the prior year utilizing the standard as established by the Bureau of Labor Statistics of the U.S.
Department of Labor for all urban consumers in the Los Angeles, Riverside and Orange County areas. This adjustment shall be rounded to the nearest one dollar ($1.00). This adjustment shall also be published on the city’s website, if it exists, and posted at three (3) public places for at least ninety (90) days from its effective date.
Sec. 2-403. Independent expenditures.
(a) Purpose. The purpose of this section is to ensure transparency of independent expenditures so that voters in city elections are provided information on contributors, contributions and expenditures in a timely manner.
(b) Definitions. For purposes of this section, the following definitions shall apply:
(1) Campaign communication means any of the following campaign related items:
a. More than two hundred (200) substantially similar pieces of campaign literature distributed within a calendar month, including, but not limited to, mailers, flyers, facsimiles, pamphlets, door hangers, e-mails, campaign buttons ten (10) inches in diameter or larger, and bumper stickers sixty (60) square inches or larger;
b. Posters, yard or street signs, billboards, super-graphic signs and similar items; c. Television, cable, satellite, internet and radio broadcasts; d. Newspaper, magazine, internet website banners and similar advertisements; or e. More than two hundred (200) substantially similar live or recorded telephone calls made within a calendar month.
(2) City candidate means any person who is a candidate for a city office.
Ordinance No. 2510
(3) City measure means any local measure placed on the ballot by the City of West Covina, including voter sponsored initiatives, recall and referendum measures, in an election which is governed by the California Elections Code.
(4) City office means any office of the City of West Covina that is filled by way of a vote of the people of the City of West Covina.
(5) Elective city officer means any member of the West Covina City Council, or any other city office that is filled by way of a vote of the people of the City of West Covina. (6) Individual means a living person contributing funds. (7) Independent expenditure means an expenditure made by any person or committee in connection with a communication which expressly advocates the election or defeat of a clearly identified candidate or the qualification, passage or defeat of a clearly identified measure, or taken as a whole and in context, unambiguously urges a particular result in an election but which is not made to or at the behest of the affected candidate or committee. (c) Reporting of independent expenditures. Disclosure of payments for independent expenditures shall be as follows:
(1) At any time, any person, including any committee, that makes or incurs independent expenditures that combine to one thousand dollars ($1,000.00) or more in support of or in opposition to any candidate for elective city office or any city measure shall report to the West Covina City Clerk’s office within twenty-four (24) hours by certified mail, fax or e-mail each time this threshold is reached. The form of notification is described in subsections (c)(2) and (c)(3) of this section, and the city clerk shall post this notification on the city’s website immediately upon receipt, but no later than the next business day.
(2) The notification shall consist of a declaration made under penalty of perjury and signed by the person or officer and the treasurer of the group making the expenditure, specifying the following: (i) if applicable, each candidate who was supported or opposed by the expenditure; (ii) the amount spent to support or oppose each candidate or measure; (iii) if applicable, whether the measure was supported or opposed; and, (iv) that the expenditure was not behested by the candidate or candidates who benefited from the expenditure. (3) In addition, the notification shall include the date and amount of the payment, a description of the type of communication for which the payment was made or incurred, the name and address of the person making the payment, the name and address of the payee or committee, and a copy of the mailing or advertisement, or a copy of the script or recording of the call, transmission, or advertisement. The West Covina City Clerk shall determine the reporting form to fulfill the notification requirement.
(d) Additional requirements for campaign communications funded by independent expenditures.
(1) Campaign communications funded by an independent expenditure supporting or opposing city candidates or city measures shall include the following disclosures: "This communication was not authorized by candidate (name) for (office)" or "(name) initiative proponent/opponent."
Ordinance No. 2510
(2) Campaign communications funded by an independent expenditure supporting or opposing city candidates or city measures shall include the names of the two (2) largest contributors within the preceding one hundred eighty (180) days from the date the communication is sent, along with the donors’ city and state of residence. The disclosure required by this subsection shall be presented in a clear and conspicuous manner so as to give the reader, observer or listener adequate notice as follows:
a. For printed campaign communications that measure no more than twenty-four (24) inches by thirty-six (36) inches, all disclosure statements required by this subsection shall be printed using a typeface that is easily legible to an average reader or viewer, but is not less than ten-point type in contrasting color to the background on which it appears. For oversize printed campaign communications, all disclosure statements shall constitute at least five (5) percent of the height of the material and be printed in contrasting color. b. For video broadcasts including television, satellite, internet, telephone and cable campaign communications, the information shall be both written and spoken either at the beginning or at the end of the communication, except that if the disclosure statement is written for at least five (5) seconds of a broadcast of thirty (30) seconds or less or ten (10) seconds of a sixty-second broadcast, a spoken disclosure statement is not required. The written disclosure statement shall be of sufficient size to be readily legible to an average viewer and air for not less than five (5) seconds.
c. For audio, telephone call or radio advertisement campaign communications, the disclosures shall be spoken in a clearly audible manner at the same speed and volume as the rest of the telephone call or radio advertisement at the beginning or end of the communication and shall last at least three (3) seconds. The requirement shall be satisfied by using the words "on behalf of" immediately followed by the name of the candidate or committee that pays for the communication.
Sec. 2-404. Definitions.
For purposes of sections 2-404.1 and 2-404.2 of this article, the following words and phrases shall have the meanings ascribed to them in this section:
Affected party means a party to a city contract, a subcontractor under a city contract, an applicant seeking entitlement, a contractor of applicant seeking entitlement, or a subcontractor of applicant seeking entitlement.
Applicant seeking entitlement means any person who has filed an application or letter seeking approval of an entitlement with the city, successor agency, or housing authority, or any person who is an owner or lessee of property on whose behalf an application or letter seeking approval of an entitlement is filed.
Application is pending means an application or letter which is subject to review, hearing or consideration by the council, successor agency, CDC, and/or housing authority and the application or letter seeking an entitlement has been filed and, either will be set for review, hearing or other consideration by the council, successor agency, or housing authority as a matter of right, or has been formally appealed to the council, successor agency, CDC or housing authority. The three examples set forth below are intended to provide interpretive guidance:
Ordinance No. 2510
(1) An application for a zone change is filed. Since a zone change can only be effectuated by the council, upon filing the application it would be deemed pending before the council;
(2) An application for a conditional use permit is filed. Only at such time as the grant or denial of a conditional use permit is appealed to the council would it be pending before the council;
(3) Any application for which the council is either the sole determining body or as to which a final decision must be made by the council.
CDC means the West Covina Community Development Commission.
City contract means any agreement or contract, including any amendment or modification to an agreement or contract, with the city, successor agency, CDC or housing authority, where such contract or agreement is subject to approval by the council, successor agency, CDC, or housing authority for (a) the rendition of personal services; (b) construction and/or the furnishing of any material, supplies or equipment; (c) the sale, lease, exchange, or transfer of any land or building to or from the city, successor agency, CDC, or housing authority; or (d) a grant, loan, loan guaranty, land write down, or other similar form of financial assistance. "Contract" does not include a contract awarded pursuant to a competitive bidding process under the Public Contracts Code, a transfer or exchange of land to or from one public agency to another public agency, or the transfer of an easement, license, or right-of-way in the ordinary course of a development project.
Contractor of applicant seeking entitlement means a person who is, or has been promised to be, a party to a contract as an architect, design professional, engineer, or general or prime contractor with an applicant seeking entitlement, as defined herein, which contract has, or would have a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more.
Council means the city council of the City of West Covina.
Design professional means a person who performs services in the nature of designing structures, buildings, interiors, landscape and/or hardscape but does not have any particular license.
Entitlement means permit, license, conditional use permit, variance, site plan, architectural or design review (at any stage), franchise, administrative exception, parking reduction, review of plans, development agreement, disposition and development agreement, exclusive negotiation agreement, owner participation agreement, affordable housing agreement, financial assistance for a proposed project, or any other land use entitlement which is discretionary and not ministerial in nature; provided, however, that entitlements for residential developments of five (5) units or less or additions to a single-family home, duplex, tri-plex or four-plex shall be expressly excluded.
Housing authority means the housing authority of the City of West Covina.
Related persons includes any of the following persons with respect to a party with a city contract, a subcontractor under a city contract, applicant seeking entitlement, contractor of applicant seeking entitlement, and subcontractor of applicant seeking entitlement: a member of its board of directors, its chairperson, its chief executive officer/president, its chief financial officer, its chief operating officer, any person with ownership interest of more than ten (10) percent in Ordinance No. 2510
such person, and/or any committee, as defined in this chapter, that is owned or controlled by such person.
Subcontract means a contract subordinate to another contract made between the contracting parties which includes an agreement for a subcontractor to perform all or part of certain work to be performed by an architect, design professional, engineer, general or prime contractor.
Subcontractor means a person who has entered into a contract for the performance of all or a portion of the work undertaken under an agreement with an architect, design professional, engineer, or general or prime contract, usually by a general or prime contractor.
Subcontractor of applicant seeking entitlement means a person who is, or has been promised to be, a party to a subcontract as an architect, design professional, engineer, or to perform other work with a "contractor of applicant seeking entitlement" as defined herein, which subcontract has, or would have a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more.
Successor agency means the successor agency to the West Covina Redevelopment Agency.
Sec. 2-404.1. Campaign contributions from applicants and contractors. (a) No person who is an applicant or proposer to be a party to a city contract, or who is a party to a city contract, as defined in section 2-403, other affected party, or related persons, shall make a contribution to an individual holding city elective office where the city contract has a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a combination or series of such contracts or agreements having a value of thirty thousand dollars ($30,000.00) or more.
(b) No member of the council, nor the city clerk or city treasurer shall receive a contribution from a person who is a party to a city contract, or an applicant or proposer to be a party to a city contract, as defined in section 2-403, or related persons, where the city contract has a total anticipated or actual value of thirty thousand dollars ($30,000.00) or more, or a combination or series of such contracts, having a value of thirty thousand dollars ($30,000.00) or more.
(c) No person acting as a subcontractor under a subcontract through a city contract, as defined in section 2-403, or related persons, shall make a contribution to a council member where an individual subcontract has a total anticipated or actual value of fifteen thousand dollars ($15,000.00) or more, or a combination or series of such individual subcontracts with the same subcontractor, for the same or different projects with the aggregate value of fifteen thousand dollars ($15,000.00) or more.
(d) No member of the council shall receive a contribution from a person who is party to a subcontract under a city contract, as defined in section 2-403, or related persons, where the subcontract has a total anticipated or actual value of fifteen thousand dollars ($15,000.00) or more, or a combination or series of such subcontracts having a value of fifteen thousand dollars ($15,000.00) or more.
Ordinance No. 2510
(e) No applicant seeking entitlement, contractor of an applicant seeking entitlement or a subcontractor of an applicant seeking entitlement, or related persons, shall make a contribution to a council member while such application is pending before the council, successor agency, CDC, or housing authority and for a period of twelve (12) months after the last and final action on that entitlement by the council, successor agency, CDC or housing authority.
Sec. 2-404.2. Posting of list of contractors, subcontractors, vendors and applicants for entitlements.
City staff shall prepare a list or lists of: Applicants or proposers for city contracts in the amount of thirty thousand dollars ($30,000.00) or more; parties to city contracts in the amount of thirty thousand dollars ($30,000.00) or more; subcontractors under city contracts with anticipated or actual value of fifteen thousand dollars ($15,000.00) or more, individually or in the aggregate; applicants seeking entitlements; contractors of applicants seeking entitlements; and, subcontractors of applicants seeking entitlements, while such application is pending before the council or other legislative body of the city and for twelve (12) months thereafter. Such list or lists shall be posted on the city’s website and made available to all elected officials and candidates.
Sec. 2-405. Enforcement.
(a) Any person who believes that a violation of this article has occurred may file a complaint with the city attorney. The city attorney shall investigate and shall have investigative powers as are necessary for the performance of his or her duties under this article. (b) The city attorney, or any registered voter of the city, may bring a civil action to enjoin violations of or compel compliance with the provisions of this article.
Sec. 2-405.1. Penalties.
(a) Any person who knowingly or willfully violates any provision of this article shall be guilty of a misdemeanor, and on conviction thereof shall be punishable by a fine of not more than one thousand dollars ($1,000.00) for each violation or by imprisonment of not more than six (6) months or both such fine and imprisonment.
(b) Notwithstanding subsection (a), any person who intentionally or negligently violates any of the provisions of this article may be subject to a civil action brought by the city attorney acting as the civil prosecutor for an amount up to one thousand dollars ($1,000.00) for each violation, or three (3) times the amount not reported, or the amount received in excess of the amount allowable pursuant to this article, whichever is greater.
SECTION 3. Environmental Compliance. Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA Guidelines (Sections 15000 et seq.), the City Council finds that this Ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment, either directly or indirectly, and that therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exception).
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions Ordinance No. 2510
of this Ordinance. The City Council of the City of West Covina hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
SECTION 5. Certification. The City Clerk shall certify passage of this ordinance and shall cause the same to be published as required by law.
SECTION 6. Effective Date. This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage.
PASSED, 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 Ordinance No. 2510 was introduced at a regular meeting of the City Council held on the 6th day of December, 2022, and adopted at a regular meeting of the City Council 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. 4
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 NO. 2023-5 RATIFYING PROCLAMATION NO. 2023-01 PROCLAIMING THE EXISTENCE OF A LOCAL EMERGENCY RELATED TO
SEVERE WINTER STORMS
RECOMMENDATION:
Staff recommends that the City Council adopt the following resolution:
RESOLUTION NO. 2023-5 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, RATIFYING PROCLAMATION NO. 2023-1 PROCLAIMING THE
EXISTENCE OF A LOCAL EMERGENCY RELATED TO SEVERE WINTER STORMS BACKGROUND:
California has experienced significant winter storms since January 1, 2023.
On January 4, 2023, Governor Newsom proclaimed a state of emergency throughout California in order to support the ongoing response to the winter storms. The Governor's proclamation supports emergency relief efforts including authorizing the mobilization of the California National Guard to support disaster response, directing Caltrans to request immediate assistance through the Federal Highway Administration’s Emergency Relief Program to support highway repairs and other support for local response and recovery efforts.
On January 8, 2023, Governor Newsom requested a Presidential Emergency Declaration to support ongoing storm response and recovery efforts.
On January 8, 2023, President Biden declared that an emergency exists in the State of California and ordered Federal assistance to supplement State, tribal, and local response efforts due to the emergency conditions resulting from successive and severe winter storms, flooding, and mudslides beginning on January 8, 2023, and continuing.
The President’s action authorizes the Department of Homeland Security, Federal Emergency Management Agency (FEMA), to coordinate all disaster relief efforts which have the purpose of alleviating the hardship and suffering caused by the emergency on the local population, and to provide appropriate assistance for required emergency measures to save lives and to protect property and public health and safety, and to lessen or avert the threat of a catastrophe in several counties throughout California, including Los Angeles County.
California, including Los Angeles County.
On January 10, 2023, Los Angeles County proclaimed a local emergency due to the winter storms.
The City's ability to mobilize local resources, coordinate response and seek future reimbursement by the State and Federal governments will be critical to successfully responding to damage caused by the winter storm.
DISCUSSION:
Government Code section 8558 defines a local emergency as “the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as air pollution, fire, flood, storm, epidemic, riot, drought, … which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other political subdivisions to combat.”
Pursuant to Government Code section 8630, the City Council, or an official designated by ordinance of the City Council, can proclaim the existence of a local emergency. Under West Covina Municipal Code (WCMC) section 8-7(a)(1), the City Manager, as the Director of Emergency Services, can proclaim the existence of a local emergency. Once the existence of a local emergency is proclaimed, neighboring jurisdictions and the State have the power to provide mutual aid to address the emergency conditions.
Pursuant to Government Code section 8630, if proclaimed by an official designated by ordinance, the local emergency cannot remain in effect for more than seven (7) days unless it is ratified by the City Council. Further, Government Code section 8630 requires the City Council to review the need for continuing the local emergency at least every 60 days until the local emergency is terminated, and requires the City Council to proclaim the termination of the local emergency at the earliest possible date that conditions warrant. Pursuant to WCMC section 8-7(a)(2), the City Manager may request that the City Council review the need for continuing the local emergency at least once every thirty (30) days until the City Council terminates the local emergency.
As authorized by Government Code section 8630 and WCMC section 8-7(a)(2), on January 11, 2023, the Acting City Manager, as the City's Acting Director of Emergency Services, proclaimed a local emergency due to the severe winter storms that began on January 1, 2023. The City Manager is requesting that the City Council ratify the proclamation of the local emergency.
LEGAL REVIEW:
The City Attorney’s Office has reviewed and approved the proposed resolution as to form.
OPTIONS:
The City Council has the following options:
1. Approve staff's recommendation; or
2. Provide alternative direction.
Prepared by: David Carmany, City Manager
Attachments
Attachment No. 1 - Resolution No. 2023-5
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
RESOLUTION NO. 2023-5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, RATIFYING
PROCLAMATION NO. 2023-01 PROCLAIMING THE
EXISTENCE OF A LOCAL EMERGENCY RELATED TO
SEVERE WINTER STORMS
WHEREAS, the California Emergency Services Act (Government Code Section 8550 et seq.), authorizes the City Council, or an official designated by ordinance of the City Council, to proclaim a local emergency when the City is threatened by conditions of disaster or extreme peril to the safety of persons and property within the City that are, or are likely to be, beyond the control of the services, personnel, equipment, and facilities of the City; and
WHEREAS, if the City Council is not in session, West Covina Municipal Code Section 8-7 empowers the City Manager, as the Director of Emergency Services, to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity which is, or is likely to be, beyond the control of the services, personnel, equipment, and facilities of the City, requiring the combined forces of other political subdivisions to combat; and WHEREAS, since January 1, 2023, as a result of a series of atmospheric river systems, Los Angeles County, including the City of West Covina, has been impacted by high winds, substantial precipitation, and flooding; and WHEREAS, the National Weather Service has forecasted that additional and continuing storms related to this series of atmospheric river systems threat Los Angeles County, including the City of West Covina; and
WHEREAS, conditions of disaster or extreme peril to the safety of persons and property exist due to the severe winter storms; and
WHEREAS, it is anticipated that such conditions are beyond the control of the services, personnel, equipment, and facilities of the City and require the combined forces of other political subdivisions to combat; and
WHEREAS, the City’s ability to mobilize local resources, coordinate interagency response, accelerate procurement of vital supplies, use mutual aid, and allow for future reimbursement by the state and federal governments will be critical to responding to this emergency; and
WHEREAS, on January 11, 2023, the Acting City Manager, as the City’s Acting Director of Emergency Services, proclaimed a local emergency as authorized by Government Code section 8630 and West Covina Municipal Code section 8-7(a)(1). A ATTACHMENT NO. 1
true and correct copy of Proclamation No. 2023-01 is attached hereto as Exhibit “A.” WHEREAS, the City Council hereby finds that conditions of disaster or of extreme peril to the safety of persons and property within the City of West Covina have arisen due to the severe winter storms that started on January 1, 2023.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Acting City Manager’s proclamation of local emergency, Proclamation No. 2023-01, dated January 11, 2023, is hereby ratified.
SECTION 2. As contemplated in the Emergency Services Act contained in Government Code Section 8550 et seq. and Chapter 8 of the West Covina Municipal Code, a local emergency exists based on the existence of conditions of disaster or of extreme peril to the safety of persons and property caused by the severe winter storms that started on January 1, 2023, as detailed in the recitals set forth above.
SECTION 3. The area of the City which is endangered/imperiled is the entire City.
SECTION 4. During the existence of this local emergency, the powers, functions, and duties of the emergency organization of this City shall be those prescribed by State law and by ordinances, resolutions, and orders of this City, including but not limited to the City’s Emergency Plan.
SECTION 5. This local emergency shall continue to exist until the City Council proclaims the termination of this local emergency. The City Council shall review the need for continuing the local emergency in the manner required by law.
SECTION 6. A copy of this resolution and the emergency proclamation be forwarded to the Director of the California Governor’s Office of Emergency Services requesting that the Director find it acceptable in accordance with State law; that recovery assistance be made available under the California Disaster Assistance Act; and that the State expedite access to State and Federal resources and any other appropriate Federal disaster relief programs.
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. 2023-5 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
PROCLAMATION NO. 2023-01
AGENDA ITEM NO. 5
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 PROFESSIONAL SERVICES AGREEMENT FOR BUILDING AND SAFETY SERVICES WITH TRANSTECH ENGINEERS, INC.
RECOMMENDATION:
It is recommended that the City Council:
Award Request for Proposals No. 71-020 for Building and Safety Services to Transtech Engineers, Inc.
1. Authorize the City Manager to execute a Professional Services Agreement with Transtech Engineers, Inc. for Building and Safety services for a three-year term, commencing January 18, 2023 and ending January 17, 2026, with two optional one-year extensions contingent upon satisfactory performance, in substantially the form as attached and in such final form as approved by the City Attorney;
2. Authorize the City Manager to approve any extensions and execute amendments providing for such extensions.
3. BACKGROUND:
The City contracted out building plan services starting in August 2016. In November 2018, the Chief Building Official was a contractor, and starting in August 2019, all Building and Safety services were provided through contract services. In December 2020, the entered into a Professional Services Agreement ("Agreement") with Transtech Engineers, Inc. (Transtech) for Building and Safety services for an initial one-year term.
In July 2021, the City amended the Agreement with Transtech to include landscape plan check services and increased the maximum annual compensation. Pursuant to the Agreement, the term was extended through December 31, 2022. To ensure no lapse in Building & Safety services, the City extended the Agreement through January 17, 2023.
DISCUSSION:
A Request for Proposals for Building and Safety consultant services was posted on PlanetBids on November 3, 2022. The City received five proposals from qualified firms by the December 1, 2022 deadline.
Government Code sections 4525 through 4528 require that State and local agencies use Qualifications Based Selection (QBS) to procure services for architecture, landscape architecture, engineering, environmental, land surveying and construction management services. The purpose of the statutes is to assure that public agencies - and therefore the public - receive design services from the best design professionals.
Proposals were reviewed by Community Development Department staff for relevant experience, qualifications of personnel, size of the firm and the cost of services. The five firms were fairly equally matched in terms of experience, qualifications, and firm size.
The table below provides a summary of the proposed fee structure by company:
Company Proposed Fee Structure Average Hourly Rates*
4Leaf, Inc. 75% of Plan Review Fees $108.33
BPR Consulting Group
62% of Plan Review Fees
150% Expedited Plan Review Fees
Inspections and permit counter
charged hourly
$106.67
Bureau Veritas N/A $117.50
CSG Consultants, Inc.
70% of Full Plan Review & Building
Plan Check Fees
45% Plumbing Mechanical/Electrical
or 70% of PME
45% Structural Plan Review
100% Expedited plan check
65% Permit Fees
$108.67
Transtech Engineers, Inc.
$150,000 50%
$150,001 - $250,000 40%
$250,001 + $35%
Minimum monthly fee of $50,000
(Includes inspection, permit counter,
plan reviews, and expedited plan
check fees)
$105.33
*Average Hourly rates of Chief Building Official, Building Inspector, and Permit Technician Since all firms were fairly equal in terms of qualifications, staff recommends awarding the RFP to Transtech as they have proposed the most cost-effective fee schedule.
Transtech is proposing to keep the existing sliding scale (please see table above) comparing with other firms that differentiate fee percentage based on type of plan review services and propose higher fee percentages (50% compared to up to 75%).
In addition, Transtech has been providing excellent customer service to our residents, contractors and builders. Transtech has been a great partner, adapting their service model to adjust for the pandemic, including developing a scheduling system for Planning, Fire, Engineering and Building. The City has also undertaken the task of updating the City's permitting software, which the transition is anticipated to commence in the coming months. Transtech also works collaboratively with our other departments to ensure internal customer service. Most recently, they have worked diligently to update the City's Building Code, not only to meet the new 2023 Los Angeles County Building Code, but simplifying it to make it easier to reference.
The City's proposed new agreement with Transtech also includes landscape plan check services. In continuing to hire Transtech, West Covina will be able to continue to work with Withers & Sangren, Ltd., which has provided excellent services.
Lastly, if the City were to change Building and Safety firm, there would be additional costs for the transition, and it may delay the transition to the new permitting software.
Overall, Transtech continues to be the most well-rounded firm with the most competitive price. Transtech will continue to provide all Building and Safety services, including Chief Building Official, building plan check, inspections and permit issuance, and landscape plan check services through Withers & Sandgren. Transtech is prepared to continue services immediately.
LEGAL REVIEW:
The City Attorney's Office has reviewed the Professional Services Agreement and approved it as to form.
OPTIONS:
The City Council has the following options:
1. Approve staff's recommendation; or
Select another firm based on those that submitted proposals and extend the contract with Transtech for the transition period; or
2. 3. Provide alternative direction.
Prepared by: Paulina Morales, Assistant City Manager
Fiscal Impact
FISCAL IMPACT:
The currently budget for building and safety contractual services is for $1,715,220 (account no. 110.71.4120.6120) which is more than adequate to fund the minimum monthly rate of $50,000 ($600,000 annually). If permit and plan check revenue increases, staff will request to increase appropriations to pay TRANSTECH accordingly. All costs are paid from building permit and plan check revenues.
Contract services for building and safety ranged from $924k to over $2.2 million over the past three fiscal years, as shown in the table below.
Fiscal Year 2022 2021 2020
Total Building Revenue 7,855,727 4,054,384 2,012,993
Cost for Contract Services 2,284,001 1,308,803 924,991
Attachments
Attachment No. 1 - Agreement with Transtech
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Enhance City Image and Effectiveness
Achieve Fiscal Sustainability and Financial Stability
Expand Economic Development Opportunities
.
1 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
CITY OF WEST COVINA
PROFESSIONAL SERVICES AGREEMENT
WITH
TRANSTECH ENGINEERS, INC.
FOR
BUILDING & SAFETY SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT is made and entered into as of January 18, 2023 (“Effective Date”), by and between the CITY OF WEST COVINA, a municipal corporation (“City”), and TRANSTECH ENGINEERS, INC., a California corporation (“Consultant”).
RECITALS
A. City proposes to utilize the services of Consultant as an independent contractor to City to provide Building and Safety Services, as more fully described herein; and B. Consultant represents that it has that degree of specialized expertise contemplated within California Government Code Section 37103, and holds all necessary licenses to practice and perform the services herein contemplated; and
C. City and Consultant desire to contract for the specific services described in Exhibit “A” and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and
D. No official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement; and
E. Consultant responded to the City’s Request for Proposals dated November 3, 2022 (RFP #71-020) incorporated via this reference as if fully set forth herein, and Consultant’s response to the Request for Proposals was a material inducement to the City ultimately entering into this agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:
1.0. SERVICES PROVIDED BY CONSULTANT
1.1. Scope of Services. Consultant shall provide the professional services described in Consultant’s Proposal, attached hereto as Exhibit “A” and incorporated herein.
1.2. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by professional consultants in similar fields and circumstances in accordance with sound professional practices. Consultant also warrants that it is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect ATTACHMENT NO. 1
.
2 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations. City officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of the Consultant to comply with this section.
1.3. Performance to Satisfaction of City. Consultant agrees to perform all the work to the reasonable satisfaction of the City. Evaluations of the work will be conducted by the City Manager or his or her designee. If the quality of work is not satisfactory, City in its discretion has the right to:
(a) Meet with Consultant to review the quality of the work and resolve the matters of concern;
(b) Require Consultant to repeat the work at no additional fee until it is satisfactory; and/or
(c) Terminate the Agreement as hereinafter set forth.
1.4. Warranty. Consultant warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement.
1.5. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or mental disability, medical condition, genetic information, pregnancy, marital status, sex, gender, gender identity, gender expression, sexual orientation, or military or veteran status, except as permitted pursuant to Section 12940 of the Government Code.
1.6. Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other consultants for services similar to the services that are subject to this Agreement or may have its own employees perform services similar to those services contemplated by this Agreement.
1.7. Confidentiality. Employees of Consultant in the course of their duties may have access to financial, accounting, statistical, and personnel data of private individuals and employees of City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement.
1.8. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code Section 6250 et seq.). .
3 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in California Government Code Section 6254.7, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The City shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the court.
2.0. COMPENSATION AND BILLING
2.1. Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit A. City agrees that Consultant’s minimum monthly compensation shall be Fifty Thousand Dollars ($50,000.00).
2.2. Additional Services. Consultant shall not receive compensation for any services provided outside the scope of services specified in the Consultant’s Proposal unless the City, prior to Consultant performing the additional services, approves such additional services in writing. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable. Should the City request in writing additional services that increase the Scope of Services, an additional fee based upon the Consultant’s standard hourly rates shall be paid to the Consultant for such additional services.
2.3. Method of Billing. Consultant may submit invoices to the City for approval on a progress basis, but no more often than once a month. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. Each invoice shall describe in detail the services performed, the date of performance, and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.
2.4. Records and Audits. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement.
3.0. TIME OF PERFORMANCE
3.1. Commencement and Completion of Work. Unless otherwise agreed to by the parties, the professional services to be performed pursuant to this Agreement shall commence within five (5) days from the Effective Date of this Agreement. Failure to commence work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement.
3.2. Excusable Delays. Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party. If a delay beyond the control of the Consultant is encountered, a time extension may be mutually agreed upon in writing by the City and the Consultant. The Consultant shall present documentation satisfactory to the City to substantiate any request for a time extension. .
4 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
4.0. TERM AND TERMINATION
4.1. Term. This Agreement shall commence on Effective Date and continue for a period of three (3) years, ending on January 17, 2026, unless previously terminated as provided herein. Thereafter, this Agreement may be extended for a maximum of two (2) successive one (1) year periods. Such extensions, if any, will be evidenced by a written amendment to this Agreement.
4.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time, by providing at least fifteen (15) days prior written notice to Consultant. In the event of such termination, Consultant shall immediately stop rendering services under this Agreement unless directed otherwise by the City. If the City suspends, terminates or abandons a portion of this Agreement such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement.
If the Consultant defaults in the performance of any of the terms or conditions of this Agreement, it shall have ten (10) days after service upon it of written notice of such default in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement.
The City also shall have the right, notwithstanding any other provisions of this Agreement, to terminate this Agreement, at its option and without prejudice to any other remedy to which it may be entitled to at law, in equity, or under this Agreement, immediately upon service of written notice of termination on the Consultant, if the latter should:
a. Be adjudged a bankrupt;
b. Become insolvent or have a receiver of its assets or property appointed because of insolvency;
c. Make a general assignment for the benefit of creditors; d. Default in the performance of any obligation or payment of any indebtedness under this Agreement;
e. Suffer any judgment against it to remain unsatisfied or unbonded of record for thirty (30) days or longer; or
f. Institute or suffer to be instituted any procedures for reorganization or rearrangement of its affairs.
4.3. Compensation. In the event of termination, City shall pay Consultant for reasonable costs incurred and professional services satisfactorily performed up to and including the effective date of the City’s written notice of termination, within forty-five (45) days after the effective date of the notice of termination or the final invoice of the Consultant, whichever occurs last. Compensation for work in progress shall be prorated based on the percentage of work .
5 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
completed as of the effective date of termination in accordance with the fees set forth herein.
4.4. Documents. In the event of termination of this Agreement, all documents prepared by Consultant in its performance of this Agreement including, but not limited to, finished or unfinished design, development and construction documents, data studies, drawings, maps and reports, shall be delivered to the City within ten (10) days of the effective date of the notice of termination, at no cost to City.
5.0. INSURANCE
5.1. Minimum Scope and Limits of Insurance. Consultant shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best’s rating of no less than A:VII, and approved by City:
(a) Broad-form commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00) per occurrence, Four Million Dollars ($4,000.000.00) general aggregate. (b) Business automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00) combined single limit per accident for bodily injury and property damage.
(c) Workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Consultant agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Consultant for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.
By execution of this Agreement, the Consultant certifies as follows:
I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers’ Compensation or to undertake self-insurance before commencing any of the work.
The Consultant shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers’ Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the consultant to comply with this section.
.
6 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
(d) Professional errors and omissions (“E&O”) liability insurance with policy limits of not less than One Million Dollars ($1,000,000.00), combined single limits, per occurrence or claim, and Two Million Dollars ($2,000,000.00) aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability. If the policy is written as a “claims made” policy, the retroactivity date shall be prior to the start of the work set forth herein.
Consultant shall obtain and maintain said E&O liability insurance during the life of this Agreement and for five (5) years after completion of the work hereunder. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the effective date of this Agreement, Consultant shall purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work.
If the Consultant maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
5.2. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions:
(a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Consultant pursuant to its contract with the City; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; automobiles owned, leased, hired, or borrowed by the Consultant.
(b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Consultant’s insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy.
(d) Waiver of Subrogation: Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
(e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, .
7 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
its officers, officials, agents, employees, and volunteers. (f) Coverage Applies Separately: The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
5.3. Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
5.4. Certificates of Insurance. Consultant shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
5.5. Non-limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement.
6.0. GENERAL PROVISIONS
6.1. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing, and signed by the parties in interest at the time of such modification.
6.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.
Consultant shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Consultant called for by this Agreement, except as otherwise expressly provided in this Agreement.
6.3. Key Personnel. It is the intent of both parties to this Agreement that Consultant shall make available the professional services of Ahmad Ansari, who shall coordinate directly with City. Any substitution of key personnel must be approved in advance in writing by City’s Representative.
6.4. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery, Email or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such .
8 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
communication is sent by personal delivery; b) at the time of transmission if such communication is sent by Email; and c) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.
IF TO CONSULTANT: IF TO CITY:
Transtech Engineers, Inc.
13367 Benson Avenue
Chino, CA 91710
City of West Covina
1444 West Garvey Ave. South
West Covina, CA 91790
Tel: (949) 702-5612 Tel: (626) 939-8401
Email: [email protected]
Attn: Ahmad Ansari
Email: [email protected]
Attn: Paulina Morales
6.5. Attorneys’ Fees. If litigation is brought by any party in connection with this Agreement against another party, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.
6.6. Governing Law. This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California.
6.7. Assignment. Consultant shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Consultant’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement. Regardless of City’s consent, no subletting or assignment shall release Consultant of Consultant’s obligation to perform all other obligations to be performed by Consultant hereunder for the term of this Agreement.
6.8. Indemnification and Hold Harmless.
(a) General Indemnification. Other than in the performance of design professional services, and to the fullest extent permitted by law, Consultant agrees to defend, with counsel of City’s choosing, indemnify, and hold harmless the City, its elected and appointed officials, officers, agents and employees, at Consultant’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Consultant, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts .
9 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Consultant, its employees, and/or authorized subcontractors under this Agreement, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.
(b) Indemnification for Design Professional Services. To the fullest extent permitted by law, Consultant agrees to defend, with counsel of City’s choosing, indemnify, and hold harmless the City, its elected and appointed officials, officers, agents and employees, at Consultant’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the Consultant, its employees, and/or authorized subcontractors, in the performance of design professional services under this Agreement by a “design professional,” as such term is defined in California Civil Code section 2782.8(c).
The defense obligation provided for hereunder shall apply without any advance showing of negligence, recklessness or willful misconduct of the Consultant, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, recklessness, or willful misconduct of the Consultant, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon such negligence, recklessness, or willful misconduct, whether or not the Consultant, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Consultant shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. In no event shall the cost to defend charged to Consultant exceed Consultant’s proportionate percentage of fault.
However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Consultant’s Proposal, which shall be of no force and effect.
6.9. Independent Contractor. Consultant is and shall be acting at all times as an independent contractor and not as an employee of City. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.
Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Consultant shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, .
10 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
Unemployment Compensation, and other payroll deductions for Consultant and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Consultant shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.
6.10. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
6.11. Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation which City might require.
6.12. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by Consultant. Consultant shall deliver to City any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files audio tapes or any other related items as requested by City or its authorized representative, at no additional cost to the City. Consultant or Consultant’s agents shall execute such documents as may be necessary from time to time to confirm City’s ownership of the copyright in such documents.
6.13. Electronic Safeguards. Consultant shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information that could result in the .
11 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
unauthorized disclosure, misuse, alteration, destruction or other compromise of the information.
Consultant shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment.
6.14. Economic Interest Statement. Consultant hereby acknowledges that pursuant to Government Code Section 87300 and the Conflict of Interest Code adopted by City, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advice under this Agreement, prior to the commencement of work, unless waived by the City Manager.
6.15. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Consultant’s services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Consultant covenants that none of Consultant’s officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be used by Consultant as an officer, employee, agent, or subconsultant.
Consultant further covenants that Consultant has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Consultant and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement.
6.16. Prohibited Employment. Consultant will not employ any regular employee of City while this Agreement is in effect.
6.17. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.
6.18. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.
6.19. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Consultant and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.
6.20. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
.
12 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
6.21. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
6.22. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.
6.23. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
6.24. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.
6.25. Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and may be executed by electronic signatures. All counterparts shall be construed together and shall constitute one agreement. Delivery of an executed counterpart of this Agreement by a .pdf data file or other scanned executed counterpart by email shall be equally as effective as delivery of a manually executed counterpart of this Agreement. Each duplicate and counterpart shall be equally admissible in evidence, and each shall fully bind each party who has executed it. The parties waive all right to challenge the admissibility or authenticity of this Agreement in a court of law based solely on the absence of an original signature.
6.26. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.
6.27. Taxpayer Identification Number. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service.
[SIGNATURE PAGE FOLLOWS.]
.
1 Transtech Engineers, Inc.
Building and Safety Services
Form Revised August 2022
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.
CITY OF WEST COVINA,
A municipal corporation
__________________________________ Date: __________________________ David N. Carmany
City Manager
CONSULTANT
__________________________________ Date: __________________________ Allen Cayir
President
__________________________________ Date: __________________________ Sybil Cayir
Secretary
ATTEST:
__________________________________
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
__________________________________ Date: __________________________ Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
__________________________________ Date: __________________________ Lisa Handy
Interim Human Resources and Risk Management
Director
.
EXHIBIT A
CONSULTANT’S PROPOSAL
Proposal
BUILDING
AND
SAFETY
SERVICES
Submitted To
City of WEST COVINA
1444 W. Garvey Avenue SOUTH
West Covina, CA 91790
Attn.: Maria Delira, Purchasing Manager
Submitted By
TRANSTECH Engineers, Inc.
Contact Person for this Proposal:
Ayla Jefferson, CBO, CSP, Principal Building Official
E: [email protected]
C: 909-851-5765, O: 909-595-8599, ext.123
Dennis Tarango, CBO, Principal Building Official
E: [email protected]
C: 909-821-7117; O: 909-595-8599, Ext. 127
www.transtech.org
855.595.2495 (toll-free)
Submittal Requirement: 4 COPIES, 1 PDF FILE
EXHIBIT A
BUILDING AND SAFETY SERVICES
TABLE OF CONTENTS
Our proposal is submitted in the format and order specified in RFP Section “8. PROPSAL FORMAT”.
Section Page
1. COVER LETTER (per RFP limited to 1 page) 1.1 – 1.1
2. PROJECT SUMMARY SECTION 2.1 – 2.18
2.1 Understanding of City’s Request for Services 2.1
2.1.1 Understanding of City and Requested Services 2.1
2.1.2 Transtech’s Service Approach 2.3
2.2 Understanding of City’s Requirements for Staff Qualifications 2.4
2.2.1 Required Staff Qualifications 2.4
2.2.2 Transtech’s Building and Safety Staff Qualifications 2.7
2.2.2.1 Organization Chart 2.7
2.2.2.2 Staff General Qualifications and Licenses 2.8
2.2.2.3 Resumes 2.9
2.3 Transtech’s Involvement in the City 2.17
3. METHODOLOGY SECTION 3.1 – 3.5
3.1 Service Methodology 3.1
3.2 Sample Electronic Plan Checks 3.2
4. EXCLUDED OR SUBCONTRACTED SERVICES 4.1 – 4.1
5. LIST OF SIMILAR SERVICES COMPLETED 5.1 – 5.6
5.1 Examples of Similar Projects 5.1
5.2 Company Qualifications 5.3
6. REFERENCES 6.1 – 6.11
ATTACHMENTS – CITY REQUIRED FORMS A.1 – A.41
Attachment A: Statement of Non-Collusion by Contractor A.1 Attachment B: Subcontractor Campaign Contribution Acknowledgement A.3 Form (if applicable)
Attachment C: Sam.gov Verification A.7
Attachment D: Fee Schedule A.16
Attachment E: Scope of Services A.18
Attachment F: Sample Agreement A.26
1. COVER
LETTER
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
1. COVER LETTER(per RFP limited to 1 page) 1.1
December 1, 2022
City of WEST COVINA
1444 W. Garvey Avenue SOUTH
West Covina, CA 91790
Attn.: Maria Delira, Purchasing Manager
Proposal, BUILDING AND SAFETY SERVICES
In response to City’s request, Transtech is pleased to submit this Proposal for the subject services.
Established in 1989, Transtech (a California Corporation) is a multi-disciplinary engineering consulting firm.
Transtech has been in business for over 33 years and provides municipal services to approximately 70 public agencies, including Building and Safety Services.
In San Gabriel Valley, in addition to West Covina, we provide Building and Safety Services to several agencies, including Alhambra, Montebello Monterey Park, Rosemead, South El Monte, South Pasadena, Temple City.
We are also under multi-year contract with the County of Los Angeles providing Building, Plan Check and Inspection Services.
Transtech has a large pool of well experienced staff and resources readily available to provide requested services, and respond to requests in a timely, efficient, and cost-effective manner. Our staff and resources include approximately 200, including building officials, plan checkers, inspectors, permit technicians, engineers, project managers, designers, plan checkers, inspectors, construction managers, traffic and transportation analysts, technicians, support personnel.
We have extensive experience working with Public Agencies in similar assignments. We are accustomed to working with governmental agencies, and have a good understanding of public agency issues, procedures, and policies. We believe our team is well qualified to perform the services requested. Successfully providing similar services to many agencies for over 33 years. Proven track record in on time and within budget project delivery. Multi-disciplinary engineering consulting service capabilities to provide an array of municipal services. Ability to work collaboratively with agencies, project applicants, and other stake holders, and communicate effectively with diverse audiences and stakeholders at public forums. Committed to producing a high-quality work product and deliver a high level of customer care. Commitment of principal level management and involvement throughout the contract duration. Well experienced in-house staff readily available to commence with the services upon City’s authorization.
