Agenda packet, regular meeting — West Covina City Council, February 4, 2025 (part 2 of 2)

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Environmental Determination: Based on the findings of the Initial Study, the City has determined that this project would not result in significant environmental impacts. Mitigation measures for biological resources, cultural resources, geology and soils, hazards and hazardous materials, noise, transportation, and tribal cultural resources will be required to reduce impacts to a less than significant level. Accordingly, the City intends to adopt a Mitigated Negative Declaration, pursuant to Section 21080(c) of the Public Resources Code. The project site is not included on any list of hazardous materials facilities, hazardous waste properties, or hazardous waste disposal sites enumerated under Section 65962.5 of the California Government Code (Cortese List).

Public Review Dates: The public comment period during which the City of West Covina will receive written comments on the Mitigated Negative Declaration is:

October 30, 2024 – November 18, 2024
The City of West Covina must receive all written comments relating to the Mitigated Negative Declaration no later than 5:00pm on November 18, 2024. Please direct your written comments to:

Miriam Machado, Associate Planner
City of West Covina, Planning Division
1444 West Garvey Avenue S, Room 208
West Covina, California 91790
Or via e-mail to: [email protected]
Document Availability: The Mitigated Negative Declaration, as well as all referenced documents are available for public review online. Please visit: https://www.westcovina.org/departments/community-development/planningdivision/projects-and-environmental-documents.

Public Hearing: The West Covina Planning Commission is scheduled to consider the Mitigated Negative Declaration and the proposed project at its regular meeting on December 10, 2024, at 7:00 P.M. at 1444 W. Garvey Avenue South, West Covina, CA, in the City Hall Council Chambers located on the 1st Floor. The meeting is open to the public. The public may also watch the Planning Commission Meeting live on the City’s website at https://www.westcovina.org/departments/city-clerk/agendas-and-meetings/current-meetings-and-agendas under the “Watch Live” tab or through the West Covina City YouTube channel at www.westcovina.org/LIVE. To confirm the date and time of the meeting and for additional information concerning the proposed project, please check the City’s website: http://www.westcovina.org/home.

If you wish to challenge the action(s) taken on the request(s), you may be limited to raising only those issues, which you (or someone else) raised orally at this public hearing or in written correspondence received by the City at or before the hearing.

If you have any questions or would like any additional information, please contact Miriam Machado of the Planning Division at (626) 939-8422, or at [email protected]. ❖ ATTACHMENTS ❖
7212/Envision Motors Mercedes Benz Dealership Project
Responses to Comments November 2024

ATTACHMENT B
Tribal Consultation Letters

❖ ATTACHMENTS ❖
7212/Envision Motors Mercedes Benz Dealership Project
Responses to Comments November 2024

ATTACHMENT C
Comment Letters
DOC 7365884.D22
November 13, 2024
Ref. DOC 7354602
VIA EMAIL [email protected]
Ms. Miriam Machado, Associate Planner
City of West Covina, Planning Division
1444 West Garvey Avenue S, Room 208
West Covina, CA 91790
Dear Ms. Machado:

NOI Response to Mercedes Benz Dealership Project
The Los Angeles County Sanitation Districts (Districts) received a Notice of Intent (NOI) to Adopt a Mitigated Negative Declaration (MND) for the subject project located in the City of West Covina on October 28, 2024. The proposed project is located within the jurisdictional boundaries of District No. 22. We offer the following comments regarding sewerage service:

1. The wastewater flow originating from the proposed project will discharge to a local sewer line, which is not maintained by the Districts, for conveyance to the Districts’ 24-inch diameter Cameron Trunk Sewer, Section 1, 2 & 3, located in South Azusa Avenue at East Walnut Creek Parkway. This trunk sewer has a capacity of 1.8 million gallons per day (mgd) and conveyed a peak flow of 0.2 mgd when last measured in 2015.

2. The expected average wastewater flow from the project, described in the Initial Study as 70,758 square foot (sf) auto sales, 13,489 sf office building and 2,395 sf service shop, is 10,013 gallons per day. A copy of the District’s average wastewater generation factors is available on our website at Table 1, Loadings for Each Class of Land Use.

3. The wastewater generated by the proposed project will be treated at the San Jose Creek Water Reclamation Plant (WRP) located adjacent to the City of Industry, which has a capacity of 100 mgd and currently processes an average recycled flow of 60.1 mgd. All biosolids and wastewater flows that exceed the capacity of the San Jose Creek WRP are diverted to and treated at the A.K. Warren Water Resource Facility (formerly known as the Joint Water Pollution Control Plant) in the City of Carson, which has a capacity of 400 mgd and currently processes an average flow of 248.3 mgd

4. The Districts are empowered by the California Health and Safety Code to charge a fee to connect facilities (directly or indirectly) to the Districts’ Sewerage System or to increase the strength or quantity of wastewater discharged from connected facilities. This connection fee is used by the Districts for its capital facilities. Payment of a connection fee may be required before this project is permitted to discharge to the Districts’ Sewerage System. For more information and a copy of the Connection Fee Information Sheet, go to www.lacsd.org, under Services, then Wastewater (Sewage) and select Rates & Fees. In determining the impact to the Sewerage System and applicable connection fees, the Districts will determine the user category (e.g. Condominium, Single Family Home, etc.) that best represents the actual or anticipated use of the parcel(s) or facilities on the parcel(s) in the development. For more specific information regarding Ms. Miriam Machado 2 November 13, 2024
DOC 7365884.D22
the connection fee application procedure and fees, please contact the Districts’ Wastewater Fee Public Counter at (562) 908-4288, extension 2727.

5. In order for the Districts to conform to the requirements of the Federal Clean Air Act (CAA), the capacities of the Districts’ wastewater treatment facilities are based on the regional growth forecast adopted by the Southern California Association of Governments (SCAG). Specific policies included in the development of the SCAG regional growth forecast are incorporated into clean air plans, which are prepared by the South Coast and Antelope Valley Air Quality Management Districts in order to improve air quality in the South Coast and Mojave Desert Air Basins as mandated by the CAA. All expansions of Districts’ facilities must be sized and service phased in a manner that will be consistent with the SCAG regional growth forecast for the counties of Los Angeles, Orange, San Bernardino, Riverside, Ventura, and Imperial. The available capacity of the Districts’ treatment facilities will, therefore, be limited to levels associated with the approved growth identified by SCAG. As such, this letter does not constitute a guarantee of wastewater service but is to advise the City that the Districts intend to provide this service up to the levels that are legally permitted and to inform the City of the currently existing capacity and any proposed expansion of the Districts’ facilities.

If you have any questions, please contact the undersigned at (562) 908-4288, extension 2742, or [email protected].

Very truly yours,
Patricia Horsley
Environmental Planner
Facilities Planning Department
PLH:plh
cc: D. Hatch
A. Howard
“Provide a safe and reliable transportation network that serves all people and respects the environment.” STATE OF CALIFORNIA-------CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF TRANSPORTATION
DISTRICT 7
100 S. MAIN STREET, MS 16
LOS ANGELES, CA 90012
PHONE (213) 266-3562
FAX (213) 897-1337
TTY 711
www.dot.ca.gov
Making Conservation
a California Way of Life
November 28, 2024
Miriam Machado
City of West Covina
1444 W. Garvey Avenue South
West Covina, CA 91790
RE: Mercedes Benz Dealership Project;
Precise Plan No. 24-01 and Zone
Change No. 24-01: MND
GTS # 07-LA-2024-04669
SCH # 2024101288
Vic. I-10 PM 36.544

Dear Miriam Machado:

Thank you for including the California Department of Transportation (Caltrans) in the environmental review process for the above-referenced project. The proposed construction consists of electric vehicle charging stations and a two-story dealership with a total of 85,390 square feet – first floor 42,890 square feet, second floor 42,500 square feet, and second-floor roof overhang 8,920 square feet. The first level includes the showroom and delivery, office, service (detail bays), and other facilities such as lunchrooms, restrooms, and storage. The second floor includes showrooms and delivery, office space, and other facilities such as restrooms, lunchrooms, and storage. The project also includes a zone change to alter a portion of the project site currently zoned Neighborhood Commercial Mixed Use (SMU) to Service Commercial Mixed Use (SMU) within the Auto Plaza Overlay Zone. The City of West Covina is the Lead Agency under the California Environmental Quality Act (CEQA).

The closest state facility is I-10. After reviewing the project’s documents, Caltrans has the following comments:

Caltrans strongly recommends that auto-oriented projects, like the one proposed, be required to contribute Complete Streets infrastructure as a condition of approval.

Page 2 of 2 ends

“Provide a safe and reliable transportation network that serves all people and respects the environment.” islands, landscaping, street furniture, and reductions in crossing distances through roadway narrowing. The implementation of Complete Streets leads to positive outcomes, including improved regional connectivity, enhanced air quality, reduced traffic congestion, better first/last-mile connections for transit users, and overall improved safety for all modes of transportation.

Due to the project’s adjacency to I-10, extra care should be taken to ensure that there will be no impacts to Caltrans ROW. Any project work occurring within, or abutting Caltrans ROW will require an encroachment permit, this includes any grading, topography, or equipment work that will change the pattern or direction of water runoff in a way that will impact State facilities or ROW.

Final design requirements for any proposed changes to infrastructure within or along Caltrans Right-of-way will be determined by the Office of Permits. At the time of permit application there will be rounds of review and corrections to ensure all design, Right-ofway, access management, water runoff, environmental, and statutory requirements are being addressed.

Caltrans District 7 Office of Permits contact information:

Mailing Address: 100 S Main Street, Ste 100 Los Angeles, CA 90012 Office Hours: 8:00 a.m. to 5:00 p.m. Monday-Friday
Phone: 213-897-3631 | Fax: 213-897-0420 | E-mail: [email protected] Caltrans also recommends limiting large truck travel and construction traffic to off-peak commute hours. A permit for any heavy construction equipment and or materials that require the use of oversized transport vehicles on State highways. If construction traffic is expected to cause issues on any State facilities, please submit a construction traffic control plan detailing potential impacts for Caltrans for review.

