Exhibit B - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “B”
PLANS AND SPECIFICATIONS
JAMES WOODY (REAR) PARK
Exhibit B - 2 SHORT FORM CONSTRUCTION CONTRACT
Exhibit B - 3 SHORT FORM CONSTRUCTION CONTRACT
Exhibit B - 4 SHORT FORM CONSTRUCTION CONTRACT
Exhibit B - 5 SHORT FORM CONSTRUCTION CONTRACT
James Woody (Rear) Park Specs
Exhibit B - 6 SHORT FORM CONSTRUCTION CONTRACT
Sycamore Rocks Specs
Exhibit C - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “C”
SPECIAL CONDITIONS
A. BONDS
Concurrently with this Contract, the Contractor shall deliver to the Town four identical counterparts of the Performance Bond and Payment Bond on the forms supplied by the Town and included as Exhibit “F” to the Contract. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the Town. The Performance Bond and the Payment Bond shall be for one hundred percent (100%) of the Total Contract Price.
B. THE REQUIREMENTS: All work embraced herein shall be accomplished in accordance with the applicable portions of the “Standard Specifications for Public Works Construction,” latest edition, and all subsequent supplements herein referred to as “Standard Specifications,” except as modified by these Special Provisions and the Project Plans.
In addition to the above, the Contractor shall comply with the requirements of the following:
(a) Notice Inviting Sealed Bids
(b) Instructions to Bidders
(c) Proposal
(d) Bid Bond
(e) Information Required of Bidders
(f) Contract
(g) Faithful Performance Bond
C. DEFINITION OF TERMS: Wherever in the "Standard Specifications" terms are used, they shall be understood to mean and refer to the following:
Agency & Owner - Town of Apple Valley
Board - Town Council, Town of Apple Valley
Engineer - The Town Engineer, acting either directly or through the properly authorized agents, such agents acting within the scope of the particular duties entrusted to them.
Notice to Contractors - Notice Inviting Sealed Bids
D. PROJECT PLANS: The location of the work, its general nature, extent, form and detail of the various features are listed as a part of these specifications.
E. SCOPE OF WORK: Provide necessary labor, equipment, and materials to construct a concrete transit bus pad, concrete curb, concrete sidewalk, relocate existing bus shelter, and associated work in accordance with the project plans, standard specifications, special provisions, and as directed by the Town Engineer.
F. NOTICE TO PROCEED: Upon award of this contract and signing the contract documents, the Town shall issue the Contractor a Notice to Proceed.
Exhibit C - 2 SHORT FORM CONSTRUCTION CONTRACT
The work on this project shall commence within 10 calendar days of the Notice to Proceed and be completed within 60 working days. Working days will be counted from the date of the Notice to Proceed. Working days are defined as any day that Town offices are open for business.
The Town will not authorize any work to be done under these specifications before the contract agreement has been fully executed; and any work that is done by the contractor in advance of such time shall be considered as being done at the Contractor’s own risk and responsibility, and as a consequence will be subject to rejection by not having been done in the presence of an Engineer or Inspector as provided in Section 2-10 of the Standard Specifications.
In the event that the Town Engineer shall be of the opinion that the work is being inadequately or improperly executed in any respect, the Town Engineer may demand that the Contractor improve or change the execution of the work in such manner as to assure proper and timely completion.
G. UTILITIES: It is anticipated that the existing utilities will not interfere with the Contractor's construction operations, other than those noted on the improvement plans. However, the Contractor shall exercise due care to ensure that these utility facilities are not damaged during operations. When in doubt, the Contractor shall contact the utility concerned before proceeding further.
H. NOTIFICATION: The Contractor shall give written and reasonable notice to occupants or owners of property adjacent to the construction site at least forty-eight (48) hours prior to the beginning of construction in their respective areas. The notification shall include the date and time of construction activities, parking and traffic access information and requirements, and precautionary information regarding the work to be done. A copy of all notifications shall be submitted to the Town Engineer for approval.
At least four (4) working days in advance of street closures, all emergency services, public transportation services, garbage collections services, and school bus services shall be notified by the Contractor in writing of the locations, time and date of the closure. In case of schedule changes, the emergency services, etc., shall be notified by telephone at least two (2) days in advance of the street closure.
I. ACCESS TO DRIVEWAYS: The Contractor shall notify in writing residents of property adjoining the location of the work at least forty-eight (48) hours before the start of construction on that street.
The Contractor is responsible for posting "temporary no-parking" signs at least forty-eight (48) hours before using the parking lane for construction purposes. In the case of work requiring excavation of the roadway which may interfere with the use of businesses driveways, suitable provisions shall be made by the Contractor at such time as the exigencies of construction may demand a temporary blocking of said driveways. Efforts shall be made by the Contractor to minimize the duration of said blocking and to notify the residents of this need well in advance.
Further, the Contractor shall provide access to each residential or commercial establishment each evening.
J. STREET CLOSURES: No closure of any street shall be allowed unless prior written permission is obtained from the Town Engineer. If permission to close a street is granted then the Contractor is required to notify in writing at least four working days in advance, all emergency services, public transportation services, garbage collection services, and school bus services of the location, time and date of the closure.
Exhibit C - 3 SHORT FORM CONSTRUCTION CONTRACT
K. CONFERENCE: The Contractor shall arrange a pre-construction meeting with the Town Engineer which shall be held a minimum of five (5) working days prior to commencement of any work. The Contractor shall have equipment available for inspection by the Town Engineer at the time of the pre-construction meeting.
L. PUBLIC CONVENIENCE AND SAFETY:
a) Attention is directed to Part 6 of the Standard Specifications and Part 6 of the California Manual on Uniform Traffic Control Devices (CA MUTCD), published by the California Department of Transportation.
b) WARNING AND PROTECTION DEVICES: The Contractor will be responsible for providing, placing and maintaining approved signs, barricades, pedestals, flashers, delineators, fences, barriers and flagmen where needed, and other necessary facilities in the vicinity of the construction area and where any dangerous conditions may be encountered as a result thereof, for the protection of the motoring public. The Contractor will not be allowed to proceed with the work until such time that a sufficient number of these protection devices have been delivered to the project site. Where parked vehicles are likely to interfere with the proposed work, the Contractor will supply and post at no less than two-hundred (200) foot intervals on each side of the street "Temporary No Parking" signs twenty-four (24) hours before the start of construction and to report the time of posting to the Town's Police Department for the purpose of establishing "Tow Away" provisions. The Contractor shall be responsible for the removal of the temporary signs upon the completion of the work.
