Agenda packet, regular meeting — Banning City Council, October 14, 2025 (part 1 of 6)

October 14, 2025
5:00 p.m.

In Chambers
Council Chambers
99 E. Ramsey Street
Banning, CA 92220

1. CALL TO ORDER

2. AGENDA APPROVAL
AGENDA

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
The following information comprises the agenda for the regular meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.

This meeting is being held via Zoom so that members of the public may observe and participate in this meeting electronically. If you participate in this meeting via Zoom, you are agreeing to abide by the City's Zoom Community Standards for Public Meetings (provided in full on the last page of the agenda). Esta reunión se lleva a cabo en la Cámara y a través de Video/Teleconferencia en Zoom para que los miembros del público puedan observar y participar en esta reunión de manera electrónica. Si elige participar en esta reunión a través de Zoom, acepta cumplir con los Estándares comunitarios de Zoom para reuniones públicas de la ciudad (que se proporcionan en su totalidad en la última página de la agenda).

To observe and participate in the online video portion of the meeting through your personal computer or device, follow this link:
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Meeting ID: 820 1264 4588
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Per the City of Banning Manual of Procedural Guidelines, matters taken up by the Council before 10 p.m. may be concluded, but no new matters shall be taken up except upon a majority vote of the council members present and voting. Such an extension shall only be valid for one hour and each hour thereafter shall require a renewed action for the meeting to continue.

1.1 INVOCATION
Performed by Pastor Baylark, First Community Baptist Church.

1.2 PLEDGE OF ALLEGIANCE

1.3 ROLL CALL

2.1 AGENDA APPROVAL
City Council - Regular Meeting Agenda
October 14, 2025
1 3. PRESENTATIONS

4. REPORT ON CLOSED SESSION

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

6. CONSENT ITEMS

6.1 Approval of the meeting minutes for the September 23, 2025 and October 3, 2025 City Council meetings.

6.2 Receive and File Cash and Investments Report for the Month of August 2025

6.3 Accept as Complete Various Improvements Related to the Atwell Specific Plan Development and Authorize 90% Reduction of the Improvement Bonds and Full Exoneration of Monument Bonds

6.4 Consideration of Second Reading and Adoption of Ordinance 1608, Amending Chapter 5.40 of the Banning Municipal Code Concerning Film Permits and Regulations with changes that city council requested to be added to the ordinance.

John Pinkney, Interim City Attorney

5.1 PUBLIC COMMENTS

5.2 CORRESPONDENCE

5.3 APPOINTMENTS
Consideration of Appointment of Two Council Members to the Community Development Block Grant(CDBG) Ad-Hoc Committee for the FY 2026/2027
Recommendation: Staff recommends the City Council appoint a committee at the October 14, 2024 meeting, consisting of two members from the City Council as well as the Economic Development Manager, to review and recommend FY 2026/2027 Community Development Block Grant (CDBG) program applications.

5.4 CITY COUNCIL COMMITEE REPORTS

5.5 ANNOUNCEMENTS OF CITY COUNCIL MEMBERS

5.6 CITY TREASURER'S REPORT

5.7 CITY MANAGER'S REPORT

5.8 CITY ATTORNEY'S REPORT
The following items have been recommended for approval and will be acted upon simultaneously, unless a member of the City Council/Banning Utility Authority/Successor Agency Board wishes to remove an item for separate consideration.

Recommendation: Approve the meeting minutes for the September 23, 2025 and October 3, 2025 City Council meetings.

Recommendation: That City Council receive and file Cash and Investment Report for August 2025, in accordance with California Government Code 53646.

Recommendation: Accept as complete various improvements related to the Atwell Specific Plan development and authorize 90% Reduction of the improvement bonds and full exoneration of monument bonds
Recommendation: Conduct second reading and adopt Ordinance 1608.

City Council - Regular Meeting Agenda
October 14, 2025
2 6.5 Consideration of Second Reading and Adoption of Ordinance 1611, Approving a Development Agreement By and Between the City of Banning and JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation

6.6 Consideration of Resolution 2025-137 Approving the City of Banning Electric Utility's Power Source Disclosure Annual Report and Power Content Label for Calendar Year 2024

6.7 Consideration of Resolution 2025-138, Awarding a Professional Services Agreement to West and Associates Engineering, Inc. in the Amount of $95,310 for the 2025 Urban Water Management Plan Update and Water Supply Assessments and Water Supply Verifications.

6.8 Consideration of Resolution 2025-140, Awarding a Professional Services Agreement for the Design of the Pedestrian Crossings Upgrade at Nineteen Intersections throughout the City of Banning to TKE Engineering, Inc. in the amount of $86,075 and Approving a 10% Contingency for a Total Project Budget of “Not-to-Exceed” $94,682.50

6.9 Consideration of Resolution 2025-141, Awarding a Construction Contract for Project No. 2023-04 Rectangular Rapid Flashing Beacon at the Intersections of Ramsey Street and 2nd Street, 6th Street, 16th Street and Martin Street, to All American Building Services in the amount of $592,850 and Approving a 10% Contingency for a Total Budget of “Not-to-Exceed” $652,135

6.10Consideration of Resolution 2025-142, Accepting Community Development Block Grant (CDBG) Funds for Fiscal Year 2025/2026 in the amount of $155,678 for the Banning Senior Center Project # 2 (5.BN.64-25) in the amount of $141,828; Banning Peace Center Food Program (5.BN.65-25) in the amount of $5,000; the Court Appointed Special Advocate (CASA) program (0.282-25) in the amount of $5,000; and the Teens Continue to lead program (0.284-25) in the amount of $3,850.

6.11Consideration of Resolution 2025-143, Awarding a Professional Services Agreement for the Banning Armory Resilience Centers Project to Richard Yen & Associates Architects & Planners, Inc. in the Amount of $759,850

6.12Consideration of Resolution 2025-145, Approving the Grant Agreement Between the City of Banning and the State of California - Office of Traffic Safety (OTS) for the FY 2025-2026 Selective Traffic Enforcement Program (STEP) Grant and Acceptance of the OTS STEP Grant Award in the Amount of $90,000.

6.13Consideration of Resolution 2025-146, Approving the Grant Agreement Between the City of Banning and the State of California - Office of Traffic Safety (OTS) for the FY 2025-2026 Traffic Records Improvement Project (TRIP) Grant and Acceptance of the OTS TRIP Grant Award in the Amount of $78,000.

7. PUBLIC HEARINGS

7.1 PUBLIC HEARING CONTINUED FROM SEPTEMBER 23, 2025 MEETING - Consideration Recommendation: Waive the second reading of text in its entirety and adopt Ordinance 1611.

Recommendation: Adopt Resolution 2025-137.

Recommendation: Adopt Resolution 2025-138.

Recommendation: Approve Resolution 2025-140.

Recommendation: Adopt Resolution 2025-141.

Recommendation: Adopt Resolution 2025-142.

Recommendation: Approve Resolution 2025-143.

Recommendation: Adopt Resolution 2025-145.

Recommendation: Adopt Resolution 2025-146.

City Council - Regular Meeting Agenda
October 14, 2025
3 of Resolution 2025-135 Approving a Cannabis Conditional Use Permit (CUP) Application, Case No. PLN 24-0107, by Flower Dept, LLC to Allow for the Commercial Cultivation of Cannabis (Project) within an Existing 8,041-square-foot Industrial Building at 200 John Street, in the Industrial (I) Zoning District (APN 541-220-006)

7.2 Annual Review of Development Agreement between Tri Pointe Homes (Previously Pardee Homes) and the City of Banning Regarding the Development of the Atwell Project within the Butterfield Specific Plan Generally Located Northeast of Wilson Street and Highland Springs Avenue.

7.3 Consideration of Resolution 2025-139, Approving Electric Rate Increases and Revisions to Certain Electric Rates and Tariffs.

8. REPORTS OF OFFICERS

9. DISCUSSION/ACTION ITEMS

9.1 Consideration of Resolution 2025-149, Approving a Professional Services Agreement with LSL, LLP in the Amount of $310,000 for Professional Municipal Accounting Services Aimed at Updating the City's Financial Records

10. ITEMS FOR FUTURE AGENDAS

11. ADJOURNMENT
Recommendation: Adopt Resolution 2025-135.

Recommendation: Receive and file.

Recommendation: Adopt Resolution 2025-139.

Recommendation: Adopt Resolution 2025-149

11.1 NEW ITEMS

1. Workshop to Discuss Homelessness (Royce)

11.2 EXISTING ITEMS

1. Animal Control Facility Assessment (Flynn)

2. Contractor(s) to do Citywide Cleanup (Flynn)

3. Emergency Preparedness (Barrington)

4. Review and Update Council travel Policy (Flynn)

5. Streamline Procurement Policy (Flynn)

6. Comp. & Class Salaries (Royce)

7. LMD Alternative Sources (Royce)

8. Community Garden, Sun Lakes (Flynn)
Next Regular Meeting – October 28, 2025
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City Council - Regular Meeting Agenda
October 14, 2025
4 If you fail to adhere to these community guidelines, you may be removed for disrupting the meeting occurring in Council Chambers. You may rejoin the meeting but may be removed for each violation of these community standards.

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Estándares comunitarios de Zoom para Reuniones Públicas Al participar en esta reunión en Zoom, usted acepta cumplir con los Estándares Comunitarios para Reuniones Públicas de la ciudad de Banning. Los que atienden por Zoom que no cumplan con estos estándares pueden ser retirados de la sala de reuniones.

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AFFIDAVIT • DECLARACIÓN JURADA
IT IS HEREBY CERTIFIED under the laws of the State of California that the above agenda was posted on the City's website (www.banningca.gov) as well as the Bulletin Board at Banning City Hall, located at 99 E Ramsey Street, Banning, CA 92220, at least 72 hours in advance of the meeting.
_________________________
Vickie Sellers, Elected City Clerk
Secretaria Municipal Electa
City Council - Regular Meeting Agenda
October 14, 2025
5 PUBLIC NOTICE • NOTICIA PÚBLICA
Meeting Agendas and Notices
Interested in receiving email and/or text notifications of upcoming City Council meetings? Sign up for meeting notifications through the City's website. Pursuant to amended Government Code §54957.5(b), staff reports and other public records related to open session agenda items are available on the City's website (www.banningca.gov/).

Public Comment
Agenda Items
Any member of the public may address this meeting of the City Council on any item appearing on the agenda. A five-minute limitation shall apply to each member of the public and no member of the public shall be permitted to share their time with any other person.

Non-Agenda Items
Any member of the public may address this meeting of the City Council on any item which does not appear on the regular meeting agenda but is of interest to the general public and is an item upon which the City Council may act. A three-minute limitation shall apply to each member of the public and no member shall be permitted to share their time with any other person. No action shall be taken, nor discussion held by the City Council, on any item which does not appear on the agenda, unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of §54954.2 of the Government Code.

Special Assistance/Accessibility Requests
In compliance with the Americans with Disabilities Act, any member of the public may request that the agenda and agenda packet be mailed to them. If you need special assistance to participate in this meeting (such as translation services), please contact the City Clerk's Office. Advanced notification of at least 48 hours prior to the meeting will allow the city to make arrangements to ensure your accessibility.
¿Necesita servicios de traducción para participar? Contacto Oficina del Secretario de la Ciudad.

CONTACT • CONTACTO
City Clerk's Office | 951-922-3102 | [email protected] 99 East Ramsey Street, Banning, California 92220
City Council - Regular Meeting Agenda
October 14, 2025
6 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Ralph Wright, Parks and Recreation Director Marisol Lopez, Economic Development Manager
MEETING DATE: October 14, 2025
SUBJECT: Consideration of Appointment of Two Council Members to the Community Development Block Grant(CDBG) Ad-Hoc Committee for the FY 2026/2027
RECOMMENDATION:

Staff recommends the City Council appoint a committee at the October 14, 2024 meeting, consisting of two members from the City Council as well as the Economic Development Manager, to review and recommend FY 2026/2027 Community Development Block Grant (CDBG) program applications.

BACKGROUND:

The City of Banning is a cooperating City in the Community Development Block Grant (CDBG) Program.

The CDBG program is a flexible program that provides communities with resources to address a wide range of unique community development needs. Beginning in 1974, the CDBG program is one of the longest-running programs at HUD. The CDBG entitlement program allocates annual grants to larger cities and urban counties to develop viable communities by providing decent housing, a suitable living environment, and expanding economic opportunities, primarily for low- and moderate-income individuals.

The CDBG program is a federally funded program administered through the U.S. Department of Housing and Urban Development (HUD). As an Urban County in the Entitlement CDBG program, the County receives an annual formula allocation of CDBG funds from HUD. HUD determines the amount of each grant using a formula that incorporates several measures of community need, including the extent of poverty, population, housing overcrowding, the age of housing, and population growth lag in relation to other metropolitan areas.

The program works to ensure decent, affordable housing, provides services to the most vulnerable in our communities, and creates jobs through the expansion and retention of businesses. CDBG is a vital tool for helping local governments address the serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation. CDBG was authorized under the Housing and Community Development Act of 1974, as amended, and is listed under the Catalog of Federal Domestic Assistance (CFDA) as 14.218. Applicable CDBG regulations can be found at 24 CFR Part 570 and 24 CFR Part 91. CDBG funding has been used by the County, its cooperating cities, and other subrecipients for a wide variety of community, economic, and social development activities. Activities include public facilities such as fire stations, parks, community centers, senior centers, homeless shelters, health clinics, water and sewer improvements, and street and sidewalk improvements. CDBG also provides public service activities such as childcare, health care, after school, programs, senior programs, food and clothing distribution, job training, recreation, and many more.
7 Notice of Funding Availability (NOFA) for the County of Riverside’s 2026-2027 Urban County CDBG program for Cooperating Cities. The County opened the 2026-2027 CDBG application cycle starting September 29, 2025. The estimated City of Banning allocation for 2026/2027 is $156,000.

The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses.

CDBG is an important tool for helping local governments tackle serious challenges facing their communities. The CDBG program has made a difference in the lives of millions of people and their communities across the Nation.

Eligible Activities:
• Economic Development
• Job Development
• Youth Services
• Senior Programs
• Health Services
• Public Safety Programs
• Neighborhood Revitalization
• Municipal Services
• Code Enforcement
• Transportation Services
• Housing Assistance/First Time Buyers
CDBG-funded projects must satisfy one of three national program objectives:
• Provide a benefit to low- and moderate-income persons, • Prevent or eliminate slums and blight, or
• Meet other urgent community development needs due to natural disasters or other emergencies. • Community Centers
• Workforce Development Centers
• Child Care Centers
• Senior Centers
• Health Facilities
• Sheriff/Fire Stations
• Flood and Drainage Facilities
• Water/Sewer Improvements
• Demolition
• Street Improvements/Sidewalks
• Homeless Centers
Of the City's estimated allocation, a maximum of 15% of the $156,000 or $23,400 can be used for Public Service projects.

JUSTIFICATION:

Riverside County Housing and Workforce Solutions will make the final determination of a project’s eligibility.

Below is a schedule of important dates that are necessary to ensure that the City meets Riverside County Housing and Workforce Solutions Agency's application deadline. 10/13/2025 Application Period Opens to The Public.
11/14/2025 Applications due at 4:00 PM (hard copy only) No later than
8 11/24/2025 Ad-Hoc meeting to review applications and make recommendation. 12/09/2025 City Council to approve applications for submission to Riverside County 12/18/2025 Approved Applications due to Riverside County FISCAL IMPACT:

There is no fiscal impact associated with the selection of the Ad-Hoc Committee members.

ALTERNATIVES:

Do not appoint any members. However, failure to appoint committee members in a timely manner could result in a missed deadline for submitting applications to Riverside County, which could result in a lost funding opportunity of approximately $156,000 in CDBG funds.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
9 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Acting Administrative City Clerk MEETING DATE: October 14, 2025
SUBJECT: Approval of the meeting minutes for the September 23, 2025 and October 3, 2025 City Council meetings.

RECOMMENDATION:

Approve the meeting minutes for the September 23, 2025 and October 3, 2025 City Council meetings.

BACKGROUND:

After every meeting, the City Clerk's Office prepares meeting minutes. The City Council reviews and approves these minutes either as presented or with modifications.

JUSTIFICATION:

These minutes have been prepared as summary minutes in accordance with City Council Resolution 2025-22 and Government Code Section 36814, 4801, and 54953 (c)(2).

FISCAL IMPACT:

None
ALTERNATIVES:

1. Approve as recommended.

2. Approve with modifications.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. 2025 09 23_City Council_Regular_DRAFT.pdf

2. 2025 10 03_Special CC Meeting Closed Session_DRAFT.pdf 10 1

MINUTES

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
September 23, 2025 Council Chambers
5:00 p.m. 99 E. Ramsey Street
In Chambers Banning, CA 92220
The following information comprises the minutes for the regular meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.

COUNCIL MEMBERS PRESENT: Council Member Cynthia Barrington Mayor Sheri Flynn
Council Member Leroy Miller
Mayor Pro Tem Richard Royce
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: John O. Pinkney, City Attorney
Arturo Vela, Interim City Manager
Vickie Sellers, City Clerk
Sandra Calderon, Acting Administrative City Clerk

1. CALL TO ORDER –5:04 p.m.

1.1 INVOCATION
Performed by Rev. Stacy Dupree, Episcopal Church of the Good Shepherd.

1.2 PLEDGE OF ALLEGIANCE

1.3 ROLL CALL

COUNCIL MEMBER PRESENT ABSENT
Barrington, Cynthia X
Flynn, Sheri X Miller, Leroy X
Royce, Richard X
Wallace, Colleen X

2. AGENDA APPROVAL

2.1 AGENDA APPROVAL
A motion to approve the agenda was made by Councilmember Wallace, seconded by Mayor Flynn.

Motion carried unanimously 5-0.
11 2

3. PRESENTATIONS

3.1 Proclamation - Dr. Clara Wooten-Thomas
A proclamation was presented to Dr. Clara Wooten-Thomas on the occasion of her 90th Birthday and in recognition of her leadership and service.

4. REPORT ON CLOSED SESSION
None

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

5.1 PUBLIC COMMENTS
Mayor Flynn opened public comments.

Oscar Garcia expressed concerns regarding Mayor Flynn’s conduct and urged the Council to consider a vote of no confidence and removal from the position of Mayor.

Inge Schuler expressed concerns regarding large property owners and developers, including Diversified Pacific and North Point. She raised issues related to encampments, property maintenance, and landfill conditions, urging that Code Enforcement ensure the properties are kept clean.

Sue Savage, City Treasurer, addressed the Council regarding her removal from City Hall and the removal of her treasurer’s report from the agenda. She raised concerns about due process, transparency, and financial oversight, and requested reinstatement to her office, access to city records, and inclusion of the treasure’s reports on future agendas.

Timothy Smith spoke regarding traffic concerns on Highland Springs Ave. He expressed interest in commercial development, such as a Target store that is coming to Beaumont, and raised concerns about homelessness in the city.

