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09-15-2015 - City Manager Employment Agreement - Item No. 1.pdfC\nkal,LL- City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 1 FROM: Tom Mauk Interim City Manager DATE September 15, 2015 BY: Chris Freeland Assistant City Manager/Community Development Commission Director SUBJECT: EMPLOYMENT AGREEMENT CITY MANAGER RECOMMENDATION: It is recommended that the City Council approve the attached employment agreement with Chris Freeland for the position of City Manager of the City of West Covina. DISCUSSION: As the City Council is aware, there has been an extensive and thorough search for a new City Manager for the City of West Covina over the last several months. I am pleased to report that after a recruitment process, interviews and extensive discussion, the City Council has instructed the Interim City Manager and the City Attorney to draft and then finalize an employment agreement with Mr. Freeland appointing him as the new City Manager. The attached agreement does that in keeping with City Council instructions as to terms and conditions. The agreement, if approved by the City Council, implements City Council direction. It is recommended for approval with an effective date of September 15, 2015, FISCAL IMPACT: The provisions of the agreement fall within the parameters of the current City Manager budget allocations, Prepared By: Attachment - Employment Agreement City Manager Attachment CITY OF WEST COVINA CITY MANAGER EMPLOYMENT AGREEMENT This EMPLOYMENT AGREEMENT (hereinafter referred to as "Agreement") is entered into by and between the CITY OF WEST COVINA (hereinafter referred to as the "City") and CHRISTOPHER J. FREELAND (hereinafter referred to as "Freeland" or "City Manager"), and collectively referred to as the "Parties". Under this Agreement, the City offers, and Freeland accepts, employment as City Manager of the City. ARTICLE I: RECITALS WHEREAS, the City desires to employ the services of Freeland as City Manager, with the responsibility of managing, directing, and monitoring the proper administration of the City pursuant to the provisions of the West Covina Municipal Code, hereinafter referred to as the "WCMC", and the City's approved Personnel Rules, Regulations and Procedures, hereinafter referred to as the "Personnel Rules"; and WHEREAS, the City desires to (1) secure and retain the services of Freeland and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring his morale and peace of mind with respect to future security, and (3) to provide a just means for terminating his services at such time as City may desire to otherwise terminate his employ; and WHEREAS, the City desires to employ Freeland as City Manager, and Freeland desires to accept employment as City Manager pursuant to the terms and conditions of this Agreement. NOW, THEREFORE, the above named Parties hereby mutually agree and promise as follows: ARTICLE II: TERMS AND CONDITIONS Section 1. Duties and Responsibilities A. City Manager shall perform the functions and duties as specified and required in the WCMC and Personnel Rules of the City. B. City Manager shall maintain the administrative and fiduciary authority conferred upon the position and pursuant to the WCMC and Personnel Rules of the City. C. City Manager shall serve as the Executive Director of the West Covina Successor Agency, the West Covina Housing Authority, West Covina Parking Authority, West Covina Community Services Foundation, and West Covina Public Finance Authority. D. City Manager shall perform all other related and necessary duties as required by law and designated by the City. City Manager Agreement _ Freeland 9.9.15 Effective_09.15.2015 E. City Manager shall have his performance evaluated by the City Council on an annual basis. Said annual evaluations shall be conducted in August or September for each year of this Agreement, or any extensions thereof. City Manager and City shall mutually establish performance goals and objectives to be met by the City Manager during the annual evaluation process, and said goals and objectives shall be made part of the criteria by which the City Manager's performance is evaluated. F. City Manager shall avail himself and work during the normal office hours of the City. In addition, it is understood that the City Manager must devote a great deal of time performing City business outside the normal office hours of the City and as such, the City Manager shall make himself available outside normal office hours as deemed reasonable and appropriate. G. City Manager hereby agrees to perform faithfully and to the best of his abilities all of the duties pertaining to said office as may be required by the laws of the City of West Covina and State of California relating to municipal corporations, and the rules and regulations of the City which are now in force or which may be put in force during the term herein stated, and further shall perform such other tasks and duties as may be designated by the City Council, and that the Parties hereto agree that said position of City Manager shall be deemed and construed to be a full-time position except as set forth in Section 2, paragraph F of this Agreement. Section 2. Terms A. The term of this Agreement shall commence on September 15, 2015 ("Effective Date"), and expire on September 14, 2018 ("Expiration Date"), or the date of earlier termination in accordance with the provisions of this Agreement. B. Freeland shall work and coordinate with the current Interim City Manager to effectuate a smooth and orderly transition of duties pursuant to this Agreement. As a result of this coordination and transition of duties, there will be no vacancy in the position of City Manager at any time. C. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City to terminate the City Manager as an "at-will" employee prior to the Expiration Date of the Agreement, subject to the provisions of Section 3, paragraphs A and B, of this Agreement and Section 2-153 of the WCMC as it now exists or as it may hereafter be amended. D. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Manager to resign at any time from his position with the City provided the City Manager gives the City 60 days written notice prior to the effective date of his resignation, unless the Parties otherwise agree. In the event the City Manager exercises this right, he shall not be entitled to the provisions set forth in Section 3, paragraph A of this Agreement, unless the Parties otherwise agree. City Manager Agreement _ Freeland 9.9.15 2 Effective_09.15.2015 E. City Manager agrees to remain in the exclusive employ of the City and shall neither accept other employment nor become employed by any other employer prior to the effective termination date of this Agreement, or unless mutually agreed to by the Parties to this Agreement. The term "employed" shall not be construed to include occasional teaching, writing, consulting or military reserve service performed on City Manager's personal time off. Section 3. Termination and Severabilitv A. In the event the City Manager is terminated without cause by the City before the expiration of the above-mentioned term, along with any written extensions thereto, and during such time the City Manager is willing and able to perform his duties under this Agreement, then the City agrees to provide the City Manager with the following severance items: i. Nine (9) month's salary in accordance with the base salary rate of the City Manager at the time of termination or the monthly salary for the remaining number of months of the Agreement, whichever is less; Continuous City paid health benefits (medical, dental, and vision) for which the City Manager and his dependents are enrolled at the time of termination for the remaining number of months of the Agreement, nine (9) months, or until the employee finds other employment, whichever occurs first; Payment of accrued vacation leave, sick leave, administrative leave, and floating holiday leave in accordance with the provisions set forth in this Agreement at the time this Agreement is terminated. B. In the event the City Manager is terminated with cause by the City, as determined by the City Council at a Regular Meeting of the City Council, in accordance with the requirements of the Municipal Code_as they exist at the time of the termination, the City Manager shall not be entitled to any of the aforementioned severance items in paragraph A of this Section. If the City Manager is terminated with cause, he shall only be entitled to payment of his accrued base salary and accrued but unused vacation leave at the time of termination. As used in this Agreement, cause shall only mean any of the following: i. Conviction of, or plea of guilty or nob o contendre to, any crime or offense (other than minor traffic violations or similar offenses) which is likely to have a matedal adverse impact on the City or on the City Manager's reputation; Conviction of any felony, irrespective of the charge; Conviction of any misdemeanor involving charges of moral turpitude; iv. Any act or engagement of misappropriation of public funds; v. Proven failure of the City Manager to observe or perform any of his duties and obligations, if that failure continues for a period of thirty (30) business days from the date of his receipt of notice from the City Council specifying the acts or omissions deemed to amount to that failure; vi. Repeated failure to carry out a directive or directives of the City Council made by the City Council as a body at a Brown Act. compliant meeting; and City Manager Agreement _ Freeland 9.9.15 3 Effective 09.15.2015 In the event the City Manager is terminated with cause, the City shall ensure that the City Manager is first provided with notice and opportunity for a hearing pursuant to Section 2- 153(a), (b) and (c) of the WCMC, as it now exists or as it may hereafter be amended. C. In no event may the City Manager be terminated without cause during the time period provided by Section 153 of the WCMC, as it now exists or as it may hereafter be amended. D. In the event the City Manager dies during the term or extended term of this Agreement, his estate shall receive his accrued salary and benefits at the time of his death, but shall not be entitled to any additional compensation or payment, including severance as specified in Section 3, paragraph A of this Agreement. E. In the event the City Manager is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, or mental incapacity for a period of twelve consecutive weeks beyond any provided sick leave, the City may terminate City Manager's employment and this Agreement. Any such period of continued disability beyond the period of accrued sick leave shall be understood by the City and the City Manager to constitute leave under state and federal leave statutes commonly known as Family Medical Leave Act (FMLA), during which time the City Manager may use other accrued but unpaid leave balances to which is entitled._Should this Agreement be terminated for this reason, the City Manager shall not receive any severance as specified in Section 3, paragraph A of this Agreement, but he shall be entitled to be paid any unused and accrued vacation and leave time to which he would otherwise be entitled. F. In the event the City at any time during the term of this Agreement refuses, following written notice, to comply with any provision benefiting City Manager herein, then, in that event, City Manager may at his option, be deemed "terminated" at the date of such refusal to comply, and subject to the terms set forth in paragraph A of this Section. Section 4. Base Salary, Merit Increases and Cost Adjustments A. Commencing upon the Effective Date, City agrees to pay the City Manager an annual salary of $212,000.00. Said salary shall be paid to the City Manager in installments at the same time as other employees of the City are paid. In addition, the City agrees to increase said base salary and/or other benefits of the City Manager in such amounts and to such extent as the City Council may determine that it is desirable to do so. B. The City shall consider merit adjustments to the City Manager's base salary commensurate with his performance in accordance with the Annual Evaluation process pursuant to Section 1, paragraph E of this Agreement. C. City Manager's Base Salary increases approved by the City Council from time to time pursuant to this Agreement shall not require an amendment to this Agreement to be effective. Such may be set forth in an annual salary resolution or minute action approved by the City Council and ratified by resolution. City Manager Agreement _ Freeland 9.9.15 4 Effeetive_09.15 2015 Section 5. Vacation, Sick, Administrative and Floating Holiday Leave A. City Manager shall accrue and be credited with vacation leave, sick leave, and administrative leave pursuant to the following provisions: Leave Accrual Rate Maximum Accrual (Cap) Vacation 160 hours/year .400 hours unused balance limit Sick 96 hours/year . ...... ..No limit on balance amount Admin 140 hours/year 140 hours balance limit (no rollovers) Floating Holidays .... 40 hours/year 40 hour balance limit (no rollovers) B. City Manager shall be entitled to participate in the City's annual sick leave cash-out program, pursuant to the following provisions: i. Annual cash-out of sick leave is capped at forty (40) hours per calendar year. Fifty-six (56) hours of unused sick leave must be carried over from December 31s t to January 1st each calendar year. Prior to the second to last pay period of each calendar year, the City Manager may request to cash-out accrued sick leave in excess of the fifty-six (56) hour minimum balance. iv. Sick leave cash-outs can only be made when the City Manager's sick leave bank has more than fifty-six (56) hour minimum balance. v. City Manager shall not be allowed to change sick leave to other forms of paid leave. C. City Manager shall not be entitled to participate in any annual leave cash-out programs provide by the City other than the City's annual sick leave cash-out program, as specified in paragraph B of this Section. Notwithstanding the foregoing, upon retirement from the City, City Manager shall be entitled to exercise the same sick leave conversion option for accrued sick leave balances which is available to the City's Department Heads. Section 6. Medical, Dental, Vision, and Life Insurance A. Upon the Effective Date of this Agreement, the City shall provide the City Manager with the same insurance plans (medical, dental, vision, disability, and accident) which are provided to other City Department Heads and shall pay that portion of the employee and dependent rate or premium as is determined by the City Council for all other City Department Heads. B. City Manager shall be provided, at City's expense, with a term life insurance policy equal to one and one-half (1 1/2) times the City Manager's annual base salary. Said policy shall include a double indemnity payment of accidental death during the course of employment. Upon an increase in the City Manager's base salary, the amount of life insurance shall be increased accordingly. C. City Manager shall be allowed to participate in a Retirement Health Savings (RHS) plan. The City will contribute $600 per month to the RHS. City Manager Agreement Freeland 9.9.15 5 Effective_09 .15 .20 15 Section 7. Pension and Deferred Compensation A. City Manager shall be covered by the California State Employee Retirement System (CalPERS) and entitled to the annuity as specified by the City's CalPERS contract and applicable Memoranda of Understanding for Department Heads at the time of his retirement. The City and City Manager shall each pay their full share of the CalPERS retirement contribution rate as determined by the City's CalPERS contract. No additional contributions shall be made on behalf of City Manager to the City's EPMC program from and after the effective date of this Agreement. Nothing herein shall be deemed to affect any EPMC benefits previously earned by City Manager during his employment with the City in any other position. B. City shall contribute the equivalent of 7.5% of the City Manager's base salary to a deferred compensation program selected by the City Manager from the list of plans offered by the City. This deferred compensation benefit shall not exceed the maximum amount allowed under Internal Revenue Service regulations for any given tax year. Section 8. Automobile Allowance The City recognizes that the City Manager's duties and obligations require that he have the unrestricted use of an automobile while employed by the City. In recognition of his necessary duties, the City agrees to provide the City Manager with an automobile allowance of $400 per month. Section 9. Dues and Subscriptions City agrees to budget and to pay for the professional dues and subscriptions of the City Manager necessary for his continuation and full participation in national, regional, state and local associations and organizations (e.g. ICMA, League of California Cities, AMA) as necessary and desirable for his continued professional participation, growth and advancement, and for the good of the City during his employment as City Manager. Section 10. Professional Development A. City hereby agrees that it is in the City's best interest that the City Manager set aside a reasonable period of time each year for his continuing educational and professional development. B. City hereby agrees to budget and to pay the travel and reasonable expenses of the City Manager for professional and related office travel, meetings and occasions adequate to continue the professional development of the City Manager, and to adequately pursue necessary official and other functions for the City, including but not limited to, the Annual Conference of the International City Management Association, the League of California Cities, and such other national, regional, state, and local governmental groups and committees thereof which the City Manager serves as a member, City Manager Agreement Free land 9.9.15 6 Effective_09.15.2015 City also agrees to budget and to pay for the travel and reasonable expense of the City Manager for short courses, institutes, and seminars that are necessary for his professional development and for the benefit of the City. City shall not be responsible for the cost of the City Manager's spouse in the event she attends a conference or seminar with him. C. City Manager's attendance at conferences or seminars is subject to the requirement of the WCMC in which the City Manager's absence from a City Council meeting must be approved by the City Council. Section 11. Education and Tuition Benefit City shall provide reimbursement to the City Manager up to $2,500.00 annually for all tuition, books, and related educational costs incurred for college courses taken by the City Manager towards the attainment of a post-graduate degree (M.P.A., M.B.A.) or in a field related to his duties as City Manager. Section 12. General Expenses The City recognizes that certain expenses of a non-personal, but job-related nature are incurred by the City Manager, and the City agrees to reimburse or to pay these general expenses on a monthly basis. The Finance Director is hereby authorized to reimburse the City Manager upon the presentation of a receipt, voucher, statement, or personal affidavit of duly executed expenses. Section 13. City Council Commitments A. Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consultants solely through the City Manager or his designee, and neither the City Council nor any member thereof shall give direction to any subordinate of the City Manager, either publicly or privately. B. No member of the City Council shall order the appointment or removal of any person to any office or employment under the supervision and control of the City Manager. C. Neither the City Council nor any of its members shall interfere with the execution of the powers and duties of the City Manager, as specified in the WCMC and Personnel Rules, this Agreement, or any other lawfully adopted and authorized policy document. Section 14. Indemnification City shall defend, save harmless and indemnify the City Manager against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of his duties as City Manager. The City Manager agrees to cooperate in any and all litigation matters which may be filed in the future. The City shall pay all costs incurred by the City Manager in connection therewith, including City Manager Agreement _ Freeland 9.9.15 7 Effective_09.15.2015 travel fees and costs associated with such matters, subject to the City's right to reimbursement pursuant to Section 17 below. Section 15. Bonding City shall bear the full costs of any fidelity or other bonds required of the City Manager pursuant to any law or ordinance. Section 16. Other Terms and Conditions of Employment The City, in consultation with the City Manager, shall fix any such other terms and conditions of employment, as it may determine from time to time, relating to the performance of the City Manager, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Agreement or any other law. Section 17. Reimbursement to City Notwithstanding the foregoing, the following provisions requiring reimbursement for certain compensation and/or indemnification provided to Employee by the City apply: (a) Paid Leave: Pursuant to Government Code section 53243, in the event that Employee is convicted of a crime involving the abuse of his office or position, as defined by Government Code section 53243.4, with the City, any paid leave salary provided by the City for the time period in which the Employee is under investigation for such crimes shall be fully reimbursed by Employee to the City. (b) Legal Defense: Pursuant to Government Code section 53243.1, in the event that Employee is convicted of a crime involving abuse of his office or position, as defined by Government Code section 53243.4, Employee shall fully reimburse the City for all the costs of his legal criminal defense. (c) Severance: Pursuant to Government Code section 53243.2, in the event that Employee is convicted of a crime involving abuse of his office or position, as defined by Government Code section 53243.4, Employee shall fully reimburse the City for any cash settlement, including but not limited to severance pay, paid to Employee related to his termination under this Agreement. City Manager Agreement _ Freeland 9.9.15 8 Effective 09.15.2015 Section 18. Notices Any notices to be given hereunder by either party to the other in writing may be effected either by personal delivery, mail, or email. Mailed notices shall be addressed to the parties as set forth below, but each party may change his/her/its address by written notice given in accordance with this Section. Notices delivered personally or by email will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated and received as of three (3) calendar days following the date of mailing. CITY: City of West Covina Attention: Mayor 1444 West Garvey Ave., South West Covina, CA 91790 CITY MANAGER: Christopher J. Freeland City Manager's Office 1444 West Garvey Ave., South West Covina, CA 91790 Section 19. General Provisions A. The text herein shall constitute the entire agreement between the parties. B. This Agreement shall be binding upon and inure to the benefit of the heirs at law and executors of City Manager. C. Any modification of this Agreement will be effective only if in writing and signed by both parties executing this Agreement. D. If any provision or any portion thereof, contained in this Agreement is held unconstitutional, invalid or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect. E. This Agreement shall be governed by and construed in accordance with the laws of the State of California. F. In the event either party commences an action, either by arbitration or judicial proceedings, against the other arising out of or in connection with the enforcement of the terms of this Agreement, the prevailing party shall be entitled to have and recover from the losing party, in addition to any award at law or equity, reasonable attorney's fees, court costs, and costs of suit or arbitration, including costs of appeal, if any, in such amount as the court or arbitrator may award. City Manager Agreement _ Freeland 9.9.15 9 Effective_09.15.2015 IN WITNESS WHEREOF, the City of West Covina (CITY) has caused this Agreement to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk, and Chris Freeland (CITY MANAGER) has signed and executed this Agreement, both in duplicate, this day and year first above written. ATTEST: "CITY" Rosana Conde Fredrick Sykes City Clerk Mayor APPROVED AS TO FORM "CITY MANAGER" Kimberly Hall Barlow Christopher J. Freeland City Attorney City Manager Agreement Freeland 9.9.15 10 Effective_09.15.2015 City of West Covina MEMORANDUM AGENDA ITEM NO.: 2 DATE: September 15, 2015 CITY OF WEST COVINA CITY COUNCIL TUESDAY FEBRUARY 17, 2015, 5:45 PM SPECIAL MEETING CITY MANAGER'S CONFERENCE ROOM 1444 W. GARVEY AVENUE WEST COVINA, CALIFORNIA 91790 MINUTES Mayor Sykes called to order the special meeting of the West Covina City Council at 5:53 p.m. in the City Manager's Conference Room at City Hall, 1444 W. Garvey Avenue, West Covina. ROLL CALL Present: Mayor Sykes, Mayor Pro Tern Toma Councilmember Warshaw Absent: Councilmembers Herfert, Spence Others Present: Mauk, Barlow, Freeland, Franco, Special Counsel Juong Kim PUBLIC COMMENTS ON ITEMS ON THE AGENDA No comments made. Tuesday February 17, 2015 CLOSED SESSION Mayor Sykes commenced the closed session at 5:58 p.m. to discuss the following matter(s): CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: 1360 W. Garvey Avenue South Agency Negotiator: Mauk, Freeland, Barlow Negotiating Parties: Kirk Cartozian, Cartozian Associates Under Negotiation: Terms of Lease CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: 2121 E. Shadow Oak Drive Agency Negotiator: Mauk, Freeland, Barlow Negotiating Parties: Verizon Wireless Under Negotiation: Terms of Lease CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) City of West Covina v. Hassen Imports Partnership, et al. Los Angeles Superior Court Case No. KC048157 In re Hassen Imports Partnership, Debtor, United States Bankruptcy Court Case No. 2:11-bk- 42068-ER In re Hassen Imports Partnership, Debtor, United States District Court Case No. 2:13-cv-07532- CAS CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) Perez v. City of West Covina CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 City Negotiators: Mauk, Freeland, Barlow Employee Organizations - Confidential Employees - General Employees - Maintenance & Crafts Employees - Mid-Management Employees - W.C. Police Officers' Association - W.C. Police Management Association - W.C. Firefighters' Management Assoc. - W.C. Firefighters' Association, I.A.F.F., Local 3226 ADJOURNMENT Mayor Sykes adjourned the meeting at 6:48 p.m. 2 Tuesday February 17, 2015 Submitted by: Rosalia A. Conde, CMC Assistant City Clerk Fredrick Sykes Mayor 3 CITY OF WEST COVINA SUCCESSOR AGENCY TUESDAY FEBRUARY 17, 2015, 5:45 PM SPECIAL MEETING CITY MANAGER'S CONFERENCE ROOM 1444 W. GARVEY AVENUE WEST COVINA, CALIFORNIA 91790 MINUTES Chairman Sykes called to order the special meeting of the West Covina Successor Agency at 5:53 p.m. in the City Manager's Conference Room at City Hall, 1444 W. Garvey Avenue, West Covina. ROLL CALL Present: Chairman Sykes, Vice Chairman Toma Board Member Warshaw Absent: Agency Members Herfert, Spence Others Present: Mauk, Barlow, Freeland PUBLIC COMMENTS ON ITEMS ON THE AGENDA No comments made. CLOSED SESSION Chairman Sykes commenced the closed session at 5:58 p.m. to discuss the following matter(s): Tuesday February 17,2015 CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) City of West Covina v. Hassen Imports Partnership, et al. Los Angeles Superior Court Case No. KC048157 In re Hassen Imports Partnership, Debtor, United States Bankruptcy Court Case No. 2:11-bk- 42068-ER In re Hassen Imports Partnership, Debtor, United States District Court Case No. 2:13-cv-07532- CAS ADJOURNMENT Chairman Sykes adjourned the meeting at 6:48 p.m. Submitted by: Rosalia A. Conde, CMC Assistant Agency Secretary Fredrick Sykes Chairman 2 CITY OF WEST COVINA CITY COUNCIL TUESDAY, FEBRUARY 17 2015, 7:00 PM REGULAR MEETING CITY HALL COUNCIL CHAMBERS 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 MINUTES CALL TO ORDER — Mayor Fredrick Sykes called the meeting to order at 7:06 p.m. INVOCATION — Led by Leslie Jenal, Citrus Valley Hospice Group PLEDGE OF ALLEGIANCE — Led by Councilmember Corey Warshaw ROLL CALL Present: Sykes, Toma, Spence (arrived at 8:55 p.m.), Warshaw Absent: Herfert REPORTING OUT FROM CLOSED SESSION CONFERENCE WITH LEGAL REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: 1360 W. Garvey Avenue South Agency Negotiator: Mauk, Freeland Barlow Negotiating Parties: Kirk Cartozian, Cartozian Associates Under Negotiation: Terms of Lease Tuesday February 17, 2015 CONFERENCE WITH LEGAL REAL PROPERTY NEGOTIATORS Pursuant to Government Code § 54956.8 Property: 2121 E. Shadow Oak Drive Agency Negotiator: Mauk, Freeland Barlow Negotiating Parties: Verizon Wireless Under Negotiation: Terms of Lease CONFERENCE WITH LEGAL COUNSEL — EXITING LITIGATION Pursuant to Government Code § 54956.9(d)(1) City of West Covina v. Hassen Imports Partnerships, et al. Los Angeles Superior Court Case No. KC048157 In re Hassen Imports Partnership, Debtor, United States Bankruptcy Court Case No. 2:11-bk- 42068-ER In re Hassen Imports Partnership, Debtor, United States District Court Case No. 2:13-cv-07532- CAS CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) Perez v. City of West Covina CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code § 54957.6 City Negotiators: Mauk, Freeland, Barlow • Employee Organizations - Confidential Employees - Maintenance & Crafts Employees - W.C. Police Officers' Association - W. C. Firefighters' Management Assoc. - General Employees - Mid-Management Employees -W.C. Police Management Association -W.C. Firefighters' Assoc., I.A.F.F., Local 3226 City Attorney Kimberly Barlow stated there was direction provided on each matter and there was no reportable action. CHANGES TO THE AGENDA Interim City Manager Mauk pulled Agenda Item No. 14 off the agenda PRESENTATIONS Mayor Sykes called Deputy City Manager Chris Freeland forward who briefly explained Student Government Day and introduced the students who participated today. Participants were presented with certificates. Mayor Sykes called forward Police Chief Dave Faulkner who introduced the West Covina Police Explores who recently competed with 57 other Explorer Posts in a variety of police exercises in Arizona. 2 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 ORAL COMMUNICATIONS - Five (5) minutes per speaker Lola Finley, West Covina resident speaking on behalf of her neighborhood watch group, expressed concerns with crime in the area of Woodbridge apartments and graffiti and requested that more Code Enforcement officers and Police Officers be hired. Ms. Finely also concerned with certain types of businesses opening in the south area. Trudi Saltmarsh, West Covina resident, spoke on the Athens Services contract requesting it being review and addressed the use of Big League Dreams. Alexander Garcia, West Covina resident, spoke on the act of defense and gun ownership. William Elliott, West Covina resident, addressed the release of former City Manager Chris Chung and his severance package; Athens Services contract; and the concealed carry permit policy in the City. Lloyd Johnson, West Covina resident, requested an opinion as to the legality of contracts if not signed by the Mayor; spoke in support of several items on the agenda and announced the Casino Night event on March 7 which is a fundraiser for the Veteran Memorial project. Herb Redholtz, West Covina resident, echoed comments by Lola Finely; expressed concerns with a street vendor at Amar and Officer Chiles Way; supported a changed in the commission appointment process. Elsie Messman, West Covina resident, addressed the use of the Castucci Foundation funds, - commented on the new attorney firm, Alicia Oran, West Covina resident, spoke in in opposition to a strip clubs in West Covina and support bringing in a Portos business. Phil Kaufman, West Covina resident, addressed Caltrans presentation at last meeting as it left many unanswered questions, spoke on workers' compensation legal costs, and stated a correction to the commission stipend as reported in the staff report. Armando D'Avila, West Covina resident, inquired into emergency preparedness plans in the City. Sharon Anderson, West Covina resident, expressed her disappointment with the housing development on Lark Ellen as it is not as was presented prior to building. Kevin and Lucy Thielen, West Covina resident, expressed concerns with the Crazy Horse property and supported a Portos at the location. Ruby Fournier, President of West Covina Youth Soccer, spoke in support of a new soccer fields in West Covina and supported the approval of a consultant for field design. Jim Solis, Vice Present of West Covina Youth Soccer, reiterated Ms. Fournier's comments. 3 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 Jose Daniel Jimenez, West Covina resident, supported consultant agreement for soccer field design. John Shewmaker, West Covina resident, addressed the progression of the improvements at the police department and current ordinance limiting development on public property. Anthony Chacon Sr., representing West Covina Bruins Jr. All American Football organization, recited a letter which was sent to the school board which expressed concerns with a pop warner football organization who is relocating to West Covina. RECESS — Mayor Sykes recesses the City Council meeting at 8:31 p.m. to allow the students participating in Student Government Day be released. The City Council meeting reconvened at 8:40 p.m. will all members present except Councilmember Herfert. Harold Scoggins, President of the West Covina Bruins Jr. All American Football organization, also shared concerns with an outside football programs coming into the city reciting several of the issues. Bruce Leinbach, West Covina resident, commended resident Lola Finely for her involvement in West Covina and spoke on crime in the area. Interim City Manager Mauk addressed several comments and requested Agenda Item 5 be pulled and reviewed before final approval as speakers expressed concerns with the project. Councilmember Spence arrived at 8:55 p.m. Councilmembers commented of several of the speakers concerns. 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 (receive & file) 1) November 10, 2014 Special City Council Meeting Minutes December 16, 2014 Special City Council Meeting Minutes January 20, 2015 Special City Council Meeting Minutes Motion by Warshaw and seconded by Toma to receive and file. Motion carried 4-0. AYES: NOES: ABSENT: Spence, Toma, Warshaw, Sykes None Herfert 4 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 COMMISSION SUMMARY OF ACTIONS (receive & file) 2) June 11, 2014 Human Resources Commission Meeting Dec. 10, 2014 Human Resources Commission Meeting Feb. 10, 2015 Planning Commission Meeting Motion by Warshaw and seconded by Toma to receive and file. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert CLAIMS AGAINST THE CITY 3) Government Tort Claim Denials (deny & notify claimant) It is recommended that the City Council deny the following Government Tort Claims, and the claimants and/or their respective attorneys be notified. Jamey Deon vs. City of West Covina Eddie Ramirez vs. City of West Covina Motion by Warshaw and seconded by Toma to deny the claims and notify the claimants and/or their respective attorneys. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert ORDINANCES FOR ADOPTION 4) An Ordinance Amending Chapter 2, Article VIII of the West Covina Municipal Code Relating to Campaign Finance Regulations This ordinance was introduced at the West Covina Council meeting of February 3, 2015. The purpose of this ordinance is to revise and update the laws relating to campaign contributions under Chapter 2, Article VIII of the West Covina Municipal Code. The ordinance will take effect 30 days after its adoption on February 17, 2015. It is recommended that the City Council waive further reading and adopt the following ordinance: ORDINANCE NO. 2272 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 2, ARTICLE VIII OF THE WEST COVINA MUNICIPAL CODE RELATING TO CAMPAIGN FINANCE REGULATIONS 5 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 This items removed from the consent calendar for separate consideration. Following discussion by Council, motion by Toma and seconded by Warshaw to waive further reading and adopt. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: Herfert APPROVAL OF FINAL MAP 5) Approval of Final Map for Tract Map No. 72320 Location: 520 S. Lark Ellen Avenue Subdivider: K B Home Greater Los Angeles, Inc. It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING FINAL MAP OF TRACT MAP NO. 72320 LOCATED AT 520 S. LARK ELLEN AVENUE (K B HOME GREATER LOS ANGELES, INC.) This item pulled of the agenda by Interim City Manager Mauk due to concerns brought forth by speakers. Motion by Warshaw and seconded by Sykes to continue this item to the next meeting. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: Herfert COMMUNITY SERVICES DEPARTMENT 6) Co-Sponsorship of Lions Club Night on the Town Event It is recommended that the City Council take the following actions: 1. Approve the co-sponsorship of the West Covina Lions Club 2015 Night on the Town event on May 20, 2015; and 2. Authorize the City Manager to waive the Temporary Use Permit and Street Banner Permit fees for the West Covina Lions Club Night on the Town event. Motion by Warshaw and seconded by Toma to approve as recommended. Motion carried 4-0. 6 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert FINANCE DEPARTMENT 7) Extend Professional Services Agreement with Government Financial Services It is recommended that the City Council authorize staff to extend the agreement with Government Financial Services (GFS) for accounting services at $120 per hour not to exceed total amount of $70,000. Motion by Warshaw and seconded by Toma to approve. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert HUMAN RESOURCES 8) Adopting a New Memorandum of Understanding (MOU) and Amending Compensation and Benefits for the West Covina Police Management Association It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-9 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A ONE-YEAR MEMORANDUM OF UNDERSTANDING (MOU) FOR THE WEST COVINA POLICE MANAGEMENT ASSOCIATION AND AMENDING COMPENSATION AND BENEFITS FOR THE WEST COVINA POLICE MANAGEMENT ASSOCIATION Motion by Warshaw and seconded by Toma to adopt. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 9) Resolution of the West Covina City Council Separating the Benefits of the City Council from Department Heads It is recommended that the City Council adopt the following resolution, separating City Council benefits to Department Heads: RESOLUTION NO. 2015-11 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, RELATED TO BENEFITS AND 7 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 COMPENSATION FOR CITY COUNCILMEMBERS Motion by Warshaw and seconded by Toma to adopt. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 10) Renewal of General Service Agreement with the County of Los Angeles It is recommended that the City Council adopt the following resolution, renewing the General Services Agreement (GSA) and authorize the City Manager to execute the agreement: RESOLUTION NO. 2015-12 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AUTHORIZING THE RENEWAL OF A CONTRACT WITH THE COUNTY OF LOS ANGELES CONCERNING A GENERAL SERVICES AGREEMENT Motion by Warshaw and seconded by Toma to adopt. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 11) Approval of Contract for West Covina Workers' Compensation Legal Counsel It is recommended that the City Council approve the month-to-month retainer agreement with the law firm of Lewis, Brisbois, Bisgaard, and Smith to provide workers' compensation legal counsel. This item was removed from the consent calendar for separate consideration. Due to a comment by a speaker, Mayor Pro Tern Tomas requested this item be held over in order for staff to address the rational the differential of rates charged on different matters of work. Motion by Toma and seconded by Warshaw to hold over. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 12) Status Report on City of West Covina's Workers' Compensation Program It is recommended that the City Council receive and file this informational report. 8 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 This item was removed from the consent calendar for separate consideration. City Attorney Barlow and staff responded to questions regarding the program operations. Motion by Spence and seconded by Toma to receive and file. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert PUBLIC WORKS 13) Selection of Consultant for the Orangewood Park Soccer Fields Design It is recommended that the City Council take the following actions: 1. Approve a contract with David Volz Design in the amount of $312,151 for the preparation of site design plans and construction documents for Orangewood Park Soccer Field Improvement Project and authorize the City Manager and City Clerk to execute the contract; and 2. Transfer $358,951 from the un-appropriated Park Dedication Fee fund balance (Fund 173) to Project No. PP-06204 (Account No. 173.82.8620.7700), which includes contract amount ($312,151) with 10% contingency ($31,200) and 5% contract administration ($15,600). AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 14) Establish As-Needed Construction Management, Inspection, and Related Services Consultant Shortlist for Support on Various Capital Improvement Program Projects It is recommended that the City Council approve and establish As-Needed Construction Management, Inspection, and Related Services Shortlist that prequalifies Civil Source, Inc. of Irvine, Onward Engineering, Inc. of Anaheim, Pacifica Services, Inc. of Pasadena, RKA Consulting Group of Walnut, and Willdan Engineering, Inc. of Industry, and authorize the Public Works Department to seek proposals from the consultant's shortlist on an "as-needed" basis for a term of three years. This item was removed from the consent calendar by the Interim City Manager at the beginning of the meeting. TREASURER'S REPORT (receive & file) 15) City Treasurer's Report for the Quarter Ended December 31, 2014 It is recommended that the City Council receive and file this report. 9 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert END OF CONSENT CALENDAR HEARINGS PUBLIC HEARINGS 16) Code Amendment No. 13-07 Second Dwelling Units General Exemption The Planning Commission and staff recommend that the City Council introduce the following ordinance: ORDINANCE NO. 2271 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 26 (ZONING) OF THE WEST COVINA MUNICIPAL CODE RELATED TO SECOND DWELLLING UNITS Mayor Sykes stated this hearing was opened on February 3, 2015, public testimony was heard and the hearing was continued in order for staff to make modifications to the ordinance as directed by the Council. Staff reported presented by Planning Director Jeff Anderson. Anderson reviewed the proposed modifications regarding and language to address corner lot situations and answered questions. Motion by Warshaw and seconded by Toma to introduce the ordinance. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: Herfert SUCCESSOR AGENCY The City Council recess the City Council meeting at 9:42 p.m. to convene the Successor Agency meeting. The City Council meeting reconvened at 9:45 p.m. with all Councilmembers present. 10 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 MAYOR/COUNCILMEMBERS REPORTS COUNCILMAN MIKE SPENCE 17) Request from Councilman Mike Spence Requesting Discussion on the Art in Public Places Code It is recommended that the City Council direct staff accordingly. Councilmember Spence stated his opposition to the code as it increases the cost of the development project and enforcement issues. Motion by Spence to repeal the Art in Public Places code section. Motion dies for a lack of second. Motion by Warshaw and seconded by Toma to receive and file the report. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: Herfert 18) Municipal Code Revision Regarding the Selection, Appointment and Removal of the City Manager It is recommended that the City Council instruct the City Manager to work with the City Attorney to update the ordinance for presentation to the Council and possible consideration by the voters of West Covina in November of 2015. Motion by Spence and seconded by Warshaw to direct the City Manager work with the City Attorney to prepare amendment options, including repeal, to the City Manager municipal code section. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert COUNCILMEMBER COREY WARSHAW 19) Review of Current Appointment Process of City Advisory Commissioners It is recommended that the City Council direct staff accordingly. Motion by Warshaw and seconded by Sykes to have staff bring back options to the appointment process of City Advisory Commissioners. Motion carried 4-0. 11 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert AB1234 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.) No reports. CITY COUNCIL REQUESTS FOR REPORTS, STUDIES OR INVESTIGATION (Per City of West Covina Standing Rules 4f - Requests for reports, studies, or investigations that are not readily available must be placed on the City Council/Community Development Commission agenda as items of business and must be approved by a majority of the City Council/Community Development Commission.) MAYOR PRO TEM JAMES TOMA 20) Request from Mayor Pro Tern James Toma Requesting the City Council's Consensus to Instruct City Staff to Prepare a Report Examining Smoking Prohibitions at City Parks and Other Public Facilities It is recommended that the City Council direct staff accordingly. Motion by Toma and seconded by Warshaw to have staff bring back a report as to what other cities have in place as to smoking prohibitions in surrounding cities. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: Herfert CITY COUNCIL COMMENTS Councilmember Warshaw requested to agendize for discussion allowing the volunteer group who is painting the city walls to use the city's equipment and/or vehicle. Councilmember Spence stated he had previously requested to agendize for discussion a process to notify property owners and business owner of ordinances being adopted that will affect their property. Mayor Sykes announce the upcoming charrette regarding the General Plan Update. Planning Director Anderson explained the charrette purpose. 12 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 ADJOURNMENT Motion by Warshaw and seconded by Sykes to adjourn the meeting at 10:19 p.m. Submitted by: Rosalia A. Conde, CMC Assistant City Clerk Fredrick Sykes Mayor 13 Agenda material is available at www.westcovina.org CITY OF WEST COVINA SUCCESSOR AGENCY TUESDAY, FEBRUARY 17 2015, 7:00 PM REGULAR MEETING CITY HALL COUNCIL CHAMBERS 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 MINUTES CALL TO ORDER — Chairman Fredrick Sykes called the meeting to order at 9:42 p.m. ROLL CALL Present: Sykes, Toma, Spence, Warshaw Absent: Herfert CHANGES TO THE AGENDA No changes made. ORAL COMMUNICATIONS No comments made. CONSENT CALENDAR 1) Approval of Minutes (receive & file) November 10, 2014 Special Successor Agency Meeting Minutes December 16, 2014 Special Successor Agency Meeting Minutes February 3, 2015 Regular Successor Agency Meeting Minutes Tuesday February 17, 2015 Motion by Warshaw and seconded by Toma to receive and file. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert 2) Approval and Transmittal of an Administrative Budget for the Successor Agency to the West Covina Redevelopment Agency and a Recognized Obligation Payment Schedule ("ROPS") Pursuant to AB1X 26 for the Period of July 1, 2015 through December 31, 2015 It is recommended that the City Council, acting as the Successor Agency to the West Covina Redevelopment Agency, adopt the following resolution: RESOLUTION NO. 2015-12.5 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ACTING AS SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY, APPROVING AND AUTHORIZING THE TRANSMITTAL OF AN ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY TO THE WEST COVINA REDEVELOPMENT AGENCY AND A RECOGNIZED OBLIGATION PAYMENT SCHEDULE "ROPS" FOR THE PERIOD JULY 1, 2015 THROUGH DECEMBER 31, 2015, PURSUANT TO ASSEMBLY BILL 1X 26 (AB1X 26) Motion by Warshaw and seconded by Toma to adopt. Motion carried 4-0. [Resolution number corrected in minutes as it was misstated on the agenda] AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert SUCCESSOR AGENCY BOARD MEMBER COMMENTS No comments made. ADJOURNMENT Chairman Sykes adjourned the Successor Agency Regular Meeting at 9:45 p.m. Submitted by Rosalia A. Conde, CMC Assistant Agency Secretary Fredrick Sykes Chairman 2 CITY OF WEST COVINA CITY COUNCIL TUESDAY MARCH 03, 2015, 5:45 PM SPECIAL MEETING CITY MANAGER'S CONFERENCE ROOM 1444 W. GARVEY AVENUE WEST COVINA, CALIFORNIA 91790 MINUTES Mayor Sykes called to order the special meeting of the West Covina City Council at 6:06 p.m. in the City Manager's Conference Room at City Hall, 1444 W. Garvey Avenue, West Covina. ROLL CALL Present: Mayor Sykes, Mayor Pro Tern Toma Councilmembers Spence, Warshaw Others Present: Mauk, Barlow, Freeland, Franco, Faulkner, Murray, Juong Young PUBLIC COMMENTS ON ITEMS ON THE AGENDA No comments made. CLOSED SESSION Mayor Sykes commenced the closed session at 6:11 p.m. to discuss the following matter(s): CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code § 54956.9(d)(1) Perez v. City of West Covina Tuesday March 3, 2015 CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Pursuant to Government Code 54956.9(d)(2) One Matter CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code 54957.6 City Negotiators: Mauk, Freeland, Barlow • Employee Organizations - Confidential Employees - Maintenance & Crafts Employees - W.C. Police Officers' Association - W.C. Firefighters' Management Assoc. - W.C. Firefighters' Association, I.A.F.F., Local 3226 - Department Heads ADJOURNMENT Mayor Sykes adjourned the meeting at 6:38 p.m. Submitted by: Rosalia A. Conde, CMC Assistant City Clerk Fredrick Sykes Mayor - General Employees - Mid-Management Employees - W.C. Police Management Association 2 CITY OF WEST COVINA CITY COUNCIL TUESDAY, MARCH 03 2015, 7:00 PM REGULAR MEETING CITY HALL COUNCIL CHAMBERS 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 MINUTES CALL TO ORDER — Mayor Fredrick Sykes called the meeting to order at 7:05 p.m. INVOCATION — Led by Pastor Kelly Dupee, Faith Community Church PLEDGE OF ALLEGIANCE — Led by Councilman Mike Spence ROLL CALL Present: Sykes, Toma, Spence, Warshaw REPORTING OUT FROM CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Pursuant to Government Code .§ 54956.9(d)(1) Perez v. City of West Covina CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Pursuant to Government Code § 54956.9(d)(2) One Matter Tuesday February 17, 2015 CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code 54957.6 City Negotiators: Mauk, Freeland, Barlow • Employee Organizations - Confidential Employees - General Employees - Maintenance & Crafts Employees - Mid-Management Employees - W.C. Police Officers' Association - W.C. Police Management Association - W.C. Firefighters' Management Assoc. - W.C. Firefighters' Association, I.A.F.F., Local 3226 - Department Heads City Attorney Kimberly Barlow stated three items were discussed and there was no reportable action. CHANGES TO THE AGENDA Interim City Manager Mauk stated there were no changes to the agenda. Mr. Mauk also announced the retirement of Councilmember Steve Herfert and thanked him for his many years of service. PRESENTATIONS Mayor Sykes called forward Craig Michael, Edgewood High Schools Academic Decathlon team coach. The team won the LA County Academic Decathlon held on February 7 at USC. Team members and coaches received Certificates of recognition. ORAL COMMUNICATIONS - Five (5) minutes per speaker Eddie Gomez, Vice President of the West Covina Police Officers Association (WCPOA), on behalf of the WCPOA spoke in favor of the a general tax measure and review of alternative revenue generating measures. Shirley Buchanan, West Covina resident, addressed traffic conditions at Merced and Sunset and requested a traffic study and requested a budget study session earlier in the year. John Shewmaker, West Covina resident, spoke on the city's budget and funds in the Castucci Foundation. Dana Sykes, West Covina resident, spoke on graffiti contractors and water pipe leaks on Stella. Carolyn Arndt, West Covina resident, announced upcoming Casino night fundraising night to be held on March 7 to raise funds for the Veteran Memorial project. Juan Reynoso, West Covina resident, addressed the graffiti program and referenced the program as a failure. Trudy Saltmarsh, West Covina resident, addressed concerns with the school district boundaries. 2 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 Lola Finley, West Covina resident, addressed her recent meeting with Public Works Director regarding several issues in her neighborhood and addressed several item listed on the agenda. Jeni Portas, West Covina resident, addressed the campaign financing and her disappointment in the council not addressing independent expenditures while amending the city's campaign financing ordinance. Gary Gileno, West Covina resident, spoke on politics in the city and the concept of incrementalism. Elsie Messman, West Covina resident, and addressed several items listed on the agenda, and commented on the use of the Castucci Foundation funds, Lloyd Johnson, West Covina resident, addressed the success of the General Plan charrette and addressed items listed on the agenda. George Ogden, West Covina resident, addressed the appointment process of commissioners as the right of Councilmembers. Jefferson Deroux, West Covina resident, addressed illegal activities in the city parks and the consequences. Interim City Manager and City Councilmembers responded to various resident concerns. 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 (receive & file) 1) November 18, 2014 Special City Council Meeting Minutes November 18, 2014 Regular City Council Meeting Minutes Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None ORDINANCES FOR ADOPTION 2) An Ordinance Amending Chapter 26 (Zoning) of the West Covina Municipal Code Related to Second Dwelling Units This ordinance was introduced at the West Covina City Council meeting of February 17, 2015. The purpose of this ordinance is to amend the current Municipal Code regulations 3 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 regarding Second Dwelling Units. The current Code allows side by side primary and second dwelling units. The proposed code amendment would only allow second dwelling units to be located behind the primary units. The ordinance will take effect 30 days after its adoption on March 3, 2015. It is recommended that the City Council waive further reading and adopt the following ordinance: ORDINANCE NO. 2271 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CHAPTER 26 (ZONING) OF THE WEST COVINA MUNICIPAL CODE RELATED TO SECOND DWELLING UNITS Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 3-1. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: None APPROVAL OF FINAL MAP 3) Approval of Final Map for Tract Map No. 72320 Location: 520 S. Lark Ellen Avenue Subdivider: K B Home Greater Los Angeles, Inc. It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-10 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING FINAL MAP OF TRACT MAP NO. 72320 LOCATED AT 520 S. LARK ELLEN AVENUE (K B HOME GREATER LOS ANGELES, INC.) This item was removedfrom the consent calendar for separate consideration. Councilman Spence expressed his view that the item could have been approved and continuing the item was not necessary. Motion by Spence and seconded by Toma to approve as recommended. Motion carried 3-1. AYES: NOES: ABSENT: Spence, Toma, Sykes Warshaw None 4 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 TRAFFIC COMMITTEE MEETING MINUTES (accept & file) 4) Traffic Committee Minutes - Meeting of February 17, 2015 I. Request: Jean Barrymore, West Covina Resident That a "Keep Clear" pavement message be installed on eastbound Cameron Avenue at Aspen Village Way. Traffic Committee Recommendation: That a "Keep Clear" pavement message be installed on eastbound Cameron Avenue at Aspen Village Way. II. Request: Nate Sotelo, Options Facilities Director That a 15-minute limit for on-street parking along West Garvey Avenue North adjacent to the Option Head Start entrance be implemented. Traffic Committee Recommendation: That a 15-minute limit for on-street parking along West Garvey Avenue North adjacent to the Option Head Start entrance be implemented. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None COMMUNITY SERVICES DEPARTMENT 5) Policy Granting City Manager Authority to Waive Certain Fees It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-13 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, REPEALING RESOLUTION NO. 2008-01 RELATED TO ASSISTING NON-PROFIT ORGANIZATIONS WITH THE PROMOTION OF EDUCATIONAL, HEALTH, SOCIAL AND CIVIC PROGRAMS AND GRANTING THE CITY MANAGER AUTHORITY TO APPROVE FEE WAIVERS NOT EXCEEING $2,500 Motion by Toma and seconded b Sykes to approve as recommended. Motion carried 4-0. AYES: NOES: ABSENT: Spence, Toma, Warshaw, Sykes None None 5 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 6) Update on 2015 Independence Day Celebration It is recommended that the City Council receive and file this informational report. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 7) 48th Assembly District's Annual Woman of the Year Awards It is recommended that the City Council authorize the City Manager to waive the West Covina Senior Center rental fees of $889 for the 48th Assembly District's Annual Women of the Year Awards on March 28, 2015. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None HUMAN RESOURCES 8) Adopting a New Memorandum of Understanding (MOU) and Amending Compensation and Benefits for the West Covina General, Confidential, Maintenance and Crafts Employee Associations It is recommended that the City Council adopt the following resolutions: 1. RESOLUTION NO. 2015-23 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A ONE-YEAR MEMORANDUM OF UNDERSTANDING (MOU) FOR THE WEST COVINA CONFIDENTIAL EMPLOYEE ASSOCIATION AND AMENDING COMPENSATION AND BENEFITS FOR THE CONFIDENTIAL EMPLOYEE ASSOCIATION 2. RESOLUTION NO. 2015-24 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A ONE-YEAR MEMORANDUM OF UNDERSTANDING (MOU) FOR THE WEST COVINA GENERAL EMPLOYEE ASSOCIATION AND AMENDING COMPENSATION AND BENEFITS FOR THE GENERAL EMPLOYEE ASSOCIATION 3. RESOLUTION NO. 2015-25 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A ONE-YEAR MEMORANDUM OF UNDERSTANDING (MOU) FOR THE WEST COVINA 6 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 MAINTENANCE AND CRAFTS EMPLOYEE ASSOCIATION AND AMENDING COMPENSATION AND BENEFITS FOR THE MAINTENANCE AND CRAFTS EMPLOYEE ASSOCIATION Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 9) Request for Qualifications (RFQ) for Special Legal Counsel Services (Workers' Compensation/General Liability) It is recommended that the City Council instruct City staff to issue the Request for Qualifications (RFQ) for Special Legal Services. This item was removed from the consent calendar for separate consideration. Mayor Pro Tern Toma inquired into how the staff will disburse the RFQ and the evaluation process staff with utilize. Motion by Toma and seconded by Warshaw to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 10) Amend the Professional Services Agreement with Norman A. Traub Associates to Increase the Total Funding Amount of the Agreement for Investigative Services It is recommended that the City Council authorize staff to amend the professional services agreement with Norman A. Traub Associates to increase the not to exceed amount of the agreement to $70,000. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 11) Approval of Contract for West Covina Workers' Compensation Legal Counsel It is recommended that the City Council approve the month-to-month retainer agreement with the law firm of Lewis, Brisbois, Bisgaard, and Smith to provide workers' compensation legal counsel. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. 7 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None PUBLIC WORKS 12) Renewal of the Citywide Lighting and Maintenance District and Landscape Maintenance Districts No.'s 4, 6 and 7 - Ordering of Engineer's Reports It is recommended that the City Council adopt the following resolutions: 1. RESOLUTION NO. 2015-14 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ORDERING THE CITY ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH PROPOSITION 218 AND ARTICLE 4, CHAPTER 1, PART 2, "LANDSCAPING AND LIGHTING ACT OF 1972," BEING DIVISION 15, STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, ORDERING CERTAIN LANDSCAPING AND LIGHTING MAINTENANCE IN THE CITY OF WEST COVINA, CALIFORNIA, FOR THE FISCAL YEAR COMMENCING JULY 1, 2015 - WEST COVINA CITYWIDE LIGHTING AND MAINTENANCE DISTRICT (2015-2016) 2. RESOLUTION NO. 2015-15 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2015-2016 - WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 (2015-2016) 3. RESOLUTION NO. 2015-16 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2015-2016 - WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6(2015-2016) 4. RESOLUTION NO. 2015-17 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2015-2016 - WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7(2015-2016) 8 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 13) Award of Bid for the Repair of the City Hall East Elevator It is recommended that the City Council take the following actions: 1. Accept the lowest responsive bid from Amtech Elevator Services in the amount of $54,010 as submitted on February 10, 2015, and authorize the Public Works Director/City Engineer and City Clerk to execute the contract to repair the East elevator at City Hall; and 2. Establish expenditure Account No. 161.83.8434.7900. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 14) City Electronic Waste Collection and Recycling Services Five Year Agreement It is recommended that the City Council approve a five (5) year agreement with West Coast Recycling Services dba Mission Recycling for Electronic Waste Collection and Recycling Services. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 15) CalRecycle - Local Enforcement Agency Program (LEA)-Appointment of a Hearing Officer It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-26 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, THE APPOINTMENT OF A HEARING OFFICER FOR THE APPEALS ARISING FROM THE LOCAL ENFORCEMENT AGENCY Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. 9 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 16) Establish As-Needed Construction Management, Inspection, and Related Services Consultant Shortlist for Support on Various Capital Improvement Program Projects It is recommended that the City Council take the following actions: 1. Rescind the City Council's action of September 2, 2014, in which the Council approved the shortlisting of five (5) firms due to the inadvertent inclusion of a previously disqualified firm. 2. Approve and establish As-Needed Construction Management, Inspection, and Related Services Shortlist that prequalifies Civil Source, Inc. of Irvine, Onward Engineering, Inc. of Anaheim, Pacifica Services, Inc. of Pasadena, RKA Consulting Group of Walnut, and Willdan Engineering, Inc. of Industry, and authorize the Public Works Department to seek proposals from the consultant's shortlist on an "as-need" basis for a term of three years. This item was removedfrom the consent calendar for separate consideration. Discussion ensued regarding the previous RFP process in selecting the firms and subsequent amendments to agreements without city council approval. Council engaged in lengthy discuss regarding the previous RFP process, the selection firms selected and the inclusion of a disqualified firm to the approved list. Motion by Warshaw and seconded by Spence to approve the utilization of Civil Source, Inc., Onward Engineering, Inc., Pacifica Services, Inc. and RKA Consulting Group in establishing an As-Needed Construction Management, Inspection, and Related Services Shortlist. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 17) Renovations to Fire Station No. 1 It is recommended that the City Council take the following actions: 1. Modify the scope of Capital Improvement Program (CIP) Project No. PP-15303 to include additional work needed at Fire Station No. 1; and 2. Add additional funding from Construction Tax Fund 161 to Account No. 161.83.8502.7530 in the amount of $20,000.Motion by Toma and seconded by Sykes to adopt. Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. 10 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 18) Lot Line Adjustment No. 185 1256, 1258, 1272, and 1278 Inspiration Point It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-19 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT NO. 185 AT 1256, 1258, 1272, AND 1278 INSPIRATION POINT AND DIRECTING THE RECORDATION THEREOF (TAYLOR MORRISON OF CALIFORNIA, LLC) Motion by Toma and seconded by Sykes to approve as recommend. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 19) Lot Line Adjustment No. 186 1275, 1279, and 1280 Inspiration Point It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-20 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT NO. 186 AT 1275, 1279, AND 1280 INSPIRATION POINT AND DIRECTING THE RECORDATION THEREOF (TAYLOR MORRISON OF CALIFORNIA, LLC) Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 20) Lot Line Adjustment No. 187 1203, 1209, and 1213 Inspiration Point It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-21 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT NO. 187 AT 1203, 1209, AND 1213 INSPIRATION POINT AND DIRECTING THE RECORDATION THEREOF (TAYLOR MORRISON OF CALIFORNIA, LLC) 11 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None 21) Lot Line Adjustment No. 188 2805, 2807, and 2809 Majestic Street It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2015-22 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING LOT LINE ADJUSTMENT NO. 188 AT 2805, 2807, AND 2809 MAJESTIC STREET AND DIRECTING THE RECORDATION THEREOF (TAYLOR MORRISON OF CALIFORNIA, LLC) Motion by Toma and seconded by Sykes to approve as recommended. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None END OF CONSENT CALENDAR SUCCESSOR AGENCY The City Council recess the City Council meeting at 8:56 p.m. to convene the Successor Agency meeting. The City Council meeting reconvened at 8:58 p.m. with all Councilmembers present. MAYOR/COUNCILMEMBERS REPORTS COUNCILMEMBER COREY WARSHAW 22) Evaluation of Alternatives on the Appointment Process and Terms of Office for City Commissioners and Number of Positions for each City Commission It is recommended that the City Council direct staff accordingly. Motion by Warshaw and seconded by Sykes to direct staff to prepare an ordinance to amend the commissioner appointment process allowing each Councilmember the opportunity to make individual appointments to the commissions with the terms being equal to the term of the Councilmember; and to add that any commissioner who loses his seat due to change in 12 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 Councilmember will be able to continuing serving until a new appointee has been selected. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None AB1234 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.) No reports 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/Community Development Commission agenda as items of business and must be approved by a majority of the City Council/Community Development Commission.) COUNCILMAN MIKE SPENCE 23) Request by Councilman Mike Spence Requesting Discussion on Revising Notification Requirements It is recommended that the City Council direct staff accordingly. Councilman Spence requested to initiate discussion to develop a system in which business owners and property owners would be notified of any pending ordinances that would affect their property. Motion by Spence and seconded by Toma to direct staff to return with a report to discuss notification requirements. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: None COUNCILMEMBER COREY WARSHAW 24) Request from Councilmember Corey Warshaw Requesting Additional Support for the Volunteer Community Wall Painting Project It is recommended that the City Council direct staff accordingly. Councilmember Warshaw requested the use of a Citify vehicle and the use of other City equipment to assist the Volunteer Community Wall Painting Project. Motion by Warshaw and seconded by Toma to have staff bring back a report for further discussion and options. 13 Agenda material is available at www.westcovina.org Tuesday February 17, 2015 AYES: Spence, Toma, Warshaw NOES: Sykes ABSENT: None COUNCILMAN MIKE SPENCE 25) Request from Councilman Mike Spence Requesting the City Council's Support to Instruct City Staff to Prepare a Staff Report on the Election Versus Appointment of the City Clerk It is recommended that the City Council direct staff accordingly. Councilman Spence stated that he requested this item to be agendize due to a request from the elected City Clerk to have the City Council put forth a ballot measure to eliminate the elected City Clerk position and to change to an appointed City Clerk position. Council discussion ensued and it was the consensus of the Council that such measures do not pass and to keep the position as an elected position. Council took no action. 26) Request from Councilman Mike Spence Requesting the City Council's Support to Instruct City Staff to Prepare a Staff Report on Placing a General Tax Increase on the Ballot It is recommended that the City Council direct staff accordingly. Councilman Spence stated he had agendized this matter due to hearing of a possible general tax measure on the ballot and wanted to discuss with Council whether there is interest. Motion by Spence and seconded by Toma to have staff bring for further discussion. AYES: Toma, Warshaw, Sykes NOES: Spence ABSENT: None ADJOURNMENT Motion by Toma and seconded by Warshaw to adjourn the meeting at 9:45 p.m. Submitted by: Rosalia A. Conde, CMC Assistant City Clerk Fredrick Sykes Mayor 14 Agenda material is available at www.westcovina.org CITY OF WEST COVINA SUCCESSOR AGENCY TUESDAY, MARCH 03 2015, 7:00 PM REGULAR MEETING CITY HALL COUNCIL CHAMBERS 1444 W. GARVEY AVENUE SOUTH WEST COVINA, CALIFORNIA 91790 MINUTES CALL TO ORDER — Chairman Fredrick Sykes called the meeting to order at 8:56 p.m. ROLL CALL Present: Sykes, Toma, Spence, Warshaw CHANGES TO THE AGENDA No changes made. ORAL COMMUNICATIONS No comments made. CONSENT CALENDAR 1) Approval of Minutes (receive & file) November 18, 2014 Special Successor Agency Meeting Minutes November 18, 2014 Regular Successor Agency Meeting Minutes Tuesday March 03, 2015 Motion by Warshaw and seconded by Toma to receive and file. Motion carried 4-0. AYES: Spence, Toma, Warshaw, Sykes NOES: None ABSENT: Herfert SUCCESSOR AGENCY BOARD MEMBER COMMENTS No comments made. ADJOURNMENT Chairman Sykes adjourned the Successor Agency Regular Meeting at 8:58 p.m. Submitted by Rosalia A. Conde, CMC Assistant Agency Secretary Fredrick Sykes Chairman 2 City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 3 FROM: Tom Malik DATE September 15, 2015 Interim City Manager BY: Carl Crown Interim Human Resources Director SUBJECT: GOVERNMENT TORT CLAIM DENIALS RECOMMENDATION: It is recommended that the City Council deny the following Government Tort Claims, and the claimants and/or their respective attorneys be notified. • Jose Valenzuela vs. City of West Covina • Sylvia Moran vs. City of West Covina DISCUSSION: After a review of the investigation in these matters, City staff and the City Claims Administrator, Carl Warren & Company, have determined the City was not liable and recommend denial. FISCAL IMPACT: None Prepared by: Lik.0 Carl Crown Interim Human Resources Director City of West Covina Memorandum AGENDA ITEM NO 4 DATE September 15, 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Christa Buhagiar Finance Director SUBJECT: CITY TREASURER'S REPORT FOR THE MONTH ENDED JULY 31, 2015 RECOMMENDATION: It is recommended the City Council receive and file this report. DISCUSSION: In accordance with Section XVI of the City of West Covina Fiscal Year 2015-16 Statement of Investment Policy, a Treasurer's Report for the month ended July 31, 2015, is hereby submitted to the City Council. For each investment, the report includes the cost or par value, classification of the investment, name of the institution/entity, rate of interest, maturity date and current market value. It also includes cash held by trustees for all bond issues and cash in the various City bank accounts as well as reporting on compliance with the City's Investment Policy and providing a statement of the ability to meet budgeted expenditure needs for the following six months. The City's portfolio previously included the Community Facilities District (CFD) checking and LAIF accounts. The CFD was originally created by the Redevelopment Agency; therefore, the CFD checking, LACIP and bond accounts have now been included in the Successor Agency's Treasurer's Report. This resulted in an adjustment to the beginning balance of the City's Treasurers report of ($6,939,274.55) in cash and investments and ($5,042,650.40) in the bond accounts. After the adjustment, the City's portfolio decreased by $3,374,913.02 from $62,842,769.15 on June 30, 2015, to $59,467,856.13 on July 31, 2015. The decrease is the result of normal operating costs not being offset by a steady income source. This decrease is common because property tax revenue is the largest source of income and the large payments are received in December, April and May of each year. Approximately 5 percent of the portfolio is on deposit in various bank accounts. These funds are available to satisfy obligations as needed. The majority of the portfolio is on deposit in two investment pools. Approximately 27 percent is held in the State of California Local Agency Investment Fund (LAIF) and approximately 45 percent is in the Los Angeles County Investment Pool (LACIP). These funds are completely liquid, as the City can withdraw them at any time. The portfolio also includes two long-term, high-interest investments made in the mid- 1980s which constitute approximately 23 percent of the portfolio. The Bond Detail Report includes Fiscal Agent investments of City and Public Financing Authority cash which is being held to service various issues of bonded debt. Prepared by: Reviewed by: Christa Buhagiar Finance Director APPROVED BY: V7e.e-FL/(2 / Colleen B. Rozatti, Cit urer City of West Covina Treasurer's Report July 31, 2015 Investment Portfolio Book Value Market Value % of Portfolio Bank Accounts and Change Funds 323,375 323,375 0.5% Money Market Fund 2,825,446 2,825,446 4.8% State Local Agency Investment Fund (LAIF) 15,973,924 15,979,930 27.1% Los Angeles County Pool (LACIP) 26,456,556 26,456,556 44.9% Federal Agency Securities 13,888,556 13,280,223 22.6% Total Cash and Investments $ 59,467,857 $ 58,865,530 100.0% Blended Yield 2.356% Benchmarks: LAIF 0.320% LACIP 0.730% 6mo U.S. Treasury 0.140% 2yr U.S. Treasury 0.670% 5yr U.S. Treasury _ 1.540% Restricted Funds with Fiscal Agent Variable Rate Lease Revenue Bonds, 2004 Series A & B Variable Rate Lease Revenue Refunding Bonds, 2005 Series C Lease Revenue Bonds, 2006 Series A & 2006 Series B (Taxable) Variable Rate Demand Lease Revenue Refunding Bonds, 2013A Total Restricted Funds Market Value Book Value 1 201 201 1,564,470 1,564,470 23,433 23,434 1,588,103 $ 1,588,105 I hereby certify that the investments are in compliance with the investment policy adopted by the City Council in July 2015. The investment portfolio provides sufficient cash flow liquidity to meet estimated expenditures for the next six months. This report meets the requirements of Government Code Section 53646. PREPARED BY: Nicole Lugotoff," Accbunttraf Manager SUBMITTED BY: Chri-Sta Buhagiar, Finance Director City of West Covina Investment Portfolio Activity July 31, 2015 June 30, 2015 Deposits Withdrawals July 31, 2015 Checking Accounts Wells Fargo General Checking Wells Fargo General Auto & Liability Wells Fargo Workers Compensation Wells Fargo Payroll Subtotal $ 297,311.00 $ 13,063,956.19 $ 13,087,750.19 $ 273,517.00 33,870.23 34,000.00 23,132.46 44,737.77 - 58,296.38 58,296.38 5,120.15 - - 5,120.15 $ 336,301.38 $ 13,156,252.57 $ 13,169,179.03 $ 323,374.92 Other Investments Wells Fargo Sweep Money Market $ 6,614,789.13 Bank of the West Money Market 599,491.05 Local Agency Investment Fund (LAIF) 15,962,904.04 Los Angeles County Pool (LACIP) 25,440,727.30 Federal National Mortgage Association (FNMA)* 3,688,593.75 Federal Home Loan Mortgage Corporation (FHLMC)1 10,199,962.50 Subtotal $ 62,506,467.77 $ 3,244,554.29 $ 7,639,014.88 $ 2,220,328.54 5,625.91 605,116.96 11,019.90 15,973,923.94 3,015,828.22 2,000,000.00 26,456,555.52 3,688,593.75 10,199,962.50 $ 6,277,028.32 $ 9,639,014.88 $ 59,144,481.21 Total City $ 62,842,769.15 $ 19,433,280.89 $ 22,808,193.91 $ 59,467,856.13 * These two high interest long term investments were made before State Law fruited investments to a maximum five-year term without prior Council approval to purchase. City of West Covina Investment Portfolio Detail July 31, 2015 Maturity Book Market Days to Issuer/Security Date Yield Value Value Maturity Money Market Funds Wells Fargo Sweep N/A 0.01% $ 2,220,329 $ 2,220,329 Bank of the West N/A 0.08% 605,117 605,117 Money Market Fund Subtotal 2,825,446 2,825,446 Local Agency Investment Fund LAIF - City Local Agency Investment Fund Subtotal Los Angeles County Investment Pool LACIP - City Los Angeles County Investment Pool Subtotal N/A 0.32% 15,973,924 15,979,930 15,973,924 15,979,930 N/A 0.73% 26,456,556 26,456,556 26,456,556 26,456,556 Federal Agency Securities Federal National Mortgage Association (FNMA) 12/10/2015 9.99% 3,688,594 Federal Home Loan Mortgage Corporation (FHLMC) 6/1/2016 7.75% 10,199,963 3,107,100 132 10,173,123 306 Federal Agency Securities Subtotal 13,888,556 13,280,223 Portfolio Total and Averages $ 59,144,481 $ 58,542,154 City of West Covina Bond Detail Report July 31, 2015 Bond I Investment I Issuer I Account Maturity Date Rate Market Value* Original Cost 2004 WC PFA Variable Rate Lease Revenue Bonds, Series A & B (Golf Course Project) Cash Wells Fargo Bank Credit Facillty 5/1/2034 1.00 1.00 2005 WC PFA Variable Rate Lease Revenue Refunding Bonds. 2005 Series C (Public Facilities Project) First American Treas Oblig Cl d Corp Trust First American Funds, Inc Lease Payment 9/1/2034 200.65 $ 200.65 200.65 $ 200.65 2006 WC PFA Lease Revenue Bonds, 2006 Series A & 2006 Series B (Taxable) (Big League Dreams Project) First American Treas OblIg FD CL D First American Funds, Inc. 2006A Lse Rev Cap Int A 6/112036 $ 6,638.50 $ 6,638.50 2006B Lse Rev Cap Int B 61112036 2,708.25 2,708.25 2006B Reserve Account 61112036 577,737.00 577,737.00 First American Treas OblIg CI d Corp Trust First American Funds, Inc. 2006A Reserve Account 6/1/2036 977,385 80 977,385.80 $ 1,564,469.55 $ 1,564,469.55 2013 WC PFA Variable Rate Demand Lease Revenue Refunding Bonds, Series 2013A (Community Center Project) First American Treas Oblig FD CL D First American Funds, Inc. 2013 Lease Revenue Fund 8/1/2043 - $ 2013 Cost of Issuance 8/1/2043 23,433.08 23,433.08 Cash 2013 Credit Facility Account 8/1/2043 1.00 $ 23,433.08 $ 23,434.08 *Market valuations have been provided by U.S. Bank $ 1,588,103.28 $ 1,588,105.28 City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 5 FROM: Tom Mauk Interim City Manager DATE September 15, 2015 BY: Chris Freeland Assistant City Manager/Community Development Commission Director SUBJECT: APPOINTMENT OF CITY COMMISSIONER BY COUNCILMAN MIKE SPENCE RECOMMENDATION: It is recommended that the City Council receive and file this informational report. DISCUSSION: On June 2, 2015, the City Council adopted an ordinance, which amended sections of the West Covina Municipal Code related to the appointment, removal, vacancies, and terms of City Commissioners. The new ordinance was effective on July 2, 2015. The new ordinance restructured the process of appointing City Commissioners. Specifically, the ordinance allows for the appointment of City Commissioners by individual appointment by each Couneilmember, rather than by majority vote of the City Council. In addition, the ordinance established the term of office for each commissioner to be consistent with the term of office of the appointing Councilmember. In an effort to promote transparency, Councilman Mike Spence is reporting that he has made the following City Commission Appointment: • Human Resources Commission Ashley Rozatti Prepared By: ChiIFIeeland Assistant City Manager/Community Development Commission Director City of West Covina Memorandum AGENDA ITEM NO 6 DATE September 15. 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Christa Buhagiar Finance Director SUBJECT: APPROVE RENEWAL OF LETTERS OF CREDIT FOR THE SUCCESSOR AGENCY'S 1988 LEASE REVENUE REFUNDING BONDS (THE LAKES PARKING PROJECT) AND THE AUTHORITY'S VARIABLE RATE LEASE REVENUE BONDS 2004 SERIES A AND B (GOLF COURSE PROJECT) RECOMMENDATION: It is recommended that the City Council approve a First Amendment to Reimbursement Agreement for the Successor Agency to the Redevelopment Agency of the City of West Covina's 1988 Lease Revenue Refunding Bonds (The Lakes Parking Project) and a First Amendment to Reimbursement Agreement for the West Covina Public Financing Authority's Variable Rate Lease Revenue Bonds, 2004 Series A and B (Golf Course Project) and authorize the Interim City Manager to execute all necessary documents by adopting the attached resolution. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF TWO AMENDMENTS TO REIMBURSEMENT AGREEMENTS AND THE TAKING OF OTHER CERTAIN ACTIONS IN CONNECTION THEREWITH. DISCUSSION: In 1988, the Redevelopment Agency to the City of West Covina (the "Forner Agency") issued its Redevelopment Agency of the City of West Covina 1988 Lease Revenue Refunding Bonds (The Lakes Public Parking Project) (the "1988 Bonds") to construct two multi-story parking structures. Payment of the 1988 Bonds is secured by the payment of lease payments made by the City of West Covina (the "City") under a lease agreement, dated as of August 1, 1988, by and between the City and the Former Agency. The 1988 Bonds bear interest at a short term variable rate, which resets every 7 days. Owners of such short teim variable rate debt can require the Successor Agency to the Redevelopment Agency of the City of West Covina (the "Successor Agency"), as successor to the Former Agency, to repurchase their 1988 Bonds on 7 days' notice. The funds for such a purchase are provided under a letter of credit, and the Successor Agency's remarketing agent then finds a new buyer to purchase the 1988 Bonds and repay any draw on the letter of credit. The current letter of credit (the "1988 Bonds Letter of Credit") securing the 1988 Bonds is issued by Wells Fargo Bank, National Association (the "LOC Bank") and expires on December 3, 2015. The terms of the 1988 Bonds Letter of Credit are governed by a Reimbursement Agreement by and between the City and the LOC Bank (the "1988 Bonds Reimbursement Agreement"). The LOC Bank is offering to renew and extend the expiration date of the 1988 Bonds Letter of Credit to the maturity date of the 1988 Bonds, which is August 1, 2018. An amendment to the 1988 Bonds Reimbursement Agreement (the "First Amendment to the 1988 Bonds Reimbursement Agreement") is required to complete the extension process. There is no change to the existing letter of credit fees as a result of the execution of the First Amendment to the 1988 Bonds Reimbursement Agreement. In 2004, the West Covina Public Financing Authority (the "Authority") issued its Variable Rate Lease Revenue Bonds, 2004 Series A (Golf Course Project) and its Variable Rate Lease Revenue Bonds, 2004 Series B (Golf Course Project) (collectively, the "2004 Bonds") to provide financing for grading and infrastructure relating to the City's proposed municipal golf course. Payment of the 2004 Bonds is secured by the payment of lease payments made by the City under a lease agreement, dated as of August 1, 2004, by and between the City and the Authority. The 2004 Bonds bear interest at a short term variable rate, which resets every 7 days. Owners of such short term variable rate debt can require the Authority to repurchase their 2004 Bonds on 7 days' notice. The funds for such a purchase are provided under a letter of credit, and the 2004 Authority's remarketing agent then finds a new buyer to purchase the 2004 Bonds and repay any draw on the letter of credit. The current letter of credit (the "2004 Letter of Credit") securing the 2004 Bonds is issued by the LOC Bank and expires on November 29, 2015. The terms of the 2004 Letter of Credit are governed by a Reimbursement Agreement by and between the City and the LOC Bank (the "2004 Bonds Reimbursement Agreement" and, together with the 1988 Bonds Reimbursement Agreement, the "Reimbursement Agreements"). The LOC Bank is offering to renew and extend the expiration date of the 2004 Letter of Credit to May 2017. An amendment to the 2004 Bonds Reimbursement Agreement (the "First Amendment to the 2004 Bonds Reimbursement Agreement") is required to complete the extension process. There is no change to the existing letter of credit fees as a result of the execution of the First Amendment to the 2004 Bonds Reimbursement Agreement. Included in each of the First Amendment to the 1988 Bonds Reimbursement Agreement and the First Amendment to the 2004 Bonds Reimbursement Agreement is a provision that provides that if the City enters into an agreement with another entity to provide credit enhancement for the 1988 Bonds, the 2004 Bonds or any other obligations of the City and such agreement has different or more restrictive covenants, different or additional events of default or greater rights or remedies than either Reimbursement Agreement, then such provisions are automatically made part of the Reimbursement Agreements. As a result, the City could be subject to different covenants, events of default and remedies than were originally agreed to with the LOC Bank, depending on what agreements the City enters into in the future. FISCAL IMPACT: The fees with respect to either the 1988 Letter of Credit or the 2004 Letter of Credit will not be changed by virtue of entering into either amendment. Prepared by: Christa Buhagiar Finance Director ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 1 RESOLUTION NO. 2015-69 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF TWO AMENDMENTS TO REIMBURSEMENT AGREEMENTS AND THE TAKING OF OTHER CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the Redevelopment Agency of the City of West Covina has previously issued its Redevelopment Agency of the City of West Covina 1988 Lease Revenue Refunding Bonds (The Lakes Public Parking Project) (the "1988 Bonds"); and WHEREAS, the Bonds were issued as variable rate obligations and are supported by an irrevocable letter of credit (the "1988 Bonds Letter of Credit") issued pursuant to a Reimbursement Agreement, dated as of December 1, 2010 (the "1988 Bonds Reimbursement Agreement"), by and between Wells Fargo Bank, National Association (the "LOC Bank") and the City of West Covina (the "City"); and WHEREAS, the City now desires to extend the 1988 Bonds Letter of Credit and amend the terms of the 1988 Bonds Reimbursement Agreement pursuant to a First Amendment to Reimbursement Agreement, by and between the City and the LOC Bank (the "First Amendment to 1988 Bonds Reimbursement Agreement"); and WHEREAS, the West Covina Public Financing Authority (the "Authority") has previously issued its West Covina Public Financing Authority Variable Rate Lease Revenue Bonds, 2004 Series A (Golf Course Project) and its Variable Rate Lease Revenue Bonds, 2004 Series B (Golf Course Project) (collectively, the "2004 Bonds"); and WHEREAS, the 2004 Bonds were executed and delivered as variable rate obligations and are supported by a direct pay letter of credit (the "2004 Letter of Credit") that was issued pursuant to a Reimbursement Agreement, dated as of November 1, 2011 (the "2004 Bonds Reimbursement Agreement"), by and between the City and the LOC Bank; and WHEREAS, the City now desires to extend the 2004 Bonds Letter of Credit and amend the terms of the 2004 Bonds Reimbursement Agreement pursuant to a First Amendment to Reimbursement Agreement, by and between the City and the LOC Bank (the "First Amendment to 2004 Bonds Reimbursement Agreement"); and WHEREAS, there have been prepared and submitted to this meeting forms of: (a) First Amendment to 1988 Bonds Reimbursement Agreement; and (b) First Amendment to 2004 Bonds Reimbursement Agreement; WHEREAS, the City Council has reviewed the documentation related to the delivery of the First Amendment to 1988 Bonds Reimbursement Agreement and the First Amendment to 2004 Bonds Reimbursement Agreement, which documentation is on file with the City Clerk of the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Covina (the "City Council") as follows: Section 1. Approval of Recitals. All of the recitals herein contained are true and correct and the City Council of the City (the "City Council") so finds. Section 2. Approval of First Amendment to 1988 Bonds Reimbursement Agreement. The First Amendment to 1988 Bonds Reimbursement Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, is hereby approved. Any one of the Mayor, the Interim City Manager and the City Clerk of the City, and each of them, and any designee of any of them (each, an "Authorized Officer"), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the First Amendment to 1988 Bonds Reimbursement Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 3. First Amendment to 2004 Bonds Reimbursement Agreement. The First Amendment to 2004 Bonds Reimbursement Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, is hereby approved. Any Authorized Officer is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the First Amendment to 2004 Bonds Reimbursement Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 4. Further Authorization. The Authorized Officers are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the execution and delivery of the First Amendment to 1988 Bonds Reimbursement Agreement, the First Amendment to 2004 Bonds Reimbursement Agreement and the transactions contemplated therein and by this Resolution. Section 5. Effective Date. This Resolution shall take effect immediately upon its adoption. Section 6. Certification. The City Clerk shall Certify the adoption of this Resolution. APPROVED AND ADOPTED at a regular meeting held on September 15, 2015. Fredrick Sykes Mayor APPROVED AS TO FORM: ATTEST: Kimberly Hall-Barlow Nickolas S. Lewis City Attorney Secretary I, Nickolas S. Lewis, the Clerk of the City Council of the City of West Covina, do hereby certify that the foregoing Resolution No. 2015-69 was passed and adopted at a regular meeting of said City Council on the 15th day of September 2015, by the following vote of the Council: AYES: NOES: ABSTENTIONS: ABSENT: Nickolas S. Lewis Secretary ATTACHMENT 2 AMENDMENT TO REIMBURSEMENT AGREEMENT This AMENDMENT TO REIMBURSEMENT AGREEMENT (this "Amendment"), is made and entered into as of by and between the CITY OF WEST COVINA, a municipal corporation, duly organized and validly existing under and pursuant to the laws of the State of California (the "Account Party"), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the "Bank"). WITNES SETH WHEREAS, the Account Party and the Bank have previously entered into a Reimbursement Agreement, dated as of December 1, 2010 (the "Agreement"), relating to the Successor Agency to the former West Covina Redevelopment Agency 1988 Lease Revenue Refunding Bonds (The Lakes Public Parking Project); WHEREAS, the Account Party desires to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement); WHEREAS, the Bank is willing to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement) as long as certain amendments are made to the Agreement; and WHEREAS, the Account Party is willing to agree to such amendments in order to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement). NOW, THEREFORE, in consideration of the foregoing, the premises and mutual covenants contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings given thereto in the Agreement. 2. Effectiveness of this Amendment. This Amendment shall become effective as provided herein at the time (the "Amendment Effective Time") on the first date (the "Amendment Effective Date") on which each of the following conditions shall be satisfied or waived by the Bank: (a) Delivery of Amendment. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of this Amendment duly executed and delivered by the Account Party. (b) Resolution. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of a resolution of the Account Party authorizing the execution, delivery and performance of this Amendment, certified by the City Clerk of the Account Party, which certification shall include a statement to the effect that such resolution is in full force and effect on the Amendment Effective Date and has not been amended. (c) Incumbency. Receipt by the Bank, on or prior to the Amendment Effective Date, of a certificate of the Account Party certifying the names and true signatures of the officers of the Account Party authorized to sign this Amendment and the other documents to be delivered by the Account Party hereunder. (d) Representations and Covenants of the Account Party; No Defaults. The following statements shall be true and correct on and as of the Amendment Effective Date, and the Bank shall have received a certificate signed by an authorized officer of the Account Party, dated the Amendment Effective Date, stating that: (i) The representations of the Account Party contained in Section 6 of the Agreement are true and correct in all material respects on and as of the Amendment Effective Date as though made on and as of such date. (i) The representations of the Account Party contained in Section 4 of this Amendment are true and correct in all respects on and as of the Amendment Effective Date as though made on and as of such date. The Account Party has performed or complied with all of its obligations, agreements and covenants to be performed or complied with by it pursuant to the Agreement on or prior to the Amendment Effective Date. (iii) After giving effect to the execution and delivery of this Amendment by the Account Party, there exists no Default or Event of Default. (e) Fees, Costs and Expenses. The Bank shall have received payment of all fees, costs and expenses due under the Agreement that are to be paid on or prior to the Amendment Effective Date. (f) No Material Adverse Change. As of the Amendment Effective Date, the Bank, in its sole determination, shall be satisfied that (i) since June 30, 2014, no material adverse change in the financial condition, business, assets, liabilities or prospects of the Account Party has occurred, and (ii) no law, rule or regulation shall have been enacted, amended, suspended or repealed that would result in a material adverse change of the type described in clause (i). 2. Amendments. At the Amendment Effective Time: (a) The following defined terms set forth in Section 1.01 of the Agreement shall be amended and restated to read as follows: "Business Day" means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or any other day on which commercial banks in California are authorized or required by law to close and (b) with respect to all determinations of LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day. As used herein, "London Banking Day" means any day on which dealings in U.S. dollar deposits are conducted by and between banks in the London interbank Eurodollar market. 2 "LIBOR" means a rate per annum determined by the Bank pursuant to the following formula: LIBOR = Base LIBOR 1.00 - Eurodollar Reserve Percentage Notwithstanding the foregoing, if LIBOR shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. As used herein, "Base LIBOR" means, as of any date of determination, the rate of interest per annum determined on the basis of the rate for deposits in U.S. dollars for an interest period equal to one month (commencing on the date of determination of such interest rate) which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day. If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page) then "Base LIBOR" shall be determined by the Bank to be the arithmetic average of the rate per annum at which deposits in U.S. dollars would be offered by first class banks in the London interbank market to the Bank at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination. Each calculation by the Bank of Base LIBOR shall be conclusive and binding for all purposes, absent manifest error. AS used herein, "Eurodollar Reserve Percentage" means, for any day, the percentage which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. (b) The following defined terms shall be added to Section 1.01 of the Agreement and shall be inserted in alphabetical order: "Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to the City from time to time concerning or relating to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder. "Bank Agreement" means any credit agreement, liquidity agreement, standby bond purchase agreement, reimbursement agreement, direct purchase agreement (such as a continuing covenant agreement or supplemental bondholder's agreement), bond purchase agreement, or other agreement or instrument (or any amendment, supplement or other modification thereof) under which, directly or indirectly, any Person or Persons undertake(s) to make payment of or provide funds to make, or to purchase or provide credit enhancement for bonds, notes or other obligations of the City. 3 "Change in Law" means the occurrence, after the Date of Issuance, of any of the following: (a) the adoption or taking effect of any Law, including, without limitation Risk Based Capital Guidelines, (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, ruling, guideline, regulation or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd Frank Wall Street Reform and Consumer Protection Act and all requests, rules, ruling, guidelines, regulations or directives thereunder or issued in connection therewith and (ii) all requests, rules, rulings, guidelines, regulations or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States of America or foreign regulatory authorities shall in each case be deemed to be a "Change in Law," regardless of the date enacted, adopted or issued. "Excluded Taxes" means, with respect to the Bank or any Participant, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which the Bank or such Participant is organized or in which its principal office is located, and (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by the State. "Governmental Authority" means the government of the United States of America or any other nation or any political subdivision thereof or any governmental or quasi- governmental entity, including any court, depai Intent, commission, board, bureau, agency, administration, central bank, service, district or other instrumentality of any governmental entity or other entity exercising executive, legislative, judicial, taxing, regulatory, fiscal, monetary or administrative powers or functions of or pertaining to government (including any supra national bodies such as the European Union or European Central Bank), or any arbitrator, mediator or other Person with authority to bind a party at law. "Indemnified Taxes" means Taxes other than Excluded Taxes. "Law" means any treaty or any federal, regional, state and local law, statute, rule, ordinance, regulation, code, license, authorization, decision, injunction, interpretation, order or decree of any court or other Governmental Authority. "OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control. "PATRIOT Act" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). "Risk Based Capital Guidelines" means (a) the risk based capital guidelines in effect in the United States of America, including transition rules, and (b) the corresponding capital regulations promulgated by regulatory authorities outside the 4 United States of America including transition rules, and any amendment to such regulations. "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC), the European Union, Her Majesty's Treasury, or other relevant sanctions authority. "Sanctioned Country" means at any time, a country or territory which is itself the subject or target of any Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria). "Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions- related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty's Treasury, or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) and (b). "Taxes" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, fines, additions to tax or penalties applicable thereto. (c) Section 2.07of the Agreement shall be amended by deleting subsections (c) and (d) thereof. (d) Section 2.09 of the Agreement shall be amended by adding the following to the end of said Section: Any and all payments by or on account of any obligation of the City under any Related Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of the City) requires the deduction or withholding of any Tax from any such payment by the City, then the City shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the City shall be increased as necessary so that, after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section), the Bank (or Participant) receives an amount equal to the sum it would have received had no such deduction or withholding been made. The obligations of the City set forth in this Section 2.09 shall survive the termination of this Agreement. (e) Article II of the Agreement shall be amended by adding the following Section after Section 2.13 and the table of contents shall be amended to reflect the addition of the new Section: 5 SECTION 2.13. Increased Costs; Capital Adequacy. (a) If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, the Bank (except any reserve requirement reflected in the determination of LIBOR); (ii) subject the Bank to any Taxes (other than Indemnified Taxes) on its loans, loan principal, letters of credit, commitments or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or (iii) impose on the Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or the Letter of Credit or participation therein; and the result of any of the foregoing shall be to increase the cost to the Bank of making, continuing or maintaining any Tender Advances (or of maintaining its obligation to make any such Tender Advances), or to increase the cost to the Bank of issuing or maintaining the Letter of Credit, or to reduce the amount of any sum received or receivable by the Bank hereunder (whether of principal, interest or any other amount) then, upon written request of the Bank, the City shall promptly pay to the Bank such additional amount or amounts as will compensate the Bank for such additional costs incurred or reduction suffered. (b) If the Bank determines that any Change in Law affecting the Bank or any lending office of the Bank or the Bank's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on the Bank's capital or on the capital of the Bank's holding company, if any, as a consequence of this Agreement, the commitment to make available Tender Advances or the issuance and maintenance of the Letter of Credit, to a level below that which the Bank or the Bank's holding company could have achieved but for such Change in Law (taking into consideration the Bank's policies and the policies of the Bank's holding company with respect to capital adequacy and liquidity), then from time to time, upon written request of the Bank, the City shall promptly pay to the Bank such additional amount or amounts as will compensate the Bank or the Bank's holding company for any such reduction suffered. (c) A certificate of the Bank setting forth the amount or amounts necessary to compensate the Bank or the Bank's holding company, as the case may be, as specified in this Section 2.13 and delivered to the City, shall be conclusive absent manifest error. The City shall pay the Bank the amount shown as due on any such certificate within fifteen (15) days after receipt thereof. (d) The obligations of the City set forth in this Section 2.13 shall survive the termination of this Agreement. 6 (f) Section 4.02 of the Agreement shall be amended by adding the following subsection after subsection 4.02(1) and the table of contents shall be amended to reflect the addition of the new Section: (1) Anti-Corruption Laws and Sanctions. None of the City or, to the knowledge of the City, any of its council members, officers or employees or any agent or representative of City that will act in any capacity in connection with or benefit from the Letter of Credit or this Agreement, (i) is a Sanctioned Person or currently the subject or target of any Sanctions or (ii) has taken any action, directly or indirectly, that would result in a violation by such Persons of any Anti-Corruption Laws. (g) Section 7 of the Agreement shall be amended by adding the following subsection after subsection 7(m): (n) Anti-Corruption Laws and Sanctions. The City will maintain in effect and enforce policies and procedures designed to ensure compliance by the City, its council members, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. The City shall not permit the proceeds of any drawing under the Letter of Credit to be used (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. (h) Section 8.16 of the Agreement shall be amended and restated in its entirety to read as follows and the table of contents shall be amended to reflect the new caption: SECTION 8.16. GOVERNING LAW; JURISDICTION; ETC. (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. (b) SUBMISSION TO JURISDICTION. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA SITTING IN LOS ANGELES COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER RELATED DOCUMENT TO WHICH EACH IS A PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, IN SUCH FEDERAL COURT. 7 EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER RELATED DOCUMENT SHALL AFFECT ANY RIGHT THAT THE BANK MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER RELATED DOCUMENT AGAINST THE CITY OR ANY OF ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. (c) WAIVER OF VENUE. THE CITY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY RELATED LOAN DOCUMENT IN ANY COURT REFERRED TO IN SUBSECTION (B) OF THIS SECTION 8.16. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (d) SERVICE OF PROCESS. THE CITY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.03. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAWS. (e) WAIVER OF RIGHT TO JURY TRIAL., JUDICIAL REFERENCE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM. IF AND TO THE EXTENT THAT THE FOREGOING WAIVER OF JURY TRIAL IS UNENFORCEABLE FOR ANY REASON IN SUCH FORUM, EACH OF THE PARTIES HERETO HEREBY CONSENTS TO THE ADJUDICATION OF ALL CLAIMS PURSUANT TO JUDICIAL REFERENCE AS PROVIDED IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, AND THE JUDICIAL REFEREE SHALL BE EMPOWERED TO HEAR AND DETERMINE ALL ISSUES IN SUCH REFERENCE, WHETHER FACT OR LAW. IT IS HEREBY ACKNOWLEDGED THAT THE WAIVER OF A JURY TRIAL TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND THE CONSENT TO JUDICIAL REFERENCE IS A MATERIAL INDUCEMENT FOR THE PARTIES TO EXECUTED AND DELIVER THIS AGREEMENT, EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER AND CONSENT HAS BEEN KNOWINGLY AND VOLUNTARILY MADE FOLLOWING CONSULTATION WITH ITS RESPECTIVE LEGAL COUNSEL. 8 (i) Article VIII of the Agreement shall be amended by adding the following Sections after Section 8.18 of the Agreement and the table of contents shall be amended to reflect the addition of the new Sections: SECTION 8.19. Other Agreements. In the event that the City shall, directly or indirectly, enter into or otherwise consent to any Bank Agreement, or suffer to exist any Bank Agreement, which provides a Person with different or more restrictive covenants, different or additional events of default and/or greater rights and remedies than are provided to the Bank in this Agreement, the City shall provide the Bank with a copy of each such Bank Agreement and such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies shall automatically be deemed to be incorporated into this Agreement and the Bank shall have the benefits of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies as if specifically set forth herein. The City shall promptly enter into an amendment to this Agreement to include different or more restrictive covenants, different or additional events of default and/or greater rights and remedies; provided that the Bank shall have and maintain the benefit of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies even if the City fails to provide such amendment. SECTION 8.20. Assignment For Collateral. The Bank may assign and pledge, without the consent of the City, all or any portion of the City's obligations to the Bank under this Agreement and the other Related Documents (including Bank Bonds) owing to it to any Federal Reserve Bank or the United States Treasury as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any Operating Circular issued by such Federal Reserve Bank, provided that any payment in respect of such assigned obligations made by the City to the Bank in accordance with the terms of this Agreement shall satisfy the City's obligations hereunder and under the other Related Documents in respect of such assigned obligation to the extent of such payment. No such assignment shall release the Bank from its obligations hereunder or under the Letter of Credit. SECTION 8.21. USA PATRIOT Act. The Bank hereby notifies the City that pursuant to the requirements of the PATRIOT Act, the Bank is required to obtain, verify and record information that identifies the City, which information includes the name and address of the City and other information that will allow the Bank to identify the City in accordance with the PATRIOT Act. SECTION 8.22. No Advisory or Fiduciary Relationship. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Related Document), the City acknowledges and agrees that: (a) (i) the services regarding this Agreement provided by the Bank and any Affiliate thereof are arm's-length commercial transactions between the City, on the one hand, and the Bank and its Affiliates, on the other hand, (ii) the City has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) the City is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Related Documents; (b) (i) the Bank and its Affiliates each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be, acting as an advisor, agent or fiduciary for the City and (ii) neither the Bank nor any of its Affiliates has any obligation to the City with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Related Documents; and (c) the Bank and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the City, and neither the Bank nor any of its Affiliates has any obligation to disclose any of such interests to the City. To the fullest extent permitted by law, the City hereby waives and releases any claims that it may have against the Bank or any of its Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transactions contemplated hereby. 3. Amendment of the Letter of Credit. Promptly following the Amendment Effective Time, the Bank shall execute and cause to be delivered to the Trustee a certificate in the form attached hereto as Exhibit A extending the Stated Termination Date of the Letter of Credit. 4. Representations and Warranties. (a) The Account Party is a municipal corporation duly organized, validly existing and in good standing under the Constitution and laws of the State of California. (b) The Account Party has the power and authority to execute, deliver and perform this Amendment. (c) The Account Party has taken all necessary action to authorize this Amendment, and to execute, deliver and perform its obligations under this Amendment in accordance with its terms. (d) This Amendment has been duly executed and delivered by the Account Party, and when executed and delivered by the Bank will be, a legal, valid and binding obligation of the Account Party in accordance with its terms, except as such enforceability may be limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). (e) The execution, delivery and performance of this Amendment by the Account Party in accordance with its terms does not and will not (i) contravene any organizational documents of the Account Party, (ii) require any consent or approval of any person other than those which have been obtained (and not revoked) prior to the Amendment Effective Time, (iii) violate any laws, rules or regulations (including, without limitation, Regulations T, U or X of the Federal Reserve Bank, or any successor regulations), (iv) conflict with, result in a breach of or constitute a default under any contract to which the Account Party is a party or by which it or any of its property may be bound or (v) result in or require the creation or imposition of any lien upon or with respect to any property now owned or hereafter acquired by the Account Party except such liens, if any, expressly created by any Related Document. 10 (f) There is no action, suit or proceeding, at law or in equity, or before any court, public board, public body or arbitrator pending (or to the knowledge of the Account Party, threatened), against the Account Party or any officers of the Account Party in their respective capacities as such (i) to restrain or enjoin the execution and delivery by the Account Party of this Amendment, (ii) in any manner questioning the authority of the Account Party to execute, deliver and perform this Amendment or the other Related Documents to which it is a party, or (iii) questioning the validity or enforceability of this Amendment or the other Related Documents to which it is a party. 5. Miscellaneous. (a) Except as expressly modified by this Amendment, the Agreement shall continue to be and remain in full force and effect in accordance with its terms. (b) This Amendment may be executed in any number of counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument. (c) This Amendment may be executed by facsimile signature and each such signature shall be treated in all respects as having the same effect as an original signature. (d) THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT UNDER, AND SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CHOICE OF LAW RULES. (e) The Account Party agrees to pay the fees and expenses of counsel to the Bank incurred in connection with the preparation, negotiation, execution and delivery of this Amendment and the documents described herein no later than ten (10) days after the delivery of an invoice therefor. [Remainder ofpage intentionally left blank] 11 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first above written. CITY OF WEST COVINA By: Name: Title: Approved as to Form: Name: Title: -Signature Page- Amendment to Reimbursement Agreement WELLS FARGO BANK, NATIONAL ASSOCIATION By: Name: Title: -Signature Page- Amendment to Reimbursement Agreement EXHIBIT A [Attach Form of Letter of Credit Extension Notice] Exhibit A to Amendment to Reimbursement Agreement ATTACHMENT 3 AMENDMENT TO REIMBURSEMENT AGREEMENT This AMENDMENT TO REIMBURSEMENT AGREEMENT (this "Amendment"), is made and entered into as of by and between the CITY OF WEST COVINA, a municipal corporation, duly organized and validly existing under and pursuant to the laws of the State of California (the "Account Party"), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the "Bank"). WITNESSETH WHEREAS, the Account Party and the Bank have previously entered into a Reimbursement Agreement, dated as of November 1, 2011 (the "Agreement"), relating to the West Covina Public Financing Authority Variable Rate Lease Revenue Bonds, 2004 Series A and 2004 Series B (Golf Course Project); WHEREAS, the Account Party desires to extend the Expiration Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement); WHEREAS, the Bank is willing to extend the Expiration Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement) as long as certain amendments are made to the Agreement; and WHEREAS, the Account Party is willing to agree to such amendments in order to extend the Expiration Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement). NOW, THEREFORE, in consideration of the foregoing, the premises and mutual covenants contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings given thereto in the Agreement. 2. Effectiveness of this Amendment. This Amendment shall become effective as provided herein at the time (the "Amendment Effective Time") on the first date (the "Amendment Effective Date") on which each of the following conditions shall be satisfied or waived by the Bank: (a) Delivery of Amendment. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of this Amendment duly executed and delivered by the Account Party. (b) Resolution. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of a resolution of the Account Party authorizing the execution, delivery and performance of this Amendment, certified by the City Clerk of the Account Party, which certification shall include a statement to the effect that such resolution is in full force and effect on the Amendment Effective Date and has not been amended. (c) Incumbency. Receipt by the Bank, on or prior to the Amendment Effective Date, of a certificate of the Account Party certifying the names and true signatures of the officers of the Account Party authorized to sign this Amendment and the other documents to be delivered by the Account Party hereunder. (d) Representations and Covenants of the Account Party; No Defaults. The following statements shall be true and correct on and as of the Amendment Effective Date, and the Bank shall have received a certificate signed by an authorized officer of the Account Party, dated the Amendment Effective Date, stating that: (i) The representations of the Account Party contained in Section 6 of the Agreement are true and correct in all material respects on and as of the Amendment Effective Date as though made on and as of such date. (i) The representations of the Account Party contained in Section 4 of this Amendment are true and correct in all respects on and as of the Amendment Effective Date as though made on and as of such date. (ii) The Account Party has performed or complied with all of its obligations, agreements and covenants to be performed or complied with by it pursuant to the Agreement on or prior to the Amendment Effective Date. (iii) After giving effect to the execution and delivery of this Amendment by the Account Party, there exists no Default or Event of Default. (e) Fees, Costs and Expenses. The Bank shall have received payment of all fees, costs and expenses due under the Agreement that are to be paid on or prior to the Amendment Effective Date. (0 No Material Adverse Change. As of the Amendment Effective Date, the Bank, in its sole determination, shall be satisfied that (i) since June 30, 2014, no material adverse change in the financial condition, business, assets, liabilities or prospects of the Account Party has occurred, and (ii) no law, rule or regulation shall have been enacted, amended, suspended or repealed that would result in a material adverse change of the type described in clause (i). 2. Amendments. At the Amendment Effective Time: (a) Section 2 of the Agreement shall be amended by adding the following subsection after subsection 2(h): (i) Manner of Payment;_Taxes. Each payment by the City to the Bank under this Agreement or under the Fee Letter shall be made not later than 2:00 p.m. on the date specified for payment under this Agreement or the Fee Letter to the Bank at the account designated from time to time by the Bank in writing as its payment account in U.S. dollars, in immediately available funds and shall be made without any set off, counterclaim or deduction whatsoever. Any payment received on a Business Day after 2:00 p.m. shall be deemed to have been made on the next succeeding Business Day. Any and all payments by or on account of any obligation of the City under any Related 2 Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of the City) requires the deduction or withholding of any Tax from any such payment by the City, then the City shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the City shall be increased as necessary so that, after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section), the Bank (or Participant) receives an amount equal to the sum it would have received had no such deduction or withholding been made. The obligations of the City set forth in this subsection 2(i) shall survive the teimination of this Agreement. (b) Section 6 of the Agreement shall be amended by adding the following subsection after subsection 6(k): Anti-Corruption Laws and Sanctions. None of the City or, to the knowledge of the City, any of its council members, officers or employees or any agent or representative of City that will act in any capacity in connection with or benefit from the Letter of Credit or this Agreement, (i) is a Sanctioned Person or currently the subject or target of any Sanctions or (ii) has taken any action, directly or indirectly, that would result in a violation by such Persons of any Anti-Corruption Laws. (c) Section 7 of the Agreement shall be amended by adding the following subsection after subsection 7(m): (n) Anti-Corruption Laws and Sanctions. The City will maintain in effect and enforce policies and procedures designed to ensure compliance by the City, its council members, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. The City shall not permit the proceeds of any drawing under the Letter of Credit to be used (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. (d) The following defined terms set forth in Section 17 of the Agreement shall be amended and restated to read as follows: "Business Day" means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or any other day on which commercial banks in California are authorized or required by law to close and (b) with respect to all determinations of LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day. As used herein, "London Banking Day" means any day on which dealings in U.S. dollar deposits are conducted by and between banks in the London interbank Eurodollar market. 3 "LIBOR" means a rate per annum determined by the Bank pursuant to the following formula: LIBOR = Base LIBOR 1.00 - Eurodollar Reserve Percentage Notwithstanding the foregoing, if LIBOR shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. As used herein, "Base LIBOR" means, as of any date of determination, the rate of interest per annum determined on the basis of the rate for deposits in U.S. dollars for an interest period equal to one month (commencing on the date of determination of such interest rate) which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day. If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page) then "Base LIBOR" shall be determined by the Bank to be the arithmetic average of the rate per annum at which deposits in U.S. dollars would be offered by first class banks in the London interbank market to the Bank at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination. Each calculation by the Bank of Base LIBOR shall be conclusive and binding for all purposes, absent manifest error. AS used herein, "Eurodollar Reserve Percentage" means, for any day, the percentage which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. "Related Documents" means this Agreement, the Fee Letter, the Letter of Credit, the Bonds, the Indenture, the Lease Agreement, the Remarketing Agreement, [the Amended Rate and Method]l , and any exhibits, schedules, instruments or agreements relating thereto, as the same may be amended, modified or supplemented in accordance with their terms and the terms hereof. (e) The following defined terms shall be added to Section 17 of the Agreement and shall be inserted in alphabetical order: "Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to the City from time to time concerning or relating to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder. I Where is this document defined? 4 "Bank Agreement" means any credit agreement, liquidity agreement, standby bond purchase agreement, reimbursement agreement, direct purchase agreement (such as a continuing covenant agreement or supplemental bondholder's agreement), bond purchase agreement, or other agreement or instrument (or any amendment, supplement or other modification thereof) under which, directly or indirectly, any Person or Persons undertake(s) to make payment of or provide funds to make, or to purchase or provide credit enhancement for bonds, notes or other obligations of the City. "Change in Law" means the occurrence, after the Date of Issuance, of any of the following: (a) the adoption or taking effect of any Law, including, without limitation Risk Based Capital Guidelines, (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, ruling, guideline, regulation or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd Frank Wall Street Reform and Consumer Protection Act and all requests, rules, ruling, guidelines, regulations or directives thereunder or issued in connection therewith and (ii) all requests, rules, rulings, guidelines, regulations or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States of America or foreign regulatory authorities shall in each case be deemed to be a "Change in Law," regardless of the date enacted, adopted or issued. "Excluded Taxes" means, with respect to the Bank or any Participant, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which the Bank or such Participant is organized or in which its principal office is located, and (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by the State. "Governmental Authority" means the government of the United States of America or any other nation or any political subdivision thereof or any governmental or quasi governmental entity, including any court, department, commission, board, bureau, agency, administration, central bank, service, district or other instrumentality of any governmental entity or other entity exercising executive, legislative, judicial, taxing, regulatory, fiscal, monetary or administrative powers or functions of or pertaining to government (including any supra national bodies such as the European Union or European Central Bank), or any arbitrator, mediator or other Person with authority to bind a party at law. "Indemnified Taxes" means Taxes other than Excluded Taxes. "Law" means any treaty or any federal, regional, state and local law, statute, rule, ordinance, regulation, code, license, authorization, decision, injunction, interpretation, order or decree of any court or other Governmental Authority. 