Agenda packet, regular meeting, third session — Banning City Council, October 22, 2024 (part 3 of 3)

Service Name Fee Description Current Fee Proposed Fee
Simultaneous Pluming Permit Fee
When included
with Building
Permit Fee
Trade Permit Fixture
Count Fees Below
10% of Building Plan
Review Fee if not
specified

STANDARD PLAN REVIEW AND PERMIT FEES
Accessibility Ramp Valuation $527.00
Accessory Structures-Residential
Aluminum Patio Cover (Standard Approved Plan) Fixed Valuation $208.00 Deck - Non-Standard - Plan Review 65% of Permit Fee $126.00 Deck - Non-Standard - Permit Fixed Valuation $312.00
Patio Cover - City Standard Fixed Valuation $312.00
Patio Cover - Non-Standard - Plan Review 65% of Permit Fee $126.00 Patio Cover - Non-Standard - Permit Fixed Valuation $312.00 Block Wall
Standard up to 6' Height <6' City Standard Valuation $178.00 Each Additional 100 LF over 50 LF Valuation $30.00
Non-Standard up to 6' Height <6' height - Plan Review 65% of Permit Fee $189.00 Each Additional 100 LF over 50 LF - Plan Review 65% of Permit Fee $3.00 Non-Standard up to 6' Height <6' height - Permit Valuation $268.00 Each Additional 100 LF over 50 LF - Permit Valuation $44.00 Non-Standard <50' and Greater than 6' height - Plan Review 65% of Permit Fee $252.00 Each Additional 100 LF over 50 LF - Plan Review 65% of Permit Fee $3.00 Non-Standard <50' and Greater than 6' height - Permit Valuation $447.00 Each Additional 100 LF over 50 LF - Permit Valuation $44.00 Retaining Wall
Standard up to 6' Height <6' City Standard - Plan Review 65% of Permit Fee $32.00 Each Additional 100 LF over 50 LF - Plan Review 65% of Permit Fee $3.00 Standard up to 6' Height <6' City Standard - Permit Valuation $446.00 Each Additional 100 LF over 50 LF - Permit Valuation $44.00 Non-Standard up to 6' Height <6' - Plan Review 65% of Permit Fee $252.00 Each Additional 100 LF over 50 LF - Plan Review 65% of Permit Fee $3.00 Non-Standard up to 6' Height <6' - Permit Valuation $447.00 Each Additional 100 LF over 50 LF - Permit Valuation $44.00 Non-Standard <50' and greater than 6' height - Plan Review 65% of Permit Fee $315.00 Each Additional 100 LF over 50 LF - Plan Review 65% of Permit Fee $4.00 Non-Standard <50' and greater than 6' height - Permit Valuation $535.00 Each Additional 100 LF over 50 LF - Permit Valuation $44.00 Cellular Antenna/Pole
New - Plan Review 65% of Permit Fee $284.00
New - Permit Valuation $446.00
Modification - Plan Review 65% of Permit Fee $63.00
Modification - Permit Valuation $372.00
Construction Trailer - Plan Review 65% of Permit Fee $63.00 Construction Trailer - Permit Valuation $223.00
Demolition
Patio Cover or Room Fixed Fee $51.65 $178.00
Swimming Pool or Building Fixed Fee $51.65 $268.00
New Door/Window/Skylight - Residential - Plan Review 65% of Permit Fee $126.00 New Door/Window/Skylight - Residential - Permit Valuation $491.00 Drywall Repair - Up To 1,000 SF - Permit Valuation $312.00 Each Additional 1,000 SF - Permit Valuation $15.00
Flag Pole
Up To 25' - Plan Review 65% of Permit Fee $126.00
Up To 25' - Permit Valuation $357.00
Over 25' - Plan Review 65% of Permit Fee $189.00
Over 25' - Permit Valuation $491.00
Food Truck or Carnival Valuation $223.00
Hood & Duct - Plan Review 65% of Permit Fee $252.00
Hood & Duct - Permit Valuation $1,213.00
Model Home Complex with Sales Office Conversion - Plan Review 65% of Permit Fee $221.00 Model Home Complex with Sales Office Conversion - Permit Valuation $1,026.00 Parking Lot Restriping - 1-2 Accessible Stalls - Plan Review 65% of Permit Fee $63.00 Each Additional Stall over 2 - Plan Review 65% of Permit Fee $11.00 Parking Lot Restriping - 1-2 Accessible Stalls - Permit Valuation $178.00 Each Additional Stall over 2 - Permit Valuation $13.00
Re-Roof
Single Family Dwelling Valuation $208.00

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Service Name Fee Description Current Fee Proposed Fee
Multi-Family/Commercial/Industrial - Up to 25,000 SQ or 250 Squares Valuation $268.00 Each Additional 25,000 SF or 250 Squares Valuation $44.00 Siding or Stucco Repair - Plan Review 65% of Permit Fee $63.00 Siding or Stucco Repair - Permit Valuation $447.00
Signs
Monument Sign - Plan Review 65% of Permit Fee $158.00
Monument Sign - Permit Valuation $446.00
Site Signage - Plan Review 65% of Permit Fee $252.00
Site Signage - Permit Valuation $579.00
Wall Sign - Plan Review 65% of Permit Fee $126.00
Wall Sign - Permit Valuation $178.00
Spray Booth - Plan Review 65% of Permit Fee $599.00
Spray Booth - Permit Valuation $535.00
Storage Rack - First 500 LF - Plan Review 65% of Permit Fee $126.00 Each Additional 500 LF - Plan Review 65% of Permit Fee $11.00 Storage Rack - First 500 LF - Permit Valuation $223.00
Each Additional 500 LF - Permit Valuation $29.00
Swimming Pool
Residential - Plan Review 65% of Permit Fee $95.00
Residential - Permit Valuation $535.00
Multi-Family/Commercial - Plan Review 65% of Permit Fee $378.00 Multi-Family/Commercial - Permit Valuation $1,606.00
Temporary Uses (e.g. Christmas Tree Lot/Pumpkin Lot/Similar Events) - Plan Review 65% of Permit Fee $126.00
Temporary Uses (e.g. Christmas Tree Lot/Pumpkin Lot/Similar Events) - Permit Valuation $312.00
Trash Enclosure - Plan Review 65% of Permit Fee $189.00 Trash Enclosure - Permit Valuation $579.00
Wall Addition
Interior Commercial - Plan Review 65% of Permit Fee $315.00 Interior Commercial - Permit Valuation $1,641.00
Interior Residential - Plan Review 65% of Permit Fee $252.00 Interior Residential - Permit Valuation $892.00
Window Changeout - Plan Review 65% of Permit Fee $63.00 Window Changeout - Permit Valuation $178.00
NEW CONSTRUCTION PERMIT FEES CALCULATED BY VALUE*:

VALUATION Base Fee Rate Per Unit
$0 to $1999 $190.00 $321.00
$2000-$20,000 $190.00 $21.08 per $1,000 $321.00 + $93 per $1,000 over $2k $20,001-$50,000 $580.00 $17.83 per $1,000 $1,995.00 + $18 per $1,000 over $20k $50,001-$75,000 $1,115.00 $11.68 per $1,000 $2,535.00 + $26 per $1,000 over $50k $75,001-$100,000 $1,407.00 $11.84 per $1,000 $3,185.00 + $32 per $1,000 over $75k 100,001 to 500,000 $1,703.00 $9.08 per $1,000 $3,985.00 + $5 per $1,000 over $100k $500,001 to $1,000,000 $5,333.00 $6.97 per $1,000 $5,985.00 + $5 per $1,000 over $500k $1,000,001 and up $8,018.00 $4.00 per $1,000 $8,485.00 + $5 per $1,000 over $1M NEW RESIDENTIAL HOMES, ADUs AND ROOM ADDITIONS PERMIT FEES SQUARE FEET Base Fee Rate Per Sq. Ft.
1-499 2367.41 $1,611.00
500-999 2367.41 $1,669.00 + $58 per 100 SF over 500 SF
1000-2499 2367.41 $1,959.00 + $12 per 100 SF over 1k SF 2500 and over 2367.41 $2,139.00 + $12 per 100 SF over 2.5K SF

ELECTRICAL PLAN REVIEW AND PERMITS
Electrical Permit Processing Fee - Residential Fixed Fee $161.13 $63.00 Minimum Electrical Permit Fee-Residential with fixture counts Fixed Fee $161.13 $156.00 Electrical Permit Processing Fee - Commercial Fixed Fee $161.13 $84.00 Minimum Electrical Permit Fee-Commercial with fixture counts Fixed Fee $161.13 $156.00 Processing fee simultaneously with other MEP permit Fixed Fee $161.13 $21.00 Electrical Only Plan Review Fee valuation
65% of Electrical
Permit Fee

ELECTRICAL FIXED FEES
Electrical Panel/Pedestal or Sub-Panel Max 200 amp Fixed Fee $211.00 $134.00 Electrical Meter Reset Permit no fee $134.00
EV Charger Plug-Residential Plan Review $132.00 $63.00
EV Charger Plug-Residential Permit $182.00 $223.00
EV Charging Station - Commercial Plan Review 60% of permit fee $189.00

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Service Name Fee Description Current Fee Proposed Fee
EV Charging Station each additional charger at same location 60% of permit fee $10.00 EV Charging Station - Commercial Permit valuation $268.00 EV Charging Station each additional charger at same location valuation $14.00 Generator 10 KW or less Plan Review $264.00 $63.00
Generator 10 KW or less Permit $883.00 $178.00
Generator over 10 KW Plan Review $264.00 $95.00
Generator over 10 KW Permit $553.00 $223.00
Solar
Residential Roof Mounted Solar Less Than 15 KW Plan Review 175 $136.00 Each additional 15 KW 0 $7.50
Residential Roof Mounted Solar Less Than 15 KW Permit 275 $240.00 Each additional 15 KW 300+15 per kw $7.50
Commercial Roof Mounted Solar Less than 50 KW Plan Review 500 $222.00 Commercial Roof Mounted Solar 51-250 KW Plan Review each KW 500+$7/kw $3.50 Commercial Roof Mounted Solar 251+ KW Plan Review each KW 1200 $2.50 Commercial Roof Mounted Solar Less than 50 KW Permit 500 $772.00 Commercial Roof Mounted Solar 51-250 KW Permit each KW 500+$7/kw $3.50 Commercial Roof Mounted Solar 251+ KW Permit each KW 1200+$5/kw $2.50 Tract & Solar App - Residential Roof Mounted Solar Less Than 15 KW 450 $240.00 Each additional 15 KW 300+15 perkw $8.00
Residential Ground Mounted Solar Less Than 15 KW Plan Review 175 $204.00 Each additional 15 KW 0 $7.50
Residential Roof Mounted Solar Less Than 15 KW Permit 275 $385.00 Each additional 15 KW 300+15 per kw $7.50
Commercial Ground Mounted Solar Less than 50 KW Plan Review 500 $407.00 Commercial Ground Mounted Solar 51-250 KW Plan Review each KW 500+$7/kw $3.50 Commercial Ground Mounted Solar 251+ KW Plan Review each KW 1200 $2.50 Commercial Ground Mounted Solar Less than 50 KW Permit 500 $963.00 Commercial Ground Mounted Solar 51-250 KW Permit each KW 500+$7/kw $3.50 Commercial Ground Mounted Solar 251+ KW Permit each KW 1200+$5/kw $2.50 Battery Storage
1st Battery Plan Review $175.00 $95.00
Each Additional Battery $0.00 $ 32.00
1st Battery Permit $272.44 $357.00
Each Additional Battery $0.00 $44.00
Battery Storage with Solar Installation Plan Review
None, only pay solar
fee. $126.00
Battery Storage with Solar Installation Permit
None, only pay solar
fee. $44.00
Temporary Electrical Prior to Final $692.00 $223.00
Temporary Power Poles - Plan Review $63.00
Temporary Power Poles - Permit $522.00 $223.00
Each Span Pole Included above $14.00
ELECTRICAL FIXTURE COUNTS To be used only when flat or valuation fee is not applicable.

Receptacles, Switches, Fixtures and Outlets
Each receptacle, switch, fixture, or outlet, lights $3.10 $5.00 Residential Appliance-For fixed residential appliances or receptacle outlets for same, including wall-mounted electric ovens; countermounted cooking tops; electric ranges; self-contained room, console or through-wall air conditions; space heater; food waste grinders; dishwashers; washing machines; water heaters; clothes dryers; or other motor-operated appliances not exceeding 1 horsepower (HP) Fixed Fee $15.49 $7.00 Non-Residential Appliance-For nonresidential appliances and selfcontained factory-wired, nonresidential appliances not exceeding 1 horsepower (HP), kilowatt (kW) or kilovolt-ampere (kVA) in rating, including medical and dental devices; food, beverage and ice cream cabinets; illuminated show cases; drinking fountains; vending machines; laundry machines; or other similar types of equipment. Fixed Fee $15.49 $7.00 Power Apparatus
Power Apparatus: Up To 1 HP, kW, Or kVA $15.49 $7.00
Power Apparatus: 1- 10 HP, kW, Or kVA $42.35 $24.00
Power Apparatus: 11 - 50 HP, kW, Or kVA $56.81 $36.00
Power Apparatus: 50 - 100 HP, kW, Or kVA $101.22 $71.00 Power Apparatus: > 100 HP, kW, Or kVA $101.22 $107.00
Busway and Trolley
Busway - Plug-In Type - Each 100 LF $0.00 $7.00
Trolley - Each 100 LF $0.00 $7.00

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Service Name Fee Description Current Fee Proposed Fee
Signs, Outline Lighting and Marquees
For signs, outline lighting systems or marquees supplied from one branch circuit Valuation $36.00 For additional branch circuits within the same sign, outline lighting system or marquee Valuation $7.00
Services (Service Change)
Service Entrance - 600V or <200A Fixed Fee $56.81 $36.00 Service Entrance - 600V or <1000A Fixed Fee $83.66 $71.00 Service Entrance - 600V or >1000A Fixed Fee $138.41 $107.00 Temporary Power Service
Temporary Pedestal $42.35 $36.00
Temporary Distribution System $42.35 $12.00
Temporary Lighting $42.35 $12.00
Carnival or Circus
Generator $0.00 $24.00
Generator and Electrically Driven Ride $0.00 $24.00
Other Rides or Displays with Electrical Lighting $0.00 $7.00 System of Area and Booth Lighting $0.00 $7.00
Motors
Motor 1HP or Less Fixed Fee $15.49 $16.00
Motor 1HP < 10 HP Fixed Fee $42.35 $43.00
Motor 10HP <50 HP Fixed Fee $56.81 $58.00
Motor 50 HP <100 HP Fixed Fee $101.22 $102.00
Motor 100 HP and Up Fixed Fee $101.22 $102.00

PLUMBING PLAN REVIEW AND PERMITS
Plumbing Permit Processing Fee - Residential Fixed Fee $161.13 $63.00 Minimum Plumbing Permit Fee-Residential plus fixture counts Fixed Fee $161.13 $156.00 Plumbing Permit Processing Fee - Commercial Fixed Fee $161.13 $84.00 Minimum Plumbing Permit Fee-Commercial plus fixture counts Fixed Fee $161.13 $156.00 Processing fee simultaneously with other MEP permit Fixed Fee $161.13 $21.00 Plumbing Only Plan Review Fee Valuation
65% of Plumbing
Permit Fee

PLUMBING FIXED FEES
Gas Line - Plan Review Fixed Fee $132.00 $63.00
Gas Line - Permit $42.35 $208.00
Gas Re-Piping Valuation $208.00
Grease Interceptor - Plan Review Fixed Fee 65% of Permit Fee $105.00 Grease Interceptor - Permit Fixed Fee Valuation $384.00 Septic System - New or Replacement - Plan Review 65% of Permit Fee $126.00 Septic System - New or Replacement - Permit Valuation $491.00 Sewer Hook-up - Plan Review 65% of Permit Fee $63.00
Sewer Hook-up - Permit Valuation $268.00
Sewer Repair $197.00 $208.00
Temporary Gas Prior to Final $216.00 $223.00
Tub to Walk-in Shower - Plan Review Included below $63.00 Tub to Walk-in Shower - Permit $496.00 $357.00
Water Heater Fixed Fee $129.11 $89.00
Water Re-Piping Valuation $208.00
Water Heater - Tankless - Plan Review 65% of Permit Fee $63.00 Water Heater - Tankless - Permit Valuation $178.00
PLUMBING FIXTURE COUNTS To be used only when flat or valuation fee is not applicable.

Cesspool
For each private sewage disposal system, ex: septic tank Valuation $71.00 For each industrial waste pretreatment interceptor, including its trap and vent, excepting kitchen-type grease interceptors functioning as fixture traps $141.50 $36.00 Fixtures and Vents
For each plumbing fixture or trap or set of fixtures on one trap (including water, drainage piping and backflow protection thereof) $18.57 $12.00 For repair or alteration of drainage or vent piping $18.57 $5.00 Each Drain Piping, Drinking fountain, urinal, water piping, floor drain, washer (auto), laundry tray, kitchen sink, water closet, lavatory, shower, bat $18.59 h tub. $20.00 Gas Piping System
1-4 outlets - Per Outlet $42.35 $5.00
5 or More Outlets - Per Outlet $42.35 $3.00
House Sewer Fixed Fee $42.35 $45.00
Lawn Sprinkler, Vacuum Breaker, Backflow Protection Devices Lawn Sprinkler System on any one meter, including backflow protect Valuation $17.00 Each Backflow Protection Device 2 inches or smaller Valuation $17.00 Each Backflow Protection Device over 2 inches Valuation $36.00

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Service Name Fee Description Current Fee Proposed Fee
Miscellaneous $26.86 $17.00
Lateral Connection Fixed Fee $141.51 $143.00
Leach System Fixed Fee $59.91 $65.00
Sewers, Disposal Systems and Interceptors
For each residential building sewer and each trailer park sewer Valuation $36.00 Rainwater systems - per drain (inside building) Valuation $12.00 Sewage Disposal Fixed Fee $101.22 $103.00
Water Piping and Water Heater
For installation, alteration, or repair of water piping or water-treating equipment, or both $18.59 $5.00
For each water heater including vent $18.59 $17.00

MECHANICAL PLAN REVIEW AND PERMIT FEES
Mechanical Permit Processing Fee - Residential Fixed Fee $161.13 $63.00 Minimum Mechanical Permit Fee-Residential plus fixture counts Fixed Fee $161.13 $156.00 Mechanical Permit Processing Fee - Commercial Fixed Fee $161.13 $84.00 Minimum Mechanical Permit Fee-Commercial plus fixture counts Fixed Fee $161.13 $156.00 Processing fee simultaneously with other MEP permit Fixed Fee $161.13 $21.00 Mechanical Only Plan Review Fee Valuation
65% of Mechanical
Permit Fee

MECHANICAL FIXED PERMIT FEES
Furnace - Floor Fixed Fee $42.35 $89.00
Wall Heater Fixed Fee $42.35 $268.00
Fireplace Fixed Fee $28.92 $104.00
HVAC Change-Out - Commercial - First Unit $154.94 $223.00 HVAC Change-Out - Commercial - Each Additional Unit $0.00 $45.00 HVAC Change-Out - Residential $154.94 $134.00
MECHANICAL FIXTURE COUNTS To be used only when flat or valuation fee is not applicable.

Air Handling Unit
Up to 10,000 CFM Fixed Fee $28.92 $12.00
Over 10,000 CFM Fixed Fee $28.92 $24.00
Appliance Vent Fixed Fee $28.92 $7.00
For the installation, relocation or replacement of each appliance vent installed and not included in an appliance permit.

Boiler, Compressor, Absorption System
Up to 3 HP/100,000 btu/h $0.00 $17.00
Over 3 HP/ 100,000 btu/h $0.00 $29.00
Ductwork Fixed Fee $42.35 $43.00
Evaporative Cooler $0.00 $12.00
Forced Heating System Fixed Fee $42.35 $43.00
Furnace
Up to 100,000 btu/h $42.35 $17.00
Over 100,000 btu/h $42.35 $24.00
For the installation or relocation of each floor furnace, including vent. $42.35 $17.00 For the installation or relocation of each suspended heater, recessed wall heater or floor-mounted unit heater. $42.35 $17.00
Misc. Equipment Fixed Fee $28.92 $12.00
Repairs or Additions
For the repair of, alteration of, or addition to each heating appliance, refrigeration unit, cooling unit, absorption unit, or each heating, cooling, absorption or evaporative cooling system, including installation of controls regulated by the Mechanical Code. Valuation $17.00
Ventilation and Exhaust
For each ventilation fan connected to a single duct Each $15.49 $7.00 For each ventilation system which is not a portion of any heating or airconditioning system authorized by a permit Each $15.49 $12.00 For the installation of each hood which is served by mechanical exhaust, including the ducts for such hood. $15.49 $12.00

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Square Footage:
0 - 2,000 sq. ft. [5] 1.25 + 1.25 = 2.50 x $149.97 = $374.94 $188.00 $187.472,001 - 5,000 sq. ft. [5] 2.00 + 2.00 = 4.00 x $149.97 = $599.90 $299.95 $299.955,001 - 10,000 sq. ft. [5] 2.75 + 2.75 = 5.50 x $149.97 = $824.86 $413.00 $412.4310,001 - 25,000 sq. ft. [5] 3.50 + 3.50 = 7.00 x $149.97 = $1,049.82 $524.91 $524.9125,001 - 50,000 sq. ft. [5] 4.25 + 4.25 = 8.50 x $149.97 = $1,274.78 $638.00 $637.3950,001 or > to be charged by a sq. ft. multiplier [5] 5.00 + 5.00 = 10.00 x $149.97 = $1,499.74 $749.87 $749.87 Shell Buildings for all Commercial Uses - (The enclosure for all newly constructed or added space for non-residential occupancies classified as CBC Group A, B, E, F, I, M, S, or other commercial occupancies not specifically addressed elsewhere in this Fee Schedule where the interior is not completed or occupiable) Square Footage:
0 - 2,000 sq. ft. [5] 1.00 + 1.00 = 2.00 x $149.97 = $299.95 $149.97 $149.972,001 - 5,000 sq. ft. [5] 1.25 + 1.25 = 2.50 x $149.97 = $374.94 $188.00 $187.475,001 - 10,000 sq. ft. [5] 1.50 + 1.50 = 3.00 x $149.97 = $449.92 $224.96 $224.9610,001 - 25,000 sq. ft. [5] 2.00 + 2.00 = 4.00 x $149.97 = $599.90 $299.95 $299.9525,001 - 50,000 sq. ft. [5] 2.50 + 2.50 = 5.00 x $149.97 = $749.87 $374.94 $374.9450,001 or > to be charged by a sq. ft. multiplier [5] 3.00 + 3.00 = 6.00 x $149.97 = $899.84 $449.92 $449.92 Tenant Improvement - (Remodeled space for non-residential occupancies classified as CBC Group A, B, E, F, I, M, R, S, or other commercial occupancies not specifically addressed elsewhere.) Square Footage: [5]
0 - 2,000 sq. ft. [5] 1.00 + 1.00 = 2.00 x $149.97 = $299.95 $149.97 $149.972,001 - 5,000 sq. ft. [5] 1.25 + 1.25 = 2.50 x $149.97 = $374.94 $188.00 $187.475,001 - 10,000 sq. ft. [5] 1.50 + 1.50 = 3.00 x $149.97 = $449.92 $224.96 $224.9610,001 - 25,000 sq. ft. [5] 2.00 + 2.00 = 4.00 x $149.97 = $599.90 $299.95 $299.9525,001 - 50,000 sq. ft. [5] 2.50 + 2.50 = 5.00 x $149.97 = $749.87 $374.94 $374.9450,001 or > to be charged by a sq. ft. multiplier [5] 3.00 + 3.00 = 6.00 x $149.97 = $899.84 $449.92 $449.92 420
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Square Footage:
0 - 2,000 sq. ft. [5] 1.00 + 1.00 = 2.00 x $149.97 = $299.95 $149.97 $149.972,001 - 5,000 sq. ft. [5] 1.50 + 1.50 = 3.00 x $149.97 = $449.92 $224.96 $224.965,001 - 10,000 sq. ft. [5] 2.25 + 2.25 = 4.50 x $149.97 = $674.88 $338.00 $337.4410,001 - 25,000 sq. ft. [5] 3.00 + 3.00 = 6.00 x $149.97 = $899.84 $449.92 $449.9225,001 - 50,000 sq. ft. [5] 3.75 + 3.75 = 7.50 x $149.97 = $1,124.81 $563.00 $562.4050,001 or > to be charged by a sq. ft. multiplier [5] 4.50 + 4.50 = 9.00 x $149.97 = $1,349.77 $674.88 $674.88 $0.00 $0.00
Fuel Modification Plan 2.00 + 1.00 = 3.00 x $149.97 = $449.92 $299.95 $149.97Alternate methods and materials (4 hrs. min.) 4.00 + 0.00 = 4.00 x $149.97 = $599.90 $599.90 $0.003rd review and subsequent submittals (per hour) 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Work without Permit 1.00 + 1.00 = 2.00 x $149.97 = $299.95 $149.97 $149.97Misc./Over the Counter/ Revisions 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Construction Reinspection Fee 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97 TOTAL: NEW CONSTRUCTION, ADDITIONS, AND MAJOR REMODELS
Fire Sprinklers
New 13, 13R Fire Sprinkler System (base fee) [5,9] 3.50 + = 3.50 x $149.97 = $524.91 $524.91 $0.00 $518.52New 13, 13R Fire Sprinkler System (per sprinkler head) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50 $326.40New 13D Fire Sprinkler System (base fee) [5,9] 1.50 + = 1.50 x $149.97 = $224.96 $224.96 $0.00New 13D Fire Sprinkler System (per sprinkler head) (each separate plan type) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50TI 13, 13R Fire Sprinkler System (base fee) [5,9] 2.50 + = 2.50 x $149.97 = $374.94 $374.94 $0.00TI 13, 13R Fire Sprinkler System (per sprinkler head) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50TI 13D Fire Sprinkler System (base fee) [5,9] 1.25 + = 1.25 x $149.97 = $187.47 $187.47 $0.00TI 13D Fire Sprinkler System (per sprinkler head) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50 $0.00 $0.00
Alarms $0.00 $0.00
New Fire Alarm System (base fee) [5,9] 3.50 + = 3.50 x $149.97 = $524.91 $524.91 $0.00New Fire Alarm System (per initiating or notification device) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50TI Fire Alarm System (base fee) [5,9] 2.50 + = 2.50 x $149.97 = $374.94 $374.94 $0.00TI Fire Alarm System (per initiating or notification device) [5] + 0.05 = 0.05 x $149.97 = $7.50 $0.00 $7.50Monitoring Only 1.00 + 1.00 = 2.00 x $149.97 = $299.95 $149.97 $149.97 Water Systems $0.00 $0.00
Underground (per connection) [5,6,8] 1.50 + 2.00 = 3.50 x $149.97 = $524.91 $224.96 $299.95Fire Pump [5] 3.00 + 2.50 = 5.50 x $149.97 = $824.86 $449.92 $374.94Aboveground Temporary Tank 1.50 1.50 = 3.00 x $149.97 = $449.92 $224.96 $224.96Emergency Underground Repair 1.50 3.00 = 4.50 x $149.97 = $674.88 $224.96 $449.92Standpipes/Hose valves 1.50 2.00 = 3.50 x $149.97 = $524.91 $224.96 $299.95 421
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ACTIVITY SERVICE COST ANALYSIS
CITY OF BEAUMONTFIRECost Estimation for Providing Fee Related Activities and Services Description
Estimated
Average
Processing
& Plan
Check Time Per Activity
(hours)
Estimated
Average
Inspection
Time Per
Activity
(hours)
Estimated
Average
Total Time
Per
Activity
(hours)
Fully
Burdened
Hourly
Rate
Cost of
Service Per
Activity
Full Cost
Fire Plan
Check Fee
Full Cost
Fire
Inspection
Fee
Current
Fee
8081828384858687888990919293949596979899
100101102103104105106107108109110111112113114115116117118119120121122 Other Systems
Special Extinguishing System (e.g. FM-200, Halon, Dry Chem, Spray mist, inert gases) [5] 2.75 + 1.50 = 4.25 x $149.97 = $637.39 $412.43 $224.96Hood and Duct Extinguishing System [5] 1.50 + 1.50 = 3.00 x $149.97 = $449.92 $224.96 $224.96Special Equipment (Oven, Dust, and Battery, etc.) [5] 2.00 + 2.00 = 4.00 x $149.97 = $599.90 $299.95 $299.95Solar Photovoltaic Systems (Residential) [5,12] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Solar Photovoltaic Systems (Commercial) [5,12] 2.00 + 1.00 = 3.00 x $149.97 = $449.92 $299.95 $149.97Refrigeration System < 500 lb. [5] 3.00 + 1.50 = 4.50 x $149.97 = $674.88 $449.92 $224.96Refrigeration System ≥ 500 lb. [5,10] 5.00 + 3.00 = 8.00 x $149.97 = $1,199.79 $749.87 $449.92Spray Booth [5] 1.50 + 1.00 = 2.50 x $149.97 = $374.94 $224.96 $149.97Gas Systems (Med Gas, Industrial Gas, LPG) [5] 3.00 + 2.00 = 5.00 x $149.97 = $749.87 $449.92 $299.95Emergency Responder Radio Coverage [5] 4.00 + 4.00 = 8.00 x $149.97 = $1,199.79 $599.90 $599.90Generator/ Cell Site [5] 1.00 1.50 = 2.50 x $149.97 = $374.94 $149.97 $224.96 $0.00 $0.00
Haz-Mat
Chem Class < 10 Chemicals [5] 1.50 + 1.00 = 2.50 x $149.97 = $374.94 $224.96 $149.97Chem Class 10 - 25 Chemicals [5] 2.50 + 1.50 = 4.00 x $149.97 = $599.90 $374.94 $224.96Chem Class 26 - 100 Chemicals [5] 4.00 + 2.50 = 6.50 x $149.97 = $974.83 $599.90 $374.94Chem Class ≥100 Chemicals [5] 5.50 + 3.50 = 9.00 x $149.97 = $1,349.77 $824.86 $524.91 High Pile Storage
High Pile Storage up to 12,000 sq. ft. [5,9] 2.00 + 2.00 = 4.00 x $149.97 = $599.90 $299.95 $299.95High Pile Storage 12,001 - 50,000 sq. ft. [5,9] 4.00 + 4.00 = 8.00 x $149.97 = $1,199.79 $599.90 $599.90High Pile Storage 50,001 - 100,000 sq. ft. [5,9] 6.00 + 6.00 = 12.00 x $149.97 = $1,799.69 $899.84 $899.84High Pile Storage > 100,000 sq. ft. [5,9] 8.00 + 8.00 = 16.00 x $149.97 = $2,399.58 $1,199.79 $1,199.79 Access and Water Supply
Access and Water Supply only [5] 1.00 + 2.00 = 3.00 x $149.97 = $449.92 $149.97 $299.95 Tanks
Underground Storage Tanks (per tank) 2.25 0.75 = 3.00 x $149.97 = $449.92 $338.00 $112.48Aboveground Storage Tanks (per tank) 2.25 0.75 = 3.00 x $149.97 = $449.92 $338.00 $112.48Alterations to gas stations (no tank alterations) 1.50 1.00 = 2.50 x $149.97 = $374.94 $224.96 $149.97 Smoke Control
Smoke Control - Rationale Analysis and Plan Review 7.00 + 6.00 = 13.00 x $149.97 = $1,949.66 $1,049.82 $899.84 $0.00 $0.00

