Agenda packet, regular meeting — West Covina City Council, December 3, 2024

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
DECEMBER 3, 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 DECEMBER 3, 2024, 7:00 PM

REGULAR MEETING

MOMENT OF SILENT PRAYER/MEDITATION

PLEDGE OF ALLEGIANCE
Led by Mayor Pro Tem Wu

ROLL CALL

REPORTING OUT FROM CLOSED SESSION

PRESENTATIONS

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 NOVEMBER 19, 2024, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE NOVEMBER 19, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

That the Council approve the November 19, 2024, City Council/Successor Agency Regular Session Meeting Minutes and the November 19, 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 AN ORDINANCE AMENDING PURCHASING PROCEDURES It is recommended that the City Council adopt the following ordinance:

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

ORDINANCE NO. 2524 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING DIVISION 2 (PURCHASING PROCEDURES) OF ARTICLE VII (PURCHASES AND SALES) OF CHAPTER 2 (ADMINISTRATION) OF

THE WEST COVINA MUNICIPAL CODE

CITY MANAGER'S OFFICE
3) CONSIDERATION OF FIRST AMENDMENT TO OPERATING AGREEMENT AND

MEMORANDUM OF AGREEMENT REGARDING EXERCISE OF SECOND OPTION TO

EXTEND SUBLEASE FOR PARKING FACILITIES AT THE LAKES AT WEST COVINA It is recommended that the City Council authorize the City Manager to execute:

The First Amendment to the Operating Agreement for a Portion of the Parking Facilities with CIP 2014/SG Covina Owner LLC (CIP), to renew and extend the term of the Agreement through May 14, 2028.

1. The Memorandum of Agreement Regarding Exercise of Second Option to Extend Sublease of Parking Facilities at the Lakes at West Covina with CIP 2014/SG Covina Owner LLC, extending the term of the Sublease through July 31, 2028.

2. POLICE DEPARTMENT
4) CONSIDERATION OF EXPENDITURES OF FISCAL YEAR 2024-25 SUPPLEMENTAL LAW

ENFORCEMENT SERVICES ACCOUNT FUNDS
It is recommended that the City Council approve using Fiscal Year (FY) 2024-25 Supplemental Law Enforcement Services Account (SLESA) funds totaling $168,488 for the frontline law enforcement supply and services items list in the staff report.

END OF CONSENT CALENDAR

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 December 17, 2023 7:00 PM

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

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

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

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

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

Sec. 2-50. Decorum--Required.

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

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

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

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

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

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

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

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

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

AGENDA ITEM NO. 1

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: December 3, 2024
TO: Mayor and City Council
FROM:

SUBJECT: CONSIDERATION OF APPROVAL OF THE NOVEMBER 19, 2024, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE NOVEMBER 19, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

RECOMMENDATION:

BACKGROUND:

That the City Council adopt the attached minutes.

Attachments
Attachment No. 1 - 11/19/2024 Closed Session Minutes Draft Attachment No. 2 - 11/19/2024 Regular Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO. 1

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
NOVEMBER 19, 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, November 19, 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, City Manager, Roxanne Lerma, Assistant City Manager, Thomas Duarte, City Attorney, Stephanie Sikkema, Finance Director, Melissa Ballard, Jones Mayer, Derek Straatsma, Goldman Magdalin Straatsma.

ATTACHMENT NO. 1

PUBLIC COMMENTS ON ITEMS ON THE AGENDA
None

CLOSED SESSION

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

1.Hardy Mosley v. City of West Covina (ADJ1865576 WCAB Van Nuys)

2.Hardy Mosley v. City of West Covina (ADJ17039708 WCAB Van Nuys)

2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2) Number of Cases: One (1)

3. 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
 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.
-THIS SECTION INTENTIONALY LEFT BLANK-
ATTACHMENT NO. 1

ADJOURNMENT
A motion to adjourn the Regular Closed Meeting was made by Mayor Calderón Tabatabai, and the meeting was adjourned at 6:50 p.m. The next regularly scheduled Regular Closed City Council Meeting will be held on Tuesday, December 3, 2024, at 6:00 p.m. in the Management Resource Center 3rd Floor, 1444 West Garvey Avenue South, West Covina, California.