Transtech agrees with RFP Section 10.8 PROPOSAL VALIDITY PERIOD requirement: Pricing, terms and conditions stated in the proposer’s response shall remain valid for 120 days from the date of submission of the proposal to the City.
Thank you for the opportunity to submit this proposal. Should you have any questions, or require additional information, please contact us.
Sincerely
Ayla Jefferson, CBO, CSP, Principal Building Official Dennis Tarango, CBO, CSP, Principal Building Official E: [email protected] E: [email protected] C: 909-851-5765, O: 909-595-8599, ext.123 C: 909-821-7117, O: 909-595-8599, ext.127 About TRANSTECH
Video Highlight:
CLICK HERE
www.transtech.org
855.595.2495 (toll-free)
2. PROJECT
SUMMARY
SECTION
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.1
2.1 Understanding of City’s Request for Services
2.1.1 Understanding of City and Requested Services
The City of West Covina (City) is seeking proposals from qualified consulting firms that have the experiences and support capabilities to provide municipal Building and Safety Services under the Direction of the Community Development Director.
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 operates under the council/manager form of government. The City’s 16 square miles flourished with walnut groves and orange groves for many decades. The City has developed into a commercial and residential community, with a population currently estimated at about 110,200 residents.
The City offers 16 parks, four community centers, a Sports Complex, and a County-operated library. The City provides a full range of services to its citizens, including police, fire and emergency medical; construction and maintenance of streets, traffic signalization and other infrastructure; planning and building safety; and social, recreational and cultural activities and events. However, the City contracts out building and safety services, engineering, planning and business licensing. Additionally, water utilities and solid services are provided and billed externally.
Under the direction of the Community Development Director, the selected firm would assume the responsibility for the operation of the Building and Safety Division and would provide the range of expertise necessary to carry out the normal and day-to-day activities and functions of the Division. This includes, but not limited to providing professional services in all the following areas: Building Official services, development review of new projects, counter assistance, plan checking, building code compliance, and “on-call” inspection services. It is the City’s intent to select one (1) firm to provide the requested services.
The City of West Covina is committed to providing the most efficient and timely customer service possible to meet the needs of the community. The selected firm will be expected to provide excellent front-line customer services to the City’s patrons, responding quickly and effectively to the walk-in, telephone, and electronic inquiries from the public related to Building and Safety services. The selected firm will be expected to work closely with all City departments and divisions and ensure that the appropriate requirements of those departments and divisions are incorporated in the Building and Safety Division’s operating standards and processes.
RFP Section 12. REGISTRATION WITH THE DEPARTMENT OF INDUSTRIAL RELATIONS states the following:
Pursuant to California Labor Code sections 1725.5 and 1771.1, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work unless registered and qualified pursuant to California Labor Code section 1725.5.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.2
Following are CA DIR Number Verifications for Transtech Engineers, Inc., and its subconsultants GeoAdvantec, Inc. and Withers & Sandgren, Ltd.
RFP Section 10.10 EVALUATION AND SELECTION PROCESS states the following:
All proposers should identify or affirm each of the following requirements:
(a) Have a minimum of three (3) similar projects within the last three (3) years providing the same or similar services requested in this RFP.
Transtech affirms that it meets the above requirement.
(b) Have no outstanding or pending complaints as determined through the Better Business Bureau or State of California Department of Consumer Affairs.
Transtech affirms that it has no outstanding or pending complaints as determined through the Better Business Bureau or State of California Department of Consumer Affairs. (c) Have the administrative and fiscal capability to provide and manage the proposed services.
Transtech affirms that it has the administrative and fiscal capability to provide and manage the proposed services.
Transtech Engineers, Inc.
Subconsultant: Withers & Sandgren, Ltd. Sub-Consultant: Geo-Advantec, Inc,
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.3
2.1.2 Transtech’s Service Approach
Transtech’s unique “Customer Care” approach in delivering Building and Safety Services in an efficient, cost-effective, timely and customer friendly manner:
Transtech is well known in providing Cost Effective Services on time with a customer friendly and responsive approach.
Our services are founded on the principles of Total Quality Management for Total Customer Care. We have a structured approach to execute projects in an efficient manner that makes Transtech capable of providing the City with the highest quality product. Transtech has established guidelines and policies, including written manuals on quality control, project management, and design procedures for its staff and for its contract cities. These guidelines ensure a consistent approach to the execution of assignments undertaken by our organization in compliance with City’s specific procedures, standards, and requirements.
We start by working with the applicant early on and during plan review to help them prepare a set of plans which have all of the required information clearly and logically presented. Additionally, we never hesitate to make suggestions which help eliminate complicated details, reduce construction costs, and/or provide details which are easy to verify in the field. Experience has taught us well that inspection time and applicant frustration can both be substantially reduced, while increasing overall compliance, by producing a better set of plans during the plan review process. And in the case of homeowners, this policy often demonstrates early on that the City really is truly a partner in a process that can often be a source of stress and tension for many applicants, and we fully understand that. This policy reduces the number of plan review rechecks required, allows the applicant to obtain a permit much sooner, and reduces the overall time our staff is required to spend on that particular plan. Transtech provides all plan check comments on electronic files. All plan check comments are provided on pdf format electronically, as well as hard copies. Plan review corrections are written clearly and are fully detailed to explain the Code deficiency.
To help the applicant better understand the problem, Transtech provides as much information during plan review as possible. We believe that if the applicant has a clear understanding of the problem, he or she can take the necessary steps to correct the condition. This policy reduces the number of plan review rechecks required, allows the applicant to obtain a permit much sooner, and reduces the overall time our staff is required to spend on that particular plan. Unclear and/or cryptic corrections are never written, and all correction lists, except those written over the counter, are typed and printed on a laser printer. Our plan checkers confer early on and respond to questions from the architect, engineer, designer, applicant, etc. When requested, our plan checkers also meet with the architect, engineer, designer, applicant, etc. at our offices to answer questions or for rechecks where the plan corrections. Our policy is to assist the architect, engineer, designer, applicant, etc. as much as possible, which helps eliminate complicated details, reduce construction costs, and/or provide details which are easy to verify in the field.
All telephone calls or e-mails received are returned within the same working day, or the following day.
We take pride in our “Same Day Response” motto.
Responsiveness is an integral part of Transtech’s “customer friendly” service approach. We will strive to enhance the City’s image by public trust to be the most desirable community to live, invest and conduct business.
Customer Care means highest quality customer service. Transtech is committed to providing “Customer Care” to the City, City's patrons, responding quickly and effectively to the walk-in, telephone, and electronic inquiries of the public related to our services.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.4
2.2 Understanding of City’s Requirements for Staff Qualifications
2.2.1 Required Staff Qualifications
Building Official Services:
The selected firm shall provide a highly qualified individual to serve as the City’s Building Official. The Building Official shall oversee plan checking, building and grading inspections, building code compliance, and acts as an official City representative on building related matters. Service will include but are not limited to the following:
1. Quality control review of plan checks and inspections
2. Building Code updates and adoption
3. Resolution of inquiries and complaints
4. Building Official Administration, processing of complex Building Code issues and dispute resolution
5. Maintain and update the Building and Safety counter brochures and “hand-outs”
6. Monthly reporting of Building and Safety activities and annual reporting
7. Participate in pre-development review and provide comments
8. Attendance of pre-development review meetings
9. Processing of City Council staff reports (as needed)
10. Attendance at Planning Commission and City Council meetings (as needed) The ideal proposal would include an International Code Council (ICC) Certified Building Official who is available to be at the City part-time (10 hours minimum) and as needed, has at least 5 years of Building Official experience, is customer-service oriented, and has experience with managing multiple tasks, assignments and responsibilities. The Building Official shall also be available on an as needed basis for questions and quality control of work during the time he/she is not at City Hall.
Inspection Services:
The selected firm shall provide a Building Inspector, acceptable to the Community Development Director, on an as needed/on-call basis to provide Building and Safety Services. Specific responsibilities include but are not limited to the following:
1. Inspection services (residential, commercial, and other nonresidential projects) for building code, accessibility, grading, building, electrical, mechanical, plumbing, etc.
2. Maintain permit forms and handout materials related to permit requirements and issuance
3. Handle project inquiries and resolve complaints
4. Maintain records and files concerning construction permits and building code administration (including documents for storage and/or imaging)
The ideal proposal would include an International Code Council (ICC) certified combination Building Inspector who is available to be at the City as needed/on-call, has at least 5 years of building inspection experience inspecting residential, commercial, and mixed-used buildings, has experience inspecting structural systems, has experience inspecting electrical systems, is customer- service oriented, and has experience with managing multiple tasks, assignments and responsibilities.
Building Permit Technician Services:
The selected firm shall provide a Building Permit Technician, acceptable to the Community Development Director, on an as needed/on-call basis to provide Building and Safety Services. Specific responsibilities
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.5
include but are not limited to the following:
1. Reviews permit applications, calculate fees in accordance to established fee schedule, receive permit application/plans for plan check processing, and issue permits
2. Handle project inquiries and resolve complaints
3. Maintain records and files concerning construction permits and building code administration (including documents for storage and/or imaging)
The ideal proposal would include a Building Permit Technician who has at least 2 years of permit issuance experience in a municipal government department and responsible clerical experience Plan Check Services Plan Check Services:
The selected firm shall provide qualified plan check professionals on as needed basis. The selected firm shall provide such personnel based on the volume of work and the City’s expected plan check turn- around times as described in Section E below.
1. Plan checking includes American with Disabilities Act (ADA) accessibility, grading, erosion control, building, mechanical, electrical, plumbing work, and Fire, etc.
2. Plan check monitoring, permit issuance for grading, building electrical, mechanical, plumbing, and fire etc.
3. Handle project inquiries and resolve complaints
The ideal proposal would include an International Code Council (ICC) Certified California Building Plans Examiner with at least 5 years of plan check experience, committed to providing the most efficient, accurate and timely plan check services possible to meet the needs of the City, has previous City experiences, is customer- service oriented, and has experiences with successfully managing multiple tasks, requiring the application assignments, and responsibilities. The plan checker may substitute for a portion of the required time the Building Official is available at City Hall.
Transtech has a large pool of well experienced staff with credentials and certifications and proven track record in providing building and safety services in a timely, efficient, cost-effective and customer friendly manner.
• Transtech staff members have extensive experience and in-depth knowledge of applicable codes and regulations. Our staff members are certified by the International Code Council (ICC). • We have staff who have reached the highest possible level of code administration with the Master Code Professional designation certification from the ICC. In addition, some of our staff members are certified as Fire Plan Checkers and Inspectors, as we provide these services to some agencies. • Our staff members are involved in many local and national International Code Council (ICC) and California Building Officials (CALBO) committees, and in the development of local and national guidelines and codes for Building and Safety:
• Chair; ICC Sustainability Membership Council
• Chair; ICC LA Basin Chapter Inspection
Committee
• Commissioner; ICC Codes & Standards Council
• Commissioner; CALBO Green Committee
• Commissioner; ICC/CALBO CA Exam
Committee
• Commissioner; CALBO
Outreach/Communications Committee
• ICC Los Angeles Basin Chapter Board of Directors
• ICC Building Officials Membership Governing
Council
• ICC Code Development Committee Vice Chair
• ICC Technology/Web Advisory Group
• IAS Accreditation Committee
• ICC LA Chapter Accessibility Committee
• Commissioner; CALBO State Licensing Boards
Committee
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.6
Maximum Service Delivery Timeframes:
The City has established the “Maximum Timeframes” for the delivery of Building and Safety Services. Transtech will provide adequate personnel, based on the level of development activity within any given time, to ensure that the following timeframes are met:
Service Timeframe for Delivery
First Major Plan Check (such as new single- family house, multifamily residential, commercial and other non-residential project)10-15 business days 2nd Subsequent Plan Checks & Resubmitted Plan Checks (simple tenant improvements for non-residential buildings)
3-5 business days
Minor Plan Check (such as room additions of single-family house, detached accessory structures, re- roofing, wall signs, swimming pools, etc.)
3 business days or over the counter
during a designated time period each
day
Building Inspection 95% next Day Inspections
Grading Plan Check (new construction) 10-15 business days Subsequent or Resubmitted
grading plan checks
3-5 business days
Grading Inspection 95% next Day Inspections
Return Phone Calls Within 24 hours or next business day Monthly Accounting and Reporting Completed within the first 10 days after close of month
Transtech has a proven track record and a large pool of well experienced in-house staff readily available to meet the service delivery requirements:
• We will be responsible to ensure that all other Building and Safety duties and follow-up not specifically mentioned in the table above are performed in a timely manner. We will be responsible to ensure all personnel assigned to the City have sufficient on-going training to perform their assigned duties. • Expedited/Off-Business Hours/Weekend Services: If the City receives a request from applicants for expedited plan check services, Transtech staff is able to provide additional resources to accommodate such a request. If the City requests inspection services, Transtech staff will provide additional resources to accommodate inspection requests during off business hours and weekends. • Quick Turn Around and Expedited Service: Transtech will provide plan checks on a quick turn-around schedule. Transtech also provides expedited service when requested. Applicant will be able to see online on real time the progress of plan check submittals.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.7
2.2.2 Transtech’s Building and Safety Staff Qualifications
2.2.2.1 Organization Chart
CALVIN CHANG, PE
ICC Certified Plans Examiner
CEM AYAN, PE
ICC Certified Plans Examiner
and Inspector
ROBERT HERNANDEZ
ICC Certified Plans Examiner
and Inspector
JASON ROBBINS
ICC Certified Building Official,
Plans Examiner and Inspector
BILL DORMAN, CBO, CSP
ICC Certified Building Official,
Plans Examiner and Inspector
JEFFREY KAO, PE, CBO, CASp
ICC Certified Building Official,
Plans Examiner and Inspector
DENNIS TARANGO, CBO, CSP
Principal Building & Safety Official
ICC Certified Building Official,
Plans Examiner and Inspector
AYLA JEFFERSON, CBO, CSP
Principal Building & Safety Official
ICC Certified Building Official,
Plans Examiner and Inspector
MICHAEL ROBERTS, CBO, MCP
ICC Certified Building Official,
Plans Examiner and Inspector
FRANKIE LOPEZ
ICC Certified Building Inspector
NICHOLAS TARANGO
ICC Certified
Building Inspector,
Permit Technician
JONATHAN TARANGO
ICC Certified Building Inspector,
CALGreen Inspector/Plans
Examiner, Permit Technician
JEREMY REED
ICC Certified
Building Inspector,
Permit Technician
CAN GOZUBUYUK
ICC Certified Inspector
JULIE ROBBINS
ICC Certified
Permit Technician
STEVE RIVAS
ICC Certified Building Inspector/
Permit Technician
AMY CHAN
ICC Certified
Permit Technician
GREGORY AHERN
ICC Certified Inspector,
ICC Certified Fire Inspector
NATHAN ESTABROOK
ICC Permit Technician
JOHN TUFAN
ICC Certified
Permit Technician CALGreen
Inspector/Plans Examiner
Transtech has a large pool of well experienced staff and resources readily available to provide requested services, and respond to requests in a timely, efficient, and cost-effective manner. Our staff and resources include approximately 200, including building officials, plan checkers, inspectors, permit technician, engineers, project managers, designers, plan checkers, inspectors, construction managers, traffic and transportation analysts, technicians, support personnel.
Specialty Services
Landscape Plan Review Support
WITHERS & SANDGREN, LTD
www.withersandsandgren.com
RONALD L. GRIESINGER
Fire Marshal
Fire Plan Checker
Specialty Services
Soils Report Review Support
GEO-ADVANTEC, INC.
www.geoadvantec.com
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.8
2.2.2.2 Staff General Qualifications and Licenses
Licenses and Certificates of the Firm and Staff Members in Diversified Fields:
Transtech staff members have extensive experience and in-depth knowledge of applicable codes and regulations. Our staff members are certified by the International Code Council (ICC). We have staff who have reached the highest possible level of code administration with the Master Code Professional designation certification from the ICC. In addition, some of our staff members are certified as Fire Plan Checkers and Inspectors, as we provide these services to some agencies.
Following are various ICC certifications held by various staff members:
Building Official Certifications:
Certified Master Code Professional
Building Code Official
Building Official
Certified Sustainability Professional
Plan Check Certifications:
Residential Building Plans Examiner
Commercial Building Plans Examiner
California Building Plans Examiner
Certified Sustainability Professional
CalGreen Plans Examiner
Accessibility Plans Examiner
Commercial Energy Conservation Plans Examiner
Residential Plans Examiner
Mechanical Plans Examiner
Plumbing Plans Examiner
Electrical Plans Examiner
State of California Safety Assessment Program:
CalOES SAP Evaluator
Inspection Certifications:
Combination Inspector
Commercial Building Inspector
Residential Building Inspector
Accessibility Inspector
Commercial Energy Conservation Inspector
Electrical Inspector
Commercial Electrical Inspector
Residential Electrical Inspector
Residential Energy Conservation Inspector
Residential Building Inspector
Residential Mechanical Inspector
Mechanical Inspector
Commercial Mechanical Inspector
Plumbing Inspector
CalGreen Inspector
Building Inspector CBC
Building Inspector UBC
Plumbing Inspector UPC
California Building Inspector
California Commercial Plumbing Inspector
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.9
California Residential Mechanical Inspector
California Residential Mechanical Inspector
Additional Inspection Certifications:
IAPMO Plumbing, Mechanical Inspector
Fire Code Inspector
Fire Inspector II
California UST Inspector
Permit Technician Certification: Permit Technician
CACEO Certified Code Enforcement Officer
California State Fire Marshall Certifications:
Certified EMT1 (AED Certification), Driver Operator 1A, Driver Operator 1B, Driver Operator, Command 1A, 1B, 2A, Firefighter 1, 2, Hazardous Materials First Responder, Instructor 1A, 1B, Investigation, 1A, Management, 1, Prevention, 1A, 1B, 1C, 1D, 2A, 3A,3B, ICS 100, 200, S-290, S-130, S-190, PC832 with Firearms. Fire control 3, S-230 S-231 S-215, Fire Safety Officer FEMA: IS 100, 200, 241, 242, 275, 700, 288, 800, 08-A, 1900 Also, our plan check engineers, who review maps and engineering plans are licensed as professional engineer by the State of California Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG).
In addition, some of our staff members are certified as Fire Plan Checkers and Inspectors, as we provide these services to some agencies.
Our staff members are involved in many local and national International Code Council (ICC) and California Building Officials (CALBO) committees, and are involved in the development of local and national guidelines and codes for Building and Safety:
• Chair; ICC Sustainability Membership Council
• Chair; ICC LA Basin Chapter Inspection
Committee
• Commissioner; ICC Codes & Standards Council
• Commissioner; CALBO Green Committee
• Commissioner; ICC/CALBO CA Exam
Committee
• Commissioner; CALBO
Outreach/Communications Committee
• ICC Los Angeles Basin Chapter Board of Directors
• ICC Building Officials Membership Governing
Council
• ICC Code Development Committee Vice Chair
• ICC Technology/Web Advisory Group
• IAS Accreditation Committee
• ICC LA Chapter Accessibility Committee
• Commissioner; CALBO State Licensing Boards
Committee
2.2.2.3 Resumes
AYLA JEFFERSON, CBO, CSP, Principal Building & Safety Official, ICC Certified Building Official, Plans Examiner and Inspector
Education
• Rio Hondo College, CE, Bosphorous Univ, Turkey, Athanee Royal, Belgium Registrations/Certifications
• ICC Certifications: Building Code Official, Certified Building Official, Certified Sustainability Professional, Accessibility Inspector, Accessibility Plans Examiner, Building Plans Examiner, California Building Plans Examiner, CalGreen Plans Examiner and Inspector, Building Inspector CBC, Building Inspector UBC, Plumbing Inspector UPC, California Commercial Plumbing Inspector, Residential Mechanical Inspector, California Residential Mechanical Inspector, Permit Technician
• IAPMO Plumbing, Mechanical Inspector
Highlights
Ms. Jefferson has over 25 years of experience in private and governmental sector. She has
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.10
extensive experience in managing building and safety departments of different municipalities under Transtech contracts. She has served as Building Official, Deputy Building Official, Plan Checker, Code Enforcement Official, Community Improvement Coordinator, Planning Technician, and Inspector for various municipalities.
DENNIS TARANGO, CBO, CSP, Principal Building & Safety Official, ICC Certified Building Official, Plans Examiner and Inspector
Education
• Cal Poly, Engineering
• Fresno State BA
• Rio Hondo College
Registrations/Certifications
• ICC Certified Building Official, Plans Examiner, Commercial Building Inspector, Building Inspector UBC, Fire Plans Examiner
Highlights
• ICC Sustainability Membership Council Governing Committee Mr. Tarango has over 20 years of experience in the building and safety. He is experienced in managing building and safety departments of different municipalities. Currently he is serving as Building Official for Transtech Contract Cities. At Transtech, Mr. Tarango is responsible for the Building and Safety Division as well as business development, client relations, and management oversight. With his analytical and strategic management skills, he provides strong leadership and develops staff to enhance the Departments abilities. Prior to working for Transtech, Mr. Tarango served as Deputy Building Official, Plans Examiner, and Senior Building Inspector for various local cities including the City of Diamond Bar, City of Yorba Linda, and City of Hemet.
JASON ROBBINS, CBO, CSP, ICC Certified Building Official, Plans Examiner, Inspector Education • A.A. and A.S. Degrees; Cal State LA, Computer Science (In Progress) Registrations/Certifications
• ICC Certified Building Inspector, Commercial Building Inspector, Res. Combo, Building, Electrical, Mechanical, Plumbing Inspector, Permit Technician Highlights
Mr. Robbins has over 6 years of experience working in governmental environments. He is assigned to various Transtech Contract Cities. He has served as Permit Technician and as Building Inspector under Transtech’s contract cities, including at the City of Alhambra, City of South Pasadena, City of Temple City, City of Montebello, and City of Seal Beach. Mr. Robbins also has experience working alongside Los Angeles County Staff at City of Commerce as a Permit Technician.
BILL DORMAN, CBO, CSP, ICC Certified Building Official, Plans Examiner, Inspector Education
• AS, Architecture - East Los Angeles College; BA, University of La Verne Registrations/Certifications
• ICC Certified Building Official, Plans Examiner, Building Inspector Highlights
Mr. Dorman has over 30 years of experience in Building and Safety. He serves as Building Official/Plan Checker/Inspector at various Transtech contract cities. He has extensive experience in construction codes, building and safety plan review and inspection, code interpretations, and resolving code related construction and plan review problems on a broad range of projects. Prior to joining Transtech, he has served in various capacities, including as Building Official/Code Administrator for the City of Pasadena.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.11
JEFFREY KAO, PE, CBO, CASp, ICC Certified Building Official, Plans Examiner and Inspector Education
• MS, BS Civil Engineering, Cal Poly
Registrations/Certifications
• Registered Civil Engineer; CASp
• ICC Certified Building Official, California Building Plans Examiner, CalGreen Inspector, CalGreen Plans Examiner, Mechanical Plans Examiner, Plumbing Plans Examiner, Building Inspector
Highlights
Mr. Kao has over 20 years of experience and has been working at Transtech as Deputy Building Official, Senior Plans Examiner, On-Site Over the Counter Plans Examiner and performed plan checks for a variety of residential and commercial projects in Cities of Alhambra, South Pasadena, and Temple City. Mr. Kao has broad knowledge of building and safety operations, including working in the capacity of Deputy Building Official and Plans Examiner. His past experience includes working as a structural engineer for 4 years at a structural design firm.
CEM AYAN, PE, ICC Certified Plans Examiner and Inspector Education
• M.S., B.S. in Civil Engineering
Registrations/Certifications
• Registered Civil Engineer
• ICC Certified Plans Examiner, Inspector
Highlights
• Experience includes working as Structural Design Engineer.
Mr. Ayan has approximately 20 years of experience in engineering and construction. He works at various Transtech Contract Cities as Plan Checker and Deputy Building Official. His experience also includes both working for a construction company as construction engineer and for consulting firms design firms as design/field construction engineer. His field construction experience includes site start-up, site grading/paving/concrete work, excavation, backfill, vertical survey, storm & wastewater collection, shallow/deep foundation, structural work, M&E, brick work, gable/hip/flat roof, interior/exterior architectural finish, and CM/PM activities.
CALVIN CHANG, PE, ICC Certified Plans Examiner
Education
• MS, BS Civil Engineering
Registrations/Certifications
• Registered Civil Engineer
• ICC Certified Plans Examiner
Highlights
• Chinese Cantonese and Mandarin Speaker
• Extensive experience in Structural Plan Check
Mr. Chang has 30 years of experience and has been working at Transtech as Deputy Building Official, Senior Plans Examiner, On-Site Over the Counter Plans Examiner. He has performed plan checks for a variety of residential and commercial projects in Cities of Alhambra, Temple City, Huntington Park, San Manuel Indian Reservation and San Bernardino. Prior to joining Transtech, he was a Sr. Plans Examiner at the City of Burbank. Mr. Chang has extensive experience in Building Codes, code interpretations and resolving code related construction and plan check problems on a broad range of residential and commercial projects.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.12
ROBERT HERNANDEZ, ICC Certified Plans Examiner and Inspector Education
• Coastline College, Electrical and mech code classes; Fullerton College, Building construction cod.
Registrations/Certifications
• ICC Certified Plans Examiner, Inspector-Res Building, Commercial, Res Plumbing, Commercial Plumbing
Highlights
Mr. Hernandez has over 30 years of experience and has served as Inspector and Plan Checker.
His prior experience includes working for various cities as inspector and plan checker.
FRANKIE LOPEZ, ICC Certified Building Inspector
Education
• Los Angeles Trade Technical College L.A. Ca ; A/S Degree in Inspection Technology, and A/A Degree in Offset Printing
Registrations/Certifications
• ICC Building Inspector, ICC Residential Building Inspector, I.C.B.O. Certified-1985-16108, CalOES SAP Evaluator
Highlights
Mr. Lopez has over 28 years of experience as a Building Inspector for the City of Los Angeles.
His experience includes inspecting one- and two-family dwellings and inspecting foundations, electrical, heating, plumbing, framing (structural and non-structural), insulation, application of stucco, installation of roofing, and final completions on structures regarding residential homes.
Mr. Lopez, in the past, has also trained inspectors, assistant inspectors on all up to date municipal code changes. Mr. Lopez has completed several roofing, rain gutter installations, water sprinklers, heating/air conditioning and ductwork repair and installation projects. Prior to joining Transtech Engineers, Mr. Lopez worked as a Part Time Building Inspector for the Cities of Diamond Bar, San Dimas, San Gabriel, San Marino, Walnut and La Verne. His experience ranged from inspection of electrical, plumbing, or other foundation related work.
MICHAEL ROBERTS, CBO, MCP, ICC Certified Building Official, Plans Examiner and Inspector Education
• Associate of Applied Science, Building Inspection Technology – Chemeketa Community College, Salem Oregon
• Fire Code Administration, National Fire Academy – Emmitsburg, Maryland Registrations/Certifications
• ICC Certified Master Code Professional, Building Code Official, Building Official, Plumbing Inspector, Combination Inspector, Commercial Building Inspector, Accessibility Plans Examiner / Inspector, Commercial Energy Conservation Plans Examiner, Commercial Energy Conservation Inspector, Electrical Inspector, Commercial Electrical Inspector, Residential Electrical Inspector, Residential Energy Conservation Inspector, Residential Building Inspector, Residential Mechanical Inspector, Residential Plans Examiner, Mechanical Inspector, Commercial Mechanical Inspector, Fire Code Inspector, Fire Inspector II • ICBO Certified Structural Inspector, Plumbing Inspector, Mechanical Inspector, Building Plans Examiner, Fire Code Official
Highlights
Mr. Roberts has over 30 years of experience in municipalities, including governmental development administration. He has reached the highest possible level of code administration with the Master Code Professional designation certification from the International Code Council and has proven superior leadership abilities. He has served as Building Official, Community Development Director, Senior Plans Examiner, Plans/Residential Examiner, and Inspector for various municipalities and served as Principal Consultant. Serving as a Building
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.13
Official for many years, Mr. Roberts provided the necessary code interpretations, and coordinated with agency staff and departments, and applicants on building and safety related issues. He has vast knowledge of municipal government operations, including preparation and presentation of staff reports and resolutions to city councils, committees, and related interaction with members of the public, other city departments, and other governmental agencies.
NICHOLAS TARANGO, ICC Certified Building Inspector, Permit Technician Education
• Fullerton College
Registrations/Certifications
• ICC Permit Technician, Residential Building Inspector Highlights
Mr. Tarango’s experience includes working as a Permit Technician at local public agencies including City of South Pasadena and City of Alhambra. As a permit technician he performs preliminary review of permit applications and plan submittals for completeness and accuracy and determines appropriate fees. In addition, he also routes plans, issues permits, and manages logs and records, and provides information to the public relating to the status of projects and permits.
JEREMY REED, ICC Certified Building Inspector, Permit Technician Education
• Citrus College
Registrations/Certifications
• ICC Certified Building Inspector, Permit Tech
Highlights
Mr. Reed has over 5 years of experience working in governmental environments. He is assigned to various Transtech Contract Cities. Mr. Reed has served as a Permit Technician and a Building Inspector under contract cities such as City of South Pasadena, Alhambra, and Hawaiian Gardens. Some of Mr. Reeds roles as a building inspector include conducting building, electrical, mechanical, and plumbing inspections; ensuring that all proper documents are obtained prior to finalization of permits; and answering questions that contractors, developers, engineers, or homeowners may have regarding code requirements.
JONATHAN TARANGO, ICC Certified Building Inspector, CALGreen Inspector/Plans Examiner, Permit Technician
Education
• Construction Management, Fullerton College; General Education, Mount San Antonio College
Registrations/Certifications
• ICC Residential Building Inspector, Residential Plumbing Inspector, & Residential Electrical Inspector
Highlights
Mr. Tarango has over 8 years of City government experience working in many diverse communities. His experience includes working as a Building Inspector and Permit Technician at various Transtech contract cities.
CAN GOZUBUYUK, ICC Certified Inspector
Education
• MBA, Southern States University (SSU); BS, Engineering, Registrations/Certifications
• ICC Certified Residential Building Inspector, Residential Mechanical Inspector, Residential
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.14
Plumbing Inspector,
Highlights
Mr. Gozubuyuk has been working in Transtech’s Building and Safety Department as a Building Inspector for various contract Cities. Mr. Gozubuyuk quickly gained his ICC Residential, Plumbing, and Mechanical Certifications and continuously serves as a Building Inspector for the City of South Pasadena, Seal Beach, Alhambra, Temple City. Huntington Park and many more. Some of his roles as a building inspector include conducting building, electrical, mechanical, and plumbing inspections; ensuring that all proper documents are obtained prior to finalization of permits; and answering questions that contractors, developers, engineers, or homeowners may have regarding code requirements.
STEVE RIVAS, ICC Certified Building Inspector, Permit Technician Education
• Engineering and Construction Technology, Mount San Antonio College (In progress) Registrations/Certifications
• ICC Certified Residential Building Inspector and Permit Technician Highlights
Mr. Rivas’ is working as a Permit Technician at the City of West Covina. Some of his major responsibilities include processing permit applications electronically and answering any questions applicants might have regarding the permit process. Mr. Rivas has a passion for knowledge. Since joining the Transtech Team, he has received his Permit Technician Certification and Residential Building Inspector Certification through ICC. He is currently training to conduct Field Inspections. Additionally, he collaborates and partners with the administrative team to accomplish responsibilities in support of Transtech’ s Building and Safety Department.
JULIE ROBBINS, ICC Certified Permit Technician
Education
• B.A., Political Science, University of La Verne
• Associates in Business Administration; Paralegal Education; Political Science; General Education; SCACEO Code Enforcement Courses, Rio Hondo Community College Registrations/Certifications
• ICC Certified Permit Technician
• CACEO Certified Code Enforcement Officer
Highlights
• Spanish Speaker
Mrs. Robbins has approximately 34 years of City Government and Building and Safety experience. Mrs. Robbins has been working in Transtech’s Building and Safety department in various contract cities performing various clerical and technical duties in support of Building Inspections, Plan Checkers, and the Building Official.
AMY CHAN, ICC Certified Permit Technician
Education
• B.A., Cal State, Long Beach
Registrations/Certifications
• Permit Tech, CalGreen Plans Examiner, and Inspector
Highlights
• Chinese Cantonese Speaker
Ms. Chan has approximately 5 years of City Government and Building and Safety experience.
Ms. Chan has been working in Transtech’s Building and Safety department in various contract cities performing various clerical and technical duties in support of Building Inspections, Plan Checkers, and the Building Official. Prior to working for Transtech Engineers Ms. Chan worked
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.15
for the City of Arcadia as a Planning Intern. Some of her responsibilities included providing technical support to planning staff by conducting research, answering questions, and providing information to the public, preparing agendas and reports for review boards and meetings. During her time there, Ms. Chan examined various types of applications received from the city (i.e. rebuilding, modifications, etc.), wrote up conditional use, approval, and staff report letters, and working on updates regarding the general plan, zoning, and municipal codes.
NATHAN ESTABROOK, ICC Certified Permit Technician
Education
• B.S., Cal State, Fullerton
Registrations/Certifications
• ICC Certified Permit Technician, First Aid CPR and BLS Certified Highlights
Mr. Estabrook is working as a Permit Technician at the City of West Covina. Some of his responsibilities include processing permit applications and performing technical work for permit applications. He performs clerical work that supports the operations involved with the issuance and coordination of the building inspection and permit process. He also ensures that all necessary approvals are obtained. Mr. Estabrook is constantly interacting with the general public and serves as the first point of contact for the public to answer their questions and clarifications. Before becoming a Permit Technician, Mr. Estabrook served as a Go Post Technician at the Corporate Office where he scheduled inspections, responded to emails, and reviewed plans coming into the Go Post/EPR Software.
GREGORY AHERN, ICC Certified Inspector, ICC Certified Fire Inspector Education
• Associates of Science Degree – Public Works Construction - Citrus Community College • FT 101: Fire Protection Organization, FT 102: Fire Prevention Technology, FT 103: Fire Protection Equipment System, FT104: Building Construction/Fire Protection, FT 105: Fire Behavior & Combustion – Hancock Community College
Registrations/Certifications
• ICC Certified Residential Building Inspector, ICC Certified Residential Mechanical Inspector, ICC Certified Residential Plumbing Inspector. ICC Fire Inspector I, ICC California UST Inspector Certification
• Hazardous Waste Operator and Emergency Operations Certification (HAZWOPER) • Aboveground Petroleum Storage Tank Inspector Certification EPA (APSA) Highlights
Mr. Ahern has over twenty years’ experience inspecting commercial development in the City of Glendale. He has in depth experience inspecting high rise mixed use development projects, as well as industrial projects.
JOHN TUFAN, ICC Permit Technician, CalGreen Inspector/Plans Examiner Education
• BA Public Administration
• University of Redlands MA in Management
Registrations/Certifications
• ICC Permit Technician
Highlights
Mr. Tufan has been working in Transtech’s Building and Safety Department and performing various clerical and technical duties in support of Building Inspection, Plan Checkers and Building Officials. Mr. Tufan acquired his ICC Permit Technician Certification and has worked in various contract cities including City of Alhambra, South Pasadena, Placentia, Commerce,
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.16
Bell and many more. In addition to this, Mr. Tufan supports Transtech’s Engineering Department in various contract cities such as West Covina, South El Monte, Banning and Big Bear.
RONALD L. GRIESINGER, Fire Marshal, Fire Plan Checker
Education
• Cabrillo College, CA
• Fire Science Technology
Registrations/Certifications
• California State Fire Marshall Certifications: Certified EMT1 (AED Certification), Driver Operator 1A, Driver Operator 1B, Driver Operator, Command 1A, 1B, 2A, Firefighter 1, 2, Hazardous Materials First Responder, Instructor 1A, 1B, Investigation, 1A, Management, 1, Prevention, 1A, 1B, 1C, 1D, 2A, 3A,3B, ICS 100, 200, S-290, S-130, S-190, PC832 with Firearms.
Fire control 3, S-230 S-231 S-215, Fire Safety Officer
• FEMA: IS 100, 200, 241, 242, 275, 700, 288, 800, 08-A, 1900 • ICC Certified Green Building Professional
Highlights
Mr. Griesinger has 24 years of experience. His prior Public Agency Experience includes:
Riverside County Fire Department, CA, Fire Safety Specialist; City of Watsonville, CA, Fire Life Safety Officer; Boulder Creek Fire Protection District, CA; Firefighter / Engineer / Deputy Fire Marshal; Scotts Valley Fire Protection District, CA, Interim Deputy Fire Marshal; Fire Management Consulting.
Subconsultants:
• SOILS REPORT REVIEW SUPPORT: GEO-ADVANTEC, INC. (www.geoadvantec.com) Geo-Advantec, Inc. offers comprehensive services in various areas from site feasibility evaluation thought project completion for a wide range of projects and services, which include: Geotechnical Eng.; Eng. Geology; Geotechnical Earthquake Eng.; Geotechnical Instrumentation; Pavement Eng.; Forensic Geotechnical Eng.; Grading Monitoring and Field Testing; Soils & Materials Laboratory Testing; Special Inspection Services. Geo-Advantec owns a certified laboratory accredited by AMRL (ASSHTO Materials Reference Laboratory), in conformity to the requirements of the AASHTO Accreditation Program (AAP), AASHTO R-18, ASTM D3740 and ASTM E329; CCRL (Cement and Concrete Reference Laboratory); Caltrans; DSA (the Department of the State Architects); Army Corp of Engineers.
Transtech uses this subconsultant in several other cities, including in West Covina. • LANDSCAPE PLAN REVIEW SUPPORT: WITHERS & SANDGREN, LTD. www.withersandsandgren.com) Withers & Sandgren has been involved in providing varying levels of support to Community Development Departments for over twenty years. The firm has provided counter support for walk in plan reviews, been monthly Design Review Committee attendees, as well as presenters with planning staff to Planning Commissions and City Councils.
Transtech uses this subconsultant in several other cities, including in West Covina.
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.17
2.3 Transtech’s Involvement in the City
Supporting civic and community activities demonstrates Transtech’s commitment to the progress, health, and well-being of the communities we serve. This is something that we take pride in as a company. In services and partnership with our client Cities, we have a proven record of active engagement in City and Community events. This includes involvement or presence at City programs or events, supporting local businesses through the chamber, youth events, hosting workshops, sports, scholarship opportunities, community service, managing homelessness challenges, public safety, crime prevention, or any other community benefit that the City wishes us to be a part of.
Our goal is not just to serve as a consultant (which is what we are best at) but to also be an active partner with our clients and further enhance the City’s reputation as an ideal community to live, invest, work, and play. We are deeply committed to maintaining our partnership with our valued customers, its community, and remain open and enthusiastic to receiving input on how to best serve the City's needs today and in the future.
Community Activities in West Covina: Transtech is actively engaged with the City of West Covina and neighboring communities. Below is a list of some of the West Covina related community programs we are proud to be part of:
State of the City and School Districts Update
Public Safety Awards Recognition Luncheon
Adopt a Senior Donation Program
2021 State of the City
2022 Spring Festival
2022 Anniversary Banquet
2022 Easter Party
Team Building Events
4th of July Hero's Parade and Street Fair
2022 State of the City
West Covina Regional Mega Health and Wellness Fair
Following are some other examples of our CBE programs that we have been part of throughout the Southern California Region:
Traffic Engineering Workshop &
Pedestrian School Safety
Discussion
High School Enlistee
Recognition Ceremony Through
“Our Community Salutes”
Cal Poly Pomona's Transtech
Engineers Scholarship Program
Embracing Latina Leadership
Alliances (ELLAS)
BUILDING AND SAFETY SERVICES
2. PROJECT SUMMARY SECTION 2.18
Transtech’s First Responders Appreciation Initiative:
Giving back to the communities we serve is part of our service philosophy. In response to the global pandemic and the many challenges local businesses experienced, the Transtech Engineers team developed and implemented a unique First Responders Appreciation Initiative that collaborates with local Chambers, supports local restaurants, and appreciates our community’s First Responders. The Transtech team personally picks up the meal orders and delivers them to our First Responders. So far to date, we are proud to share that Transtech’s First Responders Appreciation Initiative has provided over 350 meals and beverages from 13 local restaurants in 8 cities serving 6 Police/Sheriff Stations and 13 Fire Stations.
Youth Committee Pedestrian
Safety Booth
Girls Leadership & Mentoring
(GLAM) Workshop at Magnolia
Science Academy
STEM Workshop at The Annual
Geranium Festival & Artwork
STEM Booth at the Concerts
in The Park
3. METHODOLOGY
SECTION
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
3. METHODOLOGY SECTION 3.1
3.1 Service Methodology
Plan Check Processing:
When a plan check order is received, it is logged and reviewed by Building Staff and then assigned to applicable plan checkers. The plan check duration is monitored thru the plan check log data base, which generates messages at identified intervals to inform plan checker and supervising Sr. Staff so that they are aware of how the progress and status continuously. If any potential delay is monitored, necessary steps are taken, such as meeting with plan checker to review the schedule, workload, performance, and identify actions, including assigning additional staff, if necessary, to ensure timely completion of assignment.
Plan Check Coordination:
• Our plan checkers respond to questions from the architect, engineer, designer, applicant, etc. When requested, our plan checkers also meet with the architect, engineer, designer, applicant, etc. at our offices to answer questions or for rechecks.
• Our policy is to assist the architect, engineer, designer, applicant, etc. as much as possible, which helps eliminate complicated details, reduce construction costs, and/or provide details which are easy to verify in the field. This pro-active approach reduces inspection time and questions, and applicant frustration, while increasing overall compliance, by producing a better set of plans during plan review process.
Especially, when the applicant is a homeowner trying to improve his/her property, this policy often demonstrates early on that the City really is here to help.
Approach to Meeting with Applicants:
Our staff is available to applicants by phone and through email or through virtual meeting for questions or available to meet for rechecks if necessary. Our policy is to meet with applicants virtually via TEAMS or ZOOM or when necessary, at City Hall, but we also have an available facility at our office meetings with applicants.
Expedited/Off-Business Hours/Weekend Services:
If the City receives a request from applicants for expedited plan check services, Transtech staff is able to provide additional resources to accommodate such a request. If the City requests inspection services, Transtech staff will provide additional resources to accommodate inspection requests during off business hours and weekends.
Quick Turn Around and Expedited Service:
Transtech will provide plan checks on a quick turn-around schedule. Transtech also provides expedited service when requested. Applicant will be able to see online on real time the progress of plan check submittals.