Jack Gunderson addressed the Council regarding the new Code Enforcement software. He expressed concerns about usability, inaccurate categorization of complaints, lack of feedback, and loss of previous complaint records, and requested follow-up on these issues.

Stewart McKenzie thanked and congratulated the Planning Commission for rejecting the Sunset Crossroads project. He also commented on the removal of the Mission Hights project from the agenda and expressed concerns about potential development impacts on the city.

Udo Rohlberg addressed the Council regarding the importance of honesty, transparency, and civility in city leadership. He expressed concerns about Mayor Lynn’s conduct on social media and called for new leadership in the City.

Cula Ringgold addressed the Council expressing concern about the city’s financial challenges, strained regional relationships, and leadership under the Mayor. She urged the Mayor to step aside to allow new leadership to restore confidence and progress in City Hall.

Lilly Dias expressed concerns over Mayor Flynn’s public comments on social media, describing them as unprofessional. She urged for leadership that represents and supports all Banning residents.

John Hagen raised two concerns. First, he noted that despite reports showing Omar Street as 100% complete, a missing sidewalk section creates a safety hazard and potential liability for the City.

Second, he expressed frustration over ongoing homeless encampments near the courthouse area, stating that inadequate monitoring has led to more campers returning and additional clean-up costs. 12 3
Lynnea Hagen thanked Mayor Flynn for her service to the City and defended her leadership. She commented that comments received earlier tonight were unfounded and suggested that issues in Banning’s finances began under a former City Manager, not the current Mayor.

Bill Hobbs expressed concern about Banning’s ongoing issues and suggested exploring a merger with the City of Beaumont to improve services, economy, and community conditions.

Laura Leindecker emphasized the importance of working with local organizations and community leaders to support the City and engage residents effectively.

Oleg Ivaschuk encouraged supporting local businesses to benefit the community and announced the State of the City event on November 5.

Juanita Diaz emphasized the importance of prioritizing the community over personal conflicts. She acknowledged Mayor Flynn’s dedication and urged residents to focus on actions and progress for Banning rather than personal grievances or past council behavior.

Dennis (Banning Bench Resident and Business Owner) expressed opposition to the proposed Mission Heights development, citing concerns about fire risk in the Banning Bench area and the impact on local infrastructure.

Mayor Flynn opened public comments.

5.2 CORRESPONDENCE
The City received two letters from Kathy Aranda, the first letter will be read during Consent Items and Public Comments (Items 6.3 and 6.4), and the second letter will read during Public Hearing Item

7.2. 5.3 APPOINTMENTS

5.3.1 Appoint a new member to the Budget and Finance Committee Recommendation: Appoint a new member to the Budget and Finance Committee

Motion by Council Member Barrington to serve in the Budget and Finance Committee Seconded by Mayor Flynn
Motion carried unanimously 5-0.

5.4 CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace reported on attending a recent SANDAG meeting, covering transportation, regional planning, and border issues. She noted progress on the Draft 2025 Regional Plan and discussed funding opportunities, including $108 billion allocated for infrastructure projects in San Diego, Riverside, and Orange Counties. Further updates will be provided at the next meeting.

Mayor Pro Tem Royce reported on the Budget and Finance Committee meeting held on September 16. He highlighted staff presentations explaining account interactions and noted ongoing efforts to provide online access to financial reports. The Committee is working with staff and outside auditors to compile accurate budget information for future presentation.

Council Member Miller reported on a recent Town Hall Meeting with Interim City Manager Art Vela. Topics discussed included electrical billing updates, the animal shelter, and the City’s development and economic blueprint. Residents asked questions, and another Town Hall Meeting is planned in the coming months.

Mayor Flynn reported on the RCTC meeting held September 10: • Clean Air Zero Emission Discount for express lanes will end statewide on September 30. • $2 million in transportation mitigation fees from WRCOG approved for the Highland Springs 1- 10 interchange, with planning and environmental studies continuing though 2027 via a third- party agreement with Beaumont and Banning. 13 4 • Statewide transportation improvement funds: $1.1 billion allocated, with $33 million for Riverside County (80% for Western Riverside including Banning, 20% for Coachella Valley).

Attended the Mobility Summit at Disneyland Hotel, highlighting challenges in transitioning to all- electric trucks, ' insufficient infrastructure, limited range, and potential impacts on small trucking businesses.

Attended the 2x2 on September 15 Animal Control Meeting in Beaumont with representatives from Beaumont and Morongo; no reportable actions were taken.

5.5 ANNOUNCEMENTS OF CITY COUNCIL MEMBERS
Council Member Wallace announced a Town Hall Meeting on Saturday at 4:00 p.m. at Roosevelt Williams Park; speaker will be Chief Avila.

Mayor Pro Tem Royce announced a Town Hall Meeting will be scheduled for Thursday.

Council Member Miller announced Banning Night for Public Safety on October 18 at Silvan Park from 11:00 a.m. to 2:00 p.m.

Mayor Flynn noted upcoming State of the City events (Calimesa on September 25 and Banning on November 5) and reported that she provides monthly updates to her HOA via televised meeting.

5.6 CITY MANAGER'S REPORT
Art Vela, Interim City Manager • Omar Ramsey Street Project: Sidewalk was not included in the original grant-funded project to maximize funding approval. The City is now working with Riverside County Flood Control to potentially include the sidewalk in a future project or secure assistance. • Sun Lakes Boulevard Project: Bid documents are being finalized, with bidding expected in late October or early November and award in early 2026. • Community Cleanup Event: Scheduled for October 18 at Dysart Park; up to 500 vehicles typically participate. Details on acceptable waste are on the City’s website. • Utility Billing Update: The City is nearing a two-week turnaround per month for billing. Auto-pay issues require temporary suspicion until the backlog is resolved. Customers can pay via the online portal or at the billing counter. • General Plan Advisory Committee Vacancies: only three applicants have applied for multiple openings. The application window has been reopened for a third time. Committee members will serve for a limited commitment (approximately three more meetings) and provide recommendations on long-term city planning.

5.7 CITY ATTORNEY'S REPORT
John Pinkney, City Attorney • Highlighted that the City Council has retained a team of experienced consultants who previously helped a neighboring city recover from serious financial challenges. • Emphasized the importance of ensuring all statements about the City’s finances are accurate, complete, and up to date. • Noted that developing a sustainable financial plan will take time, as the City’s current financial condition developed over years. • Clarified that under state law, the City Treasurer is required to give a report once per month, and access to city facilities was modified following an inappropriate incident with a city employee. • Reaffirmed that the consultant team is working closely with staff and Council to provide a comprehensive report on the City’s financial status and plan moving forward.

6. CONSENT ITEMS
The following items have been recommended for approval and will be acted upon simultaneously, unless a member of the City Council/Banning Utility Authority/Successor Agency Board wishes to remove an item for separate consideration.

6.1 Approval of the meeting minutes for the September 9, 2025 City Council meetings.

6.2 Receive and File Fire Protection Services Statistics for the Month of August 2025.

6.3 Receive and File Code Enforcement Statistics for the Month of August 2025

6.4 Receive and File Police Department Statistics for the Month of August 2025. 14 5 6.5 Receive and File Animal Control Statistics for the Month of August 2025.

6.6 Public Works Capital Improvement Project Tracking List

6.7 Consideration of Accepting an Easement from Tri-Pointe Homes for Storm Drain Purposes Within Tract 37388-3 of the Atwell Project

6.8 Receive and File Contracts Approved Under the City Manager's Signature Authority and Inventory Reports for August 2025

6.9 Receive and File Accounts Payable and Payroll Warrants Issued in the Month of May 2025.

6.10 Receive and File Accounts Payable and Payroll Warrants Issued in the Month of June 2025.

6.11 Consideration of Second Reading of Ordinance 1612 of the City of Banning, California Establishing a Procedure for Property Owner Objections to Proposed Water/Sewer Fees or Special Assessments

6.12 Consideration of Resolution 2025-125, Amending the Classification & Compensation Plan for the City of Banning related to the positions of Executive Secretary (Unfund), Administrative Analyst (Fund), Code Compliance Supervisor (Unfund), Code Compliance Officer (Fund) and Electric Service Planner (Reclass)

6.13 Consideration of Resolution 2025-132, Amending the Banning Electric Utility’s Rules and Regulations #1 to #19, #21 and the General Provisions, Removal of Rule #20 and Adding Rules #22, #23 and Notes, Which Set Forth Electric Service Requirements

6.14 Consideration of Resolution 2025-133, Award of a Professional Services Contract to Peckham & McKenney to conduct the Executive recruitment for the City of Banning next Permanent City Manager in the amount of $32,050.00.

Council Member Miller pulled items: 6.2, 6.3 and 6.4.

Mayor Pro Tem Royce pulled items: 6.5
Mayor Flynn pulled items: 6.9, 6.10 and 6.14
Mayor Flynn opened public comments on items not pulled: 6.1, 6.6,6.7,6.8,6.11,6.12 and 6.13.

No public comments.

Mayor Flynn closed public comments.

Motion by Council Member Wallace to approve the items not pulled.

Seconded by Council Member Miller.

Motion carried unanimously 5-0.

Item 6.2 was discussed by staff and Council.

Council Member Miller inquire whether he City currently charges a fee for false alarms. Interim City Manager Art Vela reported that while work to establish a fee has begun, no fee has been implemented yet. He will follow Chief Hopkins and Chief Avila to determine steps needed to establish and begin charging the fee.

Mayor Flynn opened public comments
No public comments
Mayor Flynn closed public comments
Item 6.3 was discussed by staff and Council.

Citations collected year-to-date: $2,451 (does not include weed abatement).

Weed abatement cost recovery: $90,935.03.

Mayor Flynn opened public comments
Comment letter received by the City was read for the record. (Exhibit 1) 15 6
Item 6.4 was discussed by staff and Council.

Chief Avila said there were 1,480 false alarms year-to-date (1,048 per year average). Currently, no fees are charged for false alarms. Staff is coordinating with CAL Fire to integrate their alarm calls into the City’s collection system.

Mayor Flynn opened public comments
Frank Connelly urged the City to enforce fees for repeated alarms to prevent tying up resources.

Comment letter received by the City was previously read for the record. (Exhibit 1) Mayor Flynn closed public comments
Item 6.5 was discussed by staff and Council.

Mayor Pro Tem Royce questioned unusually high percentage change in fees, bill, and outside costs in the report. Staff will verify the numbers and provide corrected figures.

Inge Schuler expressed concerns about haphazard billing and licensing with PetData, noted possible owed payments to licensing company due to insufficient revenue and suggested the city consider handling licensing in-house for better tracking revenue and record keeping.

Mayor Flynn closed public comments
Item 6.9 and 6.10 was discussed by staff and Council.

Mayor Flynn expressed concerns over lack of detailed descriptions for warrants and Well Fargo card charges, noting potential past excessive charges and lack of accountability over the last several months.

Staff explained that the system limits the information displayed in reports, but additional details are available in manual spreadsheets and electronic statements.

Council Member emphasized difficulty reviewing and approving due to missing details, though staff confirmed payments had already been made.

Staff confirmed that historical data and statements are retrievable if specific charges need verification and can supply additional documentation as needed.

Sue Savage questioned discrepancies between Finance’s report and bank statements:

Item 6.9: Other ACH payments listed as $1,572,000 in Finance report vs. $2,274,000 on bank statement.

Asked about return checks ($1,700) bank fees ($2,400), and employee charge card totals ($29,458.51). Noted past charges were higher ( ̴ $44,000).

Item 6.10: June expenses $9,244,000 vs. income $11,333,000, resulting in $2,088.000 surplus, but still short from prior $4,200,000 LIFE withdrawal, noting the net shortfall for May and June:
$2,111,000 and $293,000 respectively.

Frank Connelly questioned charges for Arrowhead; staff confirmed they were Parks and Recreation expenses.
16 7
Mayor Flynn expressed concern about Wells Fargo staff credit card charges ( ̴$39,000/month) and lack of recent accountability.

Item 6.14 was discussed by staff and Council.

Mayor Flynn discussed designation of a contract officer as required under item 17 of the contract.

Motion by Council Member Miller to designate Bob Deis as the contract officer and adopt Resolution No. 2025-133.

Seconded by Council Member Wallace
Motion carried unanimously 5-0.

Mayor Flynn announced that item 9.2 would be moved up on the agenda.

John Pinkney, City Attorney recused himself from this item due to also serving as City Attorney for the City of Beaumont.

9.2 Consideration of Resolution 2025-131, Approving the Installation of a Stop Sign and Establishing a Multi-Way Stop Controlled Intersection at First Street/Hays Street and Highland Springs Avenue/Potrero Boulevard
Recommendation: Adopt Resolution 2025-131.

Nate Smith, Deputy Director of Public Works/City Engineer presented resolution 2025-131, proposing the installation of muti-way stop-controlled intersections at 1st Street & Hays Street and Highland Springs Avenue & Potrero Boulevard.

He provided background information noting that the Banning Municipal Code requires the City Engineer to conduct warrant studies in accordance with the Manual on Unform Traffic Control Devices (MUTCD) and bring recommendations to Council for approval by resolution. The presentation reviewed the criteria and engineering analysis used to determine the need for multiway stop installations at the proposed locations.

Council discussed traffic and safety concerns at 1st & Hays and Highland Springs & Potrero mainly serves the Sun Lakes and Four Seasons communities. Questions were raised about potential liability if the stop signs were not approved; staff noted the engineering study supports installation and non-action could pose some risk. Speed data showed an 85th percentile of about 45 mph, with a top speed of 73 mph. The Study was conducted August 5-7 using optical sensors.

Council continued discussion regarding traffic volume and speed data at Highland Springs & Potrero. Staff confirmed that about 7,740 vehicles were recorded over a 48-hour period, consistent with expected trip generation for nearby age-restricted communities. Questions were raised about the accuracy of the count and noted it seemed high based on personal observation.

Discussion included whether raising the speed limit from 35 to 45 mph could affect the warrant; staff said the stop sign would still meet criteria. Council also questioned mitigation efforts, noting few visible speed limit signs, limited police enforcement, and lack of radar feedback signs since the June discussion.

Council expressed concerns about traffic congestion and safety, noting the intersection has multiple lanes, left-turn lanes, and high traffic volume, which could create confusion and backups, particularly affecting the nearby Loma Linda property entrance. Staff clarified that peak volumes of ̴500 vehicles per hour are spread across lanes and time, so significant staking back to First Street is unlikely.

Council and staff discussed that speed is the primary concern at the intersection. Staff noted that only two accidents occurred in two years, blow the warrant threshold of five accidents in 12 months for stop sign installation. Additional incidents, including near misses, are not counted in 17 8
the warrant data. Staff emphasized that higher speeds increase the severity of collisions, which is why stop sign warrants are adjusted for roads exceeding 40 mph.

Council asked whether a traffic signal or roundabout could be installed instead of stop signs. Staff explained that traffic signals require higher warrant thresholds, including multiple criteria under the MUTCD, and cost would be a factor. While nothing legally prevents installing a signal, staff noted it would require further analysis. Council expressed concern about using stop signs as interim solution, emphasizing the potential safety risk if accidents increase before a signal is considered.

Council discussed that stop signs could create confusion at the T-intersection and that the main issue is speed, not visibility. Enforcement or warning signs were suggested as alternatives. The intersection meets the speed-related criteria for a stop sign.

Mayor Flynn opened public comments
Mike Lara, Mayor of Beaumont, spoke in support of installing a three-way stop at Highland Springs & Potrero, noting that traffic warrants indicate the stop is necessary for safety. He highlighted that Beaumont’s City Council has approved the installation on their side and offered to fund the stop signs. He also cited six collisions over three years as additional context and emphasized the importance of collaborative action between the two cities to reduce potential safety risks and liability.

Mayor Flynn closed public comments
Council discussed that a stop sign could cause backups and confusion; a traffic signal might be safer but would require cost-sharing with Beaumont. Staff confirmed the intersection meets speed-based warrant criteria, and no interim enforcement or mitigation measures have been implemented.

Motion by Mayor Flynn to modify Resolution 2025-131. Approve the stop sign at First Street & Hays Street while deferring the Highland Springs & Potrero stop sign pending mitigation measures and future evaluation. The motion includes striking the resolution language for Highland Springs & Potrero.

Seconded by Council Member Royce
Motion Failed, vote was 3-2.

COUNCIL MEMBER YES NO
Barrington, Cynthia X
Flynn, Sheri X
Miller, Leroy X
Royce, Richard X
Wallace, Colleen X
Motion by Council Member Barrington to approve Resolution 2025-131 to install the stop sign at First Street & Hays Street, with a caveat to monitor traffic at Highland Springs & Potrero and consider a traffic signal if backups occur.

Seconded by Council Member Wallace
Vote was 4-1.

COUNCIL MEMBER YES NO
Barrington, Cynthia X
Flynn, Sheri X
Miller, Leroy X
Royce, Richard X
Wallace, Colleen X
18 9

7. PUBLIC HEARINGS

7.1 Re-introduction and Adoption of Ordinance 1611, Approving a Development Agreement By and Between the City of Banning and JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation, for the Banning Commerce Center Project by Sansone Group Previously Approved Under Council Resolutions 2025-106 and 2025-107 and Involve the Construction of a 1,320,284-Square Foot Industrial Warehouse Building on 131.28-acres of Land Generally Located North of the I-10 Freeway/E. Ramsey Street, East of N. Hathaway Street and Bisected by Wilson Street.

Recommendation: Re- introduce and Conduct First Reading of, by Title Only, Ordinance 1611: An Ordinance of the City Council of the City of Banning, California, Approving a Development Agreement by and between the City of Banning and JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation.

The project was previously reviewed at the July8 meeting, where Council adopted the project’s EIR, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting program.

The reintroduction of Ordinance No. 1611 is necessary to address:
• Missing dates and references.
• Added text to Section 17C regarding tolling the agreement in case of third-party challenges.
• Proper signatory names, and current development impact fees applicable to the project.

Because revisions go beyond minor grammatical corrections, the ordinance is being reintroduced for first reading.

Mayor Flynn opened public hearing at 8:03 p.m.

No public comments.

Mayor Flynn closed public hearing at 8:04 p.m.

Motion by Council Member Wallace to adopt Ordinance 1611, approving a Development Agreement by and between the City of Banning and JDNJ Enterprises, LLC a Missouri Limited Liability Corporations with revisions and waive second reading of the Ordinance.

Seconded by Mayor Flynn,
Motion carried unanimously 5-0.

7.2 Consideration of Resolution 2025 -135 Approving a Cannabis Conditional Use Permit (CUP) Application Case No. PLN 24-0107, by Flower Dept, LLC to Allow for the Commercial Cultivation of Cannabis (Project) within an Existing 8,041-square foot Industrial Building at 200 John Street, in the Industrial (I) Zoning District (APN 541-220-006) Recommendation: Adopt Resolution 2025-135.

David Newell, Community Development Director, provided the staff report.