Submitted By:
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Brian Calderón Tabatabai
Mayor
ATTACHMENT NO. 2

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY/

WEST COVINA COMMUNITY SERVICES FOUNDATION
NOVEMBER 19, 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

INVOCATION
Led by Chaplin Lisa Mayo

PLEDGE OF ALLEGIANCE
Led by Councilwoman Rosario Diaz

ROLL CALL
Council Members

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

REPORTING OUT FROM CLOSED SESSION
ATTACHMENT NO. 2
City Attorney Thomas Durate reported that no action was taken during the Closed Session Meeting.

PRESENTATIONS
 Certificate of Recognition Celebrating Eloise Bienvenu's 100th Birthday  Proclamation Acknowledging National Diabetes Month
 Proclamation Acknowledging Small Business Saturday

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

ORAL COMMUNICATIONS - Five (5) minutes per speaker
R. Robinson
Lisa Mayo
Douglas Fore
Joshua Fuentes
Herman
The Pirate
Jeff Augino
Matthew
Michael Stefaniff
Desirae Fuentes
Mario Sobalvarro
Sherrie Berillon

CONSENT CALENDAR
ACTION: Motion by Councilwoman Diaz and Second by Councilwoman LopezViado, 5-0 to: Approve Consent Calendar Item 1-6, 8 (Item number 7 was pulled by Mayor Calderón Tabatabai)
ACTION: Motion by Mayor Pro Tem Wu and Second by Councilman Cantos, 3-1-1 (Lopez-Viado: Abstain, Calderón Tabatabai: No) to: Approve Consent Calendar Item 7 APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE OCTOBER 15, 2024, CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE OCTOBER 15, 2024, CITY COUNCIL/SUCCESSOR AGENCY REGULAR CLOSED SESSION MEETING MINUTES.

Carried 5-0 to: approve the October 15, 2024, City Council/Successor Agency Regular Session Meeting Minutes and the October 15, 2024, City Council/Successor Agency Regular Closed Session Meeting Minutes.

ATTACHMENT NO. 2

CITY MANAGER'S OFFICE
2) CONSIDERATION OF THE WEST COVINA COMMUNITY SERVICES
FOUNDATION FISCAL YEAR 2023-2024 ANNUAL REPORT
Carried 5-0 to: that the Board of Directors of the West Covina Community Services Foundation receive and file this report.

COMMUNITY DEVELOPMENT
3) CONSIDERATION OF APPROVAL OF TRAFFIC RECOMMENDATIONS FROM

THE TRAFFIC COMMITTEE MEETINGS BETWEEN JANUARY THROUGH
OCTOBER 2024

Carried 5-0 to: approve the Traffic Committee recommendations detailed in the staff report for traffic engineering improvements citywide from the meetings held between January 2024 through October 2024.

FINANCE DEPARTMENT
4) CONSIDERATION OF AUTHORIZATION TO REALLOCATE AND OBLIGATE

CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (SLFRF)

AUTHORIZED BY THE AMERICAN RESCUE PLAN ACT (ARPA)
Carried 5-0 to: It is recommended that the City Council:

1. Authorize the City Manager to reallocate the remaining SLFRF as necessary to obligate all funding by December 31, 2024; and

2. Authorize the City Manager to award and approve any and all purchases and execute any and all agreements for products and services within the remaining SLFRF balance, following the City's procurement requirements, by December 31, 2024.
5) CONSIDERATION OF LABOR MANAGEMENT WORKERS’ COMPENSATION

ALTERNATIVE DISPUTE RESOLUTION (ADR) AGREEMENTS BETWEEN THE

CITY OF WEST COVINA AND WEST COVINA FIREFIGHTERS' ASSOCIATION

AND WEST COVINA FIRE MANAGEMENT ASSOCIATION
Carried 5-0 to: approve and adopt the following resolution:

RESOLUTION NO. 2024-67 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, APPROVING LABOR MANAGEMENT

WORKERS' COMPENSATION ALTERNATIVE DISPUTE RESOLUTION

AGREEMENTS BETWEEN THE CITY OF WEST COVINA AND THE WEST COVINA FIREFIGHTERS' ASSOCIATION, I.A.F.F., LOCAL 3226 AND THE WEST COVINA

FIRE MANAGEMENT ASSOCIATION
ATTACHMENT NO. 2
6) CONSIDERATION OF AN ORDINANCE AMENDING PURCHASING

PROCEDURES AND RATIFICATION OF FINDING THAT COMPLIANCE WITH

CITY'S BIDDING PROCEDURES WAS INEFFICIENT IN CONNECTION WITH

CERTAIN SERVICES PROVIDED AT CITY EVENTS
Carried 5-0 to: It is recommended that the City Council:

1. Ratify the finding that compliance with the bidding requirements and procedures was inefficient, based on the increase in number of events and lack of staff for event planning for the following services for the period of January 1, 2024 through December 31, 2024: event rentals, photography, musical performers, and balloon artists.