Weekend, Holiday & Atter Work Inspection:
Transtech is readily available and has the resources to provide weekend, holiday, and after-work hour inspections as requested by the City Manager or designee.
Emergency Response:
In the event of a local or regional emergency or disaster, our staff will be accessible to provide Building and Safety services as directed by the City. All of our building officials and inspectors have gone through extensive training to be SAP Evaluator and registered with the State of California Safety Assessment Program.
BUILDING AND SAFETY SERVICES
3. METHODOLOGY SECTION 3.2
Training Program:
We offer any City staff, who are involved in inspection, plan check and permit issuance, an option to participate in our training program for code updates and process, as well as ICC certification training.
Employment Opportunities for Local Residents:
If the City selects Transtech, we will seek applicants from local residents for employment possibilities at our firm and offer training for various administrative and technical support positions.
Other Services:
Transtech is a full-service municipal consulting firm that currently provides a variety of different city services for public agencies. We understand that Transtech would be responsible for all correspondence related to activities of the Building and Safety Division. In addition, Transtech would respond to any complaints, perform investigations, provide problem-solving methods for unique or challenging plan check or code interpretation issues, provide report writing and policy & procedure recommendations, and attend City Council and Commission meetings as requested by the City Manager or designee.
Electronic Plan Check:
• Transtech provides Electronic Plan Check.
• Sample of one of our electronic plan check portals:
West Covina
https://gopost-transtech.eplansoftreview.com/#/login?portal=westcovinabldg Virtual Counter:
• We offer virtual meetings with plan checkers.
• Sample of one of our virtual plan check counter appointment calendar:
South Pasadena Virtual Plan checker
https://outlook.office365.com/owa/calendar/[email protected]/bookings/
3.2 Sample Electronic Plan Checks
Following pages include sample snap shots of various types of electronic plan checks.
BUILDING AND SAFETY SERVICES
3. METHODOLOGY SECTION 3.3
BUILDING AND SAFETY SERVICES
3. METHODOLOGY SECTION 3.4
BUILDING AND SAFETY SERVICES
3. METHODOLOGY SECTION 3.5
4. EXCLUDED OR
SUBCONTRACTED
SERVICES
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
4. EXCLUDED OR SUBCONTRACTED SERVICES 4.1
There are no excluded services. Transtech will provide all requested services.
Following services will be subcontracted:
• SOILS REPORT REVIEW SUPPORT: GEO-ADVANTEC, INC. (www.geoadvantec.com) Geo-Advantec, Inc. offers comprehensive services in various areas from site feasibility evaluation thought project completion for a wide range of projects and services, which include: Geotechnical Eng.; Eng.
Geology; Geotechnical Earthquake Eng.; Geotechnical Instrumentation; Pavement Eng.; Forensic Geotechnical Eng.; Grading Monitoring and Field Testing; Soils & Materials Laboratory Testing; Special Inspection Services. Geo-Advantec owns a certified laboratory accredited by AMRL (ASSHTO Materials Reference Laboratory), in conformity to the requirements of the AASHTO Accreditation Program (AAP), AASHTO R-18, ASTM D3740 and ASTM E329; CCRL (Cement and Concrete Reference Laboratory); Caltrans; DSA (the Department of the State Architects); Army Corp of Engineers.
Transtech uses this subconsultant in several other cities, including in West Covina. • LANDSCAPE PLAN REVIEW SUPPORT: WITHERS & SANDGREN, LTD. www.withersandsandgren.com) Withers & Sandgren has been involved in providing varying levels of support to Community Development Departments for over twenty years. The firm has provided counter support for walk in plan reviews, been monthly Design Review Committee attendees, as well as presenters with planning staff to Planning Commissions and City Councils.
Transtech uses this subconsultant in several other cities, including in West Covina.
5. LIST OF
SIMILAR
SERVICES
COMPLETED
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.1
5.1 Examples of Similar Projects
Following are few Sample Projects Representative of Transtech’s Experience in Requested Services:
Agency: CITY OF WEST COVINA
Project: Vincent Residential Development (Valuation $32 m).
This development includes 119-unit residential homes.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF WEST COVINA
Project: Asteria Residential Development (Valuation $40 m).
This development includes 158-unit residential homes.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF WEST COVINA
Project: Drive-Through Restaurant (Valuation $0.8 m). This development includes a drive-through Restaurant.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF WEST COVINA
Project: West Cameron Residential Development (Valuation $20 m). This development includes 84-unit residential homes.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.2
Agency: CITY OF TEMPLE CITY
Project: Blossom Walk Residential Development (Valuation $6 m). This development includes 24-unit condominiums and 4 single family homes.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF SOUTH EL MONTE
Project: Chico Residential Development (Valuation $15 m).
This development includes 13 buildings with 70 residential units.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF COMMERCE
Project: Warehouse with Office Space Development
(Valuation $20 m). This development includes one-story of warehouse with mezzanines for office use of 114,898 square feet of total floor area in a 5.65-acre lot.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: CITY OF ALHAMBRA
Project: Main Street Collection (Valuation $23 m). This development includes 4-story mixed-use project with 8,200 s ft retail space, 52 condos, 9 live/work units, 19 townhomes, and 6 shopkeeper units.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.3
Agency: CITY OF WEST COVINA
Project: Medical Center Building (Valuation $20 m). This project is a new Medical Office Building of approximately 55,000 sf that will operate 24/7 providing a radiation
oncology department and infusion department.
Transtech provided following services:
• Establishing conditions of approval and coordination with the Planning Staff for the entitlement of the project.
• Building Plan Check and Inspection.
• Engineering Plan Check and Inspection.
Transtech serves as the City’s Contract Building Official, City Engineer, City Traffic Engineer.
Agency: SAN MANUEL BAND OF MISSION INDIANS TRIBE AND
CASINO
Project: Casino Expansion/Development (Valuation $700 m):
This project involves Casino’s expansion program, which includes casino renovation, new hotel, entertainment
center, parking structure, pedestrian bridges, alignment of entry and exit roads, and various other improvements.
Transtech provided following services:
• Building Plan Check and Inspection.
• Fire Plan Check.
Transtech serves as the Tribe’s and Casino’s (they are 2 sperate entities) Contract Building Official, Plan Checker, Inspector and Fire Marshall.
5.2 Company Qualifications
About Transtech:
Established in 1989, Transtech (a California Corporation) is a multi-disciplinary municipal engineering consulting firm. Transtech has been in business for 33 years and provides municipal services to approximately 70 public agencies.
Unique Qualification:
One of the unique qualifications of Transtech is that we serve public agencies as municipal contract service providers, including Contract City Engineer, City Traffic Engineer, Building Official, CIP Manager, Planner and in other capacities. Several of our Sr. Staff members have previously worked for Public Agencies in various capacities, such as Public Works Directors, City Engineers, City Traffic Engineers, Project Managers, Inspectors, Building Officials, Planners, and various other capacities. We are very familiar with public agency procedures, working and coordinating with various departments, preparing and presenting staff reports at City Council Meetings, Community/Public Relations, Inter-agency Coordination, Coordination with Regional Agencies, Caltrans, Counties, Water Boards, SCAG, Permitting Agencies and Utility Companies.
Service Capabilities:
Transtech is a multi-disciplinary municipal engineering consulting firm. Our service capabilities include:
• Building & Safety Services, Building Inspection, Plan Check Building Evaluations, City Building Official, Code
Enforcement
• City Engineer, City Traffic Engineer,
Development Review, Public Works
Engineering, Plan Check, Inspection
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.4
• Civil Engineering,
• Staff Augmentation
• CIP Program Management
• Construction Management and Inspection
• Federally Funded Project Management
• Grant Writing
• CDBG Project Management
• Labor Compliance
• Planning Support
• Traffic and Transportation Planning and Eng
• Water Resources Engineering
• Surveying, Mapping, ALTA, Right-of-way Eng
• Emergency, Support Services
Currently, we are providing municipal, services to approximately 70 agencies, including Building and Safety Services to several agencies:
City of Temple City
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Technician
City of Commerce
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Tech
City of Big Bear Lake
City of Alhambra
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Technician
City of South El Monte
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, As-needed Inspection, As-Needed
Permit Technician
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.5
Building & Safety Services: Building Plan Review
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Design, CIP and Construction
Management, PW PC/Insp, Fed Proj Management
City of Maywood
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Inspection,
Permit Technician
City of Chino
CIP Management Services: Transtech is City’s
Contract CIP Manager for major Public Works
Projects
City of Ontario
CIP Management Services: Transtech is City’s
Contract CIP Manager for major Public Works
Projects
City of Monterey Park
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, plan
check and as-needed inspection
City of Montebello
Project and Construction Management: Project
and Construction Management, Inspection
Building & Safety Services: Building Official, plan
check and as-needed inspection
Bear Valley Community Services District
District Engineering Services/CIP Management:
Engineering Support, Traffic Engineering, CIP
Management
City of South Pasadena
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Tech
City of Seal Beach
Building & Safety Services: Building Official, Plan
Review, As-needed Inspection
City of Azusa
Building & Safety Services: Building Official, Building Plan Review, As-needed Insp
San Manuel Indian Reservation
Building & Safety Services: Building Official, Plan
Review, Inspection
San Manuel Casino
Building & Safety Services: Building Official, Plan
City of West Covina
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW PC, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Technician
City of Rosemead
City Engineering Services: City Eng, Traffic Eng,
Development/Public Works Plan Check, Map and
Plan Check, Permit Inspection, Design, CIP and
Construction Management, PW Insp, Fed Proj
Management
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Tech
City of Pico Rivera
City Engineering and CIP Management Services:
City Engineer and CIP Management.
City of Bell
Building & Safety Services: Building Official, Plan
Review, Inspection, Permit Technician
City of Cudahy
CIP Management and Engineering Services:
Traffic Eng, Design, CIP and Construction
Management, PW Insp, Fed Proj Management
Building & Safety Services: Plan Review.
City of Hawaiian Gardens
Building and Safety Services: Building Official, Plan Review, Inspection, Permit Technician
City of Downey
Building & Safety Services: Plan Review,
Inspection
County of Riverside
Building & Safety Services: Plan Review,
Inspection
San Bernardino County Housing Authority
On-call Services: As-Needed Support
City of San Bernardino
On-call Services: Traffic Engineering, Constr.
Management
City of El Monte
On-call Services: Engineering Support, Traffic
Engineering, Construction Management,
Development/Public Works Plan Check, Map and
Plan Check
County of Los Angeles
Building & Safety Services: Plan Review,
Inspection
City of Norwalk
Building & Safety Services: Plan Review
City of San Marino
BUILDING AND SAFETY SERVICES
5. LIST OF SIMILAR SERVICES COMPLETED 5.6
Review, Inspection
City of Placentia
On-call PM/CM and Development/PW Plan
Check: On-call services
City of Rialto
City Traffic Engineering and PW Inspection
Services: City Traffic Engineering, PW Inspection
services
City of Culver City
On-call Engineering Services: Eng Services
City of Santa Ana
On-call Services: Building and Safety Plan Check,
Inspection, Eng and Tech Support Services
City of Chino Hills
On-call Services: Engineering
City of Pasadena
On-call Engineering Services: Engineering Services
City of Rancho Palos Verdes
CIP Project Management: CIP/Fed Proj
Management
Building & Safety Services: Plan Review, Inspection.
City of Lawndale
PW Staffing and Project Management Services: PW
Staffing and Project Management Services
City of Anaheim
Engineering Services: Engineering Services
City Traffic Engineering Services: City Traffic
Engineering
City of Hermosa Beach
Plan Check Services: Dev Plan Check
City of Banning
Public Works Plan Check: PW Plan Check and Pw
Inspection
Riverside County Economic Development Agency
On-call Services: Eng, Building Evaluations, &
Surveying
City of Lancaster
On-call Services: Plan Check, Inspection, Traffic
Eng, Staff Augmentation, and Tech Support
Services
City of Palm Desert
City Traffic Engineering Services: City Traffic
Engineering
City of Irwindale
On-call Services: Constr. Management and Insp
Services
City of Lynwood
On-call Services: Engineering, CIP and
Construction Management.
City of Yorba Linda
Traffic Engineering Services: On-call Traffic
Engineering
City of Lake Forest
CIP Project Management: CIP/Fed Proj
Management
Readily Available Large Pool of Staff and Resources:
Transtech has a large pool of well experienced staff and resources readily available to provide requested services, and respond to requests in a timely, efficient, and cost-effective manner. Our staff and resources include approximately 200, including building officials, plan checkers, inspectors, permit technicians, engineers, project managers, designers, plan checkers, inspectors, construction managers, traffic and transportation analysts, technicians, support personnel.
6. REFERENCES
BUILDING AND SAFETY
SERVICES
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.1
Following are references from few of our current Contract Cities where we provide Building and Safety Services:
CITY OF ALHAMBRA
Contact: Andrew Ho, Community Development Director; T: 626-570-5041; E:
[email protected]
Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
CITY OF SOUTH PASADENA
Contact: Angelica Frausto-Lupo, Community Development Director; T: 626-403-7222; E: [email protected]
Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection)
CITY OF TEMPLE CITY
Contact: Bryan Cook, City Manager; T: 626-285-2171; E: [email protected] Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
CITY OF MONTEREY PARK
Contact: Ron Bow, City Manager; T: 626-307-1255; E: [email protected] Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
CITY OF SOUTH EL MONTE
Contact: Rene Salas, Interim City Manager, T: Phone: 626-579-6540, E: [email protected] Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.2
CITY OF WEST COVINA
Contact: David Carmany, City Manager; T: 626-939-8401; E: [email protected] Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
CITY OF COMMERCE
Contact: Jose Jimenez, Development Services Director; T: 323-722-4805; E:
[email protected]
Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection); City Engineering Services; Traffic Engineering; CIP Management; Federally Funded Project Management; Engineering Design; Public Works Permit Inspections; Map Check.
CITY OF AZUSA
Contact: Sergio Gonzalez, City Manager; T: 626-812-5239; E: [email protected] Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection)
CITY OF BELL
Contact: Manuel Acosta, Community Development Director, T: (323) 588-6211, E:
[email protected]
Services Provided: Building & Safety Services (Building Official, Plan Check, Inspection) Please see reference letters on following pages from above references:
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.3
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.4
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.5
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.6
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.7
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.8
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.9
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.10
BUILDING AND SAFETY SERVICES
6. REFERENCES 6.11
ATTACHMENTS –
CITY REQUIRED
FORMS
BUILDING AND SAFETY
SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.1
BUILDING AND SAFETY SERVICES
Attachment A: Statement of Non-Collusion by Contractor
ATTACHMENTS - CITY REQUIRED FORMS A.2
BUILDING AND SAFETY SERVICES
Ayla Jefferson, CBO, CSP, Principal Building Official
13367 Benson Ave
Chino CA 91710
Chino, CA
11-28-2022
Principal Transtech Engineers, Inc.
Transtech Engineers, Inc.
ATTACHMENTS - CITY REQUIRED FORMS A.3
BUILDING AND SAFETY SERVICES
Attachment B: Subcontractor Campaign Contribution
Acknowledgement Form (if applicable)
ATTACHMENTS - CITY REQUIRED FORMS A.4
BUILDING AND SAFETY SERVICES
Ayla Jefferson, CBO, CSP
11-28-2022
Transtech Engineers, Inc.
Principal Building Official
Prime Consultant: TRANSTECH ENGINEERS, INC.
ATTACHMENTS - CITY REQUIRED FORMS A.5
BUILDING AND SAFETY SERVICES
Sub-Consultant : GEO-ADVANTEC, INC.
ATTACHMENTS - CITY REQUIRED FORMS A.6
BUILDING AND SAFETY SERVICES
Sub-Consultant: WITHERS & SANDGREN, LTD.
ATTACHMENTS - CITY REQUIRED FORMS A.7
BUILDING AND SAFETY SERVICES
Attachment C: Sam.gov Verification
Prime Consultant: TRANSTECH ENGINEERS, INC.
ATTACHMENTS - CITY REQUIRED FORMS A.8
BUILDING AND SAFETY SERVICES
Prime Consultant: TRANSTECH ENGINEERS, INC.
Principal Staff: Allen Cayir, PE
ATTACHMENTS - CITY REQUIRED FORMS A.9
BUILDING AND SAFETY SERVICES
Prime Consultant: TRANSTECH ENGINEERS, INC.
Principal Staff: Ayla Jefferson, CBO
ATTACHMENTS - CITY REQUIRED FORMS A.10
BUILDING AND SAFETY SERVICES
Prime Consultant: TRANSTECH ENGINEERS, INC.
Principal Staff: Dennis Tarango, CBO
ATTACHMENTS - CITY REQUIRED FORMS A.11
BUILDING AND SAFETY SERVICES
Prime Consultant: TRANSTECH ENGINEERS, INC.
Principal Staff: Ahmad Ansari, PE
ATTACHMENTS - CITY REQUIRED FORMS A.12
BUILDING AND SAFETY SERVICES
Sub-Consultant : GEO-ADVANTEC, INC.
ATTACHMENTS - CITY REQUIRED FORMS A.13
BUILDING AND SAFETY SERVICES
Sub-Consultant : GEO-ADVANTEC, INC.
Principal Staff: Shan Ariannia, PhD, PE, GE
ATTACHMENTS - CITY REQUIRED FORMS A.14
BUILDING AND SAFETY SERVICES
Sub-Consultant: WITHERS & SANDGREN, LTD.
ATTACHMENTS - CITY REQUIRED FORMS A.15
BUILDING AND SAFETY SERVICES
Sub-Consultant: WITHERS & SANDGREN, LTD.
Principal Staff: Lacy Withers, ASLA, CA RLA
ATTACHMENTS - CITY REQUIRED FORMS A.16
BUILDING AND SAFETY SERVICES
Attachment D: Fee Schedule
Inspection, Permit counter and Plan Review services will be provided based on the below sliding scale percentage table.
Monthly Building Division Revenues Fees
Up to $150,000 50% of the revenues
$150,001 to $250,000 40% of the revenues
$250,001 and above 35% of the revenues
The minimum monthly fee no less than $50,000
Where fees are waived or reduced, hourly standard rates shall be applicable for the services provided.
Any other services shall be per the hourly standard rates.
RFP Section:
10.16 PIGGYBACKING OPTION
The City would like to make the same pricing structures available to other government agencies. Proposers shall indicate in their proposal whether they agree to extend pricing to other agencies and for what length of time. Inclusion is not mandatory and will have no bearing on the contract award.
Response to RFP Section
The pricing structure, duration and terms included in our proposal for the same service and staffing level is available to other government agencies.
ATTACHMENTS - CITY REQUIRED FORMS A.17
BUILDING AND SAFETY SERVICES
TRANSTECH ENGINEERS, INC.
SCHEDULE OF HOURLY RATES
Effective through June 30, 2023
Rates are average, negotiable and can be modified to establish a fee for each assignment based on the specific project’s scope, when such projects are identified by the City.
ENGINEERING CONSTRUCTION MANAGEMENT BUILDING & SAFETY
Field Technician $72 Labor Compliance Analyst $132 Permit Technician $67 Engineering Technician $88 Funds Coordinator $132 Building Inspector $93 Assistant CAD Drafter $104 Utility Coordinator $148 Senior Building Inspector $104 Senior CAD Drafter $127 Office Engineer $121 Plans Examiner/Checker $132 Associate Designer $132 Construction Inspector $127 Plan Check Engineer/Supervisor $143 Senior Designer $143 Senior Construction Inspector $143 CASp Plan Checker $155 Design Project Manager $176 Construction Manager $176 Deputy Building Official $143 Assistant Engineer $111 Resident Engineer $176 Building Official $156 Staff Engineer $137 PUBLIC WORKS INSPECTION PLANNING
Associate Civil Engineer $137 Public Works Inspector $127 Community Development Technician $67
Senior Civil Engineer $176 Senior Public Works Inspector $143 Planning Technician $67 Traffic Analyst Technician $88 Supervising PW Inspector $148 Assistant Planner $104 Associate Traffic Analyst $104 SURVEY AND MAPPING Associate Planner $121 Senior Traffic Analyst $143 Survey Analyst $127 Senior Planner $132 Professional Transportation
Planner $165 Senior Survey Analyst $132 Planning Manager $148 Traffic Engineer Technician $88 2 Man Survey Crew $308 Deputy Director $187 Associate Traffic Engineer $137 Survey & Mapping Specialist $176 Director $199 Traffic Engineer $155 Licensed Land Surveyor $192 SPECIAL RATES Senior Traffic Engineer $176 FUNDING & GRANT WRITING CITY ENGINEER/TRAFFIC ENGINEER/SR. ENGINEER $150
Project Manager $165 Funds Analyst $111 BUILDING OFFICIAL $150 Senior Project Manager $176 Senior Funds Analyst $132
Deputy City Engineer $155 Graphic & Rendering Designer $121 Senior City Engineer $176 Grant Writer $132
Principal Engineer $199 Funds & Grant Project
Manager $165
be increased each year July 1
Subcontractor services shall be a pass-through invoice with 10% surcharge.
The above fees will be increased each year July 1st automatically by the percentage change Los Angeles-Long Beach-Anaheim California Consumer Price Index-All Urban Consumers (“CPI-U”) for the preceding twelve-month period as calculated for February by the U.S. Department of Labor Bureau of Labor Statistics and published by the United States Bureau of Labor Statistic.
ATTACHMENTS - CITY REQUIRED FORMS A.18
BUILDING AND SAFETY SERVICES
Attachment E: Scope of Services
ATTACHMENTS - CITY REQUIRED FORMS A.19
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.20
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.21
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.22
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.23
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.24
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.25
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.26
BUILDING AND SAFETY SERVICES
Attachment F: Sample Agreement
ATTACHMENTS - CITY REQUIRED FORMS A.27
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.28
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.29
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.30
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.31
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.32
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.33
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.34
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.35
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.36
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.37
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.38
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.39
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.40
BUILDING AND SAFETY SERVICES
ATTACHMENTS - CITY REQUIRED FORMS A.41
BUILDING AND SAFETY SERVICES
AGENDA ITEM NO. 6
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 CONSTRUCTION AGREEMENT FOR THE CITYWIDE PEDESTRIAN & VEHICLE TRAFFIC SAFETY IMPROVEMENTS FY 22-23 - PROJECT NO. 23027
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Award the construction agreement for the Citywide Pedestrian & Vehicle Traffic Safety Improvements (Project No. 23027) to Superior Pavement Markings, Inc. as the lowest responsible bidder;
1. Authorize the City Manager to execute an agreement with Superior Pavement Markings, Inc. for $232,916.00, in substantially the form as attached and in such final form as approved by the City Attorney;
2. Authorize 15% of the awarded contract amount as contingency allowance to be used, if necessary, with the City Manager's approval, for unforeseen conditions;
3. 4. Authorize the City Manager to negotiate and execute any amendments to the agreement; Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (Replacement or Reconstruction).
5. BACKGROUND:
On June 7, 2022, the City Council approved the Traffic Committee meeting recommendations from the Traffic Committee meetings held between November 2021 and May 2022. These recommendations included various pedestrian and vehicle traffic safety improvements at various locations citywide.
This project includes all the approved Traffic Committee traffic safety recommendations at approximately 19 locations citywide. Major work components include installation of pedestrian and vehicle traffic safety improvements including signage, striping, and pavement markers at various locations Citywide and all related work.
The improvement locations include the following:
1. Greenleaf Drive curve near Brynwood Place
2. Glendora Avenue at Walnut Creek Parkway
3. Vine Avenue at Hollenbeck Avenue
4. Lark Hill Drive and Citrus Street
5. Workman Avenue between Azusa Avenue and Lark Ellen Avenue
6. Mobeck Street to Cameron Avenue
7. Segment of Casa Grande Drive between Michelle Street and Hollencrest Drive
8. Rowland Avenue Elementary School
9. Intersection at Glenview Road and Francisquito Avenue
10. Intersection of Lisa Street at Nanette Avenue
11. Workman Avenue between Azusa Avenue and Workman Avenue Elementary School
12. Willow Avenue at Alwood Street & Tamar Drive at Alwood Street
13. Merced Avenue between Azusa Avenue and Glenview Road
14. Pacific Avenue between Cameron Avenue and West Covina City Limit
15. Ridgewood Avenue between Nanette Avenue and Amar Road
16. 1838 and 1822 Cortez Street
17. Traweek Middle School, Drop Off And Pick Up
18. Jennifer Place & Eclipse Way
19. Sunset Avenue At Rowland Avenue
DISCUSSION:
On November 15, 2022, staff advertised the construction bid package. The following two (2) bids were received by the City at the Bid Opening held on December 14, 2022, at 1:00 pm.
Contractor Name Total Bid Amount
Superior Pavement Markings, Inc. $232,916.00
Sterndahl Enterprises LLC $242,000.00
Staff conducted a bid analysis including checking references, California Contractor Licensing, Department of Industrial Relations registration, State and Federal debarment list review for the apparent low bidder, Superior Pavement Markings, Inc.
Lowest Responsive Bid
The lowest responsive bid was submitted by Superior Pavement Markings, Inc. in the amount of $232,916.00. Following Council’s approval, the City will enter into an agreement with Superior Pavement Markings for $232,916.00 in substantially the form as attached in Attachment No. 1 and in such final form approved by the City Attorney.
Project Timeline
The project is anticipated to be completed within of 4 months from Notice to Proceed. Anticipated completion is by end of June 2023.
LEGAL REVIEW:
The City Attorney's Office will approve the final form of the construction agreement prior to execution.
OPTIONS:
The City Council has the following options:
1. Approve Staff's recommendation; or
2. Provide alternative direction.
ENVIRONMENTAL REVIEW:
The proposed project is a project subject to the California Environmental Quality Act (CEQA). Staff has reviewed the proposed project and has determined that it is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15302(c) (Replacement or Reconstruction): Replacement or reconstruction of existing utility and/or facilities involving negligible or no expansion of capacity.
Prepared by: Okan Demirici PE, CIP Manager
Prepared by: Okan Demirici PE, CIP Manager
Fiscal Impact
FISCAL IMPACT:
The following is the breakdown of the total project estimate:
Project Construction Budget $232,916.00
Proposed Contingency allowance (15%) $34,937.40
Subtotal Construction Estimate $267,853.40
Project Management and Administration (Including Preparation of Bid Documents) $14,000.00 Construction Management and Inspection $26,785.00
Total Project Estimate $308,638.40
This contract was budgeted within an existing project, Citywide Pedestrian & Vehicle Safety Improvements (Project No. 22004), which has an available balance of $1,646,871. Staff proposes reallocating a portion of this balance to a new project for ease of tracking and transparency. Funding for the new project (No. 23027, Citywide Pedestrian & Vehicle Safety Improvements FY22-23) is proposed as follows:
Project
No.
Fund Account No. Current
FY2022-23
Budget
Proposed
Transfer
Amended
FY2022-23
Budget
22004 Fund 237, SB1 - ROAD
MAINT REHAB
237.80.7005.7200 1,827,630 -309,000 1,518,630
23027 Fund 237, SB1 - ROAD
MAINT REHAB
237.80.7005.7200 0 309,000 309,000
Total $1,827,630 $0 $1,827,630
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 contract is approved, an internal budget transfer will be processed.
Attachments
Attachment No. 1 - Construction Services Agreement
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Enhance City Image and Effectiveness
A Creative and Active Communuty
ATTACHMENT NO. 1
CITY OF WEST COVINA
CONSTRUCTION SERVICES AGREEMENT FOR
PROJECT NO. 23027
CITYWIDE PEDESTRIAN & VEHICLE TRAFFIC SAFETY IMPROVEMENTS FY 22-23
THIS CONSTRUCTION SERVICES AGREEMENT (herein “Agreement”), is made and entered into this 17th day of January, 2023 (“Effective Date”) by and between the CITY OF WEST COVINA, a municipal corporation (herein “City”), and SUPERIOR PAVEMENT MARKINGS, INC., a California Corporation (herein “Contractor”).
RECITALS
A. City requires construction services for the Citywide Pedestrian & Vehicle Traffic Safety Improvements, Project No. 23027 (“Project”), that meet the requirements as shown in the project specifications and this Agreement.
B. Contractor has submitted a bid to perform the construction services for the Project and has represented to City that Contractor is qualified to perform said services.
C. City has determined that Contractor is the lowest responsible bidder.
D. City and Contractor desire to enter into this Agreement for the Project on the terms and conditions set forth herein.
NOW, THEREFORE, based on the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, City and Contractor hereby agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide all work described in the Contract Documents, as further described herein, which services may be referred to herein as the “services” or “work”. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality and fit for the purpose intended.
1.2 Documents Included in Contract. The complete Agreement consists of:
(a) This Agreement;
(b) Notice to Contractors and Instructions to Bidders, Bid Documents and Contract Documents for the Project (collectively, “Bid Documents”), incorporated by this reference as if fully set forth herein;
Project No. 23027
2 Rev. 12-2022
(c) Addendum No. 1 to the Bid Documents, dated November 19, 2022, incorporated by this reference as if fully set forth herein; (d) Addendum No. 2 to the Bid Documents, dated December 2, 2022, incorporated by this reference as if fully set forth herein;
(e) Contractor’s Proposal, attached hereto as Exhibit A and incorporated herein; (f) Certificates of Insurance, attached hereto as Exhibit B and incorporated herein; (g) Bonds, attached hereto as Exhibit C and incorporated herein; (h) The Standard Specifications and Standard Specifications for Public Works Construction, as detailed in Section 19-1 of the West Covina Municipal Code, incorporated by this reference as if fully set forth herein; and (i) All exhibits and attachments to the foregoing documents.
The documents comprising the complete Agreement may be referred to in this Agreement as the “Contract Documents.” In the event of an inconsistency between any of the terms in this Agreement and any of the documents referenced above, this Agreement shall govern.
1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time the work is performed.
1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement, including a business license from the City. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or imposed against City hereunder.
Contractor shall be responsible for all subcontractors’ compliance with this Section.
1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (a) has thoroughly investigated and considered the Scope of Services to be performed, (b) has carefully considered how the services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the Contract Officer.
1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own active negligence.
1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and Project No. 23027
3 Rev. 12-2022
diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Contractor shall require all subcontractors to comply with the provisions of this Agreement.
1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. All change orders are subject to the requirements of West Covina Municipal Code Section 2-358. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor.
1.9 Prevailing Wage Requirements.
(a) Prevailing Wage Laws. Contractor is aware of the requirements of Chapter 1 (beginning at Section 1720 et seq.) of Part 7 of Division 2 of the California Labor Code, as well as Title 8, Section 16000 et seq. of the California Code of Regulations (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. This Project is a “public works” project and requires compliance with the Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. (b) Payment of Prevailing Wages. Contractor shall pay the prevailing wage rates for all work performed under this Agreement. When any craft or classification is omitted from the general prevailing wage determinations, Contractor shall pay the wage rate of the craft or classification most closely related to the omitted classification. A copy of the general prevailing wage rate determination is on file in the Office of the City Clerk and is incorporated into this Agreement as if fully set forth herein. Contractor shall post a copy of such wage rates at all times at the project site(s). (c) Legal Working Day. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day. Contractor and any subcontractor(s) of Contractor shall comply with the provisions of the Labor Code regarding eight (8)-hour work day and 40-hour work week requirements, and overtime, Saturday, Sunday, and holiday work. Work performed by Contractor’s or any subcontractor’s employees in excess of eight (8) hours per day, and 40 hours during any one week, must include compensation for all hours worked in excess of eight (8) hours per day, or 40 hours during any one week, at not less than one and one-half times the basic rate of pay. Contractor shall forfeit as a penalty to City Twenty-Five Dollars ($25.00), or any greater penalty set forth in the Labor Code, for each worker employed in the execution of the work by Contractor or by any subcontractor(s) of Contractor, for each calendar day during which such worker is required or permitted to the work more than eight (8) hours in one calendar day or more than 40 hours in any one Project No. 23027
4 Rev. 12-2022
calendar week in violation of the Labor Code.
(d) Apprentices. Contractor shall comply with the provisions of Labor Code Section 1777.5 concerning the employment of apprentices on public works projects. Contractor shall be responsible for ensuring compliance by its subcontractors with Labor Code Section 1777.5. (e) Payroll Records. Pursuant to Labor Code Section 1776, Contractor and any subcontractor(s) shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by Contractor or any subcontractor in connection with this Agreement. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct; and (2) The employer has complied with the requirements of Sections 1771, 1881, and 1815 of the Labor Code for any work performed by his or her employees on this Project. The payroll records shall be certified and shall be available for inspection at all reasonable hours in accordance with the requirements of Labor Code Section 1776.
(f) Registration with DIR. Contractor and any subcontractor(s) of Contractorshall comply with the provisions of Labor Code Section 1771 and Labor Code Section 1725.5 requiring registration with the DIR.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated as specified herein, but not exceeding the maximum contract amount of Two Hundred Thirty Two Thousand Nine Hundred Sixteen Dollars($232,916.00) (herein “Contract Sum”), except as provided in Section 1.8 (Additional Services). The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor shall not be entitled to any additional compensation for attending said meetings.
2.2 Progress Payments. Prior to the first day of the month, during the progress of the work, commencing on the day and month specified in the Agreement, Contractor shall submit to the Contract Officer a complete itemized statement of all labor and materials incorporated into the work during the preceding month and the portion of the Contract Sum applicable thereto. Upon approval in writing by the Contract Officer, payment shall be made within thirty (30) days. City shall pay Contractor a sum based upon ninety five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the work under the Agreement during the month covered by said statement. The remaining five percent (5%) of the Contract Sum shall be retained as performance security as detailed in Section 2.3 (Retention of Funds).
2.3 Retention of Funds. Progress payments shall be made in accordance with the provisions of Section 2.2 (Progress Payments) of this Agreement. In accordance with said section, City will retain five percent (5%) of the Contract Sum apportionment from each progress payment as performance security to be paid to the Contractor within sixty (60) days after final acceptance of the work by the City Council, after Contractor furnishes City with a release of all undisputed contract amounts if required by City. If there are any claims specifically excluded by Contractor Project No. 23027
5 Rev. 12-2022
from the operation of the release, the City may retain proceeds as authorized by Public Contract Code Section 7107 of up to 150% of the amount in dispute. City’s failure to deduct or withhold shall not affect Contractor’s obligations hereunder. To the extent consistent with Public Contract Code Section 22300, Contractor may request and City shall make payment of retentions earned directly to an escrow agent at the expense of Contractor, and may direct the investment of the payments into securities and Contractor shall receive the interest earned on the investments upon the same terms provided for in Public Contract Code Section 22300 for securities deposited by Contractor. Upon satisfactory completion of this Agreement, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall complete all services within sixty (60) working days. Contractor shall submit for the Contract Officer’s approval its proposed Construction Schedule. Contractor shall perform the services in accordance with the approved Construction Schedule. When requested by the Contractor, extensions to the time period(s) specified in the Construction Schedule may be approved in writing by the Contract Officer.
3.3 Force Majeure. The time period(s) specified in the Construction Schedule for performance of the services rendered pursuant to this Agreement shall be extended to the extent caused by delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency other than the City, if the Contractor within ten (10) days of the commencement of such delay notifies the Contract Officer in writing of the causes for the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. Contractor shall not be entitled to any damages or increase in compensation due to force majeure.
3.4 Term. Unless earlier terminated as set forth herein, this Agreement shall continue in full force and effect until final approval and acceptance of the project by the City.
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principal(s) of Contractor are hereby designated as being the principal(s) and representative(s) of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
Darren Veltz, Chief Financial Officer
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principal(s) were a substantial inducement for City to enter into this Agreement. Therefore, Project No. 23027
6 Rev. 12-2022
the foregoing principal(s) shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder.
For purposes of this Agreement, the foregoing principal(s) may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.
4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager or City Engineer of City. The Contractor shall keep the Contract Officer informed of Contractor’s progress on the services. The Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein or in the City’s Municipal Code, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required by this Agreement, to the extent permitted by the City’s Municipal Code.
4.3 Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the City’s express consent.
4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its subcontractors, agents or employees, performs the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, subcontractors, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
Contractor shall not at any time or in any manner represent that it or any of its subcontractors, agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venture or a member of any joint enterprise with Contractor.
4.5 Identity of Persons Performing Work. Contractor represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all tasks and services set forth herein. Contractor represents that the tasks and services required herein will be performed by Contractor or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.
4.6 Utility Relocation. City, and not Contractor, is responsible for removal, relocation, or protection of existing main or trunkline utilities but only to the extent such utilities were not identified in the invitation for bids or specifications. Where the specifications call for the Contractor to remove, relocate, reconstruct or protect such lines, all such work shall be deemed included in the Contract Sum.
Project No. 23027
7 Rev. 12-2022
Contractor having been presented with a reasonable basis to suspect that any previously unidentified main or trunkline may need to be removed, relocated or protected in place, Contractor shall immediately notify City and the affected utility company in writing of such belief, and the basis therefor, and Contractor shall thereafter work with the City and the utility company to coordinate such removal, relocation or protection. City shall reimburse Contractor for its reasonable costs incurred in locating and repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed liquidated damages for delays which meet both of the following requirements: (i) the delays occurred after Contractor gave City the written notice required by this Section; and (ii) the delays were caused by the removal, protection, or relocation of such unidentified utility facilities. Nothing herein shall be deemed to prevent the City from seeking reimbursement of any such costs from the affected utility company.
4.7 Trenches or Excavations. Pursuant to Public Contract Code Section 7104, if the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement.
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.8 (Additional Services) of this Agreement.
(c) If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.
4.8 Best Management Practices. Contractor shall implement and maintain activity specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and nonstormwater discharges to receiving waters as required in Municipal NPDES Permit No.
CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs shall be adequately trained to effectively implement, operate, and maintain such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify it has received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect.
Project No. 23027
8 Rev. 12-2022
5.0 INSURANCE
5.1 Minimum Scope and Limits of Insurance. Contractor shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, with a current A.M. Best’s rating of no less than A:VII, and approved by City:
(a) Broad-form commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00) per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit.
(b) Business automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limits per accident for bodily injury and property damage. (c) Workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Contractor agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Contractor for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.
By execution of this Agreement, the Contractor certifies as follows:
I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers’ Compensation or to undertake selfinsurance before commencing any of the work.
The Contractor shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers’ Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this section. (d) Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions. The Builder’s Risk coverage shall name the City as a loss payee. If the Project does not involve new or major construction, City may, in its discretion, permit an Installation Floater. If authorized, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, Project No. 23027
9 Rev. 12-2022
conversion, or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery, or equipment damaged, impaired, broken or destroyed during the performance of the work, including during transit, installation, and testing at the project site.
If the Contractor maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
5.2 Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions:
(a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Contractor pursuant to its contract with the City; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; automobiles owned, leased, hired, or borrowed by the Contractor.
(b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Contractor’s insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
(e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers.
(f) Coverage Applies Separately: The Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
5.3 Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. The City may require the Contractor to purchase Project No. 23027
10 Rev. 12-2022
coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.
5.4 Certificates of Insurance. Contractor shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
5.5 Non-limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement or the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor’s or its subcontractors’ performance of the work covered under this Agreement.
5.6 Subcontractors. Contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Contractor shall ensure that the City is listed as an additional insured on insurance required of subcontractors.
5.7 Sufficiency of Insurers. Insurance required by this Agreement shall be satisfactory only if issued by companies authorized to do business in California, rated with a current A.M. Best’s rating of no less than A:VII unless such requirements are waived by the City’s Risk Manager in writing due to unique circumstances. If the City’s Risk Manager determines that the work or services to be performed under this Agreement creates an increased risk of loss to the City, the Risk Manager may increase the minimum limits of the insurance policies required by this Section by providing written notice to Contractor; provided that the Contractor may appeal such determination to the City Council of City within ten (10) days of receipt of notice from the Risk Manager.
6.0 BONDS
6.1 Labor and Materials, Performance and Warranty Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City: (1) a labor and materials bond in an amount equal to one hundred percent (100%) of the Contract Sum as security for the payment of all persons furnishing labor or materials in connection with the work, (2) a performance bond in an amount equal to one hundred percent (100%) of the Contract Sum as security for the faithful performance of this Agreement, and (3) a warranty bond in an amount equal to fifty percent (50%) of the Contract Sum to guarantee the work for a period of one (1) year following completion of the work, on the forms provided by the City. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of the Agreement and shall be released or exonerated only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement.
6.2 Sufficiency of Sureties. Sureties must be authorized to issue bonds in California. In addition, sureties must possess a minimum rating from A. M. Best Company of A:VII and must be listed as an acceptable surety on federal bonds by the United States Department of the Treasury, Project No. 23027
11 Rev. 12-2022
http://www.fms.treas.gov/c570/c570.html, subject to the maximum amount shown in the listing. If cosureties are used, their bonds must be on a joint and several basis.
6.3 Substitution of Securities. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under the Agreement for the work to be performed will be permitted at the request and expense of Contractor.
7.0 INDEMNIFICATION
Contractor agrees to defend (with legal counsel of City’s choosing), indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Contractor’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Contractor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Contractor, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Contractor, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Contractor, its employees, and/or authorized subcontractors under this Agreement, whether or not the Contractor, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Contractor shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained in any other document, which shall be of no force and effect. (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith.
(b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor’s (or its agents’, employees’, subcontractors’, or invitees’) negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom. (c) If the City, its officers, agents or employees is/are made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees for counsel acceptable to City.
(d) Contractor’s duty to defend and indemnify as set forth herein shall include any claims, Project No. 23027
12 Rev. 12-2022
liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act (“FIFRA”), Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), Resource Conservation and Recovery Act of 1976 (“RCRA”), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances Control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter-Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.
Contractor’s indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification in favor of City from all subcontractors.
8.0 RECORDS AND REPORTS
8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer may require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.
8.2 Records. Contractor shall keep, and require subcontractors to keep, such books and records (including but not limited to payroll records as required herein) as may be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required.
8.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
Project No. 23027
13 Rev. 12-2022
9.0 ENFORCEMENT OF AGREEMENT; TERMINATION
9.1 Governing Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.
9.2 Notice of Default and Cure Period. If either party fails to perform its obligations hereunder, the nondefaulting party may provide the defaulting party written notice of such default. The defaulting party shall have ten (10) days to cure the default; provided that, if the default is not reasonably susceptible to being cured within said ten (10) day period, the defaulting party shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, provided the defaulting party commences to cure such default within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate danger to the health, safety and general welfare, the defaulting party shall take such immediate action as may be necessary. Notwithstanding the foregoing, the nondefaulting party may, in its sole and absolute discretion, grant a longer cure period. Should the defaulting party fail to cure the default within the time period provided in this Section, the nondefaulting party shall have the right, in addition to any other rights the nondefaulting party may have at law or in equity, to terminate this Agreement, and/or to call upon any completion or payment bond or other security for performance thereof. Compliance with the provisions of this Section shall be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured.
