Agenda packet, regular meeting — West Covina City Council, June 3, 2025 (part 1 of 3)

CITY OF WEST COVINA

CITY COUNCIL/SUCCESSOR AGENCY
*Updated Agenda to Reflect Additional Presentation 5.29.2025 JUNE 3, 2025, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilmember Brian Gutierrez
Please turn off all cell phones and other electronic devices prior to entering the Council Chambers

AMERICANS WITH DISABILITIES ACT
The City complies with the Americans with Disabilities Act (ADA). If you will need special assistance at a Council meeting, please call (626) 939-8433 (voice) or (626) 960-4422 (TTY) from 8am to 5pm Monday through Thursday. Please call at least one day prior to the meeting date to inform us of your particular needs and to determine if accommodation is possible. For sign language interpreter services at Council meetings, please request no less than four working days prior to the meeting.

AGENDA MATERIAL
Agenda material is available for review at the City Clerk's Office, Room 317 in City Hall, 1444 W. Garvey Avenue South, West Covina and at www.westcovina.org. Any writings or documents regarding any item on this agenda, not exempt from public disclosure, provided to a majority of the City Council that is distributed less than 72 hours before the meeting, will be made available for public inspection in the City Clerk’s Office, Room 317 of City Hall located at 1444 W.

Garvey Avenue South, West Covina, during normal business hours.

NOTICE
The City Council will regularly convene on the first and third Tuesday of the month. The West Covina Community Development Commission, West Covina Public Financing Authority and the West Covina Community Services Foundation are agencies on which the City Council serves as members. Agendas may contain items for these boards, as necessary.

PUBLIC COMMENTS

ADDRESSING THE CITY COUNCIL
Any person wishing to address the City Council on any matter listed on the agenda, excluding any matter set for a public hearing, or on any other matter within their jurisdiction must complete a speaker card that is provided at the entrance to the Council Chambers and submit the card to the City Clerk prior to the commencement of Oral Communications. No speaker cards will be accepted after the commencement of Oral Communications, except at the discretion of the Presiding Officer.

Please identify on the speaker card whether you are speaking on an agenda item or non-agenda. Requests to speak on agenda items will be heard prior to requests to speak on non-agenda items. Comments are limited to three (3) minutes per speaker, unless modified by the Presiding Officer or the City Council.

Any testimony or comments regarding a matter set for a public hearing will be heard during the hearing.

While members of the public are free to level criticism of City policies and the action(s) or proposed action(s) of the City Council or its members, members of the public may not engage in behavior that is disruptive to the orderly conduct of the meeting, including, but not limited to, speaking off topic, speaking beyond the speaker’s allotted time limit, making slanderous or profane remarks or using loud, threatening, or abusive language which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. Members of the public may not threaten any person with physical harm or act in a manner that may reasonably be interpreted as an imminent threat of physical harm. The City of West Covina will not tolerate harassment based upon a person’s race, religious creed, color, national origin, ancestry, disability, medical condition, marital status, gender, sexual orientation, or age.

RULES OF DECORUM
Excerpts from the West Covina Municipal Code and Penal Code pertaining to the Rules of Decorum will be found at the end of agenda.

AGENDA
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY

TUESDAY JUNE 3, 2025, 7:00 PM
REGULAR MEETING

INVOCATION
Led by Chaplin Kelly Dupee of the West Covina Police Department

PLEDGE OF ALLEGIANCE
Led by Councilmember Gutierrez

ROLL CALL

REPORTING OUT FROM CLOSED SESSION

PRESENTATIONS
Certificates presented to New Beginning Christian Fellowship of West Covina Honoring Good Samaritans
Swearing in West Covina Police Department Chaplain Kevin Yriarte Building Division Community Update and Milestones
ORAL COMMUNICATIONS - Three (3) minutes per speaker
Please step forward to the podium and state your name and city of residence for the record when recognized by the Mayor.

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

CONSENT CALENDAR
All matters listed under CONSENT CALENDAR are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council/Community Development Commission request specific items to be removed from the Consent Calendar for separate discussion or action.

APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE MAY 20, 2025 CITY COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE MAY 20, 2025, CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES.

That the Council approve the May 20, 2025, City Council/Successor Agency Regular Session Meeting Minutes and the May 20, 2025, City Council/Successor Agency Closed Session Meeting Minutes.

COMMUNITY DEVELOPMENT
2) CONSIDERATION OF TRANSFER AGREEMENT WITH THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT FOR THE SAFE, CLEAN WATER PROGRAM – MUNICIPAL

PROGRAM
It is recommended that the City Council authorize the Acting City Manager to execute a Transfer Agreement with the Los Angeles County Flood Control District in such final form as approved by the City Attorney.

COMMUNITY SERVICES
3) CONSIDERATION OF AGREEMENT WITH PYRO SPECTACULARS FOR CITY'S ANNUAL

FOURTH OF JULY SPECTACULAR
It is recommended that the City Council take the following actions:

1. Award Request for Proposal (RFP) No. 2025-11 for Firework Display/Show for the City of West Covina's Fourth of July Spectacular to Pyro Spectaculars, Inc.; and

2. Authorize the Acting City Manager to negotiate and execute an agreement with Pyro Spectaculars, Inc. for an initial term of one year with the option to extend the term for up to four one-year periods with Pyro Spectaculars, Inc., in such final form as approved by the City Attorney.

END OF CONSENT CALENDAR

DEPARTMENTAL REGULAR MATTERS

FINANCE DEPARTMENT
4) PROPOSED FISCAL YEAR 2025-26 OPERATING AND CAPITAL IMPROVEMENT

PROGRAM BUDGET
It is recommended that City Council:

Receive and file the Proposed Fiscal Year 2025-26 Operating and Capital Improvement Program Budget;

1. 2. Schedule the budget for consideration at the June 17, 2025 City Council meeting.

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

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

CITY COUNCIL COMMENTS

ADJOURNMENT
Next Tentative City Council Meeting
Regular Meeting 6/17/2025 7:00 PM
RULES OF DECORUM
The following are excerpts from the West Covina Municipal Code:

Section 2-47. - Addressing the council.

Pursuant to the California Government Code, any person wishing to address the city council on any matter on the agenda or on any other matter within their jurisdiction, excluding any matter set for a public hearing, may do so upon first securing the recognition of the presiding officer during the time designated as “Oral Communications” on the agenda. The city council may not act on any item unless it is listed on the agenda.

Section 2-48. - Manner of addressing city council; time limit; persons addressing may be sworn. (a) Each person wishing to address the city council shall submit a speaker card to the city clerk prior to the commencement of the time designated for oral communications. No speaker cards will be accepted after the commencement of oral communications, except at the discretion of the presiding officer. (b) When called forward by the presiding officer or the city clerk, each person addressing the city council shall step up to the podium and give his or her name and city of residence in an audible tone of voice for the record. (c) Each person addressing the city council during oral communications shall limit his or her comments to three (3) minutes, unless the time limit is modified by the presiding officer or the city council. In order to provide all speakers the opportunity to participate in oral communications, the presiding officer or the city council may reduce the time limit to allow reasonable time for all speakers to address the city council.
(d) All remarks shall be addressed to the city council as a body and not to any member thereof. No person, other than the city council and the person having the floor, shall be permitted to enter into any discussion, either directly or through a member of the city council, without the permission of the presiding officer. No question shall be asked of a council member except through the presiding officer.
(e) The presiding officer may require any person to be sworn as a witness before addressing the city council on any subject.

Any such person who, having taken an oath that he or she will testify truthfully, willfully and contrary to such oath states as true any material matter which he knows to be false may be held to answer criminally and subject to the penalty prescribed for perjury by the provisions of the California Penal Code.

Section 2-50. - Decorum—Required.
(a) While the city council is in session, council members shall preserve order and decorum, and a council member shall neither, by conversation or otherwise, delay or disrupt the proceedings or the peace of the council nor interrupt any council member while speaking or refuse to obey the orders of the council or its presiding officer, except as otherwise herein provided. (b) Members of the public shall not willfully disrupt the meeting or act in a manner that actually disrupts, disturbs, impedes, impairs, or renders infeasible the orderly conduct of the meeting. For the purposes of this Code, “willfully disrupt” includes, but is not limited to, continuing to do any of the following after being warned by the presiding officer that the behavior is disrupting the meeting and failure to cease the behavior may result in removal from the meeting:
(1) Addressing the mayor or city council without first being recognized. (2) Persisting in addressing a subject or subjects, other than that before the mayor and city council. (3) Repetitiously addressing the same subject.
(4) Failing to relinquish the podium when directed to do so. (5) From the audience, interrupting or attempting to interrupt, a speaker, the presiding officer, a council member, or a staff member, or shouting or attempting to shout over a speaker, the presiding officer, a council member or a staff member. (6) From the audience, engaging in disorderly, disruptive, or boisterous conduct, including, but not limited to, handclapping, stomping of feet, whistling, making noise, use of abusive, threatening or profane language or obscene gestures, yelling, obstructing the view of other audience members, or similar conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting.
(7) As a speaker, making slanderous or profane remarks or using loud, threatening, or abusive language which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting; interrupting or attempting to interrupt the presiding officer, a council member, or a staff member; shouting over or attempting to shout over the presiding officer, a council member, or a staff member; or engaging in any other disorderly conduct which disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting. Nothing in this section or any rules of the city council shall be construed to prohibit public criticism of the policies, procedures, programs, or services of the city or of the acts or omissions of the city council. (8) Engaging in behavior that constitutes use of force or a true threat of force. (c) It shall be unlawful to violate the provisions of this section. A person violating this section may be removed and barred from further participation at the meeting at which the violation occurs. (d) If any subsection, sentence, clause, or phrase or word of this section 2-50 is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby unconstitutional, such decision shall not affect the validity of the remaining portions of this section. The city council hereby declares that it would have passed this section and each subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more subsections, sentences, clauses, phrases or words had been declared invalid or unconstitutional.

Section 2-51. - Enforcement of decorum.

The chief of police or any member or members of the police department or other members of the city staff may be designated by the council to be sergeant-at-arms when, in the opinion of the presiding officer, the services of a sergeant-at-arms is necessary, and the sergeant-at-arms shall carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum in accordance with section 2-50 at the council meeting, including, but not limited to, removing and barring from further participation at the meeting any person who is willfully disrupting the orderly conduct of the meeting.

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

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

The following are excerpts from the Penal Code:

Section 148. Resisting public or peace officers or emergency medical technicians in discharge of their duties; Removal of weapon from person or presence of public or peace officer. (a) (1) Every person who willfully resists, delays, or obstructs any public officer, peace officer, or an emergency medical technician, as defined in Division 2.5 (commencing with Section 1797) of the Health and Safety Code, in the discharge or attempt to discharge any duty of his or her office or employment, when no other punishment is prescribed, shall be punished by a fine not exceeding one thousand dollars ($1,000), or by imprisonment in a county jail not to exceed one year, or by both that fine and imprisonment.

Section 403. Disturbance of assembly or meeting other than religious or political.

Every person who, without authority of law, willfully disturbs or breaks up any assembly or meeting that is not unlawful in its character, other than an assembly or meeting referred to in Section 302 of the Penal Code or Section 18340 of the Elections Code, is guilty of a misdemeanor.

AGENDA ITEM NO. 1

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: June 3, 2025
TO: Mayor and City Council
FROM: Milan Mrakich, Acting City Manager
SUBJECT: CONSIDERATION OF APPROVAL OF THE MAY 20, 2025 CITY

COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE MAY 20, 2025, CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES.

RECOMMENDATION:

That the Council approve the May 20, 2025, City Council/Successor Agency Regular Session Meeting Minutes and the May 20, 2025, City Council/Successor Agency Closed Session Meeting Minutes.

BACKGROUND:

That the City Council adopt the attached minutes.

Prepared by: Lisa Sherrick, Assistant City Clerk
Attachments
Attachment No. 1 - 5/20/2025 Closed Session Minutes Draft Attachment No. 2 - 5/20/2025 Regular Session Minutes Draft CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness ATTACHMENT NO. 1
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
MAY 20, 2025, 6:00 PM
REGULAR MEETING - CLOSED SESSION
MANAGEMENT RESOURCE CENTER 3RD FLOOR
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilmember Brian Gutierrez

MINUTES
CALL TO ORDER
A Regular Session Meeting was called to order by Mayor Tony Wu on Tuesday, April 15, 2025, at 6:00 p.m., in the Management Resource Center, 1444 West Garvey Avenue South, West Covina, California.

ROLL CALL
Council Members

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

Absent: None
ATTACHMENT NO. 1
City Staff: Paulina Morales, City Manager, Roxanne Lerma, Assistant City Manager, Thomas Duarte, City Attorney, Maria-Luisa Olena, Assistant Finance Director, Attorney Joung Yim, Liebert Cassidy Whitmore, Attorney Tom O’Connell, Buchalter. *City staff was excused from Item Number 1 – Public Employee Performance Evaluation
PUBLIC COMMENTS ON ITEMS ON THE AGENDA
Doug Fore
CLOSED SESSION

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION, DISMISSAL/RELEASE, APPOINTMENT - Pursuant to Government Code § 54957(b)(1) Title: City Manager

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

3. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Initiation of litigation pursuant to Government Code § 54956.9(d)(4)
Number of Cases: One (1)

4. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
City Negotiators: Morales, Duarte
Employee Organizations
 Confidential Employees
 Maintenance & Crafts Employees
 Non-Sworn
 W.C. Police Officers’ Association
 W.C. Firefighters’ Management Assoc.
 W.C. Firefighters’ Association, I.A.F.F., Local 3226
 General Employees
 Mid-Management Employees
 W.C. Police Management Association
Unrepresented Employee Group
 Department Heads
REPORTING OUT FROM CLOSED SESSION
City Attorney Thomas Durate reported that regarding Item No. 1 a motion by Mayor Wu and a second by Mayor Pro Tem Lopez-Viado, the Council voted 3-2 (No: Cantos, Diaz) ATTACHMENT NO. 1
to not continue the employment agreement with the City Manager. Also, on Item No. 1 on a motion by Councilmember Gutierrez and a second by Mayor Pro Tem LopezViado, the Council voted 4-1 (No: Cantos) to appoint Director of Public Safety Milan Mrakich as acting City Manager.

ADJOURNMENT
A motion to adjourn the Regular Closed Meeting was made by Mayor Tony Wu, and the meeting was adjourned at 6:54p.m. The next regularly scheduled Regular Closed City Council Meeting will be held on Tuesday, June 3, 2025, at 6:00 p.m. in the Management Resource Center 3rd Floor, 1444 West Garvey Avenue South, West Covina, California.

Submitted By:
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Tony Wu
Mayor
ATTACHMENT NO. 2
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY
MAY 20, 2025, 7:00 PM
REGULAR MEETING
CITY HALL COUNCIL CHAMBERS
1444 W. GARVEY AVENUE SOUTH
WEST COVINA, CALIFORNIA 91790
Mayor Tony Wu
Mayor Pro Tem Letty Lopez-Viado
Councilman Ollie Cantos
Councilwoman Rosario Diaz
Councilmember Brian Gutierrez

MINUTES
CITY OF WEST COVINA
CITY COUNCIL/SUCCESSOR AGENCY

INVOCATION
Pastor Alfred Richardson from New Beginning Christian Fellowship of West Covina PLEDGE OF ALLEGIANCE
Led by Mayor Wu
ROLL CALL
Council Members
ATTACHMENT NO. 2

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

Absent: None
REPORTING OUT FROM CLOSED SESSION
City Attorney Thomas Durate reported that regarding Item No. 1 a motion by Mayor Wu and a second by Mayor Pro Tem Lopez-Viado, the Council voted 3-2 (No: Cantos, Diaz) to not continue the employment agreement with the City Manager. Also, on Item No. 1 on a motion by Councilmember Gutierrez and a second by Mayor Pro Tem LopezViado, the Council voted 4-1 (No: Cantos) to appoint Director of Public Safety Milan Mrakich as acting City Manager.

PRESENTATIONS
 Proclamation Honoring National Telecommunicators/Dispatchers Week  Proclamation Honoring National Police Week
 Proclamation Honoring National Jailer Week
 Donation Presented to the West Covina Police Explorers by the Chinese American Association of West Covina
 Fire Department Explorers & Eagle Scout Award Presentation  Proclamation Honoring National Public Works Week
CITY MANAGER'S REPORT
City Manager's report on current City projects.

ORAL COMMUNICATIONS - Three (3) minutes per speaker
Jerri Potras
Jim Grivich
Doug Fore
Christina Larios
Mario Sobalvarro
Luis Sanchez
Mario Moet
Trever Jackson
Mr. G
CONSENT CALENDAR
ACTION: Motion by Councilwoman Diaz and Second by Mayor Pro Tem LopezViado, 5-0 to: Approve Consent Calendar Items 1,2, 5, and 7. (Item No. 3 was pulled by Councilwoman Diaz and Item No. 4 was pulled by Councilmember Gutierrez).

ACTION: Motion by Councilwoman Diaz and Second by Councilmember Diaz 5-0 to: Approve Consent Calendar Item No. 3 with changes to the recommendations (Item was pulled by Councilwoman Diaz).

ATTACHMENT NO. 2
ACTION: Motion by Councilmember Gutierrez and Second by Mayor Wu, 5-0 to:

Reject Consent Calendar Item 4. (Item was pulled by Councilmember Gutierrez).

ACTION: Motion by Councilmember Gutierrez and Second by Mayor Wu, 4-1 to:
(No: Cantos) Approve Consent Calendar Item 6. (Item was pulled by Councilmember Gutierrez).

APPROVAL OF MEETING MINUTES
1) CONSIDERATION OF APPROVAL OF THE MAY 6, 2025 CITY
COUNCIL/SUCCESSOR AGENCY REGULAR SESSION MEETING MINUTES AND THE MAY 6, 2025 CITY COUNCIL/SUCCESSOR AGENCY CLOSED SESSION MEETING MINUTES.

Carried 5-0 to: approve the May 6, 2025, City Council/Successor Agency Regular Session Meeting Minutes and the May 6, 2025, City Council/Successor Agency Closed Session Meeting Minutes.

CITY MANAGER'S OFFICE
2) CONSIDERATION OF COMMISSIONER APPOINTMENT

Carried 5-0 to: It is recommended that the City Council receive and file this informational report.

COMMUNITY DEVELOPMENT
3) ONSIDERATION OF AN ORDINANCE AMENDING THE COMPOSITION AND DUTIES OF THE TRAFFIC COMMITTEE
Carried 5-0 to: introduce the following Ordinance with the following addition:

Add the following streets to Section 22-174 Parking Prohibited during certain days or hours; preferential Subsection c: North Phillips Ave., East Idahome St., East Shamwood St., La Breda Ave.,
ORDINANCE NO. 2531 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING PROVISIONS OF CHAPTER 22 OF THE WEST COVINA MUNICIPAL CODE TO MAKE CHANGES TO THE TRAFFIC COMMITTEE AND ITS DUTIES
ATTACHMENT NO. 2
FINANCE DEPARTMENT
4) CONSIDERATION OF LONG-RANGE FINANCIAL FORECAST FOR FISCAL YEARS ENDING 2026-2030
Carried 5-0 to: Reject the Long Range Forecast and bring the item back with additional analysis and have the Finance Department and the Office of the City Manager conduct three Community Town Hall meetings on the budget.
5) CONSIDERATION OF A MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY AND THE CITY OF WEST COVINA CONFIDENTIAL EMPLOYEES' ASSOCIATION (WCCEA)
Carried 5-0 to: It is recommended that the City Council adopt the following Resolution:

RESOLUTION NO. 2025-22 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY AND THE CITY OF WEST COVINA CONFIDENTIAL EMPLOYEES’ ASSOCIATION FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2028 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE MOU
6) CONSIDERATION OF PROPOSITION A EXCHANGE WITH FOOTHILL TRANSIT Carried 4-1 to: approve the following:

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

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

3. Negotiate a more favorable rate for FY 25-26, and

4. At a future meeting provide direction on how the Prop A balance can be expended.
7) CONSIDERATION OF SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2024
Carried 5-0 to: receive and file the Single Audit Report on Federal Award Programs for the year ended June 30, 2024.

END OF CONSENT CALENDAR

HEARINGS
ATTACHMENT NO. 2
PUBLIC HEARINGS
8) CONSIDERATION OF PRIORITIES FOR THE DEVELOPMENT OF A DRAFT PROGRAM YEAR (PY) 2025-2029 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED PLAN
Those in Favor:

None
Those in Opposition:

None
Those Neutral:

None
ACTION: Motion by Councilmember Gutierrez and Second by Mayor Pro Tem Lopez-Viado, 5-0 to: Approve Item 8.

DEPARTMENTAL REGULAR MATTERS
CITY MANAGER'S OFFICE
9) UPDATE ON GO WEST COVINA - MICROTRANSIT PILOT PROJECT Carried 5-0 to It is recommended that the City Council received and file this report.

MAYOR/COUNCILMEMBERS REPORTS
None
CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION  Councilman Cantos – Weeds are a problem all over the City, instruct staff to take care of the situation, tree wells, and brown hill sides – No objection  Councilmember Gutierrez – Direct City staff to present back to Council when the contract with Brightview is up, at the next meeting or meeting after that. – No objection. (Per Assistant City Manager Lerma bring back a presentation of what each vendor does what services)
CITY COUNCIL COMMENTS
 Mayor Pro Tem Lopez-Viado would like to extend a “Thank You” to the ladies at Shadow Oak for the Mommy and Me programing.

ADJOURNMENT
ATTACHMENT NO. 2
A motion to adjourn the Regular Meeting was made by Mayor Tony Wu, and the meeting was adjourned at 10:20 p.m. The next regularly scheduled Regular Closed City Council Meeting will be held on Tuesday, June 3, 2025, at 7:00 p.m. in the Council Chamber, 1444 West Garvey Avenue South, West Covina, California.

Submitted By:
____________________________
Lisa Sherrick
Assistant City Clerk
__________________________
Tony Wu

AGENDA ITEM NO. 2

MUNICIPAL PROGRAM
RECOMMENDATION:

It is recommended that the City Council authorize the Acting City Manager to execute a Transfer Agreement with the Los Angeles County Flood Control District in such final form as approved by the City Attorney.