ANNUAL FIRE CODE PERMITS (CFC OPERATIONAL PERMITS)
Aerosol Products Level 2 & 3 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Open Flame and/ or Candles in Assembly Occupancies 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Carnivals and Fairs 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92Cellulose Nitrate 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Combustible Fibers 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97 422
760
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ACTIVITY SERVICE COST ANALYSIS
CITY OF BEAUMONTFIRECost Estimation for Providing Fee Related Activities and Services Description
Estimated
Average
Processing
& Plan
Check Time Per Activity
(hours)
Estimated
Average
Inspection
Time Per
Activity
(hours)
Estimated
Average
Total Time
Per
Activity
(hours)
Fully
Burdened
Hourly
Rate
Cost of
Service Per
Activity
Full Cost
Fire Plan
Check Fee
Full Cost
Fire
Inspection
Fee
Current
Fee
123124125126127128129130131132133134135136137138139140141142143144145146147148149150151152153154155156157158159160161162163164165 Combustible Materials 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Compressed Gases 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Cryogenic Fluids 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Dispensing of Flammable/Combustible liquids into a vehicle 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Dry Cleaning Plants 1-2 units 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99> 2 units 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96 Combustible Dust Producing & Operations 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Covered and Uncovered Mall Buildings 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96Explosives 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Fire Standby (per hour) 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Storage of Fireworks 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95Fireworks Display 0.00 + 6.00 = 6.00 x $149.97 = $899.84 $0.00 $899.84Flammable/Combustible Liquids Inside ≥60 Gal. 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Flammable/Combustible Liquids Inside <60 Gal. 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Flammable/Combustible Liquid Outside/Aboveground tank (per tank) 0.00 + 0.75 = 0.75 x $149.97 = $112.48 $0.00 $112.48Flammable/Combustible Liquid Underground Tanks (per tank) 0.00 + 0.75 = 0.75 x $149.97 = $112.48 $0.00 $112.48Hazardous Materials 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97High-Piled Combustible Stock <12,000 sq. ft. 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.9712,000 - 100,000 sq. ft. 0.00 + 2.50 = 2.50 x $149.97 = $374.94 $0.00 $374.94>100,000 sq. ft. 0.00 + 4.00 = 4.00 x $149.97 = $599.90 $0.00 $599.90 Hydrant/Control Valve Flow Test 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96Industrial Ovens/Drying 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Liquefied Petroleum Gases 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Liquid or Gas Filled Vehicles in Assemblies 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Miscellaneous Combustible Storage 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Motor Vehicle Repair 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Outside Storage of Tires 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Places of Assembly 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Pyrotechnical Special Effects 0.00 + 4.00 = 4.00 x $149.97 = $599.90 $0.00 $599.90Spray Booths/ DippingOperations 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Special Event w/ tents and/or canopies >400 sq. ft. 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96Special Event without tents and/or canopies 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Welding and Cutting 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Special Amusement Buildings 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96 Hazardous Production Materials 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Lumber yards and woodworking plants 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95Magnesium 0.00 + 0.50 = 0.50 x $149.97 = $74.99 $0.00 $74.99Refrigeration Equipment <500 lbs. 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97≥500 lbs. 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95 423
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234

A B C D E F G H I J K L M N O P Q R S

FIRE AND LIFE SAFETY INSPECTIONS
A-1 occupancies: Assembly uses, usually with fixed seating, intended for the production and viewing of performing arts or motion pictures <20,000 sq. ft.

0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96
A-1 occupancies: Assembly uses, usually with fixed seating, intended for the production and viewing of performing arts or motion pictures ≥20,000 sq. ft.

0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92
A-2 occupancies: Assembly uses intended for food and/or drink consumption with occupant load of 50-150 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97A-2 occupancies: Assembly uses intended for food and/or drink consumption with occupant load of more than 151 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96A-3 occupancies: Assembly uses intended for worship, recreation or amusement and other assembly occupancies not classified as A1,A-2,A-4, and A-5 occupancies <20,000 sq. ft. 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96A-3 occupancies: Assembly uses intended for worship, recreation or amusement and other assembly occupancies not classified as A1,A-2,A-4, and A-5 occupancies ≥20,000 sq. ft. 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92A-4 occupancies: Assembly uses intended for viewing of indoor sporting events and activities with spectator seating <20,000 sq. ft. 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96A-4 occupancies: Assembly uses intended for viewing of indoor sporting events and activities with spectator seating ≥20,000 sq. ft. 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92A-5 occupancies: Assembly uses intended for participation in or viewing outdoor activities 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96E Occupancy < 10,000 sq. ft. 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96≥ 10,000 sq. ft. 0.00 + 4.00 = 4.00 x $149.97 = $599.90 $0.00 $599.90 B,F,M or S Occupancies < 3,600 Square Feet 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97B,F,M or S Occupancies 3,601 - 50,000 Square Feet 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95B,F,M or S Occupancies 50,001 - 350,000 sq. ft. 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92B,F,M or S Occupancies > 350,000 sq. ft. 0.00 + 6.00 = 6.00 x $149.97 = $899.84 $0.00 $899.84H Occupancy 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92High-Rise 75' or more 0.00 + 6.00 = 6.00 x $149.97 = $899.84 $0.00 $899.84R-1 Occupancy (i.e. hotels, motels) <25 units 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.9226-50 units 0.00 + 3.75 = 3.75 x $149.97 = $562.40 $0.00 $562.4051-75 units 0.00 + 4.50 = 4.50 x $149.97 = $674.88 $0.00 $674.8876-100 units 0.00 + 5.25 = 5.25 x $149.97 = $787.36 $0.00 $787.36>100 units 0.00 + 6.00 = 6.00 x $149.97 = $899.84 $0.00 $899.84 R-2 Occupancy (i.e. Res Permanent 3+) per unit 0.00 + 0.25 = 0.25 x $149.97 = $37.49 $0.00 $37.49Care Facility Residential State Licensed - 6 or less Pre-inspection fee 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Care Facility Commercial 0-50 State Licensed 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95 424
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234

A B C D E F G H I J K L M N O P Q R S

ACTIVITY SERVICE COST ANALYSIS
CITY OF BEAUMONTFIRECost Estimation for Providing Fee Related Activities and Services Description
Estimated
Average
Processing
& Plan
Check Time Per Activity
(hours)
Estimated
Average
Inspection
Time Per
Activity
(hours)
Estimated
Average
Total Time
Per
Activity
(hours)
Fully
Burdened
Hourly
Rate
Cost of
Service Per
Activity
Full Cost
Fire Plan
Check Fee
Full Cost
Fire
Inspection
Fee
Current
Fee
195196197198199200201202203204205206207208209210211212213214215216217218219220221222223224225226227228229 Care Facility Commercial 51-99 State Licensed 0.00 + 2.50 = 2.50 x $149.97 = $374.94 $0.00 $374.94Care Facility Commercial 100-150 State Licensed 0.00 + 3.00 = 3.00 x $149.97 = $449.92 $0.00 $449.92Care Facility Commercial ≥ 151 State Licensed 0.00 + 4.00 = 4.00 x $149.97 = $599.90 $0.00 $599.90Day Care Facilities Residential 8-14 fire clearance 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Day Care Facilities Commercial 0-50 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Day Care Facilities Commercial 51-100 0.00 + 1.50 = 1.50 x $149.97 = $224.96 $0.00 $224.96Day Care Facilities Commercial 101-150 0.00 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95Day Care Facilities Commercial >150 0.00 2.50 = 2.50 x $149.97 = $374.94 $0.00 $374.942nd Re-Inspection (after initial and first re-inspection) 0.00 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.972nd Re-Inspection Penalty (Penalty of $150 + reinspection fee $150 = $300) [3] $0.00 $300.003rd + Re-inspection Penalty (Penalty of $250 + reinspection fee $150 = $400) [3] $0.00 $400.00 Vegetation
Hazard Reduction Inspection, per inspection [2] 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Hazard Reduction Abatement Administrative Fee 0.00 + 2.00 = 2.00 x $149.97 = $299.95 $0.00 $299.95Hazard Reduction Abatement Cost Recovery 0.00 + 0.25 = 0.25 x $149.97 = $37.49 $0.00 $37.49 Hourly Rates
Inspection/Reinspection 0.00 + 1.00 = 1.00 x $149.97 = $149.97 $0.00 $149.97Plan Review 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Engine Company (3 person crew) 3.00 + 1.00 = 4.00 x = $0.00 $0.00 $0.00Truck Company (4 person crew) 4.00 + 1.00 = 5.00 x = $0.00 $0.00 $0.00Consultant Fire Plan Review $0.00 actual
consultant
cost + 20%
admin fee
For services requested of City staff which have no fee listed in this fee schedule, the City Manager or the City Manager's designee shall determine the appropriate fee based on the established hourly rates for this division. Additionally, the City will pass-through to the applicant any direct costs incurred from the use of external service providers if required to process the specific application plus Citywide Overhead % of the total cost for administrative staff time.

SUPPORT TO PLANNING
Annexation Process and Environmental Review, Deposit [5] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Conditional Use Permit [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Conditional Use Permit: Admin & Existing Structure [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00Conditional Use Permit: Amended CUP/Substantial Conformance [5] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Custom Home Review [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00Development Agreement, Deposit [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Development Agreement Amendment, Deposit [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00 Environmental Review [5]
EIR Report Preparation, Deposit [5] 0.00 + 0.00 = 0.00 x $149.97 = $0.00 $0.00 $0.00 425
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234

A B C D E F G H I J K L M N O P Q R S

ACTIVITY SERVICE COST ANALYSIS
CITY OF BEAUMONTFIRECost Estimation for Providing Fee Related Activities and Services Description
Estimated
Average
Processing
& Plan
Check Time Per Activity
(hours)
Estimated
Average
Inspection
Time Per
Activity
(hours)
Estimated
Average
Total Time
Per
Activity
(hours)
Fully
Burdened
Hourly
Rate
Cost of
Service Per
Activity
Full Cost
Fire Plan
Check Fee
Full Cost
Fire
Inspection
Fee
Current
Fee
230231232233234235236237238239240241242243244245246247248249250251252253254255256257258259260261262263264265 Extension of Time [5] 0.00 + 0.00 = 0.00 x $149.97 = $0.00 $0.00 $0.00General Plan Amendment, Deposit [5] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Home Occupation Permit [5] 0.00 + 0.00 = 0.00 x $149.97 = $0.00 $0.00 $0.00Phasing Map [5] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00 Plot Plan [5]
With hearing [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Without hearing (notice) [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Without hearing (no notice) [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Amended plot plan/substantial conformance [5] 1.00 + 0.00 = 1.00 x $149.97 = $149.97 $149.97 $0.00Administrative (Includes second units) [5] 0.00 + 0.00 = 0.00 x $149.97 = $0.00 $0.00 $0.00 Pre-application Review [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Specific Plan, Deposit [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00Specific Plan Amendment, Deposit [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00Subdivision Sales Office (Trailer) and Model Home Complexes-Temporary [5] 0.00 + 0.00 = 0.00 x $149.97 = $0.00 $0.00 $0.00Temporary Use Permits [5] Minor [5] 2.00 + 0.00 = 2.00 x $149.97 = $299.95 $299.95 $0.00Major [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00 Tentative Parcel Map [5]
Residential [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Commercial [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00 Tentative Tract or Condo Map [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00Tentative Tract or Parcel Map Revised [5] 3.00 + 0.00 = 3.00 x $149.97 = $449.92 $449.92 $0.00 Notes[1] Fees driven by State statue[2] This fee will be assessed to all parcels defined as open space land and where legally permitted. Any fees associated with failure to comply and fire department ordered abated land will be pursued separately from this inspection fee. This fee will be collected as part of the annual property tax bill through the County of Riverside. [3] Placeholder for Master Fee Schedule (MFS); not included in cost analysis[4] All devlelopment related fees for plan review includes 2 Plan Checks[5] Source document from client "Copy of MV Fee Model 7 14 15 Fire COS Input.xlsx"[6] Current fee includes 4 connections; proposed fee is per connection[7] Fire does not review[8] Current fee is for up to 4 connections[9] Current fee has a range; used lowest end of range[10] Current fee is per system[11] Annual revenues are projected using the plan check volume data[12] CA Govt. Code SS 66015 limits Res. $500 maximum; Comm. $1,000 Maximum; Building Permit fees set at maximums 426
764
APPENDIX E – ANIMAL LICENSE FEE DETAIL

427
765
Beaumont Current Fee Proposed Fee
1 Year License Altered $25.00 $25.00
2 Year License Altered $40.00 $40.00
3 Year License Altered $55.00 $55.00
1 Year Unaltered $100.00 $100.00
Late License Fee $25.00 $25.00
Replacement Tag $25.00 $25.00
Banning
1 Year License Altered $25.00 $25.00
2 Year License Altered $40.00 $40.00
3 Year License Altered $55.00 $55.00
1 Year Unaltered $100.00 $100.00
Late License Fee $25.00 $25.00
Replacement Tag $25.00 $25.00
Calimesa
1 Year License Altered $25.00 $25.00
2 Year License Altered $40.00 $40.00
3 Year License Altered $55.00 $55.00
1 Year Unaltered $100.00 $100.00
Late License Fee $25.00 $25.00
Replacement Tag $25.00 $25.00
Shelter Fees - Determined by Ramona Humane Society

ANIMAL CARE
428
766
APPENDIX F – LESIURE & CULTURAL SERVICES FEE DETAIL

429
767

SERVICE
DIRECT
COSTS

CITY/DEPT
ADMIN

FACILITY

MAINT TOTAL REVENUES
Youth Sports $35,569 $47,662 $83,231
Recreation Classes $49,958 $74,929 $124,887
Senior Classes $40,826 $62,310 $103,136
Senior Programs $85,767 $125,699 $211,466
Facility Management $46,397 $65,445 $111,842
Facility Maintenance $181,980 $181,980
$258,517 $376,045 $181,980 $816,542 $18,750
Recreation Program Cost Recovery 7.3% 3.0% 2.3% 2.3%

RENTALS
DIRECT
COSTS

CITY/DEPT
ADMIN

FACILITY

MAINT TOTAL REVENUES
COST

RECOVERY
Facility Rentals $89,489 $131,691 $221,180 $128,520 58.1% Ballfield Rentals $48,788 $71,299 $497,282 $617,369 $2,500 0.4% $138,277 $202,990 $497,282 $838,549 $131,020 15.6%

DIRECT COSTS ARE DIRECT PART TIME AND FULL TIME SALARIES, BENEFITS, AND OTHER OPERATING EXPENSES

CITY OF BEAUMONT

DETAIL OF RECREATION SERVICES
FISCAL YEAR 2022‐23
430
768
Contact Information
Eric Johnson
President
Tel 714-992-9027
[email protected]
Chu Thai
Vice President
Tel 714-992-9024
[email protected]
Company Information
Revenue & Cost Specialists
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
Tel (714) 992-9020
www.revenuecost.com
431
769
Table Comparing Existing and Propsoed Fire Fees 10/2024 Based on Hours New Plan Check New Inspection

3.50 $ 662.00
$ 7.00

1.50 $ 284.00
$ 7.00

2.50 $ 473.00
$ 7.00

1.25 $ 237.00
$ 7.00
$ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $

3.50 $ 662.00
$ 7.00

2.50 $ 473.00
$ 7.00

1.00 $ 189.00 1.00 $ 189.00
$ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $
TI 13, 13R Fire Sprinkler System inspection (per sprinkler head) $ 7.00TI 13D Fire Sprinkler System plan check (base fee) $ 378.00TI 13D Fire Sprinkler System inspection (per sprinkler head) $ 7.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour)

DESCRIPTION PLAN CHECK INSPECTION

FIRE FEES FOR SPRINKLER PERMITS (FSS, FSD, FMS)
New 13, 13R Fire Sprinkler System plan check (base fee) $ 662.00New 13, 13R Fire Sprinkler System inspection (per sprinkler head) $ 7.00New 13D Fire Sprinkler System plan check (base fee) $ 284.00New 13D Fire Sprinkler System inspection (per sprinkler head) (each separate plan type) $ 7.00TI 13, 13R Fire Sprinkler System plan check (base fee) $ 378.00 $ 284.00
Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

FIRE FEES FOR ALARM PERMITS (FAL)
New Fire Alarm System plan check (base fee) $ 662.00New Fire Alarm System inspection (per initiating or notification device) $ 7.00TI Fire Alarm System Plan Check (base fee) $ 378.00TI Fire Alarm System Inspection (per initiating or notification device) $ 7.00Monitoring Only Plan Check (or Communicator upgrade per unit) $ 189.00Monitoring Only Inspection (or Communicator upgrade per unit) $ 189.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

Page 1 of 22 ends

770
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.50 $ 284.00 2.00 $ 378.003.00 $ 567.00 2.50 $ 473.001.50 $ 284.00 1.50 $ 284.001.50 $ 284.00 3.00 $ 567.001.50 $ 284.00 2.00 $ 378.00 $ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $

DESCRIPTION PLAN CHECK INSPECTION

FIRE FEES FOR WATER SYSTEM PERMITS (FWT)
Underground plan check (per connection ie hydrant and/or riser) $ 284.00Underground inspection (per connection ie hydrant and/or riser) $ 378.00Fire Pump plan check $ 473.00Fire Pump inspection $ 378.00Aboveground Temporary Tank plan check $ 284.00Aboveground Temporary Tank inspection $ 284.00Emergency Underground Repair plan check $ 284.00Emergency Underground Repair inspection $ 473.00Standpipes/Hose valves plan check $ 284.00Standpipes/Hose valves inspection $ 378.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

Page 2 of 22 ends

771
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

2.75 $ 520.00

1.50 284.00 $

1.50 $ 284.00

1.50 284.00 $

7.00 $ 1,323.00

6.00 1,134.00 $
$ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $

2.00 $ 378.00 2.00 $ 378.00

2.00 $ 378.00

3.00 $ 567.00

1.50 $ 284.00

5.00 $ 945.00

3.00 $ 567.00

1.50 $ 284.00

1.00 $ 189.00

3.00 $ 567.00

2.00 $ 378.00

4.00 $ 756.00

4.00 $ 756.00
$ 189.00

FIRE FEES FOR PROTECTION SYSTEMS PERMITS (FPS)
Special Extinguishing System plan check $ 473.00Special Extinguishing System inspection $ 284.00Hood and Duct Extinguishing System plan check (per system) $ 284.00Hood and Duct Extinguishing System inspection (per system) $ 284.00Smoke Control - Rationale Analysis and Plan Review $ 1,040.00Smoke Control System inspection $ 945.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

FIRE FEES FOR OTHER SYSTEMS PERMITS (FOS)
Industrial Oven plan check (per oven) $ 378.00Industrial Oven inspection (per oven) $ 473.00Dust Collection System plan check $ 378.00Dust Collection System inspection $ 473.00Battery System plan check (Commercial) $ 378.00Battery System inspection (Commercial) $ 473.00Refrigeration System < 500 lbs. plan check $ 662.00Refrigeration System < 500 lbs. inspection $ 378.00Refrigeration System ≥ 500 lbs. plan check $ 1,890.00Refrigeration System ≥ 500 lbs. inspection $ 473.00Spray Booths (per booth) plan check $ 662.00Spray Booths (per booth) inspection $ 473.00Gas Systems (Med Gas, Industrial Gas, LPG) plan check $ 473.00Gas Systems (Med Gas, Industrial Gas, LPG) inspection $ 378.00Emergency Responder Radio Coverage plan check $ 662.00Emergency Responder Radio Coverage inspection $ 1,890.00Construction Reinspection Fee (per hour) $ 284.00

Page 3 of 22 ends

772
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $
Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

Page 4 of 22 ends

773
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 $ 189.00

2.00 $ 378.00

1.00 $ 189.00
$ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $

DESCRIPTION PLAN CHECK INSPECTION

FIRE FEES FOR ACCESS & WATER REVIEWS (FAW, FPP)
Access and Water Supply plan check $ 189.00Access and Water Supply inspection $ 378.00Fuel Modification Plan check $ 378.00Fuel Modification inspection $ 1,890.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

Page 5 of 22 ends

774
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.50 $ 284.00

1.00 $ 189.00

2.50 $ 473.00

1.50 $ 284.00

4.00 $ 756.00

2.50 $ 473.00

5.50 $ 1,040.00 3.50 $ 662.00 2.25 $ 426.00

1.00 $ 189.00

2.25 $ 426.00

1.00 $ 189.00

1.50 $ 284.00

1.00 $ 189.00
$ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $

2.00 $ 378.00

4.00 $ 756.00

6.00 $ 1,134.00

8.00 $ 1,512.00

FIRE FEES FOR HAZ MAT PERMITS (FHM)
Haz-Mat Chem Class <10 Chemicals plan check $ 284.00Haz-Mat Chem Class<10 Chemicals inspection $ 189.00Haz-Mat Chem Class 10 - 25 Chemicals plan check $ 378.00Haz-Mat Chem Class 10 - 25 Chemicals inspection $ 284.00Haz-Mat Chem Class 26 - 100 Chemicals plan check $ 662.00Haz-Mat Chem Class 26 - 100 Chemicals inspection $ 378.00Haz-Mat Chem Class >100 Chemicals plan check $ 851.00Haz-Mat Chem Class >100 Chemicals inspection $ 662.00Underground Storage Tanks plan check (per tank) Installation or Removal $ 378.00Underground Storage Tanks inspection (per tank) Installation or Removal $ 189.00Aboveground Storage Tanks plan check (per tank) Installation or Removal $ 378.00Aboveground Storage Tanks inspection (per tank) Installation or Removal $ 189.00Alterations to gas stations plan check (no tank alterations) $ 284.00Alterations to gas stations inspection (no tank alterations) $ 189.00Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

DESCRIPTION PLAN CHECK INSPECTION

FIRE FEES FOR HIGH PILE STORAGE PERMITS (FHP)
High Pile Storage <12,000 sq. ft. PC $ 378.00High Pile Storage <12,000 sq. ft. Insp $ 473.00High Pile Storage 12,001 - 50,000 sq. ft. PC $ 662.00High Pile Storage 12,001 - 50,000 sq. ft. Insp $ 1,890.00High Pile Storage 50,001 - 100,000 sq. ft. $ 945.00High Pile Storage 50,001 - 100,000 sq. ft. Insp $ 945.00High Pile Storage > 100,000 sq. ft. PC $ 1,229.00High Pile Storage > 100,000 sq. ft. Insp $ 1,229.00

Page 6 of 22 ends

775
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection $ 189.00

4.00 $ 756.00 1.00 $ 189.00
Actual Consultant fee + 20%

1.00 $ 189.00 1.00 $ 189.00 1.50 $ 284.00 1.50 $ 284.00

2.00 378.00 $ 1.00 189.00 $ 1.00 189.00 $ 2.00 378.00 $ 1.00 189.00 $ 2.00 378.00 $ 2.00 378.00 $ 6.00 1,134.00 $ $ -
$ 189.00

1.50 284.00 $ 1.00 189.00 $ 1.50 284.00 $ 1.00 189.00 $ Construction Reinspection Fee (per hour) $ 284.00Alternate methods and materials (initial - 4 hrs. min.) $ 1,890.00Additional Alternate methods and materials Plan Review (per hour) $ 284.00Consultant Fire Plan Review (actual consultant fee +20%) $ 189.00Misc./Over the Counter/ Revisions (per hour) $ 378.003rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00Work without Permit (PENALTY) $ 284.00

DESCRIPTION PLAN CHECK INSPECTION

FIRE FEES FOR INSPECTIONS (FIN)
Residential Care Facility Pre-inspection (6 or less) $ 189.00Residential Day Care Facility 8-14 Fire Clearance $ 189.00Special Event WITH tents and/or canopies >400 sq. ft. $ 378.00Special Event with NO tents and/or canopies $ 189.00Carnivals and Fairs $ 473.00Explosives or Blasting Agents, use, dispose $ 1,890.00Firework Displays $ 945.00Complaints (not on fee schedule but is documented under this record type) $ 0.00Fire Clearances (not on fee schedule but is documented under this record type for hospital, res. care facility 850 fire clearance, etc) $ 189.00Hydrant/Control Valve Flow Test $ 284.00Fire Standby (per hour - During work hours) $ 189.00Miscellaneous Inspection (uses 1 hour of the hourly rate fee) $ 189.00Fire Standby (per hour - During off work hours OVERTIME) $ 284.00