If you have any questions, please feel free to contact Jaden Oloresisimo, the project coordinator, at [email protected] and refer to GTS # 07-LA-2024-04669.

Sincerely,

Anthony Higgins
Acting LDR/CEQA Branch Chief

cc: State Clearinghouse
ATTACHMENT NO. 2
Ordinance No. 2527

Page 1 of 4 ends

ORDINANCE NO. 2527

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA ADOPTING ZONE CHANGE
NO. 24-01, REZONING A PROPERTY (200 SOUTH AZUSA
AVENUE) IN THE NEIGHBORHOOD COMMERICAL MIXEDUSE ZONE (NMU) TO SERVICE COMMERCIAL MIXEDUSE (SMU) WITHIN THE AUTO PLAZA OVERLAY The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, the applicant, Boyd Sumner of Envision Motors, filed with the City a verified application requesting approval of a precise plan (Precise Plan No. 24-01) to:

Allow the demolition of an existing auto dealership and an operating gas station and the construction of a new two-story 85,390 square foot dealership building on a certain property described as:

1. The project includes a zone change to rezone a portion of the overall Project site for a property located at 200 South Azusa Avenue from Neighborhood Commercial Mixed-Use (NMU) to Service Commercial Mixed-Use (SMU) within the Auto Plaza Overlay Zone.

Ordinance No. 2527

Page 2 of 4 ends

2. The project includes a Precise Plan to allow the demolition of an existing auto dealership and gas station and construction of a new two-story 85,390 square foot dealership building.

WHEREAS, Precise Plan No. 24-01 and Zone Change No. 24-01 (the “Project”) are considered a “project” pursuant to the terms of the California Environmental Quality Act (CEQA); and
WHEREAS, the City, through its environmental consultant, prepared an Initial Study and Mitigated Negative Declaration for the Project; and WHEREAS, prior to introducing this Ordinance, the City Council adopted Resolution No. 2025-7, adopting a Mitigated Negative Declaration for the Project and approving a Mitigation Monitoring and Reporting Program; and
WHEREAS, the City Council has duly considered all information presented to it, including written staff reports and any testimony provided at the public hearing, with all testimony received being made a part of the public record.

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

SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein.

SECTION 2. Consistency with General Plan. Based on the evidence presented, Zone Change No. 24-01 is found to be consistent with the City’s General Plan.

SECTION 3. Approval of Zone Change. The City Council hereby approves Zone Change No. 24-01, changing the zoning designation for subject property as set forth on Exhibit A and amending the Zoning Map of the City of West Covina accordingly.

SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of West Covina hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 5. Certification. The City Clerk shall certify passage of this ordinance and shall cause the same to be published as required by law.

SECTION 6. Effective Date. This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage.

Ordinance No. 2527

Page 3 of 4 ends

PASSED, APPROVED AND ADOPTED on this _____ day of ______, 2025.

Tony Wu
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. 2527 was introduced at a regular meeting of the City Council held on the 4th day of February, 2025, and adopted at a regular meeting of the City Council held on the ____ day of _____, 2025, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk
Ordinance No. 2527

Page 4 of 4 ends

EXHIBIT A
Subject Property:
200 S. Azusa Avenue
Indicates the area to be changed from “Neighborhood Commercial Mixed-Use” (NMU) to “Service Commercial Mixed-Use” (SMU).

RESOLUTION NO. 2025-8

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

WEST COVINA, CALIFORNIA, APPROVING PRECISE
PLAN NO. 24-01 FOR THE PROPERTY LOCATED AT 1800
EAST GARVEY AVENUE SOUTH AND 200 SOUTH AZUSA
AVENUE
The City Council of the City of West Covina hereby finds and declares as follows:

WHEREAS, the applicant, Boyd Sumner of Envision Motors, filed with the City a verified application requesting approval of a precise plan (Precise Plan No. 24-01) to:

Allow the demolition of an existing auto dealership and an operating gas station and the construction of a new two-story 85,390 square foot dealership building on a certain property described as:

Assessor’s Parcel No. 8478-007-031, -025, and -042 in the records of the Los Angeles County Assessor; and
WHEREAS, the applicant also filed an application requesting approval of a zone change (Zone Change No. 24-01) to alter a portion of the project site currently zoned Neighborhood Commercial Mixed Use (NMU) to Service Commercial Mixed Use (SMU) within the Auto Plaza Overlay Zone; and
WHEREAS, Precise Plan No. 24-01 and Zone Change No. 24-01 (the “Project”) are considered a “project” pursuant to the terms of the California Environmental Quality Act (CEQA); and
WHEREAS, the City, through its environmental consultant, prepared an Initial Study and Mitigated Negative Declaration for the Project; and WHEREAS, pursuant to CEQA Guidelines Section 15074(a), the Planning Commission is required to consider the proposed Mitigated Negative Declaration before making a recommendation to the City Council; and
WHEREAS, pursuant to Chapter 26 (Zoning) of the West Covina Municipal Code, the Planning Commission is the decisionmaking authority on precise plan applications; and
WHEREAS, on December 10, 2024, the Planning Commission conducted a duly noticed public hearing to consider in part Precise Plan No. 24-01; and WHEREAS, at the conclusion of the public hearing, the Planning Commission approved Precise Plan 24-01; however, it did not adopt the Mitigated Negative Declaration, which must be adopted by the City Council before approval of Precise Plan No. 24-01; and
WHEREAS, on February 4, 2025, the City Council conducted a duly noticed public hearing to consider the Project; and
WHEREAS, prior to adopting this Resolution, the City Council adopted Resolution No. 2025-7, adopting a Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program for the Project, and introduced Ordinance No. 2527 changing the zoning for the property located at 200 South Azusa Avenue to Service Commercial Mixed-Use which is necessary to develop an auto dealership.

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

SECTION 1. Recitals. The foregoing recitals are true and correct and are incorporated herein.

SECTION 2. Precise Plan Findings. On the basis of the evidence presented, both oral and documentary, the City Council makes the following findings required by Section 26- 213 of Chapter 26 the West Covina Municipal Code:
a. The proposed development plans and the uses proposed are consistent with the General Plan and any applicable specific plan.

The Project site is designated as “Commercial” in the City’s General Plan and is consistent with the General Plan’s goals. The subject property is located south of the Interstate 10 Freeway and is easily accessed via N. Azusa Avenue and E. Garvey Avenue South. The Project site is adjacent to commercial properties to the North, East, and South and West.
b. The proposed development is consistent with adopted development standards for the zone and complies with all other applicable provisions of the Municipal Code.

The Project proposal is to demolish the existing dealership building and gas station to allow for the construction of an 85,390 square two-story dealership building. The proposal complies with the requirements of the Service Commercial Mixed-Use (SMU) Zone and the Auto Plaza Overlay Zone.
c. Granting the permit would not be detrimental to the public interest, health, safety, and welfare and would not unreasonably interfere with the use or enjoyment of property in the vicinity of the subject property.

The proposed Project is surrounded by commercial uses, including other dealership properties. Therefore, granting the permit would not be detrimental to the public interest, health, safety, and welfare would not unreasonably interfere with the use or enjoyment of property in the vicinity of the subject property.
d. The site is physically suitable for the type, density and intensity of the development being proposed, including vehicle access and circulation, utilities, and the absence of physical constraints.

The site will be physically suitable for the type, density and intensity of the development being proposed. The Project site is visible from the surrounding areas, which includes the Interstate 10 Freeway and commercial buildings. Vehicles will be able to access the Project site via S. Azusa Avenue and E. Garvey Avenue South.
e. The architecture, site layout, location, shape, bulk and physical characteristics of the proposed development are compatible with the existing and future land uses, and do not interfere with orderly development in the vicinity.

The architectural style of the building is modern. The building will primarily be composed of large glass panels. The use does not interfere with the orderly development in the vicinity.

SECTION 3. Precise Plan Approval. The City Council approves Precise Plan No. 24-01, subject to the provisions of the West Covina Municipal Code, provided that the physical development of the herein described property shall conform to said plan and the conditions of approval set forth herein which, except as otherwise expressly indicated, shall be fully performed and completed or shall be secured by bank or cash deposit satisfactory to the Deputy Community Development Director, before the use or occupancy of the property is commenced and before the Certificate of Occupancy is issued.

SECTION 4. Limitations on Effectiveness of Precise Plan. The Precise Plan shall not be effective for any purpose until the applicant (or a duly authorized representative) has filed at the office of the Community Development Director his/her affidavit stating he/she is aware of, and accepts, all conditions of this Precise Plan as set forth below. Additionally, no permits shall be issued until the applicant (or a duly authorized representative) pays all costs associated with the processing of this applications for this project pursuant to City Council Resolution No. 8690.

SECTION 5. Effective Date of Precise Plan. The Precise Plan shall not be effective until Ordinance No. 2527 takes effect.

SECTION 6. Costs of Enforcement Activities. The costs and expenses of any enforcement activities, including, but not limited to, attorneys’ fees, caused by the applicant’s violation of any condition imposed by this approval or any provision of the West Covina Municipal Code shall be paid by the applicant.

