Banning City Council
August 26, 2025

RESOLUTION 2025-113

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING THE LEASE-TO-OWN PURCHASE OF A 2021 ALTEC DIGGER/ DERRICK ON ROAD HEAVY DUTY TRUCK FOR A TOTAL COST OF $561,959.95.

WHEREAS, the Department of Public Works, Electric Division, currently has a fleet consisting of several work trucks, large pieces of equipment (digger/derricks, bucket trucks, backhoe, etc.) and miscellaneous equipment (air compressors, wire reel trailers, cable pullers, etc.). As part of its fleet, the Electric Division operates digger/derrick trucks almost daily, setting poles, lifting heavy equipment, and trailering cable for installation, and WHEREAS, the two existing units of this type are considered to be at the end of their useful life and are both undersized for the continued growth of the electric utility infrastructure, and
WHEREAS, staff has identified the availability of a 2021 Altec DT85 Digger/Derrick truck through Sourcewell. Sourcewell, which the City is a member of, provides for cooperative purchasing options resulting in discounted costs; and,
WHEREAS, the terms of the lease to purchase will be sixty (60) months at a monthly payment of $9,366 for purchase cost of $468,713. Financing cost of $93,247.45 for total cost $561,959.95. Vehicle ownership will belong to the utility upon final payment.

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

SECTION 1. The City Council approves the lease-to-own purchase of a 2021 Altec DT85 Digger/Derrick on road heavy duty truck for a total cost of $561,959.95.

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 26th day of August 2025.

Sheri Flynn, Mayor
City of Banning
626
Resolution 2025-113

ATTEST:

Sandra Calderon, Acting Administrative
City Clerk
City of Banning
APPROVED AS TO FORM:

John Pinkney, Interim City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
627
Resolution 2025-113

CERTIFICATION:

I, Sandra Calderon, Acting Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2025-113, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 26th day of August, 2025 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
628
Resolution 2025-113

EXHIBIT A
Lease to Own Agreement
629
DT85E

DIGGER DERRICK

FOR NEW EQUIPMENT SALES, CALL
800.958.2555

TO SPEAK WITH AN ALTEC REPRESENTATIVE
or visit us online at altec.com
630
DT85E
NEW EQUIPMENT SALES | 800.958.2555 | [email protected] | ALTEC.COM For more complete information on Altec products and services, visit us on the web at www.altec.com. Material and specifications are subject to change without notice. Featured units in photos may include optional features. Please contact an Altec representative for all available options. Altec® and the Altec logo are registered trademarks of Altec Inc. in the United States and various other countries and may not be used without permission. © 2022 Altec Inc. All Rights Reserved. AIOSDT85E-1222-v1

DEPLOYABLE STEPS
Altec’s proprietary design allows the steps at the tail shelf to deploy or retracted as the outriggers are raised and lowered; keeping the steps protected while providing best-in-class ingress/egress.

LOAD-ON-HOOK DISPLAY
Exclusive to “E” Series controls, this load-on-hook feature provides real time weight readings of loads applied to the winch rope on the digital display at the riding seat.

INTEGRATED FIBERGLASS JIB
The 7 ft fiberglass jib is a standard feature which is rated to 46 kV and below and can lift up to 3000 lbs. This jib is integrated into the boom which allows operators to easily deploy it without straining or lifting any weight.

SPECIFICATIONS
Maximum Lift Capacity 30,000 lb (16,608 kg)
Maximum Lift Capacity at 10 ft 30,000 lb (16,608 kg)
Maximum Fiberglass 5th Stage Jib Capacity 3,000 lb (1,360 kg) Maximum Sheave Height 91.4 ft (27.9 m)
Maximum Hydraulically Powered
Sheave Height 84.5 ft (25.8 m)
Intermediate Boom Extended, Upper Boom
Retracted 52.5 ft (16.0 m)
Both Booms Retracted 37.0 ft (11.3 m)
Horizontal Reach from Centerline of
Rotation
(Both Booms Extended)

82.7 ft (25.2 m)
Intermediate Boom Extended, Upper Boom
Retracted 42.9 ft (13.1 m)
Both Booms Fully Retracted 27.1 ft (8.3 m)
Intermediate Boom Extension 15.8 ft (4.8 m)
Upper Boom Extension 16.4 ft (5.0 m)
Digger Radius (min - max) 22.2 ft (6.8 m) – 37.9 ft (11.6 m) Boom Articulation -12.5° - 80°
Rotation Continuous planetary drive
*Based on a 40 in (1016 mm) chassis frame height.

FEATURES
• Multi-Lever Control Station Riding Seat with Boom Side Entry • 360° of Ingress and Egress to the Riding Seat
• Five Function Hydraulic Overload Protection System (HOP) with Ramping
• Integrated Fiberglass 5th Stage Jib, rated to 46 kV and below • Altec RotaFloat®
• Load-on-Hook System with Integrated Display at Riding Seat • E-Series Indicator Panel
• Digger Gearbox Shift Protection
• Proportional Hydraulic Pole Guides with Interlocks
• Standard/Low Speed Selector
• Push Button Outrigger Controls with Engine Start/Stop • Engine Start/Stop at all Control Stations
• 15,000 lb Planetary Turntable Winch with Rope Guides
• Hydraulic Side Load Protection
• 15,000 ft-lbs Digger Motor, Two Speed Hydrasync
• Two Sets of Radial Outriggers
• Dedicated Push-Button Digger Shake
• Altec Insights, 12-months Access

OPTIONS
• Altec Opti-View® Riding Seat
• Outrigger Deploying Steps at Tailshelf
• Radio Remote Derrick Controls with HOP Indication
• Docking Station for Radio Upper Controls
• One-Man, Fiberglass Platform
• Two-Man, Metal Personnel Platform
• 20,000 ft-lbs Digger Motor, Two Speed Hydrasync
• Altec Insights, Lifetime Access
Recommended equipment and additional accessories, available through Altec Supply includes, the AXIS Service Interface Kit, a 5 pound fire extinuisher, triangular reflectors/road flares, fall protection equipment, outrigger pads and 2 inch front/rear receiver hitches.

Altec E-Series derricks provide a new level of performance, reliability, and safety. E-Series includes a 50 gpm variable displacement piston pump and valve technology that provides superior flow sharing to maximize jobsite efficiency and operator confidence. Servicing Altec’s latest generation of derricks is easier than ever with E-Series CAN controls paired with the AXIS Service Interface. Advanced features like digger shift gearbox protection, HOP ramping, and point-of-use station select help to protect both the equipment and operators from common worksite hazards. 631
632
Altec Capital Services
33 Inverness Center Parkway
Suite 200
Birmingham, Alabama 35242
August 14, 2025
DT85E Purchase Price Term Municipal Lease
Purchase
$435,000 60 $8,693
Taxes of 7.75% Term Municipal Lease
Purchase
$33,713 60 $673
Total Term Municipal Lease
Purchase
$468,713 60 $9,366
Requirements:

1.  Insurance: Property damage insurance is required to cover the value of the unit. A Minimum of $1,000,000 in Auto & General Liability Insurance Required.

Financing Options:

Municipal Lease Purchase This lease is to be recognized as a tax-exempt lease purchase. Title to the property passing to the Lessee.

The Municipal Lease is a Financing Tool for Municipal / Tax-Exempt Entities. (if not tax-exempt, this quote does not apply) A Municipal Lease Purchase takes into consideration the yearly renewal and/or non-appropriation clauses.

Level, easy to budget payments that are fixed. A simple method to finance the equipment purchase.

ACS Contact Info
ACS Account Manager: Eric McKay
Phone (949) 486-9160
Email: [email protected] Quote Provided By: JC
• Registration & Titling Fees do apply and are billed separately after processing. • This quote is subject to satisfactory credit approval. • Collect First Payment at Signing.

The Payments &/or Rates quoted herein are based on Secured Overnight Financing Rates (SOFR) and subject to change until receipt of a completed signed & executed lease contract.

This Quote is an Estimate Only and Valid for Only 5 days.

Estimated Finance Quote for
Altec DT85E
Altec Capital Services is pleased to offer you financing for all your equipment needs. We are pleased to offer you the following:

City of Banning
633
Lease Number:

EQUIPMENT LEASE/PURCHASE AGREEMENT
THIS EQUIPMENT LEASE/PURCHASE AGREEMENT ("Agreement") is made as of by and between ALTEC CAPITAL SERVICES, L.L.C. ("Lessor") and CITY OF BANNING ("Lessee").

In consideration of the mutual covenants, terms and conditions hereinafter contained, Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from Lessor, the property (hereinafter, together with all replacements and accessions thereto, referred to as the "Equipment") generally described in the Preliminary Description of Equipment attached hereto and to be more specifically described in the Certificate of Acceptance, in the form attached, to be executed and delivered pursuant hereto, subject to the terms and conditions set forth herein.

This Agreement is made upon the following terms and conditions:
(1) TERM. (a) Commencement of Term. This Agreement shall be effective, and the parties' obligations hereunder shall arise, as of the date hereof. The term of lease under this Agreement is for sixty (60) months and shall commence on the date on which the Equipment is accepted by Lessee, as indicated on the Certificate of Acceptance (the "Commencement Date"), and shall terminate on the receipt of the final lease payment from Lessee (such period being hereinafter referred to as the "Original Term"). (b) Renewal of Term. Subject to the provisions of Section 10 hereof and sub-part (e) of this Section, the Original Term will be automatically and successively renewed at the end of the Original Term under the same terms and conditions for successive renewal periods ("Renewal Terms"), with the last of such Renewal Terms to end on the last day of the Full Lease Term, as specified on the Schedule of Payments executed by Lessee and attached hereto (the “Schedule”). (c) Termination of Term. The term of lease will terminate upon the earliest to occur of any of the following events: (1) The expiration of the Original Term or any Renewal Term and the nonrenewal thereof in accordance with the terms and conditions of this Agreement; (2) The purchase of the Equipment by Lessee under the provisions of Sections 8(c) or 10 of this Agreement; (3) A default by Lessee and Lessor's election to terminate this Agreement under Section 13; or (4) The payment by Lessee of all rental payments to be paid by Lessee hereunder with respect to the Equipment. (d) Continuation of Lease Term by Lessee. Lessee intends, subject to the provisions of sub-part (e) of this Section, to continue the term of the lease hereunder through the Original Term and all Renewal Terms for the Full Lease Term and to pay the rental payments hereunder. Lessee reasonably believes that legally available funds in an amount sufficient to make all rental payments for the Full Lease Term can be obtained and further intends to do all things lawfully within its power to obtain and maintain funds from which the rental payments may be made. (e) Nonappropriation. In the event sufficient funds are not appropriated for the payment of all rental payments required to be paid in the next succeeding Renewal Term, then Lessee may terminate this Agreement at the end of the Original Term or the then current Renewal Term, as the case may be, and Lessee shall not be obligated to make payment of the rental payments provided for in this Agreement beyond the then current term. Lessee agrees to give notice to Lessor of such termination at least sixty (60) days prior to the end of the then current term or, if nonappropriation has not occurred by that date, promptly upon the occurrence of nonappropriation. If this Agreement is terminated under this sub-part, Lessee agrees, at Lessee's sole cost and expense, peaceably to deliver the Equipment to Lessor at such location as is specified by Lessor, in the condition required by Section 5(b) hereof, on or before the effective date of termination.
(2) RENTAL PAYMENTS. (a) Rental Payments to Constitute a Current Expense of Lessee. Lessor and Lessee understand and intend that the obligation of Lessee to pay rental payments hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitations or requirements concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the general tax revenues, funds or monies of Lessee. (b) Payment of Rental Payments. Lessee shall pay rental payments exclusively from legally available funds, in lawful money of the United States of America, to Lessor in the amounts and on the rental payment due dates set forth in the Schedule without notice. In the event that any rental payment is not received by Lessor on or before the due date therefor, Lessee agrees to pay a late charge determined on the basis of accrued interest on the delinquent amount at the rate of one percent (1%) per month (or, if such rate is in excess of the maximum rate permitted by law, the maximum rate permitted by law) from the date of delinquency to the date that the rental payment is received by Lessor. (c) Interest and Principal Components. As set forth in the Schedule, a portion of each rental payment is paid as, and represents payment of, interest, and the balance of each rental payment is paid as, and represents payment of, principal. (d) Rental Payments to be 634
Unconditional. The obligation of Lessee to make rental payments hereunder, and to perform and observe the covenants and agreements contained in this Agreement, shall be absolute and unconditional in all events, except as expressly provided in this Agreement. Lessee shall not assert any right of setoff, counterclaim, or abatement against its obligations hereunder, including (without limitation) by reason of equipment failure, disputes with the vendor(s) or manufacturer(s) of the Equipment or Lessor, accident or any unforeseen circumstances. (3) REPRESENTATIONS AND COVENANTS OF LESSEE. Lessee represents, covenants and warrants to Lessor as follows:(a) Lessee is a state or political subdivision thereof within the meaning of Section 103(c) of the Internal Revenue Code of 1986, as amended, (the "Code") and will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as such. (b) Lessee is authorized under the Constitution and laws of the state of to enter into this Agreement and the transactions contemplated hereby and to perform all of its obligations hereunder. (c) Lessee’s name as indicated in the opening paragraph and on the signature page of this Agreement is its true, correct, and complete legal name. (d) As evidenced by an attachment hereto, the execution and delivery of this Agreement by or on behalf of Lessee has been duly authorized by all necessary action of the governing body of Lessee, and Lessee has obtained such other approvals and consents as are necessary to consummate this Agreement. Lessee further represents, covenants and warrants that all requirements have been met, and procedures have occurred, necessary to ensure the enforceability of this Agreement against Lessee, and that Lessee has complied with such public bidding requirements as may be applicable to this Agreement and the acquisition of the Equipment by Lessee hereunder. (e) Lessee shall cause to be executed and attached hereto an incumbency certificate and an opinion of its counsel in form and substance satisfactory to Lessor. (f) Lessee has determined that a present need exists for the Equipment which need is not temporary or expected to diminish in the near future. The Equipment is essential to and will be used by Lessee only for the purpose of performing one or more governmental functions of Lessee consistent with the permissible scope of Lessee's authority and will not be used in a trade or business of any person or entity. Lessee shall cause to be executed and attached hereto an Essential Use of Equipment Letter in form and substance satisfactory to Lessor. (g) Within one hundred fifty (150) days of the end of each fiscal year of Lessee during the term hereof, Lessee shall provide Lessor with a copy of its audited financial statements for such fiscal year. Additionally, Lessee shall provide Lessor with budgets, proof of appropriation for the ensuing fiscal year and such other financial information relating to the ability of Lessee to continue this Agreement as may reasonably be requested by Lessor. (h) The Equipment is, and shall remain during the period this Agreement is in force, personal property and when subject to use by Lessee under this Agreement will not be or become fixtures. (i) Lessee acknowledges that Lessor is acting only as a financing source with respect to the Equipment, which has been selected by Lessee. (j) Lessee will promptly and duly execute and deliver to Lessor such further documents, instruments and assurances and take such further action as Lessor may from time to time reasonably request in order to carry out the intent and purpose of this Agreement and to establish and protect the rights and remedies created or intended to be created in favor of Lessor hereunder. (4) TITLE TO EQUIPMENT; SECURITY INTEREST. (a) Title to the Equipment. During the term of this Agreement, title to the Equipment shall vest in Lessee, subject to the rights of Lessor under this Agreement. In the event of a default as set forth in Section 13 hereof or nonappropriation as set forth in Section 1(e) hereof, title shall immediately vest in Lessor. (b) Security Interest. To secure the prompt payment and performance as and when due of all of Lessee's obligations under this Agreement, Lessee hereby grants to Lessor a first priority security interest in the Equipment, all replacements, substitutions, accessions and proceeds (cash and non-cash), including the proceeds of all insurance policies, thereof. Lessee agrees that with respect to the Equipment Lessor shall have all of the rights and remedies of a secured party under the Uniform Commercial Code as in effect in . Lessee may not dispose of any item of the Equipment without the prior written consent of Lessor, notwithstanding the fact that proceeds constitute a part of the Equipment. (5) USE AND MAINTENANCE. (a) Use. Lessee shall use the Equipment solely for the purpose of performing one or more governmental functions of Lessee and in a careful, proper and lawful manner consistent with the requirements of all applicable insurance policies relating to the Equipment. Lessee will not change the location of any items of the Equipment as specified in the applicable Certificate of Acceptance without the prior written consent of Lessor, which consent shall not be unreasonably withheld. Lessee shall not attach or incorporate the Equipment to or in any other item of equipment in such a manner that the Equipment becomes or may be deemed to have become an accession to or a part of such other item of equipment. (b) Maintenance. Lessee, at its own expense, will keep and maintain, or cause to be kept and maintained, the Equipment in as good operating condition as when delivered to Lessee hereunder, ordinary wear and tear resulting from proper use thereof alone excepted, and will provide all maintenance and service and make all repairs reasonably necessary for such purpose.

All replacement parts and accessions shall be free and clear of all liens, encumbrances or rights of others and have a value and utility at least equal to the parts or accessions replaced. Lessee shall not make any material alterations to the Equipment without the prior written consent of Lessor, which consent shall not be unreasonably withheld. All additions to the Equipment which are essential to its operation, or which cannot be detached without materially interfering with such operation or adversely affecting the Equipment's value and utility, shall immediately be deemed incorporated in the Equipment and subject to the terms of this Agreement as if originally leased hereunder, and subject to the security interest of Lessor. Upon reasonable advance notice, Lessor shall have the right to inspect the Equipment and all maintenance records with respect thereto, if any, at any reasonable time during normal business hours.

Additional Provisions for Vehicles. As to any Equipment leased hereunder that constitutes motor vehicles (“Vehicles”), you further covenant and agree as follows:
635
(a) You shall, at your own expense, obtain in our name all registration plates and other plates, permits inspections or licenses required to be obtained in connection with the Vehicles, or related to their operation and use except for the initial registration plates which we obtain at your expense. We shall issue to you, for such purpose, appropriate limited powers of attorney or such other authority as may be necessary. You shall not, without our prior written consent, permit any Vehicle to be located in a state other than the state in which such Vehicle is then titled for any continuous period of time that would subject such Vehicle to the titling or registration laws of such other state. YOU AGREE THAT NO VEHICLE SHALL BE USED TO TRANSPORT PERSONS FOR HIRE OR HAZARDOUS SUBSTANCES. (b) At any time that you are required to return the Vehicle to us, you shall, at your expense, deliver the Vehicle to the nearest Altec facility within the United States which we specify.
(c) Each Vehicle shall not have more than the average miles per year recorded on its odometer than the mileage specified for the selected Lease Term for each vehicle type and specific model as detailed on the Supplement (or, if no mileage is specified in the Supplement, each Vehicle shall not have more than twelve thousand (12,000) miles per year for each year of the applicable Lease Term) and you shall pay us, at the time of Vehicle surrender, an excess mileage charge equal to $.35 per mile for each mile exceeding specified mileage (d) Ensure all Equipment and equipment operations conform to all applicable local, state, and Federal laws, health and safety guidelines. Upon return, the Equipment will be complete and operational with all components as originally supplied and will have passed D.O.T. inspections, or other appropriate agency or association requirements for operation. If applicable, an inspection sticker or certificate will be furnished to Lessor verifying compliance with any regulatory requirements. Lessee shall satisfy all legal and regulatory conditions necessary for Lessor to sell or lease the Equipment to a third party. Lessee will keep all licenses and operating certificates required for operation of the Equipment current during the term of the Lease. Lessee will at all times use the Equipment in compliance with all applicable laws and regulations of any governmental, local and regulatory agency; (e).Provide safe, secure storage for the Equipment for one-hundred and eighty (180) days after expiration or earlier termination of the Lease at not more than three (3) location (s) selected by Lessor; (f) Take such action as may be required so that, upon return, each unit of Equipment must meet all of its manufacturer's specifications for performance under full-rated loads and all of the following conditions:
1). Tires: All tires shall be of the same type (original size) and manufacturer (i.e. matched) and have a minimum of fifty (50) percent remaining tread life. All front tires shall be original casing with no crossed lugs, rear tires may be either original casings or first time recapped tires and no tire shall exhibit or have flat or bald spots, dry rot, exposed cord or cuts in sidewall;
2). Any time or life-limited components including, but not limited to, power train assembly, transmissions, converters, generators, axles, wheels, pumps or other parts shall have at least fifty (50%) percent useful life remaining before the manufacturer’s next recommended major overhaul, rebuild, calibration or replacement as recommended by the manufacturer and/or published in standard maintenance manuals;
3). Mechanical Power Train: Each unit of Equipment shall have passed a dynamometer test, road test and oil analysis, each conducted not more than sixty- (60) days prior to the return of the equipment, the test results shall have been provided to Lessor not more than two- (2) weeks after each test has been conducted and not less than two- (2) weeks prior to the return of the Equipment and the tests and test results shall have been reasonably acceptable to the Lessor. The engine must have at least 50% remaining mileage until the next manufacturer’s scheduled “in-frame” overhaul, there shall be no cracked cylinder heads or engine blocks, the wheel horsepower must be within 80% - 85% of the rated flywheel horsepower without excess blow-by, exhaust system leakage or oil leakage and must meet current smoke emission standards. The transmission and rear axles shall be capable of pulling loads to their full rated capacity, there shall be no transmission, drive axle or wheel hub oil leaks and there shall be no “slipping” or “grabbing” clutch. Cooling and lubrication systems shall not be contaminated and there shall be no leaking between systems, no battery shall have any dead cell, cracked case or be inoperative; 4). Service Body/Digger Derrick: Lessee will ensure that the Equipment will be mechanically and structurally sound, no bowed sections, free of cracks, bends or warping that impacts the Fair Market Value and marketability of the Equipment and is capable of performing the functions for which the Equipment was originally designed. Ensure all safety equipment, covers and guards, parts and components must be in-place and operational. No safety features shall be bypassed or disconnected. All body parts shall be intact with no tears or dents in metal. Service bodies to be free of dents (or cracks on fiberglass components) or damages over $50.00, normal wear and tear excepted. Sheet metal must be complete. All cooling, heating and lubrication systems shall not be contaminated and there shall be no leaks or leakage between systems. All gauges, indicators and controls will be in good conditions, plastic or glass coverings intact, clear and all will be in good working order. No battery shall have any dead cells, cracked case be inoperative or unable to be charged. All internal fluids, such as lube oil and hydraulic fluids, are to be filled to operating levels and all filler caps are to be secured. Digger/Derrick boom, hydraulic cylinders and all accessories and attachments shall be free of damage and capable of performing to their maximum operational designs. All drive axles and nondrive axles are to be fully functional with no slipping, grinding or grabbing, and the Equipment shall be operational in all gears, forward and reverse. If during such inspection, the authorized inspector finds any of the material or workmanship to be defective or the Equipment not meeting or exceeding the manufacturer’s operating requirements, Lessee, at lessee’s cost, shall repair or replace the material or defective workmanship utilizing manufacturer approved components and in accordance with the manufacturer’s recommendations. After corrective measures are completed, lessee, at Lessee’s cost will provide for a follow-up inspection of the Equipment by the authorized inspector as outlined in this paragraph; 5). General Condition: With respect to each unit, there must be no structural or mechanical damage; no glass shall be broken, chipped or cracked; no upholstery shall have any cuts, tears or burn marks. All rust or corrosion must be treated in a manner consistent with standard industry practices. All Equipment must have a good overall appearance and no material damage.

The Equipment shall be cleaned (internal and external), free of rust and corrosion with no missing or damaged parts. Upon return, all commercial logos, advertising, graffiti, insignias and lettering shall be removed and repaired in a workmanlike manner so as to not damage the Equipment. Manufacturer's identity plates and markings shall not be removed. With respect to each unit, the total cost of necessary repairs for damage or other related costs necessary to place the Equipment in such condition as to be in complete compliance with this Lease may not exceed $150.00;
636
6). Documents and Records: Written records of scheduled and other maintenance and repair work done shall be kept, dated, and signed by the appropriate authority. A service history or log will be maintained during the Lease term and a copy provided to Lessor upon request during the term of the Lease, or at Lease termination. All maintenance records, maintenance record jackets, repair jackets, repair orders, license plates, registration certificates and all other similar documents, in their entirety, must be returned to Lessor;
7). Brakes: Brake drums, linings and other brake components shall not be cracked and shall not exceed manufacturers' recommended wear limits. Brake linings shall have fifty (50) percent remaining wear; 8). Maintenance: Lessee shall strictly follow the manufacturer's recommended maintenance and service schedule, as required to validate any warranty, at Lessee's sole cost and expense. Any maintenance or repair work shall comply with the guidelines and procedures as specified by the manufacturers of the equipment and in accordance with standards in the industry.

Lessee will use only original manufacturer's approved replacement parts and components in the performance or any maintenance and repair of the Equipment. Lessee will at all times maintain the Equipment in good operational condition and appearance; 9). Use: Lessee guarantees that the Equipment will not be or have been operated beyond the rated capacity as certified by the manufacturer at any time during the Lease term. Lessee will not discriminate in the use of the Equipment from any other similar equipment in its fleet;
10). Alterations: Lessee will not modify the Equipment without the prior written approval of Lessor. In any event, Lessee will not make any modifications or alterations that would impair the Equipment's use, value, marketability or manufacturer's warranty and recommendations. Lessee will not make any alterations to the Equipment that would damage or restrict the use of the Equipment from its initial use and design and that cannot be removed without damage to the unit. Changes, modifications or additions to the Equipment mandated by Federal or state authorities will be completed by Lessee and become property of Lessor; 11). Not more than ninety- (90) days prior to return of Equipment, during regular working hours, Lessee must make the Equipment available to allow Lessor or Lessor’s agent to conduct an in-depth physical inspection. Any part, component or function found not to be within the manufacturer's tolerances and operational specifications, including but not limited to engines, transmissions, clutches, drive trains, and rear axles, will be replaced or brought within those tolerances and specifications to the satisfaction of Lessor. Testing with necessary reconditioning to meet the return conditions are to be provided to Lessor two (2) weeks prior to the return of the equipment. Lessee shall obtain written certification from the manufacturers or their authorized representative that the Equipment has been returned in accordance with the terms set forth herein; (6) FEES; TAXES; OTHER GOVERNMENTAL AND UTILITY CHARGES; LIENS. (a) Fees. Lessee shall be liable to reimburse Lessor for, and agrees to hold Lessor harmless from, all titling, recordation, documentary stamp and other fees arising at any time during the Full Lease Term. (b) Taxes, Other Governmental Charges and Utility Charges. The parties contemplate that the Equipment will be used for a governmental purpose of Lessee and that the Equipment will be exempt from all taxes presently assessed and levied with respect to personal property. In the event that the use, possession or acquisition of the Equipment is found to be subject to taxation in any form (except for net income taxes of Lessor), Lessee will pay, as the same come due, all taxes and governmental charges of any kind whatsoever that may at any time be lawfully assessed or levied during the Full Lease Term against or with respect to the Equipment, as well as all utility and other charges incurred in the operation and use of the Equipment. (c) Liens. Lessee shall keep the Equipment free and clear of all liens, levies and encumbrances, except those created under this Agreement. (7) INSURANCE. (a) Casualty Insurance. At its own expense, Lessee shall keep the Equipment insured against loss or damage due to fire and the risks normally included in extended coverage, malicious mischief and vandalism, for not less than the Full Insurable Value of the Equipment. As used herein, "Full Insurable Value" means the full replacement value of the Equipment or the Prepayment Amount applicable to the immediately preceding rental payment due date as designated on the Schedule, whichever is greater. All insurance for loss or damage shall provide that losses, if any, shall be payable to Lessor and Lessee, as their interests may appear, and Lessee shall utilize its best efforts to have all checks relating to any losses delivered promptly to Lessor. If Lessee insures similar properties against casualty loss by self-insurance, with Lessor's prior consent Lessee may satisfy its obligations with respect to casualty insurance hereunder by means of a self-insurance fund reasonably acceptable to Lessor. The Net Proceeds of the insurance required hereby shall be applied as provided in Section 8 hereof. As used herein, "Net Proceeds" means the amount remaining from the gross proceeds of any insurance claim or condemnation award after deduction of all expenses (including attorneys' fees) incurred in the collection of such claim or award. (b) Liability Insurance. Lessee shall also carry public liability insurance, both personal injury and property damage, covering the Equipment in an amount as Lessor may from time to time reasonably require on notice to Lessee. Lessor shall be named as an additional insured with respect to all such liability insurance. With Lessor's prior consent, Lessee may satisfy its obligations with respect to liability insurance hereunder by maintaining a funded self-insurance plan. (c) Worker's Compensation. Lessee shall carry worker's compensation insurance covering all employees working on, in, near or about the Equipment, or demonstrate to the satisfaction of Lessor that adequate self-insurance is provided, and shall require any other person or entity working on, in, near or about the Equipment to carry such coverage throughout the Full Lease Term. (d) General Requirements. All insurance required under this Section 7 shall be in form and amount and with companies reasonably satisfactory to Lessor except as otherwise expressly provided herein. Lessee shall pay the premiums therefor and deliver to Lessor the policies of insurance or duplicates thereof, or other evidence satisfactory to Lessor of such insurance coverage, annually throughout the Full Lease Term. Each insurer shall agree, by endorsement upon the policy or policies issued by it or by independent instrument furnished to Lessor, that (a) it will give Lessor thirty (30) days' prior written notice of the effective date of any material alteration or cancellation of such policy; 637
and (b) insurance as to the interest of any named additional insured or loss payee other than Lessee shall not be invalidated by any actions, inactions, breach of warranty or conditions or negligence of Lessee with respect to such policy or policies. (8) RISK OF LOSS; DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS. (a) Risk of Loss. Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, and no such loss of or damage to Equipment or unfitness or obsolescence thereof, shall relieve Lessee of its obligation to make rental payments or perform any other obligations hereunder.