Should the Contractor appear neglectful or negligent in furnishing warning and protection devices as outlined above, the Town Engineer may direct attention to the existence of a hazard and the necessity of additional or different measures which shall be furnished and installed by the Contractor at its own expense, free of any cost to the Town. Should the Contractor refuse or fail to act in a timely manner to correct a hazardous condition, the Town Engineer may direct Town forces to provide the necessary protective and warning devices as deemed appropriate by the Town Engineer.
The cost accrued by the Town in connection therewith will be deducted from the Contractor's contract payment. Any action or inaction on the part of the Town in directing attention to the inadequacy of warning and protective measures or in providing additional protective and warning devices shall not relieve the Contractor from responsibility for public safety or abrogate its obligation to furnish and pay for these devices.
The Contractor shall submit its work schedule and traffic control plans to the Town Engineer for approval at the pre-construction conference. This schedule shall allow residents, on the streets to be improved, ample "on street" parking within an eight-hundred (800) foot distance from their homes.
M. SANITARY CONVENIENCE: Necessary sanitary facilities for the use of workers on the job shall be provided and maintained in an approved manner by the Contractor, properly secluded from public observation and in compliance with health ordinances and laws, and their use shall be strictly enforced by the Contractor.
N. CONSTRUCTION YARD: It shall be the Contractor's responsibility to locate any storage sites for materials and equipment needed and such sites either located on public or private property must be approved in advance by the Town Engineer.
Exhibit C - 4 SHORT FORM CONSTRUCTION CONTRACT
When storage sites are to be located upon private property, the Contractor shall be required to submit to the Town Engineer, written approval from the record owner authorizing the use of the property by the Contractor.
O. CONSTRUCTION METHODS:
General Requirements:
(a) Utilities - The Contractor shall contact the affected utility companies for information regarding identification, location, and depth of underground utilities. (b) Existing Surveying Monuments - The Contractor’s Licensed Land Surveyor or pre-1982 Civil Engineer shall reference and protect all centerline monuments within the project limits. The survey monuments shall not be disturbed unless required by the construction of the proposed improvements. The Contractor shall coordinate the removal of any survey monuments with the Town Engineer. The re-establishing of the survey monuments once the construction has been completed will be the responsibility of the Contractor. All documentation with regard to referencing all affected monuments shall be submitted to the Town prior to commencement of construction and all documentation with regard to the re-establishing of all monuments shall be submitted to the Town prior to final approval of the project.
(c) Preservation of Property - Existing improvements in areas adjoining the property whereon demolition and removal is being performed shall be protected from injury or damage resulting from operations of the Contractor and the Contractor shall be responsible for such damage. In like manner any building, structure, tree, shrub, landscaping, or other item designated for preservation on the property where demolition and removal are being performed shall be similarly protected and preserved.
(d) Dust Control - The Contractor shall provide such dust laying equipment and methods as may be required to protect adjacent property from annoyance or damage from dust caused by operations, and failure to control such dust shall be cause for the Engineer to stop the work until said dust is controlled, and the Contractor shall have no recourse to collect from the Town for any loss of time or expense sustained by him due to such suspension of work. (e) Selected Materials - Existing materials excavated within the project limits that meet the specifications for trench backfill, topsoil, or other selected materials may be used to fulfill all or a portion of the requirements for such materials. No additional compensation will be allowed for excavation, stockpiling, overhaul, or placing selected materials encountered in the excavation. (f) Surplus Materials - The Contractor shall provide written consent from the owner of the property where it is intended to dispose of the surplus material. Surplus excavation shall become the property of the Contractor.
(g) Furnishing and Applying Water - Furnishing and applying water shall be considered as included in the bid price paid for the various contract items of work requiring such water and no additional compensation will be made.
(h) Compaction Testing: – The expense of the initial testing shall be borne by the Town. The expense of any re-testing required by the Town, if the initial compaction does not meet the required specifications shall be borne by the Contractor. All other material testing shall be borne by the Contractor.
Exhibit C - 5 SHORT FORM CONSTRUCTION CONTRACT
(i) Construction Methods - Provide necessary labor, equipment, and materials to construct a concrete transit bus pad, concrete curb, concrete sidewalk, relocate existing bus shelter, and associated work in accordance with the project plans, standard specifications, special provisions, and as directed by the Town Engineer.
(j) Measurement and Payment - The Cost of all work as described above in (a) through (i) shall be included in the contract unit prices bid for the various items of work requiring such work, and no additional compensation will be allowed.
Exhibit D - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “D”
CERTIFICATION
LABOR CODE - SECTION 1861
I, the undersigned Contractor, am aware of the provisions of Section 3700, et seq., of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I, the undersigned Contractor, agree to and will comply with such provisions before commencing the performance of the Work on this Contract.
Great Western Installation, Inc.
By: _________________________
Signature
_________________________
Name (Print)
_________________________
Title (Print)
Exhibit E - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “E”
PUBLIC WORKS CONTRACTOR REGISTRATION CERTIFICATION
Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/PublicWorks/PublicWorks.html for additional information.
No bid will be accepted nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work.
Contractor hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations.1
Name of Contractor:
DIR Registration Number:
DIR Registration Expiration:__________________________
Small Project Exemption: _____ Yes or _____ No
Unless Contractor is exempt pursuant to the small project exemption, Contractor further acknowledges:
1. Contractor shall maintain a current DIR registration for the duration of the project.
2. Contractor shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project.
3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non-responsive.