5 "OFAC" means the U.S. Depar tment of the Treasury's Office of Foreign Assets Control. "Participant" has the meaning set forth in Section 32 hereof. "PATRIOT Act" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). "Risk Based Capital Guidelines" means (a) the risk based capital guidelines in effect in the United States of America, including transition rules, and (b) the corresponding capital regulations promulgated by regulatory authorities outside the United States of America including transition rules, and any amendment to such regulations. "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC), the European Union, Her Majesty's Treasury, or other relevant sanctions authority. "Sanctioned Country" means at any time, a country or territory which is itself the subject or target of any Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria). "Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions- related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty's Treasury, or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) and (b). "Taxes" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, fines, additions to tax or penalties applicable thereto. Subsection 18(b) of the Agreement shall be amended and restated in its entirety to read as follows: (b) Increased Costs; Capital Adequacy. (i) If any Change in Law shall: (A) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, the Bank (except any reserve requirement reflected in the determination of LIBOR); 6 (B) subject the Bank to any Taxes (other than Indemnified Taxes) on its loans, loan principal, letters of credit, commitments or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or (C) impose on the Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or the Letter of Credit or participation therein; and the result of any of the foregoing shall be to increase the cost to the Bank of making, continuing or maintaining any Tender Reimbursement Obligation (or of maintaining its obligation to make any such Tender Reimbursement Obligation), or to increase the cost to the Bank of issuing or maintaining the Letter of Credit, or to reduce the amount of any sum received or receivable by the Bank hereunder or under the Fee Letter (whether of principal, interest or any other amount) then, upon written request of the Bank, the City shall promptly pay to the Bank such additional amount or amounts as will compensate the Bank for such additional costs incurred or reduction suffered. (ii) If the Bank determines that any Change in Law affecting the Bank or any lending office of the Bank or the Bank's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on the Bank's capital or on the capital of the Bank's holding company, if any, as a consequence of this Agreement, the commitment to make available Tender Reimbursement Obligations or the issuance and maintenance of the Letter of Credit, to a level below that which the Bank or the Bank's holding company could have achieved but for such Change in Law (taking into consideration the Bank's policies and the policies of the Bank's holding company with respect to capital adequacy and liquidity), then from time to time, upon written request of the Bank, the City shall promptly pay to the Bank such additional amount or amounts as will compensate the Bank or the Bank's holding company for any such reduction suffered. (iii) A certificate of the Bank setting forth the amount or amounts necessary to compensate the Bank or the Bank's holding company, as the case may be, as specified in subsection (b) and delivered to the City, shall be conclusive absent manifest error. The City shall pay the Bank the amount shown as due on any such certificate within ten (10) days after receipt thereof. (iv) The obligations of the City set forth in this Section 18 shall survive the termination of this Agreement. (g) The Agreement shall be amended by adding the following Sections after Section 31 of the Agreement: Section 32. Other Agreements. In the event that the City shall, directly or indirectly, enter into or otherwise consent to any Bank Agreement, or suffer to exist any 7 Bank Agreement, which provides a Person with different or more restrictive covenants, different or additional events of default and/or greater rights and remedies than are provided to the Bank in this Agreement, the City shall provide the Bank with a copy of each such Bank Agreement and such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies shall automatically be deemed to be incorporated into this Agreement and the Bank shall have the benefits of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies as if specifically set forth herein. The City shall promptly enter into an amendment to this Agreement to include different or more restrictive covenants, different or additional events of default and/or greater rights and remedies; provided that the Bank shall have and maintain the benefit of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies even if the City fails to provide such amendment. Section 33. Participations; Assignment For Collateral. The Bank may at any time, without the consent of, or notice to, the City or the Trustee, sell participations to any Person (other than a natural Person or the City) (each, a "Participant") in all or a portion of the amount available to be drawn under the Letter of Credit, unreimbursed drawings owing to the Bank (including Tender Advances), the Bank's right to receive payments from the City pursuant to this Agreement or in respect of Bank Bonds held by or for the account of the Bank and to receive amounts payable with respect to such Bank Bonds; provided that (i) the Bank's obligations under this Agreement shall remain unchanged, (ii) the Bank shall remain solely responsible to the City for the performance of such obligations and (iii) the City and the Trustee shall continue to deal solely and directly with the Bank in connection with such Bank's rights and obligations under this Agreement and the Letter of Credit. Each Participant shall be entitled to the benefits of Sections 2(i), 13 and 18 to the same extent as if it were the Bank; provided that such Participant shall not be entitled to receive any greater payment under Sections 2.2(i), 13 or 18, with respect to any participation, than the Bank would have been entitled to receive. The Bank may assign and pledge, without the consent of the City, all or any portion of the City's obligations to the Bank under this Agreement and the other Related Documents (including Bank Bonds) owing to it to any Federal Reserve Bank or the United States Treasury as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any Operating Circular issued by such Federal Reserve Bank, provided that any payment in respect of such assigned obligations made by the City to the Bank in accordance with the terms of this Agreement shall satisfy the City's obligations hereunder and under the other Related Documents in respect of such assigned obligation to the extent of such payment. No such assignment shall release the Bank from its obligations hereunder or under the Letter of Credit. Section 34. USA PATRIOT Act. The Bank hereby notifies the City that pursuant to the requirements of the PATRIOT Act, the Bank is required to obtain, verify and record information that identifies the City, which information includes the name and address of the City and other information that will allow the Bank to identify the City in accordance with the PATRIOT Act. 8 Section 35. No Advisory or Fiduciary Relationship. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Related Document), the City acknowledges and agrees that: (a) (i) the services regarding this Agreement provided by the Bank and any Affiliate thereof are arm's-length commercial transactions between the City, on the one hand, and the Bank and its Affiliates, on the other hand, (ii) the City has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) the City is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Related Documents; (b) (i) the Bank and its Affiliates each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be, acting as an advisor, agent or fiduciary for the City and (ii) neither the Bank nor any of its Affiliates has any obligation to the City with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Related Documents; and (c) the Bank and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the City, and neither the Bank nor any of its Affiliates has any obligation to disclose any of such interests to the City. To the fullest extent permitted by law, the City hereby waives and releases any claims that it may have against the Bank or any of its Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transactions contemplated hereby. 3. Amendment of the Letter of Credit. Promptly following the Amendment Effective Time, the Bank shall execute and cause to be delivered to the Trustee a certificate in the form attached hereto as Exhibit A extending the Expiration Date of the Letter of Credit. 4. Representations and Warranties. (a) The Account Party is a municipal corporation duly organized, validly existing and in good standing under the Constitution and laws of the State of California. (b) The Account Party has the power and authority to execute, deliver and perform this Amendment. (c) The Account Party has taken all necessary action to authorize this Amendment, and to execute, deliver and perform its obligations under this Amendment in accordance with its terms. (d) This Amendment has been duly executed and delivered by the Account Party, and when executed and delivered by the Bank will be, a legal, valid and binding obligation of the Account Party in accordance with its terms, except as such enforceability may be limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The execution, delivery and performance of this Amendment by the Account Party in accordance with its terms does not and will not (i) contravene any 9 organizational documents of the Account Party, (ii) require any consent or approval of any person other than those which have been obtained (and not revoked) prior to the Amendment Effective Time, (iii) violate any laws, rules or regulations (including, without limitation, Regulations T, U or X of the Federal Reserve Bank, or any successor regulations), (iv) conflict with, result in a breach of or constitute a default under any contract to which the Account Party is a party or by which it or any of its property may be bound or (v) result in or require the creation or imposition of any lien upon or with respect to any property now owned or hereafter acquired by the Account Party except such liens, if any, expressly created by any Related Document. (f) There is no action, suit or proceeding, at law or in equity, or before any court, public board, public body or arbitrator pending (or to the knowledge of the Account Party, threatened), against the Account Party or any officers of the Account Party in their respective capacities as such (i) to restrain or enjoin the execution and delivery by the Account Party of this Amendment, (ii) in any manner questioning the authority of the Account Party to execute, deliver and perform this Amendment or the other Related Documents to which it is a party, or (iii) questioning the validity or enforceability of this Amendment or the other Related Documents to which it is a party. 5. Miscellaneous. (a) Except as expressly modified by this Amendment, the Agreement shall continue to be and remain in full force and effect in accordance with its terms. (b) This Amendment may be executed in any number of counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument. (c) This Amendment may be executed by facsimile signature and each such signature shall be treated in all respects as having the same effect as an original signature. (d) THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT UNDER, AND SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CHOICE OF LAW RULES. (e) The Account Party agrees to pay the fees and expenses of counsel to the Bank incurred in connection with the preparation, negotiation, execution and delivery of this Amendment and the documents described herein no later than ten (10) days after the delivery of an invoice therefor. [Remainder of page intentionally left blank] 10 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first above written. CITY OF WEST COVINA By: Name: Title: Approved as to Form: Name: Title: -Signature Page- Amendment to Reimbursement Agreement WELLS FARGO BANK, NATIONAL ASSOCIATION By: Name: Title: -Signature Page- Amendment to Reimbursement Agreement EXHIBIT A [Attach Form of Letter of Credit Extension Notice] Exhibit A to Amendment to Reimbursement Agreement City of West Covina Memorandum AGENDA ITEM NO 7 DATE September 15, 2015 TO: Chairman and Authority Board Members FROM: Torn Mauk Interim Executive Director BY: Christa Buhagiar Finance Director SUBJECT: REVISED AMENDMENT TO REIMBURSEMENT AGREEMENT FOR THE RENEWAL OF THE LETTER OF CREDIT FOR THE 1999 TAX ALLOCATION BONDS RECOMMENDATION: It is recommended the West Covina Public Financing Authority (the "Authority") Board approve the revised First Amendment to Reimbursement Agreement for the Taxable Variable Rate Demand Tax Allocation Bonds, Series 1999 and authorize the Interim Executive Director to execute all necessary documents by adopting the following resolution: RESOLUTION NO. 2015-71 — A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF WEST COVINA, CALIFORNIA, REPEALING RESOLUTION NO. 2015-65 AND AUTHORIZING THE EXECUTION AND DELIVERY BY THE AUTHORITY OF A FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT AND THE TAKING OF CERTAIN ACTIONS IN CONNECTION THEREWITH BACKGROUND: In 1999, the Authority issued Taxable Variable Rate Demand Tax Allocation Bonds, Series 1999 (Bonds) to make a loan to the former Redevelopment Agency of the City of West Covina (Former Agency), which was succeeded by the West Covina Community Development Commission. The loan to the FOIlller Agency financed redevelopment activities of the Former Agency. The Bonds are secured by the Former Agency's loan repayments to the Authority. The Bonds bear interest at a short term variable rate, which reset every 7 days. Owners of such short term variable rate debt can require the Authority to repurchase their Bonds on 7 days' notice. The funds for such a purchase are provided under a letter of credit, and the Authority's remarketing agent then finds a new buyer to purchase the Bonds and repay any draw on the letter of credit. Principal payments are due on these bonds annually through November 1, 2029 and the current principal outstanding balance on the bonds is $3,120,000. DISCUSSION: The current Letter of Credit securing the Bonds is issued by Wells Fargo Bank, National Association (Bank) and expires on October 13, 2015. The terms of the Letter of Credit are governed by a Reimbursement Agreement by and among the Authority, the Successor Agency to the West Covina Redevelopment Agency (Successor Agency), as successor to the Former Agency, and the Bank. The Bank is offering to renew and extend the expiration date of the Letter of Credit to April 2017. An amendment to the Reimbursement Agreement is required to complete the extension process. However, there is no change to the existing letter of credit fees. The modifications contained in the amendment reflect changes in regulatory disclosures since the approval of the original agreement, as well as a provision to waive a jury trial in the event of a dispute. At the September 1, 2015 Authority meeting, the Board approved the Amendment to Reimbursement Agreement, but the bank is now requiring additional language (Section 8.19) to the Amendment. Now included in the amendment to the Reimbursement Agreement is a provision that provides that if the Successor Agency or the Authority enter into an agreement with another entity to provide credit enhancement for the Bonds or any other obligations of the Authority or the Successor Agency and such agreement has different or more restrictive covenants, different or additional events of default or greater rights or remedies than the Reimbursement Agreement, then such provisions are automatically made part of the Reimbursement Agreement. As a result, the Successor Agency and the Authority could be subject to different covenants, events of default and remedies than were originally agreed to with the Bank, depending on what agreements the Successor Agency and the Authority enter into in the future. Staff is recommending the Board authorize the Interim Executive Director to execute all necessary documents of the amendment to the Reimbursement Agreement with the Bank. Once the Successor Agency and the Authority Boards have approved the amendment, the Oversight Board to the Successor Agency will be required to approve the Successor Agency action, and then the Department of Finance will be have an opportunity to review the approval. That process is expected to take up to 60 days. The Bank has extended the Letter of Credit on an interim basis until December to provide sufficient time for the remaining approvals. FISCAL IMPACT: The current annual fee is 1.4% of the Letter of Credit amount (outstanding par amount of the Bonds plus interest for 51 days), which decreases over time as the principal balance of the Bonds is paid down. The fee will remain the same under the amendment. Payment of the fees are an enforceable obligation payable by the Successor Agency from Redevelopment Property Tax Trust Funds deposits and included on the Recognized Obligation Payment Schedule. Prepared by: Chriaa Buliagiar Finance Director ATTACHMENT 1 Resolution ATTACHMENT 2— Amendment to Reimbursement Agreement ATTACHMENT 1 RESOLUTION NO. 2015-71 A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF WEST COVINA, CALIFORNIA, REPEALING RESOLUTION NO. 2015-65 AND AUTHORIZING THE EXECUTION AND DELIVERY BY THE AUTHORITY OF A FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT AND THE TAKING OF CERTAIN ACTIONS IN CONNECTION THEREWITH WHEREAS, the City of West Covina as successor to the Redevelopment Agency of the City of West Covina (the "Predecessor Agency") have heretofore entered into a Joint Exercise of Powers Agreement establishing the West Covina Public Financing Authority (the "Authority") for the purpose, among others, of issuing its Bonds to be used to provide financial assistance to the Predecessor Agency; WHEREAS, the Authority has previously issued $3,945,000 aggregate principal amount of West Covina Public Financing Authority Taxable Variable Rate Demand Tax Allocation Bonds, Series 1999 (Redevelopment Agency of the City of West Covina-West Covina Redevelopment Project-Subordinate Lien) (the "Bonds") to finance a loan made to the Predecessor Agency by the Authority for the purposes of financing certain improvements in the Predecessor Agency's West Covina Redevelopment Project Area; and WHEREAS, the Bonds were issued and delivered as variable rate obligations supported by a direct pay letter of credit; WHEREAS, in 2010, the Authority and the Predecessor Agency caused the delivery of a substitute letter of credit (the "Letter of Credit") issued pursuant to the terms of a Reimbursement Agreement, dated as of September 1, 2010 (the "First Amendment to Reimbursement Agreement"), by and among the Authority, the Predecessor Agency and Wells Fargo Bank, National Association (the "LOC Bank"); and WHEREAS, on June 28, 2011, the California Legislature adopted ABx1 26, inter cilia, dissolving existing redevelopment agencies, including the Predecessor Agency; WHEREAS, the California Supreme Court substantially upheld the provisions of ABx1 26 on December 29, 2011, resulting in the dissolution of the Predecessor Agency on February 1, 2012; WHEREAS, the remaining powers, assets and obligations of the Successor Agency to the former Redevelopment Agency of the City of West Covina (the "Successor Agency") were transferred to the Successor Agency pursuant to ABx1 26 on February 1, 2012; WHEREAS, the Authority and the Successor Agency now wish to extend the LOC and amend the terms of the Reimbursement Agreement pursuant to a First Amendment to Reimbursement Agreement, by and among the Successor Agency, the Authority and the LOC Bank (the "First Amendment to Reimbursement Agreement"); and WHEREAS, the Authority has reviewed the First Amendment to Reimbursement Agreement which is on file with the Secretary of the Authority. NOW, THEREFORE, the Board of Directors of the West Covina Public Financing Authority does hereby resolve as follows: SECTION 1. All of the recitals herein contained are true and correct and the Board of Directors of the Authority (the "Board") so finds. SECTION 2. The First Amendment to Reimbursement Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, is hereby approved. The Chairman, the Vice Chairman, and the Executive Director of the Authority, and any designee thereof (each an "Authorized Officer") are, and each of them is, hereby authorized and directed, for and in the name of the Authority, to execute and deliver the First Amendment to Reimbursement Agreement in substantially the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the First Amendment to Reimbursement Agreement by such Authorized Officer. SECTION 3. The Authorized Officers are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the execution and delivery of the First Amendment to Reimbursement Agreement and the transactions contemplated therein and by this Resolution. SECTION 4. This Resolution shall repeal Resolution No. 2015-65 in its entirety. SECTION 5. This Resolution shall take effect immediately upon its adoption. SECTION 6. The Secretary of the Authority shall certify the adoption of this Resolution. APPROVED AND ADOPTED at a regular meeting held on September 15, 2015. Fredrick Sykes Chairman APPROVED AS TO FORM: ATTEST: Kimberly Hall Barlow Nickolas S. Lewis City Attorney Secretary I, Nickolas S. Lewis, Secretary of West Covina Public Financing Authority, do hereby certify that the foregoing Resolution No. 2015-71 was duly adopted at a regular meeting of the Successor Agency held on the 15 th day of September 2015, by the following vote of the Council: AYES: NOES: ABSENT: ABSTAIN: Nickolas S. Lewis Secretary ATTACHMENT 2 AMENDMENT TO REIMBURSEMENT AGREEMENT This AMENDMENT TO REIMBURSEMENT AGREEMENT (this "Amendment"), is made and entered into as of by and among WEST COVINA PUBLIC FINANCING AUTHORITY, a joint powers authority duly organized and validly existing under and pursuant to the laws of the State of California (the "Authority"), SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY, a public body corporate and politic duly organized and validly existing under and pursuant to the laws of the State of California, including Part 1.85 (commencing with Section 34170) of Division 24 of the California Health and Safety Code (the "Successor Agency"), (the Authority and the Successor Agency, each an "Account Party," and, collectively, the "Account Parties"), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (the "Bank"). WITNES SETH WHEREAS, the Authority, the Successor Agency to the former West Covina Redevelopment Agency (the Successor Agency is winding up the affairs of the West Covina Community Development Commission) and the Bank have previously entered into a Reimbursement Agreement, dated as of October 1, 2010 (the "Agreement"), relating to the West Covina Public Financing Authority Taxable Variable Rate Demand Tax Allocation Bonds, Series 1999 (Redevelopment Agency of the City of West Covina — West Covina Redevelopment Project — Subordinate Lien); WHEREAS, the Account Parties desire to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement); WHEREAS, the Bank is willing to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement) as long as certain amendments are made to the Agreement; and WHEREAS, the Account Parties are willing to agree to such amendments in order to extend the Stated Termination Date (as defined in the Agreement) of the Letter of Credit (as defined in the Agreement). NOW, THEREFORE, in consideration of the foregoing, the premises and mutual covenants contained herein and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings given thereto in the Agreement. 2. Effectiveness of this Amendment. This Amendment shall become effective as provided herein at the time (the "Amendment Effective Time") on the first date (the "Amendment Effective Date") on which each of the following conditions shall be satisfied or waived by the Bank: (a) Delivery of Amendment. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of this Amendment duly executed and delivered by the Account Parties. (b) Resolution/Order. Receipt by the Bank, on or prior to the Amendment Effective Date, of a copy of a resolution Or order of the Account Parties authorizing the execution, delivery and performance of this Amendment, certified by the Secretary of each Account Party, which certification shall include a statement to the effect that such resolution or order is in full force and effect on the Amendment Effective Date and has not been amended. (c) Approval of Oversight Board; Approval or No Action by State Department of Finance. The oversight board for the Successor Agency (the "Oversight Board") shall have approved this Amendment and the transactions contemplated hereby (the "Transactions") and the Bank shall have received written evidence thereof, and either (i) the period for review by the California Department of Finance of the Oversight Board's approval shall have lapsed without receipt by the Oversight Board of a request for review from the California Department of Finance or (ii) the California Department of Finance shall have approved the Oversight Board's approval of the Transactions. (d) Incumbency. Receipt by the Bank, on or prior to the Amendment Effective Date, of a certificate of each Account Party certifying the names and true signatures of the officers of such Account Party authorized to sign this Amendment and the other documents to be delivered by such Account Party hereunder. (e) Representations and Covenants of the Authority; No Defaults. The following statements shall be true and correct on and as of the Amendment Effective Date, and the Bank shall have received a certificate signed by an authorized officer of the Authority, dated the Amendment Effective Date, stating that: (i) The representations of the Authority contained in Section 4.01 of the Agreement (other than those contained in Section 4.01(e) and 4.01(k) as to which no representation is made) are true and correct in all material respects on and as of the Amendment Effective Date as though made on and as of such date. (ii) The representations of the Authority contained in Section 4 of this Amendment are true and correct in all respects on and as of the Amendment Effective Date as though made on and as of such date. (iii) The Authority has performed or complied with all of its obligations, agreements and covenants to be performed or complied with by it pursuant to the Agreement on or prior to the Amendment Effective Date. (iv) After giving effect to the execution and delivery of this Amendment by the Authority Party, there exists no Default or Event of Default. (1) Representations and Covenants of the Successor Agency; No Defaults. The following statements shall be true and correct on and as of the Amendment Effective Date, 2 and the Bank shall have received a certificate signed by an authorized officer of the Successor Agency, dated the Amendment Effective Date, stating that: (i) The representations of the Successor Agency contained in Section 4.02 of the Agreement (other than those contained in Section 4.02(e) and 4.02(k) as to which no representation is made) are true and correct in all material respects on and as of the Amendment Effective Date as though made on and as of such date. (ii) The representations of the Successor Agency contained in Section 5 of this Amendment are true and correct in all respects on and as of the Amendment Effective Date as though made on and as of such date. (iii) The Successor Agency has performed or complied with all of its obligations, agreements and covenants to be performed or complied with by it pursuant to the Agreement on or prior to the Amendment Effective Date. (iv) After giving effect to the execution and delivery of this Amendment by the Successor Agency Party, there exists no Default or Event of Default. (g) Fees, Costs and Expenses. The Bank shall have received payment of all fees, costs and expenses due under the Agreement that are to be paid on or prior to the Amendment Effective Date. (h) No Material Adverse Change. As of the Amendment Effective Date, the Bank, in its sole determination, shall be satisfied that (i) except as set forth in Note 21 of the Notes to Basic Financial Statements included in the Comprehensive Annual Financial Report of the City of West Covina for the fiscal year ended June 30, 2014, since June 30, 2014, no material adverse change in the financial condition, business, assets, liabilities or prospects of either Account Party has occurred, and (ii) no law, rule or regulation shall have been enacted, amended, suspended or repealed that would result in a material adverse change of the type described in clause (i). 3. Amendments. At the Amendment Effective Time: (a) The following defined terms set forth in Section 1.01 of the Agreement shall be amended and restated to read as follows: "Business Day" means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or any other day on which commercial banks in California are authorized or required by law to close and (b) with respect to all determinations of LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day. As used herein, "London Banking Day" means any day on which dealings in U.S. dollar deposits are conducted by and between banks in the London interbank Eurodollar market. "LIBOR" means a rate per annum determined by the Bank pursuant to the following formula: 3 LIBOR = Base LIBOR 1.00 - Eurodollar Reserve Percentage Notwithstanding the foregoing, if LIBOR shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. As used herein, "Base LIBOR" means, as of any date of determination, the rate of interest per annum determined on the basis of the rate for deposits in U.S. dollars for an interest period equal to one month (commencing on the date of determination of such interest rate) which appears on the Reuters Screen LIBOR01 Page (or any applicable successor page) at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day. If, for any reason, such rate does not appear on Reuters Screen LIBOR01 Page (or any applicable successor page) then "Base LIBOR" shall be determined by the Bank to be the arithmetic average of the rate per annum at which deposits in U.S. dollars would be offered by first class banks in the London interbank market to the Bank at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination. Each calculation by the Bank of Base LIBOR shall be conclusive and binding for all purposes, absent manifest error. AS used herein, "Eurodollar Reserve Percentage" means, for any day, the percentage which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. (b) The following defined terms shall be added to Section 1.01 of the Agreement and shall be inserted in alphabetical order: "Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to the Authority or the Successor Agency from time to time concerning or relating to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder. "Bank Agreement" means any credit agreement, liquidity agreement, standby bond purchase agreement, reimbursement agreement, direct purchase agreement (such as a continuing covenant agreement or supplemental bondholder's agreement), bond purchase agreement, or other agreement or instrument (or any amendment, supplement or other modification thereof) under which, directly or indirectly, any Person or Persons undertake(s) to make payment of or provide funds to make, or to purchase or provide credit enhancement for bonds, notes or other obligations of the Authority and/or the Successor Agency payable from and/or secured by Tax Revenues. "Excluded Taxes" means, with respect to the Bank or any Participant, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political 4 subdivision thereof) under the laws of which the Bank or such Participant is organized or in which its principal office is located, and (b) any branch profits taxes imposed by the United States of America or any similar tax imposed by the State. "Governmental Authority" means the government of the United States of America or any other nation or any political subdivision thereof or any governmental or quasi- governmental entity, including any court, department, commission, board, bureau, agency, administration, central bank, service, district or other instrumentality of any governmental entity or other entity exercising executive, legislative, judicial, taxing, regulatory, fiscal, monetary or administrative powers or functions of or pertaining to government (including any supra national bodies such as the European Union or European Central Bank), or any arbitrator, mediator or other Person with authority to bind a party at law. "Indemnified Taxes" means Taxes other than Excluded Taxes. "Law" means any treaty or any federal, regional, state and local law, statute, rule, ordinance, regulation, code, license, authorization, decision, injunction, interpretation, order or decree of any court or other Governmental Authority. "OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control. "PATRIOT Act" means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government (including those administered by OFAC), the European Union, Her Majesty's Treasury, or other relevant sanctions authority. "Sanctioned Country" means at any time, a country or territory which is itself the subject or target of any Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria). "Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions- related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty's Treasury, or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in clauses (a) and (b). "Taxes" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, fines, additions to tax or penalties applicable thereto. 5 (c) Section 2.07of the Agreement shall be amended by deleting subsections (c) and (d) thereof. (d) Section 2.09 of the Agreement shall be amended by adding the following to the end of said Section: Any and all payments by or on account of any obligation of the Authority or the Successor Agency under any Related Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in the good faith discretion of the Authority or the Successor Agency, as the case may be) requires the deduction or withholding of any Tax from any such payment by the Authority or the Successor Agency, then the Authority or the Successor Agency, as the case may be, shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Authority or the Successor Agency, as the case may be, shall be increased as necessary so that, after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section), the Bank (or Participant) receives an amount equal to the sum it would have received had no such deduction or withholding been made. The obligations of the Authority and the Successor Agency set forth in this Section 2.09 shall survive the termination of this Agreement. (e) The obligations of the Authority and the Successor Agency set forth in this Section 2.13 shall survive the termination of this Agreement. (f) Section 4.01 of the Agreement shall be amended by adding the following subsection after subsection 4.01(1) and the table of contents shall be amended to reflect the addition of the new Section: (rn) Anti-Corruption Laws and Sanctions. None of the Authority or, to the knowledge of the Authority, any of its directors, members, officers or employees or any agent or representative of Authority that will act in any capacity in connection with or benefit from the Letter of Credit or this Agreement, (i) is a Sanctioned Person or currently the subject or target of any Sanctions or (ii) has taken any action, directly or indirectly, that would result in a violation by such Persons of any Anti-Corruption Laws. (g) Section 4.02 of the Agreement shall be amended by adding the following subsection after subsection 4.02(m) and the table of contents shall be amended to reflect the addition of the new Section: (n) Anti-Corruption Laws and Sanctions. None of the Successor Agency or, to the knowledge of the Successor Agency, any of its directors, members, officers or employees or any agent or representative of Successor Agency that will act in any capacity in connection with or benefit from the Letter of Credit or this Agreement, (i) is a Sanctioned Person or currently the subject or target of any Sanctions or (ii) has taken any 6 action, directly or indirectly, that would result in a violation by such Persons of any Anti- Corruption Laws. (h) Section 5.02 of the Agreement shall be amended by adding the following subsection after subsection 5.02(d): (e) Anti-Corruption Laws and Sanctions. The Authority will maintain in effect and enforce policies and procedures designed to ensure compliance by the Authority, its council members, directors, officers, employees and agents with Anti- Corruption Laws and applicable Sanctions. The Authority shall not permit the proceeds of any drawing under the Letter of Credit to be used (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. (i) Section 6.02 of the Agreement shall be amended by adding the following subsection after subsection 6.02(h): (i) Anti-Corruption Laws and Sanctions. The Successor Agency will maintain in effect and enforce policies and procedures designed to ensure compliance by the Successor Agency, its council members, directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. The Successor Agency shall not permit the proceeds of any drawing under the Letter of Credit to be used (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. (j) Section 8.16 of the Agreement shall be amended and restated in its entirety to read as follows and the table of contents shall be amended to reflect the new caption: SECTION 8.16. GOVERNING LAW; JURISDICTION; ETC. (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. (b) SUBMISSION TO JURISDICTION. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF CALIFORNIA SITTING IN LOS ANGELES COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER RELATED DOCUMENT TO WHICH EACH IS A PARTY, OR FOR 7 RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER RELATED DOCUMENT SHALL AFFECT ANY RIGHT THAT THE BANK MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ANY OTHER RELATED DOCUMENT AGAINST THE AUTHORITY OR THE SUCCESSOR AGENCY OR ANY OF THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. (c) WAIVER OF VENUE. THE AUTHORITY AND THE SUCCESSOR AGENCY EACH IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY RELATED LOAN DOCUMENT IN ANY COURT REFERRED TO IN SUBSECTION (B) OF THIS SECTION 8.16. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAWS, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. (d) SERVICE OF PROCESS. EACH OF THE AUTHORITY AND THE SUCCESSOR AGENCY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.03. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS 1N ANY OTHER MANNER PERMITTED BY APPLICABLE LAWS. (e) WAIVER OF RIGHT TO JURY TRIAL; JUDICIAL REFERENCE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM. IF AND TO THE EXTENT THAT THE FOREGOING WAIVER OF JURY TRIAL IS UNENFORCEABLE FOR ANY REASON IN SUCH FORUM, EACH OF THE PARTIES HERETO HEREBY CONSENTS TO THE ADJUDICATION OF ALL CLAIMS PURSUANT TO JUDICIAL REFERENCE AS PROVIDED IN CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, AND THE JUDICIAL REFEREE SHALL BE EMPOWERED TO HEAR AND DETERMINE ALL ISSUES IN SUCH REFERENCE, WHETHER FACT OR LAW. IT IS HEREBY ACKNOWLEDGED THAT THE WAIVER OF A JURY TRIAL TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS AND THE CONSENT TO 8 JUDICIAL REFERENCE IS A MATERIAL INDUCEMENT FOR THE PARTIES TO EXECUTED AND DELIVER THIS AGREEMENT. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER AND CONSENT HAS BEEN KNOWINGLY AND VOLUNTARILY MADE FOLLOWING CONSULTATION WITH ITS RESPECTIVE LEGAL COUNSEL. (k) Article VIII of the Agreement shall be amended by adding the following Sections after Section 8.18 of the Agreement and the table of contents shall be amended to reflect the addition of the new Sections: SECTION 8.19. Other Agreements. In the event that the Authority or the Successor Agency shall, directly or indirectly, enter into or otherwise consent to any Bank Agreement, or suffer to exist any Bank Agreement, which provides a Person with different or more restrictive covenants, different or additional events of default and/or greater rights and remedies than are provided to the Bank in this Agreement, the Authority and/or the Successor Agency, as the case may be, shall provide the Bank with a copy of each such Bank Agreement and such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies shall automatically be deemed to be incorporated into this Agreement and the Bank shall have the benefits of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies as if specifically set forth herein. The Authority and the Successor Agency shall promptly enter into an amendment to this Agreement to include different or more restrictive covenants, different or additional events of default and/or greater rights and remedies; provided that the Bank shall have and maintain the benefit of such different or more restrictive covenants, different or additional events of default and/or greater rights and remedies even if the Authority and/or the Successor Agency fails to provide such amendment. SECTION 8.20. Assignment For Collateral. The Bank may assign and pledge, without the consent of the Authority or the Successor Agency, all or any portion of the Authority's and the Successor Agency's obligations to the Bank under this Agreement and the other Related Documents (including Bank Bonds) owing to it to any Federal Reserve Bank or the United States Treasury as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any Operating Circular issued by such Federal Reserve Bank, provided that any payment in respect of such assigned obligations made by the Authority or the Successor Agency to the Bank in accordance with the terms of this Agreement shall satisfy the Authority's or the Successor Agency's obligations hereunder and under the other Related Documents in respect of such assigned obligation to the extent of such payment. No such assignment shall release the Bank from its obligations hereunder or under the Letter of Credit. SECTION 8.21. USA PATRIOT Act. The Bank hereby notifies each of the Authority and the Successor Agency that pursuant to the requirements of the PATRIOT Act, the Bank is required to obtain, verify and record information that identifies the Authority and the Successor Agency, which information includes the name and address of the Authority and the Successor Agency, and other information that will allow the 9 Bank to identify the Authority and the Successor Agency in accordance with the PATRIOT Act. SECTION 8.22. No Advisory or Fiduciary Relationship. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Related Document), each the Authority and the Successor Agency acknowledges and agrees that: (a) (i) the services regarding this Agreement provided by the Bank and any Affiliate thereof are arm's-length commercial transactions between the Authority and the Successor Agency, on the one hand, and the Bank and its Affiliates, on the other hand, (ii) each of the Authority and the Successor Agency has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) each of the Authority and the Successor Agency is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Related Documents; (b) (i) the Bank and its Affiliates each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be, acting as an advisor, agent or fiduciary for the Authority or the Successor Agency and (ii) neither the Bank nor any of its Affiliates has any obligation to the Authority or the Successor Agency with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Related Documents; and (c) the Bank and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Authority or the Successor Agency, and neither the Bank nor any of its Affiliates has any obligation to disclose any of such interests to the Authority or the Successor Agency. To the fullest extent permitted by law, each of the Authority and the Successor Agency hereby waives and releases any claims that it may have against the Bank or any of its Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transactions contemplated hereby. 3. Amendment of the Letter of Credit. Promptly following the Amendment Effective Time, the Bank shall execute and cause to be delivered to the Trustee a certificate in the form attached hereto as Exhibit A extending the Stated Termination Date of the Letter of Credit. 4. Representations and Warranties of the Authority. (a) The Authority is a joint powers authority duly organized and existing under the Constitution and laws of the State of California. (b) The Authority Party has the power and authority to execute, deliver and perform this Amendment. (c) The Authority has taken all necessary action to authorize this Amendment, and to execute, deliver and perform its obligations under this Amendment in accordance with its terms. 10 (d) This Amendment has been duly executed and delivered by the Authority, and when executed and delivered by the Bank will be, a legal, valid and binding obligation of the Authority in accordance with its terms, except as such enforceability may be limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). (e) The execution, delivery and perfollnance of this Amendment by the Authority in accordance with its terms does not and will not (i) contravene any organizational documents of the Authority, (ii) require any consent or approval of any person other than those which have been obtained (and not revoked) prior to the Amendment Effective Time, (iii) violate any laws, rules or regulations (including, without limitation, Regulations T, U or X of the Federal Reserve Bank, or any successor regulations), (iv) conflict with, result in a breach of or constitute a default under any contract to which the Authority is a party or by which it or any of its property may be bound or (v) result in or require the creation or imposition of any lien upon or with respect to any property now owned or hereafter acquired by the Authority except such liens, if any, expressly created by any Related Document. (0 There is no action, suit or proceeding, at law or in equity, or before any court, public board, public body or arbitrator pending (or to the knowledge of the Authority, threatened), against the Authority or any officers of the Authority in their respective capacities as such (i) to restrain or enjoin the execution and delivery by the Authority of this Amendment, (ii) in any manner questioning the authority of the Authority to execute, deliver and perform this Amendment or the other Related Documents to which it is a party, or (iii) questioning the validity or enforceability of this Amendment or the other Related Documents to which it is a party. 5. Representations and Warranties of the Successor Agency. (a) The Successor Agency is a public body corporate and politic duly organized and existing under the Constitution and laws of the State of California. (b) The Successor Agency Party has the power and authority to execute, deliver and perform this Amendment. (c) The Successor Agency has taken all necessary action to authorize this Amendment, and to execute, deliver and perform its obligations under this Amendment in accordance with its terms. (d) This Amendment has been duly executed and delivered by the Successor Agency, and when executed and delivered by the Bank will be, a legal, valid and binding obligation of the Successor Agency in accordance with its terms, except as such enforceability may be limited by (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally, and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 11 (e) The execution, delivery and performance of this Amendment by the Successor Agency in accordance with its terms does not and will not (i) contravene any organizational documents of the Successor Agency, (ii) require any consent or approval of any person other than those which have been obtained (and not revoked) prior to the Amendment Effective Time, (iii) violate any laws, rules or regulations (including, without limitation, Regulations T, U or X of the Federal Reserve Bank, or any successor regulations), (iv) conflict with, result in a breach of or constitute a default under any contract to which the Successor Agency is a party or by which it or any of its property may be bound or (v) result in or require the creation or imposition of any lien upon or with respect to any property now owned or hereafter acquired by the Successor Agency except such liens, if any, expressly created by any Related Document. (f) There is no action, suit or proceeding, at law or in equity, or before any court, public board, public body or arbitrator pending (or to the knowledge of the Successor Agency, threatened), against the Successor Agency or any officers of the Successor Agency in their respective capacities as such (i) to restrain or enjoin the execution and delivery by the Successor Agency of this Amendment, (ii) in any manner questioning the authority of the Successor Agency to execute, deliver and perform this Amendment or the other Related Documents to which it is a party, or (iii) questioning the validity or enforceability of this Amendment or the other Related Documents to which it is a party. 6. Miscellaneous. (a) Except as expressly modified by this Amendment, the Agreement shall continue to be and remain in full force and effect in accordance with its terms. (b) This Amendment may be executed in any number of counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument. (c) This Amendment may be executed by facsimile signature and each such signature shall be treated in all respects as having the same effect as an original signature. (d) THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT UNDER, AND SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CHOICE OF LAW RULES. (e) Each Account Party jointly and severally agrees to pay the fees and expenses of counsel to the Bank incurred in connection with the preparation, negotiation, execution and delivery of this Amendment and the documents described herein no later than ten (10) days after the delivery of an invoice therefor. [Remainder of page intentionally left blank.] 12 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first above written. WEST COVINA PUBLIC FINANCING AUTHORITY By: Name: Title: SUCCESSOR AGENCY TO THE FORMER WEST COVINA REDEVELOPMENT AGENCY By: Name: Title: Approved as to Form: Name: Title: -Signature Page- Amendment to Reimbursement Agreement WELLS FARGO BANK, NATIONAL ASSOCIATION By: Name: Title: -Signature Page- Amendment to Reimbursement Agreement EXHIBIT A Amendment To Irrevocable Standby Letter of Credit Number: NZ5668499 Amendment Number: 002 Amend Date: [0], 2015 BENEFICIARY U.S. BANK NATIONAL ASSOCIATION 633 WEST FIFTH STREET, 24T" FLOOR LOS ANGELES, CA 90071 ATTN: CORPORATE TRUST SERVICES APPLICANT WEST COVINA PUBLIC FINANCING AUTHORITY AND THE SUCCESSOR AGENCY OF THE FORMER WEST COVINA REDEVELOPMENT AGENCY 1444 WEST GARVEY AVE SOUTH WEST COVINA, CA 91790 LADIES AND GENTLEMEN: AT THE REQUEST AND FOR THE ACCOUNT OF THE ABOVE REFERENCED APPLICANT, WE HEREBY AMEND OUR IRREVOCABLE STANDBY LETTER OF CREDIT (THE "WELLS CREDIT") IN YOUR FAVOR AS FOLLOWS: THE THIRD PARAGRAPH OF PAGE ONE OF OUR LETTER OF CREDIT DATED OCTOBER 13, 2010 IS NOW TO READ: THIS LETTER OF CREDIT EXPIRES AT THE PRESENTATION OFFICE ON [•] OR, IF SUCH DATE IS NOT A BUSINESS DAY, THEN ON THE FIRST (181) SUCCEEDING BUSINESS DAY THEREAFTER (THE "EXPIRATION DATE"). ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED. THIS AMENDMENT IS TO BE ATTACHED TO THE ORIGINAL WELLS CREDIT AND IS AN INTEGRAL PART THEREOF. Very Truly Yours, WELLS FARGO BANK, N.A. By: The original of the Letter of Credit contains an embossed seal over the Authorized Signature. Please direct any written correspondence or inquiries regarding this Letter of Credit, always quoting our reference number, to Wells Fargo Bank, National Association, Attn: U.S. Standby Trade Services at either One Front Street MAC A0195-212 San Francisco, CA 94111 or 401 Linden Street MAC D4004-017 Winston-Salem, NC 27101 Exhibit A to Amendment to Reimbursement Agreement Phone inquiries regarding this credit should be directed to our Standby Customer Connection Professionals 1-800-798-2815 Option 1 1-800-776-3862 Option 2 (Hours of Operation: 8:00 a.m. PT to 5:00 p.m. PT) (Hours of Operation: 8:00 a.m. EST to 5:30 p.m. EST) Exhibit A to Amendment to Reimbursement Agreement City of West Covina Memorandum AGENDA ITEM NO 8 DATE September 15, 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Christa Buhagiar Finance Director SUBJECT: FY 15/16 BUDGET AMENDMENT RECOMMENDATION: It is recommended that the City Council approve the proposed FY 15/16 Budget Amendment. DISCUSSION: Due to insufficient funds in Fund 145 (Waste Management Enforcement Grant), staff recommends appropriating $7,923 from Fund 120 (Integrated Waste Management) to cover the costs of a contract with Rincon Environmental LLC to provide the City of West Covina's Local Enforcement Agency (LEA) Program duties: • Appropriate fund balance from the Integrated Waste Management Fund in the amount of $7,923 in expenditures (Account 120.41.4182.6120). FISCAL IMPACT: The proposed budget amendment will increase the total Integrated Waste Management budget by $7,923. There is an adequate amount of fund balance in the Integrated Waste Management Fund to allow for the appropriation. Prepared by: City of West Covina Memorandum AGENDA ITEM NO 9 DATE September 15, 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Christa Buhagiar Finance Director SUBJECT: MACH 1 CONSULTING SERVICES AGREEMENT RECOMMENDATION: It is recommended the City Council approve an "on call" agreement with Mach 1 Consulting in an amount not to exceed $35,000 to provide consulting services on an as needed basis to the City of West Covina as directed by the City Manager and appropriate fund balance from the General Fund. DISCUSSION: As the City Council nears the completion of a successful recruitment for a new City Manager there are some ongoing projects that the City may need staff augmentation resources to complete or to successfully pursue. Among them are efforts such as resolving the Athens Disposal discussions and contract issues, assisting in the implementation of Audit findings and rewriting and bringing current City processes and policies. This is intended to be managed as necessary and if necessary by the City Manager or as may be directed by the City Council. If no assistance in terms of consultant services are determined to be needed then no costs will be incurred. The consultant will not have an ongoing presence at City Hall. The attached agreement will allow the City Manager to call for consultant services as needed at an hourly rate of $135.00 with a not to exceed amount as noted. FISCAL IMPACT: The not to exceed amount of $35,000 will need to be appropriated from the General Fund year end surplus to account # 110.11.1120.6110. Prepared by: Christa Buhagiar Finance Director ATTACHMENT 1 ATTACHMENT 1 CITY OF WEST COVINA CONSULTING SERVICES AGREEMENT This Agreement is made and entered into as of September 21, 2015, between the CITY OF WEST COVINA, a municipal corporation, hereinafter referred to as "City" and MACH 1 CONSULTING, hereinafter referred to as "Consultant." In consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follow: SECTION 1. RECITALS. This Agreement is made and entered into with respect to the following facts: a. That the City is desirous of obtaining the services of a qualified consultant to provide special project services to the City Manager, as directed; and b. That the City Manager of the City has determined that the public interest, convenience and necessity require execution of this Agreement. SECTION 2. SERVICES. Consultant shall perform tasks as specified in Exhibit "A" attached hereto and incorporated herein as directed by the City Manager his/her designee. SECTION 3. PERFORMANCE. Consultant shall at all times faithfully, competently and to the best of his/her ability, experience, and talent perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services, as are required of Consultant hereunder in meeting his/her obligations under this Agreement. SECTION 4. EXTRA SERVICES. No extra services shall be rendered by Consultant under this Agreement unless such extra services first shall have been duly authorized in writing b'y the City. SECTION 5. CITY SUPERVISION. The City Manager, or his/her designee, shall have the right of general supervision of all work performed by Consultant and shall be the City's agent with respect to obtaining Consultant's compliance hereunder. No payment for any services rendered under this. Agreement shall be made without the prior approval of the City Manager or his/her designee. SECTION 6. PAYMENT, The City agrees to pay Consultant at the hourly rate of per $135.00 per hour. The Consultant's total compensation shall not exceed $35,000. SECTION 7. SUSPENSION. TERMINATION OR ABANDONMENT OF AGREEMENT. Either the City or the Consultant may, with or without cause, at any time, suspend, terminate, or abandon this Agreement, or any portion hereof, by service upon the other 1 party at least thirty (30) days prior written notice. Upon receipt or delivery of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Upon receipt or delivery of such notice, the Consultant shall immediately prepare and serve upon the City an invoice covering all completed work. Within thirty-five (35) days, the City shall approve such invoice and the amount of compensation; or the City shall provide the Consultant with a written statement objecting to the invoice. For incomplete tasks in progress as of the date of the giving of notice or termination by the City or Consultant, Consultant shall be compensated for usual costs that were performed as of the effective date of such notice. The City may immediately suspend, terminate or abandon this Agreement, or any portion hereof, without any prior notice to Consultant, for cause, by immediately serving Consultant with written or oral notice. If the City suspends, terminates or abandons this Agreement, or any portion hereof, for cause, the Consultant will be compensated only for work performed as of the date of receipt of such written or oral notice. If the City -suspends, terminates or abandons a portion of this Agreement, such suspension, termination or abandonment shall not make void or invalidate the remainder of this Agreement. SECTION 8. TERM. This Agreement shall commence on September 21, 2015, and shall remain and continue in effect until June 30, 2015. SECTION 9. OWNERSHIP OF DOCUMENTS. Upon satisfactory completion of, or in the event of termination, suspension or abandonment of this Agreement, all original documents, designs, drawings, notes, reports, documents, floppy disks, diskettes or other materials prepared, developed or discovered by Consultant during the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City And may be used, reused or otherwise disposed of by the City without the permission of the Consultant. Upon completion, expiration or termination of this Agreement, Consultant shall turn over to the City all original documents, designs, drawings, notes, reports, documents, floppy disks, diskettes or other materials prepared, developed or .discovered by Consultant during the course of providing the services to be performed pursuant to this Agreement. SECTION 10. INDEPENDENT CONTRACTOR. The Consultant is and shall at all times remain as to the City a wholly independent contractor. Neither the City nor any of its officers, employees or agents shall have control over the agents except as expressly set forth in this Agreement. The Consultant shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers employees or agents of the City. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except as provided in the Agreement, City shall not pay salaries, wages, or other compensation, including PERS or other retirement or other benefits, to Consultant for performing services hereunder for City. City shall not be liable for compensation of or indemnification to Consultant for injury or sickness arising out of performing services hereunder. SECTION 11. PERS Eligibility Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees 2 Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant 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. SECTION 12. Non-discrimination. In performing this Agreement, Consultant shall not engage in, nor permit its agents to engage in, discrimination in employment of persons because of their race, religion, color, national origin, ancestry, age, physical or intellectual disability, medical condition, pregnancy, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the Government Code. SECTION 13. NOTICE. Whenever it shall be necessary for either party to serve written notice on the other regarding this Agreement, such notice shall be served personally or by certified mail, postage prepaid, return receipt requested, unless and until different addresses may be furnished in writing by either party to the other, addressed to: City Attn: City Clerk City of West Covina 1444 West Garvey Ave., South West Covina, CA 91790 Consultant Attn: Tom Mauk Mach 1 Consulting 10015 Santa Gertrudes Ave. Whittier, CA 90603 Notice shall be deemed to have been served seventy-two (72) hours after the same has been deposited in the United State Postal Service or upon receipt. This shall be valid and sufficient service of notice for all purposes. SECTION 14. CONFLICTS OF INTEREST. Consultant covenants that neither he/she nor any officer or principal of his/her firm have any interest in, or shall they acquire any interest, directly or indirectly which will conflict in any manner or degree with the performance of their services hereunder. Consultant further covenants that in the performance of this Agreement, no person having such interest shall be employed by them as an officer, employee, agent, or subcontractor without the express written consent of the City Manager or his/her designee. Consultant further covenants that Consultant 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 partnerships owning property in the City or the study area and further covenants and agrees that Consultant and/or its subcontractors shall provide no services to or enter into any agreement or agreements with any developer(s) and/or property owner(s) and/or firm(s) and/or City Manager or his/her designee. SECTION 15. ENTIRE AGREEMENT. This Agreement contains the entire understanding between the City and Consultant. Any prior agreements, promises, negotiation's 3 or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by all parties. If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding. SECTION 16. WAIVER. Waiver by any party hereto of any term, condition, or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant .hereof. SECTION 17. BINDING EFFECT. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. SECTION 18. LICENSED STATUS. Consultant shall, at all times during the term of this Agreement, have in full force and effect all licenses required by law. SECTION 19. GOVERNING LAW. This Agreement shall be interpreted and construed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles. SECTION 20. INSURANCE. Consultant will be required to provide proof of automobile liability insurance. SECTION 21. INDEMNIFICATION. The City shall indemnity, defend, and hold Consultant harmless from and against any and all liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state or municipal law of ordinance, or other cause in connection with the acts or omissions of Consultant, his employees, subcontractors, or agents, or on account of the performance or character of this work, except for any such claim arising out of the sole negligence or willful misconduct of the Consultant. It is understood that the duty of the City to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. DATED this date as first executed above. CITY OF WEST COVINA MACH 1 CONSULTING V116.:VIA rf p A FREDRICK SYKES, MAYOR 4 ATTEST: ROSALIA CONDE, ASSISTANT CITY CLERK APPROVED AS TO FORM: KIMBERLY HALL BARLOW, CITY ATTORNEY 5 City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 10 DATE September 15, 2015 FROM: Tom Mauk City Manager BY: Dave Faulkner Chief of Police SUBJECT: ASSET FORFEITURE FUNDS FOR POLICE VEHICLES, SERVICES, EQUIPMENT, AND SUPPLIES RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Appropriate a total of $1,397,481 in federal asset forfeiture funds from the fund balance of Fund 117, as follows: • $165,475 into 117.31.3120.7170 for the partial purchase and equipping of 5 new Ford Police Interceptor Utility vehicles, including warranties, service plans, taxes, and fees. (Partial vehicle replacement funding was previously approved in the FY 2015-16 budget); • $70,000 into 117.31.3121.7170 for the purchase and equipping of Police motorcycles; • $304,631 into 117.31.3110.7170 for the purchase of a BearCat vehicle; • $325,000 into 117.31.3110.7130 for mobile computers and accessories; • $311,375 into 117.31.3119.6120 for continued police information technology services, and computer architecture services for the CAD-RMS rewrite; • $165,000 into 117.31.3120.7160 for vehicle mounted cameras; and • $56,000 into 117.31.3110.6220 for other law enforcement supplies. 2. Appropriate an additional $8,764 in available vehicle replacement funds from the fund balance of fund 367 into 367.80.7008.7170. 3. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-333 (i) (2), and the findings of the West Covina Finance Department/Purchasing Officer, find that the City of Los Angeles' Request for Quotation (RFQ) #EV4452 for Ford Police Interceptor Utility vehicles satisfies West Covina's bid process and authorize the purchase of a total of five (5) vehicles per specifications, directly from Wondries Fleet Group of Alhambra for a total of $184,885, including warranties, service plans, taxes and fees, from accounts 117.3L3120.7170 and 367.80.7008.7170. 4. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-333 (b), which states that bidding may be dispensed with when the commodity can be obtained from only one (1) vendor, authorize the purchase of an equipped Lenco Bearcat directly from Lenco Armored Vehicles for a total of $304,631, from account 117.31.3110.7170. 5. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-330 (c), which states that professional services, including computer consultants, are exempt from bidding procedures, approve an Information Technology Infrastructure Service Agreement ("Agreement") for up to $150,000 with Scientia Consulting Group, for continued specialized police information technology services, from account 117.31.3119.6120, and authorize the Mayor to execute the agreement. 6. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-330 (c), which states that professional services, including computer consultants, are exempt from bidding procedures, staff recommends that the City Council approve a computer infrastructure design agreement with IDesign, Inc., for the WCSG CAD-RMS rewrite, for $161,375 from account 117.31.3119.6120, and authorize the Mayor to execute the related agreements. DISCUSSION: The West Covina Police Department received federal asset forfeiture funds stemming from successful law enforcement and prosecution efforts of narcotics cases, spearheaded by the Department's Special Enforcement Team (SET). These cases are adjudicated at the federal level by the U.S. Department of Justice, which is often a lengthy process that results in irregular receipts of these funds. The U.S. Department of Justice produces a lengthy publication concerning the spending rules and prohibitions associated with federal asset forfeiture funds. This publication is called the Guide to Equitable Sharing of Federally Forfeited Property for State and Local Governments. Briefly, asset forfeiture funds are approved for new unbudgeted law enforcement uses, must be accounted for separately from other funds to adhere to financial reporting and auditing requirements, and cannot be spent until the funds are actually received as revenue. Moreover, these funds cannot be used to replace (supplant) funding levels for police department items (like police officers, materials, services, supplies and equipment, etc.) previously funded from the City's General Fund, There are sufficient funds available in the fund balance of Fund 117 for a range of needed public safety items, which have been prioritized. These items include the following: • Patrol Vehicles: The patrol vehicle is a basic tool needed by a patrol officer to perform the job of providing police service to residents. For patrol officers, their office space is their vehicle, and they count on those vehicles performing every time they enter them. These vehicles are used in intense pursuits, and often run nonstop supporting multiple patrol shifts round the clock. In comparison to a standard civilian car, the actual mileage and wear and tear on these units' engines far exceeds the odometer numbers, because these patrol units frequently idle for long periods of time at crime scenes and traffic stops while Officers use vehicle-mounted lights, Mobile Data Computers (MDCs), and communications equipment. On November 18, 2014 (agenda item number 13), the City Council approved the purchase of three new patrol vehicles from Wondries Fleet Group of Alhambra, "piggybacking" on the City of Los Angeles' previous purchase of 294 of these vehicles. This fiscal year, five high-mileage WCPD vehicles have been identified as needing immediate replacement—units P10, P36, P30, P I7A, and P6, which are Crown Victoria Interceptor sedans that were discontinued by Ford in 2011. Wondries Fleet Group has again offered five (5) of these vehicles to West Covina, tied to the terms of a purchase by the City of Los Angeles (Purchase Contract number 59642/Request for Quotation number EV4452/Purchase Order 41607129—see Attachment No. I and Attachment No. 2), and incorporating options and features specific to the West Covina Police Department. This competitively bid purchase by the City of Los Angeles was sent to 15 vendors and advertised on their open bid website (the LA Business Assistance Virtual Network). The City of Los Angeles awarded this purchase to Wondries Fleet Group, which was the only responsive bidder, and their purchase order was approved by their City Attorney and General Services Department Director. West Covina Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-333 (i) (2), permits the City to "piggyback" in this purchase, and thus allows West Covina to obtain the same base pricing for five vehicles as Los Angeles did for their 168 vehicles under that purchase order. One of these five vehicles will be a K9 vehicle, and requires the additional option of rear air conditioning for the police dog. Including taxes and fees, the K9 vehicle will cost $35,065, while the other four vehicles will cost $34,455 each. All five vehicles will be augmented with extended warranties and service plans. The extended warranty (costing $1,420 each) lasts five years or 75,000 miles with a zero (0) deductible and is a "bumper to bumper" warranty that covers virtually all vehicle components (e.g., drive train, air conditioning, etc.), excluding standard/regular maintenance. The extended service plan (costing $980 each) covers the standard/regular maintenance (i.e., oil changes, tire rotations, multi point inspections) and also lasts for 75,000 miles, with service every 5,000 miles. In total, these five vehicles will cost $184,885, including warranties, service plans, taxes, and fees. Additionally, they will be equipped with public safety vehicle- mounted gear (totaling an estimated $82,500) by the City approved vendor West Coast Lights & Sirens, as authorized by the City Council on July 7, 2015 (agenda item 13). Included in the City of West Covina's adopted FY 2015-16 budget is $93,146 in vehicle replacement funds (in account 367.80.7008.7170). Additional vehicle replacement funds totaling $8,764 are available to be appropriated, in order to fully cover the costs (including taxes, fees, warranties, service plans, and vehicle mounted gear) of two of the five vehicles. Federal asset forfeiture funding is available to fund the costs of the remaining three vehicles (totaling $165,475). When replaced, the old Crown Victoria sedans will be rotated to non-patrol uses, or auctioned. • Motorcycles: Just as patrol officers rely on their patrol vehicles, Traffic Officers rely on their specially equipped police motorcycles to conduct traffic enforcement. WCPD uses BMW police motorcycles—the current purchase price of these vehicles (excluding motorcycle-mounted equipment) is about $32,000 each, including taxes and fees. Additional equipment costs total an estimated $18,000. The Traffic Unit currently needs a total of four motorcycles—three for field traffic enforcement and one for training. Three motorcycles are currently being leased from RCA Leasing/Long Beach BMW—these three leases will conclude mid-year in FY 2015- 16. At the conclusion of the lease, the Police Department can purchase these three used motorcycles directly from Long Beach BMW for $7,390 each, plus taxes and fees, per the terms of the initial purchase contract. Staff recommends that the City Council appropriate $70,000 in federal asset forfeiture funds to purchase the three used motorcycles (which are still in excellent functional condition), and also to purchase and equip one new motorcycle through the competitive RFQ bid process. After the conclusion of the bid process, staff will submit another Agenda Item to the City Council to award the bid, and purchase the one new motorcycle from the selected vendor. • Armored Tactical "Bearcat" Vehicle: "BearCat" vehicles are commonly used by police agencies for emergency and tactical deployments. An industry standard, BearCat vehicles are built on a Ford F-350 truck chassis and powered by a V10 gasoline engine, are armored, and can be driven by any WCPD Officer. The BearCat will replace the 1963 "Peace Keeper" armored vehicle that the Department obtained as a surplus/used vehicle from the federal government. The Peace Keeper has served the Police Department well for over 15 years, but has become mechanically unreliable, exceptionally outdated, and unable to meet the Department's current emergency equipment and deployment needs. The BearCat is maneuverable, and can be used by Patrol Officers or SWAT Team members for emergencies, mutual aid situations, and training scenarios. This vehicle is considered to be a rescue vehicle, holding 10 to 12 personnel. The BearCat vehicle is only available from the manufacturer Lenco Armored Vehicles of Pittsfield, MA, who have submitted a price quote and sole source letter—see Attachment No. 3. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-333 (b), which states that bidding may be dispensed with when the commodity can be obtained from only one (1) vendor, staff recommends that the City Council authorize the purchase of an equipped Lenco Bearcat directly from Lenco Armored Vehicles for a total of $304,631, from account 117.31.3110.7170. • Law Enforcement Computer Technology Equipment and Services: Several types of purchases are needed to support the Police Department's computer operations. These purchases support the City Council's goals and objectives adopted in August 2014— specifically Objective 1.8 to improve WCSG program operations and rewrite the CAD/RMS software consistent with industry standards. While some of these purchases will entail a formal competitive bid procedure, others do not. The needed items include the following: o Mobile Data Computers (MDCs): The Mobile Data Computers (MDCs) that are inside police vehicles are a vital component of public safety operations: They provide the data and command link between dispatchers and field Officers; they provide access to external law enforcement databases; and they are tied into the Automated Vehicle Locator system for real-time response management. The useful lifespan of these machines is reduced by their constant use and harsh field environment. An increasing number of MDCs require repairs, and finding replacement parts is increasingly problematic, as they are of an older generation. Staff recommends that the City Council appropriate $325,000 to purchase an estimated 50 current generation MDCs. Pricing and specifications will be determined through the bid process. After the conclusion of the bid process, staff will submit another Agenda Item to the City Council to award the bid, and purchase these mobile computers from the selected vendor. o Continued Information Technology Services: The Police Department has contracted with Scientia Consulting Group for specialized police Information Technology (IT) services since 2012, using federal asset forfeiture funds. Scientia staff possess detailed knowledge and understanding of the West Covina Service Group infrastructure and needs, and come from law enforcement professions, each having successfully passed a government background investigation. On June 3, 2014 (item number 11), the City Council appropriated additional asset forfeiture funds and authorized the continuation of these specialized services. Since that time, Scientia staff provided invaluable services, successfully implementing a series of complex projects including a Virtual Desktop Infrastructure (VDI) storage solution, a new data backup system, improvements to security and encryption protocols as mandated by the federal Criminal Justice Information Services (CJIS) Security Policy, and other enhanced hardware and software solutions. The existing service purchase agreement with Scientia is nearing its end. It is vital to the ongoing computer operations of the WCSG and Police Department to continue these IT services with Scientia Consulting Group. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-330 (c), which states that professional services, including computer consultants, are exempt from bidding procedures, staff recommends that the City Council approve an Information Technology Infrastructure Service Agreement ("Agreement") for up to $150,000 with Scientia Consulting Group, for continued specialized police information technology services, from account 117.31.3119.6120, and authorize the Mayor to execute related documents—see Attachment No. 4. o Computer Consultant Services for CAD-RMS Rewrite Design: One of the City Council's goals and objectives (Objective 1.8) adopted in August 2014 is to improve WCSG program operations and rewrite the CAD/RMS software consistent with industry standards. To accomplish this, WCSG staff needs the expertise of a consultant/company with experience designing the architecture for the CAD/RMS rewrite. These computer consultant services will occur in two phases: First, the consultant will conduct a short-term on-site interface with WCSG staff, producing diagrams, technology recommendations, and draft project execution plans; Second, WCSG will begin implementing the plan, while the consultant provides ongoing support and modifications of the computer architecture plan, as required by changes in law, user regulations, etc. IDesign, Inc., specializes in software architecture for complex systems, and is a leader in this specialized field. IDesign has completed computer architecture for other CAD-RMS systems, air traffic control systems, high volume stock trading systems, and more. WCSG staff have interfaced with IDesign staff in the past, and rated their expertise and professionalism very highly. In accordance with Municipal Code Chapter 2, Article VII, Division 2, Sec. 2-330 (c), which states that professional services, including computer consultants, are exempt from bidding procedures, staff recommends that the City Council approve a computer infrastructure design agreement with IDesign, Inc., for the WCSG CAD-RMS rewrite, for $161,375 from account 117.31.3119.6120, and authorize the Mayor to execute the related agreements see Attachment No. 5. • Equipment and supplies: Equipment and supply items, totaling $221,000 are also needed. These supplies and equipment items have been identified as high priority needs, and improve many areas of the Department. These include the following items: o Vehicle-Mounted Cameras: Vehicle mounted cameras help reduce City liability by capturing a "true" visual recording of Police incidents. Current digital technology allows for efficient data transfer from vehicles. Staff recommends that the City Council appropriate $165,000 for approximately 11 vehicle mounted camera systems, with specifications and features to be detailed through the competitive RR? process. After the conclusion of the bid process, staff will submit another Agenda Item to the City Council to award the bid, and purchase the camera system from the recommended vendor. o Other Police Supplies: A range of other, smaller items, totaling an estimated $56,000, are also needed to support Police Department operations. These include furnishings for the Plaza Mall contact station, computer rack shelves for the WCSG server room, additional signage and lighting for the lobby and southeast exterior corner of the Police Station, and monitors to display CAD-RMS in the Police Station. FISCAL IMPACT: The West Covina Police Department received federal asset forfeiture funds stemming from successful law enforcement and prosecution efforts of narcotics cases, spearheaded by the SET team, such that there are sufficient monies available in the fund balance of Fund 117 for all of the items detailed above, totaling $1,397,481. Without these federal asset forfeiture funds, these unmet vehicle, service, equipment, and supply needs would become future Police Department budget requests, drawing on the City's General Fund. Thus, while these funds do not supplant existing budgeted funds, they provide significant savings of General Fund money and alleviate current and future strain on the City's fiscal resources while meeting unbudgeted Police Department needs. It is appropriate and allowable to use available federal asset forfeiture funds for these items. Dave Faulkner Chief of Police eIia Buhagiar Finance Director Prepared by: nnn Alex B. Houston Police Administrative Services Manager Reviewed/Approved by: Attachment No. 1: Attachment No. 2: Attachment No. 3: Attachment No. 4: Attachment No. 5: Price Quote from Wondries Fleet Group Purchasing Award Approval (RFQ EV-4452/contract 59642) from the City of Los Angeles Sole Source Letter and Price Quote from Lenco Armored Vehicles Information Technology Infrastructure Service Agreement from Scientia Computer Architecture Service Agreement from IDesign IW #) TOYOTA i-DDATEuk. NISSAN Attachment No. 1 Uloncirmv FLEET GROUP 1247 W. Main P.O. Bux 3850. AlhEimbra. CA 91803 026/457/5500 0287457-5593 Fax August 24, 2015 Mr. Alex Houston West Covina Police Dept. 1444 W. Garvey Ave, South West Covina, CA 91790 Delivery via Email Dear Mr. Houston, In response to your inquiry, we are pleased to submit the following for your consideration: Woridries Fleet Group will sell, service and deliver at West Covina, new/unused 2016 Police Interceptor Utilities responding to your requirement with the attached specifications for $ 31,602.00 plus State Sales Tax, and $8.75 tire tax (non-taxable). These vehicles are available under the Los Angeles City PO# 167029 (RFB EV-4452). Optional cost for rear air for Canine unit is 610.00. Recommend no additional charge tinted rear windows on Canine. The LA City contract reflects a vehicle cost of $45,124.21 each. The West Covina vehicle pricing reflects less equipment and option differences than what is in the LA specifications. Terms are net 30 days. Delivery is 75-90 days. Sincerely John Oviyach Wondries Fleet Group Attachment No. 2 DEPARTMENT OF GENERAL SERVICES - SUPPLY SERVICES DIVISION PURCHASING AWARD APPROVAL Date: 04/22/2015 Procurement Analyst: Connie Espinoza RFQ No.: EV-4452 Description: Vehicles, Specialty, Police 1 Annual Contract Awarded to: Wondries Fleet Group Phone No.: (213) 978-3178 Requisition No.: 0003074442/4376/4385 Contract w/Labor** - see below Vendor No.: 13413 One-Time Purchase Order Address: 1247 W Main Street Alhambra, CA 91801 Street City State Zip Code Contact Person: John Oviyach Telephone No.: (562) 618-0928 E-Mail Address: john.oviyach@verizon.net Est. (Annual) Amount: $ 15,000,000.00 Threshold Limit: $ or *Controller•s Max Limit: $ 150,000,0ft *For line item contracts: Controller's Max Limit shall be two 12) times the Estimated Award Amount times the number of renewals. No. of awards from RFQ: 1 Item #'s on This Award: 4 Department Recommendation Attached "Price Catalog" Contract: Li Yes L No Reason For Award: 1. Lowest Bidder and Complying with Specifications 9. Lowest Bidder Due to Application of 2. Lowest Bidder Complying with Specifications Local Business Preference > $150K 3. _ Lowest bidder as a Whole 9a. Amount of Price Preference: 4. _ Only Bidder and Complying with Specifications $ 5. tt Only Complete Bidder 10. Lowest Bidder due to Application of 6. Sole Source/ Negotiated Award (see Comments) Small Local Business Preference 7. One of Equally Low Bidders 10a. Amount of "SLB" Price Preference 8. Lowest Bidder Due to More Favorable $ Cash Discount Terms 11. Cooperative Purchase Arrangement i FOB Destination FOB Origin: Comments: Bidder Protest Submitted: E Yes H No If yes, attach explanation and related documents. REQUIREMENTS: APPROVAL: CONFLICT OF INTEREST? (Y_ • Conflict of Interest Certification • Affirmative Action — Uploaded Date: 06/30/14 Verifi Date: 06130/15 Insurance Required — Exp. Date Bond Required BIP Required • BIP Encouraged Recycled Contents Required • Recycled Contents Preferred Prevailing Wage Required Living Wage Ordinance Required • Equal Benefits Ordinance Required • Contractor Resp Ordinance Required Sweat Free Procurement/Code of Conduct • SDO Affidavit - Uploaded Date: 06/30/14 Verified Date: Municipal Lobbying Ordinance Certification Federal Grant Fund Certifications First Source Hiring Ordinance • ND/Equal Employment Practices — Uploaded Date: 06/30/14 Verified Date: 06/30/15 REV 11/14/12a -1- Procurement Supervisor Supply Services Manager I it471 Supply Services Manager II "FOR CONTRACTS w/LABOR, GO TO PAGE TWO State Paul tuosarieC_ Pnnl Narre ffescZr 74 Title city CONTRACT NO. City of Los Angeles, California EV-4452 Request for Quotation Signature Page 1. COMPLETE CONTRACT This entire RFQ or any item(s) thereof, shall become the contract upon its acceptance by the Purchasing Agent on behalf of the City of Los Angeles. The complete contract shall consist of The Notice of Award, The Notice Inviting quotes, the entire RFQ (including specifications) and Attachment A, or any item(s) thereof, this Signature Page, addenda, and when required, INSURANCE AND BOND(S). A Notice of Award will be furnished to the successful bidder identifying the item(s) to be furnished under this contract. 2. GOODS AND SERVICES TO BE PROVIDED BY THE SUPPLIER The Supplier agrees, upon acceptance of this offer by the City, to furnish the goods and services herein specified according to the terms and conditions as set forth herein. 3. AMOUNT TO BE PAID The City agrees to pay the Supplier for the goods or services in the manner described in the paragraph entitled "PAYMENTS" in Attachment A. 4. CHOICE OF ALTERNATIVE PROVISIONS; OPTIONS; NOTIFICATIONS When alternative provisions are requested, or options are offered, the Supplier will be notified as to which provision, or option, is being accepted at the same time that the Supplier is notified that it is the successful bidder. 5. DECLARATION OF NON-COLLUSION The undersigned certifies (or declares) under penalty of perjury that this RFQ is genuine and not a sham or collusive, or made in the interest or on behalf of any person, firm, or corporation not herein named; that the bidder has not directly or indirectly induced or solicited any bidder to put up a sham bid, or any other person, firm, or corporation to refrain from bidding, and that the bidder has not in any manner sought by collusion to secure to itself any advantage over other bidders. EXECUTED AT: Alhambra., CA ON THE /0 DAY OF Apri/ , 20 /5 (Supplier Compfete: / Ityi $ t Month 4-4040 k/on eteS /.140-te , p Firm Name: A- w Diewiri e5 ear &reap Phone: Mid 957 - 5-5112 Address: /2'/7 1,4) 4'14216 IAA A hi ir-A. C4- 91.9ei For contracts expected to exceed $90,000 (Including taxes, shipping, handling, and any other fees or charges), the Supplier must complete the bottom section of this p g lit ddltion to the section above. (Both signatures must conform to the signature methods below.) C arrie. ghoe- Print NarnaL4 Con4-r-o 1 ler Sign Name Title Approved Corporate Signature Methods a) Two signatures: One by Chairman of Board of Directors, President, or Vice President; and one by Secretary, Assistant Secretary, Chief Financial Officer, or Assistant Treasurer. b) One signature by Corporate designated individual together with properly attested resolution of Board of Directors authorizing person to sign on the company's behalf. CONTRACT CANNOT BE ISSUED UNLESS TI-US SIGNATURE PAGE IS COMPLETED PROPERLY. NOTARIZATION! Documents executed outside of the State of California must be sworn to and notarized below: County of In witness whereof the City of Los Angeles has caused this contract to be executed by the Purchasing Agent of said City, and said Supplier has executed this contract the day and year written below. TONY M. ROYSTER Purchasing Agent, City of Los Angeles By: Approved as to Form /.?"0 , .,, r State of Subscribed and sworn this MICHAEL N. FEUER cit .ttorrer day of , 20 €-------By:411110 Signature (Notary Seal) Name Date Depo y ity •iiiit Rev. 07/01/13A City of Los Angeles, California Contract City of Los Angeles Purchasing Agent 111 E 1ST STREET ROOM 110 LOS ANGELES CA 90012 Contract ID 59642 Contract Dates 04/3012015 to 04130/2017 Page 1 Rate Date PO Dale Vendor ID; 0000029823 VVONDRIES FLEET GRP 400 5 ATLANTIC AVE ALHAMBRA CA 91801 Description: Vehicles Specialty, PD Allow Multicurrency PO Contract Maximum 150,000,000.00 City of Los Angeles' vendors are required to have on file an approved Affirmative Action Plan and Certification. Contact Buyer at the City Purchasing Office at (213-485-3677) for information on this requirement. In order to receive payments from the City of Los Angeles, vendors must have a valid Business Tax Registration Certificate (BTRC) number. Contact the City Clerk's Tax and Permits Division (213-485-3916) for information on this requirement. All shipments, shipping papers, invoices and correspondence must be identified with the City of Los Angeles' Contract Purchase Order Number. Overshipments will not he accepted unless authorized by requestor prior to shipment. Terms and conditions of parent contract arc binding on its Contract Purchase Orders. Procurement Analyst: Kevin Thornton Phone Number: 213-928-9548 E-mail address: Kevin.Thornton@tacity.org Fax Number: 213-928-9511 Requirements Contract for: **Vehicles, Specialty, PD*" Award No. 59642 Payment Terms: Net 30 Days Delivery: 90-180 Days ARO RFQ No.:EV-4452 Renewal Options: 5 Option Date I = Option Date 2 = --/—/— Option Date 3 = --1--I— Options Granted: 0 Option Date 4 = —1--/— Option Date 5 = —1-1— You are hereby notified of the award of this contract with the City of Los Angeles in accordance with RFC/ Number EV-4452, to furnish the City's annual requirements for the items and/or services identified in this document. The entire RFQ (including Attachment A and specifications) or any items thereof, addendums, and general conditions comprise the contract, The Quotation document signed by the appropriate contractor and by duly authorized City officials is on file in the Purchasing Agents office, NOTE: SALES TAX WILL BE ADDED AT TIME OF ORDER. The following listed item(s) cover the only product(s) or service(s) approved for purchase under this contract. Products or services requested by the City and not listed in the contract require a separate City Purchase Order in order for the supplier to receive payment. SWORN TO AND SUBSCRIBED BEFORE ME, This 18th day of Anpist, 2015 TIMOTIrro. MAN A NOTARY PUBLICIN4 FOR Commission Exp.10/08/21 The State of Massachusetts/County of Berkshire Attachment No. 3 LEN. C1111 ARMORED Protecting Our Nation's DefenbersTm August 18, 2015 West Covina Police Department Attn: Sgt. Tony Cortina 1444 W. Garvey Ave. West Covina, CA 91790 Re: Lenco Sole Source for the Lenco BearCat6 Dear Sgt. Cortina, This letter is to inform you that Lenco Armored Vehicles is the Sole Source Manufacturer for the Lenco BearCat Armored SWAT Truck(s) or the equivalent. • We employ secret and proprietary processes in the design and manufacture of the Lenco BearCat to provide superior ballistic performance at a lighter weight than any competitive vehicles. • We employ a patented, zero gravity counter balanced roof hatch system which enhances operator safety and security. We have developed secret engineering processes to offer a turning radius of 17' 8", which is shorter than the overall length of the vehicle, thereby providing enhanced tactical maneuverability. • We employ secret and proprietary processes to modify the vehicle chassis to re-distribute the armor, chassis and occupant weights proportionately between the front & rear axles. • U.S. State Department Armor Level E designation. <See Attached> We are the only manufacturer, distributor, authorized dealer or supplier of this product or its equivalent. Sole Source References: St. Charles County Sheriffs New York State Police U.S. State Department Illinois State Police Los Angeles Police Dept. New Jersey State Police Sin erely, 44 rf{ A inard M. Light-Genefal Manager Captain David Todd Major David MeBeth DEAV, Ricky Motley Captain Robert Haley Lt. Mike Albanese Captain Bill Lundon 636-949 -3001 518-457-5936 703-644-3322 217-557-1278 213-972-2420 609-462-7183 TIMOTHY D. MANGUM NOTARY PUBLIC Commonwealth of Massachuseds My Commission Expires October 8, 2021 Designer and Manufacturer of Tactical Armored Security Vehicles 10 Betnr Industrial Drive • Pittsfield, MA 01201 • Tel (413) 443-7359 • Fax (413) 445-7865 www.LencoArtnor.corn e-mail: Info@LencoArmor.com JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION FOR THE ACQUISITION OF A NAME BRAND PRODUCT I. The Office of Acquisition Management is conducting this acquisition for 13 Armored Assault Vehicles, on behalf of the Bureau of Diplomatic Security, Defensive Pquipment/Armored Vehicle Division (DS/FSP/DEAV). 2. Nature and/or description of the action being approved. Purchase 13 armored assault vehicles that meet or exceed the Department of State (DoS) I .evel "E" ballistic specifications. 3. A description of the supplies or services required to meet the Department's needs. DS/PSP/DEAV has a requirement to acquire 13 armored assault vehicles for immediate deployment to Iraq and Afghanistan for security details. These vehicles must be armored to meet or exceed DoS Level "E" ballistic specifications. These vehicles must also have an armored gun turret mounted in the roof area of the vehicle. REQUIREMENTS I. MRAP Assault Vehicle with the following options: Diesel engine, export compliance, four wheel drive, Hutchinson VFI run flat system, rear auxiliary AC/Heating, intercom system, radio prep package, military cupola, gun mount for 2401.50 with pedestal, advance BMI MRP gunners seat, floor jack 3.5 ton, IvIRAP upgrade package to include upgraded wheels and tires, and V-shaped hull, blast seats (8 seats). 2. IVIRAP Assault Vehicle with VIP package and the following options: Diesel engine, export compliance, Back up Camera System, electric power, heated mirrors, high capacity rear AC/heating system, high intensity driving lights, intercom system, radio prep package, run-flat tires, spare tire with run-flat, high gloss exterior paint, V-shaped hull, blast seat (6 seats), and emergency escape hatch. 3. WRAP Assault Vehicle with the following options: Diesel engine, export compliance, four wheel drive, Hutchinson VFI run flat system, rear auxiliary AC/Heating, intercom system, radio prep package, MEDEVAC (4) litter pkg., floor jack 3.5 ton, MRAP upgrade package to include upgraded wheels and tires, and V-shaoed hull, blast seats (2). 4. FOB delivery to Springfield, VA. Page 1 of 4 5. An identification of the statutory authority permitting other than full and open competition. IDS/IP/SPC/WMD requests that this purchase fall under the authority of 41 USC 253(c)(1), FAR 6.304 (a)(2) and 8.405-6 (b)(1) (USC 501), for the purchase or a name brand product manufactured by 1,ENCO Armored Vehicles, who is the only manufacturer of the Lenco BearCat, product number BC55001 a commercial item in accordance with FAR Part 12. 6. A demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited. Presently, the DoS IDIQ contracts do not have these types of assault vehicles as line items. However, Lenco has been producing this vehicle for local and state agencies for years. In addition, Lenco fully understands DoS ballistic specifications and their experience with various armor systems will expedite the delivery of these vehicles in Iraq and Afghanistan. 7. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. A notice will be publicized in accordance with 5.102(a)(6) on or about September 13, 2010 on GSA eBuy.com . 8. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. Per FAR 8.404(d), supplies offered on the schedule are listed at fixed prices. GSA has already determined the prices of supplies under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing. 9. A description of the market survey conducted and the results or a statement of the reasons a market survey was not conducted. DS via AQM has issued five (5) different IDIQ contracts for the procurement of armored vehicles and none of these vendors produce this type of armored vehicle. DS has in the past purchased the M1114 HUMVEE from DOD vendors to satisfy our requirement for ballistic Level E specifications with a turret on the roof. Unfortunately, the military M114 HUMVEE has been discontinued. The replacement vehicle for M1114 is being produced by American General Corporation and this new armored vehicle is limited to only carrying five (5) personnel. DS has a minimum requitement to carry at least six (6) personnel at one time. The Lenco Bearcat VIP is capable of carrying six (6) personnel and the Lenco Bearcat is capable of carrying up to eight (8) personnel plus a position for the gunner in the turret. During our review of this new armored vehicle for DOD, the cost is double to the present cost of a Lenco Bearcat. Page 2 of 4 10. Any other facts supporting the use nt- other than full and open competition. The Lenco BearCat model contains highly specialized features which are specifically designed to accommodate our security operational needs in Iraq and Afghanistan and no other source can meet these requirements without substantial additional program costs and time, which will severely impact our mission. Lenco has developed and integrated mission critical applications and equipment essential to meeting our security goals in Iraq and Afghanistan. Lenco possesses and utilizes proprietary equipment and designs to manufacture and outfit these armored vehicles necessary for this mission and is the only known source that can meet the standardized logistic, training and program requirements for DS. These armored vehicles from Lenco have been through a tremendous amount of ballistic and blast testing to validate the armoring systems being deployed on these vehicles. These tests have been completed by the Department of Defense for the US Army and US Navy, H.P White Laboratory, an independent lab for numerous US Government Agencies and commercial armoring companies and the Department of State. By completing this order in a timely matter, DS will be able to ship these armored vehicles to Iraq and Afghanistan to support our security requirements and possibly save lives. 11. A listing of sources, if any, that expressed, in writing, an interest in the acquisition. The Armored Group expressed an interest in writing in response to GSA eBuy posting #RFQ516305. 12., A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The barrier to full competition is the brand name specific requirements identified in paragraphs two (2) and three (3) above. Lenco Armored Vehicles is the only vendor that produces this type of vehicle and fully understands DOS and NU specifications for armoring these vehicles. At this time, the barrier cannot be removed unless there is a change in the operational needs identified by DS/PSP/DEAV contained herein. If operational needs or technological changes occur then this barrier may be lifted in the future. DS/PSP/DEAV and A/LIvitAQM will continue to seek ways of removing any barriers to competition on future related acquisitions. Page 3 of 4 APPROVED BY, CERTIFICATIONS I certify that this justification is accurate and contains complete data necessary to support the recommendation for other than full and open competition_ September 23, 2010 Date N:11110: Ricky J. Motley Title: AV Program Manager ,Datc Name: Title: I certify that this sullmission is accurate, and that it contains complete information necessary to enable other cincials to make an !nformed recommendation for approval or disapproval. — Date Name; Title: APPROVALS Contracting Activity Competition Advocate (Required for actions exceeding $550,000 but not exceeding $11,500,000) Page 4 of 4 ARMORED LENCO ,= Quotation 12668B Protecting Okr Nation's 134enbers'" 10 Betnr Industrial Drive — Pittsfield, MA 01201 Quotation Date: 09/01/2015 PH (413) 443-7359 FAX (413) 445-7865 Tax ID #: 04-2719777 WELCA West Covina Police Department 1444 W. Garvey Avenue West Covina, CA 91790 Estimated Completion Date: Approx 210+ Days ARO F.O.B.: West Covina, CA Ship Via: Common Carrier Payment Terms: Lenco GSA Contract GS-07F-0390M 1122 Program Lenco Does Not Collect Tax or Register Vehicles with D114V Inspection & Acceptance: At Leneo Factory, Pittsfield, MA Terms and Conditions: Net 30 Days -- Transfer of Certificate of Origin Upon Receipt of Payment Item: Product # Commercial Net Price Lenco BearCat (4WD, Rotating Hatch; Counter Balanced) BC55003 $207,698.00 $198,793.00 V10 Gasoline Engine is Standard US State Department Armor Level E Options: (2) Rear Area Electric Fans Non-Contract 313.00 300.00 AC-DC Power Inverter 3,600 Watt w/ Battery Charge Feature BCPINV36 5,686.00 5,442.00 Back up Camera System with Monitor BCBU 2,400.00 2,297.00 High Intensity Driving Lights in Front Bumper BCHIDL 1,400.00 1,340.00 Intercom System; Inside to Outside BCINT 3,000.00 2,871.00 Radio Prep Package, (1) Max (2) BCINSRA 525.00 502.00 Rear A/C-Heating System: Auxiliary BCAC 2,000.00 1,914,00 (3) Roof Mounted Remote Control Spot Lights BCRCSL 3,150.00 3,012.00 Whelen Liberty LED Light Bar (Installed) BCLED 3,055.00 2,924.00 Run-Flat Tires for 22.5" Tire and Wheel Upgrade BCRF225 7,400.00 7,083.00 22.5" Tire and Wheel Upgrade BCTWU 7,940.00 7,600.00 4-Door Configuration (Rear Flip Seats Included) BC4DR 8,210.00 7,858.00 (2) Ballistic Skip Round Shields BCBSRS 3,000.00 2,872.00 Front Mounted Receiver with Ram Post and Plate BCFRAM 4,700.00 4,499.00 Hydraulic Ram Upgrade BCHYDRAM 5,725.00 5,480.00 Gas Injector Unit BCGIU 7,147.00 6,841.00 Rear Tow Hitch Receiver BCRTOWR 1,050.00 1,005.00 Bedrock Paint BCPJ 2,150.00 2,058.00 Advanced BMI MRAP Gunner's Seat BCBMIGS 1.550.00 1484.00 Net Savings $11,924 $278,099.00 $266,175.00 FOB West Covina, CA $14,500.00 Total Cost Due Lenco (1) BearCat FOB West Covina, CA $280,675.00 LA County Tax 9% Not Collected by Lenco $23,955.75 Total Cost to West Covina PD, Lenco BearCat, County Tax, FOB West Covina, CA $304,630.75 Specifications Subject to Change PROPRIETARY Page 1 of 2 LENCO Quotation 12668B Quotation Date: 09/01/2015 Tax ID #: 04-2719777 ARMORED Protecting Our Natio Defelibers'" 10 Betnr Industrial Drive Pittsfield, MA 01201 PH (413) 443-7359 — FAX (413) 445-7865 WARNING: Information Subject to Export Control Laws The technical data in this document is restricted by the Arms Export Control Act (Title 22, U,S.C„ Sec 2751, et seq.) or the Export Administration Act of 1979, as amended, Title 50, U.S.C., App. 2401 et seq. and which may not be exported, released or disclosed to non-U.S. persons (i.e. persons who are not U.S. citizens or lawful permanent residents ["green card" holders]) inside or outside the United States, without first obtaining an export license. Violations of these export laws are sttbect to severe civil, criminal and administrative penalties. THE WRITTEN APPROVAL OF THE DIRECTORATE OF US DEFENSE TRADE CONTROLS AND LENCO INDUSTRIES, INC. MUST BE OBTAINED BEFORE RESELLING, TRANSFERRING, TRAN5SHIPING, OR DISPOSING OF A DEFENSE ARTICLE TO ANY END USER, END USE OR DESTINATION OTHER THAN AS STATED ON THIS LENCO QUOTE OR THE SHIPPER'S EXPORT DECLARATION IN CASES WHERE AN EXEMPTION IS CLAIMED UNDER THIS SUBCHAPTER ITAR 123,9(A), WE ARE PLEASED TO SUBMIT THE ABOVE QUOTATION FOR YOUR CONSIDERATION. SHOULD YOU PLACE AN ORDER, BE ASSURED IT WILL RECEIVE OUR PROMPT ATTENTION. THIS QUOTATION IS VALID FOR 30 DAYS. THEREAFTER, IT IS SUBJECT TO CHANGE WITHOUT NOTICE ACCEPTANCE OF PROPOSAL — The above prices ore satisfactory and arc hereby accepted. You ore authorized ro do the work as specified. Payment will be made as outlined -1113.e LENCO INDUSTRIES INC. Authorized Signature Authorized Signature poted lAlawete, Please sign and return James J. Massery Thank You Page 2 of 2 Attachment No. 4 INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICE AGREEMENT This INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICE AGREEMENT (this "Agreement") is made and entered into as of September 15, 2015 (the "Effective Date"), by and between SCIENTIA CONSULTING GROUP, LLC, a California corporation ("Scientia"), and THE CITY OF WEST COVINA, THROUGH ITS POLICE DEPARTMENT, an entity organized under the laws of the State of California ("West Covina Police ") having its primary operations located at 1444 West Garvey Avenue, West Covina, California. Scientia and West Covina Police are referred to individually as "Party" and collectively as the "Parties." BACKGROUND West Covina Police desires to obtain from Scientia, and Scientia desires to provide to West Covina Police, certain information technology infrastructure support services during the term of, and subject to the terms and conditions of, this Agreement. NOW, THEREFORE, in consideration of the mutual covenants herein and for good and valuable consideration, receipt of which is hereby acknowledged, the Parties agree as follows, AGREEMENT 1. RIGHTS AND LICENSES 1.1 Designated Software and Materials. West Covina Police hereby grants to Scientia, a limited right to install, execute, copy, modify, display, and otherwise use all Designated Software and all West Covina Police Materials, solely in order to perform IT Services under this Agreement if and only to the extent allowed by the license agreements relating to the Supported Software. 1.2 West Covina Police Hardware. West Covina Police hereby grants to Scientia, a limited right to use the West Covina Police Hardware solely in order to perform .1.17 Services under this Agreement. 1.3 Required Consents. Prior to Scientia obtaining access to any Supported Software or Supported Hardware, Scientia will obtain all consents, approvals, and agreements that may be required from third parties for the grant of rights under Sections 1.1 and 1.2 and for Scicntia to perform the IT Services; provided however, that West Covina Police will obtain any Required Consents applicable to West Covina Police Hardware and West Covina Police Materials. If Scientia does not obtain any Required Consent or West Covina Police does not obtain any West Covina Police Required Consent, the Parties will meet to mutually agree upon alternative approaches to permit Scientia to perform the IT Services. 1.4 Costs of Assignment and Consents. West Covina Police shall pay any and all third party fees or costs associated with Sections 1.3 hereof other than with respect to West Covina Police Materials, for which West Covina Police shall pay collectively, the Assignment and Consent Costs, 2. SERVICES 2.1 Base Services. Subject to the terms and conditions of this Agreement, during the Term. Scientia will provide to West Covina Police, and West Covina Police will obtain from Scientia, Services for West Covina Police. Services include: (1) consulting on IT matters to include mobile computing, network structure and design, infrastructure efficiency, server design and deployment, IT best practices, software deployment, and overall infrastructure management; (2) physical and remote maintenance of critical infrastructure items to include: server maintenance and troubleshooting..., hardware installation and configuration, compliance with State and Federal security and encryption protocols, network routing, ensuring data backup strategies are implements, software installation, configuration and maintenance, and other related tasks as agreed. During the Term, and for so long as Scientia is not in breach of any material term or provision contained herein (including, without limitation, the Service Levels), or, if such breach exists, so long as Scientia cures such breach within a reasonable time after notice thereof from West Covina Police, Scientia will be the exclusive provider for the types of services. 2.2 Subcontracting. West Covina Police understands that before and after the date of this Agreement, Scientia may have contracted, and may in the future contract, with third parties to provide services in connection with all or any portion of the IT Services to be provided under this Agreement. Scieatia reserves the right to continue to contract with third parties to provide the foregoing or to enter into new contractual relationships for any of the foregoing; provided that no such subcontracting shall relieve Scientia from its obligations hereunder. 3. WEST COVINA POLICE OBLIGATIONS 3.1 Scientia Policies. West Covina Police will comply with Scientia's reasonable policies, procedures, requirements, and restrictions with respect to West Covina Police's use of IT Services. 3.2 Cooperation. In order to enable Scientia to perform the IT Services, West Covina Police and Seientia will provide such mutual cooperation and assistance as reasonably requested by the other Party. Such cooperation and assistance shall include providing to Scientia in a timely manner answers to questions, information, technical consultation, and, where applicable, acceptances. West Covina Police's Main Technical Contact will be the West Covina Police principal point of contact for obtaining the foregoing. Seientia shall be excused from performing its obligations and meeting any Service Levels to the extent Scientia's performance is actually prevented or hindered by: West Covina Police 's nonperformance; the failure by West Covina Police personnel or any West Covina Police third-party contractor to adequately perform its tasks related to the TT Services; unreasonable, untimely, inaccurate, or incomplete information from West Covina Police; the failure of any Hardware or Software that is not the fault of Scientia; or the occurrence of an event described in Section 12.3; West Covina Police agrees that, in connection with .the foregoing, Scientia shall be entitled to an extension of time to complete the affected IT Services and, if applicable, an adjustment of the applicable fees. 3.4 New Software and Hardware. Any new or additional Software or Hardware that Scientia may require from time to time to perform. the IT Services will be purchased, leased, or licensed by West Covina Police in its own name. Upon request, Scientia will process such purchases in a manner consistent with the way in which such purchases were processed within Scientia immediately prior to the Effective Date. 4. COORDINATION AND COMMUNICATION 4.1 Main Technical Contact. West Covina Police and Scientia will each appoint a single "Main technical Contact" who will serve as the primary point of contact for the other Party for matters related to this Agreement. Either Party may replace its Services Manager with an individual of comparable qualifications and experience by notifying the other Party of such new appointment. 4.2 Service Performance Reviews, The Main Technical Contact's will meet formally as needed and informally as needed in order to review Service Levels, address new requirements, review outstanding issues and new issues and other items as needed. Meetings will be scheduled based on the availability of both Services Managers, 4.3 Agreement Review. The Parties will meet, formally review and, to the extent mutually agreed upon by the Parties, update the terms, pricing, conditions and other details of this Agreement so that the on-going business requirements of Scientia and West Covina Police are met. 5. PRICING & PAYMENTS 5.1 Fees for Base Services. West Covina Police shall pay a rate of $90,00 per hour for all services as follows: Onsite support shall be charged per use at a minimum of one hour, with subsequent usage rounded up at fifteen (15) minutes increments thereafter, at the discretion of Scientia. Telephone support shall be charged per use at a minimum of fifteen (15) minutes per session, and rounded up at fifteen (15) minutes increments thereafter, at the discretion of Scientia; Email support shall be charged per use at a minimum of fifteen (15) minutes, and rounded up at fifteen (15) minutes increments thereafter, at the discretion of Scientia. The maximum amount of this agreement/purchase totals $150,000. 5.2 Billing. West Covina Police will be billed on a weekly basis. Statements are payable within forty five (45) days of receipt. Failure to pay within that period is, at the option of Scientia, grounds for termination of the service provided hereunder. Additionally, Scientia may, at its election, impose interest on any delinquent balance at the rate of ten percent (10%) per annum. West Covina Police agrees to pay any actual collection costs and/or attorney's fees that Scientia incurs in collecting any amounts due from West Covina Police that have not been paid within sixty (60) days of the statement date. Notwithstanding the precedin.g sentence and subject to the mutual agreement of the Parties, the Base Services Fee may be adjusted to reflect a change in costs, if any, resulting from the elimination of obsolete services or systems, or the replacement of such services or systems, and the related modification, if any, to the Base Services. 5.3 Fees for Additional Services, For each tnonth during which Scientia provides and West Covina Police agrees to purchase additional services, West Covina Police will pay Scientia at the rate/price as negotiated for the specific project. 5.4 Reimbursement of Expenses. In addition to the Hourly Services Fee, West Covina Police will reimburse Scientia for any expenses of the types and any other expenses that the Parties reasonably and mutually agree should have been incurred by West Covina Police in connection with, and only to the extent necessary for, performance of IT Services. West Covina Police shall reimburse Scientia for expenses incurred under the following terms and conditions; (1) Scientia shall notify West Covina Police of the expenditure in advance and with reasonable notice and (2) West Covina Police shall approve the expenditure in advance. Reimbursement costs are subject to the same terms and conditions as outlined in section 7.1. 5.5 Taxes. The fees and charges of Scientia under this Agreement exclude all applicable income, franchise, excise, sales. use, gross receipts, value added, goods and services, property, or similar tax imposed by any federal, state, or local taxing authority and West Covina Police will be responsible for payment of all such Taxes and any related penalties and interest, arising from the payment of fees and charges to Seientia. West Covina Police will indemnify and hold Scientia harmless from any and all damages, losses, liabilities, demands, awards, assessments, costs, penalties, and expenses, arising directly or indirectly from West Covina Police's failure to collect or pay any of the Taxes required to be collected or paid by West Covina Police. 5.6 Invoice Records. Scienti.a will maintain complete and accurate records of the fees billed to West Covina Police in accordance with generally accepted accounting principles. Scientia will maintain such records applicable to fees for a period of thirty-six (36) months after West Covina Police is invoiced for such fees. 6. CONFIDENTIALITY AND SECURITY OBLIGATIONS. 6.1 Privacy — West Covina Police. West Covina Police shall maintain in confidence, and shall not disclose to any third party, unless directed to do so in writing by Scientia, or designee, all data and materials furnished by Scientia for IT services hereunder, and West Covina Police agrees that such information shall not be used by West Covina Police for any purposes other than the provision of processing services pursuant to this Agreement. West Covina Police's obligation under this Paragraph is limited to diligent compliance with the same methods and procedures that West Covina Police uses to protect its own confidential information from disclosure. West Covina Police shall furnish Client Agency with a description of such restrictions upon Client Agency's request. 6.2 Privacy — Scientia. Scientia shall maintain in confidence, and shall not disclose to any third party, unless directed to do so in writing by West Covina Police, or designee, all data and materials furnished by West Covina Police for IT services hereunder, and Scientia agrees that such information shall not he used by Scientia for any purposes other than the provision of processing services pursuant to this Agreement. Scientia's obligation under this Paragraph is limited to diligent compliance with the same methods and procedures that Scientia uses to protect its own confidential information from disclosure. Scientia shall furnish West Covina Police with a description of such restrictions upon West Covina Police's request. 6.3 Security. The parties mutually agree that to the extent allowed by law, none of its o flicers or employees shall use or reveal any research or statistical information furnished by any person and identifiable to any specific private person for any purpose other than the purpose for which it was obtained. Copies of such information shall not, without the prior written consent of the person furnishing such information, be admitted as evidence or used for any purpose in any action, suit or other judicial or administrative proceedings, unless ordered by a court of competent jurisdiction. Client Agency shall be notified immediately upon receipt of any such order of court, pertaining to production of such information, 7. ACCESS TO COMPUTER SYSTEMS. 7.1 Access and Conformity. If either Party is given access to any equipment, computer, software, network, electronic files, or electronic data storage system owned or controlled by the other Party, the Party provided access shall limit such access and use solely to provide or receive. as applicable, IT Services under this Agreement and shall not access or attempt to access any equipment, computer, software, network, electronic files, or electronic data storage system, other than those specifically required to provide or receive, as applicable, the IT Services. Each Party shall limit such access to those individuals with a requirement to have such access in connection with this Agreement, shall advise the other Party in writing of the name of each such person who will be granted such access, and shall strictly follow all security rules and procedures of the other Party for use of that Party's electronic resources. All user identification numbers and passwords disclosed to a Party by the other Party and any nonpublic information of a Party obtained by the other Party as a result of their access to and use of any equipment, computers, software, networks, electronic files, and electronic data storage systems owned or controlled by the disclosing Party, shall be deemed to be, and shall be treated as confidential. Each Party agrees to cooperate with the other Party in the investigation of any apparent unauthorized access by the first Party to any equipment, computer, software, network, clean-room, electronic file, or electronic data storage systems owned or controlled by the other Party, or any apparent unauthorized release of nonpublic information by the first party's employees. Further, Scientia agrees that any persons employed by Scientia who will have physical access with any CLETS equipment or information, including its affiliates and subcontractors, have satisfied the requirements of the California Department of Justice — cLETs Policies, Practices and Procedures, section 1.9.2, regarding adequate background checks. As used in this section, physical access includes access accomplished by means of a remote connection. 8. LIMITATIONS OF LIABILITY 8.1 Waiver. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY LOSS OF PROFIT, INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OCCURRING. 9. REPRESENTATIONS AND WARRANTIES AND LIMITATIONS. 9.1 DISCLAIMER. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS SECTION 11, THE IT SERVICES PROVIDED UNDER THIS AGREEMENT ARE PROVIDED "AS IS." EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS SECTION, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES UNDER THIS AGREEMENT, AND EACH PARTY DISCLAIMS ANY AND ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. 9.2 Each party represents that it has the requisite corporate authority to enter into this Agreement and to grant the rights granted herein, and that there are no outstanding rights, agreements, grants, encumbrances, obligations or restrictions that would prevent such party from performing under the terms of this Agreement. 9.3 Each party represents that it will comply with all applicable federal, state and local laws and regulations in the performance of its obligations hereunder. 9.4 Scientia will perform the IT Services in a manner consistent with the way in which the IT Services were provided within Scientia immediately prior to the Effective Date. 10. INDEMNIFICATION. 10.1 Indemnification. Subject to the limitations set out herein each party shall indemnify and hold harmless the other party from and against claims, losses, damages, liabilities, demands, and lawsuits to the extent they arise from, or are alleged to arise from, negligent acts solely in connection with a party's performance (or failure to perform) under this Agreement or a party's use of, or operation of, the Product(s) sold, installed, and maintained under this Agreement. This indemnity extends solely to claims and lawsuits for personal injury, death, or destruction of tangible property Notwithstanding any other provision in this Agreement, West Covina Police shall defend, indemnify and hold harmless Scientia and its officers, employees and agents from and against any claims, losses, damages, liabilities, demands and lawsuits, of whatsoever kind or nature, including, without limitation, patent and/or copyright infringement claims arising out of or relating to West Covina Police's ownership and/or ability or right to sell or lease the software and database which are the subject of this Agreement. 11. TERM AND TERMINATION 11.1 Termination for Cause. Each Party may terminate this Agreement in its entirety upon written notice if the other Party breaches any material term of this Agreement and fails to cure such breach within thirty (30) days after receipt by the breaching Party of written notice from the non-breaching Party describing such breach. 12. GENERAL 12.2 Governing Law/Miscellaneous. This agreement shall be governed by the laws of the State of California. It may be amended only in writing signed by both parties. No waiver of any term or condition of this Agreement shall be a continuing waiver thereof 12.3 Force Majeure. Neither Party will be liable for delays or failure to perform the Services if due to any cause or conditions beyond its reasonable control, including delays or failures due to acts of God, natural disasters, acts of civil or military authority, fire, flood, earthquake, strikes, wars, or utility disruptions (shortage of power). 12.4 Additional Terms and Conditions. Technical support will be provided to the main technical contact person designated by West Covina Police. Additional users may be added as required. i. Scientia offers no guarantee that it will be able to fix any particular issue. Scientia will employ all reasonable efforts to do so in the time allowed. Engineers will be assigned based on required skills. ii. West Covina Police can use the time for hardware and/or software technical assistance. iii. Technical support will be available by phone during Scientia's normal 9 AM to 5 PM (PST) business hours. After hours calls will be returned within a 2 hour period. iv. Scientia guarantees that it will commence service on West Covina Police's request the same business day where feasible. However, depending upon the nature of the support requests, Scientia cannot guarantee a time of resolution. v. Scientia assumes no liability whatsoever for proposed resolutions or fixes. vi. If requested, Scientia will provide a log outlining use of service hours upon completion of each billing cycle. 