Notwithstanding any other provision of this Agreement, Lessee will not be obligated to make any rental payments or other obligations if the Equipment is found to be defective. (b) Damage, Destruction and Condemnation. If prior to the termination of the Full Lease Term (1) the Equipment or any portion thereof is destroyed (in whole or in part) or is damaged by fire or other casualty; or (2) title to, or the temporary use of, the Equipment or any part thereof or the estate of Lessee or Lessor in the Equipment or any part thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority; Lessee and Lessor will cause the Net Proceeds of any insurance claim or condemnation award to be applied to Lessee's obligations pursuant to sub-part (c) of this Section. (c) Use of Net Proceeds. Provided the Equipment is not deemed to be a total loss, Lessee shall, at its expense (subject to application of the Net Proceeds), cause the prompt repair, replacement or restoration of the affected Equipment. In the event that the Equipment is totally destroyed or damaged and Lessee is unable to make arrangements satisfactory to Lessor for the prompt replacement thereof, Lessee shall pay to Lessor, on the rental payment due date next succeeding the date of such loss, the Prepayment Amount applicable to such rental payment due date plus the rental payment due on such date and any other amounts then payable by Lessee hereunder.

Upon such payment, the term of the lease and the security interest of Lessor in the Equipment shall terminate, and Lessee will acquire full and unencumbered title to the Equipment as provided in Section 10 hereof. If Lessee is not then in default hereunder, any portion of the Net Proceeds in excess of the amount required to pay in full Lessee's obligations as set forth in this sub-part (c) shall be for the account of Lessee.

Lessee agrees that if the Net Proceeds are insufficient to pay in full Lessee's obligations as set forth in this sub-part (c), Lessee shall make such payments to the extent of any deficiency.
(9) DISCLAIMER OF WARRANTIES. LESSOR, NOT BEING A SELLER (AS SUCH TERM IS DEFINED IN THE UNIFORM

COMMERCIAL CODE), NOR A SELLER'S AGENT, HEREBY EXPRESSLY DISCLAIMS AND MAKES TO LESSEE NO

WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR OTHERWISE, INCLUDING, BUT NOT LIMITED TO: THE FITNESS FOR USE, DESIGN OR CONDITION OF THE EQUIPMENT; THE QUALITY OR CAPACITY OF THE EQUIPMENT; THE WORKMANSHIP IN THE EQUIPMENT; THAT THE EQUIPMENT WILL SATISFY THE REQUIREMENTS OF ANY LAW, RULE, SPECIFICATION OR CONTRACT PERTAINING THERETO; AND ANY GUARANTY OR WARRANTY AGAINST PATENT INFRINGEMENT OR LATENT DEFECTS, it being agreed that all such risks, as between Lessor and Lessee, are to be borne by Lessee. Lessor is not responsible or liable for any direct, indirect, incidental or consequential damage to or losses resulting from the installation, operation or use of the Equipment or any products manufactured thereby. All assignable warranties made by the vendor(s) or manufacturer(s) to Lessor are hereby assigned to Lessee for and during the Full Lease Term and Lessee agrees to resolve all such claims directly with the vendor(s) or manufacturer(s). Provided that Lessee is not then in default hereunder, Lessor shall cooperate fully with Lessee with respect to the resolution of such claims, in good faith and by appropriate proceedings at Lessee's expense. Any such claim shall not affect in any manner the unconditional obligation of Lessee to make rental payments hereunder. (10) PURCHASE OF EQUIPMENT BY LESSEE/PREPAYMENT. Provided that Lessee is not then in default under this Agreement, this Agreement will terminate, the security interest of Lessor in the Equipment will be terminated, and Lessee will acquire title to the Equipment free and clear of all liens and encumbrances created by, or arising through or under, Lessor: (a) at the end of the Full Lease Term, upon payment in full of all rental payments and other amounts payable by Lessee hereunder for the Full Lease Term; or(b)on any rental payment due date, upon payment by Lessee of the then applicable Prepayment Amount as set forth on the Schedule plus the rental payment due on such date and all other amounts then due by Lessee hereunder, provided Lessee shall have given Lessor not less than thirty (30) days' prior notice of its intent to make such payment.
(11) QUIET POSSESSION. Lessor represents and covenants to Lessee that Lessor has full authority to enter into this Agreement, and that, conditioned upon Lessee performing all of the covenants and conditions hereof, as to claims of Lessor or persons claiming under Lessor, Lessee shall peaceably and quietly hold, possess and use the Equipment during the term of this Agreement subject to the terms and provisions hereof.
(12) ASSIGNMENT; SUBLEASING; INDEMNIFICATION. (a) Assignment by Lessor. This Agreement, and the rights of Lessor hereunder and in and to the Equipment and the Schedule, may be assigned and reassigned in whole or in part to one or more assignees by Lessor or its assignees at any time without the necessity of obtaining the consent of Lessee; provided, however should such assignment include the assignment of servicing, no such assignment or reassignment shall be effective unless and until Lessee shall have been given written notice of assignment disclosing the name and address of the assignee or its agent authorized to receive payments and otherwise service this Agreement on its behalf. Upon receipt of notice of assignment, Lessee agrees to record the same in records maintained for such purpose, 638
and further, to make all payments as designated in the assignment, notwithstanding any claim, defense, setoff or counterclaim whatsoever (whether arising from a breach of this Agreement or otherwise) that Lessee may from time to time have against Lessor or Lessor's assignees.

Lessee agrees to execute all documents, including acknowledgments of assignment, which may reasonably be requested by Lessor or its assignees to protect their interests in the Equipment and in this Agreement. (b) No Sale, Assignment or Subleasing by Lessee. This Agreement and the interest of Lessee in the Equipment may not be sold, assigned, sublet or encumbered by Lessee without the prior written consent of Lessor. (c) Release and Indemnification Covenants. To the extent permitted by the laws and Constitution of the state of Lessee hereby assumes and agrees to indemnify, protect, save and keep harmless Lessor, its agents and employees, from and against any and all losses, damages, injuries, claims, demands and expenses, including legal expenses, of whatsoever kind and nature, arising on account of (1) the ordering, acquisition, delivery, installation or rejection of the Equipment; (2) the possession, maintenance, use, condition (including without limitation, latent and other defects whether or not discoverable by Lessor or Lessee, any claim in tort, including actions for strict liability, and any claim for patent, trademark or copyright infringement) or operation of any item of the Equipment (by whomsoever used or operated); or (3) the loss, damage, destruction, removal, return, surrender, sale or other disposition of the Equipment, or any item thereof. It is understood and agreed, however, that Lessor shall give Lessee prompt notice of any claim or liability hereby indemnified against and that Lessee shall be entitled to control the defense thereof, so long as Lessee is not in default hereunder. Lessee will not indemnify, defend or hold harmless Lessor as set forth above for liability attributable to the negligence or willful misconduct of Lessor.

Lessor shall indemnify, defend, and hold harmless Lessee, its officers, employees, agents, successors, and assigns from and against any and all claims, liabilities, damages, losses, costs, and expenses (including reasonable attorneys’ fees and court costs) arising out of or related to:
(1) the negligence or willful misconduct of Lessor or any of its agents, employees, contractors, or representatives; or, (2) the breach of any representation, warranty, covenant, or other provision of this Agreement by Lessor;. This indemnity shall not apply to any claims, liabilities, or damages to the extent caused by the negligence or willful misconduct of the Lessee. The obligations of Lessor under this section shall survive the expiration or termination of this Agreement.” (13) EVENTS OF DEFAULT AND REMEDIES. (a) Events of Default. The following shall be "events of default" under this Agreement and the terms "event of default" and "default" shall mean, whenever they are used in this Agreement, any one or more of the following events:
(1) failure by Lessee to pay any rental payment or other payment required to be paid hereunder within five (5) days of the due date therefor; or(2) failure by Lessee to observe and perform any other covenant, condition or agreement on its part to be observed or performed hereunder and such failure shall continue unremedied for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied, unless Lessor shall agree in writing to an extension of such time prior to its expiration; or(3)any certificate, statement, representation, warranty or audit contained herein or heretofore or hereafter furnished with respect hereto by or on behalf of Lessee proving to have been false in any material respect at the time as of which the facts therein set forth were stated or certified, or having omitted any substantial contingent or unliquidated liability or claim against Lessee; or (4) commencement by Lessee of a case or proceeding under the Federal bankruptcy laws or filing by Lessee of any petition or answer seeking relief under any existing or future bankruptcy, insolvency or other similar laws or an answer admitting or not contesting the material allegations of a petition filed against Lessee in any such proceeding; or(5)a petition against Lessee in a proceeding under any existing or future bankruptcy, insolvency or other similar laws shall be filed and not withdrawn or dismissed within sixty (60) days thereafter; or (6) an attachment, levy or execution is levied upon or against the Equipment or any item thereof. (b) Remedies on Default. Whenever any event of default shall have occurred and be continuing, Lessor shall have the right, at its sole option without any further demand or notice, to exercise any one or more of the following remedies:(1)with or without terminating this Agreement, retake possession of the Equipment or items thereof and sell, lease or sublease items of the Equipment for the account of Lessee, with the net amount of all proceeds received by Lessor to be applied to Lessee's obligations hereunder including, but not limited to, all payments due and to become due during the Full Lease Term, holding Lessee liable for the excess (if any) of (i) the rental payments payable by Lessee hereunder to the end of the Original Term or then current Renewal Term (whichever is applicable) and any other amounts then payable by Lessee hereunder (including but not limited to attorneys' fees, expenses and costs of repossession), over (ii) the net purchase price or rent and other amounts paid by a purchaser, lessee or sublessee of the Equipment pursuant to such sale, lease or sublease, provided that the excess (if any) of such amounts over the Prepayment Amount applicable to the last rental payment due date of the Original Term or Renewal Term (whichever is applicable) and the amounts referred to in clause (i) shall be paid to Lessee; (2) require Lessee at Lessee's risk and expense promptly to return the Equipment to Lessor in the manner and in the condition set forth in Section 5(b) hereof at such location as is specified by Lessor;(3)if Lessor is unable to repossess the Equipment for any reason, the Equipment shall be deemed a total loss and Lessee shall pay to Lessor the amount due pursuant to Section 8 hereof; and(4)exercise any other right, remedy or privilege which may be available to it under applicable laws of or any other applicable law or proceed by appropriate court action to enforce the terms of this Agreement, to recover damages for the breach of this Agreement, or to rescind this Agreement as to the Equipment. In addition, Lessee will remain liable for all legal fees and other costs and expenses, including court costs, incurred by Lessor with respect to the enforcement of any of the remedies listed above or any other remedy available to Lessor. (c) No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. Lessor's remedies hereunder may be exercised separately with respect to items of the Equipment. No delay or omission to exercise any right or power accruing upon any default shall 639
impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient.
(14) TAX COVENANTS.(a)The parties assume that Lessor can exclude the interest component of the rental payments from federal gross income. Lessee covenants and agrees that it will (i) use a book entry system to register the owner of this Agreement so as to meet the applicable requirements of Section 149(a)(3) of the Code; (ii) timely file an IRS Form 8038-G (or, if the invoice price of the Equipment is less than $100,000, a Form 8038-GC) with the Internal Revenue Service ("IRS") in accordance with Section 149(e) of the Code; (iii) not permit the Equipment to be directly or indirectly used for a private business use within the meaning of Section 141 of the Code including, without limitation, use by private persons or entities pursuant to contractual arrangements which do not satisfy the IRS' guidelines for permitted management contracts, as the same may be amended from time to time; (iv) comply with all provisions and regulations applicable to excluding the interest component of the rental payments from federal gross income pursuant to Section 103 of the Code; and (v) cause to be completed, executed and delivered to Lessor a Tax Compliance Agreement and No Arbitrage Certificate substantially in the form provided by Lessor.(b)If Lessor either (i) receives notice, in any form, from the Internal Revenue Service; or (ii) reasonably determines, based on an opinion of independent tax counsel selected by Lessor and approved by Lessee, which approval Lessee shall not unreasonably withhold, that Lessor may not exclude the interest component of any rental payment from federal gross income because Lessee breached a covenant contained herein, then Lessee shall pay to Lessor, within thirty (30) days after Lessor notifies Lessee of such determination, the amount which, with respect to rental payments previously paid and taking into account all penalties, fines, interest and additions to tax (including all federal, state and local taxes imposed on the interest component of all rental payments due through the date of such event) that are imposed on Lessor as a result of the loss of the exclusion, will restore to Lessor the same after-tax yield on the transaction evidenced by this Agreement (assuming tax at the highest marginal corporate tax rate) that it would have realized had the exclusion not been lost. Additionally, Lessee agrees that upon the occurrence of such an event, it shall pay additional rent to Lessor on each succeeding rental payment due date in such amount as will maintain such after-tax yield to Lessor.(c)Lessee has not issued, and reasonably anticipates that it and its subordinate entities will not issue, tax-exempt obligations (including this Agreement) in the amount of more than $10,000,000 during the current calendar year; hereby designates this Agreement as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"); and agrees that it and its subordinate entities will not designate more than $10,000,000 of their obligations as "qualified tax-exempt obligations" during the current calendar year. (15) LESSOR'S RIGHT TO PERFORM FOR LESSEE. If Lessee fails to perform or comply with any of its agreements contained herein, Lessor shall have the right, but shall not be obligated, to effect such performance or compliance, and the amount of any out of pocket expenses and other reasonable expenses of Lessor incurred in connection with the performance of or compliance with such agreement, together with interest thereon at the rate of twelve percent (12%) per annum (or, if such rate is in excess of the maximum rate permitted by law, the maximum rate permitted by law), shall be payable by Lessee upon demand. Within ten (10) days of receipt, Lessee shall execute, endorse and deliver to Lessor any deed, conveyance, assignment or other instrument in writing as may be required to vest in Lessor any right, title or power which by the terms hereof are expressed to be conveyed or conferred upon Lessor, including, without limitation: (a) Uniform Commercial Code financing statements (including continuation statements), real property waivers; (b) documents and checks or drafts relating to or received in payment for any loss or damage under the policies of insurance required by the provisions of Section 7 hereof to the extent that the same relate to the Equipment; and (c) upon default or nonappropriation or times thereafter as Lessor in its sole and absolute discretion may determine, any bill of sale, document, instrument, invoice, freight bill, bill of lading or similar document relating to the Equipment in order to vest title in Lessor and transfer possession to Lessor. Further, to the extent permitted by law, Lessee appoints Lessor as its attorney-in-fact for the limited purpose of, and with the full authority to, execute and file Uniform Commercial Code financing statements (including continuation statements) in the name and on behalf of Lessor, and agrees that photocopies of originally executed Uniform Commercial Code financing statements (including continuation statements) may be filed in the appropriate recordation offices as originals. In addition, the Lessee hereby authorizes the Lessor to prepare and file Uniform Commercial Code financing statements (including continuation statements) naming Lessee as debtor and Lessor as secured party without the signature of the Lessee to the extent permitted by law.
(16) MISCELLANEOUS. (a) Notices. All notices (excluding billings and communications in the ordinary course of business) hereunder shall be in writing, and shall be sufficiently given and served upon the other party if delivered (i) personally, (ii) by United States registered or certified mail, return receipt requested, postage prepaid, (iii) by an overnight delivery by a service such as Federal Express or Express Mail from which written confirmation of overnight delivery is available; or (iv) by facsimile with a confirmation copy by regular United States mail, postage prepaid, addressed to the other party at its respective address stated below the signature of such party or at such other address as such party shall from time to time designate in writing to the other party, and shall be effective from the date of mailing. (b) Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. (c) Severability; Survival. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

To the extent permitted by applicable law, Lessee hereby waives any provision of law which renders any provision hereof prohibited or 640
unenforceable in any respect. The representations, warranties and covenants of Lessee herein shall be deemed to be continuing and to survive the closing hereunder. Each execution by Lessee of a Certificate of Acceptance shall be deemed a reaffirmation and warranty that there have been no material adverse change in the financial condition of Lessee from the date of execution hereof. The obligations of Lessee under Sections 1(e), 6, 12(c) and 14, which accrue during the term of this Agreement, shall survive the termination of this Agreement. (d) Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. (e) Applicable Law. This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California.

The parties agree that the venue in any litigation, arbitration or dispute resolution between them shall be in Riverside County, California.

This Agreement shall be governed by and construed in accordance with the laws of the state of (f) TO THE EXTENT PERMITTED BY

APPLICABLE LAW, LESSOR AND LESSEE EACH WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY TO ANY ACTION, CLAIM OR SUIT ARISING OUT OF, RELATING TO, OR BROUGHT IN CONNECTION WITH THIS LEASE. (g) Captions. The captions in this Agreement are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. (h) Entire Agreement. This Agreement constitutes the entire agreement between Lessor and Lessee. No waiver, consent, modification or change of terms of this Agreement shall bind either party unless in writing signed by both parties, and then such waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, representations or warranties, express or implied, not specified herein regarding this Agreement or the Equipment leased hereunder. Any terms and conditions of any purchase order or other document (with the exception of supplements) submitted by Lessee in connection with this Agreement which are in addition to or inconsistent with the terms and conditions of this Agreement will not be binding on Lessor and will not apply to this Agreement. Lessee by the signature below of its authorized representative acknowledges that it has read this Agreement, understands it, and agrees to be bound by its terms and conditions.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above set forth.

ALTEC CAPITAL SERVICES, L.L.C., Lessor
By:

Address: 33 Inverness Center Parkway, Suite 200
Birmingham, AL 35242
Phone: (205) 408-8650
Fax No:(205) 437-0197
CITY OF BANNING, Lessee
Attn: Electric Utility
By: _________________________________
Address: 176 E. Lincoln Street
Banning, CA 92220-0998
Phone: (951) 922-3260
Fax No.:
641

DESCRIPTION OF EQUIPMENT
Attached to and made a part of that certain
Equipment Lease/Purchase Agreement dated as of
by and between ALTEC CAPITAL SERVICES, L.L.C., as Lessor, and CITY OF BANNING, as Lessee
The items of Equipment to become subject to the Agreement can be generally described as follows:
2021 Altec DT85E-Series derrick.

LOCATION OF EQUIPMENT:176 E. Lincoln St, Banning, CA 92220, ANTICIPATED PURCHASE PRICE:

Purchase Price- $435,000
Taxes of 7.75%= $33,713
Total finance amount= $468,713
Monthly payment = $9366
60 payments of $9366= $561,960
Total interest paid= $93,247
642

SCHEDULE OF PAYMENTS
Attached to and made a part of that certain Equipment Lease/Purchase Agreement dated as of ___________ by and between ALTEC CAPITAL SERVICES, L.L.C., as Lessor, and CITY OF BANNING, as Lessee.

Commencement Date: Equipment Delivery Date as confirmed by Signature on Delivery and Acceptance.

Full Lease Term: 60 months beginning with Commencement Date.

Rental payments are payable (check one)__________ in advance __________in arrears of the period to which they relate.

Rental payment due dates will be based on the Commencement Date, and established in Lessor's notification to Lessee of the Commencement Date.

Payment Lease Payment Interest Principal Prepayment
Number Date Amount Amount Component Component Amount
**(see attached)**
Lessee
By:

Date:
643

CERTIFICATE OF ACCEPTANCE
The undersigned, as Lessee under the Equipment Lease/Purchase Agreement dated as of (the "Agreement") with ALTEC CAPITAL SERVICES, L.L.C. ("Lessor"), hereby certifies:

1. The items of the Equipment, as such term is defined in the Agreement, fully and accurately described on the Equipment List attached hereto have been delivered and installed at the location(s) set forth therein.

2. A present need exists for the Equipment which need is not temporary or expected to diminish in the near future. The Equipment is essential to and will be used by the Lessee only for the purpose of performing one or more governmental functions of Lessee consistent with the permissible scope of Lessee's authority.

3. The estimated useful life of the Equipment based upon the manufacturer's representations and Lessee's projected needs is not less than the term of lease with respect to the Equipment.

4. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts the Equipment for all purposes as of the date of this Certificate.

5. The Equipment is covered by insurance in the types and amounts required by the Agreement.

6. No event of default, as such term is defined in the Agreement, and no event which with the giving of notice or lapse of time, or both, would become an event of default, has occurred and is continuing on the date hereof.

7. Based on the foregoing, Lessor is hereby authorized and directed to fund the acquisition of the Equipment set forth on the Equipment List by paying, or causing to be paid, the manufacturer(s)/vendor(s) the amounts set forth on the attached invoices.

8. The following documents are attached hereto and made a part hereof:
(a) Equipment List
(b) Original Invoice(s)
(c) Copies of Certificate(s) of Origin designating Altec Capital Trust as lienholder if any part of the Equipment consists of motor vehicles, and evidence of filing (d) Copy of Application for Titling
If Lessee paid an invoice prior to the commencement date of the Agreement and is requesting reimbursement for such payment, also attach a copy of evidence of such payment together with a copy of Lessee's Declaration of Official Intent and other evidence that Lessee has satisfied the requirements for reimbursement set forth in Treas. Reg. §1.150-2.

Lessee
By:

Date:
644

INCUMBENCY CERTIFICATE
I do hereby certify that I am the duly elected or appointed and acting Secretary/Clerk of the CITY OF BANNING, a body corporate and politic duly organized and existing under the laws of the state of California, that I have custody of the records of such entity, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of such entity holding the offices set forth opposite their respective names. I further certify that (i) the signatures set opposite their respective names and titles are their true and authentic signatures, and (ii) such officers have the authority on behalf of such entity to enter into that certain Equipment Lease/Purchase Agreement dated as of (the “Agreement”) between such entity and ALTEC CAPITAL SERVICES, L.L.C. and is duly authorized to execute Certificates of Acceptance, Requisition Requests, and other documents relating to the Agreement.

NAME TITLE SIGNATURE
_____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ IN WITNESS WHEREOF, I have duly executed this Certificate and affixed the seal of hereto this ___ day of ____________, .
[SEAL] ___________________________________
(Secretary/Clerk)
(OTHER THAN THE PERSON SIGNING THE DOCUMENTS)
645

FORM OF - RESOLUTION OF GOVERNING BODY/EXTRACT OF MINUTES Lessee: CITY OF BANNING
RE: Equipment Lease/Purchase Agreement with ALTEC CAPITAL SERVICES, L.L.C.

At a duly called meeting of the governing body of Lessee held in accordance with all applicable legal requirements, including open meeting laws, on the 26th day of August 2025, the following resolution was introduced and adopted:

RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AN EQUIPMENT LEASE/PURCHASE

AGREEMENT, AND RELATED INSTRUMENTS, AND DETERMINING OTHER MATTERS IN CONNECTION THEREWITH.

WHEREAS, the governing body of ("Lessee") has determined that a true and very real need exists for the Equipment (the "Equipment") described in the proposed Equipment Lease/Purchase Agreement (the "Agreement") by and between ALTEC CAPITAL SERVICES, L.L.C., as Lessor, and Lessee, as lessee, presented to this meeting; and WHEREAS, Lessee has taken the necessary steps, including those relating to any applicable legal bidding requirements, to arrange for the acquisition of the Equipment; and
WHEREAS, Lessee reasonably anticipates that it and its subordinate units will not issue tax-exempt obligations in the face amount of more than $10,000,000 during the current calendar year; and WHEREAS, Lessee proposes to enter into the Agreement with ALTEC CAPITAL SERVICES, L.L.C. substantially in the proposed form presented to this meeting.

NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF LESSEE AS FOLLOWS:

Section 1. It is hereby found and determined that the terms of the Agreement in the form presented to this meeting and incorporated in this resolution, are in the best interests of Lessee for the acquisition of the Equipment.

Section 2. The Agreement is hereby approved. The City Manager of Lessee and any other officer of Lessee who shall have power to execute contracts on behalf of Lessee be, and each of them hereby is, authorized to execute, acknowledge and deliver the Agreement with any changes, insertions and omissions therein as may be approved by the officers who execute the Agreement, such approval to be conclusively evidenced by such execution and delivery of the Agreement. The City Manager of Lessee and any other officer of Lessee who shall have power to do so be, and each of them hereby is, authorized to affix the official seal of Lessee to the Agreement and attest the same.

Section 3. The proper officers of Lessee be, and each of them hereby is, authorized and directed to execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this resolution and the Agreement.

Section 4. Lessee hereby designates the Agreement as a “qualified tax-exempt obligation” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.

The project to which the original expenditure(s) relates can be generally described as Banning Electric Utility’s Electric Operations.

The original expenditure(s) will be made from Lessee’s general operating account. The maximum principal amount of the obligations expected to be issued for the project is $561,960. This resolution is being entered into on or before, or not later than 60 days after, the date on which the original expenditure(s) to be reimbursed will or have been paid. This resolution is intended to be a declaration of official intent within the meaning of Treasury Regulations Section 1.150-2.1 The undersigned further certifies that the above resolution has not been repealed or amended and remains in full force and effect and further certifies that the Equipment Lease/Purchase Agreement by and between ALTEC CAPITAL SERVICES, L.L.C., as Lessor, and Lessee, as Lessee, is the same as presented at said meeting of the governing body of Lessee, excepting only such changes, insertions and omissions as shall have been approved by the officers who executed the same. [SEAL] ______________________________
(Secretary/Clerk)
Date:__________________,
646
647

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Acting City Manager
PREPARED BY: Art Vela, Acting City Manager
MEETING DATE: August 26, 2025
SUBJECT: Consideration of Resolution 2025-114, Approving the Statement of Investment Policy, Administrative Policy No. 8-11
RECOMMENDATION:

Adopt Resolution 2025-114.