Name of Contractor:____________________
Signature:
Name and Title:
Dated:
1 If the Project is exempt from the contractor registration requirements pursuant to the small project exemption under Labor Code Sections 1725.5 and 1771.1, please mark “Yes” in response to “Small Project Exemption.”
Exhibit F - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “F”
PAYMENT AND PERFORMANCE BONDS
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the Town of Apple Valley (hereinafter referred to as “Town”) has awarded to ____________________, (hereinafter referred to as the “Contractor”) _______________________ an agreement for ______________________________ (hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, _______________, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the Town in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the Town, its officers and agents, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by Town, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the Town from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the Town’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by the Town to be, in default under the
Exhibit F - 2 SHORT FORM CONSTRUCTION CONTRACT
Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the Town’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the Town, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Town under the Contract and any modification thereto, less any amount previously paid by the Town to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the Town to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the Town under the Contract and any modification thereto, less any amount previously paid by the Town to the Contractor and any other set offs pursuant to the Contract Documents.
Surety expressly agrees that the Town may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.
Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the Town, when declaring the Contractor in default, notifies Surety of the Town’s objection to Contractor’s further participation in the completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__).
(Corporate Seal)
Contractor/ Principal
By
Title
Exhibit F - 3 SHORT FORM CONSTRUCTION CONTRACT
(Corporate Seal)
Surety
By
Attorney-in-Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or
Representative for service of
process in California, if different
from above)
(Telephone number of Surety
and Agent or Representative for
service of process in California)
NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto.
Exhibit F - 4 SHORT FORM CONSTRUCTION CONTRACT
Notary Acknowledgment
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally
appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document
and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
Exhibit F - 5 SHORT FORM CONSTRUCTION CONTRACT
Exhibit H - 1 SHORT FORM CONSTRUCTION CONTRACT
EXHIBIT “G”
FLEET COMPLIANCE CERTIFICATION
Bidder hereby acknowledges that they have reviewed the California Air Resources Board’s policies, rules and regulations and are familiar with the requirements of Title 13, California Code of Regulations, Division 3, Chapter 9, effective on January 1, 2024 (the “Regulation”). Bidder hereby certifies, subject to penalty for perjury, that the option checked below relating to the Bidder’s fleet, and/or that of their subcontractor(s) (“Fleet”) is true and correct:
The Fleet is subject to the requirements of the Regulation, and the appropriate Certificate(s) of Reported Compliance have been attached hereto. The Fleet is exempt from the Regulation under section 2449.1(f)(2), and a signed description of the subject vehicles, and reasoning for exemption has been attached hereto. Bidder and/or their subcontractor is unable to procure R99 or R100 renewable diesel fuel as defined in the Regulation pursuant to section 2449.1(f)(3). Bidder shall keep detailed records describing the normal refueling methods, their attempts to procure renewable diesel fuel and proof that shows they were not able to procure renewable diesel (i.e. third party correspondence or vendor bids).
The Fleet is exempt from the requirements of the Regulation pursuant to section 2449(i)(4) because this Project has been deemed an Emergency, as defined under section 2449(c)(18). Bidder shall only operate the exempted vehicles in the emergency situation and records of the exempted vehicles must be maintained, pursuant to section 2449(i)(4). The Fleet does not fall under the Regulation or are otherwise exempted and a detailed reasoning is attached hereto.
Name of Bidder:_________________________________________________ Signature: __________________________________________________ Name: __________________________________________________ Title: __________________________________________________ Date: __________________________________________________
Town Council Agenda Report
Date: June 9, 2026
To: Honorable Mayor and Town Council
Subject: CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
(CALIFORNIA JPIA) TORT REFORM LEGISLATION AND JOIN THE
COALITION TO PROTECT COMMUNITY SERVICES
From: Guy Eisenbrey, Town Manager
Submitted by: Guy Eisenbrey, Town Manager
Town Manager Department
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
Authorize the Town Manager to undertake the actions necessary to support legislation sponsored by the California Joint Powers Insurance Authority (California JPIA) and the Coalition to Protect Community Services, including execution and submission of letters of support, communication with legislative representatives, participation in coalition activities, and other related advocacy efforts consistent with Town Council legislative priorities.
BACKGROUND
The California Joint Powers Insurance Authority (California JPIA), of which the Town is a member, has launched the Coalition to Protect Community Services to address what it describes as a growing liability crisis affecting local governments throughout California.
According to California JPIA and the California Association of Joint Powers Authorities, taxpayer-funded liability claims against California public agencies are projected to exceed $2 billion annually by 2027, while insurance premiums paid by local agencies have increased from $115 million in 2016 to $541 million in 2025, representing a 370 percent increase. Claims exceeding $1 million increased by 67 percent between 2015 and 2022.
As liability costs continue to escalate, public agencies face increasing pressure on General Fund resources that would otherwise support essential community services, including public safety, roadway maintenance, parks, recreation programs, libraries,
senior services, and youth programs. California JPIA has identified this issue as one of the most significant emerging fiscal challenges facing local government.
The urgency of this issue is illustrated through recent litigation involving California municipalities. In one case, a distracted driver struck a pedestrian in a marked crosswalk, resulting in catastrophic injuries. Although the driver carried only a $100,000 insurance policy and lacked additional assets, the city ultimately paid a $10 million settlement because even a minimal finding of fault could have exposed the city to the entirety of the plaintiff's economic damages under California's joint and several liability rules. The settlement represented approximately 17 percent of the city's annual General Fund budget.
In another case, a city paid an $18 million settlement following a collision involving a speeding driver, despite the primary responsible party having already paid its policy limits. The settlement equated to approximately 22 percent of that city's General Fund and roughly four years of its library budget.
According to California JPIA, these types of settlements are becoming increasingly common and are contributing to significant increases in pooled liability costs for member agencies.
To address these concerns, the Coalition is pursuing legislation known as the Community Services Protection Act, which seeks to implement targeted reforms while preserving accountability for governmental negligence.
The proposed reforms include:
Proportionate Liability. Local public agencies would be responsible only for their actual percentage of fault rather than being required to pay damages attributable to other responsible parties who lack financial resources. This proposal would not apply to federal civil rights claims.