Page 7 of 22 ends

776
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection FIRE FEES FOR ALL ANNUALS (FIRE # FBP, FSM, FMF)
ANNUAL FIRE CODE PERMITS (CFC OPERATIONAL PERMITS)Aerosol Products Level 2 & 3 (DUPLICATED SEE BELOW) $ 189.00Open Flame and/ or Candles in Assembly Occupancies (DUPLICATED SEE BELOW) $ 189.00Cellulose Nitrate (DUPLICATED SEE BELOW) $ 189.00Combustible Fibers (DUPLICATED SEE BELOW) $ 189.00Combustible Materials (DUPLICATED SEE BELOW) $ 189.00Compressed Gases (DUPLICATED SEE BELOW) $ 189.00Cryogenic Fluids (DUPLICATED SEE BELOW) $ 189.00Dispensing of Flammable/Combustible liquids into a vehicle (DUPLICATED SEE BELOW) $ 189.00 Dry Cleaning Plants 1-2 units (for now uses fee for flam/comb liquids inside <60 gal) (DUPLICATED SEE BELOW) $ 189.00 Dry Cleaning Plants > 2 units $ 284.00Combustible Dust Producing & Operations (DUPLICATED SEE BELOW) $ 189.00Covered and Uncovered Mall Buildings (DUPLICATED SEE BELOW) $ 284.00Explosives (DUPLICATED SEE BELOW) $ 189.00Storage of Fireworks (DUPLICATED SEE BELOW) $ 378.00Flammable/Combustible Liquids Inside ≥60 Gal. (DUPLICATED SEE BELOW)Flammable/Combustible Liquids Inside <60 Gal. (DUPLICATED SEE BELOW) $ 189.00 $ 189.00
Flammable/Combustible Liquid Outside/Aboveground tank (per tank) (DUPLICATED SEE BELOW) $ 189.00Flammable/Combustible Liquid Underground Tanks (per tank) (DUPLICATED SEE BELOW) $ 189.00Hazardous Materials (DUPLICATED SEE BELOW) $ 189.00High-Piled Combustible Stock <12,000 sq. ft. (DUPLICATED SEE BELOW) $ 189.00High-Piled Combustible Stock 12,000 - 100,000 sq. ft. (DUPLICATED SEE BELOW) $ 378.00High-Piled Combustible Stock >100,000 sq. ft. (DUPLICATED SEE BELOW) $ 662.00Industrial Ovens/Drying (DUPLICATED SEE BELOW) $ 189.00Liquefied Petroleum Gases (DUPLICATED SEE BELOW) $ 189.00Liquid or Gas Filled Vehicles in Assemblies (DUPLICATED SEE BELOW) $ 189.00Miscellaneous Combustible Storage (DUPLICATED SEE BELOW) $ 189.00Motor Vehicle Repair (DUPLICATED SEE BELOW) $ 189.00Tire Storage (outside) (DUPLICATED SEE BELOW) $ 189.00Places of Assembly (DUPLICATED SEE BELOW) $ 189.00Pyrotechnical Special Effects (DUPLICATED SEE BELOW) $ 353.00Spray Booths/ Dipping Operations (DUPLICATED SEE BELOW) $ 189.00Welding and Cutting (DUPLICATED SEE BELOW) $ 189.00Special Amusement Buildings (DUPLICATED SEE BELOW) $ 284.00

Page 8 of 22 ends

777
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection Lumber yards and woodworking plants (DUPLICATED SEE BELOW) $ 189.00Wood products (DUPLICATED SEE BELOW) $ 189.00Magnesium (DUPLICATED SEE BELOW) $ 189.00Refrigeration Equipment <500 lbs. (DUPLICATED SEE BELOW) $ 189.00Refrigeration Equipment ≥500 lbs. (DUPLICATED SEE BELOW) $ 378.00

Page 9 of 22 ends

778
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.50 284.00 $ 3.00 567.00 $ 1.00 189.00 $ 1.50 284.00 $ 1.50 284.00 $ 3.00 $ 567.00

1.50 284.00 $ 3.00 567.00 $ 1.50 284.00 $ 1.00 189.00 $ 2.00 378.00 $ 3.00 567.00 $ 6.00 1,134.00 $ 3.00 567.00 $ 2.00 378.00 $ 2.65 500.00 $ 2.00 378.00 $

DESCRIPTION PLAN CHECK INSPECTION
FIRE FEES FOR BUSINESS ANNUALS (FIRE # FBP)
A-1 occupancies: Assembly uses, usually with fixed seating, intended for the production and viewing of performing arts or motion pictures <20,000 sq. ft.
$ 284.00
A-1 occupancies: Assembly uses, usually with fixed seating, intended for the production and viewing ofperforming arts or motion pictures ≥20,000 sq. ft. $ 473.00
A-2 occupancies: Assembly uses intended for food and/or drink consumption <10,000 sq. ft. $ 189.00 A-2 occupancies: Assembly uses intended for food and/or drink consumption > 10,000 sq. ft. $ 284.00 A-3 occupancies: Assembly uses intended for worship, recreation or amusement and other assembly occupancies not classified as A1,A-2,A-4, and A-5 occupancies <20,000 sq. ft. $ 284.00 A-3 occupancies: Assembly uses intended for worship, recreation or amusement and other assemblyoccupancies not classified as A-1,A-2,A-4, and A-5 occupancies ≥20,000 sq. ft. $ 473.00 A-4 occupancies: Assembly uses intended for viewing of indoor sporting events and activities with spectator seating <20,000 sq. ft. $ 284.00 A-4 occupancies: Assembly uses intended for viewing of indoor sporting events and activities with spectator seating ≥20,000 sq. ft.
$ 473.00
A-5 occupancies: Assembly uses intended for participation in or viewing outdoor activities. $ 284.00B,F,M or S Occupancies < 3,600 Square Feet $ 189.00B,F,M or S Occupancies 3,601 - 50,000 Square Feet $ 378.00B,F,M or S Occupancies 50,001 - 350,000 sq. ft. $ 473.00B,F,M or S Occupancies > 350,000 sq. ft. $ 945.00H or L Occupancy $ 473.002nd Re-Inspection Penalty (Penalty of $189+ reinspection fee $189= $378) $ 378.003rd + Re-inspection Penalty (Penalty of $200 + reinspection fee $300 = $500) $ 473.00Work without Permit (PENALTY) $ 378.00

Page 10 of 22 ends

779
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

3.00 567.00 $ 3.75 709.00 $ 4.50 851.00 $ 5.25 993.00 $ 6.00 1,134.00 $ 0.25 48.00 $ 1.00 189.00 $ 2.00 378.00 $ 2.50 473.00 $ 3.00 567.00 $ 4.00 756.00 $ 2.00 378.00 $ 2.65 500.00 $ 2.00 378.00 $ 1.50 284.00 $ 4.00 756.00 $ 1.50 284.00 $ 4.00 756.00 $ 1.50 284.00 $ 4.00 756.00 $ 1.50 284.00 $ 4.00 756.00 $ 6.00 1,134.00 $ 1.00 189.00 $ 1.00 189.00 $ 2.00 378.00 $ 2.25 430.00 $ 2.50 473.00 $ 2.00 378.00 $ 2.65 500.00 $ 2.00 378.00 $

DESCRIPTION PLAN CHECK INSPECTION
FIRE FEES FOR MULTI FAMILY ANNUALS (FIRE # FMF)
R-1 Occupancy (i.e. hotels, motels) <25 units $ 473.00
R-1 Occupancy (i.e. hotels, motels) 26-50 units $ 567.00R-1 Occupancy (i.e. hotels, motels) 51-75 units $ 1,890.00R-1 Occupancy (i.e. hotels, motels) 76-100 units $ 851.00R-1 Occupancy (i.e. hotels, motels) >100 units $ 945.00R-2 Occupancy (i.e. Res Permanent 3+) per unit $ 189.00Care Facility Commercial 0-50 State Licensed $ 378.00Care Facility Commercial 51-99 State Licensed $ 378.00Care Facility Commercial 100-150 State Licensed $ 473.00Care Facility Residential State Licensed - 6 or less Pre-inspection FeeCare Facility Commercial ≥ 151 State Licensed $ 662.002nd Re-Inspection Penalty (Penalty of $189+ reinspection fee $189= $378) $ 378.003rd + Re-inspection Penalty (Penalty of $200 + reinspection fee $300 = $500) $ 473.00Work without Permit (PENALTY) $ 378.00 FIRE FEES FOR STATE MANDATES ANNUALS (FIRE # FSM)
E Occupancy (Schools) <10,000 sq. ft. $ 284.00
E Occupancy (Schools) > 10,000 sq. ft. $ 662.00
Hospitals <10,000 S.F. $ 284.00
Hospitals > 10,000 S.F. $ 662.00
Skilled Nursing < 10,000 S.F. $ 284.00
Skilled Nursing > 10,000 S.F. $ 662.00
Jail <10,000 S.F. $ 284.00
Jail > 10,000 S.F. $ 662.00
High-Rise 75' or more $ 945.00Day Care Facilities Commercial 0-50 $ 189.00Day Care Facilities Commercial 51-100 $ 189.00Day Care Facilities Commercial 101-150 $ 284.00Day Care Facilities Commercial >150 $ 284.002nd Re-Inspection Penalty (Penalty of $189+ reinspection fee $189= $378) $ 378.00Day Care Facilities Residential 8-14 Fire Clearance 3rd + Re-inspection Penalty (Penalty of $200 + reinspection fee $300 = $500) $ 473.00Work without Permit (PENALTY) $ 378.00

Page 11 of 22 ends

780
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection $ 189.00
$ 189.00

1.00 $ 189.00

2.00 378.00 $
$ -
Actual Cost + 20% Actual Cost + 20%

1.00 189.00 $ 3.00 567.00 $ 3.00 567.00 $ 3.00 567.00 $ 3.00 567.00 $ 3.00 567.00 $ Actual Costs Hourly Actual Costs HourlyActual Costs Hourly Actual Costs HourlyActual Costs Hourly Actual Costs HourlyActual Costs Hourly Actual Costs Hourly Actual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost Hourly Actual Costs Hourly Actual Costs HourlyActual Costs Hourly Actual Costs Hourly Actual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost Hourly Consultant ServicesConditional Use Permit $ 473.00
$ 473.00 $ 473.00 $ 473.00 $ 473.00 $ 189.00
Landscape Review Lot Line Adjustment (with existing building)

PLANNING RECORDS

DESCRIPTION PLAN CHECK INSPECTION

MISCELLANEOUS FIRE FEES
Inspection (per hour) for items not identified on fee schedule $ 189.00Plan Review (per hour) for items not identified on fee schedule $ 189.00Consultant Fire Plan Review (per hour) - Not Pertinant to Banning $ 189.00Historic (Permits Plus) plan check fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) inspection & permit fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) Weed Abatement fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) business inspection fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) State Mandates fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) Hotel/Motel fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) Apt/Condo fee (per hour) Not Pertinant to Banning $ 189.00Historic (Permits Plus) Annual Code permit fee (per hour) Not Pertinant to Banning $ 189.00False Alarm - Residential $ 189.00False Alarm - Commercial $ 189.00Community Emergency Response Team (CERT), per class Not Pertinant to Banning $ 189.00Anexxation FeeConditional Use Permit AmendmentConditional Use Permit - Sexually Oriented Business Design ReviewDesign Review AmendmentDevelopment AgreementsEIR- Administrative ChargeEnvironmental AssessmentExtension of Time, CUP, Design ReviewFinal Parcel MapFinal Tract Map (First 50 Lots)Final tract Map (51 + lots)General Plan Amendment (Land Use)General Plan Amendment (Policy)

Page 12 of 22 ends

781
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection Actual Cost Hourly Actual Cost Hourly

3.00 567.00 $ 3.00 567.00 $
Actual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost Hourly

1.00 $ 189.002.00 $ 378.00
Actual Cost Hourly Actual Cost Hourly

3.00 567.00 $ 3.00 567.00 $ 3.00 567.00 $
Actual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost HourlyActual Cost Hourly Actual Cost Hourly Actual Cost hourly Actual Cost hourly

3.00 567.00 $ 3.00 567.00 $ 3.00 567.00 $
Zone ChangeCannibis Retailer Conditional Use Permit (CUP)Cannibis Cultivation, Manufacturing and Testing Laboratory Facilities Conditional Use Permit (CUP) Cannibus Microbusiness Conditional Use Permit (CUP)
$ 473.00 $ 473.00 $ 473.00
Pre-Application Review (PAC)Site Plan Review Specific Plan $ 473.00 $ 473.00 $ 473.00
Tentative Map Time Extension Tentative Parcel Map $ 473.00 Unit Phasing MapTentaive Tract Map (50 lots or more)Tentative Tract Map Condition MonitoringMinor Modification of an ApplicationSpecific Plan AmendmentTentaive Tract Map (Less than 50 lots)Variance $ 473.00 $ 473.00 $ 473.00
Temporary Use Permits - Minor $ 378.00Temporary Use Permits - Major $ 473.00

Page 13 of 22 ends

782
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 $ 189.003.00 $ 567.002.00 $ 378.001.00 $ 189.002.00 $ 378.00 Actual Costs Actual CostsActual Costs Actual Costs
Actual Costs Actual Costs
Actual Costs Actual CostsActual Costs Actual Costs

1.00 $ 189.001.00 $ 189.00
Annexation Process and Environmental Review, Deposit $ 189.00Conditional Use Permit $ 473.00Conditional Use Permit: Admin & Existing Structure $ 378.00Conditional Use Permit: Amended CUP/Substantial Conformance $ 189.00Custom Home Review $ 378.00Development Agreement, Deposit $ 473.00Development Agreement Amendment, Deposit $ 378.00EIR Report Preparation, Deposit $ 189.00Extension of Time $ 189.00General Plan Amendment, Deposit $ 189.00Home Occupation Permit $ 189.00Phasing Map $ 189.00

Page 14 of 22 ends

783
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

3.00 $ 567.003.00 $ 567.003.00 $ 567.001.00 $ 189.001.00 $ 189.003.00 $ 567.00 Actual Costs Actual CostActual Costs Actual Cost

1.00 $ 189.003.00 $ 567.003.00 $ 567.003.00 $ 567.003.00 $ 567.001.50 $ 284.001.50 $ 284.001.00 $ 189.001.00 $ 189.00

1.00 $ 189.00

1.25 $ 237.00

1.50 $ 284.00

2.00 $ 378.00

2.50 $ 473.00

2.50 $ 473.00
$473 + $9 per 1,000 SF
$473 + $9 per 1,000 SF
$ 189.00
Pre-application Review $ 473.00

DESCRIPTION PLAN CHECK INSPECTION
Specific Plan, Deposit $ 378.00Specific Plan Amendment, Deposit $ 473.00Subdivision Sales Office (Trailer) and Model Home Complexes-Temporary $ 189.00

DESCRIPTION PLAN CHECK INSPECTION
Plot PlanWith hearing $ 473.00Without hearing (notice) $ 473.00Without hearing (no notice) $ 473.00Amended plot plan/substantial conformance $ 189.00Administrative (Includes second units)Tentative Parcel MapResidential $ 473.00Commercial $ 473.00Tentative Tract or Condo Map $ 473.00Tentative Tract or Parcel Map Revised $ 473.00Precise Grading plan review, per sheet $ 284.00Water/Sewer plan review, per sheet $ 284.003rd review and subsequential submittals (per hour) $ 189.00 FIRE FEES FOR NEW CONST. & TI'S (BFC & BRC)
Buildings for all Commercial Uses - (The enclosure for all newly constructed or added space for non-residential occupancies classified as CBC Group A, B, E, F, I, M, S, or other commercial occupancies not specifically addressed elsewhere in this Fee Schedule where the interior is completed and occupiable (same fees as shell buildings) 0 - 1999 sq. ft. $ 189.00
0 - 1999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 188.002,000 - 4,999 sq. ft. $ 189.005,000 - 9,999 sq. ft. $ 284.005,000 - 9,999 sq. ft. $ 284.0010,000 - 24,999 sq. ft. $ 378.0010,000 - 24,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 473.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 473.00

Page 15 of 22 ends

784
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 $ 189.00

1.25 $ 237.00

1.50 $ 284.00

2.00 $ 378.00

2.50 $ 473.00

2.50 $ 473.00
$473 + $9 per 1,000 SF
$473 + $9 per 1,000 SF

1.25 $ 237.00

2.00 $ 378.00

2.75 $ 520.00

3.50 $ 662.003.50 $ 662.00 4.25 $ 804.00

4.25 $ 804.00
$803 + $9 per 1,000 SF
$803 + $9 per 1,000 SF

DESCRIPTION PLAN CHECK INSPECTION
Residential and Multifamily Residential Uses - (All newly constructed or added space for residential occupancies classified as CBC Group R , or other residential occupancies not specifically addressed elsewhere in this Fee Schedule)0 - 1999 sq. ft. $ 189.000 - 1999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 188.002,000 - 4,999 sq. ft. $ 187.005,000 - 9,999 sq. ft. $ 284.005,000 - 9,999 sq. ft. $ 284.0010,000 - 24,999 sq. ft. $ 378.0010,000 - 24,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 473.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 473.00 Hazardous Use - (All newly constructed or added space for hazardous use occupancies classified as CBC Group H. 0 - 1999 sq. ft. $ 188.00
0 - 1999 sq. ft. $ 187.002,000 - 4,999 sq. ft. $ 378.002,000 - 4,999 sq. ft. $ 378.005,000 - 9,999 sq. ft. $ 473.005,000 - 9,999 sq. ft. $ 473.0010,000 - 24,999 sq. ft. $ 662.0010,000 - 24,999 sq. ft. 66225,000 - 49,999 sq. ft. $ 662.0025,000 - 49,999 sq. ft. $ 662.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 1,890.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 1,890.00

Page 16 of 22 ends

785
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 $ 189.00

1.25 $ 237.00

1.50 $ 284.00

2.00 $ 378.00

2.50 $ 473.00

2.50 $ 473.00
$450 + $9 per 1,000 SF
$450 + $9 per 1,000 SF

1.00 $ 189.00

1.25 $ 237.00

1.50 $ 284.00

2.00 $ 378.00

2.50 $ 473.00

2.50 $ 473.00
$473+ $9 per 1,000 SF
$473 + $9 per 1,000 SF

1.00 $ 189.00

1.00 189.00 $

1.50 $ 284.00

1.50 284.00 $

2.25 $ 426.00

2.25 426.00 $

DESCRIPTION PLAN CHECK INSPECTION
Shell Buildings for all Commercial Uses - (The enclosure for all newly constructed or added space for non-residential occupancies classified as CBC Group A, B, E, F, I, M, S, or other commercial occupancies not specifically addressed elsewhere in this Fee Schedule where the interior is not completed or occupiable)0 - 1999 sq. ft. $ 189.00 0 - 1999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 187.005,000 - 9,999 sq. ft. $ 284.005,000 - 9,999 sq. ft. $ 284.0010,000 - 24,999 sq. ft. $ 378.0010,000 - 24,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 473.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 473.00 Tenant Improvement - (Remodeled space for non-residential occupancies classified as CBC Group A, B, E, F, I, M, R, S, or other commercial occupancies not specifically addressed elsewhere.)
0 - 1999 sq. ft. $ 189.00
0 - 1999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 187.005,000 - 9,999 sq. ft. $ 284.005,000 - 9,999 sq. ft. $ 284.0010,000 - 24,999 sq. ft. $ 378.0010,000 - 24,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0025,000 - 49,999 sq. ft. $ 378.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 473.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 473.00

PLAN CHECK INSPECTION
Tenant Improvement - Hazardous Use (Remodeled space for non-residential occupancies classified as CBC Group H. 0 - 1999 sq. ft. $ 189.00
0 - 1999 sq. ft. $ 189.002,000 - 4,999 sq. ft. $ 284.002,000 - 4,999 sq. ft. $ 284.005,000 - 9,999 sq. ft. $ 338.005,000 - 9,999 sq. ft. $ 337.00

Page 17 of 22 ends

786
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

3.00 $ 567.00

3.00 567.00 $

3.75 $ 709.00

3.75 709.00 $
$709 + $14 per
1,000 SF
$709 + $14 per
1,000 SF
10,000 - 24,999 sq. ft. $ 473.0010,000 - 24,999 sq. ft. $ 473.0025,000 - 49,999 sq. ft. $ 567.0025,000 - 49,999 sq. ft. $ 567.0050,000 or > to be charged by base fee plus a sq. ft. multiplier (50,000-100,000) $ 1,890.0050,000 or > to be charged by base fee plus a sq. ft. multiplier > 100,000) $ 1,890.00

Page 18 of 22 ends

787
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 189.00 $ 1.00 189.00 $ 2.00 378.00 $ 2.00 378.00 $

1.00 $ 189.00

1.50 284.00 $
actual consultant fee
+20%

1.00 $ 189.001.00 $ 189.001.50 $ 284.001.50 $ 284.00
Solar Photovoltaic Systems (Residential) over 20 kWSolar Photovoltaic Systems (Commercial)

SOLAR / PHOTOVOLTAIC (BON / BFR / BRC)
Solar Photovoltaic Systems (Residential) over 20 kW $ 756.00 $ 567.00
Solar Photovoltaic Systems (Commercial) $ 1,890.00
$ 945.00

GENERATOR / CELL SITES
Generator/ Cell Site $ 189.00
Generator/ Cell Site $ 284.00

ADDITIONAL FIRE FEES FOR BFC / BFR / BON
Consultant Fire Plan Review (actual consultant fee +20%)Misc./Over the Counter/ Revisions (per hour) $ 378.00 3rd review and subsequent submittals (per hour) $ 284.00Expedited / Overtime Plan Review (per hour) $ 284.00Expedited / Overtime Inspection (per hour) $ 284.00

Page 19 of 22 ends

788
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 189.00 $ 0.50 95.00 $ 1.50 284.00 $ 0.50 95.00 $ 0.50 95.00 $ 1.00 189.00 $ 1.00 189.00 $ 1.00 189.00 $ 1.50 284.00 $ 1.00 189.00 $ 0.50 95.00 $ 0.50 95.00 $ 1.50 284.00 $ 2.00 378.00 $ Exhibits and trade Shows 1.00 189.00 $

1.00 189.00 $ 1.00 189.00 $ 1.00 189.00 $ 0.50 95.00 $ 0.75 142.00 $ 0.75 142.00 $ Fruit and Crop Ripening 0.75 142.00 $

1.00 189.00 $ 1.00 189.00 $ 1.00 189.00 $ 2.50 473.00 $ 4.00 756.00 $ 0.50 95.00 $ 1.00 189.00 $ 2.00 378.00 $ 1.00 189.00 $ 0.50 95.00 $ 0.50 95.00 $ Hot Work OperationsFlammable/Combustible Liquid Outside/Aboveground tank (per tank) $ 284.00Additive Manufacturing (3D Printing)Energy Storage System

FIRE CODE PERMITS (CFC OPERATIONAL PERMITS)
Aerosol Products Level 2 & 3 $ 189.00Carnivals and Fairs $ 473.00Cellulose Nitrate $ 473.00Combustible Fibers $ 756.00
Combustible Dust Producing & OperationsLiquefied Petroleum Gases $ 378.00Liquid or Gas Filled Vehicles in Assemblies $ 378.00 $ 756.00
Covered and Uncovered Mall Buildings

DESCRIPTION PLAN CHECK INSPECTION
$ 473.00
Compressed Gases $ 567.00Amusement Buildings (Special Amusement Buildings) $ 284.00 $ 1,796.00
Explosives $ 945.00Flammable/Combustible Liquids Inside ≥60 Gal. $ 473.00Flammable/Combustible Liquids Inside <60 Gal. $ 662.00Hydrant/Control Valve Flow Test $ 378.00Hazardous Production Materials $ 567.00Lumber yards and woodworking plants $ 473.00Magnesium $ 284.00Cryogenic Fluids $ 567.00Dry Cleaning Plants 1-2 units $ 662.00Dry Cleaning Plants > 2 unitsFlammable/Combustible Liquid Underground Tanks (per tank) $ 378.00Hazardous Materials $ 473.00High-Piled Combustible Stock <12,000 sq. ft. $ 567.00High-Piled Combustible Stock 12,000 - 100,000 sq. ft. $ 662.00High-Piled Combustible Stock >100,000 sq. ft. $ 756.00Industrial Ovens/Drying $ 473.00Cutting and Welding $ 284.00

Page 20 of 22 ends

789
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection

1.00 189.00 $ 1.00 189.00 $ 1.00 189.00 $ 0.50 95.00 $
Organic Coatings 1.00 189.00 $

1.00 189.00 $
Plant Extraction Systems 1.00 189.00 $

4.00 756.00 $
Pyroxylin plastics 1.00 189.00 $

1.00 189.00 $ 2.00 378.00 $ 1.00 189.00 $ 1.00 189.00 $ 1.00 189.00 $ Tire Rebuilding Plants 1.00 189.00 $ Waste Handling 0.50 95.00 $ Wood products 0.50 95.00 $

1.00 189.00 $
Refrigeration Equipment ≥500 lbs. $ 567.00Open Flame and/ or Candles in Assembly Occupancies $ 189.00Miscellaneous Combustible Storage $ 473.00$ 284.00$ 378.00$ 284.00
Refrigeration Equipment <500 lbs.Mobile Fueling of Hydrogen Fueled VehiclesRepair Garages and Motor Fuel Dispensing Facitlies Motor vehicle Fuel Dispensing FacilitiesStorage of Tires $ 284.00Places of Assembly $ 378.00Pyrotechnical Special Effects $ 662.00Spray Booths/ Dipping OperationsLithium Batteries

Page 21 of 22 ends

790
Table Comparing Existing and Propsoed Fire Fees 10/2024 DESCRIPTION PLAN CHECK INSPECTION Based on Hours New Plan Check New Inspection $ 189.00 $ 378.00
actual cost from
contractor
$ 189.00$ 378.00
actual cost from
contractor

HOURS RATE
1 $ 1891.5 $ 1892 $ 1892.5 $ 1893 $ 1893.5 $ 1894 $ 1894.5 $ 1895 $ 1895.5 $ 1896 $ 1896.5 $ 1897 $ 1897.5 $ 1898 $ 1898.5 $ 1899 $ 1899.5 $ 18910 $ 189 Hazard Reduction Inspection (per inspection)Hazard Reduction Abatement Cost Recovery Fire Fees for Hazard Reduction (Only if under Riverside County Contract) Hazard Reduction Inspection (per inspection)Hazard Reduction Administrative FeeHazard Reduction Abatement Cost Recovery Fire Fees for Tumbleweed Abatement (Only if under Riverside County Contract) $ 567 $ 567.00 $ 662 $ 661.50 $ 756 $ 756.00 $ 851 $ 850.50 $ 945 $ 945.00 $ 1,040 $ 1,039.50 $ 1,134 $ 1,134.00 $ 1,229$ 1,418 $ 1,417.50 $ 1,512 $ 1,512.00 $ 1,607 $ 1,606.50 $ 1,701 $ 1,701.00 $ 1,796 $ 1,795.50 $ 1,890 $ 1,890.00

ADOPTED HOURLY RATE (OFFICE OF THE FIRE MARSHAL)
$ 1,323.00 $ 1,228.50
$ 1,323
$ 473 $ 472.50
TOTAL
$ 189 $ 189.00 $ 284 $ 283.50 $ 378 $ 378.00
Hazard Reduction Administrative Fee

Page 22 of 22 ends

791

AFFIDAVIT OF PUBLICATION
Record Gazette
218 N. Murray St., Banning, CA 92220
Proof of Publication
(2015.5 C.C.P.)
2024 09 24_PHN - Fire Fees Update
___________________________________________________
State of California )
County of Riverside ) SS.

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer and publisher of Record Gazette, a newspaper published in the English language in the City of Banning, County of Riverside, and adjudicated a newspaper of
general circulation as defined by the laws of the state of California by the Superior Court of the County of Riverside, under the date October 14, 1964, Case No. 54737.

That the notice, of which the annexed is a copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

Oct 4, 2024,Oct 11, 2024
Executed on: ____________________
At City of Banning, California
I ceritfy (or declare) under penalty of perjury that the foregoing is true and correct.
___________________________________________________
Signature
2024 09 24_PHN - Fire Fees Update | Page 1 of 2
October 11, 2024
792
2024 09 24_PHN - Fire Fees Update | Page 2 of 2
793

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Public Works Director
MEETING DATE: October 22, 2024
SUBJECT: Consideration of Resolution 2024-169, Approving Electric Rate Increases and Revisions to Certain Electric Rates and Tariffs
RECOMMENDATION:

Adopt Resolution 2024-169.

BACKGROUND:

On June 25, 2024, staff reported on the lowering of the Banning Finance Authority's Outstanding Electric System Revenue Bond rating, see staff report attached hereto. In summary, the City’s outstanding Electric System 2015 Refunding Revenue Bonds (current outstanding balance: $20,880,000) underlying rating was downgraded from A- to BB due to two primary factors:

1. Lack of proactive rate setting: while the electric rates underwent various restructures, the rates have not been increased for the purpose of generating additional revenue since 2013.

2. The use of interfund borrowing to meet financial obligations: due to increases in power purchase costs, operating expenses and accelerated investments in capital improvements, the Banning Electric Utility’s cash balance fell below reserve policy and has been supplemented by other City funds.

During the June 25, 2024 discussion, City Council provided direction for staff to prepare different rate increase options. On August 27, 2024, staff returned (see attached staff report) with four options:

1. Option 1: No rate increase; do nothing.

2. Option 2: A 13% rate increase in FY 2025 to cover the annual deficit only.

3. Option 3: A 64% rate increase in FY 2025 (Option 3A) or a 22% rate increase in FY 2025 and FY 2026 (Option 3B) to cover the annual deficit, brings cash balance to positive and avoids debt coverage covenant default.

4. Option 4: A 13% rate increase in FY 2025 to cover the annual deficit, bring cash balance to positive and avoids debt coverage covenant default. This option replenishes cash with $10M bond revenue.

Although the majority of City Council supported Option 3B, two City Councilmembers (Flynn and Minjares) requested to see a modified Option 3B, that would include increases spread over three years rather than two years.