BACKGROUND:

The City's Statement of Investment Policy ("Investment Policy") pertains to those funds under the control of the City Council, designated for the ongoing operations of the City, the Banning Finance Authority, the Banning Utility Authority, and the Successor Agency to the City of Banning Redevelopment Agency. The Investment Policy concerns the deposit, maintenance, and safekeeping of all such funds, and the investments made with these funds. This policy does not apply to pension funds, deferred compensation funds, bond funds (the investment of which is governed by the bond documents), trustee, and certain other non-operating funds.

The Investment Policy addresses the key areas that should be included in an investment policy as indicated in the Local Agency Investment Guidelines published by the California Debt and Investment Advisory Commission (CDIAC) including a list of securities in which the City may invest and conflict of interest prohibitions.

JUSTIFICATION:

The investment policy serves as the foundation of a local agency's investment goals and priorities. The investment policy should be reviewed regularly to ensure that it continues to meet the agency's goals/priorities for its portfolio, it can help protect the assets of the organization. The existence of an approved investment policy demonstrates that the governing body is performing its fiduciary responsibilities, thereby inspiring trust and confidence among the public that it serves.

Although not mandated, Section 53646(a)(2) states that the chief fiscal officer of a local agency may annually request reapproval by the legislative body at a public meeting. While not required by statute, it is recommended that the investment policy be presented to the agency's legislative body, and then have the policy approved by a vote of the legislative body.

The Investment Policy requires annual review and approval of the Investment Policy by City Council.

The proposed Statement of Investment Policy has been prepared in consideration of the primary investment objectives of safety of principal, liquidity that ensures the City can meet all of its cash flow needs while earning a fair market rate of return on available funds. 648
Additionally, the Statement of Investment Policy has been updated only to reflect that the City has replaced the title of Administrative Service Director with the title of Finance Director.

The Investment Policy, as presented, has been reviewed by both the City Attorney and the City's professional investment consultant, Chandler Asset Management and it has been confirmed that it complies with applicable regulations and best practices.

FISCAL IMPACT:

No fiscal impact.

ALTERNATIVES:

1. Do not approve Resolution 2025-114 and provide staff with direction.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution 2025-114 .docx

2. Exhibit A-Admin Policy B-11 Statement of Investment Policy_Redlined_Clean.pdf 649
Resolution 2025-114

RESOLUTION 2025-114

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AMENDING THE INVESTMENT POLICY GOVERNING THE INVESTMENT OF THE CITY’S

FUNDS AND DELEGATING THE INVESTMENT AUTHORITY TO THE FINANCE DIRECTOR WHEREAS, sound investment practices are facilitated by the preparation of written governing policy statements. Such policies should cover all substantive aspects of the investment of City funds. The Finance Director has prepared a comprehensive investment policy document in which the City, acting in conjunction with our investment advisor, will manage and conduct investment of the City’s funds; and
WHEREAS, prudent management of the City’s funds is critical and the investment policy follows State law provisions establishing investment objectives and setting forth permissible investment of public funds not required for immediate expenditure; and WHEREAS, the delegation of investment authority and responsibility from the City Council to the Finance Director will allow the Finance Director to continue the prudent investment of public funds.

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

SECTION 1. The City Council approves the Statement of Investment Policy and delegates the investment authority to the Finance Director, the policy is attached hereto as Exhibit A.

SECTION 2. 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 26th day of August, 2025.

Sheri Flynn, Mayor
City of Banning
ATTEST:

Sandra Calderon, Acting Administrative
City Clerk
City of Banning
APPROVED AS TO FORM:
650
Resolution 2025-114

John Pinkney, Interim City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
651
Resolution 2025-114

CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2025-114, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 26th day of August, 2025 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
652
Resolution 2025-114

EXHIBIT A
Administrative Policy B-11 (Statement of Investment Policy) 653
1 Policy B-11
City of Banning
Administrative Policy
Subject: Statement ofInvestmentPolicy PolicyNo:

B-11
Reference: FinancialManagement, Accounting
and Purchasing
Effective:

August 27,
2025
PAGE 1 of 17
APPROVED BY: City Council

1. SCOPE
This Statement of Investment Policy pertains to those funds under the control of the City Council, designated for the ongoing operations of the City, the Banning Finance Authority, the Banning Utility Authority and the Successor Agency to the City of Banning Redevelopment Agency. The Statement of Investment Policy concerns the deposit, maintenance, and safekeeping of all such funds, and the investments made with these funds. This Policy does not apply to pension funds, deferred compensation funds, bond funds (the investment of which is governed by the bond documents), trustee, and certain other non-operating funds.

The City Council must ensure management of public monies in a way that is consistent with investment oversight and sound investment practices. To have a policy which only concerns itself with maximizing return is reckless. The basic concept of investment management is the risk/reward relationship. A higher promised return on any investment may indicate a higher level of risk. Risk management must be an integral part of any prudent investment policy. Risk management must include adequate internal controls, so the public has confidence that public monies are secure. Though all investments contain a degree of risk, the proper exercise of prudence, the maintenance of a high level of ethical standards, and the proper delegation of authority reduces the potential for loss.

The Finance Director may direct specific-purpose assets belonging to the City, the earnings of which are not shared but credited to the specific-purpose fund. The investments for these direct investment pools shall be made in accordance with this Policy, except that investments may be for periods greater than five years when a longer term is advantageous for the investment of money held for specific purposes. Investments for periods longer than five yearsrequire prior approval of the governing body in accordance with Government Code Section 53601.

2. PURPOSE OF POLICY STATEMENT
The purpose of this Statement of Investment Policy is to provide the public and those involved in servicing the investment requirements of the City, and any other interested party, a clearer understanding of the Government Code, regulations and internal guidelines that will be observed in maintaining and investing those funds not immediately needed to meet liabilities. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association 654
2 Policy B-11
(CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

3. INVESTMENT OBJECTIVES
The underlying objective of the City Council is to protect the safety of the principal of the portfolio through the judicious purchase of those legal investments permitted to local agencies, as defined in the State of California Government Code, consistent with current conditions and the other dominant objectives pursuant to managing a local agency portfolio. The objectives of this Investment Policy are, in order of priority:

A. Safety. The City Council takes as its primary responsibility to maintain the safe return of all principal placed in investments by avoiding decisions that might result in losses through fraud, default, or adverse market conditions. Importance is also accorded to the protection of accrued interest earned on any investment instrument. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.

B. Liquidity. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

C. Yield. While it is considered desirable to obtain a respectable yield, yield shall not be the driving force in determining which investments are to be selected for purchase. Yield is to be given lesser weight in the investment decision than safety, liquidity, or availability.

Investment shall be placed with the objective of obtaining a reasonable rate of return under prevailing market conditions.

4. PRUDENCE
The City Council and the City’s investment officials recognize that they are subject to the "Prudent Investor Standard" whenever making a decision regarding the investment of the City's funds. The Prudent Investor Standard states, “…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care,skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, general economic conditions and the anticipated needs of the agency, that a prudent person acting in like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” (Cal. Gov. Code §53600.3).

The City Council, and those acting under the delegation of authority of the City Council, are deemed to have a fiduciary trustee relationship with the public for the public funds, and all investment decisions will be made in accordance their fiduciary duties. 655
3 Policy B-11

5. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

While the City Council has fiduciary responsibility for the investment of public funds, City personnel are required to act in the day to day administration of the City’s investment program.

The deputized personnel (also referred to as investment officials) listed below are designated to manage the City’s investment program consistent with this investment policy:
• Finance Director
• Deputy Finance Director
• City Manager
City Council directives to the Finance Director, Deputy Finance Director and City Manager are as follows:
• Manage the day to day operations of the City’s investment portfolio and place actual purchase/sell orders with authorized institutions.
• Make investments in accordance with this policy.
• Communicate with necessary parties for investment purposes and to withdraw and deposit funds as required to meet the City's cash flow needs.

Other persons, both inside and outside City employment, may act in the role of assistant or advisor to those listed above, to aid in the timely and proper settlement of investment transactions. Such persons may not authorize, approve, or initiate any trading activities. Parties involved in investment transactions with the City are deemed to be on notice of the contents of the most current copy of this Policy, and all pertinent authorizing documents, at the time of accepting written or verbal instructions from any staff member.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

6. SECURITIES CUSTODY
Asrequired by the Government Code, the Finance Director shall establish a third party custody and safekeeping account to which all negotiable instruments shall be delivered upon purchase on a payment versus delivery basis. All cash and securities in the City’s portfolio 656
4 Policy B-11
shall be held in safekeeping in the City’s name by the third party custodian, acting as an agent for the City under the terms of a custody agreement executed by the bank and the City.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

7. AUTHORIZED INVESTMENTS AND LIMITATIONS
The Government Code of the State of California, primarily within sections 53600 et.seq.,sets out the legal authority for inclusion of certain types of investment vehicles in a California local agency's investment portfolio. Consistent with those sections, under no circumstances will the City Council purchase an investment that is not specifically authorized for a local agency under these, or other code sections that may apply, or might later be enacted, pertaining to local agency investments. Itshall be a requirement of all investment professionals performing any transaction on behalf of the City that they possess a complete understanding of the acceptability of the subject investment under those code sections.

Appendix A briefly describes the principal types of securities legal within the Government Code sections noted above, and outlines the various limitations included in these sections. From these permitted investments, the City’s investment officials shall determine those investment typesthat best meet the needs and abilities of the City.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

A. Prohibited Investment Vehicles and Practices
• State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
• In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. • Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S.

Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
• Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
• Purchasing or selling securities on margin is prohibited. 657
5 Policy B-11
• The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
• The purchase of foreign currency denominated securities is prohibited. • Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested. • The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

8. AUTHORIZED TERM OF INVESTMENTS
It is hereby determined that the maximum maturity period for any portion of invested operating moneys shall not exceed five years from the date of trade settlement per California Government Code and as indicated in Appendix A, unless the City Council has by resolution granted authority to make such an investment. This shall not apply to certain bond proceeds or other non-operating moneys of the City. To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

9. AUTHORIZED DEALER LIST - CONFLICT OF INTEREST PROHIBITION It is prohibited for a transaction to be entered into with any securities broker, dealer or bank investment department or subsidiary prior to that entity being designated an Authorized Dealer and placed on the Authorized Dealer List. Authorized Dealers shall be selected on an as needed basis to meet specific needs of the City. The Finance Director is authorized to manage the Authorized Dealer List. Each qualified dealer must certify in writing that they have reviewed the relevant California Government Code Sections and the City’s Investment Policy and that all securities offered to the City shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the Agency may rely on the adviser for selection.

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
• Institutions licensed by the state as a broker-dealer. • Institutions that are members of a federally regulated securities exchange. • Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers.
• Nationally or state-chartered banks.
• The Federal Reserve Bank.
• Direct issuers of securities eligible for purchase.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or 658
6 Policy B-11
alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

No member of the City Council, nor any other official or employee of the City, may accept any gift, honoraria, gratuity or service of value in violation of the regulations set forth by the Fair Political Practices Commission, the Government Code, additional limitations set forth by City ordinance, or internal requirements of the City Manager and Finance Director. The City Council is prohibited from conducting any business with any broker, dealer, or securities firm that has made a political contribution to the City Treasurer or any member of the City Council, or any candidate for these offices, within the 48 month period immediately following the date of the political contribution, in an amount exceeding the limitation contained in Rule G-37 of the Municipal Securities Rulemaking Board.

10. PORTFOLIO RISK MANAGEMENT
A. Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The Finance Director shall mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in Appendix A Permitted Investments are designed to mitigate credit risk in the portfolio.

2. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences.

3. No more than 5% of the total portfolio may be deposited with or invested in securities issues by any single issuer unless otherwise specified in this policy.

4. If the securities owned by the City are downgraded by Moody’s, S&P, or Fitch to a level below the quality required by this Investment Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. City investment officials will use discretion in determining whether to sell or hold the security based on its current maturity, the loss in value, the economic outlook for the issuer, and other relevant factors.

5. The City will continue to monitor and reevaluate the security on an ongoing basis in order to reaffirm or change the decision to hold a downgraded security.

6. If a decision is made to retain a downgraded security in the portfolio, the status of the investment will be reported quarterly to the City Council. 659
7 Policy B-11
B. Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio will decline in value (or will not optimize its value) due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios generally achieve higher returns. On the other hand, longer-term portfolios have a higher volatility of return. The City shall mitigate market risk by providing adequate liquidity for cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

1. All investments are categorized according to the period of time from settlement date to maturity date. Market circumstances and risk-return calculations for increased yield may require an extended schedule.

2. The maximum stated final maturity of individua l securities in the portfolio shall be five years, except as otherwise stated in this policy. The five-year maturity of callable securities is measured to the final maturity date, not to a call date.

3. Maturity of investments should be governed by the Treasury’s demand for funds through analysis of revenue and expenditure activity over prior periods. The portfolio shall be structured in such manner that securities mature concurrent with cash needs.

4. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a market benchmark, and index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

C. Mitigating Reinvestment Risk in the Portfolio
Reinvestment risk is the risk that cash flows from securities will be reinvested at interest rates that are lower than the rate of the original investment. Securities that are highly subject to reinvestment risk include mortgage-backed and callable securities. The City, therefore, adopts the following strategiesto control and mitigate its exposure to reinvestment risk:

1. The portfolio shall include securities with a range of durations and maturities.

2. Investment in federal agency callable securities is limited to 20%.

11. LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment type, or percentage allocations will be incorporated immediately into the Investment Policy.

12. REPORTING AND ANNUAL REVIEW
The Finance Director shall cause to be maintained investment records legally required or otherwise requested by the City Council and prepare a report for the Council on a 660
8 Policy B-11
monthly basis stating the holdings, status, and earnings of the portfolio. The Statement of Investment Policy will be provided annually for review and approval of the City Council. Should conditions arise, or legislation become effective that behooves consequential changes within the Policy during the year, the revised policy will again be addressed by the City Council. 661
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APPENDIX A

PERMITTED INVESTMENTS

1. Municipal Securities include obligations of the City, the State of California and any local agency within the State of California, provided that:
• The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. • The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
• The maximum maturity is five (5) years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
• No more than 30% of the portfolio may be invested in any single Agency/GSE issuer. • The maximum maturity does not exceed five (5) years.
• The maximum percent of agency callable securities in the portfolio will be 20%.

5. BANKER’S ACCEPTANCES, provided that:
• They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. • No more than 40% of the portfolio may be invested in Banker’s Acceptances. • No more than 5% of the portfolio may be invested in any single issuer. 662
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• The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. SECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO. (iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b. SECURITIES issued by other entities:
(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
(ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (iii)The securities are rated “A-1” or its equivalent or better by at least one NRSRO. • No more than 10% of the outstanding commercial paper of any single issuer. • No more than 25% of the City’s investment assets under management may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings. • Any amount above the FDIC insured limit must be issued by institutions which have shortterm debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
• No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance. 663
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• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
• The maximum maturity does not exceed five (5) years.

10. CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS), provided that:
• No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS.
• The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
• Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
• The maximum maturity does not exceed one (1) year.

13. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
• The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Finance Director to adequately judge the risk inherent in LAIF’s portfolio.

14. LOCAL GOVERNMENT INVESTMENT POOLS
• Other LGIPs permitted by client.
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• There is no issuer limitation for Local Government Investment Pools

15. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
• The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
• The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

16. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES, AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:
• The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
• The maximum legal final maturity does not exceed five (5) years.

17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. • No more than 10% of the total portfolio may be invested in shares of any one mutual fund. b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
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(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
• No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

18. SUPRANATIONALS, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. • The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO. • No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.
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APPENDIX B GLOSSARY OF TERMS
ACCRUED INTEREST – The amount of interest that is earned, but unpaid since the last payment date.

BANKERS ACCEPTANCES – A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well asthe issuer, guarantees payment of the bill. With the credit strength of a bank behind it, the bankers acceptance usually qualifies as a money market instrument. In its simplest and most traditional form, a bankers acceptance is merely a check drawn on a bank by an importer or exporter of goods.

BASIS POINT - A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points.

BID - The indicated price at which a buyer is willing to purchase a security or commodity.

BOOK ENTRY– The system maintained by the Federal Reserve, by which most money market securities are delivered to an investor’s custodian bank. The Federal Reserve maintains a computerized record of the ownership of these securities and records any changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment).

BOOK VALUE - The value at which a security is carried on the inventory lists or other financial records of an investor. The book value may differ significantly from the security's current value in the market.

BROKER/DEALER – Any person engaged in the business of effecting transactions in securities in this state for the account of others or for her/his own account. Broker/dealer also includes a person engaged in the regular business of issuing or guaranteeing options with regard to securities not of her/his own issue.

CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC)- The CDIAC provides information, education, and technical assistance on public debt and investments to local public agencies and other public finance professionals.

CALLABLE BOND - A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions.

CALL PRICE - The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.

CALL RISK - The risk to a bondholder that a bond may be redeemed prior to maturity.

CASH SALE/PURCHASE - A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.

COLLERATERALIZATION - Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security including:
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CERTIFICATES OF DEPOSIT (CDS) - The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a NonNegotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS - This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS - The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
• Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above. • The City shall receive monthly statements of collateral.

COMMERCIAL PAPER - An unsecured short-term promissory note issued by banks, corporations and other borrowers with temporarily idle cash, with maturities ranging from 2 to 270 days. Such instruments are usually discounted, although some are interest bearing. It is issued only by top-rated concerns and is nearly always backed by bank lines of credit.

CONFIRMATION – Formal memorandum from a broker/dealer to the City giving the details of a securities transaction, i.e., purchase or sale.

COUPON RATE - The annual rate of interest received by an investor from the issuer of certain types of fixed-income securities. Also known as the "interest rate." CREDIT QUALITY - The measurement of the financial strength of a bond issuer. This measurement helps an investor to understand an issuer's ability to make timely interest payments and repay the loan principal upon maturity. Generally, the higher the credit quality of a bond issuer, the lower the interest rate paid by the issuer because the risk of default is lower. Credit quality ratings are provided by nationally recognized rating agencies.

CREDIT RISK - The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CURRENT YIELD (CURRENT RETURN) - A yield calculation determined by dividing the annual interest received on a security by the current market price of that security. 668
16 Policy B-11
CUSTODIAN/CUSTODY – The financial institution where the investments purchased by the City are held.

DELIVERY VERSUS PAYMENT (DVP) - A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian.

DERIVATIVE - Financial instrument created from, or whose value depends upon, one or more underlying assets or indexes of asset values.

DISCOUNT - The amount by which the par value of a security exceedsthe price paid for the security.

DIVERSIFICATION – The spreading of risk by investing in assets among a range of security types by sector, maturity, and quality rating.

DURATION - A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

EARNINGS APPORTIONMENT – The quarterly interest distribution to the Investment Pool participants where the actual investment costs incurred by the City are deducted from the interest earnings of the Investment Pool.

FAIR VALUE - The amount at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

FEDERAL FUNDS - Funds placed in Federal Reserve banks by depository institutions in excess of current reserve requirements. These depository institutions may lend Fed funds to each other overnight or on a longer basis. They may also transfer funds among each other on a same- day basis through the Federal Reserve banking system. Fed funds are considered to be immediately available funds.

FEDERAL FUNDS RATE - Interest rate charged by one institution lending Federal funds to the other.

FITCH IBCA, INC. (FITCH) – One of the three best known rating agencies in the United States, the others being Moody’s Investment Service, Inc. (Moody’s), and Standard and Poor’s Corporation (S & P).

GUARANTEED INVESTMENT CONTRACTS (GICS) – An agreement acknowledging receipt of funds for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.

GOVERNMENT SECURITIES - An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded asthe highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and 669
17 Policy B-11
Bonds."
HIGHLY LIQUID – The most eminent type of security that is easily converted to cash because there are many interested buyers and sellers to trade large quantities at a reasonable price.

IDLE FUNDS – funds in the combined Investment Pool not required for immediate cash needs.

ILLIQUID – A security that is difficult to buy or sell or has a wide spread between bid price and offer price in the secondary market. There are few buyers and sellers willing to trade large quantities at a reasonable price.

INFORMAL COMPETITIVE BID – A verbal or written bid submitted to the City by a broker/dealer for a specific issue at a specific price or yield.

INTEREST RATE - See "Coupon Rate."
INTEREST RATE RISK - The risk associated with declines or rises in interest rates which cause an investment in a fixed-income security to increase or decrease in value.

INTERNAL CONTROLS - An internal control structure designed to ensure that the assets of the entity are protected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points:

1. Control of collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer.

2. Separation of transaction authority from accounting and record keeping – By separating the person who authorizes or performs the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved.

3. Custodial safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party for custodial safekeeping.

4. Avoidance of physical delivery securities - Book-entry securities are much easier to transfer and account forsince actual delivery of a document never takes place. Delivered securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities.

5. Clear delegation of authority to subordinate staff members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions.

Clear delegation of authority also preserves the internal control structure that is contingent on the various staff positions and their respective responsibilities.

6. Written confirmation of transactions for investments and wire transfers- Due to the potential for error and improprieties arising from telephone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person.

Written communications may be via fax if on letterhead and if the safekeeping institution has a list of authorized signatures.

7. Development of a wire transfer agreement with the lead bank and third party custodian - The 670
18 Policy B-11
designated official should ensure that an agreement will be entered into and will address the following points: controls, security provisions, and responsibilities of each party making and receiving wire transfers.

INVERTED YIELD CURVE - A chart formation that illustrates long-term securities having lower yields than short-term securities. This configuration usually occurs during periods of high inflation coupled with low levels of confidence in the economy and a restrictive monetary policy.

INVESTMENT POLICY - A concise and clear statement of the objectives and parameters formulated by an investor or investment manager for a portfolio of investment securities.

INVESTMENT-GRADE OBLIGATIONS - An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency.

LIQUID - An asset that can be converted easily and quickly into cash because of the willingness of interested buyers and sellers to trade large quantities at a reasonable price.

LOCAL AGENCY INVESTMENT FUND (LAIF) – The State of California investment pool in which money of local agencies is pooled as a method for managing and investing local funds.

LOCAL AGENCY OBLIGATION – An indebtedness issued by a local agency, department, board, or authority within the State of California.

LONG-TERM – A security with the maturity greater than one year.

MARK-TO-MARKET - The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

MARKET RISK - The risk that the value of a security will rise or decline as a result of changes in market conditions.

MARKET VALUE – The price at which a security is trading and presumably could be purchased or sold at a particular point in time.

MATURITY- The date on which payment of a financial obligation is due. The final stated maturity is the date on which the issuer must retire a bond and pay the face value to the bondholder. See "Weighted Average Maturity."
MEDIUM TERM NOTES – Corporate Notes and Deposit Notes that are obligations of banks, corporations, and insurance companies. They are issued at a specific rate of return for a specific period of time.

MONEYMARKET MUTUAL FUND - Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

MOODY’S INVESTORS SERVICE, INC. (Moody’s) - One of the three best known rating 671
19 Policy B-11
agenciesin the United States, the others being Standard and Poor’s Corporation (S& P) and Fitch IBCA, Inc. (Fitch).

MUTUAL FUND - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and must abide by the following Securities and Exchange Commission (SEC) disclosure guidelines:

1. Report standardized performance calculations.

2. Disseminate timely and accurate information regarding the fund's holdings, performance, management and general investment policy.

3. Have the fund's investment policies and activities supervised by a board of trustees, which are independent of the adviser, administrator or other vendor of the fund.

4. Maintain the daily liquidity of the fund's shares.

5. Value their portfolios on a daily basis.

6. Have all individuals who sells SEC-registered products licensed with a self-regulating organization (SRO) such as the National Association of Securities Dealers (NASD).

7. Have an investment policy governed by a prospectus which is updated and filed by the SEC annually.

NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD) - A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

NEGOTIABLE CERTIFICATE OF DEPOSIT – A Money Market instrument representing a receipt from a bank for a deposit at a specified rate of interest for a specified period of time that is traded in the secondary markets.

NET ASSET VALUE - The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio.

NO LOAD FUND - A mutual fund which does not levy a sales charge on the purchase of its shares.

NOMINAL YIELD - The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known asthe "coupon," "coupon rate," or "interest rate." NONCALLABLE – A bond that is exempt from any kind of redemption for a stated time period.

NOTE – A written promise to pay a specific amount to a certain entity on demand or on a specified date.

OFFER - An indicated price at which market participants are willing to sell a security or 672
20 Policy B-11
commodity. Also referred to as the "Ask price."
PAR - Face value or principal value of a bond, typically $1,000 per bond.

PORTFOLIO – Combined holding of more than one stock, bond, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

POSITIVE YIELD CURVE - A chart formation that illustrates short-term securities having lower yields than long-term securities.

PREMIUM - The amount by which the price paid for a security exceedsthe security's par value.

PRIMARY DEALER – A group of securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers and banks.

PRIME RATE - A preferred interest rate charged by commercial banks to their most creditworthy customers. Many interest rates are keyed to this rate.

PRINCIPAL - The face value or par value of a debt instrument. Also may refer to the amount of capital invested in a given security.

PROSPECTUS - A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC. This can include information on the issuer, the issuer's business, the proposed use of proceeds, the experience of the issuer's management, and certain certified financial statements (also known as an “official statement”).

PRUDENT INVESTOR RULE - An investment standard where a person acts with care,skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is met is if a prudent person acting in such a situation would engage in similar conduct to ensure investments safeguard principal and maintain liquidity.

PUT OPTION – The sale of an option to another party giving them the right to sell to the Investment Pool a security at a specified price within a specified time period.

RATING – Evaluation of financial institutions’ investment and credit risks by professional rating services.

REGISTERED STATE WARRANT – A short-term obligation of a state governmental body issued in anticipation of revenue.

REGULAR WAY DELIVERY - Securities settlement that calls for delivery and payment on the third business day following the trade date (T+3); payment on a T+1 basis is currently under consideration. Mutual funds are settled on a same day basis; government securities are settled on the next business day.
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21 Policy B-11
REINVESTMENT RISK - The risk that a fixed-income investor will be unable to reinvest income proceeds from a security holding at the same rate of return currently generated by that holding.

REPURCHASE AGREEMENT (REPO) - An agreement of one party to sell securities at a specified price to a second party and a simultaneous agreement of the first party to repurchase the securities at a specified price or at a specified later date.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO) - An agreement of one party to purchase securities at a specified price from a second party and a simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specified date.

SAFEKEEPING – A custodian bank’s action to store and protect an investor’s securities by segregating and identifying the securities.

SECURITIES AND EXCHANGE COMMISSION (SEC) – Agency created by Congress to protect investors in securities transactions by administering securities laws. The statutes administered by the SEC are designed to promote full public disclosure and protect the investing public against malpractice in the securities market.

SECURITIES LENDING– A transaction wherein the Investment Pool transfersits securities to broker/dealers and other entities for collateral which may be cash or securities and simultaneously agreesto return the collateral for the same securities in the future.

SERIAL BOND - A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired.

SHORT-TERM – A security with a maturity one year or less.

STANDARD AND POOR’S CORPORATION (S&P) – One of the three best known rating agencies in the United States, the others being Moody’s Investment Service, Inc. (Moody’s), and Fitch IBCA, Inc. (Fitch).

SWAP - Trading one asset for another.

TOTAL RETURN - The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed ofshare price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return.

TREASURY BILLS - Short-term U.S. government non-interest bearing debtsecurities with maturities of no longer than one year and issued in minimum denominations of $10,000.

Auctions of three- and six-month bills are weekly, while auctions of one-year bills are monthly.