Historic Infrastructure Design Immunity Clarification. The legislation would establish a rebuttable presumption that roadways accepted before 1997 were built pursuant to approved designs, addressing situations where agencies are unable to produce decades-old records that were never transferred or retained. The proposal would not create new immunities and would apply only to original roadway designs.
Intentional Wrongdoer Accountability. The legislation would prevent plaintiffs from shifting a disproportionate share of liability to local governments when intentional wrongdoers are judgment-proof or omitted from litigation. Local agencies would remain fully accountable for their own negligence.
Importantly, the Coalition's proposal does not seek blanket immunity for public agencies. Rather, it is founded on three principles: proportionality, accountability, and stewardship of taxpayer dollars. The Coalition expressly recognizes that individuals injured by governmental negligence should receive fair compensation while ensuring that liability is allocated according to actual responsibility and that public funds remain
available for essential services.
As a member agency of California JPIA, the Town participates in a pooled risk-sharing structure. Significant adverse claims affecting member agencies ultimately influence the financial stability of the pool and contribute to increased costs borne by participating jurisdictions. The proposed legislation is intended to address systemic issues before escalating claim costs further erode local government resources and service levels.
STRATEGIC PLAN ALIGNMENT
This action supports the Town Council's goals of maintaining fiscal responsibility, protecting essential municipal services, advocating for local control, and ensuring the prudent stewardship of taxpayer resources.
ALTERNATIVES
1. Approve the recommended action;
2. Provide alternative direction to staff; or
3. Decline to support the proposed legislation.
FISCAL IMPACT
There is no immediate fiscal impact associated with authorizing support for the proposed legislation.
Should the legislation be enacted, the reforms may help moderate future liability exposure, litigation costs, and insurance-related expenses for California public agencies, including the Town. Conversely, absent reform, California JPIA projects continued growth in liability costs that could place increasing pressure on local government budgets statewide.
ATTACHMENTS
A. California JPIA Coalition to Protect Community Services Fact Sheet B. Case Studies: The Case for Proportionate Liability
C. Sample Letter of Support – Coalition to Protect Community Services
CALIFORNIA JPIA | Coalition to Protect Community Services FACT SHEET Join the Coalition to Protect Community Services
A statewide alliance led by the California Joint Powers Insurance Authority (California JPIA) $2 BILLION+ ANNUALLY BY 2027
Taxpayer dollars used to pay claims against California public agencies are projected to exceed $2 billion every year by 2027 — a figure that excludes large, self-insured jurisdictions.
THE CRISIS FACING LOCAL GOVERNMENT
California’s local governments are absorbing a sharp and unsustainable rise in liability costs — driven not by negligence, but by runaway growth in claim awards and disproportionate allocation of fault.
Local governments are being forced to subsidize harm primarily caused by other parties.
The numbers tell the story:
• Taxpayer dollars used to pay claims against California public agencies are projected to exceed $2 billion annually by 2027 — a figure that excludes large, self-insured jurisdictions. • Insurance premiums paid by local agencies have grown 370%, climbing from $115 million in 2016 to $541 million in 2025.
• Large liability claims exceeding $1 million increased 67% between 2015 and 2022.
These figures come from a California Association of Joint Powers Authorities analysis of 1,979 local government agencies — and they represent a trajectory that is not sustainable. Every dollar consumed by disproportionate liability judgments and inflated settlements is a dollar unavailable for police and fire protection, roads and infrastructure maintenance, parks, libraries, senior services, and youth sports programs.
REAL-WORLD IMPACT ON LOCAL BUDGETS
The consequences are already reshaping local budgets across California.
Los Angeles County: After reaching $4 billion in settlements, Los Angeles County proposed $1.3 billion in budget cuts and zero raises — triggering the first countywide strike in SEIU Local 721 history.
The County explicitly cited settlement costs as the reason it could not offer cost-of-living increases.
City of Los Angeles: With nearly $300 million in settlements in 2024 — a 3x increase in two years — the City of Los Angeles now faces a $1 billion shortfall, 1,647 proposed layoffs, constrained publicsafety hiring, and had to borrow $80 million at interest to cover payouts.
These are not isolated cases. Local agencies with $1 million+ in annual claims show statistically significant negative impacts in their communities, including increased poverty rates, unemployment, housing costs for homeowners, and SNAP benefit usage. Large claims often have impacts beyond insurance and litigation costs, influencing budget flexibility, service delivery, and longer-term community indicators. The financial burden of excessive liability costs has a widespread impact.
THREE STRUCTURAL FLAWS CONTRIBUTING TO THE CRISIS
The roots of this crisis run deep. Multiple structural flaws in California law expose local agencies to disproportionate and unjust financial liability — three among many of the problems are described below. “Deep Pocket” Targeting Under Joint and Several Liability Under current law, a city found just 1% at fault can be required to pay 100% of economic damages when co-defendants — drunk drivers, uninsured motorists, careless contractors — have no assets. Local agencies are routinely named in lawsuits not because they caused the harm, but because they can pay.
The result is a system that allocates financial responsibility based on who has money, not who caused the injury.
Design Immunity Documentation Burden for Historic Infrastructure Many local agencies acquired roads from the state or counties decades ago — and design records were never transferred or have long since been lost. Under current law, agencies must produce documentation to assert design immunity, even when that documentation never existed in city records. Agencies are losing cases they should win — not because of improper design, but because they cannot produce paperwork from the 1960’s that was never in their possession.
Fault Shifting When Intentional Wrongdoers Cause the Harm When a violent criminal or other intentional actor is judgment-proof, plaintiffs routinely omit them from the lawsuit entirely and name only the local agency. The result: taxpayers are forced to absorb damages caused by criminal conduct, while the actual wrongdoer bears no financial accountability. This is not an accident of the system — it is a deliberate litigation strategy enabled by a gap in current law.
