Agenda packet, regular meeting — West Covina City Council, May 16, 2023

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
MAY 16, 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 MAY 16, 2023, 7:00 PM

REGULAR MEETING

INVOCATION
Led by Firefighter/Paramedic Joe Silguero

PLEDGE OF ALLEGIANCE
Led by Councilman Cantos

ROLL CALL

REPORTING OUT FROM CLOSED SESSION

PRESENTATIONS
Certificate of Appreciation Recognizing Good Samaritans Certificate of Appreciation Recognizing Donations Provided to the West Covina Fire Department Proclamation Recognizing Gun Violence Awareness Day
Proclamation Celebrating May as Asian American and Pacific Islander Heritage Month Proclamation Recognizing May 21 through May 27, 2023, as National Public Works Week 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 MAY 2, 2023, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE MAY 2, 2023, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

It is recommended that the City Council approve the May 2, 2023, Regular Session Meeting Minutes and the May 2, 2023, Regular Closed Session Meeting Minutes.

FINANCE DEPARTMENT
2) CONSIDERATION OF PROPOSITION A EXCHANGE WITH FOOTHILL TRANSIT It is recommended that the City Council approve the following:

It is recommended that the City Council approve the following:

Exchange of $2,500,000 in Proposition A Local Return funds for $1,875,000 in general funds with Foothill Transit; and

1. Authorize the City Manager to execute the Assignment Agreement with Foothill Transit, in substantially the form as attached and in such final form as approved by the City Attorney.

2. 3) CONSIDERATION OF THE THIRD QUARTER FINANCIAL REPORT AND BUDGET AMENDMENT FOR FISCAL YEAR 2022-23
It is recommended that the City Council take the following actions:

1. Receive and file the Third Quarter Financial Report for Fiscal Year 2022-23; and

2. Adopt the following resolution:

RESOLUTION NO. 2023-28 - 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 (THIRD

QUARTER FINANCIAL REPORT)
4) CONSIDERATION OF SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2022 It is recommended that City Council receive and file the Single Audit Report on Federal Award Programs for the year ended June 30, 2022.
5) ANNUAL REVIEW OF FINANCIAL POLICIES
It is recommended that the City Council adopt the following resolution:

RESOLUTION NO. 2023-25 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, APPROVING THE CITY OF WEST

COVINA STATEMENT OF INVESTMENT POLICY
6) PROPOSED FISCAL YEAR 2023-24 OPERATING AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
It is recommended that City Council receive and file the update regarding the Proposed FY 2022-23 Operating and Capital Improvement Program Budget.

PUBLIC SERVICES
7) CONSIDERATION OF AMENDMENTS TO AGREEMENTS WITH UBER TECHNOLOGIES, INC.

It is recommended that the City Council:

Approve the First Amendment to the Uber Central Agreement with Uber Technologies, Inc. (Uber).

1. Approve the First Amendment to the Uber Vouchers for Transit Agencies Agreement with Uber.

2. 3. Authorize the City Manager to execute the amendments.

Authorize the City Manager to negotiate and execute future amendments extending the terms of the agreements, provided that the total cost of the program does not exceed $100,000.

4. END OF CONSENT CALENDAR

HEARINGS

PUBLIC HEARINGS

PUBLIC HEARINGS
8) FISCAL YEAR (FY) 2023-2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

ACTION PLAN
It is recommended that the City Council take the following actions:

Department of Housing and Urban Development (HUD), and execute all subrecipient agreements for the use of funds approved in the 2023-2024 Annual Action Plan; and

2. Authorize the City Manager to negotiate and execute all necessary documents, in such final form as approved by the City Attorney, to carry out the City Council's direction.

3. 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.) 9) CONSIDERATION OF SUMMARY OF INVESTIGATION AS REQUESTED BY THE CITY OF WEST COVINA IN THE MATTER OF: LAND ACKNOWLEDGMENT INCIDENT AT

CENTENNIAL EVENT
It is recommended that the City Council receive and file report regarding the land acknowledgment incident that occurred on February 18, 2023.

CITY COUNCIL COMMENTS

ADJOURNMENT
Next Tentative City Council Meeting
Regular Meeting June 6, 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 d.
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.

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: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF APPROVAL OF THE MAY 2, 2023, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE MAY 2, 2023, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

RECOMMENDATION:

It is recommended that the City Council approve the May 2, 2023, Regular Session Meeting Minutes and the May 2, 2023, Regular Closed Session Meeting Minutes.

DISCUSSION:

That the City Council adopt the attached minutes.

Attachments
Attachment No. 1 - 5/2/2023 Regular Session Minutes Draft Attachment No. 2 - 5/2/20232 Closed Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO. 1

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
MAY 2, 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

MINUTES

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY

INVOCATION
Led by Lisa Sherrick, Assistant City Clerk

PLEDGE OF ALLEGIANCE
Led by Mayor Diaz

ATTACHMENT NO. 1

ROLL CALL
Council Members

Present: Council Members Tony Wu, Ollie Cantos, Mayor Pro Tem Brian Tabatabai, Mayor Rosario Diaz.

Council Members

Absent: Councilwoman Letty Lopez-Viado
City Staff: David Carmany City Manager, Paulina Morales Assistant City Manager, Roxanne Lerma Assistant City Manager, Tom Duarte City Attorney; other City staff presented reports and responded to questions as indicated in the minutes.

REPORTING OUT FROM CLOSED SESSION
Duran v. City of West Covina matter, on a vote of 4-0, City Council directed staff to pay plaintiff $150,000 and in return plaintiff agreed to dismiss its complaint against the City.

PRESENTATIONS
• Proclamation Honoring National Small Business Week
• Proclamation Declaring the Week of May 14 through May 20, 2023, as National Police Week
• Proclamation Recognizing the Week of April 30 through May 6, 2023, as Professional Municipal Clerks Week
ORAL COMMUNICATIONS - Five (5) minutes per speaker
Matthew Smith
Kathy Novarro
Armando Herman
John Shewmaker
Chris Miller
Wen Wen Zhang
R. Robinson
JD

CITY MANAGER'S REPORT
City Manager's report on current City projects.

CONSENT CALENDAR
ACTION: Motion by Councilman Cantos, Second by Mayor Pro Tem Tabatabai 4-0 to: Approve Consent Calendar Items 1 and 2. (Item 5 was pulled by City Manger Carmany to be brought back at a future meeting).

ACTION: Motion by Councilman Cantos, Second by Councilman Wu 4-0 to:

Approve Consent Calendar Item 3 (This item was pulled for discussion by Councilman Wu).

ATTACHMENT NO. 1
ACTION: Motion by Councilman Wu, Second by Mayor Pro Tem Tabatabai 4-0 to:

Approve Consent Calendar Item 4 (This item was pulled for discussion by Councilman Wu).

APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE APRIL 18, 2023, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING
MINUTES. THE REGULAR CLOSED SESSION MEETING WAS
CANCELED.

Carried 4-0 to: Approve the April 18, 2023, Regular Session Meeting Minutes.

FIRE DEPARTMENT
2) CONSIDERATION OF PURCHASE OF SELF-CONTAINED

BREATHING APPARATUS (SCBA)
Carried 4-0 to: Authorize a purchase order with L.N. Curtis and Sons, in the amount of $992,000, for the purchase of SelfContained Breathing Apparatus (SCBA) via Sourcewell Cooperative Purchasing Agreement No. 032620-LNC.

HUMAN RESOURCES/RISK MANAGEMENT
3) CONSIDERATION OF JOB DESCRIPTIONS FOR CODE

ENFORCEMENT DIRECTOR AND CODE ENFORCEMENT MANAGER

Carried 4-0 to: Approve the Code Enforcement Director Job Description. Resolution 2023-26 was not adopted.
4) CONSIDERATION OF THE JOB DESCRIPTION FOR ECONOMIC

DEVELOPMENT AND HOUSING MANAGER

Carried 4-0 to: Adopt the following resolution:

RESOLUTION NO. 2023-27 - A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA,

APPROVING THE REPEAL AND REPLACEMENT OF THE

ECONOMIC DEVELOPMENT AND HOUSING MANAGER

CLASSIFICATION SPECIFICATIONS

ATTACHMENT NO. 1

END OF CONSENT CALENDAR

DEPARTMENT REGULAR MATTERS

FINANCE DEPARTMENT
5) CONSIDERATION OF AMENDMENT TO THE ATHENS SERVICES
FRANCHISE AGREEMENT TO REFLECT SB 1383 IMPLEMENTATION
This item was pulled by City Manager Carmany to be brought back at a future City Council Meeting.

MAYOR/COUNCILMEMBERS REPORTS
None

CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION City Council approved the following requests:
• A presentation by DTSC or AQMD regarding Quemetco (battery recycling center).
• Create and provide to Council a detailed Communications Plan.

CITY COUNCIL COMMENTS
• Councilmembers recognized May as Asian American and Pacific Islander Heritage month and Mental Health Awareness Month, and May 1st as International Worker Day,
-This space intentionally left blank-
ATTACHMENT NO. 1

ADJOURNMENT
A motion to adjourn the Regular Meeting was made by Mayor Diaz, and the meeting was adjourned at 9:40 p.m. The next regularly scheduled Regular City Council Meeting will be held on Tuesday, May 16, 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
ATTACHMENT NO. 2

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
MAY 2, 2023, 6:00 PM

REGULAR MEETING - CLOSED SESSION
MANAGEMENT RESOURCE CENTER 3RD FLOOR
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
Minutes

CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Rosario Diaz on Tuesday, May 2, 2023, at 7:00 p.m., in the Management Resource Center Conference Room Chambers, 1444 West Garvey Avenue South, West Covina, California

ROLL CALL
Council Members

Present: Council Members Tony Wu, Ollie Cantos, Mayor Pro Tem Brian Tabatabai, Mayor Rosario Diaz
ATTACHMENT NO. 2
Council Members

Absent: Councilwoman Letty Lopez-Viado
City Staff: David Carmany City Manager, Thomas Duarte City Attorney, Roxanne Lerma Assistant City Manager, Paulina Morales Assistant City Manager, Stephanie Sikkema Finance Director, Lisa Handy, Interim Human Resources and Risk Management Director, Arminen Megrabyn, Kessel & Megrabyan, . Derek Straatsma, Goldman, Magdalin & Krikes, LLP

PUBLIC COMMENTS ON ITEMS ON THE AGENDA
None

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - Pursuant to Government Code § 54956.9(d)(1)

1. Michael Timothy Duran v. City of West Covina, et al, (United States District Court, Central District, Case No. 2:20-cv-11029-CAS-PD)

2. Briley v. City of West Covina, (LA Superior Court, Case No. BC630552

3. Michelle Mansour v. City of West Covina, et al, (LA Superior Court, Case No, 21STCV24136)

4. Noel Flameno vs. City of West Covina - (WCAB Marina Del Ray - ADJ15385355)

5. Jeffrey Munn vs. City of West Covina - (WCAB Marina Del Ray - ADJ15905810)

2. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
City Negotiators: Carmany, Duarte
Employee Organizations
• Confidential Employees
• Maintenance & Crafts Employees
• Non-Sworn
• W.C. Police Officers’ Association
• W.C. Firefighters’ Management Assoc.
• W.C. Firefighters’ Association, I.A.F.F., Local 3226
• General Employees
• Mid-Management Employees
• W.C. Police Management Association
Unrepresented Employee Group
ATTACHMENT NO. 2
• Department Heads

REPORTING OUT
City Attorney Tom Duarte reported that on Duran v. City of West Covina matter on a vote of 4-0 City Council directed staff to pay plaintiff $150,000 and in return plaintiff agreed to dismiss its complaint against the City.

ADJOURNMENT
A motion to adjourn the Closed Session Meeting was made by Mayor Diaz and the meeting was adjourned at 6:45 pm. The next regularly scheduled Closed Session City Council Meeting will be held on Tuesday May 16, 2023, at 6:00 p.m. in the Management Resource Center, 3rd Floor, 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: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF PROPOSITION A EXCHANGE WITH FOOTHILL TRANSIT RECOMMENDATION:

It is recommended that the City Council approve the following:

Exchange of $2,500,000 in Proposition A Local Return funds for $1,875,000 in general funds with Foothill Transit; and

1. Authorize the City Manager to execute the Assignment Agreement with Foothill Transit, in substantially the form as attached and in such final form as approved by the City Attorney.

2. BACKGROUND:

Approved by voters in November 1980, Proposition (Prop) A is a half-cent sales tax dedicated to transportation funding. Under Prop A, the City receives a portion of the ½ cent sales tax levied in Los Angeles County to develop and improve local public transit, paratransit and related transportation infrastructure. At this time, the City does not have any projects to utilize these funds. The City is in the practice of selling these restricted transportation Prop A dollars to other cities or special districts in exchange for non-restricted General Fund dollars to assist with balancing the budget.

These exchanges are allowed under the guidelines for this revenue source and provide benefits for both parties.

The buyer gets discounted transportation dollars and West Covina receives additional General Fund dollars. The exchange rate is a matter of supply and demand. According to the Los Angeles County Metropolitan Transportation Authority, the exchange rate has been at seventy to seventy-five cents on the dollar for the last 20 years.

The City has exchanged its Prop A funds with Foothill Transit the past few years at an exchange rate of seventy-five cents on the dollar.

DISCUSSION:

The City has $2.5 million in Prop A funds available to sell. Foothill Transit has agreed to purchase the $2.5 million at seventy-five cents on the dollar, or $1,875,000 in general funds. The City received another offer of exchange; however, the amount and exchange rate was less. Thus, staff recommends City Council authorize the exchange with Foothill Transit at seventy-five cents on the dollar and authorize the City Manager to execute the Assignment Agreement with Foothill Transit, in such final form as approved by the City Attorney.

LEGAL REVIEW:

The City Attorney's Office will approve the final form of the agreement prior to execution.

Fiscal Impact
FISCAL IMPACT:

The Assignment Agreement for the Prop A exchange with Foothill Transit will generate $1,875,000 in General Fund revenue which is slightly over the FY2022-23 Budget of $1,868,325.00.

The original estimate for the FY2022-23 Prop A Exchange was $2 million. Revenue has been higher than estimated, making $2.5 million available for exchange. The budget amendment to increase expenditures is included with the Third Quarter Financial Report.

Account No. Account Name FY2022-23
Budget
Amount
Requested
Under/
-Over
Budget
Revenue
110.00.4580 PROP A

EXCHANGE
$1,868,325 $1,875,000 -$6,675
Expenditures
121.61.5140.6520 PROP A

EXCHANGE
$2,000,000 $2,500,000 -$500,000
Table 1. Revenue and Expenditure Summary
Attachments
Attachment No. 1 - Assignment Agreement
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability ATTACHMENT NO. 1

ASSIGNMENT AGREEMENT

BETWEEN THE CITY OF WEST COVINA, CALIFORNIA

AND FOOTHILL TRANSIT FOR

PROPOSITION A LOCAL RETURN FUND EXCHANGE
THIS ASSIGNMENT AGREEMENT (“Agreement”) is entered into by and between the City of West Covina, California and Foothill Transit. The effective date (“Effective Date”) of this Agreement shall be the last date that this Agreement is executed either by City of West Covina or by Foothill Transit. This Agreement is entered into with respect to the following facts:

A. Foothill Transit provides community-oriented, environmentally friendly bus service throughout Southern California’s San Gabriel and Pomona Valleys, including express bus routes to Pasadena and Downtown Los Angeles.

B. The City of West Covina has uncommitted Proposition A Local Return funds which could be made available to Foothill Transit to assist in providing the services discussed in Paragraph A of this Agreement. In exchange for the assignment by Foothill Transit of the amount for its general use funds (non-formula allocation funds) indicated in Section 1 below, the City of West Covina is willing to assign uncommitted Proposition A Local Return funds to Foothill Transit for the purpose identified in Paragraph A.

Now, therefore, in consideration of the mutual benefits to be derived by the parties, it is mutually agreed as follows:

1. Exchange. The City of West Covina agrees to assign a total of $2,500,000 of its Proposition A Local Return funding authority to Foothill Transit from the Fiscal Year 2022-2023 allocation.

In return, Foothill Transit agrees to assign $1,875,000 of its general use funds (non-formula allocation funds) to the City of West Covina.

2. Consideration. The City of West Covina shall assign the agreed upon Proposition A Local Return funds to Foothill Transit in one lump-sum payment. Foothill Transit shall assign the agreed upon general use funds to the City of West Covina in one lump-sum payment. Each payment shall be due within 30 days of the first date that both of the following have occurred:
(a) execution of this Agreement, and (b) approval by Los Angeles County Metropolitan Transportation Authority (LACMTA) of the Foothill Transit’s project description.

3. Term. This Agreement is effective on the Effective Date and for such time as is necessary for both parties to complete their mutual obligations under this Agreement.

4. Termination. Termination of this Agreement may be made by either party so long as both of the following are correct: (a) written notice of intent to terminate is given to the other party at least five (5) days prior to the termination and (b) the effective date of the termination is before the date LACMTA approves the Foothill Transit project description.

5. Notice. Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or by written notice upon such party deposited in the custody of the United States Postal Service addressed as follows:

A. David N. Carmany
City Manager
City of West Covina
1444 West Garvey Avenue South
West Covina, CA 91790
B. Doran J. Barnes
Chief Executive Officer
Foothill Transit Administrative Office, 2nd Floor
100 South Vincent Avenue
West Covina, CA 91790
If notice is provided via personal service, it is deemed “given” on the date of personal service. If notice is provided via U.S. mail, then the notice is deemed “given” two days after the notice is properly addressed and placed in the U.S. mail.

Either party may at any time, by notice to the other party in accordance with this Section, change the designation or address of the person specified to receive notice on its behalf.

6. Assurances.

A. Foothill Transit shall use the assigned Proposition A Local Return funds only for the purpose of providing the services discussed in Paragraph A of this Agreement, and within the time limits specified in LACMTA’s Proposition A Local Return Program Guidelines.

B. Concurrently with the execution of this Agreement, Foothill Transit shall provide LACMTA with the Standard Assurances and Understandings Regarding Receipt and Use of Proposition A funds specified in the Guidelines regarding the use of the assigned Proposition A Local Return funds.

SIGNATURE PAGE FOLLOWS.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, duly authorized, by Foothill Transit on May 23, 2023, and by the City of West Covina on May 16, 2023.

CITY OF WEST COVINA FOOTHILL TRANSIT
BY: BY:

David N. Carmany, City Manager Doran J. Barnes, Chief Executive Officer BY: BY:

Stephanie Sikkema, Finance Director Michelle Lopes Caldwell, Director of Finance and Treasurer
ATTEST: ATTEST:

BY: BY:

Lisa Sherrick, Assistant City Clerk
APPROVED AS TO FORM:

Christina Lopez, Board Secretary
BY:

Thomas P. Duarte, City Attorney
AGENDA ITEM NO. 3

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF THE THIRD QUARTER FINANCIAL REPORT AND BUDGET AMENDMENT FOR FISCAL YEAR 2022-23
RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Receive and file the Third Quarter Financial Report for Fiscal Year 2022-23; and

2. Adopt the following resolution:

RESOLUTION NO. 2023-28 - 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 (THIRD QUARTER FINANCIAL

REPORT)
BACKGROUND:

This report is intended only to provide the City Council and the public with an overview of the City’s general fiscal condition. The financial information included in this report is preliminary, unaudited and subject to revision upon completion of the City's closing and audit. The City will make the Quarterly Financial Report available on the City’s website for review by the City’s stakeholders.

DISCUSSION:

The City has completed the third quarter of Fiscal Year 2022-23. The Quarterly Report (Attachment No. 1) summarizes the overall financial performance of the City for the period of July 1, 2022 through March 31, 2023, but it is not meant to be inclusive of all finance and accounting transactions. While the focus of the report is the General Fund, summary financial information is also provided for the Enterprise Fund and Special Revenue Funds.

The information presented reports revenues as they are received and expenditures when paid.

Revenues and expenditures are only accrued at year-end to account for such activity in the correct fiscal year. Additionally, a budget amendment (Attachment No. 2) is proposed with the Quarterly Report to adjust revenue and expenditures based on activity to date.

LEGAL REVIEW:

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

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

Proposed General Fund (Fund 110) changes are summarized as follows:

General Fund Original
Budget
Current
Budget
Requested
BA
Amended
Budget
Revenue
Property Tax 28,986,300 28,986,300 885,700 29,872,000
Sales Tax 23,142,000 23,142,000 23,142,000
Other Taxes 9,446,000 9,446,000 9,446,000
Charges for Services 7,578,220 7,578,220 7,578,220
Licenses & Permits 3,167,810 4,393,810 598,000 4,991,810 Revenue from Other Agencies 2,628,625 2,628,625 2,628,625 Cost Recovery 1,365,900 1,365,900 1,365,900
Interdepartmental Charges 1,196,200 1,196,200 1,196,200 Use of Money & Property 1,078,300 1,078,300 1,078,300
Fines & Forfeitures 1,023,290 1,073,290 1,073,290
Transfers In 200,093 170,093 170,093
Other Revenues 136,670 175,670 175,670
Revenue Total 79,949,408 81,234,408 1,483,700 82,718,108 Expenditures
Police 27,844,530 27,994,492 363,000 28,357,492
Fire 20,544,117 20,765,552 786,920 21,565,472
Transfers Out 15,525,348 20,399,383 15,730 20,415,113
Public Services 6,036,175 6,283,545 0 6,283,545
Community Development 3,245,927 4,191,416 300,000 4,491,416 Administration 2,463,677 2,637,899 2,637,899
Finance 2,435,479 2,420,516 2,420,516
Human Resources 794,097 839,232 15,000 854,232
City Clerk 543,713 586,103 586,103
Expenditures Total 79,433,063 86,118,138 1,480,650 87,611,788 Revenue Less Expenditures 516,345 -4,883,730 3,050 -4,893,680 Adjustments To-Date
Reduce Trsfr from Successor Agency -30,000
Increase Tree Trimming Contract -55,175
Mid-Year Adj. -5,360,000
2nd Quarter BA 45,100
Total GF Budget Adjustments -5,400,075
Net Impact to General Fund -4,883,730 -4,883,730 3,050 -4,893,680 Table 2. General Fund Summary
Proposed changes to other funds are summarized below:

Other Funds Original
Budget
Current
Budget
Requested
BA
Amended
Budget
General Fund (110)
Revenue 79,949,408 81,234,408 1,483,700 82,718,108
Expenditures 79,433,063 86,118,138 1,480,650 87,611,788 Maintenance District #4 (184)
Revenue 3,350 999,616 999,616
Expenditures 1,160,285 1,245,338 100,000 1,345,338
Prop A (121)
Revenue 2,242,220 2,242,220 500,000 2,742,220
Expenditures 2,148,400 2,048,400 500,000 2,548,400
Waste Mgt Enforcement Grant (145)
Revenue 16,040 16,040 15,730 31,770
Expenditures 115,700 115,700 115,700
Table 2. Other Funds Summary
Attachments
Attachment No. 1 - Third Quarter Financial Report for Fiscal Year 2022-23 Attachment No. 2 - Resolution No. 2023-28
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Maintain Good Intergovernmental Relations
Enhance City Image and Effectiveness

CITY OF WEST COVINA

THIRD QUARTER FINANCIAL REPORT
Fiscal Year 2022-23
ATTACHMENT NO. 1
The City has completed the third quarter of Fiscal Year (FY) 2022-23. This report summarizes the overall
financial performance of the City for the period of July 1, 2022, through March 31, 2023, but it is not meant
to be inclusive of all finance and accounting
transactions. While the focus of the report is the
General Fund, summary financial information is also
provided for the Enterprise Fund and Special Revenue
Funds. The information presented is unaudited. This
report is intended to provide City Council and the
public with an overview of the City’s general fiscal
condition.

The revenue and expenditures per the Budget to YearTo-Date (YTD) Actual comparisons include adjustments for carryovers and any appropriations
made as of March 31, 2023. The information
presented reports revenues as they are received and
expenditures when paid. Revenues and expenditures
are only accrued at year end to account for such
activity in the correct fiscal year.

GENERAL FUND
The General Fund (GF) is the general operating fund
for the City. It provides the resources to sustain the
day-to-day activities and services to the community.

