The following information comprises the minutes for a regular meeting of the City Council, a joint meeting of the Banning City Council and Banning Utility Authority and a joint meeting of the Banning City Council and the Banning City Council sitting in its capacity as the Successor Agency Board.
MINUTES 10/22/2024
CITY COUNCIL REGULAR MEETING
COUNCIL MEMBERS PRESENT: Council Member Sheri Flynn
Council Member David Happe
Mayor Alberto Sanchez
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: Mayor Pro Tem Minjares
OTHERS PRESENT: Doug Schulze, City Manager
Serita Young, City Attorney
Caroline Patton, Administrative City Clerk
John Garside, Multimedia Specialist
Lincoln Bogard, Administrative Services Director
Art Vela, Director of Public Works
David Newell, Community Development Director
Nate Smith, Deputy Director of Public Works/City Engineer Barbara Mason, Purchasing Manager
1. CALL TO ORDER
Mayor Sanchez called the regular meeting to order at 5:40 p.m.
1.1. Invocation – Reverend Cecil Swindell led the invocation.
1.2. Pledge of Allegiance
1.3. Roll Call
COUNCIL MEMBER PRESENT ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
2. AGENDA APPROVAL
2.1. Approve Agenda
Motion to approve the agenda, moving agenda item 8.3 to follow the Consent Agenda and precede Public Hearings.
Motion by Council Member Wallace
Seconded by Council Member Flynn
Regular Meeting Minutes 10/22/2024 Page 2 of 9
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
3. PRESENTATIONS
3.1. Proclamation – First Baptist Missionary Church 75th Anniversary Recognition
4. REPORT ON CLOSED SESSION
Serita Young, City Attorney, reported that as to Agenda Item 3.1, there was discussion and direction provided to staff with no final nor reportable action.
5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, CITY COUNCIL
COMMITTEE REPORTS, CITY MANAGER REPORT, AND CITY ATTORNEY REPORT
5.1. PUBLIC COMMENTS
The following individuals addressed City Council during Public Comment:
• Gladys “Sue” Savage
• Inge Schuler
• Kent Anguiano
• Jack Gunderson
• Bill Hobbs
5.2. CORRESPONDENCE
Two items of correspondence were received and distributed to City Council prior to the meeting.
5.3. APPOINTMENTS
None
5.4. CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace reported on a CalCities Conference and a recent Community Day promoting Public Safety.
Mayor Sanchez reported on the CalCities Conference.
Council Member Flynn reported on the State of the City for Banning and San Jacinto. She also reported on the CalCities Conference.
Council Member Happe reported on the State of the City for Banning.
5.5. CITY MANAGER REPORT
City Manager Schulze reported on the upcoming Christmas Parade and the Trunk or Treat Event hosted by the Parks and Recreation Department.
Regular Meeting Minutes 10/22/2024 Page 3 of 9
5.6. CITY ATTORNEY REPORT
City Attorney Young had no report.
5.7. CITY TREASURER REPORT
City Treasurer Geronimo reported on a meeting of the Budget and Finance Committee.