2. Introduce the following ordinance:

FIRE DEPARTMENT
7) CONSIDERATION OF 2023 DEPARTMENT OF HOMELAND SECURITY (DHS)/

FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA), STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) GRANT (EMW-2023-FF01127) Carried 3-1-1 to (Abstain: Lopev-Viado, No: Tabatabai): decline the 2023 SAFER Grant (#EMW-2023-FF-01127), to avoid deficit spending in the General Fund, and future layoffs.

POLICE DEPARTMENT
8) CONSIDERATION OF 2023 STATE HOMELAND SECURITY PROGRAM GRANT

Carried 5-0 to: adopt the following resolution:

RESOLUTION NO. 2024-66 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WEST COVINA, CALIFORNIA, APPROVING THE APPLICATION FOR AND ACCEPTANCE OF 2023 STATE HOMELAND SECURITY GRANT, AUTHORIZING

THE CITY MANAGER TO EXECUTE ALL GRANT AGREEMENTS AND RELATED

CERTIFICATIONS AND ASSURANCES, AND ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2024 AND ENDING JUNE 30, 2025 (2023 STATE HOMELAND SECURITY PROGRAM GRANT)

END OF CONSENT CALENDAR
ATTACHMENT NO. 2

MAYOR/COUNCILMEMBERS REPORTS
None

CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION None

CITY COUNCIL COMMENTS
 Councilman Cantos mentioned that there are grants available from the California Earthquake Authority to reinforce houses. Councilman Cantos asked the community to let him know if there are areas where they would like crossing guards.

ADJOURNMENT
A motion to adjourn the Regular Meeting was made at 8:59 PM The next regularly scheduled Regular City Council Meeting will be held on Tuesday, December 3, 2024, at 7:00 p.m. in the Council Chambers, 1444 West Garvey Avenue South, West Covina, California.
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Brian Calderón
Mayor
AGENDA ITEM NO. 2

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: December 3, 2024
TO: Mayor and City Council
FROM: Paulina Morales, City Manager
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING PURCHASING PROCEDURES RECOMMENDATION:

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

MUNICIPAL CODE
BACKGROUND:

In June 2022, the City Council adopted Ordinance No. 2498, repealing and replacing Divisions 1 (Generally) and 2 (Administration) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code (WCMC) in their entirety and amending Division 3 (Contracting for Public Projects) of Article VII of Chapter 2 of the WCMC. In October 2022, the City Council adopted Ordinance No. 2501, amending Article VII of Chapter 2 of the West Covina Municipal Code to re-incorporate previously adopted SB 1383 procurement requirements and clarifying procedures for public projects.

Agreements that include automatic renewal or extension provisions are colloquially referred to as “evergreen” agreements. The City has entered into evergreen agreements with certain service providers, such that the termination period for such agreements is the length of the contract term, such as 15 years or 25 years. In the State Auditor’s December 2020 Audit Report regarding the City, the State Auditor noted that neither the City’s Municipal Code nor its purchasing policies required any limits on a contract’s duration, and stated the City’s decision to increase the duration of the evergreen period in its solid waste franchise agreement to 25 years was not in the City’s best interest because it restricted the City’s ability to seek more favorable terms from other vendors offering similar services. The Audit Report recommended that the City amend its contracting policies to include a requirement that City Management document its reason for entering into any contract or contract extension with a duration in excess of five years.

In response to the Audit Report, Ordinance No. 2498 codified the City's policy of limiting the duration of agreements for goods and/or services to five (5) years, and the length of lease agreements to thirty (30) years, unless otherwise approved by the City Council. T he intent of Section 2-330 is to limit the duration for which the City is obligated to remain a party to an agreement without the ability to terminate to a maximum of five years.
maximum of five years.

On November 19, 2024, the West Covina City Council, by a 5-0 vote, introduced Ordinance No. 2524, which will amend Division 2 (Purchasing Procedures) of Article VII (Purchases and Sales) Of Chapter 2 (Administration) of the West Covina Municipal Code.

DISCUSSION:

The State Auditor has recommended that to ensure that the agreements the City enters are effective and represent the best value, West Covina should amend its contracting policies to include a requirement that City Management document its reason for entering into any agreement or agreement extension with a duration in excess of five years.

