SUPPLEMENTAL LAW ENFORCEMENT SERVICES AGREEMENT
BETWEEN
CITY OF WEST COVINA
AND
FOOTHILL TRANSIT
THIS SUPPLEMENTAL LAW ENFORCEMENT SERVICES AGREEMENT (“Agreement”) is entered into as of March 18, 2025 (“Effective Date”) by and between the CITY OF WEST COVINA, a California municipal corporation (“West Covina”) and FOOTHILL TRANSIT, a California Joint Powers Authority (“Foothill Transit”).
RECITALS
WHEREAS, Foothill Transit is desirous of contracting with West Covina for the performance of supplemental law enforcement functions relating to targeted bus operations in the City of West Covina; and
WHEREAS, West Covina is agreeable to rendering such services on the terms and conditions set forth in this Agreement.
NOW THEREFORE, for and in consideration of mutual covenants contained herein, and for good and valuable consideration, the parties mutually agree as follows:
1.0. TERM
The term of this Agreement shall begin on the Effective Date and shall remain in effect for five (5) years, unless sooner terminated or extended as provided herein.
2.0. WEST COVINA’S DUTIES
2.1. Scope of Services. West Covina agrees, through its Police Department, to provide supplemental law enforcement services to Foothill Transit for targeted bus operations as requested by Foothill Transit and as mutually agreed upon by Foothill Transit and West Covina.
Such services shall be rendered by regularly appointed peace officers who are employed by West Covina and shall encompass duties and functions of the type falling under the jurisdiction of and customarily rendered by the West Covina Police Department. The amount and type of supplemental law enforcement services provided by West Covina to Foothill Transit for any specific operation shall be subject to availability as determined by West Covina in its sole and absolute discretion. Foothill Transit acknowledges, understands and agrees that West Covina may decline to provide supplemental law enforcement services for specific operations based on such determinations of availability.
2.2. Provision of Equipment. West Covina shall furnish and supply all necessary personnel, equipment, and supplies necessary to provide the supplemental law enforcement services to be provided pursuant to this Agreement.
2.3. Employment Benefits. West Covina shall be responsible for the payment of all salaries, wages, and other compensation and benefits to West Covina employees who perform supplemental law enforcement services to Foothill Transit pursuant to this Agreement. All West ATTACHMENT NO. 1
Supplemental Law Enforcement Services Agreement
Foothill Transit
Covina employees who provide services pursuant to this Agreement shall remain employees of West Covina and shall not have any claim or right to employment, civil service protection, salary, or benefits or claims of any kind from Foothill Transit based on this Agreement. No West Covina employees shall become employees of Foothill Transit in connection with providing services pursuant to this Agreement.
2.4. Supervision and Discipline. Except as set forth herein, West Covina shall be responsible for the supervision and discipline of all employees who perform services to Foothill Transit pursuant to this Agreement in accordance with the West Covina’s Police Department’s policies and procedures.
3.0. FOOTHILL TRANSIT DUTIES
If Foothill Transit requires supplemental law enforcement services for a specific operation, Foothill Transit shall submit a written request to the Chief of Police of West Covina at least thirty (30) days prior to the date of the event. The request shall contain the date or dates of the operation, number of hours of services requested, number of personnel requested, classification of personnel requested, and duties and responsibilities associated with the services requested.
Foothill Transit acknowledges and agrees West Covina will be under no obligation to consider requests for services that have not been requested by Foothill Transit at least thirty (30) days prior to the operation.
4.0. COMPENSATION; BILLING
4.1. Compensation. Foothill Transit agrees to pay West Covina at West Covina’s thencurrent Fully Allocated Hourly Rates, based on the Patrol rates, for officers providing services pursuant to this Agreement. Foothill Transit acknowledges and agrees that such hourly rates will be adjusted on July 1 of each year to reflect the budgeted salaries and benefits for each position.
For reference, the current Fully Allocated Hourly Rates are set forth below.
