It is recommended that the City Council:

1. Approve the Annual Report for Fiscal Year 2026-27 for the West Covina Auto Plaza Business Improvement District.
2. Adopt the following resolution:  

 

The Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 36500 et seq.) ("PBIA Law") establishes the framework for business improvement districts. The State wanted to make it possible for groups of businesses to band together and invest in their commercial neighborhoods for the purposes of revitalization, stability, and growth.  On June 1, 1993, the City Council adopted Ordinance No. 1923, which established the West Covina Auto Plaza Business Improvement District ("Auto Plaza BID" or "BID"). The City created this BID at the request of the businesses located in the area. Each year, the City Council holds a noticed public hearing before deciding to renew the BID for another year.   

The assessment revenue is collected from businesses located within the Auto Plaza BID and is used to pay for the capital costs, operation and maintenance of an LED readerboard sign located in the West Covina Auto Plaza, adjacent to the I-10 freeway, and for the operation and maintenance of the Auto Plaza entry monument sign and landscaping located at the southeast corner of Azusa Avenue and Garvey Avenue South.  Assessment revenue is also used for landscaping maintenance along the I-10 freeway immediately facing and parallel to the Auto Plaza dealerships. 

On April 19, 1994, the City Council appointed an Advisory Board consisting of the owners (and/or their representatives) of the auto dealerships located at the Auto Plaza.  The function of the Advisory Board is to make recommendations to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of businesses, and on the method and basis of levying the assessments.  Pursuant to the PBIA Law, for each fiscal year that assessments will be levied, the Advisory Board is required to cause a report to be prepared containing the following:   
(1) any proposed changes in the boundaries of the BID or in any benefit zones within the area; 
(2) the improvements and activities to be provided for that fiscal year;
(3) an estimate of the cost of providing the improvements and the activities for that fiscal year; 
(4) the method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year;
(5) the amount of any surplus or deficit revenues to be carried over from a previous fiscal year; and 
(6) the amount of any contributions to be made from sources other than assessments levied. 

The purpose of this report is to request that the City Council approve the Annual Report and adopt the resolution of intention to levy the assessment for Fiscal Year (FY) 2026-27.
 

On June 18, 2026, the Auto Plaza BID Advisory Board held its annual meeting and approved the Annual Report (Attachment No. 1).  The Annual Report was filed with the City Clerk as required by the PBIA Law. The next step is for the City Council to approve the report. The City Council may approve the report as filed by the Advisory Board or may modify any particulars contained in the report and approve it as modified. After the City Council approves the report, it is required to adopt a resolution of intention to levy the annual assessment. The PBIA Law requires that the resolution of intention contain specified information, including fixing the time and place for the public hearing to be held regarding the proposed assessment.  

The proposed resolution (Attachment No. 2) sets the date for the required public hearing for July 21, 2026, at 7:00 p.m., or as soon thereafter as the matter may be heard. At the conclusion of the public hearing, the City Council may adopt a resolution confirming the Annual Report as originally filed or as changed by it. Adoption of the resolution constitutes levy of the assessment for FY 2026-27.

The Annual Report includes a total budget of $121,168, with an assessment of $16,524.00 per dealership site. The gross estimated annual cost for operating expenditures including programming, maintenance, electricity, and insurance for the readerboard sign, landscaping, landscape maintenance, taxes and preparation costs, is $60,750. 

The Advisory Board voted to assess themselves $16,524.00 (the same as last year), which would generate $115,668.00 for FY 2026-27. In addition, $5,500 will be generated in interest income, for a total revenue of $121,168 for FY 2026-2027. As the annual expenditures are $60,750, the assessments will cover the total annual expenditures, with a surplus of $60,418. An assessment of $16,524.00 for each of the seven (7) dealership sites in the Auto Plaza BID will be placed on the tax rolls by the County of Los Angeles Department of Auditor-Controller.

As outlined above, the PBIA Law requires approval of the Annual Report and adoption of a resolution of intention to initiate proceedings for the FY 26-27 assessment for the Auto Plaza BID. 
 

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

The City Council has the following options:

1. Approve staff’s recommendation; or
2. Provide alternative direction.