Additionally, due to the uniqueness of some services for City events, staff recommends adding an exemption from competitive bidding for performing artist services. Performing artist services includes, but is not limited to, art, dance, music, theatre, magic, illusion, mime, puppetry, stand-up comedy, face painting, and balloon artistry.

The proposed Ordinance No. 2524 includes:

Adds language to Section 2-330 of the WCMC to require that the City document the rationale for entering into agreements or extensions to agreements that exceed five (5) years in duration.

Makes clarifying changes to Section 2-330 of the WCMC.

Adds a definition for performing artist services in Section 2-327 of the WCMC.

Amends Section 2-355 of the WCMC to include an exemption from competitive bidding requirements for performing artist services
Staff recommends that the City Council adopt Ordinance No. 2524. The Ordinance will take effect on the 31st day following adoption, which is on or about January 3, 2025.

LEGAL REVIEW:

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

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

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

Attachments
Attachment No. 1 - Ordinance No. 2524
CITY COUNCIL GOALS & OBJECTIVES: Maintain Good Intergovernmental Relations ATTACHMENT NO. 1
ORDINANCE NO. 2524

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AMENDING DIVISION 2
(PURCHASING PROCEDURES) OF ARTICLE VII
(PURCHASES AND SALES) OF CHAPTER 2
(ADMINISTRATION) OF THE WEST COVINA MUNICIPAL
CODE
WHEREAS, pursuant to California Government Code sections 54201 through 54203, local agencies are required to adopt, by ordinance, policies and procedures, including bidding regulations, governing the purchases of supplies and equipment by the local agency; and
WHEREAS, the City of West Covina (“City”) has adopted such policies and procedures by ordinance. Said policies and procedures are codified in Division 2 (Purchasing Procedures) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code; and WHEREAS, agreements that include automatic renewal or extension provisions are colloquially referred to as “evergreen” agreements; and WHEREAS, the City has entered into evergreen agreements with certain service providers, such that the termination period for those agreements is the length of the contract term, such as 15 years or 25 years; and
WHEREAS, in the State Auditor’s December 2020 Audit Report regarding the City, the State Auditor noted that neither the City’s Municipal Code nor its purchasing policies required any limits on a contract’s duration, and stated the City’s decision to increase the duration of the evergreen period in its solid waste franchise agreement to 25 years was not in the City’s best interest because it restricted the City’s ability to seek more favorable terms from other vendors offering similar services; and WHEREAS, the Audit Report recommended that the City amend its contracting policies to include a requirement that City Management document its reason for entering into any contract or contract extension with a duration in excess of five years; and WHEREAS, in response to the Audit Report, the City codified Section 2-330 of Division 2 of Article VII of Chapter 2 of the West Covina Municipal Code, which currently provides that, unless otherwise approved by the City Council, the maximum length of any contract for goods and/or services shall be no more than five (5) years, and the maximum length of any lease agreement shall be no more than thirty (30) years; and WHEREAS, the intent of Section 2-330 is to limit the duration for which the City is obligated to remain a party to an agreement without the ability to terminate to a maximum Ordinance No. 2524

Page 2 of 4 ends

of five years; and
WHEREAS, the City Council desires to amend Section 2-330 to incorporate the requirement that the City document the reason for any contract or contract extension that exceeds five (5) years and make certain clarifying changes; and WHEREAS, Section 2-335 of Division 2 of Article VII of Chapter 2 of the West Covina Municipal Code outlines exemptions from the City’s competitive bidding requirements; and
WHEREAS, the City Council desires to add an exemption for performing artist services for City-sponsored events, and to establish the definition for performing artist services; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

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

SECTION 1. Recitals. The City Council finds that all of the facts and findings set forth in the recitals to this Ordinance are true and correct.

SECTION 2. Amendment to Section 2-330. Section 2-330 (Maximum Contract Term) of Division 2 (Purchasing Procedures) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby amended to read as follows:

Sec. 2-330. - Maximum contract duration.
(a) Unless otherwise approved by the city council, the maximum duration for any agreement for goods and/or services shall not exceed five (5) years. Prior to approving any agreement with a duration that exceeds five (5) years, the city shall document the rationale for entering into the agreement and why such agreement is in the best interest of the city.
(b) Notwithstanding subsection (a) of this section, the city may:
(1) Extend the term of an agreement beyond a five-year duration, provided that (a) no extension period shall exceed five (5) years, (b) the city documents the rationale for the extension and why such extension is in the best interest of the city, and (c) the city complies with any applicable procurement requirements set forth in this division. The city manager may approve such extension, provided it is within the city manager’s signing authority. (2) Enter into an agreement for goods and/or services that includes automatic extension or renewal periods that do not exceed one (1) year periods, Ordinance No. 2524

Page 3 of 4 ends

provided the agreement allows the city to terminate the agreement at the end of any automatic one (1) year extension or renewal period. (c) Unless otherwise approved by the city council, the maximum duration for any lease agreement shall not exceed thirty (30) years.

