Agenda packet, regular meeting — West Covina City Council, May 7, 2024 (part 1 of 3)

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
MAY 7, 2024, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Brian Calderón Tabatabai
Mayor Pro Tem Tony Wu
Councilwoman Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
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 7, 2024, 7:00 PM

REGULAR MEETING

INVOCATION
Led by Pastor Matt Chavez from One and All Church

PLEDGE OF ALLEGIANCE
Led by Councilwoman Lopez-Viado

ROLL CALL

REPORTING OUT FROM CLOSED SESSION

PRESENTATIONS
Proclamation Honoring National Police Week May 12 - May 18, 2024.

Proclamation Celebrating the 55th Annual Professional City Clerk Week May 5 - May 11, 2024.

Presentation on Sober Living Facilities.

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

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.

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 APRIL 16, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE APRIL 16, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

That the Council approve the April 16, 2024, City Council/Successor Agency Regular Session Meeting Minutes and the April 16, 2024, City Council/Successor Agency Regular Closed Session Meeting Minutes.

ORDINANCES FOR ADOPTION - Procedural Waiver. Waive full reading of each ordinance on the agenda and authorize the approval of each ordinance by title only. 2) CONSIDERATION OF ADOPTION OF ORDINANCE AMENDING SECTION 5608.2 OF 2) CONSIDERATION OF ADOPTION OF ORDINANCE AMENDING SECTION 5608.2 OF SECTION 10-24 OF THE WEST COVINA MUNICIPAL CODE RELATING TO PUBLIC

FIREWORKS DISPLAY REQUIREMENTS AND APPROVAL OF PUBLIC DISPLAYS OF

FIREWORKS FOR WEST COVINA UNIFIED SCHOOL DISTRICT AND CITY OF WEST COVINA
It is recommended that the City Council take the following actions:

1. Approve the permit for a public fireworks display for the Mt. SAC Early College Academy Graduation Ceremony on June 4, 2024.

2. Approve the permit for a public fireworks display for the Edgewood High School Graduation Ceremony on June 5, 2024.

3. Approve the permit for a public fireworks display for the West Covina High School Graduation Ceremony on June 6, 2024.

4. Approve the permit for a public fireworks display for the City of West Covina Fourth of July Celebration on July 4, 2024.

5. Adopt the following ordinance:

ORDINANCE NO. 2522 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING SECTION 5608.2 (PERMIT REQUIRED) OF SECTION 5608 (FIREWORKS DISPLAY) OF CHAPTER 56 (EXPLOSIVES AND FIREWORKS) OF THE 2022 CALIFORNIA FIRE CODE AS SET FORTH IN ARTICLE II (FIRE CODE) OF CHAPTER 10 (FIRE PREVENTION AND PROTECTION) OF THE

WEST COVINA MUNICIPAL CODE

COMMUNITY DEVELOPMENT
3) CONSIDERATION OF CONSTRUCTION SERVICES AGREEMENT FOR CORTEZ SENIOR & COMMUNITY CENTER ROOF AND HVAC IMPROVEMENTS - PROJECT NO. 24009 It is recommended that the City Council take the following actions, contingent upon the City Council's approval of the amendments to the Program Year 2019 and Program Year 2023 Community Development Block Grant (CDBG) Action Plans and corresponding budget amendment:

1. Reject the bid submitted by MBC Enterprises, Inc. as non-responsive;

2. Award the Construction Services Agreement for the Cortez Park Senior & Community Center Roof and HVAC Improvements Project (Project No. 24009) to AC Pros, Inc. as the lowest responsible bidder;

3. Authorize the City Manager to negotiate and execute an agreement with AC Pros, Inc. for $1,395,000.00, in such final form as approved by the City Attorney;

4. Authorize the City Manager to negotiate and execute any amendments up to 10% of the awarded agreement amount;

5. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (Replacement or Reconstruction).

END OF CONSENT CALENDAR

HEARINGS

PUBLIC HEARINGS
4) CONSIDERATION OF PROPOSED AMENDMENTS TO THE PROGRAM YEAR (PY) 2019 AND PY 2023 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLANS It is recommended that the City Council take the following actions:

1. Conduct a Public Hearing regarding the PY 2019 and PY 2023 CDBG Action Plans;

2. Approve the proposed amendment to the PY 2019 CDBG Action Plan;

3. Approve the proposed amendments to the PY 2023 CDBG Action Plan; and

4. Approve the following resolution:

RESOLUTION NO. 2024-07 - A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2023 AND ENDING JUNE 30, 2024 (PY 2019 AND PY 2023 CDBG AAP AMENDMENTS)

DEPARTMENTAL REGULAR MATTERS

FINANCE DEPARTMENT
5) PROPOSED FISCAL YEAR 2024-25 OPERATING AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
It is recommended that City Council:

Receive and file the Proposed Fiscal Year 2024-25 Operating and Capital Improvement Program Budget;

1. Direct that the proposed budget be publicly disseminated, including at community budget workshops on May 8, 2024 and May 13, 2024; and

2. 3. Schedule the budget for consideration at the June 4, 2024 City Council meeting. 6) CONSIDERATION OF CITY MANAGER EMPLOYMENT AGREEMENT WITH PAULINA

MORALES
It is recommended that the City Council:

1. Appoint Paulina Morales as the City Manager.

2. Approve the City Manager Employment Agreement with Paulina Morales.

MAYOR/COUNCILMEMBERS REPORTS
AB 1234 Conference and Meeting Report (verbal, if any)
(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.)

CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION (Per City of West Covina Standing Rules 4.f - Requests for reports, studies, or investigations that are not readily available must be placed on the City Council/Successor Agency agenda as items of business and must be approved by a majority of the City Council/Successor Agency Board.)

CITY COUNCIL COMMENTS

ADJOURNMENT
Next Tentative City Council Meeting
Regular Meeting May 21, 2024 7:00 PM

RULES OF DECORUM
The following are excerpts from the West Covina Municipal Code:

Sec. 2-48. Manner of addressing council; time limit; persons addressing may be sworn.

Each person addressing the council shall step up to the rostrum, shall give his or her name and city of residence in an audible tone of voice for the record and unless further time is granted by the council, shall limit his or her address to five (5) minutes. a.
b. The city council may establish a limit on the duration of oral communications.

All remarks shall be addressed to the council as a body and not to any member thereof. No person, other than the council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the council, without the permission of the presiding officer. No question shall be asked of a councilmember except through the presiding officer. c.

The presiding officer may require any person to be sworn as a witness before addressing the council on any subject. Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the Penal Code of the state.
d.

Sec. 2-50. Decorum--Required.

While the council is in session, the members shall preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided. a.

Members of the public shall not willfully disrupt the meeting or act in a manner that actually impairs the orderly conduct of the meeting.

For the purposes of this code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the Mayor that continuing to do so will be a violation of the law:
a. Addressing the Mayor and City Council without first being recognized. b. Persisting in addressing a subject or subjects, other than that before the Mayor and City Council. c. Repetitiously addressing the same subject.
d. Failing to relinquish the podium when directed to do so.

From the audience, interrupting or attempting to interrupt, a speaker, the Mayor, a council member, or a staff member or shouting or attempting to shout over a speaker, the Mayor, a council member or a staff member. e.

As a speaker, interrupting or attempting to interrupt the Mayor, a council member, or a staff member, or shouting over or attempting to shout over the Mayor, a council member, or a staff member. Nothing in this section or any rules of the council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the City or of the acts or omissions of the City Council. It shall be unlawful to violate the provisions of this Section. f.
b.

If any subsection, sentence, clause, or phrase or word of this Section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Section. The City Council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.

Sec. 2-52. Persons authorized to be within council area.

No person, except city officials, their representatives and members of the news media shall be permitted within the rail in front of the council chamber without the express consent of the council.

The following are excerpts from the Penal Code
148(a) (1) Every Person who willfully resists, delays, or obstructs any public officer, peace officer, or an emergency medical technician, as defined in Division 2.5 (commencing with Section 1797) of the Health and Safety code, in the discharge or attempt to discharge any duty of his or her office or employment, when no other punishment is prescribed, shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail not to exceed one year, or by both that fine and imprisonment. 403 Every person who, without authority of law, willfully disturbs or breaks up any assembly or meeting that is not unlawful in its character, other than an assembly or meeting referred to in Section 303 of the Penal Code or Section 18340 of the Elections Code, is guilty of a misdemeanor.

AGENDA ITEM NO. 1

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE APRIL 16, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

RECOMMENDATION:

BACKGROUND:

That the City Council adopt the attached minutes.

Prepared by: Lisa Sherrick, Assistant City Clerk
Attachments
Attachment No. 1 - 4/16/2024 Closed Session Minutes Draft Attachment No. 2 - 4/16/2024 Regular Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO.1

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
APRIL 16, 2024, 6:00 PM

REGULAR MEETING - CLOSED SESSION
MANAGEMENT RESOURCE CENTER 3RD FLOOR
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Brian Calderón Tabatabai
Mayor Pro Tem Tony Wu
Councilwoman Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz

MINUTES

CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Calderón Tabatabai on Tuesday, April 16, 2024, at 6:00 p.m., in the Management Resource Center, 1444 West Garvey Avenue South, West Covina, California.

ROLL CALL
Council Members

Present: Council Members Rosario Diaz, Ollie Cantos, Letty Lopez-Viado, Mayor Pro Tem Wu, Mayor Brian Calderón Tabatabai

Absent: None
City Staff: Paulina Morales, Acting City Manager, Thomas Duarte, City Attorney, Stephanie Sikkema, Finance Director and Interim Human Resources and Risk ATTACHMENT NO.1
Management Director, Richard Bell, Chief of Police, Mildred O’linn, Manning & Krass, Ellrod, Ramirez, Trester, LLP, and Jeffery Stockley, Libert Cassidy Whitmore.

PUBLIC COMMENTS ON ITEMS ON THE AGENDA

CLOSED SESSION

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

1. Julian Pulido v. County of Los Angeles, et al. (United States District Court, Case No: 2:23-cv-06266-SVW-JPR)

2. Ronnie Parham vs. City of West Covina, et al, (United States District Court, Case No. 2:21-cv-09114-FLA-GJS)

3. Christopher T. Huynh vs. City of West Covina et al. (LA Superior Court, Case No. 22STCV33466)

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code § 54956.8

1. Property: Plaza West Covina City Property (8474-007-940) Agency Negotiator: Morales, Duarte, Hildebrand
Negotiating Parties: TXRH West Covina
Under Negotiation: Price and Terms

2. Property: Plaza West Covina City Property (8474-007-939) Agency Negotiator: Morales, Duarte, Hildebrand
Negotiating Parties: Plaza West Covina
Under Negotiation: Price and Terms

3. PUBLIC EMPLOYEE APPOINTMENT - Pursuant to Government Code §54957(b)(1) Title: City Manager

4. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
City Negotiators: Morales, 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
ATTACHMENT NO.1
 Mid-Management Employees
 W.C. Police Management Association
Unrepresented Employee Group
 Department Heads

REPORTING OUT
City Attorney Thomas Duarte reported that no action was taken during the Closed Session Meeting.

ADJOURNMENT
A motion to adjourn the Regular Closed Meeting was made by Mayor Calderón Tabatabai, and the meeting was adjourned at 7:00 p.m. The next regularly scheduled Regular Closed City Council Meeting will be held on Tuesday, May 7, 2024, at 7:00 p.m. in the Management Resource Center 3rd Floor, 1444 West Garvey Avenue South, West Covina, California.

Submitted By:
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Brian Calderón Tabatabai
Mayor

ATTACHMENT NO. 2

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
APRIL 16, 2024, 7:00 PM

REGULAR MEETING

CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Brian Calderón Tabatabai
Mayor Pro Tem Tony Wu
Councilwoman Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz

MINUTES

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY

CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Brian Calderón Tabatabai on Tuesday, April 16, 2024, at 7:09 p.m., in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California.

INVOCATION
Moment of Silent Prayer/Meditation
ATTACHMENT NO. 2

PLEDGE OF ALLEGIANCE
Led by Councilman Cantos

ROLL CALL

Present: Council Members Cantos, Diaz, Lopez-Viado Mayor Pro Tem Wu, Mayor Calderón Tabatabai

Absent: None

REPORTING OUT FROM CLOSED SESSION
City Attorney Thomas Duarte reported that no action was taken during the Closed Session Meeting.

PRESENTATIONS
 Proclamation Acknowledging April as Autism Awareness Month  Proclamation Observing Arbor Day
 Proclamation Honoring West Covina Small Business Week April 29 – May  2, 2024
 Certificate Commemorating National Crime Victims' Right Week  Certificate Celebrating West Covina Police Department Baker to Vegas Win

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

ORAL COMMUNICATIONS - Three (3) minutes per speaker
John Shewmaker
Sam Mercado
Lisette Trejo
Levy Elly
Christian Sanchez
Peter Davis
John Shutt
Huda
Zain
Alejandra
Zain Hasan
Nazle Janjua
R. Robinson
Caelyn Oei
Melissa Lopez
CC
Audry Miller
Dan Miller
Phillip G
Shannon Volk
ATTACHMENT NO. 2
Lance Volk
Avraham Stern
Selena H
Kenneth T
Ame
Amina Hearna
Bill Elliot
Patricia Powert
Jason Powert
Liza Pena
Esma Ali
Gloria Angeles
Stephen Caropino
Mario Sobalvarro
Sarah Torres
May

CONSENT CALENDAR
ACTION: Motion by Mayor Pro Tem Wu and Second by Councilwoman LopezViado, 5-0 to: Approve Consent Calendar Items 1-4.

APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE APRIL 2, 2024, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE APRIL 2, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

Carried 5-0 to: approve the April 2, 2024, City Council/Successor Agency Regular Session Meeting Minutes and the April 2, 2024, City Council/Successor Agency Regular Closed Session Meeting Minutes.

ORDINANCES FOR ADOPTION
2) CONSIDERATION OF ADOPTION OF ORDINANCE NO. 2520 PERTAINING TO ZONE CHANGE NO. 23-02, REZONING PROPERTIES IN THE PLANNED INDUSTRIAL (I-P), PUBLIC BUILDING (P-B), MEDIUM COMMERCIAL (C-2) AND HEAVY COMMERCIAL (C-3) ZONES AND REZONING THE REGIONAL

COMMERCIAL, OFFICE PROFESSIONAL, NEIGHBORHOOD COMMERCIAL, AND

SERVICE COMMERCIAL ZONES WITH MIXED USE OVERLAY IN ASSOCIATION

WITH THE DEVELOPMENT CODE UPDATE AND REZONING CERTAIN

PROPERTIES FOR LAND USE CONSISTENCY, AND MAKING A DETERMINATION

THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) (COMMON SENSE EXEMPTION)
ATTACHMENT NO. 2

Carried 5-0 to: adopt the following ordinance:

ORDINANCE NO. 2520 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA ADOPTING ZONE CHANGE NO. 23-02, REZONING

PROPERTIES IN THE PLANNED INDUSTRIAL (I-P), PUBLIC BUILDING (P-B), MEDIUM COMMERCIAL (C-2) AND HEAVY COMMERCIAL (C-3) ZONES AND

REZONING THE REGIONAL COMMERCIAL, OFFICE PROFESSIONAL,

NEIGHBORHOOD COMMERCIAL, AND SERVICE COMMERCIAL ZONES WITH

MIXED USE OVERLAY IN ASSOCIATION WITH THE DEVELOPMENT CODE

UPDATE AND REZONING CERTAIN PROPERTIES FOR LAND USE

CONSISTENCY, AND MAKING A DETERMINATION THAT THE PROJECT IS

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) (COMMON SENSE EXEMPTION)

FINANCE DEPARTMENT
3) CONSIDERATION OF PURCHASING REPORT AND REJECTION OF BIDS AND

REQUESTS FOR PROPOSALS

Carried 5-0 to: take the following actions:

1. Receive and file the Purchasing Report for April 1, 2023 to March 31, 2024.

2. Reject the unawarded bids and requests for proposals detailed within the staff report.

FIRE DEPARTMENT
4) CONSIDERATION OF AMENDING SECTION 5608.2 OF SECTION 10-24 OF THE

WEST COVINA MUNICIPAL CODE RELATING TO PUBLIC FIREWORKS DISPLAY

REQUIREMENTS

Carried 5-0 to: introduce the following ordinance:

WEST COVINA MUNICIPAL CODE

END OF CONSENT CALENDAR

DEPARTMENTAL REGULAR MATTERS
ATTACHMENT NO. 2
5) CONSIDERATION OF CITRUS STREET AT CAMERON AVENUE IMPROVEMENT

OPTIONS
ACTION: Motion by Mayor Pro Tem Wu and Second by Councilwoman LopezViado, 5-0 to: approve the following:

1. Table the item to a future meeting; and

2. Send the item back to the community to gather additional input plus all the recommendations presented to Council including the road diet option; and

3. Extend the road diet to include Azusa to Grand; and

4. Accident counts at Hollenbeck and Cameran and Barranca and Cameran; and

5. Expand the notification to 1000 feet.

MAYOR/COUNCILMEMBERS REPORTS
 None

CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION  Councilman Cantos requests revisit an issue regarding solar farm possibilities at BKK area. Second by Mayor Calderón Tabatabai – no objection  Mayor Calderón Tabatabai request to place a cease fire Resolution on the agenda there is no second – motion fails.

CITY COUNCIL COMMENTS
 None

ADJOURNMENT
A motion to adjourn the Regular Meeting was made by Councilwoman Lopez-Viado, and the meeting was adjourned at 10:47 p.m. The next regularly scheduled Regular City Council Meeting will be held on Tuesday, May 7, 2024, at 7:00 p.m. in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California.

Submitted by:
____________________
Lisa Sherrick
Assistant City Clerk
__________________________
Brian Calderón Tabatabai
Mayor
AGENDA ITEM NO. 2

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Paulina Morales, Acting City Manager
SUBJECT: CONSIDERATION OF ADOPTION OF ORDINANCE AMENDING SECTION 5608.2 OF SECTION 10-24 OF THE WEST COVINA MUNICIPAL CODE RELATING TO PUBLIC

FIREWORKS DISPLAY REQUIREMENTS AND APPROVAL OF PUBLIC DISPLAYS OF

FIREWORKS FOR WEST COVINA UNIFIED SCHOOL DISTRICT AND CITY OF WEST COVINA
RECOMMENDATION:

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

1. Approve the permit for a public fireworks display for the Mt. SAC Early College Academy Graduation Ceremony on June 4, 2024.

2. Approve the permit for a public fireworks display for the Edgewood High School Graduation Ceremony on June 5, 2024.

3. Approve the permit for a public fireworks display for the West Covina High School Graduation Ceremony on June 6, 2024.

4. Approve the permit for a public fireworks display for the City of West Covina Fourth of July Celebration on July 4, 2024.

5. Adopt the following ordinance:

PREVENTION AND PROTECTION) OF THE WEST COVINA MUNICIPAL CODE BACKGROUND:

On November 15, 2022, the City Council adopted Ordinance No. 2503, adopting by reference the 2022 California Fire Code, with amendments. Ordinance No. 2503 is codified in Article II (Fire Code) of Chapter 10 (Fire Prevention and Protection) of the West Covina Municipal Code.

In Section 10-24 of Article II, the City added Section 5608.2 to Section 5802 of Chapter 56 of the 2022 California Fire Code, which establishes the procedure to apply for and obtain a permit to conduct public display of fireworks. Section 5608.2 provides: "The city council may permit any person, licensed by the State Fire Marshal, to conduct a public display of fireworks, and for that purpose to use and discharge fireworks at such times and such places in the city as the city council may mix and establish, provided that a written application for a permit to do so is filed with the chief of the fire department of the city at that a written application for a permit to do so is filed with the chief of the fire department of the city at least 15 days in advance of the date of the display. It shall be the duty of the chief of the fire department to whom the application for a permit is made to make an investigation and submit a report of his or her findings and recommendations for or against reasons therefore, to the city council. The city council have the power in its discretion to grant or deny the permit. If the permit is granted, the applicant shall furnish the city with a certificate of insurance in adequate amount, which shall also contain a clause holding the city harmless from any damage or injury resulting from granting the permit." Based on the existing requirements of Section 5608.2, there is not adequate time for the Fire Chief to review an application and make recommendations to the City Council. Staff prepared the proposed Ordinance No. 2522 to streamline the process for approving public display permits by granting the authority to grant such permits to the Fire Chief. The proposed Ordinance also clarifies the requirements for public display permit applications and public displays of fireworks.

The City Council introduced Ordinance No. 2522 at its regular meeting on April 16, 2024.

DISCUSSION:

The proposed Ordinance No. 2522 further amends Section 5608.2 to include the following:

Makes it unlawful to use or discharge any fireworks or pyrotechnic devices without first obtaining a permit from the Fire Chief.

Requires an application for a public display of fireworks or to use or discharge pyrotechnic special effects to be submitted to the Fire Chief at least 60 days before the proposed date of the display, and outlines the items that must be included with the application. Applicants will be required to submit proof of general liability insurance coverage of at least $5,000,000, naming the City as an additional insured, and to execute an indemnification agreement.

Requires payment of a fee in the amount established by City Council resolution. The current fee is $270.

Sets forth the Fire Chief's authority to approve permits to conduct public displays of fireworks or pyrotechnic special effects, including authority for the Chief to impose conditions on such displays.

Also authorizes the Fire Chief to approve changes to an approved display.

Sets forth requirements for any permit issued.

Establishes an appeal procedure.

Provides authority for the City Manager to review and overrule any decision of the Fire Chief.

The proposed Ordinance also includes required findings regarding the City's climatic, topographical, and geographic conditions.

Staff recommends that the City Council adopt Ordinance No. 2522. If adopted, the Ordinance will take effect on the 31st day following adoption, which is on or about June 7, 2024.

Because the proposed Ordinance is still pending, applications for upcoming public fireworks displays are governed by the current requirements of Section 5608.2. In accordance with the current requirements, the procedure for an application for a permit for a public fireworks display requires the Fire Chief to prepare a report regarding his findings and recommendations for or against issuance of a permit for the City Council's review. (Attachment No. 2). The City Council has the power in its discretion to grant or deny any permit.

The West Covina Unified School District and the City of West Covina Community Services Department have submitted applications to the Fire Chief for permits for the public fireworks displays described in the table below. As detailed in the Fire Chief's report included as Attachment No. 2, the Fire Chief supports the issuance of the requested permits.

Item
No.

Fireworks Display Location of Display Date Time
1 Mt. SAC Early College
Academy
Graduation Ceremony
West Covina High School
1609 E. Cameron Avenue June 4, 2024 8:15 PM
2 Edgewood High School
Graduation Ceremony
West Covina High School
1609 E. Cameron Avenue June 5, 2024 8:15 PM
3 West Covina High
School
Graduation Ceremony
West Covina High School
1609 E. Cameron Avenue June 6, 2024 8:15 PM
4 City of West Covina
Independence Day
Celebration
West Covina Sports Complex July 4, 2024 9:00 PM
LEGAL REVIEW:

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

OPTIONS:

The City Council has the following options:

1. Approve staff's recommendation; or

2. Provide alternative direction
Prepared by: Vincent Capelle, Fire Chief
Fiscal Impact
FISCAL IMPACT:

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

Attachments
Attachment No. 1 - Ordinance No. 2522
Attachment No. 2_Fireworks Display Fire Chief report
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
ATTACHMENT NO. 1
Ordinance No. 2522

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ORDINANCE NO. 2522

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, AMENDING SECTION
5608.2 (PERMIT REQUIRED) OF SECTION 5608
(FIREWORKS DISPLAY) OF CHAPTER 56 (EXPLOSIVES
AND FIREWORKS) OF THE 2022 CALIFORNIA FIRE

CODE AS SET FORTH IN ARTICLE II (FIRE CODE) OF
CHAPTER 10 (FIRE PREVENTION AND PROTECTION) OF

THE WEST COVINA MUNICIPAL CODE
The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, California Health and Safety Code Section 18938 makes certain provisions published in the California Building Standards Code pursuant to California Health and Safety Code Section 17922 applicable to all occupancies throughout the State; and
WHEREAS, the 2022 version is the most recent version of the California Building Standards Code and went into effect on January 1, 2023; and WHEREAS, the 2022 California Building Standards Code includes the 2022 California Fire Code (“2022 Fire Code”); and
WHEREAS, California Health and Safety Code Section 17958 permits cities to amend the requirements of the California Building Standards Code, which includes the California Fire Code, in accordance with California Health and Safety Code Sections 17958.5 and 17958.7; and
WHEREAS, Section 13143.5 of the California Health and Safety Code permits the City, by ordinance, to make changes or modifications to the California Fire Code that are more stringent than the requirements published in the California Fire Code, relating to fire and panic safety; and
WHEREAS, California Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Fire Code to make such modifications in such provisions as a city determines, pursuant to California Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, California Health and Safety Code Section 17958.7 requires that a city, before making modifications pursuant to California Health and Safety Code Section 17958.5, make an express finding that such modifications are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, under California Health and Safety Code Section 17958.7, Ordinance No. 2522

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modifications pursuant to California Health and Safety Code Section 17958.5 may not become effective until the required findings and the modifications have been filed with the California Building Standards Commission; and
WHEREAS, the City of West Covina determined that modifications to the 2022 Fire Code were reasonably necessary due to local climatic, geological, and topographical conditions, as detailed in Resolution No. 2022-111, which was subsequently replaced by Resolution No. 2023-58; and
WHEREAS, on November 15, 2022, the City Council adopted Ordinance No. 2053, amending Article II of Chapter 10 of the West Covina Municipal Code to adopt by reference the 2022 Fire Code, which adopts by reference the 2021 International Fire Code, and made amendments to certain provisions of the 2022 Fire Code; and WHEREAS, the City’s amendments to the 2022 Fire Code are set forth in Section 10-24 of Article II of Chapter 10 of the West Covina Municipal Code; and WHEREAS, as part of the City’s amendments to the 2022 Fire Code, the City added Section 5608.2 to Section 5608 of Chapter 56 of the 2022 Fire Code relating to public displays of fireworks; and
WHEREAS, pursuant to Section 5608.2 as set forth in Section 10-24 of Article II of Chapter 10 of the West Covina Municipal Code, public displays of fireworks require prior approval of the City Council, following an application submitted to the Fire Chief at least 15 days prior to the date of the display; and
WHEREAS, based on the existing requirements of Section 5608.2, there is not adequate time for the Fire Chief to review an application and make recommendations to the City Council; and
WHEREAS, the City desires to streamline the process for approving public display permits by granting the authority to grant such permits to the Fire Chief; and WHEREAS, the City further desires to clarify the requirements for public display permit applications and public displays of fireworks; and WHEREAS, the City Council finds that the revisions to Section 5608.2 are necessary due to the following climatic, topographical and geographic conditions of the City:

A. Climatic Conditions – The City of West Covina experiences low humidity, high winds, and warm temperatures throughout the year creating conditions which are particularly conducive to the ignition and spread of grass, brush, and structure fires;
B. Topographical Conditions – The hillside areas in the City along with long, Ordinance No. 2522

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narrow roadways significantly impact the ability of emergency responders to extinguish or control wildland or structure fires; and C. Geographical Conditions – The City of West Covina is situated adjacent to active earthquake faults capable of producing substantial seismic events.