9.3 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City owned property which Contractor is permitted to occupy hereunder and City may, upon termination, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the City as previously stated.
9.4 Termination for Convenience. The City may terminate this Agreement without cause for convenience of the City upon giving Contractor thirty (30) days prior written notice of termination of the Agreement. Upon receipt of the notice of termination, the Contractor shall cease all further work pursuant to the Agreement. Upon such termination by the City, the Contractor shall not be entitled to any other remedies, claims, actions, profits, or damages except as provided in this paragraph. Upon the receipt of such notice of termination, Contractor shall be entitled to the following compensation:
(a) The contract value of the work completed through and including the date of receipt of the notice of termination, less the amount of progress payments received by Contractor. (b) Actual move-off costs including labor, rental fees, equipment transportation costs, the Project No. 23027
14 Rev. 12-2022
costs of maintaining on-site construction office for supervising the move-off. (c) The cost of materials custom-made for this Agreement which the Contractor cannot use in its normal course of business, and for which the City has not already paid. (d) Any costs shall not include any markups as might otherwise be allowed by any plans or specifications which were a part of the Agreement.
The provisions of this Section shall supersede any inconsistent provisions of the Agreement or the Bid Documents. City and Contractor agree that the provisions of this Section are a substantive part of this Agreement’s consideration.
9.5 “Claims” by Contractor under Section 9204. Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall be subject to all requirements of Public Contract Code Section 9204 (“Section 9204”) as it may be amended from time to time. The parties acknowledge that Section 9204 applies to certain requests by Contractor, such as certain requests for time extensions, certain requests for payments not covered by contract, and certain requests for payments of amounts disputed by City. The parties further acknowledge that Section 9204 establishes all of the following: (i) Contractor may submit a “claim” to the City, as that term is defined in Section 9204; (ii) City has an initial 45 days to review and respond to the claim to state “what portion of the claim is disputed and what portion is undisputed”. If the City does not issue a written statement, the claim is deemed rejected in its entirety; (iii) Contractor must furnish reasonable documentation to support the claim; (iv) City has 60 days from its written determination to pay any undisputed amount; and (v) specified procedures apply to resolve any amounts in dispute.
9.6 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be considered a waiver of any other default concerning the same or any other provision of this Agreement.
9.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
9.8 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
9.9 Liquidated Damages. Contractor agrees that failure to complete work within the time allowed herein will result in damages being sustained by the City. Contractor further agrees that the determination of actual damages for any delay in performance of this Agreement would be extremely Project No. 23027
15 Rev. 12-2022
difficult or impractical to determine in the event of a breach of this Agreement. Therefore, Contractor agrees that it and its sureties shall be liable for and shall pay to the City liquidated damages in the amount of Five Hundred Dollars ($500) for each calendar day of delay in the performance of any service required hereunder. Contractor further agrees that liquidated damages may be assessed for failure to comply with the emergency call out requirements described in the Scope of Services. The City may withhold from any amounts payable on account of services performed by the Contractor any accrued liquidated damages. Contractor, on behalf of itself and its sureties, and City agree that the liquidated damages constitute a reasonable estimate of actual damages, and are not punitive.
10.0 CITY OFFICERS AND EMPLOYEES, NONDISCRIMINATION
10.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
10.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, gender expression, marital status, national origin, disability, pregnancy, sexual orientation or ancestry in the performance of this Agreement. To the extent required by law, Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, gender expression, marital status, national origin, disability, pregnancy, sexual orientation or ancestry.
11.0 MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class mail, return receipt requested, addressed as follows:
To City: City of West Covina
1444 West Garvey Avenue South
West Covina, CA 91790
Attn: City Engineer
To Contractor: Superior Pavement Markings, Inc.
5312 Cypress Street
Cypress, CA 90630
Att: Darren Veltz
11.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of Project No. 23027
16 Rev. 12-2022
the authorship of this Agreement or any other rule of construction which might otherwise apply.
11.3 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.
11.4 Severability. If one or more of the words, phrases, sentences, clauses, paragraphs, or sections in this Agreement is declared unenforceable by a court of competent jurisdiction, such unenforceability shall not affect any of the remaining words, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are severable. Remaining enforceable provisions shall be interpreted to carry out the intent of the parties unless an invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.
11.5 Hiring of Undocumented Aliens Prohibited. Contractor shall not hire, employ, or allow any person to work under this Agreement unless such person is properly documented and may legally work within the United States.
11.6 Unfair Business Practices Claims. Consistent with Public Contract Code Section 7103.5, Contractor, on behalf of itself and all subcontractors, offers and agrees to assign to the City all rights, title, and interest in and to all causes of action they may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) and under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to this Agreement. This assignment becomes effective when the City renders final payment to the Contractor without further acknowledgment by the parties.
11.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.
11.8 Legal Responsibilities. The Contractor shall keep itself informed of City, State, and Federal laws, ordinances and regulations, which may in any manner affect the performance of its services pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws, ordinances and regulations. Neither the City, nor its officers, agents, assigns nor employees shall be liable at law or in equity as a result of the Contractor’s failure to comply with this Section.
11.9 Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures.
ATTACHMENT NO. 1
IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first written above.
CITY OF WEST COVINA,
A municipal corporation
__________________________________ Date: __________________________ David Carmany
City Manager
CONTRACTOR
__________________________________ Date: __________________________ Darren Veltz
Chief Financial Officer
ATTEST:
________________________________
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
__________________________________ Date: ________________________ Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
____________________________________ Date: ________________________ Helen Tran
Risk Management
EXHIBIT A
CONTRACTOR’S PROPOSAL
EXHIBIT B
CERTIFICATES OF INSURANCE
EXHIBIT C
BONDS
AGENDA ITEM NO. 7
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 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) AND OTHER RELATED REPORTS FOR THE YEAR ENDED JUNE 30, 2022
RECOMMENDATION:
It is recommended that the City Council receive and file the following letters and financial reports for the year ended June 30, 2022:
Annual Comprehensive Financial Report;
Government Auditing Standards Letter;
Audit Communication Letter; and
Community Financial Report.
BACKGROUND:
Annually, the Finance Department prepares and publishes the City’s Annual Comprehensive Financial Report (“ACFR”) following the completion of an independent and certified audit (Attachment No. 1). This document is an extensive report summarizing the financial activities of the City that occurred from July 1, 2021 through June 30, 2022.
Effective for the year ended June 30, 2022, the City implemented GASB 87 - Leases. The Statement requires recognition of certain lease assets for leases that previously were classified as operating leases and recognized as inflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use an underlying asset. Otherwise, no changes were made to the report’s structure or content.
The ACFR is prepared in compliance with the Governmental Accounting Standards Board (GASB) standards. Pursuant to GASB guidelines, the City’s ACFR is divided into three sections: Introductory, Financial, and Statistical. The Introductory section contains a Letter of Transmittal. This letter includes a brief overview of the City, the economic outlook, operational controls and major initiatives.
The Financial section contains the independent auditors’ opinion letter, Management’s Discussion and Analysis (MD&A), and the Basic Financial Statements. The audit firm of Van Lant & Fankhanel LLP has issued an unmodified ("clean") opinion on the financial statements for the year ended June 30, 2022.
This means that their examination, testing and audit procedures allowed them to conclude that the financial statements present fairly the financial position of the City. This is the best opinion the City can receive from its auditors.
The MD&A provides a narrative of how the financial report is presented and key highlights of some of the changes in financial position. The MD&A provides tables showing comparative information from the year ended June 30, 2021 to the year ended June 30, 2022.
The final section of the ACFR is the Statistical section. This section presents data useful in analyzing the City’s financial and operational history for comparative purposes. Some of the statistics tracked include financial trends, revenue capacity, and debt capacity which are useful for evaluating the City’s financial stability. Additional statistics include operating indicators.
The Annual Comprehensive Financial Report was reviewed by the Audit Committee on December 21, 2022.
DISCUSSION:
Annual Comprehensive Financial Report
The ACFR represents the City of West Covina’s financial position at June 30, 2022 and includes financial statements for all of its component units.
Government Auditing Standards Letter
The Government Auditing Standards Letter (Attachment No. 2) notes any identified deficiencies or weaknesses in internal control over financial reporting that could lead to material misstatements in the City’s financial statements as well as any other compliance findings.
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.
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 City’s financial statements will not be prevented or detected and corrected on a timely basis.
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.
The auditors did not identify deficiencies in internal control over financial reporting that they considered to be weaknesses.
Audit Communication Letter
The Audit Communication Letter (Attachment No. 3) provides certain information related to the audit of the City’s financial records including the following:
Qualitative Aspects of Accounting Practices – The letter notes that City management is responsible for the selection and use of appropriate accounting policies. The letter indicates that there have been no significant changes in accounting policies or their application during the fiscal year. The letter also noted that there were no transactions entered into by the City during Fiscal Year 2021-22 for which there was a lack of authoritative guidance, and that all significant transactions were recorded in the proper accounting periods.
Significant Difficulties Encountered During the Audit – The letter communicates the auditors encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements – The letter communicates the auditors’ responsibility to note all known and likely misstatements identified during the audit. The auditors noted no such misstatements that were material, either individually or in aggregate, to the financial statements taken as a whole.
Disagreements with Management – The auditors are required to communicate any disagreements with management related to an accounting, reporting or auditing matter, whether resolved or not, in the Audit Communication Letter. No such disagreements arose during the course of the audit for Fiscal Year 2021-22.
Community Financial Report
The Community Financial Report (Attachment No. 4) is an extract of information from the ACFR specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance.
Prepared by: Maria-Luisa Olea, Assistant Finance Director Additional Approval: Stephanie Sikkema, Finance Director Fiscal Impact
FISCAL IMPACT:
City Wide
As of June 30, 2022, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $11.2 million.
The City’s total 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 the 2020 Lease Revenue Bonds. The decrease to debt is offset with a decrease to Deferred Outflows of Resources relating to pension and OPEB 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.
The City’s total governmental funds reported combined ending fund balances of $131.3 million, an increase of $4.2 million in comparison with the prior fiscal year of $127.1 million. The increase is comprised of changes in fund balance, primarily in the non-major Park Development fund for $3.9 million. Of the $131.3 million fund balance, $3.4 million, or 2.6%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $100.7 million, or 76.7%, is spendable for restricted purposes. The assigned fund balance of $6.6 million, or 5.0%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed.
The unassigned fund balance category of $20.6 million, or 15.7%, represents the City’s fund balance reserves.
General Fund
In the General Fund, the City ended the fiscal year with a total Fund Balance of $24.2M – a $1.3 million, or 5.2%, decrease. Of this, approximately $3.4 million is nonspendable or restricted. Nonspendable and restricted consists of prepaid expenses ($147k), Advances to Other Funds ($226k), and Land Held for Resale ($3.0M). This leaves an Unassigned fund balance of $20.8 million.
Per the City’s Fund Balance Policy, the city shall maintain a minimum unassigned fund balance of at least 17% of the 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 the General Fund Balance reserves, 40% is transferred to the City's Capital Projects Fund, 10% is transferred to the Vehicle Replacement Fund, and 25% goes to pay down the City's Other Post Employment Benefit (OPEB) liability.
Based on the ending balance as of June 30, 2022, the General Fund allocation is as follows:
Unassigned Fund Balance 20,770,457
Less Reserve Requirement 13,620,751
(17% FY2022-23 Expenditures as of Q1 Amendment)
Available Fund Balance 7,149,706
25% Reserve 1,787,427
40% Capital Projects Fund 2,859,883
10% Vehicle Replacement Fund 714,971
25% OPEB Liability 1,787,427
The allocation for the OPEB liability is proposed to be used to pay down the City’s Public Agency Retirement System (“PARS”) retirement enhancement plans which had a total pension liability of $5.8M as of June 30, 2022.
Attachments
Attachment No. 1 - Annual Comprehensive Financial Report June 30, 2022 Attachment No. 2 - Government Auditing Standards June 30, 2022 Attachment No. 3 - Audit Communication Letter June 30, 2022 Attachment No. 4 - Community Financial Report
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability www.westcovina.org
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
C I T Y O F W E S T C O V I N A
Y E A R E N D E D J U N E 3 0 , 2 0 2 2
Attachment No. 1
CITY OF WEST COVINA, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Year Ended June 30, 2022
Prepared by
Finance Department
City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2022
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of Transmittal i
List of City Officials iv
Organizational Chart v
FINANCIAL SECTION
Independent Auditor’s Report 1
Management’s Discussion & Analysis 4
Basic Financial Statements
Government-wide Financial Statements:
Statement of Net Position 16
Statement of Activities 17
Fund Financial Statements:
Balance Sheet - Governmental Funds 19
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Statement of Net Position - Proprietary Funds 25
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 26 Statement of Cash Flows - Proprietary Funds 27
Statement of Net Position - Fiduciary Funds 28
Statement of Changes in Net Position - Fiduciary Funds 29 Notes to Financial Statements 30
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
General Fund 79
Housing Special Revenue Fund 80
Gas Tax Special Revenue Fund 81
ARPA Special Revenue Fund 82
Notes to Required Supplementary Information 83
Schedule of Changes in the Net Pension Liability – Miscellaneous Plan 84 Schedule of Changes in the Net Pension Liability - Safety Plan 86 Schedule of Changes in the Net Pension Liability - PARS EPMC Plan 88 Schedule of Changes in the Net Pension Liability - PARS Exec Plan 90 Schedule of Contributions 92
Schedule of Changes in the Net OPEB Liability and Related Ratios 94 Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Citywide Debt Service Fund 95
City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2022
TABLE OF CONTENTS - Continued
Page
Supplementary Information - Continued
Non-major Governmental Funds: 96
Combining Balance Sheet 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 108 Budgetary Comparison Schedules for Non-major Funds:
Drug Enforcement Rebate 116
Air Quality Improvement 117
Proposition A 118
Proposition C 119
Police Donations 120
Transportation Development Act 121
AB939 122
Various Grants 123
Community Development Block Grant 124
Inmate Welfare 125
Public Safety Augmentation 126
COPS/SLESA 127
Park CESF 128
Maintenance District #1 129
Maintenance District #2 130
Coastal Sage Shrub 131
Maintenance District #4 132
Maintenance District #6 133
Maintenance District #7 134
Citywide Maintenance District 135
Sewer Maintenance 136
Auto Plaza Improvement District 137
Measure W 138
Charter PEG 139
West Covina Community Services Foundation 140
Measure R 141
Measure M 142
Measure A 143
Measure H 144
Sportsplex 145
City Capital Projects Fund 146
Construction Tax 147
Information Technology 148
Development Impact Fees 149
Park Development 150
Internal Service Funds: 151
Combining Statement of Net Position - Internal Service Funds 152 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 153 Combining Statement of Cash Flows - Internal Service Funds 154 City of West Covina
Annual Comprehensive Financial Report
Year Ended June 30, 2022
TABLE OF CONTENTS - Continued
Page
Supplementary Information - Continued
Pension Trust Funds: 155
Combining Statement of Fiduciary Net Position – Pension Trust Funds 156 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds 157
STATISTICAL SECTION
Net Position by Component 159
Changes in Net Position 161
Changes in Net Position – Governmental Activities 165
Changes in Net Position – Business-type Activities 167
Fund Balances of Governmental Funds 169
Changes in Fund Balances of Governmental Funds 171
Assessed Value and Estimated Actual Value of Taxable Property 173 Direct and Overlapping Property Tax Rates 175
Principal Property Tax Payers 177
Property Tax Levies and Collections 178
Ratios of Outstanding Debt by Type 180
Ratios of General Bonded Debt Outstanding 182
Direct and Overlapping Debt 183
Legal Debt Margin Information 184
Pledged Revenue Coverage 186
Demographic and Economic Statistics 188
Principal Employers 189
Full-time and Part-time City Employees by Function 190
Operating Indicators by Function 191
Capital Asset Statistics by Function 193
INTRODUCTORY SECTION
Finance Department
December 22, 2022
Members of the City Council, the City Manager, and the Citizens of the City of West Covina:
It is a pleasure to submit the Comprehensive Annual Financial Report (CAFR) of the City of West Covina (City) for the fiscal year ended June 30, 2022. This report consists of management’s representations concerning the finances of the City. Management assumes full responsibility for the completeness and reliability of all the information presented in this report.
To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed to both protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The auditors have issued an unmodified opinion on these financial statements. Their report is located at the front of the financial section of this report.
The Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Profile of the Government
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. The post-World War II building boom rapidly transformed the City, which experienced a significant population increase between 1950 and 1960, from less than 5,000 to more than 50,000 citizens.
Subsequent to this rapid population increase, the City has continued to grow at a steady pace with a current population in excess of 108,000.
i
The City’s location and access to major freeways makes West Covina close to many visitor attractions and an ideal business and commercial center. The City has over 32,000 housing units and offers the amenities of a big city location with a high standard of living for its community.
Under the Council-Manager form of government, the five City Council members are elected by districts to overlapping four-year terms. The City Council selects a Mayor from one of its members each November to serve a one-year term. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments.
The City provides a full range of services to its citizens, including police, fire and emergency medical; construction and maintenance of streets, traffic signalization and other infrastructure; planning and building safety; and social, recreational and cultural activities and events. The City offers sixteen parks, four community centers, a Sports Complex, and a county operated library.
The City is financially accountable for the Successor Agency to the former Redevelopment Agency of the City of West Covina, a financing authority, and a housing authority, which are combined within the City’s financial statements. Additional information regarding all three of these legally separate entities can be found in the notes to the financial statements.
The annual budget serves as a foundation for the City's financial planning and control. The City Council holds public hearings and adopts an annual budget for all funds. The budget appropriations are prepared by fund, function, and department. The City Manager is authorized to transfer budgeted amounts within departments to assure adequate and proper standards of service. Budgetary revisions, including supplemental appropriations which increase total appropriations in individual funds must be approved by the City Council.
Economic Outlook and Major Objectives
From early in its history, the City of West Covina has been noted as a city of beautiful homes.
Through its General Plan, the City Council strives to maintain the City's high-quality residential base and living environment. The City's identity is defined by carefully designed entry point elements, landmark areas, and open space areas.
Known as the headquarters of the East San Gabriel Valley, the City strives to maintain a prosperous business and commercial climate. Despite the current challenging financial and economic environment, West Covina derives significant economic stability from the City's three major commercial districts: Plaza West Covina, Eastland Center, and The Lakes.
In December 2020, the California State Auditor identified several risks in the City’s financial condition, including a major unfunded pension liability, general fund expenditures that have exceeded revenues, and high turnover and reductions in staff in recent years. The City of West Covina continues work to secure the financial future of the City while safeguarding the delivery of great public services. This requires stewardship and a willingness to consider all alternatives in service provision.
Fiscal year 2021-22 marks two years from the economic impact of the unprecedented worldwide pandemic, COVID-19. The pandemic impacted the global economy, our public health care system, unemployment rates, rising rents, and increased inflation.
Governments utilized multiple financial assistance grants and programs to help stimulate the economy and to fund the increased costs associated with managing the ii
pandemic. Federal and State stimulus monies were sent to Americans and also to businesses through the CARES Act approved by Congress in March 2020 for $2.2 trillion and December 2020 for $900 billion. A third stimulus package was later approved, the American Rescue Plan Act, enacted in March 2021 for $1.9 trillion. From which, the City received over $19 million.
As California started returning to normal in FY2021-22, businesses were reopening, events were being held, and the City was able welcome the community back into our facilities. As a result, the City experienced a bounce back in its major revenue drivers – sales tax and transient occupancy tax. As we move into the next fiscal year, the City is cautiously expecting the positive outlook to flatten and remain steady for the local economy.
As noted in our current fiscal year’s finances, there is a General Fund balance of $24.2 Million as the ending fund balance. The City was able to secure memorandums of understanding for the nine bargaining groups and complete capital projects for the City.
The City of West Covina will continue to strive to provide the highest level of service to its residents and businesses, so the community can thrive.
Short-term and Long-term Financial Planning
Annually, the City adopts a budget covering operating revenues and expenditures, labor usage, capital expenditures, and other sources and uses of funds. For financial planning purposes, the City conducts comprehensive citywide financial forecasting in conjunction with its revenue consultants and other sources.
During the past few years, the City has utilized a range of temporary and permanent cost reduction initiatives, economic development, and revenue generation priorities, outside grants, and the use of fiscal reserves as necessary. As a result, the City has weathered the effects of the recession and coronavirus stay-at-home orders while providing critical services to the public in areas such as public safety, facility maintenance, parks maintenance, and infrastructure improvement. On June 5, 2018, the City Council adopted a fund balance policy to maintain a minimum unassigned fund balance of 17% of the General Fund operating expenditures.
Awards and Acknowledgements
The preparation of this report could not have been accomplished without the efficient and dedicated services of the entire staff of the Finance Department. I would like to express my appreciation to all members of the Department who assisted and contributed to the preparation of this report. These are extremely challenging times for local government in which many difficult decisions must be made. Credit also must be given to City Council for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
Stephanie Sikkema
Finance Director
iii
CITY OF WEST COVINA
CITY OFFICIALS
JUNE 30, 2022
CITY COUNCIL
Dario Castellanos, Mayor
Rosario Diaz, Mayor Pro Tem
Letty Lopez-Viado
Brian Tabatabai
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
iv
FINANCIAL SECTION
Independent Auditor’s Report
The Honorable City Council
City of West Covina, California
Report on the Financial Statements
Opinions
We have audited the accompanying 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 as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of West Covina, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cashflows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2022, the City adopted new accounting guidance, GASB Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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 do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining statements and budgetary schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements, as listed in the table of contents, are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 22, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
December 22, 2022
Murrieta, CA
3 MANAGEMENT’S DISCUSSION AND ANALYSIS
The following discussion and analysis of the financial performance of the City of West Covina (the City) provides an overview of the City’s financial activities for the fiscal year ended June 30, 2022. The information presented herein should be considered in conjunction with the transmittal letter and financial statements identified in the accompanying table of contents.
FINANCIAL HIGHLIGHTS
As of June 30, 2022, the City’s total net position (assets plus deferred outflows of resources less liabilities and less deferred inflows of resources) was $11.2 million. The City’s total 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 the 2020 Lease Revenue Bonds. The decrease to debt is offset with a decrease to Deferred Outflows of Resources relating to pension and OPEB 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.
The City’s total governmental funds reported combined ending fund balances of $131.3 million, an increase of $4.2 million in comparison with the prior fiscal year of $127.1 million.
The increase is comprised of changes in fund balance, primarily in the non-major Park Development fund for $3.9 million. Of the $131.3 million fund balance, $3.4 million, or
2.6%, of this total is non-spendable (not available for new spending). The restricted fund balance categories of $100.7 million, or 76.7%, is spendable for restricted purposes. The assigned fund balance of $6.6 million, or 5.0%, represents amounts that are intended to be used for specific purposes, but are not formally restricted or committed. The unassigned fund balance category of $20.6 million, or 15.7%, represents the City’s fund balance reserves.
The City’s business-type computer service enterprise activity (West Covina Service Group) had an operating gain for fiscal year (FY) 2021-22 of $196,547, compared with a $282,448 operating gain in FY 2020-21. The total net position for the computer service enterprise fund as of June 30, 2022 is 235,307. The net position in the prior year was $38,329.
OVERVIEW OF THE FINANCIAL STATEMENTS
The annual report consists of four parts – management’s discussion and analysis (this section), the basic financial statements, required supplementary information, and an optional section that presents combining statements for non-major governmental funds and internal service funds. The basic financial statements include two kinds of statements that present different views of the City:
The first two statements are government-wide financial statements that provide both longterm and short-term information about the City’s overall financial status. The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City’s operations in more detail than the governmentwide statements. The governmental funds statements tell how general government services like public safety were financed in the short-term as well as what remains for future spending. 4 Proprietary funds statements offer short- and long-term financial information about the activities that are operated like a business, such as the West Covina Service Group, the City’s computer service enterprise.
Fiduciary fund statements provide information about the fiduciary relationships – like the custodial funds of the City – in which the City acts solely as an agent or trustee for the benefit of others, to whom the resources in question belong.
The financial statements also include notes that provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City’s net position and changes in them. The City’s net position is one way to measure the City’s financial health, or financial position. Over time, increases and decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other non-financial factors, however, such as changes in the City’s property tax or sales tax base and the condition of the City’s roads, to assess the overall health of the City.
The Statement of Net Position and the Statement of Activities are divided into two kinds of activities:
Governmental activities – Most of the City’s basic services such as public safety, streets and roads, economic development and parks and recreation, are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities.
Business-type activities – The City charges a fee to customers to help it cover all or most of the cost of the services accounted for in these funds. These activities include the City’s computer service enterprise operation.
The government-wide financial statements include the West Covina Housing Authority, the West Covina Public Financing Authority, the Parking Authority of the City of West Covina and the West Covina Community Services Foundation (component units), along with the City of West Covina (the primary government). Although legally separate, these component units are important because the City is financially accountable for them.
The activities of the Successor Agency of the former redevelopment agency can be found in the Fiduciary Fund Section of the Financial Statements in the Private Purpose Trust Fund.
5 Reporting the City’s Most Significant Funds
The fund financial statements provide detailed information about the City’s most significant funds – not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting administrative responsibilities for using certain taxes, grants, or other money (like grants received). The City’s two kinds of funds – governmental and proprietary – use different accounting approaches. Governmental funds – Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year end that are available for spending. These funds are reported using the modified accrual accounting method, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship or differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds in reconciliations on the pages following the fund financial statements in this report.
Proprietary funds – When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s enterprise funds are the same as the businesstype activities we report in the government-wide statements but provide more detail and additional information, such as cash flows for proprietary funds. We use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities.
Reporting the City’s Fiduciary Responsibilities
The City is an agent for certain assets held for, and under the control of, other organizations and individuals. All of the City’s fiduciary activities are reported in separate fiduciary funds. These activities are not included in the government-wide financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of June 30, 2022, net position for the City was a balance of $11.2 million. Compared to the prior year, the net position of the City increased by $37.6 million.
The City’s net position of $11.2 million is made up of three components: Net investment in Capital Assets, Restricted Net Position and Unrestricted Net Position. The largest portion of the City’s net position, $152.9 million, reflects its net investment in capital assets (e.g., infrastructure, land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to the community. As such, these assets are not available for spending. In addition, $98.3 million of the City’s net position represents resources that are subject to external restrictions on how they may be used. 6 The remaining balance of unrestricted net position is a deficit of $240.0 million due to the unfunded pension liability (GASB 68) for which the City has issued 2020 Lease Revenue Bonds; the balance of the bonds is $200.5 million.
The table below reflects the Statement of Net Position for the fiscal year ended June 30, 2022, with the comparative data for the fiscal year ended June 30, 2021:
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 248,135,791 $ 162,856,719 $ 482,211 $ 74,510 $ 248, $ 162,931,229 618,002 $ Capital assets 196,089,095 184,406,014 - - 196, 184,406,014 089,095 Total assets 444,224,886 347,262,733 482,211 74,510 444, 347,337,243 707,097 Deferred Outflows of Resources:
Pension related 9,799,582 - 191,680,785 - 9, 799,582 191,680,785 OPEB related 11,962,103 15,255,037 - - 11, 15,255,037 962,103 206,935,822 21,761,685 - - 21, 761,685 206,935,822
Liabilities:
Long-term debt outstanding 338,752,283 551,727,178 20,015 18,573 338, 551,745,751 772,298 Other liabilities 28,829,273 22,167,977 17,608 226,889 29, 22,185,585 056,162 Total liabilities 367,581,556 573,895,155 246,904 36,181 367, 573,931,336 828,460 Deferred Inflows of Resources:
Pension related 67,639,168 2,260,873 - - 67, 2,260,873 639,168 OPEB related 12,522,363 4,509,801 - - 12, 4,509,801 522,363 Lease Related 7,257,992 - - 7, - 257,992 -
87,419,523 6,770,674 - 87, - 419,523 6,770,674
Net Position:
Net investment in
capital assets 152,889,130 139,507,563 - 152, - 889,130 139,507,563 Restricted 98,381,004 89,226,135 - 98, - 381,004 89,226,135 Unrestricted (240,284,642) (255,200,972) 235,307 (240, 38,329 049,335) (255,162,643) Total net position $ 10,985,492 $ (26,467,274) $ 235,307 $ 38,329 $ 11,220,799 $ (26,428,945) Statement of Net Position
Table 1
Governmental Activities Business-Type Activities Total
7 Changes in Net Position
The City’s total revenues of $127.4 million for governmental activities are $37.5 million more than the expenses of $90.0 million. The majority of the increase is a result of lower expenses, the largest being public safety for the citywide reduction to the net pension liability and OPEB liability.
A summary of the government-wide statement of activities for the year ended June 30, 2022, with the comparative data for the fiscal year ended June 30, 2021, is as follows:
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges for services $ 15,120,436 $ 9,186,452 $ 916,458 $ 758,120 $ 16,036,894 $ 9,944,572 Operating contributions and grants 29,598,365 21,764,524 - 29,598,365 - 21,764,524 Capital contributions and grants 17,666,351 10,621,147 - 17,666,351 - 10,621,147 General revenues:
Property taxes 31,348,677 30,108,110 - 31,348,677 - 30,108,110 Sales taxes 23,101,668 20,858,803 - 23,101,668 - 20,858,803 Other taxes 9,527,917 9,215,630 - 9,527,917 - 9,215,630 Other general revenues 1,044,317 5,743,964 431 1,044,748 - 5,743,964 Total revenues 127,407,731 107,498,630 916,889 758,120 128,324,620 108,256,750 Expenses
General government 3,700,172 18,934,548 - 3,700,172 - 18,934,548 Public safety 49,887,239 62,479,977 - 49,887,239 - 62,479,977 Public works 13,508,312 17,212,496 - 13,508,312 - 17,212,496 Community services 12,587,100 7,669,884 - 12,587,100 - 7,669,884 Community development 1,238,687 1,568,283 - 1,238,687 - 1,568,283 Interest expense 9,033,455 8,354,304 - 9,033,455 - 8,354,304 Computer service - 719,911 - 475,672 719,911 475,672
Total expenses 89,954,965 116,219,492 719,911 475,672 90,674,876 116,695,164 Increase (decrease) in net position 37,452,766 (8,720,862) 196,978 282,448 37,649,744 (8,438,414) Beginning net position (26,467,274) (18,642,521) 38,329 (244,119) (26,428,945) (18,886,640) Restatement of net position 896,109 - - 896,109 -
Ending net position $ 10,985,492 $ (26,467,274) $ 235,307 $ 38,329 $ 11,220,799 $ (26,428,945) Governmental Activities Business-Type Activities Total
Changes in Net Position
Table 2
8 Governmental Activities
Some of the more significant changes in the revenues and expenses of the City’s governmental activities presented above are as follows:
Charges for services increased by $5.9 million, primarily due to building permits and plan check review as result of an increase in construction activity for the year. Operating contributions and grants increased by $7.8 million, primarily due to an increase in COVID-19 Relief funds received and expended in Fiscal Year 2021-22. Due to the American Rescue Plan Act, the City has received a total of $19.6 million in funds in Fiscal Years 2020-21 and 2021-22. $9.2 million was expended and recognized as revenue in Fiscal Year 2021-22.
Capital contributions and grants increased by $7.0 million, primarily due to developer contributions in the Park Development Funds in the amount of $4.0 million. In addition, there were several large increases in special revenue funds used for capital - Proposition A and C funds increased by $1.0 million, Gas Tax and RMRA funds increased by $0.6 million, and State Grant increased by $0.5 million.
Property taxes, the City’s largest revenue source, increased $1.2 million, or 4.1%, primarily due to an increase in the assessed valuation. Sales Tax increased $2.2 million, or 10.8%, reflecting the recovery from the height of the pandemic shutdown. FY 2020-21 and FY 2021-22 realized large gains in sales in the areas of autos-transportation, when compared to FY 2019-20. Other taxes, which consists of franchise taxes, transient occupancy taxes and other taxes, increased by $0.3 million, primarily due to a $0.4 million increase in transient occupancy taxes, as the City and the are phasing out of COVID-19 restrictions. Other general revenues decreased by $4.7 million, primarily due to prior year’s realized proceeds from sales of $3.9 million from the sale of Sunset Field. There was an overall decrease in expenses of $26.3 million, primarily due changes in net pension liability to a reduction in spending overall to offset the negative fiscal impact from the pandemic.
9 Revenues by Source – Governmental Activities
The most significant revenues of the governmental activities are property taxes ($31.3 million), sales tax ($23.1 million) and other taxes ($9.5 million). Program revenues are $62.4 million of the total revenues of the governmental activities, which include charges for services ($15.1 million), operating contributions and grants ($29.6 million), and capital grants and contributions ($17.7 million).
Property taxes
24.6%
Sales taxes
18.1%
Other taxes
7.5%
Other general
revenue
0.8%
Charges for
services
11.9%
Operating grants
and contributions
23.2%
Capital grants and
contributions
13.9%
10 Expenses by Function – Governmental Activities
The City’s expenses cover a range of services whose expenses were as follows: Public safety ($49.9 million), public works ($13.5 million), community services ($12.6 million), general government ($3.7 million), interest expense ($9.0 million) and community development ($1.2 million). These expenses include capital outlays which are now reflected in the City’s capital assets.
General
government
4.1%
Public safety
55.5%
Public works
15.0%
Community
services
14.0%
Community
development
1.4%
Interest expense
10.0%
11 Business-Type Activities
The business-type activity is the West Covina Service Group, which provides dispatch and records management software and services to other police departments.
The business-type activity’s expenses increased by $244,239, or 51.3%, from the prior fiscal year.
Charges for services and other revenues increased by $158,338, or 20.9%, in FY 2021-22 causing the increase in net position of $196,978.
12 MAJOR FUNDS
As noted earlier, the City uses fund accounting to provide proper financial management of the City’s resources and to demonstrate compliance with finance-related legal requirements.
Major Governmental Funds
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 non-spendable 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.
Total revenues, exclusive of fund transfers in, increased $8.0 million while total operating expenditures, exclusive of fund transfers out, decreased $6.3 million. The reasons for significant changes in the revenues and expenditures of the City’s General Fund from the prior year are as follows:
Total taxes were up $4.4 million (7.4%) from the prior year. Property taxes increased by $1.2 million (4.1%) and sales tax revenues increased by $2.8 million (13.6%). Charges for Services were up $3.3 million (53.4%) from the prior year, primarily due to an increase in plan check fees.
Licenses and permits were up $1.3 million (82.0%) from the prior year, primarily due to building permits.
Investment income decreased by $1.2 million (193.2%) from the prior year due primarily to lower interest rates and change in fair value of the investments. Public Safety expenditures decreased by $6.9 million (12.4%) from the prior year due decrease in the Unfunded Accrued Liability by $9.5 million. The decrease in the UAL is offset by an increase in salaries and benefits by $1.8 million.
The West Covina Housing Authority Fund provides for low- and moderate-income activities that were previously provided by the redevelopment agency. The Authority has outstanding loans receivable of $14.4 million and is due $0.1 million from the Successor Agency for amounts borrowed by the former redevelopment agency to fund the SERAF payments and 20% of the loans made to the former redevelopment agency by the City.
The State Gas Tax Fund accounts for tax collected on fuel to fund maintenance and repair of the States’ highways and roads. The fund finished the fiscal year with a total fund balance of $6.6 million.
The American Rescue Plan Act (ARPA) Fund accounts for federal monies received for COVID-19 related expenses. The City has received $19.6 million in funding and spent $9.2 million as of June 30, 2022. The fund has $10.4 million in unearned revenue. 13 GENERAL FUND BUDGET
There were numerous budget amendments throughout the fiscal year to adjust budget to actuals, but the net effect to the General Fund budget was $2.1 million. Taxes in total exceeded the budget by $1,182,420, primarily from secured property taxes and sales tax received during the fiscal year. The City budgeted conservatively for these sources of revenue as it may fluctuate from year to year.
CAPITAL ASSETS
The major additions to capital assets during the year ended June 30, 2022 were as follows:
Construction in progress had a net increase of $17.8 million. The $22.9 million currently in progress includes the following:
• Azusa Sewer lift station upgrades ($3.1 million)
• Play Playgrounds for 4 Parks in the City ($526,000)
• Friendship Park improvements ($946,800)
• Various street projects ($4.3 million)
• Energy Efficient Project ($7.0 million)
• Fire station repairs ($535,600)
Completed fixed asset additions of $1.8 million included:
• Senior Center Restroom Renovation ($310,400)
• Street Rehabilitation ($1.1 million)
• Shadow Oak Park Playground ($332,000)
Additional information on the City’s capital assets can be found in Note 7 of this report. 2022 2021 2022 2021 2022 2021
Land $ 48,356,495 $ 48,606,495 $ - $ 48,356,495 - $ $ 48,606,495 Buildings and improvements 64,401,917 62,884,032 - - 62,884,032 64,401,917 Equipment and vehicles 9,592,447 7,935,812 - - 9,592,447 7,935,812 Infrastructure 37,930,483 43,976,482 - - 37,930,483 43,976,482 Rights of way 14,376,498 14,376,498 - - 14,376,498 14,376,498 Construction in progress 22,949,140 5,150,186 - - 22,949,140 5,150,186 Total $ 196,089,095 $ 184,447,390 $ - $ 196,089,095 - $ $ 184,447,390 Governmental Activities Business-Type Activities Total
14 LONG-TERM DEBT
At the end of the current fiscal year, the City had debt outstanding of $338.8 million. Of this amount, $237.2 million represents outstanding bonds and $101.5 million represents other debt such as compensated absences payable, claims and judgments payable, capital lease obligations, and the net pension and OPEB liabilities. All of the outstanding bonds are lease revenue bonds secured by leases from the General Fund.
Additional information on the City’s long-term debt can be found in Note 8 of this report.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director, at City of West Covina, 1444 West Garvey Avenue South, West Covina, California 91790.
