Council receives audit overview of city‑partnered events; debate over Mega Moon Festival MOU continues

City staff on Aug. 5 presented a preliminary overview and voluntary financial summaries for city‑partnered events from 2022 through 2024, including the Easter Eggstravaganza, Cartoberfest, the Children’s Christmas Parade and the Mega Moon Festival. The council voted to receive the presentation and discussed next steps for memoranda of understanding (MOUs) and financial transparency.

Staff said the review covered events for which the city had either an MOU or a facility‑use agreement and that participation by nonprofit partners in supplying financial detail was voluntary. The presentation noted that some partners supplied payroll and non‑payroll expense data; others had not yet responded to staff requests.

Payroll and donations: Finance data presented for the Mega Moon Festival showed city payroll costs of about $13,124 in 2023 and about $64,900 for 2024, figures staff said were compiled from departmental time sheets and other records. Staff emphasized those numbers are preliminary and self‑reported by partner organizations unless otherwise noted. The Chinese American Association of West Covina (CAAWC) reported making donations to the West Covina Community Services Foundation; staff said $5,000 donations from two organizations were recorded in 2024. A councilmember cited CAWC’s IRS Form 990 online filings during the meeting to note year‑to‑year income changes.

Council debate and motions: During public comment and council discussion, some councilmembers and residents urged greater accountability and transparency. Councilmember Contos moved that the city immediately stop using city resources for the 2025 Mega Moon Festival until a formally approved MOU with the nonprofit was in place. The motion was seconded and went to roll call: Contos and Councilmember Gutierrez voted yes; Councilwoman Diaz and Mayor Wu voted no; Mayor Pro Tem Lopez Villada was absent. The motion failed.

Councilmembers and staff discussed bringing the MOU to council for review (staff said they planned to bring the document for council consideration in September). Several councilmembers asked staff to re‑contact organizations that had not provided voluntary financial information and to provide detailed payroll backup for the 2024 Moon Festival payroll figure, which some members described as unexpectedly high.

Staff said MOUs can be drafted to include audit provisions — the city attorney confirmed the council can require an audit clause in an MOU — and that the city manager has signatory authority up to the city’s administrative threshold. Staff also said some vendor and permit fees for the Moon Festival (for example fire‑safety permit fees) were waived under past MOUs; councilmembers asked for clarity on fee waivers and their fiscal impact.

Outcome and follow up: The council received the report (recorded as receive and file). Staff committed to following up with nonprofit partners for missing data, to provide detailed payroll backup for the Moon Festival staffing costs, and to present the draft MOU to council at a future meeting (staff indicated the draft could be available for the first meeting in September). The council did not adopt new MOU language at the Aug. 5 meeting.

Quotes: A councilmember asked whether the mayor had a conflict given a nonprofit filing name referenced in public comment; the city attorney said he would review the question. Staff said the figures are preliminary and compiled from voluntary submissions when available.

The council discussion highlighted a tension between preserving long‑standing nonprofit partnerships that organize large community events and the council’s interest in financial transparency and protective contract language. Several councilmembers suggested options including city takeover of event operations for this year if the MOU and partner disclosures were not complete in time to resolve concerns; staff said they would report back on next steps and timeline.