On September 24, 2024, staff presented three electric rate increase options for City Council’s consideration:
794

1. Option 3B: Same as described above, although updated to reflect an increase of 22.7% each year in FY 2025 and FY 2026.

2. Option 3C: 14.7% rate increase each year in FY 2025, FY 2026 and FY 2027 to cover the annual deficit, bring cash balance to positive and avoids debt coverage covenant default.

3. Option 4B: 13.9% rate increase per year in FY 2025 and FY 2026 to cover the annual deficit, bring cash balance to positive and avoids debt coverage covenant default. This options is similar to Option 4 described above, although revised to rely on $6M in bond revenue made up of $3.8M in taxable financing and $2.2m in tax exempt financing.

In concluding the discussion, Council majority supported Option 4B.

If approved, the following rates and tariffs will be adjusted as follows (see Exhibit “A” for revised rate and tariff pages in their entirety; all others remain unchanged):

Residential Service (RS-1)
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$30 $34 $39
Energy Charge – per
kWh
$0.1421 $0.1619 $0.1843
General Service Single Phase (GS-1)
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$58.50 $67 $76
Energy Charge – per
kWh
$0.1202 $0.1369 $0.1559
Small Commercial Multi-Phase (SC-1)
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$58.50 $67 $76
Energy Charge – per
kWh
$0.1202 $0.1369 $0.1559
Multi-Phase Service
Meter Charge
$3.97 $4.52 $5.15
Interruptible Well Service (IW-1)
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$300 $342 $389
Energy Charge – per
kWh
$0.1052 $0.1198 $0.1365
Demand Charge – per
kWh
$13.50 $15.38 $17.51
Medium Commercial Service (MC-1)
795
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$200 $228 $259
Energy Charge – per
kWh
$0.1105 $0.1259 $0.1434
Demand Charge – per
kWh
$17.05 $19.42 $22.12
Industrial Service (IS-1)
Current 11/1/2024 11/1/2025
Basic Service Charge –
per meter
$400 $456 $519
Energy Charge – per
kWh
$0.1010 $0.1150 $0.1310
Demand Charge – per
kWh
$14.50 $16.52 $18.81
Street Lighting Service (SL-1)
Current 11/1/2024 11/1/2025
Per Street Light $8.45 $9.62 $10.96
Security Lighting Service (SL-2)
Current 11/1/2024 11/1/2025
100 Watt Equivalent LED $9.72 $11.07 $12.61
250 Watt Equivalent LED $24.30 $27.68 $31.52
100 Watt Sodium Vapor $19.43 $22.13 $25.21
150 Watt Sodium Vapor $29.15 $33.20 $37.82
175 Watt Sodium Vapor $34.00 $38.73 $44.11
200 Watt Sodium Vapor $38.87 $44.27 $50.43
250 Watt Sodium Vapor $48.58 $55.33 $63.02
400 Watt Sodium Vapor $77.73 $88.53 $100.84
20 Foot or 35 Foot Wood
Pole (City owned)
$4.01 $4.57 $5.20
JUSTIFICATION:

Banning Electric Utility’s (“BEU”) cash balance has decreased significantly in recent years due to a combination of capital spending and inflationary pressures. Over Fiscal Years 2020-21 through 2022-23, BEU spent $10 million per year on average toward capital projects. Additionally, while BEU has historically been able to generate sufficient operating revenues to cover operating expenses, in each of the last three fiscal years – 2022, 2023 and 2024 – operating expenses have been greater than operating revenues. One driver behind the increase in operating expenses is power purchase costs, which increased 31% from 2019 to 2023.

As a result, BEU’s unrestricted cash and investment balance decreased significantly from over $18 million in FY 2019 to negative $9.5 million in FY 2024. Because operating expenses have been greater than revenues in the last three years and cash balances are negative, BEU has needed to borrow from 796
other City funds.

BEU’s capital improvement plan has been drastically reduced with the intent of reducing expenditures and impacts the required electric rate increase, evident that the rate increases are not in excess of the revenue requirements reasonably necessary to operate the City’s electric utility.

FISCAL IMPACT:

If approved, the first rate increase of 13.9% would become effective on November 1, 2024 and the second rate increase of 13.9% would become effective on November 1, 2025. The rate increase will generate sufficient revenue to cover all of Banning Electric Utility expenses including: general administrative services; services rendered by other city departments in support of the Banning Electric Utility; additions and betterments to the electric utility system; the amortization or depreciation of obsolete facilities within the electric utility system; any and all bonded indebtedness incurred in the construction or extension of the electrical utility system, including principal and interest thereof; and a reasonable reserve fund to provide for unforeseen contingencies.

The proposed electric rate increases will result in approximately $2.5M in additional revenue in FY 2025 and $4.1M in additional revenue in FY 2026.

ALTERNATIVES:

1. City Council could elect to reject staff’s recommendation and no pursue an electric rate increase.

This alternative would result in further degradation of BEUs cash balance as well as impact the City overall cash position. This alternative may also lead to further lowering of BEU’s bond rating.

2. City Council could elect to reconsider the previous electric rate increase options or request another be explored. This alternative will result in further degradation of BEU’s cash balance until rate increases are approved. This alternative may also lead to further lowering of BEU’s bond rating.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution 2024-169, Electric Rates and Tariffs.docx

2. Exhibit A - Revised Electric Rates and Tariffs

3. 6.25.24 Staff Report Lowering of Bond Rating.pdf

4. 8.27.24 Electric Rate Increase Options Staff Report.pdf

5. 8.27.24 Electric Rate Increase Power Point NHA Advisors.pdf

6. 9.24.24 Electric Rate Options.pdf

7. Affidavit - Public Notice of Electric Rates Increase.pdf 797
Resolution 2024-169

Page 1 of 4 ends

RESOLUTION 2024-169

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,

APPROVING ELECTRIC RATE INCREASES AND REVISIONS TO CERTAIN ELECTRIC

RATES AND TARIFFS
WHEREAS, the City of Banning owns and operates a municipal electric utility known as the Banning Electric Utility (BEU); and
WHEREAS, the purpose of BEU is to provide electric power generation and electrical energy procurement, transmission and delivery of electrical energy, retail electrical energy distribution, customer attraction and retention of economic development and load stability, metering, customer billing and energy efficiency services; and WHEREAS, the City Council has the authority to establish and adjust electric utility tariffs, charges, general provisions, and rate riders; and
WHEREAS, BEU must ensure that it generates sufficient revenues to pay for expenses such as general administrative services; services rendered by other City departments in support of BEU; additions and betterments to the electric utility system; the amortization or depreciation of obsolete facilities within the electric utility system; any and all bonded indebtedness incurred in the construction or extension of the electrical utility system, including principal and interest thereof; and a reasonable reserve fund to provide for unforeseen contingencies; and WHEREAS, since Fiscal Year 2020/2021 BEUs cash balance has decreased significantly due to a combination of capital spending and inflationary pressures resulting in the borrowing from other City funds; and
WHEREAS, City Council was presented with several electric rate increase options and analyses of said options that were designed to cover the annual deficit, bring cash balances to positive and avoid bond debt coverage covenant default; and WHEREAS, the electric rate increases, which are not in excess of what is required to meet the financial goals of BEU and avoids discrimination by applying the increases equally to all customer classes, include an increase of 13.9% effective on November 1, 2024 and a second rate increase of 13.9% effective on November 1, 2025; and WHEREAS, only those electric rates and tariffs, attached hereto as Exhibit “A”, are revised and all others remain unchanged and effective; and
WHEREAS, the electric rates and tariff revisions will become effective on November 1, 2024.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves the electric rate increases and revisions to certain electric rates and tariffs as shown in Exhibit “A”. The City Council is not taking action to amend any other electric rates set forth in the electric utility rate schedules (tariffs) as result of approving the increased electric rates set forth in Exhibit “A”. Those electric rates in the electric utility rate 798
Resolution 2024-169

Page 2 of 4 ends

schedules (tariffs) that are not modified by Exhibit “A” to this Resolution shall continue and remain in effect unless and until modified by resolution or other action of the City Council.

SECTION 2. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 22nd day of October 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita R. Young, City Attorney
Richards, Watson & Gershon
799
Resolution 2024-169

Page 3 of 4 ends

CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-169, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 22nd day of October 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
800
Resolution 2024-169

Page 4 of 4 ends

EXHIBIT A
Revised Electric Rates and Tariffs
801
General Provisions
GP‐1
Issued: October 22, 2024 Effective: November 1, 2024
City of Banning Electric Utility (BEU)
Electric Tariff
Resolution 2024‐169
GENERAL PROVISIONS:

Revisions and Changes: By Resolution 2024-169, the City of Banning City Council adopts and authorizes revisions and changes as follows (all unchanged tariffs and rates remain effective):

Power Factor Correction <90% PF (no change)
Power Cost Adjustment Clause (no change)
Low-Income Discount (no change)
Medical Discount (no change)
Distributed Self-Generation Buy-back (no change)
Economic Development Discount (no change)
Electric Vehicle Public Charging (no change)
Mobile Home Parks – Master Metered (no change)
Public Benefit Charge (no change – 2.85% of revenue)
Residential Service (increased)
Net Energy Metering Surplus Production (no change)
Small Commercial Multi Phase < 50 kVa Service (increased) Interruptible Well Service (increased)
Medium Commercial Service >50 kVa to <500 kVa (increased) Industrial Service >500 kVa (increased)
Security Light Service (increased)
Street Light Service (increased)
Master Meter Mobile Home Parks: BEU provides electric service to several mobile home parks within the City’s assigned area of service. Based upon the mobile home park’s individual service needs, BEU will provide the appropriate service voltage and characteristics to accommodate the consolidated load. The service characteristics will dictate the rate schedule to be applied to a mobile home park, but in no case will the residential service rate schedule or variation thereof apply to a master metered mobile home park.

Electric Vehicle Charging: BEU does not offer custom electric vehicle charging rates.

Rates by Resolution: The City Council reserves the right to change any Rate Schedules by resolution at the City Council’s sole discretion.
802
City of Banning Electric Utility (BEU) Residential Service Electric Tariff RS-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Residential Service (RS-1)
Rate Designation: Single-phase electrical service for residential, single family, accessory dwelling units, or mobile home, as primary residences; alternately a building of multiple occupancy which shares common walls and/or floors and ceilings with other single-family dwellings.

Class of Service: 120/240 volts, single-phase, three wire, alternating current, 60 Hertz per second, not to exceed a 400-amp service panel; alternately 120/208volts for multiple occupancy single-family dwellings.

Service Area: All areas within the City’s assigned area of service.

Availability: Applicable for single-phase service through a single meter to a customer using BEU’s standard service based upon service availability at a proposed location, the size of the load, and the operating characteristics of the customer’s equipment.

BEU reserves the right to limit the capacity of any single-phase service when, in its judgment, such service will impair the service to other customers, or such service shall exceed the capacity of BEU’s facilities.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $34 per meter $39 per meter
Energy Charge – all kWh $0.1619 per kWh $0.1843 per kWh Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Low-income Discount, Medical Discount, Net Energy Metering Surplus Production, Distributed Self-Generation Buyback, and Power Factor Correction charges. 803
City of Banning Electric Utility (BEU) General Service Single Phase Electric Tariff GS-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: General Service Single Phase (GS-1)
Rate Designation: Single-phase electrical service for small business, cottage industries, low use utility services such as irrigation pedestals, telecommunications support, commercial street lighting, and cable television types of services; not to exceed 12,500 kWh per month Class of Service: 120/240 volts, single-phase, three wire, alternating current, 60 Hertz per second, not to exceed a 400-amp service panel; alternately 120/208volts for multiple occupancy business units.

Service Area: All areas within the City’s assigned area of service.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $67 per meter $76 per meter
Energy Charge – all kWh $0.1369 per kWh $0.1559 per kWh Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

The bill is due upon receipt and becomes delinquent 20 days after the billing cycle date.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Net Energy Metering Surplus Production, Distributed Self-Generation Buy-back, and Power Factor Correction charges.
804
City of Banning Electric Utility (BEU) Small Commercial Multi Phase Electric Tariff SC-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Small Commercial Multi-Phase (SC-1)
Rate Designation: Multi--phase electrical service for a variety of small service applications; available to most revenue classes except residential service Class of Service: 120/208 volts, multi-phase, four wire, alternating current, 60 Hertz per second; not to exceed a 400-amp service panel or 50kW monthly billing demand; other voltages and configurations may apply but are being phased out.

Service Area: All areas within the City’s assigned area of service.

Availability: Applicable for multi-phase service through a single meter to a customer using BEU’s standard service based upon service availability at a proposed location, the size of the load, and the operating characteristics of the customer’s equipment.

BEU reserves the right to limit the capacity of any multi-phase service when, in its judgment, such service will impair the service to other customers, or such service shall exceed the capacity of BEU’s facilities.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $67 per meter $76 per meter
Energy Charge – all kWh $0.1369 per kWh $0.1559 per kWh Multi-phase Service $4.52 per meter $5.15 per meter
Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

Billing Demand: Billing Demand shall be the kilowatts of measured maximum demand during a billing cycle; the maximum demand will be the highest quarter-hour block (15-minute interval) of measurement in any one hour during the billing cycle. The maximum demand shall be determined to the nearest 1/100 kW.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Net Energy Metering Surplus Production, Distributed Self-Generation Buy-back, and Power Factor Correction charges. 805
City of Banning Electric Utility (BEU) Interruptible Well Service Electric Tariff IW-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Interruptible Well Service (IW-1)
(Wells: C-2, C-3, C-4, C-5, C-6, M-10, M-11, M-12, Well 7, and Well 8) Rate Designation: Generally, multi-phase electrical service for transmitting or pumping water for the City’s water system
Class of Service: a variety of 208, 240, 277, or 480 voltages, multi-phase, three or four wire, alternating current, 60 Hertz per second.

Service Area: All areas within the City’s assigned area of service.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Auxiliary/Emergency Generation Equipment: Auxiliary or emergency generation equipment is the customer-owned generation equipment normally used for auxiliary, emergency, or standby electrical generation purposes. Auxiliary or emergency generation equipment may be used by a customer to serve that customer’s load only during a Period of Interruption (CASIO Flex Alerts), an only when such loads are isolated from the BEU system.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $342 per meter $389 per meter
Energy Charge – all kWh $0.1198 per kWh $0.1365 per kWh Demand Charge – all kW $15.38 per kW $17.51 per kW
Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

Billing: The bill is the amount computed when applying the above rates to the number of kWhs consumed plus a power cost adjustment factor and all other applicable riders and fees per the tariff. Bills are rendered on a cycle basis, on or about the same day of every month. The bill is due upon receipt and becomes delinquent 20 days after the billing cycle date. 806
City of Banning Electric Utility (BEU) Interruptible Well Service Electric Tariff IW-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Net Energy Metering Trueup, Distributed Self-Generation Buy-back, and Power Factor Correction charges. 807
City of Banning Electric Utility (BEU) Medium Commercial Service Electric Tariff MCW-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Medium Commercial Service (MC-1)
Rate Designation: Generally, multi-phase electrical service for a variety of service applications; available to most revenue classes except residential service Class of Service: 208, 277, or 480 voltages, multi-phase, four wire, alternating current, 60 Hertz per second; exceeds a 400-amp service panel and greater than 50kW monthly billing demand but less than 500kW monthly billing demand; other voltages and configurations may apply but are being phased out.

Service Area: All areas within the City’s assigned area of service.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $228 per meter $259 per meter
Energy Charge – all kWh $0.1259 per kWh $0.1434 per kWh Demand Charge – all kW $19.42 per kW $22.12 per kW
Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates. 808
City of Banning Electric Utility (BEU) Medium Commercial Service Electric Tariff MCW-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Net Energy Metering Surplus Production, Distributed Self-Generation Buy-back, and Power Factor Correction charges. 809
City of Banning Electric Utility (BEU) Industrial Service Electric Tariff IS-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Industrial Service (IS-1)
Rate Designation: Multi-phase electrical service for a variety of large commercial, manufacturing, cultivation, logistic, and industrial applications Class of Service: 208, 277, or 480 voltages, multi-phase, four wire, alternating current, 60 Hertz per second; exceeds an 800-amp service panel and greater than 500kW monthly billing demand; other voltages and configurations may apply but are being phased out.

Service Area: All areas within the City’s assigned area of service.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
Basic Service Charge $456 per meter $519 per meter
Energy Charge – all kWh $0.1150 per kWh $0.1310 per kWh Demand Charge – all kW $16.52 per kW $18.81 per kW
Minimum Charge: The minimum charge per billing cycle will be the Basic Service Charge.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: Power Cost Adjustment Factor, Public Benefits, Net Energy Metering Surplus Production, Distributed Self-Generation Buy-back, and Power Factor Correction charges. 810
City of Banning Electric Utility (BEU) Security Lighting Service Electric Tariff SL-2
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Security Lighting Service (SL-2)
Rate Designation: Applicable to customers for outdoor area security lighting service furnished from dusk to dawn, supplied from existing overhead facilities. The Utility will install, own, operate and maintain the complete lighting installation, including customer owned support. Security Lighting Service is not available for new service as of May 2013.

Service Area: All areas within the City’s assigned area of service.

Rates:

Per Lamp
Per Month
(Fixture installed on existing support)
11/01/2024 11/01/2025
100 Watt Equivalent LED $11.07 $12.61
250 Watt Equivalent LED $27.68 $31.52
100-Watt Sodium Vapor (9,500 Lumen) $22.13 $25.21
150-Watt Mercury Vapor (16,000 Lumen) $33.20 $37.82
175-Watt Sodium Vapor (7,000 Lumen) $38.73 $44.11
200-Watt Sodium Vapor (16,000 Lumen) $44.27 $50.43
250-Watt Sodium Vapor (25,000 Lumen) $55.33 $63.02
400-Watt Mercury Vapor (20,000 Lumen) $88.53 $100.84
Per Pole
Pole (Department owned wood pole installation) Per Month 11/01/2024 11/01/2025
20’ or 35’ Wood Pole $4.57 $5.20
Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: No rate riders are applicable.

Special Conditions:

1. Voltage: Service under this schedule will be supplied at a single-phase voltage from the Electric Utility’s existing overhead lines.

2. Rates: The above lamp rates are applicable to Utility-owned outdoor area lighting equipment mounted on existing Utility owned poles or on customer owned supports acceptable to the Utility.

3. Standard Equipment: Lighting equipment will consist of a Utility standard 811
City of Banning Electric Utility (BEU) Security Lighting Service Electric Tariff SL-2
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

overhead outdoor sodium vapor luminaries with photo electric switch, support and one overhead service drop not to exceed 100’.

4. Height: Mounting height of 175-watt lamp will be approximately 25 to 30 feet, and mounting height of 400-watt lamps will be approximately 30 feet.

5. Nonstandard Installation: A customer who requests more than one wood pole, or other than wood poles shall install the poles at the customer’s expense. The standard sodium vapor luminaire will be provided and installed by the Utility.

6. Lump Sum Payment: Customers who do not wish to pay monthly pole charge, may pay a non-refundable amount for the installation of standard wood pole or other pole as the customer desires. Pole will remain the property of the customer at termination of service.

7. Service Contract: A contract for a period of one year will be required for initial installation of facilities under this schedule and will remain in effect from month to month thereafter subject to termination or cancellation under terms stated therein.

8. Maintenance: Lamp maintenance will be done during regular working hours as soon as reasonably possible after the customer has notified the Utility of service failure. Monthly bills will not be adjusted because of a lamp outage.

9. Relocation of Poles: Relocation of an outdoor area lighting installation because of government requirements will be made providing the customer pays the entire cost of such relocation.

10. Billing: Billing for an installation will be to only one account. Prorated billings to more than one account for a unit, or a combination of units will not be made. If the customer prefers to pay on an annual basis, payment shall be done and payable in advance.

11. All Night Service: The Utility’s dusk to dawn, all night service is based on a lighting period of approximately 4,380 hours per year.

12. Location of Poles: Poles will be located in areas where they may be serviced by truck.

13. Waiver: Customer must execute a waiver to participate in the Security Lighting Service program.

14. Termination: The City reserves the right to terminate the Security Lighting Service program or remove a customer from the program at any time at the City’s sole discretion.
812
City of Banning Electric Utility (BEU) Street Lighting Service Electric Tariff SL-1
Resolution 2024-XXX
Issued: October 22, 2024 Effective: November 1, 2024

Rate Schedule: Street Lighting Service (SL-1)
Rate Designation: Unmetered lighting such as streetlights, park lights, freeway lights, decorative pathway lights, or other lighting fixtures.

Class of Service: 120, 240, or 277 volts, single-phase, alternating current, 60 Hertz per second; may be fused, operated by a disconnect, or through a service panel.

Service Area: All areas within the City’s assigned area of service.

Availability: Generally approved by the City of Banning Public Works for public safety.

Service hereunder is subject to the provision of BEU’s Electric Service Standards, Rules and Regulations, this tariff, and the terms of the Application for electric service.

Monthly Rate:
11/01/2024 11/01/2025
$9.62 per light $10.96 per light
Minimum Charge: No minimum charge applicable.

Billing: The bill is the amount computed when applying the above rates to the number of lights, and all other applicable riders and fees per the tariff. Bills are rendered on a cycle basis, on or about the same day of every month. The bill is due upon receipt and becomes delinquent 20 days after the billing cycle date.

Energy Taxes and Surcharges: All applicable local, county, state, and federal taxes or surcharges or franchise fees may be included in the above rates or may be added to the rates.

Applicable Riders: No rate riders are applicable.
813

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Public Works Director
Art Vela, Public Works Director
MEETING DATE: June 25, 2024
SUBJECT: Discussion Regarding the Lowering of the Banning Financing Authority’s Outstanding Electric System Revenue Bond Rating and Consideration of an Interim Electric Rate Adjustment
RECOMMENDATION:

Discussion and direction regarding an interim electric rate adjustment.

BACKGROUND:

Electric System Revenue Bonds
In 2007 the Banning Finance Authority, through the City of Banning, issued a series of electric system revenue bonds (“Electric System Series 2007 Bonds”) to assist in the financing of improvements including new substations, circuit breakers, underground feeders, land and other improvements. The amount of the Electric System Series 2007 Bonds was $45,790,000.

In 2015, City Council (acting as the Banning Finance Authority) adopted Resolution 2015-02FA authorizing the refunding of the revenue bonds (“Electric System 2015 Refunding Revenue Bonds”) with the intent to take advantage of historic low interest rates which were to save the City approximately $1,050,000. At the time of the refunding, the Electric System Series 2007 Bonds had an outstanding aggregate principal amount of $40,045,000. The Electric System 2015 Refunding Revenue Bonds were authorized in an amount of not-to-exceed $45,000,000.

For clarity purpose, a revenue bond is a type of municipal bond. Municipal bonds act like loans, with bondholders becoming creditors. In exchange for borrowed funds (i.e. funds invested by bondholders) the bondholders/investors are promised interest on their invested amount. Revenue bonds are secured by revenues generated by the issuer which, in the City’s case, is the City’s Electric Utility.

Electric System 2015 Refunding Revenue Bonds Ratings
Credit ratings are provided by credit rating agencies, such as S&P Global, that specialize in evaluating credit risk. Credit ratings are forward looking and provide investors with independent opinions about an issuer’s, such as a corporation or state/city government, to meet its financial obligation. Typically, ratings are expressed as letter grades that range from ‘AAA’ to ‘D’ to communicate the agency’s opinion of relative level of credit risk.

From the S&P Global’s website: “Our studies have shown that the higher the ratings, the lower the default rates, and vice versa. For example, our historical statistics show a 3-year cumulative default rate for a ‘BBB’ rated company of 0.91%, vs. 4.17% for a ‘BB’ rated one, 12.41% for a ‘B’ rate one and

45.67% for a ‘CCC/CC’ rate one.”
1 814
On March 20, 2024 the City of Banning received notice from S&P Global that they had lowered the underlying rating from ‘A-’ to ‘BBB’ and put on Credit Watch, see attached correspondence and back up analysis.

On May 2, 2024, the City of Banning received notice from S&P Global that they had again lowered the underlying rating from ‘BBB’ to ‘BB’ with an “outlook for this rating as negative”, see attached correspondence and back up analysis (“May 2024 S&P Analysis”).

In summary, according to the May 2024 S&P Analysis the recent downgrading of the Electric System 2015 Refunding Revenue Bonds was a result of the following:

The use of interfund borrowings to meet financial obligations.

Lack of proactive rate setting.

May 2024 S&P Analysis also describes that the outlook is negative which “reflects our view that rates are not anticipated to be raised before fiscal-year end 2025.

Fiscal Year 2024/2025 Budget
In an effort to improve the Banning Electric Utility's financial position the City has taken to following approach reflective in the planned Fiscal Year (FY) 2024/2025 budget:

Continued implementation of the Power Cost Adjustment Factor (PCAF; Estimated at $1.1M). The PCAF began on January 1, 2022.

Continued to sell Renewable Energy Credits (RECs; Estimated at $2.48M) Reduced the utility’s Capital Improvement Plan from $16.4M to $1.1M Collection of delinquencies ($1.9M). Shutoff notices resumed in April, 2024.

With the above changes the Electric Utility is projected to have a FY 2024/2025 budget shortfall of $1,200,130.

It is also projected that the Electric Utility will have a FY 2025/2026 budget shortfall of $1,135,060.

For reference, the Electric Utility will have a budget shortfall of approximately $4.7M at the end of FY 2023/2024. Although the utility is expecting a $2.5 million Aid In Construction payment to be recorded before June 30, 2024, which will reduce that expected net loss to approximately $2.2 million.

One option for City Council’s consideration would be an interim rate adjustment in order to avoid further deterioration of the Banning Electric Utility’s cash position, which is projected to be negative $8.8M at the end of FY 2023/2024. If City Council provides direction to staff to proceed with this option, staff will present an analysis and recommendation to City Council at the August 27, 2024 City Council meeting.

The rate adjustment would be considered “interim” while staff hires a consultant to develop a complete Cost of Service (COS)/Rate Study, which would likely be completed during the fourth quarter of FY 2024/2025.

JUSTIFICATION:

According to the May 2, 2024 S&P Analysis, the Electric System 2015 Refunding Revenue Bonds rating could be further downgraded if the Banning Electric Utility is not able to rebuild and maintain a sustained track level of positive reserves and improve its structural balance.

The May 2024 S&P Analysis indicates that the “negative outlook” is a result of rates likely not being raised prior to fiscal year end 2025.
2 815
FISCAL IMPACT:

The projected budgetary shortfalls for FY 2024/2025 and FY 2025/2026 will continue to negatively impact the utility’s cash balance, which may result in a higher rate increase in the future.