BACKGROUND:

In 2018, voters within the Los Angeles County Flood Control District approved Measure W, establishing the Safe, Clean Water Program. This initiative is designed to capture, clean, and conserve billions of gallons of stormwater that would otherwise flow unused into the ocean during rainfall events. Funded through a countywide parcel tax, the program provides a dedicated revenue stream to increase the region’s water supply, improve water quality, enhance communities, and protect public health.

Measure W funds are allocated as follows:
50% to Regional Programs
40% to Municipal Programs
10% to District Programs.

Each municipality receives a Municipal Return equivalent to the proportion of revenue generated within its boundaries. These funds may be used to support projects that improve the quality of water and stormwater runoff.

DISCUSSION:

The City is expected to receive approximately $1,350,000 in Measure W funding for Fiscal Year 2025/2026. To access and use these funds, the City must execute a Transfer Agreement with the Los Angeles County Flood Control District. Measure W funds support projects aimed at improving water quality and managing stormwater runoff. These funds have been used for initiatives such as the annual catch basin cleaning, coordination related to the NPDES permit, and the implementation of street sweeping signage. Future allocations also include projects like the installation of storm drain trash capture devices.

LEGAL REVIEW:

The City Attorney's Office has reviewed the Transfer Agreement and approved it as to form and will review and approve the final form of the agreement prior to execution.

OPTIONS:

The City Council has the following options:

1. Approve staff's recommendation; or

2. Provide alternative direction.

Prepared by: Michael Lloyd, City Engineer
Additional Approval: Roxanne E. Lerma, Assistant City Manager Fiscal Impact
FISCAL IMPACT:

Should the City not proceed with the execution of the Transfer Agreement between Los Angeles County Flood Control District and the City, the City would be ineligible to receive and utilize Measure W funds.

Attachments
Attachment No. 1- Transfer Agreement
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability Enhance City Image and Effectiveness

TRANSFER AGREEMENT BETWEEN

THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT AND WEST COVINA AGREEMENT NO. 2024MP83
SAFE, CLEAN WATER PROGRAM – MUNICIPAL PROGRAM
This Transfer Agreement, hereinafter referred to as “Agreement,” is entered into as of by and between the Los Angeles County Flood Control District, hereinafter referred to as "District," and West Covina, hereinafter referred to as "Municipality." WHEREAS, District, pursuant to the Los Angeles Region Safe, Clean Water (SCW) Program ordinance (Chapter 16 of the Los Angeles County Flood Control District Code) and the SCW Program Implementation Ordinance (Chapter 18 of the Los Angeles County Flood Control District Code), administers the SCW Program for the purpose of funding Projects and Programs to increase stormwater and urban runoff capture and reduce stormwater and urban runoff pollution in the District;
WHEREAS, pursuant to Section 16.04.A.2. of the Los Angeles County Flood Control District Code, forty percent (40%) of annual SCW Program tax revenues shall be allocated to Municipalities within the District, in the same proportion as the amount of revenues collected within each Municipality, to be expended by those cities within the cities' respective jurisdictions and by the County within the unincorporated areas that are within the boundaries of the District, for the implementation, operation and maintenance, and administration of Projects and Programs, in accordance with the criteria and procedures established in this Chapters 16 and 18 of the Los Angeles County Flood Control District Code; WHEREAS, pursuant to Section 16.05.A.1. of the Los Angeles County Flood Control District Code, prior to their receipt of SCW Program funds, Municipalities must enter into an agreement with the District to transfer SCW Program funds;
WHEREAS, the County of Los Angeles Board of Supervisors has approved a standard template Agreement, as required by and in accordance with Section 18.09 of the Los Angeles County Flood Control District Code, for the transfer of SCW Program funds to Municipalities.

NOW, THEREFORE, in consideration of the promises, mutual representations, covenants and agreements in this Agreement, the District and the Municipality, each binding itself, its successors and assigns, do mutually promise, covenant, and agree as follows:

I. DEFINITIONS
The definitions set forth in Sections 16.03 and 18.02 of the Los Angeles County Flood Control District Code shall apply to this Agreement. In addition, the following definitions shall also apply:
“Agreement” means this Transfer Agreement, including all exhibits and attachments hereto. “Annual Plan” means the plan referred to in Section 18.09.B.5 of the Code that includes the contents specified in Exhibit A.
"Code" means the Los Angeles County Flood Control District Code. “Days” means calendar days unless otherwise expressly indicated.
“Fiscal Year” means the period of twelve (12) months terminating on June 30 of any year. “Safe Clean Water (SCW) Program Payment” means the Municipality's annual allocation of SCW Program funds as described in Section 16.04.A.2. of the Code disbursed by the District to the Municipality. “Year” means calendar year unless otherwise expressly indicated.

II. PARTY CONTACTS
The District and the Municipality designate the following individuals as the primary points of contact and communication regarding the Municipal Program and the administration and implementation of this Agreement.

Los Angeles County Flood Control District Municipality: West Covina Name: Haris Harouny Name:

Address: 900 S Fremont Ave, Alhambra, CA
91803
Address:

Phone: (626) 300-2620 Phone:

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ATTACHMENT NO.1
Email: [email protected] Email:

Either party to this Agreement may change the individual identified as the primary point of contact above by providing written notice of the change to the other party.

III. EXHIBITS INCORPORATED BYREFERENCE
The following exhibits to this Agreement, including any amendments and supplements hereto, are hereby incorporated herein and made a part of this Agreement:

EXHIBITA – ANNUAL PLAN CONTENTS
EXHIBIT B – GENERAL TERMS AND CONDITIONS
EXHIBIT C – NATURE-BASED SOLUTIONS (Best Management Practices) EXHIBIT D – OPERATIONS AND MAINTENANCE GUIDANCE DOCUMENT IV. MUNICIPAL PROGRAM IMPLEMENTATION
A. The Municipality shall annually prepare and submit to the District, anAnnual Plan. The Annual Plan shall be submitted not later than 90-days prior to the start of the Fiscal Year for which the Plan is prepared.

B. The Municipality shall utilize the SCW Program Payments in compliance with Chapters 16 and 18 of the Code.

C. The Municipality shall comply with the terms and conditions in Exhibits B, C, and D, of this Agreement, and all applicable provisions of Chapters 16 and 18 of the Code, specifically including, without limitation, Section 18.06.

V. SCW PROGRAM PAYMENTS TO MUNICIPALITIES
A. SCW Program Payments will generally be available for disbursement by December 31, provided a duly executed transfer agreement is in effect and subject to the Municipality's compliance with the conditions described in paragraph B, below; however the District may, in its discretion, change the date and number of the actual disbursements for any Fiscal Year based on the amount and timing of revenues actually collected by the District.

B. The District shall disburse the Municipality's SCW Program Payment upon satisfaction of the following conditions: (1) the District has received the Annual Progress/Expenditure Report required pursuant to Section

18.06.D of the Code; (2) the District has received Municipality's Annual Plan for that Fiscal Year, and (3) the Municipality has complied with the audit requirements of Section B-6 of Exhibit B.

C. Notwithstanding any other provision of this Agreement, no disbursement shall be made at any time or in any manner that is in violation of or in conflict with federal, state, County laws, policies, or regulations.

D. All disbursements shall be subject to and be made in accordance with the terms and conditions in this Agreement and Chapters 16 and 18 of the Code.

VI. TERM OF AGREEMENT
This Agreement shall expire at the end of the 2027-28 Fiscal Year. The parties shall thereafter enter into a new agreement based on the most recent standard template agreement approved by the Board.

VII. EXECUTION OF AGREEMENT
This Agreement may be executed simultaneously or in any number of counterparts, including both counterparts that are executed manually on paper and counterparts that are in form of electronic records and are executed electronically, whether digital or encrypted, each of which shall be deemed an original and together shall constitute one and the same instrument.

The District and the Municipality hereby agree to regard facsimile/electronic representations of original signatures of authorized officers of each party, when appearing in appropriate places on this Agreement and on any addenda or amendments thereto, delivered or sent via facsimile or electronic mail or other electronic means, as legally sufficient evidence that such original signatures have been affixed to this Agreement and any addenda or amendments thereto such that the parties need not follow up facsimile/electronic transmissions of such documents with subsequent (nonfacsimile/electronic) transmission of “original” versions of such documents.

Further, the District and the Municipality: (i) agree that an electronic signature of any party may be used to authenticate this Agreement or any addenda or amendment thereto, and if used, will have the same force and effect as a manual signature; (ii) acknowledge that if an electronic signature is used, the other party will rely on such signature as binding the party using signature, and (iii) hereby waive any defenses to the enforcement of the terms of this agreement based on the foregoing forms of signature.

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IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

By:

Name:

Title:

Date:

LOS ANGELES COUNTY
FLOOD CONTROL DISTRICT:

By:

Name:

Title:

Date:

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EXHIBIT A–ANNUAL PLAN CONTENTS
A-1. Description of all projects anticipated to be funded using the SCW Program Payment. Include a discussion of how the projects will result in the achievement of one or more SCW Program Goals, including quantitative targets and corresponding metrics for subsequent reporting of all applicable parameters.

A-2. Description of all programs anticipated to be funded using the SCW Program Payment. Include a discussion of how the programs will result in the achievement of one or more SCW Program Goals; including quantitative targets and corresponding metrics for subsequent reporting of all applicable parameters.

A-3. Description of all operation and maintenance activities anticipated to be funded using the SCW Program Payment.

Include a discussion of how those activities will result in the achievement of one or more SCW Program Goals.

Additional operation and maintenance activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach.

A-4. Description of the stakeholder and community outreach/engagement activities anticipated to be funded with the SCW Program Payment, including discussion of how local NGOs or CBOs will be involved, if applicable, and if not, why. Additional outreach/engagement activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach.

A-5. Description of post-construction monitoring for projects completed using the SCW Program Payment. Additional post-construction monitoring activities, even if funded by other sources, should be referenced to provide an overview of anticipated overall project approach.

A-6. Provide the status of any projects that have been awarded (or are seeking award of) Institute for Sustainable Infrastructure (ISI) verification, if applicable.

A-7. Provide the budget for the activities described in provisions A1 throughA-5 SCW Program Payment.

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EXHIBIT B – GENERAL TERMS AND CONDITIONS
B-1. Accounting and Deposit of Funding Disbursement

1. SCW Program Payments distributed to the Municipality shall be held in a separate interest-bearing account and shall not be combined with other funds. Interest earned from each account shall be used by the Municipality only for eligible expenditures consistent with the requirements of the SCW Program.

2. The Municipality shall not be entitled to interest earned on undisbursed SCW Program Payments; interest earned prior to disbursement is property of the District.

3. The Municipality shall operate in accordance with Generally Accepted Accounting Principles (GAAP).

4. The Municipality shall be strictly accountable for all funds, receipts, and disbursements for their SCW Program Payment.

B-2. Acknowledgement of Credit and Signage
The Municipality shall include appropriate acknowledgement of credit to the District’s Safe, Clean Water Program for its support when promoting activities funded with SCW Program funds or using any data and/or information developed SCW Program funds. When the SCW Program Payment is used, in whole or in part, for construction of an infrastructure Project, signage shall be posted in a prominent location at Project site(s) or at the Municipality’s headquarters and shall include the Safe, Clean Water Program color logo and the following disclosure statement: “Funding for this project has been provided in full or in part from the Los Angeles County Flood Control District’s Safe, Clean Water Program.” At a minimum the sign shall be 2’ x 3’ in size. The Municipality shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this paragraph.

When the SCW Program Payment is used, in whole or in part, for a scientific study, the Municipality shall include the following statement in the study report: “Funding for this study has been provided in full or in part from the Los Angeles County Flood Control District’s Safe, Clean Water Program.” The Municipality shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this paragraph.

B-3. Acquisition of Real Property - Covenant
Any real property acquired in whole or in part with SCW Program funds shall be used for Projects and Programs that are consistent with the SCW Program Goals and with the provisions of Chapter 16 and 18 of the Code.

Any Municipality that acquires the fee title to real property using, in whole or in part, SCW Program funds shall record a document in the office of the Registrar-Recorder/County Clerk containing a covenant not to sell or otherwise convey the real property without the prior express written consent of the District, which consent shall not be unreasonably withheld.

B-4. Amendment
Except as provided in Section II of the Agreement, no amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties. No oral or written understanding or agreement not incorporated in this Agreement is binding on any of the parties.

B-5. Assignment
The Municipality shall not assign this Agreement.

B-6. Audit and Recordkeeping

1. The Municipality shall retain for a period of seven (7) years, all records necessary in accordance with Generally Accepted Accounting Principles to determine the amounts expended, and eligibility of Projects implemented using SCW Program Payments. The Municipality, upon demand by authorized representatives of the District, shall make such records available for examination and review or audit by the District or its authorized representatives. Records shall include accounting records, written policies and procedures, contract files, original estimates, correspondence, change order files, including documentation covering negotiated settlements, invoices, and any other supporting evidence deemed necessary to substantiate charges related to SCW Program Payments and expenditures.

2. The Municipality is responsible for obtaining an independent audit to determine compliance with the terms and conditions of this Agreement and all requirements applicable to the Municipality contained in chapters 16 and 18 of the Code. Municipality shall obtain an independent audit of their SCW Program Payments every three (3) years. Audits shall be funded with Municipal Program funds.

3. Municipality shall file a copy of all audit reports by the ninth (9 ) month from the end of each three (3) year period th
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to detail the preceding three (3) years of expenditures. Audit reports shall be posted on the District’s publicly accessible website. Due date example below.

Every Third Fiscal Year
Fiscal Year Audit Begins Audit Report Due to District
2023-24 7/1/2027 No later than 3/31/2028

4. Upon reasonable advanced request, the Municipality shall permit the Chief Engineer to examine the infrastructure Projects using SCW Program Payments. The Municipality shall permit the authorized District representative, including the Auditor-Controller, to examine, review, audit, and transcribe any and all audit reports, other reports, books, accounts, papers, maps, and other records that relate to the SCW Program Payments. Examination activities are considered District administration of the SCW Program.

5. Expenditures determined by an audit to be in violation of any provision of Chapters 16 or 18 of the Code, or of this Agreement, shall be subject to the enforcement and remedy provisions of Section 18.14 of the Code.

B-7. Availability of Funds
District’s obligation to disburse the SCW Program Payment is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason including, but not limited to, failure to fund allocations necessary for disbursement of the SCW Program Payment, the District shall not be obligated to make any disbursements to the Municipality under this Agreement. This provision shall be construed as a condition precedent to the obligation of the District to make any disbursements under this Agreement. Nothing in this Agreement shall be construed to provide the Municipality with a right of priority for disbursement over any other Municipality. If any disbursements due to the Municipality under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the District that such disbursement will be made to the Municipality when sufficient funds do become available, but this intention is not binding. If this Agreement’s funding for any Fiscal Year is reduced or deleted by order of the Board, the District shall have the option to either cancel this Agreement with no liability occurring to the District or offer an amendment to the Municipality to reflect the reduced amount.

B-8. Choice of Law
The laws of the State of California govern this Agreement.

B-9. Claims
Any claim of the Municipality is limited to the rights, remedies, and claims procedures provided to the Municipality under this Agreement. Municipal expenditures of a SCW Program Payment that involves the District shall utilize a separate and specific agreement to that Project that includes appropriate indemnification superseding that in this Agreement.

B-10. Compliance with SCW Program
The Municipality shall comply with and require its contractors and subcontractors to comply with all provisions of Chapters 16 and 18 of the Code.

B-11. Compliance with Law, Regulations, etc.

The Municipality shall, at all times, comply with and require its contractors and subcontractors to comply with all applicable local, state and federal laws, rules, guidelines, regulations, and requirements.

B-12. Continuous Use of Municipal Projects; Lease or Disposal of Municipal Projects The Municipality shall not abandon, substantially discontinue use of, lease, or dispose of all or a significant part or portion of any Project funded in whole or in part with SCW Program Payments during the useful life (defined as 30 years unless specified otherwise in annual plans and subsequent reports) of the Project without prior written approval of the District.

Such approval may be conditioned as determined to be appropriate by the District, including a condition requiring repayment of a pro rata amount of the SCW Program Payments used to fund the Project together with interest on said amount accruing from the date of lease or disposal of the Project.

B-13. Disputes
Should a dispute arise between the parties, the party asserting the dispute will notify the other parties in writing of the dispute. The parties will then meet and confer within 21 calendar days of the notice in a good faith attempt to resolve the dispute.

If the matter has not been resolved through the process set forth in the preceding paragraph, any party may initiate mediation of the dispute. Mediation will be before a retired judge or mediation service mutually agreeable to the parties.

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All costs of the mediation, including mediator fees, will be paid one-half by the District and one-half by the Municipality.

SCW Program Payments shall not be used to pay for any costs of the mediation.

The parties will attempt to resolve any dispute through the process set forth above before filing any action relating to the dispute in any court of law.

B-14. Final Inspection and Certification of Registered Professional Upon completion of the design phase and before construction of a project, the Municipality shall provide certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist) that the design has been completed.

Upon completion of the project, the Municipality shall provide for a final inspection and certification by a California Registered Professional (i.e., Professional Civil Engineer, Engineering Geologist), that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Agreement.

B-15. Force Majeure.

In the event that Municipality is delayed or hindered from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, inability to procure materials not related to the price thereof, riots, insurrection, war, or other reasons of a like nature beyond the control of the Municipality, then performance of such acts shall be excused for the period of the delay, and the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.

B-16. Funding Considerations and Exclusions

1. All expenditures of SCW Program Payments by Municipality must comply with the provisions of Chapters 16 and 18 of the Los Angeles County Flood Control District Code, including but not limited to the provisions regarding eligible expenditures contained in Section 16.05.A.2 and the provision regarding ineligible expenditures contained in Section 16.05.A.3.

2. SCW Program Payments shall not be used in connection with any Project implemented as an Enhanced Compliance Action ("ECA") and/or Supplemental Environmental Project ("SEP") as defined by State Water Resources Control Board Office of Enforcement written policies, or any other Project implemented pursuant to the settlement of an enforcement action or to offset monetary penalties imposed by the State Water Resources Control Board, a Regional Water Quality Control Board, or any other regulatory authority; provided, however, that SCW funds may be used for a Project implemented pursuant to a time schedule order ("TSO") issued by the Los Angeles Regional Water Quality Control Board if, at the time the TSO was issued, the Project was included in an approved watershed management program (including enhanced watershed management programs) developed pursuant to the MS4 Permit.

B-17. Indemnification
The Municipality shall indemnify, defend and hold harmless the District, the County of Los Angeles and their elected and appointed officials, agents, and employees from and against any and all liability and expense, including defense costs, legal fees, claims, actions, and causes of action for damages of any nature whatsoever, including but not limited to bodily injury, death, personal injury, or property damage, arising from or in conjunction with: (1) any Project or Program implemented by the Municipality, in whole or in part, with SCW Program Payments or (2) any breach of this Agreement by the Municipality.

B-18. Independent Actor
The Municipality, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the District.

The Municipality shall not contract work with a contractor who is in a period of debarment from any agency within the District. (LACC Chapter 2.202)
B-19. Integration
This is an integrated Agreement. This Agreement is intended to be a full and complete statement of the terms of the agreement between the District and Municipality, and expressly supersedes any and all prior oral or written agreements, covenants, representations and warranties, express or implied, concerning the subject matter of this Agreement.

B-20. Lapsed Funds

1. The Municipality shall be able to carry over uncommitted SCW Program Payments for up to five (5) years from Municipal Program
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the end of the fiscal year in which those funds are transferred from the District to the Municipality.

2. If the Municipality is unable to expend the SCW Program Payment within five (5) years from the end of the fiscal year in which those funds are transferred from the District to the Municipality, then lapsed funding procedures will apply. Lapsed funds are funds that were transferred to the Municipality but were not committed to eligible expenditures by the end of the fifth (5th) fiscal year after the fiscal year in which those funds were transferred from the District.

3. Lapsed funds shall be allocated by the Watershed Area Steering Committee of the respective Watershed Area to a new Project with benefit to that Municipality, if feasible in a reasonable time frame, or otherwise to the Watershed Area.

4. In the event that funds are to lapse, due to circumstances beyond the Municipality’s control, then the Municipality may request an extension of up to twelve (12) months in which to commit the funds to eligible expenditures.

Extension Requests must contain sufficient justification and be submitted to the District in writing no later than three (3) months before the funds are to lapse.

5. The decision to grant an extension is at the sole discretion of the District.

6. Funds still uncommitted to eligible expenditures after an extension is granted will be subject to lapsed funding procedures without exception. Example Below.

Fiscal Year
Transferred
Funds Lapse
After
Extension
Request Due
Commit By
2019-20 6/30/2025 No later than
3/31/2025
No later than
6/30/2026
B-21. Municipal Project Access
Upon reasonable advance request, the Municipality shall ensure that the District or any authorized representative, will have safe and suitable access to the site of any Project implemented by the Municipality in whole or in part with SCW Program Payments at all reasonable times.

B-22. Non-Discrimination
The Municipality agrees to abide by all federal, state, and County laws, regulations, and policies regarding nondiscrimination in employment and equal employment opportunity.

B-23. No Third-Party Rights
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein B-24. Notice

1. The Municipality shall notify the District in writing within five (5) working days of the occurrence of the following:
a. Bankruptcy, insolvency, receivership or similar event of the Municipality; or b. Actions taken pursuant to State law in anticipation of filing for bankruptcy.

2. The Municipality shall notify the District within ten (10) working days of any litigation pending or threatened against the Municipality regarding its continued existence, consideration of dissolution, or disincorporation.

3. The Municipality shall notify the District promptly of the following:
a. Any significant deviation from the submitted Annual Plan for the current Fiscal Year, including discussion of any major changes to the scope of funded projects or programs, noteworthy delays in implementation, reduction in benefits or community engagement, and/or modifications that change the SCW Program Goals intended to be accomplished.
b. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Municipality agrees that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the District has determined what actions should be taken to protect and preserve the resource. The Municipality agrees to implement appropriate actions as directed by the District. c. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by District representatives with at least fourteen (14) days’ notice to the District.

B-25. Municipality’s Responsibility for Work
The Municipality shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Municipality shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project.

The District will not mediate disputes between the Municipality and any other entity concerning responsibility for Municipal Program
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performance of work.

B-26. Reporting
The Municipality shall be subject to and comply with all applicable requirements of the District regarding reporting requirements. Municipalities shall report available data through the SCW Reporting Module, once available.