All nine departments receive support, either directly
or indirectly, from the General Fund.

Chart 1: GF Budget vs. YTD Actual
The General Fund original budget for FY 2022-23 was
$79.9 million in revenue, $79.4 million in
expenditures, and a total revenue less expenditures of
$516,345. With 75% of the year complete, General
Fund revenues are nearly 60% of budget, and
expenditures are at almost 64%.

GENERAL FUND REVENUE
The City’s two major General Fund revenue sources
are Property Tax and Sales Tax which make up 65% of
the General Fund revenues combined.

Table 1: GF Revenue – Budget vs. YTD Actual
Revenue Source Current
Budget YTD Actual %
Property Tax 28,986,300 17,024,422 58.7%
Sales Tax 23,142,000 13,099,028 56.6%
Other Taxes 9,446,000 5,714,574 60.5%
Charges for Services 7,578,220 5,144,066 67.9%
Licenses & Permits 4,393,810 4,456,123 101.4%
Revenue from Other
Agencies 2,628,625 428,767 16.3%
Cost Recovery 1,365,900 40,585 3.0%
Interdepartmental
Charges 1,196,200 892,658 74.6%
Use of Money &
Property 1,078,300 952,361 88.3%
Fines & Forfeitures 1,073,290 824,063 76.8%
Other Revenues 175,670 78,733 44.8%
Transfers In 170,093 11 0.0%
Grand Total 81,234,408 48,655,392 59.9%

PROPERTY TAX
The first major property tax distribution to the City for FY 2022-23 was received in December. Included in this
line item are Secured Property Taxes, Property Taxes
In-Lieu of Vehicle License Fees (VLF), and residual
payments from the dissolution of the former
redevelopment agency. Property tax is trending
slightly higher than last fiscal year, however; due to a lag in when revenues are received, we are only at

58.7% of estimated revenue for the year. Additionally,
the Property Taxes In-Lieu of Vehicle License Fees
$81.2 $86.1
$48.7 $55.0
$0
$20
$40
$60
$80
$100
Revenue Expenditures
Millions
Current Budget Sum of Actual YTD
City of West Covina Third Quarter Financial Report FY 2022-2023 2 | P a g e
(VLF) will be over the budget estimate by $885,700.

Staff has included this revenue in the proposed budget
amendment.

SALES TAX
As of March 31, 2023, the allocation received
represents approximately 56% of the total sales tax
allocation for the year. This is typical for this time of year as there is a two-month lag in sales tax
distributions. The City will continue to receive sales tax allocations with the final quarter allocation distributed by the California State Department of Taxes and Fees
Administration (CDTFA) in August 2023.

OTHER TAXES
This category includes Franchise Fees, Business
License Tax, Transient Occupancy Tax (TOT), and
Property Transfer Tax. At the end of the second
quarter $5.7M or 60.5% of the original budget
projection has been realized. This is due to a lag in
when these revenues are received. Additionally, these
taxes are not evenly disbursed throughout the year.

CHARGES FOR SERVICES
These revenues include plan check and zoning related
fees, recreation fees, interfund charges, police, and
fire fees. These fees are trending as projected at
$5.1M or 67.9% or through March 2023.

LICENSE & PERMITS
Revenues for licenses & permits include building and
engineering permits, and animal licenses. Revenue
projections are trending as projected. Overall, licenses and permits are at over 101% of the original budget
projection. This is mainly due to building permits,
electrical permits, and plumbing permits. Revenue and
offsetting expenditures (building and engineering
services) are proposed to be adjusted accordingly.

REVENUES FROM OTHER AGENCIES
This category includes Vehicle In-Lieu, State Mandated
Cost reimbursement revenue, and the exchange of
Prop A funds, which are the largest revenue source in
this category. Most of this revenue is received once
within the fiscal year. Additionally, the Prop A
Exchange (which accounts for $1.8 million) typically
does not occur until the end of the fiscal year.

COST RECOVERY
This category includes mutual aid cost reimbursement
for strike team deployments for the Fire Department.

Strike deployments have decreased over the past few
months and are expected to be less than in prior years.

INTERDEPARTMENTAL CHARGES
This category includes overhead chargebacks from
internal service funds: General Liability, Workers
Compensation, and Fleet Maintenance. These charges
are equally distributed across the fiscal year and billed monthly.

USE OF MONEY & PROPERTY
This category includes rental and interest income. Todate, interest income is trending over projected, at 88% or $952k.

FINES & FORFEITURES
This category includes late payment penalties,
collection agency fees, code fines, vehicle impound
fees, and administrative citations. Overall, fines and
forfeitures are at 76.8% of the original budget
projection. This is mainly due to vehicle code fines and administrative citations.

OTHER REVENUES
This category includes proceeds from auction,
advertising, final map, and other miscellaneous
revenue. At the end of the first quarter $78k or 44.8%
of the original budget projection has been realized.

TRANSFERS IN
This category includes a transfer from the Successor
Agency for administrative costs. This transfer is made
at the end of the fiscal year.

City of West Covina Third Quarter Financial Report FY 2022-2023 3 | P a g e

REVENUES PROJECTIONS
Revenue projections are revised with the Quarterly
Report based on revenue trends and activity to date.

The total proposed adjustment is an increase of
$1,483,700 in revenue to the General Fund.

Table 2: GF Revenue Projection
Revenue Source
Current
Budget
Proposed
Adj.

Revised
Projection
Charges for
Services 7,578,220 7,578,220
Cost Recovery 1,365,900 1,365,900
Fines &
Forfeitures 1,073,290 1,073,290
Interdepartmenta
l Charges 1,196,200 1,196,200
Licenses &
Permits 4,393,810 598,000 4,991,810
Other Revenues 175,670 175,670
Other Taxes 9,446,000 9,446,000
Property Tax 28,986,300 885,700 29,872,000
Revenue from
Other Agencies 2,628,625 2,628,625
Sales Tax 23,142,000 23,142,000
Transfers In 170,093 170,093
Use of Money &
Property 1,078,300 1,078,300
Grand Total 81,234,408 1,483,700 82,718,108

GENERAL FUND EXPENDITURES
As of March 31, 2023, with 75% of the year complete,
$55 million, or nearly 64% of the General Fund budget
has been expensed (see Table 3 below). Except for
Fire, Human Resources and Police, all departments are
below 75% for the quarter. Fire is tending over due to
overtime buybacks and workers’ compensation.

Human Resources is over due to influx in Legal
Services. Police is over due to overtime. These
overages are included in the proposed amendment.

Table 3: GF Expenditures – Budget vs. YTD Actual
Department Current
Budget YTD Actual %
Administration 2,637,899 1,970,962 74.7%
City Clerk 586,103 226,236 38.6%
Community
Development 4,191,416 2,101,803 50.1%
Finance 2,420,516 1,498,897 61.9%
Fire 20,765,552 16,299,300 78.5%
Human Resources 839,232 637,127 75.9%
Police 27,994,492 22,585,960 80.7%
Public Services 6,283,545 3,981,626 63.4%
Transfers Out 20,399,383 5,717,129 28.0%
Grand Total 86,118,138 55,019,039 63.9%

GENERAL FUND OVERTIME
Table 4 summarizes overtime by department within
the General Fund. Overtime is trending over budget
(over 75%) in Fire (99.7%), Police (83%), and Public
Services (93.9%). Public Services overtime is over due
to Special Events which are increasing to prepandemic levels and have been offset by salary savings. These overages have been included in the
proposed budget amendment.

Table 4: GF Overtime YTD
Department Current
Budget
YTD GF
Overtime %
Administration 4,030 770 19.1%
Community
Development
0 6,539 0.0%
Finance 2,860 1,153 40.3%
Fire 3,233,160 3,223,667 99.7%
Human Resources 0 152 0.0%
Police 3,125,240 2,593,894 83.0%
Public Services 107,110 100,600 93.9%
Grand Total 6,472,400 5,926,776 91.6%
City of West Covina Third Quarter Financial Report FY 2022-2023 4 | P a g e
Overall, total General Fund Revenue ($48M) less
Expenditures ($56M) for the year is negative $6
million. Negative revenue less expenditures is typical
for this time of year due to the lag in property and
sales tax revenue – the City’s primary revenue sources.

Except for FY 2020-21, when the City had an influx of
revenue due to the pension bonds, current year
revenue less expenditures are up from prior years.

Chart 2: GF 2
nd Quarter Revenue Less Expenditures by FY

PROPOSED BUDGET AMENDMENT
The original adopted General Fund budget for FY
2022-23 was for $79,433,063 expenditures. The
second quarter budget amendment had a positive net
impact on the General Fund of $45,100. The proposed
third quarter budget amendment has a positive net
impact on the General Fund of $3,050.

Table 5: Summary of Proposed GF Budget Amendment
Department Current
Budget
Requeste
d BA
Amended
Budget
Administration 2,637,899 2,637,899
City Clerk 586,103 586,103
Community
Development 4,191,416 300,000 4,491,416
Finance 2,420,516 2,420,516
Fire 20,765,552 786,920 21,565,472
Human Resources 839,232 15,000 854,232
Police 27,994,492 363,000 28,357,492
Public Services 6,283,545 6,283,545
Transfers Out 20,399,383 15,730 20,415,113
Grand Total 86,118,138 1,480,650 87,611,788
The proposed General Fund budget amendment totals
$1,480,650 and includes the following:

1. Community Development ($300k): Building &
Safety and Engineering fees are proposed to be
increased by $300,000 which is proportionately
to the influx in Building and Permit Revenue.

2. Fire ($796,920): A total of $574,7000 is proposed
to be added for overtime and workers
compensation overages. Additionally, $212,220
is proposed to be added for fees associated with
the Ground Emergency Medical transport
(GEMT) program. Staff anticipates receiving
approximately $238,000 for reimbursement from
prior years under this program. This is anticipated
to be reflected in the fourth quarter.

3. Human Resources ($15k): Funding is proposed to
be added to fund the influx of legal services.

4. Police ($363,000): Appropriations are proposed
to be increased by $340,000 for overtime and
$23,000 for psychological exam fees associated
with Concealed Carry Weapons (CCW) permits.

5. Transfers Out ($15.7k): A transfer from the
General Fund is proposed to cover non
reimbursable grant in the Waste Management
Enforcement Grant Fund.

ENTERPRISE FUND (FUND 375)
This fund accounts for the computer services provided
by the Police Department to other public safety
agencies for a fee. The programs are marketed to both
public and private agencies. The Police Department
also utilizes these products and services.

The fund has expended 24% of its budget year-todate. Revenue is generally billed once annually.

Table 6: Police Enterprise Budget vs. YTD Actuals
Type Current
Budget
YTD
Actual %
Revenue 645,080 18,030 2.8%
Expenditures 731,831 175,299 24.0%
Revenue Less
Expenditures (86,751) (157,269)
(11) (12)
(9)
(5) (4)
(6)
(15)
(10)
(5)
-
FYE18 FYE19 FYE20 FYE21 FYE22 FYE23
Millions
City of West Covina Third Quarter Financial Report FY 2022-2023 5 | P a g e
SPORTSPLEX (FUND 242)
This fund accounts for activity at the West Covina
Sportsplex, a recreation facility which amenities
include softball fields, a pavilion, playgrounds, and
restaurants.

Budget versus actual comparisons for both revenue
and expenditures for the Sportsplex are presented in
Table 7 below. As of the end of the second quarter,
revenue less expenditures were negative $410,515.

Table 7: Sportsplex Budget vs. YTD Actuals
Type Current
Budget
YTD
Actual %
Revenue
Transfers In 429,583 0 0.0%
Charges for Services 326,000 66,134 20.3%
Use of Money & Property 81,930 51,606 63.0%
Other Revenues 5,900 800 13.6%
Revenue Total 843,413 118,540
Expenditures
Materials & Services 526,035 275,358 52.3%
Salaries & Benefits 306,378 253,697 82.8%
Capital 11,000 - 0.0%
Expenditures Total 843,413 529,055
Revenue Less Expenditures 0 (410,515)

OTHER FUNDS
Table 8 shows budget versus actuals for other funds:

Table 8: Other Funds Budget vs. YTD Actuals
Fund Grouping Current
Budget YTD Actual %
Assessment Districts
Revenue 4,266,660 2,494,170 58.5%
Expenditures 5,229,809 2,638,371 50.4%
Capital Project
Funds
Revenue 3,486,600 2,998,207 86.0%
Expenditures 9,640,091 1,531,827 15.9%
CDBG
Revenue 2,284,395 346,145 15.2%
Expenditures 2,420,512 329,737 13.6%
CFD
Revenue 777,400 1,370,629 176.3%
Expenditures 5,202,421 91,519 1.8%
Debt Service
Revenue 15,446,948 425,679 2.8%
Expenditures 15,258,000 12,404,316 81.3%
Gas Tax
Revenue 3,063,915 1,913,918 62.5%
Expenditures 4,413,790 2,069,077 46.9%
Grant Funds
Revenue 11,401,547 402,856 3.5%
Expenditures 24,973,574 1,932,627 7.7%
Health Department
Expenditures 401,000 0 0.0%
Housing Authority
Revenue 22,790 54,053 237.2%
Expenditures 1,139,103 650,853 57.1%
Internal Service Funds
Revenue 7,813,952 6,750,686 86.4%
Expenditures 5,059,046 6,480,017 128.1%
Metro Funds
Revenue 7,061,700 7,203,008 102.0%
Expenditures 9,616,930 2,008,150 20.9%
Other SR Funds
Revenue 4,618,939 5,947,765 128.8%
Expenditures 9,306,631 3,401,590 36.6%
SB1
Revenue 2,989,658 1,867,160 62.5%
Expenditures 4,847,972 633,933 13.1%
Sewer Maintenance
Revenue 3,769,530 2,469,373 65.5%
Expenditures 7,651,997 1,923,546 25.1%
Successor Agency
Revenue 13,002,110 2,647,677 20.4%
Expenditures 1,682,558 1,729,840 102.8%
City of West Covina Third Quarter Financial Report FY 2022-2023 6 | P a g e
In addition to the proposed amendments in the
General Fund, the following is recommended:

1. Fund 121, Prop A ($500k): Revenue and
expenditures are proposed to be increased by
$500,000 to accommodate the Prop A Exchange.

2. Fund 184, Maintenance District #4 ($100k):

Public Services has responded to emergency tree
removal and clearing in the District to mitigate
the City’s risk and ensure public safety. This
increase in contract services is estimated to be
$100k.

3. Fund 145, Waste Mgt Enforcement Grant
($15,730): A transfer from the General Fund is
proposed to cover non reimbursable grant.

FOR MORE INFORMATION
This summary report is derived from detailed financial
information generated by the City’s Finance
Department. Additional financial information is
available online at www.westcovina.org.

ATTACHMENT NO. 2
RESOLUTION NO. 2023-28

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 (THIRD

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

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

SECTION 1. The City Council hereby approves Budget Amendment No. 2023-018, attached hereto as Exhibit A, for Fiscal Year 2022-23.

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

APPROVED AND ADOPTED this 16th day of May, 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. 2023-28 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 16th day of May, 2023, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
Exhibit A
City of West Covina
Fiscal Year 2022-23
Budget Amendment No. 2023-018
Third Quarter Financial Report
Fund Name (No.)
Current
Budget
Proposed
Amendment
Amended
Budget
General Fund (110)
Revenue 81,234,408 1,483,700 82,718,108
Expenditures 86,118,138 1,480,650 87,611,788
Revenue Less Expenditures -$4,883,730 $3,050 -$4,893,680 Prop A (121)
Revenue 2,242,220 500,000 2,742,220
Expenditures 2,048,400 500,000 2,548,400
Revenue Less Expenditures $193,820 $0 $193,820
Maintenance District #4 (184)
Revenue 999,616 999,616
Expenditures 1,245,338 100,000 1,345,338
Revenue Less Expenditures -$245,722 -$100,000 -$345,722 Waste Mgt Enforcement Grant (145)
Revenue 16,040 15,730 31,770
Expenditures 115,700 115,700
Revenue Less Expenditures -$99,660 $15,730 -$83,930
AGENDA ITEM NO. 4

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2022 RECOMMENDATION:

It is recommended that City Council receive and file the Single Audit Report on Federal Award Programs for the year ended June 30, 2022.

BACKGROUND:

The City's Single Audit, previously known as the OMB Circular A-133 audit, is an organization-wide financial statement and federal awards’ audit which is required when the City expends $750,000 or more in federal funds in one year. It is intended to provide assurance to the Federal Government that the City has adequate internal controls in place, and is generally in compliance with program requirements.

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

DISCUSSION:

Single Audit Report on Federal Awards
As a recipient of Federal grant funds in excess of $750,000, the City’s Single Audit Report on Federal Awards is required to be submitted in compliance with the financial reporting requirement in accordance with Title 2, Code of Federal Regulations (CFR), Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Single Audit Report (Attachment No. 1) includes the following:

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards;

1. Independent Auditor’s Report on Compliance for Each Major Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance;

2. 3. Schedule of Expenditures of Federal Awards;

4. Notes to the Schedule of Expenditures of Federal Awards;

5. Schedule of Findings and Questioned Costs; and

6. Summary Schedule of Prior Audit Findings.

Internal Control Over Financial Reporting
As part of the Single Audit, the City’s auditors considered the City's internal control over financial reporting to determine audit procedures that are appropriate in the circumstances for the purpose of expressing their opinions on the City's financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

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

There are no reported deficiencies in internal control over financial reporting that the auditors considered to be a material weakness nor significant deficiency for the year ended June 30, 2022.

There were no auditor findings to be reported in accordance with Uniform Guidance.

The Single Audit Report was reviewed by the Audit Committee on May 8, 2023.

LEGAL REVIEW:

The City Attorney's Office has reviewed this report.

Prepared by: Maria-Luisa Olea, Assistant Finance Director Additional Approval: Stephanie Sikkema, Finance Director Fiscal Impact
FISCAL IMPACT:

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

Attachments
Attachment No. 1 - West Covina Final Single Audit Report FY 2022 CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability

CITY OF WEST COVINA
Single Audit Report on
Federal Award Programs
June 30, 2022
ATTACHMENT NO. 1

CITY OF WEST COVINA

SINGLE AUDIT REPORT ON FEDERAL AWARD PROGRAMS
Year Ended June 30, 2022

TABLE OF CONTENTS
Page
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Independent Auditor’s Report on Compliance for Each Major Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9
Summary Schedule of Prior Audit Findings 12
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council
City of West Covina
West Covina, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of West Covina (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 22, 2022.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did 1 not identify any deficiencies in internal control that we consider to be weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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

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

December 22, 2022
2 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by Uniform Guidance City Council
City of West Covina
West Covina, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of West Covina’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City of West Covina, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City of West Covina and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the requirements referred to above.

3 Responsibilities of Management for Compliance
Management is responsible for compliance with requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a 4 deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information, of the City of West Covina, 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. We issued our report thereon dated December 22, 2022, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements.

The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

March 24, 2023
5 CITY OF WEST COVINA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended June 30, 2022
Federal Program Program Provided
Federal Grantor/Pass-Through ALN Identification Expend- to SubGrantor/Program or Cluster Title Number Number itures Recipients U.S. Department of Housing and Urban Development
Direct Assistance:

CDBG - Entitlement Grants Cluster
Community Development Block Grant 14.218 B-18-MC-06-0532 385,924 $ 11,939 $ Community Development Block Grant 14.218 B-19-MC-06-0532 756,707 - Community Development Block Grant 14.218 B-20-MC-06-0532 334,758 38,515 Community Development Block Grant 14.218 B-21-MC-06-0532 622,860 5,276 COVID-19 - Community Development Block Grant 14.218 B-20-MW-06-0532 48,373 40,000 Total - CDBG Entitlement Grants Cluster 2,148,622 * 95,730 Total Department of Housing and Urban Development 2,148,622 95,730 U.S Department of Justice
Direct Assistance:

COVID-19 - Coronavirus Emergency Supplemental Funds 16.034 2020-VD-BX-0264 34,491 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA-21-GG-01265-JAGX 20,715 - Equitable Sharing Program 16.922 CA1975 177,179 -
Total Department of Justice - 232,385
U.S Department of Transportation
Passed through the California Department of Transportation Office of Traffic Safety:

Highway Safety Cluster
Selective Traffic Enforcement Program 20.600 402PT-20 - 12,672 National Priority Safety Programs 20.616 TR22019 24,800 Total Highway Safety Cluster - 37,472
Passed through the California Department of Transportation Office of Traffic Safety:

Minimum Penalties for Repeat Offenders for Driving
While Intoxicated 20.608 164 AL-20 - 4,907
Total Department of Transportation - 42,379
U.S Department of Treasury
Direct Assistance:

Equitable Sharing Program 21.016 CA1975 938,795 * -
Passed through the County of Los Angeles
COVID-19 - Coronavirus Relief Fund 21.019 ENP202111 162,535 - Direct Assistance:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 1505-0271 9,197,139 * - Total Department of Treasury 10,298,469 -
6 CITY OF WEST COVINA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - Continued
Year Ended June 30, 2022
Federal Program Program Provided
Federal Grantor/Pass-Through CFDA Identification Expend- to SubGrantor/Program or Cluster Title Number Number itures Recipients U.S Department of Health and Human Services
Passed Through the County of Los Angeles:

Aging Cluster
COVID-19 - Special Programs for the Aging, Title III, Part C 93.045 ENP202111 - 183,157 Nutrition Services Incentives Program 93.053 ENP202111 - 20,840 Total Aging Cluster 203,997 -
Total Department of Health and Human Services 203,997 - U.S Department of Homeland Security
Passed Through the State of California, Office of Emergency Services:

Homeland Security Grant 97.067 EMW-2019-SS-00035 - 19,496 Total Department of Health and Human Services 19,496 -
Total Expenditures of Federal Awards $ 95,730 12,945,348 $ * = Major Program
7 CITY OF WEST COVINA

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2022
1) Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the City of West Covina (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.
2) Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in Note 1 of the notes to the City’s financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass through entity identifying numbers are presented when available. The City has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 3) Outstanding Loans
The City has made several housing rehabilitation loans to qualified applicants using Community Development Block Grants/Entitlement Grants (CFDA No. 14.218) funding. These loans bear interest up to 5% and are repaid when title to the property changes. There was one new loan funded in the current year. The outstanding balance of these loans at June 30, 2022 is $3,286,997. 4) Subrecipient Expenditures
During the fiscal year ended June 30, 2022, the City made payments to subrecipients which consisted of the following:
5) Major Programs
The City had three major programs for the year ended June 30, 2022, consisting of the Community Development Block Grant, Equitable Sharing Program and Coronavirus State and Local Fiscal Recovery Funds which had total disbursements of $2,148,622, $938,795, and $9,197,139, respectively. This amount calculates to 94.9% of the total disbursements from federal awards.

YWCA - Senior Citizen Assistance Program 25,530 $
Action Food Pantry 20,000
Project 29:11 12,000
Housing Rights Center 10,000
Coalition for the Homeless 10,000
Assistance League of Covina Valley 10,000
Shepherd's Pantry 8,000
Total Subrecipients 95,530 $
8 CITY OF WEST COVINA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION I – SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of Auditor’s Report Issued: Unmodified
Internal Control Over Financial Reporting:

Material Weakness(es) Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? None reported
Noncompliance Material to Financial Statements Noted? No Federal Awards
Internal Control Over Major Programs:

Material Weakness(es) Identified? No
Significant Deficiencies Identified not Considered
to be Material Weaknesses? None reported
Type of Auditor’s Report Issued on Compliance for Major Programs: Unmodified Any Audit Findings Disclosed that are Required to be Reported in Accordance With Uniform Guidance? No
Identification of Major Programs:

CFDA Numbers Name of Federal Program or Cluster

14.218 Community Development Block Grant

21.016 Equitable Sharing Program

21.027 Coronavirus State and Local Fiscal Recovery Funds Dollar Threshold used to Distinguish Between Type A
And Type B Programs: $ 750,000

Auditee Qualified as Low-Risk Auditee? No
9 CITY OF WEST COVINA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
There were no auditor’s findings to be reported in accordance with Government Auditing Standards.