Should a significant seismic event occur, uncontrolled hazardous materials releases and fires could pose the greatest threat to the largest number of people. Since the City is divided by a freeway and highway, a major earthquake would significantly impact the ability of fire crews to respond to emergencies should one or more roadways be blocked or damaged due to bridge collapse or debris from falling structures. Additionally, fire suppression capabilities will be severely limited should the water system be extensively damaged during the seismic event; and
WHEREAS, all legal requirements prior to the adoption of this Ordinance have occurred.

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

SECTION 1. Recitals. The City Council makes and adopts as findings the facts and conclusions set forth in the recitals of this Ordinance and, for the reasons set forth in the recitals, finds that the modifications to Section 5608.2 are reasonably necessary due to local climatic, geological, or topographical conditions.

SECTION 2. Amendment to Section 5608.2. Section 5808.2 of Section 5608 of Chapter 56 of the 2022 California Fire Code as set forth in Section 10-24 of Article II of the West Covina Municipal Code shall be amended to read as follows:
5608.2 Permit required.

It is unlawful to use or discharge any fireworks or pyrotechnic devices without first obtaining a permit therefor from the fire chief.
5608.2.1 Application.

A written application for a permit to conduct a public display of fireworks or to use or discharge pyrotechnic special effects materials shall be submitted to the fire chief at least sixty (60) days prior to the proposed date of the display, unless the fire chief approves the submission of an application less than sixty (60) days prior to the proposed date of the display. The application shall be on a form provided by the city and shall include, at minimum:
(a) Name of person or organization sponsoring the proposed activities; (b) Name of pyrotechnic operator and copy of current pyrotechnic operator’s license issued by the state fire marshal;
(c) The date and time the proposed activities would occur; Ordinance No. 2522

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(d) A full description of the proposed activities;
(e) The size and number of all fireworks or special effects materials to be involved in the proposed activities, including the number of set pieces and shells; (f) The manner and place of storage of all fireworks or special effects materials that will be used in the display;
(g) A diagram of the grounds on which the activities are proposed to occur showing all points at which fireworks or special effects materials are proposed to be stored and discharged, the location of all buildings, roads, and other means of transportation to and from the site, the lines behind which the audience will be restrained, and the location of all nearby trees, electrical or telephone lines and other overhead obstructions;
(h) Proof of current general liability coverage in the amount of at least five million dollars ($5,000,000.00) per occurrence, or such other amount as may be approved by the risk manager, to cover possible liability for bodily injury and damage to persons or property that may arise from or relate to the fireworks display or special effects and/or any negligence of the applicant, its agents, employees, or contractors in presenting the fireworks display or special effects. The certificate of insurance shall be endorsed to name the city, its officers, agents, and employees as additional insureds, and shall be in a form approved by the city’s risk manager; and
(i) An executed agreement, in a form approved by the city attorney, agreeing to indemnify, defend (at applicant’s sole cost and expense and with attorneys of city’s choosing), and hold the city, and its officers, officials, employees, representatives, and agents, harmless from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the city’s issuance of public display or special effects permit or any activities of the applicant in connection with the public display of fireworks or pyrotechnic special effects. 5608.2.2 Fee.

The application for a permit to conduct a public display of fireworks or pyrotechnic special effects shall be accompanied by a fee in the amount established by city council resolution. 5608.2.3 Approval.

The fire chief may grant a permit to conduct a public display of fireworks or pyrotechnic special effects if the fire chief determines that all requirements of law are or will be complied with by the applicant and that granting any such permit will not be detrimental to the public peace, health, safety, or welfare. In granting a permit, the fire chief may eliminate from the proposed display such items as the fire chief deems hazardous and may impose such conditions on the permit as the fire chief deems necessary to protect the public health, peace, safety, and/or welfare. Upon request of the permittee, the fire chief may approve changes to an approved display provided that any changes are not detrimental to the public peace, health, safety, or welfare.

Ordinance No. 2522

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5608.2.4 Permit requirements.

In addition to any conditions imposed by the fire chief, any permit issued shall be subject to the following requirements:
(a) A separate permit is required for each display.
(b) Any permit issued shall only be valid for the date, time and place specified in such permit.
(c) Any permit issued pursuant to this section shall be non-transferrable. (d) All public displays of fireworks or pyrotechnic special effects shall be under the direct supervision of a pyrotechnic operator licensed by the state fire marshal. The licensed pyrotechnic operator shall be responsible for all aspects of the display relating to pyrotechnics.
(e) Any permit issued pursuant to this section shall be subject to the condition that the fireworks or pyrotechnic special effects display may be canceled or modified by the city manager, including on the scheduled date of the display, if such cancelation or modification is in the interest of the public health, peace, safety, or welfare. The city manager shall make such determination in consultation with the fire chief. 5608.2.5 Appeal.

Within ten (10) calendar days after the date of a decision of the fire chief pursuant to this section, an aggrieved party may appeal such decision to the city manager by filing a written appeal with the city clerk setting forth the reasons why the decision was not proper.

The city manager shall consider the appeal within a reasonable time after the filing of the appeal. The decision of the city manager shall be final. 5608.2.6 City manager authority.

The city manager, at the city manager’s discretion, may review any decision of the fire chief pursuant to this section. The city manager may overrule any decision of the fire chief as the city manager deems necessary in the interest of the public health, peace, safety, or welfare. If the city manager grants a permit that was initially denied by the fire chief, the city manager may impose such conditions on the permit as the city manager deems necessary to protect the public health, peace, safety, and/or welfare. The decision of the city manager shall be final.

SECTION 3. Environmental Compliance. The City Council hereby finds that it can be seen with certainty that there is no possibility the adoption and implementation of this Ordinance will have a significant effect on the environment. The Ordinance is therefore exempt from the environmental review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3) (General Rule) of Title 14 of the California Code of Regulations.

SECTION 4. Inconsistencies. Any provision of the West Covina Municipal Code or Ordinance No. 2522

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appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.

SECTION 5. Severability. If any section, subsection, clause or phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of all other provisions of this Ordinance. The City Council of West Covina hereby declares that it would have passed this Ordinance, and each section, subsection, sentence, clause and phrase or portion thereof, irrespective of the fact that any one or more of the sections, subsections, sentences, clauses, or phrases or portions thereof be declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

SECTION 7. Certification; Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law.

SECTION 8. Certified Copy. The City Clerk shall file a certified copy of this Ordinance with the California Building Standards Commission.

PASSED, APPROVED AND ADOPTED this 7th day of May, 2024. ________________________
Brian Calderón Tabatabai
Mayor

APPROVED AS TO FORM ATTEST
________________________ ________________________
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
Ordinance No. 2522

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STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES )

CITY OF WEST COVINA )
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing Ordinance No. 2522 was introduced at a regular meeting of the City Council held on the 16th day of April, 2024, and adopted at a regular meeting of the City Council held on the 7th day of May, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAINED:

Lisa Sherrick
Assistant City Clerk
Memorandum

FIRE DEPARTMENT
ATTACHMENT NO. 2
DATE: May 7th, 2024
TO: City Council
FROM: Vincent A. Capelle, Fire Chief
SUBJECT: FIREWORK DISPLAY REPORT
In accordance with West Covina Municipal Code Chapter 10-27, Section 5608.2 which establishes the procedures to apply for a Fire Department permit to conduct displays of fireworks shows.

Upon submission of the permit application, the Fire Department will submit a report to the City Council for or against the fireworks shows. The City Council shall have the power in its discretion to grant or deny the permits.

The West Covina Unified School District has applied for permits to display fireworks shows at the upcoming graduation ceremonies for, Mt. Sac Early College Academy, Edgewood High School, and West Covina High School. These events will take place June 4th, 5th and 6th respectively taking place at the West Covina High School baseball stadium at 8:15pm each night. This location has been used in previous graduation ceremonies. Separately the City of West Covina fourth of July fireworks celebration will take place on July 4th, 2024, at 9:00 PM at the Sports complex. The cities Community Services Department has applied for a permit to display the annual Independence Day celebration show. The school district has awarded the contract for all three graduation ceremonies to Pyro spectacular out of Rialto, California. Subsequently the city has also awarded the contract to Pyro Spectacular. Pyro Spectacular has provided all local and state documentation to provide the service and provided the proper insurance certificates.

The Fire Department supports all four of these events. There will be on site Fire Safety officer at all events, which includes a Fire Prevention inspector and a Fire Engine during the fireworks displays. As regulations or permits require inspections and safety evaluations will be conducted.

At any time that it appears that the safety of the attendees, the public or personnel could be compromised a decision would be made to modify or cancel an event.

AGENDA ITEM NO. 3

SENIOR & COMMUNITY CENTER ROOF AND HVAC IMPROVEMENTS - PROJECT NO. 24009
RECOMMENDATION:

It is recommended that the City Council take the following actions, contingent upon the City Council's approval of the amendments to the Program Year 2019 and Program Year 2023 Community Development Block Grant (CDBG) Action Plans and corresponding budget amendment:

1. Reject the bid submitted by MBC Enterprises, Inc. as non-responsive;

2. Award the Construction Services Agreement for the Cortez Park Senior & Community Center Roof and HVAC Improvements Project (Project No. 24009) to AC Pros, Inc. as the lowest responsible bidder;

3. Authorize the City Manager to negotiate and execute an agreement with AC Pros, Inc. for $1,395,000.00, in such final form as approved by the City Attorney;

4. Authorize the City Manager to negotiate and execute any amendments up to 10% of the awarded agreement amount;

5. Find that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (Replacement or Reconstruction).

BACKGROUND:

The project consists of removal and replacement of the existing roofing as well as replacement of existing air conditioning units with new units with UV light treatment capabilities at the Cortez Park Senior and Community Center, located at 2501 E Cortez St., West Covina. As part of the improvements, the roof of the southern building of the center will be removed and replaced with a new membrane roof while the northern building of the center will be rehabilitated with the existing roofing material.

The HVAC units will be equipped with an air filtration system that incorporates ultraviolet light. Ultraviolet light with wavelengths of between 200 and 280 nm (UV-C) and, in particular, germicidal ultraviolet light, which refers to wavelengths around 254 nm, have the potential to unobtrusively reduce the risk of SARS-CoV-2 transmission in enclosed spaces by inactivating the virus.

DISCUSSION:

On February 6, 2024, staff advertised the construction bid package. The following four (4) bids were received by the City at the Bid Opening held on March 14, 2024, at 2:00 PM.

Contractor Name Total Bid Amount
MBC Enterprises, Inc. $1,247,000.00
AC Pros, Inc. $1,395,000.00
AME Roofing $1,407,000.00
FM Thomas Air Conditioning, Inc. $1,520,268.00
Prime Electric Solutions also submitted a document entitled "Electrical Proposal" via Planet Bids in the amount of $39,000.00. It did not use the City's bid format or submit any required forms or a bid bond.

Prime Electric Solutions is listed on MBC Enterprises, Inc.'s bid as the electrical subcontractor, in the amount of $39,000.00. Staff confirmed with Prime Electric Solutions that the proposal submitted via Planet Bids was intended to be a proposal for MBC Enterprises, Inc. as a subcontractor on the project, not a bid for the project. Therefore, staff did not consider Prime Electric Solutions' proposal.

At the bid opening, MBC Enterprises, Inc. was the apparent low bidder. However, during the bid review, staff found that the bid submitted by MBC Enterprises, Inc. listed 78% of the contract amount as subcontracted work. The bid documents require that 50% of the work be performed by the general contractor. Therefore, the amount of subcontracted work listed on MBC Enterprise Inc.'s bid exceeds the 50% maximum for subcontracted work. Staff is recommending that the City Council reject MBC Enterprises Inc.'s bid as non-responsive.

Because the bid submitted by MBC Enterprises, Inc. was deemed non-responsive, staff conducted a bid analysis for the next lowest bidder, AC Pros, Inc., including checking references, California Contractor Licensing, Department of Industrial Relations registration, and State and Federal debarment list review.

Lowest Responsive Bid
The lowest responsive bid was submitted by AC Pros, Inc. in the amount of $1,395,000.00. The draft of the proposed agreement with AC Pros, Inc. is included as Attachment No. 1.

Project Timeline
If approved, the project is anticipated to commence in June 2024 and to be completed within 4 months.

Project Funding
Funding for the project will be provided through CDBG/CDBG-CV funds, assuming the City Council approves the proposed amendments to the Program Year 2019 and Program Year 2023 CDBG Action Plans and corresponding budget amendment. Therefore, staff is requesting approval of the project, the agreement with AC Pros, Inc., and 10% contingency, contingent upon the City Council's approval of the amendments to the Program Year 2019 and Program Year 2023 CDBG Action Plans and corresponding budget amendment.

LEGAL REVIEW:

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

OPTIONS:

The City Council has the following options:

1. Approve Staff's recommendation; or

2. Provide alternative direction.

ENVIRONMENTAL REVIEW:

The proposed Project is a project subject to CEQA. Staff has reviewed the proposed project and has The proposed Project is a project subject to CEQA. Staff has reviewed the proposed project and has determined that it is categorically exempt from CEQA pursuant to CEQA Guidelines Section(s) 15302:

Replacement or reconstruction; (c) Replacement or reconstruction of existing utility and/or facilities involving negligible or no expansion of capacity.

Prepared by: Okan Demirci, PE, QSD/P
Fiscal Impact
FISCAL IMPACT:

Project Estimate
The following is the breakdown of the project estimate:

Construction Cost $1,395,000
Contingency allowance (10%) $139,500
Total Construction Estimate $1,534,500
Project Management and Administration $20,000
Construction Management, Inspection and Materials Testing/Inspection $133,450 Newspaper Advertisement, Misc. Expenses $5,000
Total Project Estimate $1,692,950
Funding is available, assuming approval of the budget amendment for the CDBG Action plan, as follows:

Project No. Funds Amount
24009 - Senior Center HVAC and Roof Replacement 225 CDBG-CV, 131 CDBG $1,703,693 Total $1,703,693
Attachments
Attachment No. 1 - Draft Construction Services Agreement CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Enhance City Image and Effectiveness
ATTACHMENT NO. 1

CITY OF WEST COVINA

CONSTRUCTION SERVICES AGREEMENT FOR
PROJECT NO. 24009

CORTEZ PARK SENIOR & COMMUNITY CENTER ROOF AND HVAC

IMPROVEMENTS PROJECT
THIS CONSTRUCTION SERVICES AGREEMENT (herein “Agreement”) is made and entered into as of May 8, 2024 (“Effective Date”) by and between the CITY OF WEST COVINA, a municipal corporation (herein “City”), and AC PROS, INC., a California corporation (herein “Contractor”).

RECITALS
A. City requires construction services for the Cortez Park Senior & Community Center Roof and HVAC Improvements Project, City Project No. 24009 (“Project”), that meet the requirements as shown in the project specifications and this Agreement.

B. The Project is funded in whole or in part with Community Development Block Grant (CDBG) funds provided by the U.S. Department of Housing and Urban Development (HUD).

C. Contractor has submitted a bid to perform the construction services for the Project and has represented to City that Contractor is qualified to perform said services.

D. City has determined that Contractor is the lowest responsible bidder.

E. City and Contractor desire to enter into this Agreement for the Project on the terms and conditions set forth herein.

NOW, THEREFORE, based on the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, City and Contractor hereby agree as follows:

1.0 SERVICES OF CONTRACTOR

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Contractor shall provide all work described in the Contract Documents, as further described herein, which services may be referred to herein as the “services” or “work”. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality and fit for the purpose intended.

1.2 Documents Included in Contract. The complete Agreement consists of:
(a) This Agreement;
(b) Notice to Contractors and Instructions to Bidders, Bid Documents and Contract Project No. 24009
Rev. 08-2023
2 Documents for the Project (collectively, “Bid Documents”), incorporated by this reference as if fully set forth herein;
(c) Federal Requirements, attached hereto as Exhibit A and incorporated herein; (d) Contractor’s Proposal, attached hereto as Exhibit B and incorporated herein; (e) Certificates of Insurance, attached hereto as Exhibit C and incorporated herein; (f) Bonds, attached hereto as Exhibit D and incorporated herein; (g) The Standard Specifications and Standard Specifications for Public Works Construction, as detailed in Section 19-1 of the West Covina Municipal Code, incorporated by this reference as if fully set forth herein; and (h) All exhibits and attachments to the foregoing documents.

The documents comprising the complete Agreement may be referred to in this Agreement as the “Contract Documents.” In the event of an inconsistency between any of the terms in this Agreement and any of the documents referenced above, this Agreement shall govern.

1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time the work is performed.

1.4 Licenses, Permits, Fees, and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement, including a business license from the City. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or imposed against City hereunder.

Contractor shall be responsible for all subcontractors’ compliance with this Section.

1.5 Familiarity with Work. By executing this Agreement, Contractor warrants that Contractor (a) has thoroughly investigated and considered the Scope of Services to be performed, (b) has carefully considered how the services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the Contract Officer.

1.6 Care of Work. The Contractor shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own active negligence.

1.7 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in Project No. 24009
Rev. 08-2023
3 good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Contractor shall require all subcontractors to comply with the provisions of this Agreement.

1.8 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor.

All change orders are subject to the requirements of West Covina Municipal Code Section 2-358. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor.

1.9 Prevailing Wage Requirements.
(a) Prevailing Wage Laws. Contractor is aware of the requirements of Chapter 1 (beginning at Section 1720 et seq.) of Part 7 of Division 2 of the California Labor Code, as well as Title 8, Section 16000 et seq. of the California Code of Regulations (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. This Project is a “public works” project and requires compliance with the Prevailing Wage Laws. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. (b) Payment of Prevailing Wages. Contractor shall pay the prevailing wage rates for all work performed under this Agreement. When any craft or classification is omitted from the general prevailing wage determinations, Contractor shall pay the wage rate of the craft or classification most closely related to the omitted classification. A copy of the general prevailing wage rate determination is on file in the Office of the City Clerk and is incorporated into this Agreement as if fully set forth herein. Contractor shall post a copy of such wage rates at all times at the project site(s). (c) Legal Working Day. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day. Contractor and any subcontractor(s) of Contractor shall comply with the provisions of the Labor Code regarding eight (8)-hour work day and 40-hour work week requirements, and overtime, Saturday, Sunday, and holiday work. Work performed by Contractor’s or any subcontractor’s employees in excess of eight (8) hours per day, and 40 hours during any one week, must include compensation for all hours worked in excess of eight (8) hours per day, or 40 hours during any one week, at not less than one and one-half times the basic rate of pay.

Contractor shall forfeit as a penalty to City Twenty-Five Dollars ($25.00), or any greater penalty set forth in the Labor Code, for each worker employed in the execution of the work by Contractor or by any subcontractor(s) of Contractor, for each calendar day during which such worker is required or permitted to the work more than eight (8) hours in one calendar day or more than 40 hours in any one calendar week in violation of the Labor Code.

Project No. 24009
Rev. 08-2023
4 (d) Apprentices. Contractor shall comply with the provisions of Labor Code Section 1777.5 concerning the employment of apprentices on public works projects. Contractor shall be responsible for ensuring compliance by its subcontractors with Labor Code Section 1777.5. (e) Payroll Records. Pursuant to Labor Code Section 1776, Contractor and any subcontractor(s) shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by Contractor or any subcontractor in connection with this Agreement. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct; and (2) The employer has complied with the requirements of Sections 1771, 1881, and 1815 of the Labor Code for any work performed by his or her employees on this Project. The payroll records shall be certified and shall be available for inspection at all reasonable hours in accordance with the requirements of Labor Code Section 1776.
(f) Registration with DIR. Contractor and any subcontractor(s) of Contractor shall comply with the provisions of Labor Code Section 1771 and Labor Code Section 1725.5 requiring registration with the DIR.
(g) Davis-Bacon and Related Acts. Notwithstanding the foregoing provisions, this Project is funded in whole or in part with Community Development Block Grant (CDBG) funds provided by the U.S. Department of Housing and Urban Development (HUD). Federal Labor Standards Provisions, including prevailing wage requirements of the Davis-Bacon and Related Acts will be enforced.

2.0 COMPENSATION

2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be compensated as specified herein, but not exceeding the maximum contract amount of One Million Three Hundred Ninety-Five Thousand Dollars ($1,395,000.00) (herein “Contract Sum”), except as provided in Section 1.8 (Additional Services). The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor shall not be entitled to any additional compensation for attending said meetings.

2.2 Progress Payments. Prior to the first day of the month, during the progress of the work, commencing on the day and month specified in the Agreement, Contractor shall submit to the Contract Officer a complete itemized statement of all labor and materials incorporated into the work during the preceding month and the portion of the Contract Sum applicable thereto. Upon approval in writing by the Contract Officer, payment shall be made within thirty (30) days. City shall pay Contractor a sum based upon ninety five percent (95%) of the Contract Sum apportionment of the labor and materials incorporated into the work under the Agreement during the month covered by said statement. The remaining five percent (5%) of the Contract Sum shall be retained as performance security as detailed in Section 2.3 (Retention of Funds).

2.3 Retention of Funds. Progress payments shall be made in accordance with the provisions of Section 2.2 (Progress Payments) of this Agreement. In accordance with said section, Project No. 24009
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5 City will retain five percent (5%) of the Contract Sum apportionment from each progress payment as performance security to be paid to the Contractor within sixty (60) days after final acceptance of the work by the City Council, after Contractor furnishes City with a release of all undisputed contract amounts if required by City. If there are any claims specifically excluded by Contractor from the operation of the release, the City may retain proceeds as authorized by Public Contract Code Section 7107 of up to 150% of the amount in dispute. City’s failure to deduct or withhold shall not affect Contractor’s obligations hereunder. To the extent consistent with Public Contract Code Section 22300, Contractor may request and City shall make payment of retentions earned directly to an escrow agent at the expense of Contractor, and may direct the investment of the payments into securities and Contractor shall receive the interest earned on the investments upon the same terms provided for in Public Contract Code Section 22300 for securities deposited by Contractor. Upon satisfactory completion of this Agreement, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City.

3.0 PERFORMANCE SCHEDULE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall complete all services within eighty (80) working days. Contractor shall submit for the Contract Officer’s approval its proposed Construction Schedule. Contractor shall perform the services in accordance with the approved Construction Schedule. When requested by the Contractor, extensions to the time period(s) specified in the Construction Schedule may be approved in writing by the Contract Officer.

3.3 Force Majeure. The time period(s) specified in the Construction Schedule for performance of the services rendered pursuant to this Agreement shall be extended to the extent caused by delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency other than the City, if the Contractor within ten (10) days of the commencement of such delay notifies the Contract Officer in writing of the causes for the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. Contractor shall not be entitled to any damages or increase in compensation due to force majeure.

3.4 Term. Unless earlier terminated as set forth herein, this Agreement shall continue in full force and effect until final approval and acceptance of the project by the City.

4.0 COORDINATION OF WORK

4.1 Representative of Contractor. The following principal(s) of Contractor are hereby designated as being the principal(s) and representative(s) of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

Project No. 24009
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6 Naom Ziv, President
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principal(s) were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal(s) shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder.

For purposes of this Agreement, the foregoing principal(s) may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager or City Engineer of City. The Contractor shall keep the Contract Officer informed of Contractor’s progress on the services. The Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein or in the City’s Municipal Code, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required by this Agreement, to the extent permitted by the City’s Municipal Code.

4.3 Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the City’s express consent.

4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its subcontractors, agents or employees, performs the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, subcontractors, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.

Contractor shall not at any time or in any manner represent that it or any of its subcontractors, agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venture or a member of any joint enterprise with Contractor.

4.5 Identity of Persons Performing Work. Contractor represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all tasks and services set forth herein. Contractor represents that the tasks and services required herein will be performed by Contractor or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services.

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7 4.6 Utility Relocation. City, and not Contractor, is responsible for removal, relocation, or protection of existing main or trunkline utilities but only to the extent such utilities were not identified in the invitation for bids or specifications. Where the specifications call for the Contractor to remove, relocate, reconstruct or protect such lines, all such work shall be deemed included in the Contract Sum.

Contractor having been presented with a reasonable basis to suspect that any previously unidentified main or trunkline may need to be removed, relocated or protected in place, Contractor shall immediately notify City and the affected utility company in writing of such belief, and the basis therefor, and Contractor shall thereafter work with the City and the utility company to coordinate such removal, relocation or protection. City shall reimburse Contractor for its reasonable costs incurred in locating and repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed liquidated damages for delays which meet both of the following requirements: (i) the delays occurred after Contractor gave City the written notice required by this Section; and (ii) the delays were caused by the removal, protection, or relocation of such unidentified utility facilities. Nothing herein shall be deemed to prevent the City from seeking reimbursement of any such costs from the affected utility company.

4.7 Trenches or Excavations. Pursuant to Public Contract Code Section 7104, if the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply:
(a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Agreement.
(b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.8 (Additional Services) of this Agreement.
(c) If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.

4.8 Best Management Practices. Contractor shall implement and maintain activity specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and nonstormwater discharges to receiving waters as required in Municipal NPDES Permit No.

CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs Project No. 24009
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8 shall be adequately trained to effectively implement, operate, and maintain such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify it has received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect.

5.0 INSURANCE

5.1 Minimum Scope and Limits of Insurance. Contractor shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, with a current A.M. Best’s rating of no less than A:VII, and approved by City:
(a) Broad-form commercial general liability, including premises-operations, products/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than Two Million Dollars ($2,000,000.00) per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or shall be twice the required occurrence limit.
(b) Business automobile liability for owned vehicles, hired, and non-owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00), combined single limit per accident for bodily injury and property damage. (c) Workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Contractor agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Contractor for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.

By execution of this Agreement, the Contractor certifies as follows:

I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers’ Compensation or to undertake selfinsurance before commencing any of the work.