The yields on these bills are monitored closely in the money markets forsigns of interest rate trends.
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22 Policy B-11
TREASURY NOTES - Intermediate U.S. government debt securities with maturities of one to 10 years and issued in denominations ranging from $1,000 to $1 million or more.

TREASURY BONDS - Long-term U.S. government debt securities with maturities of ten years or longer and issued in minimum denominations of $1,000. Currently, the longest outstanding maturity for such securities is 30 years.

VOLATILITY - A degree of fluctuation in the price and valuation of securities.

WEIGHTED AVERAGE MATURITY(WAM) - The average maturity of all the securities that comprise a portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not exceed 90 days and no one security may have a maturity that exceeds 397 days.

WHEN ISSUED (WI) - A conditional transaction in which an authorized new security has not been issued. All "when issued" transactions are settled when the actual security is issued.

YIELD - The current rate of return on an investment security generally expressed as a percentage of the security's current price.

YIELD-TO-CALL (YTC) - The rate of return an investor earnsfrom a bond assuming the bond is redeemed (called) prior to its nominal maturity date. Yield Curve - A graphic representation that depicts the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity. A normal yield curve may be alternatively referred to as a positive yield curve.

YIELD-TO-MATURITY- The rate of return yielded by a debt security held to maturity when both interest payments and the investor's potential capital gain or loss are included in the calculation of return.

ZERO-COUPON SECURITIES - Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity.
675

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Acting City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer MEETING DATE: August 26, 2025
SUBJECT: Consideration of Resolution 2025-115, Awarding a Professional Services Agreement to EEC Environmental for Inspection Services and Compliance with the Spill Prevention, Control, and Countermeasure (SPCC) Plan at Banning Municipal Airport in the amount not to exceed $90,000 over a 5-year contract.

RECOMMENDATION:

Adopt Resolution 2025-115.

BACKGROUND:

Banning Municipal Airport has a 10,000 gallon Avgas 100LL above ground aviation fuel tank that pilots can use to refuel their aircraft. The Riverside County Department of Environmental Health (DEH) regulates fuel tanks and issued the Airport’s Above Ground Fueling Station Hazardous Materials (Haz Mat) Permit. This Permit requires a Spill Prevention, Control, and Countermeasure (SPCC) Plan, that lists requirements and best management practices (BMPs). Additionally, there are associated regulatory requirements from the DEH and the South Coast Air Quality Management District (SCAQMD). The City must demonstrate compliance through properly documented monthly and annual inspections, fuel delivery monitoring, employee training, and equipment testing.

The SPCC Plan includes:

Monthly and Annual Inspections of the above ground fuel storage tank and completion of required Checklists
Inspection and completion of the Checklist when Airport Fuel is delivered (Assume two times per year on average)
Annual compliance training of Airport staff
Completion of the Annual Tank Facility Statement, if required Annual required AQMD test
Consultant Contract
A Request for Proposals (RFP) for the “Inspection Services and Compliance with the SPCC Plan at Banning Municipal Airport” was originally issued on September 27, 2024 and was subsequently cancelled after receiving only one bid. On April 8, 2025, this project was rereleased as RFP 25-100 through the OpenGov electronic bidding program notifying qualified firms of the opportunity to provide proposals. The RFP was advertised in the Press Enterprise on April 11, 2025, shown as Attachment 2, and is included as Attachment 3. The Scope of Work provides for performing the monthly and annual inspections of the fuel tank at the Airport, fuel delivery monitoring (once or twice per year) and reporting, training of staff, and equipment testing required by the South Coast Air Quality Management District 676
(SCAQMD).

The deadline for submitting proposals was May 7, 2025, and two (2) firms responded with submittals. An evaluation committee consisting of three (3) City staff members, evaluated the two (2) proposals that were received based on qualifications of key personnel, experience in performing inspections of Airport fuel tanks, management of SPCCs, County DEH and SCAQMD requirements, approaches in providing the scope of work services, references, and price proposals.

Listed below are the two (2) firms that submitted proposals in order of the total combined score received from the three (3) evaluators:

CONSULTANT TOTAL SCORE
EEC Environmental 90.67
AARC Consultants, LLC 87.00
EEC Environmental received the highest score, and their Proposal and Cost Estimate/Fee Proposal are shown as Attachments 4 and 5, respectively. The company is a reputable, qualified firm that has successfully provided these services for retail gas stations, and as a result, staff recommends the contract award to EEC Environmental.

JUSTIFICATION:

The Riverside County Department of Health (DEH) issued an Above Ground Fueling Station Hazardous Materials (Haz Mat) Permit to the City for the fuel tank at Banning Municipal Airport. The Permit requires a Spill Prevention, Control, and Countermeasure (SPCC) Plan for the fuel tank and compliance with its requirements, such as inspections, staff training and South Coast Air Quality Management District (SCAQMD) equipment testing. A consultant firm is needed to perform these inspections and services for the City to ensure compliance with the DEH issued Haz Mat Permit.

FISCAL IMPACT:

The Public Works Department, Streets Division, manages the Airport and there is one part time employee that serves as the airport attendant. A budget appropriation in the amount of $14,770.00 charged to Airport Account No. 600-5100-435-30.06 (Repair/Maintenance Equipment) is needed to fund the Professional Services Agreement. The Agreement term is up to five years, based upon satisfactory performance each year. A “not to exceed” total five-year contract amount of $90,000 is requested to assist with each year’s required fuel tank inspections, training and fuel tank testing and any unanticipated work that could not be done in house, if needed.

The requested appropriation and transfer of funds does not impact the General Fund.

ALTERNATIVES:

If the City Council elects to not approve this Resolution, there will be no consultant to perform the required tasks as listed in the Airport's SPCC Plan, which includes: written monthly and annual inspections of the fuel tank at the Airport, fuel delivery monitoring and reporting, training of staff, and equipment testing. The County DEH and SCAQMD oversee these regulatory requirements.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Reso 2025-115 - SPCC Plan Compliance Award of PSA to EEC Environmental.docx 677

2. Att. 1 Proof of RFP Ad in Press Enterprise on April 11, 2025.pdf

3. Att. 2 RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan, April 2025.pdf

4. Att. 3 EEC Environmental Proposal.pdf

5. Att. 4 EEC Detailed Cost Estimate, Bid Proposal.pdf

6. PSA -EEC
678
Resolution 2025-115

RESOLUTION 2025-115

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

AWARDING A PROFESSIONAL SERVICES AGREEMENT TO EEC ENVIRONMENTAL FOR

INSPECTION SERVICES AND COMPLIANCE WITH THE SPILL PREVENTION, CONTROL,

AND COUNTERMEASURE (SPCC) PLAN AT BANNING MUNICIPAL AIRPORT IN AMOUNT NOT TO EXCEED $90,000 OVER A 5-YEAR CONTRACT
WHEREAS, Banning Municipal Airport has an above ground aviation fuel tank that pilots can use to refuel their aircraft, and the Riverside County Department of Environmental Health (DEH) regulates fuel tanks and issued the Airport’s Above Ground Fueling Station Hazardous Materials (Haz Mat) Permit; and
WHEREAS, the Haz Mat Permit requires a Spill Prevention, Control, and Countermeasure (SPCC) Plan, that lists requirements and best management practices (BMPs) and additionally, there are associated regulatory requirements from the DEH and the South Coast Air Quality Management District (SCAQMD) whereby the City must demonstrate compliance through written monthly and annual inspections of the fuel tank, fuel delivery monitoring, employee training, and equipment testing; and
WHEREAS, on September 27, 2024, a Request for Proposals (RFP) 24-081, “Inspection Services and Compliance with the SPCC Plan at Banning Municipal Airport” was released through the OpenGov electronic bidding program and was subsequently cancelled after receiving only one bid; and
WHEREAS, on April 8, 2025 the project was rereleased as RFP No. 25-100, “Inspection Services and Compliance with the SPCC Plan at Banning Municipal Airport” through the OpenGov electronic bidding program notifying qualified firms of the opportunity to provide proposals and the Scope of Work provides for performing the monthly and annual inspections of the fuel tank at the Airport, fuel delivery monitoring (once or twice per year) and reporting, training of staff, and equipment testing required by the South Coast Air Quality Management District (SCAQMD); and WHEREAS, the deadline for submitting proposals was May 7, 2025 and two (2) firms responded with submittals. An evaluation committee consisting of three (3) City staff members, evaluated the two (2) proposals that were received based on qualifications of key personnel, experience in performing inspections of Airport fuel tanks, management of SPCCs, County DEH and SCAQMD requirements, approaches in providing the scope of work services, references, and price proposals; and
WHEREAS, EEC Environmental had the highest combined score from the three (3) evaluators and is a reputable qualified firm that is currently providing these services to gas stations in California and around the country, and they have SPCC compliance experience and as a result, staff recommends the contract be awarded to EEC Environmental; and WHEREAS, the expenditure will be funded with transfers from other Airport funds and a budget appropriation from the Airport Fund 600-5100-435-30.06 (Repair/Maintenance Equipment).

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:
679
Resolution 2025-115

SECTION 1. The City Council approves the Professional Services Agreement with EEC Environmental for a one-year term in an amount of $14,770 and subsequent amendments to extend the Agreement for up to four (4) additional year terms upon satisfactory performance, with a total not-to-exceed amount of $90,000 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 EEC Environmental 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.

PASSED, APPROVED AND ADOPTED this 26th day of August, 2025. ________________________
Sheri Flynn, Mayor
City of Banning
ATTEST:
_________________________________
Sandra Calderon, Acting Administrative City Clerk
City of Banning, California
APPROVED AS TO FORM:
____________________________
John Pinkney, Interim City Attorney
Slovak, Baron, Empey, Murphy & Pinkney LLP
680
Resolution 2025-115

CERTIFICATION:

I, Sandra Calderon, Acting Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2025-115, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 26th day of August 2025 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________________
Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
681
Resolution 2025-115

Exhibit “A”
Professional Services Agreement with EEC Environmental
682
RFP 25-100 Inspection and Compliance - Page 1 of 2
FILER
angelo heidt
[email protected]
(951) 922-3121

FILING FOR
The Press-Enterprise
Columns Wide: 4 Ad Class: Legals

INTERIM AD DRAFT
This is the proof of your ad scheduled to run in The Press-Enterprise on the dates indicated below.

If changes are needed, please contact us prior to deadline at (951) 368-9229.

Notice ID: INjZAPXNrUpqlbd9HVS9 | Proof Updated: Apr. 08, 2025 at 03:09pm PDT Notice Name: RFP 25-100 Inspection and Compliance
04/11/2025: Notice for Bids 126.17
Subtotal $126.17
Tax % 0
Total $126.17
See Proof on Next Page
683
R
FP25-100 InspectionandCompliance-Page2of2
684

REQUEST FOR PROPOSAL
RFP 25-100 INSPECTION AND COMPLIANCE SERVICES FOR BANNING

MUNICIPAL AIRPORT SPCC PLAN
RFP-25-100

CITY OF BANNING, CA
http://www.banningca.gov
RELEASE DATE: April 8, 2025
DEADLINE FOR QUESTIONS: April 21, 2025
RESPONSE DEADLINE: May 7, 2025, 4:00 pm
RESPONSES MAY BE SUBMITTED ELECTRONICALLY TO:
https://secure.procurenow.com/portal/banning-ca
685
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan
I. Notice ........................................................................................

II. Introduction ..............................................................................

III. Prerequisites .............................................................................

IV. Scope of Work ...........................................................................

V. Vendor Questionnaire...............................................................

VI. Pricing Proposal.........................................................................

VII. Submission Instructions And Inquiries......................................

VIII. Evaluation Criteria.....................................................................

IX. Resulting Contract.....................................................................

X. Terms And Conditions...............................................................

Attachments:

A - Professional Services Agreement Template with Prevailing Wage - provided by RWG 4-24-23
B - Updated_Banning_SPCC_Plan_Final_December_of_2022
686
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan I. Notice

REQUEST FOR PROPOSALS (RFP)
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan Dear Proposers:

The City of Banning (hereinafter referred to as the “City”) is requesting proposals from a qualified public entity or private firm, to establish a contract for the scope of services outlined in this request for proposals.

NOTICE IS HEREBY GIVEN that online price and document submittals must be uploaded to the online bidding system in accordance with the instructions included herein, on or before the time and date set forth in the schedule of events. It shall be the responsibility of the proposer to upload their proposal before the announced time. However, responses may be submitted at any time prior to the deadline. (Submitted proposals may be withdrawn and resubmitted at any time prior to the deadline, and cannot be viewed by City staff until the close date and time.) SOLICITATION DOCUMENTS: To obtain a copy of the solicitation documents, please visit https://procurement.opengov.com/portal/banning-ca. If you are not currently registered with the City of Banning through OpenGov, please create an account and subscribe to this project for notifications. Proposals may only be submitted by companies who are listed as a prospective bidder on the electronic bidding website for each project that they wish to submit a response to.

Firms must also check the web site periodically for addenda information as failure to download and acknowledge any and all addenda in the submittal will result in proposer disqualification.

RESPONSIVE PROPOSALS: Once listed on the prospective bidders list, companies may submit their proposals on the electronic bidding system. The City will not accept proposals submitted by companies who are not on the prospective bidders list, or from companies who have submitted a proposal via facsimile, email, mail, or any other format not permitted by this solicitation.

Further instructions for submitting proposals are explained in this solicitation. Companies are to adhere to all of the submittal instructions and requirements outlined in this solicitation in order to be considered responsive to this request for proposals. 687
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan II. Introduction
II.A Summary
The City of Banning (“City”) is seeking a qualified entity or individual (“Company”) to provide the services listed in the Scope of Work.

The City anticipates selecting one firm to perform the services.

Proposals are requested from Companies that have a demonstrated ability to perform the tasks identified in this Request for Proposal (“RFP”).

II.B Background
The City of Banning Public Work Standards can be found on the City of Banning's website at the following link:
http://www.banning.ca.us/21/Engineering.

The City of Banning is strategically located astride Interstate 10 between the Inland Empire and the Coachella Valley in the San Gorgonio Pass. The City, incorporated in 1913, has a rich and colorful history.

Initially Banning served as a stagecoach and railroad stop between the Arizona territories and Los Angeles. This history has contributed to the present-day spirit of pioneer resourcefulness and "can do" attitude that is so prevalent in the community.

Banning is a friendly and wholesome place to work and raise a family. Desirable executive housing is available, as well as moderate and lower income housing. Clean air, ample water supplies and the memorable and inspiring scenic vistas of both Mt. San Gorgonio and Mt. San Jacinto, the 2 tallest peaks in Southern California, are additional amenities which make the City of Banning a logical choice as a development opportunity in the Southern California area.

II.C Contact Information
Barbara Mason
Purchasing Manager
99 E. Ramsey Street
Banning, CA 92220
Email: [email protected]
Phone: (951) 922-3121
Department:

Purchasing Division
688
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan II.D Timeline
This request for proposal will be governed by the following tentative schedule. All dates are subject to change at the discretion of the City.

Release Project Date April 8, 2025
Question Submission Deadline April 21, 2025, 4:00pm
Proposal Submission Deadline May 7, 2025, 4:00pm
Tentative Vendor Selection Date May 20, 2025
689
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan III. Prerequisites
Proposals will only be considered from Companies that meet the following prerequisites:

III.A Years of experience
Have at least five (5) years’ of experience, within the past seven (7) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.

III.B OpenGov Registration
Have created an account on OpenGov. Companies can register at:
https://procurement.opengov.com/portal/banning-ca
Once registered, Companies must download this solicitation in order to appear on the Bidder’s List as a “Prospective Bidder.” Companies that fail to specifically download this solicitation will not appear on the Bidders’ List and will be unable to participate or be considered for this RFP.

III.C Licenses
If applicable, Company and/or its key personnel, shall hold an appropriate license for the Company’s discipline and the Services on the date the Proposal is submitted.

III.D Department of Industrial Relations Registration
If applicable, Company shall have registered with the Department of Industrial Relations and any other required organizations.
690
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan IV. Scope of Work
IV.A SCOPE OF WORK
Consultant shall provide all necessary support to ensure Banning Airport is in compliance with its SPCC Plan to comply with the Riverside County Department of Health’s (DEH) issued Above Ground Fueling station Haz Mat Permit. The consultant will furnish personnel, and all services necessary to perform and record the required monthly, annual and fuel transfer inspections and provide training as listed in the SPCC.

Consultant’s responsibilities include complying with the SPCC (pages below are referenced in the SPCC, shown as an attachment) to ensure that Banning Airport receives:
• Annual compliance training of Airport staff (page 54/70); • Inspection and completion of Checklist when Airport Fuel is delivered (Assume two times per year on average (page 63/70);
• Monthly and Annual Inspections of the above ground storage tank and completion of required Checklists (page 55/70 and page 56/70, respectively) • Completion of the Annual Tank Facility Statement if required • Required annual AQMD test
• Additional services as needed to comply with the SPCC Additionally, the consultant will be available to answer questions as needed. Update staff on changes to the DEH Permit, answer DEH inquiries, inform staff of regulatory changes, etc.

Consultant shall be responsible for the supervision, administration and work performed by any subconsultants for services rendered.
691
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan V. Vendor Questionnaire
Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Responses should emphasize the Company’s demonstrated capability to perform work of this type. Emphasis should be concentrated on completeness and clarity of content. Proposals shall adhere to the following format for organization and content. Proposals must be typed and arranged/divided in the following sequence to facilitate evaluation.

V.A Cover Letter*
The cover letter shall include a brief general statement of intent to perform the services and confirm that all elements of the RFP have been reviewed and understood. The letter shall include a brief summary of Company’s qualifications and Company’s willingness to enter into a contract under the terms and conditions prescribed by this RFP and in the Sample Agreement. The letter must identify a single person for contact during the RFP review process. *Response required
V.B Proposal*
A. Statement of Understanding and Approach
o This section must demonstrate an understanding of the Services. It should describe the general approach, organization and staffing required for the Services requested. If necessary, preliminary investigations, due diligence, and research shall be discussed in this section.
o This section should include the following:
▪ An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.
▪ Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section. ▪ Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.
692
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan ▪ Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.
▪ Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, cost-effective operations or increased performance capabilities. In addition, the City will consider proposals that offer alternative service delivery means and methods for the services desired.
▪ Proposers are also requested to identify any City owned facilities or property which Proposer would propose to use or lease, purchase, or rent from the City in connection with the services to be performed, including information about the terms of any proposed lease, purchase or use of such equipment and facilities, and how this proposed structure affects the overall cost proposal to the City, if applicable.

B. Company Information
o This section shall include contact person information, address and telephone number of the company main office and branch offices. Each Company shall identify itself as to the type of organizational entity (corporation, sole proprietorship, partnership, joint venture, etc.). Any supplemental information that Company believes may be pertinent to the selection process may be provided.
o The Proposal shall identify any litigation, mediation, or arbitration, regarding the performance of any services similar to the Services, in which the Company has been involved in the past five (5) years. If the Services require a license or certification, the Proposal shall include any claims or disciplinary action taken against Company or any of Company’s key personnel within the past five years.

C. Company Personnel
o This section shall contain names, contact numbers and description of experience, including licenses and/or certifications, of all key personnel who would be assigned to perform the Services. Members of the Company’s professional team (managers, contact person, etc.) should be identified by name, title, phone number, and description of the portion of work they will be assigned to perform under this Agreement. Also include major subcontractors (if any) and their degree of involvement in this program. If the Company is including any subcontractors, the Company shall identify how long the Company has worked with the subcontractor. o An affirmative statement should be included that the proposer and all assigned key professional staff are properly licensed to practice in California.

D. Disclosure
o Please disclose any and all past or current business and personal relationships with any current Banning elected official, appointed official, City employee, or family 693
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan member of any current Banning elected official, appointed official, or City employee.

Any past or current business relationship may not disqualify the firm from consideration.

E. Experience and References
o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.
o Company shall provide at least 3 references, within the past 5 years, of clients for whom services have been performed that are comparable in quality and scope to that specified in this RFP. The references shall include client names, addresses, telephone numbers and e-mail addresses of the clients for whom prior work was performed and include an explanation of the services provided along with project start and end dates.
*Response required
V.C Price Proposal*
All proposals submitted shall have a stated dollar bid amount for providing the services outlined in the Scope of Services. The total shall be an all-inclusive maximum price and to contain all direct and indirect costs including all out-of-pocket expenses with a full and complete breakdown of all said costs, and proposed fees including but not limited to hourly rates, reimbursable expenses and/or rates, mileage and/or travel cost, miscellaneous fees, etc., for the first year's audit engagement.

In addition, a statement must be included in this section that if the proposer is charging travel costs, the proposer's charges invoiced to the City for travel, lodging and subsistence shall not exceed the current IRS rates.
*Response required
V.D Value Added Services
Please describe any value-added services your company offers that may be of use to the City V.E Evidence of Insurance*
In addition, the Company shall provide evidence of possession of insurance in the coverage and amounts listed in the Sample Agreement.

City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not a declaration or policy) or proof of legal self-insurance on file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar days of award of contract, successful Proposer must furnish the City with the Certificates of Insurance proving coverage as specified in contract sample.
694
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan *Response required
V.F Vendor Forms
Please download the below documents, complete, and upload. • New_Vendor_Packet.pdf
V.G Type of Business*
☐ C Corporation
☐ S Corporation
☐ Limited Liability C Corporation
☐ Partnership
☐ Limited Liability Partnership
☐ Sole Proprietor/Individual
☐ Other
*Response required
V.H Type your Legal Company Name Here*
State your Company's Name Here. This will be verified against the California Secretary of State's Website.
*Response required
V.I EX PARTE COMMUNICATIONS CERTIFICATION*
I certify that Bidder and Bidder’s representatives have not had any communication with a City Councilmember concerning this IFB at any time after the date and time that this IFB was publicly advertised.
☐ Yes
☐ No
*Response required
V.J EX PARTE COMMUNICATIONS CERTIFICATION CONTINUED*
If stated "Yes" above, please explain the circumstances in the following space, or state "None." *Response required
V.K DEBARRED, SUSPENDED, DISQUALIFIED QUESTIONNAIRE*
Has the Company, any officer of the Company, or any employee of the Company who has proprietary interest in the Company, ever been debarred, suspended, disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or safety regulation? ☐ Yes
☐ No
695
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan *Response required
V.L DEBARRED SUSPENDED DISQUALIFIED QUESTIONNAIRE CONTINUED* If stated "Yes" above, please explain the circumstances in the following space, or state "None." *Response required
V.M DISCLOSURE OF GOVERNMENT POSITIONS*
Each Bidder shall disclose below whether any owner or employee of the firm currently hold positions as elected or appointed officials, directors, officers, or employees of a governmental entity or held such positions in the past twelve months. List below or state "None." *Response required
V.N CERTIFICATION COMPLIANCE*
Please download the below documents, complete, and upload. • Certification-Compliance_wi...
*Response required
V.O CARB Compliance Form**
Please download the below documents, complete, and upload. • CARB_Compliance_(NEW_01-01-...
*Response required
696
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan VI. Pricing Proposal

RATE SHEET
Line Item Description Quantity Unit of
Measure
Unit Cost Total
1 Annual Compliance Training 1 EA
2 Inspection of Fuel Delivery Checklist
(At least 2 times per year)
2 EA
3 Monthly Inspections of Above Ground
Storage Tank and Completion of
Required Checklists
12 Monthly
4 Annual Inspection of Above Ground
Storage Tank and Completion of
Required Checklists
1 EA
5 Annual Tank Facility Statement 1 EA
6 Annual AQMD Test 1 EA
7 Additional Services as Needed to
Comply with SPCC
10 HR
TOTAL
697
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan VII. Submission Instructions And Inquiries
VII.A Inquiries
If prior to the date fixed for submission of Proposals, a prospective Company discovers any ambiguity, conflict, discrepancy, omission or other errors in this RFP or any of its appendices, exhibits or attachments, the Company shall immediately notify the City of such error in writing and request modification or clarification of the document. Modifications shall be made by written Addenda to the RFP.

If a Company fails to notify the City, prior to the date fixed for submissions of Proposals, of an error in the RFP known to the Company, or an error that reasonably should have been known to the Company, the Company shall submit its Proposal at its own risk, and if the Company is awarded a Contract, it shall not be entitled to additional compensation or time by reason of the error or its later correction.

All communications regarding technical, scope, and/or project related questions and requests for clarifications, changes, exceptions, and deviations to the terms and conditions set forth in this RFP shall be submitted via “Q&A” through the City’s Electronic Bidding System, OpenGov, before the deadline and according to these specifications herein. Any and all other bidding communications shall only be with Barbara Mason, Purchasing Manager, at (951) 922-3121.

The Final day for receipt of questions from the Proposer shall be on or before the due date indicated in the schedule of events section. To ensure fairness and avoid misunderstandings, all communications must be in written format and submitted only in the format set forth above.

Any verbal communications will not be considered or responded to. All questions received by the due date will be logged and reviewed and if required, a response will be provided via an addendum to the RFP that will be posted on the City’s website. Any communications, whether written or verbal, with any City Councilmember, City staff, or RFP evaluation panel member other than the individual indicated above, prior to award of a contract by City Council, is strictly prohibited and the Proposer shall be disqualified from consideration.

VII.B Completion Of Proposal
Proposals shall be completed in all respects as required by this RFP. A proposal may be rejected if conditional or incomplete, or if it contains any alterations or other irregularities of any kind, and will be rejected if any such defect or irregularity can materially affect the quality of the proposal. Proposals which contain false or misleading statements may be rejected. If, in the opinion of the City’s Selection Committee, such information was intended to mislead the City in its evaluation of the proposal, and the attribute, condition, or capability is a requirement of this RFP, the proposal will be rejected. Statements made by a Company shall also be without ambiguity, and with adequate elaboration, where necessary, for clear understanding.

Unauthorized conditions, exemptions, limitations, qualifications, or provisions attached to a Proposal will render it non-responsive and will cause its rejection. 698
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan The Company, in responding to this RFP, must submit Proposals in the format identified in this RFP. The Proposal must address all requirements of the RFP even if a “no response” is appropriate.

Costs for developing Proposals are entirely the responsibility of the Company and shall not be chargeable to the City. The City shall not be liable for any costs incurred in response to this RFP, including but not limited to, costs for any interviews, presentations, or other follow-up information necessary as part of the selection process. All costs shall be borne by the Company responding to this RFP. The Company responding to this RFP shall hold the City harmless from any liability, claim, and expense whatsoever incurred by or on behalf of the Company.

VII.C Delivery / Submission Of Proposals
The Final day for submission of proposals shall be on or before the due date indicated in the schedule of events section.

Companies shall register on the City’s Electronic Bidding System, https://www.banningca.gov/bids. Once registered, Companies must download the RFP while logged in under their own name and identification number to appear on the Current Prospective Bidders List as a “Prospective Bidder.” Companies that fail to download the RFP will not appear on the Current Prospective Bidders List and their proposals will be considered non-responsive. If a Company is unable to register or download the RFP from the bidding website, a representative may contact ProcureNow.

All proposal documents and supplementary documents must be uploaded using the City’s bidding website prior to event date and time as instructed in this solicitation. Once file(s) have been uploaded and the Submission Status shows as “Submitted” the submission is complete. At that point respondents will receive an email confirmation from the bidding website.

The City reserves the right to reject any and all proposals and to waive information and minor irregularities in any proposal received.

Acceptance of Terms and Conditions - Submission of a proposal pursuant to this RFP shall constitute acknowledgment and acceptance of all terms and conditions hereinafter set forth in this RFP.

The time and date are fixed, and extensions will not be granted unless specifically stated by the City in an addendum to this RFP. Proposals not received before the bid event time will not be accepted.