Police Officer - $133.65 per hour
Corporal - $148.41 per hour
Sergeant - $153.63 per hour
4.2. Maximum Annual Compensation. West Covina and Foothill Transit agree that West Covina’s annual compensation shall not exceed One Hundred and Fifty Thousand Dollars ($150,000.00).
4.3. Invoices and Payments. West Covina will submit to Foothill Transit an invoice for the services provided on a quarterly basis. Foothill Transit agrees to pay each invoice within thirty (30) days from the date of West Covina’s invoice.
5.0. INDEMNIFICATION
5.1. Foothill Transit Indemnification and Hold Harmless. To the fullest extent permitted by law, Foothill Transit shall indemnify, defend, and hold harmless West Covina, its elected and appointed officials, officers, employees, and agents from and against any and all liability, including but not limited to, demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees), arising from or connected with Foothill Transit’s acts and/or omissions arising from and/or relating to this Agreement.
ATTACHMENT NO. 1
Supplemental Law Enforcement Services Agreement
Foothill Transit
5.2. West Covina Indemnification and Hold Harmless. To the fullest extent permitted by law, West Covina shall indemnify, defend, and hold harmless Foothill Transit, its elected and appointed officials, officers, employees, and agents from and against any and all liability, including but not limited to, demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees), arising from or connected with West Covina’s acts and/or omissions arising from and/or relating to this Agreement.
6.0. INSURANCE
West Covina and Foothill Transit shall each provide and maintain a program of liability insurance, which includes comprehensive general liability and comprehensive auto liability coverage, a program of self-insurance, or any combination thereof, at each party’s sole option and discretion, to satisfy its indemnity obligations under this Agreement.
7.0. TERMINATION
Either party may terminate this Agreement at any time, with or without cause, by providing thirty (30) days’ written notice to the other party. In the event of termination, Foothill Transit shall compensate West Covina for services performed through the effective date of the termination.
8.0. NOTICES
All notices, invoices, requests or approvals to be given under this Agreement must be in writing and will be deemed served when delivered personally, by email, provided that no delivery failure notification has been received, or on the third business day after deposit in the United States mail, postage prepaid, registered or certified, addressed as follows:
To Foothill Transit:
Foothill Transit
Attention: John Curley, Chief of Safety and Security
100 S. Vincent Avenue Suite 200
West Covina, CA 91790
To West Covina:
City of West Covina Police Department
Attention: Tony Cortina, Chief of Police
1444 W. Garvey Ave. S.
West Covina, CA 91790
9.0. ASSIGNMENT
This Agreement may not be assigned or transferred by either party without the express written consent of the other party.
10.0. WAIVER
No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought.
ATTACHMENT NO. 1
Supplemental Law Enforcement Services Agreement
Foothill Transit
The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
11.0. FORCE MAJEURE
Neither party shall be responsible for delays or lack of performance resulting from acts beyond the reasonable control of the party or parties. Such acts shall include, but not be limited to, acts of God, fire, strikes, material shortages, compliance with laws or regulations, riots, acts of war, or any other conditions beyond the reasonable control of a party.
12.0. SEVERABILITY
If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.
13.0. CONSTRUCTION
The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
14.0. INDEPENDENT CONTRACTOR
The parties understand and agree that in performing the services under this Agreement, West Covina and any person employed by or contracted with West Covina to furnish labor and/or materials under this Agreement shall act as and be an independent contractor and not an agent or employee of Foothill Transit.
15.0. NO THIRD PARTY BENEFICIARES
This Agreement is entered into for the sole benefit of West Covina and Foothill Transit and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right in, under or to this Agreement.
16.0. ATTORNEYS’ FEES
In the event that litigation is brought by any party in connection with this Agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing party in the exercise of any of its ATTACHMENT NO. 1
Supplemental Law Enforcement Services Agreement
Foothill Transit
rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.
17.0. GOVERNING LAW; VENUE
This Agreement shall be governed by and construed under the laws of the State of California without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California.
18.0. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations.