ALTERNATIVES:

Do not proceed with Interim Electric Rate Adjustment.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution No. 2015-02 FA Electric Refunding Bonds.pdf

2. March 2024 S&P Rating Downgrade.pdf

3. May 2024 S&P Rating Downgrade.pdf

4. S&P Rating Scale.pdf

5. FY25 and FY26 Electric Budgets,pdf.pdf
3 816

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819

BANNING ELECTRIC UTILITY

EMERGENCY RATE INCREASE SCENARIOS

PRESENTATION TO CITY COUNCIL
August 27, 2024
820
2 Background & Objective
Electric Utility’s most recent utility‐wide rate increase occurred in 2013 •Most recent rate adjustment occurred in 2022 when some customer categories’ rates increased while others decreased, but there was no net increase in the overall rates During the last 10 years, the Electric Utility has seen increasing pressure from operating expense inflation, power purchase costs, and capital expenditures •Pressures have resulted in a negative ~$9 million fund balance and have required the Electric Utility to borrow from other funds to make required debt service payments on outstanding debt Electric Utility’s negative cash balance and declining debt service coverage causedS&P to lower the rating from “A‐ to “BB” – (i.e., “junk” bonds rating)Electric Utility is evaluating a one‐time emergency rate remedy the negativeElectric Utility cash balance and improve debt service coverage •Planned 2025 cost of service study will provide additional background and context and a multi‐year rate recommendations
821
3 ‐$15‐$10
‐$5
$0$5
$10$15$20$25$30
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Est.)
Millions
Unrestricted Cash & Investments
$0$2$4$6$8
$10$12$14
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Est.)
Millions
Acquisition & Construction of Capital Assets
Financial Pressures on the Electric Utility Historically (2015‐2021), the Electric utility has been able to generate sufficient operating
revenues to cover operating expenses
 However, the last three years (2022, 2023, and
2024) there were not sufficient operating
revenues to cover operating expenses
 From 2019 to 2023, power purchase costs increased
31%
 At the same time, the Electric utility accelerated
its capital improvement program in FYEs 2021,
2022, and 2023
 Average during that 3‐year period was $10 million
per year
 Average during the prior 6‐year period was $3.5M
per year
 Net Result: Electric utility cash balances have
decreased quickly and significantly; the Electricutility is not generating sufficient revenues to cover operations, so cash balance is expected tokeep decreasing $3.5M Annual Avg $10M Annual Avg
Source: City’s AuditedFinancials & OpenGov (2024)
$11M Cash
Reserve Policy
Negative ~$9.6M balance
822
4 Financial Pressures on Other City Funds Cash in other City funds allow the Electric Utility to continue operations  Current situation with a negative cash balance is only possible because of inter‐fund loans to pay Electric Utility operating costs
 General Fund’s capacity to support the Electric Utility is limited and General Fund Balances have been decreasing
 For FYE 2023 General Fund cash was $4.5M
 $1.1M pooled cash & investments $3.5M due from other funds  Marked decrease from FYE 2018 when General Fund pooled cash was >$13 million General Fund cannot / should not continue to support the Electric Utility  Unlike the Electric Utility, Banning Utility Authority’s Water and Wastewater Funds are subject to California Proposition 218
 Utility funds cannot send cash to the Electric Utility without exposing the City to risk of legal challenge
823
5 Credit Rating Agency Actions and Concerns Rating Analysts focus on several things including cash
balances and debt service
coverage
 Negative outlook means they
intend to further downgrade
the credit rating if correctiveactions are not taken
 While S&P credit rating will
not impact the interest rates
on the outstanding 2015Bonds, a “junk” bond creditrating limits future access to capital markets and increasesthe cost of issuing debt in the future
S&P Credit Rating Actions on 2015 Bonds
September 2015 (Issuance) “A‐”/Stable
June 2022 (Rating Review) “A‐”/Stable
March 2024 (Rating Review) “BBB”/Negative
May 2024 (Rating Review) “BB”/Negative (“Junk” bonds)
Concerns Cited by S&P in May 2024 Report:• Failure to implement proper financial controls • Lack of effective risk management and oversight• Use of interfund borrowings to meet obligations • Drastic decreases in liquidity and coverage
Lack of action to raise electric rates could result in
further rating reduction
824
6 Electric Rates within Context of Other California Utilities 2023 Energy Institute at Haas study compared cost per kWh paid by non‐CARE resident households in California, assuming 500 kWh/month Average cost statewide was $0.192 per kWh; median was $0.178 per kWh Study calculated Banning’s rate at $0.1844 per kWh, to be below average Banning
Source: Energy Institute at Haas; underlying dataset Link As of June 2024, the
average SCE
residential user pays
$193/month
(Per SCE: 520 kWh/month usage,
typical usage profile, summer
service)
BEU residential
customers pay
~$111/month for
the same amount of
energy
825
7 Debt Service Coverage
 Electric Utility made a covenant with bond investors in 2015 that it would raise electric rates as needed to generate net revenues at least 120% of annual debt service  Net Revenues = gross revenues ‐ operating expenses (and does not include depreciation or non‐ cash expenses)
 Failure to maintain that 120% minimum debt service coverage (DSC) ratio is considered an event of default by bond investors and will result in further reductions in the rating  Except for FY 2018, Electric Utility has historically complied with DSC requirements, but preliminary calculations for FY 2024 indicate that a DSC covenant default is likely  Promise to bond investors is that in the event of a rate covenant default, the Electric Utility will take action to remedy that default
 Failure to remedy gives the bond trustee and bond owners certain rights, including the right to make the 2015 Bonds due and payable immediately (though in practice that is uncommon for aDSC covenant default) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* FYE
187% 161% 160% 63% 181% 122% 168% 170% 140% <50% Calculated DSC (Reported to Bond Investors) Minimum Required DSC 120% 120% 120% 120% 120% 120% 120% 120% 120% 120% Complies? Yes Yes Yes No Yes Yes Yes Yes Yes No
*FYE 2024 calculation is preliminary, final calculation will be provided to bond investors once the 2024 Audit is completed 826
8 Option 1: No Emergency Rate Increase & Complete a COSS in 2025 City is in the process of engaging a rate consultant for a full‐scale electric utility cost
of service study in FYE 2025
 City is also in process of updating the Electric
Master Plan
 Doing nothing now will not “stop the
bleeding” and will result in greater stress to
other City Funds (including the General Fund)
 Other City funds would need to continue to
subsidize the Electric Utility in FY 2025
 Electric Utility cash balance go further into the
negatives (estimated ‐$9.95M by FYE 2025)
 Bond covenant default is likely, which would
likely trigger a further credit rating downgrade
NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
Likely Outcomes Area of Concern
More negative by FY
End
Cash Balance
Credit Rating Likely downgrade
Bond Covenant Default
Covenants
Possible reduction
depending on other
funds’ ability to
subsidize EU operations
Service Levels
Option 1: Likely Impact on Key
Areas of Concern
827
9 Option 2: Raise Rates to Cover Operations and Essential Expenditures Only 13% FY 2025 rate increase is projected to cover operations, only essential CIP, and pay existing debtservice for the next two years Assumes rate increase is effective 10/1/24 Key assumption is that expenses are equal to or less than the FY 2025 operating budget
 Electric Utility’s cash balance remains negative at FYE 2025
 Keeps the Electric Utility Fund cash balance from
decreasing further
 But no reimbursement to other funds Credit concern remains in this area  Coverage projected to comply with 120% minimum
covenant in FYEs 2025 and 2026
 Partial mitigation of credit concern in this area
 While this option “stops the bleeding” it is only a
temporary solution until the Electric Utility adopts
long‐term rate increases
NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
Likely Outcomes Area of Concern
Slight improvement,
but still negative
Cash Balance
Credit Rating Neutral in near term
Avoid covenant
default (DSC
Compliance)
Bond
Covenants
Assumes service
levels in line with FY
2025 budget
Service Levels
Option 2: Likely Impact on Key
Areas of Concern
828
10 Option 3: Raise Rates & Revenues to Bring Fund Levels Up Over 1‐2 Years Electric Utility can raise rates to increase revenues and bring cash balances into the positive over the next two years Amount of rate increase will depend on the target balance and the length of time
 Credit Rating agency gave City a 2‐year window to improve cash  Benefits
 Electric Utility can repay other City funds Demonstrate action to rating agencies and bond investors City remains compliant with debt service coverage requirements  Downsides
 Negative cash balance condition continues to persist until balances recover slowly over next 2 years
 “Shock” rate increases may lead to higher delinquent accounts NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
Likely Outcomes Area of Concern
Improvement to
positive by Year 2
Cash Balance
Neutral in near term,
positive in the long
term
Credit Rating
Avoid covenant
default (DSC
compliance)
Bond
Covenants
Assumes service
levels in line with FY
2025 budget
Service Levels
Option 3: Likely Impact on Key
Areas of Concern
Over 1 Year Over 2 Years
Annual Rate Increase Needed 64% in FY 2025 22% per year Assumes first rate increase effective 10/1/2024
829
11 Option 4: Raise Rates to Support a Bond which Replenishes Cash Balances Similar to Option 2, a 13% FY 2025 rate increase is projected to cover operations, essential CIP, and pay
existing debt service for the next two years
 Assumes rate increase is effective 10/1/24
 Key difference from Option 2: ~$10 million from a
bond financing would allow immediate repayment toother City funds and would bring Electric Utility cash balances into the black
 Trade off would be long‐term debt service repayments Repayments would be structured to have no debt service payments to next two years, but long‐term electric rate planning will need to account for future debt service
 Bond financing would likely be unrated due to the
Electric Utility’s current credit rating
 Would also likely would need to be taxable given IRS
limitations on using tax exempt debt to reimburse an
issuer
 Taxable debt has higher interest rates than tax exempt debt
NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
Likely Outcomes Area of Concern
Rapid improvement
to positive cash
Cash Balance
Neutral in near term,
positive in the long
term
Credit Rating
Avoid covenant
default (DSC
compliance)
Bond
Covenants
Assumes service
levels in line with FY
2025 budget
Service Levels
Option 4: Likely Impact on Key
Areas of Concern
830
12 Summary and Next Steps
Option 1 Option 2 Option 3 Option 4
Maintain Services +
Replenish Cash with
~$10M Bond
Fund balance becomes
positive in 3‐4 months;
avoids debt coverage
covenant default in FY
2025
Maintain Services +
Replenish Cash with
Rate Revenues
Fund balance remains
negative for 12‐24
months; avoids debt
coverage covenant
default in FY 2025
Maintain Services
Fund balance remains
negative; avoids debt
coverage covenant
default in FY 2025
No Action
Fund balance remains
negative; likely debt
coverage covenant
default in FY 2025
Description
13% in FY 2025
(higher rate increases in
future years vs Option 2)
64% in FY 2025
OR
22%/year for 2 years
None 13% in FY 2025 Rate Increases
Needed
• City Council considers
rate increase atSeptember meeting
• Engage Rate
Consultant for 2025Cost of Service Study
• City’s financing team
brings request forauthorization to issuebonds at a future CityCouncil meeting • City Council considers
rate increase atSeptember meeting
• Engage Rate
Consultant for 2025Cost of Service Study
• City Council considers
rate increase atSeptember meeting
• Engage Rate
Consultant for 2025Cost of Service Study
• Engage Rate
Consultant for 2025Cost of Service Study
Key Next Steps
Note: NHA does not
recommend Option 1
NHA is not a rate consultant; these required rate increases areestimates, subject to a cost of service study 831
DISCUSSION / QUESTIONS?
832
APPENDIX: SUMMARY OF ANALYSIS
833
15 Draft Estimated
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 Assumed Rate Increases 4.7% 0.0% 0.0% 0.0% 0.0%Assumed Rate Increase Date 10/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Total Gross Revenues 34,167,255 35,346,961 37,292,549 37,592,549 35,520,209 35,520,209 35,520,209Total Operating Expenses 30,760,816 34,333,079 35,235,777 35,740,279 37,474,936 39,314,601 41,246,250 Net Revenues 3,406,439 1,013,882 2,056,772 1,852,270 (1,954,727) (3,794,392) (5,726,041) Debt
2015 Electric Revenue Bonds 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Placeholder
Total Debt Service 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Debt Service Coverage (1.20x Requirement) 1.40 0.42 0.85 0.76 (0.81) (1.56) (2.36) City's Reported Coverage (EMMA Filings) 1.25
Cash Balance Calculations
Net Revenues After Debt Service 981,645 (1,409,162) (366,272) (572,274) (4,377,020) (6,220,686) (8,149,054) Capital Expenditures 8,073,472 5,145,653 1,140,072 1,130,000 1,130,000 1,130,000 1,130,000 Other Cash Adjustments (2,101,693) 5,020,639 (350,000)             ‐ (350,000)                           ‐                           ‐ Net Revenues After Capital Expenditures and Transfers Out (4,990,134) (11,575,454) (1,156,344) (1,352,274) (5,507,020) (7,350,686) (9,279,054) Beginning Cash Balance 6,966,959 1,976,825 (9,598,629) (10,754,972) (12,107,246) (17,614,266) (24,964,953) Net change in Cash & Cash Equivalents (4,990,134) (11,575,454) (1,156,344) (1,352,274) (5,507,020) (7,350,686) (9,279,054) Ending Cash Balance 1,976,825 (9,598,629) (10,754,972) (12,107,246) (17,614,266) (24,964,953) (34,244,006) Projected
Summary Results for Option 1 (“Do Nothing”)
NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
NHA does not recommend this option
834
16 Draft Estimated
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 Assumed Rate Increases 13.0% 0.0% 11.0% 6.0% 6.0%
Assumed Rate Increase Date 10/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Total Gross Revenues 34,167,255 35,346,961 38,959,905 39,259,905 40,450,974 42,426,820 44,521,217Total Operating Expenses 30,760,816 34,333,079 35,235,777 35,740,279 37,474,936 39,314,601 41,246,250 Net Revenues 3,406,439 1,013,882 3,724,128 3,519,626 2,976,039 3,112,219 3,274,967 Debt
2015 Electric Revenue Bonds 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Placeholder
Total Debt Service 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Debt Service Coverage (1.20x Requirement) 1.40 0.42 1.54 1.45 1.23 1.28 1.35 City's Reported Coverage (EMMA Filings) 1.25
Cash Balance Calculations
Net Revenues After Debt Service 981,645 (1,409,162) 1,301,084 1,095,082 553,745 685,925 851,954 Capital Expenditures 8,073,472 5,145,653 1,140,072 1,130,000 1,130,000 1,130,000 1,130,000 Other Cash Adjustments (2,101,693) 5,020,639 (350,000)             ‐ (350,000)                           ‐                           ‐ Net Revenues After Capital Expenditures and Transfers Out (4,990,134) (11,575,454) 511,012 315,082 (576,255) (444,075) (278,046) Beginning Cash Balance 6,966,959 1,976,825 (9,598,629) (9,087,616) (8,772,534) (9,348,789) (9,792,864) Net change in Cash & Cash Equivalents (4,990,134) (11,575,454) 511,012 315,082 (576,255) (444,075) (278,046) Ending Cash Balance 1,976,825 (9,598,629) (9,087,616) (8,772,534) (9,348,789) (9,792,864) (10,070,910) Projected
Summary Results for Option 2 (“Maintain Operations ONLY”)Cash balance never gets positive under this scenario but hovers around current negative levels; this option has serious, negative implications for ability of other City funds to be repaid for amounts they have loaned the Electric Utility NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
835
17 Draft Estimated
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 Assumed Rate Increases 63.7% 0.0% 0.0% 0.0% 0.0%
Assumed Rate Increase Date 10/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Total Gross Revenues 34,167,255 35,346,961 49,169,526 49,469,526 47,397,186 47,397,186 47,397,186Total Operating Expenses 30,760,816 34,333,079 35,235,777 35,740,279 37,474,936 39,314,601 41,246,250 Net Revenues 3,406,439 1,013,882 13,933,749 13,729,247 9,922,250 8,082,585 6,150,936 Debt
2015 Electric Revenue Bonds 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Placeholder
Total Debt Service 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Debt Service Coverage (1.20x Requirement) 1.40 0.42 5.75 5.66 4.10 3.33 2.54 City's Reported Coverage (EMMA Filings) 1.25
Cash Balance Calculations
Net Revenues After Debt Service 981,645 (1,409,162) 11,510,705 11,304,703 7,499,957 5,656,291 3,727,923 Capital Expenditures 8,073,472 5,145,653 1,140,072 1,130,000 1,130,000 1,130,000 1,130,000 Other Cash Adjustments (2,101,693) 5,020,639 (350,000)             ‐ (350,000)                           ‐                           ‐ Net Revenues After Capital Expenditures and Transfers Out (4,990,134) (11,575,454) 10,720,633 10,524,703 6,369,957 4,526,291 2,597,923 Beginning Cash Balance 6,966,959 1,976,825 (9,598,629) 1,122,005 11,646,708 18,016,664 22,542,955 Net change in Cash & Cash Equivalents (4,990,134) (11,575,454) 10,720,633 10,524,703 6,369,957 4,526,291 2,597,923 Ending Cash Balance 1,976,825 (9,598,629) 1,122,005 11,646,708 18,016,664 22,542,955 25,140,878 Projected
Summary Results for Option 3A (“Recovery from Rates in 2025”) NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
836
18 Draft Estimated
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 Assumed Rate Increases 21.2% 21.2% 0.0% 0.0% 0.0%
Assumed Rate Increase Date 10/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Total Gross Revenues 34,167,255 35,346,961 40,603,984 47,510,365 45,438,025 45,438,025 45,438,025 Total Operating Expenses 30,760,816 34,333,079 35,235,777 35,740,279 37,474,936 39,314,601 41,246,250 Net Revenues 3,406,439 1,013,882 5,368,207 11,770,086 7,963,090 6,123,424 4,191,775 Debt
2015 Electric Revenue Bonds 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Placeholder
Total Debt Service 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,013 Debt Service Coverage (1.20x Requirement) 1.40 0.42 2.22 4.85 3.29 2.52 1.73 City's Reported Coverage (EMMA Filings) 1.25
Cash Balance Calculations
Net Revenues After Debt Service 981,645 (1,409,162) 2,945,163 9,345,542 5,540,796 3,697,130 1,768,762 Capital Expenditures 8,073,472 5,145,653 1,140,072 1,130,000 1,130,000 1,130,000 1,130,000 Other Cash Adjustments (2,101,693) 5,020,639 (350,000)             ‐ (350,000)                           ‐                           ‐Net Revenues After Capital Expenditures and Transfers Out (4,990,134) (11,575,454) 2,155,091 8,565,542 4,410,796 2,567,130 638,762 Beginning Cash Balance 6,966,959 1,976,825 (9,598,629) (7,443,538) 1,122,005 5,532,800 8,099,930 Net change in Cash & Cash Equivalents (4,990,134) (11,575,454) 2,155,091 8,565,542 4,410,796 2,567,130 638,762 Ending Cash Balance 1,976,825 (9,598,629) (7,443,538) 1,122,005 5,532,800 8,099,930 8,738,693 Projected
Summary Results for Option 3B (“Recovery from Rates in 2026”) NHA is not a rate consultant; these required rate increases are estimates, subject to a cost of service study
837
19 Draft Estimated
2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 2027‐28 2028‐29 Assumed Rate Increases 13.0% 5.0% 10.0% 5.0% 5.0%Assumed Rate Increase Date 10/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Total Gross Revenues 34,167,255 35,346,961 38,959,905 40,739,209 41,781,535 43,494,601 45,293,321Total Operating Expenses 30,760,816 34,333,079 35,235,777 35,740,279 37,474,936 39,314,601 41,246,250 Net Revenues 3,406,439 1,013,882 3,724,128 4,998,930 4,306,599 4,180,000 4,047,070 Debt
2015 Electric Revenue Bonds 2,424,794 2,423,044 2,423,044 2,424,544 2,422,294 2,426,294 2,423,0132024 Electric Revenue Bonds (Taxable) 0 0 925,750 925,750 925,750 Total Debt Service 2,424,794 2,423,044 2,423,044 2,424,544 3,348,044 3,352,044 3,348,763 Debt Service Coverage (1.20x Requirement) 1.40 0.42 1.54 2.06 1.29 1.25 1.21 City's Reported Coverage (EMMA Filings) 1.25
Cash Balance Calculations
Net Revenues After Debt Service 981,645 (1,409,162) 1,301,084 2,574,386 958,556 827,956 698,308 Capital Expenditures 8,073,472 5,145,653 1,140,072 1,130,000 1,130,000 1,130,000 1,130,000 Other Cash Adjustments (2,101,693) 5,020,639 (350,000)             ‐ (350,000)                           ‐                           ‐ Proceeds from Bonds ‐        ‐ 10,209,621                           ‐                           ‐                           ‐ Net Revenues After Capital Expenditures and Transfers Out (4,990,134) (11,575,454) 10,720,633 1,794,386 (171,444) (302,044) (431,692) Beginning Cash Balance 6,966,959 1,976,825 (9,598,629) 1,122,005 2,916,391 2,744,946 2,442,902 Net change in Cash & Cash Equivalents (4,990,134) (11,575,454) 10,720,633 1,794,386 (171,444) (302,044) (431,692) Ending Cash Balance 1,976,825 (9,598,629) 1,122,005 2,916,391 2,744,946 2,442,902 2,011,210 Projected
Summary Results for Option 4 (“Recovery from Bonds in 2025”)Cash balance recovers quickly under this scenario, tradeoff is the long‐term debtrepayments on a ~$10M Bond (principal + interest) NHA is not a rate consultant; these required rate increases areestimates, subject to a cost of service study 838

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Art Vela, Public Works Director
Lincoln Bogard, Administrative Services Director
MEETING DATE: September 24, 2024
SUBJECT: Discussion of the Banning Electric Utility Emergency Rate Increase Scenarios
RECOMMENDATION:

Discussion of the Banning Electric Utility Emergency Rate Increase Scenarios and provide staff with direction with which scenario to move forward with.

BACKGROUND:

On August 27, 2024, City Council received a report from staff and discussed four options for a potential Banning Electric Utility Emergency Rate In Increase, staff report attached hereto. The four options were are follows:

Option 1 Option 2 Option 3A/3B Option 4
Description No Action Maintains Services
Maintains Services
and Replenishes
Cash with Rate
Revenues
Maintains Services
and Replenishes
Cash $10M Bond
Rate Increase None 13% in FY 2025
64% in FY 2025 or
22% in FY 2025 and
22% in FY 2026
13% in FY 2025
After discussing the options above, Councilmembers selected their preferred option as follows:
- Mayor Sanchez: Option 4
- Mayor Pro Tem Minjares: Option 3B
- Councilmember Wallace: Option 3B
- Councilmember Flynn: Option 3B
- Councilmember Happe: Option 3B
As part of the discussion, Mayor Pro Tem Minjares and Councilmember Flynn requested that staff also provide a revised Option 3 to spread the increases over three years rather than two years.

Staff has evaluated and prepared the following scenarios for Council's consideration:
1 839
Scenario 3B
This scenario is very similar to the scenario shown to City Council in August and models what kind of rate increase would be required to bring the Electric Utility’s cash from negative to positive by the end of fiscal year 2026. This modeling assumes two rate increases – one in November 2024 and one in November 2025. Each of these rate increases is 22.7%. This is slightly higher than the 22% increases shown to Council in August because the analysis in August assumed that the first rate increase would be effective October 1 compared to the November 1 assumption in this update. This analysis assumes that rate increases apply equally to both the energy charge (per kWh) and the Basic Service Charge.

Of the scenarios evaluated for this report, this scenario has the greatest near-term increases.

Scenario 3C
Based on a request at the August 27th City Council meeting, this scenario evaluates the annual rate increases needed to bring the Electric Utility’s cash from negative to positive by the end of fiscal year 2027. Because this scenario assumes a longer recovery, it requires approximately 14.7% annual rate increases – one in November 2024, one in November 2025, and one in November 2026. Under this scenario, the cash balance stays negative until FY 2027. Similar to scenario 3B above, the modeling for this scenario assumes the energy charge (per kWh) and the Basic Service Charge increase with the rate increases.

Because this scenario has the slowest recovery of the Electric Utility’s cash, there is greater risk that unforeseen expenses or cost increases prevent that recovery. Additionally, there is greater risk of further downgrades in the Electric Utility’s credit rating because of this slower recovery.

Finally, due to the anticipated timing of a Cost of Service Study, it is likely that the November 2026 rate increase under this scenario will be changed to something other than 14% based on the findings of that study.

Scenario 4B
This scenario explores the strategic use of bond funding to facilitate the recovery of Electric Utility’s cash position by the end of fiscal year 2026. Unlike the bonds scenario presented to the Council in August (Scenario 4), this Scenario 4B assumes a significantly smaller amount of bond funding raised: $6 million total. That amount is split into $2.2 million raised from a tax-exempt financing and $3.8 million raised from a taxable financing. While the taxable portion is used to replenish fund balance, the tax-exempt portion of the financing is used to address the budgeted capital expenditures in FYE 2025 and 2026. While the entire financing will likely be unrated given the current “BB” credit rating, unlike a taxable interest rate (assumed to be 7%) this analysis assumes a tax-exempt interest rate of 5.5% for a 20-year financing.

Under this scenario, two 13.9% annual rate increases are needed in FY 2025 and FY 2026, followed by additional rate increases in future years to support the debt service. Preliminary modeling suggests that those rate increases beyond FY 2026 are in the 4-6% range.

Unlike Scenarios 3B and 3C above, this Scenario 4B spreads the costs of the capital expenditures and fund balance recovery over a longer period of time. However, because this scenario uses bond financing, there is the cost of long-term bond repayments – though those costs are spread out over 18- 20 years.

The table below summarizes of the key comparisons of the three scenarios for the Residential Service Rate. Please note that the projections for FY 2027 will likely change based the findings of the Cost of Service Study:
2 840
FY 2025 FY 2026 FY 2027
Date Rate Increases Effective November 1 November 1 November 1 Scenario 3B
Rate Increase (Energy Charge Only) 22.7% 22.7% 0%
Cost per kWh $0.174 $0.214 $0.214
Basic Service Charge $37 $45 $45
Avg SFR Monthly Bill* $136 $165 $165
Scenario 3C
Rate Increase (Energy Charge Only) 14.7% 14.7% 14.7%
Cost per kWh $0.163 $0.187 $0.214
Basic Service Charge $34 $39 $45
Avg SFR Monthly Bill* $127 $145 $166
Scenario 4B
Rate Increase (Energy Charge Only) 13.9% 13.9% 5%
Cost per kWh $0.162 $0.184 $0.194
Basic Service Charge $34 $39 $41
Avg SFR Monthly Bill* $126 $143 $150
JUSTIFICATION:

The Electric Utility’s cash balance has decreased significantly in recent years due to a combination of capital spending and inflationary pressures. Over Fiscal Years 2020-21 through 2022-23, the Electric Utility spent $10 million per year on average toward capital projects. Additionally, while the Electric Utility has historically been able to generate sufficient operating revenues to cover operating expenses, in each of the last three fiscal years – 2022, 2023 and 2024 – operating expenses have been greater than operating revenues. One driver behind this is power purchase costs, which increased 31% from 2019 to 2023.

As a result, the Electric Utility’s unrestricted cash and investments balance decreased significantly from over $18 million in FY 2019 to negative $9.5 million in FY 2024. Because operating expenses have been greater than revenues in the last three years and cash balances are negative, Electric Utility has needed to borrow from other City funds, which has put significant strain on those funds.

The General Fund’s cash balance in FYE 2023 was $4.5 million after including a $3.5M amount due from other funds. This is a marked decrease from the General Fund’s pooled cash balances over $13 million in fiscal year 2018. Continued borrowing from the General Fund is not an option to support the Electric Utility. Additionally, the Banning Utility Authority’s Water and Wastewater Funds are subject to California’s Proposition 218 related to utility rates and charges and having those funds’ send cash to the Electric Utility could expose the City to the risk of a legal challenge.

The options listed above would provide relief to the current fiscal challenges faced by BEU.

FISCAL IMPACT:

Options 3B, 3C and 4B have different degrees of fiscal impact to the Banning Electric Utility.

ALTERNATIVES:
3 841

1. Option 3B

2. Option 3C

3. Option 4B

4. Provide alternative direction to staff.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. 8.27.24 Electric Rate Increase Options Staff Report.pdf

2. 8.27.24 Electric Rate Increase Power Point NHA Advisors.pdf

3. Option 3B Electric Rate Schedules.pdf

4. Option 3C Electric Rate Schedules.pdf

5. Option 4B Electric Rate Schedules.pdf

6. Financial Analysis of Options.pdf
4 842
See Proof on Next Page

AFFIDAVIT OF PUBLICATION
Record Gazette
218 N. Murray St., Banning, CA 92220
Proof of Publication
(2015.5 C.C.P.)
NPH Increase Electric Rate City of Banning
___________________________________________________
State of California )
County of Riverside ) SS.

That the notice, of which the annexed is a copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

Oct 11, 2024
Executed on: ____________________
At City of Banning, California
I ceritfy (or declare) under penalty of perjury that the foregoing is true and correct.
___________________________________________________
Signature
NPH Increase Electric Rate City of Banning | Page 1 of 3 October 11, 2024
843
NPH Increase Electric Rate City of Banning | Page 2 of 3 844
NPH Increase Electric Rate City of Banning | Page 3 of 3 845

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: October 22, 2024
SUBJECT: Consideration of Resolution 2024-170, Approving a Reimbursement Agreement with SFPP, L.P., a Delaware Limited Partnership, for Costs Associated with the Design and Relocation of Pipeline Facilities Owned and Operated by SFPP in Relation to the Sun Lakes Boulevard Extension Project
RECOMMENDATION:

Adopt Resolution 2024-170.

BACKGROUND:

The action requested with this item is an implementing action for the continued progress of the Sun Lakes Boulevard Extension Project within the adopted City Council Capital Improvement Program.

SFPP, LP is a limited partnership that operates an oil pipeline owned by Kinder Morgan in the Project area. The pipeline is within an easement over the land the pipeline lays within, and was recorded on August 4, 1955 in book 1776, page 565 in favor of Southern Pacific Pipe Lines, and its future assignees.

This easement was granted prior to the annexation of these parcels into the City of Banning's municipal boundaries, and as such, the pipeline is not within the franchise agreement that exists between the City of Banning and Kinder Morgan for facilities throughout the rest of the City. The easement also existed prior to the dedication of right of way to the City of Banning for the roadway with Parcel Map 25541 on the 17th of September, 1990 in Map Book 166/Page 27, and then accepted by the City Council with Resolution 2020-21 on the 11th of February, 2020; meaning that Kinder Morgan holds senior easement rights over the City of Banning for this facility.