SECTION 3. Amendment to Section 2-327. Section 2-327 (Definitions) of Division 2 (Purchasing Procedures) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby amended to add a definition for performing artist services to read as follows:

Performing artist services means services provided by a person or group with specialized training, education, creativity, or skill in the arts. Performing artist services includes, but is not limited to, art, dance, music, theatre, magic, illusion, mime, puppetry, stand-up comedy, face painting, and balloon artistry.

SECTION 4. Amendment to Section 2-335. Section 2-335 (Exemptions from Competitive Bidding) of Division 2 (Purchasing Procedures) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby amended to add a new subsection (l) to read as follows:
(l) A procurement for performing artist services for city-sponsored events.

SECTION 5. Environmental Compliance. The City Council hereby finds that it can be seen with certainty that there is no possibility that 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 (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines.

SECTION 6. Inconsistencies. Any provision of the West Covina Municipal Code or 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 7. 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 8. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

Ordinance No. 2524

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SECTION 9. 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.

PASSED, APPROVED AND ADOPTED this 3rd day of December, 2024. ________________________
Brian Calderón Tabatabai
Mayor

APPROVED AS TO FORM ATTEST
________________________ ________________________
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk

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. 2524 was introduced at a regular meeting of the City Council held on the 19th day of November, 2024, and adopted at a regular meeting of the City Council held on the 3rd day of December, 2024, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________
Lisa Sherrick
Assistant City Clerk
AGENDA ITEM NO. 3

MEMORANDUM OF AGREEMENT REGARDING EXERCISE OF SECOND OPTION TO

EXTEND SUBLEASE FOR PARKING FACILITIES AT THE LAKES AT WEST COVINA RECOMMENDATION:

It is recommended that the City Council authorize the City Manager to execute:

The First Amendment to the Operating Agreement for a Portion of the Parking Facilities with CIP 2014/SG Covina Owner LLC (CIP), to renew and extend the term of the Agreement through May 14, 2028.

2. BACKGROUND:

The City of West Covina (City) owns the parcels that encompass the parking lot and parking structures (Facilities) at the Lakes Office Development (Attachment No. 1).

The two parcels total 4.16 acres, which consist of surface parking spaces, one parking structure on each parcel (two parking structures in total), lighting, infrastructure, curb and gutter, landscaping, and ingress and egress (roads and driveways). The properties are subject to numerous agreements, detailing the development and primarily providing for the development and reservation of a public parking facility for the general public and for patrons of the Lakes Office Development, Edwards Theater, the Lakes Entertainment Center, and adjacent businesses. The agreements include a Lease Agreement (Master Lease), a Disposition and Development Agreement, an Indenture of Trust Agreement, a Reimbursement Agreement, an Installment Agreement, an Agreement of Sublease of Portion of Parking Facilities (Sublease Agreement), an Agreement re Option to Purchase (Option to Purchase Agreement), an Operating Agreement for Portion of Parking Facilities (Operating Agreement), a Reciprocal Easement Agreement (REA), an Implementation Agreement, and numerous subsequent amendments.

The two parcels were initially acquired by the West Covina Parking Authority (Authority) for the purpose of developing the site and building public parking facilities. In 1985, the Redevelopment Agency (Agency) and Authority entered into an Installment Sale Agreement whereby the Authority would develop the site then sell the site and the project back to the Agency. In 1988, the former Agency obtained ownership of the parking structures and the parking lots.

On August 1, 1988, the Agency issued “Redevelopment Agency of the City of West Covina 1988 Lease Revenue Bonds” in the amount of $7,750,000. The Agency concurrently entered into the Master Lease with the City. The City leased the Facilities from the Agency for an Initial Term of 30-years (expired August 1, 2018), with eleven (11) additional five-year extensions (which would make the latest expiration in 2073). Furthermore, the City concurrently entered into the Sublease Agreement with Watt Investment Properties Inc. (Watt), dated August 1, 1988, as amended in January 1989, with the same initial 30-year period but with five (5) additional five-year extensions (2043).