VII.D Alternative Proposals
Only one proposal is to be submitted by each Company for this RFP. Multiple simultaneous proposals will result in rejection of all Proposals submitted by Company. A Company may, prior to the proposal due date and time, withdraw a proposal and submit a new proposal, so long as the new proposal is submitted before the proposal due date and time. 699
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan VII.E Examination Of RFP And Sites Of Work
The Company shall carefully examine the RFP and all sites, if applicable, of the work contemplated. The submission of a Proposal shall be conclusive evidence that the Company has investigated and is satisfied as to the conditions to be encountered, as to the character, quality, and quantities of work to be performed and materials to be furnished, the difficulties to be encountered, and to the requirements of the Proposal, RFP, and other Contract Documents.

By submitting a Proposal, the Company hereby certifies that it has: examined the local conditions, read each and every clause of this RFP, included all costs necessary to complete the specified work in its proposed prices, and agrees that if it is awarded the Contract it will make no claim against the City based upon ignorance of local conditions or misunderstanding of any provision of the Contract. Should the conditions turn out otherwise than anticipated by it, the Company agrees to assume all risks incident thereto.

VII.F Addenda
Unless otherwise specified, any addenda issued during the time of bidding must be acknowledged electronically via the City’s Bidding Website, which will be made part of the proposal. Addenda notifications will be provided to those listed on the Electronic Prospective Bidder’s List via email.

VII.G Withdraw Of Proposals
All proposals shall be firm offers and may not be withdrawn for a period of one hundred twenty (120) days following the deadline date for submission of proposals noted herein. Submitted Proposals may be withdrawn at any time prior to the submission deadline.

VII.H Pre-Proposal Meeting
There will be no pre-proposal meeting.
700
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan VIII. Evaluation Criteria
The City reserves the right to amend, withdraw, and cancel this RFP. The City also reserves the right to reject all responses to this RFP at any time prior to agreement execution. Furthermore, the City reserves the right to request additional information about any and all Proposals, that in City’s opinion, is necessary to assure that the Company’s competence, number of qualified employees, business organization, experience, and financial resources are adequate to perform the Services.

All Proposals shall be reviewed to verify that the Company has met the minimum requirements as stated in this RFP. Proposals that have not followed the rules, do not meet minimum content and quality standards, and/or do not provide references will be rejected as non-responsive.

Responsive proposals will be evaluated on the basis of the criteria below. If needed, interviews will be scheduled during or after the week indicated in the “Schedule of Events” section.If needed, interviews will be conducted by the same members on the proposal evaluation panel.

Dates, times, and a location will be coordinated at that time if interviews are deemed necessary after the evaluation of responsive proposals. If interviews are deemed necessary, candidates who have submitted the highest scoring proposals within a competitive range as determined by the City will be invited to participate in the interview process.

The selected Company shall then enter into exclusive negotiations with the City to formalize the Scope of Service and Compensation. Recommendation for award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to competing Proposers unless an agreement is reached. If the City is unable to obtain a fair and reasonable price or cannot reach agreement regarding the terms for the Scope of Services, then the City will end negotiations with that Company and begin negotiations with the next Company which best meets the needs of the City, and so on until a City and the Company reach agreement.

The City intends to select the Company that offers the best value to the City based on the criteria outlined above.

No. Evaluation Criteria Scoring Method Weight (Points)

1. Qualifications Points Based 30
(30% of Total)

2. Pricing Points Based 15
(15% of Total)

3. Experience (Projects of similar size and scope) Points Based 25 (25% of Total)

4. Professional References Points Based 10
(10% of Total)
701
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan

5. Approach and Methodology Points Based 15
(15% of Total)

6. Value Added Services Points Based 5
(5% of Total)
702
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan IX. Resulting Contract
IX.A CONTRACT TERM
The initial term of the Agreement shall last one (1) year from the date of execution with the option to extend for four (4) additional one-year terms not to exceed five (5) years based upon acceptable performance by the Company, acceptable fees and subject to the same terms and conditions of the Agreement.

Pricing is to remain firm for the initial contract term. Should the option to renew for additional years be exercised, City and Company may negotiate any and all price modifications.

IX.B CONTRACT DOCUMENTS
In submitting a Proposal, the Company agrees to enter into an Agreement with the City without exceptions to the City’s standard agreement. The City’s standard agreement is non-negotiable, and a copy of the standard agreement is attached herein. Any change to the standard agreement will deem the Proposal non-responsive. In the event of a conflict exists between documents the following order of precedence shall apply:
• Agreement
• City of Banning’s Request For Proposals
• Company’s Response to the Request For Proposals
IX.C EXECUTION OF AGREEMENT
After contract award, the following shall be signed and returned to the City within fourteen (14) calendar days from the date the City mails, or by other means delivers said documents to the Company:
• The Agreement in the form included herein, properly executed by the Company. • Certificates of Insurance and Additional Insured Endorsement evidencing coverage as specified in the sample agreement.
• Confirmation of current business tax certificate.
• Bonds, if required.

In any event that day fourteen (14) of calendar days falls on Saturday, Sunday, a legal holiday for the State of California, or on days when the City is closed, the Contract Documents shall be delivered by the following working day.

No Agreement shall be binding upon the City until all documents are fully executed by the Company and the City.
703
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan IX.D FAILURE TO EXECUTE THE AGREEMENT
Failure to execute the Agreement and furnish the required insurance and business tax certificate, within the required time period shall be just cause for the rescission of the award. If bonds are also required, failure to furnish sufficient bonds shall cause rescission of the award. If the successful Company refuses or fails to execute the Agreement, the City may award the Agreement to the next qualified Company.
704
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan X. Terms And Conditions
X.A Contract Terms And Conditions
The successful company will be required to execute the City's standard agreement (“Agreement”). A sample is attached herein. The successful company must meet all insurance requirements in the Agreement. All terms and conditions of the Agreement are non-negotiable.

Companies must possess valid City of Banning Business License throughout the term on the contract. Failure to execute the Agreement and furnish the required insurance within the required time period shall be just cause for the rescission of the award. If any of the successful Companies refuse or fail to execute the Agreement, the City may award the Agreement to the next most qualified Company.

X.B Public Records
All Proposals submitted in response to this RFP become the property of the City and pursuant to the Public Records Act (Gov. Code, § 6250 et seq.) are public records, and as such may be subject to public review at least 10 days before selection.

The Company must notify the City in advance of any proprietary or confidential materials contained in the Proposal and provide justification for not making such material public. The City shall have sole discretion to disclose or not disclose such material subject to any protective order that the Company may obtain. Note that under California law, price proposal to a public agency is not a trade secret.

Submission of a proposal shall indicate that, if Proposer requests that the City withhold from disclosure information identified as confidential, and the City complies with the Proposer’s request, Proposer shall assume all responsibility for any challenges resulting from the nondisclosure, indemnify and hold harmless the City from and against all damages (including but not limited to attorney’s fees that may be awarded to the party requesting the Proposer information), and pay any and all costs and expenses related to the withholding of Proposer information. Proposer shall not make a claim, sue, or maintain any legal action against the City or its directors, officers, employees, or agents concerning the disclosure, or withholding from disclosure, of any Proposer information. If Proposer does not request that the City withhold from disclosure information identified as confidential, the City shall have no obligation to withhold the information from disclosure and may release the information sought without any liability to the City.

The City reserves the right to make use of any information or idea contained in the Proposal. All materials, ideas and formats submitted in response to this RFP will become the property of the City upon receipt.
705
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan X.C Conflict Of Interest
The Proposer warrants and represents that it presently has no interest and agrees that it will not acquire any interest which would present a conflict of interest under California Government Code sections 1090 et seq., or sections 87100 et seq., during the performance of services under any Agreement awarded. The Proposer further covenants that it will not knowingly employ any person having such an interest in the performance of any Agreement awarded. Violation of this provision may result in any Agreement awarded being deemed void and unenforceable.

X.D Rejection Of Proposals
The City may reject any/or all Proposals and may waive any immaterial deviation in a Proposal.

The City’s waiver of an immaterial defect shall in no way modify this RFP or excuse the Company from full compliance with this RFP and/or the Contract Documents if awarded the Contract.

Proposals that include terms and conditions other than City’s terms and conditions may be rejected as being non-responsive. The City may make investigations as deemed necessary to determine the ability of the Company to perform the work, and the Company shall furnish to the City all such information and data for this purpose as requested by the City. The City reserves the right to reject any proposal if the evidence submitted by, or investigation of, such Company fails to satisfy the City that such Company is properly qualified to carry out the obligations of the Agreement and to complete the work described herein.

X.E Protest Procedures
Failure to comply with the rules set forth herein may result in rejection of the protest. Protests based upon restrictive specifications or alleged improprieties in the proposal procedure which are apparent or reasonably should have been discovered prior to receipt of proposals shall be filed in writing with the RFP Facilitator at least 10 calendar days prior to the deadline for receipt of proposals. The protest must clearly specify in writing the grounds and evidence on which the protest is based.

Protests based upon alleged improprieties that are not apparent or which could not reasonably have been discovered prior to submission date of the proposals, such as disputes over the staff recommendation for contract award, shall be submitted in writing to the RFP Facilitator, within forty-eight hours from receipt of the notice from the City advising of staff’s recommendation for award of contract. The protest must clearly specify in writing the grounds and evidence on which the protest is based. The RFP Facilitator will respond to the protest in writing at least three days prior to the meeting at which staff’s recommendation to the City Council will be considered.

Should Proposer decide to appeal the response of the RFP Facilitator, and pursue its protest at the Council meeting, it will notify the RFP Facilitator of its intention at least two days prior to the scheduled meeting.
706
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan X.F Cancellation
The City retains the right to cancel this RFP at any time, should it be deemed to be in the best interest of the City. No obligation either expressed or implied exists on the part of the City to make an award based on the submission of any proposals. 707
City of Banning

REQUEST FOR PROPOSAL
RFP 25-100 Inspection and Compliance Services for Banning Municipal Airport SPCC Plan IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Douglas Schulze, Date
City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Caroline Patton Date
Deputy City Clerk
Address:

APPROVED AS TO FORM:

Richards, Watson & Gershon
City Council Approval: _____________
Kevin G. Ennis, Esq., Date
City Attorney

NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. 708
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 Statement of Understanding and Approach
General Approach
The EEC team understands that the SPCC compliance scope of work is directly tied to the Banning Municipal Airport’s Aboveground Fueling Station Hazardous Materials Permit issued by the Riverside County Department of Environmental Health (DEH).

EEC Environmental (EEC) recognizes the City of Banning’s need for ongoing, responsive, and technically sound support to maintain compliance with its Spill Prevention, Control, and Countermeasure (SPCC) Plan, as well as associated regulatory requirements from DEH and the South Coast Air Quality Management District (SCAQMD). The City must demonstrate compliance through properly documented monthly and annual inspections, fuel delivery monitoring, employee training, equipment testing, and regulatory communication.

Our team has the regulatory expertise, airport fueling system experience, and compliance management systems required to perform these services reliably and efficiently. We understand the critical importance of maintaining SPCC compliance at airport facilities and other locations where petroleum products are stored in aboveground tanks. Adhering to the SPCC Plan is essential to prevent environmental spills, protect public safety, and ensure uninterrupted airport operations. It also minimizes potential legal and financial liabilities.

EEC’s approach to this project begins with collaborative planning between the City and our project team.

We emphasize early coordination to clearly define the inspection schedule, training logistics, regulatory deadlines, and document control processes. We also promote open and proactive communication between all team members to support timely task completion, prompt resolution of emerging issues, and alignment on project status and deliverables.

Timeliness and efficiency are essential to project success. EEC will work in parallel wherever possible— conducting field inspections while processing documentation and reporting tasks simultaneously—to reduce overall project duration. Our goal is to provide the City with seamless SPCC compliance support that ensures operational readiness, regulatory alignment, and long-term environmental stewardship.

Organization and Staffing
As Project Manager, Lanni Duong, CSP, will lead a team of dedicated professionals, including Professional Civil Engineers, Professional Geologists, and Compliance Specialists to complete the project scope efficiently and in full regulatory compliance. An organizational chart is included below to illustrate team structure and responsibilities.

Name Title Role Years of
Experience
Lanni Duong, CSP Sr. Environmental Compliance
Manager
Project Manager 25
Stan Steinbach, PE Principal Engineer Compliance Engineer 30 Will Shaffer, PE Senior Project Engineer Project Engineer 12 Joe Jenkins Project Regulatory Specialist II Compliance Manager 18 Laura Holder Project Manager Project Support 21
Alex Aguirre Compliance Specialist Compliance Support 5 709
Inspection and Compliance Services-Banning Municipal Airport 2 May 7, 2025 Name Title Role Years of
Experience
Baltazar
Maldonado
Compliance Inspector Compliance Inspector 8
Implementation Plan
Project Management Approach
EEC emphasizes hands-on involvement throughout the project lifecycle, especially for technically complex projects requiring multidisciplinary coordination. Our approach ensures that EEC Principals and experienced professionals work closely with Project Engineers and Field Staff to manage tasks efficiently, maintain quality, and achieve results.

Planning
EEC approaches each engagement with a partnership mindset. Rather than merely fulfilling minimum requirements, we collaborate with the City of Banning to understand its unique operational and regulatory context. We will co-develop a project plan that aligns with the City’s compliance goals and integrates stakeholder input. Regular milestone meetings and workshops will support collaboration, drive transparency, and document key takeaways for ongoing reference and accountability.

Communication
Strong partnerships are built on clear communication. As Project Manager, Lanni Duong will serve as the single point of contact, streamlining communication between the City and the entire EEC team. This approach ensures consistency, eliminates redundancy, and reduces potential delays or misunderstandings.

Project updates will be provided on a regular basis, and data will be shared in real time through collaborative platforms. This allows for rapid response to changing field conditions and enables informed decision-making that helps reduce both cost and project duration.

Scope of Work
EEC’s efforts to complete the scope of work to the satisfaction of the City and in compliance with the SPCC Plan are provided below:

Annual compliance training of Airport staff
To complete this task, EEC will review existing training materials, coordinate with City representatives to update and enhance the content, and develop engaging, scenario-based training sessions to promote retention and awareness. Training will emphasize key SPCC requirements, emergency response procedures, fueling protocols, and employee responsibilities. Training records will be documented using the SPCC Training Record Form and maintained for regulatory review.

Inspection and completion of Checklist when Airport Fuel is delivered EEC will coordinate with the City and fueling staff to understand fuel delivery scheduling and review the relevant standard operating procedures (SOPs). EEC will also examine previous inspection records to ensure consistency with past practices and identify any areas for improvement. Fuel delivery inspections will include observation of tank vehicle transfer procedures and completion of the Tank Vehicle Transfer Checklist. This task will be performed approximately twice per year. 710
Inspection and Compliance Services-Banning Municipal Airport 3 May 7, 2025 Monthly and Annual Inspections of the above ground storage tank and completion of required Checklists EEC will conduct detailed monthly and annual inspections of the aboveground storage tank (AST) and associated equipment. Prior to conducting inspections, project team members will review the facility’s SPCC Plan, become familiar with the AST system layout and components, and examine historical inspection findings. EEC will complete all required inspection checklists, including the Monthly Oil/Container Inspection Checklist and the Annual AST Inspection Checklist, and provide the City with copies of completed forms and any corrective action recommendations.

Completion of the Annual Tank Facility Statement (if required) EEC will coordinate with a qualified subcontractor certified to perform AQMD-required compliance testing under Rule 461. EEC will review the current air permit to identify testing requirements, notification procedures, permit conditions, and recordkeeping mandates. EEC will ensure all test documentation, calibration data, and results are submitted to the City and stored in the compliance record.

Required annual AQMD test
In order to complete this task, EEC will coordinate with a qualified compliance tank tester to perform the required test, review the air permit to operate for compliance testing notifications requirements, permit conditions, recordkeeping requirements.

Additional services as needed to comply with the SPCC Plan EEC will support all SPCC Plan requirements and maintain compliance with related regulatory programs, including Riverside County DEH, AQMD, and CERS reporting. Additional services may include SPCC Plan updates, preparation of technical memoranda or correspondence, regulatory agency coordination, or updates to the facility’s Hazardous Materials Business Plan. EEC is fully prepared and qualified to provide additional services and project support as needed.

As indicated previously, open communication between the City and EEC will be an integral part of this project. EEC will be available to answer all questions pertaining to the Scope of Work items described above. EEC will address DEH inquiries and inform staff of any changes to the DEH permit and other regulatory changes or requirements. If a subconsultant performs any work for this project, EEC will be responsible for the supervision, administration, and work performed by the subconsultant.

Schedule
EEC understands the City’s goal of completing the project tasks as efficiently as possible and to comply with deadlines and requirements of the SPCC Plan. To accomplish this and keep the project on track, EEC will utilize an online scheduling project management platform to promote shared visibility and collaboration between the City and the EEC team. Real time project management helps identify project status and any potential hiccups that may require redirecting staff and effort to keep the project on track.

EEC utilizes the latest project management software to track and forecast project schedules. EEC will update the City on project schedules regularly. We will identify opportunities to reduce project timelines, when possible. A detailed project schedule is provided below:
711
Inspection and Compliance Services-Banning Municipal Airport 4 May 7, 2025 Project Schedule
Task Deliverable Unit Frequency
Monthly AST Inspections Completed Monthly Oil/Tank Container Inspection Checklist (Pg. 55) 12 Monthly
Annual AST Inspections Annual Above Ground Storage Tank Inspection Checklist (Pg. 56) 1 Annually
Fuel Transfer Inspection Tank Vehicle Transfer Checklist (Pg. 63) 2 ~2x/year (as needed)
SPCC Training for Airport
Staff Sign-in sheet, materials, certificates (Pg. 54) 1 Annually SCAQMD Test Test data, calibration data, tester records, notification of results, and test report. 1 Annually
Completion of Annual Tank
Facility Statement Annual Tank Facility Statement 1 Annually Regulatory Updates / Staff
Support
California Environmental Reporting System (CERS) upload of Hazardous Materials Business Plan Submissions,
Aboveground Petroleum Storage Act (APSA) Updates, SPCC
Plan Updates.
10 Ongoing,
as needed
SPCC Compliance Support Schedule (12 Months) (example and approximate) Task J F M A M J J A S O N D
Monthly AST Inspections X X X X X X X X X X X X
Annual AST Inspections X
Fuel Transfer Inspection X X
SPCC Training for Airport Staff X
SCAQMD Test X
Completion of Annual Tank
Facility Statement X
Regulatory Updates / Staff
Support X X X X X X
Project Oversight,
Coordination, Scheduling, and
Communications

X X X X X X X X X X X X
Transition Plan
Upon contract execution and to ensure a smooth transition, EEC will complete the following:
 Coordinate a meeting with City officials and appropriate airport staff  Request and review the past 12 months of inspection records  Request and review airport fueling SOPs, contact lists, and training materials 712
Inspection and Compliance Services-Banning Municipal Airport 5 May 7, 2025  Request and review copies of training records and materials  Request air permit, fuel throughput log related to SCAQMD Rule 461 fuel dispensing requirements  Attend orientation and obtain all necessary airport access credentials City Tasks
The City of Banning will play a key support and oversight role in ensuring Banning Municipal Airport remains in compliance with its Spill Prevention, Control, and Countermeasure (SPCC) Plan and Riverside County Department of Environmental Health (DEH) hazardous materials permit.

EEC will serve as the primary implementer of the scope of work, taking the lead on tasks such as:
• Conducting SPCC compliance training for City staff
• Performing inspections and required testing
• Completing all necessary checklists and documentation • Managing communications with the City, DEH, and relevant stakeholders In support of these efforts, the City will be responsible for:
• Coordinating access to the Airport site for scheduled activities • Providing historical records and documentation related to Airport facilities and operations • Reviewing EEC-generated deliverables (e.g., checklists, reports, correspondence) • Participating in communications or meetings regarding regulatory compliance, as needed This collaborative model ensures a smooth and effective partnership, with EEC providing technical leadership and regulatory expertise, while the City ensures operational access, context, and oversight.

Innovative Solutions
EEC will draw on its experience working with SPCC compliance at airport facilities to ensure the scope of work is completed in the most efficient, cost-effective manner and to increase performance capabilities. 713
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 EEC Company Information
EEC is a full-service environmental consulting firm that provides top-tier environmental, engineering, technology, and consulting services to public and private entities. EEC was founded in 1995 to fulfill a need for technical excellence and personal service. EEC is comprised of a team of experts in environmental audits and compliance, aboveground and underground storage tank services (removal, replacement, inspections, and compliance), Spill Prevention Control and Countermeasure (SPCC) plans, Stormwater
Pollution Prevention Plans (SWPPPs), hazardous material surveys (including asbestos, lead, polychlorinated biphenyls (PCBs), and mercury), Phase I and II Environmental Site Assessments, remediation, data management systems,
toxicology, hydrogeology, geology, industrial hygiene, and emerging contaminants including per- and polyfluoroalkyl substances (PFAS) and microplastics. EEC routinely performs Compliance Audits, SPCC Plan inspections, training, and reporting, Hazardous Materials Management Plans, Phase I ESAs, Phase II soil vapor, soil, and groundwater investigations, groundwater monitoring programs, human health risk assessments (HHRAs), air monitoring, asbestos and lead surveys and abatement, and site remediation. EEC also has extensive experience preparing site assessment work plans and reports, preliminary endangerment assessments (PEAs), feasibility studies, removal action work plans (RAWs), remedial action plans (RAPs), and closure reports for regulatory acceptance and approval.

EEC Facts at a Glance
Legal Name: EEC Environmental
Number of Employees: 60
Years in Business: 30
Corporate headquarters: 1 City Boulevard
West, Suite 1800
Orange, CA 92868
Phone Number: (714) 667-2300
Fax Number: (714) 667-2310
Website: www.eecenvironmental.com
Certifications/Licenses: Small Business Enterprise (CA DGS) #15715 Class A General 4 PGs, 4 PEs, and 2 QISPs
Engineering Contractors License #743267
Hazardous Substances Removal Certification
Tax Identification Number: 33-0665828
Primary Project Contact: Project Principal:

Ms. Lanni Duong, CSP Mr. Stan Steinbach, PE
Senior Environmental Compliance Manager Compliance Engineer Phone: (714) 667-2300 Phone: (714) 667-2300
Email: [email protected] Email: [email protected] 714
Inspection and Compliance Services-Banning Municipal Airport 2 May 7, 2025 EEC does not anticipate contracting issues, conflicts of interest, or litigation concerns that would affect our ability to contract immediately with the City of Banning. EEC does not currently or in the past has not had any litigation, mediation, or arbitration regarding the services or performance of any services similar to the services outlined in the RFP. Additionally, no claims or disciplinary action have been taken against EEC or any of EEC’s personnel related to their licensing or certification. EEC has never filed for bankruptcy under any business name.

EEC’s Culture and Philosophy
Responsiveness, integrity, and expert compliance, site assessment, and remediation experience are the hallmarks of EEC’s highly qualified management and staff. These qualities have resulted in EEC being the go-to choice for organizations and industries requiring a consultant that can integrate seamlessly into a client organization, enhance the technical qualifications, reduce regulatory costs, and provide creative solutions to quickly and cost-effectively resolve environmental and health and safety issues.

EEC does not operate on separate profit centers so applicable resources can be pulled from our other office and departments to support a project or program if needed. EEC has a strong entrepreneurial team and a safety culture that is very client-orientated to making sure quality, schedule, and budget expectations are met. Our proposed core project team is described in more detail in the Company Personnel section of this proposal.

EEC’s clients benefit from the solid reputation EEC has developed with agencies such as the State of California Department of Toxic Substances Control (DTSC), Regional Water Quality Control Boards (RWQCBs), Riverside County Department of Environmental Health (DEH), and other local agencies over the past 30 years by consistently performing high quality work while remaining cost effective.

SPCC Plan Development and Compliance:

EEC has successfully developed and implemented SPCC Plans for numerous facilities across various industries, including major clients in the airline, energy, and manufacturing sectors. Our experience spans both public and private entities, ensuring adherence to EPA SPCC regulations, DEH guidelines, and local regulatory compliance requirements. Key examples of our SPCC work include the development and implementation of SPCC Plans for critical infrastructure at multiple high-profile locations, such as airports and military installations.

EEC’s Divisions
EEC is composed of five divisions (compliance, environmental, engineering, stormwater, and litigation support) that operate both collectively and individually to achieve client and project needs and allow EEC to provide turnkey, beginning-to-end services.

EEC’s Compliance Division supports a wide range of public- and private-sector clients with environmental health and safety (EHS) regulatory support services. This division helps clients maintain compliance with federal, state, and local regulations through permit management, third-party auditing, sampling, training, regulatory negotiation, and in-house staffing. EEC’s Compliance Division completes onsite inspections to identify potential deficiencies and compliance issues related to hazardous materials and equipment such as USTs, ASTs, emergency generators, and boilers. EEC then provides solutions and guidance to address identified issues, including staff training, documentation of proposed site improvements, preparation of waste management database, compliance schedule databases, inspection forms, submittal of agency notification and permit applications and renewals, and implementation of mitigation measures. EEC prepares associated documentation, such as SPCC Plans, 715
Inspection and Compliance Services-Banning Municipal Airport 3 May 7, 2025 Hazardous Materials Business Plans, Storage Tank Engineering Inspection Reports, Compliance Audit Reports, Contingency Plans, etc. The Compliance Division teams with EEC’s divisions described below.

For example, Professional Engineers from the Engineering Division work hand in hand with EEC’s Compliance experts to complete SPCC Plans and associated inspections and training.

EEC’s Environmental Division routinely performs groundwater monitoring and sampling, operations and maintenance of remediation systems, and Phase I/II ESA; plans and conducts soil, soil vapor, vapor intrusion, and groundwater investigations; performs air monitoring and sampling; prepares and implements site assessment work plans, vapor intrusion investigations, remedial action plans, and closure reports for regulatory acceptance and approval; and conducts agency negotiation.

EEC’s Engineering Division provides soil and groundwater remediation design, wastewater treatment and water reuse design, stormwater management, utility design, and wastewater treatment system operation and maintenance. The Engineering Division also provides Fats, Oils, and Grease (FOG) Program Compliance and prepares Sewer System Management Plans (SSMPs).

EEC’s Stormwater Division completes onsite inspections to ensure compliance with Municipal Separate Storm Sewer System (MS4) National Pollution Discharge Elimination System (NPDES) permit. EEC assists developers and commercial/industrial facilities with the identification and implementation of best management practices to assist in meeting MS4 requirements or California’s Numeric Action Levels (NALs). When a facility has an exceedance of NALs, EEC will prepare Level 1 and 2 Elevated Response Action (ERA) evaluations and reports as required by the State’s Industrial General Permit. The Stormwater Division also prepares Stormwater Pollution Prevention Plans (SWPPPs).

The Litigation Support Division completes historical research and identifies potentially responsible parties in connection with environmental litigation cases, including a wide variety of Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) projects. In addition to historical research and PRP identification, EEC provides cost allocation and expert witness services to CERCLA projects including large Superfund groundwater cleanup projects.

EEC also provides GIS/Data Management and Aerial Drone Services, and EEC’s Construction Services Division supports the firm’s environmental and engineering projects. EEC’s GIS/Data Management group provides database design, data conversion, digitization, custom application development, mapping services, software training, remote services, and other support using ESRI’s ArcGIS platform. EEC’s construction group removes underground storage tanks, installs aboveground storage tank systems, operates and maintains soil and groundwater remediation systems, and performs general construction services, including heavy equipment operation and mechanical services.

Litigation and Compliance History:

EEC has not been involved in any litigation, mediation, or arbitration related to the performance of environmental compliance services, including SPCC Plans, within the past five (5) years. We have maintained a strong record of regulatory compliance and have no outstanding claims or disciplinary actions against our company or key personnel related to SPCC regulations or other environmental matters.