12.5 Entire Agreement; Amendment; Waivers. This Agreement, together with all Exhibits hereto, constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the Party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 12.6 Invalidity. In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, is, for any reason, held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument and the invalid, illegal or unenforceable provision shall be deemed modified so as to be valid, legal and enforceable to the maximum extent allowed under applicable law. The Parties have executed this Agreement as of the Effective Date. CITY OF WEST COVINA, SC1ENTIA CONSULTING, LLC. POLICE DEPARTMENT By: Name: Fredrick Sykes Title: Mayor, City of West Covina By: Name: Kimberly Hall Barlow Title: City Attorney By: Name: Philip Danie Title: Chief Executive Officer Attachment No. 5 1Design, Inc 205. Santa Cruz Ave, Ste. 300 Los Gatos, CA 95030 September 8, 2015 Matt Robold West Covina Service Group 1444 W Garvey Ave West Covina, CA 91790 Re: IDesign, Inc. Professional Services Letter Agreement Dear Mr. RoboId: This letter sets forth the terms and conditions of the agreement ("Agreement") by which !Design, Inc., a California corporation, ("IDesign") will provide professional services to West Covina Service Group, a California corporation ("Client"). The particular services to be provided and the fees for such services are set forth in the table below: Deliverables & Specifications Schedule Location(s) Fees 5 days onsite Architecture Consulting with Jarkko Kemppainen • Review current project requirements • Suggest architecture along the IDesign Method methodology, providing design diagrams of static and dynamic aspects of architecture • Produce and deliver some 40-60 design diagrams depicting the various design aspects of the system, including definition of services and logical tiers, allocation to assemblies, run-time processes, identity management, security authentication and authorization, transaction management, thread synchronization and code-access security policies. All diagrams will be compatible with the !Design Method notations. Sept 28- Oct 2, 2015 West Covina, CA $ 28,875 Optional: Remote work, authoring comprehensive architecture report 2 Days remote $ 11,000 Estimated Travel and Dining Expense Only actual expenses will be billed Sept 28- Oct 2, 2015 $ 3,000 Page 1 of 2 9/8/15 Date: Project Design Consulting with Jarkko Kernppainen • Review system architecture and planning assumptions needed to produce project design along the IDesign Method. • Produce normal solution which includes the project plan, planned earned value chart, staffing distribution, cost breakdown and risk measurement. October 26-30, 2015 West Covina, CA $ 30,000 Optional: Remote work, authoring comprehensive project design report 3 Days remote $ 13,500 Estimated Travel and Dining Expense Only actual expenses will be billed October 26-30, 2015 $ 3,000 Total Due Invoice Net 45 $ 64,875 without optional reports Client understands and acknowledges that the work to be performed by IDesign requires a collaborative process between IDesign and Client. As such, Client agrees to assign its lead developer and architect to work closely with IDesign throughout the process of IDesign performing the services. All other terms and conditions of the Agreement are set forth in the "IDesign, Inc. Software Architecture Terms and Conditions," incorporated herein by reference. If you have any questions about any of the foregoing, please let me know. Otherwise, please countersign this letter where indicated below. Please know that your business is very much appreciated. Sincerely, Juval Lowy, President, !Design, Inc. IT IS SO AGREED. West Covina Service Group !Design, Inc By: Name: Title: Date: Page 2 of 2 iDesign, Inc. Software Architecture Consulting Terms and Conditions Deliverables, Specifications, Schedule & Location • The specific deliverables ("Deliverables") and the specifications for such Deliverables ("Specifications") are as set forth in the IDesign Professional Services Letter Agreement with Client incorporated by reference herein. • The schedule ("Schedule") and location ("Location") for providing the Deliverables and related services are as set forth in the IDesign Professional Services Letter Agreement with Client. Fees & Expenses • Client shall pay all fees and expenses, specified in the 'Design Professional Services Letter Agreement and herein, Net forty-five (45) days from the date of each IDesign invoice unless otherwise specified in the 'Design Professional Services Letter Agreement. Client shall pay all expenses related to the provision of services including travel, lodging and meal expenses, courier and mailing expenses, and third-party fees and expenses. All air travel shall be business class, or if unavailable, first class. • All fees and expenses are nonrefundable and non-cancelable. Client may reschedule services and deliverables to be provided to Client, to a mutually convenient and agreeable time, not exceeding six (6) months from the originally schedule date, provided that Client provides at least two (2) weeks prior written notice, given in the manner set forth below, of its request to reschedule such services and deliverables from the originally schedule date(s). Client shall reimburse Design for any and all expenses incurred by 'Design as a result of such rescheduling, as shown on 'Design invoice(s). Any and all invoiced amount(s) which are not paid when due shall bear interest at the rate of one and one-half percent (1%%) per month, compounded monthly, or the maximum allowable rate, whichever is less. At its sole option and without further notice or in any way affecting its rights, IDesign may stop performance of its work if any invoice remains unpaid past the due date. • All fees are exclusive of taxes. Client shall be responsible for all taxes, levies, and assessments, excepting taxes based on the net income of IDesign, and shall, upon receipt of notice from 'Design, promptly pay, or if !Design has paid any such amounts, reimburse IDesign for all such taxes, levies, or assessments. Grant of License • No pre-existing "Intellectual Properly" (as defined below) is assigned under this Agreement by one party to the other party, either expressly or by implication. If or to the extent the Deliverables contain any new Intellectual Property rights or other proprietary rights of 'Design, IDesign hereby grants to Client, subject to the terms and conditions of this Agreement, a perpetual, nonexclusive, transferable license to use and commercially exploit the Deliverables and to copy, distribute, publically perform, publically display and make derivative works of the Deliverables. If or to the extent the Deliverables contain any new Intellectual Property rights or other proprietary rights of Client, Client hereby grants to IDesign a perpetual, nonexclusive, transferable license to use and commercially exploit the Deliverables and to copy, distribute, publically perform, publically display and make derivative works of the Deliverables. Subject to the foregoing stated in this paragraph, IDesign shall have all ownership rights in and full title to the Deliverables and to all Intellectual Property embodied therein. • As used herein, "Intellectual Property" means know-how, patent rights, copyrights, trademarks, trade secrets, moral rights, and all other intellectual property rights recognized in any country or jurisdiction in the world, and including without limitation all intangible legal rights or interests evidenced by or embodied in (i) any idea, design, concept, technique, invention, means, methods, discovery, or improvement, regardless of patentability, but including without limitation patents, patent rights, patent applications, trade secrets, and know-how; (ii) any work of authorship, regardless of the availability of copyright protection, but including without limitation all copyrights and any moral rights recognized by law; (iii) all trademarks, service marks, trade names, and (iv) any other similar rights, in each case on a worldwide basis. As used herein, "patent(s)" includes all inventions, means, methods, know how, invention disclosures, provisional applications, applications, letters patent and all foreign counterparts Page 1 of 5 t r Client Design Revised 9/8/24:115 WCPC and foreign equivalents of same, and any and all divisions, continuations, continuations-in-part, revisions, renewals, reissues, extensions, and like of the foregoing. !DESIGN LIMITED WARRANTY; DISCLAIMER OF IMPLIED WARRANTIES • 1Design warrants, for the benefit only of Client, that the Deliverables shall substantially conform to the Specifications, if any, specified in the [Design Professional Services Letter Agreement. Such limited warranty shall apply only for a period of one year after completion of the services. • As the exclusive remedy of Client for any nonconformity in the Deliverables for which IDesign is responsible, IDesign shall utilize IDesign's commercially reasonable efforts to correct or cure such nonconformity. However, IDesign shall not be obligated to correct, cure, or otherwise remedy any nonconformity in the Deliverables if (i) Client, or any other third party, has made any updates or revisions of, modifications to, or performed any maintenance on, the Deliverables or any underlying third-party software utilized by Client, without !Design's prior written authorization; (ii) the Deliverables have been misused or damaged in any respect other than by personnel of IDesign; or (iii) IDesign has not been notified, in the manner set forth below, of the existence and nature of such nonconformity promptly upon its discovery. • EXCEPT FOR THE EXPRESS WARRANTY STATED HEREIN, IDESIGN DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES ON IDESIGN'S SERVICES AND DELIVERABLES TO BE FURNISHED HEREUNDER, INCLUDING WITHOUT LIMITATION ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT AND TITLE. ANY IMPLIED WARRANTIES THAT MAY BE IMPOSED BY LAW AND ARE NOT OTHERWISE DISCLAIMED BY THE PRECEDING SENTENCE ARE LIMITED TO THE TERMS AND DURATION OF [DESIGN'S EXPRESS LIMITED WARRANTY. ANY LIABILITY OF [DESIGN WITH RESPECT TO !DESIGN'S SERVICES, THE DELIVERABLES OR RELATED DOCUMENTATION OR THE PERFORMANCE THEREOF UNDER ANY WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY IS LIMITED EXCLUSIVELY TO RE-DESIGN SERVICES SUBJECT TO THE SAME SCOPE OF WORK AS DESCRIBED IN THE DELIVERABLES AND SPECIFICATIONS AND TERMS AND CONDITIONS SET FORTH HEREIN. • EXCEPT AS MAY BE EXPRESSLY PROVIDED FOR HEREIN, [DESIGN'S SERVICES AND DELIVERABLES ARE PROVIDED "AS IS." FURTHER, !DESIGN DOES NOT WARRANT, GUARANTEE, OR MAKE ANY REPRESENTATIONS REGARDING THE USE, OR THE RESULTS OF THE USE, OF IDESIGN'S SERVICES OR OF THE DELIVERABLES IN TERMS OF CORRECTNESS, ACCURACY, RELIABILITY, CURRENTNESS, OR OTHERWISE. !DESIGN DOES NOT WARRANT THAT !DESIGN'S SERVICES OR THE DELIVERABLES WILL SATISFY CLIENT'S PARTICULAR PURPOSE OR REQUIREMENTS OR THAT THE OPERATION OF ANY HARDWARE, SOFTWARE AND/OR DOCUMENTATION RESULTING FROM THE SERVICES OR DELIVERABLES WILL BE UNINTERRUPTED OR ERROR FREE. THE ENTIRE RISK AS TO THE RESULTS AND USE OF THE !DESIGN'S SERVICES AND DELIVERABLES IS ASSUMED BY CLIENT. CLIENT ACKNOWLEDGES, UNDERSTANDS AND AGREES THAT !DESIGN IS NOT RESPONSIBLE FOR AND WILL HAVE NO LIABILITY FOR ANY DELIVERABLES OR OTHER ITEMS OR ANY SERVICES PROVIDED BY ANY PERSON OTHER THAN IDES ION. THIS SECTION SETS FORTH CLIENT'S SOLE AND EXCLUSIVE REMEDY FOR ANY EXPRESS, IMPLIED OR STATUTORY WARRANTIES HEREUNDER. • SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF WARRANTIES, SO THE ABOVE LIMITATION OR EXCLUSION MAY NOT APPLY, PROVIDED HOWEVER SUCH LIMITATIONS AND EXCLUSIONS SHALL APPLY TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW. LIMITATION OF LIABILITY • IDESIGN'S LIABILITY ARISING OUT OF THIS AGREEMENT OR PROVISION OF THE SERVICES SHALL BE LIMITED TO THE LOWER OF TEN THOUSAND DOLLARS ($10,000.00) OR THE AMOUNT PAID BY THE CLIENT FOR !DESIGN'S SERVICES (EXCLUDING ANY REIMBURSEMENT FOR EXPENSES) UNDER EACH PROFESSIONAL SERVICES LETTER AGREEMENT ENTERED INTO PURSUANT TO THESE SOFTWARE ARCHITECTURE TERMS AND CONDITIONS. IN NO EVENT SHALL [DESIGN BE LIABLE TO CLIENT OR ANY OTHER PERSON OR ENTITY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, Page 2 of 5 Client 'Design Revlsed 9/8/2015 VVCPC UNFORESEEABLE OR INDIRECT DAMAGES OR LOSSES (INCLUDING, WITHOUT LIMITATION, LOSS OF ANTICIPATED PROFITS, LOSS OF BUSINESS OR REVENUE, LOSS OF USE, COST OF PROCUREMENT OF SUBSTITUTE SERVICES, TECHNOLOGY OR GOODS, LOST EMPLOYEE TIME, LOSS OF OPPORTUNITY, OR LOST OPERATIONAL SAVINGS OR COSTS), HOWEVER CAUSED OR ARISING, ON ANY THEORY OF LIABILITY (INCLUDING WITHOUT LIMITATION ANY ACTIONS OR CLAIMS ARISING IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, PRODUCT LIABILITY, STRICT LIABILITY, OR OTHERWISE), AND WHETHER OR NOT 'DESIGN HAS BEEN ADVISED OF OR AWARE OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. 'DESIGN EXPRESSLY DISCLAIMS, AND CLIENT AGREES, THAT 'DESIGN SHALL HAVE NO LIABILITY OF ANY KIND FOR ANY THIRD PARTY PRODUCT OR SERVICE SUPPLIED OR UTILIZED BY CLIENT. IDESIGN RELIES ON CLIENT'S REPRESENTATION THAT IT IS DULY AUTHORIZED OR LICENSED TO USE ANY UNDERLYING THIRD-PARTY SOFTWARE SUPPLIED OR UTILIZED BY IDESIGN IN THE PERFORMANCE OF ITS DUTIES UNDER THIS AGREEMENT. • EACH PARTY RECOGNIZES AND AGREES THAT THE LIABILITY AND REMEDY LIMITATIONS IN THIS AGREEMENT ARE MATERIALLY BARGAINED FOR ELEMENTS OF THIS AGREEMENT AND THAT THEY HAVE BEEN TAKEN INTO ACCOUNT AND REFLECTED IN DETERMINING THE CONSIDERATION TO BE GIVEN BY EACH PARTY UNDER THIS AGREEMENT AND IN THE DECISION BY EACH PARTY TO ENTER INTO THIS AGREEMENT. Client Representations, Warranties & Indemnity • Client represents and warrants that the services and resulting Deliverables it is contracting 'Design to perform shall not infringe any third party Intellectual Property right or otherwise misappropriate any trade secret of any third party. • Client shall indemnify, defend at its sole cost, and hold harmless, IDesign and its directors, officers, employees, contractors and agents, against all claims, allegations, demands, lawsuits, judgments, costs, attorney fees, and liability of every nature arising from, related to, or alleged to result from (i) Client's operations, (ii) Client's performance, nonperformance, or breach of this Agreement, (iii) infringement of any Intellectual Property right or the misappropriation of any trade secret arising from, related to, or alleged to result from the services to be rendered hereunder, the Deliverables or any related documentation, or any product or service derived therefrom, (iv) the negligence, gross negligence and/or intentional misconduct of Client or any of its officers employees, sub-contractors, subsidiaries, representatives, agents or suppliers, (v) any act or omission of the Client, or any of its officers employees, sub-contractors, subsidiaries, representatives, agents or suppliers, (vi) any claim that any of Client's products or any product or service derived from, or based upon, !Design's services to be rendered hereunder, the Deliverables or any related documentation has caused or resulted in any (a) bodily injury, sickness, disease or death, (b) injury or destruction to tangible or intangible property (including computer programs and data) or any loss of use resulting there from, or (c) any violation of any statute, ordinance, Client's third-party software license, or regulation. Term and Termination • This Agreement shall commence on the date of the execution of the Professional Services Letter Agreement by all parties and continue until terminated by mutual agreement of the parties. Either party may terminate this Agreement at any time in the event of a material breach of the terms hereof by the other party if such party shall fail to cure such material breach within fifteen (15) days of receipt of written notice thereof. • All licenses hereunder shall be perpetual, provided however, all licenses granted by 'Design to Client hereunder shall continue provided Client has performed all of its obligations under this Agreement. Client's obligations to pay the fees and expenses under this Agreement, its representations, warranties and indemnity obligations hereunder shall survive termination of this Agreement for any reason. Miscellaneous Page 3 of 5 Client IDesign Revised W8/2015 VVCPC • Force Majeure. Neither party shall be liable to the other party for non-performance of or delay in performing its obligations hereunder to the extent that performance is rendered impossible by matters beyond the reasonable control of the nor-performing party, including but not limited to riot, war, acts of God, earthquake, fire, flood, governmental acts or orders or restrictions, failure of suppliers, or any other reason to the extent that the failure to perform is beyond the reasonable control of the non-performing party. • No Agency. Each party is an independent contractor with respect to the other, and nothing in this Agreement will be deemed to place the parties in the relationship of employer-employee, principal-agent, partners or joint venturers. !Design, in furnishing services to Client, is providing services as an independent contractor. IDesign does not undertake by this Agreement or otherwise to perform or assume any duty or obligation of Client, whether by regulation or contract. • Confidentiality. Client shall not, at any time, disclose or disseminate any of its trade secrets or trade secrets of any third party to IDesign without first identifying such trade secrets in writing in the manner set forth below, and giving !Design the opportunity to decline to receive such trade secrets without [Design becoming informed of the content of such trade secrets, • Multiple Counterparts. This Agreement may be executed in several counterparts, all of which taken together shall constitute one single Agreement between the parties. • Section Headings. The headings used herein are for reference and convenience only, and shall not enter into the interpretation hereof. • Required Approvals. Where agreement, approval, acceptance, or consent by either party is required by any provision of this Agreement, such action shall not be unreasonably delayed or withheld. • No Waiver. Any waiver, modification, amendment or extension of this Agreement, including any oral modification supported by new consideration, must be reduced to writing and executed by both parties in order to be effective. Unless otherwise agreed in writing, all terms and conditions of this Agreement shall extend to and be a part of any such waiver, modification, amendment or extension of this Agreement. The parties further agree that the provisions of this section may not be waived except as set forth in this Agreement. The failure of a party to insist in any one or more instances upon strict performance of any of the terms of this Agreement shall not be construed as a waiver or relinquishment for the future of such terms, but the same shall continue and remain in full force and effect. Unless stated otherwise, all remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available to either party at law, in equity, or otherwise. • Authority of !Design. IDesign has the sole right and obligation to supervise, manage, contract, direct, procure, perform, or cause to be performed all work to be performed by IDesign hereunder unless otherwise provided herein. • Governing Law and Enforcement of Agreement. This Agreement shall be governed in all respects by the laws of the State of California, and where applicable the United States, (excluding principles of conflicts of law), as if this Agreement were executed in and to be wholly performed in the State of California. Any judicial action with respect to this Agreement shall be filed in the federal or state courts located in Santa Clara County, California, and each of the parties hereto irrevocably consent and submit to the personal jurisdiction and venue of the federal and state courts located in Santa Clara County, California. The parties hereby irrevocably waive any and all claims and defenses either might otherwise have in any action or proceeding in any of such courts based upon any alleged lack of personal jurisdiction, improper venue, forum non conveniens or any similar claim or defense. In all disputes arising in connection with or out of this Agreement or to otherwise enforce or seek damages for breach of this Agreement, and/or relating to the subject matter hereof, the prevailing party shall be entitled to recover, in addition to any other relief awarded, its costs and expenses incurred in any such proceeding including, without limitation, its reasonable fees for attorneys, expert witnesses, court costs and all such other costs and expenses incurred from enforcing and/or collecting on any judgment or court order. • Sales tax or Usage Tax. In the event that usage tax, sales tax, service taxes, administrative taxes, transaction specific fees or value added tax is applicable to the services rendered by !Design to Client, Client will pay those additional taxes directly to the relevant authority be it federal, state, or municipal as required by law. If IDesign is required by law to collect and remit those taxes for imposing authority, then Client will pay those taxes as specified in the !Design invoice, Client acknowledges its commitment for such payment even retroactively after Page 4 of 5 IDesign Revised 91812015 VVCPC services are rendered, even if such sales tax or usage laws were not in effect during the time of invoicing. Client will pay all resulting penalties and compounding penalties from retroactive impositions of such taxes. • Entire Agreement. The Professional Services Letter Agreement, together with these IDesign, Inc. Software Architecture Terms and Conditions, constitute and contain the entire agreement, and all understandings and representations by and between the parties and supersedes all prior negotiations, understandings, correspondence, representations and agreements with respect to the same subject matter between the parties. The parties acknowledge and agree that neither of them has made any representation with respect to the subject matter of this Agreement or any representations inducing the execution and delivery of this Agreement, except such representations as are specifically set forth in this Agreement, and each of the parties acknowledges that such party has relied on such party's own judgment in entering into the Agreement. The parties further acknowledge that any statements or representations that may have previously been made by either of them to the other are void and of no effect and that neither of them has relied thereon in connection with such party's dealings with the other. Neither party may be bound by any definition, condition, representation or waiver other than as expressly stated in this Agreement or as subsequently set forth in writing signed by the parties hereto. It is the intent of the parties that this Agreement be integrated. • Notices. Any notice or other communication to be given hereunder shall be in writing and given by first class mail (postage prepaid) and sent registered-mail return receipt requested, or via U.S. Priority Mail with Delivery confirmation (with all tracking and delivery retained by sender and provided to addressee upon request), or facsimile with transmission confirmation (with a copy concurrently mailed as set forth above), electronic mail (with a copy concurrently mailed as set forth above) or reputable overnight/international courier service (e.g. Federal Express, DHL, UPS) with delivery confirmation. The date of delivery shall be deemed the date on which such notice is given, if such notice or other communication is received by the addressee within three (3) business days of date said notice was deposited with USPS or courier service. If the notice is not so received within three days by addressee, then the date on which such notice is given shall be the date of actual receipt by addressee. Notice hereunder shall be directed to a party at the address for such party as set forth in this Agreement. Either party may change its address for notice purposes hereof an by written notice to the other party given in the manner as set forth above. • Assignment. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and shall not be assigned by either party without the prior written consent of the other party. In the event of any assignment, the transferor or assignor shall remain obligated to perform its own obligations and, in addition, shall be jointly and severally liable for the proper performance of the obligations of the transferee or assignee pursuant to this Agreement. • Interpretation. Each party further represents and warrants to the other party that each party and all respective counsel have had an adequate opportunity to review and revise this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. If any provision of this Agreement will be held by the court to be void, invalid or inoperative, then such provision shall be enforced to the extent permissible and the remaining provisions of this Agreement shall not be affected. • Severability. If any term on provision hereof is held to be illegal, invalid or unenforceable for any reason by any duly constituted court, agency or tribunal, such illegality, invalidity or unenforceability shall not affect the validity or the remainder of this Agreement. Page 5 of 5 Client [Design Revised 9/0/2015 WCPC IDesign, Inc 20 S. Santa Cruz Ave, Ste. 300 Los Gatos, CA 95030 September 8, 2015 Matt RoboId West Covina Service Group 1444W Garvey Ave West Covina, CA 91790 Re: [Design, Inc. Professional Services Letter Agreement Dear Mr. Robold: This letter sets forth the terms and conditions of the agreement ("Agreement") by which IDesign, inc., a California corporation, ("IDesign") will provide professional services to West Covina Service Group, a California corporation ("Client"). The particular services to be provided and the fees for such services are set forth in the table below: Deliverables & Specifications Schedule Location(s) Fees Virtual Architect support with Jarkko October- Remote 160 hrs @ Kemppainen December 2015 $450/h • Allocated on a schedule to be agreed upon by West Covina Service Group and Design. • Weekly scheduling details can be negotiated between West Covina Service Group and Jarkko Kemppainen Goals: • Retain ongoing architectural oversight for the project. • Assist team in detailed design and any additional project design needed. • Help build and review the project time cost curve. • Provide remote technical leadership • Mentoring the team to establish architecture as a practice and on the implementation of the [Design Method. • Review project development plan • Recommend best practices for quality assurance (not quality control) Method: • Feedback, advice, mentoring and guidance to be provided over phone Page 1 of 2 IT IS SO AGREED. West Covina Service Group By: Name: Title: [Design, Inc or video calls, onsite, or over written correspondence. • Client will be bill monthly on hours used. Client can added additional blocks of hours as needed during the project. Total Due Invoice Net 45 $ 72,000 Client understands and acknowledges that the work to be performed by IDesign requires a collaborative process between IDesign and Client. As such, Client agrees to assign its lead developer and architect to work closely with IDesign throughout the process of [Design performing the services. All other terms and conditions of the Agreement are set forth in the "IDesign, Inc. Software Architecture Terms and Conditions," incorporated herein by reference. If you have any questions about any of the foregoing, please let me know. Otherwise, please countersign this letter where indicated below. Please know that your business is very much appreciated. Sincerely, Juval Lowy, President, IDesign, Inc. Date: Date: Page 2 of 2 Reviewed/Approved by: Delfmo "Clfrfici" Cons Public Works Direct City of West Covina Memorandum AGENDA ITEM NO. 11 DATE September 15, 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Delfino "Chino" Consunji, P.E. Public Works Director/City Engineer SUBJECT: RELEASE OF FAITHFUL PERFORMANCE AND LABOR AND MATERIAL BONDS FOR PRECISE PLAN NO. 13-01 LOCATION: 122 AND 131 NORTH LANG AVENUE RECOMMENDATION: It is recommended that the City Council accept all on-site and off-site improvements for Precise Plan No. 13-01 (Orange Medical Plaza) and authorize the release of Faithful Performance and Labor and Material Bonds No. 4389617 by SureTec Insurance Company in the amounts of $21,000 and $18,000, respectively. DISCUSSION: On April 23, 2013, Cottage Development, Inc. applied to convert a 14,450 square-foot warehouse/office building to a medical office facility at 122 and 131 North Lang Avenue and was approved by the Planning Commission. On September 3, 2013, Cottage Development, Inc. entered into an Improvement Agreement with the City for the required improvements in accordance with the Planning Commission's conditions of approval for the development. A form of security was required to be posted to guarantee construction of the required improvements to the satisfaction of the City Engineer. Cottage Development, Inc. posted a Faithful Performance Bond in the amount of $21,000 and a Labor and Material Bond in the amount of $18,000 to guarantee completion of the improvements. All improvements have been completed in accordance with the Improvement Agreement and to the satisfaction of the City Engineer. As such, Cottage Development, Inc. is requesting the release of the bonds. ALTERNATIVES: Since all improvements have been completed satisfactorily, there is no alternative but to release the bonds. FISCAL IMPACT: City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 12 FROM: Tom Mauk DATE September 15, 2015 City Manager BY: Nikole Bresciani Community Services Director SUBJECT: RESOLUTION APPLYING FOR THE CPRS HEALTHY PLAY MATCHING GRANT FOR CAMERON PARK INCLUSIVE PLAYGROUND RECOMMENDATION: It is recommended that the City council take the following actions: 1. Adopt the following resolution, committing to match funds provided by California Park and Recreation Society (CPRS), Playcore and Gametime to build a new inclusive playground at Cameron Park: RESOLUTION NO. 2015-70 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA COMMITTING THE USE OF PARK DEDICATION FUNDS FOR THE CONSTRUCTION OF A NEW INCLUSIVE PLAYGROUND AT CAMERON PARK; and 2. Appropriate $220,000 of Park Development Fees from Fund 174 for the construction of a new inclusive playground at Cameron Park. BACKGROUND: CPRS is partnering with Playcore and Gametime to promote play and health across California through state-wide training and an action grant. The CPRS Healthy Play Matching Grant would provide for necessary playground improvements at Cameron Park. The proposed inclusive playground costs approximately $400,000 and the grant would match dollar for dollar. The funds must be used for a new inclusive playground at Cameron Park as stated in the grant application. The Community and Senior Services Commission has chosen the pirate themed inclusive playground design and Cameron Park as the ideal location for this project (Attachment No. 1). DISCUSSION: City staff has been seeking grant opportunities from government agencies, non-profit groups, etc. for the necessary funding to construct the new inclusive playground. An inclusive playground typically costs more to install due to the size for ADA requirements and ramping for wheelchair accessibility; the City does not currently have an inclusive playground which allows typical children to play alongside children with special needs. City staff has received confirmation from CPRS, Playcore and Gametime that the City of West Covina is eligible to submit this project for consideration for the CPRS Healthy Play Matching Grant by October 1, 2015. In order to apply or the funds, the City of West Covina needs to commit to utilizing grant funds for the new inclusive playground at Cameron Park and provide the remaining funds needed to complete the new inclusive playground project (Attachment No. 2). It is important to note that grant funding for parks and recreation projects and programs have become very scarce and highly competitive. Most grants require cities to provide significant matching funds in order to receive funding, with projects being funded in lower income communities or in communities looking to build new parks. Rarely are funds available for re- building of existing play spaces or for inclusive playground construction. FISCAL IMPACT: The initial quote from Innovative Playgrounds, Inc. was over $400,000; unfortunately we cannot utilize that vendor if applying for this grant program as the funds are in the form of a vendor credit for product from Playcore and Gametime. If the grant submission is successful, the project will be funded utilizing $200,000 in funds from the CPRS Healthy Play Matching Grant, with the remaining balance of up to $220,000 to be paid by the City of West Covina. City staff would recommend the remaining balance be paid utilizing Park Development Fees from new housing projects. With the potential need of up to $220,000 of City funds (Park Development Fees) for the new inclusive playground at Cameron Park, it is estimated that there would still be sufficient funds to complete the Orangewood Soccer Complex. The Park Development Fee Fund 174 has the following funding activity: Beginning Fund Balance $2,411.78 FY 14/15 Revenue $810,907.01 FY 14/15 Expenditures - FY 15/16 Beginning Fund Balance $813,318.79 FY 15/16 Estimated Revenue $229,950.00 FY 15/16 Budgeted Expenditures $790,000.00 FY 15/16 Estimated Fund Balance $253,268.79 Reviewed and Approved by: Reviewed and Approved by: /-) Christa Buhagiar Finance Director hino Corisunji Public Works Dii Attachments: It is important to note that the City Council had previously dedicated all new Park Development Fees to the Orangewood Soccer Complex. Adoption of this resolution will change the priority of up to $220,000 in Park Development Funds to be dedicated for the Cameron Park inclusive playground, with all remaining funds going to the Orangewood Soccer Complex. As playground equipment grants are not readily available, City staff is recommending the approval of a portion of the Park Development Fees be dedicated to the Cameron Park Project, in order to secure the CPRS Healthy Play Matching Grant. Prepared by,: AvecA-AL Nikole Bresciani Community Services Director Attachment No. 1 — Pirate Themed Playground Rendering Attachment No. 2 — Resolution h n o votive PLAYGROUNDS CO. LLC City of West Covina Cameron Park Proposal # 513-86368-1 May 05, 2015 Attachment No. 2 RESOLUTION NO. 2015-70 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA COMMITTING THE USE OF PARK DEDICATION FUNDS FOR THE CONSTRUCTION OF A NEW INCLUSIVE PLAYGROUND AT CAMERON PARK. WHEREAS, At the September 15, 2015, City Council meeting, the City Council approved a partnership with California Park and Recreation Society (CPRS), Playcore and Gametime to make improvements at Cameron Park; WHEREAS, the City Council has approved utilizing matching funds to build a new inclusive pirate themed playground at Cameron Park; and WHEREAS, CPRS, Playcore and Gametime have promoted the CPRS Healthy Play Matching Grant for the construction of the new playground at Cameron Park, conditional on the City's commitment to pledge the remaining funds needed to construct the new playground. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA DOES RESOLVE AS FOLLOWS: SECTION 1. The West Covina City Council does hereby commit the use of Park Dedication Funds to match the CPRS Healthy Play Matching Grant funds provided by CPRS, Playcore and Gametime. •SECTION 2. That the City Clerk shall certify to the adoption of this resolution and shall transmit a certified copy to CPRS, Playcore and Gametime. Approved and adopted this 15th day of September, 2015. Fredrick Sykes Mayor ATTEST: Nickolas S. Lewis City Clerk I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of West Covina at a regular meeting thereof held on September 15, 2015, by the following vote of the Council: AYES: NOES: ABSTAIN: ABSENT: Nickolas S. Lewis City Clerk APPROVED AS TO FORM: Kimberly Barlow City Attorney City of West Covina Memorandum AGENDA ITEM NO. 13 DATE September 15,2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Jeff Anderson Planning Director SUBJECT: CONSIDERATION OF ADOPTION OF IMPACT FEES RECOMMENDATION: It is recommended that the City Council consider the Development Impact Fee Study completed by Economic and Planning Systems, Inc. (EPS) and determine if it is appropriate to adopt a resolution to initiate a Code Amendment to establish standards for a development impact fee program. BACKGROUND: On January 21, 2014, Councilmember Sykes requested that the City consider implementing Impact Fees for Public Safety (Police and Fire). The City of West Covina has not studied or adopted impact fees in the past. A Request for Proposals (RFP) was released on April 21, 2014 to ten consulting firms that have experience in preparing economic analysis such as Impact Fee studies. The RFP closed on May 27, 2014. Proposals were received from 2 firms. On September 2, 2014 the City Council awarded the bid in the amount of $43,700 to Economic and Planning Systems, Inc. (EPS) to complete a Development Impact Fee Study for Police, Fire, Parks and Recreation, City Administration and Public Works facilities. The City Council authorized the Mayor to execute an agreement with BPS to provide consulting services associated with preparing a study to determine appropriate impact fees. Staff began meeting with representatives of EPS in January of 2015. EPS met with members of each department to develop a facilities list. These meetings included Police, Fire, Community Services, City Manager's Office, Public Works and Planning. Based on input from staff, BPS completed the study. The Development Impact Fee Study fulfills the requirements of the Mitigation Fee Act (Government Code Sections 66000-66008), the law governing the imposition and administration of impact fees. Section 66001 of the Mitigation Fee Act provides that in any action establishing, increasing, or imposing a fee as a condition of approval of a development project by a local agency, the local agency shall do all of the following: • Identify the purpose of the fee • Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified and that identification may be made by reference to a capital improvement plan, an applicable general or specific plan, or other public documents that identify the public facilities. Z:NProposal_Request forlImpact Fee Study\ CC Meeting 9.15.151CCStaff Report.doex Development Impact Fee Study September 15, 2015 —Page 2 • Determine how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed; and • Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed. The impact fee studies identify the maximum fee, or cap, that can justifiably be imposed for each impact on new development. The City Council may set the fee at any level up to the maximum fee. DISCUSSION: Impact fees are one-time fees on new development and used by the City to cover costs of capital equipment and infrastructure required to serve new growth. However, impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. The City of West Covina Development Impact Fee Study has been completed. The Study is organized in the following manner • Chapter 1 — Introduction and Results. This chapter discusses the legal context, summarizes the steps of the study, and provides the maximum fee schedule. (Impact Fee Study Pages 1-7) • Chapter 2 — Development Forecasts and Service Population. Includes discussion on development capacity, growth estimates and forecast. The Market Context Report, completed by FIR & A as part of the General Plan Update, was utilized to estimate future development. (Impact Fee Study Pages 8-12) • Chapter 3 — Nexus Findings and Capital Cost Estimates. Identify capital facility needs and determine the cost of facilities required to serve new development. Capital facility needs were determined by staff from Police, Fire, Community Services, City Manager's Office, Public Works and Planning. For each of the facilities studied, the Capital Improvement Plan was utilized to assist in preparing a list of capital facilities and equipment that will be needed over a 20-year period. (Impact Fee Study Pages 13-28) • Chapter 4 — Development Impact Fee Calculation by Land Use. Presents the capital improvement cost allocation between new and existing development, as well as between land uses, and provides the maximum fee by land use. A major part of the Impact Fee Study was to determine the cost of capital facilities that will be required over the next 20 years. Staff members for Police, Fire, Community Services, City Manager's Office, Public Works and Planning determined the capital facilities that will be required and whether a cost assessment had been completed indicating the cost for the capital facilities. It should be noted that the City did not commence any cost assessments as part of the Impact Fee Study. The City utilized existing assessments from public safety (Police and Fire) based on their ZAProposal_Request forlImpact Fee Study\CC Meeting 9.15.151CCStaffReport.docx Development Impact Fee Study September 15, 2015 —Page 3 knowledge of capital equipment unit costs as well as estimates from the adopted Capital Improvement Program for all the departments, The Impact Fee Study does not include NPDES (National Pollutant Discharge Elimination System) costs as development impact fees. The City is currently contracting with a consultant to complete an assessment of costs associated with NPDES. For new development projects, the developer will be required to comply with the City's low impact development ordinance to retain runoff onsite to comply with the City's NPDES permit. Additional fees may ultimately be proposed for the NPDES costs upon completion of the assessment. Following the completion of the capital equipment cost list, the consultant completed calculations to determine a maximum impact fee. EPS calculated a total cost over the 20 year period for each category of facilities. The following chart provides information on the sum of costs by category. Note that the Potential Fee Funded column is 5.6 percent of the Total 20 Year Investment as based on the growth projections, there is an estimated growth of 5.6 percent. The Other Funding column then is the portion of the capital facilities costs that must be paid from funding sources other than Impact Fees. 20-Year Capital Improvement Costs and Potential Fee Funding Potential Total 20 Year Average Fee Other Item Investment Annual Funded Funding 5.6% 94.4% Police Capital Facilities Fire Capital Facilties Parks Capital Facilities City Administrative Capital Facilities Public Works Capital Facilities Total Capital Facilities Investment $24,248,323 $1,212,416 $1,357,000 $22,892,000 $29,538,493 $1,476,925 $1,653,000 $27,886,000 $72,857,815 $3,642,891 $4,076,000 $68,782,000 $4,261,000 $213,050 $238,000 $4,023,000 $2,149,280 $107,464 $120,000 $2,029,000 $133,054,911 $6,652,746 $7,444,000 $125,612,000 Source: City of West Covina; Economic & Planning Systems, Inc. Based on the Potential Fee Funded Column, the following chart indicates the division of the 5,6 percent between single-family residential, multi-family residential, and work space (new commercial, office, and industrial). Z:\ProposalRequest forlImpact Fee Study\ CC Meeting 9.15.151CCStaff Report.docx Development Impact Fee Study September 15, 2015 Page 4 20-Year Capital Cost Allocations and Maximum Development Impact Fees by Land Use Fee Funded Capital Facilities Cost Allocation Max. Development Impact Fees Single Family Single Max. Pot. (SF) SF Att./ Workspace Total Fanily (SF) SF Alt/ Workspace Capital Facility Fee Funded Detached Multi Family Per Sq. Ft. Detached Multi Family Per Sq. Ft 14.5% 72.7% 12.7% 100% 300 2,100 685,000 Police Capital Facilities $1,357,000 $197,408 Fire Capital Facilties $1,653,000 $240,469 Parks Capital Facilities $4,076,000 $592,953 City AdrrinistratIve Capital Facilities $238,000 $34,623 Public Works Capital Fealties $120,000 $17,467 Total $7,444,000 $1,082,910 $987,042 $172,549 $1,367,000 $668 $470 $0.25 $1202344 $210,187 $1,653,000 $802 $573 $0.31 $2,964,764 $518,283 $4,076,000 $1,977 $1,412 $0.76 $173,114 $30,263 $238,000 $115 $82.44 $0.04 $87,285 $15,259 $120,000 $56 $41.56 $0.02 $6,414,649 $946,541 $7,444,000 $3,610 $2,678 $1.38 Source: City of West Covina; Economic & Planning Systems, Inc. The final chart provides the maximum development impact fee that could be charged by the City based on the analysis in the Study. The numbers are derived from the last three columns on the chart above (20-Year Capital Cost Allocations and Maximum Development Impact Fees by Land Use) with the addition of a 2 percent administrative cost added to the total cost. Maximum Development Impact Fees by Land Use with Administrative Costs Max. Development Impact Fees Single Family (SF) SF Att./ Workspace Capital Facility Detached Multi Family (Per Sq.Ft.) Police Capital Facilities $671 $479 $0.26 Fire Capital Facilties $818 $584 $0.31 Parks Capital Facilities $2,016 $1,440 $0.77 City Administrative Capital Facilities $118 $84 $0.05 Public Works Capital Facilities $59 $42 $0.02 Total $3,682 $2,630 $1.41 (1) Includes 2 percent administrative cost add-on. Source: City of West Covina; Economic & Planning Systems, Inc. Therefore the Development Impact Fee Study determined, that based on the capital facilities and infrastructure assessments, and the growth projections, the maximum fee that could be charged for ZAFroposal_Request forlImpact Fee Study\CC Meeting 9.15.151CCStaff Report.docx Development Impact Fee Study September 15, 2015 —Page 5 all impacts combined is: single-family detached residences, $3,682 per unit; multi-family residences, $2,630 per unit; and workspace, $1.41 per square foot. Current Park Dedication Fees The City of West Covina currently has a Park Dedication requirement in the Subdivision section of the Municipal Code (WCMC 20-40). The Municipal Code requires the dedication of park land at a rate of .3 acres for every 1,000 residents of the proposed subdivision. The Code allows an in- lieu fee to be paid when a park dedication does not occur. The Engineering Division calculates the fee. The Code requires that the fee be based on the fair market value of the land that would have been dedicated. For single-family residential developments, the fee is $10,950 per unit (based on 3.35 residents per unit). For The Colony, under construction by Lennar, the fee was $6,140 per unit (based on 2.35 residents per unit). The Colony is the only multi-family residential development that has occurred in recent years. San Gabriel Valley Comparisons Concurrent with the study, EPS also produced a memorandum titled "City of West Covina Development Impact Fee Comparison" to determine what other nearby cities have adopted development impact fees. Based on that study, the following cities in or adjacent to the San Gabriel Valley have fees. San Gabriel (adopted 2004) Alhambra (adopted 2013) Rosemead (adopted 2015) Pasadena (adopted 2007) South Pasadena (adopted 2008) Monterey Park (adopted 1987) Temple City (adopted 2014) Whittier (adopted in 2013) Burbank (adopted 2004) Glendale (adopted 2014) Claremont (adopted 2015) All but one of the cities surveyed have adopted fees since 2004 and most of the cities have adopted fees since 2010. The Comparison explains that it is common across California for cities to have park fees (whether a Quimby fee or a mitigation fee or both). All but one of the surveyed cities (Temple City) have adopted park fees. Of the total eleven cities surveyed, five have public safety fees, two have public/government facilities fees (called City Administrative fees in the Study) and three have library fees. The analysis provides a comparison of the maximum impact fees identified by the Fee Study with existing fees in the surrounding cities. The comparison included the existing Park Dedication Fees. The addition of the new parks capital facilities fee would add about $2,000 per unit in parks fees, increasing the total parks development fees to about $13,000 per single-family unit. That fee is higher than all the other cities in the comparison with the exception of Pasadena and Glendale, The Public Safety capital facilities fee (combined Police and Fire) would require $1,489 per single- family unit, which is higher than the other cities in the survey with the exception of Monterey Park. Z:\Proposal_Request forlImpact Fee Study\CC Meeting 9.15.151CCStaffReport.docx Development Impact Fee Study September 15, 2015 —Page 6 The remaining capital facility fees included in the Impact Fee Study are modest. These include Public Works and City Administration with a combined fee of $177, which is well below the other cities surveyed. Conclusion The completed Development Impact Fee Study provides the City with the necessary technical documentation to support the adoption of a Citywide Development Impact Fee Program. The impact fees would be collected upon issuance of a building permit. If the City Council determines that it would like to adopt Impact Fees (either at the maximum level or at some other level) it would need to direct staff to prepare a Code Amendment to establish standards, rules for the calculation and adjustment of impact fees, and exemptions from the fee (for projects like affordable housing). To allow the City Council to make a decision to move forward, a resolution to initiate a Code Amendment to the Zoning section of the Municipal Code is included as Attachment No. 3 as required by the Municipal Code (Section 26-153). ENVIRONMENTAL DETERMINATION The proposed code amendment is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines in that it consists of a study on development impact fees, which does not have the potential for causing a significant effect on the environment. LEGAL REVIEW: The City Attorney has reviewed and approved this report. : Jeff Anderson, AICP Planning Director Attachments: Attachment No. 1 — Development Impact Fee Study Attachment No. 2— Development Impact Fee Comparison Memorandum Attachment No. 3 — Code Amendment Initiation ZAProposalRequest forlImpact Fee Study\CC Meeting 9.15.151CCStaffReport.docx ATTACHMENT NO. 1 The Economies of Land Use Administrative Draft Report City of West Covina Development Impact Fee Study Economic & Planning Systems, Inc One Kaiser Plaza, Suite 1410 Oakland, GA 94612 510 841 9190 tel 510 740 2080 fax Oakland Sacramento Denver Los Angeles Prepared for: City of West Covina Prepared by: Economic & Planning Systems, Inc. September 2, 2015 EPS #144019 www.epsys.com Table of Contents 1. INTRODUCTION AND RESULTS 1 Report Background and Legal Context 1 Maximum Fee Schedule 2 Key Assumptions and Sources 3 Fee Program Implementation and Administration 4 Report Organization 7 2. DEVELOPMENT FORECASTS AND SERVICE POPULATION 8 Residential Development and Population Growth 8 Nonresidential Development and Employment Growth 8 Service Population and Allocation Factors 11 3. NEXUS FINDINGS AND CAPITAL COST ESTIMATES 13 Police 13 Fire 18 Parks and Recreation Facilities 22 City Administration 22 Public Works 27 4. DEVELOPMENT IMPACT FEE CALCULATION BY LAND USE 29 List of Tables Table 1 Summary of Maximum Development Impact Fees 3 Table 2 Non-Fee Revenue Required For Capital Facility and Equipment Costs 6 Table 3 City of West Covina Overall Growth Forecasts 9 Table 4 Nonresidential Development Forecast 10 Table 5 Allocation of Demand for Capital Facilities 12 Table 6 Allocation of Demand between New Land Uses 12 Table 7 Police Department Capital Facilities: Cost Summary 15 Table 8 Police Department Capital Facilities: Vehicles 16 Table 9 Police Department Capital Facilities: Equipment and Communications 17 Table 10 Fire Department Capital Facilities: Cost Summary 19 Table 11 Fire Department Capital Facilities: Vehicles 20 Table 12 Fire Department Capital Facilities: Equipment and Communications 21 Table 13 Parks and Recreation Capital Facilities 24 Table 14 City Administrative Capital Facilities 26 Table 15 Public Works Capital Facilities 28 Table 16 20-Year Capital Improvement Costs and Potential Fee Funding 30 Table 17 20-Year Capital Cost Allocations and Maximum Development Impact Fees by Land Use 30 Table 18 Maximum Development Impact Fees by Land Use with Administrative Costs 30 1. INTRODUCTION AND RESULTS This Development Impact Fee Study provides the City of West Covina (the City) with the necessary technical documentation to support the adoption of a new Citywide Development Impact Fee Program (Fee Program) that will generate funding for capital facilities and equipment investments associated with the police, fire, community services/parks and recreation, City administration, and specific public works functions.' Impact fees are one-time charges on new development collected and used by the City to cover the cost of capital equipment and facilities that are required to serve new growth. The fees are typically collected upon issuance of a building permit, though in some cases on issuance of a certificate of occupancy or final inspection. This technical study has been prepared by Economic & Planning Systems, Inc. (EPS) with direction and input from City staff in the Planning, Police, Fire, Public Works, and Community Services Departments. The Fee Program described in this Report is based on the identification of the required investment in new and life cycle replacement of capital facilities by City staff based on existing operations and growth expectations. The Fee Program focuses on a time frame of 20 years and, as such, uses forecasts of growth and development and expected capital facilities needs over this period. Specific capital facility project investments have been identified; these individual projects may be altered or replaced over time (with other qualifying projects) as the City administers the Fee Program and funds capital equipment and facilities needed to serve new development. Development impact fee estimates are consistent with the most recent relevant case law and the principles of AB 1600 (the Mitigation Fee Act) and Government Code Section 66000 et seq ("Fees for Development Projects;" except where specific citations are provided, this statute will be referred to in this Report as AB 1600). This Report provides the nexus findings, underlying analysis, and the associated calculations of the maximum supportable citywide fees that could be charged. The City may elect to adopt fees below the maximum supportable level based on economic or policy considerations. Such fee reductions could either occur through a formal reduction in the maximum fee estimates (by reducing facilities standards or planned investments) or by maintaining the same capital facilities program and backfilling the reduced fee revenues with alternative sources of capital funding. Report Background and Legal Context This Report is designed to provide the necessary technical analysis supporting a schedule of fees to be established by an Impact Fee Ordinance and Resolution. The Mitigation Fee Act allows the City to adopt, by resolution, the Capital Facilities and Equipment Fee Schedule consistent with the supporting technical analysis and findings provided in this Report. This schedule is shown in Table 1 of this report. The Resolution approach to setting the fee allows periodic adjustments of the fee amount that may be necessary over time, without amending the enabling ordinance. 1 This analysis does not evaluate the impact of new development on water, sewer, or transportation capital facility needs. Economic & Planning Systems, Inc. 1 P:V44000.5\144019WestCovInelReportk144019cfraftrpt 090215.docK West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 The Fee Program developed in this Report is designed to fund a portion of the capital facilities costs associated with police, fire, community services/recreation, City administration, and public works facility needs. The key requirements that determine the structure, scope, and amount of the proposed Fee Program as required by State Law are as follows: • Collected for Capital Facility and Infrastructure Improvements. Development impact fee revenue can be collected and used to cover the cost of capital facilities and infrastructure required to serve new development and growth in the City. However, impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. • Cannot Fund Existing Needs. Impact fee revenue cannot be collected or used to cover deficiencies in existing City capital equipment and facilities. The portion of capital costs required to meet the needs of the City's existing population must be funded through other sources. The costs associated with improvements that serve the needs of both new development and the existing development are split on a "fair share" basis according to the proportion attributable to each. Thus, development impact fee funding will need to be augmented by other revenue sources to meet overall funding requirements. • Must Be Based on a Rational Nexus. An impact fee must be based on a reasonable nexus, or connection, between new growth and development and the need for a new facility or improvement. As such, an impact fee must be supported by specific findings that explain or demonstrate this nexus. In addition, the impact fee amount must be structured such that the revenue generated does not exceed the cost of providing the facility or improvement for which the fee is imposed. This Report and the technical information it contains should be maintained and reviewed periodically by the City as necessary to ensure Impact Fee accuracy and to enable the adequate programming of funding sources. To the extent that improvement requirements, costs, population, employment, visitors or development potential changes over time, the Fee Program will need to be updated. Maximum Fee Schedule Table 1 shows the City's maximum capital facility and equipment impact fee schedule for the facility types evaluated based on the nexus findings and analysis contained in this Report. These development impact fees apply to new residential and nonresidential development to fund a fair share portion of capital facility and equipment costs. The maximum fee estimates include a 2 percent fee program administration fee, consistent with other Mitigation Fee Act program administrative costs in many other California jurisdictions.2 Fees apply to new development inside the City of West Covina. 