1. Annual Progress/Expenditure Reports. The Municipality shall submit Annual Progress/Expenditure Reports, using a format provided by the District, within six (6) months following the end of the Fiscal Year to the District to detail the activities of the prior year. The Annual Progress/Expenditure Reports shall be posted on the District’s publicly accessible website and on the Municipality’s website. The Annual Progress/Expenditure Report shall include:
a. Amount of funds received;
b. Breakdown of how the SCW Program Payment has been expended; c. Documentation that the SCW Program Payment was used for eligible expenditures in accordance with Chapters 16 and 18 of the Code;
d. Description of activities that have occurred, milestones achieved, and progress made to date, during the applicable reporting period including comparison to the Annual Plan and corresponding metrics; e. Discussion of any existing gaps between what was planned and what was achieved for the prior year, include any lessons learned;
f. Description of the Water Quality Benefits, Water Supply Benefits, and Community Investment Benefits and a summary of how SCW Program Payments have been used to achieve SCW Program Goals for the prior year, including graphical representation of available data and specific metrics to demonstrate the benefits being achieved through the years’ investments.
g. Discussion of alignment with other local, regional, and state efforts, resources, and plans, as applicable. This includes discussion of opportunities for addressing additional SCW Program Goals, leveraging SCW Program Goals, and increasing regional capacity to supplement the SCW Program. h. Additional financial or Project-related information in connection with activity funded in whole or in part using SCW Program Payments as required by the District.
i. Certification from a California Registered Professional (Civil Engineer or Geologist, as appropriate), that projects implemented with SCW Program Payments were conducted in accordance with Chapters 16 and 18 of the Code.
j. Report on annual and total (since inception of program) benefits provided by programs and projects funded by SCW Program Payment. This includes comparisons to annual plans and alignment with corresponding specific quantitative targets and metrics (note that SCW Reporting Module will facilitate calculation of benefits and graphical representation of pertinent data):
i. Annual volume of stormwater captured and treated
ii. Annual volume of stormwater captured and reused
iii. Annual volume of stormwater captured and recharged to a managed aquifer iv. Annual creation, enhancement, or restoration of Community Investment Benefits. If none, discuss considerations explored and reasons to not include.
v. Annual acreage increases in Nature-Based Solutions and claimed level of NBS (with matrix demonstrating determination of good, better, best, as outlined in Exhibit C). If none, discuss considerations explored and reasons to not include.
vi. Annual expenditures providing DAC Benefits. If none, discuss considerations explored and reasons to not include.

2. Documentation of the Community Outreach and Engagement utilized for and/or achieved with the SCW Program Payment described in the Annual Plan Exhibit A. This information must be readily accessible to members of the public.

3. As Needed Information or Reports. The Municipality agrees to promptly provide such reports, data, and information as may be reasonably requested by the District including, but not limited to material necessary or appropriate for evaluation of the SCW Program or to fulfill any reporting requirements of the County, state or federal government.

B-27. Representations, Warranties, and Commitments
The Municipality represents, warrants, and commits as follows:

1. Authorization and Validity. The execution and delivery of this Agreement, including all incorporated documents, by the individual signing on behalf of Municipality, has been duly authorized by the governing body of Municipality, as applicable. This Agreement constitutes a valid and binding obligation of the Municipality, enforceable in accordance with its terms, except as such enforcement may be limited by law.

2. No Violations. The execution, delivery, and performance by the Municipality of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date set forth on the first page hereof, or result in any breach or default under any contract, obligation, indenture, or other instrument Municipal Program
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to which the Municipality is a party or by which the Municipality is bound as of the date set forth on the first page hereof.

3. No Litigation. There are no pending or, to the Municipality’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which affect the Municipality's ability to complete the Annual Plan.

4. Solvency. None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of the Municipality. As of the date set forth on the first page hereof, the Municipality is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Municipality is able to pay its debts as they become due.

5. Legal Status and Eligibility. The Municipality is duly organized and existing and in good standing under the laws of the State of California. The Municipality shall at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority.

6. Good Standing. The Municipality must demonstrate it has not failed to comply with previous County and/or District audit disallowances within the preceding five years.

B-28. Travel
Any reimbursement for necessary ground transportation and lodging shall be at rates not to exceed those set by the California Department of Human Resources; per diem costs will not be eligible expenses. These rates may be found at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. Reimbursement will be at the State travel amounts that are current as of the date costs are incurred by the Municipality. No travel outside the Los Angeles County Flood Control District region shall be reimbursed unless prior written authorization is obtained from the Program Manager.

B-29. Unenforceable Provision
In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable, the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

B-30. Withholding of Disbursements and Material Violations Notwithstanding any other provision of this Agreement, the District may withhold all or any portion of the SCW Program Payment for any Fiscal Year in the event that:

1. The Municipality has violated any provision of this Agreement; or

2. The Municipality fails to maintain reasonable progress in achieving SCW Program Goals, following an opportunity to cure.

3. Failure to remain in Good Standing, described in Section B-26 of Exhibit B.

4. Failure to submit annual reports on meeting SCW Program Goals.

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EXHIBIT C – NATURE BASED SOLUTIONS (NBS) BEST MANAGEMENT PRACTICES Municipalities shall consider incorporation of Nature-based solutions (NBS) into their projects. NBS refers to the sustainable management and use of nature for undertaking socio-environmental challenges, including climate change, water security, water pollution, food security, human health, and disaster risk management. As this environmental management practice is increasingly incorporated into projects for the SCW Program, this guidance document may be expanded upon to further quantify NBS practices based on benefits derived from their incorporation on projects.

The SCW Program defines NBS as a Project that utilizes natural processes that slow, detain, infiltrate or filter Stormwater or Urban Runoff. These methods may include relying predominantly on soils and vegetation; increasing the permeability of Impermeable Areas; protecting undeveloped mountains and floodplains; creating and restoring riparian habitat and wetlands; creating rain gardens, bioswales, and parkway basins; enhancing soil through composting, mulching; and, planting trees and vegetation, with preference for native species. NBS may also be designed to provide additional benefits such as sequestering carbon, supporting biodiversity, providing shade, creating and enhancing parks and open space, and improving quality of life for surrounding communities. NBS include Projects that mimic natural processes, such as green streets, spreading grounds and planted areas with water storage capacity. NBS may capture stormwater to improve water quality, collect water for reuse or aquifer recharge, or to support vegetation growth utilizing natural processes.

Municipalities are to include in eachAnnual Progress/Expenditure Report whether and how their project achieves a good, better, or best for each of the 6 NBS methods in accordance with the guidance below. Additionally, Annual Progress/ Expenditure Reports should include discussion on any considerations taken to maximize the class within each method. If at least 3 methods score within a single class, the overall project can be characterized as that class.

Municipalities must attach a copy of the matrix for each project with the good, better, or best column indicated for each method, to facilitate District tracking of methods being utilized.

METHODS GOOD BETTER BEST
Vegetation/Green
Space
Use of climate
appropriate, eco-friendly
vegetation
(groundcover, shrubs, and
trees) / green space 5%-
15% covered by
new climate-appropriate
vegetation
Use of native, climate
appropriate, eco-friendly
vegetation
(groundcover, shrubs, and
trees) / green space 16%-
35% covered by new
native vegetation
Establishment of plant
communities with a
diversity of native
vegetation
(groundcover, shrubs, and
trees) / green space that is
both native and climateappropriate
More than 35% covered by
new native vegetation
Increase of
Permeability
Installation of vegetated
landscape – 25%-49%
paved area removed
Redesign of existing
impermeable surfaces
and/or installation of
permeable surfaces (e.g.
permeable pavement and
infiltration trenches)
Installation of vegetated
landscape – 50%-74%
paved area removed
Improvements of soil health
(e.g., compaction
reduction)
Installation of vegetated
landscape – 75%-100%
paved area removed
Creation of well-connected
and self-sustained natural
landscapes with healthy
soils, permeable surfaces,
and appropriate vegetation
Protection of
Undeveloped
Mountains &
Floodplains
●Preservation of native
vegetation
●Minimal negative impact
to existing drainage
system
●Preservation of native
vegetation
●Installation of new
feature(s) to improve
existing drainage system
●Creation of open green
space
●Installation of features to
improve natural hydrology
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Creation &
Restoration of
Riparian Habitat &
Wetlands
●Partial restoration of
existing riparian habitat
and wetlands Planting of
climate appropriate
vegetation between 11 and
20 different climate
appropriate or native plant
species newly planted
●No potable water used to
sustain the wetland
●Full restoration of existing
riparian habitat
and wetlands
●Planting of native
vegetation - between 21
and 40 different native
plant species newly
planted
●No potable water used to
sustain the wetland
●Full restoration and
expansion of existing
riparian habitat and
wetlands Planting of plant
communities with a
diversity of native
vegetation – between 41
and 50 different native
plant species newly
planted
●No potable water used to
sustain the wetland
New Landscape
Elements
Elements designed to
capture runoff for other
simple usage (e.g. rain
gardens and cisterns),
capturing the 85th
percentile 24-hour storm
event for at least 50% of
the entire parcel
Elements that design to
capture/redirect runoff and
filter pollution (e.g.
bioswales and parkway
basins), capturing the 85th
percentile 24-hour storm
event from the
entire parcel
Large sized elements that
capture and treat runoff to
supplement or replace
existing water systems
(e.g. wetlands, daylighting
streams, groundwater
infiltration, floodplain
reclamation), capturing the
90th percentile 24-hour
storm event from the entire
parcel and/or capturing offsite runoff
Enhancement of Soil
Use of soil amendments
such as mulch and
compost to retain moisture
in the soil and prevent
erosion
Planting of new climate
appropriate vegetation to
enhance soil organic
matter
Use of soil amendments
such as mulch and
compost that are locally
generated to retain
moisture in the soil, prevent
erosion, and support locally
based composting and
other
soil enhancement
activities
Planting of new native,
climate-appropriate
vegetation to enhance soil
organic matter
Use of soil amendments
such as mulch and
compost that are locally
generated, especially use
of next-generation design
with regenerative
adsorbents (e.g.
woodchips, biochar) to
retain moisture in the soil,
prevent erosion, and
support on-site
composting and other
soil enhancement
activities
Planting of new native,
climate appropriate
vegetation to enhance soil
organic matter
Municipal Program
Agreement No.2024MP83

Page 12 of 14 ends

EXHIBIT D – OPERATIONS AND MAINTENANCE GUIDANCE DOCUMENT Municipalities shall operate and maintain infrastructure projects for the useful life of the project and are to consider using the following guidance for operations and maintenance for infrastructure projects. Operational maintenance is the care and upkeep of Projects that may require detailed technical knowledge of the Project’s function and design. Project specific operational and maintenance plans shall consider the activities listed below and set forth specific activities and frequencies (not limited to those below) as determined to be appropriate by the Municipalities and best practices, including stakeholder engagement as applicable. Operational maintenance is to be performed by the operator of the Project with a purpose to make the operator aware of the state of readiness of the Project to deliver stormwater and urban runoff benefits.

1. Litter Control
• Regular removal of litter, nonhazardous waste materials, and accumulated debris near planted areas, rock areas, decomposed granite areas, rest areas, fence perimeters, adjoining access roads and driveways, drains, pedestrian trails, viewing stations, shelter houses, and bicycle pathways. • Regular inspection and maintenance of pet waste stations. • Maintaining trash receptacles.
• Removal of trash, debris, and blockages from bioswales. • Inspection and cleaning of trash booms.
• Inspection of weir gates and stop logs to clean debris, as required.

2. Vegetation Maintenance
• Weed control
o Recognition and removal of weeds, such as perennial weeds, morning glory, vine-type weeds, ragweed, and other underground spreading weeds.
o Avoiding activities that result in weed seed germination (e.g. frequent soil cultivation near trees or shrubs).
o Regular removal of weeds from landscape areas, including from berms, painted areas, rock areas, gravel areas, pavement cracks along access roads and driveways, drains, pedestrian trails, viewing stations, park shelters, and bicycle paths.
• Tree and shrubbery trimming and care
o Removal of dead trees and elimination of diseased/damaged growth. o Prevent encroachment of adjacent property and provide vertical clearance. o Inspect for dead or diseased plants regularly.
• Wetland vegetation and landscape maintenance
o Installation and maintenance of hydrophytic and emergent plants in perennially wet and seasonal, intermittent habitats.
o Draining and drawdown of wetland and excessive bulrush removal o Weed and nuisance plant control.
o Removal of aquatic vegetation (e.g. algae and primrose) using appropriate watercraft and harvesting equipment.
o Wildflower and meadow maintenance.
o Grass, sedge, and yarrow management.
o Removal of unwanted hydroseed.

3. Wildlife Management
• Exotic species control.
• Provide habitat management; promote growth of plants at appropriate densities and promote habitat structure for animal species.
• Protect sensitive animal species (e.g. protection during critical life stages including breeding and migration).
• Avoid disturbances to nesting birds.
• Avoid spread of invasive aquatic species.

4. Facility Inspection
• Inspect project sites for rodent and insect infestations on a regular basis. • Inspect for and report graffiti in shelter houses, viewing stations, benches, paving surfaces, walls, fences, and educational and directional signs.
• Inspect facilities for hazardous conditions on roads and trails (e.g. access roads and trails, decomposed granite pathways, and maintenance roads).

Municipal Program
Agreement No.2024MP83

Page 13 of 14 ends

• Inspect shade structures for structural damage or defacement. • Inspect hardscapes.
• Inspect and maintain interpretive and informational signs. • Inspect site furnishings (e.g. benches, hitching posts, bicycle racks). • Maintain deck areas (e.g. benches, signs, decking surfaces). • Visually inspect weirs and flap gates for damage; grease to prevent locking. • Inspect all structures after major storm events, periodically inspect every 3 months, and operate gates through full cycles to prevent them from locking up.

5. Irrigation System Management
• Ensuring automatic irrigation controllers are functioning properly and providing various plant species with proper amount of water.
o Cycle controller(s) through each station manually and automatically to determine if all facets are functioning properly.
o Inspection should be performed at least monthly.
o Recover, replace, or refasten displaced or damaged valve box covers. o Inspect and repair bubbler heads.
o Repair and replace broken drip lines or emitters causing a loss of water (to prevent ponding and erosion).
o Maintain drip system filters to prevent emitters from clogging. Inspection and cleaning should occur at least monthly.
o Inspect and clean mainline filters, wye strainers, basket filters, and filters at backflow devices twice a year.
o Maintain and check function of the drip system.
• Keeping irrigation control boxes clear of vegetation. • Operating irrigation system to ensure it does not cause excessively wet, waterlogged areas, and slope failure.
• Utilizing infrequent deep watering techniques to encourage deep rooting, drought tolerant plant characteristics to promote a self-sustaining, irrigation free landscape. • Determine watering schedules based on season, weather, variation in plant size, and plant varieties. At least four times a year (e.g. change of season), reschedule controller systems. • Turn off irrigation systems at the controller at the beginning of the rainy season, or when the soil has a high enough moisture content.
• Use moisture sensing devices to determine water penetration in soil.

6. Erosion Management and Control
• Inspect slopes for erosion during each maintenance activity. • Inspect basins for erosion.
• Take corrective measures as needed, including filling eroded surfaces, reinstalling or extending bank protection, and replanting exposed soil.

7. Ongoing Monitoring Activities
• Monitor controllable intake water flow and water elevation. • Examine inflow and outflow structures to ensure devices are functioning properly and are free of obstructions.
• Water quality sampling (quarterly, unless justified otherwise). • Checking telemetry equipment.
• Tracking and reporting inspection and maintenance records.

8. Vector and Nuisance Insect Control
• Monitoring for the presence of vector and nuisance insect species. • Adequate pretreatment of influent wastewater to lessen production of larval mosquitos. • Managing emergent vegetation.
• Using hydraulic control structures to rapidly dewater emergent marsh areas. • Managing flow velocities to reduce propagation of vectors.

Municipal Program
Agreement No.2024MP83

Page 14 of 14 ends

AGENDA ITEM NO. 3

ANNUAL FOURTH OF JULY SPECTACULAR
RECOMMENDATION:

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

1. Award Request for Proposal (RFP) No. 2025-11 for Firework Display/Show for the City of West Covina's Fourth of July Spectacular to Pyro Spectaculars, Inc.; and

BACKGROUND:

The City of West Covina has a tradition of celebrating Independence Day with a professional fireworks display. The event is hosted annually at the West Covina Sportsplex (2100 Azusa Avenue) and is a key component of the City’s community engagement and patriotic programming.

As part of the City’s effort to secure a qualified and experienced fireworks vendor for the City's 2025–2027 Fourth of July Fireworks Spectaculars, a formal Request for Proposals (RFP) was issued and posted on PlanetBids, the City’s online procurement portal.

The evaluation criteria outlined in the RFP included:

Completeness of Proposal
Relevant Experience and Qualifications of Proposed Project Team Capacity to Perform
Proposed Firework Display/Show
Proposed Cost
During the RFP window, a separate fireworks company submitted a message through PlanetBids indicating that they would not be available to perform on July 4, 2025, and instead offered availability for an alternative date. Given the City's commitment to hosting its Independence Day celebration on July 4, their request was disqualified from consideration for not meeting the date requirement.

DISCUSSION:

The selected vendor is responsible for producing an 18-minute fireworks show beginning promptly at 9:00 p.m., utilizing musical selections chosen in collaboration with City staff. The vendor must also provide all labor, equipment, materials, transportation, and related services necessary to safely conduct the show. Additionally, the contractor is required to obtain and pay for all applicable permits from the City, County, and State.

Pyro Spectaculars submitted a comprehensive proposal that demonstrated extensive experience in producing municipal fireworks displays, including past shows for the City of West Covina. Their proposal meets all criteria outlined in the RFP, including the use of properly skilled personnel, compliance with safety regulations, and the ability to execute a grand finale with a similar aerial shell composition to previous years.

The proposal includes:

Sample Program Breakdown:Main Body Aerial Shells (642 total)

2.5” Selections – 192
3” Selections – 250
4” Selections – 200
Grand Finale (271 total)

2.5” Bombardment Shells – 126
3” Bombardment Shells – 85
4” Bombardment Shells – 60
Pyro Spectaculars is a nationally recognized fireworks production company that has been in business for over 100 years. The company is family-owned and operated, with multiple generations of expertise in pyrotechnic production. Pyro Spectaculars has produced large-scale shows for municipalities and major events including for the cities of Los Angeles, Long Beach and at major events hosted at The Rose Bowl and Major League and NFL events.

City staff thoroughly reviewed the proposal and although Pyro Spectaculars was the only vendor that responded to the RFP, staff found that Pyro Spectaculars continues to produce high-quality productions that are safe, reliable and are within the City's budget. Their longstanding reputation, attention to detail, and understanding of the City's expectations make them the recommended vendor for this multi-year engagement. Although the original intent was to enter into a three-year contract with the option of two one-year extensions, Pyro Spectaculars indicated they could not guarantee a price beyond 2025 due to tariffs and the volatility of the market. As such, staff recommends entering into agreement for an initial term of one year with the option to extend for up to four additional one-year periods. Further, each extension year would require a written amendment. To streamline the process, staff is requesting that the City Council authorize a maximum compensation of $50,000.00 for each extension year. This will provide for flexibility to account for modest price increases for the service. In the event that the proposed cost for any future year exceeds $50,000.00, separate City Council approval would be required.

LEGAL REVIEW:

The City Attorney's Office has reviewed the agreement and approved it as to form and will review the final form of the agreement prior to execution.

OPTIONS:

The City Council has the following options:

1. Approve staff's recommendations; or

2. Provide alternate direction.

Prepared by: Susie Perez, Deputy Community Services Director Prepared by: Susie Perez, Deputy Community Services Director Additional Approval: Roxanne E. Lerma, Assistant City Manager Fiscal Impact
FISCAL IMPACT:

The total fiscal impact to the General Fund associated with Pyro Spectacular's services for the firework display for West Covina's annual Fourth of July Firework Spectacular is $38,750.00. The amount is entered in the Proposed Fiscal Year 2025-26 Budget.

Attachments
Attachment No. 1 - Agreement for Services
CITY COUNCIL GOALS & OBJECTIVES: A Creative and Active Community Enhance City Image and Effectiveness
.
1 Pyro Spectaculars, Inc.

CITY OF WEST COVINA

AGREEMENT FOR SERVICES
WITH
PYRO SPECTACULARS, INC.

FOR

FIREWORKS PRODUCTION
THIS AGREEMENT FOR SERVICES is made and entered into as of June 4, 2025 (“Effective Date”), by and between the CITY OF WEST COVINA, a municipal corporation (“City”), and PYRO SPECTACULARS, INC., a California corporation (“Contractor”).

RECITALS
A. City proposes to utilize the services of Contractor as an independent contractor to City to produce and provide the City’s 4th of July fireworks production, as more fully described herein; and
B. Contractor represents that it has that degree of specialized expertise necessary and holds all necessary licenses to practice and perform the services herein contemplated; and C. City and Contractor desire to contract for the specific services described in Exhibits “A” and “B” and desire to set forth their rights, duties and liabilities in connection with the services to be performed; and
D. No official or employee of City has a financial interest, within the provisions of Sections 1090-1092 of the California Government Code, in the subject matter of this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

1.0. SERVICES PROVIDED BY CONTRACTOR

1.1. Scope of Work. Contractor shall provide the equipment and perform the tasks to produce the City’s July 4th fireworks production (the “Production”) in accordance with the Scope of Work, attached hereto as Exhibit “A” and Contractor’s Proposal, attached hereto as Exhibit “B,” both incorporated herein. Contractor shall furnish, at Contractor’s expense, all properly skilled personnel, labor, materials, necessary tools, equipment, and all taxes, utility and transportation services required to provide the Production and related work under this Agreement. Contractor shall provide the Production in accordance with the Schedule of Performance, attached hereto as Exhibit “C” and incorporated herein.

1.2. Professional Practices. All services to be provided by Contractor pursuant to this Agreement shall be provided by personnel experienced in their respective fields and in a manner consistent with the standards of care, diligence and skill ordinarily exercised by persons in similar fields and circumstances in accordance with sound professional practices. Contractor shall keep itself informed of federal, state and local laws and regulations which in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement.

Contractor shall at all times observe and comply with all such laws and regulations. City officers and employees shall not be liable at law or in equity for any claims or damages occurring as a result of failure of Contractor to comply with this section.

ATTACHMENT NO. 1
.
2 Pyro Spectaculars, Inc.

1.3. Warranty. Contractor warrants that it shall perform the services required by this Agreement in compliance with all applicable Federal and California employment laws, including, but not limited to, those laws related to minimum hours and wages; occupational health and safety; fair employment and employment practices; workers’ compensation; and all other Federal, State and local laws and ordinances applicable to the services required under this Agreement.