Council Discussion:
• Council inquired whether the City would profit from water and electricity use at the facility.
• Staff explained that utility charges are based on a cost-of services analysis, ensuring sufficient revenue to cover operational costs rather than generate profit. • While the City would not see significant profit, the increase in electrical demand benefits the utility by helping offset fixed costs shared by all customer classes. 19 10
• Council requested details on technology and monitoring methods to ensure odors are controlled.
• Staff said facility will use carbon filtration technology similar to the system at 820 South Hathaway. Possible additional insulation or creating a sealed “box within a building” design to prevent odor escape.
• Council suggested adding a condition requiring sealed grow and drying rooms. • Council discussed ensuring compliance with BMC Section 17.53.160, which requires a minimum of 10000 sq. ft. canopy and a maximum of 22,000 sq. ft. per permit. • Staff proposed adding a condition requiring the applicant to provide canopy grow plan demonstrating compliance and the City can conduct periodic inspections to very ongoing adherence to canopy and spacing requirements.

Ricardo Alcantara, Project Manager, addressed Council regarding odor control. Facility will use triple carbon filtration (in-room, attic, and hallways) to exceed City standards. Easement agreement between property owners will be recorded after CUP approval.

Mayor Flynn opened public hearing at 8:38 p.m.

Frank Connelly supports the CUP due to no nearby residences and concerned about locked cul-de-sac sand emergency access; recommends no-parking zones for safety.

Lynnea Hagan concerned about high water use, odor issues, and city revenue. She questioned the need additional cannabis facilities.

John Hagan Noted that three cannabis facilities are already authorized in District 2, two inactive. Highlighted the site’s history as the Indigo Grove facility and suggested the City ensure no individuals previously involved in illegal operations are associated with the new LLC.

Jack Gunderson raised concerns about ongoing odor issues at existing facilities; stressed the need for unannounced inspections to ensure compliance and opposed adding another cannabis facility in the City.

Max Diego concern about odor from the Hathaway Street facility. He’s opposed approving the new facility until existing odor issues are resolved, to avoid doubling the problem.

Correspondence: letter received raising concerns about the 200 John Street cannabis project was read for the record (Exhibit 2).

Council Discussion:
• Some Council Members noted widespread odor from existing facilities but acknowledged the new facility has filtration systems.
• Council discussed potential tax revenue.
• The applicant and operators passed background checks. No prior illegal operators are associated with the LLC.
• Previous public vote approved dispensaries, not cultivation, no cap exists on cultivation facilities.
• Safety Concerns: Fire access and street layout (cult-de-sac at Gallaher Way) require review to ensure emergency vehicle access.

Mayor Flynn acknowledged the large volume of information and requested additional time to review project details, with staff to address concerns raised (odor, safety, canopy compliance, and other questions.)
Motion by Mayor Flynn to continue the Public Hearing to the next meeting to allow staff to address Council’s concerns.
20 11
Seconded by Mayor Pro Tem Royce
Motion carried unanimously 5-0.

8. REPORTS OF OFFICERS None

9. DISCUSSION/ACTION ITEMS

9.1 Consideration of Resolution 2025-136 Recognizing the Fourth Friday of September as California Native American Day
Recommendation: Adopt Resolution 2025-136
Art Vela, Interim City Manager, provided the staff report. Acknowledges BAM on ancestral Serrano and Cahuilla lands. Recognizes the Morongo Band of Mission Indians and their contributions and reaffirms the City’s respect for tribal sovereignty and commitment to cultural awareness.

Mayor Flynn opened public comments.

No public comments.

Mayor Flynn closed public comments.

Motion by Mayor Pro Tem to adopt Resolution 2025-136.

Seconded by Council Member Miller
Motion carried unanimously 5-0.

10. ITEMS FOR FUTURE AGENDAS

11.1 NEW ITEMS

1. Workshop to discuss homelessness (Royce)

11.2 EXISTING ITEMS

1. Animal Control Facility Assessment (Flynn)

2. Contractor(s) to do Citywide Cleanup (Flynn)

3. Emergency Preparedness (Barrington)

4. Review and Update Council travel Policy (Flynn)

5. Streamline Procurement Policy (Flynn)

6. Comp. & Class Salaries (Royce)

7. LMD Alternative Sources (Royce)

8. Community Garden, Sun Lakes (Flynn)

11. ADJOURNMENT
A motion to adjourn the meeting was made by Mayor Pro Tem Royce, seconded by Council Member Miller. Motion carried unanimously 5-0, and the meeting was adjourned at 9:32 p.m.

Minutes prepared by:

Sandra B. Calderon
Acting Administrative City Clerk
These minutes have been prepared as Summary Minutes in accordance with City Council Resolution 2025- 22 and Government Code Sections 36814, 40801, and 54953(c)(2).

The entire discussion of this meeting may be viewed here:
https://banningca.granicus.com/player/clip/240?view_id=1&redirect=true 21 From: K kdi
To: Arturo Vela; Richard Royce; Leroy Miller; Colleen Wallace; Sandra Calderon Subject: Subject: Public Safety & Enforcement – August 2025 Summary Date: Sunday, September 21, 2025 1:12:01 PM
PLEASE ADD TO AGENDA MEETING as CITIZENS LETTERS to
become part of permanent record Thank You
To: City Council, City Manager
Dear Councilmembers,
I am sharing a summary of Banning’s August 2025 public safety and enforcement reports. This information is taken directly from city documents.

Key Findings: Violent crime low. Assaults most common. Rape rare.

Robbery rare. Burglary down. Auto theft down. Larceny steady. Police handled 3,987 incidents in August. Many incidents related to DUI, transient activity, service needs. Clearance rate 49%. Half unresolved. Code Enforcement: NOVs up. Citations up. Resolutions down. Fee collections down 80%. Violations identified not fixed. Fines unpaid. Fire & Mutual Aid: Banning received 314 units. Banning provided 202 units. Response times strong. Reliance on outside help significant.

Red Flags: Assault counts differ (18 vs 22). Burglary down 70%, auto theft down 50% — drop may reflect reclassification not real decline. Code Enforcement issuing more violations but not resolving, not collecting.

Incident totals include non-crimes. Residents still perceive danger.

Simple Visual: Code Enforcement YTD vs 2024 → NOVs up 988%, Fee Collections down 80%. Enforcement increasing. Resolution decreasing.

Why This Matters: Residents deserve accurate numbers. Violations unresolved. Fines unpaid. Outside fire support required. Transparency needed. Calls, reports, state verified counts. Trust improves with clarity.

Respectfully,
Kathy Aranda
Exhibit 1
22 From: K kdi
To: Arturo Vela; Richard Royce; Leroy Miller; Cynthia Barrington; Colleen Wallace; Sandra Calderon Subject: Subject: Red Flags – Cannabis Project at 200 John St. (PLN 24-0107, Sept. 23 Council Hearing) Date: Sunday, September 21, 2025 8:14:27 PM
PLAESE ADD THIS EMAIL AS opposed to this project in agenda responses
Dear Councilmembers,
The proposed cannabis project at 200 John Street (PLN 24-0107) carries multiple red flags that must be addressed before approval.

Red Flags Identified
Weak CEQA Review – City is approving under a Class 1 exemption.

This shortcut ignores cannabis-specific impacts like odor, heavy water use, and high electricity demand. This creates legal vulnerability to CEQA lawsuits.

Landlocked Site – The property depends on a new easement at Galleher Way for access. Without a recorded and permanent easement, the facility is effectively landlocked and non-operational.

Odor Enforcement Loophole – Approval allows cultivation with only filtration systems and quarterly reporting. The CUP can be reopened if 3 odor complaints in 90 days occur. That is reactive enforcement and puts the burden on residents, not the operator.

Safety Approvals Deferred – Key protections like fire sprinklers, CO₂ enrichment safety, alarms, and hazardous materials handling are not approved yet. Council would be granting the CUP while life-safety requirements are still “to be determined.”
Utility Strain – Requires a 1200A electrical panel and 500 KVA transformer plus six 1,000-gallon water tanks. No renewable energy offsets are included. This is a major new burden on BEU and City water systems.

Parking & Traffic Risk – Only 11 parking spaces provided.

Emergency fire access is through a gated easement. Industrial neighbors already raised concerns about traffic conflicts and Exhibit 2
23 congestion.

No Retail Benefit – This is cultivation only, meaning no sales tax revenue. The City takes on enforcement and oversight costs but receives limited financial benefit.

Divided Commission & Strong Opposition – Planning Commission’s first vote failed (2–2–1), and the final approval was only 3–2.

Residents testified about odor from other sites, a past marijuana raid at this address, high water demand, and lack of enforcement.

Critical Point – Council is being asked to approve this CUP with major safeguards still unresolved, legal access not guaranteed, and community impacts not fully addressed. This is not good governance and leaves both residents and the City exposed.

Bottom Line:

This project has too many unresolved risks: legal, safety, infrastructure, and community impact. Moving forward without stronger safeguards puts the City and residents at risk.

Thank you
Kathy Aranda
24 1
Minutes

CITY COUNCIL - SPECIAL MEETING (CLOSED SESSION)

CITY OF BANNING, CALIFORNIA
October 3, 2025 Council Chambers
5:00 p.m. 99 E. Ramsey Street
In Chambers Banning, CA 92220
The following information comprises the minutes for the special meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.

1. CALL TO ORDER
COUNCIL MEMBERS PRESENT: Council Member Cynthia Barrington Mayor Sheri Flynn
Council Member Leroy Miller
Mayor Pro Tem Richard Royce
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: John O. Pinkney, City Attorney
Arturo Vela, Interim City Manager
Sandra Calderon, Acting Administrative City Clerk

2. PUBLIC COMMENTS - Agenda Items Only
No public comments.

3. CLOSED SESSION

3.1 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1) - Three (3) Cases

1. Sun Lakes Highlands v. City of Banning et.al Case No. 5:24-Cv-02603-dtb

2. Workers Compensation Case No. 1080-WC-22-0000019, Michael Loader.

3. Two Brothers 14 Corporation Inc v. City of Banning et.al Case No. CVR12406468

3.2 CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Pursuant to Government Code Sections 54956.9(d)(2), (3) and/or (4). Two potential cases.

3.3 PUBLIC EMPLOYMENT/EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957. Title: City Manager.

The City Council recessed into Closed Session at 5:01 p.m.

Mayor Flynn recused herself from item 3.1.1 because she was personally named on this lawsuit.

Art Vela, Interim City Manager recused himself from item 3.3. 25 2
The City Council reconvened in open session at 8:27 p.m.

City Attorney reported on the Closed Session items as follows:
• Item 3.1 - Conference with Legal Counsel – Existing Litigation (Three Cases): No reportable action taken.
• Item 3.2 Conference with Legal Counsel – Anticipated Litigation (Two Potential Cases): No reportable action taken.
• Item 3.3 – Public Employment/Employee Appointment – City Manager: No reportable action taken.

4. ADJOURNMENT
A motion to adjourn the meeting was made by Mayor Pro Tem Royce, seconded by Council Member Miller. Motion carried unanimously 5-0, and the meeting was adjourned at 8:27 p.m.

Minutes prepared by:

The entire discussion of this meeting may be viewed here:
https://banningca.granicus.com/player/clip/241?view_id=1&redirect=true 26 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Austin Flint,
Michelle Green, Interim Finance Director
MEETING DATE: October 14, 2025
SUBJECT: Receive and File Cash and Investments Report for the Month of August 2025
RECOMMENDATION:

That City Council receive and file Cash and Investment Report for August 2025, in accordance with California Government Code 53646.

BACKGROUND:

The City’s investment portfolio is compliant with its Investment Policy and Pooled Cash is expected to meet all disbursement requirements for the next six months.

JUSTIFICATION:

UNRESTRICTED CASH AND INVESTMENTS:

Cash & Investments July 2025 August 2025
Funds under Control of the City:

Petty Cash / Cash on Hand $4,055.00 $4,055.00
Sub-Total $4,055.00 $4,055.00
Checking and Savings:

Wells Fargo - General Account - XXXXX5798 $1,242,229.89 $2,344,376.94 HCN Bank - General Account - XXXXX97479 $50,000.00 $50,000.00 HCN Bank - Parking Citations - XXXXX94035 $58.00 $68.00 Bank of America - Parking Citations - XXXXXX8776 $146,590.08 $146,591.32 Bank of America - Airport Visa - XXXXXX7548 $636,749.41 $639,172.06 Bank of America - CNG Charge Acct - XXXXXX5594 $79,091.90 $79,091.90 Sub-Total $2,154,719.28 $3,259,300.22
See Investment Report for Details of the following
investments:

State of California, Local Agency Investment Fund $14,955,755.48 $10,855,755.48 % of Investments in LAIF 41% 33%
27 US Bank City of Banning Investment Custody Account
XXXXX6000
$21,793,247.44 $21,855,348.55
Cash and Investments $38,907,777.20 $35,974,459.25
RESTRICTED CASH AND INVESTMENTS:

Cash & Investments July 2025 August 2025
Cash with Fiscal Agents
US Bank
2015 Water Revenue Bonds-BUA Water Projects - 258228005 $905,729.35 $908,620.62 2015 Water Revenue Bonds-BUA Water Projects - 258228000 $6,368.34 $6,388.67 2019 Wastewater Revenue Bond - 254226002 $352,527.52 $352,530.51 2019 Wastewater Revenue Bonds 254226000 $115,053.71 $115,054.69 2019 Wastewater Revenue Bonds - BUA Water Projects -
Previous Balance less amount required for Refunding -
254226006
$2,503,244.29 $2,503,265.55
2019 Wastewater Revenue Bonds - Interest Account -
254226001
$0.21 $0.21
2019 Wastewater Revenue Bonds - Cost of Issuance Fund - 254226005
$1.43 $1.43
2015 Electric Revenue Bond-Acquisition & Construction Fund - 262685003
$2,595.06 $2,603.34
2015 Electric Revenue Bond-Acquisition & Construction Fund - 262685000
$15,789.46 $15,839.86
Successor Agency of the Dissolved Redevelopment Agency of the City of Banning Tax Allocation Bonds Series 2016 (Taxable) Revenue Fund - 277166000
$2.04 $1,796,277.92
Successor Agency of the Dissolved Redevelopment Agency of the City of Banning Tax Allocation Bonds Series 2016 (Taxable) Unexpended Proceeds Fund - 277166005
$7,687,796.75 $7,687,829.40
Improvement Dist No 2004-1 (Fair Oaks Ranch Estates) Limited Obligation Improvement Bonds Series 2005A Interest Acct789582000$0.06 $105,000.06 Improvement Dist No 2004-1 (Fair Oaks Ranch Estates) Limited Obligation Improvement Bonds Series 2005A Principal Acct789582001$0.06 $37,838.81 Improvement Dist No 2004-1 (Fair Oaks Ranch Estates) Limited Obligation Improvement Bonds Series 2005A Reserve Fund789582003$186,063.75 $186,064.54 PERMA Member Trust Account xxx-xxxx-101.12-00 $2,121,258.99 $2,121,258.99 CAISO - City of Banning XXXXX6994 $132,232.28 $132,702.73 City of Banning - XXXXX5920 - Riverside Public Utilities (RPU) $553,448.17 $489,808.36 Cash with Fiscal Agents
US Bank
$14,582,111.47 $16,461,085.69
Restricted Investment in SCPPA Project Stabilization Fund Project Stabilization Fund $1,026,443.62 $1,028,100.24
Total Restricted Cash
and Investments
$15,608,555.09 $17,489,185.93
28 Grand Total Cash
and Investments
$54,516,332.29 $53,463,645.18
BOND RESERVE INSURANCE POLICIES:

Insurance Policy and Purpose Market Value
2015 Electric Revenue Bond-Reserve Fund -
262685002 - Market Value
$2,428,543.76
Successor Agency of the Dissolved Redevelopment
Agency of the City of Banning Tax Allocation Bonds
Series 2016 (Taxable) Reserve Fund- 277166004
Market Value
$2,205,497.50
FISCAL IMPACT:

Not applicable.

I hereby certify that the investment activity for this reporting period conforms with the investment policy adopted by the City of Banning's City Council and the California Government Code Section 53601.

I also certify that there exists adequate pooled cash available to meet the City's disbursement requirements for at least the next six months.

ALTERNATIVES:

Not applicable.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Investment Report August 2025.pdf

2. City of Banning Broker Report August 2025.pdf

3. LAIF Market Valuation August 2025.pdf

4. PMIA-LAIF Performance Report August 2025.pdf
29 Investment Held by Investment Name Investment Type CUSIP Number Standard & Poors Rating Moodys Rating Maturity Duration Par
Market
Yield Market Price Market Value/Accrued Int
Percentage of
Investments
State of California, Local Agency
Investment Fund
City of Banning Pooled Investment N/A N/A N/A $ 10,855,755.48 4.251 100.119831 $ 10,868,764.04 33.2% Successor Agency Pooled Investment N/A N/A N/A $ - 4.251 100.119831 $ - 0.0% $ 10,855,755.48 $ 10,868,764.04 33.2%
US Bank- Broker Chandler Asset
Management
Government Agencies
Total ABS Asset-Backed Securities Various AAA Aaa 0.87 $ 540,919.36 4.040 101.05263 $ 546,613.24 1.65% Total Agency Federal Agencies 3130ARF55 AA+ Aa1 1.51 $ 3,000,000.00 3.820 98.15266 $ 2,944,579.80 9.2% Total Cash Cash and Equivalents CCYUSD AAA Aaa 0.00 $ 1,934.91 0.000 100.00 $ 1,934.91 0.0% Total Commercial Paper Paper 62479LL78 NA A-1 0.18 $ - 5.500 99.497 $ - 0.0% Total Corporate Corporate Various AA-/A-/A Aa2/A1/A2/A3 0.41 $ 2,265,000.00 4.200 99.73602 $ 2,259,020.85 6.9% Total Money Market Money Market/Mutual Funds 31846V401 AAAm Aaa 0.00 $ 57,494.28 3.760 100.00 $ 57,494.28 0.2% Total US Treasury US Treasuries Various A-1+/AA+ P-1/Aa1 0.06 $ 15,990,000.00 4.290 99.91904 $ 15,977,054.50 48.9% $ 21,855,348.55 $ 21,786,697.58 66.8%
Total Investments $ 32,711,104.03 $ 32,655,461.62 100.0% City of Banning
Report of Investments
August 2025
30 MONTHLY ACCOUNT STATEMENT
City of Banning | Account #11089 | As of August 31, 2025 CHANDLER ASSET MANAGEMENT | chandlerasset.com
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Custodian:

PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Performance Review
Account Summary
Maturity Distribution
Top Issuers
Credit Quality (S&P)
Total Rate of Return** 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS Since Inception (07/01/23)
City of Banning 0.46% 1.15% 3.09% 4.65% 5.30% -- -- -- 5.21% Benchmark Return 0.46% 1.14% 2.85% 4.50% 4.99% -- -- -- 4.95% Average Modified Duration 0.31
Average Coupon 1.26%
Average Purchase YTM 4.13%
Average Market YTM 4.21%
Average Credit Quality* AA+
Average Final Maturity 0.36
Average Life 0.32
End Values as of
07/31/2025
End Values as of
08/31/2025
Market Value 21,693,013.68 21,786,698.35
Accrued Interest 71,965.99 78,043.73
Total Market Value 21,764,979.67 21,864,742.08
Income Earned 68,033.10 82,793.87
Cont/WD 0.00 0.00
Par 21,793,247.44 21,855,348.55
Book Value 21,762,843.56 21,832,330.71
Cost Value 21,696,599.41 21,768,751.02
Government of The United States 73.33%
Federal Home Loan Banks 13.52%
Exxon Mobil Corporation 2.28%
Simon Property Group, Inc. 1.26%
Air Products and Chemicals, Inc. 1.26%
The Toronto-Dominion Bank 1.20%
Deere & Company 1.19%
JPMorgan Chase & Co. 1.16%
**Periods over 1 year are annualized.