The Contractor shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers’ Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this section. (d) Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no Project No. 24009
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9 coinsurance penalty provisions. The Builder’s Risk coverage shall name the City as a loss payee. If the Project does not involve new or major construction, City may, in its discretion, permit an Installation Floater. If authorized, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion, or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery, or equipment damaged, impaired, broken or destroyed during the performance of the work, including during transit, installation, and testing at the project site.

If the Contractor maintains higher limits or has broader coverage than the minimums shown above, the City requires and shall be entitled to all coverage, and to the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

5.2 Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions:
(a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of the Contractor pursuant to its contract with the City; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; automobiles owned, leased, hired, or borrowed by the Contractor.
(b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. (c) Primary Coverage: The Contractor’s insurance coverage shall be primary insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy. (d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
(e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers.
(f) Coverage Applies Separately: The Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

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10 5.3 Deductible or Self Insured Retention. If any of such policies provide for a deductible or self-insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

5.4 Certificates of Insurance. Contractor shall provide to City certificates of insurance showing the insurance coverages and required endorsements described above, in a form and content approved by City, prior to performing any services under this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

5.5 Non-limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement or the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor’s or its subcontractors’ performance of the work covered under this Agreement.

5.6 Subcontractors. Contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Contractor shall ensure that the City is listed as an additional insured on insurance required of subcontractors.

5.7 Sufficiency of Insurers. Insurance required by this Agreement shall be satisfactory only if issued by companies authorized to do business in California, rated with a current A.M. Best’s rating of no less than A:VII unless such requirements are waived by the City’s Risk Manager in writing due to unique circumstances. If the City’s Risk Manager determines that the work or services to be performed under this Agreement creates an increased risk of loss to the City, the Risk Manager may increase the minimum limits of the insurance policies required by this Section by providing written notice to Contractor; provided that the Contractor may appeal such determination to the City Council of City within ten (10) days of receipt of notice from the Risk Manager.

6.0 BONDS

6.1 Labor and Materials, Performance and Warranty Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City: (1) a labor and materials bond in an amount equal to one hundred percent (100%) of the Contract Sum as security for the payment of all persons furnishing labor or materials in connection with the work, (2) a performance bond in an amount equal to one hundred percent (100%) of the Contract Sum as security for the faithful performance of this Agreement, and (3) a warranty bond in an amount equal to fifty percent (50%) of the Contract Sum to guarantee the work for a period of one (1) year following completion of the work, on the forms provided by the City. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of the Agreement and shall be released or exonerated only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement.

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11 6.2 Sufficiency of Sureties. Sureties must be authorized to issue bonds in California. In addition, sureties must possess a minimum rating from A. M. Best Company of A:VII and must be listed as an acceptable surety on federal bonds by the United States Department of the Treasury, http://www.fms.treas.gov/c570/c570.html, subject to the maximum amount shown in the listing. If cosureties are used, their bonds must be on a joint and several basis.

6.3 Substitution of Securities. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under the Agreement for the work to be performed will be permitted at the request and expense of Contractor.

7.0 INDEMNIFICATION
Contractor agrees to defend (with legal counsel of City’s choosing), indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Contractor’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising out of the performance of the Contractor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the Contractor, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the Contractor, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by the Contractor, its employees, and/or authorized subcontractors under this Agreement, whether or not the Contractor, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the Contractor shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained in any other document, which shall be of no force and effect. (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith.
(b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor’s (or its agents’, employees’, subcontractors’, or invitees’) negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom. (c) If the City, its officers, agents or employees is/are made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in Project No. 24009
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12 such action or proceeding, including but not limited to, legal costs and attorneys’ fees for counsel acceptable to City.
(d) Contractor’s duty to defend and indemnify as set forth herein shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act (“FIFRA”), Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), Resource Conservation and Recovery Act of 1976 (“RCRA”), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances Control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter-Cologne Water Quality Control Act, as any of those statutes may be amended from time to time.

Contractor’s indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification in favor of City from all subcontractors.

8.0 RECORDS AND REPORTS

8.1 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer may require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

8.2 Records. Contractor shall keep, and require subcontractors to keep, such books and records (including but not limited to payroll records as required herein) as may be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required.

8.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared Project No. 24009
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13 by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

9.0 ENFORCEMENT OF AGREEMENT; TERMINATION

9.1 Governing Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action.

9.2 Notice of Default and Cure Period. If either party fails to perform its obligations hereunder, the nondefaulting party may provide the defaulting party written notice of such default. The defaulting party shall have ten (10) days to cure the default; provided that, if the default is not reasonably susceptible to being cured within said ten (10) day period, the defaulting party shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, provided the defaulting party commences to cure such default within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate danger to the health, safety and general welfare, the defaulting party shall take such immediate action as may be necessary. Notwithstanding the foregoing, the nondefaulting party may, in its sole and absolute discretion, grant a longer cure period. Should the defaulting party fail to cure the default within the time period provided in this Section, the nondefaulting party shall have the right, in addition to any other rights the nondefaulting party may have at law or in equity, to terminate this Agreement, and/or to call upon any completion or payment bond or other security for performance thereof. Compliance with the provisions of this Section shall be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any party’s right to take legal action in the event that the dispute is not cured.

9.3 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City owned property which Contractor is permitted to occupy hereunder and City may, upon termination, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the City as previously stated.

9.4 Termination for Convenience. The City may terminate this Agreement without cause for convenience of the City upon giving Contractor thirty (30) days prior written notice of termination of the Agreement. Upon receipt of the notice of termination, the Contractor shall cease all further work pursuant to the Agreement. Upon such termination by the City, the Contractor shall not be entitled to any other remedies, claims, actions, profits, or damages except as provided in this paragraph. Upon the receipt of such notice of termination, Contractor shall be entitled to the following compensation:
(a) The contract value of the work completed through and including the date of receipt of Project No. 24009
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14 the notice of termination, less the amount of progress payments received by Contractor. (b) Actual move-off costs including labor, rental fees, equipment transportation costs, the costs of maintaining on-site construction office for supervising the move-off. (c) The cost of materials custom-made for this Agreement which the Contractor cannot use in its normal course of business, and for which the City has not already paid. (d) Any costs shall not include any markups as might otherwise be allowed by any plans or specifications which were a part of the Agreement.

The provisions of this Section shall supersede any inconsistent provisions of the Agreement or the Bid Documents. City and Contractor agree that the provisions of this Section are a substantive part of this Agreement’s consideration.

9.5 “Claims” by Contractor under Section 9204. Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall be subject to all requirements of Public Contract Code Section 9204 (“Section 9204”) as it may be amended from time to time. The parties acknowledge that Section 9204 applies to certain requests by Contractor, such as certain requests for time extensions, certain requests for payments not covered by contract, and certain requests for payments of amounts disputed by City. The parties further acknowledge that Section 9204 establishes all of the following: (i) Contractor may submit a “claim” to the City, as that term is defined in Section 9204; (ii) City has an initial 45 days to review and respond to the claim to state “what portion of the claim is disputed and what portion is undisputed”. If the City does not issue a written statement, the claim is deemed rejected in its entirety; (iii) Contractor must furnish reasonable documentation to support the claim; (iv) City has 60 days from its written determination to pay any undisputed amount; and (v) specified procedures apply to resolve any amounts in dispute.

9.6 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be considered a waiver of any other default concerning the same or any other provision of this Agreement.

9.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

9.8 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

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15 9.9 Liquidated Damages. Contractor agrees that failure to complete work within the time allowed herein will result in damages being sustained by the City. Contractor further agrees that the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement. Therefore, Contractor agrees that it and its sureties shall be liable for and shall pay to the City liquidated damages in the amount of Five Hundred Dollars ($500.00) for each calendar day of delay in the performance of any service required hereunder. Contractor further agrees that liquidated damages may be assessed for failure to comply with the emergency call out requirements described in the Scope of Services. The City may withhold from any amounts payable on account of services performed by the Contractor any accrued liquidated damages. Contractor, on behalf of itself and its sureties, and City agree that the liquidated damages constitute a reasonable estimate of actual damages, and are not punitive.

10.0 CITY OFFICERS AND EMPLOYEES, NONDISCRIMINATION

10.1 Nonliability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

10.2 Conflict of Interest. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

10.3 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, gender expression, marital status, national origin, disability, pregnancy, sexual orientation or ancestry in the performance of this Agreement. To the extent required by law, Contractor shall take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, gender expression, marital status, national origin, disability, pregnancy, sexual orientation or ancestry.

11.0 FEDERAL REQUIREMENTS
This Project is funded in whole or in part by federal funds and subject to the Federal Requirements set forth in this Agreement, including, but not limited to, the requirements set forth in Exhibit A. Contractor agrees to comply with said Federal Requirements and all federal requirements applicable to the Project.

Contractor shall comply with all applicable state and local codes, ordinances and other applicable laws, all applicable CDBG program requirements and any amendments hereafter to CDBG program guidelines and requirements.

12.0 SECTION 3 ECONOMIC OPPORTUNITIES COMPLIANCE
Contractor acknowledges that this Agreement is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (“Section 3”). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by Project No. 24009
Rev. 08-2023
16 HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

City and Contractor agree to comply with HUD’s regulations in 24 CFR Part 135 (“Part 135”), which implement Section 3. As evidenced by their execution of this Agreement, City and Contractor certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations.

Contractor agrees to send to each labor organization or representative of workers with which Contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of Contractor’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

Contractor agrees to include this Section 3 clause in every subcontract subject to compliance with Part 135 regulations, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. Contractor will not subcontract with any subcontractor where Contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135.

Contractor will certify that any vacant employment positions, including training positions, that are filled (1) after Contractor is selected but before the Agreement is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent Contractor’s obligations under 24 CFR Part 135. Contractor will execute the “Section 3 Economic Opportunity Report,” included in Exhibit A, and understands its obligations thereunder.

Contractor understands that noncompliance with HUD’s regulations in 24 CFR Part 135 may result in sanctions, termination of this Agreement for default, and debarment or suspension from future HUD-assisted contracts.

13.0 MISCELLANEOUS PROVISIONS

13.1 Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class mail, return receipt requested, addressed as follows:

To City: City of West Covina
1444 West Garvey Avenue South
West Covina, CA 91790
Attn: City Engineer
Project No. 24009
Rev. 08-2023
17 To Contractor: AC Pros, Inc.
18653 Ventura Blvd #251
Tarzana, CA 91356
Attn: Naom Ziv

13.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

13.3 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing.

13.4 Severability. If one or more of the words, phrases, sentences, clauses, paragraphs, or sections in this Agreement is declared unenforceable by a court of competent jurisdiction, such unenforceability shall not affect any of the remaining words, phrases, sentences, clauses, paragraphs, or sections of this Agreement which are severable. Remaining enforceable provisions shall be interpreted to carry out the intent of the parties unless an invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

13.5 Hiring of Undocumented Aliens Prohibited. Contractor shall not hire, employ, or allow any person to work under this Agreement unless such person is properly documented and may legally work within the United States.

13.6 Unfair Business Practices Claims. Consistent with Public Contract Code Section 7103.5, Contractor, on behalf of itself and all subcontractors, offers and agrees to assign to the City all rights, title, and interest in and to all causes of action they may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) and under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to this Agreement. This assignment becomes effective when the City renders final payment to the Contractor without further acknowledgment by the parties.

13.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.

13.8 Legal Responsibilities. The Contractor shall keep itself informed of City, State, and Federal laws, ordinances and regulations, which may in any manner affect the performance of its services pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws, ordinances and regulations. Neither the City, nor its officers, agents, assigns nor employees Project No. 24009
Rev. 08-2023
18 shall be liable at law or in equity as a result of the Contractor’s failure to comply with this Section.

13.9 Counterparts and Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Counterpart written signatures may be transmitted by facsimile, email or other electronic means and have the same legal effect as if they were original signatures.
[SIGNATURE PAGE FOLLOWS.]
Project No. 24009
Rev. 08-2023
19 IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first written above.

CITY OF WEST COVINA,
A municipal corporation
__________________________________ Date: __________________________ Paulina Morales
City Manager

CONTRACTOR
__________________________________ Date: __________________________ Naom Ziv
President
ATTEST:
________________________________
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
__________________________________
Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
____________________________________
Stephanie Sikkema
Acting Human Resources and Risk
Management Director

EXHIBIT A

FEDERAL REQUIREMENTS

EXHIBIT B
CONTRACTOR’S PROPOSAL

EXHIBIT C

CERTIFICATES OF INSURANCE

EXHIBIT D
BONDS
AGENDA ITEM NO. 4

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Paulina Morales, Acting City Manager
SUBJECT: CONSIDERATION OF PROPOSED AMENDMENTS TO THE PROGRAM YEAR (PY) 2019 AND PY 2023 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLANS
RECOMMENDATION:

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

1. Conduct a Public Hearing regarding the PY 2019 and PY 2023 CDBG Action Plans;

2. Approve the proposed amendment to the PY 2019 CDBG Action Plan;

3. Approve the proposed amendments to the PY 2023 CDBG Action Plan; and

4. Approve the following resolution:

RESOLUTION NO. 2024-07 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2023 AND ENDING JUNE 30, 2024 (PY 2019 AND PY 2023

CDBG AAP AMENDMENTS)
BACKGROUND:

The City receives Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The overall objective of the federal program is to develop viable urban communities by providing decent housing and a suitable living environment, and expand economic opportunities principally for low and moderate income persons.

As a recipient of CDBG funds, the City is required to prepare an annual Action Plan which describes how funds will be used to achieve community development goals. According to HUD regulations, these plans can be amended at any time, with proper notice and consideration in a public hearing.

PY 2019 Action Plan (CDBG-CV)
On June 4, 2019, the City Council approved the City’s PY 2019 Action Plan.

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act, referred to as the CARES Act, a $2 trillion emergency package intended to support individuals and businesses affected by the COVID-19 pandemic and economic downturn. The CARES Act provided $5 billion in federal Community Development Block Grant Coronavirus (CDBG-CV) funding to prevent, prepare for, and respond to COVID-19.

West Covina was allocated a total of $1,182,944 in CDBG-CV funds. The funding is administered under CDBG regulations with specific waivers and flexibilities from HUD. The City amended its PY 2019 CDBG Action on April 21, 2020 and August 10, 2021 to include two allocations of CDBG-CV funds. To date, the City has expended $478,981 toward public service activities such as: food banks, meals on wheels, and the Senior Meals Program, as well as a COVID testing site at AltaMed in West Covina. The remaining balance of the CDBG-CV allocation is $703,963.

PY 2023 Action Plan (CDBG)
On May 6, 2023, the City Council approved the City's PY 2023 CDBG Action Plan.

DISCUSSION:

PY 2019 Action Plan (CDBG-CV)
At a Special Meeting of the City Council on August 10, 2021, the second of two allocations of CDBG-CV funding in the amount of $790,140 was included in the PY 2019 Action Plan for unspecified public service activity, with the expectation of the funds being re-programmed. Though a portion of the allocation was used to fund the public service activities described above, $703,963 remains available to be re-programmed.

Re-programming funding requires the City to amend its PY 2019 Action Plan. The proposed amendment re-programs the balance of unexpended CDBG-CV funding from a Public Service activity to a Public Facility Improvement activity. The proposed activity (Project No. 24009) is for the replacement of the HVAC units and roof at the Senior Center. The HVAC units will be equipped with an air filtration system that incorporates ultraviolet light. Ultraviolet light with wavelengths of between 200 and 280 nm (UV-C) and, in particular, germicidal ultraviolet light, which refers to wavelengths around 254 nm, have the potential to unobtrusively reduce the risk of SARS-CoV-2 transmission in enclosed spaces by inactivating the virus.

Add Activity to PY 2019 CDBG Plan
The proposed amendment consists of adding an activity and funding to the Action Plan. Pre-award costs for such activities may be incurred, consistent with HUD regulations.

No. Activity Proposed
Amendment
Proposed
Funding

1. 24009 - Senior Center
HVAC and Roof
Replacement
Add to Plan $703,963
PY 2023 Action Plan (CDBG)
The following amendments to the PY 2023 Action Plan are proposed:

Complete/Close or Cancel Activity from PY 2023 CDBG Plan The following proposed amendments consist of closing or canceling previously approved and currently funded activities from the Action Plan. When closed or canceled, the unexpended balance returns to the City's line-of-credit with HUD and may be re-programmed to other eligible activities.

No. Activity Proposed
Amendment
Approved
Funding
Unexpended
Balance

1. Home Improvement
Loan
Program
Complete/Close $500,000 $341,594

2. Neighborhood
Improvement Program
Cancel $694,486 $694,486

3. Careship Cancel $5,000 $5,000
The Home Improvement Loan activity was opened in PY 2015. Since then, the activity has been kept open and carried forward annually with modifications to funding. At HUD's request, the old activity is being closed and re-opened in a new activity in the current year. In the approved PY 2023 Action Plan, funding was allocated to an unspecified Neighborhood Improvement Program activity with the intent to re-program funding once an activity was identified. The Careship program has been discontinued since the closure of the City daycare during the pandemic and is being re-evaluated.

Add Activity to PY 2023 CDBG Plan
The following proposed amendments consist of adding activities and funding to the Action Plan.

Pre-award costs for such activities may be incurred, consistent with HUD regulations.

No. Activity Proposed
Amendment
Proposed
Funding

4. Housing Preservation
Program
Add to Plan $341,594

5. 24009 - Senior Center
HVAC and Roof
Replacement
Add to Plan $1,000,000
The Home Improvement Loan Program, since re-branded as the Housing Preservation Program, is proposed to be added to the Action Plan, as described above. A new activity and funding for the replacement of the HVAC and roof at the Senior Center is also proposed to be added to the Action Plan.

The proposed amendments to the PY 2019 and PY 2023 Action Plans described in this report require a 30-day public review period, which began on April 5, 2024. No comments have been received as of the writing time of this report. The proposed amendments to the Action Plans require HUD approval.

LEGAL REVIEW:

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

OPTIONS:

The City Council has the following options:

1. Approve the staff recommendation; or

2. Provide alternative direction.

Prepared by: Kelly McDonald, Assistant to the City Manager Fiscal Impact
FISCAL IMPACT:

The estimated budget for Project 24009 - Senior Center HVAC and Roof Replacement is estimated at $1,692,950. In addition to the amendments described above and uncommitted funds in the City's line-of-credit with HUD, $156,900 is needed to cover the estimated cost. By reducing the approved budgets for Project 23006 Friendship Park Improvements, Phase II and the Housing Preservation Program by $113,500 and $43,400, respectively, the needed amount can be made available and committed to the Project. Relative to their approved budgets, the proposed reductions do not meet the threshold to be considered "Substantial" and were not part of the 30-day review. These reductions can be restored when the new grant is available.

The attached budget amendment implements the changes summarized in the table below. There is no impact on the General Fund resulting from these amendments.

Project Fund Account No.

Current
Budget
Balance
Proposed
Budget
Amendment
24009, Sr Ctr HVAC and
Roof Replacement
225 CDBG-CV
131 CDBG
225.503.80.81.00.00.75.75000
131.503.80.81.00.00.75.75000
$0
$0
$703,963
$1,000,000
Careship 131 CDBG 131.504.61.51.27.00.61.61200 $5,000 ($5,000) Housing Preservation Program 131 CDBG 131.505.22.20.24.00.61.61200 $0 $341,594 Housing Preservation Program 131 CDBG 131.505.22.20.24.00.61.61200 $0 ($43,400) 23006, Friendship Park Imp, II 131 CDBG 131.503.80.84.00.00.77.77000 $755,157 ($113,500) Attachments
Attachment No. 1 - Resolution No. 2024-07 (Budget Amendment) Attachment No. 2 - 2024.05.07 - PY 2019 and PY 2023 CDBG AAPs CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Maintain Good Intergovernmental Relations
Enhance City Image and Effectiveness
ATTACHMENT NO. 1
RESOLUTION NO. 2024-07

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, ADOPTING A BUDGET

AMENDMENT FOR THE FISCAL YEAR COMMENCING
JULY 1, 2023 AND ENDING JUNE 30, 2024 (PY 2019 AND
PY 2023 CDBG AAP AMENDMENTS)
WHEREAS, on April 18, 2023, the City Manager presented to the City Council a proposed budget for Fiscal Year 2023-24 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 2023-24, 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 6, 2023, the City Council adopted a budget for the 2023-2024 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. 2024-11, attached hereto as Exhibit A, for Fiscal Year 2023-24.

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 7th day of May, 2024.

Brian Calderón Tabatabai
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. 2024-07 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 7th day of May, 2024, 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 2023-24
Budget Amendment No. 2024-11
PY 2019 and PY 2023 CDBG AAP Amendments
Fund Current
Budget
Proposed
Amendment
Amended
Budget
Community Dev Block Grant (131)
Revenue 843,215 1,471,205 2,314,420
Expenditures 1,134,726 1,179,694 2,314,420
Net Change in Fund Balance -291,511 291,511 0
CDBG - R (225)
Revenue 0 753,963 753,963
Expenditures 50,000 703,963 753,963
Net Change in Fund Balance -50,000 50,000 0

CITY COUNCIL MEETING
MAY 7, 2024
CONSIDERATION OF PROPOSED AMENDMENTS TO THE PROGRAM YEAR (PY) 2019 AND 2023

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ACTION PLANS
ATTACHMENT NO. 2
BACKGROUND – PY 2019 ACTION PLAN
The CARES Act
 Response to Coronavirus (COVID-19) pandemic
 Includes $5 billion in federal Community Development Block Grant Coronavirus (CDBGCV) funding to prevent, prepare for, and respond to COVID-19  Administered under CDBG guidelines with specific flexibilities  West Covina was allocated a total of $1,182,944 in CDBG-CV funding  Balance of $703,963 available
PROPOSED AMENDMENT – PY 2019 ACTION PLAN
 Re-program $703,963 in CDBG-CV funding from public service activity to a public facility improvement activity in the PY 2019 CDBG Action Plan  HVAC and Roof Replacement at Senior Center. HVAC units equipped with filters that use UV Light shown to deactivate viruses and prevent spread of COVID PROPOSED AMENDMENTS – PY 2023 ACTION PLAN
No. Activity Proposed
Amendment
Approved
Funding
Unexpended
Balance

1. Home
Improvement
Program
Complete/
Close
$500,000 $341,593.89

2. Neighborhood
Improvement
Program
Cancel $694,486 $694,486

3. Careship Cancel $5,000 $5,000
PROPOSED AMENDMENTS – PY 2023 ACTION PLAN
No. Activity Proposed
Amendment
Proposed
Funding

4. Housing
Preservation
Program
Add to Plan $341,593.89

5. 24009 – Senior
Center HVAC and
Roof Replacement
Add to Plan $1,000,000

RECOMMENDATION
That the City Council take the following actions:
 Approve the proposed amendments to the PY 2019 and PY 2023 CDBG Action Plans; and
 Approve Resolution No. 2024-07
AGENDA ITEM NO. 5

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Paulina Morales, Acting City Manager
SUBJECT: PROPOSED FISCAL YEAR 2024-25 OPERATING AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
RECOMMENDATION:

It is recommended that City Council:

Receive and file the Proposed Fiscal Year 2024-25 Operating and Capital Improvement Program Budget;

1. Direct that the proposed budget be publicly disseminated, including at community budget workshops on May 8, 2024 and May 13, 2024; and

2. 3. Schedule the budget for consideration at the June 4, 2024 City Council meeting.

BACKGROUND:

The Budget sets forth a strategic resource allocation plan and serves as a policy document, financial plan, operations guide, and communication device all in one.

The Budget:

Determines the quality and quantity of City programs and services; States expenditure requirements for the allocation plan and estimated available revenues to finance it;
Sets targets and provides a means of measuring accomplishments against goals; and Serves as a communication device for elected officials, the public, and the City organization that promotes the City’s vision and direction, fiscal health and vitality, and what the public is getting for its tax dollars.

Through the Budget document, the City demonstrates its accountability to its residents, customers, and community.

DISCUSSION:

The Budget provides the framework for providing services and programs to the community of West Covina. The services and programs included in the Budget represent the delivery of core services and priorities. This document includes appropriations for the General Fund, Special Revenue Funds, Capital Projects Fund, and Enterprise Fund as well as both Operating and Capital Improvement Program (CIP) budgets.

The proposed Budget demonstrates a financial plan for the next 12 months. The City has experienced economic recovery from the global pandemic and had revenue reach and surpass pre-pandemic levels.

However, this economic boom has leveled off and is reflected in revenue while expenditures have continued to increase. Thus, fiscal due diligence is necessary.

This Budget is essentially a rollover budget that addresses immediate needs for our community. It has been conservatively designed to continue to adequately fund the City’s reserves. The municipal organization continues its primary focus on the public safety needs of the community, meeting infrastructure and regulatory requirements, and providing excellent service.

Citywide Summary
West Covina’s total projected operating and capital improvement expenditures for the upcoming fiscal year are over $155 million. Revenue for all fund types combined is over $136 million and includes property tax, sales tax, charges for services, licenses & permits, fines & forfeitures, and revenue from other agencies.

In addition, the Capital Improvement Plan budget, totaling over $18 million for the next fiscal year, is included in the number above and is primarily funded from Special Revenue Funds and grants obtained from various funding sources.

Property tax remains the City’s largest revenue source and is projected to be almost $42 million. Sales tax, the next largest revenue source, has increased in the past few years to nearly $24 million. However, sales tax is expected to level off in the next fiscal year. City staff will continue to monitor sales tax quarterly and amend the budgeted numbers, as necessary. Overall, total revenues for the upcoming year are projected to increase by over $9 million.

Total expenditures (excluding transfers) for all budgeted funds are estimated to be over $155 million, as shown in Figure 2 and Figure 3 below. Many funds make up the total budgeted amount, with the largest being the General Fund in the amount of nearly $76 million, or 49% of the City’s budget.

Salary and benefits are 41% of the City’s total budget, which is up from last fiscal year due to the Unfunded Accrued Actuarial Liability (UAAL) pension payment due to the California Public Employees' Retirement System (CalPERS) in FY 2024-25. Additionally, it should be noted that salaries and benefits provided to the City’s employees continue to rise each year and must be monitored very closely as the City continues to identify alternatives for service delivery.

General Fund
The General Fund provides basic services to the City (i.e. police, fire, planning, administrative services, and parks and recreation). The City’s primary financial goal is to provide an appropriate level of municipal services with the ability to adapt to local and regional economic changes, while maintaining and enhancing the sound fiscal condition of the City. The City’s General Fund continues to be negatively impacted by rising salary and benefits costs, the State’s elimination of redevelopment, and the recession.