6. CONSENT AGENDA
6.1 Approval of the Meeting Minutes for the October 8, 2024 City Council Meetings
6.2 Receive and File Accounts Payable and Payroll Warrants Issued in the Month of September 2024
6.3 Receive and File Cash and Investments Report for the Month of September 2024
6.4 Receipts, Disbursements, & Fund Balances Reporting for Fiscal Year 2024-25, Period 3, September 2024
6.5 Receive and File Police Department Statistics for the Month of September 2024
6.6 Receive and File Fire Protection Services Statistics for the Month of September 2024
6.7 Public Works Capital Improvement Project Tracking List
6.8 Code Enforcement Update and Statistics for the Month of September 2024
6.9 Receive and File Contracts Approved Under the City Manager’s Signature Authority and Inventory Reports for September 2024
6.10 City Council Travel and Conference Expense Report Year to Date Through September 30, 2024
6.11 Consideration of Resolution 2024-165, Approving of the Grant Agreement Between the City of Banning and the State of California - Office of Traffic Safety (OTS) for the FY 2024-2025 Selective Traffic Enforcement Program (STEP) Grant, and Acceptance of the OTS STEP Grant Award in the Amount of $95,000
6.12 Consideration of Resolution 2024-166, Awarding a Construction Contract for Project No. 2023-15W Ramsey Street Water Main Replacement - Phase 1 to MCC Pipeline, Inc. of Yucaipa, CA in the Amount of $1,199,106.33 and Approving a 10% Contingency for a Total Project Budget of “Not-to-Exceed” $1,319,016.96
6.13 Consideration of Resolution 2024-167, Authorizing the City Manager to Execute an Agreement with the California Board of State and Community Corrections (BSCC) for the Proposition 47 Safe Neighborhoods and Schools Grant Program Public Comment
None
Motion to adopt consent agenda items 6.2 through 6.4, 6.6 through 6.8, 6.11, and 6.13
Motion by Council Member Wallace
Seconded by Council Member Flynn
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Regular Meeting Minutes 10/22/2024 Page 4 of 9
Motion approved by a vote of 4-0, with 1 absence
6.1 Approval of the Meeting Minutes for the October 8, 2024 City Council Meetings Caroline Patton, Administrative City Clerk, reported on a change to the regular meeting minutes for October 8, 2024.
Public Comments
None
Motion to adopt the Meeting Minutes for the October 8, 2024 City Council Meetings.
Motion by Council Member Happe
Seconded by Council Member Wallace
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
6.5 Receive and File Police Department Statistics for the Month of September 2024 Public Comments
None
6.9 Receive and File Contracts Approved Under the City Manager’s Signature Authority and Inventory Reports for September 2024
Barbara Mason, Purchasing Manager, and Lincoln Bogard, Administrative Services Director, answered City Council questions about the report.
Public Comments
None
6.10 City Council Travel and Conference Expense Report Year to Date Through September 30, 2024
Barbara Mason, Purchasing Manager, and Lincoln Bogard, Administrative Services Director, answered City Council questions about the report.
Public Comment
None
6.12 Consideration of Resolution 2024-166, Awarding a Construction Contract for Project No. 2023-15W Ramsey Street Water Main Replacement - Phase 1 to MCC Pipeline, Regular Meeting Minutes 10/22/2024 Page 5 of 9
Inc. of Yucaipa, CA in the Amount of $1,199,106.33 and Approving a 10% Contingency for a Total Project Budget of “Not-to-Exceed” $1,319,016.96 Art Vela, Director of Public Works, reported on a change to the resolution.
Public Comment
• Frank Connolly
Motion to adopt Resolution 2024-166 as amended.
Motion by Council Member Wallace
Seconded by Council Member Happe
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
Reordered under Agenda Item 2.1.
8.3. 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
David Newell, Community Development Director, presented the staff report.
Public Comment
• Mansour Jafarian, representing the appellant
• Christian Garcia and Mosab Snoubar, appellants
• Juanita Diaz
• Kathleen Dale
• Dorrie Gartzke
• Frank Connolly
Motion to call the question and adopt the Resolution 2024-172.
Motion by Council Member Flynn
Seconded by Mayor Sanchez
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Regular Meeting Minutes 10/22/2024 Page 6 of 9
Motion approved by a vote of 3-1, with 1 absence.
7. PUBLIC HEARING(S)
7.1 Consideration of Resolution 2024-168, Adopting a Proposed Amendment to the Fire City Department and Fee Group Schedule of the City of Banning Master User Fee Schedule to Adopt New and Increase Certain Fees and Charges Related to Annual Fire Inspections, Plan Checks, and Other Fire Prevention Services and Making a Determination of Exemption under CEQA
David Newell, Community Development Director, presented the staff report. Mikki Sherry, Supervising Fire Marshal, assisted with the report.