Supplemental Information:

EEC’s team of experienced professionals, including licensed engineers, environmental specialists, and regulatory experts, works together to provide comprehensive solutions that address the full spectrum of environmental compliance needs. We offer turnkey services, from initial site assessments and SPCC Plan development to training, implementation, and ongoing compliance management. 716
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 Company Personnel
The core EEC / City project team are all based in Southern California and bring years of environmental compliance and engineering experience to the program. The EEC team assembled for this project has and currently completes environmental compliance and engineering services for public and private clients in Southern California and throughout the United States. Brief resumes of key members of the EEC’s staff are provided below. Complete EEC Resumes for key project team members are provided as an attachment to thissection of this proposal. EEC and all assigned key professional staff are properly licensed to practice in California.

Lanni Duong, CSP
Senior Environmental Compliance Manager
714-667-2300
[email protected]
Lanni Duong, CSP is the Senior Environmental Compliance Manager at EEC and will act as the Project Manager for the proposed project. She will be the main point of contact for the City, DEH, and other stakeholders and will be responsible for overseeing all project activities and ensuring that all required reporting and record keeping is completed. She has more than 25 years of experience in the industry.

Lanni is a safety/risk management professional with extensive background in regulatory compliance, driving continuous improvement initiatives with crossfunctional teams, and managing operational and people performance. Lanni excels in maintaining a delicate balance between operational efficiencies and stringent regulatory compliance requirements. Lanni has extensive experience with EHS, compliance audits, and tank fueling and SPCC Plan compliance. Lanni is adept at interfacing with regulatory inspectors and reviewing safety and environmental protocols. She has successfully appealed OSHA citations, managed state environmental litigations, and responded to EPA/CERCLA Requests for Information.

Lanni received her Bachelor of Science, Applied Ecology at the University of California, Irvine and completed the Occupational Health & Safety Certificate and Project Management Programs at University of California, Irvine-Division of Continuing Education. Lanni maintains numerous certifications, including but not limited to: Hazardous Material Management/80-Hour HAZWOPER Certification, 40-Hour Incident Commander Training, International Code Council Underground Storage Tank Service Technician and In-Station Diagnostic Certification, Environmental Compliance Inspector, SCAQMD Rule 461 Daily Self Inspection, and Confined Space Entry Training.
• Storage Tanks Compliance: Oversee UST and AST program compliance, including support for equipment maintenance, repair, leak detection, and regulatory compliance and inspection readiness.
• Hazardous Materials and Waste Management: Manage hazardous materials and waste programs, ensuring compliance with California DTSC, RCRA, DOT, and local regulations, including waste profiling, storage and labeling compliance, and disposal coordination. • Permit Compliance and Environmental Reporting: Support permit filing, reporting, and renewals for SPCC, SWPPP, HMBPs, and air quality, ensuring timely submissions and accurate documentation. • Inspections and Audits: Provide inspection and audit support, preparing for internal and regulatory inspections by OSHA, EPA, and local agencies.
717
Inspection and Compliance Services-Banning Municipal Airport 2 May 7, 2025 Stan Steinbach, PE
Principal Engineer
714-667-2300
[email protected]
Stan Steinbach is a Principal Engineer with EEC and will act as the Compliance Engineer for the proposed project. He has over 30 years of experience in the industry, which included the development of SPCC Plans and acting as the certifying engineer of updated SPCC Plans at numerous airport facilities. He will provide technical expertise related to SPCC Plan and fueling system requirements. He also has expertise in design and installation of groundwater and soil treatment systems as well as industrial and municipal wastewater treatment.

Stan was the principal engineer on 100+ soil and groundwater remediation projects in California. He has conducted wastewater characterization and treatability studies, soil and groundwater site assessments, remedial testing studies, remedial action plans / feasibility studies, and remedial design, and has been responsible for operation and maintenance of 50+ soil and groundwater treatment systems.

Many of his projects have included chemical treatment, pH neutralization, contaminant adsorption, metals precipitation, ion exchange, and air stripping. In 2010, the DTSC retained Stan to design and oversee the construction of a $27 million groundwater treatment plant at the Stringfellow Acid Pits Superfund site in Riverside, California.

Stan holds a Bachelor's Degree (B.S.) in Chemical Engineering from Oregon State University. He is a California Register Professional Engineer (P.E.), has an OSHA 40-hour CFR 1910.120, and OSHA 8- Supervisor Training.

Will Shaffer, PE, QSD, QISP
Senior Project Engineer
714-667-2300
[email protected]
Will Shaffer is a Senior Project Engineer with EEC and will act as a Project Engineer for the proposed project. Will holds a Bachelor of Science from Loyola Marymount University; he is a registered professional engineer in California, Maryland, and 16 other states. He is a California Qualified Stormwater Pollution Prevention Plan (SWPPP) Developer (QSD) and a Qualified Industrial Stormwater Practitioner (QISP).

Will is a member of the American Society of Civil Engineers (ASCE), National Society of Professional Engineers (NSPE), a leading member of the Loyola Marymount University Council for Industry Partnerships and maintains an OSHA 40-Hour HAZWOPER certification.

Will has 12 years of civil design and project management experience across a vast array of disciplines, which has included the development of SPCC Plans and acting as the certifying engineer of updated SPCC Plans at numerous airport facilities. He has also specialized in underground utilities, site grading and drainage, stormwater compliance and structural BMP design, industrial wastewater pretreatment, UST/ASTs, vapor intrusion mitigation systems, and ADA design. 718
Inspection and Compliance Services-Banning Municipal Airport 3 May 7, 2025 Joseph Jenkins, QISP
Project Regulatory Specialist II
714-667-2300
[email protected]
Joseph Jenkins is a Project Regulatory Specialist II with EEC and act as the Compliance Manager for the proposed project. Joseph has 18 years of experience in the regulatory compliance field, and holds a Bachelor of Science in Business Administration from York College in Nebraska; a certificate in Environmental Management from the University of California, Irvine, Extension; a certificate as a Grade I Environmental Compliance Inspector through the California Water Environment Association; and a certificate as a Qualified Industrial Stormwater Practitioner (QISP). Joseph also maintains certification in OSHA 40-hour HAZWOPER training and in the Pipeline Assessment and Certification Program.

Joseph has conducted multiple SPCC document reviews and SPCC related inspections of industrial and commercial facility. During the reviews/inspections, Joseph reviews oil storage areas, waste storage practices, spill response and staff training practice. Joseph then updates SPCC related documents to prepare for review and approval of EEC’s Professional Engineers. Joseph is also EEC’s lead auditor for sewer system management plan (SSMP) audits. To date, Joseph has conducted internal SSMP audits for the Costa Mesa Sanitary District, City of La Habra, City of Buena Park, City of Santa Ana, and City of Anaheim. Joseph has assisted in the development of multiple stormwater programs for both industrial and municipal clients.

Joseph has performed hundreds of Environmental Health and Safety (EH&S) audits for multiple commercial and industrial clients across the United States. During the audits, Joseph evaluates the facility’s EH&S programs, identifies potential issues, and provides corrective action to the client in a manner that is easily understood and implemented. Joseph manages and schedules EEC’s inspection programs and provides training and quality control / quality assurance of EEC’s inspectors.

Baltazar Maldonado
Compliance Inspector
714-667-2300
[email protected]
Baltazar Maldonado is a Compliance Inspector with EEC and will act as the Lead Compliance Inspector for the proposed project. Baltazar holds a Bachelor of Science from California State University Long Beach; he maintains a certification in OSHA 40-hour HAZWOPER training and is a bilingual English and Spanish speaker.

Baltazar has 8 years of compliance inspection experience on industrial and commercial sites, including airports such as LAX.

Baltazar has completed SPCC Plan compliance inspections on behalf of major airlines at airports located throughout the United States. Additionally, Baltazar has conducted sewer pretreatment inspections for the City of Ontario and the City of Huntington Beach. He has also conducted thousands of Fats, Oil, and Grease (FOG) inspections at food service facilities, National Pollutant Discharge Elimination System (NPDES) stormwater inspections at industrial and commercial facilities, and Sanitary Sewer Overflow (SSO) emergency response and elevated enforcement actions. Baltazar has also worked with industrial and commercial facilities on stormwater and FOG-related Best Management Practices (BMP) evaluations to determine the proper BMPs that should be implemented and to resolve consistent compliance issues. Baltazar is EEC lead responder for 719
Inspection and Compliance Services-Banning Municipal Airport 4 May 7, 2025 SSO occurrences. During these events, Baltazar helps to determine the cause of the SSO and the necessary actions to resolve the SSO cause. Following the SSO event, Baltazar determines the necessary corrective actions to be conducted, and works with the facilities to ensure these actions are followed to prevent future SSO occurrences.

Subcontractor
Fuel Pros Inc.
14774 Central Avenue
Chino, California 91710
909-614-1379
[email protected]
www.fuelpros.net
Fuel Pros Inc. will be the Annual AQMD Compliance Testing Subcontractor for the proposed project. Fuel Pros, Inc. was founded in 1948 and has continuously served the petroleum industry for nearly seven decades. They are a licensed General Contractor in CA and AZ and also hold an A-Haz, B, and C-36 (plumbing) license. They offer a cadre of construction services including complete fueling system installation, ground up construction, raze and re-build, project management, in house electrical, plumbing, concrete/asphalt and masonry. Their clients vary and include major oil companies, large multi-site operators, government entities, commercial and industrial operators, independent station operators along with a multitude of various private users.

Fuel Pros technicians and testers are certified by most major manufacturers. They are fuel system specialists from the back room software to the nozzle and every component in between. Their wealth of experience and expertise in emerging technology have firmly established the company as an industry leader. Their group of professionals assists in every aspect of fuel system operation. They consistently offer a “value added” approach and service-oriented management style. 720
Assessment/Remediation
Wastewater/Stormwater
Litigation Support
Regulatory Compliance
Technology/GIS
Corporate Office – Tel: (714) 667-2300 | Fax: (714) 667-2310 | One City Boulevard West | Suite 1800 | Orange, CA 92868 Mid-Atlantic Office – Tel: (410) 263-2234 | Fax: (410) 266-8660 | 200 Harry S Truman Parkway | Suite 330 | Annapolis, MD 21401 eecenvironmental.com
Lanni Duong
Senior Environmental, Health, and Safety Manager
Lanni Duong is the Senior Environmental Compliance Manager at EEC, with expertise in the management, development, and audit of Environmental, Health, and Safety (EH&S) programs. With 25 years of diverse regulatory compliance experience spanning the oil & energy, biotechnology, healthcare, and manufacturing sectors, she brings a wealth of knowledge and practical expertise to every project.

Her professional career began as an Environmental Compliance Inspector for the City of Burbank Publicly Owned Treatment Works (POTW), which provided a strong foundation in regulatory compliance. She has since leveraged this experience to lead comprehensive environmental and workplace assessments and evaluations, overseeing internal and external audits across a wide range of industries. Over her career, Lanni has held various program management positions in municipalities, global corporations, Fortune 100 companies, and privately owned enterprises. She has consistently driven continuous improvement initiatives, managed cross-functional teams, and optimized both operational performance and people management.

Her areas of expertise include hazardous materials and waste management; Spill Prevention Control and Countermeasure (SPCC) preparation, compliance, inspection, and training; aboveground storage tanks (AST) and underground storage tank (UST) compliance, inspections, audits, and permitting. She is highly skilled at interfacing with regulatory inspectors and conducting detailed reviews of safety and environmental protocols. Additionally, she has successfully appealed OSHA citations, managed state environmental litigations, and responded to EPA Requests for Information.

Lanni earned her Bachelor of Science in Applied Ecology from the University of California, Irvine, and is a Certified Safety Professional (CSP). She has received Certificates in Occupational Health & Safety and Project Management at the University of California, Irvine – Division of Continuing Education.

EXPERIENCE
SPCC Plan Development, Inspection, and Training, Various Clients | California, Nevada, and Oregon • Developed and implemented facility-specific Spill Prevention, Control, and Countermeasure (SPCC) Plans in compliance with EPA regulations (40 CFR 112), including secondary containment assessments and oil storage inventory. • Conducted SPCC inspections and compliance audits, identifying deficiencies and recommending corrective actions to ensure environmental protection and regulatory alignment.
• Delivered SPCC training to facility personnel, reinforcing spill response procedures, equipment maintenance practices, and regulatory responsibilities to ensure operational readiness and compliance awareness.

Environmental Compliance Administrator, 7-Eleven, Inc. | Long Beach, CA (Acquired Speedway LLC in 2022 and Tesoro Refining & Marketing Company LLC in 2018) • Oversaw the environmental compliance program for 124 retail service stations in Southern California. Served as the environmental compliance program advisor for service stations in Southern California. • Developed and maintained technical training documents and served as lead trainer for the Pacific Division Environmental Compliance Team. Revised and secured recertification of the SCAQMD Rule 461 Training Program. • Managed the Permit Management System to track 7000+ compliance operational permits. Coordinated with Construction 721
Lanni Duong
2 E N V I R O N M E N T A L
ASSESSMENT/REMEDIATION | WASTEWATER/STORMWATER | LITIGATION SUPPORT REGULATORY COMPLIANCE | TECHNOLOGY/GIS
Project Managers and Regulators to secure new permits to operate at new facilities. • Led administrative and operational projects for the Pacific Division Environmental Group. Developed and implemented standardized operating procedures and programs for Underground Storage Tank System Leak Detection Monitoring Program. Advised in the planning and coordination of construction, replacement, and repair of underground storage tank systems with Construction, Maintenance, and Real Estate Advisors. • Liaised with Underground Storage Tank Agencies, Air Compliance Inspectors, Department of Weights & Measures Inspectors, and Plan Check Departments to comply with permitting and construction requirements. Reviewed and approved Project close-out packages.
• Served as a technical expert with local permitting processes required for regulated asset and equipment repairs, upgrades, and improvements to meet local, state, and federal environmental compliance requirements. • Interacted with Environmental Agencies regularly in the field to maintain relationships and stay abreast of evolving local policy changes and enforcement activities.
• Prepared RFP, SOW, contractor selection criteria, and reviewed Service Agreements with Procurement Advisors. • Performed routine compliance site audits. Coordinated corrective actions with Operations to eliminate non-compliance actions and notices.

Logistics Environmental Compliance Team Lead, BP West Coast Products LLC | Carson, CA • Led a team of eight Environmental Compliance Professionals accountable for a comprehensive environmental compliance program for the logistics assets and organization that consisted of a network of pipelines, 11 marine and marketing terminals, and 145 retail gasoline dispensing facilities. • Led notice of violation (NOV) reduction initiative. Consolidated and streamlined the reporting of NOV/compliance notices across the West Coast Strategic Planning Unit.
• Served as the subject matter expert for terminals, pipelines, and retail environmental compliance matters to ensure a smooth and compliant program pre- and post-divestment of the Logistic assets to Tesoro Refining & Marketing Company LLC.

UST Compliance & Office HSSE Manager, BP West Coast Products LLC | La Palma, CA • Managed the health, safety, environmental compliance and security programs at the regional program office and 520+ company-owned retail service stations.
• Responsible for managing the environmental compliance of underground storage tanks at retail sites to ensure compliance with Federal, State, and local regulatory requirements. Collaborated with Environmental Compliance, Asset Management, Sales & Marketing, Business Support, and Contractors to improve service level agreements and periodic tank performance testing.
• Coordinated annual Regional Contractor HSSE Meetings and Vendor Performance Reviews to share industry best practices. • Led the health and safety initiatives for the regional program office and contract vendors to prevent workplace injuries and accidents to comply with Cal/OSHA regulations and organizational health and safety standards. Implemented organizational processes to drive operational excellence.

Environmental Health & Safety Manager, Maxum Petroleum | Rancho Dominguez, CA • Directed and oversaw security, environmental, health and safety regulatory compliance programs for 13 transportation/ bulk petroleum storage and warehouses and two marine terminals in California; supported marine office and terminal in Washington, and eight (8) North Carolina and South Carolina transportation and bulk storage terminals. Focused programs included Cal/OSHA, EPA (land and marine safety with USCG, Department of Fish and Game and California State Lands Commission-OPA 90), Fire and Life Safety, DOT (CHP and PHMSA), and Department of Homeland Security. • Managed reported injury, automobile, and general liability claims. • Developed new hire safety training programs, security programs, post-accident/re-training, and HAZWOPER. Enforced company and regional safety policies.
• Safety Incentive Program Administrator: Revamped individual-based program to a performance team-based performance program.
• Maintained 150+ DOT regulated commercial class driver qualification files and conducted drug and alcohol random drug testing programs for 13 California terminals.
• Maintained 25 marine oil spill prevention manuals, operations manuals, and facility security manuals to comply with USCG/Homeland Security. California State Lands Commission and Department of Fish and Game regulatory requirements.

Ensure continuous program compliance with USCG and California State Lands Commissions for unannounced inspections. 722
Assessment/Remediation
Wastewater/Stormwater
Litigation Support
Regulatory Compliance
Technology/GIS
Corporate Office – Tel: (714) 667-2300 | Fax: (714) 667-2310 | One City Boulevard West | Suite 1800 | Orange, CA 92868 Mid-Atlantic Office – Tel: (410) 263-2234 | Fax: (410) 266-8660 | 200 Harry S Truman Parkway | Suite 330 | Annapolis, MD 21401 eecenvironmental.com

STAN STEINBACH, PE
Principal Engineer
Stan is a Principal Engineer at EEC and a registered professional engineer in California. His expertise lies in the design, installation and operation of municipal and industrial wastewater treatment systems, water treatment systems, and groundwater and soil remedial treatment systems. He has conducted wastewater characterization and treatability studies, soil and groundwater site assessments, remedial testing studies, remedial action plans/feasibility studies, and remedial design. He has been responsible for the operation and maintenance of more than 50 soil and groundwater treatment systems.

Stan holds a Bachelor of Science in Chemical Engineering from Oregon State University. His professional registrations and certifications include California Professional Civil Engineer No. C60255, and OSHA 40-Hour CFR 1910.120 certification as well as 8-hour supervisor training. He is a member of the American Institute of Chemical Engineers, American Society of Civil Engineers, and Water Environmental Federation.

EXPERIENCE
Principal Engineer, Owner’s PFAS Representative and On-Call Design Engineer | City of Santa Ana, CA • Providing ongoing expert consulting services related to groundwater PFAS contamination in the Orange County groundwater aquifer including monthly PFAS update meetings with City engineers, operators, and water quality specialists. • Design of wellhead PFAS treatment systems up to 3,000 gpm. • Peer review of PFAS treatment system (wellhead and centralized) PDRs, design scopes, construction documents, and specs. • Led field training sessions for City engineers, operators, maintenance and water quality staff. • PFAS treatment system construction administration, inspections, and startup and commissioning support. • Principal oversight and technical lead on all process and treatment scopes of work.

Principal Engineer, Wastewater Treatment System Design Engineer, Aramark | Terlingua, TX • Meeting with and reviewing Texas Commission of Environmental Quality (TCEQ) regulations to ensure that all designs are consistent with regulatory requirements. Permitting designs, as appropriate. • Drafting and submittal of wastewater treatment system TCEQ permitting documentation for a private wastewater treatment system - 80,000 gallon per day – in a remote area of Texas. • Design replacement of a private wastewater treatment plant. • Design replacement of existing collection system including lift station and force main. • Design replacement of existing water distribution system. • Providing operational support for the existing wastewater treatment system. • Providing construction management support for implementation of the design upgrades.

Process Engineer, Stringfellow Hazardous Waste Superfund Site | Riverside, CA • Plant process engineer for the operation and maintenance of the treatment systems for the Superfund site. • The treatment systems consist of 73 groundwater extraction wells, an on-site treatment plant, secondary treatment plant, and a community wellhead treatment system for two community wells. • Technologies used are lime precipitation treatment for removal of the metals, granular activated carbon treatment for the removal of volatile organic compounds, and ion exchange (perchlorate specific, anionic resin) treatment for removal of perchlorate.
• Provide technical support to the California Department of Toxic Substances Control to ensure that the treatment systems 723

STAN STEINBACH, PE
2 E N V I R O N M E N T A L
ASSESSMENT/REMEDIATION | WASTEWATER/STORMWATER | LITIGATION SUPPORT REGULATORY COMPLIANCE | TECHNOLOGY/GIS
are achieving performance objectives.
• Evaluated GAC removal efficiencies for contaminants of concern for treating the impacted groundwater. • Developed scopes of work, associated RFP documentation, proposal review and recommendation, and construction oversight for multiple upgrades for the treatment systems. • Conducted numerous studies, provided detailed design input, evaluation, and commissioning oversight for the new treatment system ($35,000,000) at the Superfund Site.

Principal Engineer, Wastewater Treatment Plant Design Engineer, Confidential Client| Jamul, CA • Conducted feasibility study that identified projected future wastewater, water, and reuse water flows based on data analysis of historical flows and the projected future requirements for expansions at the site. • Conducted feasibility study that evaluated various design options for the Wastewater Treatment Plant (WWTP) to treat all the current and future sewerage wastewater flows at the site and to maximize the use of treated water that can be used as recycled water.
• Designed upgrade of existing WWTP from an average daily flow of 68,000 gallons per day to an average daily flow of 150,000 gallons per day to meet Title 22 Recycled Water and NPDES discharge requirements. • Design included:
• New Lift Station Tankage and Pumping System;
• New Biological (Aerobic/Anoxic) Treatment System, Clarification (MBR) System, and Extended Aeration Activated Sludge System;
• New TDS removal (Reverse Osmosis) Systems, Disinfection (Ultraviolet light [UV]) Systems, and Disinfection (Sodium Hypochlorite Dosing) System; and
• Detailed design drawings, equipment specifications, and control strategies for operating the system were developed as part of the design.

Project Manager, Remedial Design and Remedial System Installations | Various Sites, CA • Conducted the design and installation of remedial systems (including vapor extraction systems, dual‐phase extraction systems, pump‐and‐treat groundwater systems, air‐sparge systems, and bioventing systems) at various sites. • The contaminants of concern included trichloroethylene (TCE), perchloroethylene (PCE), perchlorate, benzene, methyltertiary‐butyl‐ether (MTBE), benzene, and metals. • Activities included developing conceptual and detailed design drawings, coordinating with agencies to obtain the required permits(e.g., NPDES, RWQCB, AQMD) and approvals, coordinating the oversight of construction activities, conducting post‐ construction inspections, and overseeing remedial startup activities. • Throughout these activities, the client’s approval was obtained at key steps of the process, and the client was informed of the ongoing status of the design and installation activities. • A few of the major clients served include confidential Aerospace Clients, ExxonMobil, Unocal, Tosco, Texaco, Aramark, and Regency.

Project Manager, Remedial Treatment Systems Operation and Maintenance | Various Sites, CA • Coordinated the operation and maintenance activities for more than 50 remedial treatment systems in California. • The systems operated include soil vapor extraction systems, dual‐phase extraction systems, pump‐and‐treat groundwater systems, air‐sparge systems, and bioventing systems.
• Contaminants of concern included Chlorinated Solvents (e.g., PCE, TCE, etc.), Benzene, Toluene, Ethylbenzene and Xylenes (BTEX), and MTBE.
• Oversight activities included scheduling weekly inspections and maintenance activities, coordinating the remedial system sampling activities pursuant to the regulatory permits (e.g., NPDES, RWQCB, AQMD) directing the operation of the systems to ensure optimal performance and remedial effectiveness, and coordinating the preparation and review of the remedial operation reports for the various sites.
• Reviewed the site’s remedial status and proposed strategy for operation with the project manager(s) and client(s). • Recommended actions minimized the operational costs and maximized the remedial treatment system’s effectiveness. • A few of the major clients served include confidential Aerospace Clients, Aramark, ExxonMobil, Tosco, Unocal, and Texaco.

Project Engineer, Industrial Wastewater Treatment Plant Design, Confidential Client (Oil Refinery) | Mainland China • Project engineer for a 2.5-million-gallon-per-day industrial wastewater treatment project in China. 724

STAN STEINBACH, PE
3 E N V I R O N M E N T A L
ASSESSMENT/REMEDIATION | WASTEWATER/STORMWATER | LITIGATION SUPPORT REGULATORY COMPLIANCE | TECHNOLOGY/GIS
• Existing treatment system needed upgrading to meet the new ocean discharge standards. • Scope of project entailed process design, review of the detailed design, construction oversight, and system startup. • Wastewater treatment system upgrade addressed chemical treatment, biological treatment, and sludge (oily and activated) conditioning and disposal processes.

Wastewater Treatment Plant Energy Optimization Evaluation, Department of Defense, U.S. Marine Corps | Okinawa, Japan
• Evaluated options for energy optimization at wastewater treatment plants (WWTPs) at three U.S. Marine Corps facilities in Okinawa, Japan.
• Coordinated with U.S. Marine Corps environmental staff and treatment plant operators (native Okinawans) to review the various treatment operations and to discuss and review potential energy-saving concepts/techniques. • Identified significant energy savings by better control and operation of aeration blowers, installation of more efficient electrical pumps and installation of VFDs on various operational pumps, and more efficient operation and control of the activated sludge process and the sludge thickening and disposal processes. • The Marine Corps bases implemented many of EEC’s recommendations and requested further training of their operational staff in energy-saving techniques in the operation of the WWTPs.

Industrial Wastewater Operator Training, Orange County Sanitation District | Fountain Valley, CA • Co-contributor of EEC’s Industrial Wastewater Treatment Operator Training Course sponsored by and conducted at the Orange County Sanitation District.
• Courses are designed to instruct industrial wastewater treatment system operators in the metal finishing and circuit board manufacturing industries to achieve and maintain compliance with the district’s discharge regulations. • Courses include treatment system design, equipment operation, chemical treatment, pH neutralization, carbon adsorption, metals precipitation, and ion exchange.

Industrial Wastewater Treatment System Design Engineer, Industrial Wastewater Treatment Plants | National • Design engineer for multiple industrial wastewater treatment systems. • Performed feasibility studies.
• Designed complete treatment systems and supervised system installations. • Devised chemical processes for removal of oil, grease, and heavy metals. • Provided technical service, trained wastewater treatment system operators, and ensured compliance with local agency discharge regulations.
725
Assessment/Remediation
Wastewater/Stormwater
Litigation Support
Regulatory Compliance
Technology/GIS
Corporate Office – Tel: (714) 667-2300 | Fax: (714) 667-2310 | One City Boulevard West | Suite 1800 | Orange, CA 92868 Mid-Atlantic Office – Tel: (410) 263-2234 | Fax: (410) 266-8660 | 200 Harry S Truman Parkway | Suite 330 | Annapolis, MD 21401 eecenvironmental.com

WILL SHAFFER, PE, QSD, QISP
Project Engineer II
Will Shaffer brings a common-sense approach to complicated engineering problems. He has extensive civil design and project management experience across a vast array of disciplines including underground utilities, site grading and drainage, stormwater compliance and structural BMP design, industrial wastewater pretreatment, UST/ASTs, vapor intrusion mitigation systems, and ADA design.

By supplementing his engineering expertise with his comprehensive knowledge of surveying and construction management, he is able to manage projects from conception, through design and permitting, to completion of construction. Will focuses on the client first, driving each phase of a project to meet the client’s specific needs. This customer service approach creates a partnership mentality that makes EEC the go-to choice for private and public clients alike.

Will holds a Bachelor of Science in Civil Engineering from Loyola Marymount University. He is a registered professional engineer in CA, MD, and 16 other states. He is a California Qualified SWPPP Developer (QSD) and a Qualified Industrial Stormwater Practitioner (QISP). Will is a member of the American Society of Civil Engineers (ASCE), National Society of Professional Engineers (NSPE), a leading member of the Loyola Marymount University Council for Industry Partnerships, and maintains an OSHA 40-Hour HAZWOPER certification.