10 CITY OF WEST COVINA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2022
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no auditor’s findings to be reported in accordance with Uniform Guidance. 11 CITY OF WEST COVINA

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2022
SECTION II – FINANCIAL STATEMENT FINDINGS
Finding No. 2021-001 Housing Loans Receivable Administration Current Status – Corrective action has been taken.

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS There were no auditor’s findings to be reported in accordance with the Uniform Guidance. 12 AGENDA ITEM NO. 5

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: ANNUAL REVIEW OF FINANCIAL POLICIES
RECOMMENDATION:

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

RESOLUTION NO. 2023-25 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST

COVINA, CALIFORNIA, APPROVING THE CITY OF WEST COVINA STATEMENT OF

INVESTMENT POLICY
BACKGROUND:

Financial policies are used to set the baseline standards for how the City will be managed financially. The City of West Covina has the following financial policies:

Budget Policy
This policy establishes a budget process to help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. (Attachment No. 1)
Debt Management Policy
This policy establishes guidelines for the issuance and management of debt. Section 2 of this policy requires the Finance Director to conduct an annual review of the policy and bring forward to the City Council any amendments deemed necessary and appropriate. (Attachment No. 2) Fund Balance Policy
This policy establishes the procedures for reporting unrestricted fund balance in the City's financial statements. Certain commitments and assignments of fund balance help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events, such as revenue shortfalls and unanticipated expenditures. (Attachment No. 3) Pension Funding Policy
This policy provides guidance in making annual budget decisions; demonstrates prudent financial management practices; creates sustainable and affordable budgets for pensions; and reassures bond rating agencies. Section III.F. of this policy requires the City to review the policy at least once every two years. (Attachment No. 4)
Investment Policy
The purpose of the Investment Policy is to establish prudent investment cash management guidelines for the City of West Covina, the Successor Agency to the former Redevelopment Agency of the City of West Covina, and the West Covina Community Facilities District. The investment goals of the City are safety, liquidity and yield. Section XX of this policy requires the City to review and approve the policy on an annual basis, with any modifications requiring City Council approval. (Attachment No. 5)
DISCUSSION:

It is a best practice, and for some policies a requirement, to conduct an annual review of these policies and bring forward any amendments deemed necessary and appropriate to the City Council for consideration.

Staff has reviewed these policies and is not proposing changes to any of the policies at this time.

In accordance with Section XX of the Statement of Investment Policy, staff recommends that the City Council adopt the proposed resolution to approve the Statement of Investment Policy, as approved by the City Council on May 17, 2022 through the adoption of Resolution No. 2022-48.

LEGAL REVIEW:

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

Prepared by: Maria-Luisa Olea, Assistant Finance Director Additional Approval: Stephanie Sikkema, Finance Director Fiscal Impact
FISCAL IMPACT:

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

Attachments
Attachment No. 1 - Budget Policy
Attachment No. 2 - Debt Management Policy
Attachment No. 3 - Fund Balance Policy
Attachment No. 4 - Pension Funding Policy
Attachment No. 5 - Investment Policy
Attachment No. 6 - Resolution No. 2023-25 (Approving Investment Policy) CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability A Well-Planned Community
City of West Covina
Budget Policy
Updated – May 19, 2020
ATTACHMENT 1

Page 2 of 19 ends

INTRODUCTION
This document defines the policies and procedures for the budget for the City of West Covina.

The procedures serve as a guide for maintaining the City's reputation for fairness and integrity of fiscal responsibility in preparation of the annual budget using proper checks and balances. The budget functions will be conducted using the highest ethical standards.

The objective of the budget policy is to establish a budget process that helps decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. The term "stakeholder" refers to anyone affected by or has a stake in the City of West Covina with priority to residents and West Covina businesses. The use of "shall" is synonymous with will.

Page 3 of 19 ends

POLICY PURPOSE
Policy and procedures have been established in order to provide the most efficient and effective operations of preparing the budget. The budget process will cover four main Goals:

1. Establish Broad Goals to Guide City Decision Making
• The City Council does adopt broad goals on an annual basis that provide overall direction for the City and serve as a basis for decision making. i. Assess community needs, priorities, challenges and
opportunities.
ii. Identify opportunities and challenges for City services, capital assets, and management.
iii. Develop and disseminate broad goals.

2. Develop Approaches to Achieve Goals
• The City will utilize specific policies, plans, programs, and management strategies to define how it will achieve its long-term goals. i. Adopt and review financial policies.
ii. Develop programs, services, operating, and capital policies and plans.
iii. Develop management strategies.

3. Develop a Budget Consistent with Approaches to Achieve Goals • A financial plan and budget that moves toward achievement of goals, within the constraints of available financial resources, is to be prepared and adopted.
i. Develop a process for preparing and adopting a budget. ii. Make choices necessary to adopt a budget.

4. Evaluate Performance and Make Adjustments
• Programs and financial performance will be continually evaluated, and adjustments made, to encourage progress toward achievinggoals. i. Monitor, measure, and evaluate performance.
ii. Make adjustments as needed.

Page 4 of 19 ends

Goal # 1 - Establish Broad Goals to Guide City Decision Making i. Assess Community Needs, Priorities, Challenges, and Opportunities A. Identify Stakeholder Priorities, Needs, and Concerns • The City Council meetings are an open forum providing opportunity to stakeholders to bring forthconcerns, needs, and priorities. • Among other mechanisms that might be considered are special public hearings, surveys, meetings of leading residents and resident interest groups, City strategic planning processes, meetings with City employees, and workshops involving City administrative staff and/or the CityCouncil.

B. Evaluate Community Condition, External Factors, Opportunities, and Challenges 1
• The City Council will regularly collect and evaluate information about trends in community condition, the external factors affecting it, opportunities that may be available, and problems and issues that need to be addressed.
• Some mechanisms will involve data gathering from pre-existing sources or through opinion surveys.
• Other mechanisms will be subjective, such as observing physical characteristics of geographic areas within the community or talking to residents, experts, business and community leaders, and legislative bodies. Formal studies of particular issues or trends may also beundertaken.
• The frequency and extensiveness of the evaluation should be consistent with how frequently the information changes and the relative importance of the information being gathered.
ii. Identify Opportunities and Challenges for City Services, Capital Assets, and Management
A. Assess Services and Programs, and Identify Issues, Opportunities, and Challenges
• The City shall inventory, identify, and assess the programs and services that it provides, their intended purpose, and factors that could affect their provision in the future.
1 The intent ofthis practice isforthe City to have up-to-date information with which to evaluate community conditions and major issues that are integral to the development and achievement of goals. In evaluating community condition, the City may want to consider local, regional, national, and global factors affecting the community (i.e. economic and financial factors, demographics, physical or environmental factors, changes in technology, etc.).

Page 5 of 19 ends

• Identify the changes in community conditions or other factors that may result in a program or service no longer addressing the needs it was intended to serve. Also, identify any changes in the operating environment that may affect the cost or effectiveness of service delivery in the future.
• The review will involve each department's assessment of the programs'
• purposes, beneficiaries and needs served, their success in achieving goals, and issues, challenges, and opportunities affecting their future provision.
• The inventory of programs and services will identify the organization responsible for service delivery if it is not the City itself. An evaluation of factors affecting service delivery will also be undertaken, such as funding issues; changes in technology; economic, demographic, or other factors that may affect demand; and legal or regulatory changes. These reviews will typically utilize a variety of information sources.
• Stakeholder involvement in these reviews is encouraged, such as through budget study workshops.

B. Assess Capital Assets, and Identify Issues, Opportunities, and Challenges • The City will identify and conduct an assessment of its capital assets, including the condition of the assets and factors that could affect the need for or ability to maintain the assets in the future. The capital assets of the City and their condition are critical to the quality of services provided, and hence are important in determining whether the needs and priorities ofstakeholders can be met.
• The City shall establish a process for inventorying its capital assets and assessing the need for and the condition of these assets. (See Capital Asset Management Policy)
• The City will assess and evaluate issues, challenges, and opportunities affecting the provision of capital assets in the future, such as community needs and priorities;the impact ofdeferred maintenance; funding issues; changes in technology; economic, demographic, or otherfactorsthatmay affect demand; andlegalorregulatory changes.

This review may be undertaken in conjunction with an evaluation of the program or service utilizing the particularassets.
• The assessment of capital asset condition must consider the impact of any deferred maintenance and needed improvements.

Identification or development of measurement standards for the condition of capital assets (including what is regarded as acceptable) are a valuable output of this practice.

Page 6 of 19 ends

C. Assess City Management Systems, and Identify Issues, Opportunities, and Challenges
• The City will identify and analyze its organization and management systems, including system strengths and weaknesses and factors that could affect these systems in the future. The support systems established to manage the City are integral to the achievement of goals.
• The City will inventory management systems by department and routinely identify, analyze, and address issues related to the City's organization and management systems and the environment in which these systems operate.
• Each department will include an examination of strengths and weaknesses of the organizational structure, interdepartmental communication and cooperation, communication of goals and directives, motivation of staff, conflict management, and provision of other internal needs and supportsystems.
• Thereviewwill alsoinclude anassessment ofmanagement policies, procedures, and systems that support achievement of goals. iii. Develop and Disseminate BroadGoals
A. Identify Broad Goals
• The City is to identify broad goals based on its assessment of the community it serves and its operating environment. Broad goals define the priorities and preferred future state of the community or area served. They provide a basis for making resource allocation decisions during the budget process and serve as a focal point for assessing and coordinating various long-range orstrategic plans. • Goals are to be expressed in written form and should reflect stakeholder concerns, needs, and priorities as well as factors affecting the community and the City.
• They must be sufficiently specific to help define the services to be emphasized and make difficult resource allocation decisions in the budget process.
• Define priorities among goals to improve their usefulness in allocating resources.

B. Disseminate Goals and Review withStakeholders
• The City will disseminate broad goals and review them with stakeholders. Disseminating and reviewing goals helps foster participation, awareness, consensus, pride, and a sense of direction. • Dissemination may occur by conducting public forums and by publishing goals in key public documents, such as strategic and other planning documents and budget documents. Electronic media may also be used including the City website.

Page 7 of 19 ends

Goal # 2 - Develop Approaches to Achieve Goals
i. Adopt and Review Financial Policies
A. Develop Policy on Stabilization Funds
• The City developed policies to guide the creation, maintenance, and use of resources for financial stabilization purposes. (See Fund Balance Policy2).
• The policy establishes how and when the City builds up stabilization funds and will identify the purposes for which they may beused.

B. Develop Policy on Fees and Charges3
• The City has established a master fee schedule that identifies the manner in which fees and charges are set and the extent to which they cover the cost of the service provided.
• The fee schedules are to be evaluated annually in the budget process to review all fees and charges, the level of cost recovery for services and the reasonfor any subsidy, and the frequency with which costof- services studies will be undertaken. • Policies on fees and charges are publicly available and summarized in materials used in budget preparation.

C. Develop Policy on Debt Issuance and Management
• The City has established a Debt Management Policy to guide the issuance and management of debt. Issuing debt commits the City's revenues several years into the future and may limit the City's flexibility to respond to changing service priorities, revenue inflows, or cost structures. Adherence to a debt policy helps ensure that debt is issued and managed prudently in order to maintain a sound fiscal position and protect credit quality. compliance.
2 The Fund Balance Policy is reviewed annually to assess the alignment with set goals established in the budget process. The City should evaluate reserves set in the fund balance policy. These funds may be used at the City's discretion to address temporary cash flow shortages, emergencies, unanticipated economic downturns, and one-time opportunities. 3 Costs of service include direct and indirect costs such as operating and maintenance costs, overhead, and charges for use of capital. The City may choose not to recover all costs, but it must identify such costs. Reasons for not recovering full costs will be identified and explained. State and local law may govern the establishment of fees and charges.

Page 8 of 19 ends

• Debt policies are available to the public and other stakeholders.

Because these policies are essential to budget decision making, particularly capital budgets, they will be reviewed by decision makers during the annual budget process and as an appendix in the budget document. Debt Policy will be reviewed for every debt issuance for The City Council has a debt policy and compiles it with other financial policies.

D. Evaluate the Use of Unpredictable Revenues
• One-time or short-term revenues will be identified clearly in the budget process. Unpredictable revenue sources cannot be relied on as to the level of revenue they will generate.
• For each major unpredictable revenue source,the City identifiesthose aspects of the revenue source that make the revenue unpredictable.

Such as, grant supported operating costs.
• One-time revenues will never cover the costs of continuing operating budgets. One-time revenues will only cover one-time costs such as matching requirements, one-time purchases, one-time payments to unfunded liabilities, etc.

E. Develop Policy on Balancing the Operating Budget
• The City defines its Balanced Operating Budget as uses of resources for operating purposes does not exceed available resources over the budget period, July 1 to June 30th.
• The City is committed to a balanced budget under normal circumstances and will provide disclosures when a deviation from a balanced operating budget is planned or when it occurs. A balanced budget is a basic budgetary constraint intended to ensure that the City does not spend beyond its means.
• Operating resources (revenues) includes all taxes, licenses and permits, fines and forfeitures, use of money and property, charges for services, interdepartmental charges, miscellaneous revenues and intergovernmental revenues in the General Fund, Special Revenue Funds, Capital Projects, Debt Service Funds, and Internal Service Funds.
• Operating uses(expenditures)arepersonnelservice costs,material and service costs, capital purchases, and interdepartmental allocations. ii. Develop Programs, Services, Operating, and Capital Policies and Plans A. Prepare Policies and Plans to Guide the Design of Programs and Services • Service and programs directly relate to strategies identified by the City to achieve set goals.

Page 9 of 19 ends

• Each department of the City, such as City Council, City Manager, City Clerk, Police, etc. identify the programs and services along with groups or populations to be serviced, service delivery issues, specific programs listed with standards of performance (including level of service standards or other measures to gauge success), expected costs, time frames for achievement of goals, issues pertaining to organization structure, and priorities for service provision. • Each department identifies their goals and achievements by department which should correlate to overall goals of the City. • Each department identifies the resources (revenues) used to obtain the goals.

B. Prepare Policies and Plans for Capital Asset Acquisition, Maintenance, Replacement, and Retirement
• The City will annually evaluate the need to budget for acquisition, maintenance, replacement, and retirement of capital assets to help ensure that needed capital assets or improvements receive appropriate consideration in the budget process and that older capital assets are considered for retirement or replacement. This is necessary to plan for large expenditures and to minimize deferredmaintenance. • Annual budget evaluation may address inventorying capital assets and evaluating their condition, criteria for acceptable condition, criteria for continued maintenance versus replacement or retirement of an existing asset, and identification of funding for adequate maintenance and scheduled replacement of capital assets.
• Any assets identified as corning due for replacement will be addressed in multi-year budgets to address replacement and renewal schedules and must recognize the linkage of capital expenditures with the annual operating budget.
• Plans for addressing deferred maintenance may also be an output of this practice. Once adopted, which may be included in the Capital Improvement Program (CIP) Budget, the plan will be made publicly available, particularly as set forth in budget, management, and planning documents.

C. Develop Options for Meeting Capital Needs and Evaluating Acquisition Alternatives4
• The City develops Capital Improvement Program Budgets to address 4 City is to conduct quarterly reviews of existing capital projects in relation to goal attainment and to maintain, renovate, and replace, City facilities. Various considerations to be part of evaluation (i.e. costs, impacts on service, funding levels, use of non-General Funds, stakeholder input, etc.).

Page 10 of 19 ends

• capital needs that are consistent with financial, programmatic, and capital policies and to evaluate alternatives for acquiring the use of capital assets. Capital project planning is necessary to give adequate consideration to longer-range needs and goals, evaluate funding requirements and options, and achieve consensus on the physical development of the community.
• Annually in the budget process the City evaluates alternative mechanisms to help ensure that the best approach for providing use of acapital asset orfacility is chosen based on the policies and goals ofthe City.
• The City uses the CIP Budget to identify capital projects that are needed to achieve goals and a general time frame in which these assets will be needed.

D. Develop Performance Measures
• The City will annually, during the budget process, review and develop and utilize performance measures for functions, programs, and/or activities. Performance measures are used for assessing how efficiently and effectively functions, programs, and activities are provided and for determining whether program goals are being met. • Performance measures may be linked to specific program goals and objectives.
• The measures are to be valid, reliable, and verifiable. • Whenever feasible, they should be expressed in quantifiable terms. • Measures will be reported in periodic reviews of functions and programs, staff reports, and should be integral to resource allocation decisions.
• They also are to be reported in the budget document and may be reported in separate management reports or reports to residents. • Different aggregations of performance measures may be appropriate for different audiences.
iii. Develop Management Strategies
A. Develop Strategies to Facilitate Attainment of Program and Financial Goals • The City has an organizational structure and management strategies that facilitate attainment of program and financial goals. Goals are more likely to be achieved if organizational and management strategies are developed to support and encourage organizational and individual performance directed toward goal attainment. • The City has developed a means to review, improve, and implement strategies that encourage the City and its employees to work toward achievement of goals.
• These strategies include both positive incentives and penalties.

Page 11 of 19 ends

• They also include support systems such as technology support, education, and training.

B. Develop Mechanisms for Budgetary Compliance
• Finance provides monthly budget to actual reports to each department head and City Manager to ensure proper review for compliance with the adopted budget. Appropriate management processes and systems allow the City to detect and correct significant deviation if it occurs.
• On a quarterly basis Finance provides budget to actual reports to department heads and City Council.
• These reports provide measures of departments' budget. • Budgetary compliance is encouraged through use of data collection and reporting systems that control disbursements of funds and that facilitate the evaluation of revenue and expenditure trends and financial projections.
• City Manager will address any deviation of the budget to actual report (i.e. budget amendments).
• The City has instituted procedures to review the budget quarterly and decide on actions to bring the budget into balance, if necessary.

C. Develop the Type, Presentation, and Time Period of the Budget • The City will annually present the budget, which will cover the fiscal year July 1st through June 30th. The type of budget, the time period covered, and the manner of presenting materials in the budget documents can have a significant practical impact on the City's approach to planning, control, and overall management of its programs, services, and finances, and on the quality of information provided to stakeholders.
• The output of the budget will provide fund level and department level program information for the full fiscal year. The adopted budget will be provided to all stakeholders on the City website.
• A formal review will be undertaken periodically to ensure that the budget type, time period, and approach to presenting the budget continue to meet the needs and priorities of the City. Such a review will be broadly focused, and not directed simply at the format of individual pages.

Page 12 of 19 ends

Goal# 3-Develop aBudget Consistent with Approaches toAchieve Goals i. Develop a Process for Preparing and Adopting a Budget A. Develop a Budget Calendar
• The City publishes a comprehensive budget calendar that specifies when budget tasks are to be completed and that identifies timelines for those tasks. This includes budget workshops available to the public.

Stakeholders need to be aware of when key budget tasks, events, and decisions will occur so they have an opportunity to plan and to participate in the process. The preparation of a calendar helps ensure that all aspects of the budget process have been considered and that adequate time has been provided.
• Multiple calendars can be produced, each with different levels of detail and emphasis to meet the needs of the different types of stakeholders. (i.e. Internal Calendar and Public Calendar). • Calendars list the dates of key events and deadlines. • At least one calendar describes the overall budget and planning process and identify roles, responsibilities, and assignments. • To ensure the greatest impact, calendars will identify when and how stakeholders can participate in the process.

B. Develop Budget Guidelines and Instructions
• The City will develop annual general policy guidelines and budget preparation instructions for each budget cycle and accompany the internal budget calendar. Budget guidelines and instructions help ensure that the budget is prepared in a manner consistent with government policies and the desires of management and the City Council. Instructions are necessary so that all participants know what is expected, thereby minimizing misunderstanding and extra work. • Budget guidelines are specific to the particular budget under development and will incorporate relevant aspects of the City's financial policies.
• Each department is required to provide the Projected Actuals for revenues and expenditures of the current year for their respective department.
• Each department is required to provide Proposed Revenues and Appropriations for the upcoming fiscal year for their respective department.
• Guidelines and instructions may set forth financial constraints and key assumptions that will be used to guide development of the budget, as well as policy direction.
• Instructions often include sample forms to be completed by the operating departments. Guidelines and instructions are prepared in a

Page 13 of 19 ends

written format but may also be presented in an electronic format or through training and/or an oral presentation.

C. Develop Mechanisms for Coordinating Budget Preparation and Review • The City has developed mechanisms and assigned responsibilities to provide for overall coordination of the preparation and review of the budget. The complete budget process involves many levels, departments, and individuals in the City, as well as a number of distinct processes and disparate groups of stakeholders. Coordination is needed to ensure that processes move forward as planned, to prevent confusion and misinformation, and to ensure appropriate stakeholders are involved.
• The Finance Department is the single point of coordination for all departments.
• The Finance Department's coordination process will involve a number of tasks: developing a calendar, identifying responsibilities for completing various tasks, ensuring that various parts of the budget process are properly integrated, keeping the process on schedule, producing reports, identifying issues and problems, and ensuring that other requirements are met and quality standards aremaintained. • The Finance Director has ultimate responsibility for coordinating the budget process and will respond to stakeholder issues and concerns that arise in the context of the budget process with direction from the City Manager and City Council.

D. Develop Procedures to Facilitate Budget Review, Discussion, Modification, and Adoption
• The City has a process to facilitate the review, discussion, modification, and adoption of a proposed budget. Appropriate procedures are needed to resolve conflicts, to promote acceptance of the proposed budget by stakeholders, and to assist in timely adoption of the budget.
• This process allows stakeholders to be informed of the budget proposal and to allow the legislative body to achieve consensus and adopt a budget.
• Some examples include: small group meetings, hearings, workshops, independent analysis, specific decision-making techniques and procedures, conflict resolution processes, and methods for presenting portions of the budget.

Page 14 of 19 ends

E. Identify Opportunities for Stakeholder Input
• The City provides opportunities in the budget process for obtaining stakeholder input.5 By definition, stakeholders are affected by the City's resource allocation plans and service and program decisions.

Stakeholders should have clearly defined opportunities to provide input. This helps ensure that stakeholder priorities are identified and enhances stakeholder support for the approved budget.
• Stakeholder input can be obtained in a number of ways, including public hearings, advisory commissions, informal conversations, roundtable briefings, televised and live online broadcast, opinion surveys, neighborhood meetings, office hours, letter writing, telephone calls, and e-mail.
• The budget calendar should identify specific opportunities for resident input where City officials are available to explain issues and choices and to receive comments.
ii. Make Choices Necessary to Adopt a Budget
A. Prepare and Present a Recommended Budget
• The City will prepare and present a recommended comprehensive program and financial plan (the ''budget'') for review by stakeholders and consideration for adoption by the City Council. A complete plan is necessary to allow stakeholders to be informed on how well all the different aspects of the plan fit together and whether there is an appropriate balance of resources and assigned uses.
• The proposed budget will consist of a set of recommended actions regarding programs and servicesto be funded, including service level, quality, and goals to be achieved.
• It will also identify funding requirements and sources of funds and provide the supplemental information necessary to review the plans. • The budget is to be consistent with policies and goals set by the City. • The recommended budget must also comply with any statutory requirements.
5 The budget process should include opportunities for all stakeholders to participate. A general-purpose public hearing shortly before final decisions are made on the budget is not adequate as the sole means of soliciting stakeholder input, especially on major issues. The process developed for obtaining stakeholder input should ensure that information is gathered in a timely and complete manner to be useful in budget decision making, such as City workshops.

Page 15 of 19 ends

B. Present the Budget in a Clear, Easy-to-use Format
• Budget documents and related materials made available to stakeholders is to be presented in a clear and readily comprehensible format. The budget is the guide that determines the direction of the City. It is arguably the single most important document routinely prepared by the City. To be usable, it not only must contain the appropriate information, but must also be prepared in a manner that is clear and comprehensible.
• Some items in a budget document that will assist the reader include:
a table of contents, summaries, a consistent format, high-level summary information that describes overall funding sources and the organization as a whole, a description of the overall planning and budgeting process and the interrelationships of those various processes,supplementary information about the City and the area for which it has responsibility, charts and graphs to better illustrate important points, succinct and clearly- written summaries, uncluttered pages, and detailed information placed in appropriate locations so that it does not overwhelm the reader.
• Similar requirements apply to the non-written means (e.g., audio, video) of presenting budget material to stakeholders at various times during the budget process.