THREE SURGICAL REFORMS TO PROTECT CORE GOVERNMENT OPERATIONS Establish Proportionate Liability for Local Governments Local agencies pay only their actual share of fault. Eliminates joint and several liability for local public entities so that plaintiffs recover from each responsible party in proportion to that party’s fault.
Does not apply to federal civil rights claims.
Clarify Design Immunity for Historic Infrastructure
Creates a rebuttable presumption that roads accepted before 1997 had approved designs, ending the unfair burden of producing records that often were never transferred. Applies only to the original design — not to subsequent modifications. Does not create new immunity.
Stop Fault Shifting from Intentional Wrongdoers
Prohibits assigning a local agency a share of fault that equals or exceeds the share assigned to an intentional wrongdoer — even when that wrongdoer is not named in the lawsuit. Preserves full accountability for an agency’s own independent negligence.
JOIN THE COALITION TO PROTECT COMMUNITY SERVICES
Fixing California’s liability system will take time and sustained commitment. We invite organizations that share that commitment to join the Coalition and support the Community Services Protection Act, as the first in a series of necessary reforms. Return letters of support to [email protected] Coalition to Protect Community Services | Fact Sheet • Page 2
Case Studies: The Case for Proportionate Liability
Under California's joint and several liability rule, a city found just 1% at fault can be forced to pay 100% of a plaintiff's economic damages when the other responsible defendants can't pay. The cases below show what that means in practice: in each situation, the driver who caused the collision paid an insurance policy limit and walked away, while taxpayers absorbed a multimillion-dollar settlement. Proportionate liability would fix this injustice by requiring each party to pay only its actual share of fault, as determined by the court.
Case Study 1 — Bautista v. City of Chino Hills
What Happened?
A jogger crossing in a marked crosswalk was struck by a distracted driver and left a paraplegic. The driver—familiar with the crosswalk, by her own testimony—carried a $100,000 auto insurance policy and had no other assets.
The Claim
The City should have added in-ground flashers or a stop sign—neither recommended by traffic engineers for this intersection, which already had two sets of pedestrian warning signs.
Damages Alleged $23.6 million in economic damages
At Fault Driver Paid $100,000 (policy limit) — then no further exposure City Settled and
Taxpayers Paid $10 million
Difference Plaintiff accepted settlement of $10M, and stopped pursuing the $23.6M in alleged damages
Why the City Settled:
With a catastrophically injured plaintiff and a judgment-proof driver, even a 1% fault finding by the court would have made the City liable for the full $23.6 million in economic damages. That exposure—not the strength of the claim—forced a $10 million settlement.
In Budget Terms:
$10M = 17% of the City's entire annual General Fund ($58.6M), the fund that pays for police, public works, and parks. As a member of the California JPIA, the cost of this claim was partially absorbed by other cities and public agencies who participate in the liability risk sharing pool. However, as these types of large settlements occur with greater and greater frequency—and they are—the entire risk pool is rapidly drawing down reserves and was forced to increase member rates by 30% in 2026 alone.
Case Study 2 — Barrios v. City of Commerce
What Happened?
A driver turning from a side street was struck by a speeding van and suffered a permanent traumatic brain injury. The van driver's employer paid its $1 million auto insurance policy limit and was dismissed from the case.
The Claim
The City allowing curbside parked cars created a dangerous condition. California law already requires drivers to proceed carefully when parked cars limit visibility— and there was no evidence the plaintiff did.
Damages Alleged ~$35 million in economic damages ($50M total demand) At Fault Driver Paid $1 million (policy limit) — then dismissed City Settled and
Taxpayers Paid $18 million
Why the City Settled:
The City had the law on its side, but under joint and several liability, a 1% fault finding meant paying the full ~$35 million. The risk of trial was simply too large to take.
In Budget Terms:
$18M ≈ 22% of the City's annual General Fund ($80M) — or about four years of the City's library budget.
MEMORANDUM
To: California local government agencies
From: Margaret Finlay, President, California Joint Powers Insurance Authority Date: May 10, 2026
RE: Sample Letter of Support – Action Requested
As local governments face a growing liability crisis that diverts taxpayer dollars from essential services, the California JPIA has formed the Coalition to Protect Community Services to advance practical policy solutions. We are seeking your support and request a signed letter by July 4th.
Your jurisdiction’s support will help build the foundation of this Coalition and demonstrate to statewide local government associations and the Legislature that California’s cities and special districts are united on these issues.
Instructions
1. Review the attached sample letter outlining the Coalition's principles.
2. Customize it on your letterhead, replacing bracketed placeholders with your information.
3. Email a signed PDF to [email protected]. Letters will be accepted through the summer.
What Happens Next
Letters will be held by the Coalition and used to demonstrate local government support as we engage with statewide associations and policymakers. Your jurisdiction will be notified before any letter is shared publicly.
Questions? Please contact Tim Townsend on our lobbying team at [email protected].
[CITY / SPECIAL DISTRICT LETTERHEAD]
[DATE]
California Joint Powers Insurance Authority
8081 Moody Street
La Palma, CA 90623
RE: Coalition to Protect Community Services – Statement of Support Dear California Joint Powers Insurance Authority Board of Directors:
On behalf of the [City / District] of [NAME], we write to express our strong support for the Coalition to Protect Community Services and its efforts to keep local taxpayer dollars available for the essential services our residents depend on.
Local governments across California are facing a growing liability crisis. Large claims against local agencies—arising from public roadways, public property, and routine government services—have increased sharply, and the rising costs are unsustainable. According to an analysis of claims data from 1,979 local government agencies conducted by the California Association of Joint Powers Authorities, claims exceeding $1 million increased 67% between 2015 and 2022. Insurance premiums rose from $115 million in 2016 to $541 million in 2025—an increase of 370%. Every dollar consumed by excessive liability judgments and settlements is a dollar taken away from parks, libraries, public safety, road maintenance, senior services and youth programs.
Individuals who sustain legitimate injuries resulting from local government negligence deserve fair compensation. We are fully committed to that obligation. But balanced reforms are needed to ensure that compensation reflects true harm and proportionate responsibility—which serves the interests of both injured parties and the communities who rely on public services.