Mayor Sanchez opened the public hearing.
Public Comment
• Frank Connolly
Mayor Sanchez closed the public hearing.
Motion to adopt Resolution 2024-168.
Motion by Council Member Flynn
Seconded by Council Member Wallace
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
7.2 Consideration of Resolution 2024-169, Approving Electric Rate Increases and Revisions to Certain Electric Rates and Tariffs
Art Vela, Director of Public Works, presented the staff report.
Mayor Sanchez opened the public hearing.
Public Comment
• Cindy Barrington
• Kathleen Dale
Mayor Sanchez closed the public hearing.
Motion to adopt Resolution 2024-169.
Motion by Council Member Wallace
Regular Meeting Minutes 10/22/2024 Page 7 of 9
Seconded by Council Member Happe
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
Mayor Sanchez announced a recess at 8:33 p.m. The meeting was reconvened at 8:48 p.m.
8. REPORTS OF OFFICERS
8.1 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
Nate Smith, Deputy Director of Public Works/City Engineer, presented the staff report.
Public Comment
None
Motion to adopt Resolution 2024-170.
Motion by Mayor Sanchez
Seconded by Council Member Wallace
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
8.2 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
Lincoln Bogard, Administrative Services Director, presented the staff report.
Public Comment
None
Regular Meeting Minutes 10/22/2024 Page 8 of 9
Motion to adopt Resolution 2024-171.
Motion by Council Member Wallace
Seconded by Council Member Happe
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
9. DISCUSSION ITEM(S)
None
10. ITEMS FOR FUTURE AGENDAS
10.1. New Items:
None
10.2. Pending Items:
1. Grow Banning (Sanchez)
2. Neighborhood Groups/Identities (Minjares)
3. Update on Community Garden (Flynn)
4. Zencity Contract (Flynn)
5. Zoom Options for Public Meetings (Flynn)
6. Developer Presentation on Sunset Crossroads Project (Flynn)
7. City Manager Evaluation (Flynn)
8. All Active Lawsuits against the City (Flynn)
9. Increased Compensation for City Treasurer and City Clerk (Flynn)
11. ADJOURNMENT
Motion to adjourn.
Motion by Mayor Sanchez
Seconded by Council Member Wallace
COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
Motion approved by a vote of 4-0, with 1 absence.
The meeting was adjourned at 9:07 p.m.
Regular Meeting Minutes 10/22/2024 Page 9 of 9
Minutes Prepared by:
Caroline Patton, Administrative City Clerk
These minutes have been prepared as Action Minutes in accordance with City Council Resolution 1995-21 and Government Code Sections 36814, 40801, and 54953(c)(2).
This entire meeting and all associated documents may be viewed here:
https://banningca.granicus.com/ViewPublisher.php?view_id=1 ATTACHMENTS:
Exhibit A – Public Comment Received
Exhibit B – Agenda Item 5.5: City Manager’s Report
Exhibit C – Agenda Item 8.3: Staff Presentation
Exhibit D – Agenda Item 7.1: Staff Presentation
Exhibit E – Agenda Item 7.2: Staff Presentation
_ To: The Banning City Council
The residents of Sun Lakes Country Club chose to move into the community because it met the needs of these residents who were entering the latter stages of their life. The surrounding community offered a slower pace of life with adequate resources for their everyday needs. The air quality was good. The traffic was moderate. The neighbors were nice. The city was looking after the public health, safety, and welfare of its citizens and the community.
This approach to choosing where you live is likely not so different from how some members of the City Council choose the homes they live in. They want a safe, clean neighborhood with a quality school close to home for their children and not too far from work. We ask the Council:
If your children's school is shut down or there was a factory constructed across the street from the school that produced constant fumes and noise surrounding the playground, would you consider re-locating to another neighborhood? As a person who is 30 to 50 years younger than most Sun Lakes residents, you nave the option to re-locate.