EXPERIENCE
Design-Build UST Removal and AST Install, Torrance Municipal Airport | City of Torrance | Torrance, CA • Managed design-build contract for the Torrance Municipal Airport (Zamperini Field). • Removal of 2 USTs (10,000 gal each) with site closure. • Installation of one 15,000 AST (diesel/gasoline split), delivery system, leak detection, and dispenser.

Design-Build UST Removal and AST Install (Lube & Waste Oil) Systems | City of Torrance | Torrance, CA • Managed design-build contract for the City of Torrance Fleet and Transit Facilities while maintaining site operations. • Removal of 16 USTs (550 gal – 20,000 gal) with site closure. • Installation of 13 ASTs (250 gal – 3,000 gal), delivery systems, leak detection, and hose reels (50+).

Spill Prevention, Control, and Countermeasure (SPCC) Plan Updates | United Airlines | Nationwide • Developed site-specific SPCC plans (including LAX) for multiple United Airlines facilities in compliance with 40 CFR 112 to reflect current facility operations and address changes in oil management requirements by state agencies and airport authorities.
• Engineer in responsible charge for site investigations, data collection, mapping, and report development. Certifying engineer for updated SPCC plans.

Wastewater Pretreatment Design-Build | Aerospace Company | Long Beach Airport, CA • Managed a 7,000-gallon batch treatment design-build project to upgrade the wastewater pretreatment system for an industrial facility.
• Scope of work included secondary containment upgrades and CUPA tank inspections. • Completed design and permitting for all system components including site development, utilities, piping, pumping, controls, electrical, and structural.
• Managed construction of new system including tank/equipment procurement, demolition, and equipment installation. • Performed and refined system operations for 18+ months. 726

WILL SHAFFER, PE, QSD, QISP
2 E N V I R O N M E N T A L
ASSESSMENT/REMEDIATION | WASTEWATER/STORMWATER | LITIGATION SUPPORT REGULATORY COMPLIANCE | TECHNOLOGY/GIS
Owner’s PFAS Representative and On-Call PFAS Design Engineer | City of Santa Ana | Santa Ana, CA • Providing ongoing expert consulting services related to groundwater PFAS contamination in the Orange County groundwater aquifer.
• On-call design engineer for wellhead and centralized PFAS treatment systems. • Peer review of PFAS treatment system (wellhead and centralized) Preliminary Design Reports (PDRs), design scopes of work, construction documents, and specifications.
• Training seminars for City staff including certified operators. • Distribution system planning before, during, and after treatment system buildout.

Owner’s Representative, 2-Acre Rental Facility Redevelopment | United Rentals | San Bernardino, CA • Peer review of civil construction documents for accuracy and constructability with specific focus on stormwater detention and infiltration gallery.
• Construction management services including contractor management and coordination, on-site representation during construction, and facilitate RFI response.

Skate Park Grading and Drainage Design | Spohn Ranch Skate Parks | Los Angeles, CA • Grading and drainage and stormwater LID/BMP design for multiple skate parks. • Design and construction administration of cost-effective stormwater management systems. • Design includes hydrologic and hydraulic models with Hydrology & Hydraulic (H&H) calculations package for submittal.

As-Needed Engineering | City of Anaheim Public Works Department | Anaheim, CA • Providing as-needed engineering support for multiple Public Works programs and projects. • Services include drainage design review, NPDES and WDR permit compliance, sewer master planning review, FOG program development, and drainage design review.

Water, Wastewater, Recycled Water, and Stormwater Master Planning for a 400+ Acre Property Owner | Southern CA • Delivering master planning and conservation support for water, wastewater, recycled water, and stormwater systems. • Developed a comprehensive wastewater treatment alternatives analysis for a 400+ acre property owner generating 150k+ gpd of wastewater and utilizing Title 22 treated effluent for recycled water irrigation. • Included planning-level cost estimates over a 20-year project lifespan for wastewater alternatives comparison and selection. • Provided consulting services for negotiations with multiple local agencies. • Projected future wastewater demands based on planned developments and ongoing projects.

Industrial Wastewater PFAS Characterization Sampling | Confidential Industrial Client | Nationwide • Industrial wastewater sampling at three facilities in different states throughout the nation to characterize PFAS and other water quality issues to inform the design of treatment systems. • Targeted samples at various locations within the waste stream to identify opportunities for source reduction and blending to reduce PFAS treatment costs.

Wastewater Pretreatment Compliance | Metal Finisher | Torrance, CA • Performed assessment of existing wastewater treatment system and designed, permitted, and installed upgraded system components including flow equalization, improved pH adjustment, improved metal precipitation, and flow monitoring. • Performed system start-up services and trained facility operators on new system. Performed weekly O&M during start-up and transitional phases.

Methane Mitigation System Inspection and Commissioning | LAUSD | Los Angeles, CA • Performing methane deputy inspection services for a multi-phased Comprehensive Modernization project at the Roosevelt High School.
• Serving as the Gas Mitigation Commissioning Project Manager and overseeing the Methane Inspector and Engineer. • Authoring required plans including CQA, T&I, Baseline Testing and Startup, and O&M plan for DTSC approval. 727
Assessment/Remediation
Wastewater/Stormwater
Litigation Support
Regulatory Compliance
Technology/GIS
Corporate Office – Tel: (714) 667-2300 | Fax: (714) 667-2310 | One City Boulevard West | Suite 1800 | Orange, CA 92868 Mid-Atlantic Office – Tel: (410) 263-2234 | Fax: (410) 266-8660 | 200 Harry S Truman Parkway | Suite 330 | Annapolis, MD 21401 eecenvironmental.com

JOSEPH JENKINS, QISP
Project Regulatory Specialist II
Joseph has performed hundreds of Environmental Health and Safety (EH&S) audits for multiple commercial and industrial clients across the United States. During the audits, Joseph evaluates the facility’s EH&S programs, identifies potential issues, and provides corrective action to the client in a manner that is easily understood and implemented.

Joseph manages and schedules EEC’s inspection programs and provides training and quality control / quality assurance of EEC’s inspectors.

Joseph is also EEC’s lead auditor for sewer system management plan (SSMP) audits. To date, Joseph has conducted internal SSMP audits for the Costa Mesa Sanitary District, City of La Habra, City of Buena Park, City of Santa Ana, and City of Anaheim. Joseph has assisted in the development of multiple stormwater programs for both industrial and municipal clients.

Joseph holds a Bachelor of Science in Business Administration from York College in Nebraska; a certificate in Environmental Management from the University of California, Irvine, Extension; a certificate as a Grade I Environmental Compliance Inspector through the California Water Environment Association; and a certificate as a QISP. Joseph also maintains certification in OSHA 40-hour HAZWOPER training and in the Pipeline Assessment and Certification Program.

EXPERIENCE
EH&S Program Auditor, Multiple Commercial and Industrial Clients | Nationwide • Conducting audits of EH&S programs for multiple types of commercial and industrial businesses. • Reporting on findings and implementation of corrective actions. • EH&S program and document development.
• Conducting EH&S training for staff.
• Managing EEC inspectors and EH&S inspection programs.

FOG Inspector, FOG Inspection Programs for Multiple Cities and Sewer Agencies | Statewide, CA • Serves as the lead FOG inspector in support of multiple cities and sewer districts including IRWD. • Completed thousands of FSE inspections in support of agencies’ FOG control programs and has achieved a high rate of compliance for those FSEs.

Project Manager, Pretreatment Program Development and Implementation for Various Municipalities | Nationwide • Manage pretreatment program assessment, development, and implementation of key program elements, including legal authority review/development, industrial waste survey screening and local limits development/implementation. • Prepare program manuals and procedures/guidelines for industrial user inspection, sampling, and enforcement activities.

Project Manager, Pretreatment Program Compliance Support, Confidential Pharmaceutical Company • Assisted in the permit renewals for multiple pharmaceutical buildings. • Identified and evaluated waste streams for constituents of concern. • Implemented ongoing industrial pretreatment compliance program. 728

JOSEPH JENKINS, QISP
2 E N V I R O N M E N T A L
ASSESSMENT/REMEDIATION | WASTEWATER/STORMWATER | LITIGATION SUPPORT REGULATORY COMPLIANCE | TECHNOLOGY/GIS
EXPERIENCE (CON.)
Lead Trainer, SSO Prevention and Response Program, City of San Gabriel | San Gabriel, CA • Trained City of San Gabriel staff on prevention of and response to SSO. • Training consisted of a classroom instruction session that reviewed State and City monitoring and reporting requirements, proper response procedures, and proper volume calculation methods. Training also entailed field training sessions during which varying volumes of water were spilled and trainees practices containing the spills, estimating the volume of spilled water, and completing reporting forms.

Compliance Inspector, NPDES Inspections and MS4 Program Management, Various California Cities, Southern California
• Performed hundreds of NPDES inspections for the City of Anaheim, City of Santa Ana, City of El Segundo, and City of Huntington Beach.
• Currently manages the monthly NPDES inspection program and trains inspectors on the proper inspection procedures.

Lead Auditor, SSMP Internal Audits for Various Municipalities | Nationwide • Assists EEC’s project managers to provide support for conducting internal audits of SSMPs. • Reviews SSMP-related documentation and conducts interviews of municipality staff members. • Completes technical report documents specifying important findings and recommendations.

Project Manager/Lead Inspector, Industrial Pretreatment Program, City of El Segundo | El Segundo, CA • Developed and implemented industrial pretreatment program for the City • Permitted categorical industrial users
• Performed Industrial Waste Surveys
• Conducted inspections for industrial users
• Conducted and managed enforcement actions
• Completed Annual Pretreatment Program Reports for submittal to local Regional Water Quality Control Board Project Manager, Pretreatment Program Local Limits Development, City and County of Honolulu | Honolulu, HI • Managed technical evaluation and development of local limits • Identified and evaluated pollutants of concern including PFAS. • Developed sampling plan.
• Conducted sampling for WWTP, industrial facilities, waste haulers, and residential communities. • Evaluated sampling results, calculated MAHL and MAIL for applicable constituents, and established local limits. 729
Assessment/Remediation
Wastewater/Stormwater
Litigation Support
Regulatory Compliance
Technology/GIS
Corporate Office – Tel: (714) 667-2300 | Fax: (714) 667-2310 | One City Boulevard West | Suite 1800 | Orange, CA 92868 Mid-Atlantic Office – Tel: (410) 263-2234 | Fax: (410) 266-8660 | 200 Harry S Truman Parkway | Suite 330 | Annapolis, MD 21401 eecenvironmental.com

BALTAZAR MALDONADO
Compliance Inspector
Baltazar Maldonado, a graduate from California State University Long Beach, has conducted thousands of FOG inspections at food service facilities, industrial pretreatment inspections, NPDES stormwater inspections at industrial and commercial facilities, and SSO emergency response and elevated enforcement actions. Baltazar has also worked with industrial and commercial facilities on stormwater and FOG related BMP evaluations to determine the proper BMPs that should be implemented and to resolve consistent compliance issues. Baltazar is EEC lead responder for SSO occurrences. During these events, Baltazar helps to determine the cause of the SSO and the necessary actions to resolve the SSO cause. Following the SSO event, Baltazar determines the necessary corrective actions to be conducted, and works with the facilities to ensure these actions are followed to prevent future SSO occurrences.

Baltazar holds a Bachelor of Science from California State University Long Beach; he maintains a certification in OSHA 40-hour HAZWOPER training and is a bilingual English and Spanish speaker.

EXPERIENCE
Compliance Inspector, Industrial Pretreatment Program| El Segundo, CA • Permitted industrial users
• Performed Industrial Waste Surveys
• Conducted inspections for industrial users
• Conducted and managed enforcement actions
FOG Inspector, FOG Inspection Programs for Multiple Cities and Sewer Agencies | Statewide, CA • Serves as the lead FOG inspector in support of multiple cities and sewer districts including CMSD and IRWD. • Completed thousands of FSE inspections in support of agencies’ FOG control programs and has achieved a high rate of compliance for those FSEs.

Compliance Inspector, NPDES Inspections and MS4 Program Management, City of El Segundo | Las Angeles County, CA
• Performed hundreds of NPDES inspections for the City of El Segundo • Currently manages the monthly NPDES inspection program and trains inspectors on the proper inspection procedures.

SSO Response for Various Municipalities | Nationwide
• Assists in the response and follow-up activities related to SSO events on behalf of agencies. During the SSO response, the responsible party, cause of the SSO, and follow-up actions are identified. Baltazar then develops enforcement letters and works with the responsible party to ensure future SSOs do not occur. 730
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 Disclosure
EEC does not currently and has not previously had business or personal relationships with any current Banning elected official, appointed official, City employee, or family member of any current Banning elected official, appointed official, or City employee. 731
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 “EEC has played a significant role in helping our City
protect the environment and our citizens.”
Jake Wagner, City Manager
City of Stanton, California
Experience and References
EEC’s commitment to Environment, Health & Safety (EHS) keeps our clients in compliance with Federal, State, and local regulatory requirements and best management practices (BMPs). From the scoping phase to the report of recommendations, our priority is to be protective of our clients’ interests and safety.

With 30 years of experience, EEC keeps up-to-date
with new and proposed changes to regulations
through an extensive internal and external
network of subject matter experts, allowing EEC to
pass predictive and current changes and nuances
of meeting Federal, State, and local requirements.

EEC has extensive experience in providing environmental consulting services to cities throughout southern California. EEC provides or has provided environmental consulting services to Anaheim, Bell, Brea, Buena Park, Fullerton, Garden Grove, Huntington Beach, La Habra, La Palma, Newport Beach, Orange, Perris, Redondo Beach, Santa Ana, Torrance, and Stanton. Additionally, EEC has provided environmental consulting services to airlines and regional and international airports. Services provided to cities and airports align directly with the scope of services presented in the City of Banning’s RFP-25- 100. Based on EEC's expertise, several cities have revised their approach to environmental compliance, incorporating BMPs we developed. A Fire Protection Analyst with the City of Huntington Beach’s Fire Department provided positive feedback, noting that our “team’s review was spot-on.” Our professional track record in serving public and private sector clients, including airports, airlines, and municipalities, is extensive.

Our institutional clients include the Los Angeles, Long Beach, and Corona-Norco Unified School Districts, Los Angeles Department of Water and Power, West Basin Municipal Water District, Costa Mesa Sanitation District, Irvine Ranch Water District, Orange County Sanitation District, and the United States Navy.

Much of our public sector and airport-related environmental compliance work is directly related to Spill Prevention, Control, and Countermeasure (SPCC) Plan development, compliance, training, and inspections.

EEC’s proposed Project Manager, Lanni Duong, brings over 25 years of experience in environmental compliance and storage tank management across a variety of industries, from bulk storage to fueling systems. Ms. Duong and the broader EEC project team offer direct experience working with regulatory agencies including the U.S. Environmental Protection Agency (USEPA), State Water Resources Control Board (SWRCB), Regional Air Quality Districts, California Department of Toxic Substances Control (DTSC), and various Certified Unified Program Agencies (CUPAs), including county environmental health departments, city agencies, and local fire departments.

EEC performs SPCC-related work in accordance with 40 CFR Part 112 and various agency regulations and industry standards, including, but not limited to, the Clean Water Act (CWA), SCAQMD Rule 461, California Fire Code, California Aboveground Petroleum Storage Act (APSA), National Fire Protection Association (NFPA), Steel Tank Institute (STI) Standard SP-001, and additional related CFR 40 rules such as 40 CFR Parts 109, 110, 280, 302, and 355. EEC prepares SPCC Plans to detail operating procedures for facilities to reduce the possibility of oil discharges, specify control measures to prevent discharges from entering navigable waters, outline countermeasures to mitigate discharge effects, and provide guidelines for notifying appropriate agencies in the event of a discharge. 732
Inspection and Compliance Services-Banning Municipal Airport 2 May 7, 2025 “EEC brings unique technical expertise to our projects and provides practical solutions for our agency, our satellite agencies, and our industries.”
Mahin Talebi,
Orange County Sanitation District
EEC will perform SPCC-related work in accordance with the City of Banning's requirements, including Public Works Standards, and has extensive SPCC compliance and inspection experience for both public and private sector clients. As demonstrated in the Company Personnel section, the EEC project team presented in this proposal have 10 to more than 30 years of direct experience with the USEPA, California Air Resources Board, South Coast Air Quality Management District (SCAQMD), Riverside County Department of Environmental Health, and other relevant agencies such as the State of California Department of Toxic Substances Control (DTSC), Regional Water Quality Control Boards (RWQCBs), local fire departments, and other county and city agencies.

EEC performs SPCC related work in accordance with 40 CFR Part 112 and the following agency regulations and industry standards including, but not limited to, the Clean Water Act (CWA), SCAQMD Rule 461, California Fire Code, California Aboveground Petroleum Storage Act (APSA), National Fire Protection Association (NFPA), Steel Tank Institute (STI) Standard SP-001, and additional related CFR 40 rules such as 40 CFR Part 109, and 40 CFR Part 110, 40 CFR Part 280, 40 CFR Part 302, 40 CFR Part 355.

EEC prepares SPCC Plans to detail operating procedures at facilities to reduce the possibility of oil discharges; to specify control measures to be followed to reduce the possibility of a discharge from entering navigable waters, to outline countermeasures to contain, clean-up, and mitigate the effects of a discharge that may impact navigable water; and to provide a guideline for notifying local, state, and federal agencies in the event of a discharge. EEC will perform SPCC related work in accordance with the City of Banning requirements, including Public Works Standards. As outlined in the following project summaries, EEC has extensive SPPC compliance and inspection experience for public and private sector clients. They are the cornerstone of EEC’s compliance services. Five relevant project descriptions and four references are provided in the sections below (one of the projects is confidential and references will be provided upon request).

Project Descriptions
Spill Prevention, Control, and Countermeasure Plan – United Airlines Nationwide Airports│ United States
Client Contact:

Ms. Erika Frederick
Senior Manager – Environmental Operations, West
United Airlines, Inc.
(312) 898-1711
[email protected]
Contract Value: $250,000
Project Summary (2019 - current)
EEC was retained by United Airlines to provide environmental compliance services, including the following:
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Inspection and Compliance Services-Banning Municipal Airport 3 May 7, 2025 • Preparation of SPCC Plans for Denver International Airport, Willam P. Hobby International Airport, Washington Dulles International Airport, George Bush Intercontinental Airport, Los Angeles International Airport, and Orlando International Airport. • Preparation of Integrated Contingency Plans (ICPs) for Dallas Fort Worth International Airport, Portland International Airport, and Seattle-Tacoma International Airport. • Preparation of Product and Waste Inventory (INV) Reports for Hartsfield-Jackson Atlanta International Airport, Austin-Bergstrom International Airport; Ronald Reagan Washington National Airport (DCA), Piedmont Triad International Airport, John F. Kennedy International Airport, Minneapolis-Saint Paul International Airport, Louis Armstrong New Orleans International Airport, Portland International Airport, Phoenix Sky Harbor International Airport, Palm Springs Airport, T. F. Green International Airport, San Diego International Airport, San Antonio Airport, Santa Barbara Airport, San Jose International Airport, Sacramento International Airport, John Wayne Orange County Airport, and Tampa International Airport.

In addition, EEC prepared associated Health and Safety Plans (HASPs) for each airport site, coordinated with the United Airlines Environmental Coordinator prior to each site visit, prepared a checklist for each type of visit (SPCC, ICP, and INV), review associated maps and similar reports, determine level of personal protective equipment (PPE) required, photographic documentation, prepare figures, complete associated checklists and spreadsheets, perform quality control/quality assurance on deliverables, address client edits, and issued final reports.

Spill Prevention, Control, and Countermeasure Plan – East Valley Water District Plant 134 and Sterling Natural Resource Center │ Highland, California Client Contact:

Mr. Mike Hurst
Water and Wastewater Compliance Supervisor
East Valley Water District
(909) 806-4222
[email protected]
Contract Value: $75,000
Project Summary (April 2025)
On behalf of the East Valley Water District, EEC updated the facility’s existing SPCC Plans in accordance with 40 CFR 112, San Bernardino County Fire Department Hazardous Materials Division Requirements, STI SP001, and other applicable regulations. The East Valley Water District Sterling Natural Resource Center facility includes a 2,100-gallon diesel fuel AST, several pad-mounted transformers which contain mineral oil, and portable containers. The East Valley Water District Plant 134 facility includes a 2,500- gallon diesel fuel AST, several pad-mounted transformers which contain mineral oil, and a portable container. EEC also prepared SPCC training documents for both facilities and provided training to the appropriate staff. Additionally, EEC provided SSO enforcement support to address a violation related to untreated sewage discharge resulting from a power loss. EEC conducted an evaluation of the effects of the SSO and guided the East Valley Water District to complete the steps necessary to return to compliance.
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Inspection and Compliance Services-Banning Municipal Airport 4 May 7, 2025 Design/Build UST Removal and AST Install – City of Torrance Torrance Municipal Airport│ Torrance, California
Client Contact:

Ms. Nina Schroeder
Sr. Business Manager
General Services Department
(626) 781-7151
[email protected]
Contract Value: $665,000
Project Summary (February 2021 – January 2023)
EEC was retained by the City of Torrance to provide design/build services for the removal of existing USTs and in the installation of a split gasoline/diesel AST and dispenser at the Torrance Municipal Airport.

These services included the removal of two 10,000 gallon USTs. EEC obtained site closure with minimal over-excavation required.

EEC designed and installed a 15,000 gallon split gasoline/diesel (12,000/3,000) AST. The tank was outfitted with the appropriate vents, level gauges, overfill alarms, leak detection, secondary containment, crash protection, and placards. Aboveground and underground piping was installed along with a dispenser.

All airport operations were maintained for the duration of the work. FAA regulations were strictly followed and any potential impacts to airport operations were closely coordinated with airport staff.

System testing and training were completed on-site with City personnel to ensure a high-quality system was delivered to the client. Training documentation, videos, and manuals were provided for future training of facility personnel.

Spill Prevention, Control, and Countermeasure Plan – Confidential Client Resorts and Marinas at Lake Tahoe│ Nevada
Client Contact:

Confidential; Reference Available Upon Request
Project Summary (January 2022-April 2025)
EEC currently provides environmental compliance services to a confidential nationwide client, including and preparation and updates to the SPCC Plan for a Marina located on Lake Tahoe, in accordance with 40 CFR 112, Nevada Department of Environmental Protection (DEP) AST Regulations, STI SP001, and other applicable regulations. The facility includes a total aboveground oil storage capacity of 15,084 gallons including one 12,000-gallon AST that contains 9,000 gallons of diesel fuel and 3,000 gallons of unleaded gasoline. EEC added a section to the SPCC Plan to address marina fueling procedures due to the facility’s use for refueling operations at Lake Tahoe. EEC conducted training for all applicable personnel. The training included relevant site information, inventory overview, emergency response, and a comprehensive inspection overview.
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Inspection and Compliance Services-Banning Municipal Airport 5 May 7, 2025 Inspection Services – City of Santa Ana
Various Locations │ Santa Ana, CA
Client Contact:

Mr. Cesar Barrera
City of Santa Ana FOG Program Support
(714) 647-3387
[email protected]
Contract Value: $150,000
Project Summary (2015 - Current)
EEC developed, implemented, and managed the City of Santa Ana’s Fats, Oils, and Grease (FOG) program and conducted on-site facility inspections. EEC compiled an exhaustive list of all food service establishments (FSEs) within the City’s boundary and inspected each FSE to inventory cooking equipment, fixtures, floor sinks and drains, and grease removal device (GRD). EEC developed a FOG program database that processed the equipment inventory and created inspection frequencies based, in part, on an FSE’s potential to release FOG into the sewer system. EEC used the geographic information system to determine an FSE’s potential to impact sewer line hotspots. EEC has been inspecting FSEs in Santa Ana for the past decade. Project highlights include:
• FOG program development, implementation, and management • FSE kitchen best management practices (BMP) inspections • GRD inspections
• FSE noncompliance notifications
• Compliance inspection and follow-up efforts
• Sanitary sewer overflow (SSO) response and support
• FSE NPDES stormwater inspections
• Mobile FOG inspection deployment
Inspector Using Mobile
Device to Gather FSE Data
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Inspection and Compliance Services-Banning Municipal Airport 6 May 7, 2025 Client References
Client/Project Contact Address
United Airlines, Inc.

Spill Prevention, Control, and
Countermeasure Plan
Ms. Erika Frederick
Senior Manager –
Environmental Operations, West
[email protected]
(312) 898-1711
233 South Wacker Drive
Chicago, Illinois 60606
East Valley Water District
Spill Prevention, Control, and
Countermeasure Plan
Mr. Mike Hurst
Water and Wastewater
Compliance Supervisor
[email protected]
(909) 806-4222
31111 Greenspot Road
Highland, CA 92346
City of Santa Ana
FOG Program Support
Mr. Cesar Barrera
Principal Civil Engineer
[email protected]
(714) 647-3387
220 S. Daisy Avenue
Santa Ana, CA 92703
City of Torrance
Design/Build UST Removal and AST
Install, Torrance Municipal Airport
Ms. Nina Schroeder
Sr. Business Manager
[email protected]
(626) 781-7151
3031 Torrance Boulevard
Torrance, CA 90503
Note: Confidential client reference associated with project listed above will be provided upon request. 737
Inspection and Compliance Services-Banning Municipal Airport 1 May 7, 2025 Pricing
Pursuant to the RFP, EEC completed the Pricing Proposal Rate Sheet as part of the online submission of the proposal. This Rate Sheet is also shown below.

Additionally, EEC prepared a breakdown of the proposed fees for the first year’s audit engagement, including but not limited to hourly rates and subcontractor fees (see attached table, Breakdown of Proposed Fees). Though not anticipated, if situations arise which necessitate travel, EEC’s charges invoiced to the City for travel, lodging, and subsistence shall not exceed the current IRS rates. 738
Proposed Fees
Task 1: Annual Compliance Training

HOURS RATE COST

PERSONNEL
Compliance Manager 3 225 $ 675.00
TOTAL $ 675.00
Task 2: Inspection of Fuel Delivery Checklist
(two inspections)

HOURS RATE COST

PERSONNEL
Compliance Manager 1 225 $ 225.00
Compliance Inspector 8 160 $ 1,280.00
Price per inspection: $752.50
TOTAL $ 1,505.00
Task 3: Monthly Inspections of Aboveground Storage
Tanks and Completion of Required Checklists
(12 inspections)

HOURS RATE COST

PERSONNEL
Compliance Manager 4 225 $ 900.00
Compliance Inspector 42 160 $ 6,720.00
Price per inspection: $635
TOTAL $ 7,620.00
Task 4: Annual Inspection of Above Ground Storage
Tank and Completion of Required Checklists
(1 inspection)

HOURS RATE COST

PERSONNEL
Compliance Manager 1 225 $ 225.00
Compliance Inspector 2 160 $ 320.00
TOTAL $ 545.00
Task 5: Annual Tank Facility Statement

HOURS RATE COST

PERSONNEL
Compliance Manager 1 225 $ 225.00
TOTAL $ 225.00
Task 6: Annual AQMD Test

HOURS/UNITS RATE COST

PERSONNEL
Compliance Manager 2 225 $ 450.00
Fuel Pros (Subcontractor)* 1 1,500 $ 1,500.00
TOTAL $ 1,950.00
Task 7: Additional Services as Needed to Comply
with SPCC

HOURS RATE COST

PERSONNEL
Compliance Manager 10 225 $ 2,250.00
TOTAL $ 2,250.00
PROJECT TOTAL $14,770
* Rate is subcontractor fee plus %15 markup

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AGREEMENT FOR PROFESSIONAL SERVICES (C01184) FOR

INSPECTION AND COMPLIANCE SERVICES FOR BANNING

MUNICIPAL AIRPORT SPCC PLAN BY AND BETWEEN CITY OF

BANNING AND EEC ENVIRONMENTAL
THIS AGREEMENT FOR PROFESSIONAL SERVICES (herein “Agreement”) is made and entered into this day: ___________________, (“Effective Date”) by and between the CITY OF BANNING, a California municipal corporation (“City”) and EEC ENVIRONMENTAL, a California Corporation, (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has sought by issuance of RFP # 25-100 for the performance of the services for the Inspection and Compliance Services for Banning Municipal Airport SPCC Plan and as further defined and described particularly in Article 1 of this Agreement.