Benchmark: ICE BofA 0-1 Year US Treasury Notes & Bonds Secondary Benchmark:
*The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 32 CONFIDENTIAL | 3
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 100.0 0.0 Compliant
Max % Issuer (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 2.5 Compliant
Max % Issuer (MV) 5.0 1.0 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS)
Max % (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED BANK DEPOSITS
Max Maturity (Years) 5.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 10.4 Compliant
Max % Issuer (MV) 5.0 2.3 Compliant
Max Maturity (Years) 5 1 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
33 CONFIDENTIAL | 4
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE CD/
TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 13.5 Compliant
Max % Issuer (MV) 30.0 13.5 Compliant
Max Callables (MV) 20.0 13.5 Compliant
Max Maturity (Years) 5 1 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.3 Compliant
Max % Issuer (MV) 20.0 0.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
34 CONFIDENTIAL | 5
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 73.3 Compliant
Max Maturity (Years) 5 0.0 Compliant
35 CONFIDENTIAL | 6
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

RECONCILIATION SUMMARY
Accrual Activity Summary
Fair Market Activity Summary
Month to Date Fiscal Year to Date
(07/01/2025)
Beginning Book Value 21,762,843.56 21,683,876.68
Maturities/Calls (13,665,000.00) (26,475,000.00)
Principal Paydowns (22,999.01) (44,233.16)
Purchases 27,419,492.57 53,132,280.73
Sales (13,705,434.86) (26,554,288.48)
Change in Cash, Payables, Receivables (7,228.99) (1,235.97) Amortization/Accretion 50,657.43 90,930.92
Realized Gain (Loss) 0.01 (0.00)
Ending Book Value 21,832,330.71 21,832,330.71
Month to Date Fiscal Year to Date
(07/01/2025)
Beginning Market Value 21,693,013.68 21,622,793.03
Maturities/Calls (13,665,000.00) (26,475,000.00)
Principal Paydowns (22,999.01) (44,233.16)
Purchases 27,419,492.57 53,132,280.73
Sales (13,705,434.86) (26,554,288.48)
Change in Cash, Payables, Receivables (7,228.99) (1,235.97) Amortization/Accretion 50,657.43 90,930.92
Change in Net Unrealized Gain (Loss) 24,197.52 15,451.28 Realized Gain (Loss) 0.01 (0.00)
Ending Market Value 21,786,698.35 21,786,698.35
Maturities / Calls
Month to Date (13,665,000.00)
Fiscal Year to Date (26,475,000.00)
Principal Paydowns
Month to Date (22,999.01)
Fiscal Year to Date (44,233.16)
Purchases
Month to Date 27,419,492.57
Fiscal Year to Date 53,132,280.73
Sales
Month to Date (13,705,434.86)
Fiscal Year to Date (26,554,288.48)
Interest Received
Month to Date 26,058.70
Fiscal Year to Date 58,759.09
Purchased / Sold Interest
Month to Date 0.00
Fiscal Year to Date 0.00
36 CONFIDENTIAL | 7
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
379929AD4 GMALT 2023-3 A3 5.38
11/20/2026 14,371.91 08/08/20235.36%
14,370.19
14,371.27
100.13

4.26%
14,389.96

23.63 0.07%

18.69 NA/AAA
AAA

1.22 0.11
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 25,400.73 07/12/20235.47%
25,396.22
25,398.30
100.69

4.16%
25,575.92

23.16 0.12%
177.62
NA/AAA
AAA

2.49 0.50
47787CAC7 JDOT 2023-C A3 5.48
05/15/2028 166,157.06 09/12/20235.55%
166,145.64
166,150.43
100.98

4.05%
167,792.09
404.68

0.77%
1,641.67
Aaa/NA
AAA

2.71 0.66
36267KAD9 GMCAR 2023-3 A3 5.45
06/16/2028 34,989.67 07/11/20235.51%
34,988.31
34,988.90
100.73

4.23%
35,245.86

79.46 0.16%
256.96
Aaa/AAA
NA

2.79 0.57
02582JKD1 AMXCA 2023-3 A 5.23
09/15/2026 215,000.00 09/12/20235.29%
214,990.39
214,996.67
101.21

4.07%
217,598.68
499.76

1.00%
2,602.02
NA/AAA
AAA

1.04 0.99
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029 85,000.00 01/09/20255.03%
84,993.68
84,994.48
101.19

3.78%
86,010.73
163.63

0.39%
1,016.24
Aaa/NA
AAA

4.30 1.34
Total ABS 540,919.36 5.35%
540,884.43
540,900.04
101.05

4.04%
546,613.24
1,194.30

2.51%
5,713.20

2.25 0.87
AGENCY
3130ARF55 FEDERAL HOME LOAN BANKS 2.6
03/30/2027 3,000,000.00 03/30/20222.60%
3,000,000.00
3,000,000.00

98.15 3.82%
2,944,579.89
32,716.67

13.52%
(55,420.11)
Aa1/AA+
AA+

1.58 1.51
Total Agency 3,000,000.00 2.60%
3,000,000.00
3,000,000.00

98.15 3.82%
2,944,579.89
32,716.67

13.52%
(55,420.11)

1.58 1.51
CASH
CCYUSD Receivable 1,934.91 -- 1,934.91
1,934.91

1.00 0.00%
1,934.91

0.00 0.01%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 1,934.91
1,934.91
1,934.91

1.00 0.00%
1,934.91

0.00 0.01%

0.00 0.00

0.00 CORPORATE
828807CV7 SIMON PROPERTY GROUP LP 3.5
09/01/2025 275,000.00 12/16/20244.65%
272,819.25
275,000.00
100.00

3.50%
275,000.00
4,812.50

1.26%

0.00 A3/A
NA

0.00 0.01
24422EWJ4 JOHN DEERE CAPITAL CORP 4.05
09/08/2025 260,000.00 07/09/20245.06%
257,056.80
259,951.52

99.99 4.49%
259,977.13
5,060.25

1.19%

25.61 A1/A
A+

0.02 0.02
009158BB1 AIR PRODUCTS AND CHEMICALS
INC 1.5 10/15/2025 275,000.00 11/12/20244.51%
267,597.00
274,030.56

99.66 4.38%
274,051.50
1,558.33

1.26%

20.94 A2/A
NA

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
89115A2K7 TORONTO-DOMINION BANK

5.103 01/09/2026 260,000.00 02/24/20254.49%
261,326.00
260,542.08
100.21

4.46%
260,547.81
1,916.46

1.20%

5.74 A2/AAA0.36

0.35 02665WEY3 AMERICAN HONDA FINANCE
CORP 4.95 01/09/2026 220,000.00 03/19/20254.53%
220,712.80
220,314.12
100.19

4.36%
220,424.81
1,573.00

1.01%
110.69
A3/ANA0.36

0.35 30231GAT9 EXXON MOBIL CORP 3.043
03/01/2026 500,000.00 06/08/20234.53%
481,105.00
496,555.90

99.43 4.22%
497,131.29
7,607.50

2.28%
575.39
Aa2/AANA0.50

0.49 693475BB0 PNC FINANCIAL SERVICES
GROUP INC 1.15 08/13/2026 225,000.00 03/19/20254.52%
214,843.50
218,123.00

97.18 4.21%
218,665.80
129.38

1.00%
542.80
A3/AA0.95

0.92 48125LRU8 JPMORGAN CHASE BANK NA

5.11 12/08/2026 250,000.00 10/16/20244.23%
254,312.50
252,483.13
101.29

4.05%
253,222.59
2,945.35

1.16%
739.46
Aa2/AAAA1.27

1.13 Total Corporate 2,265,000.00 4.56%
2,229,772.85
2,257,000.30

99.75 4.20%
2,259,020.92
25,602.77

10.37%
2,020.63

0.44 0.41

MONEY MARKET
FUND
31846V401 FIRST AMER:GVT OBLG D 57,494.28 --

3.76%
57,494.28
57,494.28

1.00 3.76%
57,494.28

0.00 0.26%

0.00 Aaa/
AAAm
AAA

0.00 0.00
Total Money
Market Fund 57,494.28 3.76%
57,494.28
57,494.28

1.00 3.76%
57,494.28

0.00 0.26%

0.00 0.00

0.00 US TREASURY
912797QT7 UNITED STATES TREASURY
09/09/2025 13,750,000.00 --4.33%
13,706,728.61
13,737,006.00

99.92 4.31%
13,738,637.14

0.00 63.06%
1,631.13
P-1/A-1+
F1+

0.02 0.02
91282CFP1 UNITED STATES TREASURY 4.25
10/15/2025 300,000.00 03/12/20254.19%
300,093.75
300,019.10
100.00

4.22%
299,986.33
4,842.21

1.38%
(32.77)
Aa1/AA+
AA+

0.12 0.12
91282CFW6 UNITED STATES TREASURY 4.5
11/15/2025 400,000.00 12/30/20244.24%
400,859.38
400,202.05
100.04

4.22%
400,178.12
5,331.52

1.84%
(23.92)
Aa1/AA+
AA+

0.21 0.20
9128285N6 UNITED STATES TREASURY 2.875
11/30/2025 300,000.00 03/12/20254.18%
297,246.09
299,054.00

99.69 4.15%
299,055.47
2,191.60

1.37%

1.47 Aa1/AA+
AA+

0.25 0.24
91282CGA3 UNITED STATES TREASURY 4.0
12/15/2025 340,000.00 02/10/20254.26%
339,256.25
339,745.62

99.96 4.09%
339,880.47
2,898.36

1.56%
134.85
Aa1/AA+
AA+

0.29 0.28
91282CGE5 UNITED STATES TREASURY 3.875
01/15/2026 500,000.00 06/08/20234.27%
495,136.72
499,304.51

99.91 4.12%
499,525.39
2,527.17

2.29%
220.88
Aa1/AA+
AA+

0.38 0.36
91282CGL9 UNITED STATES TREASURY 4.0
02/15/2026 400,000.00 03/19/20254.18%
399,343.75
399,669.90

99.95 4.11%
399,792.19
739.13

1.84%
122.29
Aa1/AA+
AA+

HOLDINGS REPORT
Cusip Security Description Par Value/
Units
Purchase Date
Purchase Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total US Treasury 15,990,000.00 4.31%
15,938,664.55
15,975,001.19

99.92 4.29%
15,977,055.11
18,530.00

73.33%
2,053.92

0.06 0.06
Total Portfolio 21,855,348.55 4.13%
21,768,751.02
21,832,330.71

99.42 4.21%
21,786,698.35
78,043.73
100.00%
(45,632.37)

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 08/01/2025 31846V401 265,000.00 FIRST AMER:GVT OBLG D 1.000 3.79% (265,000.00) 0.00 (265,000.00) 0.00 Purchase 08/01/2025 31846V401 5,134.38 FIRST AMER:GVT OBLG D 1.000 3.79% (5,134.38) 0.00 (5,134.38) 0.00 Purchase 08/01/2025 31846V401 9,163.90 FIRST AMER:GVT OBLG D 1.000 3.79% (9,163.90) 0.00 (9,163.90) 0.00 Purchase 08/12/2025 31846V401 12,900,000.00 FIRST AMER:GVT OBLG D 1.000 3.76% (12,900,000.00) 0.00 (12,900,000.00) 0.00 Purchase 08/13/2025 912797QT7 13,200,000.00 UNITED STATES TREASURY 09/09/2025 99.681 4.33% (13,157,895.30) 0.00 (13,157,895.30) 0.00 Purchase 08/15/2025 31846V401 8,937.04 FIRST AMER:GVT OBLG D 1.000 3.75% (8,937.04) 0.00 (8,937.04) 0.00 Purchase 08/15/2025 31846V401 13,006.56 FIRST AMER:GVT OBLG D 1.000 3.75% (13,006.56) 0.00 (13,006.56) 0.00 Purchase 08/18/2025 31846V401 3,250.17 FIRST AMER:GVT OBLG D 1.000 3.77% (3,250.17) 0.00 (3,250.17) 0.00 Purchase 08/20/2025 31846V401 5,787.45 FIRST AMER:GVT OBLG D 1.000 3.78% (5,787.45) 0.00 (5,787.45) 0.00 Purchase 08/21/2025 31846V401 500,000.00 FIRST AMER:GVT OBLG D 1.000 3.75% (500,000.00) 0.00 (500,000.00) 0.00 Purchase 08/22/2025 912797QT7 550,000.00 UNITED STATES TREASURY 09/09/2025 99.788 4.31% (548,833.31) 0.00 (548,833.31) 0.00 Purchase 08/25/2025 31846V401 2,484.46 FIRST AMER:GVT OBLG D 1.000 3.76% (2,484.46) 0.00 (2,484.46) 0.00 Total Purchase 27,462,763.96 (27,419,492.57) 0.00 (27,419,492.57) 0.00 TOTAL
ACQUISITIONS 27,462,763.96 (27,419,492.57) 0.00 (27,419,492.57) 0.00

DISPOSITIONS
Maturity 08/01/2025 06051GFS3 (265,000.00) BANK OF AMERICA CORP

3.875 08/01/2025 100.000 4.88% 265,000.00 0.00 265,000.00 0.00 Maturity 08/12/2025 912797QJ9 (12,900,000.00) UNITED STATES TREASURY 08/12/2025 100.000 4.31% 12,900,000.00 0.00 12,900,000.00 0.00 Maturity 08/21/2025 912797PP6 (500,000.00) UNITED STATES TREASURY 08/21/2025 100.000 4.34% 500,000.00 0.00 500,000.00 0.00 Total Maturity (13,665,000.00) 13,665,000.00 0.00 13,665,000.00 0.00 Sale 08/13/2025 31846V401 (13,156,601.55) FIRST AMER:GVT OBLG D 1.000 3.77% 13,156,601.55 0.00 13,156,601.55 0.00 Sale 08/22/2025 31846V401 (548,833.31) FIRST AMER:GVT OBLG D 1.000 3.75% 548,833.31 0.00 548,833.31 0.00 Total Sale (13,705,434.86) 13,705,434.86 0.00 13,705,434.86 0.00 40 CONFIDENTIAL | 11
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
TOTAL
DISPOSITIONS (27,370,434.86) 27,370,434.86 0.00 27,370,434.86 0.00 OTHER

TRANSACTIONS
Coupon 08/01/2025 06051GFS3 0.00 BANK OF AMERICA CORP

3.875 08/01/2025 4.88% 5,134.38 0.00 5,134.38 0.00
Coupon 08/13/2025 693475BB0 0.00

PNC FINANCIAL SERVICES
GROUP INC 1.15
08/13/2026

4.52% 1,293.75 0.00 1,293.75 0.00
Coupon 08/15/2025 47787CAC7 0.00 JDOT 2023-C A3 5.48
05/15/2028 5.55% 814.46 0.00 814.46 0.00
Coupon 08/15/2025 02582JKD1 0.00 AMXCA 2023-3 A 5.23
09/15/2026 5.29% 937.04 0.00 937.04 0.00
Coupon 08/15/2025 91282CGL9 0.00 UNITED STATES TREASURY

4.0 02/15/2026 4.18% 8,000.00 0.00 8,000.00 0.00
Coupon 08/16/2025 36267KAD9 0.00 GMCAR 2023-3 A3 5.45
06/16/2028 5.51% 171.41 0.00 171.41 0.00
Coupon 08/16/2025 362955AD8 0.00 GMCAR 2025-1 A3 4.62
12/17/2029 5.03% 327.25 0.00 327.25 0.00
Coupon 08/20/2025 379929AD4 0.00 GMALT 2023-3 A3 5.38
11/20/2026 5.36% 89.98 0.00 89.98 0.00
Coupon 08/25/2025 05592XAD2 0.00 BMWOT 2023-A A3 5.47
02/25/2028 5.47% 126.53 0.00 126.53 0.00
Total Coupon 0.00 16,894.80 0.00 16,894.80 0.00
Dividend 08/31/2025 31846V401 0.00 FIRST AMER:GVT OBLG D 3.75% 1,934.91 0.00 1,934.91 0.00 Total Dividend 0.00 1,934.91 0.00 1,934.91 0.00
Principal Paydown 08/15/2025 47787CAC7 12,192.10 JDOT 2023-C A3 5.48 05/15/2028 5.55% 12,192.10 -- 12,192.10 0.00
Principal Paydown 08/16/2025 36267KAD9 2,751.51 GMCAR 2023-3 A3 5.45 06/16/2028 5.51% 2,751.51 -- 2,751.51 0.00
Principal Paydown 08/20/2025 379929AD4 5,697.47 GMALT 2023-3 A3 5.38 11/20/2026 5.36% 5,697.47 -- 5,697.47 0.00
41 CONFIDENTIAL | 12
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

TRANSACTION LEDGER
Transaction Type Settlement
Date CUSIP Quantity Security Description Price
Acq/
Disp
Yield
Amount Interest Pur/
Sold Total Amount Gain/Loss
Principal Paydown 08/25/2025 05592XAD2 2,357.93 BMWOT 2023-A A3 5.47 02/25/2028 5.47% 2,357.93 -- 2,357.93 0.00
Total Principal
Paydown 22,999.01 22,999.01 -- 22,999.01 0.01

INCOME EARNED
Cusip Security Description
Trade Date
Settle Date
Units
Book Value: Begin
Book Value: Acq
Book Value: Disp
Book Value: End
Prior Accrued
Inc. Received
Ending Accrued
Total Interest
Accr. Of Discount
Amort. Of Premium
Net Accret/Amort
Income Earned
Total Income

CASH & EQUIVALENTS
31846V401 FIRST AMER:GVT OBLG D
57,494.28
50,165.18
13,712,763.96
(13,705,434.86)
57,494.28

0.00 9,163.90

0.00 0.00

0.00 9,163.90
9,163.90
912797QJ9 UNITED STATES TREASURY
08/12/2025 0.00
12,883,293.69

0.00 (12,900,000.00)