Staff continues to identify revenue sources and cost-cutting measures to offset these negative impacts.

The City’s budget policy requires that the City’s General Fund maintain an undesignated, unappropriated reserve amount equal to at least 17% of budgeted expenditures or over $15.5 million. The fund balance for the fiscal year ending June 30, 2025, is projected to be over $20 million, which is approximately 22% of General Fund expenditures and transfers. Of this, over $3 million is assigned, which leaves approximately $17 million in assigned fund balance.

At the close of each fiscal year, any revenues over expenditures are generally transferred to fund balance reserved to be used for one-time capital expenditures or the reduction of General Fund debt service requirements.

General Fund Revenues
Total General Fund revenues are projected to be over $91 million, a 7.6% increase from the FY 2023-24 Adopted Budget. This is largely due to an increase in Property Tax revenue of over $3.5 million over the original budget but only a 3% increase from the FY2023-24 end of year estimate. Sales Tax is estimated to increase by 0.4% and other taxes by nearly 12%. Licenses and permits are projected to increase based on prior year actual trends.

General Fund Expenditures
General Fund expenditures for the fiscal year 2024-25 are projected to be over $76 million. This is an $8.4 million increase from the current fiscal year’s original budget.

Most General Fund expenditures go towards salaries, benefits and overtime (76%). Over the past couple of years, the City has executed memorandums of understandings with all nine of its bargaining groups.

These agreements included salary increases ranging from 3% to 9% per group and are offset by employee contributions to pensions ranging from 1.5% to 6%. Most of these agreements expire at the end of the current fiscal year and are currently in negotiations. Thus, no salary increases outside of agreements have been included in this proposed budget.

Expenditures overall were analyzed and projected to reflect the actual expense incurred based on the current year’s estimate and prior years. The major expenditures impacting the General Fund over the next fiscal year are the UAAL payment, election costs, and increases in workers' compensation and general liability.

Overtime continues to be an increasing burden on the City. The FY 2024-25 Proposed Budget is based on prior years' actuals with an estimated increase in line with base salary increases. General Fund Overtime is proposed to be approximately $6.64 million. Most of this overtime is from Police ($3.5M) and Fire ($2.96M).

Fiscal Challenges
While the City expects property tax and other taxes to increase, sales tax revenue has leveled off. This budget has been developed with this in mind. Sales tax, which is the General Fund’s second-largest revenue source, is forecasted to only increase by 0.37% over the coming year. This, in comparison to the rise in the Consumer Price Index (CPI), which increased by approximately 3% over the last year. It is important to note that many existing agreements call for an annual increase per CPI. The UAAL payment and unfunded liabilities have also increased. Essentially, expenditures are increasing at a faster rate than revenues.

Through sound financial policies and procedures, the City managed rising costs and dwindling revenues efficiently and effectively. This has resulted in a growth in the unassigned general fund balance. This is not to say that significant challenges do not face the City going forward. Rising costs of materials and services continue to be of grave concern. Infrastructure needs of the City have been deferred for many years and, while the City has been investing in the infrastructure needs of the City, there are still outstanding needs for infrastructure needs.

Four specific challenges affect the City’s annual budget:

Resident Engagement – Through civic engagement, resident and community partners define what services are valued. The result is a budget that better reflects local priorities. Inclusive, open, and collaborative budget processes and community declaration of principles help the municipal organization better provide essential services.

1. Accountability Through Oversight – Continued improvement of the City’s long-term financial health requires ongoing close attention to timely implementation of the City’s Financial Recovery Plan.

Institutionalizing accountability in the recovery process enhances public trust in municipal governance.

2. 3. Fiscal Prudence – Capital needs remain underfunded. Clearly, municipal facilities are not to Fiscal Prudence – Capital needs remain underfunded. Clearly, municipal facilities are not to standard. Maintenance of buildings, streets, and parks has been deferred and, as a result, services have suffered. Typically, assets run to failure, and operate until they break down. For example, Fire Station No. 1 has been determined uninhabitable, forcing the City to setup up temporary quarters. The City has received some one-time funding to address critical immediate needs.

However, additional funding sources or alternative service delivery models need to be identified to address future issues.

3. Labor Negotiations – Seven of the nine labor agreements expire June 30, 2024. The City is currently underway with negotiations with the groups that have a pending agreement expiration.

The outcome of these negotiations will have an immediate short-term impact and may have a long-term impact.

4. Long-Term Factors
The FY2024-2025 Proposed Budget is structurally balanced; however, expenditures are increasing at a faster pace than revenues. The City has attempted to attain fiscal sustainability into the future by finding economies and efficiencies in its operations. Like most California cities, West Covina has several unfunded liabilities.

The biggest of these being the cost of employee pensions. Pension obligations and payments for the UAAL were expected to worsen each fiscal year. This fact prompted the City to issue Pension Obligation Bonds in July 2020 to address the UAAL and attain more favorable interest rates to address the pension problem. This eliminated the City’s UAAL in FY 2023-24; however, the UAAL is back starting in FY 2024-25.

Other Post Employment Benefits liabilities account for the second-largest cost. This liability continues to rise and will need to be addressed in the long term.

The City’s Long-Range Financial Forecast was updated in March 2024 and projected a slight General Fund budget surplus for each year in the forecast. While the City’s outlook has improved, the forecast did not include any increase in salaries in FYE 2025-2029, since it is outside the contracted period.

Negotiations for the next round of labor agreements are underway and could have a significant impact on the City in the long-term.

Based on the revenue and expenditure assumptions, the General Fund is anticipated to have positive revenue over expenditures in FYE 2025 ($486k) and FYE 2026 ($547k) before it goes negative from FYE 2027 to FYE 2029 (-$912k). It is important to reiterate that the forecast does not include any increase in salaries in FYE 2025-2028, since it is outside the contracted period. This also does not reflect recent business closures that will impact sales tax revenues for the city.

Additional Considerations:

Sportsplex
In 2021, the City took over operations of the Sportsplex, a recreation facility where amenities include softball fields, a pavilion, playgrounds, and restaurants. These operations are currently being subsidized by the General Fund. However, this complex offers opportunities to be self-sustaining and increase the local sales tax base.

Health Department
One of the City’s long-term goals is to seek provisional approval from the California Department of Public Health (CDPH) for the creation of a fiscally sustainable municipal health department. This must be done with due regard to General Fund fiscal impacts. Once CDPH provides direction regarding the regulations and services the City may assume, the City will be able to submit an application. In the meantime, the City is currently working on preparing a Community Health Needs Assessment. Other than the CIP project which includes the professional services agreements for these planning activities, the FY 2024-25 budget does not include revenue and expenditures for the health department.

West Covina Chamber
The City is in the process of establishing a Chamber as a pilot program. Staff will be evaluating how to best serve the business community with the programs and services being managed and administered.

The FY 2024-25 budget does not include general fund expenditures for the creation of a chamber.

CIP Project Manager and Deputy Community Service Director.

Recreation and community service programs, including Sportsplex operations.

Special Events, such as Spring Festival, 4th of July, Egg Hunt, Summer Concerts, Christmas Parade, and Halloween.

Quarterly newsletter to inform and engage residents.

Tree trimming and landscaping maintenance to prevent liability problems, reduce tree mortality, and improve urban forest health over the long-term.

Conclusion
Service levels are directly related to the income from which public expenses are met. Finding economies in municipal operations, including privatization and reductions in the workforce, the City has made some progress toward the goal of attaining fiscal sustainability and positioning the City for long-term financial success. As the City enters an economic downturn, it is with conservative optimism that this Budget is presented.

LEGAL REVIEW:

The City Attorney's Office has reviewed this report.

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

Table 1. City-Wide Summary
FY 2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Property Tax 37,402,663 40,591,209 37,936,044 40,117,652 41,810,644 3,874,600 Sales Tax 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes 22,748,250 21,376,260 20,682,894 21,301,531 21,384,702 701,808 Charges For Service 16,284,587 15,866,233 15,888,139 16,808,238 16,774,310 886,171 From Other Agencies 23,603,856 14,777,151 12,027,431 28,673,115 11,699,071 (1,128,360) Interdept Charges 6,790,357 6,825,303 7,407,139 7,407,139 10,203,341 2,796,202 Use of Money & Property 108,869 3,742,855 3,138,340 4,069,617 4,189,100 1,008,760 Licenses & Permits 4,493,925 5,514,873 3,092,000 3,092,478 3,874,200 782,200 Fines & Forfeitures 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Sales 916,416 686,731 647,200 647,200 743,600 96,400
Other Revenues 4,988,190 2,400,498 319,430 795,856 331,800 12,370 Capital Assets 25,564 171,358 171,400 171,400 171,400 - Fees 95,585 191,244 67,100 67,100 98,100 31,000
Revenue Total 141,549,175 136,665,007 126,217,837 147,887,425 136,253,268 9,193,431 Expenditures
Salaries & Benefits 52,935,591 57,753,742 58,046,675 57,527,115 64,069,110 6,011,515 Materials & Services 41,074,721 43,137,517 40,065,410 41,357,553 45,780,258 5,714,848 Capital Assets 24,815,912 12,682,879 46,932,124 46,450,479 21,478,400 (25,453,724) Debt Service 21,220,694 21,953,236 16,899,697 16,990,400 17,184,669 284,972 Allocated Costs 4,659,919 4,582,528 5,427,402 5,461,220 7,079,031 1,651,629 Expenditures Total 144,706,837 140,109,902 167,371,308 167,786,767 155,591,468 (11,790,760) The City-Wide budget is structurally balanced, as recurring revenues equal or exceed recurring expenditures:

Recurring Revenue 141,523,611 136,493,649 126,046,437 147,716,025 136,081,868 Recurring Expenses 119,890,925 127,427,023 120,439,184 121,336,288 134,113,068 Revenue Less Exp.     21,632,686        9,066,626        5,607,253    26,379,738       1,968,800 Table 2. General Fund Summary
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Property Tax 30,687,088 33,401,085 32,710,100 34,891,708 36,219,000 3,508,900 Sales Tax 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes 9,773,175 10,074,971 9,758,500 10,377,137 10,740,400 981,900 Charges For Service 8,512,897 7,879,356 7,792,729 8,497,999 8,788,500 995,771 Licenses & Permits 4,476,096 5,514,665 3,091,800 3,092,278 3,874,200 782,400 From Other Agencies 4,406,517 2,895,485 3,394,700 3,506,194 3,443,795 49,095 Use of Money & Property (1,156,959) 1,123,527 1,813,500 1,837,100 1,900,000 86,500 Interdept Charges 1,188,500 1,188,500 1,196,200 1,196,200 1,196,200 - Fines & Forfeitures 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Other Revenues 94,169 133,879 194,030 90,925 143,500 (50,530) Revenue Total    82,072,396    86,732,760    84,792,279    88,225,641    91,278,595   6,486,316 Expenditures
Salaries 23,250,393 25,592,782 28,398,502 28,444,514 29,962,312 1,563,810 Benefits 15,854,190 16,204,221 15,954,392 16,169,473 19,226,607 3,261,415 Materials & Services 10,720,931 11,619,314 10,116,950 10,241,494 11,120,863 1,003,913 Overtime 6,555,765 7,805,797 7,423,200 6,645,305 6,951,635 (471,665) Allocated Costs 2,600,859 2,542,903 3,238,442 3,255,060 4,553,787 1,315,345 PERS UAL Payment 1,086,848 1,712,960 - - 1,700,110 1,700,110 Utilities 1,347,334 1,409,575 1,390,000 1,445,000 1,471,900 81,900 Fuel 603,180 707,868 788,470 707,475 711,747 (76,723)
Mutual Aid Overtime 968,421 192,002 267,600 267,600 288,900 21,300 Maintenance & Repairs 120,663 109,562 192,500 192,536 171,500 (21,000) Expenditures Total    63,108,584    67,896,984    67,770,056    67,368,457    76,159,361   8,378,405 Revenues Less Expenditures   18,963,812    18,835,776    17,022,223    20,857,184    15,119,234 Net Transfers (20,293,009) (21,965,914) (19,641,613) (21,360,222) (15,117,899) Net Change in Fund Balance (1,329,197) (3,130,138) (2,619,390) (503,038) 1,335 Beginning Fund Balance 25,488,077 24,158,880 21,028,742 21,028,742 20,525,704 Ending Fund Balance    24,158,880    21,028,742    18,409,352    20,525,704    20,527,039 Reserve Requirement (17%) 14,178,271 15,276,693 14,859,984 15,083,875 15,517,134 Attachments
Attachment No. 1 - Budget-in-Brief
Attachment No. 2 - Budget Presentation
Attachment No. 3 - Proposed Budget FY2024-25
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Achieve Fiscal Sustainability and Financial Stability
Address Homeless Issues
A Well-Planned Community
Maintain Good Intergovernmental Relations
Expand Economic Development Opportunities
Enhance City Image and Effectiveness
Rollover Budget
No new positions
Recreation programs, including Sportsplex operations.

Special Events, such as Spring Festival, 4th of July, etc.

Quarterly newsletter
Tree trimming and landscaping maintenance
Service Levels Maintained
0 20
40 60
80 FYE 2022 FYE 2023 FYE 2024 FYE 2025
Nonspendable Unassigned
0 5
10 15
20 25
30 FYE 2021
FYE 2022
FYE 2023
FYE 2024
FYE 2025
Police

44.9%
Fire

31.7%
Public Works/Comm. Srvcs.

9.2%
Admin/Finance/HR

9.2%
$18.7M
FY24-25
$118M Total
Streets
Traffic 58.1%

20.4%
Sewer

10.8%
Parks

6.5%
www.westcovina.org
Proposed Budget FY2024-25

BUDGET-IN-BRIEF
Structurally Balanced Budget
General Fund
$91.3M | Revenue
$91.3M | Expenditures/Transfers
City-Wide
$136M | Recurring Revenue
$134M | Recurring Expenditures
General Fund
Revenue primarily
comes from
Property Tax ($36M),
Sales Tax ($24M),
Other Taxes ($11M), &
Charges for Services
($9M)
Funding Sources
Fund Balance is estimated to be over $20.5M
General Fund - Fund Balance Where does General Fund money go? Community Dev/Code
5%
City of West Covina
Capital Projects
$Millions
$Millions
ATTACHMENT NO. 1
Proposed
Budget
FY 2024-2025
ATTACHMENT NO. 2
City‐Wide Summary
Revenue: Over $136.3 Million Expenditures: Over $155.6Million 2 Property Tax
34%
Sales Tax
19%
Other Taxes
17%
Charges For
Service
14%
Revenue From Other
Agencies
0%
Interdept Charges
8% Licenses &
Permits
3%
Other Revenues
5%
Allocated
Costs
5%
Capital Assets
14%
Materials &
Services
29%
Salaries &
Benefits
41%
Debt Service
11%
General Fund Summary Net Change in Fund Balance is $1.3k 3 FY2021-22
Actual
FY2022-23
Actual
Original Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Net Change in Fund Balance (1,329,197) (3,130,138) (2,619,390) (503,038) 1,335 Ending Fund Balance 24,158,880 21,028,742 18,409,352 20,525,704 20,527,039 Reserve Requirement (17%) 14,178,271 15,276,693 14,859,984 15,083,875 15,517,134 Changes in General Fund Fund Balance
4 $19 $20
$25 $24
$21 $21 $21
-
5 10
15 20
25 30
FYE'19 Actual FYE'20 Actual FYE'21 Actual FYE'22 Actual FYE'23 Actual FYE'24 Est. FYE'25 Proposed Millions
Nonspendable Restricted Assigned Unassigned
General Fund
Revenue
 $91.3 Million
 An Increase of $6.5 Million or 7.6%
from Original Budget FY2023-24
 The largest increase is in Property
Tax which has increased by $3.5M
or 3.8% over the current year
estimate.
 Sales Tax is conservatively increase
by 0.4% in FY2024-25
5 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Millions
Property Tax Sales Tax Other Taxes Charges For Service
Licenses & Permits Fines & Forfeitures Interdept Charges Other Revenues Use of Money & Property From Other Agencies
General Fund Expenditures $76.2 Million Total
6 General Government
9%
Code/Comm Dev.
5%
Community
Services
3%
Fire
32%
Police
45%
Public Works
6%
Expenditures By Department
Salaries &
Benefits
67%
Overtime
9%
Materials &
Services
15%
Allocated
Costs
6%
Utilities, Fuel, M&R
3%
Expenditures By Category
Major Changes in Expenditures
7 $0
$1
$2
$3
$4
$5
$6
$7
$8
$9
Prior Year Actual Current Year Budget Current Year Estimate Proposed Budget Millions
Elections
Pers Ual Pmt -
Miscellaneous
Pers Ual Pmt -
Safety
Workers'
Compensation
Property &
Liability Ins
Charges
General Fund Overtime (in Millions)
8 $0.13 $0.15 $0.17 $0.17
$4.18 $3.71 $2.88 $2.96
$3.35
$3.36
$3.41 $3.51
$7.66 $7.23
$6.45 $6.64
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
-
1 2
3 4
5 6
7 8
9 Prior Year
Actuals
Current
Budget
Current Year Estimate Proposed
Budget
MillionsMillions
Other Fire Police
Budget Survey Survey Rankings:

January - February
41 responses:
83% Residents
39% Property Owners
15% Employed in West
Covina
Respondents were
asked their opinion on
10 different city
services.
9 1 Infrastructure 2 Police 3 Fire & EMS 1 Police 2 Infrastructure 3 EcoDev/Planning Importance
Funding
Service Levels
Maintained
Rollover Budget
No new positions added
Recreation and community service programs,
including Sportsplex operations.

Special Events, such as Spring Festival, 4th of July,
Egg Hunt, Summer Concerts, etc.

Quarterly newsletter
Tree trimming and landscaping maintenance
10 Other Considerations
11 Sportsplex
• These operations continue
to be subsidized by the
General Fund in the next
fiscal year.
• However, in the long-term,
staff is evaluating
opportunities for the
complex to be selfsustaining and increase the
local sales tax base.

Health Department
• Until direction is provided
from the California
Department of Public
Health (CDPH), the City is
in a holding pattern.
• The FY 2024-25 budget
does not include revenue
and expenditures for a
health department.

Chamber
• The City is in the process
of establishing a Chamber
as a pilot program.
• The FY 2024-25 budget
does not include general
fund expenditures for the
creation of a chamber.

Capital
Improvement
Program
$117 M Total Funded Projects
$5.3 M in Completed Projects
Over $74 M in Projects
Underway
$36 M Proposed in new projects
for FY2024-25
12 Facilities
5%
General
17%
Parks
7%
Sewer
14%
Streets
41%
Traffic
16%
Funded CIP by Category
Proposed Budget Schedule
December-February • Budget Survey
Feb. 20th • Long-Range Financial Forecast Filed (Council Meeting) May 7th • Proposed Budget Presentation (Council Meeting) May 8th • Community Workshop – Cameron Community Center May 13th • Community Workshop – City Hall
May 21st • Budget Status Update (Council Meeting) – if necessary June 4th • Budget Adoption & Appropriations Limit (Council Meeting) July 1st • New Fiscal Year Starts
13 Budget in Brief
14 Budget in Brief
Questions?
15 2025

PROPOSED
BUDGET
Operating & Capital Improvement Plan
FY 2024-2025
City of West Covina
www.westcovina.org
ATTACHMENT NO. 3
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CITY OF WEST COVINA, CALIFORNIA
1444 W . G a rvey Ave n ue So ut h, W est Co vina CA 91790

PROPOSED BUDGET
Fiscal Year
July 1, 2024 - June 30, 2025

CITY COUNCIL
Brian Calderón Tabatabai, Mayor
Tony Wu, Mayor Pro Tem
Ollie Cantos, Councilman
Rosario Diaz, Councilwoman
Letty Lopez-Viado, Councilwoman

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

ACTING CITY MANAGER
Paulina Morales

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager
Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Stephanie Sikkema, Finance Director
Vincent Capelle, Fire Chief
Richard Bell, Police Chief
Page intentionally left blank.

Budget Message ….................................................................................................................. 7 Financial Information
Budget Guide …................................................................................................................ 15 Financial Policies …...................................................................................................... 20 Financial Structure ….................................................................................................... 22 Overview of City Funds ............................................................................................... 24 Department-Fund Matrix …................................................................................................ 33 City Profile
City Profile ….................................................................................................................... 34 City Organizational Chart ….......................................................................................... 37 City Council Goals …....................................................................................................38 Budget Summaries
City-Wide Summaries
City-Wide Summary ….....................................................................................42 Summary of All Funds …..................................................................................44 Fund Balance …...............................................................................................48 Changes in Fund Balance …...........................................................................49 Transfer Summary ….....................................................................................52 General Fund
General Fund Summary …................................................................................. 54 General Fund Revenue Summary …..............................................................56 General Fund Revenue …................................................................................57 General Fund Expenditure Summary …........................................................61 Administration Department ..........................................................................63 City Clerk Department ........................................................................................ 71 Code Enforecement Department …................................................................. 75 Community Development …............................................................................ 79 Community Services Department ................................................................... 89 Finance Department ....................................................................................... 103 Fire Department ….............................................................................................. 113 Police Department …......................................................................................123 Public Works ….................................................................................................... 133 Capital Improvement Program ….......................................................................................... 141 Other Funds
Debt Service ….............................................................................................................. 169 Summary of Other Funds …......................................................................................175 Other Funds …..................................................................................................... 178 Appendix
Schedule of Positions …................................................................................................. 251 Glossary of Terms …..................................................................................................261 Acronyms …..................................................................................................................... 264 Long-Range Financial Forecast ….................................................................................. 266 Gann Limit (to be added after adoption) …....................................................................................... XXX Budget Resolution (to be added after adoption)….......................................................................... XXX Table of Contents
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 5 ends

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__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 6 ends

May 7, 2024
Honorable Mayor, Members of the City Council, and Citizens of West Covina:

I am pleased to present the Proposed Fiscal Year 2024-25 Budget for the City of West Covina and the Successor Agency to the Former Redevelopment Agency of the City of West Covina. The Budget provides the framework for providing services and programs to the community of West Covina. The services and programs included in the budget represent the delivery of core services and priorities. This document includes appropriations for the General Fund, Special Revenue Funds, Capital Projects Fund, and Enterprise Funds as well as both Operating and Capital Improvement Program (CIP) budgets.

The proposed budget demonstrates a financial plan for the next twelve months. The City has experienced economic recovery from the global pandemic and had revenue reach and surpass pre-pandemic levels. However, this economic boom has levelled off and is reflected in revenue while expenditures have continued to increase. Thus, fiscal due diligence is necessary.

This budget is essentially a rollover budget that addresses immediate needs for our community.

It has been conservatively designed to continue to adequately fund the City’s reserves. The municipal organization continues its primary focus on the public safety needs of the community, meeting infrastructure & regulatory requirements, and providing excellent service.

Citywide Summary
West Covina’s total projected operating and capital improvement expenditures for the upcoming fiscal year are over $155 million. Revenue for all
fund types combined is over $136 million and
includes Property Tax, Sales Tax, Revenue from
Other Agencies, Charges for Services, Licenses &
Permits, Fines & Forfeitures, and Revenue from
Other Agencies.

In addition, the Capital Improvement Plan budget,
totaling over $18 million for the next fiscal year, is
included in the number above and is primarily
funded from Special Revenue Funds and grants
obtained from various funding sources.

Figure 1. City-Wide Revenue by Category
Property
Tax
34%
Sales
Tax
19%
Other
Taxes
17%
Charges
For
Service
14%
Revenue
From Other
Agencies…
Interdept
Charges
8%
Licenses
&
Permits
3%
Other
Revenues
5%
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 7 ends

Property tax remains the City’s largest revenue source and is projected to be almost $42 million.

Sales Tax, the next largest revenue source, has increased in the past few years to nearly $24 million. However, Sales Tax is expected to level off in the next fiscal year. City staff will continue to monitor sales tax quarterly and amend the budgeted numbers, as necessary. Overall, total revenues for the upcoming year are projected to increase by over $9 million.

Salary and benefits are 41% of the City’s total budget, as depicted in Figure 2 below, which is up from last fiscal year due to the Unfunded Accrued Actuarial Liability (UAAL) pension payment due to the CalPERS in FY 2024-25. Additionally, it should be noted that salaries and benefits provided to the City’s employees continue to rise each year and must be monitored very closely as the City continues to identify alternatives for service delivery.

Figure 2. City-Wide Expenditures by Category Figure 3. City-Wide Expenditures by Fund General Fund
The General Fund provides basic services to the City (i.e. police, fire, planning, administrative services, and parks and recreation). The City’s primary financial goal is to provide an appropriate level of municipal services with the ability to adapt to local and regional economic changes, while maintaining and enhancing the sound fiscal condition of the City. The City’s General Fund continues to be negatively impacted by rising salary and benefits costs, the State’s elimination of redevelopment, and the recession. Staff continues to identify revenue sources and cost-cutting measures to offset these negative impacts.

The City’s budget policy requires that the City’s General Fund maintain an undesignated, unappropriated reserve amount equal to at least 17% of budgeted expenditures or over $15.5 million. The fund balance for the fiscal year ending June 30, 2025, is projected to be over $20 million, which is approximately 22% General
Fund
49% Total
Special
Revenue
29%
Total
Debt
Service…
Internal
Service
6%
Trust
Funds
5%
Capital Projects
1%
Enterprise Fund
0%
Allocated
Costs
5% Capital
Assets
14%
Materials
&
Services
29%
Salaries
&
Benefits
41%
Debt
Service
11%
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 8 ends

of General Fund expenditures and transfers. Of this, over $3 million is assigned, which leaves approximately $17 million in assigned fund balance.

Figure 4. General Fund, Fund Balance
General Fund Revenues
Total General Fund revenues are projected to be
over $91 million, a 7.6 percent increase from the
FY 2023-24 Adopted Budget.

This is largely due to an increase in Property Tax
revenue of over $3.5 million over the original
budget but only a three percent increase from the
FY2023-24 end of year estimate.

Sales Tax is estimated to increase by 0.4% and
other taxes by nearly 12 %. Licenses and permits
are projected to increase based on prior year
actual trends.

General Fund Expenditures
General Fund expenditures for the fiscal year 2024-25 are projected to be over $76 million. This is a $8.4 million increase from the current fiscal year’s original budget.

Most General Fund expenditures go towards salaries, benefits, UAAL payment, and overtime (76%). Over the past couple of years, the City has executed memorandums of understanding with all nine of its bargaining groups. These agreements included salary increases ranging from three to nine percent per group and are offset by employee contributions to pensions ranging from one and half to six percent.