This Agreement may be modified only in writing, approved as to form by the City Attorney for West Covina and General Counsel for Foothill Transit; and signed by the parties in interest at the time of such modification.
19.0. COUNTERPARTS AND ELECTRONIC SIGNATURES
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and may be executed by electronic signatures. All counterparts shall be construed together and shall constitute one agreement. Delivery of an executed counterpart of this Agreement by a .pdf data file or other scanned executed counterpart by email shall be equally as effective as delivery of a manually executed counterpart of this Agreement. Each duplicate and counterpart shall be equally admissible in evidence, and each shall fully bind each party who has executed it. The parties waive all right to challenge the admissibility or authenticity of this Agreement in a court of law based solely on the absence of an original signature.
20.0. CORPORATE AUTHORITY
The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement. [SIGNATURE PAGE FOLLOWS.]
ATTACHMENT NO. 1
Supplemental Law Enforcement Services Agreement
Foothill Transit
CITY OF WEST COVINA
______________________________ ______________________________ Paulina Morales Tony Cortina
City Manager Chief of Police
______________________________
Date
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Lisa Sherrick Thomas P. Duarte
Assistant City Clerk City Attorney
FOOTHILL TRANSIT
______________________________
Doran Barnes
Chief Executive Officer
______________________________
Date
APPROVED AS TO FORM:
______________________________
Darold Pieper
General Counsel
AGENDA ITEM NO. 9
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: March 18, 2025
TO: Mayor and City Council
FROM: Paulina Morales, City Manager
SUBJECT: PENSION PREFUNDING INFORMATION
RECOMMENDATION:
It is recommended that the City Council provide direction.
BACKGROUND:
At the February 18, 2025 City Council meeting, Councilmember Cantos requested that the City Council explore feasibility of establishing Section 115 Pension Trust, as City of Cypress, and compare returns vs State Treasury.
DISCUSSION:
Attached please find the PowerPoint presentation.
OPTIONS:
Receive and file.
Prepared by: Maria-Luisa Olea, Assistant Finance Director Additional Approval: Roxanne E. Lerma, Assistant City Manager Attachments
Attachment No. 1 - Prefunding Information
SECTION 115 PENSION TRUST FUND
MARCH 18, 2025
ATTACHMENT NO. 1
SECTION 115 TRUST
What is a Section 115 Trust
• Trust designed for the purpose of pre-funding pension obligations and/or OPEB obligations
• Tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a taxexempt trust under the relevant statutory provisions of the State of California
BACKGROUND
West Covina established a Section
115 administered by PARS
$312,850 deposited
FY 2017-18
Funds were deposited back to
the City’s General Fund.
Earnings remained in Trust
FY 2018-19
Section 115 Trust balance is
$17,880
June 2024
Section 115 Trust balance is
$19,265
January 2025
Cash & Cash Equivalents; 15%
LAIF; 40%
LACIP; 25%
Bond Reserves; 14%
PARS-Section 115; 0%
Successor Agency Checking; 6%
INVESTMENT PORTFOLIO
AS OF JANUARY 31, 2025
CURRENT INVESTMENT PORTFOLIO SNAPSHOT
• 40% invested in Local Agency
Investment Fund (LAIF)
• 25% invested in Los Angeles
County Investment Pool (LACIP)
• 14% held in Bond Reserves
• 15% City’s Cash & Cash
Equivalents
• 6% Successor Agency Checking
• Less than 1% in Section 115
PRO’S OF A SECTION 115 TRUST
Grow assets for future pension contributions (Normal Cost, UAL)
• Create a rainy day fund and preserve liquidity
• The assets are offset with the liability (OPEB or Pension) Earns higher than LAIF or County Treasurer
FUTURE STEPS
Review Cash and Fund Balance available with
the budget process to determine what funds
can be made available for Section 115
consideration
As part of the Corrective Action with the
State, the City will be maintaining 18% as
unassigned General Fund balance. There were
funds set aside for OPEB liabilities that were
transferred back to the General Fund.
Issue an RFP for investment management
and advisory services
QUESTIONS