1.4. Non-Discrimination. In performing this Agreement, Contractor shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religious creed, color, national origin, ancestry, physical disability, mental disability, reproductive health decisionmaking, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or veteran or military status, except as permitted pursuant to Section 12940 of the California Government Code.

1.5. Proprietary Rights. Contractor represents and warrants that it owns all copyrights, including performance rights, to the Production, except that Contractor does not own City-owned material or third-party material that has been included in the Production, and as to such Cityowned and third party-owned material, City assumes full responsibility therefor. City agrees that Contractor shall retain ownership of, and all copyrights and other rights to, the Production, except that Contractor shall not acquire or retain any ownership or other rights in or to City-owned material and third party-owned material and shall not be responsible in any way for such material.

If applicable, City consents to the use of City-owned material and represents that is has or will obtain any permission from appropriate third parties sufficient to authorize public exhibition of any such material in connection with the Production. Contractor reserves the ownership rights in its trade names that are used in or are a product of the Production. Any reproduction by sound, video or other duplication or recording process by City without the express written permission of Contractor is prohibited.

2.0. COMPENSATION

2.1. Compensation. City agrees to pay Contractor a fee of Thirty-Eight Thousand Seven Hundred Fifty Dollars ($38,750.00) (“Contractor’s Fee”). Contractor shall be paid in accordance with the payment schedule set forth in Section 2.2. If City and Contractor agree to extend the term of this Agreement as set forth herein, Contractor’s maximum annual compensation during each extension period shall not exceed Fifty Thousand Dollars ($50,000.00).

2.2. Payment Schedule. City agrees to pay Contractor an initial payment equal to fifty percent (50%) of Contractor’s Fee, totaling Nineteen Thousand Three Hundred Seventy-Five Dollars ($19,375.00) (“Initial Payment”) upon execution of this Agreement by both parties, but no later than June 12, 2025. The Initial Payment is partial payment toward the preproduction services and costs set forth in the Scope of Work. City agrees to pay the remaining fifty percent (50%) of Contractor’s Fee, totaling Nineteen Thousand Three Hundred Seventy-Five Dollars ($19,375.00), no later than July 7, 2025, provided that Contractor has provided City an invoice for such balance at least fourteen (14) days prior to such date.

2.3. Additional Costs and Expenses. Contractor shall pay all normal expenses directly related to the Production including freight, insurance as set forth herein, pyrotechnic products, pyrotechnic equipment, experienced pyrotechnic personnel to set up and discharge the pyrotechnics, and those additional items outlined as Contractor’s responsibility in the Scope of Work. City shall pay all costs related to the Production not supplied by Contractor, including those items outlined as City’s responsibility in this Agreement and the Scope of Work. .
3 Pyro Spectaculars, Inc.

2.4. Additional Services. Contractor shall not receive compensation for any services provided outside the scope of services specified in this Agreement unless the City Manager, prior to Contractor performing the additional services, approves such additional services in writing, memorialized in a written amendment to this Agreement. It is specifically understood that oral requests and/or approvals of such additional services or additional compensation shall be barred and are unenforceable.

2.5. Records and Audits. Records of Contractor’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times from the Effective Date until three (3) years after the termination or expiration of this Agreement.

3.0. TERM AND TERMINATION

3.1. Term. This Agreement shall commence on the Effective Date and continue through May 30, 2026, unless previously terminated as provided herein. Thereafter, this Agreement may be extended for a maximum of four (4) successive one (1) year periods upon mutual agreement of the parties. Such extensions, if any, will be evidenced by a written amendment to this Agreement. City agrees to notify Contractor by March 1 of the term or any extension period regarding whether the City intends to extend the term for an additional year.

3.2. Notice of Termination. The City reserves and has the right and privilege of canceling, suspending or abandoning the execution of all or any part of the work contemplated by this Agreement, with or without cause, at any time prior to the Production, by providing written notice to Contractor.

In the event this Agreement is terminated pursuant to this Section, City agrees to pay Contractor the following percentages of Contractor’s Fee as liquidated damages:
(a) 50% if termination occurs 30 or more days prior to July 4, 2025; (b) 75% if termination occurs 15 to 29 days prior to July 4, 2025; (c) 100% if termination occurs within 14 days of July 4, 2025.

If City cancels the Production, it will be impractical or extremely difficult to fix the actual amount of Contractor’s damages. Therefore, the parties agree that the foregoing represents a reasonable estimate of the damages Contractor will suffer if City cancels the Production.

If City terminates pursuant to subsection (a), the parties acknowledge and agree that no additional payment will be made to Contractor. If City terminates pursuant to subsection (b), the parties acknowledge and agree that the City will pay Contractor twenty-five percent (25%) of Contractor’s Fee, which amount represents the 75% liquidated damages amount less the 50% paid as part of the Initial Payment. If City terminates pursuant to subsection (c), the parties acknowledge and agree that City will pay Contractor 50% of Contractor’s Fee, which amount represents the 100% liquidated damages amount less the 50% paid as part of the Initial Payment.

4.0. INSURANCE

4.1. Minimum Scope and Limits of Insurance. Contractor shall obtain, maintain, and keep in full force and effect during the life of this Agreement all of the following minimum scope of insurance coverages with an insurance company authorized to do business in California, with a current A.M. Best’s rating of no less than A:VII, and approved by City:
.
4 Pyro Spectaculars, Inc.
(a) Commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than Five Million Dollars ($5,000,000.00) per occurrence and general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Contractor shall provide evidence that its commercial general liability insurance policy includes coverage for fireworks displays and pyrotechnic activities, without any exclusion or limitation for such activities. If such coverage is not available under the commercial general liability policy, Contractor shall obtain and maintain a separate pyrotechnics liability insurance policy with minimum limits of Five Million Dollars ($5,000,000.00) per occurrence and aggregate. The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers shall be named as additional insureds on any such policy on a primary and non-contributory basis.
(b) Automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than Five Million Dollars ($5,000,000.00) combined single limit for each accident. The automobile liability policy must include:
(i) Pollution Liability - Broadened Coverage for Covered Autos (CA 99 48) endorsement, or equivalent, providing coverage for cleanup costs, bodily injury, and property damage arising out of the actual, alleged, or threatened discharge of pollutants which are in, upon, owned, being transported by, loaded, or unloaded from a covered auto.
(ii) The MCS-90 Endorsement (Endorsement for Motor Carrier Policies of Insurance for Public Liability under Sections 29 and 30 of the Motor Carrier Act of 1980), ensuring compliance with federally mandated financial responsibility requirements, including environmental restitution coverage.
(c) Workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with a limit of no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. Contractor agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against the City, its officers, agents, employees, and volunteers for losses arising from work performed by Contractor for the City and to require each of its subcontractors, if any, to do likewise under their workers’ compensation insurance policies.

By execution of this Agreement, Contractor certifies as follows:

I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of .
5 Pyro Spectaculars, Inc.

Workers’ Compensation or to undertake self-insurance before commencing any of the work.

Contractor shall also comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect for the duration of this Agreement, complete Workers’ Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of this Agreement by the City. The City, its officers and employees shall not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this section.
(d) If required to meet the limits specified herein, umbrella or excess liability insurance with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
(i) A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
(ii) “Pay on behalf of” wording as opposed to “reimbursement”; (iii) Concurrency of effective dates with primary policies.

If Contractor obtains and maintains an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

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

4.2. Endorsements. The insurance policies are to contain, or be endorsed to contain, the following provisions:
(a) Additional Insureds: The City of West Covina and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insureds with respect to: liability arising out of activities performed by or on behalf of Contractor pursuant to its contract with the City; products and completed operations of Contractor; premises owned, occupied or used by Contractor; automobiles owned, leased, hired, or borrowed by Contractor. (b) Notice of Cancelation: Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City by Contractor.
(c) Primary Coverage: Contractor’s insurance coverage shall be primary .
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insurance as respects the City of West Covina, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of West Covina shall be excess and not contributing with the insurance provided by this policy.
(d) Waiver of Subrogation: Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.

Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
(e) Coverage Not Affected: Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of West Covina, its officers, officials, agents, employees, and volunteers. (f) Coverage Applies Separately: Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

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

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

4.5. Non-limiting. Nothing in this Section shall be construed as limiting in any way the indemnification provision contained in this Agreement.

5.0. GENERAL PROVISIONS

5.1. 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, and signed by the parties in interest at the time of such modification.

5.2. Representatives. The City Manager or his or her designee shall be the representative of City for purposes of this Agreement and may issue all consents, approvals, directives and agreements on behalf of the City, called for by this Agreement, except as otherwise expressly provided in this Agreement.

Contractor shall designate a representative for purposes of this Agreement who shall be authorized to issue all consents, approvals, directives and agreements on behalf of Contractor .
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called for by this Agreement, except as otherwise expressly provided in this Agreement.

5.3. Notices. Any notices, documents, correspondence or other communications concerning this Agreement or the work hereunder may be provided by personal delivery or by U.S. mail. If by U.S. mail, it shall be addressed as set forth below and placed in a sealed envelope, postage prepaid, and deposited in the United States Postal Service. Such communication shall be deemed served or delivered: a) at the time of delivery if such communication is sent by personal delivery; and b) 72 hours after deposit in the U.S. Mail as reflected by the official U.S. postmark if such communication is sent through regular United States mail.

IF TO CONTRACTOR: IF TO CITY:

Pyro Spectaculars, Inc.

P.O. Box 2329
Rialto, CA 92377
City of West Covina
1444 West Garvey Ave. South
West Covina, CA 91790
Tel: (909) 355-8120 Tel: (626) 939-8873
Attn: Aaron Beargeon Attn: Susie Perez

5.4. Attorneys’ Fees. If litigation is brought by any party in connection with this Agreement against another party, 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 rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof.

5.5. Governing Law. 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.

5.6. Assignment. Contractor shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of Contractor’s interest in this Agreement without City’s prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for termination of this Agreement.

Regardless of City’s consent, no subletting or assignment shall release Contractor of Contractor’s obligation to perform all other obligations to be performed by Contractor hereunder for the term of this Agreement.

5.7. Indemnification and Hold Harmless. Contractor agrees to defend, with reasonable counsel of City’s choosing, indemnify, hold free and harmless the City, its elected and appointed officials, officers, agents and employees, at Contractor’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against the City, its elected and appointed officials, officers, agents and employees arising from any act, error or omission of Contractor, its employees, agents and/or authorized subcontractors in the performance of this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by Contractor, its employees, agents and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of Contractor, its employees, agents and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected and appointed officials, officers, agents and employees based upon the work performed by Contractor, its employees, agents and/or authorized .
8 Pyro Spectaculars, Inc.
subcontractors under this Agreement, whether or not Contractor, its employees, agents and/or authorized subcontractors are specifically named or otherwise asserted to be liable.

Notwithstanding the foregoing, Contractor shall not be liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the negligence or willful misconduct of the City. This provision shall supersede and replace all other indemnity provisions contained either in the City’s specifications or Contractor’s Proposal, which shall be of no force and effect.

5.8. Limitation of Damages. Except in the case of bodily injury and property damage as provided in the insurance and indemnification provisions set forth herein, in the event City claims Contractor has breached this Agreement or was otherwise negligent in performing the Production, City shall not be entitled to claim or recover monetary damages from Contractor beyond the amount City has paid to Contractor under this Agreement, and shall not be entitled to claim or recover any consequential damages from Contractor including, without limitation, damages for loss of income, business or profits.

5.9. Independent Contractor. Contractor is and shall be acting at all times as an independent contractor and not as an employee of City. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent.

Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as set forth in this Agreement. Contractor shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of City. Contractor shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for Contractor and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder. Contractor shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor further agrees to indemnify and hold City harmless from any failure of Contractor to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.

5.10. PERS Eligibility Indemnification. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

5.11. Cooperation. In the event any claim or action is brought against City relating to .
9 Pyro Spectaculars, Inc.

Contractor’s performance or services rendered under this Agreement, Contractor shall render any reasonable assistance and cooperation which City might require.

5.12. Conflict of Interest. Contractor and its officers, employees, associates and subconsultants, if any, will comply with all conflict of interest statutes of the State of California applicable to Contractor’s services under this agreement, including, but not limited to, the Political Reform Act of 1974 (Government Code Section 81000, et seq.) and Government Code Sections 1090-1092. Contractor covenants that none of Contractor’s officers or principals have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of the services hereunder, including in any manner in violation of the Political Reform Act. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be used by Contractor as an officer, employee, agent, or subconsultant.

Contractor further covenants that Contractor has not contracted with nor is performing any services, directly or indirectly, with any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City and further covenants and agrees that Contractor and/or its subconsultants shall provide no service or enter into any agreement or agreements with a/any developer(s) and/or property owner(s) and/or firm(s) and/or partnership(s) owning property in the City prior to the completion of the work under this Agreement.

5.13. Prohibited Employment. Contractor will not employ any regular employee of City while this Agreement is in effect.

5.14. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.

5.15. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

5.16. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of City and Contractor 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.

5.17. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

5.18. 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.

5.19. Amendments. Only a writing executed by the parties hereto or their respective .
10 Pyro Spectaculars, Inc.
successors and assigns may amend this Agreement.

5.20. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. 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. 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.

5.21. 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.

5.22. 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.

5.23. 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.

5.24. Taxpayer Identification Number. Contractor shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W9, as issued by the Internal Revenue Service.

5.25. Price Firm Date. City acknowledges and agrees that the executed Agreement and the Initial Payment must be delivered to Contractor no later than June 12, 2025 (“Price Firm Date”). City acknowledges that failure to deliver the executed Agreement and Initial Payment to Contractor by the Price Firm Date may result in cancelation of the Production and termination of this Agreement, in Contractor’s discretion. If Contractor elects to cancel the Production and terminate this Agreement as permitted by this Section, Contractor shall provide notice of same to City within fifteen (15) days of receipt of the executed Agreement and Initial Payment. In such event, Contractor shall return the Initial Payment to City and City shall not owe Contractor any compensation pursuant to this Agreement.
[SIGNATURE PAGE FOLLOWS.]
.
11 Pyro Spectaculars, Inc.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective authorized officers, as of the date first above written.

CITY OF WEST COVINA,
A municipal corporation
__________________________________ Date: __________________________ Milan Mrakich
Acting City Manager

CONTRACTOR
__________________________________ Date: __________________________ Matt Gilfillan
Vice President
ATTEST:
__________________________________
Lisa Sherrick
Assistant City Clerk
APPROVED AS TO FORM:
__________________________________
Thomas P. Duarte
City Attorney
APPROVED AS TO INSURANCE:
__________________________________
Maria-Luisa Olea
Risk Management

EXHIBIT A

SCOPE OF WORK
A. The Production shall be substantially as outlined in Contractor’s Proposal set forth in Exhibit B.

B. The Production shall be conducted on the site identified in Attachment 1 and consisting of Wrigley Field, Angel Field, and Yankee Field at the West Covina Sportsplex, located at 2100 S. Azusa Ave., West Covina, CA (the “Site”), unless otherwise agreed to by City and Contractor. Contractor shall set up the Production in accordance with the layout set forth in Attachment 1, unless otherwise agreed by City and Contractor.

C. Contractor’s Duties.

1. Contractor shall provide all pyrotechnic equipment, trained pyrotechnicians, shipping, pyrotechnic products, application for specific pyrotechnic permits (the costs of which, including standby fees, will be paid by City) relating to the Production, insurance covering the Production and preproduction services.

2. Contractor shall provide preproduction services and costs for the production, including advance acquisition of materials and products; design; engineering, programming, handling, staging, storage, and maintenance of products, props, and systems; preparation of drawings, diagrams, listings schedules, inventory controls, choreography, and computer code; picking, packing, labeling, staging, and loading of equipment, materials, and systems; transportation, and logistics and crew scheduling and support; explosive storage magazines with legally mandated distances, surfaces, security, housekeeping, and access controls; and necessary and appropriate vehicles, including legally mandated insurance, including MCS90 explosives transportation coverage, parking, security and maintenance.

3. Contractor will apply for permits for the firing of pyrotechnics only from the West Covina Fire Department, FAA, and USCG, if required. Contractor shall comply with or exceed the applicable National Fire Protection Association (NFPA) 1123 standards in regard to the fireworks display area. The display will have a radius of at least 70 feet per inch of the largest diameter pyrotechnic from the firing site in all directions to any parking area, spectators, inhabited buildings, public roads, or active railroad.

4. Contractor shall provide the musical soundtrack for the Production supplied in a format agreed upon with the City.

5. Contractor shall be responsible for the removal of all equipment provided by Contractor and clean-up of any live pyrotechnic debris made necessary by Contractor.

D. City’s Duties.

1. City shall provide the Site, security for the Site, access to the Site, and any permission necessary to use the Site for the Production. All Site arrangements are subject to Contractor’s reasonable approval as to pyrotechnic safety, suitability, and security. All other conditions of the Site shall be the responsibility of the City, including, but not limited to, access, use, control, parking and general safety with respect to the public, City personnel and other contractors.

2. City shall provide adequate security personnel, barricades, and Police Department services as may be necessary to preclude individuals other than those authorized by Contractor from entering into an area to be designated by Contractor as the area for the set-up and discharge of the Production, including a fallout area satisfactory to Contractor where the pyrotechnics may safely rise and any debris may safely fall.

Contractor shall have no responsibility for monitoring or controlling City’s other contractors, providers or volunteers; the public; areas to which the public or contractors have access; or any other public of contractor facilities associated with the Production.

3. City shall provide all on-site labor costs, if any, not provided or performed by Contractor personnel including, but not limited to, all Site security, Police and Fire Department standby personnel, stagehands, electricians, audio and fire control monitors, carpenters, plumbers and clean-up crew, at City’s expense.

4. City shall coordinate any applicable non-pyrotechnic permitting with any local, state or federal government that may hold authority over the Production and shall make arrangements for Police Departments, Fire Departments, road closures, event/activity permits or land use permits or any permission or permit required by any local, regional, state or federal government as City deems appropriate or necessary for the Production.

5. City shall pay the costs of all permits required for the presentation of the Production and the event as a whole.

6. City shall provide a Safety Zone in accordance with applicable standards and all requirements of the authorities having jurisdiction throughout the entire time that the pyrotechnics are at the Site or the load site (if different) on the date of the Production and all set-up and load-out dates.

7. City shall provide a professional grade audio system including all necessary equipment, installation of such equipment and trained audio engineers for operation based on audio and communication requirements provided by Contractor.

8. City shall provide general services including, but not limited to, Site and audience security, fencing, adequate work light, dumpster accessibility, a secure office for Contractor’s personnel within the venue, secure parking for Contractor’s vehicles, access to washrooms, tents, equipment storage, hazmat storage, electrical power, fire suppression equipment, access to worksites, necessary credentialing, etc., as necessary for the event and the Production.

9. City shall be responsible for all clean-up not provided by Contractor, including any environmental clean-up.

E. Safety. Contractor and City shall each comply with applicable federal, state and local laws and regulations and employ safety programs and measures consistent with recognized applicable industry standards and practices. At all times before and during the Production, it shall be within Contractor’s discretion to determine whether or not the Production may be safely discharged or continued. It shall not constitute a breach of the Agreement by Contractor for fireworks to fail or malfunction, or for Contractor to determine that the Production cannot be discharged or continued as a result of any conditions or circumstances affecting safety beyond the reasonable control of Contractor. If Contractor makes such determination prior to or during the Production, City shall have the option to reschedule the Production in accordance with provisions set forth in the Schedule of Performance (Exhibit C).

ATTACHMENT 1

SITE LAYOUT

EXHIBIT B
CONTRACTOR’S PROPOSAL

July 4, 2025
2025 Pyrotechnic Fireworks Proposal
May 12, 2025

Suzy Perez
1444 W Garvey Ave., Room 317
West Covina, CA 91790
Subject: Proposal for your event on July 4, 2025, PROGRAM A – 18 min for $38,750.00

Pyrotechnics/Theatrical:

☐Close Proximity  Display Fireworks ☐Firecrackers
Special Effects: ☐Spark Machines ☐Flames ☐CO2 Cryo Jets ☐Confetti/Streamers ☐Lights ☐Foggers
Drones: ☐ Light Animations ☐ Accents
Dear Suzy Perez,
Pyro Spectaculars, Inc. is delighted to present our proposal for the full-service custom-designed PROGRAM A – 18 min for the production of your upcoming event. We are confident that our production capabilities and crew experience will result in the display of an unforgettable experience for your audience.

Enclosed you will find three important documents that outline our PROGRAM A – 18 min proposal in detail:

1. Product Synopsis - Proposal: Provides the specifications of the devices and products to be used in your event.

2. Production Agreement: Enclosed you will find a copy of the City of West Covina 2024 Service agreement for vendor services. Please prepare the same agreement with Matt Gilfillan, Vice President, as signatory. Please have the initial deposit payment due May 30, 2025.

3. Scope of Work: Outlines the responsibilities and services to be provided by both Pyro Spectaculars, Inc. and that will be necessary for the execution of the production of your event, along with insurance limits and requirements.

To secure your program, return the fully executed Production Agreement, and initial payment to our office by the PRICE FIRM date, May 30, 2025. Please note that program availability, pricing, and show date may be subject to change if these are not timely received.

If you have any questions, or wish to discuss your program in detail, please do not hesitate to contact either myself or your dedicated Customer Service Representative, Luis Ruiz, at (909) 355- 8120, extension 227.

Sincerely,
Pyro Spectaculars, Inc.

Aaron Beargeon
Aaron Beargeon, Show Producer
(LR)
Pyro Spectaculars, Inc.