SECTION 7. Conditions of Approval. The Precise Plan is subject to the following conditions:

PLANNING DIVISION
a. Comply with the plans reviewed by the City Council on February 4, 2025. b. These conditions of approval shall be printed on, or attached to, the working drawings submitted to the Building Division for approval.
c. That the project complies with all requirements of the “Service Commercial MixedUse” (SMU) Zone and all other applicable standards of the West Covina Municipal Code.
d. This approval is to allow for the construction of a new two-story 85,390 square foot automobile dealership building. The first floor will be 42,890 square feet, and will consist of a showroom, vehicle delivery rooms, offices, detail bays (used to clean/polish vehicles for display), and other facilities such as a customer lounge room, employee lunchrooms, offices, restrooms and storage rooms. The second floor will be 42,500 square feet with a second-floor roof overhang of 8,920 square feet and will consist of a showroom, an employee lunchroom, conference rooms, offices, restrooms, and storage rooms.
e. The approved use shall not create a public nuisance as defined under Section 15-200 of the West Covina Municipal Code.
f. The approved use shall be in compliance with the Noise Ordinance (Chapter 15). g. This Precise Plan approval shall become null and void if the building permit is not obtained within two (2) years of the date of this approval. h. The applicant shall sign an affidavit accepting all conditions of this approval. i. That any proposed change to the approved site plan, floor plan or elevations be reviewed by the Planning, Building, Fire and Police Departments and that the written authorization of the Community Development Director shall be obtained prior to implementation.
j. All outstanding fees and Development Impact Fees will be due at the time of building permit issuance.
k. All new gutters and downspouts shall not project from the vertical surface of the building pursuant to Section 26 568 (a) (3).
l. This approval does not include approval of signs; a separate sign permit shall be obtained. All signs shall be required to comply with the City of West Covina Sign Code.
m. All approved materials and colors shall be clearly indicated on the plans. n. All new ground-mounted, wall-mounted and/or roof-mounted equipment not shown on the approved plans shall be screened from all views, in a manner that is architecturally compatible with the main building. Plans and elevations indicating the type of equipment and method of concealment shall be submitted to the Community Development Director for review and approval prior to the issuance of building permits. o. The location of new electrical transformers, vaults, antennas, mechanical and all other equipment not indicated on the approved plans must be approved by the Community Development Director prior to the issuance of the building permit. Provide construction details prior to the issuance of a building permit.
p. The parking lot shall be resurfaced/repaired and restriped so that there are no visible cracks and/or holes on the surface prior to Building permit final. i. Parking lots or other paved areas with a cracked, broken or otherwise deteriorating surface, in excess of ten (10) percent of the surface area shall be considered a nuisance and shall be repaired.
q. The paved areas at the site shall be maintained clean and free of oil stains. All paved areas shall be pressure-washed as needed to maintain the site in a clean and orderly manner.
r. All new utilities shall be placed underground prior to the issuance of the Certificate of Occupancy. All relocated on-site utility service lines shall be underground when the cost or square footage of an addition or alteration exceeds 50% of the existing value or area per WCMC 23-273.
s. Any graffiti that appears on the property during construction shall be cleaned or removed on the same business day. During construction, the delivery of materials and equipment, outdoor operations of equipment, and construction activity shall be limited to the hours between 7:00 a.m. and 8:00 p.m.
t. Prior to the final building permit approval, a detailed landscape and irrigation plan in compliance with AB 1881 and executive order 13-29-15 shall be submitted for all planted areas to be affected by project. Plans shall include type, size and quantity of landscape materials and irrigation equipment. All vegetation areas shall be automatically irrigated, and a detailed watering program and water budget shall be provided. All damaged vegetation shall be replaced, and the site shall be kept free of diseased or dead plant materials and litter at all times. u. The applicant shall execute an indemnity agreement, in a form provided by the City and approved by the City Attorney, indemnifying the City against any, and all actions brought against the City in connection with the approvals set forth herein.

BUILDING DIVISION
a. The second sheet of building plans is to list all conditions of approval and to include a copy of the City Council Decision letter. This information shall be incorporated into the plans prior to the first submittal for plan check.
b. Plans prepared in compliance with the current Building Code shall be submitted to the Building Division for review prior to permit issuance.
c. Fees shall be paid to the County of Los Angeles Sanitation District prior to the issuance of the building permit.
d. The building shall be addressed as 1800 E. Garvey Ave. South, and an application to consolidate addresses shall be filed with the City prior to plan check submittal. e. In accordance with paragraph 5538(b) of the California Business and Professions Code, plans are to be prepared and stamped by a licensed architect. f. Structural calculations prepared under the direction of an architect, civil engineer or structural engineer shall be provided.
g. A geotechnical and soils investigation report is required, the duties of the soils engineer of record, as indicated on the first sheet of the approved plans, shall include the following:
i. Observation of cleared areas and benches prepared to receive fill; ii. Observation of the removal of all unsuitable soils and other materials; iii. The approval of soils to be used as fill material; iv. Inspection of compaction and placement of fill;
v. The testing of compacted fills; and
vi. The inspection of review of drainage devices.
h. The owner shall retain the soils engineer preparing the Preliminary Soils and/or Geotechnical Investigation accepted by the City for observation of all grading, site preparation, and compaction testing. Observation and testing shall not be performed by another soils and/or geotechnical engineer unless the subsequent soils and/or geotechnical engineer submits and has accepted by the Public Works Department, a new Preliminary Soils and/or Geotechnical Investigation. i. A grading and drainage plan shall be approved by the Engineering Division prior to the issuance of the building permit. The grading and drainage plan shall indicate how all storm drainage including contributory drainage from adjacent lots is carried to the public way or drainage structure approved to receive storm water. j. Stormwater Planning Program LID Plan Checklist (MS4-1 FORM) completed by Engineer of Record shall be copied on the first sheet of Building Plans and on the first sheet of Grading Plans. When applicable per the LID plan checklist, LID plan shall be approved through the Engineering Division prior submitting grading plans for review.

The form can be found at the following link:
https://www.westcovina.org/home/showdocument?id=18427.
k. All State of California disability access regulations for accessibility shall be complied with.
l. Approval is required from the Los Angeles County Health Department for food handling and/or storage.
m. The property shall be surveyed, and the boundaries marked by a land surveyor licensed by the State of California.
n. Foundation inspection will not be made until the excavation has been surveyed and the setbacks are determined to be in accordance with the approved plans by a land surveyor licensed by the State of California. THIS NOTE IS TO BE PLACED ON THE FOUNDATION PLAN IN A PROMINENT LOCATION.
o. Separate application and plan review is required for Electrical plans. p. Separate application and plan review are required for Mechanical plans. q. Separate application and plan review are required for Plumbing plans. r. Plumbing fixtures shall be provided as required by Chapter 4 of the California Plumbing Code. Additional fixtures may be required if not in compliance. s. Project shall comply with the CalGreen Non-Residential mandatory requirements. t. No form work or other construction materials will be permitted to encroach into adjacent property without written approval of the affected property owner. u. A demolition permit is required for any existing buildings which are to be demolished. v. Designated rooms or space used to store large quantities of motor vehicles on the first floor shall be separated from the rest of the showroom of Business Group B Occupancy as well as the office spaces at the second floor and be classified as a parking garage of Storage Group S-2 Occupancy per Section 311 of the Building Code. The parking garage shall also be separated from the portion used for repair garage of Storage Group S-1 Occupancy per Table 508.4. Because of the separation requirement, the stairway communicating between the 1st floor parking garage and 2nd floor office shall be enclosed with the fire-resistance rating as required by the Building Code. Furthermore, this interior exit stairway shall discharge directly to the exterior of building unless the conditions per the exceptions under Section 1028.2 are met.
w. Mechanical ventilation in accordance with the Los Angeles County Building Code is required for the enclosed parking garage.
x. Prior to the issuance of the building permit, a written consent shall be obtained from the current easement holder(s) for any proposed development encroaching into existing easement(s).
y. All fire sprinkler hangers must be designed, and their location approved by an engineer or an architect. Calculations must be provided indicating that the hangers are designed to carry the tributary weight of the water filled pipe plus a 250-pound point load. A plan indication this information must be stamped by the engineer or the architect and submitted for approval prior to issuance of the building permit. z. Separate permits are required for Fire Sprinklers.
aa.The proposed site is a combination of lots. A parcel merger shall be processed prior to the issuance of the building permit.

ENGINEERING DIVISION
a. The second sheet of building plans, grading plans and/or offsite improvement plans is to list all conditions of approval and to include a copy of the City Council Decision letter. This information shall be incorporated into the plans prior to the first submittal for plan check.
b. The building shall be addressed as 1800 East Garvey Avenue South and an application to assign address shall be filed with Engineering Division prior to plan check submittal.
c. Reconstruct the two driveway approaches located along East Garvey Avenue South and one driveway approach on South Azusa Avenue in accordance with SPPWC Standard Plan 110-2, and as directed by the City Engineer or his/her designee. d. Close existing two driveway aprons along East Garvey Avenue South and one driveway along South Azusa Avenue, and install necessary improvements (parkway, landscape, sidewalk, curb and gutter, any others as applicable) to match required adjacent sections, and as directed by the City Engineer or his/her designee. e. Remove and replace broken and off grade sidewalk in accordance with SPPWC standard plan 113-2, and as directed by the City Engineer or his/her designee. f. Remove and replace broken and off grade curb and gutter in accordance with SPPWC Standard Plan 120-2, and as directed by the City Engineer or his/her designee.
g. The approved building address(es) shall be painted on the curb to the City’s standards as required by the Public Works Inspector prior to final inspection. h. Relocate water meter from the sidewalk as directed by the City Engineer or his/her designee.
i. Rehabilitate existing AC street pavement along the length of the property frontage to the centerline of the street as indicated below, and as directed by the City Engineer or his/her designee.
j. Underground all utility services to the property.
k. Prior to the final of the building permit(s), an inspection is required by the Public Works inspector.
l. A geotechnical and soils investigation report is required, the duties of the soils engineer of record, as indicated on the first sheet of the approved plans, shall include the following:
i. Observation of cleared areas and benches prepared to receive fill; ii. Observation of the removal of all unsuitable soils and other materials; iii. The approval of soils to be used as fill material; iv. Inspection of compaction and placement of fill;
v. The testing of compacted fills; and
vi. The inspection of review of drainage devices.
m. The owner shall retain the soils engineer preparing the Preliminary Soils and/or Geotechnical Investigation accepted by the City for observation of all grading, site preparation, and compaction testing. Observation and testing shall not be performed by another soils and/or geotechnical engineer unless the subsequent soils and/or geotechnical engineer submits and has accepted by the Public Works Department, a new Preliminary Soils and/or Geotechnical Investigation. n. A grading and drainage plan shall be approved prior to issuance of the building permit. The grading and drainage plan shall indicate how all storm drainage including contributory drainage from adjacent lots is carried to the public way or drainage structure approved to receive storm water.
o. Stormwater Planning Program LID Plan Checklist (Form MS4-1 PC) completed by Engineer of Record shall be copied on the first sheet of Grading Plans. The form can be found at the following link:
https://www.westcovina.org/home/showdocument?id=18427.
p. Project shall be reviewed and approved by the City Traffic Engineer, prior to the issuance of permits. Any improvement measures needed as a result of findings from the traffic study or VTM Analysis shall be made at the sole cost to the property owner/developer.
q. A lot merger shall be submitted for review and approval.