Through development of the Sun Lakes Boulevard Extension Project, the Project team has been in contact with Kinder Morgan regarding impacts and encroachment into their easement area. Those discussion resulted in the re-design of portions of the Project to minimize impacts to the facility, and understanding that the roadway design would be in conflict with Kinder Morgan design standards for their pipelines necessitating a design for the relocation of Kinder Morgan pipeline facilities. Kinder Morgan's internal policy requires that encroaching parties enter into an agreement with Kinder Morgan, where Kinder Morgan will perform the design, permitting, construction, and inspection of the work related to the pipeline relocation, where the encroaching party is responsible to pay Kinder Morgan for 100% of their incurred costs for the relocation.

The agreement has been structured to allow the City of Banning to make payments to Kinder Morgan prior to each Project phase (Phase 1 = Design, Phase 2 = Permitting, Phase 3 = Construction, Phase 4 = Inspection and Closeout). Kinder Morgan will provide an estimate at each Project phase for the anticipated complete Project cost. The estimate provided in Exhibit B of the agreement includes the 846
Phase 1 costs, and then estimates for the remaining phases prepared without the benefit of a design.

Prior to the City's payment for Phase 2 work, Kinder Morgan will provide an updated estimate with the required Phase 2 payment and estimates for Phases 3 and 4. The same would occur at Phase 3, and at Phase 4. Kinder Morgan will also provide a detail invoice of actual costs incurred to the City of Banning for review and audit throughout the Project and at the issuance of a final invoice post construction.

JUSTIFICATION:

To comply with the $13,500,000 RCTC MARA Grant received by the City of Banning, the entire Project will need to be construction ready with an initial invoice paid by June 30, 2025. Encroachment rights from the utility holders is a required item for this project. Additionally, as Kinder Morgan holds senior easement rights to the City of Banning, the City is obligated to perform work as required by Kinder Morgan and their Encroachments Divisions policies and procedures. This action is a necessary step to advance the roadway project to the construction phase.

FISCAL IMPACT:

The initial payment per Exhibit B of the Reimbursement Agreement for Phase 1 work for Engineering Design and Company Labor is $128,938, paid from the City's Street DIF Account (420-4900-431.90-10).

Expenditures from this account totaling $2,500,000 were allocated for this Project in FY26 and FY28.

Estimated Project costs, to be revised by Kinder Morgan prior to subsequent Project phases, is currently estimated at $3,711,119.

These expenses are eligible for reimbursement through the Transportation Uniform Mitigation Fee (TUMF) overseen by the Western Riverside Council of Governments (WRCOG).

ALTERNATIVES:

Do not adopt Resolution 2024-170 and provide direction to staff on how to proceed with the Sun Lakes Boulevard Extension Project.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution 2024-170, SFPP Reimbursement Agreement.docx

2. Exhibit A - Banning Agreement SFPP - 2024.10.15.pdf

3. 1955 BOOK 1776 PAGE 565.pdf
847
Resolution 2024-170

Page 1 of 4 ends

RESOLUTION 2024-170

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT WITH SFPP, L.P., A DELAWARE LIMITED

PARTNERSHIP, FOR COSTS ASSOCIATED WITH THE DESIGN AND RELOCATION OF

PIPELINE FACILITIES OWNED AND OPERATED BY SFPP IN RELATION TO THE SUN

LAKES BOULEVARD EXTENSION PROJECT
WHEREAS, the City of Banning has adopted a Circulation Element within the General Plan that identifies the Sun Lakes Boulevard as an Arterial highway concurrent with the proposed Sun Lakes Boulevard Extension Project; and
WHEREAS, the City of Banning has adopted a Capital Improvement Program that includes the design and construction of the Sun Lakes Boulevard Extension Project with funding allocations from the City’s Streets Development Impact Fee fund; and WHEREAS, the City of Banning, through various previous resolutions, has approved actions related to the acceptance of right of way, reimbursement agreements, award of design contracts, and acceptance of grant funding for the design and construction of the Sun Lakes Boulevard Extension Project; and
WHEREAS, SFPP L.P., a Delaware limited partnership, owns and operates an oil transmission pipeline within an existing easement recorded on August 4, 1955 in book 1776 page 565 of official records; and
WHEREAS, the easement held by SFPP L.P., a Delaware limited partnership, is senior to rights of way offered and accepted by the City of Banning by Resolution 2020-21 on the 11th of February, 2024; and
WHEREAS, an encroachment permit from SFPP L.P., a Delaware limited partnership, is required prior to the authorization of construction of the Sun Lakes Boulevard Extension project, where the encroachment permit carries with it requirements for third parties to reimburse SFPP L.P. for costs incurred related to the relocation and protection of their facilities.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves the Reimbursement Agreement Related to Pipeline Design and Relocation for the Sun Lakes Boulevard Extension Project with SFPP L.P., a Delaware limited partnership, attached hereto as Exhibit “A”.

SECTION 2. The City Council authorizes the City Manager to make non-substantive changes to the Reimbursement Agreement and to execute the Reimbursement Agreement with SFPP L.P., a Delaware limited partnership. on behalf of the City Council.

SECTION 3. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 848
Resolution 2024-170

Page 2 of 4 ends

PASSED, APPROVED AND ADOPTED this 22nd day of October 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita R. Young, City Attorney
Richards, Watson & Gershon
849
Resolution 2024-170

Page 3 of 4 ends

CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-170, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 22nd day of October 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
850
Resolution 2024-170

Page 4 of 4 ends

EXHIBIT A
Reimbursement Agreement
851
1 Reimbursement Agreement Related to Pipeline Design and Relocation for the Sun Lakes Boulevard Extension Project
THIS REIMBURSEMENT AGREEMENT (“Agreement”) is made and entered into as of this _____th day of ____________, 2024 (“Effective Date”), by and between SFPP, L.P., a Delaware limited partnership (“SFPP”), with an office at 1001 Louisiana Street, Houston, TX 77002, and the City of Banning, a California municipal corporation (“City”) whose address is 99 E. Ramsey Street, Banning Ca, 92220.

WHEREAS, City is proposing to construct an extension of Sun Lakes Blvd, hereinafter referred to as the “Project,” which will necessitate inspection personnel to be on site during the course of Project and necessitate relocation of SFPP’s LS-111/112/113 petroleum line “SFPP Facility”, as shown in the attached Exhibit “A”.

WHEREAS, City has agreed to reimburse SFPP for one hundred percent (100%) of the total cost of such inspector time and relocation expenses, as described in attached Exhibit “B”.

NOW THEREFORE, for and in consideration of the premises and the mutual benefits to all parties, and intending hereby to be legally bound, it is understood and agreed as follows:

1. SFPP will be on site during construction of the Project to inspect, protect and complete the work to relocate the SFPP Facility in a manner that will be sufficient for both SFPP and City, as depicted in in the drawing attached hereto as Exhibit “A”, all hereinafter referred to as the “Work.” SFPP is hereby granted a right of entry in and upon City’s property as reasonably necessary for SFPP to perform the Work.

All Work performed by SFPP shall comply with any and all applicable laws, statutes, regulations, and orders. Some or all of the Work constitutes “public works” as defined in California Labor Code Section 1720(a). As to that portion of the Work constituting public works, SFPP will comply with Labor Code Sections 1720 through 1861 including paying prevailing wages and otherwise complying with the requirements set forth in Exhibit “C”, “California Labor Code Compliance” attached hereto and incorporated by reference herein.

2. City will secure and grant easement rights for SFPP sufficient to execute the Work and continued operation and maintenance of the SFPP Facility. Such easement agreements shall be approved by SFPP prior to City purchasing the easement agreements.

3. City shall pay SFPP for one-hundred percent (100%) of the actual costs and expenses incurred by SFPP to perform the Work (“Reimbursement Expenses”). SFPP estimates that the Reimbursement Expenses to be incurred by SFPP and paid by City are $3,711,119.

4. City shall prepay SFPP the Reimbursement Expenses in phases necessary to complete the Work in accordance with the scope of work as described in Exhibit “B” attached hereto (each payment hereinafter defined as a “Progress Payment”). SFPP to provide City with an estimate for each Progress Payment in the form of a Progress Payment Invoice (“Invoice”) in advance of performing the Work or ordering materials. Such estimate is a 852
2 budgetary estimate only, and shall not in any way constitute a limit upon the amount of the total actual cost of the Work, including overheads and taxes, incurred by SFPP, for which City shall be liable to pay hereunder. Such cost estimate is based on the costs of labor and expenses current at the time of preparation of the estimate, and is subject to revision by and at the discretion of SFPP to reflect any changes in such cost that may occur prior to the completion of the Work. Such cost estimate makes no provision of encountering unforeseen rock, water, bad weather, or any other unforeseen contingencies in connection with the Work and such contingencies will be included and accounted for in the total actual cost of the Work, for which City agrees to reimburse SFPP in full.

Notwithstanding the foregoing, the City shall have the right to terminate this Agreement for any reason at any time within Phase 1 and Phase 2 as shown in Exhibit B by providing SFPP not less that fifteen (15) day’s prior, written notice. In such event, City shall pay SFPP for any portion of the Work not yet paid for, but satisfactorily performed.

5. Upon full execution of this Agreement, City shall pay SFPP $128,938 as an initial Progress Payment for the first phase of the Work identified in Exhibit “B”. SFPP shall be under no obligation to commence any activities relative to the Work until City has fully paid SFPP in accordance with the Invoice and all authorizations and permits, if any, necessary to complete the Work have been received. Upon receipt of the Progress Payment, SFPP will make arrangements to begin the Work as soon thereafter as reasonably possible. SFPP shall be under no obligation to incur any damages or additional expense for any delay to the Work and shall have no liability whatsoever to City for expired permits or additional adjustments necessary to complete the Work if any Progress Payment is delayed or withheld. All payments due hereunder shall be in the form either of a check or a wire transfer.

6. As promptly as reasonably possible, but no sooner than ninety (90) days following completion of all phases of the Work, SFPP shall provide City an accounting for any variance between the sum of all Progress Payments and the total Reimbursement Expenses (“Final Accounting”); provided, however, that City shall be obligated to pay SFPP for the total Reimbursement Expenses regardless of whether the Reimbursement Expenses are more or less than the total Progress Payments. The Final Accounting shall include written documentation of all costs incurred by SFPP reflected therein.

In the event City owes SFPP additional payment to cover the Reimbursement Expenses, SFPP will provide a final invoice to City within thirty (30) days after the Final Accounting.

Should City fail to make payment of such invoice within (60) days after its receipt of the Final Accounting, SFPP shall be entitled to collect from City the amount of said invoice together with interest at a rate equal to the then-applicable Federal Energy Regulatory Commission (“FERC”) refund interest rate as specified in Section 154.501(d) of FERC’s regulations. Such interest shall accrue on unpaid amounts, including on unpaid interest, compounded monthly, beginning on the payment due date of SFPP’s invoice to City and terminating when such invoice is paid. In the event that SFPP owes City a refund of amounts paid, SFPP agrees to make that refund to City within sixty (60) days after providing the Final Accounting to City.

7. City agrees to perform the Project in accordance with the drawings for the Project as provided to SFPP and in effect on the date this Agreement is executed and will not make any changes to the Project where the SFPP Facility is involved without prior written notification to SFPP. If changes to the Project are made or future changes are made to City’s development that affect the SFPP Facility such that additional adjustments are 853
3 necessary within SFPP’s currently existing right of way or otherwise affect the property interests of SFPP, then SFPP will provide the City with a new cost estimate. If approved by City, SFPP will provide an invoice for payment thereof to the City and proceed to make the adjustments after receiving payment.

8. SFPP will keep all cost records pertaining to the Work in order to have them readily available for City to audit. City has the right to audit the records during the regular office hours of SFPP for a period of three (3) years from the date the Work is completed.

9. SFPP and City acknowledge and agree that nothing in this Agreement shall operate or be construed as a representation or guarantee that the activities of SFPP shall result in the Work being successful or completed, or that the Work will be completed by any specific or anticipated date, and SFPP shall have no liability whatsoever to City for the failure to complete the Work, provided however, while recognizing this is an accommodation without financial incentive to SFPP, SFPP will undertake the Work in its normal course of business. The Work undertaken by SFPP herein shall be provided with NO WARRANTY,

EXPRESS OR IMPLIED, AS IS, WHERE IS, WITH ALL FAULTS, AND SFPP DISCLAIMS

ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH REGARD TO ITS

ACTIVITIES OR ANY MATTER HEREUNDER, INCLUDING, BUT NOT LIMITED TO,

ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, OR CONFORMANCE TO MODELS OR SAMPLES OF MATERIAL. In no event shall SFPP be liable to City with respect to SFPP’s Work or for any losses, costs, liabilities, obligations, or damages arising out of or in connection with such Work, whether arising in contract, tort, (including, but not limited to, negligence or strict liability) or otherwise. IT IS SPECIFICALLY AGREED THAT SFPP SHALL HAVE NO OBLIGATION

WHATSOEVER FOR, AND CITY EXPRESSLY WAIVES, ANY LOST PROFITS,

CONSEQUENTIAL, INDIRECT, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES,

INCLUDING, WITHOUT LIMITATION, DELAY DAMAGES WITH RESPECT TO THE WORK, OR THIS AGREEMENT, REGARDLESS OF HOW CAUSED.

10. By granting its consent to the Project in conjunction with the performance of the Work, it is understood that SFPP does not assume any additional responsibility for the protection, operation, and maintenance of its SFPP Facility because of the Project. In consideration of such consent, City agrees to defend, indemnify, and hold SFPP, its officers, employees, representatives, agents, contractors, and subcontractors harmless, from and against any and all claims, demands, actions, expenses (including court costs and attorneys’ fees), losses, damages, stop notices, liens, causes of action, and liability (“Claims”), whether with respect to the parties hereto or third parties, for damage to property or injury to or death of persons, to the extent arising out of or related to the negligent acts or omissions, or willful misconduct, of the City in connection with the Work or the Project, except to the extent any such Claim is caused by or arises out of the gross negligence or willful misconduct of SFPP or its employees or contractors.

SFPP agrees to defend, indemnify, and hold City, its elected officials, officers, employees, representatives, agents, contractors, and subcontractors harmless, from and against any and all Claims, whether with respect to the parties hereto or third parties, for damage to property or injury to or death of persons, to the extent arising out of or related to the negligent acts or omissions, or willful misconduct, of SFPP in connection with the Work or the Project, except to the extent any such Claim is caused by or arises out of the negligence or willful misconduct of the City or its employees or contractors. 854
4 11. City and SFPP shall each carry, and cause their contractors and subcontractors to carry, at its and their own expense, with reliable insurance companies authorized to provide insurance within the State of California, insurance to cover their respective obligations and liabilities under this Agreement, including, but not limited to worker’s compensation insurance with employer’s liability coverage, commercial general liability insurance with contractual liability coverage, and automobile liability insurance. To the extent The Work performed by or on behalf of SFPP consists of design professional services, SFPP shall also provide professional liability insurance. The parties further agree that all policies of insurance that are intended to cover any liabilities, expenses, losses, claims, costs (including attorneys’ fees), suits, and causes of action incurred hereunder shall be properly endorsed to waive the insurer’s rights of subrogation (except any worker’s compensation and professional liability policies), under any such policies, against the other party. The form and limits of the policies required to be maintained by City’s contractor(s) and SFPP shall be as reasonably established by City’s risk manager. Both parties may satisfy their insurance obligations hereunder through its program of self-insurance.

12. This Agreement shall be effective as of the Effective Date and shall remain in full force and effect thereafter until the date that the Parties’ rights and obligations under Sections 4, 5, and 6 of this Agreement, including the right to payment and refund, have been fully satisfied. SFPP shall have the right to terminate this Agreement in the event City has failed to make a timely payment of or toward the Progress Payment in accordance with the payment provisions herein, and/or City causes the proposed construction described herein to be delayed, such that the Work cannot reasonably be completed within two (2) years of the Effective Date.

13. This Agreement shall be construed in accordance with the laws of the State of California, without regard for change of venue rules. Venue shall be the Federal court having jurisdiction within Riverside County, California. The parties hereto agree to waive jury trial for any matters that arise from this Agreement. This Agreement is subject to all valid laws, rules or regulations of any governmental authority having jurisdiction, incorporates the entire agreement between the parties, may only be changed or amended by written agreement of the parties hereto, and shall be binding on the parties hereto as well as their successors and assigns.

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

CITY OF BANNING
855
5 By: _______________________
Doug Schulze, City Manager
ATTEST:

By: _______________________
Marie Calderon, City Clerk
APPROVED AS TO FORM:

By: _______________________
Serita Young, City Attorney
SFPP, L.P., a Delaware Limited Partnership
By: Kinder Morgan Operating L.P. “D”
By: Kinder Morgan G.P., Inc., its General Partner
By:

Title:
856
6 Exhibit “A”
857
WEBB
N
W E
S
SUN LAKES BLVD. PROFILE

OIL OIL OIL OIL OIL OIL OIL OIL OIL OIL OIL

OIL OIL OIL OIL OIL OIL OIL OIL OIL OIL OIL
858
7 Exhibit “B”
Scope of Work
Phase

1. Professional Engineering & Internal Labor

2. Permitting

3. Material and Construction

4. Damage Prevention
859

PROJECT NAME
PUBLISH DATE OVERHEAD 11.00%
PROJECT MANAGER TAX GROSS UP 0.00%
STATE PROJECT TYPE Reimbursable
COUNTY
Project Scope:

Phase 1 Phase 2 Phase 3 Phase 4 TOTAL
MATERIAL (INCL SALES TAX) $ 413,160 413,160 $
COMPANY LABOR COST $ 87,560 87,560 $
PM, ENG, LAND, ENVIRO - EXPENSE $ 7,920 7,920 $
PRIMARY CONSTRUCTION CONTRACTOR $ 2,320,450 2,320,450 $ SECONDARY CONTRACTOR $ 181,500 181,500 $
PROFESSIONAL ENGINEERING $ 28,600 28,600 $
INSPECTION SERVICES $ 100,000 116,930 $ 216,930 $
RADIOGRAPHY SERVICES $ 2,860 2,860 $
RIGHT OF WAY CONTRACTOR $ 11,000 11,000 $
SURVEY CONTRACTOR $ 28,270 28,270 $
ROW & DAMAGES $ 17,600 17,600 $
PERMIT FEES $ 27,500 27,500 $
SUBTOTAL $ 38,500 116,160 $ 3,088,690 $ 100,000 $ 3,343,350 $ CAPITALIZED OVERHEAD (BURDEN) $ 4,235 12,778 $ 339,756 $ 11,000 $ 367,769 $ TAX GROSS-UP $ - - $ - $ - $ - $
ESTIMATED TOTAL COST $ 128,938 $ 42,735 $ 3,428,446 $ 111,000 $ 3,711,119

ASSUMPTIONS

KINDER MORGAN
SFPP LS-111 Sun Lakes Blvd Relocation, City of Banning
Nicole Rodriguez
California
Riverside
Oct-24
- Assuming Developer/City to provide workspace and laydown area. - Two tie-in locations are adjacent to active road.
- Bore under roadway (eastern relocation).

Phase 1
Phase 2
Relocate approx. 1,600ft of 20" line section LS-111 in two locations by open cut and bore due to encroachment. The City of Banning (City) is proposing a road expansion in conflict with KM’s existing alignment. Related to encroachment MP2204068. ** Estimate shelf life is 6 months from published date.

Material and Construction
Damage Prevention during City construction
Professional Engineering and Internal Labor
Permitting
Phase 3
Phase 4
- No Federally listed or State listed species of special concern will be impacted; no species surveys, reporting, or consultation with USFWS will be required. - No cultural resources will be impacted.
- Land disturbance will be greater than (1) acre. Stormwater discharge permit required. - Any necessary building or development permits will be acquired by Project Management of the Contractor.

ESTIMATE SUMMARY
- No asbestos coating.
- No conflicting utilities.
860
8 Exhibit “C”

CALIFORNIA LABOR CODE COMPLIANCE

1. SFPP (“Utility” herein) acknowledges that this contract is subject to the provisions of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works and the awarding public agency (“City”), and agrees to be bound by all the provisions thereof as though set forth in full herein.

2. This is a public work and requires the payment of prevailing wages for the work or craft in which the worker is employed for any public work done under the contract by Utility or by any subcontractor pursuant to Section 1771 of the Labor Code.

Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this contract from the Director of the Department of Industrial Relations. These rates are on file with the City Clerk or may be obtained at
http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm.

Utility shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Utility shall comply with the provisions of Sections 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Utility shall forfeit to the City, as a penalty, not more than $200.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this contract, by him or by any subcontractor under him, in violation of the provisions of this Agreement.

3. In accordance with Labor Code Sections 1725.5 and 1771.1, and except for projects involving construction, alteration, demolition, installation, or repair work of $25,000 or less, or maintenance work of $15,000 or less, no contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract unless currently registered and qualified to perform public work pursuant to Section 1725.5 [with limited exceptions for bid purposes, only, pursuant to Labor Code Section 1771.1(a)].

4. Pursuant to Labor Code Section 1776, Utility shall maintain and make available an accurate record showing the name of each worker and hours worked each day and each week by each worker employed by Utility performing services covered by this Agreement. Utility and its subcontractors shall furnish electronic certified payroll records to the Labor Commissioner in accordance with Labor Code Section 1771.4. The project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. The Utility is responsible for compliance with 861
9 Section 1776 by itself and all of its subcontractors. The Utility shall post job site notices, as prescribed by regulation.

5. Utility shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. The Utility shall be responsible for compliance with these Sections for all apprenticeable occupations. Before commencing Work on this Project, the Utility shall provide the City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) Days after concluding Work, Utility and each of its Subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Contract.

6. Utility agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours. The Utility shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the Utility or by any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the California Labor Code.

7. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Utility hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
Date __________________Signature ________________________________

8. Payment Bond. Pursuant to California Civil Code Section 9550, prior to commencing performance, Utility shall provide City with a labor and materials (payment) bond guaranteeing payment of prevailing wages, and payment to providers of materials to Utility, in an amount not less than 100% of the contract amount for work to be performed by the Utility.
862
863
864
865

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Lincoln Bogard, Administrative Services Director MEETING DATE: October 22, 2024
SUBJECT: Consideration of Resolution 2024-171, Approving Replacement of NeoGov Human Resources Information System (HRIS) and Related Modules with Paylocity Human Capital Management (HCM) Including Payroll, Time & Labor, Benefits, Human Resources, Talent, Employee Experience, Insights & Reporting, and Customer Service
RECOMMENDATION:

Adopt Resolution 2024-171.

BACKGROUND:

On July 12, 2022, the City of Banning adopted Resolution 2022-100, approving the implementation of NeoGov for HR employee recruitment, hiring , and onboarding, in the amount of $25,000.00. On March 28, 2023, the City of Banning adopted Resolution 2023-54, approving the implementation of NeoGov HRIS, Human Resources and Payroll for Governments. On August 22, 2023, the City of Banning adopted Resolution 2023-145, approving the implementation of the NeoGov HRIS software platform and the HR employee recruitment, hiring, and onboarding modules (eForms, Governmentjobs com, Insight, and Onboard).

To date, NeoGov has had three project managers and there has been several times when the implementations have stalled. Management has had to schedule meetings with senior leaders at NeoGov on multiple occasions to have resources reassigned to our project. Staff began looking at competitors a few months ago and Paylocity was chosen as the best option for replacement of NeoGov.

JUSTIFICATION:

Paylocity is a worldwide company and guarantees compliance with laws and regulations for payroll. They have other CalPERS customers and are able to provide required quarterly reporting to CalPERS and have a prebuilt automation for that reporting. Staff was pleased with the multiple demonstrations, with the exception of recruitment, due to the fact that Governementjobs.com is a proprietary NeoGov site that many governments use for posting jobs. Management has not decided whether to cancel all NeoGov modules, or to keep just the recruitment module that offers publication on Governmentjobs.com.

Paylocity offered to provide the City with a free implementation, plus a free month of service after management shared that we have sunk costs in the NeoGov implementation. The overall cost of monthly service is about the same as NeoGov. Therefore, the existing budget is sufficient for this fiscal year.

FISCAL IMPACT:

The cost for the full Paylocity Human Capital Management (HCM) suite is $6,672.67 per month (after the initial free month) with a $2,500.00 one-time fee for importing historical data into the system. The first 866
year total cost is $82,332.04. The subscription automatically renews monthly after the first year and will be brought to Council annually with the software subscription cost item. There is also a $2,260.00 annual fee associated with W-2 and 1099 production, printing, and mailing, social security number verification, and 1095 forms. There are also usage based fees for Garnishment Managed Services of $7.40 per garnishment, next day delivery by UPS for $20.00 per item, and $6.00 per split pack.

Overall, the total cost of the product is expected to be between $85,000 and $90,000 per year for the next five years, including the optional add-on services, for a total not-to-exceed budget for five years of $450,000.00.

ALTERNATIVES:

Do not adopt Resolution and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution 2024-171, Paylocity.docx

2. Exhibit A - Paylocity Subscription Agreement

3. Paylocity - City of Banning Proposal 2.pdf
867
Resolution 2024-171

Page 1 of 4 ends

RESOLUTION 2024-171

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,

APPROVING REPLACEMENT OF NEOGOV HUMAN RESOURCES INFORMATION SYSTEM (HRIS) AND RELATED MODULES WITH PAYLOCITY HUMAN CAPITAL MANAGEMENT (HCM) INCLUDING PAYROLL, TIME & LABOR, BENEFITS, HUMAN RESOURCES, TALENT,

EMPLOYEE EXPERIENCE, INSIGHTS & REPORTING, AND CUSTOMER SERVICE WHEREAS, on July 12, 2022, the City of Banning adopted Resolution 2022-100, approving the implementation of NeoGov for HR employee recruitment, hiring, and onboarding, in the amount of $25,000.00; and
WHEREAS, on March 28, 2023, the City of Banning adopted Resolution 2023-54, approving the implementation of NeoGov HRIS, Human Resources and Payroll for Governments; and
WHEREAS, on August 22, 2023, the City of Banning adopted Resolution 2023-145, approving the implementation of the NeoGov HRIS software platform and the HR employee recruitment, hiring, and onboarding modules (eForms, Governmentjobs.com, Insight, and Onboard); and
WHEREAS, to date, NeoGov has had three project managers and there has been several times when the implementations have stalled, and Management has had to schedule meetings with senior leaders at NeoGov on multiple occasions to have resources reassigned to our project; and
WHEREAS, staff began looking at competitors a few months ago and Paylocity was chosen as the best option for replacement of NeoGov; and WHEREAS, Paylocity offered to provide the City with free implementation, plus a free month of service after management shared that we have sunk costs in the NeoGov implementation.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council approves the Professional Services Agreement with Paylocity for the Human Capital Management System for a one-year term in an amount not to exceed $90,000 and subsequent amendments (automatic month-to-month extensions unless canceled by either party) to extend the Agreement upon satisfactory performance, with a total not-to-exceed amount of $450,000 over five (5) years.

SECTION 2. The City Council authorizes the City Manager to make non-substantive changes to the Professional Services Agreement and to execute the Professional Services Agreement with Paylocity on behalf of the City Council.

SECTION 3. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 868
Resolution 2024-171

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PASSED, APPROVED AND ADOPTED this 22nd day of October 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita R. Young, City Attorney
Richards, Watson & Gershon
869
Resolution 2024-171

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CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-171, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 22nd day of October 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
870
Resolution 2024-171

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Paylocity SA, v29-Online, Feb 2024
Subscription Services Agreement
This Subscription Services Agreement (“SA” and, collectively with the other agreements and Paylocity transaction documents referenced herein, the “Agreement”) is entered into by and between the legal entity identified in the signature block (“Client,” or “you”) and Paylocity Corporation (“Paylocity”), each a “Party” and collectively the “Parties,” as of the earlier of the date of the last signature or Client’s access to a Paylocity offering (“Effective Date”).

THIS IS A LEGAL AGREEMENT. BY ACCESSING AND USING THE SERVICES, AS DEFINED BELOW, YOU ARE ACCEPTING AND AGREEING TO THIS SA ON BEHALF OF CLIENT. YOU REPRESENT AND WARRANT THAT YOU HAVE THE RIGHT, AUTHORITY, AND CAPACITY TO ACCEPT AND AGREE ON BEHALF OF CLIENT. IF YOU DO NOT HAVE SUCH AUTHORITY OR DO NOT AGREE WITH ANY OF THE TERMS SET FORTH HEREIN, YOU SHOULD CEASE ACCESSING OR USING THE SERVICES IMMEDIATELY. PLEASE NOTE THAT PAYLOCITY RESERVES THE RIGHT TO REVISE THE AGREEMENT FROM TIME TO TIME UPON NOTICE TO YOU.