We, in Sun Lakes, are not in our prime earning years and our options are limited due to health issues and reduced income. We ask the City Council to delay any vote on the Banning Point Project until after they take into consideration that Sun Lakes Country Club alone represents nearly 20 percent ofBanning's total residential population, and this population is going to be negatively affected by the development of the Banning Point Project for the rest of their natural lives.
We ask the Banning City Council to also take into consideration that the City is still looking for land to develop low density and/or medium density housing. A small apartment complex built to house our own Banning seniors whose income would not allow them to purchase or rent homes in Sun Lakes would be a godsend to many. The City is also trying to encourage the reopening of a new Department of Motor Vehicles building. With so many seniors within a twoor three-mile radius of this property, a medical facility providing medical specialists would be well supported. A facility like this would bring residents from many of the surrounding cities to take advantage ofBanning's Specialist facility. Any of these options could be developed on the Banning Point 4 7 acres. Consider promoting and soliciting developers for these types of projects. Allow the current developer to re-locate to an area farther away from existing, mature developments designed to house seniors, and allow the current developer to negotiate with the owners of one of the many empty warehouses already collecting dust.
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CITY OF BANNING
OCT IO 2024
CITY MANAGER'S OFFICE
BY:
Exhibit A
Gladys "Sue" Savage comments for Oct 22, 2024 Banning City Council meeting commencing at 5:00 pm.
My name is Gladys Sue Savage.
When is Banning going to be held accountable to obey the law? At the last City Council meeting, the city manager denied discussing the Treasurer in July. The city clerk has copies of the July staff report when the City Manager did discuss Banning's City Treasurer. He states other cities are not complying with California law for Treasurers either. Attending the July 2022 meeting were City Council members Mary Hamlin, Kyle Pingree, Alberto Sanchez and Colleen Wallace. David Happe was absent. Kevin Ennis was city attorney. Doug Schultz was city manager. Carolyn Patton was deputy city clerk. Should these people be held accountable for disregarding California law? I, Gladys Sue Savage, am campaigning for Banning City Treasurer to perform the seven Lawful Treasurer duties listed on the City Manager's July 2022 staff report.
Including:
1. (Section 41001) Receiving and safely keeping all money into my hands as treasurer including the investment portfolio;
2. (Section 41002) Complying with all laws governing the deposit and securing of public funds, and the handling of trust funds in my treasurer possession;
3. (Section 41003) Paying out money only on warrants signed by legally designated persons;
4. (Section 41004) Providing a written report accounting for all receipts, disbursements and fund balances;
5. (Section 41005) Performing duties of collection of city taxes and license fees as are prescribed by Banning city ordinance;
6. (Section 41006) Appointing deputies for whose actions I and the city bondsman are responsible;
7. (Section 41007) The deputies serve at the pleasure of the Treasurer and receive compensation as is provided by City Council.
I am campaigning to be Department Head of the Banning Treasurer Department and as such, I expect to be fairly, equitably and commensurately compensated.
I request my comments be included in tonight's City Council Meeting minutes.
Thank you.
CITY OF BANNING
STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
MEETING DATE: July 12, 2022
SUBJECT: Report on City Treasurer Duties and Responsibilities/Scope of Comments under Brown Act
RECOMMENDATION:
No action requested.
BACKGROUND:
During the June 28, 2022 City Council meeting, a request was made to discuss the Elected City Treasurer time allowed for comment during meetings of the City Council.
Questions have been raised regarding the City Treasurer's ability to participate in City Council meetings without time limitations/restrictions.
First, it is important to understand the duties and responsibilities of a City Treasurer, as established in California Government Code Sections 41001-41007, Chapter 3. The duties and responsibilities are:
• 41001. The city treasurer shall receive and safely keep all money coming into his hands as treasurer.
• 41002. He shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his possession. • 41003. He shall pay out money only on warrants signed by legally designated persons.