B. Consultant, following submission of a proposal for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by City to perform those services.

C. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

D. Pursuant to the City of Banning’s Municipal Code, City has authority to enter into this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which services may be referred to herein as the “Services” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, and fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional 740
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standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Contract Documents and Exhibits.

This Agreement includes the Request for Proposal and Consultant’s accepted proposal (“Contract Documents”), both of which are on file with the City and incorporated herein by this general reference as though fully set forth herein. Exhibit A (Scope of Services), Exhibit B (Special Requirements), Exhibit C (Schedule of Compensation), and Exhibit D (Schedule of Performance) also constitute a part of this Agreement and are incorporated into this Agreement by this reference. Except as set forth in Section 1.10 regarding Exhibit B, this Agreement controls over the Contract Documents and the provisions in Exhibits A, B and C.

1.3 Compliance with Law.

Consultant shall keep itself informed concerning all ordinances, resolutions, statutes, rules, and regulations of City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered, and shall render all Services hereunder in accordance therewith.

1.4 Licenses, Permits, Fees and Assessments.

Consultant shall obtain and maintain during the term of this Agreement, at its sole cost and expense, all necessary licenses, permits, certificates and approvals required by law for the performance of Services under this Agreement, including a City business license. Consultant shall have the sole obligation to pay for all fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for Consultant’s performance of the Services required by this Agreement. Consultant shall indemnify, defend and hold harmless City, its officers, employees or agents, against all such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Services.

By executing this Agreement, Consultant warrants that Consultant: (i) has thoroughly investigated and considered the Scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities and any difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions existing therein, prior to commencement of Services hereunder. Should Consultant discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer (defined in Section 1.12. A).

1.6 Prevention of Loss and Damages.

Consultant shall adopt reasonable methods during the Term (defined in Section 3.4) to furnish continuous protection to the work product, and the equipment, materials, papers, 741
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documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties.

Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonable necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible to perform the Services of the other.

1.8 Additional Services.

City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra services beyond that specified in the Scope of Services or to make changes by altering, adding to or deducting from the Services. No such extra services may be undertaken unless a written order is first given by the Contract Officer to Consultant, which written order incorporates therein an adjustment in (i) the Contract Sum (as defined in Section

2.1), and/or (ii) the Schedule of Performance, (as defined in Section 3.2), and which written order is approved in writing by Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum, or $25,000, whichever is less; or in the Schedule of Performance of up to one hundred eighty (180) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to Services which are specifically set forth in the Scope of Services or which are reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the Services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor.

1.9 Facilities and Equipment.

Except as otherwise provided, Consultant shall, at its own cost and expense, provide all facilities and equipment necessary to perform the Services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space (“City Facilities”), as City deems, in its sole discretion, to be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of City. The location, quality, and time of furnishing City Facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facilities that may involve incurring any direct expense, including but not limited to a computer, long distance telephone, network data, internet or other communication charges, vehicles and reproduction facilities.

1.10 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern. 742
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1.11 Corrections.

In addition to the indemnification obligations set forth in Article 4, and Sections 1.4, 1.13,

5.3, 5.4, and 6.3, Consultant shall correct, at its expense, all errors in the Services which may be disclosed during City’s review of Consultant’s report or plans. Should Consultant fail to make such correction(s) in a reasonably timely manner, such correction(s) may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction(s) from any retention amount held by City, or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction(s), as provided in Section 6.3.

1.12 Party Representatives.

A. Contract Officer: For the purposes of this Agreement, the Contract Officer shall be the City Manager, or such other person designated in writing by the City Manager (“Contract Officer”). Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

B. Principals and Personnel of Consultant.
1) Consultant Representative: The following principal of Consultant is hereby designated as being the Consultant Representative authorized to act on Consultant’s behalf regarding the Services specified herein and make all decisions in connection therewith:

Name Title
Lanni Duong Sr. Environmental Compliance Manager
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Consultant Representative were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Consultant Representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Consultant Representative. For purposes of this Agreement, the foregoing Consultant Representative may not be replaced nor may their responsibilities be substantially reduced or reassigned by Consultant without the express written approval of City. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions which must be made by City to the Contract Officer. 2) Consultant’s Personnel: Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the Services shall be qualified to perform such Services. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement. 743
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Consultant shall notify City of all changes in Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires to reassign any staff or sub-contractor of Consultant, City shall give notice as set forth in Section 8.1. Consultant shall, immediately upon the receipt of the notice to re-assign staff from City, reassign such person or persons.

1.13 Independent Contractor.

A. Consultant is an independent contractor and not an employee of City.

Consultant shall have no power to incur any debt, obligation, or liability on behalf of City. All Services provided pursuant to this Agreement shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services. Any additional personnel performing Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

B. Consultant shall indemnify and hold harmless City and its elected officials, officers, employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant’s personnel practices. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section.

1.14 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Consultant, the Consultant Representative and employees were a substantial inducement for City to enter into this Agreement.

Therefore, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this 744
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Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

1.15 Debarment or Suspension.

Consultant represents and warrants that, as of the Effective Date of this Agreement, Consultant is not debarred or suspended pursuant to any applicable Federal or State law providing for the debarment of contractors. Consultant shall not perform the Services with any subcontractor that has been debarred or suspended pursuant to any applicable Federal or State law providing for the debarment. Consultant and its subcontractors shall not be debarred or suspended throughout the Term of this Agreement pursuant to any applicable Federal or State law providing for the debarment of contractors. If Consultant or any subcontractor becomes debarred or suspended during the Term of this Agreement, Consultant shall immediately notify City.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, as full compensation for Services satisfactorily rendered, City shall pay Consultant at the hourly rates set forth in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. In no event shall Consultant be paid more than Fourteen Thousand Seven Hundred Seventy Dollars ($14,770.00) (the “Contract Sum”). The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Coordination of the performance of the Services with City is a critical component of the Services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending those meetings.

2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion of the Services, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Consultant’s rates as specified in the Schedule of Compensation, provided that time estimates are provided for the performance of sub tasks, but not exceeding the Contract Sum or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

City shall only reimburse Consultant for those actual and necessary expenses expressly set forth in Exhibit C. Reimbursable expenses may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual sub-contractor expenses of an approved sub-contractor pursuant to Section 1.14, and only if specified in the Schedule of Compensation.

2.4 Unauthorized Services and Expenses.
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City will not pay for any Services or reimburse for any expenses incurred which are not specified in the Scope of Services, unless authorized in writing as set forth in Section 1.8 of this Agreement. City shall make payment for such authorized additional Services and expenses in accordance with Article 2 of this Agreement.

2.5 Invoices.

Each month Consultant shall furnish to City an original invoice for all Services performed and expenses incurred during the preceding month. Each such invoice shall contain all of the information set forth in Section III of Exhibit C to this Agreement. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. Consultant shall not invoice City for any duplicate Services performed by more than one person.

City shall independently review each invoice submitted by Consultant to determine whether the Services performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Consultant to be paid within thirty (30) days of receipt of Consultant’s correct and undisputed invoice, except as to any charges for Services performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 6.3. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City of any invoice provided by Consultant shall not constitute waiver of any rights or remedies provided herein or any applicable law.

2.6 Waiver.

Payment to Consultant for Services performed pursuant to this Agreement shall not be deemed to waive any defects in Services performed by Consultant.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement; provided, however, that the foregoing shall not be construed to limit or deprive a Party of the benefits of any grace or use period allowed in this Agreement.

3.2 Schedule of Performance.

Consultant shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement may be extended because of any delays due to 746
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unforeseeable causes beyond the control and without the fault or negligence of Consultant. Such unforeseeable consequences include, but are not restricted to, acts of God or public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified, subject to the provisions of Section 1.8. The Contract Officer’s determination (or the City Council’s determination, in the event the period of enforced delay exceeds the period specified in Section

1.8) shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused; Consultant’s sole remedy shall be the extension of the Agreement pursuant to this Section.

3.4 Term.

The Term of this Agreement shall be from the Effective Date through June 30, 2026, with four (4) one-year optional renewals, unless sooner terminated as provided in Article 6 of this Agreement or extended as provided in Sections 1.8 and 3.3 of this Agreement. Maximum term and any subsequent amendment or modification shall not exceed five (5) years.

ARTICLE 4. INSURANCE AND INDEMNIFICATION

4.1 Minimum Scope and Limits of Insurance.

Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

A. Commercial General Liability Insurance with a minimum limit of $1,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $2,000,000.00 per project or location. If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, members, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.

B. Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $1,000,000.00 per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy.

C. Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Consultant has no employees while performing Services under this Agreement, workers’ compensation policy is not required; however, Consultant shall execute a declaration that it has no employees.
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D. Professional Liability/Errors and Omissions Insurance with minimum limits of $1,000,000.00 per claim and in the aggregate.

4.2 Acceptability of Insurers.

The insurance policies required under this Article shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self-insurance shall not be considered to comply with the insurance requirements under this Article.

4.3 Additional Insured.

The commercial general and automobile liability policies shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds.

4.4 Primary and Non-Contributing.

The insurance policies required under this Article shall apply on a primary noncontributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

4.5 Consultant’s Waiver of Subrogation.

The insurance policies required under this Article shall not prohibit Consultant and Consultant’s employees, agents or sub-contractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

4.6 Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City; or Consultant shall procure a bond guaranteeing payment of losses and expenses.

4.7 Cancellations or Modifications to Coverage.

Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Article during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Article is canceled or reduced in coverage or limits, Consultant shall, within two (2) Business Days (as defined in Section 8.12) of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

4.8 City Remedy for Noncompliance.
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If Consultant does not maintain the policies of insurance required under this Article in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Article, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

Consultant shall promptly reimburse City for any premium paid by City, or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

4.9 Evidence of Insurance.

Prior to the performance of Services under this Agreement, Consultant shall furnish the City Clerk with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Article. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with the City Clerk.

Consultant shall provide proof to the City Clerk that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the coverages.

4.10 Indemnity Requirements not Limiting.

Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under this Agreement.

4.11 Sub-contractor Insurance Requirements.

Consultant shall require each of its sub-contractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Article.

4.12 Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnification of City.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising 749
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from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws. City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2. 3) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Article from each and every sub-contractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement.

If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s sub-contractor, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant’s sub-contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties.

B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Article, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Article shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Consultant’s indemnifications and obligations under this Article shall survive the expiration or termination of this Agreement. 750
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ARTICLE 5. RECORDS, REPORTS, AND RELEASE OF INFORMATION

5.1 Service Records.

Consultant shall keep, and require sub-contractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and Services performed hereunder (the “Service Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Service Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Service Records at all times during normal business hours of City, including the right to inspect, copy, audit and make copies and transcripts from such Service Records. Such Service Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Service Records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the Service Records may be given to City, and access shall be provided by Consultant’s successor in interest (“Consultant’s Successor”). If custody of the Service Records is given to Consultant’s Successor, Consultant shall give written notice to City of the transfer of the Service Records to Consultant’s Successor. The notice shall include contact information (address and telephone number) for Consultant’s Successor, and access shall be provided to City by Consultant’s Successor.

5.2 Reports.

Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein, Consultant shall promptly notify the Contract Officer of that fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

5.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “Consultant Documents”) prepared by Consultant, its employees, sub-contractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Consultant Documents hereunder. Any use, reuse or assignment of such completed Consultant Documents for other projects and/or use of uncompleted Consultant Documents without specific written authorization by Consultant will be at City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use or assignment. Consultant may retain copies of such Consultant Documents for its own use. Consultant shall have an unrestricted right to use the concepts embodied therein. All 751
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sub-contractors shall provide for assignment to City of all Consultant Documents prepared by them; and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

5.4 Confidentiality and Release of Information.

A. All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.

B. Consultant, its officers, employees, agents or sub-contractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the Services performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena.

C. If Consultant, or any officer, employee, agent or sub-contractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct.

D. Consultant shall promptly notify City should Consultant, its officers, employees, agents or sub-contractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any Party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite the response.

ARTICLE 6. ENFORCEMENT OF AGREEMENT AND TERMINATION

6.1 California Law.

This Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside. 752
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6.2 Disputes; Default.

A. In the event that City determines Consultant is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any Services performed after the date of default. In addition to the provisions of Section 4.8, and the right to terminate pursuant to Section 6.7, if the City Manager determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, City may serve Consultant with written notice of the default. Consultant shall have ten (10) calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance.

In the event that Consultant fails to cure its default within such period of time, City may, notwithstanding any other provision of this Agreement, terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.

B. In the event of termination pursuant to this Section, City may take over the Services and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the Services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City as provided in Section 6.3.

6.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement): (i) any payment amount of which may be in dispute hereunder or which is necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, (ii) all amounts retained pursuant to the provisions of Section 4.8, (iii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement, and (iv) all payments due or that become due to Consultant during the period that Consultant or any of its sub-contractors fail to maintain any required insurance in full force and effect, until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City, as provided in Section 4.9, above. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

6.4 Waiver.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

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provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

Any waiver by either Party of any default must be in writing, and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

6.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

6.6 Legal Action.

In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant must file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action against City under this Agreement.

6.7 Termination Prior to Expiration of Term.

This Article 6 shall govern any termination of this Agreement except as specifically provided in Section 6.2 for termination for default of Consultant. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of Consultant, the period of notice may be a shorter time as may be determined by the Contract Officer. In addition, Consultant reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of City, the period of notice may be a shorter time as Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Except where Consultant has initiated termination, Consultant shall be entitled to compensation for all Services rendered prior to the effective date of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 6.3. In the event Consultant has initiated termination, Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 6.2.

6.8 Attorneys’ Fees.

In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party in such action or proceeding, in addition to any other 754
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relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition the Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 7. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

7.1 Non-liability of City Officers and Employees.

No officer or employee of City shall be personally liable to Consultant, or Consultant’s Successor, in the event of any default or breach by City or for any amount which may become due to Consultant or Consultant’s Successor, or for breach of any obligation of the terms of this Agreement.

7.2 Conflict of Interest.

Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of Services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or sub-contractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of City shall have any direct or indirect financial interest in this Agreement within the scope of Government Code section 1090, nor shall any such officer or employee make, participate in making, or use his or her official position to influence, any City decision relating to the Agreement which has a material financial effect on his or her financial interests or the financial interests of any corporation, partnership or association in which he or she is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given, and will not pay or give any third party any money or other consideration for obtaining this Agreement.

Consultant and its officers, employees, associates and sub-contractors, if any, shall comply with all conflict of interest statutes of the State of California applicable to Consultant’s Services under this Agreement, including the Political Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090. During the term of this Agreement, Consultant may perform similar services for other clients; but Consultant and its officers, employees, associates and subcontractors shall not, without the Contract Officer’s prior written approval, perform services for another person or entity for whom Consultant is not currently performing services that would require Consultant or one of its officers, employees, associates or sub-contractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute. Consultant shall incorporate a clause substantially similar to this Section into any subcontract that Consultant executes in connection with the performance of this Agreement. 755
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7.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, or ancestry in the performance of this Agreement.

Consultant shall take affirmative action to insure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, or ancestry, or other protected class.

7.4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of Services covered by this Agreement, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

ARTICLE 8. MISCELLANEOUS PROVISIONS

8.1 Notices.

Any notice, demand, request, document, consent, approval, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on confirmed delivery by courier service or overnight delivery service during Consultant’s and City’s regular business hours; or (b) three (3) Business Days after deposit in the United States mail, by certified or registered mail, and addressed to the Party to be notified as set forth below:

If to City Attn: Ann Marie Loconte
Associate Engineer
City of Banning
99 East Ramsey Street
Banning, California 92220
Email: [email protected]
With a courtesy copy to: John O. Pinkney, City Attorney Slovak Baron Empey Murphy & Pinkney LLP
74774 CA-111
Indian Wells, CA 92210
Email: [email protected]
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If to Consultant: Attn: Lanni Duong
Sr. Environmental Compliance Manager
EEC Environmental
One City Boulevard West, Suite 1800
Orange, CA 92868
Email: [email protected].

8.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

8.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

8.4 Integration; Amendment.

This Agreement, and all exhibits referred to in this Agreement, constitute the final, complete and exclusive statement of the terms of the agreement between the Parties pertaining to the subject matter of this Agreement and supersede all other and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. No amendment to or modification of this Agreement, nor any provision or breach hereof waived, shall be valid unless made in writing and approved by Consultant and by City Council. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

8.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

8.6 Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for Consultant’s proper performance of the Services required under this Agreement. 757
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B. Consultant’s Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

8.7 No Third Party Beneficiaries Intended.

This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

8.8 Final Payment Acceptance Constitutes Release.

The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished or relating to Consultant’s Services. Acceptance of payment shall be any negotiation of City’s check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-contractors and agents for the accuracy and competency of the information provided and/or Services performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the Services prepared by Consultant, its employees, sub-contractors and agents.

8.9 Non-Appropriation of Funds.

Payments to be made to Consultant by City for Services performed within the current fiscal year which are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant’s Services beyond the current fiscal year, this Agreement shall cover payment for Consultant’s Services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

8.10 Headings.

The headings in this Agreement are included solely for convenience of reference and shall not affect the interpretation of any provision of this Agreement or any of the rights or obligations of the Parties to this Agreement.

8.11 Word Usage.

Unless the context clearly requires otherwise, (a) the words “shall,” “will” and “agrees” are mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

8.12 Business Days.
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“Business Days” refers to days that the Banning City Hall is open for business.

8.13 Corporate Authority.

The persons executing this Agreement on behalf of the Parties hereto warrant that (i): such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of that Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which that Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

8.14 Electronic Signatures.

Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Arturo Vela, Date
Acting City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Sandra Calderon Date
Acting Administrative City Clerk
Address:

APPROVED AS TO FORM:

Slovak Baron Empey Murphy & Pinkney
LLP
City Council Approval: _____________
John O. Pinkney Date
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
760
Exhibit “A”-1
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following Services in connection with providing Inspection and Compliance Services for Banning Municipal Airport SPCC Plan prepared in connection therewith:

II. As part of the Services, Consultant will prepare and deliver the following tangible work products and services to City:
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Exhibit “A”
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762
Exhibit “A”
-3
763
Exhibit “A”
-4
764
Exhibit “A”
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765
Exhibit “A”-6
III. In addition to the requirements of Parts I and II of this Scope of Services, during the performance of the Services, Consultant will keep City appraised through periodic status reports regarding the performance of the Services under this Agreement as set forth below and in Section 5.2, by the following means:
a. In-person meetings and/or teleconferences.
b. Email updates/questions to applicant team and City while reviews are underway.
c. Conference calls.

IV. All work product is subject to review and acceptance by City. If the City determines that any work product is unacceptable, for any reason, it must be revised by Consultant without additional charge to City until found satisfactory and accepted by City. 766
Exhibit “B”-1
EXHIBIT “B”

SPECIAL REQUIREMENTS

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

1. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. Therefore, as to those Services that are “public works,” Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein.

2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.

3. Consultant shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the Effective Date of this Agreement. Consultant shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Consultant and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the Consultant or any subcontractor ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to compliance monitoring and enforcement by DIR. Consultant shall post job site notices, as prescribed by DIR regulations.

5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement.

6. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor.

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.
767
Exhibit “B”-2

8. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Administrative Code Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations.

Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.

9. The Consultant shall not perform Work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. The Consultant and Subcontractors shall not be debarred or suspended throughout the duration of this Agreement pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of contractors from public works. If the Consultant or any subcontractor becomes debarred or suspended during the duration of the project, the Consultant shall immediately notify City.

10. Consultant acknowledges that eight hours labor constitutes a legal day’s work.

Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight 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 Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant 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___________________________ 768
Exhibit “B”-3

12. For every subcontractor who will perform work on the project, Consultant shall be responsible for such subcontractor’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, including, without limitation, conducting a periodic review of the certified payroll records of the subcontractor and upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure.
769
Exhibit “C”-1
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the following tasks (“Tasks”) at the rates stated in Exhibit “C”-1.

II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task sub-budget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8.

III. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include:

A. Line items for all personnel describing the Services performed, the number of hours worked, and the hourly rate.

B. Line items for all materials and equipment properly charged to the Services.

C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

D. Line items for all approved sub-contractor labor, supplies, equipment, materials, and travel properly charged to the Services. 770
Exhibit “C-1”-1
EXHIBIT “C-1”
CONSULTANT’S BILLING RATE AND TASK SCHEDULE
771
Exhibit “C
-1”-2
772
Exhibit “D”- 1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Consultant shall perform all Services timely, and deliver the specified tangible work products to City in accordance with the schedule attached as Exhibit D-1.

II. The Contract Officer may approve extensions for performance of the Services in accordance with Sections 1.8 and 3.3.
773
Exhibit “D-1”- 1
EXHIBIT “D-1”

PROPOSED PROJECT SCHEDULE
774

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Acting City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer MEETING DATE: August 26, 2025
SUBJECT: Consideration of Resolution 2025-116 Approving Amendment No. 5 to the Professional Services Agreement with Albert A. Webb Associates, Inc. for an Additional Amount of $59,600 for Engineering and Environmental Permitting Services for the Sun Lakes Boulevard Extension Project.

RECOMMENDATION:

Adopt Resolution 2025-116
BACKGROUND:

On April 14, 2020, City Council approved Resolution No. 2020-48 for Professional Services Agreement with WEBB for the design of the Sun Lakes Boulevard Extension Project in the amount of $548,416.05.

On July 14, 2020, City Council adopted Resolution No. 2020-97, authorizing the City Manager to execute a Transportation Uniform Mitigation Fee (TUMF) Reimbursement Agreement with Western Riverside Council of Government (WRCOG) for up to $1,000,000 in TUMF funds for the Sun Lakes Boulevard Extension project.

On February 11, 2022, a change order to the Professional Services Agreement with WEBB was approved for out-of-scope work including coordination with Western Riverside County Regional Conservation Authority (RCA) in the amount of $24,983.25. The approval of this change order was within the City Manager’s approval authority.

On March 21, 2022, a change order to the Professional Services Agreement with WEBB was approved for out-of-scope work for the preparation of a sediment transport analysis in the amount of $5,974.88.

The approval of this change order was within the City Manager’s approval authority.

On October 11, 2022, City Council adopted Resolution 2022-139 to rescind Resolution 2022-106 and to amend the Professional Services Agreement with WEBB (“Amendment No. 1”) to include additional compensation in the amount of $148,222 and extend the term of the agreement to June 30, 2024.

Amendment No. 1 was for out-of-scope work such as storm drain system design, environmental coordination with RCA, supplemental environmental documentation and jurisdictional delineation and permitting. Amendment No.1 increased the contract amount to $751,947.66.

On October 24, 2023, City Council adopted Resolution 2023-175 to amend the Professional Services Agreement with WEBB (“Amendment No.2”) to include additional compensation in the amount of $496,079 for continued design of the Sun Lakes Boulevard Extension. Amendment No. 2 increased the contract amount to $1,248,026.66.
775
On January 6, 2025, City staff amended the Professional Services Agreement with WEBB (“Amendment No.3”) to extend the Term of Agreement to June 30, 2026.

On May 27, 2025, City Council adopted Resolution 2025-70 to amend the Professional Services Agreement with WEBB (“Amendment No.4”) to include additional compensation in the amount of $57,080 for environmental permitting related biological studies for the Sun Lakes Boulevard Extension.

Amendment No. 4 increased the contract amount to $1,305,106.66.

Under the previous contract Amendment No.4 to provide surveys for the Crotch’s Bumble Bee (CBB), the bee was found on the project site. As a result of the finding, additional permitting is required from the California Department of Fish and Wildlife (CDFW) for the project site including the offsite mitigation site for the Streambed Alteration Agreement with CDFW. Additional engineering services are needed to revise the final street and storm drain plans to accommodate the Kinder Morgan proposed pipeline alignment, in accordance with the encroachment permit application between the City of Banning an Kinder Morgan, owner of the easement and pipeline facility to be relocated.

The scope of work under this Amendment No.5 will include the following services before construction:
• Incidental Take Permit (ITP) Application
• CBB Habitat Assessment of Offsite Mitigation Site
• UAV Drone Survey
• Meetings and Coordination and Monitoring Agreement with Morongo Band of Mission Indians • Prepare PRIMP and Paleontological WEAP
• Update the Street/Storm Drain plans
• Preparation of new easements
The above-mentioned scope of work change is essential to meet environmental mitigation requirements and to make sure that the project construction phase begins on time and in compliance with the grant agreement awarded by the Riverside County Transportation Commission.

Contract Summary:

Original Contract $548,416.05
Change Order No. 1 $24,983.25
Change Order No. 2 $5,974.88
Change Order No. 3 $148,222.00
Contingency $24,351.48
Change Order No. 4 $496,079.00
Change Order No. 5 $57,080.00
Change Order No. 6 $59,600.00
Total Contract Value $1,364,706.66
The TUMF reimbursement agreement between the City of Banning and WRCOG was executed to fund the environmental documentation, plans, specifications and cost estimate, and items on this change order are eligible expenses for reimbursement.

JUSTIFICATION:

Sun Lakes Boulevard is identified by the City of Banning General Plan Circulation Element as an Arterial Highway. The proposed extension of Sun Lakes Boulevard will ease traffic congestion on existing city streets; improve public safety and emergency response; and improve regional connectivity.

Amendment No. 5 is needed so that environmental mitigation measures can be conducted in a timely manner in order to avoid delaying the construction schedule which may affect the availability of $13.5 776
Million Dollars in construction funding through the Measure A Regional Arterials grant from the Riverside County Transportation Commission.

FISCAL IMPACT:

An appropriation from the Measure A Fund in the amount of $59,600 to Account No. 101-4900-431.93- 16 is necessary to fund Amendment No. 5.

The project is funded by the TUMF program up to $12,000,000 under existing reimbursement agreements, therefore the additional expenditures related to Amendment No. 5 will be reimbursed by the TUMF program.

ALTERNATIVES:

Do not approve Resolution 2025-116 and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution 2025-116.docx

2. Att. 1 - Resolution No. 2020-048.pdf

3. Att. 2 - Resolution No. 2020-097.pdf

4. Att. 3 - Resolution No. 2022-139.pdf

5. Att. 4 - Resolution No. 2023-175.pdf

6. Att. 5 - Resolution No. 2025-070.pdf

7. Att. 6 - Original Services Agreement.pdf

8. Att. 7 - Amendment #1.pdf

9. Att. 8 - Amendment #2.pdf

10. Att. 9 - Amendment #3.pdf

11. Att. 10 - Amendment #4.pdf

12. Att. 11 - Change Orders #1,2 and 3.pdf

13. Att. 12 - Change Order #4.pdf

14. Att. 13 - Change Order #5.pdf

15. Att. 14 - Change Order #6.pdf

16. AMENDMENT NO 5.pdf
777
Resolution 2025-116