C. Adopt the Budget
• The City should adopt a budget that meets all statutory requirements prior to the beginning of the fiscal year.6 The timely adoption of a budget permits the City to proceed with implementing programs and services that further the achievement of goals.
• The adopted budget will clearly present the financial, operating, and capital plan.
• It includes all operations and funds, although not necessarily at the same level of detail.
• Non-appropriated funds, revolving funds, and any other planned revenues and expenditures are alsoincluded.
• Whenever feasible, the adopted budget should include (though not necessarily in a single document) all statutorily required materials such as the appropriation ordinance.
• Legally required documents that otherwise do not contribute to an understanding of the budget may be included as an appendix. 6 If there are delays in adopting the budget, actions are to be taken to minimize uncertainty when the new budget period starts, as appropriate. A continuing appropriation may be legally required.

Page 16 of 19 ends

Goal# 4 - Evaluate Performance and Make Adjustments
i. Monitor, Measure, and Evaluate Performance
A. Monitor, Measure, and Evaluate Program Performance
• The City quarterly evaluate the performance of the programs and services it provides. The City functions, programs, and activities will also be periodically reviewed to determine whether they are accomplishing intended program goals and making efficient use of resources.
• Performance measures, including efficiency and effectiveness measures, are to be presented in basic budget materials, including the operating budget document, and be available to stakeholders. • Performance measures should be reported using actual data, where possible.
• At least some of these measures should document progress toward achievement of previously developed goals and objectives. • More formal reviews and documentation of those reviews should be carried out as part of the overall planning, decision-making, and budget process.

B. Monitor, Measure, and Evaluate Budgetary Performance • At a minimum, the City will, on a quarterly basis, evaluate its financial performance relative to the adopted budget. Regular monitoring of budgetary performance provides an early warning of potential problems and gives
decision makers time to consider actions that may be needed if major deviations in budget-to-actual results become evident. It is also an essential input in demonstrating accountability.
• Budget-to-actual or budget-to-projected actual comparisons of revenues, expenditures, cash flow, and fund balance willbe reviewed quarterly during the budget period. Staffing levels are also monitored. • Comparisons for at least the current year will be included in the budget document and be generally available to stakeholders during discussionsrelated
to budget preparation and adoption.
• Expenditures shall be limited to the amount budgeted. Expenditures shall be continuously monitored and projected to the end of the year.

If the projected expenditures exceed the budget, appropriate remedies shall be implemented immediately.

C. Monitor, Measure, and Evaluate Financial Conditions
• The City will monitor and evaluate its financial condition at least quarterly. The financial health of the City is critical to its ability to meet

Page 17 of 19 ends

• the needs of stakeholders. Financial condition should be evaluated to identify potential problems and any changes that may be needed to improve performance over both the short and long terms. • Financial indicator measures often are developed to monitor financial condition and achievement of explicitly set financialgoals. • Indicatorsto monitor factorsthat affect financial performance are also reported.
• A report on financial condition will be periodically prepared and updated.
• The report may be a separate document or incorporated into other relevant documents, including the budget document.

D. Monitor, Measure, and Evaluate External Factors
• The City is to constantly monitor and evaluate external factors that may affect budget and financial performance and achievement of goals atleast quarterly. Factors outside the City's control, such as the national or regional economy, demographic changes, statutory changes, legislation, mandates, and weather, may affect achievement of stated goals. Monitoring these factors helps the City to evaluate and respond to the effect of these external influences on goals, programs, and financial plans.
• External factors that are likely to be important in achieving goals are to be identified and monitored regularly.
• The results of this analysis will be factored into the assessment of programand financial performance and considered in adjusting these programs.
• Trends and significant issues may be described in reports to stakeholders discussing program, budget, and financial performance. • The assessment of external factors is to be reported, at least in summary form, and available to stakeholders.

E. Monitor, Measure, and Evaluate Capital Improvement Program Implementation
• The City will monitor, measure, and evaluate capital improvement program implementation at least quarterly. Monitoring the status of capital projects helps to ensure that projects progress as planned, problems (such as delays in key milestones and cost overruns) are identified early enough to take corrective action, funds are available when needed, and legal requirements are met.
• Reports on capital project implementation will be prepared for decision makers and otherstakeholders.
• Summary information is to be considered for projects that are progressing as planned.
• Project milestones, such as dates for completion of such tasks as planning, land acquisition, engineering and design, and construction,

Page 18 of 19 ends

should be identified and progress in meeting these milestones should be reported atleast annually, and as available.
• The City will monitor quality compliance and financial performance. ii. Make Adjustments asNeeded
A. Adjust the Budget
• The budget may be adjusted during the budget period should unforeseen events require changes to the original budget plan. The budget isa plan based on a set of assumptions that may not always match actual experiences during the execution phase. The City should watch for significant deviations from expectations and make timely adjustments so that the plan is consistent with revised expectations. • The City has procedures in place to determine when deviations from the budget plan merit adjustments to the budget.
• Budget adjustments, whether to programs or to revenues and expenditures,are to be made as appropriate in a timely manner.7 • Any changes to the budget are to be reported.
• The timing and way thisis done depends on the stakeholder group and the level of materiality of the changes.

B. Adjust Policies, Plans, Programs, and Management Strategies • The City may adjust its policies, plans, programs, and management strategies during the budget period, as appropriate. Changing conditions or programs and services that are not producing the desired results or efficiently utilizing resources may require adjustmentsforthe City to continue tomeetthe needs of stakeholders and to meet its own goals.
• The City's management team will evaluate their monthly budget to actual report for review, decision making, and implementation of changes to policies, plans, programs, and management strategies during the budgetperiod.
• Adjustments are based on findings obtained from monitoring and assessing program and financial results, stakeholder input, and external circumstances.
• Regular briefings to management and elected officials on the contents of the reports permit timely adjustments as needed to the plan or program activities.
7 Budget adjustments may be administrative or legislative depending on the adjustment needed and on statutory requirements such as the legal level of control of the budget appropriations.

City Manager may make adjustment within the fund across departments as long as the overall appropriation is not changed.

Page 19 of 19 ends

C. Adjust Broad Goals, if Appropriate
• The City will modify or change its broad goals if conditions change sufficiently that these goals are no longer appropriate. Goals may need to be adjusted in response to new information about program results, stakeholder needs, and external circumstances in order to be more relevant for the community or more practically attainable. • The City department heads meet to evaluate performance or changes in the annual budget plan to ensure that goals are reviewed during thebudget period
and adjusted when appropriate.
• Adjustments are based, in part, on findings obtained from monitoring and assessing program and financial results, stakeholder input, and external circumstances.
• Opportunities and challenges facing the City are also to be considered.

Page 1 of 6 ends

City of West Covina
Debt Management Policy
Adopted – May 19, 2020
ATTACHMENT 2

Page 2 of 6 ends

CITY OF WEST COVINA

DEBT MANAGEMENT POLICY
Section 1 – Introduction
The purpose of this Debt Management Policy (Policy) is to establish guidelines for the issuance and management of debt for the City of West Covina and all affiliated city entities (collectively, the “City”). While the City prefers to finance projects on a pay-as-you-go basis, in the event debt is necessary, this Policy confirms the commitment of the Council, management, staff, advisors and other decision makers to adhere to sound financial management practices, including full and timely repayment of borrowing, and achieving the lowest possible cost of capital within prudent risk parameters.

Debt Issuance Priorities:

1. Achieve the lowest cost of capital while maintaining compliance with state and federal laws and regulations

2. Maintain a prudent level of financial risk and maintain the City’s sound financial position

3. Preserve future financial flexibility

4. Ensure that all debt is structured to maximize the benefit to both current and future taxpayers, ratepayers, and constituents of the City

5. Maintain full and complete financial disclosure and reporting

6. Obtain and maintain the highest practical credit ratings consistent with maximizing the benefit to both current and future taxpayers, ratepayers and constituents of the City.

7. Maintain good relations with all investors in City debt

8. Ensure that the City’s debt is consistent with the City’s planning goals and objectives and capital improvement program or budget, as applicable
This policy shall govern the issuance and management of all debt and lease financing funded from the capital markets (including private placement and bank loans), including the selection and management of related financial services and products and investment of bond and lease proceeds. While adherence to this policy is required in applicable circumstances, it is recognized that changes in the capital markets, agency programs and other unforeseen circumstances may from time to time produce situations that are not covered by this policy and will require modifications or exceptions to achieve policy goals. In these cases, management flexibility is appropriate, provided specific authorization from the City Manager and City Council is obtained.

Section 2 – Responsibilities
The City’s debt program for all City funds shall be operated in conformance with applicable federal, state, and other legal requirements, including the West Covina Municipal Code.

Responsibility for managing the coordinating of all activities related to the structure, issuance and administration of all long and short-term debt obligations shall rest with the Finance Director.

No debt obligations shall be presented to the City Council for their authorization without the joint assessment and recommendation of the City Manager, Finance Director and the City Attorney. Departments planning debtfinanced capital programs or equipment acquisitions shall work closely with the City Manager, Finance Director ATTACHMENT 2

Page 3 of 6 ends

and City Attorney to provide information and otherwise facilitate the issuance and on-going administration of debt.

The Finance Director shall have the authority to periodically select service providers as necessary to meet legal requirements and minimize debt costs. Such services may include financial advisory, underwriting, trustee, verification agent, escrow agent, arbitrage consulting, special tax consulting, bond and disclosure counsel, and other consultants as needed. To achieve an appropriate balance between service and cost, the Finance Director is authorized to select such service providers through sole source selection or a competitive process using a Request for Proposals.

The Finance Director shall be responsible for maintaining good communications with rating agencies, investors and other debt related service providers about the City’s financial condition and will follow a policy of full disclosure.

The Finance Director shall conduct an annual review of the Policy and bring forward to the City Council any amendments deemed necessary and appropriate.

Section 3 – Debt Considerations
The City will evaluate the need for debt financing a project compared to a pay-as-you-go financing methodology.

The City prefers to fund projects on a pay-as-you-go basis.

A. Factors favoring a pay-as-you-go methodology include:
a. Current projected revenues and fund balances available are sufficient to fund the project b. Long term total costs are lower due to the avoidance of interest expense c. Existing debt capacity is insufficient to absorb the additional debt without adverse impact to credit ratings
d. Market conditions are unfavorable or present difficulties in marketing B. Factors favoring debt financing include:
a. Current and projected revenues available for debt service are sufficient and reliable so that financing can be marketed with investment grade credit ratings b. Market conditions present favorable interest rates and demand for the City financings c. A project is mandated by state or federal requirements, and current resources are insufficient or unavailable to fully fund the project
d. The project is immediately required to meet or relieve capacity needs or emergency conditions and current resources are insufficient or unavailable
e. The savings from the project are sufficient to pay for the debt service costs The City will review debt limits in conjunction with any proposed financing. It is the City’s goal to limit debt service costs in the General Fund to no more than twenty-five (25%) percent of revenues, including transfers.

Payments on bonds that are tied to a specified revenue stream other than General Fund resources (e.g. enterprise revenue bonds, tax allocation bonds, and land secured bonds) are not subject to the twenty-five (25%) percent limit. The debt limit will exclude pension obligation bonds and other refunding bonds. Each proposed ATTACHMENT 2

Page 4 of 6 ends

financing will be individually assessed by the Finance Director and subject to the approval policies contained herein.

Section 4 – Debt Term
The City Council recognizes that any new debt obligation will have an impact on the long-term affordability of all outstanding debt and any future planned debt, as well as budgetary impacts associated with the maintenance and operating costs of debt financed facilities.

A. Term of Debt – Debt will be structured for the shortest period possible, consistent with a fair allocation of costs to current and future beneficiaries or users. The weighted average maturity of the debt (or the portion of the debt allocated to the project) shall not exceed the useful life of the project.

B. Debt Repayment – Typically, the City desires level debt service payments over the term of the debt.

However, the cost of capital, financial risk, current economic conditions, future financial flexibility, credit ratings and available cash flow will be evaluated to determine the most appropriate method of debt amortizations for each debt issue. Notwithstanding the above, back loading of debt service will be evaluated as the circumstances dictate. Back loading occurs when debt service payments are lower in the initial years of a debt term and higher toward the later years of a debt term.

Section 5 – Debt Issuance
The City has the capacity to issue long and short-term debt and to refund any outstanding debt. The following section details the purposes of debt issuance and the method of determining the type of sale for such debt.

A. Long-term Debt – Long-term debt financings are appropriate when the project to be financed is necessary to provide basic services and long-term debt may be used to finance the acquisition or improvement of land, infrastructure, facilities or equipment for which it is appropriate to spread the costs of such over more than one budget year. Long-term debt may be used to fund capitalized interest, cost of issuance, required reserves and any other financing related costs that may be legally capitalized.

Long-term debt shall not be used to fund City operating costs.

B. Short-term Debt – Short-term debt will be considered as an interim source of funding in anticipation of long-term debt. Short-term debt may be issued for any purpose for which long-term debt may be issued, including capitalized interest and financing related costs. Short-term debt is also appropriate to address legitimate short-term cash flow requirements during a given fiscal year to fund the operating costs of the City to provide necessary public services. The City will not engage in short-term borrowing solely for the purpose of generating investment income.

C. Financings on Behalf of Other Entities - The City may also find it beneficial to issue debt on behalf of other governmental agencies or private third parties to benefit the public purposes of the City. In such cases, the City shall take reasonable steps to confirm the financial feasibility of the project to be financed and the financial solvency of any borrower and that the issuance of such debt is consistent with the policies set forth herein.

D. Refunding – Refunding opportunities will be identified by periodic reviews of outstanding debt obligations. Refunding will be considered when there is a net economic benefit from the refunding of a least three (3) percent on a net present value basis. Non-economic refunding may be undertaken to achieve City objectives relating to changes in covenants, call provisions, operational flexibility, tax status, issuer, or other non-economic factors related to the debt.

ATTACHMENT 2

Page 5 of 6 ends

E. Method of Sale – The City shall have the flexibility to determine which method of sale is appropriate for each debt issuance in light of market interest rates and City objectives. Determination of the appropriate method of sale will rest collectively with the City Manager, Finance Director, and City Attorney. Potential methods of sale include:
a. A competitive bidding process through which interested underwriters submit proposals to purchase an issue of bonds and the award is based on, among other factors, the lowest offered true interest cost.
b. A negotiated sale process through which a selected underwriter, or team of underwriters, negotiate the terms of an issue and sell bonds in the municipal market. Negotiated sales are often used where there are unusual conditions or unique considerations related to the bond sale. A negotiated sale is subject to approval by the City to ensure that interest costs are in accordance with comparable market interest rates.
c. A private (or direct) placement sale typically occurs when the financing can or must be structured for a single or limited number of purchasers or where the terms of the private placement are more beneficial to the City than either a negotiated or competitive sale.

F. Pooled Financing – The City may also consider use of pooled financing as a method of accessing the capital markets. Use of pooled financing will be evaluated collectively by the City Manager, Finance Director, and City Attorney.

Section 6 - Debt Structure
A. Credit Ratings – The City seeks to obtain and maintain the highest possible credit rating when issuing debt. The City will seek credit ratings from at least one major credit rating agency on all debt, as appropriate. Ratings from multiple rating agencies may be sought for a single debt issue based upon the market conditions at the time of the issuance.

B. Fixed Rate and Variable Rate Debt – The City prefers to issue fixed rate debt. Variable rate debt may be used, if market conditions warrant at the time of issuance. It is acknowledged that variable rate debt passes an unknown obligation onto future budget cycles.

C. Call Provisions – The timing for when bonds are callable varies and is determined at the time of pricing such bonds. The City’s preferred structure is to negotiate for optional redemption at par in order to maintain flexibility in the future, but a final decision will be made on a case by case basis after evaluation of the marketability of the City’s bonds.

D. Credit Enhancements – The City may use credit enhancements (letters of credit, bond insurance, surety bonds, etc.) when such credit enhancements prove to be cost effective. The City will consider the use of credit enhancements on a case-by-case basis.

E. Reserve Funds – A debt service reserve fund provides an added measure of security to bond holders and may improve the credit rating and thus lower the costs of borrowing. Reserve funds may be necessary for specific transactions, or the City may choose to create one if it is determined to be cost effective.

When cost beneficial, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy the reserve requirements.

Section 7 – Private Activity Use Limitations on Tax Exempt Debt IRS Tax Code Section 141 sets forth private activity tests for the purpose of limiting the volume of tax-exempt bonds that finance activities of persons other than state and local governmental entities. These tests serve to identify arrangements that actually or reasonably expect to transfer the benefits of tax-exempt financing to nonATTACHMENT 2

Page 6 of 6 ends

governmental persons. The law includes tests of private use, security and payment as well as private loan financing tests. The law also provides for various safe harbors and nuances to the application of these limits. The City will manage a process to ensure private use compliance and will consult with bond counsel to obtain federal tax advice regarding whether anticipated project use will be consistent with the restrictions on private business use of the bond financed property and, if not, whether any “remedial action” permitted under §141 of the code may be taken as means of enabling that use arrangement to be put into effect without adversely affecting the tax-exempt status of the bonds.

With respect to tax-exempt bonds, the City pledges in each bond issuance that it will monitor and control the receipt, investment, expenditure, and use of all bond proceeds and will take or omit to take any actions as necessary to cause interest on tax-exempt bonds to remain excludable from the gross income of bond holders.

City staff will ensure appropriate lease and building use policies to maintain compliance with this pledge.

Section 8 – Interfund Borrowings
The City may borrow internally from other funds with temporary cash surpluses to meet short term cash needs in lieu of issuing debt. Interfund borrowing extending for more than one year will be brought to Council for approval.

Section 9 – Debt Administration
The Finance Director shall be responsible for administering the City’s debt management program. To that end, this position shall:

A. Ensure compliance with all disclosure and reporting requirements outlined in the City’s Disclosure Policy B. Periodically review outstanding debt for refunding opportunities C. Maintain positive working relationships with rating agencies and other financial professionals D. Review and recommend appropriate structures for all new debt issuances E. Ensure compliance with the Investment Policy and bond documents regarding investing bond proceeds Section 10 – Arbitrage Compliance
Arbitrage is defined as the profit earned when tax-exempt bond proceeds are invested in higher yielding securities than the interest rates of the bonds issued. The City shall comply with its investment policy and California and federal laws.

To ensure compliance with federal arbitrage laws, the City will monitor ongoing activities, including remittance of any required arbitrage rebate. If necessary, the City will utilize a consultant for arbitrage rebate calculations and preparation of the required Internal Revenue Service forms. Arbitrage rebate calculations on outstanding bond issues will be performed periodically, but never longer than the 5th year after a bond issuance.

Section 11 – Disclosure Policy
The Finance Director will be the disclosure coordinator for the City and will have the responsibility of complying with the City’s Disclosure Policy document, as adopted by City Council.

ATTACHMENT 2
ATTACHMENT 3

1 | Page
City of West Covina
Pension Funding Policy
Adopted – May 19, 2020
ATTACHMENT 4
2 | Page
I. PURPOSE
The City’s Pension Funding Policy documents the method the City will use to determine its actuarially determined contributions to fund the long-term cost of benefits to the plan participants and annuitants. The policy also:
• Provides guidance in making annual budget decisions;
• Demonstrates prudent financial management practices;
• Create sustainable and affordable budgets for pensions; • Reassures bond rating agencies; and
• Shows employees and the public how pensions will be funded.

II. BACKGROUND
The City provides defined benefit retirement plan through the California Public Employees’ Retirement System (CalPERS). CalPERS is a multiple-employer public employee defined benefit pension plan.

All full-time and certain part-time City employees are eligible to participate in CalPERS.

CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and their beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute.

The financial objective of a defined benefit pension plan is to fund the long-term cost of benefits provided to the plan participants. In order to assure that the plan is financially sustainable, the plan should accumulate adequate resources in a systematic and disciplined manner over the active service life of benefitting employees. This funding policy outlines the method the City will utilize to determine its actuarially determined contributions to fund the long-term cost of benefits to the plan participants and annuitants.

Pension Funding: A Guide for Elected Officials, issued by eleven national groups including the U.S. Conference of Mayors, the International City/County Management Association, and the Government Finance Officers Association, established the following five general policy objectives for a pension funding policy:
• Actuarially Determined Contributions. A pension funding plan should be based upon an actuarially determined contribution (ADC) that incorporates both the cost of benefits in the current year and the amortization of the plan’s unfunded actuarial accrued liability.

ATTACHMENT 4
3 | Page
• Funding Discipline. A commitment to make timely, actuarially determined contributions to the retirement system is needed to ensure that sufficient assets are available for all current and future retirees.
• Intergenerational equity. Annual contributions should be reasonably related to the expected and actual cost of each year of service so that the cost of employee benefits is paid by the generation of taxpayers who receives services from those employees.
• Contributions as a stable percentage of payroll. Contributions should be managed so that employer costs remain consistent as a percentage of payroll over time.
• Accountability and transparency. Clear reporting of pension funding should include an assessment of whether, how, and when the plan sponsor will ensure sufficient assets are available for all current and future retirees.

III. POLICY
A. Actuarially Determined Contribution (ADC). CalPERS actuaries will determine the City’s ADC to CalPERS based on annual actuarial valuations. The ADC will include the normal cost for current service and amortization of any under-funded amount. The normal cost will be calculated using the entry age normal cost method using economic and non-economic assumptions approved by the CalPERS Board of Administration.

The City will review the CalPERS annual actuarial valuations to validate the completeness and accuracy of the member census data and the reasonableness of the actuarial assumptions.

B. Additional Discretionary Payment (ADP) Contribution. The City will consider making ADP contributions with one-time General Fund resources, with the objectives of increasing the plan’s funded status, by reducing the unfunded actuarially accrued liability, and reducing ongoing pension costs.

C. Pension Obligations Bonds. The City will consider pension obligation bonds if such bonds have expected savings using borrowing costs and CalPERS’ discount rate.

The City and its advisors will discuss and consider the risks of any potential pension obligation bonds.

ATTACHMENT 4
4 | Page
Any pension obligation bonds, or refundings of pension obligation bonds, must be voted upon by the City Council.

D. Contributions as a Manageable Budget Expense. The City will always make its required annual contributions to CalPERS. Contributions should be stable and a manageable portion of revenue. The City may:
• Make additional discretionary contributions directly to CalPERS. • Consider establishing a pension stabilization trust, subject to approval by the Council.
• Issue, call, or refund pension obligation bonds.

E. Transparency and Reporting. Funding of the City’s pension plans should be transparent to vested parties including plan participants, annuitants, the City Council, and residents. In order to achieve this transparency, the following information shall be available:
• Copies of the annual actuarial valuations for the City’s CalPERS plans shall be made available to the City Council.
• The City’s Comprehensive Annual Financial Report shall be published on its website. This report includes information on the City’s annual contributions to the pension systems and their funded status.
• The City’s annual operating budget shall include the City’s contributions to CalPERS.

F. Review of Funding Policy. Funding a defined benefit pension plan requires a long-term horizon. As such, the City will review this policy at least every two years.

ATTACHMENT 4
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT 5
ATTACHMENT NO. 6
RESOLUTION NO. 2023-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, APPROVING THE CITY OF

WEST COVINA STATEMENT OF INVESTMENT POLICY
WHEREAS, California Government Code Section 53646 requires the City Treasurer or the Chief Fiscal Officer to annually render to the City Council a statement of investment policy, which must be considered at a public meeting; and WHEREAS, California Government Code Section 53600 et seq. provides guidelines and regulations pertaining to investment of temporary idle funds; and WHEREAS, on May 17, 2022, the City Council reviewed and approved the amended City of West Covina Statement of Investment Policy through the adoption of Resolution No. 2022-48; and
WHEREAS, pursuant to Section XX of the Statement of Investment Policy, the Investment Policy must be reviewed and approved on an annual basis; and WHEREAS, the City Council has reviewed the Statement of Investment Policy, as approved on May 17, 2022, and desires to approve the Statement of Investment Policy as required by Section XX of the Policy.

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

SECTION 1. The City Council hereby approves the Statement of Investment Policy as approved by the City Council on May 17, 2022 through the adoption of Resolution No. 2022-48.