THIS AGREEMENT DESCRIBES IMPORTANT OBLIGATIONS OF CLIENT, PARTICULARLY WITH REGARD TO ITS OBLIGATION TO COMPLY WITH LAWS APPLICABLE TO CLIENT. PLEASE READ THIS AGREEMENT CAREFULLY. BY ACCESSING OR USING THE SERVICES, OR CONTINUING TO DO SO, YOU ACKNOWLEDGE AND AGREE TO THESE LIMITATIONS.

SECTION 1: ACCESS TO AND USE OF THE SERVICES

1.1 Services; Licenses; Scope of Use.
a. Services. Paylocity has developed and provides clients access to its software-as-a-service offering leveraging its proprietary human resources and payroll platform as described in this SA (the “Subscription Services”). Paylocity also provides additional services related to the Subscription Services as identified in an Order (the “Additional Services”). As used herein, the term “Services” refers collectively to the Subscription Services and the Additional Services. Paylocity may also provide certain implementation and configuration services as separately identified in an Order or statement of work or similar professional service description provided by Paylocity (“Professional Services”). Paylocity will perform the Services or Professional Services identified in a valid Paylocity ordering document signed by Client and subject to the terms of this SA (an “Order”).
b. Licenses. Subject to Client’s compliance with the terms of the Agreement:
i. Paylocity hereby grants Client a limited, revocable, nonexclusive, non-sublicensable, non-transferable license to access and use the Services during the Subscription Term, as defined in Section 2.1 (Subscription Term), solely for Client’s internal business purposes.

During the Subscription Term, Client is entitled to access and use the Services set forth in an Order, in accordance with the Order and any applicable Additional Service Terms made available here (“Additional Service Terms”); and ii. Paylocity hereby grants Client a limited, nonexclusive, nontransferable, non-sublicensable right to access, use, and display any support or technical materials that relate to the Services that Paylocity makes available to Client (“Documentation”) during the Subscription Term solely for Client’s internal use in connection with the licenses granted in this Section 1.1(a). c. Scope of Use. The Services include functionality for use by Client’s employees, contractors, and other workers that Client has authorized to access and use the Services solely in connection with their individual relationships with Client (“Authorized Users”). In order to access the Services through a mobile app or a web browser, Authorized Users may be required to agree to be bound by the Paylocity Platform End User License Agreement, set forth within the application (the “EULA”). Client is responsible for Authorized Users’ compliance with the EULA. Client will designate certain Authorized Users who may access the Services specifically on behalf of Client (“Administrators”). Client acknowledges and agrees that Administrators act on Client’s behalf in connection with the Services and that Administrators will have access to Client and Authorized User confidential information, including Client Personal Information (as defined in Section 4.5 (Data Privacy and Security)).

1.2 Limitations on Use. The following limitations and restrictions will apply to Client’s access to and use of the Services, Deliverables (as defined in Section 1.4 (Professional Services)), and Documentation:
a. License Restrictions. Client will not and will not permit or authorize any Authorized User or third party to: (i) reverse engineer, decompile, disassemble, or otherwise attempt to discover the source code, object code, or underlying structure, ideas or algorithms of the Services; (ii) modify, translate, or create derivative works based on the Services, Deliverables or the Documentation, or any portion thereof; (iii) copy (except for archival purposes), rent, lease, resell, distribute, pledge, assign, or otherwise transfer or allow any lien, security interest, or 872
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other encumbrance on the Services, Deliverables or the Documentation; (iv) use the Services, Deliverables, or Documentation for timesharing or service bureau purposes or otherwise for the benefit of a third party; (v) hack, manipulate, interfere with, or disrupt the integrity or performance of or otherwise attempt to gain unauthorized access to the Services or related systems, hardware, or networks, or any content or technology incorporated in any of the foregoing; or (vi) remove, obscure, or alter any proprietary notices or labels of Paylocity, its licensors, or other service providers on the Services, Deliverables or the Documentation. Client will not provide access to any Services or Deliverables to any person who is not an Authorized User. Client will and will require Authorized Users to use the Services and Deliverables strictly in accordance with the Documentation and the terms of the Agreement at all times. b. Acceptable Use Policy. Client will not and will not permit or authorize any Authorized User or third party to use the Services or Deliverables:
(i) in violation of any applicable law, for any illegal or fraudulent activity or for any activity outside the scope of use expressly permitted hereunder; (ii) to violate the rights of others; (iii) to threaten, incite, promote, or actively encourage violence, terrorism, or other serious harm; (iv) for any content or activity that promotes child sexual exploitation or abuse; (v) to violate the security, integrity, or availability of any user, network, computer or communications system, software application, or network or computing device; (vi) to distribute, publish, send, or facilitate the sending of unsolicited mass email or other messages, promotions, advertising, or solicitations (or “spam”); or (vii) in any manner that damages, disables, overburdens, or impairs any of Paylocity’s websites, servers, or otherwise interferes with any other party's use of the Services.
c. Client will limit its use of the Services to any restrictions, use levels, or additional terms and conditions set forth in any applicable Additional Service Terms or Order.

1.3 Account Security. Client is responsible for ensuring that each Authorized User and Administrator maintains the confidentiality of the Service credentials and other account information that an Authorized User or Administrator uses or creates to access or use the Services or Deliverables (collectively, the “Service Credentials”). Client will be fully responsible for administering Service Credentials, including assignment, maintenance, and removal of access to Authorized Users or Administrators, and any and all activities that occur under the Service Credentials. Client agrees to immediately notify Paylocity of any unauthorized uses of any Client passwords or accounts or any other breach of security with respect to the Services of which it becomes aware. Paylocity will not be liable for any loss or damage arising from Client’s failure to comply with Client’s account security obligations and this Section 1.3, including as it relates to fraudulent activity occurring under the Service Credentials.

Notwithstanding the foregoing, Paylocity retains the right to require minimum security requirements for Service Credentials and access to the Service.

1.4 Professional Services. To the extent Paylocity performs Professional Services on behalf of Client, the following terms shall apply:
a. In order to perform Professional Services, Paylocity may require access to certain Client Materials, as defined below. As between Paylocity and Client, Client retains ownership of the Client Materials and grants Paylocity a limited license to access, use and modify the Client Materials as reasonably necessary to enable Paylocity to provide the Professional Services. “Client Materials” means Client-owned or licensed materials that may include but are not limited to content libraries, information, software, hosted services, APIs, and systems. b. The performance of Professional Services may result in the creation of certain Deliverables (as defined below). As between Paylocity and Client, Paylocity retains sole ownership of the Deliverables, including any modifications or derivative works thereof, and any Intellectual Property Rights, as defined in Section 1.6 (Intellectual Property), therein. “Deliverables” means any tangible or intangible work product or output that is created, conceived, developed, or otherwise generated by or on behalf of Paylocity in performing Professional Services.

Deliverables may include, for example, reports, processes, scripts, APIs, interfaces, and other materials and outputs that Paylocity may deliver to Client during the applicable Subscription Term. Paylocity hereby grants Client a limited, non-exclusive, non-transferable, nonsublicensable, right to use the Deliverables solely to the extent necessary to enable Client to use the Services for its internal use during the Subscription Term.

1.5 Affiliate Use of Services. Client Affiliates, as defined below, may only access Services or Professional Services pursuant to this SA as described in subsection (a) or (b):
a. If Client wishes to permit one or more of its Affiliates to access or use the Services or Deliverables pursuant to the Agreement in effect between Client and Paylocity, Client must: (i) identify each such Affiliate in a separate Order signed by Client; (ii) agree that Client is fully responsible and liable for Affiliate’s use of the Services and Deliverables in compliance with the terms of such Agreement; and (iii) agree that Client is fully responsible for the Affiliate’s funding obligations hereunder. “Affiliate” means any entity that directly or indirectly controls, is controlled by, or is under common control with the subject entity, whereas "control" means direct or indirect ownership or control of more than 50% of the voting interests of the subject entity. If Client wishes to add additional Affiliates per the foregoing, Client may request a new Order identifying the applicable Affiliates to be added. b. If an Affiliate of Client wishes to purchase Services from Paylocity directly, Paylocity may enter into a separate Order with such Affiliate for the purchase and performance of Services, provided that the Affiliate: (i) represents and warrants that it has all requisite authority to enter into such Order; (ii) signs an Order that incorporates by reference the terms of the Agreement in effect between Client and Paylocity and agrees to take on all of the rights and obligations of the Client under such Agreement in connection with the Order, and (iii) agrees that it is fully responsible and liable for its use of the Services in compliance with the terms of such Agreement including all funding obligations hereunder. For clarity, in the case of an Affiliate purchase as set forth in this Section 1.5(b), the Subscription Term shall be as set forth in 873
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that Order.

1.6 Intellectual Property.
a. Ownership. Client acknowledges that, as between the Parties and subject to the licenses in Section 1.1 (Licenses; Scope of Use), Paylocity owns and all right, title, and interest in and to: (i) the Services, Deliverables, Feedback (as defined in Section 1.6(b), Usage Data (as defined in Section 4.4 (Usage Data)), and Documentation, and all Intellectual Property Rights (as defined below) therein; and (ii) any Intellectual Property Rights arising from the performance of the Professional Services. As between the Parties, subject to the licenses in Sections 4.1 (Client Marks) and 4.2 (Client Data), Client owns all right, title, and interest in the Client Data, Client Materials, and Client Marks, and all Intellectual Property Rights therein. “Intellectual Property Rights” means: (i) copyrights and other rights associated with works of authorship; (ii) trademark and trade name rights and similar rights including all goodwill associated therewith; (iii) trade secret rights; (iv) patents, designs, algorithms, utility models, and other industrial property rights, and all improvements thereto; and (v) all registrations, applications, renewals, extensions, continuations, divisions, or reissues now or in the future under the laws of any jurisdiction. b. Feedback. If Client or any of its Authorized Users provide Paylocity with suggestions, comments, or feedback regarding the features, functionality, or usability of the Services, Deliverables or Documentation (“Feedback”), Client agrees that Paylocity shall be free to use, disclose, reproduce, license, or otherwise distribute and exploit the Feedback provided to it by Client or its Authorized Users as Paylocity sees fit, entirely without obligation or restriction of any kind on account of Intellectual Property Rights or otherwise.

SECTION 2: TERM AND TERMINATION

2.1 Subscription Term. This SA begins on the Effective Date and will continue in effect until terminated as set forth herein. The initial term for access to and use of the Services shall be specified in the applicable Order (“Initial Subscription Term”). Notwithstanding the foregoing, by accessing or using the Services at any time, including prior to the Service start date, Client agrees to be bound by and comply with the terms of the Agreement. After the Initial Subscription Term, the Services will renew automatically for the period specified in the Order (each a “Renewal Term”) unless either Party gives written notice to the other of its intent to not renew the Subscription Service in accordance with the notice periods specified in the applicable Order. The Initial Subscription Term and any Renewal Terms are collectively referred to herein as the “Subscription Term.”

2.2 Termination.
a. Either Paylocity or Client may terminate this SA or any Order effective immediately upon written notice to the other if: (i) the other Party is in material breach of the Agreement and fails to cure that breach within 30 days of receiving written notice thereof, or (ii) the other Party seeks protection under any bankruptcy, receivership, trust deed, creditors arrangement, composition or comparable proceeding, or if any such proceeding is instituted against the other (and not dismissed within 90 days after commencement of one of the foregoing events). If an Order is terminated pursuant to this Section 2.2 (Termination), this SA shall remain in effect solely with respect to any remaining Order. b. In addition to the foregoing, Paylocity may also terminate this SA or any Order effective immediately upon written notice to Client: (i) if Client is in breach of its obligations under Section 1 (Access To and Use of the Services) or the applicable statement of work, Additional Service Terms or Order; (ii) Client undergoes a material adverse change to its financial condition that Paylocity reasonably believes will impact Client’s ability to fulfill its obligations under the Agreement; (iii) if Client fails to communicate with Paylocity or provide required information needed by Paylocity to provide Services, or otherwise ceases use of the Services to process payroll, if applicable; (iv) Paylocity has suspended the Services pursuant to Section 2.4 (Suspension of Services) and Client has failed to remedy the issue as specified therein; or (v) Client is operating in an industry that is or becomes a prohibited industry such that Paylocity cannot deliver Services to Client due to a potential violation of applicable laws or regulations as determined by Paylocity in its reasonable discretion. c. Subject to payment of any termination fees specified in an Order (“Termination Fee”), Client may terminate this SA or an Order for convenience at any time by providing written notice to Paylocity in accordance with the terms of the applicable Order.

2.3 Effect of Termination. Upon termination or expiration of this SA or any Order for Services, Client will immediately: (a) cease use of the applicable Service(s), Deliverables, and Documentation; (b) become solely responsible for any payment obligations to third parties owed under a Service (including, without limitation, tax filing services); (c) except in the case of a termination by Client for Paylocity’s breach of the Agreement pursuant to Section 2.2(a) above, pay any applicable Termination Fees; (d) reimburse Paylocity for any payments made hereunder on Client’s behalf to any third party; (e) pay any and all fees and charges for the Services or Deliverables rendered or made available prior to the effective date of termination; and (f) promptly return to Paylocity or destroy (with certification of destruction) all Paylocity Confidential Information, as defined in Section 5 (Confidentiality). Notwithstanding the obligations in subsection (f), Client shall not be required to destroy copies of Confidential Information stored on backup disks or systems that are automatically produced in the ordinary course of business and which are not accessible from employee workstations. Any Confidential Information so retained will be held subject to the obligations of Section 5 (Confidentiality). Client agrees that Paylocity shall be entitled to recoup all of the foregoing fees and amounts due pursuant to this Section 2.3 in accordance with the funding obligations specified in Section 10 (Funding for Certain Services). The following provisions will survive any termination of this SA: Section 1.6 (Intellectual Property), Section 2.3 (Effect of Termination), Section 2.5 (Extended Access to Data), Section 5 (Confidentiality), Section 7 (Indemnification), Section 8 (Limitation of Liability), Section 10 (Funding for Certain Services), 874
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Section 11 (Governing Law; Venue), and Section 12 (Miscellaneous), and any other provision of this SA that must survive to fulfill its essential purpose.

2.4 Suspension of Services. Paylocity may immediately suspend Client’s access to the Services if: (a) Client does not have sufficient funds in its account for Paylocity to perform the Services, or (b) Client fails to remit timely Service Fees (as defined in Section 3.1 (Fees)), payroll, or tax funds to Paylocity or is otherwise in breach of its funding obligations hereunder, or (c) Client uses a bank that no longer is willing to originate debits from Client’s account or credits on Client’s behalf for any reason or Client otherwise has an account where authorization to debit is terminated, or (d) Paylocity reasonably believes that there is fraudulent or illegal activity associated with Client’s Services account. In the event of any such suspension, Paylocity will notify Client and provide Client with 24 hours from the time of notice to rectify any such insufficient funds, activity, or banking issues, and fees for the Services will continue to accrue during any such period of suspension. If Client fails to rectify the situation in accordance with the foregoing, Paylocity may terminate this SA effective immediately without any further liability and Section 2.3 (Effect of Termination) shall apply.

2.5 Extended Access to Data. For up to 1 year following the effective date of termination of the applicable Order (“Data Access Period”), Client may request access to Client Data, as defined in Section 4.2 (Client Data), for an annual fee of $5 per active Authorized User, subject to a separately signed Order for such access if required by Paylocity at the time of purchase. The minimum charge for such extended access is $1,000 and is payable prior to the date access is provided to Client. Upon the conclusion of the Data Access Period, Paylocity will delete such Client Data in accordance with its standard retention policies.

SECTION 3: SERVICE FEES AND CHARGES

3.1 Fees. Client agrees to pay the fees for Services and other charges pursuant to this SA in accordance with the applicable Order (“Service Fees”).

Service Fees are based on the employee headcount identified on the applicable Order as of the Order Effective Date (as defined in the Order), provided that Client will be charged for Service Fees monthly based on Client’s actual Active Headcount of that month during the Subscription Term. “Active Headcount” means the number of employee records (including all employee records covering Authorized Users, full-time and part-time employees, contingent labor or contractors, or any other individual for whom Client is recording or processing information within the Services) that are not listed as a terminated status in the employee record within the Paylocity Services platform. Service Fees paid for all Services are non-refundable and non-cancellable. Client acknowledges that Service Fees are payable in full in accordance with the terms of the applicable Order regardless of whether Client accessed or used a Service during such period. Paylocity may deliver ancillary services in accordance with its standard procedures in order to fulfill the Services hereunder (which may include, without limitation, those related to late funding, insufficient funds notification and processing, emergency payment requests, and amended tax returns) and in such cases, (i) those ancillary services will be deemed “Services” hereunder and (ii) Paylocity will charge any related fees to Client from time to time at the applicable rates as they occur. Late payments shall be subject to an interest charge at the rate of 1.5% per month, and Client shall be responsible for all of Paylocity’s cost of collection of amounts due hereunder, including, without limitation, attorneys’ fees and costs.

3.2 Fee Disputes. Client must notify Paylocity in writing if Client disputes any portion of the Service Fees within 30 days of the applicable invoice date. Paylocity shall use commercially reasonable efforts to resolve any such dispute promptly. If Client does not provide Paylocity with such requisite written notice, Client will not be entitled to dispute the fees paid or payable under the applicable invoice.

3.3 Taxes. Client is responsible for the payment of all taxes including those assessed for prior periods relating to the provision of the Services where applicable, except to the extent a valid tax exemption certificate or other valid tax exemption document is provided to Paylocity and allowable by the applicable taxing authorities.

SECTION 4: CLIENT MARKS, CLIENT DATA; SECURITY AND PRIVACY

4.1 Client Marks. If Client provides Paylocity with one or more of its trademarks, trade names or logos (“Client Marks”) for use in connection with a Service, Client grants to Paylocity a revocable, nonexclusive, non-transferable, worldwide license to use, reproduce, and display and distribute the Client Marks solely in connection with Paylocity’s performance of the Services.

4.2 Client Data. “Client Data” means any data or data files of any type that are uploaded or provided by Client for storage or processing in connection with the Services, and the content of any outputs created by Client or its Authorized Users through use of the Services that is based on Client Data, except Usage Data, as defined in Section 4.4 (Usage Data). Subject to Paylocity’s intellectual property rights contained in Section 1.6 (Intellectual Property), Client retains ownership of Client Data but grants Paylocity a revocable, nonexclusive, non-transferable, worldwide license to use, reproduce, and display Client Data for the purpose of performing the Services and Professional Services and for Paylocity’s obligations to comply with all applicable laws. Client will at all times ensure that Client Data, and Authorized Users’ use and provision thereof to Paylocity, will not violate any limitations on use set forth in Section 1.2 (Limitations on Use) or any applicable law.

4.3 Accuracy of Client Data and Information. Client is solely responsible for the content and accuracy of all Client Data. Client will submit Client Data to Paylocity in a form, at a time, and by the method specified by Paylocity. It is Client’s responsibility to review payroll data and other information prior to processing and to promptly identify any errors. Client acknowledges that Paylocity is entitled to rely conclusively on all Client Data input by Client, and does not have any obligation to verify, correct, or otherwise ensure the accuracy or quality of any Client Data.

Notwithstanding the foregoing, if Client Data submitted to Paylocity is incorrect, incomplete, or not in proper form, and Paylocity agrees to make corrections to such data on Client’s behalf, Client agrees to pay Paylocity additional fees associated with making such corrections. 875
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Notwithstanding the foregoing, Client is solely responsible for any applicable penalties, fines, missed payments, judgments, or losses due to incorrect coverage, or any other losses incurred that result from incorrect, incomplete, or untimely Client Data.

4.4 Usage Data. “Usage Data” means (a) any aggregated and anonymized data that may be generated or derived from Client Data or Client’s use of the Services that cannot be used to identify or would reasonably be expected to identify Client or any individual as the source of such data, and (b) any data relating to the business relationship between Paylocity and Client, including as set out in Paylocity’s Notice of Privacy Practices for Clients and Business Contacts available here.

4.5 Data Privacy and Security.
a. The Services involve transmissions of Client Data and other information over the Internet through a website hosted by or on behalf of Paylocity. Paylocity will use encryption and other industry-standard safeguards to protect such information when being transmitted over the Internet. Notwithstanding the foregoing, Client acknowledges that neither the security of transmissions over the Internet nor of the Client’s hardware used to access the Internet can be guaranteed by Paylocity. b. Paylocity will implement physical, technical, and administrative safeguards to maintain the security of Client Data used by Paylocity to perform the Services while in Paylocity’s control.
c. Paylocity will process Client Personal Information (as defined in the DPA) in accordance with the terms of the Privacy Policy, found here, and the Client Data Protection Addendum (“DPA”) which is available and can be executed here.

SECTION 5: CONFIDENTIALITY

5.1 Definition. “Confidential Information” means non-public, confidential, or proprietary information provided by or made available by a Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) in connection with the subject matter of this SA that (a) is labeled or designated in writing as confidential or proprietary; (b) the Receiving Party is advised is proprietary or confidential; or (c) in view of the nature of such information and/or the circumstances of its disclosure, the Receiving Party knows or reasonably should know is confidential or proprietary, regardless of the form in which such information is conveyed. Any Deliverables or Documentation provided to the Client in connection with a Service or Professional Services is the Confidential Information of Paylocity.

5.2 Exclusions. Confidential Information does not include information which (a) is or becomes generally available to the public other than as a result of a disclosure by the Receiving Party in breach of this Section 5; (b) was in the Receiving Party’s possession without restriction prior to its receipt from the Disclosing Party; (c) is independently developed by the Receiving Party without use of or access to any Confidential Information of the Disclosing Party; or (d) is disclosed to the Receiving Party from any third party on a non-confidential basis, except where such disclosure constitutes a wrongful or tortious act by the third party.

5.3 Protection, Non-Use, and Non-Disclosure of Confidential Information. The Receiving Party will not use or disclose to any third party any Confidential Information disclosed to the Receiving Party by or on behalf of the Disclosing Party except to the extent required to: (a) perform or receive the benefit of the Services or Professional Services; (b) to enforce its rights under this SA, or (c) pursuant to federal, state, or local law, regulation, court order, legal process, or governmental investigation. The Receiving Party will safeguard such Confidential Information to the same extent that the Receiving Party safeguards its own Confidential Information, but in any case, will exercise at least reasonable care.

SECTION 6: REPRESENTATIONS AND WARRANTIES

6.1 Mutual Representations and Warranties. Throughout the Subscription Term, each Party represents and warrants to the other that it has full power and authority to enter into this SA and to perform its obligations hereunder, and that the entering into of this SA and the performance of its obligations hereunder does not violate, and will not be in conflict with, any provision of its articles of incorporation, bylaws, or other governing documents, or any contract or agreement with a third party.

6.2 Paylocity Representations and Warranties. Paylocity represents and warrants that at all times during the Subscription Term it will use thencurrent industry standards and measures for preventing the Services from containing Harmful Code. “Harmful Code” means any software, hardware, device or other technology, including any virus, worm, malware, or other malicious computer code, the purpose or effect of which is to (i) permit unauthorized access to, or to destroy, disrupt, disable, distort, or otherwise harm or impede any (1) computer, software, firmware, hardware, system, or network; or (2) any application or function of any of the foregoing or the security, integrity, confidentiality, or use of any data processed thereby; or (ii) prevent Client or any Authorized User from accessing or using the Services as intended by this SA.

6.3 Client Representations and Warranties. Client represents and warrants that at all times during the Subscription Term: (a) it will use the Services, Deliverables and Documentation in compliance with all applicable laws; and (b) it has all rights and permissions necessary to provide the Client Data, Client Materials, and Client Marks to Paylocity. Without limiting the foregoing:
a. IT IS CLIENT’S SOLE RESPONSIBILITY AND DUTY TO ENSURE COMPLIANCE WITH ALL APPLICABLE LAWS AND REGULATIONS RELATED TO CLIENT’S BUSINESS, AND ENGAGING PAYLOCITY TO PERFORM THE SERVICES DOES NOT RELIEVE CLIENT OF ANY SUCH OBLIGATION. 876
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b. CLIENT IS SOLELY RESPONSIBLE FOR REVIEWING AND VERIFYING THE ACCURACY AND INTEGRITY OF ALL CLIENT DATA PROVIDED TO PAYLOCITY TO PERFORM THE SERVICES, INCLUDING ALL CLIENT DATA. c. CLIENT ACKNOWLEDGES THAT PAYLOCITY IS NOT AN ACCOUNTING OR LAW FIRM AND NO SERVICES WILL BE CONSTRUED BY CLIENT AS TAX, ACCOUNTING OR LEGAL ADVICE, NOR WILL PAYLOCITY BE DEEMED A FIDUCIARY OF CLIENT. ACCORDINGLY, CLIENT UNDERSTANDS THAT IT IS CLIENT’S RESPONSIBILITY TO PAY ANY FEE OR PENALTY ASSESSED BY THE INTERNAL REVENUE SERVICE OR OTHER STATE OR FEDERAL REGULATORY AGENCY.

6.4 Warranty Disclaimer. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION 6:

a. PAYLOCITY EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE

IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT AS WELL AS ALL WARRANTIES ARISING BY USAGE OF TRADE, COURSE OF DEALING OR COURSE OF PERFORMANCE; AND b. PAYLOCITY MAKES NO WARRANTY THAT THE SERVICES WILL MEET THE CLIENT’S REQUIREMENTS, OR THAT THE SERVICES WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR FREE; NOR DOES PAYLOCITY MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM THE USE OF THE SERVICES, THE DELIVERABLES, OR THE DOCUMENTATION.

SECTION 7: INDEMNIFICATION

7.1 Client Indemnification. Client will defend Paylocity and its licensors from and against any claim, action, demand, or proceeding by a third party (each a “Claim”) and will hold harmless and indemnify Paylocity against any resulting Losses, as defined below, that arise from or relate to:
(a) the actions or omissions of Client in connection with its use of the Services, including any Claims brought by any Client personnel or Authorized Users, or dependents or heirs of such Client personnel or Authorized Users, arising out of Client’s use of the Services; (b) Client’s negligence, willful misconduct, or failure to comply with applicable laws in connection with the subject matter of the Agreement, (c) a Claim alleging that the Client Data, Client Materials or Client Marks infringe or otherwise misappropriate the Intellectual Property Rights or other proprietary rights of a third party; or (d) Client’s use of a Third-Party Service, as defined in Section 9.1 (Third-Party Services), through any integration with a Service. “Losses” means damages that are awarded by a court or fines and penalties that are assessed by a governmental entity, or amounts agreed to in settlement by the indemnifying party and associated reasonable attorneys’ fees and costs.

7.2 Paylocity Indemnification. Paylocity will defend and indemnify Client against a Claim alleging that the Subscription Services infringe or misappropriate such third party’s United States patent or copyright rights or misappropriate such third party’s trade secret (each an “IP Claim”). Notwithstanding the foregoing, Paylocity shall have no liability under this section to the extent that an IP Claim arises from: (a) use of the Subscription Services in combination with other equipment or software or services; (b) any modification to the Subscription Services made by or on behalf of Client or any other third party; (c) Client’s failure to install any updates to or new versions of the Subscription Service provided by Paylocity; (d) use of the Subscription Services other than in the manner expressly authorized under this SA; or (e) Client Data, Client Materials or other Client content processed by the Services. If Client’s right to continue using the Subscription Services is likely to be enjoined, at Paylocity’s sole discretion, Paylocity may (i) attempt to obtain the right for Client to continue to use the infringing Subscription Service; or (ii) replace or modify the infringing Subscription Service so that it no longer infringes but functions substantially equivalently or (iii) if neither (i) or (ii) is commercially practicable, Paylocity shall have the right to terminate this SA and the rights and licenses granted hereunder upon written notice to Client and shall refund to Client any pre-paid amounts for the Subscription Service for the period following the effective date of termination.

7.3 Indemnification Procedure. The Party seeking indemnification under this Section 7 will: (a) give the indemnifying Party prompt written notice of the Claim, (b) tender to the indemnifying Party control of the defense and settlement of the Claim (provided that a settlement may not impose on the indemnified Party any costs or obligation to admit liability without its prior, written consent), and (c) cooperate with the indemnifying Party in defending or settling the Claim. The indemnified Party will have the right to participate at its own expense in any indemnification action or related settlement negotiations using counsel of its own choice at its own expense.

7.4 Sole remedy. THE PROVISIONS OF THIS SECTION 7 STATE THE SOLE, EXCLUSIVE, AND ENTIRE LIABILITY OF PAYLOCITY AND CLIENT’S SOLE REMEDY WITH RESPECT TO ANY IP CLAIM.