Under the Sublease Agreement between the City and Watt, Watt subleases (and manages) 25% of the Parking Facilities for the Lakes Offices. Pursuant to the Operating Agreement, Watt manages the remaining 75% of the Parking Facilities on a non-exclusive basis for the public. The Operating Agreement was amended and executed in May 2018 with Capital Partners LLC, with the entity CIP 2014/SG Covina Owner LLC (CIP) as the listed owner, as successor-in-interest to Watt. The amended Operating Agreement had a term of five years, through May 2023.

Under the City’s Master Lease and the Indenture of Trust (between the City and Dai-Ichi Kango Bank of California), the 1988 Lease Revenue Refunding Bonds for the Lakes Public Parking Project (Bonds) were paid by the City from the lease payments, which were made in accordance with the Master Lease. The bonds matured in August 2018, with the last payment of $670,670 on August 1, 2018.

With the elimination of redevelopment agencies in 2012, the Successor Agency to the former Redevelopment Agency obtained Department of Finance approval to transfer the two assets as “Government Purpose” to the City of West Covina. On December 17, 2015, the City took ownership of the two parcels.

Pursuant to the Option to Purchase Agreement, after the bonds are paid in full, CIP, as property owner, maintains the right (but not obligation) to purchase the properties for $1,000 for the 25% leased area, and for the full market value for the remaining 75% parking area, based on the existing use as a public parking facility. In April 2018, Waterford Property Company (the managing member of CIP) exercised its option to purchase the Parking Facilities. Once the request was made, the City and Waterford conducted appraisals and attempted to come to an agreement over the fair market value of the parcels. There was a large difference in appraisal values. The parties could not come to an agreement on an acceptable purchase price. In June 2019, Waterford informed the City it was no longer interested in pursuing the purchase of the Parking Facilities and requested to extend the sublease instead.

On August 20, 2019, the City Council approved the Memorandum of Agreement extension option to extend the sublease of the parking facilities with CIP.

DISCUSSION:

The extension of both agreements is necessary to allow continued use of the facilities for the commercial activities on the property and to ensure continued maintenance of the facilities by CIP. The extensions would be retroactive to May 2023 (Operating Agreement) and August 2023 (Sublease Agreement) and be for a five (5) year period, extending the Operating Agreement through May 14, 2028, and extending the Sublease Agreement through July 31, 2028.

Pursuant to the Sublease Agreement, the Sublessee (CIP) is responsible for paying the City additional payments (bond associated fees), if any, plus a $100 annual payment to the City. Costs associated with the management and operation of the parking facilities are paid by CIP, pursuant to the Sublease Agreement (for 25% of the facilities) and the Operating Agreement (for the remaining 75% of the facilities).

LEGAL REVIEW:

The City Attorney's Office has reviewed the First Amendment to Operating Agreement and Memorandum The City Attorney's Office has reviewed the First Amendment to Operating Agreement and Memorandum of Agreement Regarding Exercise of Second Option to Extend Sublease of Parking Facilities at The Lakes at West Covina and approved them as to form.

OPTIONS:

The City Council has the following options:

1. Approve staff’s recommendation; or

2. Provide alternative direction.

Fiscal Impact
FISCAL IMPACT:

Pursuant to the agreements, CIP pays the costs associated with the management and operation of the parking facilities, which are estimated to be over $500,000 per year. The City also receives $100 per year under the Sublease Agreement.

Attachments
Attachment No. 1 - City Owned Parcels Aerial
Attachment No. 2 - First Amendment to Operating Agreement Attachment No. 3 - Memorandum of Agreement - Second Term CityOwnedParcels:8474-011-942and8474-001-943
CityOwnedParcels:TheLakesPublicParkingProject
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FIRST AMENDMENT TO

OPERATING AGREEMENT FOR PORTION OF PARKING FACILITIES

BETWEEN

THE CITY OF WEST COVINA AND
CIP 2014/SG Covina Owner LLC
THIS FIRST AMENDMENT ("Amendment No. 1") is made and entered into this _____ day of ___________ 2024, by and between the CITY OF WEST COVINA (“CITY”), a municipal corporation, and CIP 2014/SG COVINA OWNER LLC, a Delaware limited liability company ("OPERATOR"), collectively referred to herein as the “Parties”.