• 41004. Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. He shall file a copy with the legislative body. • 41005. The city treasurer shall perform such duties relative to the collection of city taxes and license fees as are prescribed by ordinance.
• 41006. The city treasurer may appoint deputies for whose acts he and his bondsmen are responsible.
• 41007. The deputies shall hold office at the pleasure of the city treasurer and receive such compensation as is provided by the legislative body.
The elected city treasurer position for the City of Banning does not perform these duties as they are all performed by the City Finance Department under the direction of the 41 The fo llowing information comprises th e minutes for a regular meeting of the City Council, a joint meeting of the Banning City Council and Banning Utility Authority and a joint meeting of the Banning City Council and the Banning City Council sitting in its capacity as the Successor Agency Board.
MINUTES
CITY COUNCIL
7/12/2022
REGULAR MEETING
COUNCIL MEMBERS PRESENT: Council Member Mary Hamlin
Mayor Kyle Pingree
Council Member Alberto Sanchez
Mayor Pro Tern Colleen Wallace
COUNCIL MEMBERS ABSENT: Council Member David Happe
OTHERS PRESENT:
*Participated via Zoom.
1. CALL TO ORDER
Doug Schulze, City Manager
Kevin Ennis, City Attorney
Marie Calderon, City Clerk
Caroline Patton, Deputy City Clerk
Art Vela, Director of Public Works
Lincoln Bogard , Finance Director
Thomas Miller, Electric Utility Director
Adam Rush, Community Development Director
Laurie Sampson, Ass istant City Manager
John Garside, Multimedia Specialist
Mayor Pingree called the regular meeting to order at 5:00 p.m.
1.1. Invocation - Matthew Hamner, Chief of Police, performed the invocation.
1.2. Pledge of Allegiance - Mayor Pro Tern Wallace led the Pledge of Allegiance.
1.3. Roll Call
COUNCIL MEMBER
Hamlin, Mary
Happe, David
Pingree, Kyle
Sanchez, Alberto
Wallace, Colleen
PRESENT
X
X
X
X
ABSENT
X
10/7/24, 4:24 PM
Metropolitan News-Enterprise
Thursday, August 8, 2024
Court of Ap_P-eal:
City May Not Strip Elected Officer of Duties by Ordinance City May Not Strip Elected Officer of Duties by Ordinance Opinion Says Oxnard 's Actions to Reduce Authority of Treasurer Amounted to 'Un-Electing' of Candidate
By Kimber Cooley, Associate Editor
Div. Six of this district's Court of Appeal held yesterday that actions by the City of Oxnard to strip its elected treasurer of certain duties-and substantially reduce his compensation-impermissibly undermined the statutory authority provided to the office under the Government Code. "A city treasurer deprived of the office's duties is tantamount to no treasurer," Presiding Justice Arthur Gilbert said in an unpublished opinion. "The City may not through legerdemain un-elect the office of city treasurer and defeat the choice of the voters."
Justices Kenneth Vegan and Hernaldo J. Baltodano joined in the opm1on.
Inappropriate Comments
The dispute arose after the municipality placed Treasurer Phillip Molina on administrative leave in October 2019 following an 83-page investigative report looking into allegations that Molina made inappropriate comments toward female employees, such as suggesting that they go home and cook for their husbands and wondering if they would give him mouth-to-mouth resuscitation if he suffered a heart attack.
During a May 2020 City Council meeting, Oxnard leaders voted to strip Molina of the bulk of his responsibilities by passing a series of resolutions and ordinances. They also shifted Molina's 19-member staff to a newly created department and reduced his salary from a range of $114,656.88 to $157,652.98 to a fixed $20,418.08, equal to the remuneration of city council members.
At the meeting, Molina accused City Manager Alex Nguyen of running the city like a "dictator."
www.metnews.com/articles/2024/electedofficial_080824.htm 1/3 10/7/24, 4:24 PM City May Not Strip Elected Officer of Duties by Ordinance relies on section 34004 authorizing a transfer of the treasurer's duties .... The City points to no applicable general law that charges the director of finance with duties of the same character as the treasurer's ... duty under section 41004."