0.00 0.00

0.00 16,706.31

0.00 16,706.31
16,706.31
16,706.31
912797QT7 UNITED STATES TREASURY
09/09/2025 13,750,000.00

0.00 13,706,728.61

0.00 13,737,006.00

0.00 0.00

0.00 0.00
30,277.39

0.00 30,277.39
30,277.39
30,277.39
CCYUSD Receivable
1,934.91
9,163.90

0.00 0.00
1,934.91

0.00 0.00

0.00 Total Cash & Equivalents 13,809,429.19
12,942,622.77
27,419,492.57
(26,605,434.86)
13,796,435.19

0.00 9,163.90

0.00 9,163.90
46,983.70

0.00 46,983.70
56,147.60 56,147.60

FIXED INCOME
009158BB1

AIR PRODUCTS AND
CHEMICALS INC 1.5
10/15/2025
11/12/2024
11/13/2024
275,000.00
273,347.54

0.00 0.00
274,030.56
1,214.58

0.00 1,558.33
343.75
683.01

0.00 683.01
1,026.76
1,026.76
02582JKD1 AMXCA 2023-3 A 5.23
09/15/2026
09/12/2023
09/19/2023
215,000.00
214,996.39

0.00 0.00
214,996.67
499.76
937.04
499.76
937.04

0.27 0.00

0.27 937.31
937.31
02665WEY3 AMERICAN HONDA FINANCE
CORP 4.95 01/09/2026
03/19/2025
03/20/2025
220,000.00
220,389.02

0.00 0.00
220,314.12
665.50

0.00 1,573.00
907.50

0.00 (2,357.93)
25,398.30

25.31 126.53

23.16 124.38

0.32 0.00

0.32 124.70
124.70
06051GFS3 BANK OF AMERICA CORP

3.875 08/01/2025
08/12/2024
08/13/2024

0.00 265,000.00

0.00 (265,000.00)

0.00 5,134.38
5,134.38

0.00 0.01

0.00 0.00

0.00 0.01

0.01 24422EWJ4 JOHN DEERE CAPITAL CORP

4.05 09/08/2025
07/09/2024
07/10/2024
260,000.00
259,736.84

0.00 0.00
259,951.52
4,182.75

0.00 5,060.25
877.50
214.68

0.00 214.68
1,092.18
1,092.18
30231GAT9 EXXON MOBIL CORP 3.043
03/01/2026
06/08/2023
06/12/2023
500,000.00
495,966.02

0.00 0.00
496,555.90
6,339.58

0.00 7,607.50
1,267.92
589.87

0.00 589.87
1,857.79
1,857.79
3130ARF55 FEDERAL HOME LOAN BANKS

2.6 03/30/2027
03/30/2022
03/30/2022
3,000,000.00
3,000,000.00

0.00 0.00
3,000,000.00
26,216.67

0.00 32,716.67
6,500.00

0.00 0.00

0.00 6,500.00
6,500.00
36267KAD9 GMCAR 2023-3 A3 5.45
06/16/2028
07/11/2023
07/19/2023
34,989.67
37,740.32

0.00 (2,751.51)
34,988.90

85.70 171.41

79.46 165.16

0.09 0.00

0.09 165.25
165.25
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029
01/09/2025
01/15/2025
85,000.00
84,994.38

0.00 0.00
84,994.48
163.63
327.25
163.63
327.25

0.11 0.00

0.11 327.36
327.36
379929AD4 GMALT 2023-3 A3 5.38
11/20/2026
08/08/2023
08/11/2023
14,371.91
20,068.42

0.00 (5,697.47)
14,371.27

32.99 89.98

23.63 80.61

0.32 0.00

0.32 80.93

80.93 47787CAC7 JDOT 2023-C A3 5.48
05/15/2028
09/12/2023
09/19/2023
166,157.06
178,341.81

0.00 (12,192.10)
166,150.43
434.38
814.46
404.68
784.77

0.71 0.00

5.11 12/08/2026
10/16/2024
10/17/2024
250,000.00
252,660.90

0.00 0.00
252,483.13
1,880.76

0.00 2,945.35
1,064.58

0.00 (177.78)
(177.78)
886.81
886.81
693475BB0 PNC FINANCIAL SERVICES
GROUP INC 1.15 08/13/2026
03/19/2025
03/20/2025
225,000.00
217,506.85

0.00 0.00
218,123.00
1,207.50
1,293.75
129.38
215.63
616.15

0.00 616.15
831.77
831.77
828807CV7 SIMON PROPERTY GROUP LP

3.5 09/01/2025
12/16/2024
12/17/2024
275,000.00
274,737.97

0.00 0.00
275,000.00
4,010.42

0.00 4,812.50
802.08
262.03

0.00 262.03
1,064.11
1,064.11
89115A2K7 TORONTO-DOMINION BANK

5.103 01/09/2026
02/24/2025
02/25/2025
260,000.00
260,671.34

0.00 0.00
260,542.08
810.81

0.00 1,916.46
1,105.65

0.00 (129.26)
(129.26)
976.39
976.39
912797PP6 UNITED STATES TREASURY
08/21/2025
02/24/2025
02/25/2025

0.00 498,835.67

0.00 (500,000.00)

0.00 0.00

0.00 1,164.33

0.00 1,164.33
1,164.33
1,164.33
9128285N6 UNITED STATES TREASURY

2.875 11/30/2025
03/12/2025
03/13/2025
300,000.00
298,728.16

0.00 0.00
299,054.00
1,461.07

0.00 2,191.60
730.53
325.84

0.00 325.84
1,056.38
1,056.38
91282CFP1 UNITED STATES TREASURY

4.25 10/15/2025
03/12/2025
03/13/2025
300,000.00
300,032.55

0.00 0.00
300,019.10
3,762.30

0.00 4,842.21
1,079.92

0.00 (13.45)
(13.45)
1,066.46
1,066.46
91282CFW6 UNITED STATES TREASURY 4.5
11/15/2025
12/30/2024
12/31/2024
400,000.00
400,285.56

0.00 0.00
400,202.05
3,815.22

0.00 5,331.52
1,516.30

0.00 (83.51)
(83.51)
1,432.79
1,432.79
91282CGA3 UNITED STATES TREASURY 4.0
12/15/2025
02/10/2025
02/11/2025
340,000.00
339,670.52

0.00 0.00
339,745.62
1,746.45

0.00 2,898.36
1,151.91

75.10 0.00

3.875 01/15/2026
06/08/2023
06/09/2023
500,000.00
499,145.98

0.00 0.00
499,304.51
895.04

0.00 2,527.17
1,632.13
158.53

0.00 158.53
1,790.66
1,790.66
91282CGL9 UNITED STATES TREASURY 4.0
02/15/2026
03/19/2025
03/20/2025
400,000.00
399,608.62

0.00 0.00
399,669.90
7,381.22
8,000.00
739.13
1,357.91

61.28 0.00

61.28 1,419.19
1,419.19
Total Fixed Income 8,045,919.36
8,820,220.79

0.00 (787,999.00)
8,035,895.52
71,965.99
16,894.80
78,043.73
22,972.54
4,152.64
(478.91)
3,673.73
26,646.27 26,646.27
TOTAL PORTFOLIO 21,855,348.55
21,762,843.56
27,419,492.57
(27,393,433.86)
21,832,330.71
71,965.99
26,058.70
78,043.73
32,136.44
51,136.34
(478.91)
50,657.43
82,793.87 82,793.87
46 CONFIDENTIAL | 17
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

CASH FLOW REPORT
Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount SEPTEMBER 2025
09/08/2025 Coupon 24422EWJ4 260,000.00 JOHN DEERE CAPITAL CORP 4.05 09/08/2025 5,265.00 5,265.00 09/08/2025 Final Maturity 24422EWJ4 260,000.00 JOHN DEERE CAPITAL CORP 4.05 09/08/2025 260,000.00 260,000.00 09/09/2025 Final Maturity 912797QT7 13,750,000.00 UNITED STATES TREASURY 09/09/2025 13,750,000.00 13,750,000.00 09/15/2025 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 09/15/2025 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 758.78 758.78 09/15/2025 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 7,732.83 7,732.83 09/16/2025 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 162.67 162.67 09/16/2025 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 2,337.49 2,337.49 09/16/2025 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 09/22/2025 Coupon 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 64.43 64.43 09/22/2025 Principal Paydown 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 5,600.80 5,600.80 09/25/2025 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 117.64 117.64 09/25/2025 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 2,066.04 2,066.04 09/30/2025 Coupon 3130ARF55 3,000,000.00 FEDERAL HOME LOAN BANKS 2.6 03/30/2027 39,000.00 39,000.00 September 2025
Total 14,027,737.16 46,632.82 14,074,369.98
OCTOBER 2025
10/15/2025 Coupon 009158BB1 275,000.00 AIR PRODUCTS AND CHEMICALS INC 1.5 10/15/2025 2,062.50 2,062.50
10/15/2025 Final Maturity 009158BB1 275,000.00 AIR PRODUCTS AND CHEMICALS INC 1.5 10/15/2025 275,000.00 275,000.00
10/15/2025 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 10/15/2025 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 723.47 723.47 10/15/2025 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 9,565.19 9,565.19 10/15/2025 Coupon 91282CFP1 300,000.00 UNITED STATES TREASURY 4.25 10/15/2025 6,375.00 6,375.00 10/15/2025 Final Maturity 91282CFP1 300,000.00 UNITED STATES TREASURY 4.25 10/15/2025 300,000.00 300,000.00 10/16/2025 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 152.06 152.06 10/16/2025 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 2,239.80 2,239.80 10/16/2025 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 10/20/2025 Coupon 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 39.32 39.32 10/20/2025 Principal Paydown 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 5,244.58 5,244.58 47 CONFIDENTIAL | 18
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

CASH FLOW REPORT
Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 10/27/2025 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 108.22 108.22 10/27/2025 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,985.97 1,985.97 October 2025 Total 594,035.55 10,724.86 604,760.41
NOVEMBER 2025
11/17/2025 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 11/17/2025 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 141.88 141.88 11/17/2025 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 2,188.92 2,188.92 11/17/2025 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 11/17/2025 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 679.79 679.79 11/17/2025 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 10,381.03 10,381.03 11/17/2025 Coupon 91282CFW6 400,000.00 UNITED STATES TREASURY 4.5 11/15/2025 9,000.00 9,000.00 11/17/2025 Final Maturity 91282CFW6 400,000.00 UNITED STATES TREASURY 4.5 11/15/2025 400,000.00 400,000.00 11/20/2025 Coupon 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 15.81 15.81 11/20/2025 Effective Maturity 379929AD4 14,371.91 GMALT 2023-3 A3 5.38 11/20/2026 3,526.53 3,526.53 11/25/2025 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 99.17 99.17 11/25/2025 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,827.26 1,827.26 November 2025
Total 417,923.74 11,200.94 429,124.68
DECEMBER 2025
12/01/2025 Coupon 9128285N6 300,000.00 UNITED STATES TREASURY 2.875 11/30/2025 4,312.50 4,312.50 12/01/2025 Final Maturity 9128285N6 300,000.00 UNITED STATES TREASURY 2.875 11/30/2025 300,000.00 300,000.00 12/08/2025 Coupon 48125LRU8 250,000.00 JPMORGAN CHASE BANK NA 5.11 12/08/2026 6,387.50 6,387.50 12/15/2025 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 12/15/2025 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 632.38 632.38 12/15/2025 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 7,819.97 7,819.97 12/15/2025 Coupon 91282CGA3 340,000.00 UNITED STATES TREASURY 4.0 12/15/2025 6,800.00 6,800.00 12/15/2025 Final Maturity 91282CGA3 340,000.00 UNITED STATES TREASURY 4.0 12/15/2025 340,000.00 340,000.00 12/16/2025 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 131.94 131.94 12/16/2025 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,877.52 1,877.52 12/16/2025 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 12/25/2025 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 90.84 90.84 12/25/2025 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,737.60 1,737.60 48 CONFIDENTIAL | 19
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

CASH FLOW REPORT
Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount December 2025
Total 651,435.09 19,619.45 671,054.54
JANUARY 2026
01/09/2026 Coupon 02665WEY3 220,000.00 AMERICAN HONDA FINANCE CORP 4.95 01/09/2026 5,445.00 5,445.00
01/09/2026 Final Maturity 02665WEY3 220,000.00 AMERICAN HONDA FINANCE CORP 4.95 01/09/2026 220,000.00 220,000.00
01/09/2026 Coupon 89115A2K7 260,000.00 TORONTO-DOMINION BANK 5.103 01/09/2026 6,633.90 6,633.90 01/09/2026 Final Maturity 89115A2K7 260,000.00 TORONTO-DOMINION BANK 5.103 01/09/2026 260,000.00 260,000.00 01/15/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 01/15/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 596.67 596.67 01/15/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 11,316.15 11,316.15 01/15/2026 Coupon 91282CGE5 500,000.00 UNITED STATES TREASURY 3.875 01/15/2026 9,687.50 9,687.50 01/15/2026 Final Maturity 91282CGE5 500,000.00 UNITED STATES TREASURY 3.875 01/15/2026 500,000.00 500,000.00 01/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 123.41 123.41 01/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,844.31 1,844.31 01/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 01/26/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 82.92 82.92 01/26/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,704.40 1,704.40 January 2026 Total 994,864.87 23,833.69 1,018,698.56
FEBRUARY 2026
02/13/2026 Coupon 693475BB0 225,000.00 PNC FINANCIAL SERVICES GROUP INC 1.15 08/13/2026 1,293.75 1,293.75
02/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 115.04 115.04 02/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,823.48 1,823.48 02/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 02/16/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 544.99 544.99 02/16/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 10,300.98 10,300.98 02/17/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 02/17/2026 Coupon 91282CGL9 400,000.00 UNITED STATES TREASURY 4.0 02/15/2026 8,000.00 8,000.00 02/17/2026 Final Maturity 91282CGL9 400,000.00 UNITED STATES TREASURY 4.0 02/15/2026 400,000.00 400,000.00 02/25/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 75.15 75.15 49 CONFIDENTIAL | 20
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

CASH FLOW REPORT
Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 02/25/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,679.63 1,679.63 February 2026
Total 413,804.10 11,293.22 425,097.32
MARCH 2026
03/02/2026 Coupon 30231GAT9 500,000.00 EXXON MOBIL CORP 3.043 03/01/2026 7,607.50 7,607.50 03/02/2026 Final Maturity 30231GAT9 500,000.00 EXXON MOBIL CORP 3.043 03/01/2026 500,000.00 500,000.00 03/16/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 03/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 106.76 106.76 03/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,766.71 1,766.71 03/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 03/16/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 497.95 497.95 03/16/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 8,500.35 8,500.35 03/25/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 67.49 67.49 03/25/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,636.52 1,636.52 03/30/2026 Coupon 3130ARF55 3,000,000.00 FEDERAL HOME LOAN BANKS 2.6 03/30/2027 39,000.00 39,000.00 March 2026 Total 511,903.58 48,543.99 560,447.57
APRIL 2026
04/15/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 04/15/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 459.14 459.14 04/15/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 10,673.89 10,673.89 04/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 98.73 98.73 04/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,851.45 1,851.45 04/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 04/27/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 60.03 60.03 04/27/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,579.42 1,579.42 April 2026 Total 14,104.76 1,882.19 15,986.95
MAY 2026
05/15/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 05/15/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 410.39 410.39 05/15/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 11,053.02 11,053.02 05/18/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 90.32 90.32 05/18/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,775.88 1,775.88 50 CONFIDENTIAL | 21
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

CASH FLOW REPORT
Payment Date Transaction Type CUSIP Quantity Security Description Principal Amount Income Total Amount 05/18/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 05/25/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 52.83 52.83 05/25/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,380.59 1,380.59 May 2026 Total 14,209.49 1,817.84 16,027.33
JUNE 2026
06/08/2026 Coupon 48125LRU8 250,000.00 JPMORGAN CHASE BANK NA 5.11 12/08/2026 6,387.50 6,387.50 06/15/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 06/15/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 359.92 359.92 06/15/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 9,546.90 9,546.90 06/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 82.26 82.26 06/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,746.91 1,746.91 06/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 06/25/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 46.54 46.54 06/25/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,357.27 1,357.27 June 2026 Total 12,651.08 8,140.50 20,791.58
JULY 2026
07/15/2026 Coupon 02582JKD1 215,000.00 AMXCA 2023-3 A 5.23 09/15/2026 937.04 937.04 07/15/2026 Coupon 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 316.32 316.32 07/15/2026 Principal Paydown 47787CAC7 166,157.06 JDOT 2023-C A3 5.48 05/15/2028 10,001.12 10,001.12 07/16/2026 Coupon 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 74.32 74.32 07/16/2026 Principal Paydown 36267KAD9 34,989.67 GMCAR 2023-3 A3 5.45 06/16/2028 1,713.21 1,713.21 07/16/2026 Coupon 362955AD8 85,000.00 GMCAR 2025-1 A3 4.62 12/17/2029 327.25 327.25 07/27/2026 Coupon 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 40.35 40.35 07/27/2026 Principal Paydown 05592XAD2 25,400.73 BMWOT 2023-A A3 5.47 02/25/2028 1,331.15 1,331.15 July 2026 Total 13,045.49 1,695.29 14,740.77
Grand Total 36,355,275.40 17,665,714.90 185,384.80 17,851,099.69 51 CONFIDENTIAL | 22
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

IMPORTANT DISCLOSURES
Chandler Asset Management, Inc. (“Chandler”) is an SEC registered investment adviser. For additional information about our firm, please see our current disclosures (Form ADV).

To obtain a copy of our current disclosures, you may contact your client service representative by calling the number on the front of this statement or you may visit our website at www.chandlerasset.com.

Information contained in this monthly statement is confidential and is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of this statement, but may become outdated or superseded at any time without notice.

Custody: Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.

Valuation: Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance: Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN “AS IS” BASIS; ICE, ITS AFFILIATES AND

THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM.

NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN “AS IS” BASIS AND LICENSEE’S USE IS AT LICENSEE’S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR RECOMMEND CHANDLER, OR ANY OF ITS PRODUCTS OR SERVICES.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Ratings: Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 52 CONFIDENTIAL | 23
City of Banning | Account #11089 | As of August 31, 2025 Execution Time: 09/03/2025 10:36:11 PM Chandler Asset Management | [email protected] | www.chandlerasset.com | 800.317.4747

BENCHMARK INDEX & DISCLOSURES
Benchmark Disclosure
ICE BofA 0-1 Yr US Treasury Index
The ICE BAML 0-1 Year US Treasury Index tracks the performance of US Dollar denominated Sovereign debt publically issued by the US government in its domestic market with maturities less than two years. Qualifying securities must haveat least one month and less than one years remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion. (Index: G0QA.