As you work to address this issue, we encourage you to consider the following principles:
Proportionality
Each party responsible for harm should bear liability in proportion to their actual share of fault— not based on which defendant happens to have the deepest pocket. Local government agencies should not be forced to subsidize damages caused by drunk drivers, uninsured motorists, careless contractors, or criminal actors who bear primary responsibility. An equitable system ensures that responsibility follows conduct, and that no single party is unfairly targeted simply because they have the ability to pay.
Accountability
Local governments must remain fully responsible for their own negligence. Sound reforms should preserve that accountability—not create blanket immunity, and not prevent injured parties from recovering the share of damages attributable to a local agency.
Stewardship of Taxpayer Dollars
Public funds are a public trust. Policy solutions should protect taxpayer dollars for their intended public purposes, and prevent local agencies from being used as a backstop for the liabilities of others. Durable, forward-looking reforms are needed to protect the long-term sustainability of local government services—the current trajectory of claim costs and insurance premiums is not sustainable.
We stand ready to support the Coalition and build the kind of just liability system our communities deserve.
Thank you for your consideration. Please contact [NAME, TITLE] at [PHONE] or [EMAIL] if we can provide additional information.
Sincerely,
[NAME]
[TITLE]
[City / District of NAME]
Town Council Agenda Report
Date: June 9, 2026
To: Honorable Mayor and Town Council
Subject: ADOPTION RESOLUTION NO. 2026-17 ESTABLISHING THE FISCAL YEAR 2026-27 APPROPRIATION LIMIT
From: Guy Eisenbrey, Town Manager
Submitted by: Suresh Malkani, Director of Finance
Finance Department
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
Adopt Resolution No. 2026-17 of the Town Council of the Town of Apple Valley, California, establishing the Fiscal Year 2026-27 Appropriations Limit for the Town at $54,854,420 by using the Town’s population growth for the population adjustment and the California per capita income growth for the inflationary adjustment.
BACKGROUND
Since the addition of Article XIII-B to the Constitution of California in November 1979, the Town has been required to annually establish an Appropriations Limit. The ideology behind establishing an annual appropriation limit is that if an agency’s ability to spend tax proceeds each year is controlled, then the growth in tax revenues can be systematically and incrementally managed to lessen the impact or tax burden upon taxpayers throughout the State. In June 1990, Article XIII-B and its implementing legislation Chapter 1205/80 were modified by Proposition 111 and SB 88. The modifications changed the annual adjustment factors for determining the Appropriations Limit. Beginning with the calculation of the Appropriations Limit for Fiscal Year 1990- 1991, the Town may choose one of the following factors to use for inflationary adjustment:
The growth in California per capita income; or
The growth in the non-residential assessed valuation due to new construction within the Town.
In addition, the Town may choose to use either the population growth of the Town or the population growth within the County. These two adjustment factors, one for inflation and one for population, are both annual elections for the Town in determining its
Appropriations Limit.
ANALYSIS
The methodology used to determine the Town’s Appropriations Limit is to multiply the inflation and population adjustment factors by the prior year’s Appropriations Limit. For Fiscal Year 2026-27, the inflation and population figures provided by the State Department of Finance are as follows: California Per Capita Income Percentage Change
4.95% Town of Apple Valley’s Population Growth -0.53% Since the growth in nonresidential assessed valuation due to new construction is not available at this time, the growth in California Per Capita Income must be used as the inflationary factor. The Town’s Appropriations Limit for Fiscal Year 2026-27 is calculated at $54,854,420. This amount is the result of applying the 4.95% California per capita personal income factor and the -0.53% Town of Apple Valley population growth factor to the Fiscal Year 2025- 26 adopted Appropriations Limit of $54,830,187. The total estimated revenues generated from general tax proceeds for Fiscal Year 2026-27 is $39,048,022. This estimate is $15,806,398 or 28.82% below the proposed Appropriations Limit for Fiscal Year 2026-27.
FISCAL IMPACT
The Town’s total estimated revenue from general tax proceeds is $39,048,022 or
28.82% below the proposed Fiscal Year 2026-27 Appropriations Limit. Therefore, the Town is well within its Appropriations Limit established pursuant to Section 7910 of the Government Code of the State of California and will not exceed this limit during Fiscal Year 2026-27.
ATTACHMENTS
A. Resolution No. 2026-17
RESOLUTION NO. 2026-17
A RESOLUTION OF THE TOWN COUNCIL OF THE
TOWN OF APPLE VALLEY, CALIFORNIA,
ESTABLISHING THE FISCAL YEAR 2026-27
APPROPRIATION LIMIT FOR THE TOWN OF APPLE
VALLEY
WHEREAS, Article XIIIB of the California Constitution and Section 7910 of the California Government Code require that each year the Town of Apple Valley shall, by resolution, establish an appropriations limit for the Town for the following fiscal year; and WHEREAS, the Director of Finance of the Town has heretofore prepared and submitted data and documentation required for and to be used in the determination of an appropriations limit for the Town for Fiscal Year 2026-27 and such data and documentation has been available to the public for at least fifteen (15) days prior to adoption of this Resolution; and
WHEREAS, the Town of Apple Valley established its Fiscal Year 2025-26 Appropriation Limit of $54,830,187 (Fifty Four Million, Eight Hundred Thirty Thousand, One Hundred Eighty Seven Dollars); and
WHEREAS, to the best of the Town's knowledge and belief the State Department of Finance figures reflect the following statistics relevant to the calculation of the Fiscal Year 2026-27 Appropriation Limit:
Per Capita Personal Income Change for Fiscal Year 2026-27: 4.95% Population Adjustment - January 1, 2026: -0.53%
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY AS FOLLOWS:
Section 1. Based on the foregoing figures and the provisions of Article XIIIB of the Constitution of the State of California, the following figure accurately represents the Fiscal Year 2026-27 Appropriation Limit of the Town of Apple Valley to be $54,854,420 (and said sum is hereby determined and established as the appropriation limit for the Town of Apple Valley for Fiscal Year 2026-27).