RECITALS
A. WHEREAS CITY and OPERATOR have entered into that certain Operating Agreement dated May 15, 2018 ("Agreement"), by which CITY and OPERATOR agreed that OPERATOR would manage certain public parking spaces and public facilities together with necessary common area facilities, as defined in Exhibit E of the Agreement (“Parking Facilities”), located within The Lakes, as described in Exhibit B of the Agreement (“Project Description”); B. WHEREAS the Agreement’s term was from May 15, 2018, and lasting five (5) years from that date;
C. WHEREAS OPERATOR has continued to manage said Parking Facilities; D. WHEREAS CITY desires that OPERATOR continue to manage said Parking Facilities;
E. WHEREAS Section 3.D. of the Agreement wherein, at the election of the CITY, the OPERATOR shall be deemed to have a continuing offer to the City to renew the Operating Agreement upon the expiration of the initial term;
F. WHEREAS the CITY elects to renew the Agreement an additional five (5) years from May 14, 2018;
G. WHEREAS the Parties desire to make this First Amendment effective retroactively as of May 14, 2023; and
H. WHEREAS the Parties mutually agree to enter into this First Amendment to renew and extend the agreement term through and including May 14, 2028, ATTACHMENT NO. 2
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NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto AGREE to amend the Agreement as follows:

1. Section 3.A. of the Agreement (“Commencement Date”) shall be amended to add the following:
“The term of the First Amendment shall commence on May 15, 2023.”

2. This First Amendment shall be effective as of May 14, 2023.

3. This First Amendment shall remain in effect until and including May 14, 2028.

4. Except as otherwise amended by this First Amendment to the Agreement each and every term, covenant, and condition contained in the Agreement shall remain in full force and effect.

5. All terms not defined herein shall have the same meaning and use as set forth in the Agreement.

6. This Amendment 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.
[SIGNATURES APPEAR ON NEXT PAGE]
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IN WITNESS WHEREOF, CITY has caused this Amendment to be signed and executed on its behalf by the City Manager and the OPERATOR’s duly authorized agent has signed and executed this Amendment.

CIP 2014/SG COVINA OWNER LLC,
a Delaware limited liability company
By: CIP 2014/SG Covina Holdings LLC,
a Delaware limited liability company,
its sole Member
By: CIP 2014 Covina Investor LLC,
A Delaware limited liability,
A Manager
By: ________________________
Name: ________________________
Title: ________________________

CITY OF WEST COVINA,
a municipal corporation
By: ________________________
City Manager
ATTEST:

B: ________________________
City Clerk
Memorandum of Agreement Regarding Exercise of Second Option to Extend Sublease of Parking Facilities at The Lakes at West Covina

Page 1 of 2 ends

MEMORANDUM OF AGREEMENT

REGARDING

EXERCISE OF SECOND OPTION TO EXTEND SUBLEASE

OF PARKING FACILITIES AT THE LAKES AT WEST COVINA
Memorandum of Agreement Regarding Exercise of Second Option to Extend Sublease of Parking Facilities at The Lakes at West Covina (the "Memorandum") is entered into as of __________, 2024, between The City of West Covina ("Sublessor") and CIP 2014/SG Covina Owner LLC, a Delaware limited liability company ("Sublessee"), collectively “the Parties”, with respect to the following:

RECITALS
A. Sublessor and Sublessee are parties, or successors-in-interest to parties, to that certain Agreement for Sublease of Portion of Parking Facilities originally by and between City and Watt Investment Properties, Inc., a California corporation and West Covina Lakes Associates, a California limited partnership (collectively, together with their successors and assigns, "Watt"), dated as of August 1, 1988, as amended by First Amendment of Agreement for Sublease of Portion of Parking Facilities between City and Watt dated January 1, 1989, and Second Amendment of Agreement for Sublease of Portion of Parking Facilities between City and Watt dated February 28, 1989 (the "Sublease"). Sublessee is the ultimate successor in interest to Watt.

B. The initial term of the Sublease was from September 1, 1988, until August 1, 2018.

C. Pursuant to Section 3.D of the Sublease, the initial term of the Sublease can be extended for five (5) additional terms of five (5) years each.

D. The first option to extend the initial term of the Sublease has been exercised, thereby amending the expiration date of the Sublease term to be August 1, 2023.

C. The second term of the Sublease was from August 1, 2018, until August 1, 2023.

NOW, THEREFORE, THE PARTIES DESIRE TO MEMORIALIZE THE AGREEMENT

OF THE PARTIES TO EXERCISE OF THE SECOND OPTION FOR FURTHER EXTENSION OF THE SUBLEASE TERM AND AGREE AS FOLLOWS:

1. The Parties herein hereby extend the term of the Sublease for a third term beginning August 1, 2023, which shall remain in effect for the duration of five years until and including July 31, 2028.