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

APPROVED AND ADOPTED this 16th day of May, 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. 2023-25 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 16th day of May, 2023, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
AGENDA ITEM NO. 6

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: PROPOSED FISCAL YEAR 2023-24 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET
RECOMMENDATION:

It is recommended that City Council receive and file the update regarding the Proposed FY 2022-23 Operating and Capital Improvement Program Budget.

BACKGROUND:

The Fiscal Year (FY) 2023-2024 Proposed Budget was presented to Council on April 18, 2028. Since then, staff held two community workshops. The purpose of this item is to provide feedback from these workshops, and receive direction, if any, from Council regarding the budget prior to consideration of approval on June 6, 2023.

The FY 2023-2024 Proposed Budget is available online:
https://www.westcovina.org/departments/finance/budget-finance-reports/annual-budget DISCUSSION:

Recap from Community Workshops:

At the April 26th meeting, there were four residents and Councilmember Ollie Cantos in attendance. Staff addressed questions regarding fund balance, liquidity, property tax, sales tax, revenue projections, capital improvement projects, Fire overtime, adding more police officers, and operational capacity.

At the May 1st meeting, there were 13 people in attendance. Staff addressed questions regarding the Sportsplex, Health Department, debt service, capital projects, Police budget, and position schedule. There was discussion regarding the Health Department with most attendees in opposition to a City-run health department. Additionally, the consensus from the group was that they would like to participate in future discussions regarding operations at the Sportsplex. Consideration of outsourcing operations, initiating a public-private partnership, and ways to reduce the ongoing burden on the general fund are some of the topics they would like evaluated.

Next Steps
The Proposed Budget will come before City Council for consideration of adoption on June 6, 2023. Staff does not anticipate proposing any substantive changes from the budget that was presented on April 18, 2023. If City Council has any changes, staff recommends providing direction during this meeting to have it reflected in the budget for consideration on June 6, 2023.

LEGAL REVIEW:

The City Attorney's Office has reviewed this report.

OPTIONS:

The City Council has the following options:

1.Approve Staff's recommendation to receive and file update; or

2.Provide alternative direction regarding changes to Proposed FY 2022-23 Budget.

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

FY 2023-24 Proposed Budget Summaries:

FY2021-22
Actual
Original
Budget
FY2022-23
Estimated
FY2022-23
Proposed
Budget
FY2023-24
Increase/
(Decrease)
Revenue
Property Tax 37,402,662 44,955,200 39,453,421 37,936,044 (7,019,156) Sales Tax 23,180,793 23,142,000 23,142,000 23,026,000 (116,000) Other Taxes 22,748,250 17,948,500 20,509,412 20,682,894 2,734,394 Charges For Service 16,284,586 13,737,820 14,013,275 14,424,138 686,318 Revenue From Other Agencies 23,506,331 13,364,791 28,021,855 11,815,985 (1,880,536) Interdept Charges 6,790,359 6,248,060 6,596,695 7,607,139 1,359,079 Licenses & Permits 4,493,925 3,633,599 5,265,921 2,886,000 (747,599) Use of Money & Property 108,869 1,562,040 2,649,676 2,586,240 1,024,200 Fines & Forfeitures 910,120 1,023,290 951,300 970,720 (52,570) Sales 916,416 645,000 635,400 647,200 2,200
Other Revenues 4,988,190 205,270 672,236 319,430 114,160 Capital Assets 25,564 - 171,358 171,400 171,400
Fees 95,585 64,200 138,786 67,100 2,900
Revenue Total 141,451,649 126,529,770 142,221,334 123,140,290 (3,721,210) Expenditures
Salaries & Benefits 52,935,238 56,702,459 57,743,630 57,908,693 1,206,234 Materials & Services 41,137,867 31,570,264 33,677,494 35,722,394 3,397,130 Debt Service 21,220,695 20,423,944 20,431,300 16,899,697 (3,524,247) Capital Assets 24,826,410 15,551,515 43,128,380 13,287,432 (2,664,083) Allocated Costs 4,659,919 4,199,297 4,282,757 5,627,402 1,428,105 Expenditures Total 144,780,129 128,447,479 159,263,560 129,445,618 (156,861) Table 2. City-Wide Summary
Table 3. General Fund Summary
FY2021-22
Actual*
Original
Budget
FY2022-23
Estimated
FY2022-23
Proposed
Budget
FY2023-24
Increase/
(Decrease)
Revenue
Property Tax 30,687,088 28,986,300 32,514,786 32,710,100 3,723,800 Sales Tax 23,180,793 23,142,000 23,142,000 23,026,000 (116,000) Other Taxes 9,773,175 9,446,000 9,315,502 9,758,500 312,500 Charges For Service 8,512,897 7,578,220 6,143,780 6,328,728 (1,249,492) Revenue From Other Agencies 4,406,517 3,994,525 2,729,300 3,384,700 (609,825) Licenses & Permits 4,476,096 3,167,810 5,265,644 2,885,800 (282,010) Use of Money & Property (1,156,960) 1,078,300 1,304,500 1,313,500 235,200 Interdept Charges 1,188,500 1,196,200 1,196,200 1,196,200 - Fines & Forfeitures 910,120 1,023,290 951,300 970,720 (52,570) Other Revenues 94,168 136,670 177,017 194,030 57,360
Revenue Total 82,072,395 79,749,315 82,740,030 81,768,278 2,018,963 Expenditures
Salaries & Benefits 47,715,616 50,162,753 51,989,519 51,978,222 1,815,469 Materials & Services 12,762,113 11,139,165 11,656,139 11,135,920 (3,245) Allocated Costs 2,600,860 2,605,797 2,689,947 3,438,442 832,645 Capital Assets 29,995 - - - -
Expenditures Total 63,108,584 63,907,715 66,335,605 66,552,584 2,644,869 Revenues Less Expenditures 18,963,812 15,841,600 16,404,424 15,215,694 Net Transfers (20,293,009) (15,325,255) (20,470,183) (15,039,613) Net Change in Fund Balance (1,329,197) 516,345 (4,065,759) 176,081 Beginning Fund Balance 25,488,076 24,158,879 24,158,879 20,093,120 Ending Fund Balance 24,158,879 24,675,224 20,093,120 20,269,201 Reserve Requirement (17%) 10,728,459 10,864,312 11,277,053 11,313,939 *For consistency, the FY2020-2021 Bond Transfer-In and Payment towards Unfunded Pension Liability have been excluded.

Table 3. General Fund Summary
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability AGENDA ITEM NO. 7

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AMENDMENTS TO AGREEMENTS WITH UBER TECHNOLOGIES, INC.

RECOMMENDATION:

It is recommended that the City Council:

1. Approve the First Amendment to the Uber Central Agreement with Uber Technologies, Inc. (Uber).

2. Approve the First Amendment to the Uber Vouchers for Transit Agencies Agreement with Uber.

3. Authorize the City Manager to execute the amendments.

Authorize the City Manager to negotiate and execute future amendments extending the terms of the agreements, provided that the total cost of the program does not exceed $100,000.

4. BACKGROUND:

On September 20, 2022, the City Council approved agreements with Uber to implement an "On-Demand Ride Hailing" Pilot Program for a six-month period. The Program was intended to supplement the existing Dial-A-Ride service and meet the needs of those challenged with ride availability by providing an on-demand alternative. The City appropriated $50,000 for the Program.

The Program included the following parameters:

Eligibility for participation: all residents 65-years and over.

Cost per ride (one way): $3
Maximum subsidy per ride (one way): $20. Costs in excess would be paid by rider.

Service area: Within the City limits. Up to three miles outside the City limits for medical reasons.

DISCUSSION:

After the agreement execution, training, testing, and promotion, the first ride of the pilot program, called "Move WC", was taken on December 5, 2022. To date, the following are the statistics for Move WC:

Number of Participants 40
Trips Taken 179
Cost of the Program To Date $1,577
The Program has been marketed through the City's social media handles (Instagram, Facebook, Twitter), on the City's website, the Discover Newsletter, and flyers posted at the Senior Center.

Promotional flyers were also mailed directly to all active Dial-A-Ride participants, aged 65 years and over (129).

Staff also made in-person presentations to promote the Program at Merrill Gardens and the Senior Center. During the presentations made at the Senior Center on April 12, 2023, residents suggested expanding the eligibility criteria including; (a) lowering the age requirement and (b) allowing disabled persons regardless of age to participate. Currently, eligibility for the Dial-A-Ride service requires participants be residents of West Covina aged 55 years and over or disabled. The 2020 Census information for the City of West Covina below may help provide a sense as to how modifying eligibility criteria may impact participation:

Age Criteria - According to the Census (2021 American Community Survey (ACS) 1-year Estimates - Table S0101):

Age Range Population
> 65 19,966
55-64 12,423
Disability Criteria - According to ACS (Table S1810), 2,016 West Covina residents have a disability that may preclude driving. Categories include: Hearing, vision, cognitive, ambulatory, self-care, independent living.

Age Range Population
35 to 64 2,016
18 to 34 4,342
The agreements had initial terms of six months, with options to extend for one (1) year renewal periods.

In order to continue to provide the Program, the agreements need to be extended.

LEGAL REVIEW:

The City Attorney's Office has reviewed the amendments and approved them as to form.

OPTIONS:

The City Council has the following options:

1. Approve staff’s recommendation; or

2. Provide alternative direction.

Prepared by: Kelly McDonald, Public Services Manager
Fiscal Impact
FISCAL IMPACT:

City Council initially appropriated $50,000 for the Pilot Program in Measure R. As of this writing time, there is a balance of $48,423. No additional appropriations are planned in FY 2022-2023. The proposed FY 2023-2024 Budget includes $100,000 for the Program.

Project/Service/
Expense
Fund/
Account No.

FY2022-23
Budget
Estimated Fiscal Impact
Table 1. Budget Summary
Expense Account No. Budget FYE
2024
FYE
2025
FYE
2026
On-Demand Ride
Hailing Program
Measure R
224.61.5143.6120
$50,000 $100,000 $0 $0
Attachments
Attachment No. 1 - First Amendment to Uber Central Agreement Attachment No. 2 - First Amendment to Uber Vouchers for Transit Agencies Agreement Attachment No. 3 - Uber Central Agreement - City of West Covina Executed 2022.10.10 Attachment No. 4 - Uber Voucher Agreement - City of West Covina Executed 2022.10.10 CITY COUNCIL GOALS & OBJECTIVES: A Creative and Active Community Enhance City Image and Effectiveness
First Amendment to Uber Central Agreement
between
Uber Technologies, Inc. and The City of West Covina
This First Amendment ("Amendment") is entered into as of April 10, 2023 ("Effective Date") and shall modify the Uber Central Agreement entered into on October 10, 2022 by and between Uber Technologies, Inc., located at 1515 Third Street, San Francisco, CA 94158 ("Uber"), and The City of West Covina, located at 1444 W Garvey Ave S, West Covina, CA 91790 ("Agency") (“Agreement”).

The parties desire to extend the Term of the Agreement.

The parties agree as follows:

1. Pursuant to Section 1 (Term) of the Agreement, which provides for an Initial Term of six (6) months, with the option to extend the Agreement for one (1) year renewal periods, not to exceed a total Term of five (5) years, Agency and Uber agree to extend the Term for one (1) year, beginning April 10, 2023 and ending April 9, 2024.

2. All terms capitalized in this Amendment shall have the meanings stated in the Agreement unless otherwise defined in this Amendment. If there is any conflict between the terms of this Amendment and the Agreement, this Amendment shall prevail. Except as provided in this Amendment, all other terms and conditions of the agreement will continue in full force and effect.

Each party is signing this Amendment on the date stated beneath that party’s signature.

UBER TECHNOLOGIES, INC. THE CITY OF WEST COVINA
By: By:

Name: Name:

Title: Title:

Date: Date:

ATTACHMENT NO. 1
First Amendment to Uber Vouchers for Transit Agencies Agreement between
Uber Technologies, Inc. and The City of West Covina
This First Amendment ("Amendment") is entered into as of April 10, 2023 ("Effective Date") and shall modify the Uber Vouchers for Transit Agencies Agreement entered into on October 10, 2022 by and between Uber Technologies, Inc., located at 1515 Third Street, San Francisco, CA 94158 ("Uber") and The City of West Covina, located at 1444 W Garvey Ave S, West Covina, CA 91790 ("Agency") (“Agreement”).

The parties desire to extend the Term of the Agreement.

The parties agree as follows:

1. Pursuant to Section 4 (Term) of the Agreement, which provides for an initial term of six (6) months with the option to extend the Term for up to three one-year Extension Terms upon mutual agreement of the parties, Agency and Uber agree to extend the term of the Agreement for one year, beginning April 10, 2023 and ending April 9, 2024.

Each party is signing this Amendment on the date stated beneath that party’s signature.

UBER TECHNOLOGIES, INC. THE CITY OF WEST COVINA
By: By:

Name: Name:

Title: Title:

Date: Date:

ATTACHMENT NO. 2
ATTACHMENT NO. 3

ATTACHMENT NO. 4

AGENDA ITEM NO. 8

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: FISCAL YEAR (FY) 2023-2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)

ACTION PLAN
RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Approve the proposed Fiscal Year (FY) 2023-2024 CDBG Action Plan; and Designate the City Manager, or the City Manager’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by U.S. Department of Housing and Urban Development (HUD), and execute all subrecipient agreements for the use of funds approved in the 2023-2024 Annual Action Plan; and

2. Authorize the City Manager to negotiate and execute all necessary documents, in such final form as approved by the City Attorney, to carry out the City Council's direction.

3. BACKGROUND:

The Community Development Block Grant (CDBG) program is a flexible program of the U.S. Department of Housing and Urban Development (HUD) that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest continuously run programs at HUD. The CDBG program provides annual grants on a formula basis to 1,209 general units of local government and states.

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses.

CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the nation.

The annual CDBG appropriation is allocated between states and local jurisdictions called "non-entitlement" and "entitlement" communities respectively. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas (MSAs); metropolitan cities with populations of at least 50,000; and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute CDBG funds to non-entitlement localities not qualified as entitlement communities.

HUD determines the amount of the City’s grant by using a formula comprised of several measures of community need, including the extent of poverty, population, housing overcrowding, age of housing, and population growth lag in relationship to other metropolitan areas. West Covina is a direct entitlement community and uses these federal funds to create transformative impacts and to improve the lives of residents, especially those with low and moderate income levels.

According to 24 CFR 570.4, the policies and procedures used to determine CDBG allocations are described in Sections 106 and 107 of the Housing and Community Development Act of 1974. For the Entitlement Program, there are two formulas: "A" and "B". HUD calculates the amount of funds that each entitlement grantee would receive under each of the two formulas. Formula A calculates funds to a jurisdiction based on its metropolitan area’s share of three factors across all US metropolitan areas. The factors are:

1. Population, weighted at 25%;

2. People in poverty, weighted at 50%; and

3. Overcrowded units, weighted at 25%.

Formula B also calculates funds to a jurisdiction based on its metropolitan area’s share of three factors across all US metropolitan areas, but the factors are somewhat different. The Formula B factors are:

1. Population growth lag since 1960, weighted at 20%;

2. People in poverty, weighted at 30%; and

3. Pre-1940 housing units, weighted at 50%.

In recent years, West Covina has utilized these funds for Code Enforcement, the Domestic Violence Victim Advocate (Police Department), Senior Meals Program, the Business Assistance Loan Program, the Housing Preservation Program, Public Infrastructure Projects, and to fund various public service providers (i.e., food banks, homeless advocates, meals on wheels, etc.).

As a condition of receiving the funds, HUD requires the City to prepare an annual Action Plan, which details the activities the City plans to undertake with the funds in the respective year. This Action Plan is to be consistent with the five-year CDBG Consolidated Plan, which is a strategic and visioning document on the use of these funds. The City Council adopted its most recent 5-year CDBG Consolidated Plan on April 6, 2021, which is valid through 2024. The City's proposed FY 2023-2024 CDBG Action Plan is included as Attachment No. 2 of this report.

As a basis for the Consolidated Plan, an assessment and prioritization of community needs, relative to the use of CDBG funds, was required. The categories of community need identified in the current Consolidated Plan are: (1) Economic Development, (2) Homelessness, (3) Infrastructure Improvements, (4) Owner Occupied Housing, (5) Public Facilities, (6) Non-Homeless Special Needs, (7) Public Services, and (8) Rental Housing (Attachment No. 1).

To facilitate prioritization and to evaluate the categories, HUD utilizes four levels of priority: High, Medium, Low, and No Such Need. A High Priority means that activities in that category will be funded by CDBG funds. A Medium Priority means activities in that category may be funded by CDBG funds. A Low Priority means CDBG funds will not be used to fund activities in a particular category.

The City Council established the FY 2020-2024 Consolidated Plan Priorities through actions at the April 6, 2021 City Council meeting, as outlined in Table 1. These priorities were affirmed, as amended, by the City Council on March 7, 2023 for the FY 2023-2024 Action Plan.

Table 1. FY 2020-2024 Consolidated Plan Priorities
Table 1. FY 2020-2024 Consolidated Plan Priorities
Categories of Need Priority Level
Economic Development High
Homelessness High
Infrastructure Improvements High
Owner-Occupied Housing High
Public Facilities High
Rental Housing High
Non-Homeless Special Needs Medium
Public Services Medium
The categories shown as ‘Medium’ and ‘Low’ do not indicate that these are not priorities of the City of West Covina; however, with limited CDBG funds, the City Council determined the other categories as a priority for use of CDBG funding during this term.

DISCUSSION:

As directed by the City Council on March 7, 2023, City staff drafted the proposed FY 2023-2024 CDBG Action Plan (Attachment No. 2) to incorporate the City’s approved FY 2020-2024 Consolidated Plan Priorities, as amended.

In FY 2023-2024, the City will receive $799,182 in CDBG funds. With additional program income estimated at $25,000 through repayments of CDBG-funded loans to the City’s Housing Preservation Program, staff estimates a total amount of available resources to be approximately $824,182. Previously unobligated funds in the amount of $158,767 are proposed to be utilized. The proposed budget is shown below in Table 2.

Table 2. Proposed FY 2023-2024 CDBG Action Plan Budget
Project/Activity FY 2023-2024 Proposed

1. Neighborhood Improvement Program $ 694,486

2. Planning and Administration 164,836

3. Public Services 123,627
Total $ 982,949
Neighborhood Improvement Program: Funds eligible capital improvements such as public facilities improvements, street rehabilitation, replacement of curbs and gutters, removal of barriers to accessibility, park improvements, etc.

1. Planning and Administration: By statute, capped at 20% of the sum of allocation and current year (FY 2023-2024) program income. FY 2023-2024 program income, to be received through repayment to the Housing Preservation Program, is estimated at $25,000.

2. Public Services: By statute, capped at 15% of the sum of allocation and prior year (FY 2022-2023) program income. FY 2022-2023 program income, received through repayment to the Housing Preservation Program, is $25,000 as of the writing of this report.

3. Business Assistance and Housing Preservation Programs The Business Assistance Program and Housing Preservation Program will occur in FY 2023-2024 with previously allocated funds and later amended in the FY 2021-2022 Action Plan process. The unexpended balances will be carried forward. Activities funding with carried over budgets. As of the writing of the report, the Business Assistance Program, originally funded for $325,000, has a balance of $28,108 and the Housing Preservation Program, originally funded for $250,000 and subsequently amended, has a balance of $341,643.

Neighborhood Improvement Program
Potential projects under consideration include: additional improvements to Friendship Park, including restroom and park lighting; replacement of the roof at the Senior Center; and improvements to eligible residential streets. Improvements are being costed. Pending guidance from HUD, staff will present an Action Plan amendment to the City Council at a future meeting.

Public Services
The City published a Notice of Funding Availability in February 2023, and received 10 funding requests totaling $216,500 from public service providers serving West Covina residents. Descriptions of services provided are included as Attachment No. 3.

With an interest in mitigating impacts to the General Fund, staff earmarked funding for City projects at the levels of request by the individual departments. This will offset City program expenses that would otherwise be supported by the City's General Fund. All City projects are designated with a double asterisk (**) in Table 3. A decrease in CDBG funding to these programs would result in an increased burden on the General Fund in order to maintain current service levels.

Housing Rights Center
Staff also recommends funding the Housing Rights Center. As a CDBG recipient, HUD requires grantees to provide services that promote and support fair housing in the community. Funding the Housing Rights Center addresses this HUD requirement.

Staff recommends funding the projects (Projects Nos. 3 through 6) as shown below in Table 3.

Ad Hoc Committee Recommendations
The CDBG Ad Hoc Committee of the Community and Senior Services Commission (Ad Hoc Committee) evaluated the remaining applicants (Projects No. 7 through No. 12). Applicants made presentations to the Ad Hoc Committee on April 26, 2023. The Ad Hoc Committee then developed recommendations to allocate the balance of $28,627 in CDBG funds (shown in Table 3). The recommendations are included in the proposed Action Plan and presented for the consideration of the City Council.

Table 3 details proposed FY 2023-2024 funding by activity.

Table 3. Proposed FY 2023-2024 CDBG Funding
Project/Activity FY 2023-2024 Proposed

1. Neighborhood Improvement Program $694,486

2. Administration $164,836

3. Senior Meals Program (**) $60,000

4. Domestic Violence Victim Advocate (**) $20,000

5. Careship (**) $5,000

6. Housing Rights Center $10,000

7. Senior Assistance Program (YWCA) $4,127

8. Action Food Pantry $5,000

9. ESGV Coalition for the Homeless $4,500

10. Shepherd's Pantry $5,000

11. Project 29:11 (Food Pantry) $5,000

12. Assistance League (Op School Bell) $5,000
Plan Total $982,949
As required, the draft FY 2023-2024 CDBG Action Plan was available for a 30-day public review period, which began on April 14, 2023. As of the writing of this report, no public comments have been received.

LEGAL REVIEW:

The City Attorney's Office has reviewed this report.

OPTIONS:

The City Council has the following options:

1. Approve staff’s recommendation; or

2. Provide alternative direction.

Fiscal Impact
FISCAL IMPACT:

The proposed total FY 2023-2024 Action Plan is $982,949. In FY 2023-2024, the City is to receive $799,182 in CDBG funds. With additional program income estimated at $25,000, through repayments of CDBG-funded loans to the City’s Housing Preservation Program, staff estimates a total amount of available resources to be approximately $824,182. Previously unobligated funds will make up the difference of $158,767.

Funding Source FY 2023-24
Amount
FY23-24 CDBG Funds 799,182
Housing Preservation Program Loan Repayments 25,000
Previously unobligated funds 158,767
Total $982,949
Table 4. Summary of Proposed FY2023-2024 CDBG Action Plan This CDBG Action Plan is recorded within Special Revenue Fund No. 131,Community Dev. Block Grant. If the action plan is approved, the FY 2023-2024 Proposed Budget will be amended to incorporate these amounts within Fund 131.

Attachments
Attachment No. 1 - Descriptions of Categories of Need in Table 1 Attachment No. 2 - FY 2023-24 CDBG Action Plan - Draft - Working Attachment No. 3 - FY 2023-24 CDBG PSP Applicants
Attachment No. 4 - Presentation
CITY COUNCIL GOALS & OBJECTIVES: Address Homeless Issues Maintain Good Intergovernmental Relations
Enhance City Image and Effectiveness
ATTACHMENT NO. 1
Descriptions of Categories of Need in Table 1,
Consolidated Plan Priorities
This attachment describes the Categories of Need shown in Table 1 of the staff report.

1. Economic Development: Activities to address these needs will be funded by the Community & Economic Development non-housing funds. Community & Economic Development activities and the new Business Assistance Program will address this category of need.

2. Homelessness: The allocation of CDBG funds to public services can address a portion of these needs.

3. Infrastructure Improvements: Improvements such as street rehabilitation and replacement of curbs and gutters will be funded during the Consolidated Plan cycle. (For example, projects may include street improvements.)

4. Owner-Occupied Housing: Owner housing needs will be addressed by the Housing Preservation Program (HPP).

5. Public Facilities: Public facilities may be funded during the Consolidated Plan cycle – 2020 to 2025. (For example, projects may include: accessibility improvement or parks and recreation facilities and youth centers.)