P.O. Box 2329, Rialto, CA 92377 • Phone: (909) 355- 8120 • Fax: (909) 355-9813 www.pyrospec.com
Pyrotechnic Fireworks Proposal
City of West Covina
Similar Services Completed:
- City of West Covina 100th Birthday
2/16/23
Contact: Roxanne Lerma
- City of West Covina 4th of July
7/04/23
Contact: Roxanne Lerma
- City of West Covina 4th of July
7/04/24
Contact: Roxanne Lerma
References:
- City of Irwindale
Contact: Priscilla Zepeda
[email protected]
- City of Chino
Contact: Ted Bistarkey
[email protected]
- Rotary Club of Ventura
Contact: Ken Leandro
[email protected]

Attachment A – Statement of NonCollusion by Contractor Pyrotechnic Fireworks Proposal
City of West Covina
[Omitted from Agreement]
Attachment B – Subcontractor Campaign
Contribution Acknowledgement Form
Pyrotechnic Fireworks Proposal
City of West Covina
[Omitted from Agreement]
Attachment C – SAM.GOV Debarment
and Suspension Verification
Pyrotechnic Fireworks Proposal
City of West Covina
N/A
Attachment D – Fee Schedule
Pyrotechnic Fireworks Proposal
City of West Covina
PROGRAM A – 18 min – July 4, 2025
$38,750.00
-Initial Payment of $19,375.00
Due on May 30, 2025
-Final Payment of $19,375.00 plus any
permit fees
Due on July 7, 2025
Attachment E – Scope of Service
Pyrotechnic Fireworks Proposal
City of West Covina
PROGRAM A – 18 min – July 4, 2025
$38,750.00
Main Body - Aerial Shells
Description Quantity
 2.5" Sky Concert Selections 192
 3" Sky Concert Selections 250
 4" Sky Concert Selections 200
Total of Main Body - Aerial Shells 642
Grand Finale
Description Quantity
 2.5" Sky Concert Bombardment Shells 126
 3" Sky Concert Bombardment Shells 85
 4" Sky Concert Bombardment Shells 60
Total of Grand Finale 271
Grand Total 913
Product descriptions are for specification of product quality, classification, and value.

Final product selections will be based on availability, suitability, and overall artistic style.

EXHIBIT C

SCHEDULE OF PERFORMANCE
A. The Production shall take place on July 4, 2025, at approximately 9:00 PM.

B. City agrees to assume the risks of weather, strike, civil unrest, terrorism, military action, governmental action, and any other causes beyond the control of Contractor which may prevent the Production from being safely discharged on the scheduled date, which may cause cancelation of the event for which City has purchased the Production, or which may affect or damage such portion of the exhibits as may be placed and exposed a necessary time before the Production. If, for any such reason, Contractor is not reasonably able to safely discharge the Production on the scheduled date, or at the scheduled time, or should the event for which City has purchased the Production be canceled as a result of such causes, City may reschedule the Production and pay Contractor the sums set forth in subsection C herein.

C. If City elects to reschedule the Production, City shall pay Contractor (1) the balance of Contractor’s Fee, (2) all additional expenses made necessary by such rescheduling, and (3) a 15% service fee on such additional expenses. Said expenses will be invoiced separately and payment will be due in full within fourteen (14) days of receipt. City and Contractor will agree upon the rescheduled date taking into consideration availability of permits, materials, equipment, transportation and labor. The Production shall be rescheduled to a date not more than 90 days subsequent to the first date set for the Production. The Production shall not be rescheduled to a date, or for an event, that historically has involved a fireworks production. The Production shall not be rescheduled between June 15th and July 15th unless the original date was July 4th of that year, or between December 15th and January 15th unless the original date was December 31st of the earlier year unless Contractor agrees that such rescheduling will not adversely affect normal business operations during those periods.

AGENDA ITEM NO. 4

AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE: June 3, 2025
TO: Mayor and City Council
FROM: Milan Mrakich, Acting City Manager
SUBJECT: PROPOSED FISCAL YEAR 2025-26 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGET
RECOMMENDATION:

It is recommended that City Council:

1. Receive and file the Proposed Fiscal Year 2025-26 Operating and Capital Improvement Program Budget;

2.Schedule the budget for consideration at the June 17, 2025 City Council meeting.

BACKGROUND:

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

The Budget:

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

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

DISCUSSION:

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

The proposed Budget demonstrates a financial plan for the next 12 months. The City has experienced economic recovery from the global pandemic and had revenue reach and surpass pre-pandemic levels. However, this economic boom has leveled off and is reflected in revenue while expenditures have continued to increase. Thus, fiscal due diligence is necessary.

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

Citywide Summary
West Covina’s total projected operating and capital improvement expenditures for the upcoming fiscal year are over $156 million. Revenue for all fund types combined is over $144 million and includes property tax, sales tax, charges for services, licenses & permits, fines & forfeitures, and revenue from other agencies.

In addition, the Capital Improvement Plan budget, totaling over $10 million for the next fiscal year, is included in the number above and is primarily funded from Special Revenue Funds and grants obtained from various funding sources.

Property tax remains the City’s largest revenue source and is projected to be $42.6 million. Sales tax, the next largest revenue source, has increased in the past few years to $26.5 million. However, sales tax is expected to level off in the next fiscal year. City staff will continue to monitor sales tax quarterly and amend the budgeted numbers, as necessary. Overall, total revenues for the upcoming year are projected to increase by $8.8 million.

Total expenditures (excluding transfers) for all budgeted funds are estimated to be over $156 million, as shown in Table 1 below. Many funds make up the total budgeted amount, with the largest being the General Fund in the amount of $82.5 million, or 53% of the City’s budget.

Salary and benefits are 46% of the City’s total budget, which is up from last fiscal year due to the Unfunded Accrued Actuarial Liability (UAAL) pension payment due to the California Public Employees' Retirement System (CalPERS) in FY 2025-26. Additionally, it should be noted that salaries and benefits provided to the City’s employees continue to rise each year and must be monitored very closely as the City continues to identify alternatives for service delivery.

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

The City’s budget policy requires that the City’s General Fund maintain an undesignated, unappropriated reserve amount equal to at least 18% of budgeted expenditures or over $17.3 million. The fund balance for the fiscal year ending June 30, 2025, is projected to be over $20.7 million, which is approximately 22% of General Fund expenditures and transfers. Of this, over $3 million is assigned, which leaves approximately $17.7 million in unassigned fund balance.

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

General Fund Revenues
Total General Fund revenues are projected to be over $96 million, a 5.5% increase from the FY 2024-25 Adopted Budget. This is largely due to an increase in Sales Tax revenue of over $2.6 million, or 11.2%, over the original budget but only a 2.4% increase from the FY2024-25 end of year estimate. Property Tax is estimated to increase by

3.1% and other taxes are projected to decrease by 1.9%. Licenses and permits are projected to increase based on prior year actual trends.

General Fund Expenditures
General Fund expenditures for the fiscal year 2025-26 are projected to be over $82 million. This is an $6.3 million increase from the current fiscal year’s original budget.

Most General Fund expenditures go towards salaries, benefits and overtime (73%). This fiscal year, the City has executed memorandums of understandings with two out of its nine bargaining groups. There are seven bargaining groups with expired contracts and currently in negotiations. A conservative salary increase has been included in this proposed budget.

Overtime continues to be an increasing burden on the City. The FY 2025-26 Proposed Budget is based on prior years' actuals with an estimated increase in line with base salary increases. General Fund Overtime is proposed to be approximately $6.9 million not including Mutual Aid or FLSA overtime. Most of this overtime is from Police ($3.5M) and Fire ($3.4M).

Fiscal Challenges
While the City expects property tax and other taxes to increase, sales tax revenue has leveled off. This budget has been developed with this in mind. Sales tax, which is the General Fund’s second-largest revenue source, is forecasted to increase by 2.4% over the coming year (over the estimated actuals of the current year). This, in comparison to the rise in the Consumer Price Index (CPI), which increased by approximately 3% over the last year.

It is important to note that many existing agreements call for an annual increase per CPI. The UAAL payment and unfunded liabilities have also increased. Essentially, expenditures are increasing at a faster rate than revenues.

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

Four specific challenges affect the City’s annual budget:

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

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

2. Fiscal Prudence – Capital needs remain underfunded. Clearly, municipal facilities are not to standard.

Maintenance of buildings, streets, and parks has been deferred and, as a result, services have suffered.

Typically, assets run to failure, and operate until they break down. For example, Fire Station No. 1 has been determined uninhabitable, forcing the City to setup up temporary quarters. The City has received some one-time funding to address critical immediate needs. However, additional funding sources or alternative service delivery models need to be identified to address future issues.

3. Labor Negotiations – Seven of the nine labor agreements expired June 30, 2024. The City is currently underway with negotiations with the groups that have a pending agreement expiration. The outcome of these negotiations will have an immediate short-term impact and may have a long-term impact.

4. Long-Term Factors
The FY2025-2026 Proposed Budget is structurally balanced; however, expenditures are increasing at a faster pace than revenues. The City has attempted to attain fiscal sustainability into the future by finding economies and efficiencies in its operations. Like most California cities, West Covina has several unfunded liabilities.

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

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

The City’s Long-Range Financial Forecast was updated in May 2025 and projected a General Fund budget deficit for each year in the forecast. While the City’s outlook has improved, the forecast did not include any increase in salaries in FYE 2026-2030, since it is outside the contracted period. Negotiations of labor agreements are underway and could have a significant impact on the City in the long-term.

Additional Considerations:

However, this complex offers opportunities to be self-sustaining and increase the local sales tax base.

Health Department
One of the City’s long-term goals is to seek provisional approval from the California Department of Public Health (CDPH) for the creation of a fiscally sustainable municipal health department. This must be done with due regard to General Fund fiscal impacts. Once CDPH provides direction regarding the regulations and services the City may assume, the City will be able to submit an application. In the meantime, the City is currently working on preparing a Community Health Needs Assessment. Other than the CIP project which includes the professional services agreements for these planning activities, the FY 2025-26 budget does not include revenue and expenditures for the health department.

West Covina Chamber
The City established a Chamber as a pilot program at the end of Fiscal Year 2023-24. Staff will be evaluating how to best serve the business community with the programs and services being managed and administered. The FY 2025-26 budget does not include general fund expenditures for the ongoing execution of the chamber.

Five additional Code Enforcement Officers for street sweeping (funded from Measure M).

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

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

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

LEGAL REVIEW:

The City Attorney's Office has not reviewed this report.

Prepared by: Maria- Luisa Olea, Acting Finance Director & Human Resources/Risk Management Additional Approval: Roxanne E. Lerma, Assistant City Manager Fiscal Impact
FISCAL IMPACT:

Table 1. City-Wide Summary
FY 2022-23
Actual
FY 2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Estimate
FY 2025-26
Budget
Increase/
(Decrease)
Revenue
Property Tax 40,591,209 39,476,334 41,810,644 42,452,660 42,623,244 812,600 Sales Tax 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes 21,376,260 20,242,784 21,384,702 20,744,625 21,228,640 (156,062) Charges For Service 15,866,233 18,004,438 16,774,310 18,494,510 17,644,933 870,623 From Other Agencies 14,777,151 18,474,823 11,699,071 16,969,750 12,556,932 1,657,861 Interdept Charges 6,825,303 7,724,271 10,203,341 10,203,341 11,591,706 1,388,365 Use of Money & Property3,742,855 7,027,824 4,189,100 4,971,956 5,415,686 1,226,586 Licenses & Permits 5,514,873 2,822,757 3,874,200 3,565,190 4,101,000 226,800 Fines & Forfeitures 1,190,038 1,077,341 1,136,000 1,027,350 1,749,600 613,600 Sales 686,731 692,994 743,600 743,600 302,100 (441,500) Other Revenues 2,400,499 4,171,711 331,800 952,292 295,500 (36,300) Capital Assets 171,358 - 171,400 171,400 171,400 -
Fees 191,244 90,151 98,100 98,100 96,500 (1,600)
Revenue Total 136,665,008146,028,365136,253,268146,268,394144,277,2418,823,973 Expenditures
Salaries & Benefits 57,753,742 58,047,095 64,069,110 66,112,472 70,579,974 6,509,643 Materials & Services 43,137,521 43,872,139 45,780,258 48,521,779 45,493,594 (286,664) Debt Service 21,953,236 16,873,499 17,184,669 17,254,372 16,826,030 (358,639) Capital Assets 12,682,879 9,047,179 21,578,400 40,198,808 16,063,300 (5,515,100) Allocated Costs 4,582,528 5,564,845 7,079,031 7,082,173 6,912,209 (166,822) Expenditures Total 140,109,906133,404,756155,691,468179,169,605155,875,107182,418 Table 2. General Fund Summary
Table 2. General Fund Summary
FY2022-23
Actual
FY2023-24
Actual
Original
Budget
FY2024-25
Estimated
FY2024-25
Proposed
Budget
FY2025-26
Increase/
(Decrease)
Revenue
Property Tax 33,401,085 34,653,005 36,219,000 36,861,016 37,345,400 1,126,400 Sales Tax 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes 10,074,971 9,984,854 10,740,400 10,100,323 10,534,000 (206,400) Charges For Service 7,879,356 8,503,455 8,788,500 9,373,685 8,957,830 169,330 Licenses & Permits 5,514,665 2,822,757 3,874,200 3,565,190 4,101,000 226,800 From Other Agencies 2,895,485 3,405,209 3,443,795 3,767,525 3,847,000 403,205 Use of Money & Property 1,123,527 3,202,258 1,900,000 1,900,000 1,915,000 15,000 Fines & Forfeitures 1,190,038 1,077,341 1,136,000 1,027,350 1,749,600 613,600 Interdept Charges 1,188,500 1,196,210 1,196,200 1,196,200 1,196,210 10 Other Revenues 133,879 169,835 143,500 169,190 137,400 (6,100) Revenue Total 86,732,760 91,237,862 91,278,595 93,834,099 96,283,440 5,004,845 Expenditures
Salaries & Benefits 41,797,003 45,642,024 49,188,919 50,046,140 52,883,870 3,696,130 Materials & Services 11,597,175 11,909,154 11,091,280 11,089,209 11,556,530 465,250 Overtime 7,805,797 6,859,483 6,951,635 6,765,201 7,083,954 132,319 PERS UAL Payment 1,712,960 - 1,700,110 1,647,485 3,374,340 1,674,230 Other Costs 4,984,049 5,796,574 7,227,417 8,559,981 7,556,178 328,761 Expenditures Total 67,896,984 70,207,234 76,159,361 78,108,016 82,454,872 6,296,690 Revenues Less Expenditures18,835,776 21,030,628 15,119,234 15,726,082 13,828,568 Net Transfers (21,965,914)(20,200,545)(15,117,899)(16,876,302)(13,827,800) Net Change in Fund Balance (3,130,138) 830,083 1,335 (1,150,220) 768 Beginning Fund Balance 24,158,880 21,028,742 21,858,825 21,858,825 20,708,605 Ending Fund Balance 21,028,742 21,858,825 21,860,160 20,708,605 20,709,373 Reserve Requirement (18%) 15,669,435 16,273,400 16,429,907 17,097,177 17,330,881 Attachments
Attachment No. 1 - Budget-in-Brief
Attachment No. 2 - Budget Presentation
Attachment No. 3 - Proposed Budget FY2025-26
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Achieve Fiscal Sustainability and Financial Stability
Address Homeless Issues
A Creative and Active Community
A Well-Planned Community
Maintain Good Intergovernmental Relations
Expand Economic Development Opportunities
Enhance City Image and Effectiveness
An Accessible Community

Proposed
Budget
FY2025‐26
COUNCIL MEETING 6/3/2025
Attachment No. 2
Summary of Budget Process
2 Budget Survey
Dec–May
Long-Range Financial Forecast Filed
(Council Meeting)
20 May.

Proposed Budget Presentation
(Council Meeting)
3 June
Budget Adoption & Appropriations
Limit (Council Meeting)
17 June
New Fiscal Year Starts
1 July
Property Tax
32%
Sales Tax
20%
Other Taxes
16%
Charges For Service
13%
Revenue From Other Agencies
0%
Interdept Charges
9%
Licenses & Permits
3%
Other Revenues
6% Allocated Costs
Capital Assets 4%
10%
Materials & Services
29%
Salaries & Benefits
45%
Use of Money & Property
0%
Debt Service
11%
City‐Wide Summary
Revenue: Over $144.2 Million Expenditures: Over $156.1Million 3 General Fund Summary Net Change in Fund Balance is $768 4 FY2022‐23
Actual
FY2023‐24
Actual
Original Budget
FY2024‐25
Estimated
FY2024‐25
Proposed
Budget
FY2025‐26
Net Change in Fund Balance (3,130,138) 830,082 1,335 (1,150,220) 768 Ending Fund Balance 21,028,742 21,858,824 21,860,159 20,708,604 20,709,372 Reserve Requirement (18%) 15,669,435 16,273,400 16,429,907 17,097,177 17,330,881 FYE'20 Actual FYE'21 Actual FYE'22 Actual FYE'23 Actual FYE'24 Actual FYE'25 Est. FYE'26 Proposed 30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
$19,675,320
$25,488,080
$24,158,880
$21,028,740
$21,858,940
$20,708,600 $20,709,370
Nonspendable Restricted Assigned Unassigned Series 1
Changes in General Fund Fund Balance
5 $0
$10,000,000$20,000,000$30,000,000$40,000,000$50,000,000$60,000,000$70,000,000$80,000,000$90,000,000 $100,000,000
Proposed
Budget
FY2024-25
Estimated
FY2023-24
Original
Budget
FY2023-24
FY2022-23
Actual
Property Tax Sales Tax Other Taxes Charges For Service Licenses & Permits Fines & Forfeitures Interdept Charges Other Revenues Use of Money & Property Fro General Fund
Revenue
§ $96.3 Million
§ An Increase of $5.0
Million or 5.5% from
Original Budget FY2024-
25 § The largest increase is in
Sales Tax which has
increased by $2.7M or

2.4% over the current
year estimate.
6 Expenditures by Department
General Government
9% Code/Comm Dev.
5% Community Services
3%
Fire
31%
Police
45%
Public Works
6%
Expenditures By Department
Salaries & Benefits
67%
Overtime
10%
Materials & Services
15%
Allocated Costs
6%
Utilities, Fuel, M&R
3%
Expenditures By Category
General Fund Expenditures $82.4 Million Total
7 Community Services
Public Works
Administration
Public Safety
City Clerk
Finance
Fire
Human Resources
Community Development
Police
160
140
120
100
80 60
40 20-
7 9
5 6
2 14
76 4
5 144
Total
Full Time
Employees by
Department
within the
General Fund
8 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 $14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
$7,002,314.00
$5,361,750.00
$7,182,341.00
$8,296,789.00
$9,443,181.00
$10,565,530.00
$11,627,670.00
CalPERS UAL CalPERS Retirement - Safety Plan CalPERS Retirement - Miscellaneous Plan PARS Plans Series 1 Pension Costs
9 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 $8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
$5,332,000.00
$7,047,000.00
$6,712,000.00 $6,845,000.00 $6,983,000.00 $7,122,000.00 $7,264,000.00 General Liability Workers' Compensation Total
Liability & Workers' Comp. Projected Losses
10 Employment Termination8%
Falling Tree/Limb12%
False Arrest
3%
Forced Entry8%
Medical Treatment4%
Pothole Damage12%
Root Intrusion8%
Slip/Trip16%
Use Of Force4%
Vehicle Accident24% Open
Liability
Claims
6/30/2024
11 Efforts to Reduce Risk
12 LossCAP Program – Initial Risk Management Evaluation Identified 63 actions items
Reviewed monthly with excess carrier Risk Manager
Prior Year
Actuals
Current
Budget
Current Year Estimate Proposed
Budget
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
- $130,973.00
$4,182,789.00
$3.82
$151,000.00
$3,711,900.00
$3,363,500.00
$165,105.00
$2,878,400.00
$3,405,000.00
$170,050.00
$2,964,750.00
$3,507,150.00
$7.21 $7.06
$7.31 $7.13
Other Fire Police Grand Total
General Fund Overtime (in Millions)
13 Budget Survey
Survey Rankings:

January - May
28 responses:
86% Residents
32% Property Owners
21% Employed in West
Covina
Respondents were
asked their opinion on
10 different city
services.
14 1 Infrastructure
2 Police
3 Fire & EMS
1 Streets, Sidewalks and Traffic Signals
2 Economic Development
3 Affordable Housing
Importance and Funding
Needs Improvement
Service Levels
Maintained
No new positions added
Recreation and community service programs,
including Sportsplex operations.

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

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

Health Department
• Until direction is provided
from the California
Department of Public
Health (CDPH), the City is
in a holding pattern.
• The FY 2025-26 budget
does not include revenue
and expenditures for a
health department.

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

Funded CIP by Category Facilities7%
General17%
Parks6%
Streets39% Sewer14%
Traffic17%
Funded CIP by Category
Capital
Improvement
Program
$120 M Total Funded Projects
Over $28 M in Projects
Underway
$12 M Proposed in new projects
for FY2025-26
17 Budget in Brief
18 Budget in Brief
ATTACHMENT NO. 3

CITY OF WEST COVINA, CALIFORNIA
1444 W. Garvey Avenue South, West Covina CA 91790

PROPOSED BUDGET
Fiscal Year
July 1, 2025 - June 30, 2026

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

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

ACTING CITY MANAGER
Milan Mrakich

EXECUTIVE MANAGEMENT TEAM
Roxanne Lerma, Assistant City Manager
Thomas P. Duarte, City Attorney
Lisa Sherrick, Assistant City Clerk
Maria-Luisa Olea, Acting Finance Director
Michael Browne, Acting Fire Chief
Tony Cortina, Police Chief

PRESENTED TO
City of West Covina
California
For the Fiscal Year Beginning
June 01, 2024
Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
Budget Message …................................................................................... 7 Financial Information
Budget Guide ….................................................................................15 Financial Policies …............................................................................20 Financial Structure ….........................................................................22 Overview of City Funds .................................................................... 24 DepartmentͲFund Matrix ….............................................................. 34 City Profile
City Profile …..................................................................................... 35 City Organizational Chart ….............................................................. 38 City Council Goals ….......................................................................... 39 Budget Summaries
CityͲWide Summaries
CityͲWide Summary ….............................................................43 Summary of All Funds ….......................................................... 45 Fund Balance …....................................................................... 49 Changes in Fund Balance …..................................................... 50 Transfer Summary …............................................................... 53 General Fund
General Fund Summary …....................................................... 55 General Fund Revenue Summary …........................................ 57 General Fund Revenue …........................................................ 58 General Fund Expenditure Summary …...................................62 Administration Department ................................................... 64 City Clerk Department ............................................................ 72 Community Development …................................................... 76 Community Services Department .......................................... 87 Finance Department ...............................................................99 Fire Department ….................................................................. 106 Human Resources Department …........................................... 117 Police Department …...............................................................121 Public Safety Department …....................................................130 Public Works …........................................................................ 134 Capital Improvement Program …............................................................. 143 Other Funds
Debt Service ….................................................................................. 162 Summary of Other Funds ….............................................................. 168 Other Funds …......................................................................... 171 Appendix
Schedule of Positions ….................................................................... 243 Glossary of Terms ….......................................................................... 249 Acronyms ….......................................................................................252 LongͲRange Financial Forecast (to be added after approval)….........254 Gann Limit (to be added after adoption) …...................................... XXX Budget Resolution (to be added after adoption)…........................... XXX Table of Contents
Page intentionally left blank.