2 The 2 percent administration cost is designed to cover expenses for preparation of the development impact fee and subsequent updates as well as the required reporting, auditing, collection and other annual administrative costs involved in overseeing the program. Development impact fee programs throughout California have applied similar administrative charges. Economic & Planning Systems, Inc. 2 P:1044000s1,144019WestCovina‘ReportI144019tiraftrpt 090215,docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 The fees shown in Table I represent the maximum fees that the City may levy, as calculated in this analysis. As noted above, the City can adopt fees at levels below these maximum, nexus- supported levels based on policy considerations. When adopted, these fees will represent the first set of development impact fees (under AB1600) in the City of West Covina. These fees will be in addition to the existing Parkland Dedication fees. Table I Summary of Maximum Development Impact Fees Max. Development Impact Fees Single Family (SF) SF Att./ Workspace Capital Facility Detached Multi Family (Per Sq.Ft.) Police Capital Facilities Fire Capital Facilties Parks Capital Facilities City Administrative Capital Facilities Public Works Capital Facilities Total (1) Includes 2 percent administrative cost add -on. $671 $818 $2,016 $118 $59 $3,682 $479 $584 $1,440 $84 $42 $2,630 $0.26 $0.31 $0.77 $0.05 $0.02 $1.41 Source: City of West Covina; Economic & Planning Systems, Inc. Key Assumptions and Sources The results of this analysis are based on a variety of conditions and assumptions regarding the need for and cost of new and replacement capital facilities, vehicles, and capital equipment and development capacity/growth projections provided by the City. Assumptions are covered in detail in later chapters, though some of the key factors are summarized below: • Capital Facilities and Equipment. The Fire, Police, Community Services/Parks and Recreation, and Public Works Departments provided a comprehensive list of existing capital equipment, vehicles, and communications technology and the associated replacement schedule necessary over the next 20 years,3 An initial list of capital items was developed based on the City's Capital Improvement Program (2014-2019) and was then adjusted and refined based on input from City Departments. The capital facilities items included in the fee 3 The Public Works Department provided information for City Administrative capital facilities as well as supporting information provision for Parks and Recreation capital facilities. Economic & Planning Systems, Inc. p:11440004144019WestCovinakReporti144019draftrpt_0402154ocx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 program all have a replacement life of five years or more and are considered to be capital items. • Cost Estimates. Public safety capital item cost estimates were provided by the Fire and Police Departments based on their extensive knowledge of capital equipment unit costs, including recent and approved expenditures. Initial capital item cost estimates for Community Services/Parks and Recreation, City Administration, and relevant Public Works items were taken from the City's Capital Improvement Program and were adjusted and completed by the Public Works department. All figures are provided in constant dollars. • Capital Demands and Cost Allocation, Capital costs are allocated between new and existing development as well as between different land uses based on service demand and associated capital use and needs. Specifically, a service population approach is used for capital facilities demand/need that incorporates the relative demand from the full service population, including residents and employees. Expected persons per household and employment densities for nonresidential development are used to translate between development types and capital facility needs. Costs were allocated between land uses based on relative demands from different types of new development. • Growth and Development. The development impact fee calculations are based on estimates of new and existing development and associated population and employment over the next 20 years. Existing estimates are based on California Department of Finance, CoStar, and SCAG data. As part of its General Plan Update, the City's consultants have estimated potential new development in the City over the next 20 years and these estimates have been used as the basis for the growth forecasts used in this fee study.4 Estimates of new incremental single-family detached development (not addressed in the General Plan consultant study) were developed by City staff based on development capacity and typical development trends. Fee Program Implementation and Administration Annual Reporting State Law (at Govt. Code. §§ 66001(c), 66006(b)(1)) stipulates that each local agency that requires payment of a fee make specific information available to the public annually within 180 days of the last day of the fiscal year. This information includes the following: • A description of the type of fee in the account • The amount of the fee • The beginning and ending balance of the fund • The amount of fees collected and interest earned • Identification of the improvements constructed • The total cost of the improvements constructed • The fees expended to construct the improvement • The percentage of total costs funded by the fee 4 See HR&A, "West Covina General Plan Update Market Context Report," April 2015. Economic & Planning Systems, Inc. 4 .1';'1.144000s1144019WestCovina\ReportV44019draftmL090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 If sufficient fees have been collected to fund specific improvements, the agency must specify the approximate date for the development of that improvement. Because of the dynamic nature of growth and capital equipment requirements, the City should monitor inventory activity, the need for infrastructure improvements, and the adequacy of the fee revenues and other available funding. Formal annual review of the Fee Program should occur, at which time adjustments should be made. Costs associated with this monitoring and updating effort are included in the Impact Fee and are assumed at 2 percent of fee program capital costs. Credits, Reimbursement, and Exemptions Under certain and limited circumstances, as determined by the City, the Impact Fee Resolution could allow developers subject to the fee to obtain credits, reimbursements, or exemptions. In cases of redevelopment, the City could consider providing a fee credit/discount associated with the amount of fee the existing, demolished development would pay under the new fee schedule. All other fee credits, reimbursements, and/or exemptions should not be allowed by right but rather should be subject to review by City staff and the City Council to ensure that such credits or reimbursements are warranted and appropriate. Exemptions where the City elects not to impose fees for certain categories of development are an option, though alternative funding sources to offset a loss in fee revenue would need to be provided. Surplus Funds State Law also requires that if any portion of a fee remains unexpended or uncommitted in an account for five years or more after deposit of the fee, the City Council shall make findings once each year: (1) to identify the purpose to which the fee is to be put, (2) to demonstrate a reasonable relationship between the fee and the purpose for which it was charged, (3) to identify all sources and amounts of funding anticipated to complete financing of incomplete improvements, and (4) to designate the approximate dates on which the funding identified in (5) is expected to be deposited into the appropriate fund (§66001(d)). If adequate funding has been collected for planned improvements, an approximate date must be specified as to when the cost of the improvement will be incurred. If the findings show no need for the unspent funds, or if the conditions discussed above are not met, and the administrative costs of the refund do not exceed the refund itself, the local agency that has collected the funds must refund them (Govt. Code §66001(e)(f)). Periodic Updates It is recommended that the Impact Fee Ordinance allow for an automatic annual adjustment to the fees based on the Consumer Price Index (CPI), Construction Cost Index (CCI), or a similar inflation factor. Over time, development forecasts, capital equipment and facility needs, and costs will change and evolve, making periodic technical updates prudent. This fee program is based on current forecasts of future development in the City as well as the capital equipment needs developed by the City, including a listing of development impact fee eligible projects. These individual projects may be altered or replaced over time (with other qualifying projects) as the City administers the Development Impact Fee Program and funds capital equipment and facilities needed to serve new development. Securing Supplemental Funding The imposition of impact fees on new development is not appropriate for funding the full amount of all capital and facility costs identified in this report. As shown in Table 2 (and discussed in Economic & Planning Systems, Inc. 5 P:\1440004144019WestCovIn$Report4144019draftrpt_0902154ocX West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 more detail in Chapter 4), of the estimated $133.7 million in required capital improvement investments in the specified capital types, impact fees charged to new development over the next 20 years could fund a maximum of about $7.5 million ($275,000 each year), about 5.6 percent of the total. Approximately $126.2 million of the total capital costs ($6.3 million each year) or 94.4 percent are associated with the portion of improvements allocated to existing development. As a result, the City will have to identify other funding to pay for the portion of improvements not covered by the development impact fee revenues (as well as for any exemptions/discounts to new development enacted based on City policy considerations). As part of adoption of the fee, the City is indicating that it will obtain and allocate funding from various other sources for the share of the costs of improvements identified in this report that are not funded by the Fee Program. Examples of such sources include the following: • Parks Funding Sources. There are a range of funding sources available to help fund the parks and recreation facilities. The parkland dedication fees, the construction tax, as well as grants from a range of sources have all played a role in funding City parks and recreation facilities. • Development Agreements. To the extent that future development projects seek Development Agreements, where feasible, these projects can be required to pay exactions or provide capital facilities, potentially over-and-above the level of payments through the fee programs. • State and Federal Funds. The City might seek and obtain grants of matching funds from State and Federal sources. As part of its funding effort, the City should research and monitor these outside revenue sources and apply for funds as appropriate. • General Fund Revenues. While limited in availability, the City has periodically used General Fund revenues to support public safety capital needs. Table 2 Non-Fee Revenue Required For Capital Facility and Equipment Costs Total 20 Year Average Poll Fee Other Item Investment Annual Funded Funding 5.6% 94.4% Police Capital Facilities Fire Capital reclines Parks Capital Facilities City Administrative Capital Facilities Public Works Capital Facilities Total Capital Facilities Investment $24,248,323 $29,538,493 $72,857,815 $4,281,000 $2,149,280 $133,054,911 $1,212,416 $1,476,925 $3,542,891 $213,050 $107,464 8602,746 $1,357,000 $1,053,000 $4,076,000 $238,000 $120,000 $7,444,000 $22,892,000 $27,886,000 $88,782,000 $4,023,000 $2,029,000 $125,612,000 Source: City of Weal Covina: Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 6 PcV440008\144019WesteoviriakReportt144019draftrpt_690215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Report Organization Following this chapter, Chapter 2 discusses the development capacity and growth estimates and forecasts used in this analysis. Chapter 3 outlines the nexus findings for each of the capital improvement categories and the associated capital improvement items and costs. Chapter 4 presents the capital improvement cost allocation between new and existing development as well as between land uses and shows the resulting maximum fee by land use. Economic & Planning Systems, Inc. 7 P:1144000s1.144019WestCovina\Report‘144019draftopt_090215.6xx 2. DEVELOPMENT FORECASTS AND SERVICE POPULATION This chapter presents estimates of existing and future development in the City of West Covina and the associated demographic and job growth forecasts that support the appropriate allocation of capital costs. This includes the appropriate allocations between new and existing development as well as between different land uses. Estimates of existing development were based on typical sources and information on new development was drawn from a recent market study in support of the City's General Plan Update as well as input from City. Finally, different allocation factors (percentages) were derived based on service population metrics; these service population metrics establish relative levels of capital facilities demand from different demand drivers (i.e., residents and employees, and visitors). Residential Development and Population Growth Table 3 shows estimates of the City's existing and new housing units over the next 20 years as well as associated estimates of City population (residents). As shown, there were about 32,800 units in the City in 2014, of which about 31,700 units were occupied. The West Covina General Plan Update Market Context report prepared for the City by consultants HR&A in April 2015 (Market Context Report) indicated potential development of 2,100 single- family attached/multifamily units over the next 20 years, an average of 105 units each year. Discussions with City staff concerning the potential development capacity for new single-family detached development suggested the potential for an additional 300 single-family detached units over the next 20 years or about 15 units each year on average. Together, this represents an estimate of 2,400 units of new residential development over the next 20 years, representing about 2,300 new occupied household/units reflecting typical vacancy rates. This level of new residential development was converted into an estimate of new City residents that in turn drives demand for capital facilities. Factors of 3.5 persons per household and 2.5 persons per household were used for the different residential product types based on the City's current ratio and more typical ratios for single-family attached/multifamily product type. Overall, the City's population is estimated to increase by about 6,100 persons from about 107,800 persons to 113,900 persons, an increase of about 6 percent. Nonresidential Development and Employment Growth As shown in Table 3, total current jobs in the City are estimated at about 29,500. The Market Context Report estimated potential new nonresidential development over the next 20 years. As shown in Table 4, support for about 685,000 square feet of nonresidential development was estimated over the next 20 years, including 400,000 square feet of new office development, 200,000 square feet of new retail development, 15,000 square feet of new industrial development, and a 135-room hotel with a potential room size of about 70,000 square feet. Collectively, this results in a total of 685,000 square feet of new nonresidential development. Based on job density factors indicated in the Market Context Report as well as typical factors for these use types, this new development would accommodate about 2,700 new jobs in the City of West Covina. As indicated in Table 3, the total numbers of jobs in the City of West Covina is expected to increase by 2,660 from about 29,500 jobs to about 32,200 jobs over the next 20 years, an increase of about 9 percent. Economic & Planning Systems, Inc. 8 PA144000-91,144019WestCovinakReport144019cfraftrpt_090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 3 City of West Covina Overall Growth Forecasts 2015 2036 Growth (2) Item Housing Units Single Family Detached Single Family Attached/ Multi Family Mobile Homes Total Occupied Units (3) Persons per Household (4) Single Family Detached Single Family Attached/ Multi Family Mobile Homes Average Population (4) Household Population Single Family Detached Single Family Attached/ Multi Family Subtotal Group Quarters Total Population Jobs (5) Workspace Office/ Retail/ Industrial (6) Other (6) Total Workspace 2014 (1) 21,169 11,263 345 32,777 31,666 na na na 3.38 na na 107,154 674 107,828 29,502 9,310,000 2 330 000 11,640,000 Annual Total 2035 16 300 21,469 105 2,100 13,363 0 345 120 2,400 35,177 116 2,319 33,985 3.5 2.5 na 2.63 3.33 51 1,014 254 5,072 304 6,086 113,240 0 0 674 304 6,086 113,914 133 2,660 32,162 685,000 (6) 12,325,000 Estimated/Derived Sq. Ft. per Job 395 258 383 (1) Numbers will be updated to 2015 numbers when available. Job number is currently 2012 number from 2016 SCAG RTP/ SCS. (2) Household unit growth per annum through 2036 based on discussions with Planning Director (May 2015). (3) 2014 vacancy rate of 3.39 percent is also applied to new growth. (4) Population growth driven by persons per household assumptions based on City's existing average and typical numbers for new attached/multifamily products, (5) Jobs forecast based on 2015 West Covina General Plan Update Market Context Draft Report (6) CoStar information used for 2014 Office, Retail, and Industrial. Forecast based on 2015 West Covina General Plan Update Market Context Draft Report. Sources: California Department of Finance; HR&A General Plan Update, Market Context Report, April 2015; SCAG Draft 2016 RIP/ SCS Projections; City of West Covina; Economic & Planning Systems, Inc. Economic 8c Planning Systems, Inc. 9 p:V144000A144019WestCovka ‘Reportki44019dra ftrpL040215. door West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 4 Nonresidential Development Forecast 20-Year Forecast Category Assumptions Square Feet Jobs Rooms (rounded) 400 sq. ft./ employee (FIRM) 200 sq. ft./ employee (HR&A) 600 sq. ft/ employee (EPS) 1 employee per room (EPS) 500 sq. ft. per room Retail Growth Capture Leakage Capture Total Office Industrial Hotel 150,000 50,000 200,000 500 400,000 2,000 15,000 25 70,000 135 135 Total Non-Residential 685,000 2,660 (1) Most figures from IIR&A Market Context Report for growth from 2015 to 2035 and based on medium area capture estimates (rounded). Other figures derived based on noted assumptions. Source: FIRM, City of West Covina; Economic and Planning Systems, Inc. Economic & Planning Systems, Inc. 10 P:V44000A144019WestCovina\Report‘144019draftryg_090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Service Population and Allocation Factors Service population is a measure commonly used to incorporate job as well as resident growth into allocations of capital facilities demand and associated costs. An employee tends to place a lower level of demand on a City's capital facilities, vehicles, and equipment than a resident. As a result, the capital facilities demand weighting is typically discounted for employees. Based on capital improvements included in this analysis, typical approaches to relative demand in other nexus studies, as well as recent research by EPS into relative demand by visitors for parks and recreation facilities, service population estimates were developed. Service population estimates for all the capital facilities studied are derived based on a weighting of 1.0 for residents and 0.33 for employees.5 Table 5 shows estimates of the current service population and the forecasted increase due to new development. As shown, the current service population is estimated at about 117,700 and the increase in service population is estimated at about 6,980. As shown in Table 5, at the end of the 20-year fee study period, new development will represent 5.6 percent of the overall service population of 124,635. This proportion is used as a measure of the proportion of demand from new development for capital improvements. These service population proportions as well as the relative service population growth by different land uses, as shown in Table 6, ensure an appropriate and proportional allocation of capital costs between existing and new development and between different new land uses in the subsequent chapters. 5 Service population is a commonly used measure that estimates service needs based on relative demand generated by residents, employees, and visitors. Most fee studies (and associated case studies) have used and indicated relative demand factors varying from 2 employees per resident to 5 employees per resident. This relative demand factors in this study fall within this typical range. Economic & Planning Systems, Inc. 11 1,11,144000s1,144019WestCovinalReporel,14401Wraftrpt_090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 5 Allocation of Demand for Capital Facilities Growth Item 2015 2015-2035 2035 Population 107,828 6,086 113,914 94.7% 5.3% 100% Jobs 29,502 2,660 32,162 92% 8% 100% Service Population - Total (1) 117,662 6,973 124,635 Service Population 94.4% 5.6% 1 00.0% (1) Under service population calculation, three jobs are the equivalent to one resident. In other words, three new jobs in the City are assumed to generate the equivalent demand for capital facilities to one new resident. Source: City of West Covina; Economic & Planning Systems, Inc. Table 6 Allocation of Demand between New Land Uses 20-Year New 20-Year Land Use Growth Persons/ Jobs Service Pop. Single Family Detached (1) 300 units 1,014 1,014 15% Single Family Attached/ 2,100 units 5,072 5,072 73% Multi Family (1) Workspace (2) 685,000 sq. ft. 2,660 887 13% (3) Total 6,973 100% (1) Housing development estimates based on input from City of West Covina. Associated new persons based on 3.5 persons per single family detached and 2.5 persons per single family attached/ multi family unit (2) Jobs and Workspace growth forecast based on 2015 West Covina General Plan Update Market Context Draft Report, (3) Assumes three jobs is equivalent to one person in service population calculation; i.e. capital facilities demand from 3 new jobs is equivalent to population demand from 1 resident. Source: City of West Covina Community Development Department; FIR&A; SCAG; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 12 P:V144000s1.144019WestCovinakReparel144019draftrpL0902Mdocx 3. NEXUS FINDINGS AND CAPITAL COST ESTIMATES This chapter describes the necessary "nexus" between new development in West Covina and the proposed capital equipment and facilities investments, as required under Government Code Section 66000 (also referred to as AB1600). In addition, the methodology and technical calculations for determining the police, fire, parks and recreation, City administration, and public works capital costs and capital replacement costs over the next 20 years are provided, This chapter is divided into five sections corresponding to the following capital facilities categories: • Police • Fire • Parks and recreation • City Administration • Public Works For each development impact fee category, the necessary "nexus" between new development in West Covina and the proposed capital facilities is described. Nexus findings address: 1) the purpose of the fee and a related description of the facility for which fee revenue will be used, 2) the specific use of fee revenue, 3) the relationship between the facility and the type of development, 4) the relationship between the need for the facility and the type of development, and 5) the relationship between the amount of the fee and the proportionality of cost specifically attributable to new development. In addition, the methodology and technical calculations for determining existing deficiencies and future needs and the associated "fair share" allocation of costs to new development are provided. The subsections below describe the nexus findings for the proposed Development Impact fee. Chapter 4 builds from these findings and analyses to estimate maximum supportable development impact fees. Police The Police development impact fees will cover new development's share of the costs associated with police building improvements and the replacement of vehicles and capital equipment, communications, and computers. Capital items will depreciate more quickly as new development occurs and the City's service population grows. The subsections below describe the nexus findings that justify the proposed Police fee as well as the overall capital facilities and costs that inform the fee calculation. Nexus Findings Purpose The fee will help ensure adequate replacement intervals for Police Department equipment and vehicles in the City of West Covina, including patrol and other vehicles, safety gear, communications, and computers utilized by the Police Department, as well as required police building improvements. Economic & Planning Systems, Inc. 13 P:1144000sk144019WestCovina‘Reportk144019draftopt_0902154ocx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Use of Fee Fee revenue will be used to replace capital equipment, such as acquisition of new vehicles and information technology equipment after a period of use, and to contribute towards the required police building improvements. Relationship New development in West Covina will increase the use of police equipment, vehicles, and buildings utilized for citywide service provision. Fee revenue will be used to help fund police building improvements and capital replacement of equipment and vehicles. Need Each new development project will add to the incremental use of existing police equipment, vehicles, and buildings. The City's existing set of equipment and vehicles will require more frequent replacement due to the greater use levels associated with new development (and associated service population) in the City. Proportionality The police building improvement costs and the replacement costs of police equipment and vehicles are allocated proportionately between new and existing development based on their relative share of demand (as measured by their relative share of service population over the next 20-year period). Costs associated with new development are similarly allocated between land uses proportional to their relative generation of demand, as measured by service population. Capital Cost Estimates The required 20-year police capital facilities investment totals $24.3 million, about $1.2 million each year, as shown in Table 7. This includes about $13.1 million on police vehicles and $10.8 million on police capital equipment, communications, and computers. An additional investment of about $308,000 in police building improvements is also required. Replacement cost estimates are described in more detail below. • Vehicles. As shown in Table 8, the cost of police vehicle replacement is based on existing vehicle inventory. The City currently has 87 vehicles for its patrol, investigative and support, SWAT, and motorcycle services/uses. Based on the replacement life and market cost of new vehicles and associated equipment, an annual replacement cost of about $660,000 is required to maintain the existing fleet, for a total 20-year cost of about $13.1 million. • Equipment and Communications. The Police Department requires specialized safety gear and equipment, communications equipment, computer equipment, and other equipment (e.g., license plate readers). The replacement cost for these items is estimated at about $540,000 annually with a total 20-year cost of about $10.85 million over 20 years as shown in Table 9. Economic & Planning Systems, Inc. 14 PA1440004144019WestCovinalReport1144019cfraftrpt_090215.docic $1,152,204 $7,431,393 $1,628,165 $637,003 $10,848,765 Replacement Replacement Replacement Replacement West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 7 Police Department Capital Facilities: Cost Summary 20-Year Item Cost Type Vehicles Patrol/ ISSD SWAT Motorcycles Subtotal Equipment, Communications, and Computers Safety Gear and Equipment Communications Corn puters Other (1) Subtotal Building Department Building Improvements Replace Flooring Briefing Room Remodel Contingency Subtotal Police Department - Total Capital Improvements $12,056,608 Replacement $636,050 Replacement $426.400 Replacement $13,119,058 $205,000 New $50,000 New $25,500 New $280,500 $24,248,323 Source: City of West Covina Police Department; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 15 P:1,1440040,144019WestCovinayRepoitj144019dmfttpt._6902154ocx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 8 Police Department Capital Facilities: Vehicles Make Model Replacement Units Life Replaced With: Avg. Annual 20-Year Cost/ Value Total Value Replace Cost Replace Cost Patrol Ford Crown Victoria 41 5 Ford Interceptor SUV $51,202 $2,099,282 $419,856 $6,397,128 Toyota Prius V (wagon) III 1 6 Acquired vla AQMD Investigative and Support Satvices $28,420 $28,420 $36,500 $51,202 $61,202 $28,420 $28,420 $28,420 $28,420 $28,420 $28,420 $51,202 $51,202 $51,202 $36,500 $28,420 $28,420 $26,420 $44,660 $8,120 $6,214 $29,258 $14,629 $12,160 $4,060 $4,060 $4,060 $4,060 $8,120 $7,315 $7,315 $7,315 $10,429 $4,060 $4,060 $4,060 Ford Dodge Toyota Ford Ford Toyota Ford Ford Pontiac Buick Chevrolet Dodge Chevy Toyota Honda Mitsubishi Dodge Nissan Crown Victoria Charger Sequoia Expedition Escape Camry 500 Mustang Vibe LaCross Impala Ram Tahoe Highlander Odessey Outlander Durango AltImo 11 7 Honda Accord 2 7 Honda Accord 1 7 Honda Odyssey 4 7 Ford interceptor SUV 2 7 Ford Interceptor Shy 3 7 Honda Accord 1 7 Honda Accord 1 7 Honda Accord 1 7 Honda Accord 1 7 Honda Accord 2 7 Honda Accord 1 7 Ford interceptor SUV 1 7 Ford Interceptor SUV 1 7 Ford Interceptor SUV 2 7 Honda Odyssey 1 7 Honda Accord 1 7 Honda Accord 1 7 Honda Accord $312,620 $56,840 $36,500 $204,808 $102,404 $85,260 $28,420 $28,420 $28,420 $28,420 $56,840 $51,202 $51,202 $51,202 $73,000 $28,420 $28,420 $28,420 $893,200 $162,400 $104,286 $585,166 $292,583 $243,600 $61,200 $81,200 $81,200 $81,200 $162,400 $146,291 $146,291 $146,291 $208,571 $81,200 $81,200 $81,200 SWAT GMC SWAT Truck Ford Prisoner Van GMC Traffic Truck Mobile Command Post 10 N/A 10 Ford Explorer 10 Ford F150 20 N/A $36,500 $28,600 $36,500 $432,850 $36,500 $28,600 $36,500 $432,850 $3,650 $2,860 $3,650 $21,643 $73,000 $57,200 $73,000 $432,850 Motorcycle BMW Traffic 4 N/A BMW $5,330 $21,320 $21,320 $426,400 per bike per annum lease per annum Total Vehicles 87 $655,953 $13,119,058 Source: City of West Covina Police Department; Economic & Plarining Systems, Inc. Economic & Planning Systems, Inc. 16 P1\1440"144019WestCovinalpepottl,144019draftrpL090215.docx West Covina Development Impact Fee Study Administrative Draft Report 0W02/15 Table 9 Police Department Capital Facilities: Equipment and Communications Item Total City Replacement Count Unit Cost Cost Life Average Annual Cost 20-Year Cost 5 5 5 12 15 15 5 7 7 7 5 7 7 10 10 10 7 5 Safety Gear and Equipment Bulletproof Vests Tactical SWAT Bulletproof Vests Tasers Glock Firearm AR15 Rifles Sniper Rifles LIDAR (Radar) Gun Subtotal Communications Radio Mobile (Patrol) Radio Mobile (Detective/Adm in) Radio Portable Voice Print system Citywide Public Safety Radio System Telephone E911 Microwave radio system, point to point Uninterruptibie Power System Subtotal Computers Mobile Data Computers Mounts for MDCs Computer Desktop Programmer Computers Networking Switches Servers Backup Storage Tape Array Subtotal Other Security Camera System Radar Trailer License Plate Readers Forensics digital camera Subtotal TOTAL 44 37 110 1 1 system 1 1 system 1 50 50 40 8 11 3 1 1 2 2 $7,247 $5,237 $4,857 $1,273,225 $1 $1,795,851 $50,645 $5,435 $1,236 $1,442 $4,604 $5,394 $17,916 $19,977 - $9,260 $22,045 $2,494 $85,125 $30,142 $90,219 $90,000 $69,875 $26,500 $12,940 $404,801 $318,868 $193,769 $534,270 $23,642 $1,273,225 $1 $1,795,851 $50,645 $4,190,271 $271,750 $61,800 $57,680 $36,832 $59,334 $53,745 $19,977 $561,118 $236,280 $9,260 $44,090 $4,988 $294,618 $5,450,808 $17,025 $8,028 $18,044 $7,500 $4,658 $1,767 $2,588 $57,610 $38,821 $8,829 $8,240 $7,368 $8,476 $7,678 $1,998 $81,408 $23,628 $926 $6,299 $998 $31,850 $340,500 $120,568 $360,876 $150,000 $93,167 $35,333 $51,760 $1,152,204 $776,429 $176,571 $164,800 $147,328 $169,526 $153,557 $39,954 $1,628,165 $472,560 $18,520 $125,971 $19,952 $637,003 75 14 51 93 65 4 5 $1,135 $2,153 $1,769 $988 $1,075 $6,625 $2,588 7 $45,553 $911,051 7 $27,681 $553,626 7 $76,324 $1,526,486 10 $2,364 $47,284 10 $127,323 $2,546,450 10 $0 20 $89,793 $1,795,851 20 $2,532 $50,645 $371,570 $7,431,303 $542,438 $10,848,765 Source: City of West Covina Police Department; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 17 P:\1440004[44019WostCovInaIReport;144019draftrpL0902154oce West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Fire The Fire development impact fees will cover new development's share of the costs associated with the construction of new fire stations and the replacement of capital equipment and vehicles. Capital items will depreciate more quickly as new development occurs and the city's service population grows. The subsections below describe the nexus findings that justify the proposed Fire fee as well as the overall capital facilities and costs that inform the fee calculation. Nexus Findings Purpose The fee will help ensure investment in new fire stations as well as adequate replacement intervals for Fire Department equipment and vehicles in the City of West Covina, including the vehicles and equipment utilized by the Fire Department. Use of Fee Fee revenue will be used to help fund a new Headquarter Fire Station and a renovated Fire Station 3/Updated Medic Station and to replace capital equipment, such as acquisition of new fire engines and other vehicles and equipment, after the appropriate period of use. Relationship New development in West Covina will increase the use of fire equipment and vehicles utilized for citywide service provision. Fee revenue will be used to help fund capital replacement of equipment and vehicles as well as to support renovation/development of new Fire Stations/buildings. Need Each new development project will add to the incremental use of existing fire equipment and vehicles as well as the need for the Fire Station renovation/buildings. The existing set of equipment and vehicles will require more frequent replacement due to the greater use levels associated with new development (and associated service population) in the City. Proportionality The building costs as well as the replacement costs of vehicles and equipment are allocated proportionately between new and existing development based on their relative share of demand (as measured by their relative share of service population over the next 20-year period). These costs are similarly allocated between land uses proportional to their relative generation of demand, as measured by service population. Capital Cost Estimates The required 20-year fire capital facilities investment totals $29.5 million, about $1.48 million each year, as shown in Table 10. This includes about $12.3 million on police and fire department vehicles and associated equipment, $3.8 million on capital equipment, communications, and computers, and about $13.5 million on Fire Stations/building, as described in more detail below. Economic & Planning Systems, Inc. 18 P:11440004144019WestCovfna\Repott11440.19draftrpt_090215.clacx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 10 Fire Department Capital Facilities: Cost Summary 20-Year Item Cost Type Vehicles Vehicles and Associated Equipment Communications and Equipment Personal Protective Equipment (PPE) Other Equipment Wildland Firefighter Personal Protective Equipment Office of Emergency Services Communications Subtotal Fire Stations Headquarter Fire Station (1) Fire Station 3 / Updated Medic Station Subtotal Fire Department - Total Capital Costs $12,300,600 Replacement $1,248,307 $1,320,126 $384,560 $60,000 $757,900 $3,770,893 Replacement Replacement Replacement Replacement Replacement $10,400,000 New $3,067,000 New $13,467,000 New $29,538,493 (1) Fire Station 1 and Headquarters. Source: City of West Covina Fire Department; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc, 19 P4144000A144019WestCovinayReportli44019ciraftrpt_090215.docx $3,148,000 $8,535,000 $616,030 $12,300,600 West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 • Vehicles. As shown in Table 11, the cost of fire vehicle replacement is based on existing vehicle inventory. The City currently has seven fire engines, one aerial ladder truck, and numerous other vehicles. Based on the replacement life and market cost of new vehicles and associated equipment (as well as am assumed residual equipment value), an annual replacement cost of about $615,000 annually is required to maintain the existing fleet, for a total 20-year cost of about $12.3 million. Equipment and Communications. The Fire Department requires a broad range of protective, communications, and other equipment. The replacement cost for these items is estimated at about $190,000 annually with a total 20-year cost of about $3.8 million over 20 years as shown in Table 1.2. • Fire Stations. The Fire Department has indicated the need for (1) the development of a Headquarter Fire Station that would serve as a replacement for Fire Station 1 and provide a Headquarters at an estimated cost of $10.4 million and (2) the renovation of Fire Station 3 to also include an updated Medic Station at an estimate cost of about $3.1 million. Table 11. Fire Department Capital Facilities: Vehicles Item Count Cost Per Unit Total Replacement (less) Life Residual Equipment Average Annual Cost Total Replacement Through 20 Yrs Fire Engine 7 Equipment 7 Fire Aerial Ladder Truck 1 Equipment 1 Advance Life Support Ambulance 5 Equipment 5 Assistant Chief Command Vehicle 2 Equipment 2 Fire Chief, Fire Marshal 2 Equipment 2 Fire Prevention Vehicle 2 Air Light Unit 1 Utility Stakebed/Lift gate Truck 1 Van RSVP 1 Multi-Casualty Response Trailer 1 Equipment 1 Disaster Response Trailer 1 Equipment 1 Mass Decon Response Trailer 1 Equipment 1 Total Vehicles $700,000 $30,000 $1,300,000 $50,000 $165,000 $50,000 $60,000 $12,000 $40,000 $2,009 $36,000 $515,000 $60,000 $40,000 $40,000 $15,000 $10,000 $4,000 $4,000 $8,000 $6,000 $4,900,000 $210,000 $1,300,000 $50,000 $826,000 $250,000 $120,000 $24,000 $80,000 $4,000 $70,000 $515,000 $60,000 $40,000 $40,000 $16,000 $10,000 $4,000 $4,000 $8,000 $0,000 $294,000 $14,000 $78,000 $3,333 $106,071 $36,714 $15,429 $3,429 $10,286 $571 $9,000 $30,900 $3,600 $2,400 $2,400 $1,350 $2,000 $360 $267 $720 $1,200 $5,880,000 $280,000 $1,560,000 $66,667 $2,121,429 $714,286 $308,571 $68,671 $205,714 $11,429 $180,000 $818,000 $72,000 $48,000 $48,000 $27,000 $40,000 $7,200 $5,333 $14,400 $24,000 15 10% 16 0% 16 10% 15 0% 7 10% 7 0% 7 10% 7 0% 7 10% 7 0% 7 10% 16 10% 15 10% 15 10% 15 10% 10 10% 5 0% 10 10% 15 0% 10 10% 5 0% (1) Represents the retained value of the equipment after its useful life has expired for the department. Source: City of West Covina Fire Department; Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 20 P11,144000s1,144019WestCovImiliReportA144019dtaftrpL090.215.docx 10% $945 10% $3,160 10% $7,088 10% $5,330 10% $12,600 10% $450 10% $1,350 10% $450 10% $1,350 10% $8,775 10% $2,781 10% $540 10% $11,250 10% $6,860 10% $117 10% $225 10% $342 10% $684 0% $490 0% $260 10% $1,080 10% $900 $66,006 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 10% 10% 10% 10% 10% 0% 0% 0% 0% $1,008 $6,880 $1,008 $32 $180 $7,380 $3,760 $19,228 $800 $450 $800 $350 6200 $400 $3,000 $4,455 $4,455 $9,990 $6,750 $1,260 $2,625 $1,200 $3,200 $3.960 $37,865 $188,545 West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 12 Fire Department Capital Facilities: Equipment and Communications (less) Residual Replacement Equipment Average Total Replacement LIfe valuei Annual Cost Through 20 Yrs Cost Item Count Per Unit Total Personal Protective Equipment (PPE) Structure Firefighter Turnouts 80 Structure Firefighter Helmet 80 Structure Firefighter Hoods 80 Structure Firefighter Gloves 82 Structure Firefighter Turnout Boot 82 Ballistic Vest 80 Safety Uniform Boot 82 Subtotal $2,400 $335 $35 $65 $304 $600 LK, $3,985 $192,000 $26,800 $2,800 $6,330 $24,600 $48,000 $20,500 $320,030 5 10 3 3 10 5 3 0% 10% 0% 0% 0% 0% 0% $38,400 $2,412 $933 $1,777 $2,460 $9,600 $6,833 $62,415 $768,000 $48,240 $18,667 $35,533 $49,200 $192,000 $136.667 $1,248,307 Equipment Hose in 100' sections (forestry) 1 112" 50' sections (forestry) 1 314" 50' sections 2 1/2" 50' sections 4" 100' sections Rescue Saw Chainsaws Multi-gas Detector Rescue Airbag Equipment SCBA Packs SCBA Bottles SCBA RIG Pairs Zoll Monitor/Defliddliators Auto Extrication Equipment Rescue 42 Shoring CO Monitors Portable Pump Float-a-Pump Rope Rescue Equipment Salvage Covers Generators Smoke Ejector Blower Subtotal Total Equipment 14 $450.00 $6,300 6 42 $500.00 $21,000 6 126 $375.00 $47,250 6 126 $282.00 $35,532 6 56 $1,500.00 $84,000 6 2 $2,000 $4,000 6 5 $1,500 $7,500 6 2 $2,000 $4,000 a 1 $16,000 $16,000 10 39 $2,600 $97,500 10 103 $304 $30,900 10 6 $1,000 $6,000 10 10 $12,500 $125,000 10 1 $65,000 $66,000 10 1 $1,300 $1,300 10 5 $504 $2,500 10 1 $3,800 $3,800 10 2 $3,804 $7,600 10 7 $700 $4,900 10 13 $200 $2,600 10 4 $3,000 $12,000 10 2 Mom $6,000 6 $121,207 $589,682 $168,337 $1,386,152 $18,900 $63,000 $141,760 $106,696 $252,000 $9,000 $27,000 $9,000 $27,000 $175,500 $55,620 $10,800 $226,000 $117,000 $2,340 $4,504 86,840 613,680 $9,800 $5,200 621,600 $18,000 $1,320,12$ $20,160 $117,600 $20,160 $640 $3,200 $147,600 $75.200 $384,660 $16,000 $9,000 $16,000 $7,000 $4030 UAW $60,000 $89,100 $89,100 $199,800 $135,000 $25,200 $52,500 $24,000 $64,000 $79,200 $757,900 $3,770,893 Wildiand Firefighter Personal Protective Equipment Web Gear 42 $120 $6,040 5 Fire Shelter 42 $704 $29,400 6 Helmet w/Eye Protection 42 $120 $5,040 5 Gloves (Wildiand) 8 $20 $180 5 Wlidland Hot Shield Filter 8 $100 $600 6 PPE (Wildland) 82 $450 $36900 5 Boots (Wildland) 80 $235 $18,800 5 Subtotal $1,746 $96,140 Office of Emergency Services Plotter/Printer 1 $8,000 $8,000 10 Computer (Desktop) 3 $750 $2,250 5 Computer (Laptop) 4 $1,000 $4,000 6 HAM Base Station 'I $3,600 $3,500 10 HAM Portable 2 $1,000 $2,000 10 Generators 1KVV 5 $800 $4.000 10 Subtotal $15,050 $23,750 Communications Mobile Radios - Dual Band 15 $3,300 $49,500 10 Mobile Radios - UHF 15 $3,300 $49,500 10 Portable Radios - Dual Band 30 $3,700 $111,000 10 Portable Radios - UHF 30 $2,500 $75,000 10 Bendex King 7 $2,000 $14,000 10 Computer Desktop 21 $750 $15,750 6 I-Pads 10 $600 $6,000 5 Servers 2 $8,000 $16,000 6 MDC Toughbooks 9 $2,200 $19,800 5 Subtotal $26,350 $356,550 CO Represents the retained value of the equipment after Its useful life has expired for the department. Source: city of West Covina Fire Department Economic & Planning Systems, Inc. Economic & Planning Systems, Inc. 21 P:1)440004144019WestCovina'iReportV144019draftopt 090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Parks and Recreation Facilities The Parks and Recreation impact fee is designed to cover the costs associated with new parks and recreation facilities required to serve future growth in West Covina. It covers the appropriate share of the costs of developing new parks and associated facilities, including community centers, playing fields, and other buildings and capital improvements. New capital facilities will be required as the City's service population increases. The subsections below describe the nexus findings that justify the proposed parks and recreation fee as well as the overall capital facilities and costs that inform the fee calculation. Nexus Findings Purpose The fee will fund new investments in parks and recreation facilities as well as appropriate replacement of existing and new capital facilities through time. Use of Fee Fee revenue will contribute funding towards parks and recreational facilities. Relationship New development in West Covina will increase the City's demand for park and recreation facilities. Fee revenue from new development will contribute towards meeting this new demand. Need Each new development project will add to the incremental need for new and replaced park and recreation facilities. Improvements in this were identified by the City's capital improvement program and by Community Services Department staff as necessary to provide appropriate parks and recreation facilities to the City's service population. Proportionality The new parks and recreation facilities costs are allocated proportionately between new and existing development based on their relative share of demand (as measured by their relative share of service population over the next 20-year period). These costs are similarly allocated between land uses proportional to their relative generation of demand, as measured by service population. Capital Cost Estimates Table 13 provides detailed estimates of the broad range of parks and recreation capital improvement items, their useful life, and the associated average annual cost over the next 20 years. As shown, the total average annual capital cost is about $3.6 million which represents about $72.9 million over the next 20 years. City Administration The City administrative development impact fee will cover new development's share of the costs associated with a City Hall and associated capital improvements. These improvements will serve citywide needs, with new growth comprising a portion of the overall demand. The subsections below describe the nexus findings that justify the proposed City Administrative fee as well as the overall capital facilities and costs that inform the fee calculation. Economic & Planning Systems, Inc. 22 P:1,1440004144019WesteovinalReporAl44019draftrpt 0902154orx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Nexus Findings Purpose The fee will help maintain adequate levels of City administration facilities service in West Covina, including an adequate City Hall, Council Chambers, and Civic Center. Use of Fee Fee revenue will be used to help fund repairs and improvements to City Hall, Civic Center, and Council Chambers. Relationship New development in West Covina will increase the use of City Hall and the Civic Center. Fee revenue will be used to fund a portion of the improvement/replacement of these facilities. Need Each new deveiopment project will add to the incremental need for City administrative facilities. Proportionality The cost of new City administration capital facilities is allocated proportionately between new and existing development based on their relative share of demand (as measured by their relative share of service population) after a 20-year period. The cost share associated with new development is similarly allocated between land uses proportional to their relative generation of demand, as measured by service population. Economic & Planning Systems, Inc. 23 P:1,144000.0,144019WestCovinalBeportt144019draftrpt 090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 13 Parks and Recreation Capital Facilities Project No. Description of Item Cameron Community Center - Men's Restroom Ant-Graffiti Treatment Cameron Community Center - Multi-Purpose Room Wood Floor Refurbish Cameron Community Center - Paint interior Wails & Doors Senior Center - Replace Cloth Wails in North Wing Main Room Senior Center - TV Room Rehab - Repaint, Replace Furniture, Carpet, Blinds, & TV Senior Center - Marquee, Fitness Equipment, Walking Path Community Services - Cameron Community Center Wireless Access Community Services - Cameron Community Center - Replace Tables and Chairs Community Services - Cameron Community Center Volleyball Equipment Community Services - Replace Water Barricades for Community Events Community Services - Replace Tables and Chairs for Community Events Community Servioes-Purchase Portable Stage el 6'x48') for Community Events South Hills High School - All Weather Track - Requested by School District Covina High & Traweek Middle Schools - Athletic Field improvements - Reg. by School Pacific Coast Little League - Safety/Foul Ball Netting on First Base Side Cortez Senior Center Rehab Trellis and Outside Atrium Refinish Wooden Sliding Doors Relandscape Patio Edgewood Municipal Pool Grass and irrigation Shade Structure Remove/Rebuild Men's and Women's Locker Rooms, Rehab of Pool Site Palmview Daycare Remove and Replace Building 5-15YRS (CDBG) Shadow Oak Park Patio Cover Repair/Repaint Wood Reroof Building Classroom Rehab- New Sliding Glass Doors Ceiling Tiles Repaint Rod Iron Fencing Replace Sliding Glass Doors and Windows Remodel Restrcoms(Closet, Firming, Tile, Fixtures, Partitions, Paint Shadow Oak Community Room Remodel Kitchen - Floor, Ceiling: Comm. Room - Tiles, Paint, Rollup Window Reface Kitchen Cupboards Repair Drainage and Leaking Problem ADA Compliance - City Facilities Balifleld Lighting - Bulb Replacement Miscellaneous Park Improvements Parks Parking Lot Slung & Striping Sports Field Safety Netting Replacement Park/City Facility Surveillance Cameras (Two Locations) Install Picnic Table With Walkway and Pad Replace Tot Lot Replace Tot lot & Replace Wood Picnic Shelter With New Metal Structure Shadow Oak Park improvements Per Master Plan including New Restrcoms Near Sports Field, Small Amphitheater, Large Gazebo, & Food Bank Facility Slurry Seal & Restripe (3) Parking Lots (Southelde of Park) Replace Tennis Court Wind-Sheer Netting Del Norte Park Exterior Snack Bar improvements: Repaint & Resurface Tennis Courts Replace Tot Lot Replace Tot Lot Replace Tot Lot; Replace Basketball Court (New Slab) & Repaint Lines Design Restroom & Learning Center Per Master Plan Construct Restroom & Learning Center Per Master Plan Consiruct Community Garden Per Master Plan Expand Parking Lot Per Master Plan Install Walnut Tree Grove Along South Slope of Park & Citrus Grove Adjacent to Taylor House; Add New Amphitheatre Per Master Plan Landscape & Irrigation RepairslUpgrades, Pasco Lighting Repairs/Upgrades, Walkway & Bench Drain Repair/Cleaning Landscape, Hardscape, Lighting & Irrigation Repairs/Upgrades Landscape, Hardscape, Lighting & irrigation Repairs/Upgrades Harrowing Equipment for Arenas Ridge Riders - install Sprinklers for Arenas Ridge Riders - Remove & Replace Rotting Wood in All Three Arenas Improvements Per Master Plan: Upgrade Trails, Lighting, Plumbing, irrigation, Restrooms, Parking & Signage, eto. Soccer Fields, Phase 1- Design & Construct Two Soccer Fields Soccer Fields, Phase 2- Design & Construct Parking Lot Expansion, Picnic Shelters, Benches, Drinking Fountains Soccer Fields, Phase 3- Design & Construct Park Building With Ade/Menai Restrooms, Meeting Room/Storage, Soccer Thorned Playground B-4 B-6 B-6 8-19 13-20 13-35 G-3 54 0-5 5-7 G-9 Y-5 Y-6 Y-7 13-41-U B-42-U B-43-U B44-U B-45-U P-2 P-3 P-4 P-6 P-6 P-7 P-8 P.O P-10 P-11 P-12 P-13 P-14 P-15 P-10 P-17 P-18 P-19 P-20 P-21 P-22 P-23 P-24 P-25 P-26 P-27 P-28 P-29 P-30 P-31 P-32 Average Annual Cost of Item Useful Life Cost $7,000 7 $1,000 $11,000 5 $2,200 $9,000 15 $600 $20,000 15 $1,333 $16,050 10 $1,605 $300,000 15 $20,000 $6,000 15 $400 $5,000 $1,000 $5,900 5 $1,080 $5,000 5 $1,000 $10,000 $2,000 $25,000 20 $1,260 $550,000 10 $55,000 $1,000,000 10 $100,000 $30,000 20 $1,500 $50,000 20 $2,500 $25,000 20 $1,250 $25,000 10 $2,500 $60,000 10 $6,000 $60,000 20 $3,000 $2,600,000 20 $125,000 $1,200,000 30 $40,000 $10,000 10 $1,000 $30,000 20 $1,500 $50,000 20 $2,500 $10,000 20 $600 $20,000 10 $2,000 $20,000 20 $tow $80,000 20 $4,000 $70,000 20 $3,500 $10,000 20 $500 $30,000 10 $3,000 $160,000 5 $30,000 $20,000 S $6,667 $120,000 20 $6,000 $120,000 10 $12,000 $40,000 6 $8,000 $80,000 $16000 $20,000 15 $1,333 $250,000 10 $20000 $400,000 10 $40,000 $1,800,000 20 $90,000 $60,000 10 $6000 $10,000 $2,000 $100,000 10 $10,000 $300,000 10 $30,000 $330,000 10 $33,000 $400,000 10 $40,000 $166,000 20 $6,250 $1,000,000 10 $100,000 $60,000 20 $2,500 $300,000 18 $16,667 $900,000 20 $45000 $110,000 20 $5,500 $26,000 20 $1,260 $15,000 20 $750 $20,000 10 $2,000 $20,000 10 $2,000 $100,000 10 $10,000 $3,000,000 10 $300,000 $1,800,000 20 $80,000 $1,600,000 20 $80,000 $1,100,000 20 $55,000 Economic & Planning Systems, Inc. 24 Pr\144000s‘144019WestrovfhARepOrtk144019draftopL090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 P-52-U P-53-U P-59-U Replace Tot Lot (on South Side) Electronic Marquee Metal Roof Shade Structure/Patio Electronic Marquee Lower Plateau- Phase 2 Slurry Seal Upper/Lower Parking Lot Replace Tot Lot- Upper Park TennIs/Baeketball Courts Resurfaoing & Restripping Create Lower Parking Lot Restroom Renovation Print Score Booth, Dugouts, Restroams Walmorado Park Rehab- Add Picnic Shelter, Remove Shuffleboard, Exterior Snack Bar, Relocate Dumpster, Replace Basketball Courts Replace Tot Lot, install Walking Path Around Perimeter or Park Benches, Picnic Tables on Far Side of Playground General Park improvements Dog Waste Stands/Bags Drinking Fountains (New & Replacement) Park Directional Signs - Annual Picnic Shelter Lighting Repaint/Remodel Snack Bars & Score Booths Replace Snack Bars & Score Booths Reseal Various Sports Courts in Parks Small Amphitheatre (Cortex, Heritage?) Tot Lot Play Equipment Replacement Trails, Greenways, Bikeways Enhancement - Citywide Trees Widen Sidewalks for Access (12'); Cortez, Paimiew, Del Norte, Walmerado, Woodgrove, Gingrich, Shadow Oak, Friendship for City Sys/Safety Vehicles Aroma Parkette Install Concrete Walkway California Parkette Additional Benches/Picnic Tables Cameron Park Booster Pump & Irrigation Cortez Park Master Plan Revisions (Knoll) Park Walking Path Del Norte Park Balifield Netting (school) Tennis Court Rehabilitation Landscape (Around Edison Box) Friendship Park Snack Bar Remodel/Paint improve Turnabout Plant Slope (Remove Fence) Resurface Basketball Court Galster Park Wilderness Camp Remodel Complete Vista Area Connecting Trails - El R/Design/Construction Gingrich Park Retaining Wall/Slope Repair/Landscape Picnic Shetters (2) Maverick/Ridge Riders Park New Restroom/Snack Bar Parking/Road Municipal Pool Aquatic Center Design Aquatic Center - Construction Orangewood Park Renovate Snaek Bar/Score Booth Master Plan Construction for Soccer Fields, Expand Parking Lot Palmview Park Basketball Courts Re-Reroute Water Line Small Amphitheatre Shadow Oak Park Resurface Basketball Court New Signage Landscape East End Riprap Drain Picnic Shelters (2) $300,000 $100,000 $80,000 $100,000 $3,000,000 $120,000 $225,000 $52,000 $700,000 $50,000 $20,000 $300,000 $400,000 $15,000 $116,000 $10,000 $50,000 $15,000 $2,600,000 $100,000 $250,000 $4,800,000 $6,000,000 $30,000 $673,600 $32,000 $5,000 $50,000 $1,500,000 $250,000 $80,000 $30,000 $30,000 $10,000 $5,000 $40,000 $30,000 $500,000 $75,000 $1,900,000 $80,000 $100,000 $350,000 $500,000 $300,000 $2,000,000 $50,000 $4,000,000 $50,000 $65,000 $250,000 $40,000 $10,000 $50,000 $50,000 $100,000 P-47-U P-48-U P-49-U P-50-U P-51-U P-59-U P-55-U P-56-U P-57-U P-58-U P-33 P-34 P-35 P-36 P-37 P-38 P-39 P-40 P-41 P-42 P-43 P-94 P-45 P.46-Li 10 $30,000 10 $10,000 10 $8,000 10 $10,000 20 $160,000 10 $12,000 10 $22,500 10 $5,200 20 $35,000 13 $3,848 10 $2,000 13 $23,077 13 $30,769 10 $1,500 20 $5,800 20 $500 20 $2,500 10 $1,500 26 $100,000 10 $10,000 26 $10,000 20 $240,000 20 $300,000 20 $1,500 20 $33,075 20 $1,600 10 000 20 $2,500 25 $60,000 20 $12,500 10 $8,000 10 $3,000 10 $3,000 20 $500 20 $250 20 $2,000 10 $3,000 20 $26,000 20 $3,750 20 $95,000 $2,667 20 $5,000 20 $17,500 30 $18,867 20 $15,000 30 $66,867 20 $2,500 20 $200,000 20 $2,500 20 $2,750 25 $10,000 10 $4,000 20 $500 20 $2,500 20 $2,500 20 $5,400 Economic & Planning Systems, Inc. 25 PA144000s1144019WestCovInakReportk144019draftrpt_0902.15.docx 1,500 5,000 2,000 14,000 6,000 1,050 3,000 3,500 7,500 100,000 $9,000 $12,500 $4,000 $5,000 $10,000 $5,000 $5,000 $6,000 $8,000 $30,000 $100,000 $40,000 $280,000 $120,000 $21,000 $60,000 $70,000 $150,000 $2,000,000 $180,000 $250,000 $80,000 $100,000 $200,000 $100,000 $100,000 $120,000 $160,000 West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 P-60-11 P-61-11 P-63* P-64* P-65* Sunset Field Remove/Replace Restroom Doors Irrigation/Landscape Around Batting Cage Install Dugouts Waimerado Park Remove Shuffleboard/Landscape Picnic Shelter Woodgrove Park Landscape Perimeter/Slope Picnic Shelters (2) Aquatic Center Daycare Centers (3 needed) Bus (2 needed) $10,000 $60,000 $120,000 $10,000 $50,000 $40,000 $100,000 $10,000,000 $280,000 $120,000 20 20 20 20 20 20 20 20 13 10 $500 $2,500 $6,000 $500 $2500 $2,000 $5,000 $500,000 $21838 Mom TOTALS 803,002,950 $3,042,891 • These items are net present in the published CIP but were iclentliee by City staff as necessary items for the City. Sources: City of West Covina Capital Improvement Program for 2014 -.2012; addhlonal facilities IdenSfled by Community Service Department staff. Replacement schedule estimated by Public Work Cleparimest staff; Economic & Plattning SySteans, Inn. Cost Allocation Analysis The expected need for additional City administrative capital improvements is shown in Table 14. As shown, an average annual capital investment of about $210,000 is required, representing a 20-year capital cost of about $4.25 million. Table 14 City Administrative Capital Facilities Total Average Replacement Project No. Description of Item Cost of Item Annual Cost 20 Yr Cost B-7 City Buildings - Roof Repairs B-8 City Hall - Carpet Replacement B-9 City Hall - Ceiling Tiles Replacement- Second Floor B-10 City Hall - Roof & Skylight Replacement B-21 ADA Lift - Council Chambers B-23 City Hall - Management Resource Center (MRC) Refurbish B-24 Civic Center - Remove Remaining Trellis B-25 Civic Center - Memorial Wall - Sandblast/Repair, Repaint B-26 City Hall - Fire Alarm System Replacement B-28 Civic Center - Globe Lights and Poles Repiacemetn B-37-U City Hall Repaint Building Exterior Remodel Restrooms (Eight at $30k each) Refinish Wood on First Floor, Ceilings Replace Exterior Globes Remodel Building/Engineering - Front Partitions, Front Cou Crack Seal, Repaint, Restripe, amd Repair City Hall Parkin B-38-U Council Chambers Refinish Wood New Carpet/Drapes New Chairs or Reupholster B-39-U Communications Department Clean Up and Repaint Building Exterior $30,000 20 $50,000 10 $40,000 20 $280,000 20 $120,000 20 $21,000 20 $60,000 20 $35,000 10 $75,000 10 $500,000 5 $90,000 10 $250,000 20 $40,000 10 $50,000 10 $100,000 10 $100,000 20 $50,000 10 $60,000 10 $80,000 10 $50,000 10 $5,000 $100,000 Total $2,081,000 $213,050 $4,261,000 Sources: West Covina Capital Improvement Program; Public Works Department staff; Economic & Planning Systems, inc. Economic & Planning Systems, Inc. 26 Ma440004144019WestCovineVeportk144019draftrpt_090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Public Works The City public works development impact fee will cover new development's share of the costs associated with investments in Public Works vehicles and City yard above ground fuel tanks. These improvements will serve citywide needs, with new growth comprising a portion of the overall demand. The subsections below describe the nexus findings that justify the proposed City public works fee as well as the overall capital facilities and costs that inform the fee calculation. It should be noted that this public works fee does not cover a number of capital investments overseen by the Public Works department (e.g., transportation and sewer improvements). Nexus Findings Purpose The fee will help ensure adequate levels of City public works vehicles and City Yard Above Ground Fuel Tanks. Use of Fee Fee revenue will be used to help fund replace Public Works vehicles, provide new vehicles, and improve the City Yard Above Ground Fuel Tanks. Relationship New development in West Covina will increase the use of the Public Works vehicles and fuel tanks. Fee revenue will be used to fund a portion of these investments. Need Each new development project will add to the incremental need for and use of these public works facilities. Proportionality The cost of new City public works capital investments is allocated proportionately between new and existing development based on their relative share of demand (as measured by their relative share of service population) after a 20-year period. The cost share associated with new development is similarly allocated between land uses proportional to their relative generation of demand, as measured by service population. Cost Allocation Analysis The expected need for additional City public works capital improvements is shown in Table 15. As shown, an average annual capital investment of about $135,000 is required, representing a 20-year capital cost of about $2.7 million. Economic & Planning Systems, Inc. 27 P:V440004144019WestCovinallieportV44019draftrpt_090215.docx West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 15 Public Works Capital Facilities Total Cost of Useful Average Annual Replacement 20 Project No. Description of Item Item Life Cost Yr Cost $1,387,320 B-1 Public Works - Replace Haion System In information Systems and Communications 9-27 City Yard - Above Ground Fuel Tanks V-10 PublicWorks, Purchase Hybrid or Alternative Fueled Vehicles V-11 Public Works, Maint, 1-Ton Truck to Replace Unit 124 V-12 Public Works, Maint.- Sewer Vactor Jetter Truck to Replace Unit 115 V-13 Public Works, Maint.- 1/2 Ton Plck-Up Truck Unit 201 V-14 Public Works, Maint.- 1/2 Ton Van to Replace Unit 126 V-15 Public Works, Maint.- 1/2 Ton Van to Replace Unit 402 V-16 Public Works, Maint,- 4 Yard Dump Truck to Replace Unit 112 Total $12,464 $249,280 $37,500 $750,000 $11,000 $220,000 $3,000 $60,000 $30,000 $600,000 $2,500 $50,000 $2,500 $60,000 $2,800 $50,000 $6,000 $120,000 $107,464 $2,149,280 $62,320 $750,000 20 $110,000 10 $30,000 10 $300,000 10 $25,000 10 $25,000 10 $25,000 10 $60,000 10 Source: city of West Covina Capltal improvement Program and Public Works Department staff; Economic & Planning Systems, Ina. Economic & Planning Systems, Inc. 28 P:1144000.5\144019WestCovinaIR8port1144019drafttpt 090215,dacK 4. DEVELOPMENT IMPACT FEE CALCULATION BY LAND USE This chapter provides estimates of maximum development impact fees by land use for police, fire, parks, City administrative, and public works fees. Total citywide capital equipment and facilities costs (for the facility types evaluated) in the City of West Covina are estimated at $133.1 million for the next 20 years, as shown in Table 16. This includes a $24.2 million investment in police vehicles, equipment, and facilities, a $29.5 million investment in fire vehicle, equipment, and facilities, a $72.9 million investment in parks and recreation capital improvements, a $4.3 million investment in City administrative capital facilities, and a $2.1 million investment in public works capital improvements (primarily vehicles). New development's share of the cost, based on the preceding analysis and nexus principles, is $7.4 million, or 5.6 percent of the total cost. About $125.6million in costs are associated with demand from existing development and, therefore, cannot be funded through these development impact fees. The City will need to find alternative funding mechanisms to fund this portion of the costs. Maximum development impact fees are calculated by ailocating the costs attributable to new growth among residential and commercial uses, as shown in Table 17. This allocation is based on future service population growth. As shown, these costs are then divided by the respective levels of new projected development. Based on this methodology, 87.1 percent of these costs are allocated to new residential development (14.5 percent to single-family detached and 72.7 percent to single-family attached/multifamily), while 12.7 percent is allocated to nonresidential development, primarily office and retail development. Table 17 also shows the resulting maximum development impact fees by land use (before considering the administration cost) including $3,610 per single-family unit and $2,578 per single-family attached/multifamily unit. For nonresidential uses, the maximum fee is $1.38 per square foot (or $1,380 per 1,000 building square feet). State law allows jurisdictions to include the costs of administering the Impact Fee Program in the fee amount. Administrative requirements include collecting and allocating impact fee revenue, record keeping and reporting of fund activity, and periodic updates to the Fee Program. This analysis assumes that administrative costs of 2.0 percent of the total Fee Program will be applied to reflect the City's overhead and administrative burdens. As shown in Table 18, this would increase the maximum development impact fee to $3,682 per single-family unit, $2,630 per single-family attached/multifamily unit, and $1.41 per nonresidential building square foot (or $1,410 per 1,000 building square feet). Actual Fee Program administration costs will vary from year to year depending on development activity and other program requirements. Economic & Planning Systems, Inc. 29 PA1440004144019WestCovinalilleport1,144019draftrpt 090215.door West Covina Development Impact Fee Study Administrative Draft Report 09/02/15 Table 16 20-Year Capital Improvement Costs and Potential Fee Funding Item Police Capital Facilities Fire Capital Facilties Parks Capital Facilities City Administrative Capital Facilities Public Works Capital Facilities Total Capital Facilities Investment Total 20 Year Investment $24,248,323 $29,638,493 $72,857,815 $4,261,000 $2,149,280 $133,054,911 Average Annual $1,212,416 $1,476,925 $3,642,891 $213,050 $107,464 $6,652,746 Pot'l Fee Funded 5.6% $1,357,000 $1,653,000 $4,076,000 $238,000 $120,000 $7,444,000 Other Funding 94.4% $22,892,000 $27,886,000 $68,782,000 $4,023,000 $2,029,000 $125,612,000 Source: City of West Covina; Economic & Plant r9 Systems, Inc. Table 17 20-Year Capital Cost Allocations and Maximum Development Impact Fees by Land Use Fee Funded Capital Facilities Cost Allocation Single Family (SF) SF Atti Workspace Detached Multi Family 14.5% 72.7% 12.7% Max. Development Impact Fens Total Single Family (SF) $P Att./ Workspace Detached Muill Family 100% 300 2,100 685,000 Max. Pot Capital Facility Fee Funded $172,549 $210,187 $518,283 $30,263 $15,259 $946,041 Police Capital Facilities Fire Capital FaclItles Parks Capital Faciltles City Administrative Capital FacIlities Public Works Capital Facilities Total $1,357,000 $1,653,000 $4,076,000 8238,000 $120000 $7,444,000 $197,408 $240.469 $692.953 $34,623 $17,457 $1,082,910 8987,042 $1,202,344 $2,964,764 $173,114 $87,285 $8,414,840 81,357,000 $1,853,000 $4,076,000 $238,000 $120,000 $7,444,000 $858 $470 $0.25 $802 $573 $0.31 $1,977 $1,412 $0.76 $116 $82 44 $0.04 $58 $41.88 $0.02 $3,610 $2,578 $1.36 Source: Cilycif West Casing Economia & Planning &Morns, Inc. Table 18 Capital Facility Maximum Development Impact Fees by Land Use with Administrative Costs Max, Development Impact Fees Single Family (SF) SF Att./ Workspace Detached Multi Family {Per Sq.Ft.) Police Capital Facilities $671 Fire Capital Facilties $818 Parks Capital Facilities $2,016 City Administrative Capital Facilities $118 Public Works Capital Facilities $59 Total $3,682 (1) includes 2 percent administrative cost add-on. Source: City of West Covina: Economic & Planning Systems, Inc. $479 $0.26 $584 $0.31 $1,440 $0.77 $84 $0.05 $42 $0.02 $2,630 $1.41 Economic & Planning Systems, Inc. 30 P.1,1440004144019ViestCovInalReportti44014draftrpt 090215.docx ATTACHMENT NO. 2 Me Economics cffland Use MEMORANDUM To: Jeff Anderson, City of West Covina From: Teifion Rice-Evans, Economic and Planning Systems, Inc. Subject: City of West Covina Development Impact Fee Comparison; EPS #144019 Date: September 3, 2015 This memorandum describes the fee comparison research undertaken to provide a broader context for consideration of the potential adoption of new development impact fees in the City of West Covina. The technical fee calculations and estimated maximum new development impact fees in the City of West Covina are included under separate cover in the "City of West Covina Development Impact Fee Study" (September 2, 2015). EPS identified other cities in the San Gabriel Valley and selected adjacent communities with one or more development impact fees (either adopted or in the process of discussion/adoption) to provide an indication of practices in other proximate cities. The fee comparison research focused on cities with fees of the type under evaluation in the City of West Covina, specifically fees to pay for parks, police, fire, public works, and City administrative facilities. Most of these fees represent development impact fees established under the Mitigation Fee Act (referred to as Development Impact Fees in this memorandum). However, it is important to note that many California cities either charge fees to pay for park capital facilities or require direct parkland dedication through the Quimby Act. This can make comparisons of parks fees more complicated as many cities do not translate their Quimby Act standards into in-lieu fees though require an equivalent contribution through parkland dedication. This is particularly relevant as the City of West Covina currently has a Quimby Act requirement that translates into a fee of $10,950 per single-family unit.1 1 The Quimby Act (and associated fees) is typically only applied to developments falling under the Subdivision Map Act, generally including single-family and multifamily ownership units. Economic &Planning Systems, Inc. One Kaiser Plaza, Suite 1410 Oakland, CA 94612 510 841 9190 tel 510 740 2080 fax Oakland Sacramento Denver Los Angeles www.epsyS,cont Memorandum September 3, 2015 West Covina Development Impact Fee Comparison Page 2 Fee Programs and Comparisons Table 1 provides an indication of the prevalence of fees on new development to pay for selected capital facilities among the cities surveyed. As is generally common across California cities, parks fees and requirements (whether through the Mitigation Fee Act, the Quimby Act, or both) are a common fee type. This included seven out of the eight communities in the San Gabriel Valley surveyed (Temple City has conducted the necessary analysis but has not yet adopted the fees) as well as the three adjacent communities surveyed. The majority of these fees were developed as development impact fees under the Mitigation Fee Act, though some cities, including the City of Whittier and the City of Claremont, adopted park fees through the Quimby Act. Additionally, the City of Rosemead has a parks development impact fee and Quimby Act fee, while the City of Monterey Park has parks development impact fee and a Quimby Act dedication requirement. Other types of development impact are present in the Gabriel Valley and adjacent communities but are less common. Three of the eight San Gabriel Valley communities (San Gabriel, Rosemead, and Monterey Park) have public safety development impact fees (either police and/or fire), while two have other development impact fees for other public/ governmental facilities. Adjacent to San Gabriel Valley, both the cities of Burbank and Claremont have public safety fees, while some communities also have library fees. Table 2 shows development impact fee levels (as of September 2015) for the communities and categories noted in Table 1 for single-family development. The purpose of this table is to compare fees in different cities for a similar product type. Table 2 also shows the current City of West Covina fee levels and the maximum, potential fees as estimated in this Development Impact Fee Study. Table 2 indicates the following: • Parks Fees. The City of West Covina's existing Quimby Act parks fee for single-family development is below the parks fees for the City of Pasadena, South Pasadena, and Glendale, but above the existing parks fees in other cities. The addition of the maximum new parks and recreation capital facilities fee would add approximately $2,000 per unit in parks and recreation fees increasing the total parks development fees to about $13,000 per single- family unit. • Public Safety Fees. Cities with public safety fees show a wide variety of fee levels. Some cities charge separate police and/or fire fees, while others charge combined public safety fees. On an average basis, the maximum, potential City of West Covina public safety fees (police and fire combined) of about $1,490 per single family unit falls below average of cities with public safety fees in the San Gabriel Valley of about $1,925 per unit, though the average is driven up by the higher fee levels in Monterey Park. Looking at the Police fees alone, the new maximum potential police fee in West Covina is below the San Gabriel fee, but above the Burbank fee. Looking at the Fire fees alone, the maximum potential fire fee in the City of West Covina is above the individual fire fees in the three other cities with them. • Other Public Facilities Fees. In terms of other public facilities, the City included a modest set of public works facilities and City administration facilities. As a result, the maximum fee for these facilities categories combined is $177 per single-family unit which is modest and well below the level of other public facilities charged in communities with these fees. P:1144000s\144019WastCovinalPataYDIFVJevelopment Impact Fee Comparison 090315 reviseci.docx Table Summary of Development Impact Fees in Selected Cities (all cities have at least one fee) City! Land Use Type Year Updated / Established Public SafetY5 Parks Public/Govt Facilities Library San Gabriel Valley San Gabriel 2004 X Alhambral 2013 Rosemead2 2015 X X Pasadena 2007 South Pasadena 2008 Monterey Park 1987 X Ternple City3 2014 (X) Whittier4 2013 X X San Gabriel Valley Adjacent Burbank 2004 X X Glendale 2014 X Claremont 2015 X SGV Cities With Corresponding Fee 5/8 7/8 2/8 1/8 (count out of 8 cities surveyed) Total Cities With Corresponding Fee 5/11 10/11 2/11 3/11 (count out of 11 cities surveyed) (1) Alhambra titles its Parks Fee a "New Construction Fee"; all collected revenues are directed towards parks development. (2) Rosemead will be phasing in its total Parks Fee of $6,501 from 2015-2017, with an increase of $2,167 every year for three years.. (3) Fees are proposed and have not been adopted by City Council as of April 2015. (4) 2013 is the fee schedule date year date of adoption/update forthcoming from City staff. (5) Public Safety is composed of a Police and/or Fire Facilities Fee. Source: City websites; Economic and Planning Systems, Inc. Economic & Planning Systems, Inc. 9/3/2015 P:11440002l144019WestCovinaDatelDIF1144019DIF Comparison 090215 Parks Total Public Safety' Publicnovt Facilities City Land Use Type Library Total Fees Quimby Mitigation Fire Police Table 2 Per Unit Single-Family Development Impact Fees in Selected Cities.' San Gabriel Valley San Gabriel Alharnbra3 Rosemeacr Pasadena South Pasadena Monterey Park Temple City° Whittier $2,188 $2,188 $2,000 $7,301 $20,981 $11,780 $700 $4,140 $5,667 $758 $229 $4,162 $2,000 $8,604 $20,981 $11,780 $9,980 $4,140 $7,647 $800 $6,501 $20,981 $11,780 Dedications $700 $4,140 $145 $4,640 $1,013 $5,667 $963 $1,017 San Gabriel Valley Adjacent Burbanle $972 $972 $204 $42 $658 $2,122 Glendale's $17,850 $19,883 $19,883 $1,945 $21,828 Claremont $4,400 $4,400 $400 $5,200 Average of Cities with Fee $7,179 $8,393 $7,274 $1,284 $988 $1,207 $10,752 Average of SGV Cities with Fee $3,234 $5,062 $4,825 $1,924 $988 $1,017 excluding Pasadena Current West Covina Feesg $10,950 $10,950 $10,950 Maximum New Development Impact Fees - $2,016 $2,016 $671 $818 $177 $3,682 (based on draft nexus analysis) Total Maximum Pot I West Covina Feesl° $10,950 $2,016 $12,966 $671 $818 $177 $14,632 (1) Based on a 2,000 SF, 3-bedroom home prototype. (2) Some jurisdictions (e_g_ Rosemead, Monterey Park) opt fore Public Safety Fee, which may be composed of Fire andfor Police Facilities. (3) Alhambra titles its Parks Fee a "New Construction Fee"; all collected revenues are directed towards parks development. (4) Rosemead will be phasing in its total Parks Fee of 86,501 from 2015-2017, with an increase of $2,167 every year for three years.. (5) Dedication requires that a project must provide 3 acres of property for each 1,000 persons for parks and recreation purposes, or a pro-rated acreage based on the size of the property. (6) Fees are proposed and have not been adopted by City Council as of April 2015. (7) Currently being studied for updated fee levels. (8) Glendale's Quimby fee applies only for parcels that are subdivided. (9) Current Quimby fee reflects recent charges to a single family unit built in 2014. (90) From draft fee study calculations added to existing Quimby Act fee. (11) For City of West Covina includes Public Works and City Administrative Facilities Fees. Sources: Individual cities; Economic and Planning Systems, Inc. Economic & Planning Systems, Inc. 9/3/2015 P1144000s1144019WestCovinalDataIDIF1144019DIF Comparison 090215 ATTACHMENT NO. 3 CITY COUNCIL RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING CODE AMENDMENT NO. 15- 02 RELATED TO DEVELOPMENT IMPACT FEES WHEREAS, on September 15, 2015, the City Council considered the initiation of a code amendment related to establishing Development Impact Fee standards in the Municipal Code; and WHEREAS, the studies and investigations made by the City Council and in its behalf reveal the following facts: 1. To date the City has only charged development impact fees through Park Dedication Fees (Quimby Act) and for Art in Public Places. The City does not currently charge new development for the cost of providing additional facilities to provide such as Police, Fire, Public Works, Parks and Recreation and for general City Administration. 