Please visit www.mlindex.ml.com for more information)
53 54
55 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer MEETING DATE: October 14, 2025
SUBJECT: Accept as Complete Various Improvements Related to the Atwell Specific Plan Development and Authorize 90% Reduction of the Improvement Bonds and Full Exoneration of Monument Bonds RECOMMENDATION:

Accept as complete various improvements related to the Atwell Specific Plan development and authorize 90% Reduction of the improvement bonds and full exoneration of monument bonds BACKGROUND:

City Council adopted Resolution 2024-77 on May 28th, 2024 that approved Final Tract Maps 37388-4, 37388-5, and 37388-6 for recordation, authorized staff to sign the Subdivision Improvement Agreement, and accept Labor and Material Bonds for public improvements. These improvements were required under project conditions of approval. The improvements are related to the Atwell Development Planning Areas 14-1, 16A-1, 16B-1. The storm drain system in these planning areas have been fully developed in accordance with the approved Final Map.

JUSTIFICATION:

Staff has verified through inspections that the required public improvements were completed per City standards and specifications and recommends that City Council accept the improvements as complete and authorize the 90% bond exoneration for the following bonds:

BOND NUMBER IMPROVEMENT
30219397
PA14-1, PA16A-1, PA16B-1 Storm Drain
Improvements
Additionally, staff has verified through inspections that the required monumentation was completed per City standards and specifications and recommends that City Council accept the monumentation as complete and authorize the full 100% exoneration of the following bonds:

BOND NUMBER IMPROVEMENT
30200448 37388-1 Monumentation
FISCAL IMPACT:

After the 1-year warranty period, the City of Banning will fully assume ownership and maintenance of the public facilities constructed.
56 ALTERNATIVES:

Do not accept the improvement and provide direction to staff.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. TR37388-4, -5, -6 SD Bond Release Exhibit.pdf
57 HIGHLAND HOME ROAD

SCE CORRIDOR

MEADOWLINE WAY
PA 37 PA 36
PA 35B
PA 15B
PA
32 PA
33 PA 15A
PA 21(A)
PA 21(B)
PA 16B-1
PA 16A-2
PA 48B
PA 14-1
PA 9C
PA 10
PA 13
PA 7
PA 6
PA 11
PA 16B-2
PA 16A-1
PA 14-2
LEGEND:

PHASE 2B-2 STORM DRAIN

EUREKA AVENUE

LANE TAMARACK

SEQUOIA PLACE HACKBERRY
PLACE

DOUGLAS AVENUE

RAINTREE PLACE

CAROB PLACE

LANE CH BEE

GUAVA LANE

WOOD DOG PLACE
POPLAR
LANE
CORK
PLACE

APEX STREET

BAYWOOD LANE
PHASE 2B-2 EXHIBIT
58 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Marisol Lopez, Economic Development Manager Marisol Lopez, Economic Development Manager
MEETING DATE: October 14, 2025
SUBJECT: Consideration of Second Reading and Adoption of Ordinance 1608, Amending Chapter 5.40 of the Banning Municipal Code Concerning Film Permits and Regulations with changes that city council requested to be added to the ordinance.

RECOMMENDATION:

Conduct second reading and adopt Ordinance 1608.

BACKGROUND:

The City of Banning has an existing film ordinance which has not been updated since 1965; it was therefore necessary to update and modify the ordinance to reflect the latest changes in the industry which include the rise of streaming services, the impact of technology such as drones, the internet and social media.

In December 2024, city staff reached out to the California Film Commission to review the draft ordinance.

On January 15, 2025, the Film Commission responded with comments and suggestions (attached). Staff have reviewed these comments and incorporated many of them into the final draft ordinance.

On May 27, 2025, the City Council introduced and waived further reading of the ordinance.

A notice for the second reading, Affidavit of Publication for the Summary of Ordinance No. 1608, was published in the Record Gazette on October 3, 2025; a copy is attached to the staff report.

JUSTIFICATION:

As the internet and social media have made it possible to produce and consume content from anywhere in the world, the City of Banning is not only updating its ordinance to reflect the changes in the entertainment industry but will work to create a strategic plan that will attract content producers from traditional mainstream production companies to direct streaming companies.

Agencies that include the California Film Commission, the Inland Empire Film Services, and various industry professionals provided insight to the revised ordinance as we look to streamline the film permitting process, in addition insurance requirement changes have been modified to reflect the current environment and designated coverage.

FISCAL IMPACT:

The fiscal impact of the proposed ordinance update will cover areas of production that are not currently covered in the existing ordinance circa 1965 but addresses the ability to capture additional revenues 59 through permitting newly integrated technologies and methods for film production that have been introduced over the past 60 years. The City’s ability to streamline the permitting process will certainly add a competitive edge to attracting new production and will lay the foundation for the implementation of a successful strategic marketing plan.

The City is completing a comprehensive User Fee Study Update that includes an update to film permit fees and deposits, which is scheduled to be brought to the City Council for consideration on Tuesday, October 14, 2025.

ALTERNATIVES:

Do not introduce the Ordinance and provide staff alternate direction.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Ordinance 1608.docx

2. Affidavit of Publication_Ordinance 1608.pdf

3. 2025 01 15_Film Commission Comments.pdf
60 Ordinance 1608

Page 1 of 11 ends

ORDINANCE 1608

AN ORDINANCE OF THE CITY OF BANNING, CALIFORNIA, AMENDING CHAPTER 5.40 OF THE BANNING MUNICIPAL CODE CONCERNING FILM

PERMITS AND REGULATIONS
The City Council of the City of Banning does hereby ordain as follows:

SECTION 1. Findings and Purpose.

A. The Uniform Film Permit Act (Gov. Code, § 1499.20 et seq.) authorizes cities and counties to adopt ordinances or other regulations governing the issuance of film permits to engage in the use of property for occasional commercial filming.

B. Section 14999.21(b) of the Uniform Film Act provides that at least 30 days prior to an amendment to the written filming policy of a local government, the local government shall submit a draft of the amendment to the Executive Director of the California Film Commission (“Commission”). The Commission must review drafts submitted to it and report its findings to the local government within five working days of receipt of the draft. The local legislative body must consider the Commission’s findings prior to final adoption of the amendment, unless the Commission’s findings are not available within the above prescribed time limits. Any and all findings made by the Commission are advisory to local government.

C. On December 13, 2024, the City submitted a copy of the proposed draft amendments to Chapter 5.40 (“Motion Picture, Television and Photographic Production Permits”) of Title 5 (“Business Licenses and Regulations”) of the Banning Municipal Code (“BMC”) to the office of Colleen Bell, Executive Director of the California Film Commission.

D. By letter dated January 15, 2025, the Commission submitted advisory findings to the City on the proposed amendments to BMC Chapter 5.40, which the City Council considered prior to adoption of this Ordinance.

E. Section 14999.21(b) of the Uniform Film Act provides that each local government must provide the Commission with a copy of its adopted filming amendments.

SECTION 2. Chapter 5.40 of Title 5 of the Banning Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 5.40 - MOTION PICTURE, TELEVISION, AND PHOTOGRAPHIC PRODUCTION

PERMITS

5.40.010 - Title.

This chapter shall be known as the “Motion Pictures, Television and Photographic Production Ordinance” of the City of Banning.

5.40.020 - Purpose and intent.

Page 2 of 11 ends

intent of this chapter is to facilitate and regulate the time, place, and manner of such filming activity while protecting the residents and property owners from the adverse impacts of filming activities.

5.40.030 - Definitions.

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

City film permit. A permit issued by the city to allow the activities associated with filming activity, including the production, filming or videotaping of motion picture and television shows, programs, commercials and still photography.

City film permit coordinator (finance staff). The director of community development and economic development manager, or their designee.

Filming activity. All activity attendant to staging or shooting commercial motion pictures, television shows or programs, long form web-based media, commercials and the taking of single or multiple photographs for sale or commercial use involving a cast and crew of ten or more individuals where the photographer sets up stationary equipment in any one location for longer than five consecutive minutes. Filming activity also includes filming of commercial radio station promotional events. Filming activities include the following definitions:

A. Motion pictures. Audiovisual works consisting of a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.

B. Television Shows. A series of episodes aired on television or an app-based streaming service, typically following a specific storyline or theme for broadcast or syndication.

Television for the purposes of this chapter means an electronic system of transmitting transient images of fixed or moving objects together with sound over a wire or through space by apparatus that converts light and sound into electrical waves and reconverts them into visible light rays and audible sound
C. Programs. A presentation or item on television, radio, or an app-based streaming service, especially one broadcast airing regularly between stated times (i.e. nature program). Radio for the purposes of this chapter means the use of electromagnetic waves for the wireless transmission of electric impulses into which sound is converted.

D. Commercials. An advertisement played on television, radio, or an app-based streaming service.

E. Still photography. A photograph that is not a video, movie, or moving image.

Filming location. Filming location means the actual property or properties that any filming activity for commercial motion picture or still photographic production is performed.

News media. The photographing, filming or videotaping for the purpose of spontaneous, unplanned reporting of news events concerning those persons, scenes or occurrences which are in the news and of public interest by reporters, photographers or camera operator in the employ of a newspaper, television station, news service, or similar entity. 62 Ordinance 1608

Page 3 of 11 ends

Preparation. Preparation (“prep”) means workdays preceding filming activities. These activities may include set construction, or dressing, painting, landscaping or rigging for stunts and special effects.

Private production. The filming or videotaping of motion pictures or taking of still photographs solely for private use.

Wrap/Strike (Project completion). The work at a filming location that includes the removal of equipment at the end of filming activities. These activities may include, but are not limited to, set removal, re-painting, re-landscaping, and unrigging from stunts and special effects.

Studio filming. A legally established commercial motion picture, television show, commercials, programs, or still photography place of business where filming activity, whether motion pictures, television shows, commercials, programs, or still photography, are regularly conducted inside a studio or on a stage located on the premises.

Proof may include documentation from an educational institution that indicates the student is covered by their liability insurance, and given permission to film a project beyond the boundaries of the campus.

5.40.040 - Permit required.

No person shall use any public or private property, building, facility, or residence for the purpose of filming activity, including producing or making motion pictures, television shows, programs, commercials, or still photography without first receiving a city film permit from the city film permit coordinator pursuant to the provisions of this chapter.

5.40.050 - Permit exemptions.

The provisions of this chapter shall not apply to the following:

A. News media;
B. Private production; and
C. Studio filming.

5.40.060 - Permit application.

An applicant must provide the following information:

Page 4 of 11 ends

E. Location(s) of proposed filming or taping;
F. Date(s) and time(s) of proposed filming or taping;
G. Lists which include the approximate number of cast, crew, and production vehicles; H. Services of city employees desired or required on location during filming; I. A brief description of the type of production to be made; J. Name of person in charge on location;
K. Such other information that includes impacts to the community at or around the filming location including but not limited to traffic control, use of public sidewalks, noise disturbances, use of pyrotechnics, large crowd scenes, etc.; and L. A statement acknowledging that the applicant shall have a copy of its permit on site at all times during filming.

5.40.070 - Permit applications and issuance.

A. City film permit application. Any person desiring a city film permit under the provisions of this chapter shall submit to the city film permit coordinator the following:

1. A complete application for a city film permit on a form provided by the city. The form must be signed by the applicant and accompanied by all required fees, deposits, indemnification agreement, and the insurance certificate required by this chapter and the city’s administrative rules and regulations before the city film permit coordinator may process the city film permit application. An applicant must submit a complete application, in person, at least two working days prior to the date of the filming activity for which the permit is required. If such activity interferes with traffic, including road closures, or involves potential public safety hazards, such as stunts, pyrotechnics or special effects, the applicant shall submit the application at least five working days prior to the date of the filming activity for which the permit is required.

2. Notification of all businesses and residents within 200 feet of the filming activity is suggested.
a. An applicant will be required to submit a city film permit request at least two working days prior to the date on which such person desires to conduct filming activity for which a permit is required, unless closure of a public street is involved in which case minimum notification time shall be one week.

3. City film permit fee as established by city council resolution and other applicable deposits as described in Section 5.40.080.

4. Evidence of insurance as required in Section 5.40.140.

5. A fully executed indemnification agreement, on a form approved by the city attorney, as required in Section 5.40.140.
64 Ordinance 1608

Page 5 of 11 ends

6. If determined to be necessary by the city film permit coordinator, written evidence of permits and/or conditions with other public agencies as may be required upon submission of an application for a city film permit. The requirements of these responsible agencies shall be the requirements of this permit. Examples of such agencies include, without limitation, the state highway patrol, the county sheriff’s department, the Federal Aviation Administration, city fire protection district, and the bureau of land management.

7. Any other information as required by the city’s administrative rules and regulations.

8. An applicant shall obtain the property owner’s permission, consent, and/or lease for use of property.

B. City film permit issuance.

1. The city film permit coordinator in coordination with the planning department shall be responsible for the issuance of city film permits under this chapter, when, from a consideration of the application and from such other information as may be otherwise obtained, they find that:
a. The conduct of such activity will not unduly interfere with traffic or pedestrian movement or endanger public safety and that no streets will be completely closed to traffic for an unreasonable period of time;
b. The conduct of such activity will not unduly interfere with normal governmental or city operations, threaten to result in damage or detriment to public property, or result in the city incurring costs or expenditures in either money or personnel not reimbursed in advance by the applicant; and
c. At the determination of the city’s public works department, the city police department, the city fire protection district, and the city engineer, as required, that the condition of such activity will not constitute a fire hazard or any other type of hazard and all proper safety precautions will be taken as determined by the department’s director, or their designee.

2. The city film permit coordinator may impose any conditions found necessary to protect the public’s health, safety, and welfare. The permittee shall comply with any conditions or restrictions the city may impose as a condition to issue a city film permit. No changes to such conditions shall be made without first obtaining the city film permit coordinator’s prior written approval. Failure to comply with the terms and conditions of a city film permit shall be grounds for permit revocation by the city film permit coordinator.

3. Following issuance of a city film permit, the permittee must notify residents within a two-hundred-foot radius of the location of the proposed filming activity by distributing a fully completed filming location notification form, including the production company’s contact information, at least forty-eight hours prior to the first day of filming activity. Residential notification is not required for still photographic productions with cast and crew of less than ten people. An extended radius of five-hundred feet for any major special effects, stunts or pyrotechnics will be required.
65 Ordinance 1608

Page 6 of 11 ends

4. The decision of the city film permit coordinator to issue, conditionally issue, or not issue a city film permit shall be final unless appealed pursuant to Section 5.40.160.

5. A film permit shall be issued for the number of days requested.

6. An applicant shall comply with all conditions or restrictions of the permit.

5.40.080 - Permit fees and deposits; costs.

Each application for a city film permit shall be accompanied by:

A. A security deposit, in an amount established by city council resolution, to ensure cleanup and restoration of the site of the filming activity. The deposit, in full or part thereof, may be returned to the permittee upon completion of filming activity and inspection of the site by the city.

B. A city film permit fee in an amount established by resolution of the city council to reimburse the city for staff time required to evaluate the application and establish conditions of approval and to monitor the filming activity.

C. The city film permit fee and the security deposit shall not apply to or affect:

1. City produced or city-sponsored government or educational access productions;

2. Student films; and

3. Productions by charitable organizations that have been issued 501(c)(3) status by the Internal Revenue Service and are in good standing.

D. If deemed necessary by the city film permit coordinator, additional police personnel, code enforcement personnel, a film monitor and/or other city services shall be provided for the purpose of protecting, assisting, and regulating the proposed filming activity, at a cost billed to the permittee. The cost of providing such additional services shall be paid in advance to the city by the permittee. Should the filming surpass the permitted time, with approval of an officer, the permittee will be billed for overages for the city personnel’s time. Additional city services will be provided and coordinated through the city film permit coordinator.

E. A permittee shall conduct operations including preparation and project completion in a time frame as agreed by the city and permittee. The area used shall be cleaned of trash and debris upon completion of shooting at the scene and restored to the original condition before leaving the site. The city may require a faithful performance bond or refundable security deposit to ensure cleanup and restoration of the site after inspection. The bond or security deposit shall be returned to the applicant within thirty days.

5.40.090- Public right-of-way.

Page 7 of 11 ends

driving scenes shall require signage indicating such activities are taking place and shall be posted by the city.

5.40.100 - Traffic control.

For filming that would impair traffic flow, a permittee shall coordinate traffic control with the police department and, if deemed necessary by the city film permit coordinator, the California Highway Patrol and/or county sheriff, and shall comply with all traffic control requirements deemed necessary by the city permit film coordinator.

A. The permittee shall furnish and install advance warning signs and any other traffic control devices in conformance with the Manual of Traffic Control, State of California, Department of Transportation, and take all appropriate safety precautions.

B. Traffic may be restricted or stopped intermittently upon the city’s authorization and under the city’s direction.

C. The permittee shall not detour traffic across a road with double lines without the city’s prior approval.

D. Unless otherwise authorized by the city, the permittee shall not drive camera cars (or cause camera cars to be driven) against the flow of oncoming traffic and shall observe all traffic laws.

E. Any emergency road work or construction by city, county crews, and/or private contractors, under permit or contract to the city shall have priority over filming activities.

5.40.110 - Special restrictions.

The permittee shall perform all external filming activities between the hours of 10:00 P.M. and 6:00 A.M. without undue noise and nuisance, unless otherwise approved by the city film permit coordinator with sufficient notice informing residents of the filming activity. Production companies will be mandated to comply with any relevant state/local law or regulations related to vehicles, road closures, and/or traffic.

5.40.120 - Administrative rules and regulations.

The city film permit coordinator is authorized and directed to promulgate administrative rules and regulations, subject to approval by resolution of the city council, governing the time, place and manner of any filming activity, included in this chapter, within the city. The administrative rules and regulations shall be based upon the criteria set forth in this chapter.

5.40.130 - Insurance and liability.

All applicants for a city film permit shall submit the following with a completed application for a city film permit:

A. Liability insurance. If filming activity will be conducted on public property, a certificate of insurance shall be submitted to the city film permit coordinator evidencing the following:
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1. General liability with limits no less than as stipulated by the city;

2. Auto liability with limits no less than as stipulated by the city;

3. Workers’ compensation coverage as required by law; and

4. Employer’s liability with limits no less than as stipulated by the city.

The general liability and auto liability policies shall name the city, its officers, employees, agents, and volunteers as additional insured to protect the city against any liability, or claims of liability related to or resulting from film production in the city. Such policies shall be provided by an insured permitted to do business in the state with an AM Best rating of at least A:VII or a Standard & Poor’s Rating (if rated) of at least BBB, unless specific approval for a lower rating has been granted by the City. The certificate shall not be subject to cancellation or modification until after thirty days’ written notice to the city. Such insurance shall be evidenced by the standard general liability special endorsement form mandated by the state film commission, which will remain on file with the city’s risk manager. When filming in a flood control channel, the Riverside Flood Control and Water Conservation District shall be named as an additional insured. The certificate Holder must be the “City of Banning” and the Certificate Holder’s address must be the address of the respective department.

B. Indemnification agreement. The applicant must submit with its application for a city film permit an indemnification agreement, on a form approved by the city attorney, in which the applicant agrees to defend, indemnify, and hold harmless the city, its officers, agents, employees and volunteers from all claims and liability arising from the filming activity or issuance of the city film permit.