Most of these contracts expire at the end of the current fiscal year and are currently in negotiations. Thus, no salary increases outside of contract have been included in this proposed budget. $19 $20
$25 $24
$21 $21 $21
-
5 10
15 20
25 30
FYE'19
Actual
FYE'20
Actual
FYE'21
Actual
FYE'22
Actual
FYE'23
Actual
FYE'24
Est.

FYE'25
Proposed
Millions
General Fund Fund Balance
Nonspendable Restricted Assigned Unassigned
Property
Tax
41%
Sales Tax
27%
Other
Taxes
12%
Charges For
Service
10%
Revenue From
Other Agencies
0%
Licenses &
Permits
5%
Other Revenues
5%
Figure 5. General Fund Revenue
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 9 ends

Figure 5. General Fund Expenditures by Category
Overtime continues to be an increasing burden on the City. The FY 2024-25 Proposed Budget is based on prior years actuals with an estimated increase in line with base salary increases. General Fund Overtime is proposed to be approximately $6.64 million. Most of this overtime is from Police ($3.5M) and Fire ($2.96M).

Figure 6. General Fund Overtime
Salaries
39%
Benefits
25%
Materials & Services
15%
Overtime
9%
Allocated Costs
6%
PERS UAL Payment
2%
Utilities
2%
Fuel
1%
Mutual Aid Overtime
1% Maintenance & Repairs
0%
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
-
1 2
3 4
5 6
7 8
9 Prior Year
Actuals
Current
Budget
Current Year Estimate Proposed
Budget
MillionsMillions
Police
Fire
Other
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 10 ends

Fiscal Challenges
Short-Term Factors
While the City expects property tax and other taxes to increase, sales tax revenue has leveled off. This budget has been developed with this in mind. Sales tax, which is the General Fund’s second-largest revenue source, is forecasted to only increase by 0.37% over the coming year. This, in comparison to the rise in the Consumer Price Index (CPI), which increased by approximately 3% over the last year. It is important to note that many existing contracts call for an annual increase per CPI. The UAAL payment and unfunded liabilities have also increased. Essentially, expenditures are increasing at a faster rate than revenues.

Through sound financial policies and procedures, the City managed rising costs and dwindling revenues efficiently and effectively. This has resulted in a growth in the unassigned general fund balance. This is not to say that significant challenges do not face the City going forward. Rising costs of materials and services continue to be of grave concern. Infrastructure needs of the City have been deferred for many years and, while the City has been investing in the infrastructure needs of the city, there are still outstanding needs for infrastructure needs.

Four specific challenges affect the City’s annual budget:

1. Resident Engagement – Through civic engagement, resident and community partners define what services are valued. The result is a budget that better reflects local priorities. Inclusive, open, and collaborative budget processes and community declaration of principles help the municipal organization better provide essential services.

2. Accountability Through Oversight – Continued improvement of the City’s long-term financial health requires ongoing close attention to timely implementation of the City’s Financial Recovery Plan. Institutionalizing accountability in the recovery process enhances public trust in municipal governance.

3. Fiscal Prudence – Capital needs remain underfunded. Clearly, municipal facilities are not to standard. Maintenance of buildings, streets, and parks has been deferred and as a result services have suffered. Typically, assets run to failure, operate until they break down. For example, Fire Station No. 1, has been determined uninhabitable, forcing the City to setup up temporary quarters. The City has received some one-time funding to address critical immediate needs.

However, additional funding sources or alternative service delivery models need to be identified to address future issues.

4. Labor Negotiations – Seven of the nine labor contracts expire June 30, 2024. The City is currently underway with negotiations with the groups that have a pending contract expiration. The outcome of these negotiations will have an immediate short-term impact and may have a long-term impact. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 11 ends

Long-Term Factors
The FY2024-2025 Proposed Budget is structurally balanced; however, expenditures are increasing at a faster pace than revenues. The City has attempted to attain fiscal sustainability into the future by finding economies and efficiencies in its operations. Like most California cities, West Covina has several unfunded liabilities.

The biggest of these being the cost of employee pensions. Pension obligations and payments for the UAAL were expected to worsen each fiscal year. This fact prompted the City to issue Pension Obligation Bonds in July of 2020 to address the UAAL and attain more favorable interest rates to address the pension problem. This eliminated the City’s UAAL in FY 2023-24; however, the UAAL is back starting in FY 2024-25.

Other Post Employment Benefits liabilities account for the second largest cost. This liability continues to rise and will need to be addressed in the long term.

Based on the revenue and expenditure assumptions, the General Fund is anticipated to have positive revenue over expenditures in FYE 2025 (486k) and FYE 2026 ($547k) before it goes negative from FYE 2027 to FYE 2029 (-$912k). It is important to reiterate that the forecast does not include any increase in salaries in FYE 2025-2028, since it is outside the contracted period.

Figure 8. Forecasted General Fund Revenue and Expenditures It is important to note that this forecast does not reflect recent business closures that will impact sales tax revenues for the city.
-$3,038 -$953
$486 $547
-$202 -$282
-$912
(3,500)
(3,000)
(2,500)
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
80 82
84 86
88 90
92 94
96 98
Actual FYE
2023
Estimate FYE
2024
Forecast FYE
2025
Forecast FYE
2026
Forecast FYE
2027
Forecast FYE
2028
Forecast FYE
2029

THOUSANDS

MILLIONS
General Fund Revenue and Expenditures
General Fund Revenues General Fund Expenditures Revenue Less Expenditures __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 12 ends

Sportsplex
In 2021, the City took over operations of the Sportsplex, a recreation facility where amenities include softball fields, a pavilion, playgrounds, and restaurants. These operations are currently being subsidized by the General Fund. However, in the long-term, this complex offers opportunities to be self-sustaining and increase the local sales tax base.

Health Department
One of the City’s long-term goals is to seek provisional approval from the California Department of Public Health (CDPH) for the creation of a fiscally sustainable municipal health department. This must be done with due regard to General Fund fiscal impacts. Once CDPH provides direction regarding the regulations and services the city may assume, a Community Health Needs Assessment, Community Health Improvement Plan and other studies as may be required by CDPH and the Public Health Accreditation Board. Until direction is provided by CDPH, the City is in a holding pattern. Therefore, other than the CIP project which includes the professional services agreements for these planning activities, the FY 2024-25 budget does not include revenue and expenditures for a health department.

City Council Goals
The budget contains previously established City Council goals to guide the City. These goals will be instrumental in guiding the budget process. These overarching goals can be seen throughout the budget document as follows:

More information regarding these goals may be found later in this document.

Service Levels
The citizens of West Covina continue to expect a high level of service provided by the City. These services are paid for with local tax dollars and include police; recreation and community service programs for youth, adults, and seniors; park maintenance; street maintenance; transportation; engineering; building & safety; housing programs; planning & development; code enforcement; animal control; and environmental programs and services. Services levels are proposed to remain level across operations. No new positions are proposed to be added, however, the following positions and services were added in recent years and are proposed to be maintained:
▪ CIP Project Manager and Deputy Community Service Director. ▪ Recreation and community service programs, including Sportsplex operations. ▪ Special Events, such as Spring Festival, 4th of July, Egg Hunt, Summer Concerts, Christmas Parade, and Halloween.
▪ Quarterly newsletter to inform and engage residents.
▪ Tree trimming and landscaping maintenance to prevent liability problems, reduce tree mortality, and improve urban forest health over the long-term.

Protect Public
Safety
Achieve Fiscal
Sustainability
& Financial
Stability
Address
Homeless
Issues
A Creative &
Active
Community
A Well-Planned
Community
Maintain Good
Intergovernme
ntal Relations
Expand
Economic
Development
Opportunities
Enhance City
Image &
Effectiveness
An Accessible
Community
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Conclusion
Service levels are directly related to the income from which public expenses are met. Finding economies in municipal operations including privatization and reductions in the workforce, the City has made some progress toward the goal of attaining fiscal sustainability and positioning the City for long-term financial success. As the City enters an economic downturn, it is with conservative optimism that this budget is presented.

Acknowledgement
The preparation of this budget could not have been accomplished without the entire staff of the Finance Department. I would also like to express my appreciation to all members of all Departments who assisted and contributed to the preparation of this report. These are extremely challenging times for local government in which many difficult decisions must be made. Credit must also be given to the City Council for their interest and support in planning and conducting the financial operations of the City.

Sincerely,
Paulina Morales
Paulina Morales
Acting City Manager
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Budget Guide
Purpose of the Budget Document
The Budget sets forth a strategic resource allocation plan and serves as a policy document, financial plan, operations guide, and communication device all in one.

The Budget:
▪ Determines the quality and quantity of City programs and services; ▪ States expenditure requirements for the allocation plan and estimated available revenues to finance it;
▪ Sets targets and provides a means of measuring accomplishments against goals; and ▪ Serves as a communication device for elected officials, the public, and the City organization that promotes the City’s vision and direction, fiscal health and vitality, and what the public is getting for its tax dollars.

Through the Budget Document, the City demonstrates its accountability to its residents, customers, and community.

Relationship Between Operating Budget & CIP
The Budget document is comprised of both the Annual Operating Budget and the Capital Improvement Budget. The development of the two budgets, however, takes place on two separate, albeit interrelated, tracks.

The Operating Budget is the complete budget used to finance all day-to-day operations and obligations of the City. The budget includes general government administration and operations, debt service, capital expenditures, and transfer payments for a particular fiscal year. The funding for this budget is derived from taxes, fees, licenses, fines, and inter-governmental revenues (state and federal).

The Capital Improvement Program (CIP) is a multi-year instrument that drives the identification, evaluation, and financing of capital infrastructure projects that are in need of renovation, repair and/or construction. Capital projects range from road maintenance or construction to the renovation of municipal buildings, recreation centers, water main and sewer system replacement. The CIP relates these capital project needs to the financial sources that will support their realization and the timeframe in which both the financing and work will take place. Capital improvement projects typically carry considerable future impact, meaning, they have a life span of at least five years or more. They are usually financed over a longer period, in effect spreading the cost of the project across a generation of users.

Long-Range Financial Forecast
The Long-Range Financial Forecast provides long-term (five-year) context for annual decisions that are made with the annual budget and Capital Improvement Plan. The forecast is developed prior to the formation of the Proposed Budget to create a forward-looking, conservative baseline budgetary outlook for the City’s General Fund under a given set of revenue and expenditure growth assumptions.

The revenue and expenditure growth assumptions have been updated based on historical trends, actuarial reports, and CPI trends. The base year for this forecast is FYE 2024. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Budget Guide
The City’s major revenue sources include property taxes and sales tax. Each of these revenue sources is driven by the growth of the local economy and the City’s population. This is also true of several of the City’s other revenue sources including fees, charges for service, franchise taxes, and licenses and permits.

Expenditures are forecasted for the City’s two major funds: General and Debt Service. The baseline forecast presented herein includes expenditures already approved by and/or committed to by the City Council. Rising costs due to inflation, and/or interest rates are also anticipated and included in this forecast through growth factors applied to each forecast category.

A complete copy of the Long-Range Financial Forecast is included under the appendix.

Budget Process
The City of West Covina’s fiscal year begins each July 1st and concludes on June 30th. The development of the annual budget is comprised of distinct phases and requires a great deal of effort on the part of the City Council and all members of the City’s management team. The budget process starts with goals which the Council formally establishes early in the year.

Following that, a community survey seeking input on the budget is solicited and the long-range financial plan is updated. While these are going on, an internal budget kick-off meeting is held with a discussion on the technical and procedural aspects
of preparing the budget.

Departments have approximately
three weeks to prepare their lineitem budgets.

Once the initial line-item requests
are compiled, Finance staff works
with the City Manager and
departments to review the requests
and gain a high-level understanding
of the challenges facing the City and
specific departments, including gaps
between revenues and expenditures,
fund balance projections, and
department priorities.

Budget review meetings are then
held with each department to discuss the proposed budgets, including increases, reductions, or other significant changes, goals and objectives, and supplemental requests. Actions available for addressing budget gaps are discussed, along with the merits of the various work program components. Departments are then given the opportunity to amend their proposed line-item budgets and to address issues or concerns discussed in the budget review meetings.

Council Goals
Established
Long Range
Financial Plan
Community
Survey
Development
Proposed
Budget
Community
Workshops
Final Review
Budget
Adoption
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Budget Guide
Once the City Manager and department reviews have taken, the Finance staff prepares the preliminary budget. The Finance Director presents the Proposed Operating and Capital Improvement Program (CIP) Budget to the City Council and the Community at a City Council meeting in May or early June. Specific policy issues, funding shortfalls, and major challenges are discussed, and recommended changes are then incorporated into the budget. Meetings are held, as needed, to ensure that the budget accurately reflects the City Council’s objectives for the coming year until the final budget is adopted by the City Council.

Community workshops regarding the proposed budget are then scheduled to provide public feedback.

After updating the Council regarding public input and a seeking final review, the budget is adopted. The Appropriations Limit is considered at the same time and requires its documentation to be publicly available at least fifteen days prior to the meeting.

The budget plays a crucial role in communicating to elected officials, City employees, and the public the City’s plans for the use of its resources. Although the City has made every effort to make the document as easy to navigate as possible, budgets are complex documents that can be difficult to grasp at first hand.

This section provides the reader with some basic understanding of the constituent components of a budget document.

FY2024-2025 Budget Schedule
* Appropriations Limit Calculation must be publicly available at least 15 days prior to approval.

December-February • Budget Survey
February 20th • Long-Range Financial Forecast Filed (Council Meeting) May 7th • Proposed Budget Presentation (Council Meeting) May 8th • Community Workshop – Cameron Community Center May 13th • Community Workshop – City Hall
May 21st • Budget Status Update (Council Meeting)
June 4th • Budget Adoption & Appropriations Limit* (Council Meeting) July 1st • New Fiscal Year Starts
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Budget Guide
Organization of the Budget Document
The Budget document is comprised of the following sections:

Budget Message
The Budget Message is a transmittal letter addressed to the Mayor, City Council, and Citizens of West Covina that introduces the annual budget. The Budget Message outlines the organizing principles of the budget and the assumptions on which the budget was developed. The Budget Message aims to provide the reader with highlights of the operating and capital budgets, and sufficient context to understand how and why the budgetary changes occurred between fiscal years.

Financial Information
This section provides the reader with an understanding of the City’s financial policies and budgetary practices. It describes the purpose of the budget, its development, reading the budget, and the financial and operational policies followed in the budget development and planning process. Additionally, this section provides a description of each of the City’s funds, details about the City’s debt, and includes the resolutions for the appropriations limit and adoption of the budget.

City Profile
The City Profile provides a snapshot of the City for which the Budget has been developed. The purpose of this section is to give the reader an at-a-glance look at the City’s organizational structure, demographic data, and other statistics. It also includes a matrix illustrating department/fund relationships.

Budget Summaries
The budget summaries section is the nuts and bolts of the Budget. It provides the following information:

Summary of Citywide revenue and expenditures, Changes in Fund Balance, Operating Transfers and an overview of the General Fund, including a detailed schedule of revenue.

Department Narratives
The Department Narratives contain budget information for the basic organizational units of the City, its departments within the General Fund. Each department narrative presents the following information:

Mission Statement – Each department has formulated a mission statement that presents the “what, for whom, and why” the department exists.

Department Summary – Summary of the department’s areas of responsibility and major business activities.

Organizational Chart – Overview of the department’s basic organization and positions.

Goals and Objectives – Departments are comprised of smaller organizational units that allow the department to attain its mission.

Accomplishments – This section lists a department’s achievements over the past fiscal year.

Performance Measures – The table provides Key Performance Indicators for the department.

Expenditures by Category – The table provides information on budgeted operating expenditures organized by personnel and maintenance and operations.

Expenditure Summary by Division – These tables provide budgeted expenditures by division. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Budget Guide
Capital Improvement Program
This section looks at the City’s five-year Capital Improvement Program (CIP), funding sources, project descriptions, and the specific projects being funded in the current budget year.

Other Funds
Debt Service
This section provides a summary of the City’s debt service including a detail of obligations due in the coming fiscal year.

Other Funds
This section provides a summary of all other City funds.

Appendix
Schedule of Positions
The Schedule of Positions section includes the titles of the Full Time Equivalent (FTE) positions authorized for each department. A comparative table that provides four years of data is also presented in this section, along with a summary of changes from the prior year amended to the current year adopted.

Glossary of Terms & Acronyms
Budget documents may be difficult to read and may contain terms unfamiliar to the reader. This section covers key terms used throughout the budget document and in the budgeting process in general.

Long-Range Financial Forecast
A copy of the Long-Range Financial Forecast provided.

Gann Limit (Inserted Following Approval)
This section includes a copy of the approved Appropriations Limit Calculation Fiscal Year and corresponding Resolution. Article XIIIB of the California Constitution imposes an appropriations limit on units of state and local governments. In response to a perception that government spending was increasing without any controls, the voters passed Proposition 4, "The Gann Initiative," which is now included in the California Constitution as Article XIIIB. This article limits the amount of appropriations (related to tax proceeds) that state or local governments can establish each year.

Budget Resolution (Inserted Following Budget Adoption)
This section includes a copy of the approved budget resolution. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Financial Policies
Budgetary Control and Policies
Budgetary control is exercised by:
- The annual budget adopted by the City Council.
- Formal budgetary integration within the accounting system. - Quarterly financial reports presented to the City Council. - The encumbrance of estimated purchase/contract amounts prior to the release of purchase orders to vendors.
- Properly and adequately documented City Council approved budget adjustments to expenditure appropriations and revenue estimates.
- Monthly review of departmental expenditure reports comparing budget to actual amounts; and - The established review process of carryovers in which departments are requested to submit justification for any requested purchase order (PO) carryovers.

The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the fiscal year. Public meetings are conducted prior to its adoption by the City Council. It is the City Council’s goal to adopt an annual balanced budget, a budget in which current revenues equal recurring expenditures. The City Manager has authority to adjust the amounts appropriated within the funds and activities of a fund, provided, however, that the total appropriations for each fund may not exceed the amounts provided in the budget resolution. The City Manager is also authorized to approve continuing appropriations at year‐end for capital improvement projects and other expenditures previously approved by the City Council.

Budget Amendment Procedures
The City’s operating budget may be amended by three methods: 1) purchase order carryovers, 2) administrative carryovers approved by the City Manager, and 3) City Council action. Under all methods where appropriations are increased, funds must be available to match the request.

Administrative Carryovers
At the end of each fiscal year, the Finance department requests that each department review its budget for items or programs for which any planned expenditure is pending. This may include a project which has been initiated, or an item ordered but not received.

The Finance Director determinesthe merit of any requests and ensuresthat adequate funding is available.

Recommendations are then presented to the City Manager, who in turn determines which requests will be approved. Approved carryover requests increase the department’s budget appropriation in the new fiscal year.

City Council Action
Throughout the year, the City Council considers departmental requests for additional appropriations to fund activities not included in the original Adopted Budget.

CIP Carryovers
Every year, staff reviews each capital project and carries forward prior year appropriations for projects that have not been completed or for which long‐term funding is being accumulated. The carryovers are __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 20 ends

Financial Policies
managed administratively and are not included as part of the current year’s CIP Budget. Projects funded in prior years, but not started, are reviewed to determine whether such projects continue to be City Council priorities. The budget for any project that has not been started and is no longer a City Council priority is made available for other projects.

Cash And Investment Policies
The City’s cash and investments are reported at fair value. Changes in fair value that occur during a fiscal year are recognized as interest revenue reported for that fiscal year. Interest revenue includes interest earnings, changesin fair value, and any gains or lossesrealized upon the liquidation orsale of investments.

Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. Interest revenue earned by the pooled investments is allocated to the various funds based on each fund’s average monthly cash and investment balance.

Reserve Policy
To prudently protect the fiscal solvency of the City, it is important to maintain some minimum level of reserves. Reserves are important to mitigate the negative impact to revenues from economic fluctuations, to fund unforeseen expenditure requirements, to provide a minimum level of cash investment interest revenue, and to avoid the need to borrow for cash management purposes. The General Fund Reserve is currently slightly above the reserve policy limit of 17% of operating expenditures.

Capital Assets
Capital assets (including infrastructure) greater than $5,000 are capitalized and recorded at cost or at the estimated fair value of the assets at the time of acquisition where complete historical records have not been maintained. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, curbs and gutters, streets and sidewalks, medians, sewers, and storm drains.

Gann Limit
The adoption of the appropriation limit occurs annually to comply with the California Constitution, Article XIIIB (as amended) and Government Code Section 7910. The Gann Limit restricts annual expenditures the City may appropriate. If certain proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or refunded to the taxpayers. The City’s tax proceeds are projected to be less than the established appropriation limit.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 21 ends

Financial Structure
The City provides a full range of services to its citizens. These include police, fire, emergency medical, street construction and maintenance, traffic signalization, parks, recreational, cultural, and social, planning, building and safety, economic development, environmental, and general administrative services.

Services are categorized into a departmental structure to afford similarity in services provided.

Departments may receive funding from one or more funds. Through the budget process and ongoing activity, the City Council oversees the operation of the City, and sets forth community priorities and policies to be implemented by the City Manager. The City Manager directs the Department Heads in the administration of City programs and service delivery. The City Manager establishes administrative policies in areas under his purview.

To monitor and evaluate departmental effectiveness, a project‐performance program is utilized. Under this program, each department sets forth projects and programs to be undertaken during the fiscal year.

Projects and programs may be one‐time (with a specific completion date) or ongoing programs. A listing of each department’s projects and programs is submitted at the beginning of the fiscal year as an overview of the department’s work program. This information is compiled in the budget document and provides a detailed overview of the City’s work program for the fiscal year.

The more significant departmental projects and programs provide the basis for the departmental goals and objectives, and workload indicatorsincluded in the departmental budgets. Departmental work programs are updated periodically. Completed projects, completion dates, new projects undertaken, as well as specific actions completed in providing ongoing programs, are established, and reviewed. This process provides an ongoing measure of departmental activity and effectiveness in meeting the City Council’s priorities.

Basis of Accounting and Budgeting
The City’s accounting system is organized and operated on a “fund basis” under which each fund is a distinct self‐balancing accounting entity. A fund is “an independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created.” Funds are established for the purpose of carrying out specific activities or attaining certain objectives in accordance with special regulations, legal restrictions, or limitations on the revenue source.

The City’s annual operating budget is prepared in conformity with Generally Accepted Accounting Principles (GAAP) and provides for the general operation of the City. The modified accrual basis of accounting is used for governmental fund types and the accrual basis of accounting is used for proprietary fund types. The City Manager is authorized to transfer budgeted amounts between departmentsto ensure adequate and proper standards of service. Budgetary revisions, which increase the combined appropriations in individual funds, must be approved by the City Council. The budgetary level of control is at the departmental level.

Budgets for Governmental Funds are adopted on a basis consistent with GAAP. The budgetary basis of accounting is the same as the basis of accounting for auditing purposes. The City does not budget for all component units that are accounted for in the Annual Comprehensive Financial Report (ACFR). __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 22 ends

Financial Structure
City funds are classified into three broad categories:

Capital Improvement Program
Each year, the City Council adopts a Capital Improvement Program (CIP), which identifies all of the major projects to be undertaken to improve facilities and infrastructure within the city. During the fiscal year, a separate CIP document that reflects the current year program and proposes a program of prioritized projects for the next five years is prepared.

Department Headssubmit all proposed projectsfor their department in the foreseeable future, along with their best cost‐estimate. The request includes the year a project will commence, any funding sources that may be available with either future sources or ones which might have been previously designated, justification for the project, and on‐going costs expected to occur after the project has been completed.

The CIP budget team then compiles the information and presents a draft CIP program to the City Council.

Projects are prioritized based on City Council and staff input. Additional projects may be approved during the year by City Council action.

Capital projects may be funded from a variety of funds, with most projects funded from restricted funds.

Allocated Costs
As part of the City’s effort to incorporate stronger cost accounting controls and methods, the cost of operating certain departments is allocated to user departments. This process is used to fund those departments that provide inter‐departmental services. This allows these departments to operate in a manner similar to an Internal Service Fund.

Allocated departments include fleet maintenance and replacement, insurance costs and workers’ compensation. Fleet maintenance is budgeted based on a three‐year average of the department’s actual service usage and allocated based on actuals. Insurance and worker’s compensation are based on projections from the California Joint PowersInsurance Authority (CJPIA). Vehicle replacement is budgeted based on the vehicle or equipment’s replacement cost divided by the life of the asset.

Governmental
• Include activities usually
associated with typical or
local government
operations.
• Ex. General Fund, Special
Revenue, Debt Service,
and Capital Improvement
Projects
Proprietary
• Financed and operated in a
manner similar to private
business enterprises,
where the intent is to
recover the cost of
providing goods and
services from user charges.

Fiduciary Funds
• Utilized in situations where
the government is acting in
a fiduciary capacity as a
trustee or agent.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
A number of different funds are utilized to account for the City, the Successor Agency to the Former Redevelopment Agency, and the West Covina Housing Authority financial resources. Funds are classified into the following fund types:
▪ General Fund
▪ Debt Service
▪ Capital Projects
▪ Special Revenue
▪ Internal Services
▪ Proprietary
▪ Private Purpose Trust
The City has established multiple funds, under each fund type, to assist in accounting and record keeping for the City and outside agencies. The following funds are budgeted (appropriated) each year.

General Fund (Fund 110)
The General Fund is the City’s largest single fund type and is used to account for unrestricted revenues.

The City’s General Fund is the main operating fund for non-restricted revenues, such as general taxes and fees. Appropriations may be made by the General Fund for City activities. This fund is used to account for basic City services such as police, fire, recreation, building, planning, and general administration.

Within the General Fund, the City maintains non-spendable (not available) and unassigned (available) reserves that represent the unappropriated fund balance.

Debt Service Fund (Fund 300)
The City has established one Debt Service Fund to accumulate assets for the repayment of City long-term debt, which includes outstanding bonds, notes, capital leases and related costs. Funding is accumulated from interest income, developer reimbursements, and transfers from the General Fund and the Successor Agency.

Capital Project Funds
Capital Projects (Fund 160)
The City Council established the fund to serve as the source of capital funding for CIP projects which include long-term improvement programs not accounted for in other funds.

Construction Tax (Fund 161)
The Construction Tax Fund receives monies from developers based on the construction of dwelling units in the City. These funds are then used to purchase or construct public facilities, such as street reconstruction, traffic signal modifications, curb and gutter replacements and rehabilitation of park structures and equipment.