City of West Covina FY 2025-26 PROPOSED Budget

Page 6 ends

May 22, 2025
Honorable Mayor, Members of the City Council, and Citizens of West Covina:

I am pleased to present the Proposed Fiscal Year 2025-26 Budget for the City of West Covina and the Successor Agency to the Former Redevelopment Agency of the City of West Covina. The Budget provides the framework for providing services and programs to the community of West Covina. The services and programs included in the budget represent the delivery of core services and priorities. This document includes appropriations for the General Fund, Special Revenue Funds, Capital Projects Fund, and Enterprise Funds as well as both Operating and Capital Improvement Program (CIP) budgets.

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

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

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

Citywide Summary
West Covina’s total projected operating and capital improvement expenditures for the upcoming fiscal year are over $156 million. Revenue for all
fund types combined is over $144 million and
includes Property Tax, Sales Tax, Revenue from
Other Agencies, Charges for Services, Licenses &
Permits, Fines & Forfeitures, and Revenue from
Other Agencies.

In addition, the Capital Improvement Plan budget,
totaling over $12 million for the next fiscal year, is
included in the number above and is primarily
funded from Special Revenue Funds and grants
obtained from various funding sources.

Figure 1. City-Wide Revenue by Category
Property
Tax
34%
Sales
Tax
19%
Other
Taxes
17%
Charges
For
Service
14%
Revenue
From Other
Agencies…
Interdept
Charges
8%
Licenses
&
Permits
3%
Other
Revenues
5%
City of West Covina FY 2025-26 PROPOSED Budget

Page 7 ends

Property tax remains the City’s largest revenue source and is projected to be almost $43 million.

Sales Tax, the next largest revenue source, has increased in the past few years to over $26 million.

However, Sales Tax is expected to level off in the next fiscal year. City staff will continue to monitor sales tax quarterly and amend the budgeted numbers, as necessary. Overall, total revenues for the upcoming year are projected to increase by over $7.5 million.

Total expenditures (excluding transfers) for all budgeted funds are estimated to be over $156 million, as shown in Figure 2 and Figure 3 below. Many funds make up the total budgeted amount, with the largest being the General Fund in the amount of nearly $82 million, or 53% of the City’s budget.

Salary and benefits are 45% of the City’s total budget, as depicted in Figure 2 below, which is up from last fiscal year due to the Unfunded Accrued Actuarial Liability (UAAL) pension payment due to the CalPERS in FY 2024-25. Additionally, it should be noted that salaries and benefits provided to the City’s employees continue to rise each year and must be monitored very closely as the City continues to identify alternatives for service delivery.

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

The City’s budget policy requires that the City’s General Fund maintain an undesignated, unappropriated reserve amount equal to at least 18% of budgeted expenditures or over $17.3 million. The fund balance Allocated
Costs
5% Capital
Assets
10%
Materials
& Services
29% Salaries &
Benefits
45%
Use of
Money &
Property
0%
Debt
Service
11%
General
Fund
53% Total
Special
Revenue
28%
Total
Debt
Service…
Internal
Service
7%
Capital Projects
1%
Trust
Funds
1%
Enterprise Fund
0%
City of West Covina FY 2025-26 PROPOSED Budget

Page 8 ends

for the fiscal year ending June 30, 2025, is projected to be over $20 million, which is approximately 22% of General Fund expenditures and transfers. Of this, over $3 million is assigned, which leaves approximately $17 million in assigned fund balance.

Figure 4. General Fund, Fund Balance
General Fund Revenues
Total General Fund revenues are projected to be over $96 million, a 5.5 percent increase from the FY 2024-25 Adopted Budget.

This is largely due to an increase in Sales Tax revenue of over $2.6 million over the original budget but only a two percent increase from the FY2024-25 end of year estimate.

Property Tax is estimated to increase by 3.1% and other taxes project a slight decrease. Licenses and permits are projected to increase based on prior year actual trends. Fines and forfeitures are expected to increase by over 50%.

General Fund Expenditures
General Fund expenditures for the fiscal year 2025-26 are projected to be over $82 million. This is a $6.3 million increase from the current fiscal year’s original budget.

Most General Fund expenditures go towards salaries, benefits, UAAL payment, and overtime (76%). Over the past couple of years, the City has executed memorandums of understanding with its bargaining groups. These agreements included salary increases ranging from two to three percent per group and are offset by employee contributions to pensions ranging from one and half to six percent. Most of these contracts are expired in the Fiscal Year 2024-25 and are currently in negotiations.

Expenditures overall were analyzed and projected to reflect the actual expense incurred based on the current year’s estimate and prior years. The major expenditures impacting the General Fund over the next fiscal year are the UAAL payment, special events, and increases in workers’ compensation and general liability.
$19 $20
$25 $24
$21 $21 $21
-
5 10
15 20
25 30
FYE'19
Actual
FYE'20
Actual
FYE'21
Actual
FYE'22
Actual
FYE'23
Actual
FYE'24
Est.

FYE'25
Proposed
Millions
General Fund Fund Balance
Nonspendable Restricted Assigned Unassigned
City of West Covina FY 2025-26 PROPOSED Budget

Page 9 ends

Figure 5. General Fund Expenditures by Category
Overtime continues to be an increasing burden on the City. The FY 2025-26 Proposed Budget is based on prior years actuals with an estimated increase in line with base salary increases. General Fund Overtime is proposed to be approximately $6.7 million. Most of this overtime is from Police ($3.5M) and Fire ($3.0M).

Figure 6. General Fund Overtime
Fiscal Challenges
Short-Term Factors
While the City expects sales and property taxes to increase, other taxes revenue has leveled off. This budget has been developed with this in mind. Sales tax, which is the General Fund’s second-largest revenue source, is forecasted to only increase by 2.4% over the coming year. The UAAL payment and unfunded liabilities have also increased. Essentially, expenditures are increasing at a faster rate than revenues.

Salaries
38%
Benefits
26%
Materials & Services
14% Overtime
9%
Allocated Costs
6%
PERS UAL Payment
4%
Utilities
2%
Fuel
1%
Other
7%
$0.15 $0.17 $0.12 $0.15
$3.01 $2.96 $3.01 $3.06
$3.50 $3.51 $3.56 $3.54
$6.66 $6.64 $6.69 $6.76
$0
$1
$2
$3
$4
$5
$6
$7
$8
-
1 2
3 4
5 6
7 8
Prior Year
Actuals
Current
Budget
Current Year Estimate Proposed
Budget
MillionsMillions
ther Fire Police
City of West Covina FY 2025-26 PROPOSED Budget

Page 10 ends

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

Four specific challenges affect the City’s annual budget:

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

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

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

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

4. Labor Negotiations – All labor contracts expired June 30, 2024 and through June 30, 2025. The City is currently underway with negotiations with the groups that have a pending contract expiration.

The outcome of these negotiations will have an immediate short-term impact and may have a longterm impact. There are three labor groups with up-to-date MOUs.

City of West Covina FY 2025-26 PROPOSED Budget

Page 11 ends

Long-Term Factors
The FY2025-2026 Proposed Budget is structurally balanced; however, expenditures are increasing at a faster pace than revenues. The City has attempted to attain fiscal sustainability into the future by finding economies and efficiencies in its operations. Like most California cities, West Covina has several unfunded liabilities.

The biggest of these being the cost of employee pensions. Pension obligations and payments for the UAAL were expected to worsen each fiscal year. This fact prompted the City to issue Lease Revenue Bonds in July of 2020 to address the UAAL and attain more favorable interest rates to address the pension problem.

This eliminated the City’s UAAL in FY 2023-24; however, the UAAL started in FY 2024-25. There is a $1.9 million in Fiscal Year 2025-26.

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

The City’s Long-Range Financial Forecast was updated in May 2025 and projected a General Fund budget surplus for each year in the forecast. While the City’s outlook has improved, the forecast did not include any increase in salaries in FYE 2026-2030, since it is outside the contracted period. Negotiations for the next round of labor contracts our underway and could have a significant impact on the City in the longterm.

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

Health Department
One of the City’s long-term goals is to seek provisional approval from the California Department of Public Health (CDPH) for the creation of a fiscally sustainable municipal health department. This must be done with due regard to General Fund fiscal impacts. Once CDPH provides direction regarding the regulations and services the city may assume, a Community Health Needs Assessment, Community Health Improvement Plan and other studies as may be required by CDPH and the Public Health Accreditation Board. Until direction is provided by CDPH, the City is in a holding pattern. Therefore, other than the CIP project which includes the professional services agreements for these planning activities, the FY 2025-26 budget does not include revenue and expenditures for a health department.

City of West Covina FY 2025-26 PROPOSED Budget

Page 12 ends

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

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

Service Levels
The citizens of West Covina continue to expect a high level of service provided by the City. These services are paid for with local tax dollars and include police; recreation and community service programs for youth, adults, and seniors; park maintenance; street maintenance; transportation; engineering; building & safety; housing programs; planning & development; code enforcement; animal control; and environmental programs and services. Services levels are proposed to remain level across operations. No new positions are proposed to be added, however, the following positions and services were added in recent years and are proposed to be maintained:
Reclassification of an Economic Development Project Manager to a Coordinator. (City Manager’s Office)
Reclassification of a Senior Accountant to an Accounting Manager. (Finance Department) Reclassification of Management Analyst I to Deputy Fire Marshal. (Fire Department) Reclassification of Human Resources Technician to Human Resources Director. (Human Resources Department)
Reclassification of Code Enforcement Supervisor to Code Enforcement Manager. (Public Safety Department)
Addition of five Part-time Code Enforcement Officers (Public Safety Department) Reclassification of Deputy Public Works Director to Public Works Director (Public Works Department)
Recreation and community service programs, including Sportsplex operations. Special Events, such as Spring Festival, 4th of July, Egg Hunt, Summer Concerts, Christmas Parade, and Halloween.
Tree trimming and landscaping maintenance to prevent liability problems, reduce tree mortality, and improve urban forest health over the long-term.

Protect Public
Safety
Achieve Fiscal
Sustainability
& Financial
Stability
Address
Homeless
Issues
A Creative &
Active
Community
A Well-Planned
Community
Maintain Good
Intergovernme
ntal Relations
e goals may be foun
y
Expand
Economic
Development
Opportunities
Enhance City
Image &
Effectiveness
An Accessible
Community
City of West Covina FY 2025-26 PROPOSED Budget

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

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

Sincerely,
Milan M. Mrakich
Milan M. Mrakich
Acting City Manager
City of West Covina FY 2025-26 PROPOSED Budget

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

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

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

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

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

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

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

The revenue and expenditure growth assumptions have been updated based on historical trends, actuarial reports, and CPI trends. The base year for this forecast is FYE 2025.

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

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

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

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

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

Departments have approximately
three weeks to prepare their lineitem budgets.

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

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

Once the City Manager and department reviews have taken, the Finance staff prepares the preliminary budget. The Finance Director presents the Proposed Operating and Capital Improvement Program (CIP) Budget to the City Council and the Community at a City Council meeting in May or early June. Specific policy issues, funding shortfalls, and major challenges are discussed, and recommended changes are then Council Goals
Established
Long Range
Financial Plan
Community
Survey
Development
Proposed
Budget
Community
Workshops
Final Review
Budget
Adoption
City of West Covina FY 2025-26 PROPOSED Budget

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incorporated into the budget. Meetings are held, as needed, to ensure that the budget accurately reflects the City Council’s objectives for the coming year until the final budget is adopted by the City Council.

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

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

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

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

December-March • Budget Survey
May 20th • Long-Range Financial Forecast Filed (Council Meeting) June 3rd • Proposed Budget Presentation (Council Meeting) June 17th • Budget Adoption & Appropriations Limit* (Council Meeting) July 1st • New Fiscal Year Starts
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Organization of the Budget Document
The Budget document is comprised of the following sections:

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

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

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

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

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

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

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

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

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

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

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

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

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

Expenditure Summary by Division – These tables provide budgeted expenditures by division.

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

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

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

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

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

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

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

Budget Resolution (Inserted Following Budget Adoption)
This section includes a copy of the approved budget resolution.

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

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

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

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

The Finance Director determines the merit of any requests and ensures that adequate funding is available.

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

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

CIP Carryovers
Every year, staff reviews each capital project and carries forward prior year appropriations for projects that have not been completed or for which long-term funding is being accumulated. The carryovers are City of West Covina FY 2025-26 PROPOSED Budget

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

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

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

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

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

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

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

City of West Covina FY 2025-26 PROPOSED Budget

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

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

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

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

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

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

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

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

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

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City funds are classified into three broad categories:

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

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

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

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

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

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

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

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

Fiduciary Funds
• Utilized in situations where
the government is acting in
a fiduciary capacity as a
trustee or agent.

City of West Covina FY 2025-26 PROPOSED Budget

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

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

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

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

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

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

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

Information Technology (Fund 162)
The funds paid into this fund are to be used for information technology capital outlay projects.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hazard Mitigation Grant Program (HMGP) (Fund 139)
This fund accounts for grant revenue provided by Cal OES, which administers various Federal Emergency Management Agency (FEMA) programs aimed at disaster risk reduction.

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

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

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

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

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

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

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

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Public Safety Augmentation (Fund 153)
This fund accounts for the permanent extension of the sales tax by ½ cent guaranteed under Proposition 172. These revenues are restricted to the enhancement of public safety services. Revenue is allocated based on each qualified county’s proportionate share of statewide taxable sales.

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

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

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

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

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

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

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

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

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

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

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

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

West Covina Chamber (222)
The West Covina Chamber of Commerce fosters economic growth, supports local businesses, and enhances community prosperity through advocacy, collaboration, and resources. The chambers funds come from business memberships based on tiers.

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

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

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

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

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

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

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

Measure R (Fund 224)
Under Measure R, the City receives a portion of a ½ cent sales tax levied in Los Angeles County to provide transportation related projects and programs. The City uses Measure R Funds to provide a variety of transportation services including Dial-A-Ride and the West Covina Shuttle (a fixed route system).

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

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

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

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

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

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

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

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

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

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

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

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

Sportsplex (Fund 242)
This fund accounts for activity at the West Covina Sportsplex, a recreation facility which amenities include softball fields, a pavilion, playgrounds, and restaurants.

City of West Covina FY 2025-26 PROPOSED Budget

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

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

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

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

Insurance - Workers’ Compensation (Fund 363)
Funding for workers’ compensation is derived from a percentage of all salaries with different rates levied by the various employee categories.

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

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

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

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

City of West Covina FY 2025-26 PROPOSED Budget

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Enterprise Funds
Police Computer Service Group (Fund 375)
This fund accounts for the computer services provided by the Police Department to other public safety agencies for a fee. The programs are marketed to both public and private agencies. The program also provides these products and services to the West Covina Police Department.

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

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

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

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

City of West Covina FY 2025-26 PROPOSED Budget

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Fund Matrix by Department
Department / Fund Matrix Admin
City
Clerk Finance
HR &
Risk
Comm.

Dev. Police Fire
Public
Works
Comm.

Srvcs.

General Fund 3 3 3 3 3 3 3 3 3
State & Federal Asset Forfeitures 3
Air Quality Improvement Trust 3
Proposition "A" 3 3
Prop. "A" Discretionary/Prop. "C" 3 3
State Gas Tax 3 3
Police Donations 3
Transportation Development Act 3
AB 939 3
Community Development Block Grant 3 3 3 3
Surface Transportation Program Local 3
LA County Park Bond 3 3
Waste Mgt Enforcement - Grant 3
Senior Meals Program 3
Used Oil Block Grant 3
Inmate Welfare 3
Public Safety Augmentation 3
Comm. Oriented Policing Services 3
Summer Meals Program 3
Maintenance Districts: #1, #2, #4, #6, #7 3
Coastal Sage And Scrub CFD 3
Citywide Maintenance District 3
Sewer Maintenance 3
Auto Plaza Improvement District 3
Charter PEG 3
Art In Public Places 3
WC Community Services Foundation 3 3
Senate Bill 1 - Road Maint. Rehab 3
Measure M/R 3
West Covina Housing Authority 3
Capital Projects 3 3 3 3 3
Construction Tax 3
Information Technology 3
Park Acquisition 3
Impact Fees (DIF) 3 3 3 3 3 3 3 3
Park Dedication Fees: "A" - "H" 3
Debt Service - City 3
Workers' Comp. & General Liability 3
Fleet Mgmt. & Vehicle Replacement 3
Police Computer Service Group 3
Redevelopment Obligation Retirement 3 3
Successor Agency Administration 3 3
Community Facilities District Debt Srvc. 3 3
City of West Covina FY 2025 26 PROPOSED Budget
History Of West Covina
The City of West Covina was incorporated in 1923 to prevent the City of Covina from establishing a sewage farm within the current city boundaries. The 507 residents of the area were mostly citizens who banded together to maintain local control of their land and were more interested in preventing the establishment of a sewage facility than in creating a city.

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

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

The Redevelopment Agency's efforts have also resulted in several major office buildings in the City, such as "The Lakes," in addition to two new community shopping centers, freestanding retail developments, restaurants, residential projects, and the Auto Plaza. West Covina looks forward to additional residential and commercial development during the coming decade as it continues to serve as one of the most progressive cities in the San Gabriel Valley.
1993
Plaza West Covina
Opened
1991
Mall Renovated
1969
City Hall & Police
Facility Built
1950-1960
America's Fastest
Growing City
1923
Incorporation
Looking east on
I-10/Hwy 99 in West
Covina
City of West Covina FY 2025-26 PROPOSED Budget

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Demographics
Calendar Personal Capita Annual
Year Income Personal Unemployment
(in
1,000s) Income Rate
2018 2,916,516 26,975 4.60%
2019 3,053,619 28,807 4.40%
2020 3,173,022 30,050 13.10%
2021 3,324,204 30,710 9.20%
2022 3,706,972 34,357 4.80%
2023 3,970,712 36,393 4.70%
White alone
22%
Black or African
American
4%
Asian alone
26%
Native Hawaiian or
Other Pacific Islander
0%
Hispanic or
Latino
47%
American Indian
1%
Race
108 108 108 108 108 108 106 110 108 108 109
0 20
40 60
80 100
120
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Population
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Top 25 Sales Tax Producers
Principal Property Taxpayers
Taxpayer Taxable Assessed
Value Rank
Percent of Total
City Taxable
Assessed Value
Plaza West Covina LLC 289,381,080 1 1.96%
GREF Eastland Center LP 198,061,954 2 1.34%
Colony at the Lakes 185,495,060 3 1.26%
Walnut Ridge Apartments LP 104,239,682 4 0.71%
624 South Glendora Ave LP 99,670,269 5 0.68%
CLPF Verdanas LP 93,927,698 6 0.64%
Envision WC MB RE LLC 84,900,696 7 0.58%
Twelve31 Partners LP 81,957,000 8 0.56%
TPA Nasch LLC 62,204,549 9 0.42%
Go West Covina Owners LLC 59,619,000 10 0.40%

76 Ashley
Furniture
Homestore
Audi West
Covina Azusa Arco Best Buy
Chick Fil A Crestview
Cadillac
Envision
Chrysler Dodge
Jeep Ram of
West Covina
Envision
Toyota Of
West Covina
Floor & Decor
Home Depot Macys
Mercedes
Benz Of West
Covina
Mercedes
Benz Vehicle
Trust
Norm Reeves
Honda
Performance
Ford Plug In Auto Portos Bakery Reynolds Buick Ross
Target Tesla Tow Industries Triples
Chevron
Walmart
Supercenter
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Residents of
West Covina
City Clerk
(Elected)
City Council
(Elected)
City Manager
Administration
Comm. & Econ.

Development
City Clerk's
Office
Public Safety Comm. Services
Comm.

Dev.

Planning
Building
Engineering
Finance
Information
Technology
HR/Risk Mgmt.

Fire
Police Public Works
Assistant City
Manager
Assistant City
Manager/PIO
City Attorney
City Treasurer
(Elected)
City of West Covina FY 2025-26 PROPOSED Budget

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

Each year, staff reviews and updates the goals that have been completed and makes recommendations to the Council for future goals. The Council then considers staff recommendations during a City Council meeting. The following goals were approved by the Council in June 2024.

I. Protect Public Safety
Continue to respond to the global COVID-19 pandemic.
Manage and prepare for future pandemics by replacing and upgrading the heating, ventilation and air condition (HVAC) system and the existing roof for the Cortez Community & Senior Center with a filtration system that incorporates ultraviolet light that will reduce the risk of virus transmissions in enclosed spaces.
Negotiate and execute regional automatic aid agreement with City of La Verne for fire emergency services.
Negotiate and execute automatic aid agreement with Los Angeles County Fire Department. With due regard to General Fund fiscal impacts, respond to California Department of Public Health (CDPH) proposed regulations. Seek provisional approval from CDPH for creation of a fiscally sustainable municipal health department. Prepare a Community Health Needs Assessment, Community Health Improvement Plan and other studies as may be required by CDPH and the Public Health Accreditation Board. Negotiate and execute agreement(s) for Health Department laboratory services. Update the City's Emergency Management Program, including Community Emergency Response Team, Emergency Operations Center Training, Citywide CERT Training including “train the trainer” and Disaster Preparedness and Hazard Mitigation plans. Monitor, manage, and as appropriate reduce Fire Department overtime expenditures. Annual Police Department review intended to increase accountability and transparency. Take delivery and place in service two (2) new fire pumper engines. Develop specifications for and put out to bid for delivery of a new fire pumper engine (2026). Work with Animal Care & Control to conduct the bi-annual canvass for pet licenses. Continue to expand Police Officer visibility in the community by promoting neighborhood events like Coffee with a Cop.

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

III. Address Homeless Issues
Secure external funding, including San Gabriel Valley Housing Trust and County homeless funds. Partner with area cities on a regional response to inadequacies of existing Measure H program. Expand Mental Health Services for unhoused.
Increase contact between Department of Mental Health and the unhoused population in West Covina.
Work with other agencies/non-profit organizations to reduce the homeless count for West Covina.
Work/Collaborate with other agencies/nonprofits to provide resources to the unhoused and reduce West Covina's homeless count.