C. An endorsement to each policy shall be added stating that such policy shall not be cancelled by either party or reduced in coverage except after thirty (30) days prior written notice to City and that the policy shall apply on a primary noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained by or available to the City or any official, employee or agent of City.

5.40.140 - Revocation and suspension of a city film permit.

A. The city film permit coordinator may revoke city film permits for the following reasons:

1. Misrepresentation on the city film permit application, including, without limitation, the type or manner of film production, the location of filming activity, or the parameters or the need for stunts or special effects.

2. Any violations of this code, state or federal law, and/or the city’s administrative rules and regulations for filming activity.

3. Any violation of the conditions imposed on a conditionally approved city film permit.

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violated. A written notice of suspension shall be provided to the permittee and the city film permit coordinator within twenty-four hours of the suspension.

C. The decision of the city film permit coordinator to revoke a city film permit shall be final unless appealed pursuant to Section 5.40.160.

D. No acts of lewd conduct etc. will be allowed to be filmed or photographed in any public setting within city jurisdiction.

5.40.150 - Enforcement of violations.

A. Notwithstanding any other provision of this code to the contrary, any person who causes, permits, or suffers a violation of any provision of this chapter, or who fails to comply with any obligation or requirement of this chapter, is guilty of a misdemeanor violation punishable in accordance with Chapters 1.24 and 1.28 and is also subject to administrative citations in accordance with Chapter 1.20.

B. Each person shall be guilty of a separate offense for each day, or part thereof, during which a violation of this chapter, or of any law or regulation referenced herein, is allowed, committed, continued, maintained or permitted by such person, and shall be punishable accordingly.

C. This chapter does not exclusively regulate filming activity in the city, and the remedies provided in this chapter are in addition to other applicable remedies and penalties authorized by the Banning Municipal Code, or by the laws of the state or of the United States.

5.40.160 - Appeal procedures.

The decision of the city film permit coordinator to issue, conditionally issue, not issue, or revoke a city film permit may be appealed in writing to the city manager within five working days of the decision. The appeal must include copies of all pertinent material necessary to support the permittee’s position on appeal. Any actions of the city manager shall be final.” SECTION 3. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Banning’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 4. The City Council directs the City Clerk to submit a certified copy of this Ordinance to the California Film Commission.

SECTION 5. This Ordinance will become effective on the thirty-first (31st) day following its passage and adoption.
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PASSED, APPROVED AND ADOPTED this 14th day of October, 2025.

Sheri Flynn, Mayor
City of Banning
ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
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CERTIFICATION:

I, Sandra Calderon, Acting Administrative City Clerk of the City of Banning, California, do hereby certify that Ordinance 1608 was duly introduced at a regular meeting of the City Council of the City of Banning, held on the 10th day of June, 2025, and was duly adopted at a regular meeting of said City Council on the 14th day of October, 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
71 AFFIDAVIT OF PUBLICATION
Record Gazette
218 N. Murray St., Banning, CA 92220
Proof of Publication
(2015.5 C.C.P.)
Pre-adoption notice Ord 1608
___________________________________________________
State of California )
County of Riverside ) SS.

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer and publisher of Record Gazette, a newspaper published in the English language in the City of Banning, County of Riverside, and adjudicated a newspaper of
general circulation as defined by the laws of the state of California by the Superior Court of the County of Riverside, under the date October 14, 1966, Case No. 54737.

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

Oct 3, 2025
Executed on: ____________________
At City of Banning, California
I ceritfy (or declare) under penalty of perjury that the foregoing is true and correct.
___________________________________________________
Signature
Pre-adoption notice Ord 1608 | Page 1 of 2
October 3rd, 2025
72 Pre-adoption notice Ord 1608 | Page 2 of 2
73 1
Caroline Patton
From: Leo Fialho <[email protected]>
Sent: Wednesday, January 15, 2025 4:16 PM
To: Caroline Patton
Cc: Laura Baptista
Subject: RE: City of Banning Draft Film Ordinance
Attachments: Guidelines-for-Best-Practices.pdf; CFC-Model-Film-Ordinance.pdf; City of Banning_Ordinance No. 160X_Film Ordinance.docx
Follow Up Flag: Follow up
Flag Status: Flagged
Hello Caroline,
Karla Sayles is no longer with the CFC, however before she left, she asked me to review your film ordinance.

Apologies for not getting it back in a timely manner. I have attached here with our comments for your consideration. Attached as well is both our Model Filming Ordinance and the Guidelines for Best Practices in Film Regulations and Policies.

If you have any questions, please feel free to get in touch with me directly.

Thank you,
Leo Fialho (he/him)
Permit Manager
California Film Commission
7080 Hollywood Blvd Suite 900
Hollywood CA 90028
[email protected]
323.742.2870 (direct) 323.817.4105 (work)
Confidentiality Notice: This e-mail message, including any attachments, is solely for the intended recipient(s) and may contain confidential and privileged information and may be legally protected from disclosure. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender by reply e-mail and destroy all copies of the original message.
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ORDINANCE 16__

AN ORDINANCE OF THE CITY OF BANNING, CALIFORNIA, AMENDING CHAPTER 5.40 OF THE BANNING MUNICIPAL CODE CONCERNING FILM

PERMITS AND REGULATIONS
The City Council of the City of Banning does hereby ordain as follows:

SECTION 1. Findings and Purpose.

C. On December __, 2024, the City submitted a copy of the proposed draft amendments to Chapter 5.40 (“Motion Picture, Television and Photographic Production Permits”) of Title 5 (“Business Licenses and Regulations”) of the Banning Municipal Code (“BMC”) to the office of Colleen Bell, Executive Director of the California Film Commission.

D. By letter dated [month] [day], 2024, the Commission submitted advisory findings to the City on the proposed amendments to BMC Chapter 5.40, which the City Council considered prior to adoption of this Ordinance.

E. Section 14999.21(b) of the Uniform Film Act provides that each local government must provide the Commission with a copy of its adopted filming amendments.

SECTION 2. Chapter 5.40 of Title 5 of the Banning Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 5.40 - MOTION PICTURE, TELEVISION, AND PHOTOGRAPHIC PRODUCTION

PERMITS

5.40.010 - Title.

This chapter shall be known as the “Motion Pictures, Television and Photographic Production Ordinance” of the City of Banning.

5.40.020 - Purpose and intent.

This chapter establishes administrative rules and regulations for the review and issuance of filming permits involving motion picture, television, and photographic production in the city. The intent of this chapter is to facilitate and regulate the time, place, and manner of such filming activity while protecting the residents and property owners from the adverse impacts of filming activities.
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5.40.030 - Definitions.

The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

City film permit coordinator. The director of community and economic development, or their designee.

A. Motion pictures. Audiovisual works consisting of a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any.

B. Television Shows. A series of episodes aired on television or an app-based streaming service, typically following a specific storyline or theme for broadcast or syndication. Television for the purposes of this chapter means an electronic system of transmitting transient images of fixed or moving objects together with sound over a wire or through space by apparatus that converts light and sound into electrical waves and reconverts them into visible light rays and audible sound C. Programs. A presentation or item on television, radio, or an app-based streaming service, especially one broadcast airing regularly between stated times (i.e. nature program). Radio for the purposes of this chapter means the use of electromagnetic waves for the wireless transmission of electric impulses into which sound is converted.

D. Commercials. An advertisement played on television, radio, or an app-based streaming service.

E. Still photography. A photograph that is not a video, movie, or moving image.

Filming location. Filming location means the actual property or properties that any filming activity for commercial motion picture or still photographic production is performed.

Private production. The filming or videotaping of motion pictures or taking of still photographs solely for private use.
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Project completion. The work at a filming location that includes the removal of equipment at the end of filming activities. These activities may include, but are not limited to, set removal, repainting, re-landscaping, and unrigging from stunts and special effects.

Student films. Motion pictures, television shows, or still photography that are produced to satisfy a course or curriculum requirement at an educational institution are student films. The student film maker must supply proof that they are currently enrolled in an educational institution. Proof may include documentation from an educational institution that indicates the student is covered by their liability insurance, and given permission to film a project beyond the boundaries of the campus.

5.40.040 - Permit required.

5.40.050 - Permit exemptions.

The provisions of this chapter shall not apply to the following:

A. News media;
B. Private production; and
C. Studio filming.

5.40.060 - Permit application.

An applicant must provide the following information:

A. Full legal name of applicant;
B. Business or educational institution name of applicant (if different); C. Business or educational institution address of applicant; D. Telephone number of applicant;
E. Location(s) of proposed filming or taping;
F. Date(s) and time(s) of proposed filming or taping;
G. Lists which include the approximate number of cast, crew, and production vehicles; H. Services of city employees desired or required on location during filming; I. A brief description of the type of film to be made;
J. Name of person in charge on location;
K. Such other information as deemed reasonably necessary by the city; and 77 Ordinance 160X

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L. A statement acknowledging that the applicant shall have a copy of its permit on site at all times during filming.

5.40.070 - Permit applications and issuance.

A. City film permit application. Any person desiring a city film permit under the provisions of this chapter shall submit to the city film permit coordinator the following:

2. Approval in the form of a petition, signature card, letter, consent form, or email from a minimum of seventy-five percent of all property owners and/or tenants, over the age of eighteen, for each parcel located within five hundred feet of the perimeter of the property on which the filming activity is to take place.

Applications that fail to submit the minimum amount of consent required in this subsection shall require approval from the city film permit coordinator, city manager, or their designee.
a. An applicant will be required to submit a city film permit request at least one working day prior to the date on which such person desires to conduct filming activity for which a permit is required, unless closure of a public street is involved in which case minimum notification time shall be one week.

3. City film permit fee as established by city council resolution and other applicable deposits as described in Section 5.40.080.

4. Evidence of insurance as required in Section 5.40.140.

5. A fully executed indemnification agreement, on a form approved by the city attorney, as required in Section 5.40.140.

7. Any other information as required by the city’s administrative rules and regulations.

8. An applicant shall obtain the property owner’s permission, consent, and/or lease for use of property.

B. City film permit issuance.
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1. The city film permit coordinator shall be responsible for the issuance of city film permits under this chapter, when, from a consideration of the application and from such other information as may be otherwise obtained, they find that:
a. The conduct of such activity will not unduly interfere with traffic or pedestrian movement or endanger public safety and that no streets will be completely closed to traffic for an unreasonable period of time;
b. The conduct of such activity will not unduly interfere with normal governmental or city operations, threaten to result in damage or detriment to public property, or result in the city incurring costs or expenditures in either money or personnel not reimbursed in advance by the applicant; and c. At the determination of the city’s public works department, the city police department, the city fire protection district, and the city engineer, as required, that the condition of such activity will not constitute a fire hazard or any other type of hazard and all proper safety precautions will be taken as determined by the department’s director, or their designee.

3. Following issuance of a city film permit, the permittee must notify residents within a five hundred-foot radius of the location of the proposed filming activity by distributing a fully completed filming location notification form, including the production company’s contact information, at least twenty-four hours prior to the first day of filming activity. Residential notification is not required for still photographic productions with cast and crew of less than ten people.

4. The decision of the city film permit coordinator to issue, conditionally issue, or not issue a city film permit shall be final unless appealed pursuant to Section

5.40.160.

5. A permit application shall be issued for the number of days requested.

6. An applicant shall comply with all conditions or restrictions of the permit.

5.40.080 - Permit fees and deposits; costs.

Each application for a city film permit shall be accompanied by:

C. The city film permit fee and the security deposit shall not apply to or affect:

1. City produced or city-sponsored government or educational access productions; 79 Ordinance 160X

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2. Student films; and

3. Productions by charitable organizations that have been issued 501(c)(3) status by the Internal Revenue Service and are in good standing.

D. If deemed necessary by the city film permit coordinator, additional police personnel, code enforcement personnel, a film monitor and/or other city services shall be provided for the purpose of protecting, assisting, and regulating the proposed filming activity, at a cost billed to the permittee. The cost of providing such additional services shall be paid in advance to the city by the permittee. Additional city services will be provided and coordinated through the city film permit coordinator.

E. A permittee shall conduct operations including preparation and project completion in a time frame as agreed by the city and permittee. The area used shall be cleaned of trash and debris upon completion of shooting at the scene and restored to the original condition before leaving the site. The city may require a faithful performance bond to ensure cleanup and restoration of the site after inspection. The bond shall be returned to the applicant within thirty days.

5.40.090- Public right-of-way.

Temporary “NO PARKING” signs shall be posted by the city., All parking of equipment or cars on public streets, stringing cable on sidewalks or from generator to service point, sidewalk shots, driving scenes shall require signage indicating such activities are taking place and shall be posted by the city.

5.40.100 - Traffic control.

B. Traffic may be restricted or stopped intermittently upon the city’s authorization and under the city’s direction.

C. The permittee shall not detour traffic across a road with double lines without the city’s prior approval.

D. Unless otherwise authorized by the city, the permittee shall not drive camera cars (or cause camera cars to be driven) in the direction of traffic, and shall observe all traffic laws.

E. Any emergency road work or construction by city, county crews, and/or private contractors, under permit or contract to the city shall have priority over filming activities.
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5.40.110 - Special restrictions.

5.40.120 - Administrative rules and regulations.

5.40.130 - Insurance and liability.

All applicants for a city film permit shall submit the following with a completed application for a city film permit:

A. Liability insurance. If filming activity will be conducted on public property, a certificate of insurance shall be submitted to the city film permit coordinator evidencing the following:

1. General liability with limits no less than as stipulated by the city;

2. Auto liability with limits no less than as stipulated by the city;

3. Workers’ compensation coverage as required by law; and

4. Employer’s liability with limits no less than as stipulated by the city.

Such policies shall be provided by an insured permitted to do business in the state with an AM Best rating of at least A:VII or a Standard & Poor’s Rating (if rated) of at least BBB, unless specific approval for a lower rating has been granted by the City.

The certificate shall not be subject to cancellation or modification until after thirty days’ written notice to the city. Such insurance shall be evidenced by the standard general liability special endorsement form mandated by the state film commission, which will remain on file with the city’s risk manager. When filming in a flood control channel, the Riverside Flood Control and Water Conservation District shall be named as an additional insured.

5.40.140 - Revocation and suspension of a city film permit.

A. The city film permit coordinator may revoke city film permits for the following reasons:

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2. Any violations of this code, state or federal law, and/or the city’s administrative rules and regulations for filming activity.

3. Any violation of the conditions imposed on a conditionally approved city film permit.

B. The city police department and the city fire protection district are authorized to suspend any filming activity not authorized by the necessary permit or when permit conditions are violated or where the city’s filming rules and regulations, laws, or ordinances are violated. A written notice of suspension shall be provided to the permittee and the city film permit coordinator within twenty-four hours of the suspension.

C. The decision of the city film permit coordinator to revoke a city film permit shall be final unless appealed pursuant to Section 5.40.160.

5.40.150 - Enforcement of violations.

5.40.160 - Appeal procedures.

SECTION 4. The City Council directs the City Clerk to submit a certified copy of this Ordinance to the California Film Commission.

SECTION 5. This Ordinance will become effective on the thirty-first (31st) day following its passage and adoption.

PASSED, APPROVED AND ADOPTED this 00th day of Month 2024. 82 Ordinance 160X

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Sheri Flynn, Mayor
City of Banning
ATTEST:

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

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

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that Ordinance 16XX was duly introduced at a regular meeting of the City Council of the City of Banning, held on the 14th day of January 2025, and was duly adopted at a regular meeting of said City Council on the 28th day of January 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Caroline Patton, Administrative City Clerk
City of Banning, California
84 Locations November 2020
Guidelines for Best Practices
in Film Regulations and Policies
Encouraging film production is an economic development tool that can provide temporary jobs for local residents, generate local revenue and bolster local businesses.

One of California’s signature industries, motion picture production is an essential source of economic activity, tax revenue, jobs and tourism in California. It contributes $30 billion dollars annually to our state’s economy while supporting over 190,000 well-paying entertainment industry jobs.

It is always important to balance the needs of a production company with the concerns of local government and the local community. Once a city or county has created a film ordinance (see model filming ordinance), they should consider establishing permit policies and regulations that are “film friendly” with the intent to increase or retain filming.

A. Consider the Following “Best Practices” When Creating Film Policies:

1. Rapid film permit issuance: 2 – 5 business days from permit application submission to permit issuance.

2. Establish standard hours for film activities: typically 7:00 a.m. – 10:00 p.m. for residential zones (with the option to extend hours with the approval of affected residents and business owners).

3. Establish reasonable permit fees. Compare fees charged by similar surrounding cities and stay within or below those limits. Some cities/counties reduce or waive permit fees for accredited student or charitable productions (while still requiring a permit) to encourage more filming.

4. Establish and post cost recovery fees for the reimbursement of city or county personnel (i.e., application review, monitors, police, fire, traffic control).

5. Establish a film permit requirement but waive any requirement for a business license, as most film activities are temporary.
85 LOCATIONS: Guidelines for Best Practices Page 2

6. The California Film Commission discourages the requirement of a bond. (Productions must pay additional fees to secure a bond, and the city/county must then rely on the bond company to collect damages from the production company). Instead, a refundable security deposit against damages is preferred.

7. Appoint a key liaison for coordinating permits. Be sure to appoint a back-up liaison. The liaison will be required to make decisions as the community representative prior to and during filming, and should therefore have full endorsement and authority of the local jurisdiction. The liaison should be aware of any previous film production within the community and remain sensitive to local citizens’ concerns.

8. Create a centralized filming section on your city/county website clearly listing all film regulations, permit and insurance requirements, fees and liaison contact information.

9. Consider adopting an ordinance that protects the orderly conduct of a permitted film event from persons who interfere.

B. Specific Guidelines for Filming Regulations:

1. Timely issuance of film permits: An applicant will be required to submit a permit request at least two business days prior to the date of the requested production activity. If such activity interferes with traffic or involves potential public safety hazards, an application may be required at least four business days in advance.

2. Notification: All residents and merchants within a 200 feet radius of the film location must receive notice of filming dates, times, location address and production company contact at least 24 hours prior to the first film activity. It is most effective to notify affected residents and business owners in person or via flyer, unless a property is inaccessible.

3. Parking: When parking production vehicles on a public street, residents and merchants impacted by the parking must receive notice at least 24 hours prior to the arrival of the vehicles. All those impacted should also be notified of the city/county’s procedures for towing vehicles parked in areas where “no parking” signs have been posted.
86 LOCATIONS: Guidelines for Best Practices Page 3

4. Surveys: Require a survey of affected residents and/or businesses within a 200 ft. radius when the filming includes extraordinary activities such as a street closure, pyrotechnics, excessive noise, low flying helicopters or drones, requests to film beyond the standard hours and requests to film for extended periods of time.

Note: the California Film Commission recommends a policy requiring no more than 80% signature approval.