FIRE DEPARTMENT
Based on the preliminary information received, the Fire Department Requirements* for the above-noted project are:
a. NFPA 13D/13R/13 Fire Sprinkler System.
b. NFPA 14 – Standpipe System/Yard Standpipes.
c. NFPA 72 – Fire Alarm/Fire Sprinkler Monitoring System. d. NFPA 17/17A – Dry/Wet Chemical Extinguishing System.* e. NFPA 10 – Portable Fire Extinguishers.
f. New Fire Flow Test Required.
g. Required Fire Flow of 2,000 GPM @ 20 PSI for two (2) hours. h. A minimum 20-foot-wide fire land shall be provided throughout the lot. i. An approved Fire Department turnaround may be required upon review of final architectural drawings.
*NOTE: Additional Fire Department Requirements may be set upon a future review of a full set of architectural plans.

SECTION 8. Certification. The City Clerk shall certify to the adoption of this Resolution and shall enter it into the book of original resolutions.

APPROVED AND ADOPTED on this 4th day of February, 2025.

Tony Wu
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. 2025-8 was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 4th day of February, 2025, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Lisa Sherrick
Assistant City Clerk

RESPONSES TO COMMENTS
Envision Motors
Mercedes Benz Dealership Project
Initial Study and Mitigated Negative Declaration (IS/MND) CEQA Analysis Prepared for:

City of West Covina
Planning Division
1444 W. Garvey Avenue S
West Covina, CA 91790
Prepared by:

UltraSystems Environmental Inc.
16431 Scientific Way
Irvine, CA 92618-4355
Telephone: 949-788-4900
FAX: 949/788-4901
December 2024
Project No. 7212
ATTACHMENT NO. 4
 TABLE OF CONTENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page i Responses to Comments December 2024

TABLE OF CONTENTS

1.0 INTRODUCTION........................................................................................................................................ 1

1.1 Background of Environmental Review Process for the Project.............................................1

1.2 Tribal Consultation...................................................................................................................................1

1.3 Responses to Comments ........................................................................................................................2

1.4 Intended Uses of this IS/MND .............................................................................................................2

2.0 PUBLIC COMMENT LETTERS ............................................................................................................... 4

3.0 ERRATA....................................................................................................................................................... 7

4.0 FINAL MITIGATION MONITORING AND REPORTING PROGRAM............................................ 8

ATTACHMENTS
Attachment A Notice of Intent to Adopt a Mitigated Negative Declaration (NOI) Attachment B Tribal Consultation Letters
Attachment C Los Angeles County Sanitation Districts Comment Letter Attachment D Caltrans Comment Letter
 RESPONSES TO COMMENTS 
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1.0 INTRODUCTION
This Responses to Comments (RTC) document, in conjunction with the Draft Initial Study/Mitigated Negative Declaration (IS/MND) responds to comments on the proposed Envision Motor Mercedes Benz Dealership Project (proposed project). While the State of California Environmental Quality Act (CEQA) Guidelines do not require a final initial study or the preparation of formal responses to comments received during the public review period for an Initial Study/Mitigated Negative Declaration,1 the City of West Covina is making available responses to the comments it received during the public review process, to provide further disclosure about the proposed project.

1.1 Background of Environmental Review Process for the Project The IS/MND, along with a Notice of Intent to Adopt a Mitigated Negative Declaration (NOI, see Attachment A), was released for public and agency review on October 28, 2024, with a 20-day review period ending on November 18, 2024.

1.2 Tribal Consultation
The City of West Covina (lead agency) initiated AB 52 outreach to local tribes for the proposed project. The City of West Covina prepared and prepared and sent letters via email on September 5, 2024, from Miriam Machado, Associate Planner with the City Planning Division to the 13 tribes listed below for AB 52 contact, informing them of the project. The letters conveyed that the recipient has 30 days from the receipt of the letter to request AB 52 consultation regarding the project. All AB 52 letters are found in Attachment B.
• Andrew Salas, Chairperson: Gabrieleño Band of Mission Indians - Kizh Nation, • Christina Martinez, Secretary: Gabrieleño Band of Mission Indians - Kizh Nation, • Anthony Morales, Chairperson: Gabrieleno/Tongva San Gabriel Band of Mission Indians, • Sandonne Goad, Chairperson: Gabrielino/Tongva,
• Robert Dorame, Chairperson: Gabrielino Tongva Indians of California Tribal Council, • Christina Conley, Cultural Resources Administrator: Gabrielino Tongva Indians of California Tribal Council,
• Sam Dunlap, Cultural Resources Director: Gabrielino-Tongva Tribe, • Charles Alvarez, Chairperson: Gabrielino-Tongva Tribe, • Steven Estrada, Chairperson: Santa Rosa Band of Cahuilla Indians, • Vanessa Minott, Tribal Administrator: Santa Rosa Band of Cahuilla Indians, • Jessica Valdez, Cultural Resource Specialist: Soboba Band of Luiseño Indians, • Isaiah Vivanco, Chairperson: Soboba Band of Luiseño Indians, • Joseph Ontiveros, THPO: Soboba Band of Luiseño Indians.

There has been one response to the letters to date. The Administrative Specialist for the Gabrieleño Band of Mission Indians – Kizh Nation replied by email on September 5, 2024, and followed up the following day September 6, 2024, requesting consultation (M. Machado, personal communication to S. O’Neil; September 10, 2024.) The Kizh Nation informed Ms. Machado that the project area is in an area with a high potential to impact Tribal Cultural resources due to being in the area of the 1 CEQA only requires the lead agency to respond to comments that are received in response to an environmental impact report (Title 14, California Code of Regulations, § 15088, Evaluation of and Response to Comments).  RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 2 Responses to Comments December 2024
traditional community of Wininga as well as sacred water ways and traditional trade routes. In place of a meeting the Kizh Nation sent Ms. Machado attachments providing information of the Tribe’s history, traditional territory, maps and excerpts from published sources providing their history, cultural background and settlements. The Kizh Nation also submitted two recommended mitigation measures. These measures were adopted following approval by the applicant and Ms. Machado informed the tribe October 8, 2024, that they had been adopted (M. Machado, personal communication to S. O’Neil; October 7, 2024; October 8, 2024). On October 11, the Kizh Nation acknowledged that their mitigation measures had been adopted and at the tribe’s request on October 14th Ms. Machado confirmed the use of their mitigation measures. With this consultation was concluded (M. Machado, personal communication to S. O’Neil; October 15, 2024).

The Native American Heritage Commission’s SLF search was negative for recorded traditional sites in the project region. No resources as defined by Public Resources Code § 21074 have been identified.

Additionally, the project site has not been recommended for historic designation for prehistoric and TCRs. No specific tribal resources have been identified.

No prehistoric or archaeological resources were observed during the field survey. The SCCIC CHRIS records search was negative for prehistoric resources either in the project site or the surrounding

0.5-mile buffer zone.

Land at the project site has been extensively disturbed due to road and freeway on-ramp construction surrounding the property and development of the car dealership itself. No human remains have been previously identified or recorded onsite. Therefore, the potential for subsurface prehistoric cultural deposits is considered to be low.

The project proposes demolition of several buildings and shallow grading. Grading activities associated with development of the project would involve new subsurface disturbance and could result in the unanticipated discovery of unknown human remains, including those interred outside of formal cemeteries. Implementation of mitigation measure TCR-1 provides for tribal monitoring of subsurface construction work; in the event of an unexpected discovery implementation of TCR-2 provides for dealing with the findings by the tribe; and TCR-3 deals with the unanticipated discovery of human remains and associated funerary objects. These three TCR MMs are recommended to ensure that impacts related to the accidental discovery of cultural resources and human remains would be less than significant.

1.3 Responses to Comments
This document provides a response to comments received on the IS/MND. One comment letter was received during the public review period. This letter is in Section 2.0, Public Comment Letters.

1.4 Intended Uses of this IS/MND
The IS/MND will be used by City of West Covina in considering approval of the proposed project. In accordance with CEQA Guidelines § 15074, the IS/MND will be used as the primary environmental document in consideration of all subsequent planning and permitting actions associated with the proposed project, to the extent such actions require CEQA compliance and as otherwise permitted under applicable law.
 RESPONSES TO COMMENTS 
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15074. CONSIDERATION AND ADOPTION OF A NEGATIVE DECLARATION OR MITIGATED NEGATIVE DECLARATION.
(a) Any advisory body of a public agency making a recommendation to the decision-making body shall consider the proposed negative declaration or mitigated negative declaration before making its recommendation.
(b) Prior to approving a project, the decision-making body of the lead agency shall consider the proposed negative declaration or mitigated negative declaration together with any comments received during the public review process. The decision-making body shall adopt the proposed negative declaration or mitigated negative declaration only if it finds on the basis of the whole record before it (including the initial study and any comments received), that there is no substantial evidence that the project will have a significant effect on the environment and that the negative declaration or mitigated negative declaration reflects the lead agency’s independent judgment andanalysis.
(c) When adopting a negative declaration or mitigated negative declaration, the lead agency shall specify the location and custodian of the documents or other material which constitute the record of proceedings upon which its decision is based. (d) When adopting a mitigated negative declaration, the lead agency shall also adopt a program for reporting on or monitoring the changes which it has either required in the project or made a condition of approval to mitigate or avoid significant environmental effects. (e) A lead agency shall not adopt a negative declaration or mitigated negative declaration for a project within the boundaries of a comprehensive airport land use plan or, if a comprehensive airport land use plan has not been adopted, for a project within two nautical miles of a public airport or public use airport, without first considering whether the project will result in a safety hazard or noise problem for persons using the airport or for persons residing or working in the project area.
(f) When a non-elected official or decision-making body of a local lead agency adopts a negative declaration or mitigated negative declaration, that adoption may be appealed to the agency’s elected decision-making body, if one exists. For example, adoption of a negative declaration for a project by the County’s planning commission may be appealed to the City Council. A local lead agency may establish procedures governing such appeals.