Section 2. The Town Clerk shall certify to the passage of the Resolution
TC RESOLUTION 2026-17
APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 9th day of June 2026.
__________________________
Scott Nassif, Mayor
ATTEST:
_________________________
Hannah Raleigh, Deputy Town Clerk
Town Council Agenda Report
Date: June 9, 2026
To: Honorable Mayor and Town Council
Subject: A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF APPLE
VALLEY, CALIFORNIA, APPROVING BUDGET APPROPRIATIONS
AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT
BUDGET FOR ALL FUNDS FOR FISCAL YEAR 2026-27
From: Guy Eisenbrey, Town Manager
Submitted by: Suresh Malkani, Director of Finance
Finance Department
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
Adopt Resolution No. 2026-18 of the Town Council of the Town of Apple Valley, California, approving budget appropriation and adopting the budget, including the operating and capital improvement budget for all funds for Fiscal Year 2026-2027.
SUMMARY
The attached budget adoption resolution includes all revenue projections, fund, and departmental appropriations included in the Fiscal Year 2026-27 Proposed Budget.
Adoption of the attached Resolution No. 2026-18 will approve the Fiscal Year 2026-27 Operating and Capital Improvement Budget for all funds with budgetary activity.
ANALYSIS
The proposed Fiscal Year (FY) 2026–27 budget reflects continued structural cost pressures, particularly within public safety, as well as the Town’s ongoing commitment to maintaining service levels and advancing critical capital improvement projects.
Additional resources were identified through the passage of Measure P in the last quarter of FY 2024–25, with FY 2025–26 representing the first full fiscal year in which Measure P revenues were received across all four quarters. Measure P was intended to provide new funding to support public safety, community services, and roads. Since its implementation, Measure P has generated approximately $11 million in annual revenues, which have been primarily, if not entirely, allocated toward enhanced law enforcement service levels through the Town’s contract with the Sheriff’s Department.
Specifically, Measure P revenues have supported:
The addition of one (1) Sergeant, eight (8) Deputies, and one (1) Sheriff Service Specialist, including the procurement of necessary vehicles and equipment; Increased contractual obligations under the Memorandum of Understanding (MOU), including upward adjustments to personnel salaries and retirement costs; and
Annual contract cost escalations exceeding standard Consumer Price Index (CPI) assumptions, driven largely by rising liability exposure, insurance premiums, and broader risk management costs associated with law enforcement services.
Notably, the Town experienced an approximate $4 million increase in Sheriff contract costs between FY 2024–25 and FY 2025–26, underscoring the accelerating cost trajectory associated with maintaining current service levels.
While the general tax measure has been instrumental in sustaining enhanced public safety services, these cost drivers have materially outpaced initial projections and continue to exert upward pressure on the Town’s General Fund and long-term financial outlook.
This budget reflects the adjustments necessary to ensure sustainability in the short term, and reaffirm existing priorities that may be warranted moving forward.
The proposed budget for all Town-wide Funds is summarized in the following table:
PROPOSED APPROPRIATION BUDGET – ALL FUNDS
Appropriations Proposed
FY 2026-27
Amended
FY 2025-26
Increase
(Decrease)
Percent
Change
Operating and Capital
Budget
136,991,859 142,180,584 (5,188,725) (4%)
The total proposed appropriation for all funds for Fiscal Year (FY) 2026–27 is $136,991,859 representing a roughly 4% decrease from FY 2025–26’s adopted operating budget of $142,180,584. The decrease is primarily due to the expected expenditure for some of the ongoing capital project. Inflationary factors continue impacting the cost of living and operating costs to the Town.
Major capital projects included in the proposed FY 2026–27 Capital Budget consist of irrigation improvements and HVAC system upgrades at the James Woody Community Center. These investments are intended to maintain and enhance Town infrastructure and facilities while supporting operational efficiency and continued service delivery to the community.
The total proposed General Fund budget for FY 2026–27 is $51,112,595 representing an increase of $629,103 compared to the revised FY 2025–26 budget. This increase is
primarily attributable to additional public safety personnel costs associated with the Town’s contract with the San Bernardino County Sheriff’s Department. Increased public safety expenditures, combined with the recognition of prior-year funding shortfalls and continued inflationary pressures, contribute to the overall increase in the proposed budget.
As presented, the proposed General Fund budget for FY 2026–27 is projected to increase fund balance by $335,673 during the fiscal year. At the May 25, 2026, Town Council meeting, staff presented the FY 2026–27 budget workshop, which included a revised General Fund budget reflecting an estimated additional expenditure associated primarily with increased Police Department-related costs.
The following table provides a summary of the total resources and requirements for the proposed FY 2026–27 General Fund budget:
General Fund Amended
Budget FY
2025-26
Proposed
Budget FY
2026-27
Increase
(Decrease)
Percent
Change
Revenues 50,896,201 51,448,268 552,067 1%
Expenditures 50,483,492 51,112,595 629,103 1%
Budgeted Impact to Fund
Balance Surplus/(Deficit)
412,709 335,673
The proposed Fiscal Year (FY) 2026–27 budget reflects continued improvements in budget format and budget-balancing methodologies compared to prior budget submissions presented to the Town Council. Staff have continued efforts to enhance the transparency, clarity, and overall understandability of the budget document.
These improvements are intended to strengthen transparency in the budget development process and provide the Town Council and community with a clearer understanding of the Town’s financial priorities and spending plan for the upcoming fiscal year.
FISCAL IMPACT
Adoption of the attached resolution will approve the revenue and appropriation estimates, providing sufficient funding in the amount of $128,734,679 to support anticipated expenditures across all budgeted funds for Fiscal Year (FY) 2026–27.