2022 2021 2022 2021 2022 2021
Lease Revenue Bonds $ 237,238,298 $ 242,391,403 $ - $ 237,238,298 - $ $ 242,391,403 Notes Payable 7,525,925 8,104,843 - 7,525,925 - 8,104,843 Loans Payable 6,411,667 6,602,048 - 6,411,667 - 6,602,048 Compensated Absences 4,009,892 3,915,868 20,015 18,573 4,029,907 3,934,441 Net Pension Liability 5,797,238 201,901,907 - 5,797,238 - 201,901,907 Total OPEB Liability 65,096,109 76,070,626 - 65,096,109 - 76,070,626 Claims Payable 12,673,154 12,740,483 - 12,673,154 - 12,740,483 Total $ 338,752,283 $ 551,727,178 $ 20,015 $ 18,573 $ 338,772,298 $ 551,745,751 Governmental Activities Business-type Activities Total
Outstanding Bonds
15 BASIC FINANCIAL STATEMENTS
City of West Covina
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments $ 121,642,874 $ 265,569 $ 121,908,443 Cash and Investments with Fiscal Agents 18,991,475 18, - 991,475 Receivables:
Accounts 803,240 - 803,240
Taxes 6,280,506 6, - 280,506
Interest 324,189 - 324,189
Notes and Loans 14,432,603 14, - 432,603
Other 4,357,169 4, - 357,169
Due from Other Agencies 2,512,079 2, - 512,079
Leases 7,257,992 7, - 257,992
Prepaid Items 158,497 216,642 375,139
Inventory 73,202 - 73,202
Advances to Successor Agency 87,027 - 87,027
Land Held for Resale 3,007,802 3, - 007,802
Restricted Cash and Investments 2,484,403 2, - 484,403
Net Pension Asset 65,722,733 65, - 722,733
Capital Assets, Not Being Depreciated 85,682,133 85, - 682,133 Capital Assets, Net of Accumulated Deprecation 110,406,962 - 110,406,962 Total Assets 444,224,886 482,211 444,707,097
DEFERRED OUTFLOWS OF RESOURCES
OPEB Related Items 11,962,103 11, - 962,103
Pension Related Items 9,799,582 - 9,799,582
Total Deferred Outflows of Resources 21,761,685 21, - 761,685
LIABILITIES
Accounts Payable 12,001,425 225,111 12,226,536
Other Accrued Liabilities 1,764,815 1,778 1,766,593
Interest Payable 3,163,015 3, - 163,015
Deposits Payable 1,511,113 1, - 511,113
Unearned Revenue 10,388,905 10, - 388,905
Noncurrent Liabilities:
Total OPEB Liability 65,096,109 65, - 096,109
Net Pension Liability 5,797,238 5, - 797,238
Due Within One Year 12,419,615 20,015 12,439,630
Due in More Than One Year 255,439,321 - 255,439,321
Total Liabilities 367,581,556 246,904 367,828,460
DEFERRED INFLOWS OF RESOURCES
OPEB Related Items 12,522,363 12, - 522,363
Pension Related Items 67,639,168 67, - 639,168
Lease Related 7,257,992 7, - 257,992
Total Deferred Inflows of Resources 87,419,523 87, - 419,523
NET POSITION
Net Investment in Capital Assets 152,889,130 - 152,889,130 Restricted for:
Affordable Housing 23,445,655 23, - 445,655
Debt Service 19,947,463 19, - 947,463
Pension Trust 8,287 - 8,287
Community Services 1,553,101 1, - 553,101
Public Safety 8,289,411 8, - 289,411
Public Works 45,137,087 45, - 137,087
Unrestricted (240,284,642) 235,307 (240,049,335)
Total Net Position $ 10,985,492 $ 235,307 $ 11,220,799
The accompanying notes are an integral part of this statement. 16 City of West Covina
Statement of Activities
Year Ended June 30, 2022
Charges Operating Capital
for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary Government:
Governmental Activities:
General Government 3,700,172 $ 617,087 $ 9,197,139 $ 5,691 $ Public Safety 49,887,239 4,467,009 5,750,077 70,734
Public Works 13,508,312 8,415,913 10,518,443 9,877,761
Community Services 12,587,100 1,620,427 4,132,706 7,712,165 Community Development 1,238,687 -
Interest on Long-Term Debt 9,033,455 - - -
Total Governmental Activities 89,954,965 15,120,436 29,598,365 17,666,351 Business-type Activities:
Computer Service 719,911 916,458 - -
Total Business-type Activities 719,911 916,458 - -
Total Primary Government 90,674,876 $ $ 16,036,894 $ 29,598,365 $ 17,666,351 General Revenues:
Taxes:
Property Taxes
Sales Taxes
Franchise Taxes
Transient Occupancy Taxes
Other Taxes
Other Revenues
Investment Income
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
Program Revenues
The accompanying notes are an integral part of this statement. 17 Governmental Business-type
Activities Activities Total
$ - 6,119,745 $ 6,119,745 $
- (39,599,419) (39,599,419)
- 15,303,805 15,303,805
- 878,198 878,198
(1,238,687) (1,238,687) -
(9,033,455) (9,033,455) -
(27,569,813) (27,569,813) -
196,547 - 196,547
196,547 - 196,547
(27,569,813) 196,547 (27,373,266)
31,348,677 31,348,677 -
23,101,668 23,101,668 -
4,806,348 4,806,348 -
1,756,473 1,756,473 -
2,965,096 2,965,096 -
2,126,984 2,126,984 -
(1,082,667) 431 (1,082,236)
65,022,579 65,023,010 431
37,452,766 196,978 37,649,744
(26,467,274) 38,329 (26,428,945)
$ 10,985,492 $ 235,307 $ 11,220,799
Net (Expense) Revenue andChanges in Net Position
18 City of West Covina
Balance Sheet
Governmental Funds
June 30, 2022
West Covina State
Housing Gas
General Authority Tax ARPA
ASSETS
Cash and Investments $ 14,248,967 $ 8,795,019 $ 6,820,254 $ 10,592,891 Cash and Investments with Fiscal Agent - - - -
Restricted Cash 1,519,400 1,978 - -
Receivables, net:
Accounts 710,220 - - -
Taxes 5,773,351 - - -
Interest 204,526 119,663 - -
Notes and Loans 14,432,603 - - -
Other 3,574,581 35,274 584,243 -
Due from Other Agencies - - - -
Leases 7,257,992 - - -
Due from Other Funds 521,524 - - -
Advances to Successor Agency - 87,027 - -
Avances to Other Funds 225,826 - - -
Prepaid Items 146,508 - - -
Land Held for Resale 3,007,802 - - -
Total Assets $ 37,190,697 $ 23,471,564 $ 7,404,497 $ 10,592,891
LIABILITIES
Accounts Payable $ 2,646,049 $ 16,465 $ 731,859 $ 224,003 Accrued Liabilities 1,229,132 9,444 105,554 -
Deposits Payable 1,511,113 - - -
Unearned Revenue 20,017 - 10,368,888 -
Due to Other Funds - - - -
Advances to Other Funds - - - -
Total Liabilities 5,406,311 25,909 837,413 10,592,891
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 367,514 - - -
Lease Related 7,257,992 - - -
Total Deferred Inflows of Resources 7,625,506 - - -
FUND BALANCE (DEFICITS)
Nonspendable 3,380,136 - - -
Restricted 8,287 23,445,655 6,567,084 -
Assigned - - - -
Unassigned 20,770,457 - - -
Total Fund Balances (Deficits) 24,158,880 23,445,655 6,567,084 - Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 37,190,697 $ 23,471,564 $ 7,404,497 $ 10,592,891 Special Revenue
The accompanying notes are an integral part of this statement. 19 Debt Service
Non-major
Governmental
Citywide Debt Funds Total
$ 941,153 $ 64,980,614 $ 106,378,898
18,991,475 18,991,475 -
538,208 - 2,059,586
14,835 78,185 803,240
507,155 - 6,280,506
324,189 -
14,432,603 -
163,071 - 4,357,169
2,511,029 - 2,511,029
7,257,992 -
- 521,524 -
- - 87,027
- 225,826 -
- 11,989 158,497
- 3,007,802 -
$ 19,947,463 $ 68,790,251 $ 167,397,363
$ 8,192,167 - $ $ 11,810,543
419,565 - 1,763,695
1,511,113 -
- 10,388,905 -
521,524 - 521,524
225,826 - 225,826
9,359,082 - 26,221,606
2,210,188 - 2,577,702
- 7,257,992 -
2,210,188 - 9,835,694
- 11,989 3,392,125
19,947,463 50,771,880 100,740,369
6,601,977 - 6,601,977
(164,865) - 20,605,592
19,947,463 57,220,981 131,340,063
$ 19,947,463 $ 68,790,251 $ 167,397,363
20 Fund balances of governmental funds $ 131,340,063
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
Capital Assets 462,266,215
Accumulated Depreciation (266,777,126) 195,489,089
Other long-term assets are not available to pay for current period expenditures and, therefore, are reported as unavailable revenues in the funds. 2,577,702
Interest Payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liabiltiy in the funds. (3,163,015)
Long term liabilities are not due and payable in the current period and are not reported in the funds.
Bonds Payable (including premiums) (237,238,298)
Loans Payable (6,411,667)
Compensated Absences (3,999,710)
Notes Payable (7,525,925)
Net Pension Liability - PARS (5,797,238)
Total OPEB Liability (65,096,109)
Net Pension Asset related to the City's Pension Plan is not reported in the funds. 65,722,733
Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds.
Deferred Outflows Related to Pensions 9,799,582
Deferred Inflows Related to Pensions (67,639,168)
Deferred Outflows Related to OPEB 11,962,103
Deferred Inflows Related to OPEB (12,522,363)
Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.
The assets and liabilities of the internal service funds must be added to the statement of net position. 3,487,713
Net position of governmental activities $ 10,985,492
City of West Covina
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The accompanying notes are an integral part of this statement. 21 West Covina State
Housing Gas
General Authority Tax ARPA
REVENUES
Taxes 64,247,740 $ - $ 2,155,426 $ - $
Special Assessments - - - -
Licenses and Permits 2,780,660 - - -
Fines and Forfeitures 508,463 - - -
Investment Income (1,858,653) 335,320 16,677 -
Rental Income 1,241,134 - - -
Revenue from Other Agencies 2,323,396 - 2,488,293 9,197,139 Charges for Services 9,574,520 - 592 -
Other Revenues 2,201,315 20,100 - -
Total Revenues 81,018,575 355,420 4,660,988 9,197,139
EXPENDITURES
Current:
General Government 4,955,642 - 3,000 -
Public Safety 48,396,731 208,843 - 466,453
Public Works 6,188,867 - 4,355,822 8,724,900
Community Services 1,932,175
Community Development 446,667 676,245 - -
Debt Service:
Principal - - - -
Interest - - - -
Total Expenditures 61,920,082 885,088 4,358,822 9,191,353 Excess (Deficiency) of Revenues
over Expenditures 19,098,493 (529,668) 302,166 5,786
OTHER FINANCING SOURCES (USES)
Transfer In 5,816 567,148 - -
Transfer Out (20,433,506) (33,000) (28,146) (5,786)
Total Other Financing Sources (Uses) (20,427,690) (33,000) 539,002 (5,786) Net Change in Fund Balances (1,329,197) (562,668) 841,168 - Fund Balances, Beginning 25,488,077 24,008,323 5,725,916 - Fund Balances, Ending $ 24,158,880 $ 23,445,655 $ 6,567,084 $ - Special Revenue
City of West Covina
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 22 Debt Service
Non-major
Governmental
Citywide Debt Funds Total
$ 10,891,448 - $ $ 77,294,614
7,040,726 - 7,040,726
- 2,780,660 -
- 508,463 -
74,288 121,134 (1,311,234)
217,995 - 1,459,129
1,389,327 5,345,152 20,743,307
436,010 - 10,011,122
4,918,858 - 7,140,273
1,463,615 28,971,323 125,667,060
13,046 75,400 5,047,088
10,771,653 - 59,843,680
9,212,410 - 28,481,999
9,153,573 11,085,748
115,775 - 1,238,687
5,869,299 5,869,299 -
9,063,717 9,063,717 -
14,946,062 29,328,811 120,630,218
(13,482,447) (357,488) 5,036,842
13,530,530 5,563,633 19,667,127
- (9,031) (20,509,469)
13,530,530 5,554,602 (842,342)
48,083 5,197,114 4,194,500
19,899,380 52,023,867 127,145,563
$ 19,947,463 $ 57,220,981 $ 131,340,063
23 Net change in fund balances-total governmental funds $ 4,194,500 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense.
Capital Expenditures 23,557,900
Depreciation Expense (11,550,544)
Loss on Disposal (250,000)
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. 1,740,672 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows:
Principal Paid on Notes Payable 578,918
Principal Paid on Bonds Payable 5,100,000
Principal Paid on Loans Payable 190,381
Amortization of Premium on Lease Revenue Bonds 53,105
Accrued interest on bonds is not recorded in the governmental funds. This is the net change in accrued interest for the period. (22,843) Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not reported as governmental fund expenditures:
Net Change in Employee Leave Benefits (84,042)
Net Change in Net Pension Liability 196,104,669
Net Change in Net Pension Asset 65,722,733
Net Change in Total OPEB Liability 10,974,517
Net Change in Deferred Outflows Pension Related Amounts (181,881,203) Net Change in Deferred Inflows Pension Related Amounts (65,378,295) Net Change in Deferred Outflows OPEB Related Amounts (3,292,934) Net Change in Deferred Inflows OPEB Related Amounts (8,012,562) Internal service funds are used by management to charge the costs of certain activities, such as equipment management, to individual funds.
The net revenue (expense) of the internal service funds is reported with governmental activities. (292,206)
Change in net position of governmental activitie $ 37,452,766 City of West Covina
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 24 City of West Covina
Statement of Net Position
Proprietary Funds
June 30, 2022
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
ASSETS
Current Assets:
Cash and Investments 265,569 $ $ 15,263,976
Restricted Cash and Investments - 424,817
Due from Other Agencies - 1,050
Prepaids - 216,642
Inventories 73,202 -
Total Current Assets 482,211 15,763,045
Noncurrent Assets:
Capital Assets, Net of Accumulated Depreciation 600,006 - Total Noncurrent Assets 600,006 -
Total Assets 482,211 16,363,051
LIABILITIES
Current Liabilities:
Accounts Payable 225,111 190,882
Other Accrued Liabilities 1,778 1,120
Current Portion of Long-Term Liabilities:
Compensated Absences 20,015 -
Claims Payable 3,310,764 -
Total Current Liabilities 246,904 3,502,766
Noncurrent Liabilities:
Compensated Absences - 10,182
Claims Payable 9,362,390 -
Total Noncurrent Liabilities 9,372,572 -
Total Liabilities 246,904 12,875,338
NET POSITION
Net Investment in Capital Assets 600,006 -
Unrestricted 235,307 2,887,707
Total Net Position $ 235,307 $ 3,487,713
The accompanying notes are an integral part of this statement. 25 City of West Covina
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2022
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
OPERATING REVENUES
Charges for Services $ 916,458 $ 5,601,858
Rental Income - 44,398
Other Revenues - 91,645
Total Operating Revenue 916,458 5,737,901
OPERATING EXPENSES
Personnel Services 129,638 87,565
Cost of Sales, Services, and Operations 590,273 1,442,341 Depreciation 219,918 -
Insurance and Claims Paid 5,142,016 -
Total Operating Expenses 719,911 6,891,840
Operating Income (Loss) 196,547 (1,153,939)
NONOPERATING REVENUES (EXPENSES)
Investment Income 431 867
Gain/ (Loss) on Disposal of Capital Assets - 18,524
Total Nonoperating Revenues (Expenses) 431 19,391
Income Before Contributions and Transfers 196,978 (1,134,548) Transfers In 842,342 -
Transfers Out - -
Change in Net Position 196,978 (292,206)
Total Net Position, Beginning 38,329 3,779,919
Total Net Position, Ending $ 235,307 $ 3,487,713
The accompanying notes are an integral part of this statement. 26 City of West Covina
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2022
Business-type Governmental
Activities Activities
Computer
Service Internal
Enterprise Fund Service Funds
Cash Flows from Operating Activities
Cash Received from Customers 1,213,221 $ - $
Cash Received from User Departments - 5,837,901
Cash Paid to Suppliers for Goods and Services (596,373) (6,592,476) Cash Paid to Employees for Services (129,457) (78,416)
Net Cash from Operating Activities 487,391 (832,991)
Cash Flows from Noncapital Financing Activities
Cash Paid (to) from Other Funds (222,253) 779,890
Net Cash from Noncapital Financing Activities (222,253) 779,890 Cash Flows from Capital and Related Financing Activities Acquisition and Construction of Capital Assets - (127,119) Net Cash from Capital and Related Financing Activities - (127,119) Cash Flows from Investing Activities
Interest on Investments 431 867
Net Cash from Investing Activities 431 867
Net Increase (Decrease) in Cash and Cash Equivalents (179,353) 265,569 Cash and Cash Equivalents, Beginning of Year - 15,868,146 Cash and Cash Equivalents, End of Year $ 15,688,793 265,569 $ Reconciliation of Operating Income to Net Cash
Provided (Used) by Operating Activities
Operating income (loss) 196,547 $ (1,153,939) $
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation - 219,918
Other Revenues - -
(Increase) Decrease in Accounts Receivable 296,763 100,000 (Increase) Decrease in Due from Other Agencies - -
(Increase) Decrease in Inventory and Prepaid Items (216,642) (33,023) Increase (Decrease) in Accounts Payable 210,542 92,233
Increase (Decrease) in Accrued Liabilities (1,261) (833) Increase (Decrease) in Compensated Absences 1,442 9,982 Increase (Decrease) in Claims and Judgments - (67,329)
Net Cash Provided (Used) by Operating Activities 487,391 $ (832,991) $ The accompanying notes are an integral part of this statement. 27 Successor
Agency Pension
Private-purpose Trust
Trust Fund Funds
ASSETS
Cash and Investments 4,982,348 $ 390,415 $
Cash and Investments with Fiscal Agent 6,869,232
Restricted Cash and Investments 3,373,500 -
Receivables, Net:
Taxes 565,223 -
Interest 120,134 -
Accounts 1,721,802 -
Assessments 4,990,000 -
Due from City of West Covina 7,525,925 -
Land Held for Resale 54,279
Total Assets 30,202,443 390,415
LIABILITIES
Accounts Payable 1,795,038 -
Accrued Liabilities 1,027,386 -
Interest Payable 172,331 -
Due to Other Governments 198,449 -
Advances from City of West Covina 87,027 -
Long-term Liabilities:
Due to County Auditor Controller 7,525,925 -
Due within One Year 6,344,975 -
Due in More than One Year 94,171,372 -
Total Liabilities 111,322,503 -
NET POSITION
Held in Trust for:
Successor Agency (81,120,060) -
Pension Benefits - 390,415
$ (81,120,060) $ 390,415
City of West Covina
Statement of Net Position
Fiduciary Funds
June 30, 2022
The accompanying notes are an integral part of this statement. 28 Successor
Agency Pension
Private-purpose Trust
Trust Fund Funds
ADDITIONS
Contributions:
Taxes and assessments collected for others 8,829,838 $ - $ Employer Contributions - 132,374
Investment Earnings:
Interest Income 262,861 (53,613)
Rental Income 25,000 -
Total Additions 9,117,699 78,761
DEDUCTIONS
Program Administration 3,244,585 -
Administrative Costs 12,474,300 8,033
Benefit Distributions - 211,777
Interest and Fiscal Charges 588,958 -
Total Deductions 16,307,843 219,810
Change in Net Position (7,190,144) (141,049)
Net Position - Beginning of Year (73,929,916) 531,464
Net Position - End of Year (81,120,060 $ ) $ 390,415
City of West Covina
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2022
The accompanying notes are an integral part of this statement. 29 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of West Covina, California (the City) have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City’s significant accounting policies are described below.
A) Financial Reporting Entity
The City was incorporated on February 23, 1923 under the general laws of the State of California. The accompanying financial statements present the City and its component units; entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City's financial statements to be misleading or incomplete.
Because each component unit meets the above-mentioned criteria, included within the financial reporting entity of the City are the City of West Covina Housing Authority, the West Covina Public Financing Authority, the Parking Authority of the City of West Covina, and the West Covina Community Services Foundation, Inc.
A brief description of each component unit follows:
West Covina Housing Authority
The West Covina Housing Authority (the Housing Authority) was formed on January 17, 2012 and is responsible for the administration of providing affordable housing in the City. The Housing Authority is administered by a Board which consists of members of the City Council. The transactions of the Housing Authority are reported as a special revenue fund is a blended component unit of the City.
West Covina Public Financing Authority
The West Covina Public Financing Authority (the Authority) was created by a joint powers agreement between the City and the Community Development Commission of the City on June 1, 1990. The purpose of the Authority is to provide, through the issuance of debt, financing necessary for various capital improvements.
The Authority is administered by the Board who are the members of the City Council. The Authority's sole source of income is installment sale, loan and lease payments received from the City and former Community Development Commission (the Commission) which are used to meet the debt service requirements on debt issues. The Authority is blended into the debt service fund of the City.
The Parking Authority of the City of West Covina
The Parking Authority of the City of West Covina (the Parking Authority) was formed under the provision of the government code of the State of California for the purpose of financing and constructing parking facilities for lease to the City. The City Council acts as the governing body of the Parking Authority and is able to impose its will on the Parking Authority. It is a component unit of the City, and the financial statements of the Parking Authority are included within the financial statements of the City using the blended method. The Parking Authority has been inactive since 1999.
30 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The West Covina Community Services Foundation, Inc.
The West Covina Community Services Foundation, Inc. (the Foundation) was established on July 26, 2005 as a nonprofit public benefit corporation. It was organized and operates exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. The Foundation is administered by the Board of Directors who are the members of the City Council. The Foundation is blended into the special revenue funds of the City.
Since the City Council serves as the governing board for these component units, all of the City's component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of the City's operations and so data from these units are reported with the interfund data of the primary government. Except for the Housing Authority, these component units do not issue component unit financial statements.
Separate financial statements for the Housing Authority can be obtained from the City of West Covina, City Hall.
B) Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
Government-wide Financial Statements
Fund financial statements
Notes to financial statements
Government-wide Financial Statements:
Government-wide financial statements display information about the reporting government as a whole except for its fiduciary activities. These statements include separate columns for the governmental and businesstype activities of the primary government (including its blended component units). Eliminations have been made in the Statement of Activities so that certain allocated expenses are recorded only once (by the function to which they were allocated). However, general government expenses have not been allocated as indirect expenses to the various functions of the City. Interfund services provided and used are not eliminated in the process of consolidation.
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
Government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the governmentwide financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of Generally Accepted Accounting Principles.
31 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Taxes and other items not included among program revenues are reported instead as general revenues.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements rather than as an other financing source. Amounts paid to reduce longterm indebtedness of the reporting government are reported as a reduction of the related liability rather than as an expenditure.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar programs are recognized as revenue as soon as all eligibility requirements imposed by providers have been met.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds; each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements. These statements display information about the major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary statements represent assets held by the City in a custodial capacity for other individuals or organizations in the private purpose trust, pension trust, and custodial funds.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period.
Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Significant revenues subject to the criteria include taxes, licenses and permits, and intergovernmental revenues. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed non-exchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary non-exchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
32 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be a measure of "available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.
Revenues, expenditures, assets, and liabilities resulting from non-exchange transactions are recognized in accordance with the requirements of Generally Accepted Accounting Principles. The City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Therefore, recognition of governmental fund type revenue represented by receivables is reported as deferred inflows of resources until they meet the “availability” criteria.
Sales taxes, property taxes, franchise taxes, revenue from other agencies, rental income, occupancy taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government. The availability period for all revenues is 60 days.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures rather than as a reduction of a fund liability.
Proprietary and Fiduciary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund financial statements, the proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statement of net position. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings result from non-exchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the enterprise fund financial statements rather than reported as an expenditure.
Proceeds of long-term debt are recorded as a liability in the enterprise fund financial statements rather than as another financing source. Amounts paid to reduce long-term indebtedness of the enterprise fund are reported as a reduction of the related liability rather than as an expenditure.
33 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The City's fiduciary private purpose and pension trust funds are accounted for using the economic resources measurement focus and accrual basis of accounting. The private purpose trust fund accounts for the assets held by the City for the Successor Agency to the former Community Development Commission of the City.
The pension trust fund account for assets and activities of the Public Agency Retirement System Enhancement and Supplemental Retirement defined benefit pension plans. The City's fiduciary custodial accounts for assets held for the benefit of others. Because these funds are not available for use by the City, fiduciary funds are not included in the governmental-wide statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes.
When both restricted and unrestricted resources are combined and are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
Fund Classifications
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. This fund is used to account for all financial resources of the City, except for those required to be accounted for in another fund The West Covina Housing Authority Special Revenue Fund is used to account for assets and related income received from the former Community Development Commission to be used for the administration of providing affordable housing in the City.
The State Gas Tax Special Revenue Fund accounts for the City’s proportionate share of gas tax monies collected by the State of California and Proposition 1B monies which are used for street construction and maintenance.
The ARPA Special Revenue Fund accounts for the grant funds received from the American Rescue Plan Act.
The Citywide Debt Service Fund accounts for the payments of principal, interest, and related costs on the City long-term debt issues.
The City reports the following major proprietary fund:
The Computer Service Enterprise Fund is used to account for operations that are financed and operated in a manner similar to private business enterprises. The City's enterprise fund is used to account for computer services provided by the Police Department to other public agencies.
Additionally, the City reports the following fund types:
34 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The Internal Service Funds are used to account for vehicle and equipment maintenance and replacement, for the City's self-insurance programs, and for retirement health savings plans for qualified City employees.
Departments of the City are charged for the services provided or benefits received from these funds.
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has two types of fiduciary funds, a custodial fund and a privatepurpose trust fund. Agency funds are used to account for the assets held for distribution by the City as an agent for another entity for which the City has custodial responsibility and accounts for the flow of assets.
Private-purpose trust funds account for resources of all other trust arrangements in which principal and income benefit individuals, private organizations, or other governments (i.e. unclaimed property/escheat property). Fiduciary funds are accounted for using the accrual basis of accounting. The City reports the following fiduciary funds:
Successor Agency Private Purpose Trust Fund – accounts for assets and liabilities transferred in fiscal year 2012 from the Redevelopment Agency of the City of West Covina to the Successor Agency Trust Fund.
Pension Trust Fund – These funds are used to account for the assets and activities of the Public Agency Retirement System Retirement Enhancement and Supplemental Retirement plans.
C) Cash and Investments
Investments are reported in the accompanying balance sheet at fair value, except for certain certificates of deposit and investment contracts that are reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
For purposes of the statement of cash flows, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value because of changes in interest rates, and have an original maturity date of 3 months or less. Cash equivalents represent the proprietary funds’ share in the cash and investment pool of the City.
D) Inventories
Inventory is stated at average cost. Physical counts of inventory are taken on a cyclical basis during each fiscal year with perpetual records adjusted to actual at that time. The City uses the consumption method of accounting for inventory.
35 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued E) Prepaid Items
Certain payments to vendors for costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements using the consumption method.
F) Notes and Loans Receivable
The accompanying financial statements report certain loans receivable for loans made to private developers, private homeowners, and other parties. Where applicable, an allowance for doubtful accounts has been recorded to reflect management’s best estimate of probable losses associated with nonrepayment.
G) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City accrues only those taxes which are received within 60 days after year end. The property tax calendar is as follows:
H) Claims and Judgements
The City records a liability for litigation, judgments, and claims when it is probable that an asset has been impaired or a liability (including incurred but not reported) has been incurred prior to yearend and the probable amount of loss (net of any insurance coverage) can be reasonably estimated. This liability is recorded in the internal service fund that accounts for the City’s self-insurance activities.
I) Compensated Absences Payable
A liability is recorded for unused vacation and similar compensatory leave balances since the employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement.
A liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. This is estimated by including in the liability the unused balances of employees currently entitled to receive termination payment, as well as those who are expected to become eligible to receive termination benefits as a result of continuing their employment with the City.
Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) which is outside the control of the City and the employee.
Lien date January 1 December 40% Advance
Levy date July 1 January 10% Advance
Due date November 1 and February 1 February Collection No. 1 Delinquent dates December 10 and April 10 April 35% Advance May Collection No. 2
July Collection No. 3
Property Tax Calendar County Remittance Dates and Percentages 36 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The General Fund and Computer Service Enterprise Fund typically have been used to liquidate the liability for compensated absences.
J) Capital Assets
Capital assets greater than $5,000 and infrastructure greater than $100,000 are capitalized and recorded at cost or at an estimated fair value of the assets at the time of acquisition where complete historical records do not exist. Contributed capital assets are valued at their acquisition value at the date of the contribution.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Capital assets include public domain infrastructure assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, medians, sewer and storm drains.
Depreciation has been provided using the straight-line method over the estimated useful life of the assets in the government-wide financial statements and in the fund financial statements of the proprietary and the private-purpose trust funds. Depreciation starts the year following acquisition. For capital assets, depreciation is recorded on a straight-line basis over the useful lives of the assets. The lives used for depreciation purposes of each capital asset class generally are:
K) Interest Payable
In the Government-Wide Financial Statements, interest payable on long-term debt is recognized as the liability is incurred.
In the Fund Financial Statements, proprietary fund types recognize the interest payable when the liability is incurred.
Infrastructure - pavement 25 years
Infrastructure - other 20 - 75 years
Buildings 20 - 50 years
Improvements other than buildings 20 - 50 years
Equipment and Vehicles 5 - 25 years
Equipment and Machinery 5 - 25 years
Governmental Activities
Business-type Activities
37 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued L) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has certain items that qualify for reporting in this category: deferred outflows relating to the City’s net pension and OPEB liabilities.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City reports deferred inflows for certain items under the modified accrual basis of accounting.
Accordingly, unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues related to taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The City also reports deferred inflows relating to the net pension and OPEB liabilities.
M) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) and Public Agency Retirement System plans (PARS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Generally accepted accounting principles require that the reported results for pensions must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used for CalPERS:
Valuation Date (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
The following timeframes are used for PARS:
Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
38 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued N) Other Postemployment Benefits (OPEB)
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: June 30, 2021 Valuation Date; June 30, 2021 Measurement Date; and July 1, 2020 through June 30, 2021 Measurement Period.
O) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position.
P) Fund Balance
Nonspendable Fund Balance: These include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact, e.g., the principal of an endowment fund. Examples of “not in spendable form” include inventory, prepaid amounts, long-term notes and loans, property held for resale and other items not expected to be converted to cash. However, if the proceeds from the eventual sale or liquidation of the items would be considered restricted, committed or assigned (as defined further on) then these amounts would be included in the restricted, committed or assigned instead of the nonspendable classification. A debt service reserve fund held by a trustee is an example of fund balance in nonspendable form that is classified as restricted instead of nonspendable since the reserve is eventually liquidated to make the final debt service principal payment.
Restricted Fund Balance: Amounts that have externally enforceable limitations on use. The limitations on use can be imposed by creditors, grantors, or contributors as well as by constitutional provisions, enabling legislation, laws and government regulations.
Committed Fund Balance: Amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.
Assigned Fund Balance: Amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The City Council (Council) has by resolution authorized the City Manager to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. Additional formal action does not normally have to be taken for the removal of an assignment.
Unassigned Fund Balance: These are either residual positive net resources of the General Fund in excess of what can properly be classified in one of the other four categories, or negative balances. For all funds other than the General Fund, amounts expended in excess of resources that are restricted, committed, or assigned, negative unassigned fund balance may be necessary to report. 39 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Q) Fair Value Measurements
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements), as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.
R) Leases
Lessor: The City is a lessor for noncancellable leases of land owned by the City. The City recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The City uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
40 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
S) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period.
Actual results could differ from those estimates.
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:
Cash and investments as of June 30, 2022 consist of the following:
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. This table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that addresses interest rate risk and concentrations of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City and investments in the City’s retirement enhancement and supplemental retirement defined benefit pension trust funds that are in the Public Agency Retirement Plans (PARS Trust Pool), rather than the general provisions of the California Government Code or the City’s investment policy.
Statement of Net Position:
Cash and Investments $ 121,908,443
Cash and Investments with Fiscal Agents 18,991,475
Restricted Cash and Investments 2,484,403
Statement of Fiduciary Net Position:
Cash and Investments 5,372,763
Cash and Investments with Fiscal Agents 6,869,232
Restricted Cash and Investments 3,373,500
Total Cash and Investments 158,999,816 $
Cash on Hand $ 18,073
Deposits with Financial Institutions 38,858,630
Investments 120,123,113
Total Cash and Investments 158,999,816 $
41 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are generally authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk.
Authorized Maximum Maximum
Investment Types by Investment Maximum Percentage Investment Authorized by State Law Policy Maturity* of Portfolio* in One Issuer* U.S. Treasury Obligations Yes 5 years None None
U.S. Government Sponsored
Agency Securities Yes 5 years None None
Municipal Securities Yes 5 years 30% 5%
Supranationals Yes 5 years 30% 10%
Medium-Term Notes Yes 5 years 30% 5%
Collateralized Certificate of Deposit Yes 5 years 25% 25% Negotiable Certificates of Deposit Yes 5 years 30% 30%
Banker's Acceptance Yes 180 days 40% 30%
Commercial Paper Yes 270 days 25% 5%
Asset Backed Securities Yes 5 years 20% 20%
Money Market Mutual Funds Yes N/A 20% 10%
Repurchase Agreements Yes 100 days 20% 20%
County Pooled Investment Funds Yes N/A None None
Local Agency Investment Fund Yes N/A None $75,000,000
*Based on state law requirements or investment policy requirements, whichever is more restrictive.
Maximum Maximum
Investment Types Maximum Percentage Investment
Authorized by State Law Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Government Sponsored
Agency Securities 5 years None None
Municipal Securities 5 years 30% None
Supranationals 5 years 30% None
Medium-Term Notes 5 years 30% None
Collateralized Certificate of Deposit 5 years 25% None
Negotiable Certificates of Deposit 5 years 30% None
Banker's Acceptance 180 days None None
Commercial Paper 270 days 25% 5%
Money Market Mutual Funds 5 years 20% 10%
Repurchase Agreements 100 days 20% None
County Pooled Investment Funds N/A None None
Local Agency Investment Fund N/A None None
42 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS - Continued
Investments Authorized by Pension Trust Agreements
Investments of pension trust fund contributions held by the trustee are governed by the trust agreements. The City selected an investment strategy allowed by the trust agreements with the objective of providing current income and moderated capital appreciation. The strategic ranges for the investment strategy selected by the City are as follows:
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater is the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements and the actual rating as of year-end by Standard and Poor’s or Moody’s or Fitch for each investment type:
5% Cash
45% Fixed Income
48.50% Equities
1.50% REIT
12 Months 13 to 24 25 to 60
Investment Type Total Or Less Months Months
Los Angeles County Investment Pool 31,739,345 $ 31,739,345 $ - $ - $ Local Agency Investment Fund 62,124,359 62, - 124,359 - PARS Trust Pool 398,702 398,702 - -
Held by Bond Trustees:
Collateralized Investment Agreement 5,002,670 5,002,670 - - Money Market Mutual Funds 20,858,037 20,858,037 - -
Total $ 120,123,113 $ 120,123,113 $ - $ -
Remaining Maturity (in Months)
43 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. There was no investments in any one issuer (other than U.S. Government Agencies, Supranationals, Money Market Funds, and external investment pools) that represent 5% or more of total City investments.
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party.
The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. All the City’s deposits are either federally insured or collateralized as of June 30, 2022. Investments held by bond trustee are selected under the terms of the applicable trust agreement. The trustee acquires the investment and holds the investment on behalf of the reporting government.
Investment in County Investment Pool
The City is a voluntary participant in the Los Angeles County Investment Pool (LACIP) that is regulated by the California Government Code and the Los Angeles County Board of Supervisors under the oversight of the Los Angeles County Treasurer-Tax Collector. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amount based upon the City’s pro-rata share of the fair value provided by LACIP for the entire LACIP portfolio. The balance for withdrawal is based on the accounting records maintained by LACIP, which are recorded on an amortized cost basis.
Minimum
Investment Type Amount Legal Rating AAA Unrated
Los Angeles County Investment Pool 31,739,345 $ N/A - $ 31, $ 739,345 Local Agency Investment Fund 62,124,359 N/A - 62, 124,359 PARS Trust Pool 398,702 N/A - 398,702
Held by Bond Trustees:
Collateralized Investment Agreement 5,002,670 N/A - 5, 002,670 Money Market Mutual Funds 20,858,037 A 20, - 858,037
Total 120,123,113 $ 20,858,037 $ 99,265,076 $
44 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
2) CASH AND INVESTMENTS – Continued
Fair Value of Investments
Investments (except those that may be reported at amortized cost) are measured at fair value on a recurring basis. Recurring fair value measurements, are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. None of the investments held at year-end are subject to the fair value hierarchy.
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Due to/from
Interfund receivable and payable balances at June 30, 2022 were as follows:
These interfund payables represent temporary loans to cover negative cash balances.
Advances to/from
Advances of $225,826 between the General Fund and the Auto Plaza Improvement District non-major special revenue fund are for cash advanced for the replacement of the reader board sign at the Auto Plaza.
Interfund transfers for the year ended June 30, 2022 are as follows:
The General Fund transferred $567,148 to the State Gas Tax Fund for an SB1 project. The General Fund transferred $13,530,530 to the Citywide Debt Service Fund for debt service payments. The General Fund transferred $5,493,487 to the Non-major Governmental Funds for various projects and operating expenditures.
The General Fund transferred $842,342 to the Internal Service Fund for deficits in the self-insurance fund.
Receivable Fund
General
Payable Fund Fund
Non-major Governmental Funds 521,524 $
Total Fund Balances 521,524 $
State Non-major Internal
General Gas Tax Citywide Governmental Service
TRANSFERS OUT Fund Fund Debt Funds Funds Total
General Fund $ 567,148$ - $ 13,530,530 $ 5,493,486 842,342$ $ 20,433,506 Housing Authority - - 33,000 - - 33,000
State Gas Tax Fund - - 28,146 - - 28,146
ARPA 5,786 - - - - 5,786
Non-major Governmental Funds 30 - 178,322 - - 178,352
$ 5,816 567,148$ $ 13,530,530 $ 5,732,954 842,342$ $ 20,678,790
TRANSFERS IN
45 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
4) LONG-TERM RECEIVABLES FROM SUCCESSOR AGENCY
Prior to the dissolution of the Commission’s redevelopment activities on February 1, 2012, the City authorized several advances to be used for completing redevelopment projects throughout the community. As a result of the dissolution, the liabilities related to these advances were transferred to the Successor Agency. See Note 18 and 19 for additional information.
In May 2010, the Commission made an advance of $6,529,308 from the Low and Moderate-Income Housing Capital Projects Fund to the Citywide Project Area Debt Service Fund to satisfy the Commission's Supplemental Educational Revenue Augmentation Fund (SERAF) obligation as required by Assembly Bill ABX4-26. The advance bears no interest. In May 2011, the Commission made an advance of $1,344,269 from the Low and Moderate-Income Housing Capital Projects Fund to the Citywide Project Area Debt Service Fund to satisfy the SERAF obligation as required by Assembly Bill ABX4-26. The advance bears no interest and must be repaid by August 1, 2022. Effective February 1, 2012, the Commission’s redevelopment activities were dissolved, and the receivable side of these advances was retained by the Housing Authority.
The “Dissolution Act” (AB 1x26 as amended by AB 1484) outlines the method of repayment for the SERAF Advances by the Successor Agency. As of June 30, 2022, the SERAF Advance to the Successor Agency was $87,027.
5) NOTES AND LOANS RECEIVABLE
The following notes and loans receivable were outstanding as of June 30, 2022:
Several housing rehabilitation loans totaling $353,888 have been made to qualified applicants using Community Development Block Grants received by the City and housing set-aside funds of the former Commission’s redevelopment activities. These loans bear 5% interest and are repaid when title to the property changes. The City has included 5% of the balance in the allowance for doubtful accounts.
The Housing Authority has loans to first-time home buyers totaling $142,529. Loans are secured by second trust deeds and bear interest at 5%. Principal and interest are deferred for five years and are due monthly in years 6 through 30. The City has included 22% of the balance in the allowance for doubtful accounts.
The Housing Authority also has housing preservation loans to qualified applicants using housing set-aside funds totaling $643,447. Principal and interest are deferred for ten years; after the tenth year loans bear interest at 5%.
Loans are repaid after the tenth year or when title to the property changes. The City has included 45% of the balance in the allowance for doubtful accounts.
Housing Rehabilitation $ 353,888
First Time Homebuyer Loans 142,529
Housing Preservation Program 643,447
Home Improvement Program 663,129
Lark Ellen Towers 6,565,194
Executive Lodge Apartments Limited Partnership 6,471,219 West Covina Senior Villas, LLC 2,833,333
West Covina Senior Villas II, LP 8,513,885
Other Loans 608,196
Less: Allowance for Doubtful Accounts (12,362,217)
Total Governmental Funds $ 14,432,603
46 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
5) NOTES AND LOANS RECEIVABLE - Continued
Several housing improvement loans totaling $663,129 have been made to qualified applicants. The loans are secured by second trust deeds. The City has included 5% of the balance in the allowance for doubtful accounts.
In May 1997, the Commission loaned $4,270,000 to Lark Ellen Towers. The loan was transferred to the Housing Authority from the dissolved former Commission. The loan is secured by a deed of trust. The loan accrues interest at 3% per annum and requires annual payments equal to the maximum of $35,000 or 50% of net profits earned by the project. The outstanding principal and accrued interest as of June 30, 2022 was $6,471,219.
In April 1998, the Commission loaned $5,622,300 to Executive Lodge Apartments Limited Partnership (Promenade Apartments project). The loan was transferred to the Housing Authority from the dissolved former Commission. The loan is secured by a deed of trust. The loan was amended and restated on April 1, 2017, with a principal of $6,056,621 accruing interest at 2.82% compounded annually and requires annual payments equal to 50% of “Available Cash Flow”. The outstanding principal and accrued interest as of June 30, 2022 was $6,565,194.
In May 2002, the Commission loaned $4,360,000 to West Covina Senior Villas, LLC. The loan is secured by a deed of trust. The loan does not accrue interest. The loan requires annual payments of $141,667 through May 2032 that are forgiven by the City unless the borrower defaults on the agreement. The outstanding principal as of June 30, 2022 was $2,833,333. The loan is likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts.
In May 2009, the Commission entered into an agreement with West Covina Senior Villas II, L.P. to provide $8,600,000 for the acquisition of real property in the City and construction and maintenance of an approximately 65-unit apartment complex to be rented to low income and very low income senior citizens. The loan is secured by a deed of trust. The loan does not accrue interest and is forgiven so long as the borrower does not default on the loan. The outstanding principal as of June 30, 2022 was $8,513,885. The loan is likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts.
Other notes consist of affordable housing loans of $400,000. The notes do not accrue interest and are forgiven unless the borrower sells or refinances the property. Additionally, the balance included a note of $208,196 for low income housing which accrues no interest and is forgivable if the owner maintains the low and moderate income housing status. The outstanding principal of these loans as of June 30, 2022 was $608,196. The loans are likely to be forgiven; therefore, the City has included the entire balance in the allowance for doubtful accounts. 6) LAND HELD FOR RESALE
Land held for resale is valued at the lower of cost or the sales price per contract with the developer. The land held for resale at June 30, 2022 was comprised of land to be used as open space or a municipal golf course in the amount of $3,007,802.
47 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
7) CAPITAL ASSETS
Depreciation expense was charged to the following functions for governmental activities in the Statement of Activities:
Beginning Ending
Governmental Activities: Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land $ 48,606,495 $ (250,000) - $ $ 48,356,495
Rights of Way 14,376,498 - 14,376,498 -
Construction in Progress 5,150,186 19,587,124 (1,788,170) 22,949,140 Total Capital Assets, Not
Being Depreciated 68,133,179 19,587,124 (2,038,170) 85,682,133 Capital Assets Being Depreciated:
Buildings and Improvements 115,999,376 817,073 116,816,449 - Equipment and Vehicles 35,486,572 3,884,272 (78,870) 39,291,974 Infrastructure - Pavement 198,409,825 1,145,558 199,555,383 - Infrastructure - Other 24,306,803 16,310 24,323,113 -
Total Capital Assets Being
Depreciated 374,202,576 5,863,213 (78,870) 379,986,919
Less Accumulated Depreciation:
Buildings and Improvements (51,597,459) (2,334,958) (53,932,417) - Equipment and Vehicles (27,550,760) (2,227,637) 78,870 (29,699,527) Infrastructure - Pavement (159,748,483) (6,793,292) (166,541,775) - Infrastructure - Other (18,991,663) (414,575) (19,406,238) - Total Accumulated Depreciation (257,888,365) (11,770,462) (269,579,957) 78,870 Net Capital Assets Being Depreciated 116,314,211 (5,907,249) 110,406,962 - Governmental Activities, Capital Assets 184,447,390 $ $ 13,679,875 $ (2,038,170) $ 196,089,095 General Government $ 720,709
Public Safety 1,214,188
Public Works 8,334,213
Community Services 1,501,352
$ 11,770,462
Beginning Ending
Business-type Activities: Balance Increases Decreases Balance Capital Assets Being Depreciated:
Equipment and Vehicles $ 1,059,120 $ - $ 1,059,120 - $
Less Accumulated Depreciation:
Equipment and Vehicles (1,059,120) - (1,059,120) -
Net Capital Assets Being Depreciated - - - -
Business-type Activities, Capital Assets $ - $ - $ - $ - 48 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
8) LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2022 are as follows:
The liability for compensated absences, Total OPEB, and Net Pension are generally liquidated by the General Fund and internal service funds.
Notes Payable – Direct Borrowing
Successor Agency Note
On December 4, 2015, the City and Successor Agency entered into a settlement agreement with the California Department of Finance (DOF) regarding the Other Funds Due Diligence Review. The agreement requires the City to repay the Successor Agency $11,578,351 for transfers that did not represent enforceable obligations.
The Successor Agency will then remit these funds to the Los Angeles County Auditor-Controller for allocation to the affected taxing entities. The amount of the note must be repaid through biannual payments in the amount of $289,459 each January 15th and June 15th until the loan is repaid in full on June 15, 2035. There is no interest charged on this repayment. The outstanding balance as of June 30, 2022 was $7,525,925.