Upon review and consideration of the IS/MND, the City Council may take action to adopt, revise, or reject the proposed project. A decision to approve the proposed project would be made in a resolution recommending certification of the IS/MND as part of the consideration of the proposed project. The City of West Covina has prepared this IS/MND and has determined that the environmental impacts of the proposed project have been reduced to a less than significant level through mitigation measures.
 RESPONSES TO COMMENTS 
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2.0 PUBLIC COMMENT LETTERS
The following agencies and entitles submitted written comments on the IS/MND, during the public review period. The comment letters are provided in Attachment C of this document.

Letter Agency, Organization, or Individual Date
A Los Angeles County Sanitation District November 13, 2024 Comment
A-1:

The wastewater flow originating from the proposed project will discharge to a local sewer line, which is not maintained by the Districts, for conveyance to the Districts’ 24- inch diameter Cameron Trunk Sewer, Section 1, 2 & 3, located in South Azusa Avenue at East Walnut Creek Parkway. This trunk sewer has a capacity of 1.8 million gallons per day (mgd) and conveyed a peak flow of 0.2 mgd when last measured in 2015.

Response
A-1: This comment is noted.

Comment
A-2:

The expected average wastewater flow from the project, described in the Initial Study as 70,758 square foot (sf) auto sales, 13,489 sf office building and 2,395 sf service shop, is 10,013 gallons per day. A copy of the District’s average wastewater generation factors is available on our website at Table 1, Loadings for Each Class of Land Use.

Response
A-2: This comment is noted.

Comment
A-3:

The wastewater generated by the proposed project will be treated at the San Jose Creek Water Reclamation Plant (WRP) located adjacent to the City of Industry, which has a capacity of 100 mgd and currently processes an average recycled flow of 60.1 mgd. All biosolids and wastewater flows that exceed the capacity of the San Jose Creek WRP are diverted to and treated at the A.K. Warren Water Resource Facility (formerly known as the Joint Water Pollution Control Plant) in the City of Carson, which has a capacity of 400 mgd and currently processes an average flow of 248.3 mgd.

Response
A-3: This comment is noted.

Comment
A-4:

The Districts are empowered by the California Health and Safety Code to charge a fee to connect facilities (directly or indirectly) to the Districts’ Sewerage System or to increase the strength or quantity of wastewater discharged from connected facilities. This connection fee is used by the Districts for its capital facilities. Payment of a connection fee may be required before this project is permitted to discharge to the Districts’ Sewerage System. For more information and a copy of the Connection Fee Information Sheet, go to www.lacsd.org, under Services, then Wastewater (Sewage) and select Rates & Fees. In determining the impact to the Sewerage System and applicable connection fees, the Districts will determine the user category (e.g. Condominium, Single Family Home, etc.) that best represents the actual or anticipated use of the parcel(s) or facilities on the parcel(s) in the development. For more specific information regarding the connection fee application procedure and fees, please contact the Districts’ Wastewater Fee Public Counter at (562) 908-4288, extension 2727.  RESPONSES TO COMMENTS 
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Letter Agency, Organization, or Individual Date
Response
A-4: This comment is noted.

Comment
A-5:

In order for the Districts to conform to the requirements of the Federal Clean Air Act (CAA), the capacities of the Districts’ wastewater treatment facilities are based on the regional growth forecast adopted by the Southern California Association of Governments (SCAG). Specific policies included in the development of the SCAG regional growth forecast are incorporated into clean air plans, which are prepared by the South Coast and Antelope Valley Air Quality Management Districts in order to improve air quality in the South Coast and Mojave Desert Air Basins as mandated by the CAA. All expansions of Districts’ facilities must be sized and service phased in a manner that will be consistent with the SCAG regional growth forecast for the counties of Los Angeles, Orange, San Bernardino, Riverside, Ventura, and Imperial. The available capacity of the Districts’ treatment facilities will, therefore, be limited to levels associated with the approved growth identified by SCAG. As such, this letter does not constitute a guarantee of wastewater service but is to advise the City that the Districts intend to provide this service up to the levels that are legally permitted and to inform the City of the currently existing capacity and any proposed expansion of the Districts’ facilities.

Response
A-5: This comment is noted.

Comment
A-6:

Caltrans strongly recommends that auto-oriented projects, like the one proposed, be required to contribute Complete Streets infrastructure as a condition of approval.

Complete Streets incorporate high-quality infrastructure for pedestrians, bicyclists, and transit riders, prioritizing the needs of all users, regardless of age or ability. The most effective methods to reduce pedestrian and bicyclist exposure to vehicles are through physical design and geometrics. These methods include the construction of physically separated facilities such as Class IV bike lanes, wide sidewalks, pedestrian refuge islands, landscaping, street furniture, and reductions in crossing distances through roadway narrowing. The implementation of Complete Streets leads to positive outcomes, including improved regional connectivity, enhanced air quality, reduced traffic congestion, better first/last-mile connections for transit users, and overall improved safety for all modes of transportation.

Final design requirements for any proposed changes to infrastructure within or along Caltrans Right-of-way will be determined by the Office of Permits. At the time of permit application there will be rounds of review and corrections to ensure all design, Rightof-way, access management, water runoff, environmental, and statutory requirements are being addressed.

Caltrans District 7 Office of Permits contact information:

Mailing Address: 100 S Main Street, Ste 100 Los Angeles, CA 90012 Office Hours: 8:00 a.m. to 5:00 p.m. Monday-Friday
Phone: 213-897-3631 | Fax: 213-897-0420
 RESPONSES TO COMMENTS 
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Letter Agency, Organization, or Individual Date
E-mail: [email protected]
Caltrans also recommends limiting large truck travel and construction traffic to offpeak commute hours. A permit for any heavy construction equipment and or materials that require the use of oversized transport vehicles on State highways. If construction traffic is expected to cause issues on any State facilities, please submit a construction traffic control plan detailing potential impacts for Caltrans for review.

Response
A-6:

The proposed project does not propose altering public roads, including Caltrans ROW. The proposed project plans to maintain the existing frontages on Garvey Avenue and Azusa Avenue. However, it does propose reducing vehicular right-of-way access points from six to four; restricting vehicular access from North Azusa Avenue and completely removing two access points on either side of the northbound transit stop. This would reduce potential conflict points between pedestrians and public transit users with automobiles, a primary goal of the Complete Streets concept. Further, the project would incorporate mitigation measure Trans-1, which would ensure that all driveways have proper corner sight distance to ensure traffic and pedestrian safety.

Although the project is an auto-oriented project, this is a common land use in this area and the proposed project would replace an existing auto dealer. Additionally, the VMT analysis concluded that there would be less than significant impacts due to the low traffic generation the project would produce.

Lastly, the proposed project would not have large trucks, such as car cargo trucks, to the project site. All cars would be delivered to a service area located primarily along the south and east sides of the San Gabriel Valley, from just north of the San Bernardino Freeway (I-10) to south of the Pomona Freeway (I-60). Cars would then be individually drive to the proposed dealership.
 RESPONSES TO COMMENTS 
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3.0 ERRATA
In Section 4.4, Biological Resources, the text of the analysis for Threshold 4.4 e) concludes that, regarding the question of whether the project “would conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance,” there would be No Impact. However, an erroneous entry in the matrix table at the beginning of Section 4.4 indicates that the impact would be Less Than Significant with Mitigation Incorporated. The matrix table entry has been revised to No Impact.

In the Mitigation and Monitoring Plan under Biological Resources, there is an erroneous entry for a mitigation measure relating to Threshold 4.4 e). That entry has been deleted.

This error does not alter the conclusions of the Initial Study/Mitigated Negative Declaration nor the significance of an impact.
 RESPONSES TO COMMENTS 
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4.0 FINAL MITIGATION MONITORING AND REPORTING PROGRAM
The Final Mitigation Monitoring and Reporting Program (MMRP) has been prepared in conformance with § 21081.6 of the Public Resources Code and § 15097 of the CEQA Guidelines, which requires all state and local agencies to establish monitoring or reporting programs whenever approval of a project relies upon a MND or an EIR. The MMRP ensures implementation of the measures being imposed to mitigate or avoid the significant adverse environmental impacts identified through the use of monitoring and reporting. Monitoring is generally an ongoing or periodic process of project oversight; reporting generally consists of a written compliance review that is presented to the decision-making body or authorized staff person.

It is the intent of the MMRP to: (1) provide a framework for document implementation of the required mitigation; (2) identify monitoring/reporting responsibility; (3) provide a record of the monitoring/reporting; and (4) ensure compliance with those MMs that are within the responsibility of the City of West Covina to implement.

The following table lists impacts, mitigation measures adopted by the City Council in connection with approval of the proposed project, level of significance after mitigation, responsible and monitoring parties, and the project phase in which the measures are to be implemented.