Information Technology (Fund 162)
The funds paid into this fund are to be used for information technology capital outlay projects. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
Development Impact Fees (Fund 16x)
The City receives one-time fees on new development to be used to cover costs of capital equipment and infrastructure required to serve new growth. The following funds have been established:
▪ Fund 164 – Police Impact Fees
▪ Fund 165 – Fire Impact Fees
▪ Fund 166 – Park Impact Fees
▪ Fund 167 – City Administrative Impact Fees
▪ Fund 168 – Public Works Impact Fees
Park Acquisition (Fund 169)
The funds are to be utilized for new parkland acquisition and the development of new parkland.

Park Dedication Fees (Fund 17x)
The City receives fees from developers to fund recreation facilities. The City has been divided into eight park districts for the purposes of collecting revenue. These funds are used for qualified recreational purposes throughout the City. The following Districts have been established:
▪ Fund 170 – Park District “A” Del Norte Park
▪ Fund 171 – Park District “B” Palm View Park
▪ Fund 172 – Park District “C” Orangewood Park
▪ Fund 173 – Park District “D” Walmerado Park
▪ Fund 174 – Park District “E” Cortez Park
▪ Fund 175 – Park District “F” Galster Wilderness Park
▪ Fund 176 – Park District “G” Shadow Oak Park
▪ Fund 177 – Park District “H” Friendship Park
ARPA Local Recovery Funds (Fund 179)
This Special Revenue Fund accounts for the grant funds received from the American Rescue Plan Act.

Future Street Improvements (Fund 180)
This fund accounts for monies paid in-lieu of street rehabilitation improvements.

Special Revenue Funds
Asset Seizure (Funds 116, 117 and 118)
Asset Seizure revenues are received based on the City’s participation in drug-related asset seizures. Funds are received from federal (Department of Justice and Department of Treasury) and state agencies. These funds are restricted to uses that enhance the police department’s activities.

Air Quality Improvement Trust (Fund 119)
In 1991-1992, the state passed AB 2766, the State’s Air Quality Improvement Trust Fund. An increase in motor vehicle license fees collected by the State of California supports this state fund. The City receives a portion of the fees to enhance the City’s clean air efforts. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 25 ends

Overview of City Funds
Proposition A Discretionary (Fund 120)
The city applies to Los Angeles County Metro Transportation for a Proposition A Discretionary Fund grant.

The funds are to be used to improve service or to coordinate transportation services.

Proposition A (Fund 121)
Under Proposition A, the City receives a portion of the ½ cent sales tax levied in Los Angeles County to provide transportation-related programs and projects. For years the City has sold its Proposition A funds to other cities in exchange for non-restricted General Fund dollars.

Proposition C (Fund 122)
Under Proposition C, the City receives a portion of an additional ½ cent sales tax approved for transportation-related programs in Los Angeles County. The funds may be used for certain capital projects or transportation projects similar to those allowed under Proposition A. Projects include street rehabilitation and reconstruction, traffic monitoring systems, congestion management and planning, bus shelter maintenance, Park-and-Ride lots, the City’s shuttle and Dial-A-Ride services and recreational transit services.

Gas Tax (Fund 124)
This fund accounts for State Gas Tax monies received under various state laws. The funds are used to fund the City’s street maintenance program. Activities include ongoing minor street repairs, upgrades of traffic signals, replacement and installation of new traffic signs and street painting. Programs are administered through the Community Development and Public Services Departments.

Police Donations (Fund 127)
This fund accounts for donations received from various private donors to be used on expenditures related to various police programs.

Transportation Development Act (Fund 128)
Transportation Development Act funds are received throughout the County and may only be used for specific transportation development purposes. These funds are generally used by the City for sidewalk rehabilitation and construction, and the long-term transportation planning efforts within the City.

AB 939 (Fund 129)
This fund accounts for revenues and expenditures of programs implemented to meet the requirements of the California Integrated Waste Management Act of 1989 (AB 939). Revenues are generated through a waste management fee. Programs funded include the development and implementation of a solid waste reduction and recycling project, household hazardous waste disposal project, and solid waste management activities.

Bureau of Justice Assistance (Fund 130)
This fund accounts for grant revenue provided by the federal Bureau of Justice Assistance (BJA), within the U.S. Department of Justice (DOJ). The Edward Byrne Memorial Justice Assistance Grant (JAG) Program grant funds must be used to hire additional personnel and/or purchase equipment, supplies, contractual support, training, technical assistance, and information systems for criminal justice. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
Community Development Block Grant (Fund 131)
This fund accounts for activities of the Community Development Block Grant received from the U.S.

Department of Housing and Urban Development, including monies received from this agency as part of the federal stimulus program.

Alcohol Beverage Control (ABC) Grant (Fund 138)
This fund accounts for grant revenue provided by the State of California, Department of Alcohol Beverage Control (ABC). This grant funds a minor decoy, shoulder tap programs and conduct informed merchants preventing Alcohol-Related Crime Tendencies (IMPACT) inspections. These programs target both ABC licensed premises and individuals who furnish alcohol beverages to the underage operators.

Surface Transportation Program (STP) Local (Fund 140)
This fund accounts for Federal Highway Administration funds received through Caltrans for projects to preserve and improve the conditions and performance on any Federal-aid highway, bridge and tunnel projects on any public road, pedestrian and bicycle infrastructure, and transit capital projects.

LA County Park Bond (Fund 143 & 210)
These funds account for funding received through the Los Angeles County Regional Park and Open Space District Grant for projects to improve and rehabilitate parks, recreational facilities, trails, and open space.

Highway Safety Improvement Program (HSIP) Grant (Fund 144) This fund accounts for the federal monies received with the purpose of achieving a significant reduction in traffic fatalities and serious injuries on all public roads. The HSIP requires a data-driven, strategic approach to improving highway safety on all public roads with a focus on performance.

Waste Management Enforcement Grant (Fund 145)
This fund accounts for the money received from the State of California to help support the local enforcement agent who monitors the local closed landfill.

Senior Meals Program (Fund 146)
This program provides meals to low-income seniors with funding from the United States Department of Agriculture and Area Agency on Aging. The program also receives donations from seniors for meals.

Used Oil Block Grant (Fund 149)
The California Integrated Waste Management Board (CIWMB) provides funds for used motor oil recycling.

Inmate Welfare (Fund 150)
This fund accounts for any money, refund, rebate or commission received from a telephone call from inmates while incarcerated to meet the requirements of California Penal Code: Part 3; Title 4; Chapter 1; Section 4025. The monies are to be expended for the benefit, education, and welfare of inmates confined within the jail. Any funds that are not needed for the welfare of the inmates may be expended for the maintenance of the jail facilities.

Public Safety Augmentation (Fund 153)
This fund accounts for the permanent extension of the sales tax by ½ cent guaranteed under Proposition 172. These revenues are restricted to the enhancement of public safety services. Revenue is allocated __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
based on each qualified county’s proportionate share of statewide taxable sales.

COPS/SLESF (Fund 155)
This fund accounts for grant revenue provided by the state to support Community Oriented Policing programs. Funds must be spent on front-line law enforcement services.

USDOJ COVID (Fund 156)
This fund accounts for grant revenue provided by the U.S. Department of Justice (DOJ) The Coronavirus Emergency Supplemental Funding (CESF) grant. Funds must be used for overtime, supplies, and services that are involved in the response to the coronavirus pandemic.

Beverage Container Recycling Grant (Fund 158)
The Beverage Container Recycling Grant provides funds derived from consumer deposits on beverage containers. These funds are to be used for beverage container recycling and litter cleanup activities.

Summer Meals Program (Fund 159)
This fund comes from the Food and Nutrition Service (FNS) of the United States Department of Agriculture, which provides a free lunch to children on weekdays during the summer months.

Maintenance District Funds (Fund 18x)
The City levies special benefit assessments and property taxes upon property within defined districts.

Through the Los Angeles County Tax Collector, assessments are placed on the property owner’s annual tax bill. These funds are used to maintain and improve the open spaces within the districts by providing landscape maintenance. Assessment districts currently established in the City include:
▪ Maintenance District #1 (Fund 181)
▪ Maintenance District #2 (Fund 182)
▪ Maintenance District #4 (Fund 184)
▪ Maintenance District #6 (Fund 186)
▪ Maintenance District #7 (Fund 187)
Coastal Sage and Scrub Community Facilities District (Fund 183) This community facilities district was formed to provide for the restoration and ongoing maintenance of sensitive environmental habitat within the development area of a former landfill, including habitat for endangered species such as the California gnatcatcher (Polioptila californica).

Citywide Maintenance District (Fund 188)
This is the City’s most significant special assessment fund. Revenue comes from annual special benefit assessments from property owners who benefit from covered improvements. The Citywide Assessment District provides the majority of funding for the City’s street lighting system and street tree program.

Sewer Maintenance (Fund 189)
This fund supports the City’s street sweeping program and maintenance of the City’s sewer system.

Auto Plaza Business Improvement District (Fund 190)
This is an assessment district supported by six of West Covina’s automobile dealers to fund the construction, maintenance and operation of a reader board adjacent to Interstate 10. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
General Plan Update (Fund 191)
This fund accounts for the General Plan and Zoning Code Update Surcharge which is designated to be used for future plan updates.

Measure W Stormwater (Fund 197)
This fund accounts for the special parcel tax on all property owners in Los Angeles County approved November 2018. This tax raises funds to pay for stormwater projects including the infrastructure and any associated programs to capture, treat and recycle rainwater.

Police Grant Funds (221)
These funds come from federal or state grants to provide funding for various public safety programs.

Charter PEG (Fund 205)
Charter Communications awarded the City a $150,000 Public Education Grant for several years. Due to changes in communications rules, no additional grant revenue is being received. The money remaining in this fund can only be used to make capital expenditures related to the City’s Public Access Channel.

OTS (Fund 207)
This fund accounts for grant revenue provided by the State of California, Office of Traffic Safety (OTS). The Traffic Records grant funds must be used to improve the reporting of traffic records, by purchasing and implementing a software solution to computerize and automate reports to the State.

Justice Programs (OJP) (Fund 208)
This fund accounts for grant revenue provided by Office of Justice Programs (OJP), within the U.S.

Department of Justice (DOJ). Currently, the only program is The Body-Worn Camera Policy and Implementation Program to Support Law Enforcement Agencies. Program grant funds must be used to for the purchase of body-worn cameras.

Art in Public Places (Fund 212)
This fund accounts for development fees paid in lieu of acquisition and installation of approved artwork in a development, with expenditures restricted to acquisition, installation, maintenance and repair of artworks at approved sites.

Homeland Security Grant (Fund 218)
This fund accounts for grant revenue provided by the U.S. Department of Homeland Security. The Homeland Security Program (SHSP) grant funds must be used to replace and update Urban Search and Rescue equipment for technical rescue. Equipment obtained must be available under the California Disaster and Civil Defense Master Mutual Aid Agreement in consultation with various agencies.

WC Community Services Foundation (Fund 220)
This fund is used to account for the activity of the West Covina Community Services Foundation, a 501(c)(3) non-profit organization.

Measure R (Fund 224)
Under Measure R, the City receives a portion of a ½ cent sales tax levied in Los Angeles County to provide transportation related projects and programs. The City uses Measure R Funds to provide a variety of __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 29 ends

Overview of City Funds
transportation services including Dial-A-Ride and the West Covina Shuttle (a fixed route system).

CDBG – Measure R (Fund 225)
This fund accounts for grant revenue provided by U.S. Department of Housing and Urban Development.

Community Development Block Grant Coronavirus (CDBG-CV) funds must be used to prevent, prepare for, and respond to the coronavirus (COVID-19).

Various Non-Federal Grants (Fund 232)
This fund accounts for various Federal, State of California, and local grants that are restricted to expenditures for specific programs and projects.

Taskforce for Regional Auto Theft Prevention (TRAP) Grant (Fund 233) A regional law enforcement taskforce known as TRAP is funded through vehicle registration fees pursuant to Vehicle Code section 9250.14 (SB-2139). The primary mission of TRAP is to combat auto thefts and spearhead major investigations related to vehicle thefts throughout the Southern California regions.

Officer Wellness & Mental Health (Fund 234)
This fund is for the Officer Wellness and Mental Health grant, which is funded by AB178, Chapter 45, Statutes of 2022, Item 5227-121-0001 and administered by the Board of State & Community Corrections.

Measure M (Fund 235)
Under Measure M, the City receives a portion of a ½ cent sales tax levied in Los Angeles County to provide transportation related projects and programs. The City uses Measure M Funds for certain capital projects or transportation projects such as street rehabilitation and reconstruction, traffic monitoring systems, and congestion management and planning.

Measure A (Fund 236)
Under Measure A, the City receives a portion of a 1.5 cent per square foot parcel tax levied in Los Angeles County to help fund new parks and maintain existing ones. The City uses Measure A Funds for certain capital projects related to parks, such as rebuilding restrooms, updating park parking lots, and the purchase of new playground equipment.

SB1 – Road Maintenance Rehab (Fund 237)
Senate Bill (SB) 1, known as the Road Repair and Accountability Act of 2017, increased per gallon fuel excise taxes, increased diesel fuel sales taxes and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years, to address basic road maintenance, rehabilitation and critical safety needs on both state highways and local streets. The City uses SB1 funding for street improvements such as residential road rehabilitation.

Law Enforcement Tobacco Grant (Fund 238)
This fund accounts for grant revenue provided by the State of California under Proposition 56. Proposition 56 is the California Healthcare, Research and Prevention Tobacco Tax Act, which raised the tax on cigarettes and other tobacco products. Law Enforcement Tobacco grant funds must be used to fund the salary, benefits, and some overtime for a new “Tobacco” School Resource Officer (SRO) position for an estimated two years.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
CA Bureau of Sate Community Corrections (Fund 239)
This fund accounts for grant revenue provided by California Board of State and Community Corrections (BSCC) which provides funds for Jailers to attend training for handling inmates with mental health issues.

Measure H (Fund 240)
This fund accounts for revenue and expenditures related to preventing and combat homelessness.

Accessibility Compliance Fund (Fund 241)
Pursuant to Government Code 4467(b), the moneys in thisfund shall be used for increased certified access specialist (CASp) training and certification within the City and to facilitate compliance with constructionrelated accessibility requirements, to include providing financial assistance to small businesses for construction of physical accessibility improvements. The highest priority shall be given to the training and retention of certified access specialists to meet the needs of the public in the City.

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.

West Covina Housing Authority (Fund 820)
Under ABX1 26, the housing functions were transferred to the West Covina Housing Authority with the adoption of Resolution No. 2012-11 by the West Covina City Council on January 17, 2012. Accordingly, all rights, powers, duties and obligations related to the housing functions have been assumed by the Housing Authority and it may enforce affordability covenants and perform related activities pursuant to the applicable provisions of the Community Redevelopment Law.

ABX1 26 provides that the non-cash housing assets and obligations of dissolving redevelopment agencies ("RDAs") do not pass to the Successor Agencies formed to wind-down each RDA, but rather to the Housing Successor Agency. As such, decisions regarding such housing assets and obligations are not subject to approval by the Oversight Board of the Successor Agency.

This fund will accumulate loan repayments from homeowners and multi-family housing developers per agreements that were put in place using low- and moderate-income housing funds of the former Redevelopment Agency. Those funds, along with repayment of the Supplemental Educational Revenue Augmentation Fund loans that were previously made by the housing fund of the former Redevelopment Agency, will be used to continue to provide low- and moderate-income housing programs in compliance with state law regarding affordable housing.

Internal Service Funds
Insurance - General and Auto Liability (Fund 361)
Funding for general/auto liability claims, uninsured losses and insurance premiums is provided through a charge on all operating departments based on prior year claims expense.

Insurance - Workers’ Compensation (Fund 363)
Funding for workers’ compensation is derived from a percentage of all salaries with different rates levied by the various employee categories.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Overview of City Funds
Fleet Management (Fund 365)
The Public Works Department operates the fleet management function for the City which oversees the repair and disposal of City vehicles and heavy equipment. Revenue for the fleet management fund is generated through charges to operating departments. Each department that operates assigned vehicles is charged based on the departmental usage of the vehicles. Fleet management costs are reflected in each department’s line-item budget.

Vehicle Replacement (Fund 367)
This fund accounts for the replacement of vehicles to update the fleet and save on maintenance costs.

Retirement Health Savings Plan (368)
This fund accounts for the set-aside lump sum benefits for retiring employees.

Other Post Employment Benefit Plan (369)
This fund accounts for benefits other than pensions for retiring employees. The fund will be used to pay down our Other Post Employment Benefits (OPEB) liability.

Enterprise Funds
Police Computer Service Group (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 program also provides these products and services to the West Covina Police Department.

Successor Agency
Successor Agency Redevelopment Obligation Retirement (Fund 810) The City’s Redevelopment Agency was dissolved as a result of ABX1 26, and the Successor Agency was subsequently created for the purpose of winding down the affairs of the former Redevelopment Agency.

The Successor Agency will receive allocations of property tax increment in amounts determined by the State Department of Finance (DOF) and deposited into the Redevelopment Property Tax Trust Fund (RPTTF) by the county. Those RPTTF allocations will then be used to pay the enforceable obligations.

Successor Agency Administration (Fund 815)
This fund is for all allowable administrative expenses of the Successor Agency, including salaries and benefits, legal costs, appraisals, consultants, and other administrative and overhead charges as well as support costs incurred for the Oversight Board.

CFD Debt Service (Fund 853)
This fund was established as part of the Fashion Plaza Expansion Project of the former Redevelopment Agency for issuing bonds to assist in the expansion of the leasable square footage and parking facilities of a regional shopping mall. The fund collects revenues from a special tax assessment on the property, as well as sales and property tax increment revenues generated on the property. Those revenues are used to service the principal and interest payments, and related costs of the outstanding bonds. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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Fund Matrix by Department
Department / Fund Matrix Admin.

City
Clerk Finance
Comm.

Dev. Police Fire
Public
Works
Comm.

Srvcs.

General Fund P P P P P P P P
State & Federal Asset Forfeitures P
Air Quality Improvement Trust P
Proposition "A" P P
Prop. "A" Discretionary/Prop. "C" P P
State Gas Tax P P
Police Donations P
Transportation Development Act P
AB 939 P
Community Development Block Grant P P P P
Surface Transportation Program Local P
LA County Park Bond P P
Waste Mgt Enforcement - Grant P
Senior Meals Program P
Used Oil Block Grant P
Inmate Welfare P
Public Safety Augmentation P
Comm. Oriented Policing Services P
Summer Meals Program P
Maintenance Districts: #1, #2, #4, #6, #7 P
Coastal Sage And Scrub CFD P
Citywide Maintenance District P
Sewer Maintenance P
Auto Plaza Improvement District P
Charter PEG P
Art In Public Places P
WC Community Services Foundation P P
Senate Bill 1 - Road Maint. Rehab P
Measure M/R P
West Covina Housing Authority P
Capital Projects P P P P P
Construction Tax P
Information Technology P
Park Acquisition P
Impact Fees (DIF) P P P P P P P P
Park Dedication Fees: "A" - "H" P
Debt Service - City P
Workers' Comp. & General Liability P
Fleet Mgmt. & Vehicle Replacement P
Police Computer Service Group P
Redevelopment Obligation Retirement P P
Successor Agency Administration P P
Community Facilities District Debt Srvc. P P
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Profile
History Of West Covina
The City of West Covina was incorporated in 1923 to prevent the City of Covina from establishing a sewage farm within the current city boundaries. The 507 residents of the area were mostly citizens who banded together to maintain local control of their land and were more interested in preventing the establishment of a sewage facility than in creating a city.

Walnut groves and orange groves continued to flourish during the following decades. The population in 1930 was 769 and blossomed to 1,549 in 1940. As a result of remarkable expansion during the post World War II building boom, West Covina became America's fastest growing city between 1950 and 1960, with the population increasing 1,000 percent from less than 5,000 to more than 50,000 citizens. The last two decades have continued to demonstrate steady growth. The number of residents expanded to a total of 109,501 as of the April 2020 Census.
1938 Today
The City of West Covina began the second half of the 20th century with exciting new developments and projects. The City Hall and Police facility were built in 1969 as the first phase of an example of a Joint Powers Authority in the County of Los Angeles. The Civic Center Joint Powers Authority, consisting of the County of Los Angeles and the City of West Covina, also completed a three-level parking structure in the Civic Center complex. The Civic Center complex includes the Los Angeles County Regional Library and the Citrus Municipal Court building and the City offices.

The first Redevelopment Agency project included a regional shopping center, the West Covina Fashion Plaza, with three major department stores and 150 shops in an air-conditioned, enclosed mall. It also included the revitalization of the older sections of the shopping center. The Fashion Plaza has provided the citizens of the San Gabriel Valley with convenient access to all shopping needs. In 1991 the mall was renovated adding a food court and additional shops, as well as the redecorating of the entire mall. The mall was renamed "The Plaza at West Covina." The Plaza opened a new 100,000 square foot wing in October 1993 featuring 50 new stores including a new Robinson's-May and interior renovation throughout The Plaza.

The Redevelopment Agency's efforts have also resulted in several major office buildings in the City, such as "The Lakes," in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza. West Covina looks forward to additional residential and commercial development during the coming decade as it continues to serve as one of the most progressive cities in the San Gabriel Valley.
1993
Plaza West Covina
Opened
1991
Mall Renovated
1969
City Hall & Police
Facility Built
1950-1960
America's Fastest
Growing City
1923
Incorporation
Looking east on
I-10/Hwy 99 in West
Covina
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Profile
Demographics
Calendar Personal Capita Annual
Year Income Personal Unemployment
(in
1,000s) Income Rate
2017 2,737,892 25,293 5.20%
2018 2,916,516 26,975 4.60%
2019 3,053,619 28,807 4.40%
2020 3,173,022 30,050 13.10%
2021 3,324,204 30,710 9.20%
2022 3,706,972 35,300 4.80%
White alone
22%
Black or African
American
4%
Asian alone
26%
Native Hawaiian or
Other Pacific Islander
0%
Hispanic or
Latino
47%
American Indian
1%
Race
107 108 108 108 108 108 108 106 110 108 105
0 20
40 60
80 100
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Population
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Profile
Top 25 Sales Tax Producers
Principal Property Taxpayers
Taxpayer Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Plaza West Covina LLC 284,283,417 1 2.03%
GREF Eastland Center LP 194,178,395 2 1.38%
Colony at the Lakes 181,955,119 3 1.30%
Walnut Ridge Apartments LP 102,134,763 4 0.73%
624 South Glendora Ave LP 97,716,000 5 0.70%
Twelve31 Partners LP 80,350,000 6 0.57%
Envision WC MB RE LLC 77,535,984 7 0.55%
TPA Nasch LLC 60,990,343 8 0.43%
Citrus Gardens Apartments LP 51,728,202 9 0.37%
Merrill Gardens at West Covina 47,674,477 10 0.34%

76 Arco
Ashley
Furniture
Homestore
Audi West
Covina Azusa Arco
Best Buy Crestview
Cadillac Daimler Trust
Envision
Chrysler Dodge
Jeep Ram of
West Covina
Envision
Toyota Of
West Covina
Floor & Decor Home Depot Macys
Mercedes
Benz Of West
Covina
Norm Reeves
Honda
Performance
Ford Plug In Auto Portos Bakery Reynolds Buick Ross
Target Tow Industries Triples
Chevron
Walmart
Supercenter Stater Bros
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Organizational Chart
Residents of
West Covina
City Clerk
(Elected)
City Council
(Elected)
City Manager
Administration
Comm. & Econ.

Development
City Clerk's
Office
Code
Enforcement Comm. Services
Comm.

Dev.

Planning
Building
Engineering
Finance
HR/Risk Mgmt.

Information
Technology
Fire Police
Public Works
Assistant City
Manager
Assistant City
Manager/PIO
City Attorney
City Treasurer
(Elected)
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Council Goals
Goal setting helps an organization determine where it is going over the next year and beyond, how the organization is going to get there, and provides a path to get there, allowing for measurable achievements that confirm if we reached our goal or not. This is the City’s “Game Plan” for the future of the City. Goal setting helps the City manage public dollars and resources prudently by anticipating community needs, problems and concerns. Goals-based planning starts with focus on the organization's vision and values, then the selection of projects and programs to meet and achieve the goals. The following goals were approved by Council in February.

I. Protect Public Safety
▪ Continue to respond to the global COVID-19 pandemic.
- Administer ongoing cooperative agreements for COVID-19 testing and vaccination. ▪ Negotiate and execute interlocal equipment agreements with Cities of La Verne, Manhattan Beach, and San Gabriel for fire emergency services.
▪ Negotiate and execute regional automatic aid agreement with City of La Verne for fire emergency services.
▪ Negotiate and execute automatic aid agreement with Los Angeles County Fire Department.
▪ With due regard to General Fund fiscal impacts, respond to California Department of Public Health (CDPH) proposed regulations. Seek provisional approval from CDPH for creation of a fiscally sustainable municipal health department. Prepare a Community Health Needs Assessment, Community Health Improvement Plan and other studies as may be required by CDPH and the Public Health Accreditation Board.

Negotiate and execute agreement(s) for Health Department laboratory services. ▪ Update the City's Emergency Management Program, including Community Emergency Response Team, Emergency Operations Center Training, Citywide CERT Training including “train the trainer”, and Disaster Preparedness and Hazard Mitigation plans.
▪ Monitor, manage, and as appropriate reduce Fire Department overtime expenditures. ▪ Acquire and implement the use of Police Department body-worn cameras. ▪ Annual Police Department review intended to increase accountability and transparency. ▪ Take delivery and place in service two (2) new rescue ambulances, two (2) new fire pumper engines, and one (1) new fire ladder truck/quint
▪ Develop specifications for and put out to bid for 2026 delivery a new fire pumper engine. ▪ Work with Animal Care & Control to conduct the bi-annual canvass for pet licenses. ▪ Continue to expand Police Officer visibility in the community by promoting neighborhood events like Coffee with a Cop.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Council Goals
II. Achieve Fiscal Sustainability & Financial Stability ▪ Maintain and monitor the City’s fiscal health.
- Continue to implement State Auditor's fiscal recovery and fiscal recovery plans. - Nurture local businesses and attract non-retail jobs. - Implement appropriate funding for landscape maintenance districts. - Review and update agreements for waste hauling, towing and facility use. - Update fee schedule.
- Install new financial management system.
▪ Maintain and promote employee relations.
▪ Update City Personnel Rules including use policies.
▪ Employ known principles of risk management to address action items identified in the City Risk Management Evaluation.
▪ Make changes in ways the City conducts its business ensuring the needs of the City are met.