The following represents the future annual debt service requirements:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
Direct Borrowing:
Notes Payable $ 8,104,843 $ (578,918) - $ $ 7,525,925 $ 578,918 Loans Payable 6,602,048 (190,381) - 6,411,667 266,072
2006 Lease Revenue Bonds 14,885,000 (585,000) - 14,300,000 660,000 2018 Lease Revenue Bonds 22,190,000 (870,000) - 21,320,000 910,000 Premium on Bonds 1,221,403 (53,105) - 1,168,298 53,105
2020 Lease Revenue Bonds 204,095,000 (3,645,000) - 200,450,000 3,925,000 Compensated Absences 3,915,868 2,838,834 (2,744,810) 4,009,892 2,715,756 Net Pension Liability 201,901,907 (196,104,669) - 5,797,238 - Total OPEB Liability 76,070,626 (10,974,517) - 65,096,109 - Claims Payable 12,740,483 3,305,329 (3,372,658) 12,673,154 3,310,764 Total $ 551,727,178 $ 6,144,163 $ (219,119,058) $ 338,752,283 $ 12,419,615 Business-type Activities:
Compensated Absences $ 18,573 $ 10,725 $ (9,283) $ 20,015 $ 20,015 Total $ 18,573 $ 10,725 $ (9,283) $ 20,015 $ 20,015
49 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
8) LONG-TERM LIABILITIES – Continued
Energy Efficiency Loans Payable – Direct Borrowing
Solar Equipment Loan
In May 2021, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment and improvements (solar) with an aggregate principal borrowing of $3,386,950.
The proceeds are to be used to pay for the energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.60% and are due and payable semi-annually on May 13th and November 13th each year, maturing on May 13, 2041. The General Fund will generally be responsible for making the debt service payments annually.
Non-Solar Equipment Loans
In May 2021, the City entered into a lease-purchase agreement for the acquisition and installation of certain energy conservation equipment including lighting and HVAC (non-solar) with an aggregate principal borrowing of $3,215,098. The proceeds are to be used to pay for the energy efficiency and conservation improvements as specified in the agreement. The payments bear interest at 3.05% and are due and payable semi-annually on May 13th and November 13th each year, maturing on May 13, 2036. The General Fund will generally be responsible for making the debt service payments annually. Annual debt service requirements follow:
Fiscal Year Ending
June 30, Principal Interest Total
2023 $ 578,918 $ 196,993 $ 775,911
2024 578,918 192,605 771,523
2025 578,918 186,786 765,704
2026 578,918 179,661 758,579
2027 578,918 172,411 751,329
2028 578,918 165,877 744,795
2029 578,918 160,205 739,123
2030 578,918 154,215 733,133
2031 578,918 135,456 714,374
2032 578,918 102,300 681,218
2033 578,918 66,600 645,518
2034 578,918 38,300 617,218
2035 578,909 7,200 586,109
Totals 7,525,925 $ $ 1,758,609 $ 9,284,534
Fiscal Year Ending
June 30, Principal Interest Total
2023 266,072 $ 211,558 $ 477,630 $
2024 257,766 202,994 460,760
2025 280,485 194,431 474,916
2026 304,402 185,147 489,549
2027 306,853 175,274 482,127
2028 - 2032 1,704,308 719,434 2,423,742
2033 - 2037 1,979,555 418,752 2,398,307
2038 - 2041 1,312,226 109,255 1,421,481
Totals 6,411,667 2,216,845 8,628,512
50 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
8) LONG-TERM LIABILITIES - Continued
Lease Revenue Bonds
2006 Lease Revenue Bonds, Series A and B (Big League Dreams Project) In September 2006, the City issued $10,710,000 of Lease Revenue Bonds, Series A and $7,295,000 of taxable Lease Revenue Bonds, Series B to provide financing for facilities and infrastructure related to the Big League Dreams sports park. The Series A bonds mature annually through June 1, 2036, in amounts ranging from $80,000 to $1,270,000, with interest rates that range from 4.0% to a maximum of 5.0% over the term of the bonds. The Series B bonds mature annually through June 1, 2036, in amounts ranging from $115,000 to $550,000, with interest rates that range from 5.39% to a maximum of 6.07% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded at June 30, 2022. The outstanding principal balance as of June 30, 2022 was $14,300,000.
The following represents the future annual debt service requirements:
2018 Lease Revenue Refunding Bonds, Series A and B
On November 20, 2018, the City issued $19,310,000 of Lease Revenue Bonds, Series A and $4,855,000 of taxable Lease Revenue Bonds, Series B to provide financing for the advance refunding of the City's 2002 Lease Revenue Bonds Series A, 2004 Lease Revenue Bonds Series A&B, and the 2013 Lease Revenue Refunding Bonds Series A. The Series A bonds mature annually through May 1, 2044, in amounts ranging from $460,000 to $125,000, with interest rates that range from 4.0% to a maximum of 5.0% over the term of the bonds. The Series B bonds mature annually through May 1, 2030, in amounts ranging from $345,000 to $500,000, with interest rates that range from 2.953% to a maximum of 4.469% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded as of June 30, 2022. The outstanding principal balance as of June 30, 2022 was $21,320,000.
The following represents the future annual debt service requirements:
Fiscal Year Ending
June 30, Principal Interest Total
2023 $ 660,000 $ 772,557 $ 1,432,557
2024 695,000 736,880 1,431,880
2025 730,000 699,295 1,429,295
2026 770,000 659,802 1,429,802
2027 820,000 618,100 1,438,100
2028 860,000 573,622 1,433,622
2029 905,000 526,930 1,431,930
2030 950,000 477,775 1,427,775
2031 1,005,000 426,155 1,431,155
2032 1,060,000 371,518 1,431,518
2033 1,120,000 313,864 1,433,864
2034 1,180,000 252,942 1,432,942
2035 1,725,000 188,699 1,913,699
2036 1,820,000 96,885 1,916,885
Totals 14,300,000 $ $ 6,715,024 $ 21,015,024
51 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
8) LONG-TERM LIABILITIES - Continued
2020 Lease Revenue Bonds, Series A
On July 23, 2020, the City issued $204,095,000 of Lease Revenue Bonds, Series A (taxable) to provide financing to pay the City’s unfunded pension liabilities to CalPERS, to establish a reserve fund, and pay issuance costs. The Series A bonds mature annually through August 1, 2044, in amounts ranging from $3,645,000 to $16,105,000, with interest rates that range from 1.747% to a maximum of 3.892% over the term of the bonds. The bonds are payable from lease payments as rental for certain public facilities. The reserve requirement was fully funded as of June 30, 2022. The outstanding principal balance as of June 30, 2022 was $200,450,000. The following represents the future annual debt service requirements:
Claims Payable
Claims payable are typically paid from the City’s Internal Service Self-Insurance Fund. There is no fixed payment schedule for claims liabilities.
Compensated Absences
The liability of $4,009,892 represents the governmental activities portion of total unpaid vacation and compensation time earned by employees of the City. There is no fixed payment schedule for earned but unpaid compensated absences. The General Fund typically has been used to liquidate the liability for compensated absences. The liability of $20,015 represents the business-type activity portion of total unpaid vacation and compensation time earned by employees of the City. There is no fixed payment schedule for earned but unpaid compensated absences.
Fiscal Year Ending
June 30, Principal Interest Total
2023 910,000 $ 952,011 $ $ 1,862,011
2024 950,000 910,569 1,860,569
2025 990,000 866,750 1,856,750
2026 1,040,000 820,871 1,860,871
2027 1,085,000 772,151 1,857,151
2028 - 2032 6,195,000 3,039,379 9,234,379
2033 - 2037 7,715,000 1,452,950 9,167,950
2038 - 2042 2,190,000 181,200 2,371,200
2043 - 2044 245,000 14,800 259,800
Total $ 21,320,000 $ 9,010,681 $ 30,330,681
Fiscal Year Ending
June 30, Principal Interest Total
2023 3,925,000 $ 6,981,799 $ $ 10,906,799
2024 4,210,000 6,904,083 11,114,083
2025 4,525,000 6,813,563 11,338,563
2026 4,560,000 6,711,662 11,271,662
2027 4,900,000 6,596,630 11,496,630
2028 - 2032 30,425,000 30,591,422 61,016,422
2033 - 2037 42,875,000 24,489,702 67,364,702
2038 - 2042 59,465,000 14,912,142 74,377,142
2043 - 2045 45,565,000 2,730,919 48,295,919
Total 200,450,000 $ $ 106,731,922 $ 307,181,922
52 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
9) SELF-INSURANCE
The City is exposed to various risks of loss related to its operation, including losses associated with errors and omissions, injuries to employees and members of the public. The City's Internal Service Self-Insurance Fund is used to account for and finance its uninsured risks of loss.
Description of Self-Insurance Pool Pursuant to Joint Powers Agreement As of July 1, 2021, the City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 123 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The Authority began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
The City participates in the excess workers' compensation and excess general liability programs of the Authority.
Excess Liability Program
Liability coverage includes auto liability, employment practices liability, public officials’ errors and omissions, bodily injury, personal injury, third party property damage, advertising injury, and employee benefit administration liability. The City has a retained limit of $1,000,000 per occurrence. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. The coverage structure is composed of a combination of pooled self-insurance, reinsurance, and excess insurance. Additional information concerning the coverage structure is available on the Authority’s website: https://cjpia.org/coverage/risksharing-pools/ .
Excess Workers’ Compensation Program
The City has a retained limit of $1,000,000 per occurrence for workers’ compensation claims. The Authority’s pooled retention is $1 million per occurrence with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $1 million. Coverage from $1 million to $5 million is purchased through reinsurance policies, and Employer’s Liability losses from $5 million to $10 million are pooled among members.
Purchased Insurance
Pollution Legal Liability Insurance
The City of West Covina participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of West Covina. Coverage is on a claims-made basis. There is a $250,000 deductible, with a limit of $5 million per member.
Property Insurance
The City of West Covina participates in the All-Risk Property Protection Program. This insurance protection is underwritten by several insurance companies. The City’s property is currently insured according to a schedule of covered property submitted by the City to the Authority. The total insured value of scheduled City property is $97,026,667. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible.
53 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
9) SELF-INSURANCE - Continued
Crime Insurance
The City of West Covina participates in the Crime Insurance Program. Formerly called Blanket Fidelity Bond, this policy covers faithful performance, depositor’s forgery, theft of money and securities, and computer fraud related to the transfer of money. The policy limit is $3,000,000, and the deductible is $2,500.
Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2021-22.
Claims and Judgments
The City accounts for uninsured, material claims and judgments and associated legal and administrative costs when it is probable that the liability claim has been incurred and the amount of the loss can be reasonably estimated. Included therein are claims incurred but not reported, which consists of (a) known loss events expected to be presented as claims later, (b) unknown loss events that are expected to become claims, and (c) expected future development on claims already reported. This is based upon historical actual results that have established a reliable pattern supplemented by specific information about current matters. Small dollar claims and judgments are recorded as expenditures when paid.
The claims and judgments liability reported in the Internal Service Self-Insurance Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims and judgments be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated. Claims and judgments payable, including estimated claims for incurred but not reported claims, amounted to $12,673,154 as of June 30, 2022.
In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage.
Changes in the claims and judgments payable amounts for the past two fiscal years for the Self-Insurance Fund are as follows:
Claims and
Year Ended Beginning Changes in Claim End
June 30, of Year Estimates Payments of Year
2022 12,740,483 $ 3,305,329 $ 3,372,658 $ 12,673,154 $
2021 13,178,903 1,521,315 1,959,735 12,740,483
54 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
10) NON-CITY OBLIGATION DEBT
Emanate Health, a California nonprofit public benefit corporation (Corporation), has requested that the California Statewide Communities Development Authority (CSCDA) participate in the issuance of one or more series of revenue bonds (Bonds) in an aggregate principal amount not to exceed $260,000,000, for the acquisition, construction, equipping, improvement, renovation, rehabilitation and/or remodeling of hospital, health care and related facilities (Project) to be owned and operated by the Corporation or one of its affiliates.
For each component of the Project, the issuance of the Bonds by the CSCDA must be approved by the applicable city in which the component of the Project is located before construction can begin. One component of the Project consists of the construction of two separate buildings at the Queen of the Valley Hospital campus located in West Covina.
On May 19, 2020, the City Council approved the issuance of the Bonds and Refunding Bonds by the CSCDA for the purposes of financing and/or refinancing the Project via the adoption of the resolution number 2020-26. 11) FUND BALANCE CLASSIFICATIONS
The City’s governmental fund balances at June 30, 2022, are presented below:
12) DEFICIT FUND BALANCES
The following funds reported deficits in fund balances/net position as of June 30, 2022:
West Covina State Other
General Housing Gas Citywide Governmental
Fund Authority Tax ARPA Debt Funds Total
Nonspendable:
Prepaid Items $ 146,508 $ - $ - $ - $ 11,989 - $ $ 158,497 Advances to Successor Agency - - - - - - -
Advances to Other Funds 225,826 - - - - 225,826 -
Land Held for Resale 3,007,802 - - - - 3,007,802 -
Restricted for:
Affordable Housing 23,445,655 - - - - 23,445,655 -
Debt Service - - - 19,947,463 - 19,947,463 -
Pension Trust 8,287 - - . - - 8,287
Community Services - - - - 1,541,112 - 1,541,112
Public Safety - - - - 8,289,411 - 8,289,411
Public Works - 6,567,084 - - 40,941,357 - 47,508,441
Assigned:
Capital Improvement - - - - 6,601,977 - 6,601,977
Unassigned 20,770,457 - - - (164,865) - 20,605,592
Total Fund Balances $ 24,158,880 $ 23,445,655 $ 6,567,084 $ 19,947,463 - $ $ 57,220,981 $ 131,340,063 Deficit
Non-Major Special Revenue Governmental Funds: Balance
Community Development Block Grant $ 84,939
Auto Plaza Improvement District 75,797
Sportsplex 4,129
55 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
12) DEFICIT FUND BALANCES - Continued
The deficit of $84,939 in the Community Development Block Grant Fund is the result of expenditures incurred prior to reimbursement from grantors. The deficit will be eliminated through future grant revenues. The Auto Plaza Improvement District deficit of $75,797 will be reduced as the fund pays back the advance from the General Fund.
13) PENSION PLAN SUMMARY
The City currently has a total of two pension plans administered by CalPERS and two retirement enhancement plans administered by PARS. The pension plans consist of a miscellaneous agent plan and a safety agent plan (see Note 14 for a full description of the plans). The retirement enhancement plan consists of an EPMC replacement supplemental retirement plan and a supplemental retirement plan for executive staff and City Council (see Note 15 for a full description of the plans). The summary of the pension related liability, deferred inflows of resources and deferred outflows of resources are as follows:
14) EMPLOYEE RETIREMENT PLANS
General Information about the Pension Plans
Plan Descriptions: All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous and Safety Plans, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Benefits Provided: The Plans are agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plans regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plans’ June 30, 2020 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website.
Miscellaneous Safety
Plan Plan EPMC EXEC Total
Deferred Outflows of Resources 1,385,472 $ 7,999,441 $ $ 80,949 333,720 $ 9, $ 799,582 Deferred Inflows of Resources 18,145,728 49,395,480 50,981 46,979 67, 639,168 Pension Liability/(Asset) (14,600,850) (51,121,883) 1,164,330 4,632,908 (59,925,495) 56 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
14) EMPLOYEE RETIREMENT PLANS – Continued
The Plans’ provisions in effect at June 30, 2022, are summarized as follows:
*New hires who are already enrolled in CalPERS are eligible for benefits under the Tier II, and other new hires are enrolled in the PEPRA rate plans.
Employees Covered: At June 30, 2022 (June 30, 2020 valuation date), the following number of employees were covered by the benefit terms for the Plan:
Contributions: Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution.
Prior to On or after Prior to On or after
Hire date January 1, 2011 January 1, 2011 January 1, 2013 January 1, 2013 Benefit formula 2.0% @ 55 2.5% @ 55 2.0% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life monthly for life Retirement age 50-67+ 50-67+ 50-67+ 52-67+
Monthly benefits, as a % of eligible compensation (1) (1) (1) (1) Required employee contribution rates 0% 8.00% 7% 6.25%
Required employer contribution rates 9.18% + $551,700 9.18% 9.18% 9.18% Prior to Prior to On or after
Hire date July 1, 2012 January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 & up 50-55+ 50-57+
Monthly benefits, as a % of eligible compensation (1) (1) (1) Required employee contribution rates 9% 9% 12.75%
Required employer contribution rates 21.55% + $653,960 21.55% 21.55% (1) - Depending on years of service
Miscellaneous
Safety
Miscellaneous Safety
Inactive employees or beneficiaries
currently receiving benefits 460 351
Inactive employees entitled to but not yet
receiving benefits 289 71
Active employees 113 160
Total 862 582
57 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
14) EMPLOYEE RETIREMENT PLANS – Continued
Net Pension Liability/(Asset)
The City’s net pension liability/(asset) for the Plans is measured as the total pension liability, less the pension plans’ fiduciary net position. The net pension liability/(asset) of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability/(asset) is shown below.
Actuarial Assumptions: The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Postretirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both shortterm and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
Valuation date June 30, 2020
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.50%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
Post Retirement Benefit Increase (3)
(1) Depending on age, service and type of employment
(2) Derived using CalPERS’ Membership Data for all Funds. (3) The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies,
2.50% thereafter
58 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
14) EMPLOYEE RETIREMENT PLANS – Continued
Discount Rate - The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Subsequent Events - On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the fouryear Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.
New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Global Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 59 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
14) EMPLOYEE RETIREMENT PLANS – Continued
Changes in Net Pension Liability
The changes in the Net Pension Liability for the Miscellaneous and Safety Plans are as follows:
Sensitivity of the Net Pension Liability to Changes in the Discount Rate: The following presents the net pension liability/(asset) of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 (June 30, 2021 reporting date) 162,975,272 $ $ 115,273,883 $ 47,701,389 Changes in the year:
Service cost 1,148,088 1, - 148,088
Interest on the total pension liability 11,357,041 11, - 357,041 Differences between expected and actual experience 605,918 - 605,918 Contributions from the employer 41, - 343,222 (41,343,222) Contributions from employees - 489,857 (489,857)
Net investment income 33, - 695,359 (33,695,359)
Benefit payments, including refunds (10,630,997) (10,630,997) - Administrative/other expense ( - 115,152) 115,152
Net changes 2,480,050 64,782,289 (62,302,239)
Balance at June 30, 2021 (June 30, 2022 reporting date) 165,455,322 $ $ 180,056,172 $ (14,600,850) Miscellaneous
Increase (Decrease)
Pension Plan Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2020 (June 30, 2021 reporting date) 404,456,518 $ $ 255,816,761 $ 148,639,757 Changes in the year:
Service cost 5,563,564 5,563,564 -
Interest on the total pension liability 28,585,424 28,585,424 - Differences between expected and actual experience 4,243,730 4,243,730 - Contributions from the employer 149,228,549 - (149,228,549) Contributions from employees 2,010,282 - (2,010,282)
Net investment income 87,171,072 - (87,171,072)
Benefit payments, including refunds (23,371,783) (23,371,783) - Administrative/other expense (255,545) - 255,545
Net changes 15,020,935 214,782,575 (199,761,640)
Balance at June 30, 2021 (June 30, 2022 reporting date) 419,477,453 $ $ 470,599,336 $ (51,121,883) Increase (Decrease)
Safety
60 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
14) EMPLOYEE RETIREMENT PLANS – Continued
Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense/(income) of ($2,571,302) for the Miscellaneous Plan and ($3,518,282) for the Safety Plan. At June 30, 2022, the City reported deferred outflows and deferred inflows for the Miscellaneous and Safety Plans from the following sources:
The $1,212,353 and $4,920,803 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction/(increase) of the net pension liability/(asset) in the year ended June 30, 2023. Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2022.
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability/(Asset) 5,151,720 $ 3, $ 492,002
Current Discount Rate 7.15% 7.15%
Net Pension Liability/(Asset) (14,600,850) $ (51, $ 121,883) 1% Increase 8.15% 8.15%
Net Pension Liability/(Asset) (30,977,525) $ (96, $ 093,408) Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions subsequent to measurement date 1,212,353 $ - $ 4,920,803 $ - $ Differences between actual and expected experience 173,119 - 3,078,638 850,977 Changes in assumptions - - - -
Net differences between projected and actual
earnings on plan investments - 18,145,728 - 48,544,503
Total 1,385,472 $ 18,145,728 $ 7,999,441 $ 49,395,480 $ Miscellaneous Safety
Year Ending
June 30, Miscellaneous Safety
2023 $ (4,415,234) $ (11,623,046)
2024 (4,283,845) (10,488,390)
2025 (4,402,172) (11,334,595)
2026 (4,871,358) (12,870,811)
2027 - -
Thereafter - -
Deferred Outflows/Inflows of
Resources, Net
61 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS)
A) General Information about the EPMC Replacement Supplemental Pension Plan Plan Description and Benefits Provided
Effective November 1, 2007, the City established an agent multiple-employer defined benefit plan to supplement the current CalPERS retirement benefits that is to be administered for the City by the Public Agency Retirement System (PARS), a third-party administrator. The plan meets the requirements of a pension trust under California Government Code. Phase II Systems is the PARS Trust Administrator. The plan does not issue separate financial reports.
The EPMC Replacement Plan was established to replace a long-standing benefit for city employees no longer allowed by CalPERS. The plan provides for a benefit in an amount equal to the member's years of service, times the member's final pay, times the CalPERS age factor, times .70% for miscellaneous employees (times .89% for safety employees). At the time of retirement, employees will make an election to receive either a lump sum payment or receive ongoing stipends over their lifetime.
Employees shall be eligible to receive benefits under this plan if he or she meets all of the following requirements under one of the following tiers:
Tier 1
Full time miscellaneous employees on or after July 1, 2004 but hired prior to July 1, 2011. Classified as a department head or city council, employee represented by the Confidential Employees’ Association, General Employees’ Association, West Covina Maintenance and Crafts Employees’ Association, Mid-Management Employees’ Association and Non-Sworn Support Employees’ Association.
Has had compensable earnings under CalPERS impacted by CalPERS regulation, thereby causing a reduction in CalPERS benefits.
At least fifty (50) years of age.
Has completed at least one year of employment.
Has terminated employment with the City and concurrently retired under CalPERS under a regular service retirement and remains in retired status under CalPERS. Has applied for benefits under this plan.
Tier 2
Full time miscellaneous employees on or after July 1, 2004 but hired prior to July 1, 2011. Fire safety employee on or after July 1, 2004 but hired prior to July 1, 2012. Police management employee on or after July 1, 2004 but hired prior to December 31, 2012, or an employee hired prior to January 1, 2013 who promotes or transfers to police management position on or after January 1, 2013.
62 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Not represented by the West Covina Police Officers Association. Has had compensable earnings under CalPERS impacted by CalPERS regulation, thereby causing a reduction in CalPERS benefits.
At least fifty (50) years of age.
Has completed at least one year of employment
Has terminated employment with the City and concurrently retired under CalPERS under a regular service retirement, and remains in retired status under CalPERS. Has applied for benefits under this plan.
Contributions - The City makes all contributions to these plans. Participants do not make any contributions.
The actuarially required contribution is determined on the funding policy and most recent measurement available when the contribution for the reporting period was adopted. The City is funding the plan to pay the benefit payments payable each year. The City’s contribution for the year ended June 30, 2022 was $51,428.
Employees Covered
At June 30, 2021, the valuation date, the following employees were covered by the benefit terms for the plan:
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2021. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions - The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:
EPMC
Inactive employees or beneficiaries
currently receiving benefits 47
Active employees 87
Total 134
EPMC
Valuation date June 30, 2021
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 5.75% at June 30, 2021
6.25% at June 30, 2022
Inflation 2.55%
Mortality CalPERS 2000-2019
Experience Study
Mortality Improvement Mortality projected fully
generation with scale MP-2021
63 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Discount Rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses.
A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 67 and 68 will often require that the actuary performs complex projections of future benefit payments and asset values.
The following circumstances were included in the evaluation of sufficiency for the City:
Annual contributions of 0.7% of payroll (closed group basis) are assumed (beginning with 2015/16). Benefit payments are annually withdrawn from the Trust until assets are exhausted and then benefit payments made directly by the City.
All cash flows are assumed to occur on average halfway through the year. The long-term expected rate of return on pension plan investments is 5.75%. The actuarial assumptions do not change.
GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan’s funded position.
Based on these circumstances, it is the actuary’s opinion that a depletion date projection is not appropriate.
Therefore, the discount rate is based on the projected portion of the Total Pension Liability funded by the Fiduciary Net Position in each future year. For the funded portion, the long-term expected rate of return on pension plan investments (5.75%) was used. For the unfunded portion, the Bond Buyer 20-Bond Go Index as of the June 30, 2021, measurement date (2.16%) was used. The discount rate used (2.16%) represents the single equivalent rate of return, as described under GASB 68 (paragraph 31).
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation.
The table bellows reflects the long-term expected real rate of return by asset class:
Target Expected Real
Asset Class Allocation Rate of Return
Equity 58% 4.56%
REIT's 2% 4.06%
Fixed Income 35% 78.00%
Cash 5% -0.50%
Total 100.00%
64 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The plan’s fiduciary net position was not projected to be available to make all projected future benefit payments of current retirees. Therefore, the discount rate for calculating the total pension liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payments, to the extent that the plan’s fiduciary net position is not projected to be sufficient. The City chose the Bond Buyer General Obligation 20-Bond Index resulting in the use of a 2.16% discount rate (single equivalent rate of return) in calculating the pension liability.
Changes in the Net Pension Liability
The changes in the net pension liability for the Plan are as follows:
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability (asset) of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Total Plan Fiduciary Net Pension
Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2020 (June 30, 2021 reporting date) 1,209,16 $ 2 $ 87,925 $ 1,121,237 Changes in the year:
Service cost 26,943 - 26,943
Interest on the total pension liability 31,913 - 31,913 Changes of benefit terms - - -
Differences between expected and actual experience 10,382 - 10,382 Changes in assumptions 38,703 - 38,703
Contributions from the employer - 52,666 (52,666)
Net investment income - 18,413 (18,413)
Benefit payments, including refunds (81,760) (81,760) - Administrative/other expense - (6,231) 6,231
Net changes 26,181 (16,912) 43,093
Balance at June 30, 2021 (June 30, 2022 reporting date) 1,235,34 $ 3 $ 71,013 $ 1,164,330 Increase (Decrease)
1% Decrease 1.31%
Net Pension Liability $ 1,312,847
Current Discount Rate 2.31%
Net Pension Liability $ 1,164,330
1% Increase 3.31%
Net Pension Liability $ 1,042,852
65 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2022, the City recognized pension expense of $121,274 for the Plan. At June 30, 2022, the City reported deferred outflows and deferred inflows related to the Plan from the following sources:
The $51,428 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.
Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2022.
B) Supplemental Retirement Plan for Executive Staff and City Council Pension Plan Plan Description and Benefits Provided
Effective November 1, 2007, the City established a agent multiple-employer defined benefit plan to supplement the current CalPERS retirement benefits that is to be administered for the City by with the Public Agency Retirement System (PARS), a third-party administrator. The plan meets the requirements of a pension trust under California Government Code. Phase II Systems is the PARS Trust Administrator. The plan does not issue separate financial reports and is closed to new hires.
This agent multiple-employer defined benefit pension plan is separated into three tiers.
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 51,428 $ - Differences between actual and expected experience 74,295 4,800 Changes in assumptions 207,997 38,023
Net differences between projected and actual
earnings on plan investments - 8,158
Total $ 333,720 $ 50,981
Year Ending
June 30, EPMC
2023 53,475 $
2024 49,605
2025 49,107
2026 47,298
2027 31,023
Thereafter 803
66 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Tier 1 (full-time non-safety Department Head and the City Manager) and Tier 2 (City Council) provides an additional retirement amount to miscellaneous department heads, City Manager and City Council in an amount equal to the amount of $823 per month. This benefit amount increases each year by CPI, up to 2%. In order to be eligible for this benefit, participants must have five years of service with the City and must retire into PERS from the City.
Tier 3 (City Manager) provides an increased retirement benefit to a former City Manager consistent with the terms of his contract. It will convert the retirement formula for all years of prior CalPERS service at non-West Covina agencies to the CalPERS 2.5% @ 55 formula currently in place with the City of West Covina.
Contributions
All three tiers are combined for funding purposes in this plan. The City makes all contributions to these plans.
Participants do not make any contributions. The actuarially required contribution is determined on a pay as you go funding policy and most recent measurement available when the contribution for the reporting period was adopted. The City is funding the plan to pay the benefit payments payable each year. The City’s contribution for the year ended June 30, 2022 was $80,949.
Employees Covered
At June 30, 2021, the measurement date, the following employees were covered by the benefit terms for the plan:
Net Pension Liability
The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2021. A summary of principal assumptions and methods used to determine the net pension liability is shown below.
Supplemental
Inactive employees or beneficiaries
currently receiving benefits 11
Active employees 1
Total 12
67 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Discount Rate
GASB 67 and 68 generally require that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan’s Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses.
A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 67 and 68 will often require that the actuary perform complex projections of future benefit payments and asset values. GASB 67 (paragraph 43) and 68 (paragraph 29) do allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left to professional judgment.
The following circumstances justify an alternative evaluation of sufficiency for the City:
The City ceased contributions and withdrawals from the Trust. The City will pay benefits directly to retirees until the trust is sufficient, on an expected basis, to pay all remaining benefits. All cash flows are assumed to occur on average halfway through the year. The long-term expected rate of return on pension plan investments is 5.25%. The actuarial assumptions do not change.
GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan’s funded position.
Based on these circumstances, it is the actuary’s opinion that a depletion date projection is not appropriate.
Therefore, the discount rate is based on the projected portion of the Total Pension Liability funded by the Fiduciary Net Position in each future year. For the funded portion, the long-term expected rate of return on pension plan investments (5.75%) was used. For the unfunded portion, the Bond Buyer 20-Bond Go Index as of the June 30, 2021, measurement date, (2.16%) was used. The discount rate used (2.23%) represents the single equivalent rate of return, as described under GASB 68 (paragraph 31).
Supplemental
Valuation date June 30, 2021
Measurement date June 30, 2021
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 2.23%
Inflation 2.50%
Salary Increase 3.00%
Benefit Increase 2.00%
Mortality CalPERS 2000 - 2019
Experience Study
Investment Rate of Return 5.75%
68 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation.
The table below reflects the long-term expected real rate of return by asset class:
The plan’s fiduciary net position was not projected to be available to make all projected future benefit payments of current retirees. Therefore, the discount rate for calculating the total pension liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payments, to the extent that the plan’s fiduciary net position is not projected to be sufficient. The City chose the Bond Buyer General Obligation 20-Bond Index resulting in the use of a 3.63% discount rate (single equivalent rate of return) in calculating the pension liability.
Changes in the Net Pension Liability
The changes in the net pension liability, with a measurement date of June 30, 2021, for the Plan are as follows:
Target Expected Real
Asset Class Allocation Rate of Return
Equity 58% 4.56%
REIT's 2% 4.06%
Fixed Income 35% 0.78%
Cash 5% -0.50%
Total 100.00%
Total Plan Fiduciary Net Pension
Pension Liability Net Position Liability/(Asset)
Balance at June 30, 2020 (June 30, 2021 reporting date) 4,901,32 $ 7 $ 461,803 $ 4,439,524 Changes in the year:
Service cost - - -
Interest on the total pension liability 113,650 - 113,650 Changes of benefit terms - - -
Differences between expected and actual experience 168,573 - 168,573 Changes in assumptions 81,046 - 81,046
Contributions from the employer - 79,364 (79,364)
Net investment income - 96,424 (96,424)
Benefit payments, including refunds (171,237) (171,237) - Administrative/other expense - (5,903) 5,903
Net changes 192,032 (1,352) 193,384
Balance at June 30, 2021 (June 30, 2022 reporting date) 5,093,35 $ 9 $ 460,451 $ 4,632,908 Increase (Decrease)
69 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
15) PUBLIC AGENCY RETIREMENT SYSTEM (PARS) - Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability (asset) of the City for the Plan, calculated using the discount rate for the Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
For the year ended June 30, 2022, the City recognized pension expense of $330,323. At June 30, 2022, the City reported deferred outflows and deferred inflows related to the Plan from the following sources:
The $80,949 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.
Other amounts reported as deferred outflows and deferred inflows related to pensions will be recognized as pension expense as follows:
Payable to the Pension Plan: The City had no outstanding contributions to the pension plan required for the year ended June 30, 2022.
1% Decrease 1.23%
Net Pension Liability $ 5,556,822
Current Discount Rate 2.23%
Net Pension Liability $ 4,632,908
1% Increase 3.23%
Net Pension Liability $ 3,906,260
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 80,949 $ - $ Differences between actual and expected experience - -
Changes in assumptions - -
Net differences between projected and actual
earnings on plan investments - 46,979
Total $ 80,949 $ 46,979
Year Ending
June 30, Supplemental
2023 (10,904) $
2024 (10,737)
2025 (11,140)
2026 (14,198)
2027 -
Thereafter -
70 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
16) DEFINED CONTRIBUTION RETIREMENT PLAN
During the 1991-1992 fiscal year, the City established the West Covina Part-Time Retirement Plan, a defined contribution retirement plan, for all non-benefited, part-time employees in accordance with Internal Revenue Code Section 457, to conform to Section 3121(b)(7)(F) of the Internal Revenue Code added by the Omnibus Budget Reconciliation Act of 1990. The plan is administered by Nationwide Retirement Solutions. The plan was established by the authority of the City Council who retains the authority to amend the plan.
A defined contribution pension plan provides pension benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant’s account and the returns earned on investments of the contributions.
Part-time, non-benefited, non-persable employees of the City must participate in the plan. During 2012-13, 195 part-time employees participated in the plan. All contributions to the plan vest immediately. An employee who leaves the City is entitled to all contributions and earnings applied to the individual’s account through the date of separation, less legally required income tax withholding. Contribution levels into the deferred compensation plan were established by City Council resolution at 0% for the City and 7.5% for non-benefited, non-persable part-time employees.
During the year, total required and actual contributions amounted to $77,581 and covered payroll for the year ended June 30, 2022 totaled $1,034,404. No contributions were made by the City and employees contributed $77,581 (7.72% of current covered payroll). Total plan assets at June 30, 2022 were $880,170. Plan assets are held in trust for the exclusive benefit of participants and their beneficiaries and, therefore, are not included in the financial statements.
17) OTHER POST EMPLOYMENT BENEFITS
General Information About the OPEB Plan
Plan Descriptions
Medical - The City administers a single-employer defined benefit plan which provides healthcare benefits to eligible retirees and their dependents in accordance with various labor agreements. City paid amounts are capped at varying amounts depending on employee's bargaining unit, as follows:
Police:
o $1,005 per month for employees hired before July 1, 2012, with five years of sworn service or hired after July 1, 2012, with more than twenty years of sworn service o PEMHCA minimum amount ($143 and $149 per month in calendar years 2021 and 2022, respectively) for employees hired after July 1, 2012, with less than twenty years of sworn service
Fire:
o $1,005 per month for employees hired before July 1, 2012, with five years of sworn service o EMHCA minimum amount ($143 and $149 per month in calendar years 2021 and 2022, respectively) for employees hired after July 1, 2012
71 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
17) OTHER POST EMPLOYMENT BENEFITS - Continued
Miscellaneous:
o PEMHCA minimum amount ($143 and $149 per month in calendar years 2021 and 2022, respectively).
Life Insurance - Eligible retirees, in accordance with various labor agreements, receive life insurance benefits from the City as follows:
$500 Confidential/Exempt, General, Maintenance and Non-Sworn Safety bargaining units $10,000 Executive Management, Mid-Management, Police Management (retired after September 1, 2006), Fire Management and Fire bargaining units
$10,500 Police bargaining unit
Employees Covered by Benefit Terms - As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
Contributions - The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and bargaining unit requirements is based on a pay-as-you-go basis (i.e. as medical insurance premiums become due). For fiscal year ended June 30, 2022, the City contributed $2,410,187 to the plan, including $2,018,187, for current premiums (100% of total premiums), and $392,000 of implied subsidy premiums.
Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2021 and the total OPEB liability determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions:
Discount Rate - The discount rate used to measure the total OPEB liability was 2.16% at June 30, 2021.
Active Employees 279
Inactive employees entitled to, but not yet receiving benefits 175 Retirees or spouses of retirees currently receiving benefits 261 Total 715
Valuation Date June 30, 2021
Actuarial Cost Method Entry Age Actuarial Cost
Mortality CalPERS 2000 - 2019 Experience Study
Health Care Trend Rate Non-Medicare - 6.5% for 2023, 3.75% ultimate Medicare - 5.65% for 2023, 3.75% ultimate
PEMHCA Minimum Increase 4.0% Annually
Inflation Rate 2.50%
Salary Changes 2.75%
Discount Rate 2.16% at June 30, 2021
2.21% at June 30, 2020
72 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
17) OTHER POST EMPLOYMENT BENEFITS – Continued
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:
Sensitivity of the Total OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the total OPEB liability of the District, as well as what the District’s Total OPEB would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
OPEB Expense and Recognition of Deferred Outflows/Inflows of Resources Related to OPEB The Plan Fiduciary Net Position was $0 at the June 30, 2021 measurement date, as the City is not prefunding with an OPEB trust. The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The net difference between projected and actual earnings on OPEB plan investments is amortized using the straight-line method over 5 years, while all other amounts are amortized over the expected average remaining service lifetime (EARSL) of plan participants, which was 5.1 years as of the 2019 valuation date.
Total OPEB
Liability (TOL)
Balance at June 30, 2021 (2020 Measurement Date) 76,070,626 $ Changes in the year:
Service cost 2,306,792
Interest on the total OPEB liability 1,704,367
Differences between expected and actual experience (8,698,716) Changes of assumptions (3,773,434)
Benefit payments, including refunds (2,513,526)
Net changes (10,974,517)
Balance at June 30, 2022 (2021 Measurement Date) $ 65,096,109 Discount Rate Valuation Discount Rate
1% Lower Discount Rate 1% Higher
Total OPEB liability (asset) 76,114,403 $ 65, $ 56, 096,109 $ 337,847 Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Total OPEB liability (asset) 61,656,700 $ $ 65,096,109 $ 68,610,897 73 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
17) OTHER POST EMPLOYMENT BENEFITS – Continued
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2022, the City recognized OPEB expense of $2,741,166. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
The $2,410,187 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ended June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:
18) COMMITMENTS AND CONTINGENCIES
A) In 1989, in order to assist in the expansion of the Fashion Plaza shopping center, the City enacted an ordinance to allow the Redevelopment Agency of the City of West Covina (the predecessor to the West Covina Community Development Commission) to receive the sales tax generated as a result of the expansion project. At the same time, the City enacted an ordinance providing a credit for sales tax payable by the developer in the amount equal to the sales tax due to the redevelopment agency. These sales tax ordinances and related agreements between the City and the Agency essentially transferred the sales tax increment due to the Fashion Plaza expansion project from the City to the Agency.
B) On July 25, 2005, the Board of Directors of the former West Covina Community Development Commission adopted Resolution No. 2005-50. By this resolution, the Board of Directors authorized the Commission to reimburse the City of West Covina over a period of 17 years for the sales tax revenue that had essentially been shifted from the City to the Agency. These budgeted interfund transfers between the primary government of the City of West Covina and the former Community Development Commission will be recorded in the fiscal year that they result in a flow of current financial resources, as required by the measurement focus prescribed for governmental funds. As a result of the dissolution of the Redevelopment Agency, the Department of Finance has deemed this agreement as an unenforceable obligation.
Deferred Deferred
Outflows Inflows
OPEB Contributions Subsequent to the Measurement Date 2,410,187 $ - $ Changes of Assumptions 9,551,916 4, 773,331
Net differences between expected
and actual experience - 7, 749,032
Total 11,962,103 $ 12,522,363 $
Year Ending
June 30,
2023 (1,033,944) $
2024 24,194
2025 267,942
2026 (2,228,639)
2027 -
Thereafter -
74 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
19) SUCCESSOR AGENCY DISCLOSURES
The assets and liabilities of the Commission’s former non-housing redevelopment activities were transferred to the City in its fiduciary capacity as the Successor Agency to the Redevelopment Agency of the City of West Covina on February 1, 2012, as a result of the dissolution of California redevelopment agencies. These assets and liabilities and any activities related to them are reported in the City’s fiduciary private-purpose trust fund financial statements. Disclosures related to these assets and liabilities are as follows:
Assessment Receivable
In connection with the Commission's issuance of its $51,220,000 1996 Special Tax Refunding Bonds, $32,520,000 in assessments receivable was recorded. The assessment is an annual special tax levied on the Community Facilities District No.1989-1 in an amount sufficient to ensure payment of the debt service on the 1996 Special Tax Refunding Bonds. This special tax supplements sales and property tax increment revenues that also support the debt service on the bonds. The assessments receivable outstanding as of June 30, 2022 was $4,990,000.
Due from the City of West Covina
As part of the dissolution process, AB1484 required the Successor Agency to have due diligence reviews of both the low and moderate-income housing funds and all other funds to be completed by October 15, 2012, and January 15, 2013, to compute the funds (cash) which were not needed by the Successor Agency to be retained to pay for existing enforceable obligations. The Successor Agency remitted $1,891,166 to the County Auditor-Controller (CAC) on December 19, 2012, for the low and moderate-income housing funds due diligence review.
The due diligence review for all other funds was finalized with the final letter of determination issued by the DOF on April 24, 2013. The DOF determined that the principal and interest payments made by the former Community Development Commission totaling $12,205,531 on various loans from the City of West Covina for the period January 1, 2011, to June 30, 2012, were on loans not made within the first two years of the formation of the former redevelopment agency. The DOF ordered the Successor Agency to remit $11,578,351 to the CAC within five days from the date of the letter.
City management, in consultation with its legal counsel, did not agree with the DOF’s decision and filed a lawsuit to contest the decision. The City also did not remit the payments that were disallowed to the CAC. In December 2015, the City entered into a settlement agreement, which requires the City to repay the $11,578,351 over a period of 20 years. See additional details on the long-term payable in Note 8. As the City repays the Successor Agency, the Successor Agency will remit the amounts collected to the CAC. The City reported a long-term liability of $7,525,925 (reported as part of notes payable) in the governmental activities and a receivable of $7,525,925 in the Successor Agency related to the DOF’s determination at June 30, 2022.