Only those environmental topics for which mitigation is required are listed in this Mitigation Monitoring and Reporting Program.
 RESPONSES TO COMMENTS 
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Table 3.0-1

FINAL MITIGATION MONITORING AND REPORTING PROGRAM

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE

4.4 Biological Resources
Threshold 4.4 a)
Would the project
have a substantial
adverse effect, either
directly or through
habitat modifications,
on any species
identified as a
candidate, sensitive,
or special status
species in local or
regional plans,
policies, or
regulations, or by the
California Department
of Fish and Game or
U.S. Fish and Wildlife
Service?
MM BIO-1: Pre-Construction Breeding Bird Survey:

To be in compliance with the MBTA and Fish and Game Code, and to avoid impacts or take of migratory non-game breeding birds, their nests, young, and eggs, the following measures will be implemented. The measures below will help to reduce direct and indirect impacts caused by construction on
migratory non-game breeding birds to less than significant levels.
• Project activities that will remove or disturb
potential nest sites, such as open ground, trees,
shrubs, grasses, or burrows, during the breeding
season would have a potential significant impact if
migratory non-game breeding birds are present.

Project activities that will remove or disturb
potential nest sites will be scheduled outside the
breeding bird season to avoid potential direct
impacts on migratory non-game breeding birds
protected by the MBTA and Fish and Game Code. The
breeding bird nesting season is typically from
February 15 through September 15, but can vary
slightly from year to year, usually depending on
weather conditions. Removing all physical features
that could potentially serve as nest sites will also
help to prevent birds from nesting within the project
• Project Applicant
• Qualified
Biologist
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. Before
Construction
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TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
site during the breeding season and during
construction activities.
• If project activities cannot be avoided during
February 15 through September 15, a qualified
biologist will conduct a pre-construction breeding
bird survey for breeding birds and active nests or
potential nesting sites within the limits of project
disturbance. The survey will be conducted at least
seven days prior to the onset of scheduled activities,
such as mobilization and staging. It will end no more
than three days prior to vegetation, substrate, and
structure removal and/or disturbance.
• If no breeding birds or active nests are observed
during the pre-construction survey or they are
observed and will not be impacted, project activities
may begin, and no further mitigation will be
required.
• If a breeding bird territory or an active bird nest is located during the pre-construction survey and will
potentially be impacted, the site will be mapped on
engineering drawings and a no activity buffer zone
will be marked (fencing, stakes, flagging, orange
snow fencing, etc.) a minimum of 100 feet in all
directions or 500 feet in all directions for listed bird species and all raptors. The biologist will determine
the appropriate buffer size based on the type of
activities planned near the nest and the type of bird
that created the nest. Some bird species are more
tolerant than others of noise and activities occurring
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TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
near their nest. This no-activity buffer zone will not
be disturbed until a qualified biologist has
determined that the nest is inactive, the young have
fledged, the young are no longer being fed by the
parents, the young have left the area, or the young
will no longer be impacted by project activities.

Periodic monitoring by a biologist will be performed
to determine when nesting is complete. Once the
nesting cycle has finished, project activities may
begin within the buffer zone.
• If listed bird species are observed within the project site during the pre-construction survey, the biologist
will immediately map the area and notify the
appropriate resource agency to determine suitable
protection measures and/or mitigation measures
and to determine if additional surveys or focused
protocol surveys are necessary. Project activities
may begin within the area only when concurrence is
received from the appropriate resource agency.
• Birds or their active nests will not be disturbed,
captured, handled or moved. Active nests cannot be
removed or disturbed; however, nests can be
removed or disturbed if determined inactive by a
qualified biologist.

Threshold 4.4 d)
Would the project
interfere substantially
with the movement of
Refer to Threshold 4.4 a) MM BIO-1 above. • Refer to above • Refer to above
• Refer to above
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TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
any native resident or
migratory fish or
wildlife species or
with established
native resident or
migratory wildlife
corridors, or impede
the use of native
wildlife nursery sites?

4.5 Cultural Resources
Threshold 4.5 b)
Cause a substantial
adverse change in the
significance of an
archaeological
resource pursuant to §
15064.5.

MM CUL 1:

If archaeological resources are discovered during
construction activities, the contractor will halt construction activities within a 50-foot diameter and notify the City of West Covina. The project applicant shall retain an
archaeologist who meets the Secretary of the Interior’s Professional Qualifications Standards for Archaeology who will be notified and afforded the necessary time to recover, analyze, and curate the find(s). The qualified archaeologist will recommend the extent of archaeological monitoring
necessary to ensure the protection of any other resources that may be in the area. Any identified cultural resources shall be recorded on the appropriate DPR 523 (A L) form and filed with the South Central Coastal Information Center.

Construction activities may continue on other parts of the project site while evaluation and treatment of prehistoric archaeological resources takes place.
• Project
Contractor
• Qualified
Archaeologist
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During
construction
activities
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TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
Threshold 4.5 c):

Disturb any human
remains, including
those interred outside
of formal cemeteries.

MM CUL2:

If human remains are encountered during excavations
associated with this project, all work will stop within a 30- foot radius of the discovery and the Los Angeles County Coroner will be notified (§ 5097.98 of the Public Resources Code). The Coroner will determine whether the remains are recent human origin or older Native American ancestry. If the coroner, with the aid of the supervising archaeologist, determines that the remains are prehistoric, they will contact the NAHC. The NAHC will be responsible for designating the Most Likely Descendant (MLD). The MLD (either an
individual or sometimes a committee) will be responsible for the ultimate disposition of the remains, as required by § 7050.5 of the California Health and Safety Code. The MLD will make recommendations within 24 hours of their notification by the NAHC. These recommendations may include scientific removal and nondestructive analysis of human remains and items associated with Native American burials (§ 7050.5 of the Health and Safety Code).
• Project
Contractor
• Qualified
Archaeologist
• Los Angeles
County Coroner
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During project
construction
activities

4.7 Geology and Soils
Threshold 4.7 f):

Would the project
directly or indirectly
destroy a unique
paleontological
resource or site or
MM GEO-1:

Prior to the issuance of the grading permit, the applicant shall provide a letter to the City of West Covina Planning Division , or designee, from a qualified paleontologist stating that the paleontologist has been retained to provide services for the project. The paleontologist shall develop, as needed, a Paleontological Resources Impact Mitigation Plan (PRIMP) to mitigate the potential impacts to unknown buried
• Project Applicant
• Qualified
Paleontologist
• Construction
Contractor
• Monitoring
• Assessment
• Recovery
• Curation

1. City of West
Covina

2. City of West
Covina

3. Prior to the
issuance of the
grading permit
 RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 14 Responses to Comments December 2024

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
unique geologic
feature?
paleontological resources that may exist onsite for the review and approval by the City. The PRIMP shall require that the paleontologist perform paleontological monitoring of any ground disturbing activities within undisturbed native
sediments during mass grading, site preparation, and
underground utility installation. The project paleontologist may reevaluate the necessity for paleontological monitoring after 50 percent or greater of the excavations have been completed. In the event paleontological resources are
encountered, ground-disturbing activity within 50 feet of the area of the discovery shall cease. The paleontologist shall examine the materials encountered, assess the nature and extent of the find, and recommend a course of action to further investigate and protect or recover and salvage those resources that have been encountered. Criteria for discard of specific fossil specimens will be made explicit. If the qualified paleontologist determines that impacts to a sample
containing significant paleontological resources cannot be avoided by project planning, then recovery may be applied.

Actions may include recovering a sample of the fossiliferous material prior to construction, monitoring work and halting construction if a significant fossil needs to be recovered, and/or cleaning, identifying, and cataloging specimens for curation and research purposes. Recovery, salvage and
treatment shall be done at the Applicant’s expense. All recovered and salvaged resources shall be prepared to the point of identification and permanent preservation by the paleontologist. Resources shall be identified and curated into an established accredited professional repository. The
 RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 15 Responses to Comments December 2024

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
paleontologist shall have a repository agreement in hand prior to initiating recovery of the resource.

4.9 Hazards and Hazardous Materials
Threshold 4.9 a):

Would the project
create a significant
hazard to the public or
the environment
through the routine
transport, use, or
disposal of hazardous
materials?
MM HAZ-1:

During project site grading on the Valero gas station site the project proponent shall periodically have soil samples tested for TPH-g, TH-d, MTBE, and TBA. Upon finding samples with concentrations of any of the contaminants at concentrations over environmental screening levels (ESLs) for commercial use, the project proponent shall: halt grading operations; shall retain a qualified environmental assessor to conduct soil sampling and testing to determine the extent of soil
contaminated with concentrations over ESLs; and shall then retain an environmental remediation company to remediate and/or remove the contaminated soil.
• Project Applicant
• Qualified
Environmental
Assessor
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During
Construction

4.18 Tribal Cultural Resources
Threshold 4.18 b):

Cause a substantial
adverse change in the
significance of a tribal
cultural resource that
is listed or eligible for
listing in the California
Register of Historical
Resources or in a local
register of historical
MM TCR-1:

Retain a Native American Monitor Prior to Commencement of Ground-Disturbing Activities
A. The project applicant/lead agency shall retain a Native American Monitor from or approved by the Gabrieleño Band of Mission Indians – Kizh Nation. The monitor shall be
retained prior to the commencement of any “grounddisturbing activity” for the subject project at all project locations (i.e., both on-site and any off-site locations that are included in the project description/definition and/or
• Project
Contractor
• Qualified
Archaeologist
• Los Angeles
County Coroner
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During project
construction
activities
 RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 16 Responses to Comments December 2024

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
resources as defined
in Public Resources
Code § 5020.1(k)?
required in connection with the project, such as public improvement work). “Ground disturbing activity” shall
include, but is not limited to, demolition, pavement removal, potholing, auguring, grubbing, tree removal, boring, grading, excavation, drilling, and trenching.

B. A copy of the executed monitoring agreement shall be submitted to the lead agency prior to the commencement of any ground-disturbing activity, or the issuance of any permit necessary to commence a ground-disturbing activity.