2. Sublessee has three remaining options to extend the term of the Sublease for additional terms of five (5) years each in accordance with the procedure set forth in Section 3.D of the Sublease, which parties reference and include here as though set forth fully herein.

ATTACHMENT NO. 3
Memorandum of Agreement Regarding Exercise of Second Option to Extend Sublease of Parking Facilities at The Lakes at West Covina

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3. The parties herein desire that upon execution of the Memorandum, the terms of this Memorandum become effective retroactively as of August 1, 2023, as the parties have intended and acted in all respects as though the agreement had continued to be in full force and effect.

4. Parties reference, include, incorporate, and restate as though fully set forth herein all terms and conditions of the Sublease, as amended, which were in place and effective as of August 1, 2023, and specifically Section 27 (“Indemnification”) of the Sublease is expressly intended to apply from August 1, 2023, and continuing through the duration of this extended term.

5. This Memorandum constitutes the entire understanding and agreement of the Parties as to this Memorandum and as to the Parties’ exercise of the second option to extend the Sublease, and as such, supersedes all negotiations or previous agreements to the contrary, including written or verbal communications between the Parties with resect to all or any part of the transaction discussed in this Memorandum.

6. Except as provided herein, the Sublease remains in full force and effect as originally set forth.

IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS MEMORANDUM AS OF THE DATE FIRST SET FORTH ABOVE.

SUBLESSEE:

GIP 2014/SG Covina Owner LLC
By: _______________________
Name: John Drachman
Title: Authorized Signatory
SUBLESSOR:

City of West Covina
By:

Name: Paulina Morales
Title: City Manager
ATTEST
By: _______________________
Name: Lisa Sherrick
Title: Assistant City Clerk
Approved as to form:

By: _______________________
Name: Thomas P. Duarte
Title: City Attorney
AGENDA ITEM NO. 4

LAW ENFORCEMENT SERVICES ACCOUNT FUNDS
RECOMMENDATION:

It is recommended that the City Council approve using Fiscal Year (FY) 2024-25 Supplemental Law Enforcement Services Account (SLESA) funds totaling $168,488 for the frontline law enforcement supply and services items list in the staff report.

BACKGROUND:

The Supplemental Law Enforcement Services Account (SLESA) is a State allocation which, according to California Government Code Sections 30061 and 30062, must be used exclusively to fund frontline municipal police services, in accordance with written requests submitted by the Chief of Police. These funds cannot be used to replace or supplant existing funding for law enforcement services, but must instead supplement local funds. This funding was formerly called the Supplemental Law Enforcement Service Fund (SLESF), but was renamed SLESA as part of the realignment program for law enforcement that was enacted along with the State of California 2011 Budget Act.

DISCUSSION:

West Covina’s FY 2024-25 SLESA allocation totals an estimated $168,488. Anticipating the receipt of these funds, which are distributed monthly, the Police Department prioritized a list of unbudgeted frontline police supplies and services for this fiscal year, as listed below. Since the start of this fiscal year, some of these supply and services expenditures have already been completed or are underway.

Five electric bicycles, specially equipped for police service, totaling $27,105.

Helicopter support services, totaling an estimated $29,000. The latest multi-year agreement with Los Angeles County for helicopter support services, paid for using SLESA funds, was approved by the City Council on October 1, 2024 (agenda item No. 8).

GPS based surveillance services used by the Special Enforcement Team to track narcotics suspects, totaling an estimated $15,000;
Specialized ammunition and tactical supplies for the SWAT Team, totaling an estimated $29,500;
Personal protective supplies including bulletproof vests for newly hired Officers, gas mask cartridges, ballistic helmets, and carrying gear, totaling an estimated $30,500; Traffic enforcement supplies, weapons accessories, and police supplies supporting front line law enforcement, totaling an estimated $37,383.

Prepared by: Alex B. Houston, Police Administrative Services Manager Additional Approval: Richard Bell, Chief of Police
Fiscal Impact
FISCAL IMPACT:

Using the State SLESA funds for the frontline law enforcement items described above is in keeping with the legislatively dictated requirements associated with this funding source. Estimated SLESA expenditure and revenue amounts were previously budgeted in Fund 155, so there is no impact to the General Fund.

CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety

West Covina City CouncilDecember 3, 2024

West Covina City Council
December 3, 2024