2. New development generates impacts on public services, public facilities, and community amenities for which revenues generated through property taxes and other means are generally insufficient. 3. If additional capital facilities and public services are not added as development occurs, the existing facilities and services will not be adequate to serve the community. This could result in adverse impacts, such as inadequate public safety services, inadequate equipment for public works, inadequate parks and recreation facilities, and inadequate other general government facilities. 4. The proposed action is considered to be exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the proposed action consists of a code amendment, which does not have the potential for causing a significant effect on the environment. SECTION NO. 1: The above recitals are true and correct and are incorporated herein as if set forth herein in full. SECTION NO. 2: The City Council of the City of West Covina, in conformance with Section 26-153(a)(3) of the West Covina Municipal Code, does hereby initiate a code amendment to provide for Development Impact Fees in conformance with the Municipal Code, Z:\Proposat_kequest forlImpact Fee StudyICC Meeting 9.15.15 \CA Initiate Resolution.doe City Council Resolution No. Code Amendment 15-02 September 15,2015 Page 2 PASSED AND APPROVED on this 15 th day of September 2015. Mayor ATTEST: City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF WEST COVINA I, Nickolas S. Lewis, City Clerk of the City of West Covina, California, do hereby certify that the forgoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting held thereof on the 15 th day of September 2015 by the following vote of the City Council: AYES: NOES: ABSTAIN: ABSENT: City Clerk APPROVED AS TO FORM: City Attorney Z:\Proposal_Requcst forInpact Fee StudyleC Meeting 9.15.151CA Initiate_Resolution.doc TO: AGENDA ITEM NO. 14 DATE September 15, 2015 Mayor and City Council FROM: Tom Mauk Interim City Manager City of West Covina Memorandum BY: Delfino "Chino" Consunji, RE. Public Works Director/City Engineer SUBJECT: AWARD OF BID FOR RESIDENTIAL STREETS REHABILITATION (PROJECT NO. SP-15106) RECOMMENDATION: It is recommended that the City Council accept the bid of Sully-Miller Contracting Company of Brea, California in the amount of $494,890.12 as submitted at the bid opening on August 25, 2015, and authorize the City Manager and City Clerk to execute an agreement with Sully-Miller Contracting Company for the work to be done. DISCUSSION: This project was approved by the City Council in the Fiscal Years 2014-2015 and 2015-2016 Capital Improvement Program (CIP) budgets. The project consists of grinding down two inches of existing asphalt concrete pavement and installing two inches of asphalt concrete; repairing damaged curbs, gutters, and sidewalks; constructing Americans with Disabilities Act (ADA) compliant curb access; adjusting ramps; manhole covers; installing new pavement legends and striping; and all appurtenant work. It includes 21 segments of residential streets within the Community Development Block Grant (CBDG) areas (Attachment No.1). The street sections were selected based on the condition of the existing pavement as recommended by the City's Pavement Management System. The total length of the project is approximately 3.03 miles (an area of about 533,105 square feet). A notice inviting bids for this project was advertised in the San Gabriel Valley Tribune on August 4, and August 11, 2015. In addition, the project was advertised in the Contractor's Green Sheet, the Daily Construction Service, and Reed Construction Service. On August 25, 2015, five bids were received, opened, and reviewed for errors, and all were determined to be responsive. According to State and local law, the project must be awarded to the lowest responsible bidder. The lowest responsible bid was $494,890.12 submitted by Sully-Miller Contracting Company of Brea, California. Their references have been checked and were satisfactory. They have a valid contractor's license. Page 2 — September 15, 2015 The following is a summary of the bids received. \ (). ( ontractor ( it\ rid \ mount 1. Sully-Miller Contracting Co. Brea $494,890.12 2. Hardy & Harper Santa Ana $533,000.00 3. All American Asphalt. Corona $549,915.00 4. PALP, Inc. Long Beach $552,374.00 5. Gentry Brothers, Inc. Irwindale $572,019.60 If a contract is awarded, construction is scheduled to commence in mid-October 2015, and is expected to be completed at the end of November 2015. For safety purposes and to facilitate dropping off and picking up of students, construction will not be peanitted adjacent to schools at least 45 minutes before and after the schools' start and finish times. Pursuant to the California Environmental Quality Act Guidelines Section 15302-Class 2, the aforesaid improvements are of a minor nature and, therefore, the project is categorically exempt from the requirements for Environmental Impact Report or Negative Declaration of Environmental Impact Report. ALTERNATIVES: Reject all bids received and re-advertise. Since a favorable bid was received and within budget, it is unlikely that seeking new bids would reduce costs any further. FISCAL IMPACT: There will be no impact to the General Fund. Funds were approved as part of the Fiscal Year 2015-2016 CIP budget by the City Council. The funds available for this project are as follows, Project No. 1 1111(1 ,. ‘A:(241t1Ill \ 0. ll ‘11101It SP-15106 Community Development Block Grant (CDBG)* 131.80.7005.7200 $700,000 Community Development Block Grant (CDBG Fund 131) — This fund is a Federal Block Grant Funds through the Community Development Act and may only be used for programs that benefit lower income, elderly and/or handicapped persons. These funds are generally used by the City for street rehabilitation, ADA curb ramp access and sidewalk construction in designated CDBG areas. Z:\AGENDA- 2015\Award of Bid for SP-15106.doe Page 3 — September 15, 2015 Total project costs are broken down as follows: n 0. 11-cm timuunt 1. Construction Contract $494,890.12 2. , Preliminary Engineering and design(1) 10,000.00 3. Construction Administration (1) 10,000.00 4. Construction Management, Testing and Inspections (3) 49,489.00 5. Contingencies (2) 49,489.00 Total $613,868.12 (1) Preliminary engineering and design provides City staff cost in administering program funding and final design of the project. (2) Contingencies are estimated at 10% of construction cost to be approved by City Council as part of Public Works bidding procedures. Contingencies are paid to contractors for overages, unforeseeable conditions, and additional repairs. (3) Contracted with one of City's approved consulting firms, estimated at 10% of the construction cost. Savings upon completion of the project will be available for reprogramming igilel Hemand& Public Works Project Swervisor Reviewed and Approved by: Dikfino "Chino" Co nji, P.E. Public Works Dir r/City Engineer Community Services Attachment No. 1 List of Street Segments Attachment No. 2 Contract Agreement Z:\AGENDA - 2015\Award of Bid for SP-15106.doc ATTACHMENT NO. 1 LIST OF STREET SEGMENTS SIMI I NI \\II , ‘.,1.( HON', Brookfield Place Woodgate Drive to street end 2 Fairridge Circle Temple Avenue to street end 3 Glenridge Circle Temple Avenue to street end 4 Greenleaf Drive Altamira Drive to Greenlear Drive Kam Court Kimberly Drive to street end Kate Court Kimberly Drive to street end 7 Kerry Court Kimberly Drive to street end Kimberly Drive Jacqueline Drive to Kam Court 9 Kimberly Drive Kam Court to Kathleen Court 10 Kimberly Court Kathleen Court to Gemini Street 11 Lainie Street Lisa Street to street end 12 Lydia Street Lainie Street to Nanette Avenue 13 Lynn Court Nanette Avenue to street end 14 Magdalena Drive Miranda Street to Amar Road 15 Melissa Street Marcella Avenue to Magdalena Drive 16 Miranda Street Marcella Avenue to Magdalena Drive 17 Nanette Avenue Nina Street to street end 18 Nanette Avenue Lydia Street to Leanna Drive 19 Oakridge Circle Temple Avenue to street end 20 Pam Place Woodgate Drive to street end 21 Tory Street Woodgate Drive to street end CONTRACT SERVICE AGREEMENT FOR Project No. SP-15105 Residential Street Rehabilitation THIS CONTRACT SERVICES AGREEMENT (herein "Agreement"), is made and entered into this 15th day of September, 2015 by and between the CITY OF WEST COVINA, a municipal corporation, (herein "City") and Sully-Miller Contracting Co. (herein "Contractor"). The parties hereto agree as follows: RECITALS A. City requires removal and replacement of conventional and rubberized asphalt, driveway approaches, curb and gutter, sidewalks, access ramps, manholes adjustment, mill and overlay 1.5-inches of asphalt concrete, installation of striping, and all appurtenant work as per plans and specifications at various Residential streets citywide. Contractor has represented to City that Contractor is qualified to perform said services and has submitted a proposal to City for same. B. City desires to have Contractor perform said services on the terms and conditions set forth herein. NOW, THEREFORE, based on the foregoing Recitals and for good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties, City and Contractor hereby agree as follows: 1. SERVICES OF CONTRACTOR 1.1 Scope of Services - In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the "Special Provisions — Section 3 — Description of Work", which services may be referred to herein as the "services" or "work" hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards 1.2 Documents Included in Contract - This contract consists of the Notice to Contractors and Instructions to Bidders, Bid Documents, Proposal Schedule, Bid Bond (Bidder's Guarantee), Designation of Sub-contractors, Statement of Non-collusion by Contractor, Certification of Principal, Supplemental Information, Specifications, plans, this Contract Services Agreement, Faithful Performance Bond, Labor and Materials Bond, Guarantee, Tax Identification Form, Workers' Compensation Certification, and any and all schedules and attachments to it which are incorporated as if fully set forth herein. In the event of an inconsistency, this Agreement shall govern. 1.3 Compliance with Law - All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction in effect at the time service is rendered. 1.4 Licenses, Permits, Fees, and Assessments - Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor's performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes penalties or interest levied, assessed or imposed against City hereunder. Contractor shall be responsible for all sub-contractors' compliance with this Section 1.4. 1.5 Familiarity with Work - By executing this Contract, Contractor warrants that Contractor (a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor's risk until written instructions are received from the Contract Officer. 1.6 Care of Work - The Contractor shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City's own negligence. 1.7 Further Responsibilities of Parties - Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. Contractor shall require all sub-contractors to comply with the provisions of this agreement. 1.8 Additional Services - City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of twenty-five percent (25%) or less of the Contract Sum, or in the time to perform of one hundred eighty (180) days or less may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefore. 1.9 Special Requirements - Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the "Special Requirements" attached hereto as Exhibit "A through F" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "A through F" and any other provisions of this Agreement, the provisions of Exhibit "A through F" shall govern. 1.10 Prevailing Wages Laws - In accordance with Labor Code Section 1770 et seq., the director of the Department of Industrial Relations of the State of California has ascertained a general prevailing rate of wages which is the minimum amount which shall be paid to all workers employed to perform the work pursuant to this Agreement. A copy of the general prevailing wage rate determination is on file in the office of the City Clerk and is hereby incorporated in this Agreement. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day. Contractor must forfeit to the City Twenty Five Dollars ($25.00) a day for each worker who works in excess of the minimum working hours when Contractor does not pay overtime. Contractor is required to post a copy of such wage rates at all times at the contract site. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hour laws will be enforced. Contractor also shall comply with State law requirements to maintain payroll records and shall provide for certified records and inspection of records as required by California Labor Code Section 1770 et seq., including Section 1776. Contractor shall comply with all statutory requirements relating to the employment of apprentices. For Federal Prevailing Wages see Exhibit "F". 2. COMPENSATION 2.1 Contract Sum - For the services rendered pursuant to this Agreement, the Contractor shall be compensated as specified herein, but not exceeding the maximum contract amount of Four Hundred Ninety-Four Thousand, Eight Hundred Ninety Dollars and Twelve Cents ($494,890.12) (herein "Contract Sum"), except as provided in Section 1.8. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City; Contractor shall not be entitled to any additional compensation for attending said meetings. 2.2 Progress Payments - Prior to the first day of the month, during the progress of the work, commencing on the day and month specified in the Agreement, Contractor shall submit to the Contract Officer a complete itemized statement of all labor and materials incorporated into the work during the preceding month and the portion of the contract sum applicable thereto. Upon approval in writing by the Contract Officer, payment shall be made in thirty (30) days. City shall pay Contractor a sum based upon ninety five percent (95%) of the contract price apportionment of the labor and materials incorporated into the work under the contract during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 7.3 of this Agreement for retention of funds. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence - Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance - Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the "Schedule of Performance" attached hereto as Exhibit "A", if any, and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer. 3.3 Force Majeure - The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes for the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. 3.4 Term - Unless earlier terminated in accordance with Section 7.8 of this Agreement, this Agreement shall continue in full force and effect until final approval and acceptance of the proj ect by the Contract Officer. 4. COORDINATION OF WORK 4.1 Representative of Contractor - The following principals of Contractor are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Dean rnis mcen reAVCA daLLSe._ It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the foregoing principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. 4.2 Contract Officer - The Contract Officer shall be such person as may be designated by the City Manager or City Engineer of City. It shall be the Contractor's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.3 Prohibition Against Assignment - The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. 4.4 Independent Contractor - Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its sub-contractors, agents or employees, performs the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor's employees, sub- contractors, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its sub-contractors, agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venture or a member of any joint enterprise with Contractor. 4.5 Identity of Persons Performing Work - Contractor represents that it employs or will employ at its own expense all personnel required for the satisfactory performance of any and all tasks and services set forth herein. Contractor represents that the tasks and services required herein will be performed by Contractor or under its direct supervision, and that all personnel engaged in such work shall be fully qualified and shall be authorized and permitted under applicable State and local law to perform such tasks and services. 4.6 Utility Relocation - City is responsible for removal, relocation, or protection of existing main or trunldine utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse contractor for any costs incurred in locating, repairing damage not caused by contractor and removing or relocating such unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities. 4.7 Trenches or Excavations - Pursuant to California Public Contract Code Section 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117: of the Health and Safety Code, that is required to be removed to a Class I, Class 11, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site different from those indicated; or (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract. b)• City shall promptly in-vestigate the conditions, and if it finds that the conditions do materially So diffcr, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, performance of any part of the work shall issue a change order per Section 1.8 of this Agreement. That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or inN'olve hazardous waste, or cause a decrease or increase in Contractor's cost of, or tune required for, performance of any part of the work, Contractor shall not be excused form any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance - The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policieS of insurance: [ (X) C'ovet-ae t( heck it applicable) Comprehensive Ureneral Liability Insurance Niiiiitimin Limits $1,000,000 per occurrence combined single .limit (including premises and Operations) ( ) Contractual Liability Insurance Products Liability Insurance : $1,009,000 limit (X) Comprehensive Automobile Liability Insurance (includes owned, non-owned, and hired automobile hazard $1,000,000 per occurrence combined single limit ( ) Professional Liability Insurance (providing for a . . one year discovery period) • $1,000,000 limit (X) Liability Insurance Statutory $1,000,000 per occurrence CONDITIONS: In accordance with Public Code Section 20170, the insurance of surety companies who provide or issue the policy shall have been admitted to do business in the State of California with a credit rating of "A" minus or better. This insurance shall not be canceled, limited in scope or coverage or non-renewed until after thirty (30) days prior written notice has been given to the City Engineer, City of West Covina, 1444 West Garvey Avenue South, West Covina, California 91790. Any insurance maintained by the City of West Covina shall apply in excess of and not combined with insurance provided by this policy. The City of West Covina, its officers, employees, representatives, attorneys, and volunteers shall be named as additional named insureds. Prior to commencement of any work under this contract, Contractor shall deliver to the City insurance endorsements confirming the existence of the insurance required by this contract, and including the applicable clauses referenced above. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signator's company affiliation and title. Should it be deemed necessary by the City, it shall be Contractor's responsibility to see that the City receives documentation, acceptable to the City, which sustains that the individual signing said endorsements is indeed authorized to do so by the insurance company. If the Contractor fails to maintain the aforementioned insurance, or secure and maintain the aforementioned endorsement, the City may obtain such insurance, and deduct and retain the amount of the premiums for such insurance from any sums due under the agreement. However, procuring of said insurance by the City is an alternative to other remedies the City may have, and is not the exclusive remedy for failure of Contractor to maintain said insurance or secure said endorsement. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which became due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its sub-contractor's performance of the work covered under this agreement. Each contract between the Contractor and any sub-contractor shall require the sub-contractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to this Section 5.1. 5.2 Indemnification - Contractor shall indemnify the City, its officers, agents and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, sub-contractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise, from Contractor's negligent perfounance of or failure to perform any term, provision, covenant or condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the City, its officers, agents or employees, and in connection therewith: a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses including legal costs and attorneys' fees incurred in connection therewith; b Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', emPloyees sub-contractors', or invitees') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; hi the event the City, its officers, agents or-employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in. such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to City d) Contractor's duty to defend and indemnify as set out in this Section 5.2 shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pui -suant to any state or federal law or regulation regarding hazardous . substances ; including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law• or the Porter-Cologue Water Quality Control Act, as any of those statutes may be amended from time to time. The Contractor's indemnification obligations pursuant to this Section 5.2 shall survive the termination of this Agreement. Contractor shall require the same indemnification from all sub-contractors. 5.3 Labor and Materials, Performance and Warranty Bonds - Concurrently with execution of this Agreement, Contractor shall deliver to City a labor and materials bond, a performance bond and a warranty bond, in the forms provided by the City Clerk, which secures the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement. 5.4 Sufficiency of Insurer or Surety - Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City due to unique circumstances. In the event the Risk Manager of City ("Risk Manager") determines that the work or services to be performed under this Agreement creates an increased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the performance bond required by this Section 5 may be changed accordingly upon receipt of written notice from the Risk Manager; provided that the Contractor shall have the right to appeal a determination of increased coverage by the Risk Manager to the City Council of City within ten (10) days of receipt of notice from the Risk Manager. 5.5 Substitution of Securities - Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under the contract for the work to be performed will be permitted at the request and expense of the successful bidder. 6. RECORDS AND REPORTS 6.1 Reports - Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.2 Records - Contractor shall keep, and require sub-contractors to keep, such books and records (including but not limited to payroll records as required herein) as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the perfounance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3)- years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. 63 Ownership. of DOcuments - All drawings, specifications, reports, records, documents and other materials prepared by Contractor, its employees, sub-contractors and agents in the Performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment 01 :additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder. Contractor may retain copies of Such documents for its own use Contractor shall have an Unrestricted right to use the concepts embodied therein. All sub-contractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. ENFORCEMENT OF AGREEMENT 7.1 California Law - This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising; out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of Such action. 7.2 Disputes - In the event either party fails to perform its obligations hereunder, the nondefaulting party shall provide the defaulting party vvritten notice of such default. The defaulting party shall have ten (10) days to cure the default; provided that, if the default is not reasonably susceptible to being cured within said ten (10) day period, the defaulting party shall have a reasonable time to cure the default, not to exceed a maximum of thirty (30) days, so long as the defaulting party commences to cure such default Within ten (10) days of service of such notice and diligently prosecutes the cure to completion; provided further that if the default is an immediate danger to the health safety and general Welfare, the defaulting party shall take such immediate action as may be necessary. Notwithstanding the foregoing, the nondefaulting party may, in its sole and absolute discretion, grant a longer cure period. Should the defaulting party fail to cure the default within the time period provided in this Section, the nondefaulting party shall have the right, in addition to any other rights the nondefaulting party may have at law or in equity, to terminate this Agreement. Compliance with the provisions of this Section 7.2 shall be a condition precedent to bringing any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the dispute is not cured. 7.3 Retention of Funds - Progress payments shall be made in accordance with the provisions of Section 2.2 of this agreement. In accordance with said section, City shall pay Contractor a sum based upon ninety five percent (95%) of the contract price apportionment of the labor and materials incorporated into the work under the contract during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security to be paid to the Contractor within sixty (60) days after final acceptance of the work by the City Council, after Contractor shall have furnished City with a release of all undisputed contract amounts if required by City. In the event there are any claims specifically excluded by Contractor from the operation of the release, the City may retain proceeds (per Public Contract Code 7107) of up to 150% of the amount in dispute. City's failure to deduct or withhold shall not affect Contractor's obligations hereunder. 7.4 Waiver - No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative - Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action - In addition to any other rights or remedies, either party may take legal action, law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 7.7 Liquidated Damages - Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit "A"). In addition, liquidated damages may be assessed for failure to comply with the emergency call out requirements described in the scope of services. The City may withhold from any moneys payable on account of services performed by the Contractor any accrued liquidated damages. 7.8 Termination for Default of Contractor - If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, Contractor shall vacate any City owned property which Contractor is permitted to occupy hereunder and City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of setoff or partial payment of the amounts owed the City as previously stated. 7.9 Attorneys' Fees - If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commeneement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 8: OFFICERS AND EMPLOYEES, NONDISCRIMINATION 8.1 NonEliability of City Officers and Employees - No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreetnent. 8.2 Conflict of Interest - The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.3 Covenant Against Discrimination - Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. To the extent required by law, contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to theirrace, color, creed, religion, sex, marital status, national origin, or ancestry. MISCELLANEOUS PROVISIONS 9.1 Notice - Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the US Mail, prepaid, first-class mail, return receipt requested, addressed as follows: To City: City of West Covina 1444 West Garvey Avenue South West Covina, California 91790 Attention: City Engineer To Contractor: Sully-Miller Contracting Co. 135 S. State College Blvd. Suite 400 Brea, CA, 92821 Tel: (714) 578-9600 Fax: (714) 578-9672 Email: estimating@sully-miller.com 9.2 Interpretation - The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Integration; Amendment - It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 9.4 Severability - In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.5 Hiring of Illegal Aliens Prohibited - Contractor shall not hire or employ any person to perform work within the City of West Covina or allow any person to perfonn work required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. 9.6 Unfair Business Practices Claims - In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, the contractor or sub-contractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body renders final payment to the contractor without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.) 9.7 Corporate Authority - The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. 9.8 Legal Responsibilities - The Contractor shall keep itself informed of City, State, and Federal laws, ordinances and regulations, which may in any manner affect the performance of its services pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws, ordinances and regulations. Neither the City, nor their officers, agents, or employees shall be liable at law or in equity as a result of the Contractor's failure to comply with this section. 9.9 Termination for Convenience — The City may terminate this Agreement without cause for convenience of the City upon giving contractor 30 days prior written notice of termination of the Agreement. Upon receipt of the notice of termination the Contractor shall cease all further work pursuant to the Agreement. Upon such termination by the City the Contractor shall not be entitled to any other remedies, claims, actions, profits, or damages except as provided in this paragraph. Upon the receipt of such notice of termination Contractor shall be entitled to the following compensation: I. The contract value of the work completed to and including the date of receipt of the notice of termination, less the amount of progress payments received by contractor. 2. Actual move-off costs including labor, rental fees, equipment transportation costs, the costs of maintaining on-site construction office for supervising the mover-off -3. The cost of materials custom made for this Agreement which cannot be used by the Contractor in the normal course of his business; and .which have not been paid for by City in progress payments. 4. All costs shall not include any markups as might otherwise be allowed by any plans or specifications which were a part of the Agreement The provisions of this paragraph shall supereede any other provision of the Agreement or any provision of any plans, specification, addenclunis or other documents which are or may become a part of this Agreement. City and Contractor agree that the provisions of this paragraph are a substantive part of the consideration for this Agreement. This contract and the work it will carry out is being funded in whole or in part with funding from the U.S. Department of Housing and Urban Development through the Los Angeles County Office of Community Development CDBG program. 10.] Access to Records and Retention of Records - The Community Development Block Giant (CDBG) recipient, Los Angeles County Office of Community Development, the U.S. Department of Housing and Urban Development (HUD), the Comptroller General of the United States, or any of their duly authorized representatives, shall have access to any books, documents, papers, and records of the contractor which are directly pertinent to this contract, for the purpose of making audit, examination, excerpts, and transcriptions. All required records must be maintained by the contractor for four years after the recipient makes final payments and all other pending matters are closed. 10.2 Section 3 of the Housing and Community Development Act - (Applicable to contracts/subcontracts of $100,000 or more AND when the funding recipient has received $200,000 or more in CDBG and/or other federal funding. A. The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. C. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135. E. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135. F, Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this Contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this Contract that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). 10.3 Emerging-Small (ESB), Minority-owned (MBE) and Women-owned (VVBE) Business Enterprises - (Applicable to contracts/subcontracts of $25,000 or more in CDBG and/or other funding.) Affirmative steps must be taken to assure that emerging small, minority and women-owned businesses and firms located in labor surplus areas are used when possible as sources of supplies, equipment, construction and services. Affirmative steps shall include the following: o Include any such qualified firms on solicitation lists. o Assure that such firms are solicited whenever they are potential sources. o When economically feasible, divide total requirements into smaller tasks or quantities so as to permit such firms maximum opportunities for participation through subcontracting. o Where possible, establish delivery schedules which will encourage such participation. o Use the services and assistance of the Small Business Administration, the Office of Minority, Women and Emerging Sma1113usiness (State of Oregon) and other sources when appropriate. 10.4•Prohibition on the Use of Federal Funds for Lobbying (Applicable to federally funded contracts/subcontracts of $100,000+) The contractor hereby certifies that: a. No federal funds have been paid or will he paid, by or on behalf of Los Angeles County Office of Community Development, to any person for influencing or attempting to influence an officer or employee of any ,agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. b. If any funds other than federal funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract; grant, loan, or .cooperative agreement, the local government shall complete and submit Standard t'orm,LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 10.5 Lead-Based Paint - The use of lead-based paint on any interior or exterior surface is prohibited. For properties constructed prior to 1978, the construction work performed under this contract is subject to the Lead-Based Paint Regulations adopted by the .Department of Housing and Urban Development (24 CFR Part 35) and by the State of Oregon (OAR 333.069). 49 10.6 Equal Employment Opportunity Contractor shall comply with the requirements of Executive Order 11246, "Equal Employment Opportunity," as amended by Executive Orders 11375, "Amending Executive Order 11246 Relating to ,Equal Employment Opportunity," and as supplemented by regulations at 41 CFR Chapter 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity ; Department of Labor," which provide that no person shall be discriminated against on the basis of race, color, religion, sex or national origin in all phases of employment during the performance of federal or federally assisted construction contracts. Contractors and subcontractors on federal• and federally assisted construction Contracts shall take affirniative action to insure. fair treatment in employment, upgrading, demotion, or transfer; recruitment or recruitment advertising 10.7 Copeland "Anti-Kickback" Act - Contractor shall comply with the Copeland "Anti-Kickback" Act (18 USC 874), as supplemented by Department of Labor regulations (29 CFR part 3, •"Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). Contractor and all subcontractors shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. 10.8 Davis-Bacon Act (Applicable to CDBG contracts for construction or rehabilitation of housing containing eight or more CDBG-assisted units; any public facility or public improvement contract exceeding $2,000; applicable to HOME contracts for construction of rehabilitation of twelve or more HOME-assisted units.) All laborers and mechanics employed by contractors or subcontractors on construction work assisted under this part shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis- Bacon Act, as amended (40 USC 276a-276a-5), and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours and Safety Standards Act (40 USC 327-333), and the contractors and subcontractors shall comply with all regulations issued pursuant to these Acts and with other applicable Federal laws and regulations pertaining to labor standards. 10.9 Contract Work Hours and Safety Standards Act - In compliance with Sections 102 of the Contract Work Hours and Safety Standards Act (40 USC. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5), each contractor/subcontractor shall compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 6 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. In compliance with Section 107 of the Act, no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. 10.10 Clean Air Act and the Federal Water Pollution Control Act (Applicable to federally-funded contracts and subcontracts in excess of $100,000) This contract is subject to the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1857 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 15, as amended from time to time. Contractor and any of its subcontractors agree to the following requirements: 1) A stipulation by the contractor and subcontractors that any facility to be utilized in the performance of any nonexempt contract or subcontract is not listed on the List of Violating Facilities issued by the Environmental Protection Agency (EPA) pursuant to 40 CFR 32; 2) Agreement by the contractor to comply with all requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8) and Section 308 of the Federal Water Pollution Control Act, as amended, (33 USC 1318) relating to inspection, monitoring, entry, reports, and information, as well as all other requirements specified in said Section 114 and Section 308, and all regulations and guidelines thereunder; 3) A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA list of Violating Facilities; and 4) Agreement by the contractor that he will include or cause to be included the criteria and requirements in paragraph (1) through' (4) of this section in every non-exempt subcontract and requiring that the contractor will take such action as the government May direct as a means of enforcing such provisions. In no event shall any amount provided under this contract be utilized with respect to a theility which has given rise to a conviction under S ection 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act. 10:11 Debarment and Suspension - Contractor certifies that neither it nor any of its employees or subcontractors are parties listed on the General Services Administration's List of Parties Excluded from Federal Pro. nrement or Nonprocurement Programs in accordance with Executive Orders 12549 and 12689., "Debarment and Suspension," as set forth at 24 CFR part 24. This list . contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. 10.12 Termination of COntract 12a. Termination by Owner: 1) Without Cause This contract and the work it will carry out is being funded in whole or in part with funding from the U.S. Department of Housing and Urban Development through the Los Angeles County Office of Community Development CDBG program. The owner may terminate this contract: 1) in the event that the grant funds are rescinded in part or in whole; or 2) If the work is stopped under an order of any court, or other public authority, for a period of thirty (30) calendar days, through no act or fault of the 'owner, owner's employees, or legal representatives. 2) With Cause The owner may terminate this contract if the contractor is in substantial breach of the provisions contained in the contract documents and/or repeatedly fails to • Comply with federal, state, and local law's and regulations; • Provide for the safety of all occupants and public at large during the execution of the work; • Properly pay subcontractors or suppliers for material or labor; • Correct defective work; or • Progress in a timely manner which demonstrates that the contractor can complete the project within the specified time-frame. The contractor, upon receipt of written notice from the owner to terminate this contract, shall: 1) Cease operation in a manner that protects and preserves work already performed. 2) Instruct all subcontractors to cease work and cancel all special orders with suppliers. 3) Leave the work site in a condition that is free of hazards to occupants and the public. If the owner terminates the contract, the contractor may be eligible to receive payment for all work completed, and for material orders already in progress and for which cancellation is not possible. Payment is contingent upon the same inspection and approval procedures by owner and grantor as specified for progress payments. If the owner terminates this contract with cause, the owner may withhold payment until all work is otherwise completed by reasonable means detetmined by owner. If the unpaid balance of this contract is not sufficient to cover reasonable costs incurred by the owner to complete the work, the contractor shall pay the difference to the owner. If the unpaid balance of this contract is in excess of the reasonable costs incurred by the owner to complete the work, then the owner shall pay the difference to the contractor. Reasonable costs include architect fees, administrative fees, and other expenses made necessary by the above causes. 12b. Te ruination by Contractor Contractor may terminate this contract if: • Work is stopped under an order of any court, or other public authority, for a period of thirty (30) calendar days, through no act or fault of the contractor, contractor's employees, subcontractors, or other persons or agents performing work under direct or indirect contract with the contractor; • Work is stopped due to a declared state of emergency by government action; • Owner fails to make payment within the time-frame and conditions stated in the Contract Documents; • Owner repeatedly, through no fault of the contractor, contractor's employees, subcontractors, or other persons or agents performing work under direct or indirect contract with the contractor, causes delay of the work; and, such delay constitutes in excess of 100 percent of the total number of days scheduled for completion of the work specified in the Contract Documents. Sully-1)1111er Contracting Company Date: 12c. Termination by Mutual Consent Both parties may terminate this contract by mutual written consent. IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above. City of West Covina Date: Tom Malik Interim City Manager ATTEST: Assistant City Clerk of the City of West Covina APPROVED AS TO FORM: City Attorney APPROVED AS TO INSURANCE: Date: Date: Date: Risk Management City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 15 FROM: Tom Mauk Interim City Manager DATE September 15, 2015 BY: Carl Crown Interim Human Resources Director SUBJECT: ALTERNATIVE WORK WEEK SCHEDULES RECOMMENDATION: It is recommended that the City Council receive and file this information request. BACKGROUND: At the June 16, 2015 City Council meeting, Councilman Mike Spence requested staff to provide information regarding the financial and operational impacts should City Hall and the City Yard open for business from Monday through Friday. In a follow-up to this request, Mayor Fredrick Sykes asked staff to provide additional information regarding the financial and operational impacts should City Hall and City Yard open for business Monday through Saturday. Mayor Sykes request entails a five and one-half day work week (Monday — Friday, and half-day Saturday). DISCUSSION: Both scheduling alternatives will carry additional costs for general operations and overhead. Each alternative will also require substantial lead time to fully implement due to numerous logistical and administrative issues the City will need to address. Monday — Friday Work Week (5 Operational Days) The Monday through Friday work week (5/8 schedule) will add 50 days to the City's operational calendar. These additional working days will increase the City's overhead costs for electricity, water, gas, and janitorial services associated with opening City Hall and City Yard on Fridays. These costs are broken down as follows: Expense Type City Hall City Yard Grand Total Electric $ 72,819 $ 10,356 $ 83,175 Water $ 8,601 $ 1,857 $ 10,458 Gas $ 5,683 $ 382 $ 6,065 Janitorial.. $ 11,550 $ 5,181 $ 16,731 Total Estimated Cost $ 98,653 $ 17,776 $ 116,429 The combined total estimated cost for opening City Hall and City Yard on Fridays is $116,129. This cost analysis assumes that janitorial supplies and vehicle fuel costs for the 50 additional Fridays will be minimal. Benefits of Opening Monday through Friday 1. The Monday through Friday schedule will eliminate the confusion residents and business owners occasionally have in regards to the City's actual operating hours. 2. The Monday through Friday schedule will increase access to City services for residents and business owners. Disadvantages of Opening Monday through Friday: 1. Increased costs: The City will incur an estimated $116,429 in additional operating costs per year to open both facilities on Fridays. 2. Environmental and energy consumption impacts: The 50 additional work days will require 172 fall-time employees impacted by this change (excluding Police and Fire) to make approximately 17,200 additional trips traveling to and from the Civic Center each year. These extra trips will adversely impact infrastructure, fuel consumption, traffic, and air quality within the City's locality. 3. Recruiting: The City will lose the recruiting tool/benefit of the 440 schedule. The 4-10 schedule is a non-financial perk that helps attract quality employees. 4. Morale: Moving to a five-day work schedule will negatively impact employee morale. Monday — Saturday Work Week (5 and 1/2 Operational Days) The Monday through Saturday schedule will add 100 days to the City's operational calendar and it will directly increase the City's labor and overhead costs. Due to the minimum staffing levels currently in place at City Hall, the Monday through Saturday scheduling option will require the City to hire additional staff or pay overtime to cover the half-day Saturday requirement of this scheduling option. The additional staffing or overtime requirement is due to the fact that most City Hall departments are currently at minimum staffing and therefore, they are unable to modify work schedules during the week to compensate for the Saturday half-day requirement on straight-time. If we were to modify work schedules during the week to accommodate the Saturday requirement at our current staffing level, it would adversely affect our services during the regular business week. As such, this analysis takes into consideration the potential overhead and over-time costs the City will incur if it chooses to implement a Monday through Saturday work schedule. These costs are broken down as follows: Expense Type City Hall City Yard Grand Total Electric' $ 109,229 $ 15,534 $ 124,763 Water $ 12,902 $ 2,786 $ 15,687 Gas $ 8,525 $ 573 $ 9,098 Janitorial $ 17,325 $ 7,772 $ 25,097 Overtime $ 79,790 $ 17,422 $ 97,212 TotalEstimated Cost $ 227,770 $ 44,086 $ 271,856 The combined total estimated cost for opening City Hall and City Yard Monday through Saturday is $271,856 and the same benefits and disadvantages as previously discussed for the five-day option hold true. OTHER CONSIDERATIONS: There-are- other—potential—impacts that_ should be_ considered _when _assessing_ the _two proposed scheduling options. The following items should also be taken into consideration: • The proposed scheduling options may induce employees to use more paid leave for personal reasons (e.g. medical appointments, child care issues, etc.) due to the extra 50 — 100 work days employees will have to accommodate. • The proposed scheduling options may impact the day care and school scheduling accommodations of employees with school aged children. • Some employees may leave due to the five-day schedule. Additionally, staff surveyed the work schedules of the 31 member cities of the San Gabriel Valley Council of Governments (SGVCOG). The breakdown of the operational schedules for the 31 SGVCOG member cities is as follows: • Eighteen (18) cities are currently on the 4/10 schedule and are closed on Fridays; • Seven (7) cities are currently on the 9/80 schedule and are closed every other Friday; • Six (6) cities are currently on the 8/40 schedule and are open every Friday; • Zero (0) cities are open on Saturdays (i.e., City Hall and other non-safety administrative departments). Lastly, regardless of the fact that the Memoranda of Understanding (MOU) between the City and its various bargaining units contain language giving the City Manager final authority to determine work schedules, the City's current 4/10 schedule has been firmly established as a past practice. Additionally, several clauses within the various MOU's contain language that directly address the 4/10 schedule as a condition of work. As a result, the change to either work schedule proposed here will have multiple impacts on the various bargaining unit MOU' s. This will require the City to meet and confer with the various bargaining units to amend the language within the various MOU's and it will require a lengthy implementation timeframe. CONCLUSION: Both scheduling alternatives carry additional hard and soft costs but will increase public access to City services. Each alternative will also require substantial lead time to fully implement due to numerous logistical and administrative issues the City will need to address. Prepared By: Reviewed and Approved By: Edward Macias Management Analyst II Carl Crown Interim Human Resources Director City of West Covina Memorandum AGENDA ITEM NO. 16 DATE: September 15, 2015 TO: Mayor and City Council FROM: Tom Mauk Interim City Manager BY: Rosalia A. Conde Assistant City Clerk SUBJECT: IMPLEMENTATION OF VOTE RECOUNT POLICY RECOMMENDATION: It is recommended that the City Council provide City staff direction on this matter. DISCUSSION: During the July 21, 2015 City Council meeting, Councilmember Wong requested a report on the accuracy of Los Angeles County's ("L.A. County") manual vote recount process and the cost for such a recount. In November 2013, the City's General Municipal Election was conducted by L.A. County. Due to the fact that the City nor the County have procedures to conduct an automatic recount of votes, a recount was initiated by a voter of the City in order to ensure the accuracy of the results of the November 2013 election since the two candidates in 3r d and 4th place running for the 3rd seat on the City Council were separated by 2 votes. Under Elections Code Section 15624, "the voter filing the request for recount must deposit, before the recount commences and at the beginning of each day following, sums as required by the elections official to cover the cost of the recount for that day." The cost for the recount was calculated at $5,441.78 per day. The total number of days needed for this recount was 3 days. Councilmember Wong has expressed concerns with the County's voting system for its failure to insure the accuracy of the vote. During the November 2013 election, council candidates Mike Spence and Lloyd Johnson were separated by 2 votes for the 3r d council seat, showing a discrepancy in the County's vote counting system. (Attachment No. 1) It was expressed at the July 21, 2015 City Council meeting that the City Council may want to implement a policy to have the City fund a recount if a certain percentage difference in votes between candidates is found. The vote recount performed in 2013 has been the first recount done for the City within the past 10 years the City has consolidated its elections with L.A. County. A survey (Attachment No. 2) was conducted by the City Clerk's Office on the vote recount procedures of other cities in California. The majority of the cities surveyed consolidated their elections with the County and all cities required the requestor to pay the cost of the recount per the Elections Code. ALTERNATIVES: 1) City Council may implement a vote recount policy. 2) City Council may receive and file the report. 3) City Council may provide alternate direction to staff. FISCAL IMPACT: The current cost of a manual vote recount as indicated by Los Angeles County is $5,054.71 per day. Prepared by: Y i Rosalia A. Conde, MC Assistant City Clerk Attachment No. 1: Los Angeles County "Daily Recount Results" for November 5, 2013 West Covina General Municipal Election Member of the City Council Attachment No. 2: Survey of Other Cities Vote Recount Procedures 2 ATTACHMENT NO. 1 : ELECTION CERTIFIED:RESULTar ,MANUAL:RECOU.NT.:-RESULTS:. ROE; :Mkt; 50TELO: SPENCE . , ARMANDO' :: ANDREk:: : , WARSHAVV.,•:; ,••••• , , JAMES 2 . LI,OYDA..:. Wednesday December 4, 2013 17 8 4 3 16 45 26 15 19 33 58 23 3 I 27 44 82 26 2 62 , 58 88 30 19 30 78 17 13 152 11 7 12 46 20 16 31 26 42 49 15 38 5 1 33 81 30 252 12 70 46 65 (*) Vote By Mail Page 1 of 7 • COREY, KIMBERLY KARIN cAPERES:::,.!ljARMBRUST 7700001A/0786 14 14 6 7700002N0787 33 25 23 7700003N0788 42 33 23 7700010N0789 58 17 45 7700011A/0790 77 83 32 7700001N0786* 12 14 9 7700002A10787* 26 17 18 7700003N0788* 32 42 43 7700010A/0789* 63 30 41 14 25 34 18 83 14 17 43 31 . . , . KIMBERLY, KARIN C.g.E.RES,ARMDRUST ROE•:,•:•%; , . :JAMES:: MIKE'ARMANDO ANDREW LLOYD,AI SPENCE: VOILA McINTYRE ..1oHNspy; 6 17 10 11 23 46 26 26 61 26 46 83 26 34 92 30 9 17 13 18 46 20 44 43 49 4 20 31 15 13 19 30 62 11 16 15 7 31 38 41 77 30 13 71 J:RecounIsWestCovinaCilyCouncilRECOUNTN2013 DAILY RECOUNT RESULTS WEST COVINA GENERAL MUNICIPAL ELECTION MEMBER OF THE CITY COUNCIL NOVEMBER 5, 2013 In accordance with 20818 ( c ) of the California Administrative Code of Regulations, the Registrar-Recorder/County Clerk hereby posts and announces publicly the daily results of the ongoing manual recount as follows: ELECTION CERTIFIED RESULTS, MANUAL RECOUNT RESULTS 1: PRECINCTS/SEMI::: . . COREY KIMBERLY NARSHAW :dAdERES 7700014B/0791* 25 26 42 39 31 23 50 21 27 28 16 43 15 53 37 22 80 18 43 49 29 74 26 45 19 24 12 16 72 31 19 14 17 34 12 86 48 60 125 58 35 18 25 52 26 35 32 16 65 11 89 33 40 117 27 Wednesday December 4, 2013 cont. 21 34 15 29 15 22 26 26 Thursday December 5, 2013 • LLOYD A.: . . , JAMES ROB MIKE s.1orgLp, ARMANDO ::::ANDREW o'Aym, McINTYRE, 21 6 98 34 15 29I 15 22 7 17 87 47 8 12 73 12 21 7700014B/0791 12 16 6 17 7 7700020N0792 72 31 98 92 47 7700022N0793 43 49 28 73 25 7700024C/0794 19 13 17 34 12 7700026N0795 81 44 53 119 54 7700028N0796 33 18 25 48 24 7700031N0797 31 30 15 60 9 7700035N0798 86 31 38 113 27 7700036N0799 38 30 23 50 21 7700038B10800 27 27 16 43 15 7700040N0801 52 37 22 80 18 57 10 21 : MIKE: ,i:ARMANDO:! :;: ANDREW sPENCE D'AVIU% 34c1I4TY,13 LLOYD A COREY JOHNSON : 1.:M1\RSHAVIV: KIMBERLY.' CACERES • AAMES-.) JOMA ROB SOTELtr.:: 20 18 79 28 53 14 17 12 17 10 21 8 12 72 17 22 19 15 71 26 10 19 50 14 16 12 16 (") Vote By Mail Page 2 of 7 J:Recounts:W CovInaCityCounciIRECOUNTN2013 ,::•PRECINCTS/SERIAL::::: KARIN: •JAMES • ROB MIKE:;:ARMANDO:•: .E..'ANDREK;,LLOYD A COREY KIMBERLY KARIN . . . , KIMBERLY ARMANDO • . . . LLOYD A.: JOHNSON .• ...'60B, . SOTELO • SPENCE ::::ANDREW 47 20 58 39 51 17 49 31 4 5 34 20 32 12 42 19 78 26 111 106 45 74 34 84 113 71 18 8 27 3 1 17 11 43 135 19 9 56 42 0 4 27 18 24 21 24 29 12 14 67 21 81 3 5 42 23 15 50 26 16 41 3 4 26 47 81 41 11 69 . . . 47 77 33 30 40 JAccounts:WestCovinaCityCaunclIRECOUNTN2013 Thursday December 5, 2013 cont. Page 3 of 7 40 30 11 43 12 11 69 40 41 '88 22 50 50 80 37 48 19 33 68 60 23 67 18 15 40 19 49 76 26 111 105 45 26 74 33 16 21 7 83 41 81 27 3 3 3 4 5 1 25 42 17 47 81 41 47 75 33 7700073N0802 50 7700080A/0803 22 7700011N0790* 50 7700020N0792* 80 7700022N0793* 37 7700024C/0794* 19 7700026A/0795* 88 7700028N0796* 48 *77000030 7 9966117D16117* *7700003C 1 9966116C/6116* 7700031A/0797* 33 7700035A/0798* 68 7700036A/0799* 59 (*) Vote By Mail 47 20 56 39 50 17 48 31 4 5 34 21 32 ELECTION CERTIFIED RESULTS KIMBERLY CA(EIRES.• ' KARIN ROB:MIKE ARMAND() ANDREW ARMBRUST : COREY!, VVARSHAW : ELECTION CERTIFIED RESOLTS',- • COREY . . , . . • -. • . (AdERES.:..•: . , . . . . . . . • MIKE •:.. i:SPBNCE ' 0.01N ARMBRUST': TOMA- ANDREW :MONTY:. RE::: - MANUAL: RECOUNT RESULTS Friday December 6, 2013 15 20 15 41 59 11 6 13 17 27 19 22 28 52 19 47 ,LQ 23 16 28 49 45 89 65 48 50 9 1 4 24 10 30 34 4 12 5 24 7700114N0804 42 40 25 58 15 7700116A/0805 59 33 23 73 11 7700122N0806 13 20 6 26 11 7700140C/0807 46 30 35 76 31 7700145N0808 43 33 24 65 26 7700148N0809 87 54 38 125 58 7700149N0810 64 71 34 98 36 7700154N0811 47 32 27 51 13 7700157N0812 50 27 25 54 18 7700158N0813 21 26 7 26 13 7700163N0814 33 25 14 46 10 7700313N0815 4 6 4 7 7 *7700038A 24 21 8 24 2 9966116N6119* 40 33 20 37 33 56 29 26 26 8 27 14 27 14 46 11 25 58 15 23 73 12 6 26 11 37 87 33 25 66 27 39 127 60 53 15 55 18 71 32 37 98 35 28 15 20 15 12 6 19 31 20 25 28 54 19 48 10 26 17 28 10 10 4 12 5 6 21 7 2 7 24 4 8 PRECINCTS/SEW (*) Vote By Mail Page 4 of 7 JliccounlzWesICovinaCityCouncIIRECOUNTN2013 ELECTIORCERTIFIEIIRESULTS. :MANVAL:RECQUN.T.RES.V.L.TS:':. . , ••••••• LLOYD A.• .JOHNSON • • . • • L.Loyo A. JOHNSON :•::KARIN•;:, :..A811111313UST.!:i :••• • • ••:ROD•'• •,..SOJELO •••• • -• '•••••••••••••• •:.