C. The monitor will complete daily monitoring logs that will provide descriptions of the relevant ground-disturbing
activities, the type of construction activities performed, locations of ground disturbing activities, soil types, culturalrelated materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or “TCR”), as well as any discovered Native American (ancestral) human remains and burial goods.

Copies of monitor logs will be provided to the project
applicant/lead agency upon written request to the Tribe.

D. On-site tribal monitoring shall conclude upon the latter of the following (1) written confirmation to the Kizh from a designated point of contact for the project applicant/lead agency that all ground-disturbing activities and phases that may involve ground-disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the Kizh to the  RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 17 Responses to Comments December 2024

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
project applicant/lead agency that no future, planned
construction activity and/or development/construction
phase at the project site possesses the potential to impact Kizh TCRs.

MM TCR-2:

Unanticipated Discovery of Tribal Cultural Resource Objects (Non-Funerary/Non-Ceremonial)
A. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., not less than the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the Kizh
monitor and/or Kizh archaeologist. The Kizh will recover and retain all discovered TCRs in the form and/or manner the Tribe deems appropriate, in the Tribe’s sole discretion, and for any purpose the Tribe deems appropriate, including for educational, cultural and/or historic purposes.
• Project
Contractor
• Qualified
Archaeologist
• Los Angeles
County Coroner
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During project
construction
activities
 RESPONSES TO COMMENTS 
7212/Envision Motors Mercedes Benz Dealership Project Page 18 Responses to Comments December 2024

TOPICAL AREA

IMPACT MITIGATION MEASURE RESPONSIBLE PARTY

MONITORING
ACTION

1. ENFORCEMENT
AGENCY

2. MONITORING
AGENCY

3. MONITORING
PHASE
MM TCR 3:

As specified by California Health and Safety Code § 7050.5, if human remains are found on the project site during
construction or during archaeological work, the Los Angeles County Coroner’s office shall be immediately notified and no further excavation or disturbance of the discovery or any nearby area reasonably suspected to overlie adjacent
remains shall occur until the Coroner has made the necessary findings as to origin and disposition pursuant to Public Resources Code § 5097.98. The Coroner would determine
within two working days of being notified if the remains are subject to his or her authority. If the Coroner recognizes the remains to be Native American, he or she shall contact the Native American Heritage Commission (NAHC) within 24
hours. The NAHC would make a determination as to the Most Likely Descendent.
• Project
Contractor
• Qualified
Archaeologist
• Los Angeles
County Coroner
• Field
Verification

1. City of West
Covina

2. City of West
Covina

3. During project
construction
activities
ATTACHMENT NO. 5

AGENDA ITEM NO. 6

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: February 4, 2025
TO: Mayor and City Council
FROM: Paulina Morales, City Manager
SUBJECT: CONSIDERATION OF A CORRECTIVE ACTION PLAN IN RESPONSE TO STATE AUDITOR REPORT 2024-801
RECOMMENDATION:

It is recommended that the City Council approve the following:

Proposed Corrective Action Plan in response to the Local High Risk Program Report 2024-801 issued by the State Auditor;

1. Authorize staff to transfer $1,787,000 from the Other Post-Employment Benefit (OPEB) Internal Service Fund back to the General Fund; and

2. Authorize staff to issue a Request for Proposals for investment management and advisory services to evaluate the City's full portfolio and recommend changes to maximize the return of assets.

3. BACKGROUND:

In December 2019, the State Auditor's Office informed the City of West Covina that it had been selected for review under the High-Risk Local Government Agency Audit Program. The State Auditor completed its audit and published its report on December 1, 2020. To view the report, please visit:
http://www.auditor.ca.gov/reports/2020-806/index.html.

In 2024, the State Auditor performed a follow-up review of the City and included its findings in Local High Risk Program Report No. 2024-801. Report No. 2024-801 provides an update regarding seven cities in the High-Risk Local Government Agency Audit Program, including West Covina. An excerpt of this report has been included as Attachment No. 1. To view the full report, please visit:
https://www.auditor.ca.gov/reports/2024-801/.

DISCUSSION:

In response to the report, the City must submit a Corrective Action Plan to the State. The report indicates that the City has fully addressed three (3) of the six (6) risk areas.

No. High-Risk Area Current Assessment
1 Continual Diminishing of Reserves Partially Addressed 2 Questionable Use of City Resources Partially Addressed 3 Financial Decisions Based on Insufficient Analyses Fully Addressed 4 Lack of Formal Financial Recovery Plan Fully Addressed 5 Inadequate Management of Purchase Cards Fully Addressed 6 Lack of Oversight to Ensure That Contracts Provide Best Value Partially Addressed The proposed Corrective Action Plan (Attachment No. 2) seeks to address the three remaining risk areas:

High Risk Area #1 – Continual Diminishing of Reserves
State Auditor Conclusion: Although the City’s general fund revenue is higher than its operational expenditures, the City has chosen to maintain the minimum recommended reserve level, which introduces higher risk in that it will not be able to address future financial needs.

State Auditor Recommendation to Address This Risk Area: West Covina should establish a general fund reserve level higher than its current 17 percent goal that is sufficient to mitigate current and future risks, including its pension related debt.

Proposed Corrective Action: The City will continue to review its Fund Balance policy annually and proposes maintaining an unassigned fund balance over the Government Finance Officers Association's (GFOA) recommended minimum of 17% and assigning a portion of its reserve for Pension and OPEB liabilities.

The proposal includes changes to the City's Fund Balance policy to increase the percent of reserves to 18% and reallocate excess fund balance transfers. Outside this plan, there are several strategies the City can take to ensure it maintains the proposed level of reserves. First, staff recommends transferring back the amount set aside for OPEB liabilities back to the General Fund. Second, staff recommends issuing a Request for Proposals for investment management and advisory services to evaluate the City's full portfolio and recommend changes to maximize the return of the City's assets. Investing in a Section 115 Pension Trust is one investment tool that would be included in the evaluation to determine the best rate of return.

High Risk Area #2 – Questionable Use of City Resources
State Auditor Conclusion: The City has not renegotiated its labor agreements with its employee unions as we recommended, but it has updated its fee schedule.

State Auditor Recommendation to Address This Risk Area: To limit its costs related to employee health care benefits, West Covina should renegotiate employee union agreements once the effects of the pandemic subside so that its employees contribute a reasonable percentage of their premiums. To determine that percentage, West Covina should consider options such as using survey data from comparably sized cities in its region.

Proposed Corrective Action: The City’s ability to lower its costs related to employee health care benefits is limited by the bargaining groups' willingness to negotiate. Thus, the City will continue to show good faith efforts to lower its costs related to employee health care benefits during renegotiations of its labor agreements.

It is important to note that in 2019, the City was out of contract with most if not all the nine employee unions. Since then, the City has negotiated three (3) year contracts with all employee unions. Most expired June 30, 2024, one expired December 31, 2024, and one expires June 30, 2025. At the time the City was evaluated for the 2024 Audit Report, the City was under negotiations with six (6) of the employee unions, under contract with two (2), and pending initiation of negotiations with one (1) union.

Negotiation requires the parties' agreement. Parties cannot be forced to negotiate; they must do so voluntarily. An outcome is not guaranteed. Thus, staff has committed to what it can guarantee, the City's good-faith effort to lower its overall contributions to medical premiums. The time frame for the negotiations is also predicated on the other parties' willingness to reach an agreement.

High Risk Area #6 – Lack of Oversight to Ensure that Contracts Provide Best Value State Auditor Conclusion: The City has addressed some but not all concerns regarding its contracting practices.

State Auditor Recommendation to Address This Risk Area: Amend its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five years.

Proposed Corrective Action: On December 3, 2024, the City formally amended its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five (5) years through adoption of Ordinance No. 2524.

Audit Committee Recommendation
The proposed Corrective Action Plan was reviewed by the Audit Committee on January 27, 2025. The committee made a motion regarding the proposed Corrective Action for High Risk Area #2 for the Council's consideration. Rather than showing good faith efforts to lower its costs related to employee health care benefits, the Audit Committee recommends that the City reject a negotiation that does not lower its costs related to employee health care benefits.

Staff did not include this recommendation in the proposed plan because, as stated, the Audit Committee's recommendation implies the City may be forced into an impasse during future negotiations.

Councilmember Gutierrez and City Treasurer Colleen Rozatti requested that it be put on record that they opposed this motion and instead recommended evaluating options for healthcare outside of CalPERS.

This is something staff has discussed internally with its broker but would also require buy-in from the bargaining groups.

Next Steps
The Corrective Action Plan is due by February 17, 2025, 60 days from the audit report publication. Every six (6) months (in this case mid-June and mid-December of each year) the City must update the State on the progress it is making in implementing the Corrective Action Plan. As the State Auditor reviews those updates, they may conclude that the City has fully addressed one or more risk areas.

The City does not necessarily need to wait until the next full audit to have its designation removed. The State Auditor has the authority to determine if the City is no longer high risk at any point in time. Keeping the State up to date on these risk areas and the steps the City is taking to address them is key. As more information about the risk areas is available, the State will continue to assess the City’s progress and make determinations about the overall high-risk status of the City.

LEGAL REVIEW:

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

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

The implementation of the proposed Corrective Action Plan may increase General Fund reserves by reducing the amount transferred out of the General Fund each year.

Attachments
Attachment No. 1 - Excerpt from Report No. 2024-801
Attachment No. 2 - Proposed Corrective Action Plan
Attachment No. 3 - Presentation
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Maintain Good Intergovernmental Relations
ATTACHMENT NO. 1

DRAFT
February 2025 1
City of West Covina
The City of West Covina’s proposed corrective action plan addresses the conditions identified in the Local High Risk Program Report No. 2024-801. The 2024 report was a follow up to the initial audit conducted in 2020. The 2020 Audit Report identified six (6) risk areas for the City of West Covina. The audit report issued in December 2024 indicates that the City has fully addressed three (3) of the six (6) risk areas as noted in the table below.