6. Rental Housing: Rental housing needs are addressed by the Section 8 rental assistance program and the affordable housing developments funded by the CED Low and Moderate Income Housing Fund.

7. Public Services: A high priority was assigned to public services because CDBG funds can help to address the needs of the elderly, frail elderly, youth and other low/moderate income populations. These needs can be addressed by the 15% allocation of CDBG funds to public services. (For example, public services may include: youth services, transportation services, and crime awareness.)

8. Non-Homeless Special Needs: The allocation of CDBG funds to public services can address a portion of the non-homeless needs. (Non-homeless special needs populations include: the elderly, persons with HIV/AIDS, disabled, homebound, and mentally ill).

City of
West Covina
Action Plan for
Housing and Community Development
One Year Use of Funds
FY 2023-2024 (July 1, 2023 – June 30, 2024)
Prepared for:

The U.S. Department of Housing and Urban Development
Lead Agency
City of West Covina
Community Services Department
1444 W. Garvey Avenue
West Covina, California 91790
(626) 939-8430

PROPOSED
ATTACHMENT NO. 2
Table of Contents
Executive Summary 1
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1 The Process 5
PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) 5
AP-10 Consultation – 24 CFR 91.100, 91.200(b), 91.215(l) 6 AP-12 Participation 11
Annual Action Plan 13
Expected Resources 13
AP-15 Expected Resources – 91.220(c)(1,2) 13
AP-20 Annual Goals and Objectives 17
Projects 19
AP-35 Projects – 91.220(d) 19
AP-38 Project Summary 21
AP-50 Geographic Distribution – 91.220(f) 27
Affordable Housing 29
AP-55 Affordable Housing – 91.220(g) 29
AP-60 Public Housing – 91.220(h) 30
AP-65 Homeless and Other Special Needs Activities – 91.220(i) 31 AP-75 Barriers to affordable housing – 91.220(j) 35
AP-85 Other Actions – 91.220(k) 37
Program Specific Requirements 40
AP-90 Program Specific Requirements – 91.220(l)(1,2,4) 40 List of Tables
Table 1 – Responsible Agencies 5
Table 2 – Agencies, groups, organizations who participated 8 Table 3 – Other local /regional/federal planning efforts 10 Table 4 – Citizen Participation Outreach 11
Table 5 – Expected Resources – Priority Table 14
Table 6 – Goals Summary 17
Table 7 – Goal Descriptions 18
Table 8 – Project Information 19
Table 9 – Geographic Distribution 27
Table 10 – One Year Goals for Affordable Housing by Support Requirement 29 Table 11 – One Year Goals for Affordable Housing by Support Type 29 List of Attachments
Attachment No. 1 – Citizen Participation Comments 43
Attachment No. 2 – LMI Census Block Group Map 44
Annual Action Plan
2023
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
Located in the San Gabriel Valley, West Covina is a densely developed urban community encompassing 16 square miles. The US Census estimates the West Covina had a population of 109,501 persons as of April 1, 2020. This document constitutes the City of West Covina’s fourth year Annual Action Plan to implement its Five-Year Consolidated Plan (FY 2020 – FY 2024) for the use of Community Development Block Grant (CDBG) funds. This FY 2023 Annual Action Plan was prepared using the eConPlanning Suite system developed by the U.S. Department of Housing and Urban Development (HUD). The system prescribes the structure and contents of this document, following HUD's Consolidated Planning regulations. This Action Plan covers the planning period of July 1, 2023 through June 30, 2024. A public hearing was conducted on March 7, 2023 to discuss the Draft FY 2023-2024 Action Plan, which was released for a 30-day public review on April 14, 2023.

2. Summarize the objectives and outcomes identified in the Plan Listed below are City of West Covina’s objective and outcome categories for CDBG funded activities in accordance with the Federal Register Notice dated March 7, 2006. During this Consolidated Plan period, the City will fund activities in two objective/outcome categories – SL-1 and SL-3.

SL–1 Improve Availability/Accessibility for the Purpose of Creating a Suitable Living Environment • Fair Housing Services
• Child Care Services
• Senior Services
• Other Public Services
SL–3 Improve Sustainability for the Purpose of Creating a Suitable Living Environment • Neighborhood Improvement Program
The Neighborhood Improvement Program supported improvements such as: street and alley improvements, sidewalks, and street lighting and accessibility improvements.

Annual Action Plan
2023
2 OMB Control No: 2506-0117 (exp. 09/30/2021)

3. Evaluation of past performance
The 2015-2019 Consolidated Plan established the following high priorities for CDBG funding:
• Support a Neighborhood Improvement Program for infrastructure improvements • Support public facilities funding
• Support funding for fair housing and tenant/landlord counseling services • Address the needs of homeless families with children; homeless individuals; and chronically homeless persons
• Support public services funding
The City allocated CDBG funds to address each of the five high priorities listed above.

The City compared the cumulative proposed and actual accomplishments for Program Years 2015-2016 thru 2019-2020. Actual accomplishments over the four year-period exceeded the proposed accomplishments by a ratio of 1.33 to 1, when proposed accomplishments were weighted for actual funding. Three public services had accomplishments slightly less than the 4-year weighted accomplishments: Senior Meals Program, Careship Program, and Housing Rights Center. The Neighborhood Improvement Program supported improvements such as: street and alley improvements, sidewalks, and street lighting and accessibility improvements.

4. Summary of Citizen Participation Process and consultation process Public Hearings: Citizen participation is one of the most important components of the planning process.

To solicit public input during the development of the Consolidated Plan, the City Council conducted two public hearings.

The purpose of the first public hearing, which occurred on March 7, 2023, was to obtain the public’s input on West Covina’s housing and community development needs. The notice of the public hearing explained the CDBG Program, available funding, and the scope of eligible activities. The City encouraged the participation of all residents. A summary of the meeting is presented in Table 4 – Citizen Participation Outreach. The purpose of the second public hearing, which will occur on May 16, 2023, will be to consider approval of the FY 2023-2024 Action Plan. A summary of the meeting is presented in Table 4 – Citizen Participation Outreach.

Housing and Community Development Needs Survey: The proposed Action Plan is intended to be consistent with the recently adopted Consolidated Plan. As part of the development of the PY 2020- 2024 Consolidated Plan, which was approved on April 6, 2021, The City conducted a survey as another means of obtaining public participation. The Survey was posted on the City’s website. The survey results are included as an attachment to this Plan. Seventy-nine (79) responses were received. Seventy-six (76) responses were from West Covina residents, 61 of which indicate they have lived in West Covina for Annual Action Plan
2023
3 OMB Control No: 2506-0117 (exp. 09/30/2021)
over 10 years. The survey asked respondents to indicate their priority housing and non-housing community development needs (High, Medium, Low, No Need, and Don’t Know) for activities in the community under seven categories. CDBG funds are limited. With the limited funding, the City supports programs that provide resources to address some of the activities mentioned below. However, the City will seek other funds or partners to address the priority needs during the Consolidated Plan period.

In summary, the seven categories and top three activities receiving the most High Need ratings in the survey are listed below:

Infrastructure Activities

1. Water quality improvements

2. Tree planting

3. Street and road improvements
Housing Activities

1. First-time home-buyer assistance

2. Energy efficient home improvements

3. Heating/cooling HVAC replacement or repairs
Housing Types for Special Needs Populations

1. Rental assistance for persons at-risk of homelessness

2. Shelters for youth

3. Permanent supportive housing such as subsidized housing that offers services for persons with mental disabilities
Community and Public Facilities

1. Parks and recreational facilities

2. Homeless shelters

3. Facilities for abused/neglected children
Community and Public Services

1. Neighborhood crime prevention programs

2. Children afterschool/summer camp programs & services

3. Park and recreation programs
Services and Facilities for Special Needs Groups
Annual Action Plan
2023
4 OMB Control No: 2506-0117 (exp. 09/30/2021)

1. Veterans

2. Seniors (65+)

3. Victims of domestic violence
Business and Economic Development Activities

1. Retention of existing businesses

2. Attraction of new businesses

3. Expansion of existing businesses

5. Summary of public comments
During the pre-development hearing on March 7, 2023. Comments regarding the use of CDBG funds included discussion regarding the need for a program to assist at-risk persons from becoming homeless.

Specifically, recent home fires occurring in the City prompted discussion regarding the need for an emergency assistance program in which funds could be used for temporary housing, food, repairs, etc., for income-eligible residents who experience such a tragedy. The draft Action Plan will be available for a 30-day public review period beginning April 14 and ending on May 16, 2023.

During the 30-day review period, one written comment was received regarding the Action Plan.

At a public hearing on May 16, 2023, staff will give an overview of the Action Plan process and CDBG funding. Priorities to guide the FY 2023-2024 Action Plan will be reviewed. Proposed Action Plan, activities, and funding will be presented.

Public comments at the public hearing on May 16, 2023, included the following: TBD

6. Summary of comments or views not accepted and the reasons for not accepting them All comments received were accepted.

7. Summary
The City of West Covina has undertaken diligent and good faith efforts in outreaching to all segments of the community that may benefit from the CDBG Programs.

Annual Action Plan
2023
5 OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency WEST COVINA
CDBG Administrator WEST COVINA Public Services Department HOPWA Administrator
HOME Administrator
HOPWA-C Administrator
Table 1 – Responsible Agencies
Narrative (optional)
The City's CDBG programs are administered by the Public Services Department.

Consolidated Plan Public Contact Information
Kelly McDonald
Public Services Management
Public Services Department
City of West Covina
1444 W. Garvey Avenue So.

West Covina, CA 91790
(626) 939-8494 - phone
[email protected]
Annual Action Plan
2023
6 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
As part of the Action Plan development, the City undertook an outreach program to consult and coordinate nonprofit agencies, affordable housing providers, and government agencies regarding the needs of the low- and moderate-income community. The outreach program has been summarized in the Executive Summary.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
During the development of the Action Plan, the City coordinated with the Los Angeles County Development Authority. The Development Authority provided information on the number of families receiving Section 8 rental assistance; the number of elderly and disabled assisted families; and the number of families on the Section 8 Waiting List. The City also coordinated with the Baldwin Park Housing Authority.

The private and governmental health, mental health, and service agencies that were consulted included:

United Way of America; Southern California Association of Governments; Los Angeles County Department of Public Health, (Childhood Lead Poisoning Prevention Program and Division of HIV and STD Programs); Los Angeles County Department of Mental Health; Los Angeles County Department of Public Social Services (DPSS); Office of Statewide Health Planning and Development; Substance Abuse and Mental Health Services Administration; Area Agency on Aging, State Independent Living Council (SILC); and Office of the California Attorney General. With regard to economic development, the City coordinated with the State Employment Development Department, County of Los Angeles Workforce Investment Board, West Covina Workforce Services Office, and the Community Development Commission’s economic development efforts.

Specific agencies were also contacted to obtain data in preparation of this Action Plan. For example, the State Developmental Services Department and State Social Services Department were contacted to obtain data and housing resources for persons with disabilities.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The Continuum of Care Strategy was consulted to provide information on homelessness and resources available. Several agencies that provide housing and supportive services for the homeless and those at risk of becoming homeless were identified. The City coordinates on an ongoing basis with the following Annual Action Plan
2023
7 OMB Control No: 2506-0117 (exp. 09/30/2021)
homeless providers: the East San Gabriel Valley Coalition for the Homeless Emergency Food and Shelter Program, YWCA – WINGS Women’s Shelter, and San Gabriel Valley Council of Governments.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City's HUD entitlement allocation does not include ESG funds.

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
Annual Action Plan
2023
8 OMB Control No: 2506-0117 (exp. 09/30/2021)
Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Los Angeles County Development Authority Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Housing Need Assessment Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
The City requested information on Section 8 assisted households. Improved coordination is possible because baseline data provides the City a basis to monitor a reduction in rental assistance needs.
2 Agency/Group/Organization LOS ANGELES HOMELESS SERVICES AUTHORITY Agency/Group/Organization Type Housing
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
2022 Homeless Count (112) was used as a basis to estimate the City's unsheltered homeless (46). Baseline data provides improved way to monitor if homelessness is reduced over time. The results of the 2023 Count have not been released as the development of this draft. 3 Agency/Group/Organization Los Angeles County Department of Public Health Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by Consultation? Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency's website was consulted for data on the incidence of LBP poisoning.

Information collected can be shared with the community to warn families of the dangers of lead-based paint.

Annual Action Plan
2023
9 OMB Control No: 2506-0117 (exp. 09/30/2021)
4 Agency/Group/Organization State Independent Living Council Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency's multi-year plan was reviewed to gather insights on priority needs, services, and planned programs. Improved coordination provides the City information to share with the disabled community.
5 Agency/Group/Organization Los Angeles County Department of Public Health-Division of HIV and STD Program
Agency/Group/Organization Type Services-Persons with HIV/AIDS What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homelessness Strategy
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency's was contacted to obtain data on the incidence of HIV and AIDS and programs directed at addressing these needs. Improved coordination allows the City information to share with the disabled community.

Identify any Agency Types not consulted and provide rationale for not consulting The City consulted with all agencies that could provide valuable input to the development of the Action Plan.

Annual Action Plan
2023
10 OMB Control No: 2506-0117 (exp. 09/30/2021)
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care
2021-2023 State Plan for
Independent Living (SPIL)
State Independent Living Council (SILC)
The Strategic Plan has goals in support of SPIL because many of West Covina's senior are frail and disabled and on the Section 8 Waiting List.

HIV/AIDS Strategy 2020 and
Beyond
Division of HIV and STD Programs, Los
Angeles County Department of Public
Health
The Strategic Plan has included information from this Plan.

Area Agency on Aging 2016-
2021
Los Angeles County Workforce
Development Aging and Community
Services
The Strategic Plan has goals in support of the Area Plan which stated that the greatest economic need is among minority seniors with poverty incomes.

Table 3 – Other local / regional / federal planning efforts Narrative (optional)
City of West Covina departments that may have an interest in the CDBG Program were invited to participate in the Consolidated Plan process.

Housing is a key element of the Consolidated Plan. The City cooperates and coordinates with the State Department of Housing and Community Development by submitting the Annual Housing Element Progress Report.

Annual Action Plan
2023
11 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/
attendance
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL
(If applicable)
1 Public
Meeting
Non-targeted/
broad
community
Approximately 10
persons attended the
Public Hearing held on
March 7, 2023. The
hearing was livestreamed on the City
YouTube channel and
is archived for later
viewing.

Staff gave an overview of the
Action Plan process and CDBG
funding. Priorities to guide
the PY 2023-2024 Action Plan
were presented and
approved. Public comments
at the pre-development
meeting on March 7, 2023
included support for a
program to be established to
assist at-risk persons from
becoming homeless. Recent
house fires prompted
discussion for the need of an
emergency assistance
program.

All comments
were received
and accepted.
www.westcovina.org
Annual Action Plan
2023
12 OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/
attendance
Summary of
comments received
Summary of
comments
not accepted
and reasons
URL
(If applicable)
2 Public
Meeting
Non-targeted/
broad
community
Public Hearing will be
held on May 16, 2023
to consider proposed
Action Plan. The
hearing will be livestreamed on the City
YouTube channel and
is archived for later
viewing.

During the 30-day review
period, written comments
included the following:
- TBD
At a public hearing on May 16,
2023, staff will give an
overview of the Action Plan
process and CDBG funding.

Priorities to guide the PY
2023-2024 Action Plan will be
reviewed. Proposed Action
Plan, activities, and funding
will be presented. Public
comments at the public
hearing on May 16, 2022,
included the following:
- TBD
TBD www.westcovina.org
Table 4 – Citizen Participation Outreach
Annual Action Plan
2023
13 OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
For FY 2023-2024, the City is allocated $799,182 in CDBG funds. Estimated income in the amount of $25,000 in program income will result in total available resources of $824,182. The available CDBG funds have been allocated to projects that contribute to achieving the priority needs and goals established by the 5-Year Strategic Plan. The projects are consistent with the citizen input received during the development of the recently approved Consolidated Plan. The priorities have been approved by the City Council.

The proposed budget for the listed projects is $982,949. The balance will be made up through unobligated funds in the line-of-credit with HUD Annual Action Plan
2023
14 OMB Control No: 2506-0117 (exp. 09/30/2021)
($158,767).

Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 4 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
799,182 25,000 158,767 982,949 825,000 The estimated amount of CDBG funds over the remaining one year of the 5-
year ConPlan period is $825,000. This
assumes an annual allocation of
$800,000 and Program Income of
$25,000 in Program Year 5. Prior year
resources include $158,767 in
unobligated funds through PY 22-23.

Not shown in the table are $755,157
currently obligated to Friendship Park
Improvements, Phase II, $341,643
Housing Preservation Program, and
$28,108 to the Business Assistance
Program.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City and HUD share an interest in leveraging HUD resources to the maximum extent feasible in order to address priority needs and associated goals.

Annual Action Plan
2023
15 OMB Control No: 2506-0117 (exp. 09/30/2021)
The City will seek funds to leverage the Federal CDBG funds. The City’s Capital Improvement Program (CIP) may leverage CDBG funds in street rehabilitation projects. State Gas Tax funds also assist with street rehabilitation.

Federal USDA, Older Americans Act, City General Fund, and participant donations augment funding for the CDBG-funded Senior Nutrition Program.

Local funds from Los Angeles County Proposition C, as well as Measure M and Measure R, assist the City in removing architectural barriers, providing Dial-A-Ride service, providing a citywide shuttle service, and performing street rehabilitation and other capital improvements.

State Housing funds will be used to fund contracted services for the homeless, including outreach, case management, and substance abuse treatment.

Volunteer services and private donations provided additional resources to leverage CDBG funds.

Annual Action Plan
2023
16 OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City presently has no land that could be used to address the community’s needs. However, the City does explore opportunities to partner with non-profits to address unmet housing needs. The Community and Economic Development Department does post on its webpage an Available Property List (APL) for businesses seeking to locate in West Covina.

Discussion
See discussion above.

Annual Action Plan
2023
17 OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Improve/upgrade
public infrastructure
& facilities
2020 2024 Improve/upgrade
public facilities and
infrastructure
Area Benefit
Neighborhoods
Improve/upgrade
public facilities &
infrastructure
CDBG:
$694,486
Public Facility or
Infrastructure Activities
other than
Low/Moderate Income
Housing Benefit: 10000
Persons Assisted
2 Improve the wellbeing of low income
persons
2020 2024 Non-Homeless
Special Needs
City-Wide Public Service
Programs
CDBG:
$123,627
Public service activities
other than
Low/Moderate Income
Housing Benefit: 3898
Persons Assisted
3 Achieve fair housing
for all
2020 2024 Eliminate housing
discrimination
City-Wide Eliminate housing
discrimination
CDBG:
$10,000
Public service activities
other than
Low/Moderate Income
Housing Benefit: 75
Persons Assisted
4 Effective grant
administration
2020 2024 Effective grant
administration
City-Wide Effective grant
administration
CDBG:
$164,836
Other: 1 Other
Table 6 – Goals Summary
Annual Action Plan
2023
18 OMB Control No: 2506-0117 (exp. 09/30/2021)
Goal Descriptions
1 Goal Name Improve/upgrade public infrastructure & facilities Goal
Description
Improve neighborhood public infrastructure: Public facilities improvements, including parks (Friendship Park), facilities (Senior Center), and the rehabilitation of street in CDBG-eligible areas 2 Goal Name Improve the well-being of low-income persons Goal
Description
Improve the well-being of low-income persons: The City will provide financial support to public service programs. 3 Goal Name Achieve fair housing for all
Goal
Description
Achieve fair housing for all protected groups: The City will continue to fund a fair housing provider that will investigate housing discrimination complaints and tenant/landlord issues. 4 Goal Name Effective grant administration
Goal
Description
Grant Administration: The City staff will continue to administer the CDBG program in compliance with HUD regulations.

Table 7 – Goal Descriptions
Annual Action Plan
2023
19 OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
The City's planned actions include grant administration; providing fair housing services; providing services to low-income persons including, the homeless and the frail elderly; and improving neighborhoods. Planned projects are listed below.

Projects
# Project Name
1 Neighborhood Improvement Program
3 Fair Housing
4 Grant Administration
5 Domestic Violence Victim Advocate
6 Senior Meals Program
7 SGV YWCA Senior Citizens Assistance
8 ESGV Coalition for the Homeless
9 Assistance League of Covina Valley
10 Careship
11 Action Food Pantry
12 Project 29:11
13 Shepherd's Pantry
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The available CDBG funds will be allocated to projects that contribute to achieving the priority needs and goals established by the 5-Year Strategic Plan. The projects are consistent with the citizen input received during the development of the recently approved Consolidated Plan. The priorities have been approved by the City Council.

Applications for Funding: The Public Services Department solicited proposals from community-based organizations, nonprofits, City departments, and citizens interested in applying for funds and providing services to the West Covina community. The application form requests a description of the need and/or problem to be addressed by the project. This application process provides another means of identifying priority needs. Applications were reviewed by the CDBG Ad hoc Committee of the Community and Senior Services Commission. The Committee will hear presentations from applicants in late April Annual Action Plan
2023
20 OMB Control No: 2506-0117 (exp. 09/30/2021)
2023. Funding recommendations from the Committee will be considered by the City Council on May 16, 2023 as part of the proposed Action Plan.

The greatest challenge in meeting the underserved needs of low- and moderate-income persons is having limited financial resources. CDBG-CV funds enabled the City to fund services for which need dramatically increased because of COVID-19. It also freed regular CDBG to fund other eligible public services at a higher level. to The City will continue to use CDBG funding to support public service agencies that address the special needs of the underserved, including the elderly and frail elderly and persons belonging to protected classes that have been the victims of housing discrimination.

The City also proactively seeks additional resources to better meet the underserved needs.

Annual Action Plan
2023
21 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
1 Project Name Neighborhood Improvement Program
Target Area Area Benefit Neighborhoods
Goals Supported Improve/upgrade public infrastructure & facilities Needs Addressed Improve/upgrade public facilities & infrastructure Funding CDBG: $694,486
Description Park improvements, street improvements, facility (Senior Center) improvements
Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
10,000 low- and moderate-income persons
12,985 seniors
Location Description Friendship Park
Senior Center
Eligible Residential Streets
Planned Activities Friendship Park (Restroom and Lighting) Senior Center (Roof)
Eligible Residential Street Improvements
2 Project Name Fair Housing
Target Area City-Wide
Goals Supported Achieve fair housing for all
Needs Addressed Eliminate housing discrimination
Funding CDBG: $10,000
Description The Housing Rights Center will offer West Covina residents services from our four program areas, (1) Discrimination Complaint Investigation, (2) Landlord Tenant Counseling, (3) Education and Outreach, and (4) Legal Services.

Target Date 6/30/2024
Annual Action Plan
2023
22 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and
type of families that will
benefit from the
proposed activities
75 low- and moderate-income persons
Location Description City-wide. Admin office: 3255 Wilshire Blvd #1150, Los Angeles CA Planned Activities The City will contract with the Housing Rights Center to provide fair housing services.
3 Project Name Grant Administration
Target Area City-Wide
Goals Supported Effective grant administration
Needs Addressed Effective grant administration
Funding CDBG: $164,836
Description CDBG Program Administration
Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
Location Description Admin office: 1444 W. Garvey Ave. So., West Covina, CA Planned Activities Funds are used for general management, monitoring, and oversight of the CDBG Program, including the preparation of the Annual Action Plan and CAPER.
4 Project Name Domestic Violence Victim Advocate
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $20,000
Description This program follows up with victims of all domestic violence victim cases in West Covina.

Target Date 6/30/2024
Annual Action Plan
2023
23 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and
type of families that will
benefit from the
proposed activities
2,000 low- and moderate-income persons
Location Description City-wide. Admin office: Police Department, 1444 W Garvey Ave S, West Covina, CA
Planned Activities This program follows up with victims of all domestic violence victim cases in West Covina.
5 Project Name Senior Meals Program
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $60,000
Description This program serves meals in a congregate setting at the West Covina Senior Center.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
500 low- and moderate-income persons
Location Description 2501 E Cortez, West Covina, CA.