Land Held for Resale
Land held for resale is valued at the lower of cost or the sales price per contract with the developer. The land held for resale at June 30, 2022 was comprised of BKK Project in the amount of $54,279.
75 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
19) SUCCESSOR AGENCY DISCLOSURES – Continued
Long-Term Liabilities
Changes in long-term liabilities for the Successor Agency are as follows:
1996 Special Tax Bonds
In 1996, the Community Development Commission issued $51,220,000 of Special Tax Refunding Bonds comprised of $9,980,000 of serial bonds and $41,240,000 of term bonds to finance public parking facilities, street and other improvements located in or adjacent to the Community Development Commission Community Facilities District. The serial bonds matured during the fiscal year ended June 30, 2007. The term bonds bear interest at a rate from 5.75% to 6.0% payable semiannually and are due September 1, 2022. The term bonds are not subject to optional redemption; mandatory redemption begins September 1, 2007, then annually thereafter through September 1, 2022. Interest is payable semiannually on March 1 and September 1 of each year. The bonds are secured by and payable from a portion of the revenues derived from an annual special tax to be levied against all taxable real property within the Special Assessment District. In addition, the Commission has pledged certain other incremental revenues generated within the District consisting of property taxes and sales taxes. In addition, the reserve requirement of $5,002,670 was fully funded at June 30, 2022. There was a bond call on March 1, 2016, for $425,000. The outstanding principal balance of the bonds at June 30, 2022 was $4,905,000.
The future debt service requirements for the bonds are as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
1996 Special Tax Bonds $ 8,960,000 $ (4,055,000) - $ $ 4,905,000 $ 4,905,000 Tax Allocation Bonds:
Series 2017, Refunding 8,450,000 (1,615,000) - 6,835,000 1,425,000 Premium 194,673 (14,975) - 179,698 14,975
Developer Agreement Payable 80,253,948 8,342,700 88,596,648 - - Total $ 97,858,621 $ 8,342,700 $ (5,684,975) $ 100,516,346 $ 6,344,975 Fiscal Year Ending
June 30, Principal Interest Total
2023 4,905,000 $ $ 5, 147,150 $ 052,150
Totals $ 4,905,000 $ 147,150 $ 5,052,150
76 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
19) SUCCESSOR AGENCY DISCLOSURES – Continued
2017 Tax Allocation Revenue Refunding Bonds
On February 14, 2017, the Successor Agency issued Tax Allocation Revenue Refunding bonds, Series 2017A (Tax-Exempt) and 2017B (Federally Taxable). These bonds refinanced the 1998 Housing Set-Aside Tax Allocation Bonds Series A & B, the 2001 Housing Set-Aside Tax Allocation Revenue Bonds, the 2002 Tax Allocation Refunding Bonds and the 1999 Taxable Variable Rate Demand Tax Allocation Bonds. The bonds are payable from and secured solely from the Trust Estate, which will consist primarily of principal and interest payments on the Local Obligations to be purchased by the Authority as set forth in the Agency Indenture. The interest on the Series A bonds is payable semiannually on September 1 and March 1 of each year at interest rates ranging from 2% to 5%. The principal of the Series A bonds is due annually throughout 2026, in amounts ranging from $400,000 to $670,000. The interest on the Series B bonds is payable semiannually on September 1 and March 1 of each year at interest rates ranging from 1% to 3.75%. The principal of the Series B bonds is due annually throughout 2032, in amounts ranging from $145,000 to $1,215,000. The required reserve of $1,537,074 at June 30, 2022 was fully funded. The principal balance of outstanding bonds at June 30, 2022 was $6,835,000.
The future debt service requirements for the bonds are as follows:
Developer Agreement Payable
On June 26, 1989, the Commission entered into an agreement with a developer to share certain future tax revenues generated by the Community Facilities District. Since 1992, the developer's share of revenues totaled $55,372,039, the unpaid balance accrues interest at a rate of 10%. The Commission has made payments to the developer totaling $21,678,037. The balance outstanding at June 30, 2022 was $88,596,648. The Developer Advances are repaid by the Commission only from available funds in the Repayment Fund. The Repayment Fund is funded in any year the total of the Minimum Special, Tax and Agency Contributions exceeds the annual debt service on the Public Financing of the 1996 Special Tax Refunding Bonds. The Agency Contributions terminate once the outstanding principal and accrued interest on these bonds are paid in full. .
Fiscal Year Ending
June 30, Principal Interest Total
2023 1,425,000 $ $ 1, 205,613 $ 630,613
2024 1,255,000 1, 160,406 415,406
2025 1,290,000 1, 117,281 407,281
2026 1,200,000 78,007 1, 278,007
2027 145,000 58,409 203,409
2028 415,000 48,700 463,700
2029 425,000 33,469 458,469
2030 435,000 17,344 452,344
2031 150,000 6,375 156,375
2032 95,000 1,781 96,781
Totals 6,835,000 $ $ 7, 727,385 $ 562,385
77 City of West Covina
Notes to Financial Statements
Year Ended June 30, 2022
20) LEASES
Lease Receivable - In prior fiscal years, the City entered into various land lease agreements with third parties to lease pieces of land owned by the City. The initial lease terms ranged from 5 to 30 years. The City currently receives monthly payments from all leases of $42,064. The City recognized $424,909 in lease revenue and $83,299 in interest revenue during the current fiscal year related to the various leases. As of June 30, 2022, the City’s receivable for lease payments was $7,257,992. Also, the City has a deferred inflow of resources associated with leases that will be recognized as revenue over the lease terms. As of June 30, 2022, the balance of the deferred inflow of resources was $7,257,992.
21) IMPLEMENTATION OF GASB PRONOUNCEMENTS
The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:
GASB 96 – Subscription-Based Information Technology Arrangements: The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2023.
78 REQUIRED SUPPLEMENTARY INFORMATION
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 52,551,900 $ 63,065,320 $ 64,247,740 $ 1,182,420 $ Licenses and Permits 1,417,400 2,599,197 2,780,660 181,463 Fines and Forfeitures 528,000 528,000 508,463 (19,537)
Investment Income 458,900 458,900 (1,858,653) (2,317,553) Rental Income 1,166,100 1,336,090 1,241,134 (94,956)
Revenue from Other Agencies 3,400,800 2,396,400 2,323,396 (73,004) Charges for Services 5,206,600 9,035,580 9,574,520 538,940 Other Revenues 1,529,500 2,158,500 2,201,315 42,815
Total Revenues 66,259,200 81,577,987 81,018,575 (559,412)
EXPENDITURES
Current:
General Government 4,152,500 6,243,200 4,955,642 1,287,558 Public Safety 41,247,600 48,795,512 48,396,731 398,781
Public Works 4,367,200 6,482,570 6,188,867 293,703
Community Services 2,455,300 2,560,380 1,932,175 628,205 Community Development 385,500 527,350 446,667 80,683
Total Expenditures 52,608,100 64,609,012 61,920,082 2,688,930 Excess (Deficiency) of Revenues
over Expenditures 13,651,100 16,968,975 19,098,493 2,129,518
OTHER FINANCING SOURCES (USES)
Transfers In 131,100 131,100 5,816 (125,284)
Transfers Out (13,782,200) (20,437,607) (20,433,506) 4,101 Total Other Financing Sources (Uses) (13,651,100) (20,306,507) (20,427,690) (121,183) Net Change in Fund Balances - (3,337,532) (1,329,197) 2,008,335 Fund Balances, Beginning 25,488,077 25,488,077 25,488,077 - Fund Balances, Ending 25,488,077 $ 22,150,545 $ 24,158,880 $ 2,008,335 $ City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund
Year Ended June 30, 2022
Budgeted Amounts
79 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment Income 42,000 $ 42,000 $ 335,320 $ 293,320 $ Other Revenues - - 20,100 20,100
Total Revenues 42,000 42,000 355,420 313,420
EXPENDITURES
Current:
Public Safety 218,600 253,600 208,843 44,757
Community Development 949,400 949,400 676,245 273,155
Total Expenditures 1,168,000 1,203,000 885,088 317,912
Excess (Deficiency) of Revenues
over Expenditures (1,126,000) (1,161,000) (529,668) 631,332
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - (33,000) (33,000) -
Total Other Financing Sources (Uses) - (33,000) (33,000) - Net Change in Fund Balance (1,126,000) (1,194,000) (562,668) 631,332 Fund Balance, Beginning 24,008,323 24,008,323 24,008,323 - Fund Balance, Ending $ 22,882,323 $ 22,814,323 $ 23,445,655 $ 631,332 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - West Covina Housing Authority Special Revenue Fund Year Ended June 30, 2022
Budgeted Amounts
80 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes 2,730,100 $ 2,730,100 $ 2,155,426 $ (574,674) $
Investment Income 15,000 15,000 16,677 1,677
Revenue from Other Agencies 2,113,100 2,113,100 2,488,293 375,193 Charges for Services - - 592 592
Total Revenues 4,858,200 4,858,200 4,660,988 (197,212)
EXPENDITURES
Current:
General Government 3,500 3,500 3,000 500
Public Works 4,065,500 5,154,683 4,355,822 798,861
Total Expenditures 4,069,000 5,158,183 4,358,822 799,361 Excess (Deficiency) of Revenues
over Expenditures 789,200 (299,983) 302,166 602,149
OTHER FINANCING SOURCES (USES)
Transfers In 567,200 567,200 567,148 (52)
Transfers Out (100,000) (100,000) (28,146) 71,854
Total Other Financing Sources (Uses) 467,200 467,200 539,002 71,802 Net Change in Fund Balance 1,256,400 167,217 841,168 673,951 Fund Balance, Beginning 5,725,916 5,725,916 5,725,916 - Fund Balance, Ending $ 6,982,316 $ 5,893,133 $ 6,567,084 $ 673,951 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - State Gas Tax Special Revenue Fund
Year Ended June 30, 2022
Budgeted Amounts
81 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Revenue from Other Agencies 10,000,000 $ 10,000,000 $ 9,197,139 $ (802,861) $ Total Revenues 10,000,000 10,000,000 9,197,139 (802,861)
EXPENDITURES
Current:
Public Safety 466,453 466,453 466,453 -
Public Works 19,103,547 19,103,547 8,724,900 10,378,647 Total Expenditures 19,570,000 19,570,000 9,191,353 10,378,647 Excess (Deficiency) of Revenues
over Expenditures (9,570,000) (9,570,000) 5,786 9,575,786
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - (5,786) (5,786)
Total Other Financing Sources (Uses) - - (5,786) (5,786) Net Change in Fund Balance (9,570,000) (9,570,000) 9,570,000 - Fund Balance, Beginning - - - -
Fund Balance, Ending $ (9,570,000) $ (9,570,000) $ 9,570,000 - $ City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - ARPA Special Revenue Fund
Year Ended June 30, 2022
Budgeted Amounts
82 City of West Covina
Notes to Required Supplementary Information
Year Ended June 30, 2022
BUDGETS AND BUDGETARY ACCOUNTING
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for governmental funds. The City’s budget ordinance requires that in June of each year the City Manager to the City Council for the fiscal year commencing the following July 1. As modified during public study sessions, the preliminary budget becomes the proposed budget. Following public hearings on the proposed budget, the final annual budget is adopted by the City Council in June of the fiscal year. After adoption of the final budget, transfers of appropriations within the general fund departments may be done by the City Manager. Budget transfers within a department/fund may be done by department heads. Budget modifications between funds and increases or decreases to a fund’s overall budget must be approved by the City Council. Numerous properly authorized amendments are made during the fiscal year.
Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting (e.g. purchase orders) is employed by the City.
83 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
CalPERS Pension Plan - Miscellaneous
Total Pension Liability 2021 2020 2019 2018
Service cost 1,148,088 $ 1,230,251 $ 1,488,940 $ 1,598,999 $ Interest on total pension liability 11,357,041 11,161,901 11,031,185 10,735,301 Changes in assumptions - - - ( 792,110)
Differences between expected and actual experience 605,918 (956,094) 1,166,025 884,485 Benefit payments, including refunds (10,630,997) (9,824,549) (9,388,384) (9,225,744) Net change in total pension liability 2,480,050 1,611,509 4,297,766 3,200,931 Total pension liability - beginning 162,975,272 161,363,763 157,065,997 153,865,066 Total pension liability - ending (a) $ 165,455,322 $ 162,975,272 $ 161,363,763 $ 157,065,997 Plan Fiduciary Net Position
Contributions - employer $ 41,343,222 $ 3,588,307 $ 3,041,783 $ 2,610,696 Contributions - employee 489,857 658,924 597,814 785,970 Net investment income 33,695,359 5,681,537 7,327,093 9,216,240 Benefit payments (10,630,997) (9,824,549) (9,388,384) (9,225,744) Net Plan to Plan Resource Movement - - - (266)
Administrative/Other Expense (115,152) (162,590) (80,969) (172,889) Other Miscellaneous Income/Expense - - ( - 328,320)
Net change in plan fiduciary net position 64,782,289 (58,371) 1,497,337 2,885,687 Plan fiduciary net position - beginning 115,273,883 115,332,254 113,834,917 110,949,230 Plan fiduciary net position - ending (b) $ 180,056,172 $ 115,273,883 $ 115,332,254 $ 113,834,917 Net pension liability - ending (a) - (b) $ (14,600,850) $ 47,701,389 $ 46,031,509 $ 43,231,080 Plan fiduciary net position as a percentage
of the total pension liability 108.82% 70.73% 71.47% 72.48% Covered payroll $ 6,699,270 $ 7,843,755 $ 8,498,816 $ 12,173,646 Net pension liability as percentage of
covered payroll -217.95% 608.14% 541.62% 355.12%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Measurement Period
84 2017 2016 2015 2014
$ 1,568,756 $ 1,395,164 $ 1,454,757 $ 1,653,769
10,499,411 10,423,152 10,180,561 9,849,865
8,138,458 (2, - 336,836) -
(1,086,666) (568,485) (134,455) -
(8,527,256) (8,197,448) (7,534,397) (6,835,867)
10,592,703 3,052,383 1,629,630 4,667,767
143,272,363 140,219,980 138,590,350 133,922,583
$ 153,865,066 $ 143,272,363 $ 140,219,980 $ 138,590,350 $ 2,449,585 $ 1,871,710 $ 1,507,469 $ 1,441,234
788,064 819,011 714,712 921,495
11,531,815 590,110 2,500,142 17,189,513
(8,527,256) (8,197,448) (7,534,397) (6,835,867)
- (4,880) 307 -
(154,821) (66,948) (123,626) -
- - - -
6,087,387 (4,988,445) (2,935,393) 12,716,375
104,861,843 109,850,288 112,785,681 100,069,306
$ 110,949,230 $ 104,861,843 $ 109,850,288 $ 112,785,681 $ 42,915,836 $ 38,410,520 $ 30,369,692 $ 25,804,669
72.11% 73.19% 78.34% 81.38%
$ 14,062,225 $ 9,349,710 $ 9,381,292 $ 10,025,879
305.19% 410.82% 323.73% 257.38%
Mesaurement Period
85 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
CalPERS Pension Plan - Safety
Total Pension Liability 2021 2020 2019 2018
Service cost 5,563,564 $ 5,180,535 $ 5,573,847 $ 5,300,363 $ Interest on total pension liability 28,585,424 27,556,923 26,959,893 26,141,448 Changes in assumptions - - - (1,644,342)
Differences between expected and actual experience 4,243,730 (2,269,271) 706,038 2,470,547 Benefit payments, including refunds (23,371,783) (22,204,388) (21,231,071) (20,444,515) Net change in total pension liability 15,020,935 8,263,799 12,008,707 11,823,501 Total pension liability - beginning 404,456,518 396,192,719 384,184,012 372,360,511 Total pension liability - ending (a) 419,477,453 $ 404,456,518 $ 396,192,719 $ 384,184,012 $ Plan Fiduciary Net Position
Contributions - employer 149,228,549 $ 12,592,111 $ 11,176,490 $ 10,515,780 $ Contributions - employee 2,010,282 1,806,665 1,731,882 1,830,019 Net investment income 87,171,072 12,466,983 15,909,762 19,582,552 Benefit payments (23,371,783) (22,204,388) (21,231,071) (20,444,515) Net Plan to Plan Resource Movement - - - (568)
Administrative/Other Expense (255,545) (354,567) (174,192) (364,120) Other Miscellaneous Income/Expense - - 568 (691,471)
Net change in plan fiduciary net position 214,782,575 4,306,804 7,413,439 10,427,677 Plan fiduciary net position - beginning 255,816,761 251,509,957 244,096,518 233,668,841 Plan fiduciary net position - ending (b) 470,599,336 $ 255,816,761 $ 251,509,957 $ 244,096,518 $ Net pension liability - ending (a) - (b) (51,121,883) $ 148,639,757 $ 144,682,762 $ 140,087,494 $ Plan fiduciary net position as a percentage
of the total pension liability 112.19% 63.25% 63.48% 63.54% Covered payroll $ 17,133,244 $ 16,447,485 $ 16,283,859 $ 14,051,195 Net pension liability as percentage of
covered payroll -298.38% 903.72% 888.50% 996.98%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2018 valuation date. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Measurement Period
86 2017 2016 2015 2014
$ 5,376,792 $ 4,729,431 $ 4,604,800 $ 4,824,545
25,330,388 24,899,740 24,117,128 23,426,151
21,000,606 (5,858,071) - -
(2,764,123) (145,882) (1,760,971) -
(19,858,900) (18,951,025) (17,865,208) (17,362,607)
29,084,763 10,532,264 3,237,678 10,888,089
343,275,748 332,743,484 329,505,806 318,617,717
$ 372,360,511 $ 343,275,748 $ 332,743,484 $ 329,505,806 $ 10,058,079 $ 8,387,165 $ 7,339,064 $ 6,403,118
1,818,024 1,660,160 1,628,630 2,416,548
23,916,665 1,179,228 5,057,426 34,775,710
(19,858,900) (18,951,025) (17,865,208) (17,362,607)
- 4,880 10,338 -
(321,946) (137,683) (254,287) -
- - - -
15,611,922 (7,857,275) (4,084,037) 26,232,769
218,056,919 225,914,194 229,998,231 203,765,462
$ 233,668,841 $ 218,056,919 $ 225,914,194 $ 229,998,231 $ 138,691,670 $ 125,218,829 $ 106,829,290 $ 99,507,575
62.75% 63.52% 67.89% 69.80%
$ 17,084,933 $ 17,288,458 $ 16,517,686 $ 16,974,682
811.78% 724.29% 646.76% 586.21%
Measurement Period
87 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
PARS Pension Plan - EPMC
Total Pension Liability 2021 2020 2019 2018
Service cost 26,943 $ 30,564 $ 29,665 $ 29,701 $
Interest on total pension liability 31,913 41,806 46,211 46,463 Changes in assumptions 38,703 146,898 90,640 10,475
Differences between expected and actual experience 10,382 - 45,697 - Benefit payments, including refunds (81,760) (103,008) (80,968) (56,554) Net change in total pension liability 26,181 116,260 131,245 30,085 Total pension liability - beginning 1,209,162 1,092,902 961,657 931,572 Total pension liability - ending (a) $ 1,235,343 $ 1,209,162 $ 1,092,902 $ 961,657 Plan Fiduciary Net Position
Contributions - employer $ 52,666 $ 56,957 $ 62,350 $ 60,056 Contributions - employee - - - -
Net investment income 18,413 2,908 6,567 8,234
Benefit payments (81,760) (103,008) (80,968) (56,554)
Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (6,231) (10,788) (769) (775) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position (16,912) (53,931) (12,820) 10,961 Plan fiduciary net position - beginning 87,925 141,856 154,676 143,715 Plan fiduciary net position - ending (b) $ 71,013 $ 87,925 $ 141,856 $ 154,676 Net pension liability - ending (a) - (b) $ 1,164,330 $ 1,121,237 $ 951,046 $ 806,981 Plan fiduciary net position as a percentage
of the total pension liability 5.75% 7.27% 12.98% 16.08% Covered Employee payroll $ 7,202,240 $ 10,222,450 $ 14,447,921 $ 15,855,534 Net pension liability as percentage of
covered employee payroll 16.17% 10.97% 6.58% 5.09%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes in Assumptions: In 2021, the discount rate was updated to 2.31. In 2020, the discount rate was updated to 2.67 percent.
In 2019, the discount rate was updated to 3.90% and the mortality improvement scale was updated to Scale MP- 2019. In 2018, the discount rate used to measure the total pension liability was 4.86 percent. In 2017, amounts reported reflect an adjustment of the discount rate from 3.90 percent to 4.98 percent. In 2016, amounts reported reflect an adjustment of the discount rate from
3.50 percent to 3.90 percent. In 2015, amounts reported reflect an adjustment of the discount rate from 4.80 percent to 3.50 percent. In 2014, amounts reported were based on the 4.80 percent discount rate.
Benefit Changes: None.
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Measurement Period
88 2017 2016 2015 2014
$ 35,733 $ 40,000 $ 36,000 $ 36,000
35,268 32,000 28,000 36,000
(85,060) (37,000) 200,000 -
98,508 - (72,000) -
(42,877) (91,000) (9,000) (64,000)
41,572 (56,000) 183,000 8,000
890,000 946,000 763,000 755,000
$ 931,572 $ 890,000 $ 946,000 $ 763,000
$ 61,019 $ 56,000 $ 56,000 $ 65,000
- - - -
10,029 (1,000) 3,000 12,000
(42,877) (91,000) (9,000) (64,000)
- - - -
(9,456) (1,000) (7,000) (3,000)
- - - -
18,715 (37,000) 43,000 10,000
125,000 162,000 119,000 109,000
$ 143,715 $ 125,000 $ 162,000 $ 119,000
$ 787,857 $ 765,000 $ 784,000 $ 644,000
15.43% 14.04% 17.12% 15.60%
n/a $ 13,388,000 n/a n/a
n/a 5.71% n/a n/a
Measurement Period
89 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net Pension
Liability and Related Ratios - Last 10 Years*
PARS Pension Plan - Executive Staff
Total Pension Liability 2021 2020 2019 2018
Service cost - $ 14,068 $ 11,963 $ 12,235 $
Interest on total pension liability 113,650 143,620 133,267 130,692 Changes in assumptions 81,046 879,137 281,983 (101,877) Differences between expected and actual experience 168,573 477,904 - - Benefit payments, including refunds (171,237) (155,804) (152,749) (139,056) Net change in total pension liability 192,032 881,021 752,368 (98,006) Total pension liability - beginning 4,901,327 4,020,306 3,267,938 3,365,944 Total pension liability - ending (a) $ 5,093,359 $ 4,901,327 $ 4,020,306 $ 3,267,938 Plan Fiduciary Net Position
Contributions - employer $ 79,364 $ 77,814 $ 78,102 $ 74,100 Contributions - employee - - - -
Net investment income 96,424 15,031 31,817 36,931
Benefit payments (171,237) (155,804) (152,749) (139,056) Net Plan to Plan Resource Movement - - - -
Administrative/Other Expense (5,903) (9,475) (3,109) (3,379) Other Miscellaneous Income/Expense - - - -
Net change in plan fiduciary net position (1,352) (72,434) (45,939) (31,404) Plan fiduciary net position - beginning 461,803 534,237 580,176 611,580 Plan fiduciary net position - ending (b) $ 460,451 $ 461,803 $ 534,237 $ 580,176 Net pension liability - ending (a) - (b) $ 4,632,908 $ 4,439,524 $ 3,486,069 $ 2,687,762 Plan fiduciary net position as a percentage
of the total pension liability 9.04% 9.42% 13.29% 17.75% Covered Employee payroll $ 269,287 $ 219,555 $ 179,572 $ 172,512 Net pension liability as percentage of
covered employee payroll 1720.44% 2022.06% 1941.32% 1558.01% Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Changes in Assumptions: In 2021, the discount rate was updated to 2.23% and the mortality improvement scale was updated to Scale MP-2021. In 2020, the discount rate was updated to 2.36%. In 2019, the discount rate was updated to 3.63% and the mortality improvement scale was updated to Scale MP-2019. In 2018, the discount rate used to measure the total pension liability was 4.16 percent. In 2017, amounts reported reflect an adjustment of the discount rate from 6.25 percent to 3.95 percent. In 2016, amounts reported reflect an adjustment of the discount rate from 4.70 percent to 6.25 percent. In 2015, amounts reported reflect an adjustment of the discount rate from 5.55 percent to 4.70 percent. In 2014, amounts reported were based on the 5.55 percent discount rate.
Benefit Changes: None.
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Measurement Period
90 2017 2016 2015 2014
$ 20,388 $ 30,000 $ 116,000 $ 112,000
161,327 141,000 178,000 168,000
803,038 (455,000) 346,000 -
(111,492) (643,000) - -
(136,317) (137,000) (104,000) (82,000)
736,944 (421,000) (107,000) 198,000
2,629,000 3,050,000 3,157,000 2,959,000
$ 3,365,944 $ 2,629,000 $ 3,050,000 $ 3,157,000
$ 73,467 $ 78,000 $ 78,000 $ 59,000
- - - -
49,861 9,000 13,000 75,000
(136,317) (137,000) (104,000) (82,000)
- - - -
(8,431) (4,000) (6,000) (6,000)
- - - -
(21,420) (54,000) (19,000) 46,000
633,000 687,000 706,000 660,000
$ 611,580 $ 633,000 $ 687,000 $ 706,000
$ 2,754,364 $ 1,996,000 $ 2,363,000 $ 2,451,000
18.17% 24.08% 22.52% 22.36%
n/a $ 143,000 n/a n/a
n/a 1395.80% n/a n/a
Measurement Period
91 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan – Miscellaneous Plan
Schedule of Contributions – Last 10 Years*
Agent Multiple-employer Plan – Safety Plan
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 1,212,353 $ (1, $ 212,353) $ 7, - $ 100,111 17.08% 2021 3,887,907 (41,343,286) (37,455,379) 6,699,270 617.13% 2020 3,588,349 (3,588,349) 7, - 843,755 45.75%
2019 3,041,539 (3,041,539) 8, - 498,816 35.79%
2018 2,610,696 (2,610,696) 12, - 173,646 21.45%
2017 2,449,585 (2,449,585) 14, - 062,225 17.42%
2016 1,871,710 (1,871,710) 9, - 349,710 20.02%
2015 1,507,469 (1,507,469) 9, - 381,292 16.07%
Contributions in
Relation to the Contributions
Contractually Actuarially Contribution as a % of
Required Determined Deficiency/ Covered Covered
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 4,920,803 $ (4, $ 920,803) $ 18, - $ 840,380 26.12% 2021 14,008,612 (149,096,249) (135,087,637) 17,133,244 81.76% 2020 12,592,730 (12,592,730) 16, - 447,485 76.56%
2019 11,174,096 (11,174,096) 16, - 289,859 68.60%
2018 10,515,780 (10,515,780) 14, - 051,195 74.84%
2017 10,058,079 (10,058,079) 17, - 084,933 58.87%
2016 8,387,165 (8,387,165) 17, - 288,458 48.51%
2015 7,339,064 (7,339,064) 16, - 517,686 44.43%
92 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
* Pension schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
Contributions in Contributions
Relation to the as a % of
Contractually Actuarially Contribution Covered Covered
Required Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 $ 173,000 $ (51,428) $ 121,572 $ 6,238,365 0.82%
2021 173,000 (52,666) 120,334 7,202,240 0.73%
2020 134,000 (56,957) 77,043 10,222,450 0.56%
2019 134,000 (62,350) 71,650 14,447,921 0.43%
2018 104,000 (60,056) 43,944 n/a n/a
2017 105,000 (66,000) 39,000 n/a n/a
2016 105,000 (59,000) 46,000 13,737,000 0.43%
2015 82,000 (56,000) 26,000 n/a n/a
Schedule of Plan Contributions
Last 10 Years*
PARS Pension Plan - EPMC
Contributions in Contributions
Relation to the as a % of
Contractually Actuarially Contribution Covered Covered
Required Determined Deficiency/ Employee Employee
Fiscal Year Contributions Contributions (Excess) Payroll Payroll 2022 $ 487,000 $ (80,949) $ 406,051 $ 202,292 40.02%
2021 488,000 (79,364) 408,636 269,281 29.47%
2020 313,000 (77,814) 235,186 219,555 35.44%
2019 314,000 (78,102) 235,898 179,572 43.49%
2018 278,000 (74,100) 203,900 n/a n/a
2017 279,000 (73,000) 206,000 96,000 76.04%
2016 439,000 (78,000) 361,000 n/a n/a
2015 439,000 (78,000) 361,000 n/a n/a
PARS Pension Plan - Executive Staff
Last 10 Years*
Schedule of Plan Contributions
93 City of West Covina
Required Supplementary Information
Year Ended June 30, 2022
Schedule of Changes in the Net OPEB Liability and Related Ratios for the Measurement Periods Ended June 30
Last 10 Years*
* OPEB schedules are intended to show information for ten years, additional years’ information will be displayed as it becomes available.
2021 2020 2019 2018 2017
Total OPEB Liability
Service cost $ 2,306,792 $ 1,575,501 $ 1,545,500 $ 1,619,250 $ 1,913,541 Interest on total OPEB liability 1,704,367 2,156,480 2,285,257 2,158,673 1,889,517 Changes in assumptions (3,773,434) 13,555,256 2,887,380 (2,524,608) (7,040,369) Changes in benefits - - - - -
Differences between expected and actual experience (8,698,716) (1,738,131) - - - Benefit payments, including refunds (2,513,526) (2,509,638) (2,384,056) (2,470,254) (2,467,893) Net change in total OPEB liability (10,974,517) 14,777,599 2,595,950 (1,216,939) (5,705,204) Total OPEB liability - beginning 76,070,626 61,293,027 58,697,077 59,914,016 65,619,220 Total OPEB liability - ending (a) $ 65,096,109 $ 76,070,626 $ 61,293,027 $ 58,697,077 $ 59,914,016 Covered - employee payroll 33,956,907 33,069,467 26,672,215 28,239,505 26,527,000 Total OPEB liability as a percentage of
covered-employee payroll 191.70% 230.03% 229.80% 207.85% 225.86% Measurement Period
94 SUPPLEMENTARY INFORMATION
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 60,000 $ 74,288 $ 14,288 $
Revenue from Other Agencies 1,389,400 1,389,327 (73)
Total Revenues 1,449,400 1,463,615 14,215
EXPENDITURES
Current:
General Government 13,500 13,046 454
Public Safety - - -
Debt Service:
Principal 5,869,381 5,869,299 82
Interest 9,063,731 9,063,717 14
Total Expenditures 14,946,612 14,946,062 550
Excess (Deficiency) of Revenues
over Expenditures (13,497,212) (13,482,447) 14,765
OTHER FINANCING SOURCES (USES)
Transfers In 13,530,530 13,548,812 (18,282)
Transfers Out - - -
Total Other Financing
Sources (Uses) 13,548,812 13,530,530 (18,282)
Net Change in Fund Balances 51,600 48,083 (3,517)
Fund Balance, Beginning 19,899,380 19,899,380
Fund Balance, Ending 19,950,98 $ 0 $ 19,947,463 $ (3,517) City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Citywide Debt Service Fund
Year Ended June 30, 2022
95 OTHER GOVERNMENTAL FUNDS
City of West Covina
Other Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds
Drug Enforcement Rebate
This fund accounts for the City’s portion of revenue received from drug asset seizures. The revenue is used to enhance the police programs.
Air Quality Improvement
This fund accounts for the City’s portion of motor vehicle registration fees collected under AB 2766. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks and buses. Money is distributed to the cities based on population, and additional discretionary grants are made based on specific requests.
Proposition A
This fund accounts for the 0.5% sales tax collected in Los Angeles County which is used for transportation programs and projects.
Proposition C
This fund accounts for gasoline taxes which are restricted for transportation programs and projects.
Police Donations
This fund accounts for donations received and expenditures related to various police programs.
Transportation Development Act
This fund accounts for regional Transportation Development Act funds received from Los Angeles County which are used for local streets and roads.
AB939
This fund accounts for programs to reduce solid waste deposits in local landfills, pursuant to AB939.
Various Grants
This fund accounts for various Federal, State of California, and local grants that are restricted to expenditures for specific programs and projects.
Community Development Block Grant (CDBG)
This fund accounts for the activities of the Community Development Block Grant received from the U.S.
Department of Housing and Urban Development.
SAFER Grant
This fund accounts for personnel costs that are reimbursable through the Staffing for Adequate Fire and Emergency Response (SAFER) Grant.
Inmate Welfare
This fund accounts for any money, refund, rebate or commission received from a telephone call from inmates while incarcerated to meet the requirements of California Penal Code: Part 3; Title 4; Chapter 1; Section 4025.
The monies are to be expended for the benefit, education, and welfare of inmates confined within the jail. Any funds that are not needed for the welfare of the inmates may be expended for the maintenance of the jail facilities.
96 City of West Covina
Other Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds - Continued
Public Safety Augmentation
This fund accounts for sales tax revenue legally restricted for public safety. Revenue is used to augment police operations.
COPS/SLESA
This fund accounts for revenue from the State restricted for supplementing police operations.
Park CESF
This fund is to account for coronavirus emergency supplemental funding received and expenditures in preventing, preparing for, and responding to the event.
Maintenance District #1
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.
Maintenance District #2
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.
Coastal Sage Shrub
This community facilities district was formed to provide for the restoration and ongoing maintenance of sensitive environmental habitat within the development area of a former landfill, including habitat for endangered species such as the California gnatcatcher (Polioptila californica).
Maintenance District #4
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.
Maintenance District #6
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.
Maintenance District #7
The City levies special benefit assessments and property taxes upon property within defined districts. Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance.
Citywide Maintenance District
Revenue for the fund comes from annual special benefit assessments from property owners who benefit from covered improvements. This fund provides the majority of funding for the City’s street lighting system and street tree program.
97 City of West Covina
Other Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds - Continued
Sewer Maintenance
This fund supports the City’s street sweeping program and maintenance of the City’s sewer system. The City also provides services to the City of Covina through this fund.
Auto Plaza Improvement District
This fund is an assessment district supported by six of West Covina’s automobile dealers to fund the construction, maintenance and operations of a reader board adjacent to Interstate 10.
General Plan Update
This fund accounts for the General Plan and Zoning Code Update Surcharge which is designated to be used for future plan updates.
Measure W
This fund accounts for the special parcel tax on all property owners in Los Angeles County approved November 2018. This tax raises funds to pay for stormwater projects including the infrastructure and any associated programs to capture, treat and recycle rainwater.
Charter PEG
This fund accounts for monies received from the City’s cable television franchisee for a one-time litigation settlement and for cable-related capital expenditures.
Art in Public Places
This fund accounts for development fees paid in lieu of acquisition and installation of approved artwork in a development with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites.
West Covina Community Services Foundation
This fund accounts for activity of the West Covina Community Services Foundation, a 501(c) (3) nonprofit organization.
Measure R
This fund accounts for sales tax revenues collected in Los Angeles County to provide transportation related projects and programs.
Measure M
Under Measure M, the City receives a portion of a ½ cent sales tax levied in Los Angeles County to provide transportation related projects and programs. The City uses Measure M Funds for certain capital projects or transportation projects such as street rehabilitation and reconstruction, traffic monitoring systems, and congestion management and planning.
Measure A
Under Measure A, the City receives a portion of a 1.5 cent per square foot parcel tax levied in Los Angeles County to help fund new parks and maintain existing ones. The City uses Measure A Funds for certain capital projects related to parks, such as rebuilding restrooms, updating park parking lots, and the purchase of new playground equipment.
Community Corrections
This fund is a used to account for grant activity from the Board of State and Community Corrections.
98 City of West Covina
Other Governmental Funds
Year Ended June 30, 2022
Special Revenue Funds - Continued
Measure H
This funding accounts for funding received and expenditures related to prevent and combat homelessness.
CASP Training
This fund accounts for funding received and expenditure incurred to support jailer mental health awareness training programs.
Sportsplex
This fund accounts for activity at the West Covina Sportsplex, a recreation facility which amenities include softball fields, a pavilion, playgrounds, and restaurants.
Capital Projects Funds
City Capital Projects
This fund accounts for all capital expenditures not being accounted for in the capital projects described below or in other fund types.
Construction Tax
This fund accounts for monies received from developers based on the construction of dwelling units and used primarily to construct public domain assets.
Information Technology
The funds paid into this fund are to be used for information technology capital outlay projects.
Development Impact Fees
This fund accounts for fees received from residential developers to help fund the purchase/replacement of vehicles/equipment along with the repairs and improvements of city facilities.
Park Development
This fund accounts for park fees received from residential developers to be used for new park construction.