SECTION 8: LIMITATION OF LIABILITY

8.1 IN NO EVENT SHALL PAYLOCITY BE LIABLE TO CLIENT, AUTHORIZED USERS OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE, OR

PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR

PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, REGARDLESS OF

WHETHER SUCH DAMAGE WAS FORESEEABLE AND WHETHER OR NOT SUCH PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

8.2 IN NO EVENT SHALL PAYLOCITY’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR

RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EXCEED THE AGGREGATE AMOUNTS PAID TO 877
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Paylocity SA, v 29, Feb 2024
PAYLOCITY FOR THE APPLICABLE SERVICE IN THE TWELVE (12) MONTH PERIOD DIRECTLY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

SECTION 9: THIRD-PARTY INTEGRATIONS

9.1 Third-Party Services. Paylocity may provide the capability for Client to link or integrate a Service with certain third-party products or services (“Third-Party Services”) in accordance with Section 9.2 (Integration Services) or Section 9.3 (API). Paylocity is not responsible for and does not endorse any such Third-Party Services and disclaims any and all liability arising from or relating to the use of such Third-Party Services by or on behalf of Client.

9.2 Integration Services. Client may engage Paylocity to create a native integration, electronic data exchange integration or flat files integration between a Service and a Third-Party Service (the “Integration Services”) via a Paylocity ordering document describing the Integration Services to be performed pursuant to the provisions of Section 1.4 (Professional Services). In addition to any terms set forth therein and as otherwise set forth in this SA, by requesting Integration Services Client represents and warrants that:
a. Client has obtained any and all rights and permissions required to share and transmit Client Data with and to the Third-Party Services provider;
b. Client authorizes Paylocity to provide such Client Data and Client Confidential Information to such Third-Party Services provider as may be required to perform the Integration Services;
c. Client is, and will continue throughout the Subscription Term to be, a current active customer of the Third-Party Service; and d. Client will obtain adequate rights from such Third-Party Service provider for Paylocity to perform the Integration Services, including the rights to use any applicable tools available from such Third-Party Service provider.

9.3 API. If covered under an Order, Client may access and use certain pre-existing application programming interfaces created by or on behalf of Paylocity for the purpose of facilitating the integration of the Service with a Third-Party Service (each an “API”) subject to the terms of the applicable Order, this SA and the API License Agreement set forth here.

SECTION 10: FUNDING FOR CERTAIN SERVICES

10.1 Obligation to Remit Funds. Client is responsible for remitting timely funds to Paylocity for the performance of certain Services, including but not limited to payroll and tax services, in accordance with the timelines set forth in 10.2 (Debited Funds) and 10.3 (Wire Transfer Funds). In connection with the use of such Services, Client acknowledges and agrees to the following:
a. For any Service including an electronic funds transfer to be made across the Automated Clearing House network (each an “ACH Transaction”), Client will be designated as the “Originator,” as defined in the National Automating Clearing House Association (“Nacha”) Operating Rules as may be amended from time to time by Nacha (the “Operating Rules”); b. Client authorizes Paylocity to initiate ACH Transactions on its behalf as directed by Client; c. Client shall comply with the Operating Rules as applicable to Originators with regard to any and all fund transfers hereunder; d. Client will not initiate an ACH Transaction that is in violation of the laws of the United States; e. Client will indemnify, defend, and hold Paylocity and each Originating Depository Financial Institution, as defined in the Operating Rules, harmless from and against any Claim arising from an act or omission of Client pursuant to this Section 10; and f. Paylocity reserves the right to conduct an annual audit to confirm Client’s compliance with the terms of this Section 10 (or more frequently based on Paylocity’s reasonable suspicion of noncompliance).

10.2 Debited Funds. For any payroll processed with total liabilities of less than $1 million, Paylocity will debit Client’s bank account for all ACH Transactions one banking day prior to the applicable payroll check date and, as a result, requires all amounts to be available for withdrawal from Client’s account at least two business days prior to the applicable payroll check date. In the event the total amount of funds is not available one banking day prior to the applicable check date: (a) Paylocity will charge Client a $100.00 fee; (b) Client must wire all outstanding funds to Paylocity’s specified bank account by 2 PM CT on the same business day of the date of notification by Paylocity of the insufficient funds; and (c) if such funds are not wired to Paylocity in accordance with the foregoing, Paylocity reserves the right to terminate the Agreement effective immediately as set forth in Section 2.2 (Termination), or suspend the Services as set forth in Section 2.4 (Suspension).

The foregoing is in addition to any other rights Paylocity may have under this Agreement or under applicable law.

10.3 Wire Transfer Funds. Notwithstanding the provisions of Section 10.2 (Debited Funds), Client must initiate a wire transfer of funds one banking day prior to the payroll check date for any payroll processed when: (a) total payroll liabilities exceed $1 million; (b) Paylocity is not performing tax services for Client; (c) Client does not meet (or no longer meets) Paylocity’s credit standards; or (d) Client has failed to meet its funding 878
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Paylocity SA, v 29, Feb 2024
obligations due to the return or rejection of an ACH Transaction. Notwithstanding the foregoing, if Client processes payroll and the majority of its workforce is set up as Form 1099 contractors, Client will be required to pre-fund all payroll liabilities by wire transfer one banking day prior to the payroll check date. In the event all funds are not received by Paylocity in accordance with this Section 10.3, all payroll and tax liabilities (including, without limitation, direct deposit, and bank checks) will remain on hold and will not be processed by Paylocity until all funds have been received via a successful wire transfer.

10.4 Right to Hold Funds, Setoff. Paylocity reserves the right to hold funds resulting from a void (reversal) for six banking days to mitigate the risk of returned ACH Transactions for payroll liabilities or employee reversals. Client grants Paylocity the right to set off with any funds retained by Paylocity for purposes of remitting payments or making payments to Client employees, taxing authorities, or other third-party agencies.

Paylocity may allocate funds remitted or otherwise made available to it by Client to any amounts owed to Paylocity hereunder as Paylocity deems appropriate in its sole discretion.

10.5 Sufficient Funds. In connection with the Services subject to this Section 10, Client agrees as follows:
a. All Client-designated bank accounts will have sufficient funds to pay Client’s third-party obligationsin relation to the Services(i.e., employee payroll payments, taxes, agency, or other obligations) within the time periods set forth in this Section 10 in order to satisfy Client’s thirdparty obligations in their entirety. b. If Client fails to have sufficient funds to pay such third-party obligations including, without limitation, penalties, or other fees, then Client shall be responsible for all of Paylocity’s cost of collection of amounts due hereunder, including, without limitation, attorneys’ fees, and costs.
c. In the event Client fails to comply with all its funding requirements under this Section 10, Paylocity reserves the right to terminate the SA effective immediately as set forth in Section 2.2 (Termination) or suspend the Services as set forth in Section 2.4 (Suspension). This is in addition to any other rights Paylocity may have under this SA or under applicable law. Paylocity also reserves the right to reverse employee transactions and/or tax payments for which funds have not been received from Client.

SECTION 11: GOVERNING LAW; VENUE
This SA and all matters arising out of or related to the Agreement shall be governed by and construed in accordance with the laws of the State of Illinois without giving effect to any choice or conflict of law provision or rule of any other jurisdiction. Any legal suit, action, or proceeding arising out of or related to the Agreement shall be initiated in a United States federal, or state court located in the state of Illinois, and each Party irrevocably submits to the jurisdiction of such courts in any such suit, action or proceeding. Each Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to the Agreement.

SECTION 12: MISCELLANEOUS

12.1 Assignment. Neither Party shall assign or otherwise transfer its rights or delegate its obligations under this SA, in whole or in part, without the prior written consent of the other Party. Notwithstanding the foregoing, consent shall not be required if this SA is assigned by Paylocity in connection with a merger, acquisition, change of control, or sale of all or substantially all of the assets to which this Agreement relates. Any purported assignment or delegation in violation of this Section will be null and void.

12.2 Force Majeure. Neither Party will be deemed in breach hereunder for any interruption or delay in the performance of its obligations hereunder (not including any payment obligations) if the interruption or delay is due to unforeseen events which are beyond the reasonable control of such Party, such as strikes, blockade, war, terrorism, riots, pandemics, or natural disasters, insofar as such an event prevents or delays the affected Party from fulfilling its obligations and such Party is not able to prevent or avoid it at a reasonable cost.

12.3 Publicity. During the Subscription Term and at all times after its termination or expiration, Client must not make any media release or other public announcement relating to or referring to the Agreement without Paylocity’s prior written consent. Client acquires no right to use, without Paylocity’s prior written consent, the terms or existence of the Agreement, the names, trademarks, service marks, or copyrighted materials of Paylocity in any advertising, publicity, press release, presentation, or promotion.

12.4 Limitation of Actions. No action arising under or in connection with this SA may be brought by Client or Paylocity more than two (2) years after such Party becomes or should reasonably have become aware of the occurrence of events giving rise to the cause of action.

12.5 Notices. Any notice or communication required or permitted under the Agreement will be in writing and sent to Client at the address set forth in the Order or to the email address set forth in the Client’s account within the Subscription Services and sent to Paylocity at Paylocity Corporation, Attn; Legal Department, 1400 American Ln, Schaumburg, IL 60173 or to [email protected]. Such notice will be deemed to have been received by the addressee upon: (a) personal delivery; (b) the second business day after being mailed or couriered, postage or delivery pre-paid; or (c) the day of sending by email (if sent on a business day, or else on the next business day), except for notices of breach (other than for non-payment) or an indemnifiable claim, which for clarity must be made by mail or courier, postage or delivery pre-paid.

Notwithstanding the foregoing, Paylocity may also provide notice electronically via posting on our website, in-product notices, or on our selfservice portal or administrative center, as applicable. 879
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Paylocity SA, v 29, Feb 2024

12.6 Authorization to Review Credit. Client understands that this SA may be considered as an application for credit and hereby authorizes Paylocity to review the credit of Client, including reports from credit bureaus, references, bank account ownership and status, bank account transaction history, and other available financial information.

12.7 Integration; Order of Precedence. The Agreement sets forth the entire agreement between you and Paylocity relating to the Services and any Professional Services and supersedes all prior and contemporaneous oral and written agreements. Client agrees that its purchase of any Service is not contingent on the delivery of any future functionality or features, or dependent on any oral or written public comments made by Paylocity regarding future functionality or features. If there is a conflict between this SA and other agreements or ordering documents referenced herein, the following order of priority will control: (a) the DPA (solely with respect to the Parties’ obligations to protect personal data, subject to the Limitation of Liability and other terms contained herein); (b) the Additional Service Terms (but only with respect to the applicable Additional Service); (c) this SA; and (d) the Order or other Paylocity ordering document (but only with respect to the applicable Service or Professional Service). Client’s additional or different terms and conditions will not apply, whether included in a purchase order or otherwise. Paylocity reserves the right to update the terms of the Agreement from time to time upon written notice to you.

12.8 Waiver; Enforceability. No waiver will be implied from conduct or failure to enforce or exercise rights under the Agreement, nor will any waiver be effective unless in a writing signed by a duly authorized representative on behalf of the Party claimed to have waived. If any portion of the Agreement is determined to be invalid, illegal, or unenforceable, the remainder of the Agreement shall nonetheless remain in full force and effect.

880
Investment Summary
July 26, 2024 | Quote # Q-198885 | Quote valid for 30 days page 1 of 3
Client Company
City of Banning
99 E Ramsey St
Banning, CA 92220-4837
9519223130
Client Contact
Lincoln Bogard
99 E Ramsey St
Banning,CA 92220-4837
9519223130
*Total Annual Investment includes estimated annual fees *Annualized fees do not include usage based fees
*Monthly fees based on # of Active Employees as defined in the Service Agreement
**Plus sales tax if applicable
See following pages for lineitem
breakdown ofservices
This Investment Summary (“Investment Summary” or “Order”) is governed by the Paylocity Subscription Agreement found here together with any additional terms specified below. Any terms and conditions referenced on a Client purchase order shall not apply to this Investment Summary.

By signing below, Client agrees to the terms and conditions of this Investment Summary and the SA which shall be effective as of the date of Client’s signature below (“Order Effective Date”).

Paylocity Account Executive Date
Signature
Total Employee Count Monthly Fee
240 $6,672.67
One-Time Fees
$2,500.00
Total Annual Investment
$82,332.04
Promotion Applied
Free Months Payroll - 1 Month Free
See terms & conditions for additional details
*DateSigned1
Heather Pesta

Client Authorization Date
Name (Print)
Signature *Signature1
881
Investment Summary
July 26, 2024 | Quote # Q-198885 | Quote valid for 30 days One-Time Fees Qty Rate Price
HCM Bundle $0.00
Payroll Implementation - - Included
General Ledger Implementation - - Included
Time & Labor Implementation - - Included
Benefits Administration Implementation - - Included
Carrier Benefits EDI/API Implementation 1 $0.00 $0.00
Human Resources Implementation - - Included
Self-Service Portal Implementation - - Included
Time Off Implementation - - Included
Historical Data Conversion
Current Year Check Detail Import 1 $0.00
History Bundle Import - Check Detail, Department/Position, and Pay Rate 5 $500.00 $2,500.00 One-Time Total $2,500.00
*First 4 Carrier Benefit EDIs/APIs free at the time of Benefits Administration implementation.

Price reflects number of carriers over 4. Be advised that each carrier counts towards the four free. Additional carriers will incur a fee.*
Monthly Fees Base Qty Rate Monthly
HCM Bundle $106.27 240 $27.36 $6,672.67
Payroll
 Payroll Processing - - - Included
 Expense Management - - - Included
 Unlimited Payroll Runs - - - Included
 Prorated & Retro Pay - - - Included
 New Hire Reporting - - - Included
 Direct Deposit - - - Included
 On Demand Payment - - - Included
 Check Printing Service - - - Included
 Tax Filing & Payments - - - Included
 General Ledger - - - Included
Time & Labor
 Time & Attendance - - - Included
 Scheduling + - - - Included
 Time Collection - - - Included
Benefits
 Benefits Administration - - - Included
 Carrier Benefits EDI/API - 1 - Included
 Benefits Decision Support - - - Included
Human Resources
 Human Resources Management - - - Included
 Workflows Process Automation - - - Included
 Centralized Document Library - - - Included
 Unlimited Custom Fields - - - Included
 Fillable Employee Forms - - - Included
 Time Off Management - - - Included
 Employee Self-Service - - - Included
 Position Management - - - Included
882
Investment Summary
July 26, 2024 | Quote # Q-198885 | Quote valid for 30 days  Org Chart & Directory - - - Included
 Skills & Certifications Management - - - Included
 ACA Tracking & Reporting - - - Included
 Compliance Management - - - Included
 Employment Verification - - - Included
 HR Edge - - - Included
Talent
 Recruiting - - - Included
 Onboarding - - - Included
 Learning Management - - - Included
 Performance Management - - - Included
 Compensation Management - - - Included
Employee Experience
 AI Assist - - - Included
 Community + - - - Included
 Recognition & Rewards - - - Included
 Mobile App - - - Included
Insights & Reporting
 Data Insights - - - Included
 Dynamic Reporting - - - Included
 Modern Workforce Index - - - Included
Customer Service
 Dedicated Account Management - - - Included
 On Demand Training (PEAK) - - - Included
 Unlimited Product Training - - - Included
Monthly Total $6,672.67
There is no fee to the company for On Demand Payment; however, employees will be charged $1.25 per transaction.

Annual Fees Base Qty Rate Annual
W2 / 1099 $50.00 240 $7.00 $1,730.00
Annual SSN Verification $25.00 240 $0.50 $145.00
1095 Forms $25.00 240 $1.50 $385.00
Annual Total $2,260.00
Usage-Based Fees Base Rate
Garnishment Managed Services $7.40
Delivery Next Day (UPS) $20.00
Split Pack $6.00
The fees listed above are invoiced as incurred on per usage basis in accordance with the terms and conditions. Please note these fees are in addition to the ongoing fees stated in the Investment Summary section of the quote. 883
Investment Summary
July 26, 2024 | Quote # Q-198885 | Quote valid for 30 days Additional Terms
The following additional terms and conditions apply to the Services described herein. Capitalized terms used herein and not otherwise defined have the meaning ascribed to such terms in the Paylocity Subscription Agreement.

1. Subscription Term
a) Initial Subscription Term: The Initial Subscription Term commences on Service Start Date and continues for a period of one month. “Service Start Date” means (i) to the extent the Order does not cover any payroll services, the Order Effective Date or (ii) in the case of an Order that contains payroll services, on the date of First Payroll Processing. “First Payroll Processing” means any use of Paylocity’s Services by or on behalf of Client to administer payroll.
(b) Renewal Term: Upon conclusion of the Initial Subscription Term, the Services automatically renew for a period of one month at a time.

2. Additional Pricing and Payment Terms
(a) Implementation Fees are non-cancellable and non-refundable as of the Order Effective Date. (b) Implementation Fees are due by Client upon the Order Effective Date. (c) Paylocity reserves the right to update the price for the Services at any time commencing one year after the Order Effective Date, ("Initial Pricing Term").Fees payable for the same Services described herein. (d) Client agrees to allow Paylocity to debit from its account(s) on due date any and all fees due to Paylocity under this Agreement and in the same manner that payroll and tax funds are collected.
(e) Termination Fee: If Client terminates the Agreement with any less than 30 days prior written notice, Client shall pay a termination fee equal to the average monthly amount billed for the Services over the prior 12 month period immediately preceding the termination (or if less than twelve (12) months has elapsed, the monthly average amount billed to Client over the months the Agreement was in effect prior to the termination date.)
Provided CLIENT is in compliance with the terms of the Agreement, the CLIENT will not be charged for the 2nd month following first month of payroll processing.

3. Service Specific Terms and Conditions
By signing this ordering document, Client agrees to be bound by the Recognition & Rewards Terms and Conditions found here.

By signing this ordering document, Client agrees that for purposes of the Go1 Training content (“Learning Management”), in addition to the terms of the applicable Subscription Services Agreement, Client shall comply with the Go1 terms of use found here.

Notwithstanding anything to the contrary in the Subscription Agreement, Paylocity’s total cumulative liability for any and all claims arising from or relating to Benefits Decision Support and Client’s use thereof shall be limited to an amount equal to the total fees paid by Client to Paylocity for Benefits Decision Support in the twelve (12) months immediately preceding the incident giving rise to the claim. 884

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: David Newell, Community Development Director MEETING DATE: October 22, 2024
SUBJECT: Consideration of Resolution 2024-172, Denying an Appeal Filed by Two Brothers 14 Corporation of the Denial of a Business License to Operate a Tobacco Sales Retailer Located at 300 South Highland Drive #8A; and Making Findings in Support Thereof
RECOMMENDATION:

Adopt Resolution 2024-172.

BACKGROUND:

The subject appeal was submitted by Artemis Law Group on behalf of the business license applicant, Two Brothers & 14 Corporations, Inc. ("Applicant"), in response to the City's denial of a business license application ("Application") seeking approval to operate a tobacco retail store, Heavy Clouds Vapes and More, within the Sun Lakes Village Shopping Center. The Application was submitted online through the City's business license portal on July 8, 2024. The Applicant was notified of an invoice on July 9, 2024.

After paying the invoice, a business license certificate ("Certificate") was issued by a City vendor administering licenses in the online portal on July 15, 2024; however, prior to this issuance, the Community Development Department ("Department") hadn't completed its review of the Application. A business license does not allow businesses to operate that are not compliant with the Municipal Code, General Plan, or any Specific Plan.

The tobacco retailer is proposed within a tenant space at 300 S. Highland Drive, which is part of the Sun Lakes Specific Plan. This Specific Plan designates this shopping center as Commercial/Office, and pursuant to the list of permissible uses in Section VI of the Specific Plan, a tobacco retailer is not identified as a permitted use in this zone. A copy of the use table is included as an attachment.

On September 19, 2024, the Applicant was notified by the Department that this business is not identified as a permitted use in the Sun Lakes Specific Plan and the Application was denied. On September 30, 2024, the appeal was filed within fifteen days of the Department's decision, pursuant to Section 5.04.170 of the Banning Municipal Code ("BMC").

JUSTIFICATION:

The City processes business license applications under Title 5 of the Municipal Code. Section 5.04.170 of this Title states, "any person aggrieved by any decision of the license collector or of any other officer of the city made pursuant to the provisions of this chapter may appeal therefrom to the Council within fifteen days...[and] the clerk shall cause the matter to be set for hearing before the council within thirty days...." In response to the Department's denial, the Applicant filed a timely appeal and the City has complied with scheduling the matter for Council consideration. In the attached letter, the Applicant lists five reasons for overturning this decision. Staff has provided a summary of these points and response 885
below.

1. Inconsistent Issuance. The applicant states that, after applying for the business license, an email was received stating a balance was due and that "any additional requirements needed for your business type must be completed prior to the issuance of your business license certificate." A subsequent email was received requesting a fire inspection and a copy of the tobacco retail license with no indication of any zoning issues. After paying the balance due, a business license certificate was issued and the issuance of this certificate, per BMC Section 5.04.110(B), indicates that the business was in the proper zone.

Staff's Response: Section 5.04.030 states that "any persons required to pay a business tax for transacting and carrying on any business under this chapter shall...remain subject to the regulatory provisions of other ordinances." Furthermore, Section 5.04.010 defines a business license certificate:
"'Certificate' means the business tax payment certificate issued to the taxpayer upon the payment of the business tax. It is not a permit to engage in business. It is the document issued upon the payment of the business tax." In this case, the Applicant is required to comply with zoning provisions, which do not allow a tobacco retailer at the proposed location. A zoning clearance was not provided at any time and the collection of a business tax does not constitute a right to forego zoning compliance and engage in business.

2.Compliance with Local Ordinances. The Applicant believes the proposed business is fully compliant with all local, state and federal regulations, and there has been no communication that would impact the Applicant's ability to operate at the proposed location. The alleged zoning issue clearly existed when the certificate was originally issued.

Staff's Response: As stated above, a zoning clearance was not provided at any time and the collection of a business tax does not constitute a right to forego zoning compliance and engage in business.

3. Financial and Operational Impact. The Applicant states that the rejection of the business license has caused significant financial strain, due to the reliance on the certificate issued by the city.

4. Improper Internal Procedure to Issue Business Certificate. The Applicant contends that even if a zoning restriction exists, the City should have verified compliance before issuing the certificate.

5. Request for Clarification. The Applicant seeks clarification of any specific concerns, requirements, documentation or adjustment to comply with City regulations, that have arisen since the certificate issuance and notes a willingness to cooperate.

Staff's Response, Items 3, 4 and 5: While understanding of the Applicant's frustration, the City is obligated to uphold the current law and ensure all businesses are property located based on municipal and zoning requirements. The proposed tobacco retail store is not identified as a permitted use at 300 S Highland Drive, based on Section VI (Permitted Land Uses) of the Sun Lakes Specific Plan. Should they wish to pursue the proposed use in the proposed location, the Applicant may seek and obtain Council's approval of an amendment to the Specific Plan to permit or conditionally permit the use in the Plan area, as provided in BMC Chapter 17.116.

FISCAL IMPACT:

None. The Applicant has paid the appeal filing fee, which cover costs associated with the appeal process.

ALTERNATIVES:

Accept the appeal and direct staff to return with a Resolution approving the business license.

BUDGETED?:

No
886
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution 2024-172, Business License Appeal.docx

2. Appeal Letter - Heavy Clouds Vapes & More.pdf

3. Sun Lakes Permitted Uses.pdf
887
Resolution 2024-172

Page 1 of 4 ends

RESOLUTION 2024-172

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA DENYING AN APPEAL FILED BY TWO BROTHERS 14 CORPORATION OF THE DENIAL OF A BUSINESS LICENSE TO OPERATE A TOBACCO SALES RETAILER LOCATED AT 300 SOUTH HIGHLAND DRIVE #8A AND MAKING FINDINGS IN SUPPORT THEREOF WHEREAS, the City of Banning (“Banning”) has enacted a business license requirement to raise revenue for municipal purposes under Title 5 (“Business licenses and Regulations”) of the Banning Municipal Code (“Municipal Code” or “BMC”); and WHEREAS, Section 5.04.040 of the Municipal Code makes it unlawful for any person to transact and carry on any business, trade, profession, calling or occupation in the City without first having procured a business tax certificate from the City; and WHEREAS, under Section 5.04.030 of the Municipal Code, persons required to pay the City’s business tax remain subject to the regulatory provisions of other City ordinances; and WHEREAS, under Section 5.04.110 of the Municipal Code provides that no business tax certificate shall be issued on any application if the location of the business, trade, profession or occupation is not located in the proper zone as set forth in the City’s Zoning Ordinance; and WHEREAS, the City’s Zoning Ordinance (BMC § 17.04.030), provides that no land shall be developed for any purpose which is not in conformity with any applicable Specific Plan; and WHEREAS, on July 8, 2024, Two Brothers 14 Corporations, Inc., dba Heavy Clouds Vapes and More (“Appellant”), applied for a City business tax certificate for a tobacco retail store at 300 South Highland Avenue, #8A, (“Site”) which is located within the Sun Lakes Specific Plan (“Specific Plan”); and
WHEREAS, the Specific Plan designates the Site as Commercial/Office, and Section VI(B)(1) of the Specific Plan does not identify tobacco retail as a permitted use in the Commercial/Office designation; and
WHEREAS, on July 14, 2024, a business tax certificate was issued to the Appellant in error because their application had not yet been reviewed by the City’s Community Development Department to ensure the proposed use complied with the City’s Zoning Ordinance; and WHEREAS, on September 19, 2024, the City denied the Appellant’s application for a business tax certificate because the proposed use was not allowed on the Site under the Specific Plan and therefore did not comply with the City’s Zoning Ordinance; and WHEREAS, on September 30, 2024, the Appellant filed a timely appeal of the denial of their application to the City Council in accordance with Section 5.04.170 of the Municipal Code, along with their proposed grounds for granting the appeal; and WHEREAS, on October 22, 2024, the City Council held a duly noticed hearing on the Appellant’s appeal, at which the Appellant and all other persons wishing to address the City Council on the matter were permitted to do so; and
WHEREAS, all legal prerequisites to adoption of this resolution have occurred. 888
Resolution 2024-172

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NOW, THEREFORE, the City Council of the City of Banning does hereby resolve, determine, find, and order as follows:

SECTION 1. Adoption and Incorporation of Recitals. Based on the entirety of the administrative record in this matter, including all testimony and evidence presented during the public hearing referenced above, the City Council hereby finds that all facts set forth in the Recitals of this Resolution are true and correct and hereby incorporated herein.

SECTION 2. Findings on Appeal. Based on the entirety of the administrative record in this matter, including all testimony and evidence presented during the public hearing referenced above and the facts set forth in the Recitals of this Resolution, the City Council hereby finds as follows: (i) a business tax certificate cannot be issued unless the proposed business complies with the requirements of the Zoning Ordinance and, in this case, the Specific Plan does not permit the operation of tobacco retail store on the Site; and (ii) even if a business tax certificate was initially issued to the Appellant in error, the Appellant remains subject to all other regulatory provisions of the Municipal Code and such error does not relieve the Appellant from compliance with the Zoning Ordinance.

SECTION 3. Decision on Appeal. Based on the entirety of the administrative record in this matter, including all testimony and evidence presented during the public hearing referenced above and the facts and findings set forth above, the City Council hereby denies the Appellant’s appeal. The findings and decision of the City Council shall be final and conclusive.

SECTION 4. CEQA Findings. The decision to reject the appeal application is not subject to the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15270, which states CEQA doesn’t apply to projects which a public agency rejects or disapproves. The City Council has reviewed the administrative record concerning the proposed actions and the proposed CEQA determination, and based on its own independent judgment, finds that the proposed actions set forth in this Resolution are not subject to, or exempt from, the requirements of CEQA and the State CEQA Guidelines pursuant to CEQA Guidelines Section 15270.

SECTION 5. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Resolution or any part hereof is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portion of this Resolution or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared invalid or unconstitutional.

SECTION 6. Certification. The City Clerk shall certify to the adoption of this Resolution and shall cause the certified Resolution to be filed in the book of original resolutions.

SECTION 7. Notice of Decision. Pursuant to Section 5.04.170 of the Municipal Code, the City Clerk shall give the Appellant notice of the City Council’s decision by providing a copy of this Resolution within three days of its adoption.
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PASSED, APPROVED AND ADOPTED this 22nd day of October 2024.

Alberto Sanchez, Mayor
City of Banning
ATTEST:

Caroline Patton, Administrative City Clerk
City of Banning
APPROVED AS TO FORM:

Serita Young, City Attorney
Richards, Watson & Gershon
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CERTIFICATION:

I, Caroline Patton, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2024-172, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 22nd day of October 2024 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
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Banning City CouncilOctober 22, 2024

Banning City Council
October 22, 2024