IV. A Creative & Active Community
Partner with community partners to co-host events with community partners. Re-evaluate opportunities to weave the arts and local heritage into everyday life. Develop a master calendar of community and City-sponsored events. Review recreational opportunities at the equestrian center.

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V. A Well-Planned Community
Update permit software.
Implement a Rental Inspection Program.
Obtain State Certification of the Housing Element Update. Develop a Park Master Plan (long range planning tool). Establish lights on Glendora Ave and Clean-up.
Update and audit Landscape Maintenance Districts.
Work towards implementing an Active Transportation Plan.

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

VII. Expand Economic Development Opportunities
Continue marketing efforts to expand and retain the business base. Work with property owners to promote development in the community. Focus efforts of the City’s Community & Economic Development Division on economic recovery and tourism through continued relationship building, research, and advocacy of development. Reinforce West Covina’s brand as a great place to live, work and play in the San Gabriel Valley. Establish a Business Improvement Association on Glendora Avenue. Collaborate with Plaza West Covina mall ownership to develop a master plan for Plaza West Covina.
Establish a West Covina Chamber of Commerce.
Consider all options for the development of City owned parcels at the former BKK site. Update the City's website.

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VIII. Enhance City Image & Effectiveness
Bring all City facilities to standard.
- Identify potential projects for inclusion in the Capital Improvement Plan. Enhance recreational and park opportunities in the community. - Enhance communication to residents through published newsletters, the website, and social media.
- Prepare the annual "State of the City" report.
Implement the City's Active Transportation Plan.
Make the community more verdant.
Implement the master plan of street trees.
Assess and as necessary upgrade the City's sewer collection system. - Implement the annual street paving program.
- Remove trash bins from parks.
- Replace bus shelters.
- Install a reader board for Sportsplex on Azusa.
- Work with Caltrans to clean up freeway on/off ramps.
Complete a precise plan for the new Fire Station #1.
Establish a weekly street sweeping schedule.
Prepare and approve a Traffic Signal Maintenance Agreement.

IX. An Accessible Community
Establish a Disability Advisory Commission.
Consider implementation of best practices as recommended by the U.S. Conference of Mayors Disability Employment Working Group: Disability Employment Working Group. Review Best Practices in Disability Employment.
Review City Development Codes and Current Practices on Accessible Urban Development: Good Practices of Accessible Urban Development.
Establish and implement an ADA Transition Plan.

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FY 2022Ͳ23
Actual
FY 2023Ͳ24
Actual
FY 2024Ͳ25
Original
Budget
FY 2024Ͳ25
Estimate
FY 2025Ͳ26
Budget
Increase/
(Decrease)
Revenue
Property Tax 40,591,209 39,476,334 41,810,644 42,452,660 42,623,244 812,600 Sales Tax 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes 21,376,260 20,242,784 21,384,702 20,744,625 21,228,640 (156,062) Charges For Service 15,866,233 18,004,438 16,774,310 18,494,510 17,644,933 870,623 From Other Agencies 14,777,151 18,474,823 11,699,071 16,969,750 12,556,932 1,657,861 Interdept Charges 6,825,303 7,724,271 10,203,341 10,203,341 11,591,706 1,388,365 Use of Money & Property 3,742,855 7,027,949 4,189,100 4,971,956 5,415,686 1,226,586 Licenses & Permits 5,514,873 2,822,757 3,874,200 3,565,190 4,101,000 226,800 Fines & Forfeitures 1,190,038 1,077,341 1,136,000 1,027,350 1,749,600 613,600 Sales 686,731 692,994 743,600 743,600 302,100 (441,500) Other Revenues 2,400,499 4,171,586 331,800 952,292 295,500 (36,300) Capital Assets 171,358 Ͳ 171,400 171,400 Ͳ 171,400 Fees 191,244 90,151 98,100 98,100 96,500 (1,600) Revenue Total 136,665,008 146,028,365 136,253,268 146,268,394 144,277,241 8,823,973 Expenditures
Salaries & Benefits 57,753,742 58,047,095 64,069,110 66,112,472 70,580,038 6,509,707 Materials & Services 43,137,521 43,722,795 45,780,258 48,521,779 45,493,594 (286,664) Debt Service 21,953,236 16,873,499 17,184,669 17,254,372 17,133,711 (50,958) Capital Assets 12,682,879 9,038,200 21,578,400 40,198,808 16,063,300 (5,515,100) Allocated Costs 4,582,528 5,564,845 7,079,031 7,082,173 6,912,209 (166,822) Use of Money & Property 158,323 Ͳ Ͳ Ͳ Expenditures Total 140,109,906 133,404,756 155,691,468 179,169,605 156,182,852 490,163 Transfers
Transfer Out 24,051,019 22,161,113 17,088,568 18,850,959 15,821,397 (1,267,171) Transfer In 24,051,019 22,161,112 17,088,568 18,850,959 15,821,397 (1,267,171) Transfers Total 48,102,038 44,322,225 34,177,136 37,701,918 31,642,795 (2,534,341) The CityͲWide budget is structurally balanced, as recurring revenues equal or exceed recurring expenditures:

Recurring Revenue 136,493,650 146,028,365 136,081,868 146,096,994 144,105,841 Recurring Expenses 127,427,027 124,366,556 134,113,068 138,970,797 140,119,552 Revenue Less Exp. 9,066,623 21,661,809 1,968,800 7,126,197 3,986,289 CityǦWide Summary
Property
Tax
33%
Sales Tax
20%
Other
Taxes
16%
Charges
For
Service
13%
Revenue From
Other Agencies
0%
Interdept
Charges…
Licenses
& Permits
3%
Other
Revenues
6%
CityͲWide Revenue by Category
Allocated
Costs
5% Capital
Assets
10%
Materials
& Services
29% Salaries &
Benefits
45%
Use of
Money &
Property
0%
Debt
Service
11%
CityͲWide Expenditures by Category
City of West Covina FY 2025-26 PROPOSED Budget

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FY 2022-23
Actual
FY2023-24
Actual
FY 2024-25
Original
Budget
FY 2024-25
Estimate
FY 2025-26
Budget
Increase/
(Decrease)
Revenue
General Fund 86,732,760 91,237,862 91,278,595 93,834,099 96,283,440 5,004,845 Special Revenue 35,286,999 36,549,664 31,299,888 34,941,818 32,821,975 2,322,087 Internal Service 8,300,835 5,749,604 9,059,141 9,370,577 10,469,796 1,410,655 Trust Funds 2,412,488 4,811,817 2,616,944 2,641,944 2,665,344 48,400 Debt Service 895,648 1,049,592 500,000 989,786 1,005,186 505,186 Capital Projects 2,501,419 5,784,931 755,100 3,746,570 729,400 (25,700) Enterprise Fund 686,761 692,994 743,600 743,600 302,100 (441,500) Revenue Total 136,665,008 146,028,365 136,253,268 146,268,394 144,277,241 8,823,973 Expenditures
General Fund 67,896,984 70,207,234 76,159,361 78,108,016 82,452,853 6,294,671 Special Revenue 29,077,833 24,041,036 44,448,639 56,031,109 43,672,545 (777,294) Debt Service 15,369,469 15,458,709 15,872,613 15,872,613 15,824,955 (47,658) Internal Service 16,876,848 17,253,826 9,211,241 10,014,230 10,599,596 1,387,155 Capital Projects 4,039,165 1,304,000 5,631,529 10,379,347 1,693,400 389,400 Trust Funds 506,665 5,792,395 8,006,810 8,074,519 1,522,868 (6,483,942) Enterprise Fund 680,234 682,734 688,804 689,771 416,635 (272,169) Expenditures Total 140,109,906 133,404,756 155,691,468 179,169,605 156,182,852 490,163 The City-Wide budget is structurally balanced, as recurring revenues equal or exceed recurring expenditures:

Recurring Revenue 136,493,650 146,028,365 136,081,868 146,096,994 144,105,841 Recurring Expenses 127,427,027 124,366,556 134,113,068 138,970,797 140,119,552 Revenue Less Exp. 9,066,623 21,661,809 1,968,800 7,126,197 3,986,289 CityǦWide Summary by Fund Type
General
Fund
67%
Special
Revenue
23%
Internal
Service
7%
Trust
Funds
2%
Debt Service
1%
Capital
Projects
0%
Enterprise Fund
0%
City-Wide Revenue by Fund
General
Fund
Total 53%
Special
Revenue
28%
Total
Debt
Service
10%
Internal
Service
7%
Capital Projects
1%
Trust
Funds
1%
Enterprise Fund
0%
City-Wide Expenditures by Fund
City of West Covina FY 2025-26 PROPOSED Budget

Page 44 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2025
Estimated
2025Ͳ2026
Revenue
Projected
2025Ͳ2026
Expenditures
Tranfers In
(Out)
Projected
2025Ͳ2026
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2026
General Fund
110 General Fund 20,708,604 96,283,440 82,452,853 (13,522,138) 308,449 21,017,053 TOTAL GENERAL FUND 20,708,604 96,283,440 82,452,853 (13,522,138) 308,449 21,017,053 Special Revenue Funds
116 State Asset Forfeiture 199,186 Ͳ 10,300 Ͳ 10,300 209,486 117 Equitable SharingͲUSDOJ 1,924,279 111,000 Ͳ 1,789,707 (1,678,707) 245,572 118 Equitable SharingͲTreasury 2,982,521 33,600 Ͳ 975,000 (941,400) 2,041,121 119 Air Quality Improvement Trust 250,763 152,300 Ͳ 191,400 (39,100) 211,663 120 Prop A Discretionary 693,409 121,900 Ͳ 100,000 21,900 715,309 121 Prop A 1,319,171 3,040,520 Ͳ 3,549,940 (509,420) 809,751 122 Prop C 2,564,175 2,598,270 Ͳ 2,658,824 (60,554) 2,503,621 124 Gasoline Tax ( 141,413) 3,073,448 Ͳ 2,916,820 156,628 15,215 127 Police Donations 25,149 2,200 Ͳ 5,859 (3,659) 21,490 128 Transportation Development Act 42,298 471,400 Ͳ 470,000 1,400 43,698 129 AB 939 1,719,966 332,100 Ͳ 59,839 272,261 1,992,227 131 Community Dev. Block Grant 3,015,271 800,000 Ͳ 357,214 442,786 3,458,057 138 ABC Grant 373 Ͳ Ͳ Ͳ Ͳ 373 143 LA County Park Bond 0 23,000 Ͳ 23,000 Ͳ 0 145 Waste Mgt Enforcement Grant 852,744 57,119 Ͳ 163,196 (106,077) 746,668 146 Senior Meals Program 3,286 325,100 Ͳ 328,381 (3,281) 5 149 Used Oil Block Grant 4,991 16,000 Ͳ 16,000 Ͳ 4,991 150 Inmate Welfare 3,442 100 Ͳ 1,000 (900) 2,542 153 Public Safety Augmentation 4,147 882,800 Ͳ 874,193 8,607 12,754 155 COPS/SLESF 21,095 330,800 Ͳ 337,689 (6,889) 14,206 158 CRV Recycling Grant 90,024 Ͳ Ͳ Ͳ Ͳ 90,024 181 Maintenance District #1 4,301,119 818,500 Ͳ 812,018 6,482 4,307,601 182 Maintenance District #2 912,185 289,800 Ͳ 487,480 (197,680) 714,505 183 WC CSS CFD 496,785 116,300 Ͳ 150,980 (34,680) 462,105 184 Maintenance District #4 1,722,907 1,088,350 Ͳ 1,902,123 (813,773) 909,134 186 Maintenance District #6 188,341 169,700 Ͳ 336,261 (166,561) 21,780 187 Maintenance District #7 298,696 191,450 Ͳ 377,781 (186,331) 112,365 188 Citywide Maintenance District 401,115 1,976,303 Ͳ 2,376,615 (400,312) 803 189 Sewer Maintenance 13,673,522 4,689,600 Ͳ 2,626,531 2,063,069 15,736,591 190 Auto Plaza Improvement District 61,309 121,168 Ͳ 55,650 65,518 126,827 191 General Plan Update 1,107,573 302,500 Ͳ 1,200,000 (897,500) 210,073 City of West Covina FY 2025-26 PROPOSED Budget

Page 45 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2025
Estimated
2025Ͳ2026
Revenue
Projected
2025Ͳ2026
Expenditures
Tranfers In
(Out)
Projected
2025Ͳ2026
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2026
197 Measure W Stormwater 2,611,638 1,525,500 Ͳ 2,100,000 (574,500) 2,037,138 205 PEG Fund 13,869 400 Ͳ 14,000 (13,600) 269 207 OTS Grants (0) 12,360 Ͳ 12,360 Ͳ (0) 212 Art In Public Places 742,780 19,400 Ͳ 200,000 (180,600) 562,180 218 Homeland Security Grant (0) ͲͲͲͲ (0)
220 WC Community Svcs Foundation 274,832 110,000 Ͳ 323,300 (213,300) 61,532 221 Police Private Grants 1,000 ͲͲͲͲ 1,000
222 WC Chamber of Commerce (125) ͲͲͲͲ (125)
224 Measure R 4,921,130 2,042,282 Ͳ 3,458,893 (1,416,611) 3,504,519 232 NonͲFederal Grants 4,281 ͲͲͲͲ 4,281
233 Taskforce Reg. Autotheft Prev. 3,921 237,909 Ͳ 237,909 Ͳ 3,921 234 Officer Wellness & Mental Health 2,917 1,700 Ͳ 4,617 Ͳ (2,917) 235 Measure M 2,058,061 2,845,200 Ͳ 4,902,314 (2,057,114) 947 237 SB1ͲRoad Maintenance Rehab 1,371,495 3,070,496 4,875,000 567,200 (1,237,304) 134,191 240 Measure H 259,439 Ͳ 2,200 Ͳ 2,200 261,639 241 CASP Certification & Training 139,013 Ͳ 4,900 Ͳ 4,900 143,913 242 Sportsplex Ͳ 415,400 1,333,726 Ͳ 918,326 Ͳ 820 Successor Housing Agency 19,225,939 217,200 Ͳ 895,525 (678,325) 18,547,613 TOTAL SPECIAL REVENUE FUNDS 70,368,617 32,650,575 43,501,145 1,485,526 (9,365,044) 61,003,573 City of West Covina FY 2025-26 PROPOSED Budget

Page 46 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2025
Estimated
2025Ͳ2026
Revenue
Projected
2025Ͳ2026
Expenditures
Tranfers In
(Out)
Projected
2025Ͳ2026
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2026
Capital Project Funds
160 Capital Projects 1,876,243 Ͳ Ͳ 1,086,000 (1,086,000) 790,243 161 Construction Tax 231,425 9,700 Ͳ 20,000 (10,300) 221,125 162 Information Technology 691,296 406,500 Ͳ 261,400 145,100 836,396 164 Police Facilities Dev. Impact Fees 191,142 35,700 Ͳ 226,000 (190,300) 842 165 Fire Facilities Dev. Impact Fees 206,872 Ͳ 43,300 Ͳ 43,300 250,172 166 Park Facilities Dev. Impact Fees 390,130 49,000 Ͳ 100,000 (51,000) 339,130 167 Admin. Facilities Dev. Impact Fees 55,951 Ͳ 6,300 Ͳ 6,300 62,251 168 PW Facilities Dev. Impact Fees 26,139 Ͳ 3,000 Ͳ 3,000 29,139 169 Park Acquisition Fund 2,308,779 Ͳ 80,100 Ͳ 80,100 2,388,879 170 PDF AͲDel Norte 1,412,010 Ͳ 17,300 Ͳ 17,300 1,429,310 171 PDF B Palm View 1,688,396 Ͳ 20,700 Ͳ 20,700 1,709,096 172 PDF C OrangewoodͲCa 1,785,279 Ͳ 46,500 Ͳ 46,500 1,831,779 174 PDF EͲCortez 61,739 Ͳ 1,600 Ͳ 1,600 63,339 175 PDF FͲGalͲWogrovͲCam 332,292 Ͳ 8,600 Ͳ 8,600 340,892 177 PDF HͲFriendship 81,381 Ͳ 1,100 Ͳ 1,100 82,481 180 Future Street Improvements 428,172 171,400 Ͳ 171,400 Ͳ 428,172 TOTAL CAPITAL PROJECT FUNDS 11,767,246 900,800 Ͳ 1,864,800 (964,000) 10,803,246 Debt Service Fund
300 Debt ServiceͲCity 20,608,746 1,005,186 15,824,955 13,522,302 (1,297,467) 19,311,279 TOTAL DEBT SERVICE FUND 20,608,746 1,005,186 15,824,955 13,522,302 (1,297,467) 19,311,279 Internal Service Funds
361 Self Insurance General/Auto Liab (5,757,223) 4,812,100 Ͳ 4,812,100 Ͳ (5,757,223) 363 SelfͲInsurance Workers' Comp (4,620,761) 4,017,800 Ͳ 4,017,800 Ͳ (4,620,761) 365 Fleet Management 509,287 1,565,596 Ͳ 1,565,596 Ͳ 509,287 367 Vehicle Replacement 594,026 15,900 200,000 100,000 (84,100) 509,926 368 Retirement Health Savings Plan 361,727 9,500 4100 0 5,400 367,127 369 Other Post Employment Benefits 1,880,338 Ͳ 48,900 Ͳ 48,900 1,929,238 TOTAL INTERNAL SERVICE FUNDS (7,032,605) 10,469,796 10,599,596 100,000 (29,800) (7,062,405) City of West Covina FY 2025-26 PROPOSED Budget

Page 47 ends

Summary of All Funds
Estimated
Fund
Balance
07/01/2025
Estimated
2025Ͳ2026
Revenue
Projected
2025Ͳ2026
Expenditures
Tranfers In
(Out)
Projected
2025Ͳ2026
Surplus
(Deficit)
Projected
Fund
Balance
06/30/2026
Enterprise Funds
375 Police Enterprise 53,829 302,100 Ͳ 416,635 (114,535) (60,706) TOTAL ENTERPRISE FUND 53,829 302,100 Ͳ 416,635 (114,535) (60,706) Private Purpose Trust Funds
810 Redevelopment Obligation Ret. 2,823,215 2,665,344 1,427,856 (1,679,802) (442,314) 2,380,901 811 Successor Agency Merged DS (4,296,308) ͲͲͲͲ (4,296,308) 815 Successor Agency Admin. Ͳ Ͳ 94,112 Ͳ 94,112 Ͳ 853 CFD Debt Service 27,065 Ͳ Ͳ 900 (900) 26,165
TOTAL PRIVATE PURPOSE TRUST FUNDS (1,446,028) 2,665,344 1,522,868 (1,585,690) (443,214) (1,889,242) GRAND TOTAL 115,028,409 144,277,241 Ͳ 156,182,852 (11,905,611) 103,122,798 City of West Covina FY 2025-26 PROPOSED Budget

Page 48 ends

Fund Balance
FYE'20 FYE'21 Actual FYE'22 Actual FYE'23 Actual FYE'24 Actual FYE'25 Est FYE'26 Audited 6/30/2020
Audited
6/30/2021
Audited
6/30/2022
Audited
6/30/2023
Audited
6/30/2024
Estimated
06/30/2025
Projected
06/30/2026
General Fund
Nonspendable 7,086,958 4,009,651 3,380,136 3,358,665 3,356,089 2,823,215 2,823,215 Restricted 7,650 9,440 8,287 16,069 17,880 18,000 21,000 Assigned Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Ͳ Unassigned 12,580,716 21,468,986 20,770,457 17,654,008 18,484,968 17,867,389 18,172,838 Total 19,675,324 25,488,077 24,158,880 21,028,742 21,858,937 20,708,604 21,017,053 Percent Change 3% 30% Ͳ5% Ͳ13% 4% Ͳ2% Ͳ4%
All other governmental funds:

Nonspendable 82,420 Ͳ 11,989 90,943 Ͳ 107,651 Ͳ Restricted 64,044,695 92,198,163 100,732,082 107,980,761 119,703,559 102,744,609 90,327,855 Assigned 1,786,815 9,687,492 6,601,977 7,617,849 8,487,928 1,876,243 790,243 Unassigned (1,158,958) (228,169) (164,865) (22,661) Ͳ (24,225) Ͳ Total 64,754,972 101,657,486 107,181,183 115,666,892 128,274,913 104,620,852 91,118,098 Percent Change 11% 57% 5% 8% 11% Ͳ10% Ͳ29%
Grand Total 84,430,296 127,145,563 131,340,063 136,695,634 150,133,850 125,329,456 112,135,151 Percent Change 9% 51% 3% 4% 10% Ͳ8% Ͳ25%
Summary of Major Changes
Ͳ
Ͳ
Ͳ
The term “Fund Balance” is used to describe the difference between assets (what is owned) and liabilities (what is owed) reported within a fund. The City has five components to its fund balance:

The City's CalPERS Unfunded Accrued
Liability (UAL) went from $1.9M in
FY2024Ͳ25 to $3.8M in FY2025Ͳ26.

General Fund Fund Balance is expected
to remain consistent next fiscal year.

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

The City's Fund Balance policy requires a minimum unassigned fund balance of at least 17% of General Fund operating expenditures. At the end of the fiscal year, the annual excess revenue over expenditures in the General Fund is allocated as follows: 25% stays in General Fund reserves, 40% is transferred to the Capital Projects Fund, 10% is transferred to Vehicle Replacement Fund, and 25% goes to pay down Other Post Employment Benefits (OPEB) liability.

If the reserve level ever falls below 17%, the City must amend this policy with a plan to rebuild it within three years.