III. Address Homeless Issues
▪ Secure external funding, including San Gabriel Valley Housing Trust and County homeless funds. ▪ Partner with area cities on a regional response to inadequacies of existing Measure H program. ▪ Expand Mental Health Services for unhoused.
▪ Increase contact between Department of Mental Health and the unhoused population in West Covina.
▪ Reduce single-day Homeless Count census from 112 to 50.

IV. A Creative & Active Community
▪ Expand the lineup of events by hosting and co-hosting events with community partners. ▪ Re-evaluate opportunities to weave the arts and local heritage into everyday life. ▪ Develop a master calendar of community and City-sponsored events. ▪ Review recreational opportunities at the equestrian center. __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Council Goals
V. A Well-Planned Community
▪ Continue work on a comprehensive revision of the City's General Plan and Development Code Update.
▪ Update permit software.
▪ Implement a Rental Inspection Program.
▪ Apply the new Housing Element, currently pending State Certification. ▪ Enact the new Zoning Ordinance that went into effect January 2023. ▪ Create a Park Master Plan (long range planning tool). ▪ Establish lights on Glendora Ave and Clean-up.
▪ Update and audit Landscape Maintenance Districts.

VI. Maintain Good Intergovernmental Relations
▪ Keep regulatory compliance with changing State and Federal regulations and laws (e.g., SB 1383, SB 9, CalRecycle, Department of Toxic Substances Control, State Housing and Community Development).
▪ Pursue external partnerships and grants.
▪ Reinforce the Library’s role in the community as a civic and cultural center. ▪ Actively participate in the San Gabriel Valley Council of Governments.

VII. Expand Economic Development Opportunities
▪ Continue marketing efforts to expand and retain the business base. ▪ Work with property owners to promote development in the community. ▪ Focus efforts of the City’s Community & Economic Development Division on economic recovery and tourism through continued relationship building, research, and advocacy of development. ▪ Examine the feasibility of an enhanced infrastructure financing district (EIFD), which is designed to leverage tax increment financing from the City, and potentially the County of Los Angeles. ▪ Reinforce West Covina’s brand as a great place to live, work and play in the San Gabriel Valley. ▪ Establish a Business Improvement Association on Glendora Avenue. ▪ Approve a master plan for Plaza West Covina.
▪ Consider all options for the development of City owned parcels at the former BKK site.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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City Council Goals
VIII. Enhance City Image & Effectiveness
▪ Bring all City facilities to standard.
- Identify potential projects for inclusion in the Capital Improvement Plan. ▪ Enhance recreational and park opportunities in the community. - Enhance communication to residents through published newsletters, the website, and social media.
- Prepare the annual "State of the City" report.
▪ Implement the City's Active Transportation Plan.
▪ Make the community more verdant.
▪ Implement the master plan of street trees.
▪ Assess and as necessary upgrade the City's sewer collection system. - Implement the annual street paving program.
- Remove trash bins from parks.
- Replace bus shelters.
- Install a reader board for Sportsplex on Azusa.
- Work with Caltrans to clean up freeway on/off ramps.
▪ Celebrate the City’s Centennial Birthday.
- Brand all City 2023 events as "Centennial".
- Host a centennial dinner at the Sportsplex on February 16, 2023. - Brand City vehicles with the centennial logo.
- Collaborate with the Historical Society for centennial celebrations. - Create centennial merchandise.
▪ Complete a precise plan for the new Fire Station #1.
▪ Repair Antique Fire Engine (at Hurst Ranch).
▪ Establish a weekly street sweeping schedule.
▪ Establish "No Overnight Parking” areas in the City.
▪ Prepare and approve a Traffic Signal Maintenance Agreement.

IX. An Accessible Community
▪ Establish a Disability Advisory Commission.
▪ Consider implementation of best practices as recommended by the U.S.

Conference of Mayors Disability Employment Working Group: Disability Employment Working Group.
▪ Review Best Practices in Disability Employment.
▪ Review City Development Codes and Current Practices on Accessible Urban Development: Good Practices of Accessible Urban Development.
▪ Establish and implement an ADA Transition Plan.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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FY 2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Property Tax 37,402,663 40,591,209 37,936,044 40,117,652 41,810,644 3,874,600 Sales Tax 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes 22,748,250 21,376,260 20,682,894 21,301,531 21,384,702 701,808 Charges For Service 16,284,587 15,866,233 15,888,139 16,808,238 16,774,310 886,171 From Other Agencies 23,603,856 14,777,151 12,027,431 28,673,115 11,699,071 (1,128,360) Interdept Charges 6,790,357 6,825,303 7,407,139 7,407,139 10,203,341 2,796,202 Use of Money & Property 108,869 3,742,855 3,138,340 4,069,617 4,189,100 1,008,760 Licenses & Permits 4,493,925 5,514,873 3,092,000 3,092,478 3,874,200 782,200 Fines & Forfeitures 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Sales 916,416 686,731 647,200 647,200 743,600 96,400
Other Revenues 4,988,190 2,400,498 319,430 795,856 331,800 12,370 Capital Assets 25,564 171,358 171,400 171,400 171,400 - Fees 95,585 191,244 67,100 67,100 98,100 31,000
Revenue Total 141,549,175 136,665,007 126,217,837 147,887,425 136,253,268 9,193,431 Expenditures
Salaries & Benefits 52,935,591 57,753,742 58,046,675 57,527,115 64,069,110 6,011,515 Materials & Services 41,074,721 43,137,517 40,065,410 41,357,553 45,780,258 5,714,848 Capital Assets 24,815,912 12,682,879 46,932,124 46,450,479 21,578,400 (25,353,724) Debt Service 21,220,694 21,953,236 16,899,697 16,990,400 17,184,669 284,972 Allocated Costs 4,659,919 4,582,528 5,427,402 5,461,220 7,079,031 1,651,629 Expenditures Total 144,706,837 140,109,902 167,371,308 167,786,767 155,691,468 (11,690,760) The City-Wide budget is structurally balanced, as recurring revenues equal or exceed recurring expenditures:

Recurring Revenue 141,523,611 136,493,649 126,046,437 147,716,025 136,081,868 Recurring Expenses 119,890,925 127,427,023 120,439,184 121,336,288 134,113,068 Revenue Less Exp. 21,632,686 9,066,626 5,607,253 26,379,738 1,968,800 City-Wide Summary
Property
Tax
34%
Sales Tax
19%
Other
Taxes
17%
Charges
For
Service
14%
Revenue From
Other Agencies
0%
Interdept
Charges…
Licenses
& Permits
3%
Other
Revenues
5%
City-Wide Revenue by Category
Allocated
Costs
5% Capital
Assets
14%
Materials
&
Services
29%
Salaries &
Benefits
41%
Debt
Service
11%
City-Wide Expenditures by Category
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

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FY2021-22
Actual FY2022-23
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
General Fund 82,072,396 86,732,760 84,792,279 88,225,641 91,278,595 6,486,316 Special Revenue 29,610,600 35,286,998 30,827,015 47,842,694 31,299,888 (330,627) Internal Service 5,738,768 5,749,604 6,212,929 6,640,249 9,059,141 2,807,712 Trust Funds 9,564,045 4,811,817 2,597,944 2,640,644 2,616,944 19,000 Capital Projects 13,572,190 2,501,419 540,390 1,390,998 755,100 214,710 Enterprise Fund 916,888 686,761 647,280 647,200 743,600 96,320 Debt Service 74,288 895,648 600,000 500,000 500,000 (100,000) Revenue Total 141,549,175 136,665,007 126,217,837 147,887,425 136,253,268 9,193,431 Expenditures
General Fund 63,108,584 67,896,984 67,770,056 67,368,457 76,159,361 8,378,405 Special Revenue 26,389,537 29,077,829 61,493,127 60,720,528 44,448,639 (17,044,508) Debt Service 14,946,062 15,369,469 15,453,591 15,453,591 15,872,613 419,022 Internal Service 6,799,044 17,253,826 9,943,845 11,299,643 9,211,241 (732,604) Trust Funds 15,371,228 5,792,395 1,662,850 1,783,715 8,006,810 6,343,960 Capital Projects 17,372,470 4,039,165 10,361,841 10,474,835 1,304,000 (9,057,841) Enterprise Fund 719,912 680,234 685,998 685,998 688,804 2,806 Expenditures Total 144,706,837 140,109,902 167,371,308 167,786,767 155,691,468 (11,690,760) The City-Wide budget is structurally balanced, as recurring revenues equal or exceed recurring expenditures:

Recurring Revenue 141,523,611 136,493,649 126,046,437 147,716,025 136,081,868 Recurring Expenses 119,890,925 127,427,023 120,439,184 121,336,288 134,113,068 Revenue Less Exp. 21,632,686 9,066,626 5,607,253 26,379,738 1,968,800 City-Wide Summary by Fund Type
General
Fund
67%
Special
Revenue
23%
Internal
Service
7%
Trust
Funds
2% Capital
Projects
1%
Enterprise Fund
0% Debt Service
0%
City-Wide Revenue by Fund
General
Fund
49%
Total
Special
Revenue
29%
Total
Debt
Service
10%
Internal
Service
6%
Trust
Funds
5%
Capital Projects
1%
Enterprise Fund
0%
City-Wide Expenditures by Fund
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 43 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2024
Estimated
2024-2025
Revenue
Projected
2024-2025
Expenditures
Tranfers In
(Out)
Projected
2024-2025
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2025
General Fund
110 General Fund 20,525,704 91,278,595 76,159,361 (15,117,899) 20,527,039 1,335 TOTAL GENERAL FUND 20,525,704 91,278,595 76,159,361 (15,117,899) 20,527,039 1,335 Special Revenue Funds
116 State Asset Forfeiture 190,146 6,100 100,000 (93,900) - 96,246 117 Equitable Sharing-USDOJ 2,199,756 1,999,432 84,600 (1,914,832) - 284,924 118 Equitable Sharing-Treasury 2,904,350 42,100 675,000 (632,900) - 2,271,450 119 Air Quality Improvement Trust 284,525 144,100 226,400 (82,300) - 202,225 120 Prop A Discretionary 671,881 100,000 - (100,000) - 571,881 121 Prop A 491,727 3,062,260 2,325,935 736,325 - 1,228,052 122 Prop C 2,246,143 2,578,170 2,645,532 (67,362) - 2,178,781 124 Gasoline Tax 384,590 3,003,227 3,384,327 (381,100) - 3,490 127 Police Donations 20,516 2,100 5,859 (3,759) - 16,757 128 Transportation Development Act 42,784 70,900 70,000 900 - 43,684 129 AB 939 1,360,866 319,000 138,157 180,843 - 1,541,709 131 Community Dev. Block Grant 62,310 268,989 268,989 - 62,310 - 143 LA County Park Bond 19,000 - 19,000 - - -
144 Highway Safety Improvement Program 800,000 - 800,000 - - - 145 Waste Mgt Enforcement Grant 918,719 40,219 115,700 (75,481) - 843,238 146 Senior Meals Program 111,392 324,100 322,708 1,392 - 112,784 149 Used Oil Block Grant 10,200 16,600 14,710 1,890 - 12,090 150 Inmate Welfare 7,323 200 4,000 (3,800) - 3,523
153 Public Safety Augmentation 314,386 872,400 1,151,855 (279,455) - 34,931 155 COPS/SLESF 29,600 293,200 290,583 2,617 - 32,217
158 CRV Recycling Grant 117,544 28,000 - (28,000) - 89,544 181 Maintenance District #1 3,750,552 776,400 711,890 64,510 - 3,815,062 182 Maintenance District #2 792,709 276,700 514,678 (237,978) - 554,731 183 WC CSS CFD 495,194 111,100 147,560 (36,460) - 458,734 184 Maintenance District #4 1,396,083 1,064,720 1,479,669 (414,949) - 981,134 186 Maintenance District #6 141,806 166,100 303,124 (137,024) - 4,782 187 Maintenance District #7 297,831 187,080 348,144 (161,064) - 136,767 188 Citywide Maintenance District 210,862 1,918,310 2,053,439 (135,129) - 75,733 189 Sewer Maintenance 9,057,669 4,533,100 4,378,338 154,762 - 9,212,431 190 Auto Plaza Improvement District 33,537 105,390 64,920 40,470 - 74,007 191 General Plan Update 945,509 302,500 1,000,000 (697,500) - 248,009 197 Measure W Stormwater 4,378,012 1,469,800 4,675,000 (3,205,200) - 1,172,812 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 44 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2024
Estimated
2024-2025
Revenue
Projected
2024-2025
Expenditures
Tranfers In
(Out)
Projected
2024-2025
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2025
205 PEG Fund 13,465 300 - 300 - 13,765
207 OTS Grants 12,603 - - - 12,603 -
212 Art In Public Places 520,302 15,300 - 15,300 - 535,602 220 WC Community Svcs Foundation 8,858 110,000 113,300 (3,300) - 5,558 221 Police Private Grants 1,000 - - - 1,000 -
224 Measure R 4,386,733 1,997,382 1,502,174 495,208 - 4,881,941 233 Taskforce Reg. Autotheft Prev. 2,406 215,000 193,688 21,312 - 23,718 234 Officer Wellness & Mental Health 66,934 1,400 65,294 (63,894) - 3,040 235 Measure M 4,906,395 2,307,500 5,020,810 (2,713,310) - 2,193,085 236 Measure A 340,000 - 340,000 - - -
237 SB1 - Road Maintenance Rehab 1,453,696 2,924,101 4,875,000 567,200 (1,383,699) 69,997 238 Law Enforcement Tobacco Grant 15,193 - - - 15,193 - 240 Measure H 29,223 600 7,500 (6,900) - 22,323
241 CASP Certification & Training 154,315 25,440 - 25,440 - 179,755 242 Sportsplex 159,000 - 912,068 753,068 - -
820 Successor Housing Agency 22,298,363 174,000 884,456 (710,456) - 21,587,907 TOTAL SPECIAL REVENUE FUNDS 67,738,009 31,128,488 44,277,239 1,320,268 (11,828,483) 55,909,526 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 45 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2024
Estimated
2024-2025
Revenue
Projected
2024-2025
Expenditures
Tranfers In
(Out)
Projected
2024-2025
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2025
Capital Project Funds
160 Capital Projects 1,679,270 1,105,000 - (1,105,000) - 574,270 161 Construction Tax 226,773 6,200 20,000 (13,800) - 212,973 162 Information Technology 418,614 408,100 179,000 229,100 - 647,714 164 Police Facilities Dev. Impact Fees 136,845 44,300 - 44,300 - 181,145 165 Fire Facilities Dev. Impact Fees 124,598 53,500 - 53,500 - 178,098 166 Park Facilities Dev. Impact Fees 142,581 75,000 - 75,000 - 217,581 167 Admin. Facilities Dev. Impact Fees 49,400 7,900 - 7,900 - 57,300 168 PW Facilities Dev. Impact Fees 23,084 3,700 - 3,700 - 26,784 169 Park Acquisition Fund 2,134,429 47,400 - 47,400 - 2,181,829 170 PDF A - Del Norte 97,129 29,500 - 29,500 - 126,629
171 PDF B Palm View 1,652,313 35,000 - 35,000 - 1,687,313 172 PDF C Orangewood - Ca 1,356,688 35,300 - 35,300 - 1,391,988 174 PDF E - Cortez 47,807 700 - 700 - 48,507
175 PDF F - Gal-Wogrov-Cam 172,301 6,800 - 6,800 - 179,101 177 PDF H - Friendship 4,588 1,700 - 1,700 - 6,288
180 Future Street Improvements 428,172 171,400 171,400 - 428,172 - TOTAL CAPITAL PROJECT FUNDS 8,694,592 926,500 1,475,400 (548,900) - 8,145,692 Debt Service Fund
300 Debt Service - City 20,547,441 15,872,613 500,000 15,372,613 20,547,441 - TOTAL DEBT SERVICE FUND 20,547,441 15,872,613 500,000 15,372,613 20,547,441 - Internal Service Funds
361 Self Insurance General/Auto Liab (829,629) 4,469,600 4,469,600 - (829,629) - 363 Self-Insurance Workers' Comp (5,491,477) 2,772,200 2,772,200 - (5,491,477) - 365 Fleet Management 311,758 1,765,341 1,765,341 - 311,758 - 367 Vehicle Replacement 381,332 6,000 200,000 (194,000) - 187,332 368 Retirement Health Savings Plan 350,758 4100 7,500 0 3,400 354,158 369 Other Post Employment Benefits 1,823,700 38,500 - 38,500 - 1,862,200 TOTAL INTERNAL SERVICE FUNDS (3,453,558) 9,059,141 9,211,241 (152,100) - (3,605,658) __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 46 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2024
Estimated
2024-2025
Revenue
Projected
2024-2025
Expenditures
Tranfers In
(Out)
Projected
2024-2025
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2025
Enterprise Funds
375 Police Enterprise 109,675 743,600 688,804 54,796 - 164,471 TOTAL ENTERPRISE FUND 109,675 743,600 688,804 54,796 - 164,471 Private Purpose Trust Funds
810 Redevelopment Obligation Ret. 3,498,488 2,616,944 1,427,856 (1,679,295) (490,207) 3,008,281 811 Successor Agency Merged DS (5,580,092) - - - (5,580,092) - 815 Successor Agency Admin. - 104,313 - 104,313 - -
853 CFD Debt Service 6,474,641 6,474,641 - (6,474,641) - - TOTAL PRIVATE PURPOSE TRUST FUNDS 4,393,037 2,616,944 8,006,810 (1,574,982) (6,964,848) (2,571,811) GRAND TOTAL 118,554,900 136,253,268 155,691,468 (19,438,200) - 99,116,700 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 47 ends

Fund Balance
FYE'19 FYE'20 FYE'21 Actual FYE'22 Actual FYE'23 Actual FYE'24 Est. FYE'25 Audited
6/30/2019
Audited
6/30/2020
Audited
6/30/2021
Audited
6/30/2022
Audited
6/30/2023
Estimated
6/30/2024
Projected
06/30/2025
General Fund
Nonspendable 8,976,583 7,086,958 4,009,651 3,380,136 3,358,665 3,007,802 3,007,802 Restricted - 7,650 9,440 8,287 16,069 18,000 21,000
Assigned 320,200 - - - - - -
Unassigned 9,884,913 12,580,716 21,468,986 20,770,457 17,654,008 17,499,902 17,498,237 Total General Fund 19,181,696 19,675,324 25,488,077 24,158,880 21,028,742 20,525,704 20,527,039 Percent Change -9% 3% 30% -5% -13% -2% 0%
All other governmental funds:

Nonspendable 99,167 82,420 - 11,989 90,943 - -
Restricted 57,840,755 64,044,695 92,198,163 100,732,082 107,980,761 89,362,193 84,028,389 Assigned 1,107,138 1,786,815 9,687,492 6,601,977 7,617,849 1,679,270 574,270 Unassigned (692,305) (1,158,958) (228,169) (164,865) (22,661) - - Total Other Funds 58,354,755 64,754,972 101,657,486 107,181,183 115,666,892 91,041,463 84,602,659 Percent Change 13% 11% 57% 5% 8% -21% -7%
Grand Total 77,536,451 84,430,296 127,145,563 131,340,063 136,695,634 111,567,167 105,129,698 Percent Change 6% 9% 51% 3% 4% -18% -6%
-
-
-
-
General Fund Fund Balance is expected to
remain consistent next fiscal year.

The City will be utilizing special revenue
and CIP funds to invest in its infrastucture
and facilities bringing down fund balances
in other governmental funds.

The City's Fund Balance policy requires a minimum unassigned fund balance of at least 17% of General Fund operating expenditures. At the end of the fiscal year, the annual excess revenue over expenditures in the General Fund is allocated as follows: 25% stays in General Fund reserves, 50% is transferred to the Capital Projects Fund, and 25% goes to pay down Other Post Employment Benefits (OPEB) liability. If the reserve level ever falls below 17%, the City must amend this policy with a plan to rebuild it within three years.

The term “Fund Balance” is used to describe the difference between assets (what is owned) and liabilities (what is owed) reported within a fund. The City has five components to its fund balance:

Summary of Major
The City estimated 1.7M for a CalPERS
Unfunded Accrued Liability (AUL) for FY24-
25 The City received $19M in federal ARPA
funds between FYE 2021 and FYE 2022.

Nonspendable
Inherently
nonspendable
Restricted
Externally
enforceable
limitations on
use
Committed
Self-imposed
limitations on
use
Assigned
Limitation
resulting from
intended use
Unassigned
Residual net
resources
$19 $20
$25 $24
$21 $21 $21
-
5 10
15 20
25 30
FYE'19
Actual
FYE'20
Actual
FYE'21
Actual
FYE'22
Actual
FYE'23
Actual
FYE'24
Est.

FYE'25
Proposed Millions
General Fund Fund Balance
Nonspendable Restricted Assigned Unassigned
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 48 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2023
Estimated
Fund Balance
6/30/2024
Projected
Fund Balance
06/30/2025
Projected Change
in Fund Balance
6/30/2025
General Fund
110 General Fund 21,028,742 20,525,704 20,527,039 1,335 TOTAL GENERAL FUND 21,028,742 20,525,704 20,527,039 1,335 Special Revenue Funds
116 State Asset Forfeiture 284,346 190,146 96,246 (93,900) 117 Equitable Sharing-USDOJ 4,136,743 2,199,756 284,924 (1,914,832) 118 Equitable Sharing-Treasury 1,213,557 2,904,350 2,271,450 (632,900) 119 Air Quality Improvement Trust 367,225 284,525 202,225 (82,300) 120 Prop A Discretionary 440,151 671,881 571,881 (100,000) 121 Prop A 426,761 491,727 1,228,052 736,325
122 Prop C 2,326,961 2,246,143 2,178,781 (67,362)
124 Gasoline Tax 872,786 384,590 3,490 (381,100)
127 Police Donations 30,296 20,516 16,757 (3,759)
128 Transportation Development Act 41,884 42,784 43,684 900 129 AB 939 1,226,507 1,360,866 1,541,709 180,843
131 Community Dev. Block Grant 2,456 62,310 62,310 -
143 LA County Park Bond - - - -
144 Highway Safety Improvement Program (110,240) - - -
145 Waste Mgt Enforcement Grant 946,400 918,719 843,238 (75,481) 146 Senior Meals Program 109,237 111,392 112,784 1,392
149 Used Oil Block Grant 8,310 10,200 12,090 1,890
150 Inmate Welfare 8,623 7,323 3,523 (3,800)
153 Public Safety Augmentation 561,167 314,386 34,931 (279,455) 155 COPS/SLESF - 29,600 32,217 2,617
158 CRV Recycling Grant 117,544 117,544 89,544 (28,000) 181 Maintenance District #1 3,886,661 3,750,552 3,815,062 64,510 182 Maintenance District #2 1,052,129 792,709 554,731 (237,978) 183 WC CSS CFD 489,644 495,194 458,734 (36,460)
184 Maintenance District #4 2,042,261 1,396,083 981,134 (414,949) 186 Maintenance District #6 311,086 141,806 4,782 (137,024) 187 Maintenance District #7 442,156 297,831 136,767 (161,064) __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 49 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2023
Estimated
Fund Balance
6/30/2024
Projected
Fund Balance
06/30/2025
Projected Change
in Fund Balance
6/30/2025
188 Citywide Maintenance District 704,486 210,862 75,733 (135,129) 189 Sewer Maintenance 11,136,916 9,057,669 9,212,431 154,762 190 Auto Plaza Improvement District (6,023) 33,537 74,007 40,470 191 General Plan Update 1,143,009 945,509 248,009 (697,500) 197 Measure W Stormwater 4,621,759 4,378,012 1,172,812 (3,205,200) 205 PEG Fund 13,165 13,465 13,765 300
207 OTS Grants (6,197) 12,603 12,603 -
212 Art In Public Places 705,700 520,302 535,602 15,300 220 WC Community Svcs Foundation 76,662 8,858 5,558 (3,300) 221 Police Private Grants 1,000 1,000 1,000 -
224 Measure R 4,626,288 4,386,733 4,881,941 495,208
233 Taskforce Reg. Autotheft Prev. 6,305 2,406 23,718 21,312 234 Officer Wellness & Mental Health 65,634 66,934 3,040 (63,894) 235 Measure M 7,192,530 4,906,395 2,193,085 (2,713,310) 236 Measure A - - - -
237 SB1 - Road Maintenance Rehab 4,579,618 1,453,696 69,997 (1,383,699) 238 Law Enforcement Tobacco Grant - 15,193 15,193 -
240 Measure H 7,719 29,223 22,323 (6,900)
241 CASP Certification & Training 129,205 154,315 179,755 25,440 242 Sportsplex - - - -
820 Successor Housing Agency 23,191,204 22,298,363 21,587,907 (710,456) TOTAL SPECIAL REVENUE FUNDS 79,423,631 67,738,009 55,909,526 (11,828,483) Capital Project Funds
160 Capital Projects 7,617,850 1,679,270 574,270 (1,105,000) 161 Construction Tax 240,773 226,773 212,973 (13,800)
162 Information Technology 448,495 418,614 647,714 229,100 164 Police Facilities Dev. Impact Fees 131,390 136,845 181,145 44,300 165 Fire Facilities Dev. Impact Fees 167,398 124,598 178,098 53,500 166 Park Facilities Dev. Impact Fees 268,764 142,581 217,581 75,000 167 Admin. Facilities Dev. Impact Fees 45,300 49,400 57,300 7,900 168 PW Facilities Dev. Impact Fees 21,284 23,084 26,784 3,700 169 Park Acquisition Fund 2,194,124 2,134,429 2,181,829 47,400 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 50 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2023
Estimated
Fund Balance
6/30/2024
Projected
Fund Balance
06/30/2025
Projected Change
in Fund Balance
6/30/2025
170 PDF A - Del Norte 1,369,029 97,129 126,629 29,500
171 PDF B Palm View 1,619,013 1,652,313 1,687,313 35,000 172 PDF C Orangewood - Ca 1,271,813 1,356,688 1,391,988 35,300 174 PDF E - Cortez 59,635 47,807 48,507 700
175 PDF F - Gal-Wogrov-Cam 315,801 172,301 179,101 6,800 177 PDF H - Friendship 77,988 4,588 6,288 1,700
180 Future Street Improvements 428,172 428,172 428,172 - TOTAL CAPITAL PROJECT FUNDS 16,276,829 8,694,592 8,145,692 (548,900) Debt Service Fund
300 Debt Service - City 20,054,740 20,547,441 20,547,441 - TOTAL DEBT SERVICE FUND 20,054,740 20,547,441 20,547,441 - Internal Service Funds
361 Self Insurance General/Auto Liab (829,629) (829,629) (829,629) - 363 Self-Insurance Workers' Comp (5,491,477) (5,491,477) (5,491,477) - 365 Fleet Management 225,339 311,758 311,758 -
367 Vehicle Replacement 446,223 381,332 187,332 (194,000) 368 Retirement Health Savings Plan 347,658 350,758 354,158 3,400 369 Other Post Employment Benefits 1,787,000 1,823,700 1,862,200 38,500 TOTAL INTERNAL SERVICE FUNDS (3,514,886) (3,453,558) (3,605,658) (152,100) Enterprise Funds
375 Police Enterprise 148,473 109,675 164,471 54,796
TOTAL ENTERPRISE FUND 148,473 109,675 164,471 54,796
Private Purpose Trust Funds
810 Redevelopment Obligation Ret. 4,203,406 3,498,488 3,008,281 (490,207) 815 Successor Agency Admin. - - - -
853 CFD Debt Service 6,501,706 6,474,641 (6,474,641) -
TOTAL PRIVATE PURPOSE TRUST FUNDS 10,705,112 9,973,129 3,008,281 (6,964,848) GRAND TOTAL 144,122,641 124,134,992 104,696,792 (19,438,200) __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 51 ends

Transfer Summary
Fund
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Transfer In
110 140,498 133,904 159,762 157,032 145,687 (14,075)
140 28,146 - - - - -
145 15,729 - - - - -
158 26,365 - - - - -
160 4,725,000 2,525,000 1,501,600 1,501,600 (1,501,600) - 173 316,000 33,375 - - - -
177 75,000 - - - - -
184 9,000 - - - - -
207 14,234 - - - - -
218 - 1 - - - -
237 567,148 567,200 567,200 567,200 567,200 -
240 33,000 - - - - -
242 754,253 556,877 617,763 713,320 753,068 135,305
300 14,919,857 14,581,097 15,446,292 15,446,292 15,372,613 (73,679) 361 1,148,243 2,422,115 1,725,000 2,472,197 (1,725,000) - 363 250,000 - 1,000,000 1,873,125 (1,000,000) -
367 142,342 714,000 375,400 375,400 (375,400) -
810 71,131 - - - - -
815 247,880 250,000 250,000 250,000 250,000 -
853 476,063 - - - - -
118 42,225 - - - - -
369 1,787,000 - - - - -
Transfer In Total 23,521,664 24,051,019 21,643,017 23,356,166 17,088,568 (4,554,449) Transfer Out
110 20,433,507 22,099,818 19,801,375 21,517,254 15,263,586 (4,537,789) 128 - 10 - - - -
139 31 - - - - -
149 26,365 - - - - -
170 33,375 - - - - -
171 75,000 - - - - -
172 316,000 - - - - -
179 5,786 - - - - -
182 9,000 - - - - -
237 28,146 - - - - -
239 - 1 - - - -
363 448,243 - - - - -
810 2,113,270 1,682,557 1,681,880 1,681,880 1,679,295 (2,585) 815 134,681 133,893 159,762 157,032 145,687 (14,075)
820 33,000 - - - - -
Transfer Out Total 23,521,664 24,051,019 21,643,017 23,356,166 17,088,568 (4,554,449) Net Transfers - - - - -
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 52 ends

Transfer Summary
Fund
FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Summary of Transfers
General Fund Transfers
Fund Transfer To Transfer From Net Transfers
Debt Service (300) 13,943,318 (13,943,318)
SB1 (237) 567,200 (567,200)
CIP (160) - -
Sportsplex (242) 753,068 (753,068)
Successor Agency (815) 145,687 145,687
Total 15,263,586 145,687 (15,117,899)
In FY2024-25, the General Fund transfers out $13,943,318 to the Debt Service Fund 300 for debt service payments and $567,200 to Fund 237 as the City's Measure of Effort (MOE) for SB1 - Road Maintenance Rehab.