ATTACHMENTS
Resolution No. 2026-18
RESOLUTION NO. 2026-18
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF APPLE VALLEY, CALIFORNIA APPROVING A
BUDGET APPROPRIATION AND ADOPTING THE
BUDGET, INCLUDING THE OPERATING AND CAPITAL
IMPROVEMENT BUDGET FOR FISCAL YEAR 2026-27
WHEREAS, the Town has been notified of funding for Capital Projects by the State and by San Bernardino Council of Governments, the following represents current funding levels and adjustments as necessary, and
WHEREAS, the Town Manager have heretofore submitted to the Town Council a proposed budget for the Town for Fiscal Year 2026-27, as the same may have been revised by the Town Council, a copy of which is attached, and copies of which are in the possession of and in the office of the Town Clerk and the Director of Finance; and WHEREAS, the said proposed budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the Town; and
WHEREAS, the appropriations limit for the Town for Fiscal Year 2026-27 $54,854,420 (Fifty Four Million, Eight Fifty Four Thousand, Four Hundred Twenty Dollars), and the total annual tax revenues subject to such limitation for Fiscal Year 2026- 27 are estimated to be $39,048,022; and
WHEREAS, the Town Council has made such revisions to the proposed budget as appears to be desirable; and
WHEREAS, the proposed budget, as herein approved, will enable the Town Council to make adequate financial plans and will ensure that Town officers can administer their respective functions in accordance with such plans,
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF APPLE VALLEY AS FOLLOWS:
SECTION 1: That the appropriation-expenditure budgeting system is hereby adopted. The system consists of:
A. Present Personnel Policies and Procedures, including salary schedules and benefits, except as hereinafter changed by resolution or ordinance of the Town Council.
B. An appropriation-expenditure system which will show budgetary categories by department.
C. The system mentioned above will apply to Operating and Capital Improvement Budget expenditures as intended for use in Fiscal Year 2026-
27.
TC RESOLUTION 2026-18
D. The Town Manager is authorized to transfer Operating Budget Appropriation Balances between functions and/or programs when he deems it necessary to do so.
E. Budget system assumes existing service levels; Council approval will be required for any significant changes involving increased or decreased service levels.
F. The Director of Finance shall be responsible for constant monitoring of the budget and shall establish and implement appropriate control mechanisms necessary for said purpose, after approval of the Town Manager.
G. A monthly report shall be prepared by each department and/or project indicating any changes in service levels and the progress each entity has achieved or failed to achieve and the reasons for said status, if they have not obtained results. Each manager shall be accountable for achieving results of his/her organization unit based upon the objectives set for each unit by the Town Manager and Town Council and shall be evaluated as to their performance in an annual performance appraisal conducted by the Town Manager.
H. A deflator procedure, to be administered by the Town Manager, is hereby established for reducing appropriations in the event that projected revenues are reduced due to a reduction in the State subventions or other revenues that may fluctuate downward due to changes in economic conditions. For Fiscal Year 2026- 27, the amount of Total Operating and Capital Budget Appropriation shall be reduced, as determined by the Town Manager based on his assessment of total Town needs.
I. A monthly status report will be available upon request for the Town Council reflecting budget, year-to-date expenditures, and percentage used by each department and fund of the Town.
SECTION 2: The proposed budget for the Town of Apple Valley for the Fiscal Page 204 of 206 TC RESOLUTION 2026-18
Year 2026- 27 is hereby approved and adopted, and the amounts of proposed expenditures as specified are appropriated for the budget programs and units as herein specified.
A. The 2026- 27 Operating and Capital Improvement Budget programs are hereby adopted, establishing the following expenditure levels:
1001 General Government 543,932
1001 Town Council 332,490
1001 Town Manager 387,852
1001 Town Attorney 700,000
1001 PIO 498,434
1001 Town Clerk 1,039,648
1001 Risk Management 1,496,000
1001 Disaster Services 45,000
1001 Finance 1,321,226
1001 Human Resources 642,531
1001 Information Technologies 2,817,946
1001 Police 25,944,575
1001 Animal Control 1,280,557
1001 Animal Services 2,000,579
1001 Building and Safety 1,003,507
1001 Economic Development 190,214
1001 Engineering 873,622
1001 Planning 1,688,164
1001 Code Enforcement 755,527
1001 Grounds Maintenance 2,585,256
1001 Recreation 244,255
1001 Facilities 1,835,127
1001 Recreation Programs 2,183,342
1001 Aquatics 702,811
2010 Gas Tax 3,205,224
2011 RMRA 2,130,119
2013 Art. 3 744,000
2021 Meas. I 2,369,261
2120 CDBG 1,580,018
2320 AV HOME 1,241,774
2330 VVHOME 2,428,033
2350 HOME ARP 220,000
2410 CAL HOME 315,000
2530 PEG 190,000
2810 LL Dist 570,000
4050 NAVISP -
4410 TIF -
4770 Wastewater DIF 49,000
5010 Wastewater 9,560,275
5510 Solid Waste 17,914,279
5710 Golf 2,046,265
5810 AVCE 40,615,533
5910 Singh Center 700,482
TOTAL EXPENDITURE BUDGET 136,991,859
TC RESOLUTION 2026-18
B. The Operating and Capital Budget Revenues are hereby adopted establishing a revenue base by which the Town expenditures will be measured:
SECTION 3: Pursuant to Section 53901 of the California Government Code, within 60 days after the adoption hereof, the Town Clerk shall file a copy of this resolution with the Auditor of the County of San Bernardino.
APPROVED and ADOPTED by the Town Council of the Town of Apple Valley this 9th day of June, 2026.
Scott Nassif, Mayor
ATTEST:
Hannah Raleigh, Deputy Town Clerk
1001 General Fund 51,448,268
2010 Gas Tax 2,158,073
2011 RMRA 1,998,874
2013 Art. 3 744,000
2021 Meas. I 2,813,000
2120 CDBG 1,580,018
2320 AV HOME 1,241,774
2330 VVHOME 2,428,033
2520 Quimby 250,000
2530 PEG 140,000
2810 LL Dist 265,000
4410 TIF 1,000,000
4770 Wastewater DIF 100,000
5010 Wastewater 6,771,000
5510 Solid Waste 15,666,000
5710 Golf 2,046,265
5810 AVCE 37,383,502
5910 Singh Center 700,872
TOTAL REVENUE BUDGET 128,734,679