Future Street Improvements
This fund accounts for monies paid in-lieu of street rehabilitation improvements. 99 Drug Air
Enforcement Quality Proposition Proposition Police
Rebate Improvement A C Donations
ASSETS
Cash and Investments $ 6,041,205 $ 589,462 $ 3,080,146 $ 2,314,326 $ 35,652 Restricted Cash and Investments - - - - -
Receivables, net:
Accounts 23 - - - 100
Taxes - - - - -
Other - - - - -
Due from Other Agencies 34,729 - 29,670 - -
Prepaid Items - - - - -
Total Assets $ 6,041,228 $ 624,191 $ 3,080,146 $ 2,343,996 $ 35,752
LIABILITIES
Accounts Payable $ 106,837 $ 2,801,650 - $ $ 333,041 $ 2,576 Other Accrued Liabilities 2,178 - - 840 -
Due to Other Funds - - - - -
Advances from Other Funds - - - - -
Total Liabilities 109,015 2,801,650 - 333,881 2,576
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 34,729 - 29,670 - -
Total Deferred Inflows of Resources 34,729 - 29,670 - -
FUND BALANCE (DEFICITS)
Nonspendable - - - - -
Restricted 5,932,213 589,462 278,496 1,980,445 33,176
Assigned - - - - -
Unassigned - - - - -
Total Fund Balances (Deficits) 5,932,213 589,462 278,496 1,980,445 33,176 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 624,191 6,041,228 $ 3,080,146 $ 2,343,996 $ 35,752 $ Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds
June 30, 2022
100
Transportation Community Public
Development Various Development SAFER Inmate Safety
Act AB939 Grants Block Grant Grant Welfare Augmentation $ 1,001,032 10 $ $ 1,582,106 $ 3,835 $ - $ 9,989 $ 535,980 - - - 4,664 - - -
- 36,395 - - - - -
- - - - - 174,365 -
68,718 - - - - - -
- 725,959 - 261,875 - - -
- - - - - - -
$ 1,069,750 10 $ $ 2,344,460 $ 270,374 $ - $ 9,989 $ 710,345 $ - $ 2,301 $ 433,823 $ 255,292 $ - $ - $ -
- 500 194,380 24,627 - - -
- 483,755 - - - - -
- - - - - - -
- 2,801 1,111,958 279,919 - - -
- 608,647 - 75,394 - - -
- 608,647 - 75,394 - - -
- - - - - - -
1,066,949 10 623,855 - - 9,989 710,345
- - - - - - -
- - (84,939) - - - -
1,066,949 10 623,855 (84,939) - 9,989 710,345
$ 1,069,750 10 $ $ 2,344,460 $ 270,374 $ - $ 9,989 $ 710,345 Continued
Special Revenue
101
Park Maintenance Maintenance Coastal Sage
COPS/SLESA CESF District #1 District #2 Shrub
ASSETS
Cash and Investments 443,659 $ - $ 3,386,215 $ 871,214 $ 455,890 $ Restricted Cash and Investments - - - - -
Receivables, net:
Accounts - - - - -
Taxes - - 50,706 19,270 1,579
Other - - - - -
Due from Other Agencies 105,586 - - - -
Prepaid Items - - - - -
Total Assets 549,245 $ - $ 3,436,921 $ 890,484 $ 457,469 $
LIABILITIES
Accounts Payable $ 7,137 $ 49,689 - $ $ 6,338 $ 21,943
Other Accrued Liabilities 7,576 - 5,783 442 -
Due to Other Funds - - - - -
Advances from Other Funds - - - - -
Total Liabilities 14,713 55,472 - 6,780 21,943
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 105,586 - - - -
Total Deferred Inflows of Resources 105,586 - - - -
FUND BALANCE (DEFICITS)
Nonspendable - - - - -
Restricted 428,946 3,381,449 - 883,704 435,526
Assigned - - - - -
Unassigned - - - - -
Total Fund Balances (Deficits) 428,946 3,381,449 - 883,704 435,526 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 549,245 $ 3,436,921 - $ $ 890,484 $ 457,469 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2022
102
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Maintenance Sewer Improvement Plan District #4 District #6 District #7 District Maintenance District Update $ 2,353,806 $ 306,246 $ 408,040 $ 1,430,005 $ 11,270,583 $ 155,395 $ 743,183 - - - - - - -
- - - - - - -
21,370 2,600 4,246 53,275 179,744 - -
- - - - - - -
- - - - - - -
- - - - - - -
$ 2,375,176 $ 308,846 $ 412,286 $ 1,483,280 $ 11,450,327 $ 155,395 $ 743,183 $ 201,298 $ 31,650 $ 25,778 $ 187,040 $ 1,710,551 $ 5,366 $ - 818 193 193 879 159,361 - -
- - - - - - -
- - - - 225,826 - -
202,116 31,843 25,971 187,919 1,869,912 231,192 -
- - - - - - -
- - - - - - -
- - - - - - -
2,173,060 277,003 386,315 1,295,361 9,580,415 743,183 - - - - - - - -
- - - - (75,797) - -
2,173,060 277,003 386,315 1,295,361 9,580,415 (75,797) 743,183 $ 2,375,176 $ 308,846 $ 412,286 $ 1,483,280 $ 11,450,327 $ 155,395 $ 743,183 Continued
Special Revenue
103
Art in West Covina
Measure Charter Public Community Measure
W PEG Places Services Found. R
ASSETS
Cash and Investments 880,191 $ 12,964 $ 510,283 $ 232,488 $ 4,123,979 $ Restricted Cash and Investments - - - - -
Receivables, net:
Accounts - - - - -
Taxes - - - - -
Other - - - 70,015 -
Due from Other Agencies 1,353,210 - - - -
Prepaid Items - - - 11,989 -
Total Assets 2,233,401 $ 12,964 $ 510,283 $ 314,492 $ 4,123,979 $
LIABILITIES
Accounts Payable 16,752 $ - $ - $ 20,870 $ 83,388 $
Other Accrued Liabilities - - 4,000 - 5,600
Due to Other Funds - - - - -
Advances from Other Funds - - - - -
Total Liabilities 16,752 - 4,000 20,870 88,988
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 1,353,210 - - 2,952 -
Total Deferred Inflows of Resources 1,353,210 - - 2,952 -
FUND BALANCE (DEFICITS)
Nonspendable - - 11,989 - -
Restricted 863,439 12,964 506,283 278,681 4,034,991
Assigned - - - - -
Unassigned - - - - -
Total Fund Balances (Deficits) 863,439 12,964 506,283 290,670 4,034,991 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 2,233,401 $ 12,964 $ 510,283 $ 314,492 $ 4,123,979 Special Revenue
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2022
104
Capital
Projects
CASP
Measure Measure Community Measure Training
M A Corrections H Fund Sportsplex City
$ 5,772,416 $ - $ 1 $ 105,213 - $ $ 95,586 $ 7,565,373
- - - - - 533,544 -
- - 41,667 - - - -
- - - - - - -
- - 21,059 - 2,579 700 -
- - - - - - -
- - - - - - -
$ 5,772,416 $ - $ 1 $ 62,726 $ 107,792 $ 96,286 $ 8,098,917 $ 135,319 $ - $ 20,469 - $ $ 88,220 - $ $ 1,496,940
- - - - 12,195 - -
- - 37,769 - - - -
- - - - - - -
135,319 - 58,238 - - 100,415 1,496,940
- - - - - - -
- - - - - - -
- - - - - - -
5,637,097 - 1 4,488 107,792 - -
- - - - - 6,601,977 -
- - - - (4,129) - -
5,637,097 - 1 4,488 107,792 (4,129) 6,601,977
$ 5,772,416 $ - $ 1 $ 62,726 $ 107,792 $ 96,286 $ 8,098,917 Continued
Special Revenue
105
Construction Information Development Park
Tax Technology Impact Fees Development
ASSETS
Cash and Investments 253,487 $ 293,331 $ 582,732 $ 7,277,777 $ Restricted Cash and Investments - - - -
Receivables, net:
Accounts - - - -
Taxes - - - -
Other - - - -
Due from Other Agencies - - - -
Prepaid Items - - - -
Total Assets 253,487 $ 293,331 $ 582,732 $ 7,277,777 $
LIABILITIES
Accounts Payable $ - $ 3,230 $ 30,835 $ 113,834
Other Accrued Liabilities - - - -
Due to Other Funds - - - -
Advances from Other Funds - - - -
Total Liabilities - 3,230 30,835 113,834
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - -
Total Deferred Inflows of Resources - - - -
FUND BALANCE (DEFICITS)
Nonspendable - - - -
Restricted 253,487 290,101 551,897 7,163,943
Assigned - - - -
Unassigned - - - -
Total Fund Balances (Deficits) 253,487 290,101 551,897 7,163,943 Total Liabilities, Deferred Inflows
and Fund Balances (Deficits) $ 253,487 $ 293,331 $ 582,732 $ 7,277,777 Capital Projects
City of West Covina
Combining Balance Sheet
Non-major Governmental Funds - Continued
June 30, 2022
106
Capital
Projects
Future
Street
Improvements Total
$ 256,814 $ 64,980,614
538,208 -
78,185 -
507,155 -
163,071 -
2,511,029 -
11,989 -
$ 256,814 $ 68,790,251
$ 8,192,167 - $
419,565 -
521,524 -
225,826 -
9,359,082 -
2,210,188 -
2,210,188 -
11,989 -
256,814 50,771,880
6,601,977 -
(164,865) -
256,814 57,220,981
$ 256,814 $ 68,790,251
107
Drug Air
Enforcement Quality Proposition Proposition Police
Rebate Improvement A C Donations
REVENUES
Taxes $ - $ 2,676,794 - $ $ 2,233,746 $ -
Special Assessments - - - - -
Investment Income 15,062 1,335 5,497 5,230 92
Rental Income - - - - -
Revenue from Other Agencies 1,274,379 101,733 26,451 - - Charges for Services - - 19,668 - -
Other Revenues - - - - 2,950
Total Revenues 1,289,441 103,068 2,682,291 2,285,095 3,042
EXPENDITURES
Current:
General Government - 59,570 - - -
Public Safety 1,115,974 - - - 5,313
Public Works - 1,400 508,921 - -
Community Services - 2,842,893 - 1,323,353 -
Community Development - - 12,882 - -
Total Expenditures 1,115,974 1,400 2,902,463 1,845,156 5,313 Excess (Deficiency) of Revenues
Over Expenditures 173,467 101,668 (220,172) 439,939 (2,271)
OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances 173,467 101,668 (220,172) 439,939 (2,271) Fund Balances - Beginning 5,758,746 487,794 498,668 1,540,506 35,447 Fund Balances - Ending $ 5,932,213 $ 589,462 $ 278,496 $ 1,980,445 $ 33,176 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-major Governmental Funds
Year Ended June 30, 2022
108
Transportation Community Public
Development Various Development SAFER Inmate Safety
Act AB939 Grants Block Grant Grant Welfare Augmentation $ - $ - $ - $ - $ - $ 954,154 - $
- - - - - - -
- 2,412 3,358 - - 26 872
- - - - - - -
60,467 1,278,667 - 1,978,131 - - -
- - - - - 525 -
272,291 - 7,119 85,213 - - -
60,467 274,703 1,289,144 2,063,344 - 551 955,026
- - - - - - -
- 438,916 - - - 1,500 613,092
84,681 - 583,156 - - - -
- 836,618 - 2,110,774 - - -
- - 37,509 - - - -
84,681 - 1,858,690 2,148,283 - 1,500 613,092
60,467 190,022 (569,546) (84,939) - (949) 341,934
- 42,380 - - - - -
- - (31) - - - -
- 42,349 - - - - -
60,467 190,022 (527,197) (84,939) - (949) 341,934
(60,457) 876,927 1,151,052 - 10,938 - 368,411
$ 1,066,949 10 $ $ 623,855 $ (84,939) $ - $ 9,989 $ 710,345 Continued
Special Revenue
109
Park Maintenance Maintenance Coastal Sage
COPS/SLESA CESF District #1 District #2 Shrub
REVENUES
Taxes - $ - $ 665,829 $ 230,755 $ 89,427 $
Special Assessments - - - - -
Investment Income 1,458 - 8,007 2,033 1,095
Rental Income - - - - -
Revenue from Other Agencies 260,445 34,491 - - -
Charges for Services - - - - -
Other Revenues - - - - -
Total Revenues 261,903 34,491 673,836 232,788 90,522
EXPENDITURES
Current:
General Government - - - - -
Public Safety 470,433 34,491 - - -
Public Works - - 249,721 92,944 60,647
Community Services - - - - -
Community Development - - - - -
Total Expenditures 470,433 34,491 249,721 92,944 60,647 Excess (Deficiency) of Revenues
Over Expenditures (208,530) - 424,115 139,844 29,875
OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - (9,000) - -
Total Other Financing Sources (Uses) - - (9,000) - -
Net Change in Fund Balances (208,530) 424,115 - 130,844 29,875 Fund Balances - Beginning 637,476 2,957,334 - 752,860 405,651 Fund Balances - Ending $ 428,946 $ 3,381,449 - $ $ 883,704 $ 435,526 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2022
110
Citywide Auto Plaza General
Maintenance Maintenance Maintenance Maintenance Sewer Improvement Plan District #4 District #6 District #7 District Maintenance District Update $ - $ - $ - $ 385,213 - $ $ 99,092 $ -
1,003,441 158,578 172,757 1,806,500 3,899,450 - -
5,469 672 943 3,217 25,744 431 -
- - - - - - -
- - - - - - -
- - - - - 205,923 -
- - - - - - -
1,008,910 159,250 173,700 1,809,717 4,310,407 99,523 205,923 - - - - - - -
- - - - - - -
992,298 129,130 139,823 1,737,499 3,612,127 - -
- - - - - - -
- - - - - 65,384 -
992,298 129,130 139,823 1,737,499 3,612,127 65,384 -
16,612 30,120 33,877 72,218 698,280 34,139 205,923
9,000 - - - - - -
- - - - - - -
9,000 - - - - - -
25,612 30,120 33,877 72,218 698,280 34,139 205,923
2,147,448 246,883 352,438 1,223,143 8,882,135 (109,936) 537,260 $ 2,173,060 $ 277,003 $ 386,315 $ 1,295,361 $ 9,580,415 $ (75,797) $ 743,183 Continued
Special Revenue
111
Art in West Covina
Measure Charter Public Community Measure
W PEG Places Services Found. R
REVENUES
Taxes - $ - $ - $ - $ 1,664,991 $
Special Assessments - - - - -
Investment Income 2,394 51 852 - 9,710
Rental Income - - - - -
Revenue from Other Agencies - - - - -
Charges for Services - - 207,608 - 2,286
Other Revenues - - - 164,404 -
Total Revenues 2,394 51 208,460 164,404 1,676,987
EXPENDITURES
Current:
General Government - 15,830 - - -
Public Safety - - - 5,784 -
Public Works 269,072 - - - 594,078
Community Services - - - 174,307 358,439
Community Development - - - - -
Total Expenditures 269,072 15,830 - 180,091 952,517
Excess (Deficiency) of Revenues
Over Expenditures (266,678) (15,779) 208,460 (15,687) 724,470
OTHER FINANCING SOURCES (USES)
Transfers In - - - - -
Transfers Out - - - - -
Total Other Financing Sources (Uses) - - - - -
Net Change in Fund Balances (266,678) (15,779) 208,460 (15,687) 724,470 Fund Balances - Beginning 1,130,117 28,743 297,823 306,357 3,310,521 Fund Balances - Ending $ 863,439 $ 12,964 $ 506,283 $ 290,670 $ 4,034,991 Special Revenue
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2022
112
Capital
Projects
CASP
Measure Measure Community Measure Training
M A Corrections H Fund Sportsplex City
$ 1,884,128 $ - $ - $ - $ - $ - $ -
- - - - - - -
12,884 - (14) - - 36 -
- - - - 217,995 - -
- 3,229 302,826 - 24,333 - -
- - - - - - -
- - - - - 5,851 -
1,897,012 3,229 (14) 302,826 24,333 223,882 -
- - - - - - -
- - 2,073 273,562 - 7,810,515 -
- - - - 95,138 - -
308,006 3,230 - - 887,126 - -
- - - - - - -
308,006 3,230 2,073 273,562 982,264 - 7,810,515
1,589,006 (1) (2,087) 29,264 24,333 (758,382) (7,810,515) - - 33,000 - 754,253 - 4,725,000
- - - - - - -
- - 33,000 - 754,253 - 4,725,000
1,589,006 (1) (2,087) 62,264 24,333 (4,129) (3,085,515) 4,048,091 1 2,088 (57,776) 83,459 9,687,492 -
$ 5,637,097 $ - $ 1 $ 4,488 $ 107,792 $ (4,129) $ 6,601,977 Continued
Special Revenue
113
Construction Information Development Park
Tax Technology Impact Fees Development
REVENUES
Taxes 7,319 $ - $ - $ - $
Special Assessments - - - -
Investment Income 657 - - 11,611
Rental Income - - - -
Revenue from Other Agencies - - - -
Charges for Services - - - -
Other Revenues - 95,586 166,580 4,093,300
Total Revenues 7,976 95,586 166,580 4,104,911
EXPENDITURES
Current:
General Government - - - -
Public Safety - - - -
Public Works 14,225 20,078 - 27,472
Community Services - - 91,889 216,938
Community Development - - - -
Total Expenditures 14,225 20,078 91,889 244,410
Excess (Deficiency) of Revenues
Over Expenditures (6,249) 75,508 74,691 3,860,501
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (6,249) 75,508 74,691 3,860,501 Fund Balances - Beginning 259,736 214,593 477,206 3,303,442 Fund Balances - Ending $ 253,487 $ 290,101 $ 551,897 $ 7,163,943 Capital Projects
City of West Covina
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds - Continued
Year Ended June 30, 2022
114
Capital
Projects
Future
Street
Improvements Total
$ 10,891,448 - $
7,040,726 -
121,134 -
217,995 -
5,345,152 -
436,010 -
25,564 4,918,858
25,564 28,971,323
75,400 -
10,771,653 -
9,212,410 -
9,153,573 -
115,775 -
29,328,811 -
25,564 (357,488)
5,563,633 -
(9,031) -
5,554,602 -
25,564 5,197,114
231,250 52,023,867
$ 256,814 $ 57,220,981
115
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ 15,062 $ 15,062 $
Revenues from Other Agencies - 1,274,379 1,274,379
Total Revenues - 1,289,441 1,289,441
EXPENDITURES
Current:
Public Safety 3,067,788 1,115,974 1,951,814
Total Expenditures 3,067,788 1,115,974 1,951,814
Excess (Deficiency) of Revenues
over Expenditures (3,067,788) 173,467 3,241,255
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (3,067,788) 173,467 3,241,255 Fund Balance, Beginning 5,758,746 5,758,746 -
Fund Balance, Ending 2,690,95 $ 8 $ 5,932,213 $ 3,241,255 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Drug Enforcement Rebate Special Revenue Fund Year Ended June 30, 2022
116
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ 1,335 $ 1,335 $
Revenue from Other Agencies 40,000 101,733 61,733
Total Revenues 40,000 103,068 63,068
EXPENDITURES
Current:
Public Works 362,100 1,400 360,700
Total Expenditures 362,100 1,400 360,700
Excess (Deficiency) of Revenues
over Expenditures (322,100) 101,668 423,768
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (322,100) 101,668 423,768
Fund Balance, Beginning 487,794 487,794 -
Fund Balance, Ending 165,694 $ 589,462 $ 423,768 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Air Quality Improvement Special Revenue Fund Year Ended June 30, 2022
117
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 2,246,600 $ 2,676,794 $ 430,194 $
Investment Income - 5,497 5,497
Total Revenues 2,246,600 2,682,291 435,691
EXPENDITURES
Current:
General Government - 59,570 (59,570)
Community Services 2,990,470 2,842,893 147,577
Total Expenditures 2,990,470 2,902,463 88,007
Excess (Deficiency) of Revenues
over Expenditures (743,870) (220,172) 523,698
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (743,870) (220,172) 523,698 Fund Balance, Beginning 498,668 498,668 -
Fund Balance, Ending (245,202 $ ) $ 278,496 $ 523,698
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Proposition A Special Revenue Fund
Year Ended June 30, 2022
118
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 2,190,200 $ 2,233,746 $ 43,546 $
Investment Income 10,000 5,230 (4,770)
Revenue from Other Agencies 116,000 26,451 (89,549)
Charges for Services 2,400 19,668 17,268
Total Revenues 2,318,600 2,285,095 (33,505)
EXPENDITURES
Current:
Public Works 677,800 508,921 168,879
Community Services 1,600,880 1,323,353 277,527
Community Development 11,000 12,882 (1,882)
Total Expenditures 2,289,680 1,845,156 444,524
Excess (Deficiency) of Revenues
over Expenditures 28,920 439,939 411,019
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 28,920 439,939 411,019
Fund Balance, Beginning 1,540,506 1,540,506 -
Fund Balance, Ending 1,569,426 $ 1,980,44 $ 5 $ 411,019 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Proposition C Special Revenue Fund
Year Ended June 30, 2022
119
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 100 $ 92 $ (8) $
Other Revenues 2,250 2,950 700
Total Revenues 2,350 3,042 692
EXPENDITURES
Current:
Public Safety 17,230 5,313 11,917
Total Expenditures 17,230 5,313 11,917
Excess (Deficiency) of Revenues
over Expenditures (14,880) (2,271) 12,609
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (14,880) (2,271) 12,609
Fund Balance, Beginning 35,447 35,447 -
Fund Balance, Ending 20,567 $ 33,176 $ 12,609 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Police Donations Special Revenue Fund Year Ended June 30, 2022
120
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ - $
Revenue from Other Agencies 77,600 60,467 (17,133)
Total Revenues 77,600 60,467 (17,133)
EXPENDITURES
Current:
Public Works 70,000 - 70,000
Total Expenditures 70,000 - 70,000
Excess (Deficiency) of Revenues
over Expenditures 7,600 60,467 52,867
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 7,600 60,467 52,867
Fund Balance, Beginning (60,457) (60,457) -
Fund Balance, Ending (52,857) $ 10 $ 52,867 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Transportation Development Act Special Revenue Fund Year Ended June 30, 2022
121
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 2,200 $ 2,412 $ 212 $
Other Revenues 170,000 272,291 102,291
Total Revenues 172,200 274,703 102,503
EXPENDITURES
Current:
Public Works 172,900 84,681 88,219
Total Expenditures 172,900 84,681 88,219
Excess (Deficiency) of Revenues
over Expenditures (700) 190,022 190,722
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (700) 190,022 190,722
Fund Balance, Beginning 876,927 876,927 -
Fund Balance, Ending 876,227 $ 1,066,94 $ 9 $ 190,722
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - AB 939 Special Revenue Fund
Year Ended June 30, 2022
122
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 100 $ 3,358 $ 3,258 $
Revenue from Other Agencies 5,429,532 1,278,667 (4,150,865) Other Revenues 22,000 7,119 (14,881)
Total Revenues 5,451,632 1,289,144 (4,162,488)
EXPENDITURES
Current:
Public Safety 608,209 438,916 169,293
Public Works 3,927,062 583,156 3,343,906
Community Services 1,133,561 836,618 296,943
Total Expenditures 5,668,832 1,858,690 3,810,142
Excess (Deficiency) of Revenues
over Expenditures (217,200) (569,546) (352,346)
OTHER FINANCING SOURCES (USES)
Transfers In - 42,380 42,380
Transfers Out (31) (31) -
Total Other Financing
Sources (Uses) (31) 42,349 42,380
Net Change in Fund Balances (217,231) (527,197) (309,966) Fund Balance, Beginning 1,151,052 1,151,052 -
Fund Balance, Ending 933,821 $ 623,85 $ 5 $ (309,966)
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Various Grants Special Revenue Fund Year Ended June 30, 2022
123
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ - $
Revenues from Other Agencies 3,273,566 1,978,131 (1,295,435) Other Revenues 40,000 85,213 45,213
Total Revenues 3,313,566 2,063,344 (1,250,222)
EXPENDITURES
Current:
Community Services 3,623,991 2,110,774 1,513,217
Community Development 284,030 37,509 246,521
Total Expenditures 3,908,021 2,148,283 1,759,738
Excess (Deficiency) of Revenues
over Expenditures (594,455) (84,939) 509,516
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (594,455) (84,939) 509,516
Fund Balance, Beginning - - -
Fund Balance, Ending $ (594,455) $ (84,939) $ 509,516
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Community Development Block Grant Special Revenue Fund Year Ended June 30, 2022
124
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ 26 $ 26 $
Charges for Services 1,500 525 (975)
Total Revenues 1,500 551 (949)
EXPENDITURES
Current:
Public Safety 1,500 1,500 -
Total Expenditures 1,500 1,500 -
Excess (Deficiency) of Revenues
over Expenditures - (949) (949)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - (949) (949)
Fund Balance, Beginning 10,938 10,938 -
Fund Balance, Ending 10,938 $ 9,989 $ (949) $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Inmate Welfare Special Revenue Fund Year Ended June 30, 2022
125
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 823,800 $ 954,154 $ 130,354 $
Investment Income 2,000 872 (1,128)
Total Revenues 825,800 955,026 129,226
EXPENDITURES
Current:
Public Safety 960,000 613,092 346,908
Total Expenditures 960,000 613,092 346,908
Excess (Deficiency) of Revenues
over Expenditures (134,200) 341,934 476,134
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (134,200) 341,934 476,134
Fund Balance, Beginning 368,411 368,411 -
Fund Balance, Ending 234,211 $ 710,345 $ 476,134 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Public Safety Augmentation Special Revenue Fund Year Ended June 30, 2022
126
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 1,600 $ 1,458 $ (142) $
Revenue from Other Agencies 260,000 260,445 445
Total Revenues 261,600 261,903 303
EXPENDITURES
Current:
Public Safety 688,921 470,433 218,488
Total Expenditures 688,921 470,433 218,488
Excess (Deficiency) of Revenues
over Expenditures (427,321) (208,530) 218,791
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (427,321) (208,530) 218,791 Fund Balance, Beginning 637,476 637,476 -
Fund Balance, Ending 210,155 $ 428,946 $ 218,791 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - COPS/SLESA Special Revenue Fund
Year Ended June 30, 2022
127
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ -$
Revenue from Other Agencies 35,000 34,491 (509)
Total Revenues 35,000 34,491 (509)
EXPENDITURES
Current:
Public Safety 35,000 34,491 509
Total Expenditures 35,000 34,491 509
Excess (Deficiency) of Revenues
over Expenditures - - -
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances - - -
Fund Balance, Beginning - - -
Fund Balance, Ending - $ - $ - $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Parks CESF Special Revenue Fund
Year Ended June 30, 2022
128
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 639,100 $ 665,829 $ 26,729 $
Investment Income 11,000 8,007 (2,993)
Total Revenues 650,100 673,836 23,736
EXPENDITURES
Current:
Public Works 352,788 249,721 103,067
Total Expenditures 352,788 249,721 103,067
Excess (Deficiency) of Revenues
over Expenditures 297,312 424,115 126,803
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 297,312 424,115 126,803
Fund Balance, Beginning 2,957,334 2,957,334 -
Fund Balance, Ending 3,254,64 $ 6 $ 3,381,449 $ 126,803 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #1 Special Revenue Fund Year Ended June 30, 2022
129
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 252,000 $ 230,755 $ (21,245) $
Investment Income 3,000 2,033 (967)
Total Revenues 255,000 232,788 (22,212)
EXPENDITURES
Current:
Public Works 192,543 92,944 99,599
Total Expenditures 192,543 92,944 99,599
Excess (Deficiency) of Revenues
over Expenditures 62,457 139,844 77,387
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (9,000) (9,000) -
Total Other Financing
Sources (Uses) (9,000) (9,000) -
Net Change in Fund Balances 53,457 130,844 77,387
Fund Balance, Beginning 752,860 752,860 -
Fund Balance, Ending 806,317 $ 883,704 $ 77,387 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #2 Special Revenue Fund Year Ended June 30, 2022
130
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 110,000 $ 89,427 $ (20,573) $
Investment Income 1,100 1,095 (5)
Total Revenues 111,100 90,522 (20,578)
EXPENDITURES
Current:
Public Works 80,230 60,647 19,583
Total Expenditures 80,230 60,647 19,583
Excess (Deficiency) of Revenues
over Expenditures 30,870 29,875 (995)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 30,870 29,875 (995)
Fund Balance, Beginning 405,651 405,651 -
Fund Balance, Ending 436,521 $ 435,526 $ (995) $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Coastal Sage Shrub Special Revenue Fund Year Ended June 30, 2022
131
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Special Assessments 1,193,700 $ 1,003,441 $ (190,259) $ Investment Income 6,500 5,469 (1,031)
Total Revenues 1,200,200 1,008,910 (191,290)
EXPENDITURES
Current:
Public Works 1,273,448 992,298 281,150
Total Expenditures 1,273,448 992,298 281,150
Excess (Deficiency) of Revenues
over Expenditures (73,248) 16,612 89,860
OTHER FINANCING SOURCES (USES)
Transfers In 9,000 9,000 -
Transfers Out - - -
Total Other Financing
Sources (Uses) 9,000 9,000 -
Net Change in Fund Balances (64,248) 25,612 89,860
Fund Balance, Beginning 2,147,448 2,147,448 -
Fund Balance, Ending 2,083,20 $ 0 $ 2,173,060 $ 89,860
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #4 Special Revenue Fund Year Ended June 30, 2022
132
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Special Assessments 183,500 $ 158,578 $ (24,922) $
Investment Income 1,000 672 (328)
Total Revenues 184,500 159,250 (25,250)
EXPENDITURES
Current:
Public Works 194,015 129,130 64,885
Total Expenditures 194,015 129,130 64,885
Excess (Deficiency) of Revenues
over Expenditures (9,515) 30,120 39,635
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (9,515) 30,120 39,635
Fund Balance, Beginning 246,883 246,883 -
Fund Balance, Ending 237,368 $ 277,003 $ 39,635 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #6 Special Revenue Fund Year Ended June 30, 2022
133
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Special Assessments 204,900 $ 172,757 $ (32,143) $
Investment Income 1,200 943 (257)
Total Revenues 206,100 173,700 (32,400)
EXPENDITURES
Current:
Public Works 189,040 139,823 49,217
Total Expenditures 189,040 139,823 49,217
Excess (Deficiency) of Revenues
over Expenditures 17,060 33,877 16,817
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 17,060 33,877 16,817
Fund Balance, Beginning 352,438 352,438 -
Fund Balance, Ending 369,498 $ 386,315 $ 16,817 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Maintenance District #7 Special Revenue Fund Year Ended June 30, 2022
134
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Special Assessments 2,050,600 $ 1,806,500 $ (244,100) $ Investment Income 4,500 3,217 (1,283)
Total Revenues 2,055,100 1,809,717 (245,383)
EXPENDITURES
Current:
Public Works 2,414,683 1,737,499 677,184
Total Expenditures 2,414,683 1,737,499 677,184
Excess (Deficiency) of Revenues
over Expenditures (359,583) 72,218 431,801
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (359,583) 72,218 431,801
Fund Balance, Beginning 1,223,143 1,223,143 -
Fund Balance, Ending 863,560 $ 1,295,361 $ 431,801 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Citywide Maintenance District Special Revenue Fund Year Ended June 30, 2022
135
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 210,000 $ 385,213 $ 175,213 $
Special Assessments 3,000,000 3,899,450 899,450
Investment Income 20,000 25,744 5,744
Charges for Services - - -
Total Revenues 3,230,000 4,310,407 1,080,407
EXPENDITURES
Current:
Public Works 6,797,050 3,612,127 3,184,923
Total Expenditures 6,797,050 3,612,127 3,184,923
Excess (Deficiency) of Revenues
over Expenditures (3,567,050) 698,280 4,265,330
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out (100,000) - 100,000
Total Other Financing
Sources (Uses) (100,000) - 100,000
Net Change in Fund Balances (3,667,050) 698,280 4,365,330 Fund Balance, Beginning 8,882,135 8,882,135 -
Fund Balance, Ending 5,215,08 $ 5 $ 9,580,415 $ 4,365,330 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Sewer Maintenance Special Revenue Fund Year Ended June 30, 2022
136
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 115,700 $ 99,092 $ (16,608) $
Investment Income 1,000 431 (569)
Total Revenues 116,700 99,523 (17,177)
EXPENDITURES
Current:
Community Development 69,900 65,384 4,516
Total Expenditures 69,900 65,384 4,516
Excess (Deficiency) of Revenues
over Expenditures 46,800 34,139 (12,661)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 46,800 34,139 (12,661)
Fund Balance, Beginning (109,936) (109,936) -
Fund Balance, Ending (63,136 $ ) $ (75,797) $ (12,661)
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Auto Plaza Improvement District Special Revenue Fund Year Ended June 30, 2022
137
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 1,370,000 $ - $ (1,370,000) $
Investment Income - 2,394 2,394
Total Revenues 1,370,000 2,394 (1,367,606)
EXPENDITURES
Current:
Public Works 1,210,200 269,072 941,128
Total Expenditures 1,210,200 269,072 941,128
Excess (Deficiency) of Revenues
over Expenditures 159,800 (266,678) (426,478)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 159,800 (266,678) (426,478) Fund Balance, Beginning 1,130,117 1,130,117 -
Fund Balance, Ending 1,289,91 $ 7 $ 863,439 $ (426,478) City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure W Special Revenue Fund
Year Ended June 30, 2022
138
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ -$
Investment Income - 51 51
Total Revenues - 51 51
EXPENDITURES
Current:
General Government 15,830 15,830 -
Total Expenditures 15,830 15,830 -
Excess (Deficiency) of Revenues
over Expenditures (15,830) (15,779) 51
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (15,830) (15,779) 51
Fund Balance, Beginning 28,743 28,743 -
Fund Balance, Ending 12,913 $ 12,964 $ 51 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Charter PEG Special Revenue Fund
Year Ended June 30, 2022
139
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ -$
Other Revenues 58,313 164,404 106,091
Total Revenues 58,313 164,404 106,091
EXPENDITURES
Current:
Public Safety - 5,784 (5,784)
Community Services 321,610 174,307 147,303
Total Expenditures 321,610 180,091 141,519
Excess (Deficiency) of Revenues
over Expenditures (263,297) (15,687) 247,610
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (263,297) (15,687) 247,610
Fund Balance, Beginning 306,357 306,357 -
Fund Balance, Ending 43,060 $ 290,670 $ 247,610 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - West Covina Community Svcs. Found. Special Revenue Fund Year Ended June 30, 2022
140
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 1,337,700 $ 1,664,991 $ 327,291 $
Charges for Services - 2,286 2,286
Investment Income 10,000 9,710 (290)
Total Revenues 1,347,700 1,676,987 329,287
EXPENDITURES
Current:
Public Works 594,300 594,078 222
Community Services 1,549,134 358,439 1,190,695
Total Expenditures 2,143,434 952,517 1,190,917
Excess (Deficiency) of Revenues
over Expenditures (795,734) 724,470 1,520,204
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (795,734) 724,470 1,520,204 Fund Balance, Beginning 3,310,521 3,310,521 -
Fund Balance, Ending 2,514,78 $ 7 $ 4,034,991 $ 1,520,204 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure R Special Revenue Fund
Year Ended June 30, 2022
141
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 1,509,200 $ 1,884,128 $ 374,928 $
Investment Income 13,000 12,884 (116)
Total Revenues 1,522,200 1,897,012 374,812
EXPENDITURES
Current:
Public Works - - -
Community Services 836,203 308,006 528,197
Total Expenditures 836,203 308,006 528,197
Excess (Deficiency) of Revenues
over Expenditures 685,997 1,589,006 903,009
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 685,997 1,589,006 903,009
Fund Balance, Beginning 4,048,091 4,048,091 -
Fund Balance, Ending 4,734,08 $ 8 $ 5,637,097 $ 903,009 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure M Special Revenue Fund
Year Ended June 30, 2022
142
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ -$
Revenue from Other Agencies 400,000 3,229 (396,771)
Total Revenues 400,000 3,229 (396,771)
EXPENDITURES
Current:
Public Works - - -
Community Services 403,230 3,230 400,000
Total Expenditures 403,230 3,230 400,000
Excess (Deficiency) of Revenues
over Expenditures (3,230) (1) 3,229
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (3,230) (1) 3,229
Fund Balance, Beginning 1 1 -
Fund Balance, Ending (3,229 $ ) $ - $ 3,229
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure A Special Revenue Fund
Year Ended June 30, 2022
143
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes - $ - $ -$
Revenue from Other Agencies 237,000 302,826 65,826
Total Revenues 237,000 302,826 65,826
EXPENDITURES
Current:
Public Safety 406,027 273,562 132,465
Community Services - - -
Total Expenditures 406,027 273,562 132,465
Excess (Deficiency) of Revenues
over Expenditures (169,027) 29,264 198,291
OTHER FINANCING SOURCES (USES)
Transfers In 33,000 33,000 -
Transfers Out - - -
Total Other Financing
Sources (Uses) 33,000 33,000 -
Net Change in Fund Balances (136,027) 62,264 198,291
Fund Balance, Beginning (57,776) (57,776) -
Fund Balance, Ending (193,803 $ ) $ 4,488 $ 198,291
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Measure H Special Revenue Fund
Year Ended June 30, 2022
144
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ 36 $ 36 $
Rental Income 173,136 217,995 44,859
Other Revenues - 5,851 5,851
Total Revenues 173,136 223,882 50,746
EXPENDITURES
Current:
Public Works 150,000 95,138 54,862
Community Services 1,348,929 887,126 461,803
Total Expenditures 1,498,929 982,264 516,665
Excess (Deficiency) of Revenues
over Expenditures (1,325,793) (758,382) 567,411
OTHER FINANCING SOURCES (USES)
Transfers In 754,253 754,253 -
Transfers Out - - -
Total Other Financing
Sources (Uses) 754,253 754,253 -
Net Change in Fund Balances (571,540) (4,129) 567,411
Fund Balance, Beginning - - -
Fund Balance, Ending (571,540 $ ) $ (4,129) $ 567,411
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Sportsplex Special Revenue Fund
Year Ended June 30, 2022
145
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ - $
Charges for Services - - -
Total Revenues - - -
EXPENDITURES
Current:
Public Safety 10,458,800 7,810,515 2,648,285
Total Expenditures 10,458,800 7,810,515 2,648,285
Excess (Deficiency) of Revenues
over Expenditures (10,458,800) (7,810,515) 2,648,285
OTHER FINANCING SOURCES (USES)
Transfers In 4,725,000 4,725,000 -
Transfers Out - - -
Total Other Financing
Sources (Uses) 4,725,000 4,725,000 -
Net Change in Fund Balances (5,733,800) (3,085,515) 2,648,285 Fund Balance, Beginning 9,687,492 9,687,492 -
Fund Balance, Ending 3,953,692 $ 6,601,97 $ 7 $ 2,648,285 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - City Capital Projects Fund
Year Ended June 30, 2022
146
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Taxes 70,000 $ 7,319 $ (62,681) $
Investment Income 1,000 657 (343)
Total Revenues 71,000 7,976 (63,024)
EXPENDITURES
Current:
Public Works 20,000 14,225 5,775
Total Expenditures 20,000 14,225 5,775
Excess (Deficiency) of Revenues
over Expenditures 51,000 (6,249) (57,249)
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 51,000 (6,249) (57,249)
Fund Balance, Beginning 259,736 259,736 -
Fund Balance, Ending 310,736 $ 253,487 $ (57,249 $ )
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Construction Tax Capital Projects Fund Year Ended June 30, 2022
147
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Revenue from Other Agencies 280,000 $ - $ (280,000) $
Other Revenues - 95,586 95,586
Total Revenues 280,000 95,586 (184,414)
EXPENDITURES
Current:
Public Works 304,086 20,078 284,008
Total Expenditures 304,086 20,078 284,008
Excess (Deficiency) of Revenues
over Expenditures (24,086) 75,508 99,594
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (24,086) 75,508 99,594
Fund Balance, Beginning 214,593 214,593 -
Fund Balance, Ending 190,507 $ 290,101 $ 99,594 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Information Technology Capital Projects Fund Year Ended June 30, 2022
148
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income - $ - $ - $
Other Revenues - 166,580 166,580
Total Revenues - 166,580 166,580
EXPENDITURES
Current:
Community Services 103,291 91,889 11,402
Total Expenditures 103,291 91,889 11,402
Excess (Deficiency) of Revenues
over Expenditures (103,291) 74,691 177,982
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances (103,291) 74,691 177,982
Fund Balance, Beginning 477,206 477,206 -
Fund Balance, Ending 373,915 $ 551,897 $ 177,982 $
City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Development Impact Fees Capital Projects Fund Year Ended June 30, 2022
149
Variance -
Final Actual Positive
Budget Amounts (Negative)
REVENUES
Investment Income 13,000 $ 11,611 $ (1,389) $
Other Revenues 1,971,900 4,093,300 2,121,400
Total Revenues 1,984,900 4,104,911 2,120,011
EXPENDITURES
Current:
Public Works 82,434 27,472 54,962
Community Services 1,005,100 216,938 788,162
Total Expenditures 1,087,534 244,410 843,124
Excess (Deficiency) of Revenues
over Expenditures 897,366 3,860,501 2,963,135
OTHER FINANCING SOURCES (USES)
Transfers In - - -
Transfers Out - - -
Total Other Financing
Sources (Uses) - - -
Net Change in Fund Balances 897,366 3,860,501 2,963,135 Fund Balance, Beginning 3,303,442 3,303,442 -
Fund Balance, Ending 4,200,80 $ 8 $ 7,163,943 $ 2,963,135 City of West Covina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Park Development Capital Projects Fund Year Ended June 30, 2022
150
INTERNAL SERVICE FUNDS
City of West Covina
Internal Service Funds
Year Ended June 30, 2022
INTERNAL SERVICE FUNDS
The internal service funds are used to account for goods and services provided by one City department to other City departments on a cost reimbursement basis.
Fleet Management
This fund provides maintenance on materials and supplies for City vehicles and other gasoline or diesel powered equipment.
Self-Insurance
This fund accounts for the use of funds that are charged to departments for the administration and payment of claims under the City’s self-insured general liability and workers’ compensation programs.
Retiree Health Savings Plan
This fund accounts for the set aside lump sum benefits for retiring employees.
Vehicle Replacement
This fund provides for replacement of City vehicles.
151
City of West Covina
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan Replacement Totals ASSETS
Current Assets:
Cash and Investments $ 377,359 $ 14,540,334 $ 346,235 $ 15,263,976 48 $ Restricted Cash and Investments 424,817 - - 424,817 -
Accounts Receivable - 1,050 - - 1,050
Inventories 73,202 - - - 73,202
Total Current Assets 450,561 14,966,201 346,235 15,763,045 48 Noncurrent Assets:
Capital Assets, Depreciable, Net 153,480 - 446,526 - 600,006 Total Noncurrent Assets 153,480 - 446,526 - 600,006
Total Assets 604,041 14,966,201 346,235 446,574 16,363,051
LIABILITIES
Current Liabilities:
Accounts Payable 139,251 51,631 - 190,882 -
Other Accrued Liabilities 1,120 - - - 1,120
Current Portion of Long-Term Liabilities:
Claims Payable 3,310,764 - - 3,310,764 -
Total Current Liabilities 140,371 3,362,395 - 3,502,766 - Noncurrent Liabilities:
Compensated Absences 10,182 - - - 10,182
Claims Payable 9,362,390 - - 9,362,390 -
Total Noncurrent Liabilities 10,182 9,362,390 - 9,372,572 - Total Liabilities 150,553 12,724,785 - 12,875,338 -
NET POSITION
Net Investment in Capital Assets 153,480 - 446,526 - 600,006 Unrestricted 300,008 2,241,416 346,235 2,887,707 48
Total Net Position $ 453,488 $ 2,241,416 $ 346,235 $ 446,574 $ 3,487,713 152
City of West Covina
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
Year Ended June 30, 2022
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan Replacement Totals
OPERATING REVENUES
Charges for Services $ 4,086,728 1,515,130 $ - $ - $ 5,601,858 $ Rental Income 44,398 - - - 44,398
Other Revenues 5,257 86,388 - - 91,645
Total Operating Revenues 1,564,785 4,173,116 - - 5,737,901
OPERATING EXPENSES
Personnel Services - 87,565 - - 87,565
Cost of Sales, Services and Operations 1,379,969 62,372 - - 1,442,341 Depreciation 1,666 - - 218,252 219,918
Insurance and Claims Paid - 5,142,016 - - 5,142,016
Total Operating Expenses 1,469,200 5,204,388 - 218,252 6,891,840 Operating Income (Loss) 95,585 (1,031,272) - (218,252) (1,153,939)
NONOPERATING REVENUES (EXPENSES)
Interest Income - - 867 - 867
Gain/(Loss) on Disposal of Capital Assets 2,221 - - 16,303 18,524 Total Nonoperating Revenues (Expenses) 2,221 - 867 16,303 19,391 Income (Loss) Before Operating Transfers 97,806 (1,031,272) 867 (201,949) (1,134,548) Transfers In 700,000 - 142,342 - 842,342
Transfers Out - - - - -
Change in Net Position 97,806 (331,272) 867 (59,607) (292,206) Net Position - Beginning of Year 355,682 2,572,688 345,368 506,181 3,779,919 Net Position - End of Year $ 453,488 $ 2,241,416 $ 346,235 $ 446,574 $ 3,487,713 153
City of West Covina
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2022
Fleet Retiree Health Vehicle
Management Self-Insurance Savings Plan Replacement Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from User Departments $ 4,173,116 1,664,785 $ - $ - $ 5,837,901 $ Cash Paid to Suppliers for Goods and Services (5,225,394) (1,367,082) - (6,592,476) - Cash Paid to Employees for Services - (78,416) - (78,416) - Net Cash from Operating Activities 219,287 (1,052,278) - (832,991) -
CASH FLOWS FROM NONCAPITAL AND
RELATED FINANCING ACTIVITIES
Cash Paid (to) from Other Funds 700,000 - - 79,890 779,890 Net Cash from Noncapital and
Related Financing Activities - 700,000 - 79,890 779,890
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (47,277) - (79,842) - (127,119) Net Cash from Capital and
Related Financing Activities (47,277) - (79,842) - (127,119)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - - 867 - 867
Net Cash from Investing Activities - - 867 - 867
Net Increase (Decrease) in Cash and Cash Equivalents 172,010 (352,278) 867 (179,353) 48 Cash and Cash Equivalents, Beginning of the Year 205,349 15,317,429 345,368 15,868,146 - Cash and Cash Equivalents, End of the Year $ 377,359 $ 14,965,151 $ 346,235 $ 15,688,793 48 $ Reconciliation of Operating Income (Loss) to
Net Cash from Operating Activities:
Operating Income (Loss) $ 95,585 $ (1,031,272) -$ (218,252) $ $ (1,153,939) Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:
Depreciation 1,666 - 218,252 - 219,918
Miscellaneous Income - - - - -
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable - 100,000 - 100,000 - (Increase) Decrease in Inventory and Prepaid Items - (33,023) - (33,023) - Increase (Decrease) in Accounts Payable 46,323 45,910 - - 92,233 Increase (Decrease) in Accrued Liabilities - (833) - - (833) Increase (Decrease) in Compensated Absences Payable - 9,982 - 9,982 - Increase (Decrease) in Claims Payable (67,329) - - - (67,329) Net Cash from Operating Activities $ 219,287 $ (1,052,278) $ - $ (832,991) - $ 154
PENSION TRUST FUNDS
City of West Covina
Pension Trust Funds
Year Ended June 30, 2022
PENSION TRUST FUNDS
Pension Trust Funds are used to account for monies required to be held in trust for the members and beneficiaries of defined benefit pension plans.
Retirement Enhancement Defined Benefit Pension Trust Fund This fund accounts for the assets and activities of the Public Agency Retirement System Enhancement Plan.
Supplemental Retirement Defined Benefit Pension Trust Fund This fund accounts for the assets and activities of the Public Agency Supplemental Retirement Plan. 155
City of West Covina
Combining Statement of 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
ASSETS
Cash and Investments $ 317,934 72,481 $ 390,415 $
Total Assets 317,934 72,481 390,415