He continued:
"A report on the City finances by a treasurer who is directly answerable to the voters is not the same as a report by the director of finance who is answerable to other city officials. The treasurer is independent and can provide a check on other city officials, including the City counsel and the director of finance."
Deletion of Duties
Gilbert reasoned that the deletion of certain duties from a list of responsibilities belonging to the treasurer is without legal effect, saying:
"The duties mandated by state law remain notwithstanding their deletion by the ordinance. For example, one of the duties deleted by the ordinance is to '[p ]erform such duties relative to the collection of City taxes and license fees as are prescribed by ordinance.' That is a duty mandated by section 41005. The deletion of that duty by ordinance does not nullify the statutory duty to collect city taxes and license fees." Finding that the actions by the city to strip ·authority from the elected treasurer were unfounded, the jurist declared:
"The Government Code calls for an elected treasurer. Molina was duly elected. The ordinances as a whole have the intent and effect of removing Molina from his office. For this reason, we reverse. All the challenged ordinances are void and Molina's duties as treasurer are restored. Molina's salary is restored to its previous compensation, including restoration of compensation withheld pending resolution of this case." The case is Molina v. Nguyen, B327286.
Copyright 2024, Metropolitan News Company
www.metnews.com/articles/2024/electedofficial_080824.htm 3/3 10/19/24, 5:23 PM
•• Outlook
Re: District 4 Detailed City Map
From sue savage <[email protected] >
Date Wed 10/16/2024 10:24 AM
To Caroline Patton <[email protected]>
Ms. Patton,
Thank you for your help regarding these matters !
Sue Savage, Banning City Treasurer Candidate
From: Caroline Patton <cpatton@banningca .gov>
Sent: Wednesday, October 16, 2024 9:54 AM
To: sue savage <sue. [email protected]>
Subject: RE : District 4 Detai led City Map
Ms. Savage,
Mail - sue savage - Outlook
The contact is [email protected]. Ye!:! may submtt your comments in person,..at the m~etin$.
Caroline Patton, MPA, CMC
Administrative City Clerk
City of Banning
Offi ce. 95 1-922-3102
Fax . 951-922-3128
99 E. Ramsey Street
Banning, CA 92220
www.banningca.gov
The information contained in this email message is intended only for the use of the individual or entity to which it is addressed and may contain information that is legally privileged and/or confidential. If the reader of this message is not the intended recipient or the employee or agent responsible for delivering the message to the intended recipient, if you have received this communication in error, please notify us immediately by telephone. Thank you. https://ouilook. live. com/mail/0/id/ AQ M kADAwATZiZm YAZC05OGM2LWY0YzQtM DAC L TAwCg BGAAAD FNgockm ITU iY9Xp0Bkw9 1 wcAC R 1 mfZh Y x Uac%2 F xKktK%2 FkcQAAAgEJAAAAC R 1 mfZh YxUac. . . 1 /4 CITY MANAGER’S
REPORT
October 22, 2024
Cowboy Christmas Parade & Tree
Lighting Festival
• Saturday, December 7
• 4p – 8p
• Ramsey/San Gorgonio
• Parade Step-Off 5:30p
• Food Vendors
• Tree Lighting 7:00p
• Santa Photos
• Gift Giveaway
• Snow Sledding Parade
Registration
Exhibit B
Banning Community Calendar
CITY COUNCIL
REPORT OF OFFICERS ITEM NO. 8.3
OCTOBER 22, 2024
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 Background
• 07/08/24 – the applicant/appellant submitted a business license application to operate a tobacco store at 300 S. Highland Drive, #8A • 07/15/24 – a business license certificate was issued by online system • 09/19/24 – the applicant was notified by Community Development Department that the business is not permitted in Specific Plan • 09/30/24 – the applicant filed a timely appeal under BMC Section
5.04.170
Exhibit C
Allowable Uses at Sun Lakes Village
• Site is located within Sun Lakes Village Specific Plan, which provides a list of permissible uses in Section VI (Permitted Land Uses) • Under the Commercial/Office list of permitted uses, several types of commercial-retail uses are allowed by right, such as art stores, bookstores, donut shops, florists, gift shops, supermarkets, etc. • Specific Plan Section B.1.a.(89) allows other uses determined to be similar in character, accessory to or compatible by the Director Appeal
The applicant/appellant identifies five reasons for granting the appeal:
1. Inconsistent Issuance. After applying, the applicant received emails stating balance due and a fire inspection and tobacco retail license are required, but nothing regarding a zoning issue. A license was issued, and per BMC 5.04.110(B) the business is located proper zoning.