Planned Activities This program serves meals in a congregate setting at the West Covina Senior Center.
6 Project Name SGV YWCA Senior Citizens Assistance
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $4,127
Description This program connects seniors with a broad array of services that enable them to stay at their homes for as long as possible.

Target Date 6/30/2024
Annual Action Plan
2023
24 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and
type of families that will
benefit from the
proposed activities
60 low- and moderate-income persons
Location Description City-wide. 2501 E Cortez, West Covina, CA. Admin office: 101 S Barranca, Covina, CA
Planned Activities Access to services such as transportation, case management, information and assistance, in-home and other services. 7 Project Name ESGV Coalition for the Homeless
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $4,500
Description Emergency assistance provided to homeless persons.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
300 low- and moderate-income persons
Location Description 15701 Hill St, La Puente, CA 91744 Planned Activities ESGVCH operates the Emergency Assistance Center which provides walk-in emergency services to homeless and at-risk homeless individuals and families.
8 Project Name Assistance League of Covina Valley
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $5,000
Description The program will provide school clothing, shoes and supplies to children and young people from low-income families so they can attend school regularly
Target Date 6/30/2024
Annual Action Plan
2023
25 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number and
type of families that will
benefit from the
proposed activities
500 low- and moderate-income persons
Location Description 636 E San Bernardino Rd, Covina, CA Planned Activities The program will provide school clothing, shoes and supplies to children and young people from low-income families so they can attend school regularly
9 Project Name Careship
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $5,000
Description This program assists with the cost of childcare.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
5 low- and moderate-income families
Location Description Admin office: 1305 E Cameron, West Covina, CA Planned Activities This program assists with the cost of childcare. 10 Project Name Action Food Pantry
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $5,000
Description The program is comprised of a food bank which strives to relieve hunger.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
500 low- and moderate-income persons
Annual Action Plan
2023
26 OMB Control No: 2506-0117 (exp. 09/30/2021)
Location Description 17880 W Covina Blvd, Covina, CA
Planned Activities The Pantry provides groceries, which are both purchased and donated. Volunteers pick up, unload, and sort the food into nutritionally balanced packages. Seniors and disabled persons receive food twice a month, the homeless once a week and other families once a month.
11 Project Name Project 29:11
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $5,000
Description Funds will support the food bank operation of the program.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
390 low- and moderate-income families
Location Description 250 E San Bernardino Rd, Covina, CA Planned Activities Funds will support the food bank operation of the program. 12 Project Name Shepherd's Pantry
Target Area City-Wide
Goals Supported Improve the well-being of low-income persons Needs Addressed Public Service Programs
Funding CDBG: $5,000
Description Funds will be used to support the food bank Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
860 low- and moderate-income families
Location Description 657 E. Arrow Hwy, Unit J, Glendora, CA 91740 Planned Activities Funds will be used to support the food bank Annual Action Plan
2023
27 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed West Covina has two distinct geographic areas: City-wide and Area Benefit Neighborhoods.

CDBG investment for Fair Housing and Public Service Programs is made on a city-wide basis.

In prior years, CDBG investment for the Neighborhood Improvement Program has mostly been made in Area Benefit Neighborhoods; that is, in block groups where 51% or more of the population have lowand moderate-incomes. Based on the most recent data, the City has 22 block groups with 51% or more the population having low/moderate incomes. Please see the Appendices for a map that highlights these areas.

In PY 2023-2024, there is one activity under the Neighborhood Improvement Program: with proposed funding in the amount of $694,486.

The percentages below are based on estimated costs of proposed activities in Year 4. Of the entire budget of $982,949, Area Benefit is represented by the amount of the Neighborhood Improvement Program ($694,486). The balance of the budget is City-wide, through Fair Housing and Public Services ($123,627). Administration, proposed at $164,834, is not considered in this calculation. (Base:
$818,113)
Amendments may occur during the program year that will redistribute funds to activities on an area benefit basis.

Geographic Distribution
Target Area Percentage of Funds
City-Wide 15
Area Benefit Neighborhoods 85
Table 9 - Geographic Distribution
Rationale for the priorities for allocating investments geographically CDBG-eligible area benefit neighborhoods, within which area benefit basis projects are eligible are highlighted on the map, included in the appendices. Public services and Fair Housing are available on a Annual Action Plan
2023
28 OMB Control No: 2506-0117 (exp. 09/30/2021)
city-wide basis to low- and moderate-income persons. Eligible block groups are listed below.

Tract Block Group(s)
• CT 4053.01 BG 1, 2
• CT 4053.02 BG 2
• CT 4055.00 BG 2, 3
• CT 4062.00 BG 1, 2, 3
• CT 4065.00 BG 5
• CT 4066.02 BG 2, 4
• CT 4067.01 BG 1, 3
• CT 4067.02 BG 1, 2, 3
• CT 4068.00 BG 1, 3
• CT 4080.04 BG 1
• CT 4081.33 BG 2
• CT 4081.37 BG 2
• CT 4081.41 BG 1
Discussion
See discussion above.

Annual Action Plan
2023
29 OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Section 8 provides rental assistance to 579 families through programs administered by the Los Angeles County Development Authority (474) and Baldwin Park Housing Authority (105).

Of the 579 families, 503 are disabled or elderly. There are 411 families on the Section 8 Waiting List of the two housing authorities.

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 0
Special-Needs 0
Total 0
Table 10 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 579
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 579
Table 11 - One Year Goals for Affordable Housing by Support Type Discussion
Refer to discussion above.

Annual Action Plan
2023
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
The City does not have public housing; however, Los Angeles County Development Authority and the Baldwin Park Housing Authority administer the Section 8 Housing Choice Voucher program within West Covina. There are currently 554 West Covina families receiving Section 8 rental assistance and approximately 413 more residents on the waiting list. The amount of time spent on the waiting list often varies and can be as long as several years.

Actions planned during the next year to address the needs to public housing Not applicable to the City of West Covina.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable to the City of West Covina. The Los Angeles County Development Authority encourages the participation of public housing residents through Resident Councils. The role of a Resident Council (RC) is to improve the quality of life and resident satisfaction in self-help initiatives to enable residents to create a positive living environment for individuals and families living in public housing. The Baldwin Park Housing Authority (BPHA) owns and administers Mc Neil Manor, a “project-based public housing unit. Mc Neil Manor is a 12-unit low-income senior (62 years or older) housing development.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The Los Angeles County Development Authority is not a troubled PHA. LACDA has officially achieved "High Performer" status under HUD's Section 8 Management Assessment Program (SEMAP); therefore, is not designated as a "troubled" agency. Units are inspected, repaired, and maintained on a regular basis.

Discussion
The Development and Housing Authorities have prepared five-year Strategic Plans and an Annual Plans. The Plans guide the actions of the Housing Authority in addressing the needs of extremely low and very low-income families and include goals to increase the supply of affordable housing, promote self-sufficiency and asset development, ensure equal opportunity and affirmatively further fair housing, and in achieving consistency with each jurisdiction’s Consolidated Plan. The City will continue to monitor the Development and Housing Authority’s Plans and provide input as it pertains to West Covina residents to increase the supply of affordable housing.

Annual Action Plan
2023
31 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City plans to allocate CDBG public service funds to agencies that address the needs of the homeless such as emergency/transitional shelter, food insecurity and other basic needs. For the past several years, the City of West Covina has partnered with the Los Angeles Homeless Services Authority (LAHSA) to host and participate in the County-wide Homeless Count to better understand the number of homeless in our community as well as the region. In 2018, 277 unsheltered homeless persons were counted, up from the 158 counted in 2017 and the 48 counted in 2016. The results of the 2019 was 147 and the 2020 count results were 124. In 2021, HUD exempted the Los Angeles Continuum of Care from the Count. In 2022, the count dropped to 112. As of the writing of this report, the 2023 Count results have not been announced.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
In April 2022, the City contracted the Los Angeles Centers for Alcohol and Drug Abuse (LA CADA) to provide homeless outreach and case management services. On April 4, the City extended the agreement by a year. In FY 2023-2024, the City will fund its contract with LA CADA, in part, using State Housing Funds. LA CADA provides two full-time Outreach Navigators who work with the City's law enforcement outreach team to visit established encampments throughout the City, including all other designated homeless occupied areas, i.e., City Parks, abandoned buildings, parking lots etc. Services include substance use harm reduction, providing hygiene assistance and supplies, necessary clothing, water and snacks. Outreach Team transports clients to non-emergency medical transportation, established shower facilities, etc.

The Outreach Team conducts an American Society of Addictive Medicine (ASAM) triage. After conducting an ASAM triage, clients may be transported to either detox or residential treatment based upon outcome of assessment. LA CADA furnishes the City eight treatment beds.

The Team provides on-going intensive case management, which focuses primarily on entering clients into HMIS and conducting necessary follow-up. Ancillary case management services include procuring required government documents and linkage to medical, dental and mental health care.

County Measure H funds are administered by the SGV Council of Governments. In FY 2023-2024, the City will be member of a cohort of Cities that will receive outreach services provided by LA CADA. It is Annual Action Plan
2023
32 OMB Control No: 2506-0117 (exp. 09/30/2021)
expected that the City will receive an additional team for a full day each week.

The City is currently a member of the Police Department Program’s Mental Evaluation Team (MET) which is comprised of four (4) cities: Azusa, Covina, Glendora, and West Covina, which provide mental health services to homeless in each of our communities. One day per week, a mental health professional is dedicated to the City of West Covina to assist individuals throughout the community that have been displaced temporarily or are permanently homeless.

The City funds a two police officers for homeless outreach. In addition to the parks-related duties, this team are the first responders to homeless calls, and proactively seek contacts with the homeless (building trust relationships, which can help deescalate crisis situations and help individuals to accept social services). The team received specialized training in crisis communication, social services, etc., and is connected to the local and regional social service network, expanding upon longstanding partnerships that the City of West Covina has with other agencies, hospitals, churches, etc. The target population will be primarily street level and sheltered homeless, as well as those in need of mental health services. The team is supplemented by an existing partnership with Los Angeles County, who assigns a County Mental Health Clinician to our area, rotating among cities regionally. Police Officers focus a portion of their time at City parks and in the community to provide outreach to those homeless individuals in need of supportive services. In addition, they enforce park operating hours, and be able to mitigate illegal activity in the parks.

Addressing the emergency shelter and transitional housing needs of homeless persons The City provides CDBG funds to the East San Gabriel Valley Coalition for the Homeless. This agency provides advocacy, motel vouchers, gas vouchers, hot meals, showers, lunches, clothing, travel needs, rehabilitation and mental health placements, Winter Shelter, mail and message service and refers clients to partner agencies for further assistance. Up until recently, the Coalition has administered a transitional housing program. The program was discontinued due to lack of funding.

The City agreement with LA CADA includes eight (8) designated beds at its facilities.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The YWCA – WINGS Women’s Shelter is in West Covina. It is a 32-bed shelter for battered women and Annual Action Plan
2023
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
their children.

The City of West Covina is not a direct provider of homeless services. It does refer homeless persons to emergency shelters, transitional housing and supportive housing operated by public and private agencies located near the city. The City also amended the Zoning Code to indicate the where emergency shelters may be located by right.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City of West Covina does not receive funding from the Federal sources that require the implementation of supportive housing programs for persons returning from mental and physical health institutions. The City does not receive funds from sources that require the development and implementation of a Discharge Coordination Policy. However, the City has knowledge of the County’s discharge coordination policies.

The West Covina jail houses suspects awaiting court appearances or as long as it takes to book them and release them on a citation. Currently, any suspect in custody displaying medical and/or mental illness is taken for appropriate care either to a hospital or County jail facility where services can be provided. Suspects are also allowed to utilize a phone to make arrangements to be picked up.

Los Angeles County Department of Mental Health (DMH) regulations require the discharge planning process for Acute Care Hospitals, State Mental Hospitals, and Institutions for Mental Disease programs must address all the individual needs of homeless clients at treatment initiation. Housing resources on discharge include: independent living with rental assistance, family reunification, living with roommates, PSH, and nursing homes.

California law requires hospitals/regional hospital associations to have protocols for homeless patients.

The Hospital Association of Southern California, National Health Foundation, and Illumination Foundation's Recuperative Care Program must provide post-hospital healthcare services to homeless patients moving from acute care. Services include housing location assistance, residential medical and social support.

Los Angeles County Department of Health Services (DHS) regulations require health care facilities to provide appropriate housing location and supportive services to avoid discharge into homelessness.

Programs include: the Recuperative Care Program, nursing facilities, board and care, family reunification, permanent supportive housing (PSH), and affordable housing. DHS also funds 24/7 ES Annual Action Plan
2023
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
medical services where Case Managers work with patients to obtain housing, services, and benefits.

Discussion
See discussions above.

Annual Action Plan
2023
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The City’s 2021-2029 Housing Element describes constraints and barriers to maintenance, development and preservation of affordable housing.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City is committed to removing governmental constraints that hinder the production of housing and offers a “one-stop” streamlined permitting process to facilitate efficient entitlement and building permit processing. The 2021-2029 Housing Element recommends the following policies to mitigate the barriers to affordable housing:
• Support innovative public, private and non-profit efforts toward the development of affordable housing.
• Periodically review and revise the City’s development standards, if necessary, to facilitate quality housing that is affordable to all income levels.
• When feasible, consider reducing, subsidizing, or deferring development fees to facilitate the provision of affordable housing.
• Continue the provision of incentives, including the density bonus incentive program, which encourages developers to include affordable units in their projects. • Encourage production of accessory dwelling units as an additional source of infill housing opportunities.
• Identify funding to subsidize land costs for housing developments that include affordable units. • Provide flexibility in development standards to accommodate alternative approaches to provide affordable housing such as mixed-use projects.

Reduce Development Constraints: As part of the comprehensive Development Code update the City will review residential and mixed-use regulations to identify development standards or procedures that may constrain the development of affordable housing and housing for persons with special needs.

Specific Code amendments will include:
• Supportive housing - AB 2162 (2018) amended State law to require that supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria.
• Low barrier navigation centers - AB 101 (2019) added the requirement that low barrier navigation centers meeting specified standards be allowed by-right in areas zoned for mixed use Annual Action Plan
2023
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
and in non-residential zones permitting multi-family uses pursuant to Government Code §65660 et seq.

Priority Processing for Affordable and Special Needs Housing: Affordable housing developers often face constraints in developing affordable housing projects. One way the City can assist such developers is by providing fast-track/priority processing for low-income and special needs housing projects. This service can encourage affordable housing development by allowing developers to go through the approval and permitting process quicker keeping costs down and units affordable. It is important that following the construction of the project that units are monitored to ensure that subsequent tenants are households with special needs and/or lower income.

Accessory Dwelling Units: Allowing for the development of accessory dwelling units (ADUs) offers an important affordable housing option for lower-income households and others such as seniors, caregivers, or young adults. ADUs can also provide property owners with an additional source of income.

Recent changes to State law encourage ADU production, and the City amended local ADU regulations in 2020 in conformance with State law. The City will continue to monitor legislation and update City ADU regulations as necessary to ensure consistency with State law. In addition, the City will promote ADU development in the following ways:
• Assist property owners with ADU applications
• Post informational ADU flyers in City Hall, on the Planning Department website and other public places
Discussion:

In April of each year, the City transmits an Annual Housing Element Progress Report to the State Department of Housing and Community Development. The Report describes all the actions taken to implement the programs included in the adopted Housing Element.

Annual Action Plan
2023
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:

The following narratives describe the actions the City will undertake in FY 2023-2024 to address underserved needs, foster and maintain affordable housing, reduce lead-based paint, reduce the number of poverty-level families, develop the institutional structure, and enhance coordination between public and private housing and social service agencies.

Actions planned to address obstacles to meeting underserved needs The City will continue to use CDBG funding to support public service agencies that address the special needs of the underserved, including the elderly and frail elderly and persons belonging to protected classes that have been the victims of housing discrimination.

Actions planned to foster and maintain affordable housing The City’s housing stock contains six affordable multifamily projects and six affordable senior projects.

These units should be monitored and discussions with the property managers and/or owners should occur to address the development’s long-term affordability status. The following actions will be taken:
• Monitor the affordable housing projects to ensure compliance with rent restrictions • Maintain a list of the affordable housing inventory
Actions planned to reduce lead-based paint hazards
To increase an awareness of lead-based paint hazards, the City will notify applicants to the Housing Preservation Program to the dangers of lead based paint hazards posts information through distribution of an informational pamphlet and required testing on rehabilitation projects where paint may be disturbed. The City will also post links on its website alerting homebuyers and renters to the dangers of lead based paint hazards.

Actions planned to reduce the number of poverty-level families The City will carry out the following anti-poverty actions in coordination with its affordable housing plan:
• The City will continue to support the Section 8 Housing Choice Voucher Program and public housing units located within the community.
• The City will coordinate with the Los Angeles County Development Authority and Baldwin Park Housing Authority to increase the number of families that receive rental assistance. • The City will work with the Housing Authorities to encourage families receiving Section 8 rental assistance to participate and graduate from the Family Self-Sufficiency Program (FSS). The City Annual Action Plan
2023
38 OMB Control No: 2506-0117 (exp. 09/30/2021)
will periodically request information from the Housing Authority on FSS participation and graduation levels.

The City will provide funding for child care services. Access to childcare is a policy that contributes to helping the working poor to make ends meet and avoid poverty.

Actions planned to develop institutional structure
The Public Services Department, Community and Economic Development Department, and Police Department are the key departments involved in the Consolidated Plan and Action Plan process. The Public Services and Community and Economic Development Departments are responsible for capital improvements to facilities (i.e., senior center, parks, streets). The Police Department carries out a public service.

To strengthen internal coordination and timeliness of expenditures, the Public Services Department meets monthly with the Community and Economic Development Department and Finance Department.

The purpose of the meetings is to strengthen the delivery of projects in neighborhoods so that there are tangible physical and quality of life benefits resulting from the expenditure of CDBG and other funds.

The City also coordinates on a regular basis with the following housing providers:
• Los Angeles County Development Authority (Section 8)
• City of Baldwin Park Housing Authority (Section 8)
• Community and Economic Development Department (Housing Rehabilitation/Preservation) • Housing Rights Center (Fair Housing)
City activities include: collection of information regarding clients served, geographic distribution of clients served, and review and comment on Public Housing Agency Plans.

Coordination with health providers involves the periodic collection of lead-based incident statistics from the County of Los Angeles, Department of Health Services, Childhood Lead Poisoning Prevention Program. In addition, the City will continue to obtain information from the Los Angeles County Department of Health Services, Office of AIDS Programs and Policy.

Coordination with social service agencies is accomplished through the CDBG public service programs. This involves a notice of funding availability, evaluation of applications submitted including needs to be addressed, and monitoring and performance evaluation of funded social service agencies.

To strengthen the institutional structure for carrying out its Consolidated Plan and Action Plan, the City will strengthen the working relationship by providing input to and coordinating with the Los Angeles County Development Authority and Baldwin Park Housing Authority. Efforts to strengthen the Annual Action Plan
2023
39 OMB Control No: 2506-0117 (exp. 09/30/2021)
institutional structure involve review of the five-year and annual plans of each authority.

Actions planned to enhance coordination between public and private housing and social service agencies
During Program Year 4, the City will continue its coordination efforts with:
• Los Angeles County Homeless Services Authority (LAHSA) • Southern California Association of Governments (SCAG) • San Gabriel Valley Council of Governments (SGVCOG)
• Baldwin Park Housing Authority
• Los Angeles County Development Authority
In January 2018, LAHSA conducted a homeless count. 264 unsheltered homeless persons were counted in West Covina, up from the 165 counted in 2017. There were 147 persons counted in the 2019 Count and 124 in 2020. Due to COVID-19, there was no count in 2021. The Count dropped to 112 in 2022.

Results for the 2023 Count have not been released as of the writing of this report.

The City will continue to participate in the meetings and task forces of the SCAG and the SGVCOG.

The City will review the Annual Plans of the Development and Housing Authorities and provide input as appropriate.

Discussion:

Refer to the above narratives.

Annual Action Plan
2023
40 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Overall Benefit - PY 2023-2024 will be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 17,408

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 31,699

5. The amount of income from float-funded activities 0
Total Program Income: 49,107
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00% PY 2023-2024 will be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. In working with HUD to close out an old activity, $35,991.05 was returned to the line of credit ($4,292 in PI and $31,699.05 to the LA) in April 2023. As of this writing time, $13,115.88 is receipted and to be drawn in the current year. This table will change Annual Action Plan
2023
41 OMB Control No: 2506-0117 (exp. 09/30/2021)
based on draws. Drawing these amounts first contributed to an increased level of unobligated entitlement funds, which has been accounted for in the resources section.

Annual Action Plan
2023
42 OMB Control No: 2506-0117 (exp. 09/30/2021)
Attachments
Annual Action Plan
2023
43 OMB Control No: 2506-0117 (exp. 09/30/2021)
Attachment No. 1
Citizen Participation Comments
Annual Action Plan
2023
44 OMB Control No: 2506-0117 (exp. 09/30/2021)
Attachment No. 2
LMI Census Block Group Map
ATTACHMENT NO. 3
FY 2023-2024 CDBG PUBLIC SERVICE PROJECT APPLICANT

DESCRIPTIONS
Note: Descriptions shown in italics were taken from the applications of the respective service providers in which they respond to the question, “Describe your program (purpose, goal, etc.).”

1. Senior Meals Program - City of West Covina: The Congregate Meal Program serves meals at the West Covina Senior Center 4 days per week. Meals served must provide at least 1/3 of the recommended dietary allowances. Staff meets on a monthly basis with the County dietician to ensure this objective is met for participants. The seniors are receiving an estimated 40-50% of the required nutrients from the meals provided by the program. Annually the program serves approximately 35,000 meals. The program provides meals to seniors for a suggested $3 donation. Participants are encouraged to donate what they can regardless of the amount. In previous years, the program has been recognized by the Los Angeles County Local Area Agency on Aging as a Distinguished Site recipient. Currently, senior nutrition program participants are receiving 4 hot meals Monday-Thursday and 3 frozen meals and a snack bag with milk, juice, and fruit for Friday-Sunday weekly.

2. Domestic Violence Victim Advocate – West Covina Police Department: The City's Victim Advocate is partially funded from CDBG, and is responsible for following up with victims of all domestic violence cases that occur in West Covina, as well as some other crimes involving children and domestic situations.

The Victim Advocate guides domestic violence victims through the criminal justice and social service networks. An independent evaluation conducted by Cal State Los Angeles validated the work, citing this as the most useful service offered to domestic violence victims at the Police Department. The Victim Advocate serves as the liaison to County Adult Protective Services, the Domestic Violence Council, and other agencies and service networks. This project is a public service eligible for CDBG funding under 24 CFR §570.201(e). Service amounts vary somewhat from year to year due to crime trends (beyond the Police Department's control).

3. Careship - City of West Covina: The Careship program's primary purpose is to assist moderate to low-income West Covina residents enrolled full-time in a licensed childcare facility operated by the City of West Covina will be considered for the program. A new and separate Application is required prior to each session plus the backup documentation.

4. Housing Rights Center: Since the establishment of the Federal Fair Housing Act in 1968, promoting equal access to housing has been a priority for the federal, state, and local governments. The Housing Rights Center ("HRC") proposes to further these interests by providing the City of West Covina with fair housing and landlord/tenant services. Through the Fair Housing Program, the 2 HRC will actively support and promote freedom of residence to the end that all West Covina residents have the opportunity to secure the housing they desire and can afford, without discrimination based on their race, color, religion, gender, sexual orientation, national origin, familial status, marital status, disability, ancestry, age, source of income or other characteristics protected by law. A component of this program includes addressing problems that arise between landlords and tenants, (e.g., payment of rent, lease agreements, and habitability), which are often intertwined with issues of discrimination. HRC will offer West Covina residents services from our four program areas, (1) Discrimination Complaint Investigation, (2) Landlord/Tenant Counseling, (3) Education and Outreach, and (4) Legal Services.