• ANDREW' McINTYRE: KIMBERLY CACERES JAMES :TOM ARMANDO DAVILA ANDREW •'McINTYR.E: : COREY . •• • . •••: WASHAW PRECINCTS/SERIAL . _ •:;WARSHA141.;:: JOMDEF:2LY, ••,• 1••..O.AdEit$:. :- • DAVILA,• • ••• Friday December 6, 2013 cont. 15 50 18 41 14 15 50 18 69 28 86 17 41 27 14 30 27 36 22 7700038B/0800* 27 36 15 27 44 36 69 28 46 15 28 44 36 48 7700040A10801* 48 55 19 87 17 26 26 23 19 74 23 7700073N0802" 73 55 41 14 16 30 34 20 27 14 16 7700080A/0803* 30 24 20 51 64 34 81 28 23 27 23 27 81 28 7700114A/0804* 51 64 34 34 115 38 19 22 19 76 54 34 115 38 7700116N0805" 76 54 11 13 12 10 19 24 3 13 12 7700122N0806* 19 24 11 6 6 4 2 5 4 6 4 2 *7700140B 4 9966121B/6121* 6 35 82 25 16 32 16 44 26 82 25 7700140C/0807" 44 26 35 17 27 17 31 27 32 49 37 3( 7700145A10808* 31 26 32 49 37 21 30 56 37 15 15 1:1 55 33 56 37 7700148N0809* 55 33 29 56 111 52 29 65 46 111 52 29 65 87 85 7700149N0810* 85 46 56 57 108 50 84 33 57 108 50 84 33 57 58 77 7700154N0811* 58 77 65 57 51 61 95 43 27 95 43 67 27 51 61 50 65 7700157A/0812* 61 50 61 Page 5 of 7 (*) Vote By Mail J:RecountcWestcovinacitscounclIRECOUNTN2013 -ELECTION`CERTIFIED,RESULT$ MANUAkF20.00.107,..RE.S.ULTS.::! , . :JAMES 0MA : . ROB , MELO: 47 24 63 38 14 13 MIKE- • . • • • LLOYD A: • JOHNSON ... ANDREW.). •.;...:1-1:O.YB.4..• McINIYRE, ..JOHNSON .• KIMBERLY ' OAOEBES.•••::: 35 41 9 KARIN ARMBRUST , 22 26 8 47 24 63 38 14 13 ,:AIRMANPQ; Friday December 6, 2013 cont. 17 33 24 29 3 KIMBERLY-•KARIN . ..„ 22 26 9 . . • AF.iMANDO':: • ANDREW :.• •..: DAVILA.. . , • . • • . 17 33 24 29 3 PRECINCTS/SERIAL. ..• COREY • •WARSHAW. 7700158A/0813* 21 7700163N0814* 39 7700131A/0815* 3 21 35 39 41 9 (*) Vote By Mail Page 6 of 7 .PReeounts:VVes1CovInaCityCouncIIRECOUN1N2013 Corey Warshaw Kimberly Caceres Karin Armbrust James Toma Rob Sotelo Mike Spence Armando D'Avila Andrew McIntyre Lloyd At'Johnson :Daily;Certified" To,taJs Tallied 2696 2099 1863 3832 1580 901 1852 As of Friday, December 06, 2013, the total election results that were certified on November 25, 2013 and the total manual recount results for all above precincts recounted are currently as follows: Tallied : 2735 2141 1894 3882 1607 '?2434 , 925 1896 2426?, DEAN C. LOGAN Registrar-Recorder/County Clerk County of Los Angeles (") Vote By Mail Page 7 of 7 J:Fiecounis:WesiCevinaCilyCouncIIRECOUNTN2013 SURVEY OF OTHER CITIES VOTE RECOUNT PROCEDURES ATTACHMENT NO. 2 NAME OF CITY . POPULATION CONSOLIDATE WITH WHO S FOR VOTE COUNTY/STAND-ALONE RECOUNT ...., . _ City of Antioch 108,930 Consolidate Requestor City of Burbank 104,709 Stand-Alone Requestor City of Chula Vista 256,780 Consolidate Requestor City of Coachella 52,000 Consolidate Requestor City of Cupertino 60,668 Consolidate Requestor City of Inglewood 111,542 Consolidate Requestor City of Irvine 250,384 Consolidate Requestor City of Lawndale 33,442 Stand-Alone Requestor City of Monrovia 37,101 Stand-Alone Requestor City of Oceanside 174,558 Consolidate Requestor City of Palo Alto 66,955 Consolidate Requestor City of Santa Monica 92,987 Consolidate Requestor City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 17 FROM: Tom Mauk DATE September 2015 Interim City Manager BY: Chris Freeland Assistant City Manager/Community Development Commission Director SUBJECT: REQUEST FROM COUNCILMAN MIKE SPENCE REQUESTING THE CITY COUNCIL'S CONSIDERATION OF TAKING A POSITION ON SENATE BILL 417: LAW ENFORCEMENT: UNITED STATES IMMIGRATION AND CUSTOMS ENFORCEMENT HOLDS RECOMMENDATION: It is recommended that the City Council direct staff accordingly. DISCUSSION: Per the City Council Standing Rules, Councilman Mike Spence is seeking the City Council's consideration to take a position on California Senate Bill 417 (SB 417): Law Enforcement: United States Immigration and Customs Enforcement FIolds (Attached). The League of California Cities website has the following summary of S8 417: "Existing law prohibits a law enforcement official, as defined, from detaining an individual on the basis of a United States Immigration and Customs Enforcement hold after that individual becomes eligible for release from custody, unless, at the time that the individual becomes eligible for release from custody, certain conditions are met, including, among other things, that the continued detention of the individual on the basis of the immigration hold would not violate any federal, state, or local law, or local policy, and that the individual has been convicted of or arrested for, specified crimes. This bill would instead require a law enforcement official to detain an individual on the basis of a United States Immigration and Customs Enforcement hold for up to 48 hours, excluding Saturdays, Sundays, and holidays, after that individual becomes eligible for release from custody if that individual has been convicted of or arrested for, specified crimes and if the continued detention of the individual on the basis of the immigration hold would not violate any federal law. By imposing additional duties on local law enforcement officers, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws," FISCAL IMPACT: None. Prepared by: is Freeltn Assistant City Manager/Community Development Commission Director Attachment — Text of SB 417 Attachment AMENDED IN ASSEMBLY AUGUST 24, 2015 AMENDED IN SENATE APRIL 16, 2015 SENATE BILL No. 417 Introduced by-Senatm-S-toite Senators Stone, Morrell, and Nielsen (Coauthors: Senators Bates, Berryhill, Fuller, Gaines, Moorlack, and Runner) (Coauthor: Assembly Member Patterson) February 25, 2015 . • • - - $ $ - elections, An act to amend Section 7282.5 of the Government Code, relating to immigration enforcement, and making an appropriation therefor LEGISLATIVE COUNSEL'S DIGEST SB 417, as amended, Stone. Elections: election day procedures. Law enfircement: United States Immigration and Customs Enforcement holds. Existing law prohibits a law enforcement official, as defined, from detaining an individual on the basis of a United States Immigration and Customs Enforcement hold after that individual becomes eligible for release from custody, unless, at the time that the individual becomes eligible fbr release from custody, certain conditions are met, including, among other things, that the continued detention of the individual on the basis of the immigration hold would not violate any federal, state, or local law, or local policy, and that the individual has been convicted of or arrested for, specified crimes. This bill would instead require a law enforcement official to detain an individual on the basis of a United States Immigration and Customs Enforcement hold for up to 48 hours, excluding Saturdays, Sundays, 97 SB 417 2 — and holidays, after that individual becomes eligible for release from custody if that individual has been convicted of or arrested for, specified crimes and if the continued detention of the individual on the basis of the immigration hold would not violate any federal law. By imposing additional duties on local law enforcement officers, this bill would impose a state-mandated local program. The bill would require a local agency that violates these provisions to pay a fine of $100,000, to be collected by the Attorney General, and would allow the Attorney General to commence a civil action to enforce the fine. The bill would require proceeds of the fine to be deposited in the Restitution Fund, a continuously appropriated fund. By increasing deposits to be made to a continuously appropriated fund, this bill would make an appropriation. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Existing law requires the precinct board, before receiving any ballots, in the prcscncc of any person assembled at the polling place, to open and exhibit and close the ballot container or containers. Thereafter, existing law prohibits thc ballot container or containers from being This bill would authorize the prccinct boa d of a county with a geographic area of at lca3t 2,500 square miles to remove the ballot container or containers from the polling place while the polls remain open only to facilitate the early delivery of ballots to the receiving centers or central counting places. The bill would prohibit a local agency associated costs. The bill would require the Secretary of State to adopt regulations for the secure delivery and transfer of the ballots to the receiving center or central counting place. Vote: maj-ority-2/3. Appropriation: rte-yes. Fiscal committee: yes. State-mandated local program: no-yes. 91 -3 - 417 The people of the State of California do enact as follows: 1 SECTION I. Section 7282.5 of the Government Code is 2 amended to read: 3 7282.5. (a) A law enforcement official shall have discretion 4 to cooperate with federal immigration officials by detaining an 5 individual on the basis of an immigration hold for up to 48 hours, 6 excluding Saturdays, Sundays, and holidays, after that individual 7 becomes eligible for release from custody only custody, if the 8 continued detention of the individual on the basis of the 9 immigration hold would not violate any federal, state, or local 10 federal law, or any local policy, and only under any of the 11 following circumstances: 12 (1) The individual has been convicted of a serious or violent 13 felony identified in subdivision (c) of Section 1192.7 of, or 14 subdivision (c) of Section 667.5 of, the Penal Code. 15 (2) The individual has been convicted of a felony punishable 16 by imprisonment in the state prison. 17 (3) The individual has been convicted within the past five years 18 of a misdemeanor for a crime that is punishable as either a 19 misdemeanor or a felony for, or has been convicted at any time of 20 a felony for, any of the following offenses: 21 (A) Assault, as specified in, but not limited to, Sections 217.1, 22 220, 240, 241.1, 241.4, 241.7, 244,244.5, 245, 245.2, 245.3, 245.5, 23 4500, and 4501 of the Penal Code. 24 (B) Battery, as specified in, but not limited to, Sections 242, 25 243.1, 243.3, 243.4,243.6, 243.7, 243.9, 273.5, 347, 4501.1, and 26 4501.5 of the Penal Code. 27 (C) Use of threats, as specified in, but not limited to, Sections 28 71, 76, 139, 140, 422, 601, and 11418.5 of the Penal Code. 29 (D) Sexual abuse, sexual exploitation, or crimes endangering 30 children, as specified in, but not limited to, Sections 266, 266a, 31 266b, 266c, 266d, 266f, 266g, 266h, 266i, 266j, 267, 269, 288, 32 288.5, 311.1,311.3, 311.4, 311.10,311.11, and 647.6 ofthe Penal 33 Code. 34 (E) Child abuse or endangerment, as specified in, but not limited 35 to, Sections 270, 271, 271a, 273a, 273ab, 273d, 273.4, and 278 of 36 the Penal Code. 37 (F) Burglary, robbery, theft, fraud, forgery, or embezzlement, 38 as specified in, but not limited to, Sections 211, 215, 459, 463, 97 SB 417 -4- 1 470, 476, 487, 496, 503, 518, 530.5, 532, and 550 of the Penal 2 Code. 3 (G) Driving under the influence of alcohol or drugs, but only 4 for a conviction that is a felony. 5 (H) Obstruction of justice, as specified in, but not limited to, 6 Sections 69, 95, 95.1, 136.1, and 148.10 of the Penal Code. 7 (I) Bribery, as specified in, but not limited to, Sections 67, 67.5, 8 68, 74, 85, 86, 92, 93, 137, 138, and 165 of the Penal Code. 9 (J) Escape, as specified in, but not limited to, Sections 107, 109, 10 110, 4530, 4530.5, 4532, 4533, 4534, 4535, and 4536 of the Penal 11 Code. 12 (K) Unlawful possession or use of a weapon, firearm, explosive 13 device, or weapon of mass destruction, as specified in, but not 14 limited to, Sections 171b, 171e, 171d, 246, 246.3, 247, 417, 417.3, 15 417.6, 417.8, 4574, 11418, 11418.1, 12021.5, 12022, 12022.2, 16 12022.3, 12022.4, 12022.5, 12022.53, 12022.55, 18745, 18750, 17 and 18755 of, and subdivisions (c) and (d) of Section 26100 of, 18 the Penal Code. 19 (L) Possession of an unlawful deadly weapon, under the Deadly 20 Weapons Recodification Act of 2010 (Part 6 (commencing with 21 Section 16000) of the Penal Code). •22 (M) An offense involving the felony possession, sale, 23 distribution, manufacture, or trafficking of controlled substances. 24 (N) Vandalism with prior convictions, as specified in, but not 25 limited to, Section 594.7 of the Penal Code. 26 (0) Gang-related offenses, as specified in, but not limited to, 27 Sections 186.22, 186.26, and 186.28 of the Penal Code. 28 (P) An attempt, as defined in Section 664 of, or a conspiracy, 29 as defined in Section 182 of, the Penal Code, to commit an offense 30 specified in this section. 31 (Q) A crime resulting in death, or involving the personal 32 infliction of great bodily injury, as specified in, but not limited to, 33 subdivision (d) of Section 245.6 of, and Sections 187, 191.5, 192, 34 192.5, 12022.7, 12022.8, and 12022.9 of, the Penal Code. 35 (R) Possession or use of a firearm in the commission of an 36 offense. 37 (S) An offense that would require the individual to register as 38 a sex offender pursuant to Section 290, 290.002, or 290.006 of the 39 Penal Code. 97 -5— SB 417 1 (T) False imprisonment, slavery, and human trafficking, as 2 specified in, but not limited to, Sections 181, 210.5, 236, 236.1, 3 and 4503 of the Penal Code. 4 (U) Criminal profiteering and money laundering, as specified 5 in, but not limited to, Sections 186.2, 186.9, and 186.10 of the 6 Penal Code. 7 (V) Torture and mayhem, as specified in, but not limited to, 8 Section 203 of the Penal Code. 9 (W) A crime threatening the public safety, as specified in, but 10 not limited to, Sections 219, 219.1, 219.2, 247.5, 404, 404.6, 405a, 11 451, and 11413 of the Penal Code. 12 (X) Elder and dependent adult abuse, as specified in, but not 13 limited to, Section 368 of the Penal Code. 14 (Y) A hate crime, as specified in, but not limited to, Section 15 422.55 of the Penal Code. 16 (Z) Stalking, as specified in, but not limited to, Section 646.9 17 of the Penal Code. 18 (AA) Soliciting the commission of a crime, as specified in, but 19 not limited to, subdivision (c) of Section 286 of, and Sections 653] 20 and 653.23 of, the Penal Code. 21 (AB) An offense committed while on bail or released on his or 22 her own recognizance, as specified in, but not limited to, Section 23 12022.1 of the Penal Code. 24 (AC) Rape, sodomy, oral copulation, or sexual penetration, as 25 specified in, but not limited to, paragraphs (2) and (6) of 26 subdivision (a) of Section 261 of, paragraphs (1) and (4) of 27 subdivision (a) of Section 262 of, Section 264.1 of, subdivisions 28 (c) and (d) of Section 286 of, subdivisions (c) and (d) of Section 29 288a of, and subdivisions (a) and (j) of Section 289 of, the Penal 30 Code. 31 (AD) Kidnapping, as specified in, but not limited to, Sections 32 207, 209, and 209.5 of the Penal Code. 33 (AE) A violation of subdivision (c) of Section 20001 of the 34 Vehicle Code. 35 (4) The individual is a current registrant on the California Sex 36 and Arson Registry. 37 (5) The individual is arrested and taken before a magistrate on 38 a charge involving a serious or violent felony, as identified in 39 subdivision (c) of Section 1192.7 or subdivision (c) of Section 40 667.5 of the Penal Code, a felony punishable by imprisonment in 97 SS 417 —6 1 state prison, or any felony listed in paragraph (2) or (3) other than domestic violence, and the magistrate makes a finding of probable cause as to that charge pursuant to Section 872 of the Penal Code. (6) The individual has been convicted of a federal crime that meets the definition of an aggravated felony as set forth in subparagraphs (A) to (P), inclusive, of paragraph (43) of subsection (a) of Section 101 of the federal Immigration and Nationality Act (8 U.S.C. Sec. 1101), or is identified by the United States Department of Homeland Security's Immigration and Customs Enforcement as the subject of an outstanding federal felony arrest warrant. (b)-1-f-fterne-eifthe-conditions listed in subdivision (a) is satisfied, an individual shall not be detained on the basis of an immigration hold after the individual becomes eligible for release from custody. (b) A local agency that violates subdivision (a) shall pay a fine of one hundred thousand dollars ($100,000), to be collected by the Attorney General, for each failure to detain an individual in violation of subdivision (a). The Attorney General may commence a civil action to enforce the fine. Proceeds of the fine shall be deposited in the Restitution Fund in the State Treasury for purposes of Chapter 5 (commencing with Section 13950) of Part 4 of Division 3 of Title 2. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. EUGID to read: 14215. (ft) Bcfo c receiving any ballots, the precinct board, in the presence of any persons assembled at the polling place, shall open and exhibit and close the ballot container or containers. Thereafter, except as specified in subdivision (b), the ballot opened until after the polls a c finally closed. (b) (1) The precinct board may remove the ballot container or - - - to facilitate the early delivery of ballots to the receiving centers or central counting places. The Secretary of State shall adopt 97 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 — 7 --- SB 417 1 regulations for the secure delivery and transfer of thc ballots to 2 3 4 5 6 7 8 97 (2) This subdivision applies only to a county of a geographic paragraph (1) shall not seek reimbursement from the state for 0 City of West Covina Memorandum AGENDA ITEM NO. 18 TO: Mayor and City Council DATE September 15. 2015 FROM: Tom Mauk Interim City Manager BY: Christa Buhagiar Finance Director SUBJECT: REQUEST FROM COUNCILMAN MIKE SPENCE ON A REPORT REGARDING THE UPDATING OF THE CITY'S CURRENT TAXI POLICY RECOMMENDATION: It is recommended that the City Council direct staff accordingly. DISCUSSION: Per the City Council Standing Rules, Councilman Mike Spence is seeking the City Council's consensus to request a report on the updating of the City's current taxi policy. Chapter 25 of the West Covina Municipal Code (Attachment No. 1) covers Vehicles for Hire and Chapter 14— Licenses and Business Regulations, Article H. — Business Licenses, Division 3. — Fees, Section 14.68. (Attachment No. 2) - Schedule, indicates that business license fees for taxicab falls under Category Code S: Special Businesses. Fixed fees are established in the schedule of fees for taxicab operators and increased annually by CPI. FISCAL IMPACT: None. Prepared by: Christa Buhagiar Finance Director ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT Chapter 25 - VEHICLES FOR HIRE FOOTNOTE(S): (1 ) Cross reference— Advertising vehicles, § 3-1; licenses and business regulations, Ch. 14; police. Ch. 18; streets, sidewalks and public places, Ch. 19; traffic regulations, Ch. 22. State Law reference— Authority to license and regulate vehicles for hire and drivers of passenger vehicles for hire, Veh. Code, § 21100(b). ARTICLE I. - IN GENERAL Secs. 25-1-25-15. - Reserved. ARTICLE II. - AUTOMOBILES FOR HIRE DIVISION 1. - GENERALLY Sec. 25-16. - Definitions. The following words and phrases, whenever used in this article shall be construed as defined in this section, unless it shall be apparent from the context that a different meaning is intended: Automobile for hire shall mean and include every automobile or motor-propelled vehicle used for the transportation of passengers for compensation over the streets of the city and not over a fixed or defined route, irrespective of whether the operations extend beyond the boundary limits of the city, at rates for distance traveled, per mile, per trip, for waiting time, or otherwise. Owner shall mean and include any person other than a driver, who or which owns, operates, controls or directs the use of an automobile for hire. Driver is a person who drives or is in actual physical control of an automobile for hire. Taximeter is a mechanical instrument or device by which the charge for hire of an automobile at a predetermined rate or rates, is mechanically calculated and registered, either from distance traveled, or for waiting time, or both, and upon which such charge shall be indicated by means of figures. City license collector shall mean and include the person exercising that function or any city employee designated by the city license collector to perform such functions hereunder. Chief of police shall mean and include the person exercising that function or any city employee designated by the chief of police to perform such functions hereunder. (Code 1960, § 6320; Ord. No. 1658, § 2, 12-20-84) Cross reference-- Definitions for Code generally, §§ 1-8-1-26. Page 1 Sec. 25-17. - Automobile for hire; application. (a) The holder of an owner's permit may substitute one (1) automobile in the place and instead of each licensed automobile, the use of which has been discontinued, by making application to do so, and securing the approval of the city license collector and shall not make any such substitution without approval. (b) Before granting such approval, the applicant shall fully comply with the provisions of this article relating to the description and condition of an automobile in the first instance. Upon granting such application, the city license collector shall endorse a memorandum of such substitution upon the original owner's permit, and also upon the license issued to the automobile, the use of which has been discontinued. For each substitution such permit holder shall pay to the city license collector a fee to be established by resolution of the city. (Code 1960, § 6328; Ord. No. 1544. § 1, 4 -26-82; Ord. No. 1658, § 3, 12-20-84) Sec. 25-18. - Condition of vehicle. Automobiles for hire shall at all times be maintained in a mechanically safe condition and interior and exterior kept clean. (Code 1960, § 6329.2) Sec. 25-19. - Vehicle subject to inspection. (a) Every automobile for hire disclosed in an application for an owner's permit as required by section 25- 36 or vehicle substitution as stated in section 25-17 shall be subject to a vehicle inspection to be conducted by the chief of police. Such vehicles shall be subject to annual vehicle inspections to be conducted by the chief of police upon the renewal of the expired owner's permit unless otherwise specified. (b) Every automobile for hire subject to a vehicle inspection must be accompanied by a detailed statement from an automotive mechanic licensed under the laws of the State of California as an automotive mechanic. Such detailed statement shall specify the conditions of tires, brakes, upholstery and motor. (c) Every automobile for hire shall at all times be subject to an inspection by any police officer or any other authorized inspector of the city. (Code 1960, § 6329.3; Ord. No. 1658, § 4, 12 -20-84) Sec. 25-20. - Reserved. Editor's note— Ord. No. 1678, § 1, adopted May 28, 1985, repealed, § 25-20 in its entirety. Former § 25-20 was concerned with rates to be established by city council and derived from Code 1960, § 6340. Sec. 25-21. - Rates—To be posted in automobile for hire. Every automobile for hire shall display in the passenger's compartment thereof, and in full view of passengers a printed notice of not less than four (4) inches by six (6) inches, which shall have printed thereon in legible print: The name of the business owner of such automobile for hire, the name under which his business is operated, the business address and telephone number. Page 2 (Code 1960, § 6341; Ord. No. 1658, § 5, 12-20-84) Sec. 25-22. - Carrying passengers by direct route. Any driver employed to carry passengers to a definite point shall take the most direct route possible that will carry the passengers safely and expeditiously to their destination, unless specifically directed otherwise by such passengers. (Code 1960, § 6343) Sec. 25-23. - Passenger's right to use of taxicab. When an automobile for hire is engaged, the occupants shall have the exclusive right to the full and free use of the passenger compartment, and no owner or driver of such automobile shall solicit or carry additional passengers therein. (Code 1960, § 6344) Sec. 25-24. - Reserved. Editor's note— Ord. No. 1678, § 2, adopted May 28, 1985, repealed § 25-24 in its entirety. Former § 25-24 was concerned with passenger's obligation as to fares in an automobile for hire and derived from Code 1960, § 6345. Sec. 25-25. - Accident reports. Every driver of an automobile for hire shall file, within twenty-four (24) hours thereafter, a full and complete report of any accident in which any automobile for hire, being operated by such driver, is involved, whether or not such accident caused damage to person or property. (Code 1960, § 6346) Sec. 25-26. - License decal to be attached to operating automobile. Each permit issued by the city license collector pursuant to division 2 of this article shall entitle the holder thereof to obtain a business license as required by chapter 14 of this Code from the city license collector upon the payment of the prescribed license fee, to operate the automobile or automobiles for hire set forth and described in the permit. Upon the issuance of a business license certificate, a license decal shall be securely attached to the left side of the rear bumper of the automobile for hire licensed at all times when such vehicle is in use. (Code 1960, § 6327; Ord. No. 1544, § 2, 4 -26-82; Ord. No. 1658, § 6, 12 -20-84) Secs. 25-27-25-35. - Reserved. DIVISION 2. - PERMITS Page 3 Sec. 25-36. - Required. No person shall operate or cause to be operated upon any street in the city any automobile for hire, unless there shall have been issued by the city an owner's permit to the owner, and a driver's permit to the driver thereof, and unless each such permit shall be in full force and effect. (Code 1960, § 6321) Sec. 25-37. - Applications for owner's permit; forms and information; fee. Any person may apply to the city for a permit to operate an automobile for hire upon the streets of the city, by filing with the city license collector, upon forms to be supplied by the city, an application setting forth the following information: (a) The name, age, address and length of residence in the city of such applicant. (b) Whether applicant was previously engaged in the business for which a permit is requested, and if so, the location and length of time thereof. (c) If applicant is a corporation, a copy of the articles of incorporation shall be attached to the application; if a partnership, a copy of the partnership agreement. (d) The number of automobiles for hire to be used in the business of the applicant, and the following information concerning each automobile: Trade name, year, model, motor number and mileage. (e) Such other and further information as may be required by the chief of police. (f) The applicant shall pay to the license collector a fee to be established by resolution. (Code 1960, § 6322; Ord. No. 1431, § 11,4-9-79; Ord. No. 1658, § 7, 12-20-84; Ord. No. 1828, § 1, 11-13-89) Secs. 25 -38, 25-39. - Reserved. Editor's note- Ord. No. 1678, §§ 3, 4, adopted May 28, 1985, repealed §§ 25-38 and 25-39 respectively. Former § 25-38 was concerned with hearing an application for owner's permit and derived from Code 1960, § 6323, and former § 25-39 was concerned with order for issuance of owner's permit and derived from Code 1960, § 6324; Ord. No. 1431, § 12, adopted April 9, 1979; and Ord. No. 1658, § 8, adopted December 20, 1984. Sec. 25-40. - Certificate of insurance prerequisite to issuance of owner's permit. Before an owner's permit required by this division shall be issued by the city license collector, the applicant shall deliver to the city license collector a policy or certificate of insurance, executed by a company duly authorized under the laws of the state to do an insurance business, by the provisions of which policy the company promises and undertakes to pay in full all claims for damages to persons or property resulting from the operation of the automobiles referred to in said application. The policy shall have attached a rider or bear an endorsement providing that the policy cannot be amended, modified, cancelled or allowed to expire in any way or for any reason without thirty (30) days prior written notice to the city by registered mail, return receipt requested. The amount of such insurance shall be set by resolution of the city council based upon the advice of the city's insurance risk manager. (Code 1960, § 6326; Ord. No. 1431, § 13, 4-9-79; Ord. No. 1544, § 3, 4-26-82; Ord. No. 1658, § 9, 12-20-84; Ord. No. 1678, § 5, 5-28-85) Page 4 State Law reference— Financial responsibility requirements for owners of taxicabs, Veh. Code, 16500 et seq. Sec. 25-41. - Grounds for denial of owner's permit. Any of the following reasons shall be sufficient for denial of an owner's permit pursuant to this article: (a) That the application is not in the form, and does not contain the information required to be contained therein by this article. (b) That the vehicles disclosed in the application are inadequate or unsafe for the purposes for which they are to be used and/or noncompliance of section 25-19 of this chapter. (c) That the color scheme, name, monogram, or insignia to be used upon such automobiles shall be in conflict with or imitate any color scheme, name, monogram or insignia used by any person in such manner as to be misleading or tend to deceive or defraud the public. (Code 1960, § 6325; Ord. No. 1658, § 10, 12-20-84; Ord. No. 1678, § 6, 5-28-85) Sec. 25-42. - Scope of owner's permit. The granting of a permit for the operation of an automobile or automobiles for hire, and full compliance by the permittee with all of the provisions of this article, shall entitle the permittee to operate, so long as such permit is in full force and effect, such automobile for hire for the transportation of passengers over the streets of the city; provided that, at all such times each such automobile shall be driven by a driver to whom a driver's permit has been duly issued under the provisions of this division, (Code 1960, § 6329) Sec. 25-43. - Cancellation of owner's permit—Expiration of insurance. In case the terms of any insurance policy required by the provisions of this article for the operation of any automobile for hire shall expire or shall be cancelled, the permit shall, by such expiration or cancellation, be immediately, automatically suspended until such insurance policy is reinstated and is again in full force and effect, or until replaced by other insurance; the amount of such insurance shall be that amount as set by resolution of the city council; provided, that, in any case where such insurance has been cancelled or has expired, and has not been reinstated nor replaced with other insurance within ten (10) days after the expiration or cancellation thereof, then the permit which has been issued for the operation of such automobile or automobiles for hire covered by such insurance shall be automatically cancelled, annulled and set aside. (Code 1960, § 6330; Ord. No. 1658, § 11, 12 -20-84) Sec. 25-44. - Same—Inactive service. The failure to use any duly licensed automobile for hire upon the streets of the city for a period of thirty (30) consecutive days shall cause such license to be automatically cancelled, annulled and set aside. (Code 1960, § 6331; Ord. No. 1658, § 12, 12 -20-84; Ord. No. 1678, § 7,5 -28-85) Sec. 25-45. - Term of owner's permit. Page 5 Where an owner's permit is provided for in this article, the same shall apply to the calendar year of January first and shall expire on the following December thirty-first unless otherwise specified. (Ord. No. 1658, § 13, 12-20-84) Editor's note— Ord. No. 1658, § 13, adopted December 20, 1984, amended the Code with new provisions for § 25-45. Former § 25-45, concerning application for driver's permit, derived from Code 1960, § 6332; Ord. No. 1431, § 14, adopted April 9, 1979; and Ord. No. 1544, § 4, adopted April 26, 1982. Similar provisions are now set out in § 25-46. Sec. 25-46. - Application for driver's permit. Any person may apply to the city for a driver's permit to drive an automobile for hire upon the streets of the city, by filing with the chief of police, upon forms to be supplied by the city, an application for a driver's permit setting forth the name and address of the applicant, the name of the owner of the automobile for hire, the name under which the business is operated, the business address and telephone number and such other information as may be required or deemed necessary or desirable by the city to enable the chief of police to ascertain whether the applicant fulfills the requirements herein set forth. (Ord. No. 1658, § 14, 12-20-84) Editor's note— Ord. No. 1658, § 14, adopted December 20, 1984, amended the Code with new provisions for § 25-46. Former § 25-46, concerning qualification of applicant for driver's permit, derived from Code 1960, § 6333, and Ord. No. 1340, § 1, adopted May 23, 1977. Sec. 25-47. - Investigation of applicant. The police department shall, within a period of twenty (20) business days after the filing of an application for a driver's permit, make such investigation of the applicant as it deems necessary, and shall in connection therewith require any such person to set forth in said application and make satisfactory proof to the police department that the applicant complies fully within the following qualifications: (a) The applicant shall be at least eighteen (18) years of age and shall be an employee or a lessee of the holder of an owner's permit to operate automobiles for hire upon the streets of the city. (b) The applicant shall have been photographed and fingerprinted by the chief of police. (c) The applicant shall possess a valid California driver's license. (d) The applicant shall pay to the city cashier a fee to be established by resolution. (e) The applicant shall not have been convicted in the courts of any state of the United States or in any United States court of any of the following offenses: (1) Pandering, pimping or prostitution. (2) Using, possessing, selling or transporting narcotics or controlled substances. (3) Imparting knowledge for the obtaining of narcotics. (4) Contributing to the delinquency of a minor. (5) Assault, battery or other crime of violence. (6) Any law or ordinance involving moral turpitude, dishonesty or fraud. (f) The applicant shall state what, if any, offenses he or she has been convicted of under the California Vehicle Code. Page 6 (Ord. No. 1658, § 15, 12-20-84) Editor's note- Ord. No. 1658, § 15, adopted December 20, 1984, amended the Code with new provisions for § 25-47. Former § 25-47, concerning denial or issuances of driver's permit, derived from Code 1960, § 6334, and Ord. No. 1544, § 5, adopted April 26, 1982. Similar provisions are now set out in § 25-48. Sec. 25-48. - Denial or issuance of driver's permit. The chief of police may refuse to issue any driver's permit if it is determined through the aforementioned investigation that such applicant is not qualified to be the driver of an automobile for hire within the provisions of this article. Upon the satisfactory completion of the background investigation or at the conclusion of twenty (20) business days, whichever occurs first, the chief of police shall issue a driver's permit to such applicant. In the event a full background check has not been completed at the time of issuance, such permit shall be contingent on the satisfactory completion of the background investigation and shall be subject to revocation. (Ord. No. 1658, § 16, 12-20-84) Editor's note- Ord. No. 1658, § 16, adopted December 20, 1984, amended the Code with new provisions for § 25-48. Former § 25-48, concerning cancellation of driver's permit, derived from Code 1960, § 6335. Similar provisions are now set out in § 25-50. Sec. 25-49. - Term of driver's permit. Where a driver's permit is provided for in this article, the same shall apply to the calendar year of January first and shall expire on the following December thirty-first, unless otherwise specified. (Ord. No. 1658, § 17, 12-20-84) Editor's note- Ord. No. 1658, § 17, adopted December 20, 1984, amended the Code with new provisions for § 25-49. Former § 25-49, concerning suspension, recision, etc., of owner's driver's permit, derived from Code 1960, § 6336. Similar provisions are now set out in § 25-52. Sec. 25-50. - Cancellation of driver's permit. The failure of any driver, to whom a driver's permit has been issued under this division, to operate an automobile for hire or to be available for a period of thirty (30) consecutive days shall cause such permit to be automatically cancelled, annulled and set aside. (Ord. No. 1658, § 18, 12-20-84; Ord. No. 1678, § 8, 5-28-85) Editor's note- Ord. No. 1658, § 18, adopted December 20, 1984, amended the Code with new provisions for § 25-50. Former § 25-50, concerning hearings, derived from Code 1960, § 6337. Sec. 25-51. - Appeal to the city council. Any applicant or permit holder aggrieved by any action of the license collector and/or chief of police to deny, or refuse to renew a permit may appeal to the city council by filing with the city clerk a statement Page 7 addressed to the city council setting forth the facts and circumstances regarding the action of the license collector and/or chief of police. Such appeal shall be filed within ten (10) days after the disputed action of the license collector and/or chief of police, and the city council shall hear the appeal at its next regular meeting held at least five (5) days after the appeal is filed. The filing of such an appeal with the city council shall not stay the action of the license collector and/or chief of police. At the time of the appeal hearing, the city council shall hear all relevant evidence and shall determine the merits of the appeal, and it shall render a decision thereon within three (3) business days thereafter and shall state with specificity the reasons therefor. The action of the city council shall be final. (Ord. No. 1658, § 19, 12-20-84; Ord. No. 1678, § 9, 5-28-85) Editor's note— Ord. No. 1658, § 19, adopted December 20, 1984, amended the Code with new provisions for § 25-51. Former § 25-51, concerning no refund of fee, derived from Code 1960, § 6338. Similar provisions are now set out in § 25-53. Sec. 25-52. - Suspension, rescission or revocation of owner's or driver's permit—Generally. The chief of police may suspend the permit after giving written notice to the permit holder of not less than two (2) business days, in person or by registered special delivery, postage prepaid and addressed to the permit holder at the address specified in the permit application or any amendment thereto, of the suspension and proposed revocation, stating with specificity the reasons therefor, under the following conditions: (a) Transmission of radio communication containing opprobrious, expletive, obscene, indecent, or profane words, language, or meaning. (b) Transmission of radio communications containing whistling, sound effects, or any material for amusement, or solely to attract attention. (c) Whenever it shall be brought to the attention of the chief of police that the holder of an owner's or driver's permit has violated any provisions of this article. The permit holder may file with the chief of police, within ten (10) days of the date of the notice of suspension and proposed revocation, a written request for a hearing. Such request shall have the effect of staying the suspension until the chief of police has rendered his decision, except in instances where said suspension is necessary to protect the public safety. The chief of police shall hold a hearing within ten (10) days after the filing of such request. At the hearing, the chief of police shall hear all relevant evidence, consider the merits of the proposed revocation, including any actions which have been taken to cure the alleged violation, and shall render a decision thereon within two (2) business days after the hearing. Said decision shall be communicated in writing to the permit holder within one (1) business day thereafter and shall state with specificity the reasons therefor. In the event that the permit holder does not request a hearing within ten (10) business days after the date of the notice of suspension and proposed revocation, the permit shall be revoked and revocation shall not be appealable and the permit holder shall have waived all rights to administrative or judicial remedy. (Ord. No. 1658, § 20, 12-20-84) Editor's note— Ord. No. 1658, § 20, adopted December 20, 1984, amended the Code with new provisions for § 25-52. Former § 25-52, concerning permits nontransferable, derived from Code 1960, § 6339. Similar provisions are now set out in § 25-54. Sec. 25-53. - Same—No refund of fee. Page 8 In the event of the revocation, rescission or suspension of any permit issued under the authority of this division, no refund shall be made on any permit fee paid as required by the provisions hereof. (Ord. No. 1658, § 21, 12-20-84) Sec. 25-54. - Permits—Nontransferable. No permit granted under the authority of this article shall be assigned or transferred, or in any manner authorize anyone other than the person to whom the same has been issued, to operate an automobile for hire, either as owner or driver thereof. (Ord. No. 1658, § 22, 12-20-84) Sec. 25-55. - Same—Possession. Any driver to whom a driver's permit has been issued under this division to operate an automobile for hire, must maintain and possess his or her own driver's permit on his or her person at all times during the operation of such automobile for hire in the City of West Covina. (Ord. No. 1658, § 23, 12-20-84) Page 9 ATTACHMENT 2 Sec. 14-68. - Schedule. The several rates for licenses for the pursuit of businesses, trades and occupations hereinafter set forth, and to be paid by the owners or agents thereof, shall be those fees fixed and established from time to time by the city council by resolution and are subject to the category codes and restrictions as follows: Category Code A: A-I Residential Rentals Apartments, hotels, motels, mobile home parks, convalescent homes, nursing homes, hospitals and businesses of a like nature or similar character. Any hospital, the property of which is exempt from taxation pursuant to Section lc of Article X111 of the Constitution of the State of California, shall be exempt from the payment of the license fee prescribed by this section. An application for exemption shall be filed annually during the month of January. The application shall declare whether or not the property of the hosbtal was exempted from the payment of property taxes for the current fiscal year. The license collector shall transmit the application to the city council. if the application meets the requirements for exemption, the exemption shall be allowed by the city council. Category Code A: A-IF Office and Commercial Rentals Offices, stores, industrial plants or any building or structure of any kind on land located in the city and rented to a tenant for purposes other than dwelling, sleeping, or lodging. This includes the letting of every kind and character, whether by an owner, lessee or sublessee, of such types of rentals. Where a land lease is in effect for the purpose of effectuating the use of the property for the purposes noted in this category, then such rents from said land shall also be subject to the business licensing provisions herein. All rentals received by one (1) individual or entity can be combined in one (1) license. In the case of a gross receipts tax, the fees prescribed in the schedule of fees for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. As used in this category "gross receipts" means the total amount charged or received during the license period without any deduction whatsoever. The license collector shall specify the information to be provided in the license application, including requiring that the licensee submit a copy of the tax return filed with the California Franchise Tax Board relative to all revenues received by the licensee within the city during the license year. Within thirty (30) days after the end of the calendar year for which the license is issued or upon the transfer of ownership of the property or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be shall file a declaration under penalty of perjury specifying the total amount of gross receipts received during the license period. If any additional taxes are due upon the basis of the gross receipts from such properties, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. The city council may, by resolution, suspend all or any portion of said tax imposed under Category A- ll for a period of time as it determines to be equitable in order to adjust the impact of said tax. At the end of said period of suspension, the tax shall automatically be reinstated in accordance with the amounts set forth in the schedule of fees. Category Code A: A-III Commercial Tenants Occupancy Tax For the privilege of occupancy of offices, stores, industrial plants, any building or structure of any kind on land located in the city and rented to a tenant for purposes other than dwelling, sleeping or lodging, an excise tax is hereby imposed upon every tenant of such premises. Where a land lease is in effect for the purpose of effectuating the use of the property for the purposes noted in this category, then such charges from said land shall also be subject to the excise tax provided for in the schedule of fees. Page 1 In the case of a gross receipts tax, the fees prescribed in the schedule of fees for the first unit gross receipts shall be due and payable at the time the application for the license is filed. As used in this category "gross receipts" means the total amount charged or received during the license period without any deduction whatsoever. The license collector shall specify the information to be provided in the license application, including requiring that the licensee submit a copy of the tax return filed with the California Franchise Tax Board relative to all revenues received by the licensee within the city during the license year. Within thirty (30) days after the end of the calendar year for which the license is issued or upon the transfer of ownership of the property or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be shall file a declaration under penalty of perjury specifying the total amount of gross receipts received during the license period. If any additional taxes are due upon the basis of the gross receipts from such properties, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. Exempted under this Category A-III are tenants of an entity subject to taxation under Category A-I or A-II. The city council may, by resolution, suspend all or any portion of said tax imposed under Category A- III for a period of time as it determines to be equitable in order to adjust the impact of said tax. At the end of said period of suspension, the tax shall automatically be reinstated in accordance with the amounts set forth in the schedule of fees. Category Code P: P-I Professions Accountant, public Architect Attorney Bond counsel Certified public accountant Chemical engineer Chemist Chiropodist Chiropractor Civil engineer Computer consultant Construction engineer Consulting engineer Dentist Economic consultant Electrical engineer Environmental consultant Financial consultant Page 2 Geologist Labor relations consultant Landscape architect Lighting consultant Management consultant Market feasibility consultant Mechanical engineer Mortician Oculist Optometrist Oral surgeon Osteopath physician Physician Physician and surgeon Planning consultant Sanitation engineer Soils engineer Surgeon Traffic transportation engineer Veterinarian Similar and like professions are to be included as well in this category. Category Code P: P-I1 Services Abstractor of title Advertising counsel Agricultural advisor Appraiser Assayer Auditor Bail bond broker Barber shop Page 3 Beauty shop Business management consultant Bookkeeper Car washing Child nurseries Claim adjuster Dancing academy Dealers in securities Dental labs Designer Detective Detective agency Draftsman Drugless practitioner Dry cleaner Dry cleaner service Electrologist Employment agency Fine arts or music school Fortune teller Herbalist Hypnotherapist Herbalist Industrial relations consultants Insurance adjuster Insurance agent or broker Interior decorator Investment counselor Escrow office Laundries (professional) Page 4 Lapidary Masseur, masseuse Naturopath Private patrol Photographer Real estate offices Stock and bond broker Surveyor Swimming instructor Taxidermist Trade or business school Travel bureau Tree removing Tree surgery Tree trimming Rental of vehicles or equipment Watch repairing X-ray technician Wholesale jobbing Similar and like professions are to be included as well in this category. Category Code C: Contractors All contractors who perform construction work in the city and who are subject to the job fee described in this paragraph shall pay an annual license fee according to the schedule of fees. Such fee shall not be prorated. In addition, all general contractors shall pay as a part of the business license a job fee, which fee shall be a sum equal to the building permit fee or other general contracting permit fee. The job fee shall be due and payable at the time of the issuance of the permit and shall be paid at the same time the permit fee is paid as required by chapters 12 and 13; article II of chapter 23; chapter 9; chapter 19, articles I through Ill; chapter 24, article II (limited to permits for finish grading, retaining walls, and sewer connections); chapter 7; and chapter 19, article [V of this Code. Exceptions: (1) An owner-builder shall be exempt from payment of any license fee or job fee if all work performed under a permit is done exclusively by such owner upon his own property. (2) Permits for work within the public right-of-way or future right-of-way shall be exempt from application of a job fee. Page 5 Contractors not subject to the job fee referred to above in this section shall pay an annual business license tax per the fee schedule. There shall be no prorations of the business license tax referred to herein. Contractors shall not be subject to the business improvement area taxes levied pursuant to section 14-84 of this Code. Category Code V: Sanitary Landfills and Disposal Facilities All sanitary landfill and disposal facilities and sites shall pay a business license tax computed on a monthly basis in an amount set forth in the schedule of fees. Said tax incurred for the months July, 1985, through June, 1986, shall be due and payable at the end of the twelfth month after the following month for which the tax is computed. Interest on said tax shall be due and payable at the same time as said tax. Interest shall be computed from the first day of the second month following the month for which the tax is computed at the average of the short term investment rate of the city for the twelve (12) months preceding the date upon which said tax becomes due and payable. Notwithstanding the foregoing, beginning in July, 1986, said tax for each month shall be due and payable, without any interest thereon, the last day of the following month for which the tax is computed. A statement of gross receipts from the operation of any such facility which is subject to taxation pursuant to this section shall be filed by the last day of the month following the month for which the tax is computed. Such statement of gross receipts shall not be conclusive as to the matter set forth therein, nor shall the filing of the same preclude the city from collecting, by appropriate action, such sums as are actually due and payable. Such statement and each of the several items therein contained shall be subject to audit and verification by the city tax collector to inspect the books and records of the licensee as may be necessary to verify or ascertain the amount of the license fee due. Category Code R Retail businesses listed below, and all other persons engaged in the business of making sales at retail where seventy-five (75) percent of the total revenues of such business are derived from such sales, except as otherwise provided in this article. Appliance stores Auto accessories Bakeries Bookstores Candy shops Carpet and rug stores Children's wear Department stores Drugstores Florists Furniture Gift shops Hardware Health food stores Page 6 Ice cream stores Jewelry stores Ladies wear Liquor stores Mattress shops Men's stores Music stores Newspaper offices New car dealers Pet stores Pool supply stores Printers TV-Radio stores Restaurants Taverns and bars Service stations Shoe stores Shoe repair Sporting goods Toy stores Variety stores Wallpaper and paint stores Yardage and drapery stores Category Code M Manufacturers, wholesalers, newspaper publishing, grocers, meat markets, transfer and storage companies, and businesses of a like nature or similar character. Category Code S: Special Businesses. Fixed fees shall be as established in the schedule of fees for the below: 1. Finance companies. 2. Savings and loan associations. 3. Dance: Page 7 (a) Public. (b) Cabaret dancing. 4. Skating and roller rink. 5. Theaters and movies. 6. Gyms and figure salons. 7. Billiard parlors. 8. Bowling alleys. 9. Mailing and telephone service. 10. Laundromats and coin-operated washers and dryers: (a) Laundromat: Coin-operated. (b) All other coin-operated washers and dryers: (1) Installed and maintained by the owner of the property or his lessee. (2) Installed and maintained by an individual or company not the owner or lessee of the property. 11. Vending machines. Every person who is exclusively engaged in the business of renting, leasing or operating coin-operated vending machines shall pay an annual license tax on each such machine located within the city, calculated upon the gross receipts from the machine, as established in the schedule of fees. (a) A cigarette vending machine. (b) A photo-machine. (c) A stamp machine. (d) A bulk vending machine; as used in this paragraph, a bulk vending machine is a nonelectrically operated vending machine containing unsorted nuts, confections or merchandise which, upon insertion of the coin, dispenses the same in portions at random without selection by the customer. (e) Any other coin-operated vending machines exclusive of video game machines: (1) Requiring ten cents ($0.10) or less to operate. (2) Requiring more than ten cents ($0.10) to operate. The fees prescribed in this subsection for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. Within thirty (30) days after the end of the calendar year for which the license is issued or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received from the operation of the machine during the license period. If any additional taxes are due upon the basis of the gross receipts from any such machine, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. In addition, the license collector may require the licensee to submit a copy of the sales and use tax return filed relative to each licensed machine or may require any other substantiating information specified in section 16002.5 of the Business and Professions Code. As used in this subsection "gross receipts" means the total number of dollars actually removed from the machine during the license period without any deduction whatsoever. 12. Vending machines, alternative tax: As an alternative to paying the business licenses specified in subsection 11 of this Category Code S, every person who is exclusively engaged in the business Page 8 of renting, leasing or operating coin-operated vending machines within the city may elect to, or if the provisions of subsection 11 are held to be invalid for any reason, shall, pay an annual license tax calculated on the gross receipts from all such machines located in the city as established in the schedule of fees. The fees prescribed therein for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. Within thirty (30) days after the end of the calendar year for which the license is issued or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received from the operation of all machines within the city during the license period. If any additional taxes are due upon the basis of the gross receipts from such machines, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. In addition, the license collector may require the licensee to submit a copy of the sales and use tax return filed relative to all machines operated by the licensee within the city during the license year or may require any other substantiating information specified in section 16002.5 of the Business and Professions Code. As used in this subsection "gross receipts" means the actual number of dollars actually removed from all machines operated in the city during the license period without any deduction whatsoever. 13. Peddlers and solicitors. 14. Junk dealers. 15. Bankruptcy, liquidation and like sales. 16. Carnivals and circuses. 17. Other coin-operated machines: (a) Game and amusement machines: (1) Requiring less than ten cents ($0.10) to operate. (2) Requiring ten cents ($0.10) or more to operate. (b) Any other coin-operated vending machine exclusive of video game machines which is not licensed under subsection 11 or 12 of this category code S: (1) Requiring ten cents ($0.10) or less to operate. (2) Requiring more than ten cents ($0.10) but less than twenty-five cents ($0.25) to operate. (3) Requiring twenty-five cents ($0.25) or more to operate. (c ) Video game machines which are not licensed under subsection 25 of this category code S shall be subject to fees as established by resolution. 18. House movers. 19. Taxicab operators. 20. Delivery or sale of goods or services by vehicle or on foot within the city: (a) Wholesale delivery. (b) Retail delivery. (c) Mobile food vendors. (d) Laundry, dry cleaning or uniform service routes. (e) All other route sales or rentals. 21. Mobile services not otherwise listed under this category. 22. Shoeshine stand. Page 9 23. Amusement shows. 24. Gardeners. 25. Video game machines: (a) Every person who is exclusively engaged in the business of renting, leasing or operating coin-operated video machines shall pay an annual license tax calculated on the gross receipts from all such machines located in the city as established by resolution. The fees prescribed therein for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. Within thirty (30) days after the end of the calendar year for which the license is issued or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicant, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received from the operation of all machines within the city during the license period. If any additional taxes are due upon the basis of the gross receipts from such machines, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. In addition, the license collector may require the licensee to submit a copy of the sales and use tax return filed relative to all machines operated by the licensee within the city during the license year or may require any other substantiating information specified in section 16002.5 of the Business and Professions Code. As used in this subsection, "gross receipts" means the actual number of dollars actually removed from all machines operated in the city during the license period without any deduction whatsoever. (b) Alternative tax: As an alternative to paying the business license specified in subsection 25(a) of this category code S, every person who is exclusively engaged in the business of renting, leasing or operating coin-operated video game machines within the city may elect to pay a flat fee per machine as established by resolution. 26. Small collection facilities and reverse vending machines. The city council may, by resolution, suspend or reduce all or any portion of said tax imposed on small collection facilities and reverse vending machines for a period of time as it determines to be equitable in order to adjust the impact of said tax. At the end of said period of suspension, the tax shall automatically be reinstated in accordance with the amounts set forth therein. It shall be unlawful for the city tax and license collector or any person having an administrative duty under the provisions of this section to make known in any manner whatsoever the business affairs, operations or information obtained by an investigation of records of any licensee or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth in any declaration required to be filed by this section. However, nothing contained herein shall prevent the disclosure of the names and addresses of persons to whom licenses have been issued and the general type or nature of their business, the disclosure of general statistics regarding taxes collected or business done in the city or the disclosure by way of public meetings, or otherwise, of such information as may be necessary to the city council in order to permit it to be fully advised as to the facts when a taxpayer files a claim for refund of license taxes or submits an offer of compromise with regard to a claim asserted against him by the city for license taxes or when acting upon any other matter. The business license taxes levied pursuant to this section shall be subject to the business improvement area taxes levied pursuant to section 14-84, except as noted elsewhere in this Code. Category Code Z: Miscellaneous Businesses Any business not categorized above shall be taxed on the gross receipts attributable to business conducted within the city unless another method of collection is required by law. In the case of a gross receipts tax, the fees prescribed in the schedule of fees for the first unit of gross receipts shall be due and payable at the time the application for the license is filed. As used in this category Page 10 "gross receipts" means the total amount charged or received during the license period without any deduction whatsoever. The license collector shall specify the information to be provided in the license application, including requiring that the licensee submit a copy of the tax return filed with the California Franchise Tax Board relative to all revenues received by the licensee within the city during the license year. Within thirty (30) days after the end of the calendar year for which the license is issued or upon the transfer of ownership of the property or at the time an application is filed for the renewal of the license, whichever is earlier, the licensee or applicants, as the case may be, shall file a declaration under penalty of perjury specifying the total amount of gross receipts received during the license period. If any additional taxes are due upon the basis of the gross receipts from such properties, the additional tax shall be paid at the time the declaration is filed and before any renewal license is issued. The city council may, by resolution, suspend all or any portion of said tax imposed under Category Z for a period of time as it determines to be equitable in order to adjust the impact of said tax. At the end of said period of suspension, the tax shall automatically be reinstated in accordance with the amounts set forth in the schedule of fees. (Code 1960, § 6235; Ord. No. 1261, §§ 1-3, 12-23-74; Ord. No. 1262, § 1, 1-27-75; Ord. No. 1290, § 3,2-23-76; Ord. No. 1311, § 8,8-9-76; Ord, No. 1385, § 1,6-26-78; Ord. No. 1386, § 2, 6-26-78; Ord. No. 1391, § 1, 7-24-78; Ord. No. 1486, § 8, 8-25-80; Ord. No. 1510, § 1, 4-27-81; Ord. No. 1524, § 1, 10-12-81; Ord. No. 1683, § 1, 6-24-85; Ord. No. 1700, §§ 1-4, 10-28-85; Ord. No. 1709, §§ 2, 3, 1-13-86; Ord. No. 1766, § 1, 2-8-88; Ord. No. 1806, §§ 1, 2, 2-13-89; Ord. No. 1807, § 1, 2-13-89; Ord. No. 1859, § 1, 10-1-90; Ord. No. 2196, § 3(Exh. A(1)), 9-1- 09) Page 11 City of West Covina Memorandum AGENDA TO: Mayor and City Council ITEM NO. 19 FROM: Tom Malik DATE September 15, 2015 Interim City Manager BY: Chris Freeland Assistant City Manager/Community Development Commission Director SUBJECT: REQUEST FROM COUNCILMEMBER COREY WARSHAW REQUESTING THE CITY COUNCIL'S CONSENSUS TO INSTRUCT CITY STAFF TO DEVELOP A POLICY FOR THE REVIEW AND PAYMENT OF LEGAL FEES RECOMMENDATION: It is recommended that the City Council instruct City staff to develop a policy for the review and payment of legal fees. DISCUSSION: Per the City Council Standing Rules, Councilmember Corey Warshaw is seeking the City Council's consensus to instruct City staff to develop a policy for the review and payment of legal fees. The State Audit report contained a finding that previous legal billings did not contain sufficient information to describe the services rendered by the city's various attorneys. This policy would also contain an outline of the needed information to better describe the legal services being provided. FISCAL IMPACT: None. Prepared by: Chris Freelail Assistant City Manager/Community Development Commission Director