The Successor Agency transfers out administration costs from Fund 815 (estimated to be $145,687) to the General Fund and transfers $1,429,295 to the Debt Service Fund from Fund 810 for the 2006 Bonds Debt Service payments.

Additionally, a transfer of $753,068 from the General Fund to the Sportsplex Fund 242 has been included as a placeholder.
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 53 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Property Tax 30,687,088 33,401,085 32,710,100 34,891,708 36,219,000 3,508,900 Sales Tax 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes 9,773,175 10,074,971 9,758,500 10,377,137 10,740,400 981,900 Charges For Service 8,512,897 7,879,356 7,792,729 8,497,999 8,788,500 995,771 Licenses & Permits 4,476,096 5,514,665 3,091,800 3,092,278 3,874,200 782,400 From Other Agencies 4,406,517 2,895,485 3,394,700 3,506,194 3,443,795 49,095 Use of Money & Property (1,156,959) 1,123,527 1,813,500 1,837,100 1,900,000 86,500 Interdept Charges 1,188,500 1,188,500 1,196,200 1,196,200 1,196,200 - Fines & Forfeitures 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Other Revenues 94,169 133,879 194,030 90,925 143,500 (50,530) Revenue Total 82,072,396 86,732,760 84,792,279 88,225,641 91,278,595 6,486,316 Expenditures
Salaries & Benefits 47,715,617 51,507,762 52,043,694 51,526,892 58,129,564 6,074,970 Materials & Services 12,792,108 13,846,319 12,487,920 12,586,505 13,476,010 988,090 Allocated Costs 2,600,859 2,542,903 3,238,442 3,255,060 4,553,787 1,315,345 Expenditures Total 63,108,584 67,896,984 67,770,056 67,368,457 76,159,361 8,378,405 Revenues Less Expenditures 18,963,812 18,835,776 17,022,223 20,857,184 15,119,234 Net Transfers (20,293,009) (21,965,914) (19,641,613) (21,360,222) (15,117,899) Net Change in Fund Balance (1,329,197) (3,130,138) (2,619,390) (503,038) 1,335 Beginning Fund Balance 25,488,077 24,158,880 21,028,742 21,028,742 20,525,704 Ending Fund Balance 24,158,880 21,028,742 18,409,352 20,525,704 20,527,039 Reserve Requirement (17%) 14,178,271 15,276,693 14,859,984 15,083,875 15,517,134 General Fund Summary
Salaries &
Benefits
76%
Materials &
Services
18%
Allocated Costs
6%

GENERAL FUND EXPENDITURES BY CATEGORY
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 54 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Revenue
Community Development 8,364,012 7,521,712 4,975,750 4,969,478 6,346,300 1,370,550 Finance 99,353 93,429 102,400 102,425 87,400 (15,000)
Fire 5,005,525 4,755,737 4,843,200 5,541,063 5,331,500 488,300 General Revenue 66,233,023 71,503,669 72,196,500 74,803,146 76,692,095 4,495,595 Police 1,491,073 1,783,320 1,619,600 1,775,100 1,745,600 126,000 Public Works 879,410 1,074,893 1,054,829 1,034,429 1,075,700 20,871 Revenue Total 82,072,396 86,732,760 84,792,279 88,225,641 91,278,595 6,486,316 Expenditures
Administration 1,331,599 1,800,257 1,609,730 1,684,274 1,785,995 176,265 City Clerk 399,084 621,338 376,097 376,771 710,614 334,517 Code Enforcement 457,670 828,666 946,013 995,888 1,065,105 108,292 Community Development 3,541,763 3,681,865 2,447,402 2,431,208 2,755,269 307,867 Community Services 1,315,394 1,865,863 2,033,423 2,176,679 2,389,730 356,207 Finance 4,413,443 3,923,739 4,498,773 4,514,243 4,566,343 67,570 Fire 20,830,976 21,711,806 21,439,128 20,478,729 23,953,222 2,514,094 Police 27,724,872 30,125,902 30,972,222 31,203,378 34,048,448 3,076,226 Public Works 3,093,783 3,337,548 3,447,268 3,507,287 4,884,635 1,437,367 Expenditures Total 63,108,584 67,896,984 67,770,056 67,368,457 76,159,361 8,378,405 Revenues Less Expenditures 18,963,812 18,835,776 17,022,223 20,857,184 15,119,234 Net Transfers (20,293,009) (21,965,914) (19,641,613) (21,360,222) (15,117,899) Net Change in Fund Balance (1,329,197) (3,130,138) (2,619,390) (503,038) 1,335 Beginning Fund Balance 25,488,077 24,158,880 21,028,742 21,028,742 20,525,704 Ending Fund Balance 24,158,880 21,028,742 18,409,352 20,525,704 20,527,039 Reserve Requirement (17%) 14,178,271 15,276,693 14,859,984 15,083,875 15,517,134 General Fund Summary by Department
Administration
2%
City Clerk
1%
Code Enforcement
1%
Community Development
4%
Community Services
3%
Finance
6%
Fire
32%
Police
45%
Public Works
6%

GENERAL FUND EXPENDITURES BY DEPARTMENT
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 55 ends

FY 2020-21
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Property Tax 30,687,088 33,401,085 32,710,100 34,891,708 36,219,000 3,508,900 Sales Tax 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes 9,773,175 10,074,971 9,758,500 10,377,137 10,740,400 981,900 Charges For Service 8,512,897 7,879,356 7,792,729 8,497,999 8,788,500 995,771 Licenses & Permits 4,476,096 5,514,665 3,091,800 3,092,278 3,874,200 782,400 From Other Agencies 4,406,517 2,895,485 3,394,700 3,506,194 3,443,795 49,095 Use of Money & Property (1,156,959) 1,123,527 1,813,500 1,837,100 1,900,000 86,500 Interdept Charges 1,188,500 1,188,500 1,196,200 1,196,200 1,196,200 - Fines & Forfeitures 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Other Revenues 94,169 133,879 194,030 90,925 143,500 (50,530) Grand Total 82,072,396 86,732,760 84,792,279 88,225,641 91,278,595 6,486,316 Revenue Sources
General Fund Revenue Summary
The City’s major revenue sources include property, sales and other taxes (80% combined). Each of these revenue sources are driven by the growth of the local economy and the City’s population. This is also true of several of the City’s other revenue sources including fees and charges for service, and licenses and permits. ▪ Sales tax has decreased slightly by 0.4%. While sales tax has spiked in prior years, HdL (revenue consultant) estimates it will flatten in the upcoming years.
▪ Other Taxes increased consistent with the Long-Range Financial Forecast: Franchise Tax increased by 3%, Transient Occupancy Tax increased by 3%, and Business License Tax increased by 3%. ▪ Based on anticipated tax rolls, Property tax increased by 3.8% over the end of year estimate.

Property Tax
41%
Sales Tax
27%
Other Taxes
12%
Charges For Service
10%
Revenue From Other
Agencies
0%
Licenses & Permits
5%
Other Revenues
5%
General Fund Revenue
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 56 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Property Tax
Current Year Secured 13,800,266 15,229,418 16,198,000 15,919,100 16,800,000 602,000 Suppl In Lieu of VLF 13,272,333 14,158,076 14,512,100 14,881,608 15,328,000 815,900 Residual/Excess Tax Increment 3,614,489 4,013,591 2,000,000 4,091,000 4,091,000 2,091,000 Property Tax Total 30,687,088 33,401,085 32,710,100 34,891,708 36,219,000 3,508,900 Sales Tax
Sales & Use Taxes 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Sales Tax Total 23,180,793 23,331,254 23,750,000 23,750,000 23,837,000 87,000 Other Taxes
Franchise 4,806,347 5,237,769 4,815,500 5,394,902 5,556,700 741,200 Business License Tax 2,544,820 2,603,717 2,652,000 2,681,829 2,762,000 110,000 Transient Occupancy Tax 1,756,473 1,809,656 1,809,500 1,863,946 1,919,900 110,400 Documentary Transfer Tax 661,589 421,063 477,400 433,695 499,000 21,600 Contractors License Tax 3,946 2,766 4,100 2,766 2,800 (1,300) Other Taxes Total 9,773,175 10,074,971 9,758,500 10,377,137 10,740,400 981,900 Charges For Service
Ambulance Services 2,541,910 3,107,786 3,250,000 3,918,472 3,513,100 263,100 Plan Check Fees 2,851,745 1,267,848 1,208,500 1,208,500 1,662,800 454,300 Ground Emerg. Med. Trans. 4,768 463,429 594,000 594,000 594,000 - Planning Filing Fees 508,281 441,043 374,300 374,300 429,500 55,200 Fire Plan Check/Insp. Fees 372,412 442,529 233,100 233,100 362,700 129,600 EMS Treatment Fee 281,340 210,867 258,300 258,300 306,900 48,600 Facility Rental - Ccc 259,990 236,067 234,445 234,445 234,400 (45) Towing Franchise 264,685 228,580 276,700 276,700 220,000 (56,700) Plan Review Surcharge 352,667 92,211 182,300 182,300 203,800 21,500 Afterschool Programs-Vine 158,068 170,359 165,634 165,634 165,600 (34) Recreation Classes/Programs - Ccc 35,833 219,736 145,916 145,916 145,900 (16) Facility Rentals 166,638 50,920 109,219 109,219 109,200 (19) Afterschool Program-Wescove - 150 107,900 107,900 107,900 - Waste Management Fees 85,836 92,188 46,500 46,500 77,400 30,900 Police Reimbursements 67,957 110,394 75,000 75,000 70,500 (4,500) Jail Booking 68,713 72,310 69,200 69,200 67,900 (1,300) Service Fee - Credit/Debit Cards 71,063 69,947 71,100 71,100 63,700 (7,400) Fire Seminar 60,301 73,555 36,747 - 56,900 56,900
Permit Document Retention Fee 42,754 62,270 26,200 26,200 40,700 14,500 Park Shelter Rentals 41,214 36,568 34,457 34,457 34,500 43 Senior Center Rentals 34,982 38,558 33,541 33,541 33,500 (41) Foreclosure Registration 31,125 25,125 21,400 21,400 33,300 11,900 General Fund Revenue
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 57 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
General Fund Revenue
Admin Cost Recovery Fee 31,433 38,968 34,747 34,747 31,600 (3,147) Facility Rentals - Shadow Oak 22,480 50,509 28,940 28,940 28,900 (40) Fire Emergency Incident Billing Fee 12,022 41,274 44,300 44,300 25,700 (18,600) After Hours Plan Check 30,950 24,312 17,000 17,000 25,100 8,100 Senior Excursions 9,481 27,180 20,791 20,791 20,800 9
Business License Processing Fee 24,655 19,157 27,900 27,900 20,300 (7,600) Rental - Roller Hockey 13,580 42,876 19,840 19,840 19,800 (40) Passport Services 8,889 5,670 14,000 14,000 14,000 -
Paid Parking - Civic Center 14,690 15,461 11,400 11,400 12,900 1,500 Senior Classes 9,522 15,723 11,011 11,011 11,000 (11)
Misc Reimbursement 3,048 18,017 7,400 7,400 9,400 2,000 Expedited Plan Check 12,789 10,700 - 10,700 8,100 (2,600) Special Events - 180 6,100 6,100 6,100 -
Graffiti Restitution 2,720 5,058 5,900 5,900 4,900 (1,000) Search Fees 4,465 4,214 4,000 4,000 4,200 200
Sports - Ccc 2,778 7,637 4,139 4,139 4,100 (39)
Fire Incident Report Copying 2,320 2,680 1,900 1,900 2,100 200 Street Address Change Review 1,497 2,078 1,400 1,400 1,600 200 Senior Donations 165 1,529 883 883 900 17
Palm View After School Program 24 1,500 898 898 900 2
Recreation Classes 1,309 28,317 655 655 700 45
Returned Check Fee 775 952 600 600 700 100
Clearance Letter & Process 240 160 100 100 200 100
Sportsplex Rentals 534 200 - 200 200 -
Photocopying 5 205 200 200 100 (100)
Afterschool Program-Orangewood 26 - 13 13 - (13)
Misc Reimbursements 218 13,259 - 1 - -
Fire Life Safety Inspections - - - 50 - -
Charges For Service Total 8,512,897 7,879,356 7,792,729 8,497,999 8,788,500 995,771 Licenses & Permits
Building Permits 1,981,800 3,472,010 1,691,900 1,691,900 2,051,400 359,500 Electrical Permits 202,108 592,065 269,700 269,700 306,800 37,100 Encroachment 396,704 256,597 149,200 149,200 230,300 81,100 Street Obstruction 370,714 180,218 158,400 158,400 227,400 69,000 Plumbing Permits 158,611 348,264 159,000 159,000 198,000 39,000 Onsite Improvements 152,603 53,097 135,800 135,800 160,700 24,900 Street Improvements 270,349 161,891 113,000 113,000 151,400 38,400 Other Licenses & Permits 362,935 107,301 81,400 81,400 141,500 60,100 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 58 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
General Fund Revenue
Grading 168,102 80,348 72,800 72,800 102,600 29,800
Animal Control 64,529 78,915 59,500 59,500 90,000 30,500 Walls (Retaining, Overheight) 140,601 48,523 48,600 48,600 66,000 17,400 Fire Permit Fees 66,065 68,545 65,200 65,200 60,600 (4,600) Excavation 86,438 36,419 49,900 49,900 54,200 4,300
Driveway Approach 18,080 18,032 9,100 9,100 12,900 3,800 A.C. & P.C.C. Paving 16,793 6,960 11,300 11,300 8,800 (2,500) Miscellaneous Sewer Facilities 16,646 2,916 6,100 6,100 6,700 600 Sidewalk 2,128 2,201 7,500 7,500 3,300 (4,200)
Curb Drains, All Other Insp 890 363 3,100 3,100 1,200 (1,900) Sewer Maintenance - 300 - 300 400 100
Curb & Gutter - - 478 - - -
Licenses & Permits Total 4,476,096 5,514,665 3,091,800 3,092,278 3,874,200 782,400 From Other Agencies
Prop A Exchange 2,100,000 1,875,000 2,346,000 2,346,000 2,275,995 (70,005) Mutual Aid Cost Reimbursement 1,580,715 247,425 321,100 321,100 321,000 (100) School Resource Officer Reimb 273,107 275,202 300,000 300,000 300,000 - St Motor Vehicle Lieu Tx 122,570 112,350 122,600 203,100 209,200 86,600 Crossing Guard Aid 123,521 132,680 130,000 130,000 130,000 - State Mandated Revenue 97,325 114,633 55,000 113,200 81,600 26,600 Fire State Mandated Inspect 64,170 81,890 70,000 45,300 75,200 5,200 P.O.S.T. 45,109 56,305 50,000 30,100 50,800 800
State Grant - - 17,394 - - -
From Other Agencies Total 4,406,517 2,895,485 3,394,700 3,506,194 3,443,795 49,095 Use of Money & Property
Interest Income 161,901 976,490 1,056,400 1,080,000 1,134,000 77,600 Rent 701,693 569,431 757,100 757,100 766,000 8,900
Fair Value Adjustment (2,020,553) (422,394) - - - -
Use of Money & Property Total (1,156,959) 1,123,527 1,813,500 1,837,100 1,900,000 86,500 Interdept Charges
Overhead 1,188,500 1,188,500 1,196,200 1,196,200 1,196,200 - Interdept Charges Total 1,188,500 1,188,500 1,196,200 1,196,200 1,196,200 - Fines & Forfeitures
Parking Code Fines 270,536 403,943 294,400 408,500 413,000 118,600 Vehicle Code Fines 129,056 280,571 266,000 286,700 289,600 23,600 Late Payment Penalty 219,429 244,359 290,400 106,000 190,000 (100,400) Admin Citation-Comm Enhancement 120,527 147,584 117,420 112,200 122,600 5,180 Vehicle Impound Fees 74,196 49,730 38,500 50,800 60,000 21,500 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 59 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
General Fund Revenue
Collection Agency Fee 74,331 43,108 53,100 20,300 46,000 (7,100) Administrative Citations 22,045 20,743 30,900 1,600 14,800 (16,100) Fines & Forfeitures Total 910,120 1,190,038 1,090,720 986,100 1,136,000 45,280 Other Revenues
Miscellaneous 45,235 39,382 88,200 50,525 58,200 (30,000) Final Map 16,532 13,216 11,330 9,500 42,000 30,670
Advertising Revenue 20,457 37,343 36,600 16,200 27,200 (9,400) Proceeds From Auction 1,429 42,949 57,300 14,100 16,000 (41,300) Sale Maps/Plans/Documents - - - 100 - 100
Claims Settlements 600 989 600 600 - (600)
Contractual Reimbursement 3,816 - - - - -
Landscaping - County 6,100 - - - - -
Other Revenues Total 94,169 133,879 194,030 90,925 143,500 (50,530) Grand Total 82,072,396 86,732,760 84,792,279 88,225,641 91,278,595 6,486,316 __________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 60 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Salaries & Benefits
Salaries 23,250,393 25,592,782 28,398,502 28,444,514 29,962,312 1,563,810 Benefits 15,854,190 16,204,221 15,954,392 16,169,473 19,226,607 3,261,415 Overtime 6,555,765 7,805,797 7,423,200 6,645,305 6,951,635 (471,665) PERS UAL Payment 1,086,848 1,712,960 - - 1,700,110 1,700,110 Mutual Aid Overtime 968,421 192,002 267,600 267,600 288,900 21,300 Salaries & Benefits Total 47,715,617 51,507,762 52,043,694 51,526,892 58,129,564 6,074,970 Materials & Services
Materials & Services 10,720,931 11,619,314 10,116,950 10,241,494 11,120,863 1,003,913 Utilities 1,347,334 1,409,575 1,390,000 1,445,000 1,471,900 81,900 Fuel 603,180 707,868 788,470 707,475 711,747 (76,723)
Maintenance & Repairs 120,663 109,562 192,500 192,536 171,500 (21,000) Materials & Services Total 12,792,108 13,846,319 12,487,920 12,586,505 13,476,010 988,090 Allocated Costs
Allocated Costs 2,600,859 2,542,903 3,238,442 3,255,060 4,553,787 1,315,345 Allocated Costs Total 2,600,859 2,542,903 3,238,442 3,255,060 4,553,787 1,315,345 Grand Total 63,108,584 67,896,984 67,770,056 67,368,457 76,159,361 8,378,405 General Fund Expenditure Summary
Salaries
39%
Benefits
25%
Overtime
10%

PERS UAL
Payment
2%
Materials &
Services
15%
Utilities, Fuel,
M&R
3%
Allocated Costs
6%
General Fund Expenditures by Category
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 61 ends

FY2021-22
Actual
FY2022-23
Actual
Original
Budget
FY2023-24
Estimated
FY2023-24
Proposed
Budget
FY2024-25
Increase/
(Decrease)
Administration 1,331,599 1,800,257 1,609,730 1,684,274 1,785,995 176,265 City Clerk 399,084 621,338 376,097 376,771 710,614 334,517 Code Enforcement 457,670 828,666 946,013 995,888 1,065,105 108,292 Community Development 3,541,763 3,681,865 2,447,402 2,431,208 2,755,269 307,867 Community Services 1,315,394 1,865,863 2,033,423 2,176,679 2,389,730 356,207 Finance 4,413,443 3,923,739 4,498,773 4,514,243 4,566,343 67,570 Fire 20,830,976 21,711,806 21,439,128 20,478,729 23,953,222 2,514,094 Police 27,724,872 30,125,902 30,972,222 31,203,378 34,048,448 3,076,226 Public Works 3,093,783 3,337,548 3,447,268 3,507,287 4,884,635 1,437,367 Grand Total 63,108,584 67,896,984 67,770,056 67,368,457 76,159,361 8,378,405 General Fund Expenditure Summary by Department
Administration
3%
City Clerk
1%
Code Enforcement
1% Community Development
4% Community Services
3%
Finance
6%
Fire
34%
Police
48%
General Fund Expenditures by Department
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 62 ends

General Fund
Administration Department
The Administration Department consists of four divisions: the City Council, City Manager, Community & Economic Development and City Attorney. The City Manager and City Attorney are appointed by the Council. The City Attorney is currently contracted out.

Organization Chart
FY2021-22
Actual
FY2022-23
Actual
FY2023-24
Original
Budget
FY2023-24
Estimate
FY2024-25
Proposed Change
City Manager
Full-Time
Assistant City Manager 2 2 2 2 1 -1
Asst. to the City Manager 0 0 0 1 1 1
City Manager 1 1 1 1 1 0
Econ Dev Housing Manager 1 1 1 1 1 0
Econ Dev Project Coordinator 1 1 1 2 1 0
Econ Dev Project Manager 0 0 1 0 1 0
Economic Dev Specialist 1 1 0 0 0 0
Exec Assistant to City Manager 1 1 1 1 1 0
Sr Administrative Assistant 1 1 1 1 1 0
Full-Time Total 8 8 8 9 8 0
Grand Total 8 8 8 9 8 0
Residents of West
Covina
City Council
City Manager
Executive Assistant
to City Manager
Senior
Administrative
Assistant
Assistant City
Manager
Assistant to the
City Manager
Community & Economic
Development Manager
CED Project
Manager
CED
Specialist
City
Attorney
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 63 ends

General Fund
Administration Department
City Council
Mission Statement
To provide policy leadership for the community and administration on all issues that affect the health, safety, and welfare for the City of West Covina.

About
The West Covina City Council is the governing body with the authority to adopt and enforce municipal laws and regulations. Members are elected by district to serve a four-year term. They consist of five City Council Members, which includes a Mayor who is appointed by the City Council to serve for a one-year term. The appointment is made on a rotating basis, based on seniority. There are no term limits for Council Members. The City Council appoints members of the community to serve on the City’s various boards and commissions to ensure that a wide cross-section of the community is represented in City government.

The City Council also appoints the City Manager and City Attorney. The City Manager is the Chief Administrative Officer and is responsible for the operations of the City. The City Attorney serves as the City’s chief legal officer.

The City Council also serves as the Governing Board to the Successor Agency of the former West Covina Redevelopment Agency.

Expenditures
FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
Original
Budget
FY 2023-24
Estimate
FY 2024-25
Budget
Increase/
(Decrease)
Salaries & Benefits 49,610 49,411 47,867 48,844 106,375 58,508 Salaries 46,027 46,026 45,900 45,900 83,770 37,870
Benefits 3,583 3,385 1,967 2,944 22,605 20,638
Materials & Services 15,303 15,774 39,600 39,600 39,600 0 Materials & Services 14,707 14,872 38,800 38,800 38,800 0 Utilities 596 902 800 800 800 0
Grand Total 64,913 65,185 87,467 88,444 145,975 58,508
__________________________ City of West Covina FY 2024-25 Proposed Budget __________________________

Page 64 ends

West Covina City CouncilMay 7, 2024

West Covina City Council
May 7, 2024