Staff’s Response: Section 5.04.030 states “any person 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.” 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.”
2. Compliance with Local Ordinances. The applicant believes the proposed business is fully compliant with all local, state and federal regulations, in order to operate. The alleged zoning issue clearly existed when the certificate was originally issued.
Staff’s Response: As referenced by code requirements 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.
Appeal (cont’d.)
3. Financial Impact 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 License. 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 listed in the Permitted Land Uses (Section VI) of the Sun Lakes Village Specific Plan. Should they wish to pursue the proposed use in the proposed location, the Applicant may submit an amendment to the Specific Plan to properly permit or conditionally permit the use in the Plan area.
Recommendation
• Adopt 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
• Alternatively, the Council may accept the appeal and direct staff to return with a Resolution approving the business license.
Questions?
Contact Information
David A. Newell, AICP, Community Development Director
[email protected]
RESOLUTION 2024-169
APPROVING ELECTRIC RATE INCREASE AND REVISIONS TO
CERTAIN ELECTRIC RATES AND TARIFFS
Background
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 caused S&P to lower the rating from “A- to “BB” – (i.e., “junk” bonds rating) Exhibit D
$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
$3.5M Annual Avg $10M Annual Avg
-$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
$11M Cash Reserve Policy
Negative ~$9.2M balance
Rate Increase Objective •Electric Utility rate increases will:
• Cover ongoing operating expenses and eliminate an existing annual structural deficit.
• Repay back other City funds that were used to fund the Electric Utility’s cash shortage.
• Comply with the minimum debt service coverage commitment to bond investors and avoid default on bonds.
• Begin restoring the Electric Utility’s reserves.
Rate Increase Options – 8/27/24
Option 1 Option 2 Option 3 A/B Option 4A
Description
No Action
Fund balance remains
negative; likely debt
coverage covenant
default in FY 2025
Maintain Services
Fund balance remains
negative; 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 +
Replenish Cash with
~$10M Bond
Fund balance becomes
positive in 3-4 months;
avoids debt coverage
covenant default in FY
2025
Rate Increases
Needed
None 13% in FY 2025 64% in FY 2025
OR
22%/year for 2 years
13% in FY 2025
Rate Increase Options – 9/24/24
Option 3 B Option 3 C Option 4B
Description
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 +
Replenish Cash with Rate
Revenues
Fund balance remains
negative for 24-36 months;
avoids debt coverage
covenant default in FY 2025
Maintain Services +
Replenish Cash with
~$6M Bond
Fund balance remains
negative for 12 months;
avoids debt coverage
covenant default in FY 2025
Rate Increases
Needed
22.7%/year for 2 years 14.7% for 3 years 13.9% for 2 years 0%
100%
200%
300%
400%
500%
2024-25 2025-26 2026-27 2027-28 2028-29
BEU Projected Debt Service Coverage
Scenario 3B (2 Yr Recovery)
Scenario 3C (3 Yr Recovery)
Scenario 4B (Taxable & Tax-Exempt Bonds)
Minimum Required Coverage
2026-27 2027-28 2028-29
Future Years are Subject to Adjustment pending COSS
-$15.0
-$10.0
-$5.0
$0.0
$5.0
$10.0
$15.0
$20.0
2024-25 2025-26 2026-27 2027-28 2028-29
Millions
BEU Projected Ending Cash Balance
Scenario 3B (2 Yr Recovery)