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

FYE'26
Proposed
Millions
General Fund Fund Balance
Nonspendable Restricted Assigned Unassigned
City of West Covina FY 2025-26 PROPOSED Budget

Page 49 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2024
Estimated
Fund Balance
6/30/2025
Projected
Fund Balance
06/30/2026
Projected Change
in Fund Balance
6/30/2026
General Fund
110 General Fund 21,858,824 20,708,604 21,017,053 308,449 TOTAL GENERAL FUND 21,858,824 20,708,604 21,017,053 308,449 Special Revenue Funds
116 State Asset Forfeiture 293,086 199,186 209,486 10,300 117 Equitable SharingͲUSDOJ 3,085,215 1,924,279 245,572 (1,678,707) 118 Equitable SharingͲTreasury 3,523,368 2,982,521 2,041,121 (941,400) 119 Air Quality Improvement Trust 430,063 250,763 211,663 (39,100) 120 Prop A Discretionary 657,958 693,409 715,309 21,900 121 Prop A 304,091 1,319,171 809,751 (509,420) 122 Prop C 2,618,171 2,564,175 2,503,621 (60,554) 124 Gasoline Tax 692,656 (141,413) 15,215 156,628 127 Police Donations 28,908 25,149 21,490 (3,659) 128 Transportation Development Act 41,398 42,298 43,698 1,400 129 AB 939 1,515,194 1,719,966 1,992,227 272,261 131 Community Dev. Block Grant 2,826,389 3,015,271 3,458,057 442,786 138 ABC Grant Ͳ 373 Ͳ 373
143 LA County Park Bond (11,721) 0 Ͳ 0 145 Waste Mgt Enforcement Grant 975,721 852,744 746,668 (106,077) 146 Senior Meals Program 11,959 3,286 5 (3,281) 149 Used Oil Block Grant 4,991 4,991 Ͳ 4,991
150 Inmate Welfare 7,242 3,442 2,542 (900)
153 Public Safety Augmentation 385,056 4,147 12,754 8,607 155 COPS/SLESF 28,825 21,095 14,206 (6,889) 158 CRV Recycling Grant 118,024 90,024 Ͳ 90,024 181 Maintenance District #1 4,236,852 4,301,119 4,307,601 6,482 182 Maintenance District #2 1,150,887 912,185 714,505 (197,680) 183 WC CSS CFD 533,245 496,785 462,105 (34,680) 184 Maintenance District #4 2,144,807 1,722,907 909,134 (813,773) 186 Maintenance District #6 325,357 188,341 21,780 (166,561) 187 Maintenance District #7 460,100 298,696 112,365 (186,331) City of West Covina FY 2025-26 PROPOSED Budget

Page 50 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2024
Estimated
Fund Balance
6/30/2025
Projected
Fund Balance
06/30/2026
Projected Change
in Fund Balance
6/30/2026
188 Citywide Maintenance District 724,581 401,115 803 (400,312) 189 Sewer Maintenance 13,475,203 13,673,522 15,736,591 2,063,069 190 Auto Plaza Improvement District 22,039 61,309 126,827 65,518 191 General Plan Update 1,305,073 1,107,573 210,073 (897,500) 197 Measure W Stormwater 5,816,838 2,611,638 2,037,138 (574,500) 205 PEG Fund 13,569 13,869 269 (13,600) 207 OTS Grants (17,927) (0) Ͳ (0) 212 Art In Public Places 727,480 742,780 562,180 (180,600) 218 Homeland Security Grant (115,904) (0) (0) Ͳ 220 WC Community Svcs Foundation 14,945 274,832 61,532 (213,300) 221 Police Private Grants 1,000 1,000 Ͳ 1,000 224 Measure R 5,514,776 4,921,130 3,504,519 (1,416,611) 232 NonͲFederal Grants (117,046) 4,281 Ͳ 4,281 233 Taskforce Reg. Autotheft Prev. (32,402) 3,921 Ͳ 3,921 234 Officer Wellness & Mental Health 66,182 Ͳ 2,917 (2,917) 235 Measure M 9,192,289 2,058,061 947 (2,057,114) 237 SB1ͲRoad Maintenance Rehab 7,266,365 1,371,495 134,191 (1,237,304) 240 Measure H 51,427 259,439 261,639 2,200 241 CASP Certification & Training 113,573 139,013 143,913 4,900 242 Sportsplex Ͳ Ͳ Ͳ Ͳ 820 Successor Housing Agency 19,899,134 19,225,939 18,547,613 (678,325) TOTAL SPECIAL REVENUE FUNDS 90,309,037 70,368,742 61,003,698 (9,365,044) Capital Project Funds
160 Capital Projects 8,487,928 1,876,243 790,243 (1,086,000) 161 Construction Tax 245,225 231,425 221,125 (10,300) 162 Information Technology 542,196 691,296 836,396 145,100 164 Police Facilities Dev. Impact Fees 146,842 191,142 842 (190,300) 165 Fire Facilities Dev. Impact Fees 153,372 206,872 250,172 43,300 166 Park Facilities Dev. Impact Fees 315,130 390,130 339,130 (51,000) 167 Admin. Facilities Dev. Impact Fees 48,051 55,951 62,251 6,300 168 PW Facilities Dev. Impact Fees 22,439 26,139 29,139 3,000 169 Park Acquisition Fund 2,261,379 2,308,779 2,388,879 80,100 City of West Covina FY 2025-26 PROPOSED Budget

Page 51 ends

Changes in Fund Balance
Audited
Fund Balance
6/30/2024
Estimated
Fund Balance
6/30/2025
Projected
Fund Balance
06/30/2026
Projected Change
in Fund Balance
6/30/2026
170 PDF AͲDel Norte 1,395,510 1,412,010 1,429,310 17,300 171 PDF B Palm View 1,668,696 1,688,396 1,709,096 20,700 172 PDF C OrangewoodͲCa 1,749,979 1,785,279 1,831,779 46,500 174 PDF EͲCortez 61,039 61,739 63,339 1,600 175 PDF FͲGalͲWogrovͲCam 325,492 332,292 340,892 8,600 177 PDF HͲFriendship 80,381 81,381 82,481 1,100 180 Future Street Improvements 428,172 428,172 Ͳ 428,172 TOTAL CAPITAL PROJECT FUNDS 17,931,831 11,767,246 10,803,246 (964,000) Debt Service Fund
300 Debt ServiceͲCity 20,118,960 20,608,746 19,311,279 (1,297,467) TOTAL DEBT SERVICE FUND 20,118,960 20,608,746 19,311,279 (1,297,467) Internal Service Funds
361 Self Insurance General/Auto Liab (6,319,223) (5,757,223) Ͳ (5,757,223) 363 SelfͲInsurance Workers' Comp (4,414,721) (4,620,761) Ͳ (4,620,761) 365 Fleet Management 165,278 509,287 Ͳ 509,287 367 Vehicle Replacement 600,749 594,026 509,926 (84,100) 368 Retirement Health Savings Plan 358,327 361,727 367,127 5,400 369 Other Post Employment Benefits 1,841,838 1,880,338 1,929,238 48,900 TOTAL INTERNAL SERVICE FUNDS (7,767,752) (7,032,605) (7,062,405) (29,800) Enterprise Funds
375 Police Enterprise Ͳ 53,829 (60,706) (114,535)
TOTAL ENTERPRISE FUND Ͳ 53,829 (60,706) (114,535) Private Purpose Trust Funds
810 Redevelopment Obligation Ret. 3,358,125 2,823,215 2,380,901 (442,314) 815 Successor Agency Admin. Ͳ Ͳ ͲͲ
853 CFD Debt Service 6,501,706 27,065 26,165 (900) TOTAL PRIVATE PURPOSE TRUST FUNDS 9,859,831 2,850,280 2,407,066 (443,214) GRAND TOTAL 152,310,731 119,324,842 107,419,231 (11,905,611) City of West Covina FY 2025-26 PROPOSED Budget

Page 52 ends

Transfer Summary
FY 2022Ͳ23
Actual
FY2023Ͳ24
Actual
Original
Budget
FY2024Ͳ25
Estimated
FY2024Ͳ25
Proposed
Budget
FY2025Ͳ26
Increase/
(Decrease)
Transfer In
110 133,904 184,564 145,687 147,681 155,888 10,201 145 15,729 Ͳ Ͳ Ͳ Ͳ Ͳ 158 26,365 Ͳ Ͳ Ͳ Ͳ Ͳ 160 2,525,000 Ͳ 1,501,600 Ͳ 468,192 Ͳ 173 33,375 Ͳ Ͳ Ͳ Ͳ Ͳ 177 Ͳ 75,000 Ͳ Ͳ Ͳ Ͳ 218 Ͳ 1 Ͳ Ͳ Ͳ Ͳ 237 567,200 567,200 567,200 567,200 567,200 Ͳ 242 556,877 871,611 753,068 666,474 918,326 165,258 300 14,581,097 14,473,338 15,372,613 15,372,613 13,522,302 (1,850,311) 361 2,422,115 Ͳ 2,216,300 Ͳ 1,191,522 Ͳ 363 250,000 Ͳ 1,721,100 Ͳ Ͳ Ͳ 367 714,000 Ͳ 375,400 187,277 100,000 100,000 810 Ͳ 71,131 Ͳ Ͳ Ͳ Ͳ 815 250,000 250,000 250,000 250,000 Ͳ 250,000 118 Ͳ 42,225 Ͳ Ͳ Ͳ Ͳ 369 1,787,000 Ͳ Ͳ Ͳ Ͳ Ͳ Transfer In Total 24,051,019 22,161,112 17,088,568 18,850,959 15,513,716 (1,574,852) Transfer Out
110 22,099,818 20,385,109 15,263,586 17,023,983 13,678,026 (1,585,560) 128 Ͳ 10 Ͳ Ͳ Ͳ Ͳ 149 26,365 Ͳ Ͳ Ͳ Ͳ Ͳ 170 Ͳ 33,375 Ͳ Ͳ Ͳ Ͳ 171 Ͳ 75,000 Ͳ Ͳ Ͳ Ͳ 239 Ͳ 1 Ͳ Ͳ Ͳ Ͳ 810 1,682,557 1,591,441 1,679,295 1,679,295 1,679,802 507 815 133,893 184,564 145,687 147,681 155,888 10,201 Transfer Out Total 24,051,019 22,161,113 17,088,568 18,850,959 15,513,716 (1,574,852) Net Transfers Ͳ Ͳ Ͳ Ͳ Ͳ City of West Covina FY 2025-26 PROPOSED Budget

Page 53 ends

Transfer Summary
FY 2022Ͳ23
Actual
FY2023Ͳ24
Actual
Original
Budget
FY2024Ͳ25
Estimated
FY2024Ͳ25
Proposed
Budget
FY2025Ͳ26
Increase/
(Decrease)
Summary of Transfers
General Fund Transfers
Fund Transfer To
Transfer
From
Net
Transfers
Debt Service (300) 12,092,500 (12,092,500)
SB1 (237) 567,200 (567,200)
Sportsplex (242) 918,326 (918,326)
Vehicle Replacement (367) 100,000 (100,000) Successor Agency (815) 155,888 155,888 Total 13,678,026 155,888 (13,522,138)
In FY2024Ͳ25, the General Fund transfers out $12,092,500 to the Debt Service Fund 300 for debt service payments and $567,200 to Fund 237 as the City's Measure of Effort (MOE) for SB1 Ͳ Road Maintenance Rehab.

The Successor Agency transfers out administration costs from Fund 815 (estimated to be $155,888) to the General Fund and transfers $1,429,295 to the Debt Service Fund from Fund 810 for the 2006 Bonds Debt Service payments.

Additionally, a transfer of $918,326 from the General Fund to the Sportsplex Fund 242 has been included as a placeholder.

City of West Covina FY 2025-26 PROPOSED Budget

Page 54 ends

FY2022-23
Actual
FY2023-24
Actual
Original
Budget
FY2024-25
Estimated
FY2024-25
Proposed
Budget
FY2025-26
Increase/
(Decrease)
Revenue
Property Tax 34,653,005 33,401,085 36,219,000 36,861,016 37,345,400 1,126,400 Sales Tax 26,222,939 23,331,254 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes 9,984,854 10,074,971 10,740,400 10,100,323 10,534,000 (206,400) Charges For Service 8,503,455 7,879,356 8,788,500 9,373,685 8,957,830 169,330 Licenses & Permits 2,822,757 5,514,665 3,874,200 3,565,190 4,101,000 226,800 From Other Agencies 3,405,209 2,895,485 3,443,795 3,767,525 3,847,000 403,205 Use of Money & Property 3,202,258 1,123,527 1,900,000 1,900,000 1,915,000 15,000 Fines & Forfeitures 1,077,341 1,190,038 1,136,000 1,027,350 1,749,600 613,600 Interdept Charges 1,196,210 1,188,500 1,196,200 1,196,200 1,196,210 10 Other Revenues 169,835 133,879 143,500 169,190 137,400 (6,100) Revenue Total 86,732,760 91,237,862 91,278,595 93,834,099 96,283,440 5,004,845 Expenditures
Salaries 27,781,349 25,592,782 29,962,312 30,473,593 31,603,689 1,641,377 Benefits 17,860,675 16,204,221 19,226,607 19,572,547 21,273,919 2,048,491 Materials & Services 11,909,154 11,597,175 11,091,280 11,089,209 11,556,530 465,250 Overtime 6,859,483 7,805,797 6,951,635 6,765,201 7,083,954 132,319 Allocated Costs 3,268,330 2,542,903 4,553,787 4,562,115 4,636,520 82,733 PERS UAL Payment - 1,712,960 1,700,110 1,647,485 3,378,583 1,678,473 Utilities 1,325,646 1,409,575 1,471,900 1,562,951 1,616,200 144,300 Fuel 738,510 730,007 741,330 746,601 772,758 31,428
Mutual Aid Overtime 386,569 192,002 288,900 1,534,249 288,900 - Maintenance & Repairs 73,238 109,562 171,500 154,065 167,800 (3,700) Capital Assets 4,281 - - - 74,000 74,000
Expenditures Total 67,896,984 70,207,234 76,159,361 78,108,016 82,452,853 6,294,671 Revenues Less Expenditures 18,835,776 21,030,627 15,119,234 15,726,082 13,830,587 Net Transfers (21,965,914) (20,200,545) (15,117,899) (16,876,302) (13,829,819) Net Change in Fund Balance (3,130,138) 830,082 1,335 (1,150,220) 768 Beginning Fund Balance 24,158,880 21,028,742 21,858,824 21,858,824 20,708,604 Ending Fund Balance 21,028,742 21,858,824 21,860,159 20,708,604 20,709,372 Reserve Requirement (18%) 15,669,435 16,273,400 16,429,907 17,097,177 17,330,881 General Fund Summary
Salaries
38%
Benefits
26%
Materials & Services
14%
Overtime
9%
Allocated Costs
6% PERS UAL Payment
4%
Utilities
2%
Fuel…
Mutual Aid Overtime
0%
Maintenance & Repairs
0%
Other
3%
City of West Covina FY 2025-26 PROPOSED Budget

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FY2022-23
Actual
FY2023-24
Actual
Original
Budget
FY2024-25
Estimated
FY2024-25
Proposed
Budget
FY2025-26
Increase/
(Decrease)
Revenue
Community Development 7,521,712 4,652,573 6,346,300 5,990,340 6,629,900 283,600 Finance 93,429 107,157 87,400 86,810 96,800 9,400
Fire 4,755,737 5,945,949 5,331,500 7,047,271 5,439,330 107,830 General Revenue 71,503,669 77,914,005 76,692,095 77,937,513 80,620,510 3,928,415 Police 1,783,320 1,558,434 1,745,600 1,794,055 2,505,100 759,500 Public Works 1,074,893 1,059,744 1,075,700 978,110 991,800 (83,900) Revenue Total 86,732,760 91,237,862 91,278,595 93,834,099 96,283,440 5,004,845 Expenditures
Administration 1,800,257 1,701,810 1,785,995 1,901,256 2,023,381 237,386 City Clerk 621,338 333,267 710,614 726,140 443,007 (267,607) Community Development 3,681,865 2,905,152 2,755,269 2,257,695 2,844,305 89,036 Community Services 1,865,863 2,482,431 2,389,730 2,772,276 2,721,700 331,970 Finance 2,959,697 3,258,698 3,852,736 3,786,489 3,980,421 127,685 Fire 21,711,806 22,361,570 23,953,222 26,212,485 24,909,962 2,259,263 Human Resources 964,042 722,156 713,607 823,632 872,054 158,447 Police 30,125,902 32,145,503 34,048,448 34,801,819 37,133,890 3,085,442 Public Safety 828,666 1,002,895 1,065,105 1,053,654 1,080,751 16,825 Public Works 3,337,548 3,293,751 4,884,635 5,075,094 5,140,859 256,224 Expenditures Total 67,896,984 70,207,234 76,159,361 78,108,016 82,452,853 6,294,671 Revenues Less Expenditures 18,835,776 21,030,627 15,119,234 15,726,082 13,830,587 Net Transfers (21,965,914) (20,200,545) (15,117,899) (16,876,302) (13,829,819) Net Change in Fund Balance (3,130,138) 830,082 1,335 (1,150,220) 768 Beginning Fund Balance 24,158,880 21,028,742 21,858,824 21,858,824 20,708,604 Ending Fund Balance 21,028,742 21,858,824 21,860,159 20,708,604 20,709,372 Reserve Requirement (18%) 15,669,435 16,273,400 16,429,90 17,097,17 7 17,330,881 7 General Fund Summary by Department
Administration
3%
City Clerk
1% Public Safety
1% Community Development
3%
Community Services
3%
Finance
5%
Fire
32%
Police
45%
Public Works
6%
Human Resources
1%

GENERAL FUND EXPENDITURES BY DEPARTMENT
City of West Covina FY 2025-26 PROPOSED Budget

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FY2022-23
ACTUAL
FY2023-24
Actual
Original
Budget
FY2024-25
Estimated
FY2024-25
Proposed
Budget
FY2025-26
Increase/
(Decrease)
Property Tax 33,401,085 34,653,005 36,219,000 36,861,016 37,345,400 1,126,400 Sales Tax 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes 10,074,971 9,984,854 10,740,400 10,100,323 10,534,000 (206,400) Charges For Service 7,879,356 8,503,455 8,788,500 9,373,685 8,957,830 169,330 Licenses & Permits 5,514,665 2,822,757 3,874,200 3,565,190 4,101,000 226,800 From Other Agencies 3,405,209 2,895,485 3,443,795 3,767,525 3,847,000 403,205 Use of Money & Property 1,123,527 3,202,258 1,900,000 1,900,000 1,915,000 15,000 Fines & Forfeitures 1,190,038 1,077,341 1,136,000 1,027,350 1,749,600 613,600 Interdept Charges 1,188,500 1,196,210 1,196,200 1,196,200 1,196,210 10 Other Revenues 133,879 169,835 143,500 169,190 137,400 (6,100) Grand Total 86,732,760 91,237,862 91,278,595 93,834,099 96,283,440 5,004,845 Revenue Sources
General Fund Revenue Summary
The City’s major revenue sources include property, sales and other taxes (78% combined). Each of these revenue sources are driven by the growth of the local economy and the City’s population. This is also true of several of the City’s other revenue sources including fees and charges for service, and licenses and permits. ඵ Sales tax has increased slightly by 2.4%. While sales tax has spiked in prior years, HdL (revenue consultant) estimates it will flatten in the upcoming years.
ඵ Other Taxes increased consistent with the Long-Range Financial Forecast: Franchise Tax increased by 3%, Transient Occupancy Tax increased by 3% (excluding one hotel), and Business License Tax increased by 3%. ඵ Based on anticipated tax rolls, Property tax increased by 1.3% over the end of year estimate.

Property Tax
39%
Sales Tax
28%
Other Taxes
11%
Charges For Service
9%
Revenue From Other
Agencies
4%
Licenses & Permits
4%
Other Revenues
5%
General Fund Revenue
City of West Covina FY 2025-26 PROPOSED Budget

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FY2022-23
Actual
FY2023-24
Actual
Original
Budget
FY2024-25
Estimated
FY2024-25
Proposed
Budget
FY2025-26
Increase/
(Decrease)
Property Tax
Current Year Secured 15,229,418 15,347,040 16,800,000 16,800,000 16,816,800 16,800 Suppl In Lieu of VLF 14,158,076 14,881,607 15,328,000 15,592,416 16,060,000 732,000 Residual/Excess Tax Increment 4,013,591 4,424,358 4,091,000 4,468,600 4,468,600 377,600 Property Tax Total 33,401,085 34,653,005 36,219,000 36,861,016 37,345,400 1,126,400 Sales Tax
Sales & Use Taxes 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Sales Tax Total 23,331,254 26,222,939 23,837,000 25,873,620 26,500,000 2,663,000 Other Taxes
Franchise 5,237,769 5,052,041 5,556,700 5,203,603 5,556,700 - Business License Tax 2,603,717 2,800,100 2,762,000 2,819,700 2,854,000 92,000 Transient Occupancy Tax 1,809,656 1,728,098 1,919,900 1,575,220 1,622,500 (297,400) Documentary Transfer Tax 421,063 402,293 499,000 499,000 498,000 (1,000) Contractors License Tax 2,766 2,320 2,800 2,800 2,800 - Other Taxes Total 10,074,971 9,984,854 10,740,400 10,100,323 10,534,000 (206,400) Charges For Service
Ambulance Services 3,107,786 4,609,007 3,513,100 3,923,923 4,240,030 410,823 Plan Check Fees 1,267,848 1,180,376 1,662,800 1,662,800 1,740,700 77,900 Planning Filing Fees 441,043 362,698 429,500 429,500 435,400 5,900 Fire Plan Check/Insp. Fees 442,529 272,590 362,700 362,700 362,600 (100) EMS Treatment Fee 210,867 271,283 306,900 306,900 316,107 9,207 Ground Emerg. Med. Trans. 463,429 49,289 594,000 594,000 277,900 (316,100) Facility Rental - Ccc 236,067 250,959 234,400 187,600 233,700 (700) Towing Franchise 228,580 174,758 220,000 220,000 222,000 2,000 Plan Review Surcharge 92,211 128,945 203,800 203,800 194,400 (9,400) Afterschool Programs-Vine 170,359 172,900 165,600 165,600 166,700 1,100 Recreation Classes/Programs - Ccc 219,736 210,211 145,900 95,780 140,400 (5,500) Jail Booking 72,310 46,909 67,900 67,900 100,000 32,100 Waste Management Fees 92,188 96,889 77,400 77,400 88,100 10,700 Police Reimbursements 110,394 48,479 70,500 70,500 74,300 3,800 Facility Rentals 50,920 38,178 109,200 31,620 71,800 (37,400) Service Fee - Credit/Debit Cards 69,947 67,300 63,700 63,700 68,000 4,300 Fire Seminar 73,555 73,063 56,900 29,192 59,000 2,100
Permit Document Retention Fee 62,270 39,486 40,700 40,700 46,300 5,600 Rental - Roller Hockey 42,876 50,864 19,800 49,900 39,300 19,500 Fire Emergency Incident Billing Fee 67,596 41,274 25,700 25,700 36,600 10,900 Park Shelter Rentals 36,568 40,523 34,500 22,260 35,100 600 General Fund Revenue
City of West Covina FY 2025-26 PROPOSED Budget

Page 58 ends

West Covina City CouncilJune 3, 2025

West Covina City Council
June 3, 2025