High-Risk Area Current Assessment
1 Continual Diminishing of Reserves Partially Addressed 2 Questionable Use of City Resources Partially Addressed 3 Financial Decisions Based on Insufficient Analyses Fully Addressed 4 Lack of Formal Financial Recovery Plan Fully Addressed 5 Inadequate Management of Purchase Cards Fully Addressed 6 Lack of Oversight to Ensure That Contracts Provide Best Value Partially Addressed This proposed corrective action plan seeks to address the three (3) remaining risk areas:

High‑Risk Area #1 – Continual Diminishing of Reserves
High‑Risk Area #2 – Questionable Use of City Resources
High‑Risk Area #6 – Lack of Oversight To Ensure That Contracts Provide Best Value

Corrective Action Plan

Local High Risk Program Report 2024-801
ATTACHMENT NO. 2
City of West Covina
Corrective Action Plan
Local High Risk Program Report 2024-801
February 2025 2
High‑Risk Area #1 – Continual Diminishing Of Reserves
 State Auditor Conclusion: Although the City’s general fund revenue is higher than its operational expenditures, the City has chosen to maintain the minimum recommended reserve level, which introduces higher risk it will not be able to address future financial needs.
 State Auditor Recommendation to Address This Risk Area: West Covina should establish a general fund reserve level higher than its current 17 percent goal that is sufficient to mitigate current and future risks, including its pension‑related debt.  Proposed Corrective Action: The City will continue to review its Fund Balance policy annually and proposes maintaining an unassigned fund balance over the Government Finance Officers Association (GFOA)’s recommended minimum of 17% and assigning a portion of its reserve for Pension and Other Post Employment Benefit (OPEB) liabilities.

Below is an example amendment to the reserve policy:

RESERVE POLICIES
The City shall maintain a minimum unassigned fund balance of at least 1718% of the General Fund operating expenditures. If the reserve level falls below 1718%, the City must amend this policy, including a plan to rebuild the fund within three years. This is considered the minimum level necessary to maintain the City’s credit worthiness and to adequately provide for:
 Economic uncertainties, local disasters and other hardships or downturns in the local economy
 Contingencies for unforeseen operating or capital needs  Cash flow requirements
At the end of the fiscal year, the annual excess revenue over expendituresunassigned fund balance in the City’s General Fund will be automatically allocated as follows, unless the transfer is overridden by an action of City Council: 2550% will stay in the General Fund Balance reserves and become Assigned for the City’s Pension and Other Post Employment Benefit (OPEB) liabilities, 25% will be transferred to the Capital Projects Fund, 15% will be transferred to the Self-Insurance Funds – General Liability and Workers Compensation Funds, and 10% will be transferred to the Vehicle Replacement Fund and 25% will go to pay down the City’s Other Post Employment Benefit (OPEB) liability.

City of West Covina
Corrective Action Plan
Local High Risk Program Report 2024-801
February 2025 3
Below is an example of how this would be implemented:

Est. General Fund (GF) Unassigned Fund Balance 18,000,000 Total FY2024-25 GF Operating Expenditures 91,277,260
Unassigned Fund Balance as % of Expenditures 19.7%
Percentage
Reserve
Amount ($)
Excess
Reserve
($)
Current Requirement - 17% 15,517,134 2,482,866
Proposed Requirement - 18% 16,429,907 1,570,093
Annual Allocation Percent (%)
Amount
($)
Assigned for Pension and OPEB liabilities 50% 785,047
Transferred to the Capital Projects Fund 25% 392,523
Transferred to the Self-Insurance Funds 15% 235,514
Transferred to the Vehicle Replacement Fund 10% 157,009 Total Allocation of excess unassigned fund balance 100% $1,570,093 City of West Covina
Corrective Action Plan
Local High Risk Program Report 2024-801
February 2025 4
High‑Risk Area #2 – Questionable Use Of City Resources
 State Auditor Conclusion: The City has not renegotiated its labor agreements with its employee unions as we recommended, but it has updated its fee schedule.  State Auditor Recommendation to Address This Risk Area: To limit its costs related to employee health care benefits, West Covina should renegotiate employee union agreements once the effects of the pandemic subside so that its employees contribute a reasonable percentage of their premiums. To determine that percentage, West Covina should consider options such as using survey data from comparably sized cities in its region.
 Proposed Corrective Action: The City’s ability to lower its costs related to employee health care benefits is limited by the bargaining groups willingness to negotiate. Thus, the City will continue to show good faith efforts to lower its costs related to employee health care benefits during renegotiations of its labor agreements. The City will strive to have contracts renegotiated as follows:

Association Current Contract Expiration Target Contract Renewal Confidential June 30, 2024 June 2025
General June 30, 2024 June 2025
Maintenance & Crafts June 30, 2024 June 2025
Mid-Management June 30, 2024 June 2025
Police Support Services June 30, 2024 June 2025
Police Officers’ June 30, 2024 Executed October 2024
Police Management December 31, 2024 April 2025
Firefighters’ June 30, 2025 September 2025
Fire Management* June 30, 2024 December 2025
*This group has requested to negotiate after the Firefighters’.

City of West Covina
Corrective Action Plan
Local High Risk Program Report 2024-801
February 2025 5
High‑Risk Area #6 – Lack Of Oversight To Ensure That Contracts Provide Best Value  State Auditor Conclusion: The City has addressed some but not all concerns regarding its contracting practices.
 State Auditor Recommendation to Address This Risk Area: Amend its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five years.  Proposed Corrective Action: On December 3, 2024, the City formally amended its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five years through adoption of Ordinance No. 2524:
“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….

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, 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.”

CONSIDERATION OF A CORRECTIVE ACTION PLAN
IN RESPONSE TO STATE AUDITOR REPORT 2024-801
FEBRUARY 4, 2025
ATTACHMENT NO. 3

BACKGROUND
West Covina was selected
for review under HighRisk Local Government Agency A
udit Program.

Dec. 2019
State Auditor
published its report of findings
Dec. 2020
City developed and
implemented Financial
Recovery Plan
2021–2024
State Auditor performed a followup review of the City
July 2024
State Auditor issued
its findings in Local High
Risk Program Report
Dec. 2024
FINDINGS FROM REPORT NO. 2024-801
No. High-Risk Area Current Assessment
1 Continual Diminishing of Reserves Partially Addressed 2 Questionable Use of City Resources Partially Addressed 3 Financial Decisions Based on Insufficient Analyses Fully Addressed 4 Lack of Formal Financial Recovery Plan Fully Addressed 5 Inadequate Management of Purchase Cards Fully Addressed 6 Lack of Oversight to Ensure That Contracts Provide Best Value Partially Addressed HIGH RISK AREA #1 – CONTINUAL DIMINISHING OF RESERVES
State Auditor Conclusion
• Although the City’s general fund revenue is higher than its operational expenditures, the City has chosen to maintain the minimum recommended reserve level, which introduces higher risk in that that it will not be able to address future financial needs.

State Auditor Recommendation
• West Covina should establish a general fund reserve level higher than its current 17% goal that is sufficient to mitigate current and future risks, including its pension related debt.

HIGH RISK AREA #1 – PROPOSED ACTIONS
Proposed Corrective Action
• Review Fund Balance policy annually and maintain an unassigned fund balance over GFOA’s recommended min. of 17% and assign a portion for pension and OPEB liabilities.
• Staff proposes to increase reserves to 18% and reallocate excess fund balance transfers.

Proposed Strategies Outside this plan
• Transfer back amount set aside for OPEB liabilities back to the General Fund. • Issue an RFP for investment management and advisory services.

HIGH RISK AREA #2 – QUESTIONABLE USE OF CITY RESOURCES
State Auditor Conclusion
• The City has not renegotiated its labor agreements with its employee unions as recommended, but it has updated its fee schedule.

State Auditor Recommendation
• To limit its costs related to employee health care benefits, West Covina should renegotiate employee union agreements once the effects of the pandemic subside so that its employees contribute a reasonable percentage of their premiums. To determine that percentage, West Covina should consider options such as using survey data from comparably sized cities in its region.

HIGH RISK AREA #2 – PROPOSED ACTIONS
Proposed Corrective Action
• The City’s ability to lower its costs related to employee health care benefits is limited by the bargaining groups' willingness to negotiate. Thus, the City will continue to show good faith efforts to lower its costs related to employee health care benefits during renegotiations of its labor agreements.

Proposed Strategies Outside this plan
• Evaluate other options outside of CalPERS.

HIGH RISK AREA #6 – LACK OF OVERSIGHT TO ENSURE THAT

CONTRACTS PROVIDE BEST VALUE
State Auditor Conclusion
• The City has addressed some but not all concerns regarding its contracting practices.

State Auditor Recommendation
• Amend its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five years.

HIGH RISK AREA #6 – PROPOSED ACTIONS
Proposed Corrective Action
• On December 3, 2024, the City formally amended its contracting policies to include a requirement that city management document reasons for entering into any contract or extension with a duration in excess of five (5) years

AUDIT COMMITTEE RECOMMENDATION
 Reviewed by the Audit Committee January 27th
 Committee recommends changes to Corrective Action for High-Risk Area #2:
 Rather than showing “good faith efforts to lower its costs related to employee healthcare benefits,”  State that the “City will reject a negotiation that does not lower its costs…. ”  This implies the City may be forced into an impasse during future negotiations.  Councilmember Gutierrez and City Treasurer Colleen Rozatti requested that it be put on record that they opposed this and instead recommended evaluating options for healthcare outside of CalPERS.

NEXT STEPS
Plan due February 17th
City must update the State on progress every 6 months.

State Auditor can determine City is no longer highrisk at any point in time.

As more information is available, the State Auditor will continue to assess the City’s progress and make determinations about the overall high-risk status of the City.

QUESTIONS

West Covina City CouncilFebruary 4, 2025

West Covina City Council
February 4, 2025