Scenario 3C (3 Yr Recovery)
Scenario 4B (Taxable & Tax-Exempt Bonds)
$11M Cash Reserve Policy
2026-27 2027-28 2028-29
YR )
Future Years are Subject to Adjustment pending COSS
Average Customer Billing
CUSTOMER TYPE (kWh) CURRENT 11/1/2024 11/1/2025
Residential (520) $ 110.59 $ 125.30 $ 142.32
General Service Single Phase (2,276) $ 361.55 $ 405.31 $ 459.04 Small Commercial Muti-Phase (1,730) $ 300.03 $ 324.61 $ 367.67 Medium Commercial Services (11,138) $ 1,584.56 $ 1,774.68 $ 2,009.81 Industrial Services (38,843) $ 4,748.08 $ 5,352.14 $ 6,058.49 $0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
$550.00
Utility
Total Monthly Electric Bill at 520 kWh
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
$550.00
Utility
Total Monthly Electric Bill at 520 kWh
Rate Implementation • Rate increases are not in excess to meet financial targets:
• Operational expenses have been reduced to limit impacts on rate payers. • Capital expenses have been deferred to limit impacts on rate payers. • Rate increases avoid discrimination by applying to all customer classes equally.
• A full detailed cost of service/rate study (COS) analysis will be completed and presented to Council possibly before the implementation of the second increase (i.e. November 1, 2025).
• Recommendation for award of COS expected on November 12, 2024.
Resolution 2024-169 •Staff recommends the following next steps:
• Open the public hearing
•Approve Resolution 2024-169
• Revisions to certain electric rates and tariffs
• 13.9% electric rate increase effective November 1, 2024 • 13.9% electric rate increase effective November 1, 2025 Thank You
RESOLUTION 2024-170
Reimbursement Agreement with SFPP, L.P. for Costs Associated with Pipeline Relocation Necessary for the Sun Lakes Boulevard Extension Project
Background
• August 4, 1955: Southern Pacific Pipelines (and future assignees) was granted an easement for oil pipeline facilities along an undeveloped portion of Westward Ave between Highland Home Ave and Sunset Ave. • September 17, 1990: Parcel Map 25541 offers Right of Way to the City of Banning for the extension of Sun Lakes Boulevard between Highland Home Ave and Sunset Ave.
• This offered alignment was coincident with the pipeline easement from 1955, and the 1955 easement holds senior rights.
Exhibit E
Background
• Sun Lakes Boulevard Extension Actions
• Resolution 2020-21: Accepting Lettered Lots A, D, E, F, and G from PM 25514, bringing the offered Right of Way under City of Banning control. • Resolution 2020-48: Award of Profession Services Agreement for the Design of Sun Lakes Boulevard Extension in the Alignment from PM 25541
• Resolution 2020-97: Execution of a TUMF Reimbursement Agreement for design related actions for the Sun Lakes Boulevard Extension Project.
• The Relocation of Utilities where the local agency
is responsible for the relocation is reimbursable
through TUMF.
• City staff will seek additional reimbursement
commitments from TUMF for eligible expenses
related to the roadway construction.
Reimbursement Schedule • Phase 1: $128,938 to Kinder Morgan for design services. Due Now.
• Phase 2 (Estimate): $42,735 due at
completion of Phase 1 for Right of Way
Services and Construction Permitting
• Phase 3 (Estimate): $3,428,466 for
construction phase. Due prior to
commencement of construction phase,
estimated mid-2025.
• Phase 4 (Estimate): $111,000 for
inspection services post construction.
Recommendation
• Adopt 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
Thank You
Nate Smith, PE
Deputy Director of Public Works/City Engineer
[email protected]