5. Action Food Pantry: ACTION Food Pantry's purpose is hunger relief. Our goal is to provide food to the increasing number of needy in our community. Well over 100 families are served each week. ACTION actively seeks monetary and food donations to supplement grant funds. Unlike some organizations who have time limits, we allow our clients to participate in the program as long as they need food. ACTION Food Pantry concentrates on food distribution from our facility, and we also provide food to other food banks in the San Gabriel Valley who do not have adequate storage or refrigeration facilities. We also provide food to organizations that provide meals to the needy and homeless. In addition, we are the exclusive distributor for day old pastries and bread from Porto’s Bakery in West Covina. We distribute their bread and pastries to our clients as well as churches, senior citizen clubs, police departments, fire departments,, and hospitals.

6. ESGV Coalition for the Homeless - Emergency Food and Shelter: The East San Gabriel Valley Coalition for the Homeless (ESGVCH) is a non-profit 501(c)3 charitable organization, incorporated since 1994, which operates under a voluntary Board of Directors to directly aid people experiencing homelessness.

ESGVCH believes that all are called to turn attention beyond themselves to assist those who suffer especially the poverty-stricken, the hungry, and the homeless. It is our mission to bring hope and restore dignity to those in need by providing shelter, alleviating hunger, assisting with basic daily needs assisting to regain housing, raising awareness, and by working collaboratively with others to end hunger and homelessness. ESGVCH operates the Emergency Assistance Center (EAC) in providing walk-in emergency services to families and/or vulnerable individuals who are homeless or at risk of being. The Center is located in La Puente, and is open daily, Monday through Friday, during the hours of 8:30 a.m. - 1:30 p.m. EAC staff provides hot meals, sack lunches, clothing, hygiene kits, TAP cards w/a 20 ride a month subsidy, emergency shelter (in the form of motel vouchers for families with children), and referral services for those in need. The EAC also operates the Bridge Program, which provides longer-term emergency shelter in the form of motel vouchers to homeless families. While in the Bridge Program, clients are provided with the guidance they need to obtain their own permanent housing. A case manager works with the families in addressing areas that require immediate change. For example, if an adult in the family does not have a job, the Bridge Program case manager helps him/her with job hunting, assists the parents with obtaining childcare, resume building, etc. The case manager also assists the families with money management by looking at the family’s monthly expenses and designing a plan to decrease debt. The goal of the 3 program is for the families to save as much money as possible so that at the end of the program they can have money for a deposit towards their own permanent housing.

7. Project 29:11: Food Bank – The Food Bank is open on Fridays. Because so many still out of work and those that are working having a hard time putting food on their family’s table because of the increase in the cost of living, our clients can come once a week. Each family receives a cart of fresh produce, a variety of dairy products, pastries, breads, meats, and an assortment of other food. We are also able to provide diapers, baby formula, car seats, strollers, and other baby items. Last year we were able to help 11,418 families with food. This represents 39,594 adults and children. Clothing Rack – Our Clothing Rack is closed. We hope to reopen it again. Turkey Giveaway- On the Tuesday of the Thanksgiving week, we were able to help 300 families have a complete Thanksgiving dinner.

Not only did they get a turkey, a bag of food, but also a roasting pan. Community Christmas Party- This year we were able to hold our annual Christmas. We were able to give gifts to 400 children and a large bags of food to 200 families.

8. Assistance League of Covina Valley: Assistance League of Covina Valley (ALCV) is a nonprofit national philanthropic organization dedicated to helping to break the cycle of poverty in local communities by improving literacy and providing basic needs to economically disadvantaged families. The U.S. unemployment rate and the City of West Covina’s unemployment rate has decreased since the pandemic. As of January 2023, West Covina’s unemployment rate is 4.40%, but according to the United States Census, 9.0% of West Covina residents live at the poverty level. More recently, the advent of a substantial increase in inflation for goods and services has added to the need for extra help for families who are struggling financially. ALCV has been a chartered member of National Assistance League® since 1970 and Operation School Bell (OSB ) has been a continuous program of our organization since 1985 . The purpose of the program is to discreetly provide students with proper attire so that they can attend school regularly. Studies show that the root cause of poverty is the lack of education. Inadequate clothing can be one part of a sad equation that leads students to skip school, develop academic and behavioral issues and eventually drop out of school. Through OSB, underserved students in preschool through twelfth grade receive new clothing, supplies for school and personal hygiene kits.

Elementary school children are dressed at ALCV’s facility where they receive one-on-one attention from volunteer members. Each child is fitted with two pairs of navy pants or shorts, two white polo shirts, new shoes, six pairs of socks, six pairs of underwear, a hooded sweatshirt, a filled backpack, a family hygiene kit and a voucher with which to select gently-used clothing from our Thrift Shop. Due to COVID-19 restrictions last year, students could not come to our facility to be dressed. In an effort to serve all students needing assistance, we asked parents/guardians to provide us with students' clothing and shoe sizes. ALCV members filled reusable bags with the designated items plus a filled backpack, a family hygiene kit, a soft toy, a book and a Thrift Shop voucher. The bags were tagged with the names of the students, loaded into the chapter’s van, and delivered to the respective schools. Although most students are now dressed in our facility, OSB has chosen to continue the practice of delivering bags of clothing for those students who lack transportation to our facility. Students in middle schools and high schools select their own clothing, with help from 4 parents/guardians, during scheduled shopping trips to local Target stores. Their purchases are paid for at the checkout stand by our members. Receipts are retained, labeled with the names of the students and then given to ALCV’s treasurer to post. Purchased items are put into a reusable OSB bag that contains a family hygiene kit. In the Spring, graduating seniors are given an additional opportunity to shop for appropriate attire to wear for graduation and other senior activities and for college and employment interviews. Throughout the year we deliver “emergency kits” which contain several sizes of socks, underwear, shorts/pants, polo shirts and hooded sweatshirts, to elementary schools to be given to children who may have accidentally soiled their clothing. This service is being expanded to provide middle and high schools with “emergency kits”, containing many of the same items as those for the elementary schools, plus personal hygiene supplies for students. The cost to dress an elementary school student is $150 and the cost to dress a middle school or high school student is $175. The cost of supplies for a family hygiene kit, our most requested item, is $18 - $20. The number of students we are able to dress each year is limited only by the success of our fundraising efforts and by the schools’ commitment to identify and refer all students and families in need

9. Shepherd’s Pantry: Founded in 2004 as a free emergency food delivery service operated out of a rental storage unit, by 2005 Shepherd’s Pantry needed a walkin-food facility and leadership to help develop their pantry operations. The team looked to Cory’s Kitchen which was established in 2001 in Irwindale. Cory’s Kitchen’s culture encompassed emotional and spiritual support in addition to providing food; this approach was incorporated into Shepherd’s Pantry operations. In 2019 the two food pantries merged into the company now known as Shepherd’s Pantry with three locations in Glendora, Irwindale and La Puente (formerly in Baldwin Park). Our mission is: To provide food, resources and services from a faith-based perspective to those in need. We value the dignity of all individuals and strive to promote their independence. Our vision is: To alleviate hunger and to improve the well-being of those living in the San Gabriel Valley. We meet our mission by incorporating other services such as personalized case management, haircuts, homeless food support, home food delivery and a clothing pantry. In 2021 Shepherd’s Pantry created the Shepherd’s Help FundGoing Beyond food. The pandemic and economy highlighted the fact that many of those who come to us for food also have other greater needs. The Shepherd’s Help Fund’s goal is to prevent homelessness by assisting with various expenses, providing case management, and equipping people with tools and skill to help them achieve self-sufficiency and independence. Shepherd’s Pantry provides $40,000 in assistance annually through it Help Fund. Last year we assisted West Covina Residents with over $6,000 through our Help Fund.

10. YWCA of San Gabriel Valley - Senior Citizens Assistance Program (SCAP):

The goal of the YWCA SCAP (Case Management and Information & Referral/Assistance Services) is to connect seniors with a broad array of services that enable them to remain in their homes for as long as possible. These services include but are not limited to: Access to services such as transportation, case management, information and assistance; and in-home services such as personal care, chore, and homemaker assistance; Community services such as legal services, mental health services, and adult day care; and Community education and related programming that help to coordinate and integrate services for 5 seniors such as health screening, exercise/health programs, etc. Due to COVID19 regulations lifting, we have continued our regular on-site service at the West Covina Senior Center. BSW Case Managers will provide service to seniors living in West Covina in person and via telephone, telehealth and telehealth as needed.

The YWCA San Gabriel Valley Senior Services' model of providing effective Case Management and Information and Referral/Assistance (I & RIA) Services is based on the concept of linking clients to a culturally competent, locally accessible, and cost-effective integrated continuum of supportive services. In addition, our agency has proven its ability to respond in a timely manner to client’s requests for service, and within several hours if the request is urgent. Cultural/Linguistic Competency- Every one of our current case managers is either bilingual or multilingual; therefore, we are able to eliminate cultural/linguistic barriers to service and quickly connect clients with appropriate solutions and services. Our staffs cultural diversity eliminates cultural barriers to the linking of supportive services.

Integrated Continuum of Services- The YWCA’s broad range of supportive services which includes multiple nutrition service options, case management, information & referral/assistance, telephone reassurance, homemaking/chore service, and extensive outreach, education and referral services supports our goal of a seamless system of care for older adults who wish to continue living independently, including those who are frail. Local Access- Another advantage of our supportive services/case management program is that we connect on a daily basis with our target population due to our extensive service delivery system of 20 senior activity and meal centers and our large home delivered meals service area.

Social service agencies within our sendee area are familiar with YWCA Senior Sendees. Case Management Supportive Services Our case management model follows traditional methodologies based on the National Association of Social Workers (NASW) protocols with the ultimate goal of increasing clients 5 self sufficiency and assisting them to achieve their full potential. The outcome standard that YWCA San Gabriel Valley Senior Sendees will strive for is a 91% success rate. That is, 91% of the clients provided case management sendees will achieve self-sufficiency, and their full potential, and be able to live in their own homes independently with dignity and quality of life. 91% of older adults will transition from in-crisis or vulnerable living situations to stable or thriving.

CITY COUNCIL MEETING
MAY 16, 2023
ITEM # – CONSIDERATION OF FY 2023-2024 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLAN
Attachment No. 4
ATTACHMENT NO. 4

PRIORITIZATION
2020-2024

CONSOLIDATED
PLAN
Categories of Need Priority Level
Economic Development High
Homelessness High
Infrastructure Improvements High
Rental Housing High
Owner-Occupied Housing High
Public Facilities High
Non-Homeless Special Needs Medium
Public Services Medium
2023-2024 PROPOSED CDBG ACTION PLAN BUDGET
Project/Activity FY 2023-2024
Proposed

1. Neighborhood Improvement Program $ 694,486

2. Planning and Administration 164,836

3. Public Services 123,627
Total $ 982,949

PROPOSED
FY 2023-2024
CDBG

FUNDING
Project/Activity FY 2023-2024 Proposed

1. Neighborhood Improvement Program $ 694,486

2. Administration 164,836

3. Senior Meals Program (**) 60,000

4. Domestic Violence Victim Advocate (**) 20,000

5. Careship (**) 5,000

6. Housing Rights Center 10,000

7. Senior Assistance Program (YWCA) 4,127

8. Action Food Pantry 5,000

9. ESGV Coalition for the Homeless 4,500

10. Shepherd's Pantry 5,000

11. Project 29:11 (Food Pantry) 5,000

12. Assistance League (Op School Bell) 5,000

OPTIONS
The City Council has the following options:
 Approve staff’s recommendation.
 Provide alternative direction.

AGENDA ITEM NO. 9

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 16, 2023
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF SUMMARY OF INVESTIGATION AS REQUESTED BY THE CITY OF WEST COVINA IN THE MATTER OF: LAND ACKNOWLEDGMENT INCIDENT AT

CENTENNIAL EVENT
RECOMMENDATION:

It is recommended that the City Council receive and file report regarding the land acknowledgment incident that occurred on February 18, 2023.

BACKGROUND:

During the February 21, 2023 City Council meeting, the City Council, directed the City Attorney to initiate a third party investigation regarding the land acknowledgment incident that occurred on Saturday, February 18, 2023 during the City’s 100th Anniversary Centennial Spring Festival.

The City contracted with JL Group, LLC to investigate the incident.

DISCUSSION:

JL Group, LLC has completed its investigation and transmitted its report. The summary report is included as Attachment No. 1.

LEGAL REVIEW:

The City Attorney's Office has reviewed this agenda report.

Prepared by: David Carmany, City Manager
Attachments
Attachment No. 1 - Summary of Investigation
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness SUMMARY of INVESTIGATION
as requested by the City of West Covina
IN THE MATTER OF:

Land Acknowledgement Incident at Centennial Event
City of West Covina
INVESTIGATED BY:

Jeff Love, Esq.

Attorney Fact Finder
Jason C. Kravetz
Special Investigator
ATTACHMENT NO. 1
2 May 8, 2023
TO: THOMAS DUARTE
City Attorney
City of West Covina
FROM: JEFF LOVE
Attorney at Law
JL Group, LLC

JASON KRAVETZ
Special Investigator
JL Group, LLC
SUBJECT: SPECIAL INVESTIGATION
Land Acknowledgement Incident at Centennial Event
3 SCOPE OF INVESTIGATION
The scope of this investigation was to determine the following:
• What are the facts surrounding the land acknowledgement incident on Saturday February 18, 2023, at the Centennial/Spring Festival Event? • Who authorized the land acknowledgment to take place and how was it put onto the schedule?
• Was the City Council informed about the land acknowledgement in advance? • Why didn’t the acknowledgment take place?

EXECUTIVE SUMMARY
What are the facts surrounding the land acknowledgement incident on Saturday February 18, 2023, at the Centennial/Spring Festival Event.

Assistant City Manager Roxanne Lerma lead the efforts with organizing the Centennial Celebration/Spring Festival in February of 2023. The schedule and programs for the event were finalized and printed a week prior to the event.

The celebration started with a Centennial Dinner on Thursday February 16th which was attended by nearly 500 people. The following day, a three-day outdoor festival began in the downtown area.

This festival included informational booths, non-profit organizations, food vendors, carnival rides and entertainment.

On the day the outdoor festival began, Councilmember Brian Tabatabai contacted Lerma to inquire about the inclusion of a local indigenous group in the Centennial/Spring Festival Event. Lerma asked clarifying questions about what he was proposing to which Tabatabai explained that local resident Jamie Rocha had reached out and offered to perform a land acknowledgement ceremony.

He also stated Rocha was requesting booth space for her non-profit organization.

Although Rocha was not directed through proper channels to become a vendor or event participant, Lerma did what she could to accommodate Tabatabai’s request.

Before moving forward, Lerma reached out to Rocha to ask about the ceremony and was told that it was a blessing by the Gabrielino Shoshone Tongva Kizh Native American Tribe to pay tribute to the land and animals.

Later the same evening, Lerma reached out to Rocha and offered time for the ceremony on Saturday at 6:30 PM. She also followed up with an offer for booth space after one of the scheduled participants cancelled. Rocha accepted both offers.
4 On Saturday evening, Rocha arrived near the main stage around 6:00 PM and met up with Councilmember Tabatabai.

Shortly thereafter, other council members convened, discussed the land acknowledgement, openly questioned, and expressed disapproval while debating the matter. Rocha overheard and participated in some of the discussions.

Eventually the Mayor gave the approval to move forward with the ceremony, but Rocha was uneasy about continuing and pulled out of the event entirely.

Who authorized the land acknowledgment to take place and how was it put onto the schedule?
As the event organizer, Assistant City Manager Roxanne Lerma had the authorization to approve the participation of Jamie Rocha.

Jamie Rocha was not on any of the pre-printed schedules as those were produced a week prior.

Was the City Council informed about the land acknowledgement in advance? No. Councilmember Brian Tabatabai was aware the land acknowledgement ceremony was going to take place on Saturday evening as he was intending to participate. He showed up with his family and met with Ms. Rocha and her family prior to the event.

Councilmember Tabatabai did not inform any of the other council members as he didn’t feel this was the type of situation where notifications needed to be made. He opined that councilmembers are not told in advance about specific religious denominations who perform invocations, and felt this was similar to that.

Assistant City Manager Lerma did not specifically notify councilmembers as she was tasked with running the Centennial/Spring Festival Event and minor details were not being pre-approved by councilmembers.

No other cultural, racial, ethnic, or religious portions of the event planning process had necessitated a pre-approval, so the inclusion of a Native American blessing wouldn’t be any different.

Why didn’t the acknowledgment take place?
Unexpectedly, Assistant City Manager Roxanne Lerma could not be present for the Saturday evening kickoff. In her place, she had Recreation Services Supervisor Vanessa Ibanez run the events for the day. Lerma briefed Ibanez and was in constant contact throughout the day. 5 On Saturday evening at approximately 6:15 PM, Ibanez made her way towards the main stage area and met with Jamie Rocha and Councilmember Tabatabai. Councilmember Wu approached and asked, “What was going on?” and “Why was the council assembling near the stage?” Ibanez replied that “Brian was doing a land acknowledgement ceremony.” This concerned Councilmember Wu as he immediately stated this was not the time or place for a political statement. He asked Ibanez “Who approved this?” and “Why wasn’t the council told about this?” Ibanez immediately called Lerma and expressed Councilmember Wu’s concerns. This caused Lerma to call the City Manager to explain what was going on.

This was the first time the City Manager heard about the land acknowledgement ceremony. He stated these were details purposely not being run through him, because he entrusted Lerma to put the event together. Because of this delegation, he provided tacit approval to her event planning process and supported her decision to be inclusive with the land acknowledgement ceremony.

Over the next several minutes, the City Manager made calls to Councilmember Wu and to Mayor Diaz. Wu did not answer.

When Mayor Diaz answered, the City Manager inquired whether this was an event that he and his staff were supposed to be running. She agreed that it was a staff event, and said she would go over to the stage to see what was going on.

In the meantime, the City Manager texted all five councilmembers separately and said that he spoke with the Mayor, and that the land acknowledgement was approved by him and would be taking place.

When Mayor Diaz arrived near the stage, she met with Councilmembers Wu, Cantos and Tabatabai. All expressed their various opinions about the land acknowledgement and whether it should be taking place. Councilmember Wu said this was too political and shouldn’t be occurring at a celebratory event. Wu told the Mayor it was “her decision to make,” before walking away from the group and not returning.

The Mayor then asked Councilmember Tabatabai to read the statement he intended to make during the ceremony. Diaz and Cantos inquired about softening a portion to which Tabatabai agreed.

At this point, Rocha and her mother had already been watching and listening from a distance. They heard most of the back and forth between Diaz, Cantos, Tabatabai and sometimes Wu. They were also observing the body language of the participants.

After the councilmembers finished speaking, Mayor Diaz approached Jamie Rocha to ask about the process involved with the land acknowledgement blessing.

Rocha explained the ceremony, but also said she was aware that Councilmember Wu opposed the ceremony. Rocha commented that she was personally offended the ceremony was being deemed a political statement as she felt it marginalized indigenous people. 6 Diaz then compared Rocha’s inclusion as if “[Rocha] was showing up at [Diaz’s] quinceanera to celebrate her own 15th birthday.”
Rocha became emotional from this comment, at which point Mayor Diaz told her to go ahead with the ceremony and that she approved of it. Rocha said she was too emotional to move forward as the ceremony is supposed to come from a place of peace and happiness and pulled herself from the event as well as from her booth.

Ninety minutes later, Rocha posted on Facebook. Within a day, the story had circulated through many other social media sites and a couple of the councilmembers were immediately branded as racists.

Comments:

This independent investigation found the following:
• Rocha was added at the very last minute after a councilmember requested an accommodation from Assistant City Manager Roxanne Lerma. • Lerma was under no direction to obtain pre-approvals from the City Council for any of the performers, guests, or vendors for the event.
• Prior to planning this event, she was tasked with being diverse and inclusive for all cultural, racial, religious, and ethnic groups within West Covina and had already brought Chinese Dragon Dancers, Folklorico Performers, Filipino-American and Latin groups into the event.
• Only one councilmember was aware of the land acknowledgement prior to the event. • Nothing found during the investigation indicated that the other councilmembers were required to be told in advance, but Lerma had planned on being there to facilitate the ceremony.
• Councilmember Tabatabai agreed to alter the land acknowledgement statement after discussing it with Mayor Diaz and Councilmember Cantos. • Ultimately, Jamie Rocha was given permission by the Mayor to perform the ceremony, but too much back and forth about her inclusion tainted her opinion about the invitation and she declined.
• This independent investigation found no evidence that the discussions or decisions were based upon any implicit bias or overt discrimination against Jamie Rocha or her tribe. 7 • Two councilmembers voiced concerns that the City Manager told them he approved of the ceremony, but then allegedly told them he was unaware of it during an agenda meeting the following Tuesday. The investigation determined this was a “play on words” as the City Manager “approved” because he gave direction to the Assistant City Manager to plan the event. He had the trust that Lerma would put together a great threeday festival. He “officially” became aware when Lerma called him on Saturday evening to tell him what was happening.

METHODOLOGY
This investigation involved the review of documents, emails, as well as conducting interviews with City of West Covina employees, elected officials and private citizens. Once factual evidence was developed, the various statements of the witnesses were compared and contrasted with one another, as well as other evidence, and determinations of credibility were established.

Once credibility was established along with a factual framework of the alleged events, conclusions were formed based on the greater weight of the credible evidence. For the purpose of findings, direct and circumstantial evidence may be given equal weight. The investigation also involved:

A. Reviewing applicable City policies;
B. Reviewing applicable City documents, including any related investigatory records and emails;
C. Interviewing witnesses;
D. Following up on other evidentiary leads.

E. Reviewing all City Council meetings and Agendas between February-March 2023.

INVESTIGATIVE STRATEGY
The strategy of this investigation was to determine the circumstances centering around the invitation for Jamie Rocha to conduct a land acknowledgement ceremony, and the reasons why it didn’t take place.

This investigator determined that the best practice would be to obtain relevant documents, and then to conduct interviews with relevant witnesses to determine, based on the greater weight of the credible evidence, what factually occurred.
8 SOURCE OF THE COMPLAINT
A. Rosario Diaz (She requested this independent investigation.) Mayor
City of West Covina

WITNESSES
B. Jamie Rocha
Resident/Student/Non-Profit Employee
City of West Covina
C. Eileen Rocha
Jamie Rocha’s Mother
West Covina Resident
D. Phil Perez
DJ for Centennial Event/Spring Festival
West Covina Resident
E. Roxanne Lerma
Assistant City Manager
City of West Covina
F. Vanessa Ibanez
Recreation Services Supervisor
City of West Covina
G. David Carmany
City Manager
City of West Covina
H. Letty Lopez-Viado
Councilmember
City of West Covina
I. Ollie Cantos
Councilmember
City of West Covina
J. Brian Tabatabai
Mayor Pro-Tem
City of West Covina
9 K. Celenia Calderon
Councilmember Tabatabai’s Spouse/Educator
West Covina Resident
L. Tony Wu
Councilmember
City of West Covina

CREDIBILITY OF THE WITNESSES
The analysis of the credibility of the witnesses is an important aspect of a fact-finding investigation. As an accepted rule of evidence, a fact finder can disregard the statements of a witness who has been found to have provided false or unreliable information during their testimony in a matter. Those witnesses’statements can be disregarded in their entirety and not believed unless there is compelling evidence to conclude that individual statements otherwise are true.1 Concerning the witnesses’ statements, this fact finder considered:

A. The witness’ demeanor while providing a statement and the manner in which they provided the statement.

B. The character of the witness’ statement.

C. The extent of the witness’ capacity to perceive, to recollect, or to communicate any matter about which they gave a statement.

D. The extent of the witness’ opportunity to perceive any matter about which he/she gave a statement.

E. The witness’ character for honesty or veracity or their opposites.

F. The existence or nonexistence of a bias, interest, or other motive.

G. A statement previously made by the witness that is consistent with their statement during the fact-finding investigation.

H. A statement made by the witness that is inconsistent with any part of their statement during the fact-finding investigation.

I. The existence or nonexistence of any fact given in statements by the witness.

J. The witness’ attitude toward the fact-finding investigation in which they gave a statement or toward the giving of a statement.
1 See California Civil Jury Instruction Section 5003.
10 Credibility Discussion
All the involved parties were found to be credible witnesses in this investigation. Each provided their version of events, as perceived, and were forthcoming about what they witnessed.

West Covina City CouncilMay 16, 2023

West Covina City Council
May 16, 2023