5. Clean up: The permittee shall conduct operations in an orderly fashion with continuous attention to the storage of equipment not in use and the cleanup of trash and debris. The area used shall be cleaned of trash and debris upon completion of filming at the scene and restored to the original condition before leaving the site.

6. Filming on Private Property: An applicant is required to obtain the property owner’s permission, consent and signed location agreement, in addition to a permit, for use of the property not owned or controlled by the city/county.

7. Flood Control (if applicable): When filming in a flood control channel, an applicant must vacate channel when water is released. Please note that when filming in or on flood control properties, the agency must be named as an additional insured.

8. Public Works Department (Road and Streets): If the applicant must park equipment, trucks, and/or cars in zones that will not permit it, temporary “No Parking” signs must be posted with approval of the local authority. The applicant must also obtain permission to lay and safely mat cable across sidewalks or from generator to service point.

9. Traffic Control: For filming that would impair traffic flow, an applicant must use California Highway Patrol (CHP), County Sheriff or local law enforcement personnel and comply with all traffic control requirements deemed necessary. a. An applicant shall furnish and install advance warning signs and any other traffic control devices in conformance with the Manual of Traffic Controls, State of California Department of Transportation. All appropriate safety precautions must be taken.
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b. For any lane closure or intermittent traffic control (ITC), the period of time that traffic may be restricted will be determined by the city/county, based on traffic volumes for location and time of day. For state-owned freeways and roads, lane closures and ITC will be determined by Caltrans. c. Traffic shall not be detoured across a double line without prior approval of the appropriate department representative.
d. Unless authorized by the city/county, camera cars must be driven in the direction of traffic and must observe all traffic laws. e. Any emergency roadwork or construction by city or county crews and/or private contractors, under permit or contract to the appropriate department, shall have priority over filming activities.

10. Municipal Parking Lots: When parking in a municipal parking lot, an applicant may be billed according to the current rate schedule established by the city/county. In order to assure the safety of citizens in the surrounding community, access roads to beaches, which serve as emergency service roads, must never be blocked. No relocation, alteration, or moving of beach structures will be permitted without prior approval.

C. Other Considerations to Encourage Filming:

A city or county that wishes to actively recruit filming as part of its economic development plan should also consider providing the following services or incentives to encourage filming.

1. Provide service and support to each production company from the initial contact to the close of the production, including problem solving on film related matters.

Support should include coordination between the production company, local residents and businesses and the city/county.

2. Offer fee-free city/county-owned properties for use as filming locations. Charge applicants for cost recovery only – review time, police, fire or security monitors.

3. Waive permit fees.

4. Provide free vacant office space and / or free parking lots. 88 LOCATIONS: Guidelines for Best Practices Page 5

5. Create an online database of location photos.

6. Upload location photos to the California Film Commission website to market a local region.

Final Note:

Being film-friendly includes reasonable guidelines and fees and a city/county’s ability to assist productions with their location needs. Overly-restrictive regulations (i.e., requiring a building permit in order to temporarily attach anything to a building/structure or having to obtain 100% written consent of all affected residents and business owners) will only serve to discourage filming in your community.

While there are jurisdictions that believe filming activities should cause no disruption to the community, and the California Film Commission clearly understands the desire for filming to have as little impact on residents and businesses as possible – the nature of a film shoot is that it can sometimes be intrusive, even though the impact may be minimal and all good faith efforts are made to mitigate the impact from filming activities.

However, there are few concerns that can’t be successfully resolved when cities/counties work with production companies to make filming a positive experience for all involved.

Additional resources for jurisdictions interested in recruiting film production can be found on our Community Filming page.
89 Locations November 2020
Many California cities, counties and special districts have adopted this ordinance to ensure uniform film ordinances and permit processes throughout the State. The Model Filming Ordinance is not intended to address the circumstances of each local jurisdiction, but provides general guidance for ensuring film-friendly policies in a community.

The California Film Commission (CFC) reviews all local ordinances and provides comments to government to ensure uniform procedures for issuing film permits. A local government is required to submit any draft filming ordinance or amendments to the CFC 30 days prior to adoption as per Government Code 14999.21. The CFC will review all drafts and provide comments within five working days. The CFC recommends that only reasonable fees associated with the recovery of costs are charged production companies for use of public property and services.

Model Filming Ordinance
I. DEFINITIONS:
a. “Motion picture, television, still photography” shall mean and include all activity attendant to staging or shooting commercial motion pictures, television shows or programs, commercials, digital media, still photography and student films produced to satisfy a post-secondary school course requirement at an educational institution in any medium including film, tape or digital format. b. “Charitable films” shall mean commercials, motion pictures, television, digital media or still photography produced by a nonprofit organization, which qualifies under Section 501(c)(3) of the Internal Revenue Code as a charitable organization. No person, directly or indirectly, shall receive a profit from the marketing and production of the film or from showing the films, tapes, or photos.
90 LOCATIONS: Model Filming Ordinance Page 2
c. “News Media” shall mean the photographing, filming or videotaping for the purpose of spontaneous, unplanned television news broadcasts (“breaking news”) or reporting for print media by reporters, photographers or camerapersons.
d. “Studio” shall mean a fixed place of business certified as such by a local fire authority having jurisdiction where filming activities (motion or still photography) are regularly conducted upon the premises.

II. PERMITS AND EXEMPTIONS:
a. Permit required: No person shall use any public or private property, facility or residence for the purpose of taking motion pictures, television, digital media or commercial still photography without first applying for and receiving a permit from the officer designated by the city/county.
b. Exemptions:
1) News Media: The provisions of this Chapter shall not apply to or affect reporters, photographers or camerapersons in the employ of a newspaper, news service, or similar entity engaged in on-the-spot print media, publishing or broadcasting, of news events concerning those persons, scenes or occurrences which are in the news and of general public interest. 2) Personal/Family Video: The recording of visual images (motion or still photography) solely for private personal use, and not for commercial use. 3) Studio Filming: Filming activities (motion or still photography) conducted at a studio.

III. RULES AND REGULATIONS:

Rules: The designated city/county officer is hereby authorized and directed to promulgate rules and regulations, subject to approval by resolution of the Council or Board, governing the form, time and location of any film activity set forth within the 91 LOCATIONS: Model Filming Ordinance Page 3
city/county. The officer shall also provide for the issuance of permits. The rules and regulations shall be based upon the following criteria:

1. The health and safety of all persons;

2. Mitigation of disruption to all persons within the affected area;

3. The safety of property within the city/county; and

4. Traffic congestion at particular locations within the city/county.

IV. APPLICANTS AND ISSUANCE:
a. Issuing Authority: The issuing authority shall be the city/county designee. b. Applications: The following information shall be included in the application:

1. The representative of the property and his/her email address and cell phone number, as well as the address, email address and telephone number of the place at which the activity is to be conducted;

2. The specific location at such address or place;

3. The inclusive hours and dates such activity will occur;

4. A general statement describing the character or nature of the proposed filming activities;

5. The name, address, email address, and cell phone number of the person or persons in charge of such filming activity;

6. The exact number of personnel to be involved;

7. Activity which may cause public alarm, such as the use of any animals, gunfire or pyrotechnics, low flying helicopters and/or unmanned aircraft systems (drones);

8. The exact amount/type of vehicles/equipment to be employed along with a parking plan; and
92 LOCATIONS: Model Filming Ordinance Page 4

9. All applicable documentation (remote pilot certificate, UAS registration certificate, waivers, description of flight operations, etc.) if a UAS (drone) is being used.
c. Fee Schedule: The issuing authority may adopt a fee schedule. d. Reimbursement for Personnel: The production company shall reimburse the city/county for any personnel provided to the company (e.g., police, fire, traffic) for the purpose of assisting the production.
e. Change of Date: Upon the request of the applicant, the issuing authority shall have the power, upon a showing of good cause, to change the date for which the permit has been issued, provided established limitations are complied with in respect to time and location.

V. LIABILITY PROVISIONS:
a. Liability Insurance: Before a permit is issued, a certificate of insurance will be required in an amount not exceeding $1,000,000 naming the city/county as additional insured for protection against claims of third persons for personal injuries, wrongful deaths, and property damage. Higher liability limits or separate aerial coverage shall be required for the use of helicopters and/or drones. City/county officers and employees shall also be named as additional insured. An applicant must provide evidence of insurance coverage that will not expire until the completion of all planned production activities, including the strike and restoration of all locations. A copy of the certificate will remain on file.
b. Worker’s Compensation Insurance: An applicant shall conform to all applicable Federal and State requirements for Worker’s Compensation Insurance for all persons operating under a permit.
c. Hold Harmless Agreement: An applicant shall execute a hold harmless agreement as provided by the city/county prior to the issuance of a permit under this ordinance. (The hold harmless agreement may be included in the terms and conditions of the permit.)
93 LOCATIONS: Model Filming Ordinance Page 5
d. Security Deposit: To ensure cleanup and restoration of location sites, an applicant may be required to submit a refundable deposit (amount to be determined by the city/county). Upon completion of filming and inspection of the site by the city/county, if no verifiable damage has occurred, the security deposit shall be returned to the applicant.

VI. VIOLATION:

If an applicant violates any provisions of this ordinance or a permit issued pursuant thereto, the city/county may provide the applicant with verbal or written notice of such violation. If the applicant fails to correct the violation, the city/county may revoke the permit and all activity must cease.

FILMING REGULATIONS
See Guidelines for Best Practices in Film Regulation and Policies. 94 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: David Newell, Community Development Director MEETING DATE: October 14, 2025
SUBJECT: Consideration of Second Reading and Adoption of Ordinance 1611, Approving a Development Agreement By and Between the City of Banning and JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation
RECOMMENDATION:

Waive the second reading of text in its entirety and adopt Ordinance 1611.

BACKGROUND:

At its regular meeting of July 8, 2025, the City Council held a public hearing and considered three applications (Case DR21-7017, TPM 38756 and a Development Agreement) for the Banning Commerce Center Project, which is a proposed industrial warehouse development of 1,320,284 square feet on 131.28-acre site located north of the I-10 freeway/E. Ramsey Street, east of N. Hathaway Street and bisected by Wilson Street. After closing the public hearing and deliberating, the Council voted 5-0 to approve the Project as follows:

1. Adopt Resolution 2025-107. This resolution certified Banning Commerce Center Project's EIR, adopted statements of overriding considerations and established the Mitigation Monitoring and Reporting Program.

2. Adopt Resolution 2025-106. This resolution approved the Design Review and Tentative Parcel Map applications for the Banning Commerce Center Project.

3. Introduce and conduct first reading of, by title only, Ordinance 1611. An Ordinance of the City Council of the City of Banning, California, Approving a Development Agreement by and between the City of Banning and JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation.

After the Council's meeting on July 8, 2025, staff made revisions to the Development Agreement for execution, including the addition of (1) missing dates and references; (2) text to Section 17.C. to toll agreement and approvals in the event there is a third party challenge; (3) names for each party under signature lines; and (4) the current development impact fees applicable to the project in definitions and Exhibit B of the Agreement. Because these revisions were beyond corrections of typographical and clerical errors, Ordinance 1611 was re-introduced at a public hearing on September 23, 2025, for first reading under Government Code Section 36394,which states, "When ordinances, other than urgency ordinances, are altered after introduction, they shall be passed only at a regular or at an adjourned regular meeting held at least five days after alteration. Corrections of typographical or clerical errors are not alterations within the meaning of this section." After holding the public hearing on September 23, 2025, the Council re-introduced Ordinance 1611. This report provides for the City Council to waive further reading and adopt Ordinance 1611 at second reading, as required by the Government Code. The ordinance shall be effective 30-days from adoption.
95 JUSTIFICATION:

In order to approve the Development Agreement application, the City Council is required to make findings pursuant to BZO Section 17.60.030(C) (Development Agreement). The Planning Commission recommended approval of these applications pursuant to the findings in Planning Commission Resolution 2025-04. The Council conducted public hearings on Ordinance 1611 on July 8, 2025 and September 23, 2025, and voted to adopt the required findings included in the draft ordinance. There have been no changes since the first reading of Ordinance 1611 on September 23, 2025.

Environmental Determination:

Second reading of Ordinance 1611 remains consistent with the Council's action to certify the EIR under Resolution 2025-107.

FISCAL IMPACT:

As described in prior City Council Staff Reports on this project, fiscal impacts of the project will be offset by fees and improvement costs paid by the developer, including permit applications, impact fees, and roadway and other public improvements. In addition, the City will directly benefit financially by the following negotiated items, which are beyond the typical fees paid by a development application if the development agreement is approved:

1. $9,000,000 in payments to the City for funding transportation-related costs toward roadways/interchanges

2. $357,000 payment for per megavolt-amperes (MVA), based on the requested electrical load

3. $0.10 per sq. ft. annually (with annual CPI escalator) as part of a community facilities district to pay for on-going maintenance costs of public streets, public facilities and parks, and other related improvements and maintenance in the District; this would amount to over $132,000 in annual revenue to offset maintenance costs and other city services as specified in the CFD once established.

A fiscal impact analysis report prepared by the Developer's consultant anticipates this project would result in a net increase of recurring revenues amounting to $505,215 annually. The report cites total recurring revenues of $869,954 annually and total recurring expenditures of $364,739 annually, which results in the net increase of $505,215 to the City's annual revenues. The CFD would augment the annual revenue generated by the Project and provide an additional $132,000 annually toward maintenance and services within the boundary of the CFD once established, which further reduces impacts to the City's finances.

ALTERNATIVES:

Provide alternative direction to staff.

BUDGETED?:

No
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Ordinance 1611

2. Development Agreement
96 Ordinance 1611

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ORDINANCE 1611

AN ORDINANCE OF THE CITY OF BANNING, CALIFORNIA, APPROVING A

DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF BANNING

AND JDNJ ENTERPRISES, LLC, A MISSOURI LIMITED LIABILITY

CORPORATION
WHEREAS, the City of Banning, California, (“City”) is a general law city and a municipal corporation of the State of California; and
WHEREAS, Article 2.5 of Chapter 4 of Division 1 of Title 7 of the California Government Code (“Development Agreement Statute”) and Chapter 17.60 of the Banning Municipal Code authorize City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property; and WHEREAS, JDNJ Enterprises, LLC, a Missouri Limited Liability Corporation (“Owner”) is proposing to develop an approximately 1,320,284 square-foot tilt-up industrial building with onand off-sit related improvements on approximately 131.28-acres of real property located entirely within the City of Banning, comprised of three parcels having seven Assessor’s Parcel Number (Assessor’s Parcel Numbers (APNs): 532-030-008, 532-030-009, 532-080-008, 532-080-010, 532-090-026, 532-090-028, 532-090-030, 532-110-015.), and more specifically depicted and described in Exhibit A (hereinafter the “Property”); and WHEREAS, the Subject Property is, or will be made, subject to the following entitlements:

Resolution No. 2025-106 approving Tentative Parcel Map No. 38756 to reconsolidate all existing parcels on the Site into two parcels and Design Review No. 21-7017 for construction of one concrete tilt-up industrial building; and Resolution No. 2025-107 certifying an Environmental Impact Report (EIR), SCH Number 2022090102, Adopting Findings and a Statement of Overriding Considerations, and Adopting a Mitigation Monitoring and Reporting Program (collectively the "Entitlements"); and
WHEREAS, the Project will provide jobs and industry in the City; and WHEREAS, the Project will provide a community benefit to the residents of the City; and WHEREAS, the Developer is not requesting from the City, nor is the City providing, any form of financial assistance to locate, develop, construct and/or operate the Project in the City of Banning, and Developer agrees to comply with all conditions of approval; and WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Sections 65864 et seq. of the California Government Code, (the "Development Agreement Statute") which authorizes cities to enter into property development agreements with any person(s) or entity(ies) having a legal or equitable interest in real property for the development of such real property in order to establish certain development rights in the real property; and
WHEREAS, the Development Agreement is intended to provide assurances to Developer that an approved Project may proceed subject to the specified policies, rules, regulations, and conditions of approval applicable to the Project at the time of approval, regardless of any changes to City policies, rules, and regulations after project approval; and 97 Ordinance 1611

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WHEREAS, this Agreement will eliminate uncertainty in planning for and securing orderly development and occupancy of the Property, assure installation of necessary improvements, and ensure attainment of the maximum effective utilization of resources within the City at the least economic cost to its citizens; and
WHEREAS, the City Planning Commission held a public hearing on the Project on March 5, 2025 and passed a resolution recommending approval subject to certain specific recommendations; and
WHEREAS, the City prepared the Final Revised EIR (the "FEIR") and, pursuant to Public Resources Code section 21092.5, the City provided copies of the FEIR to all commenting agencies and persons requesting copies of the responses; and WHEREAS, the City Council of the City of Banning (the "City Council"), at its regularly scheduled public meeting on July 8, 2025, held a public hearing on the Project and voted 5-0 to introduce Ordinance 1611; and
WHEREAS, the Development Agreement attached as Exhibit “B” to Ordinance 1611 introduced at the hearing on July 8, 2025 was incomplete and required additional information, including (1) missing dates and references; (2) text to Section 17.C. to toll agreement and approvals in the event there is a third party challenge; (3) names for each party under signature lines; and (4) the current development impact fees applicable to the project in definitions and Exhibit B of the Agreement; and
WHEREAS, the City Council at its regularly scheduled public meeting on September 23, 2025, held a public hearing on the Project and considered re-introducing Ordinance 1611; and WHEREAS, based on the foregoing recitals, City has determined that this Agreement is appropriate under the Development Agreement Statute and Chapter 17.60 of the Banning Municipal Code and consistent with the policies and programs of the City of Banning General Plan, any applicable specific plan and the zoning ordinances; and WHEREAS, this Agreement is voluntarily entered into in consideration of the benefits to and the rights created in favor of each of the parties hereto and in reliance upon the various representations and warranties contained herein; and
WHEREAS, City, as "Lead Agency" under the California Environmental Quality Act ("CEQA") and the CEQA Guidelines, has determined that the "Project," as more fully described in this Agreement, has been fully analyzed per CEQA under the FEIR for the Project dated October 2024 and all other legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BANNING DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS
That the above Recitals are true and correct and are incorporated as though fully set forth herein.

SECTION 2. APPROVAL OF DEVELOPMENT AGREEMENT
That the City Council hereby approves the Development Agreement by and between the City of Banning and JDNJ ENTERPRISES, LLC, A MISSOURI LIMITED LIABILITY CORPORATION 98 Ordinance 1611

Page 3 of 10 ends

("Development Agreement"), a copy of which is attached hereto as Exhibit "B" and incorporated herein by this reference, subject to the terms and conditions stated therein.

SECTION 3. SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect.

SECTION 4. EFFECTIVE DATE OF ORDINANCE
That this Ordinance shall take effect thirty (30) days after its second reading by the City Council.

SECTION 5. EFFECTIVE DATE OF DEVELOPMENT AGREEMENT
The Development Agreement shall not be executed by the City until on or after the effective date of the Ordinance.

SECTION 6. RECORDATION OF DEVELOPMENT AGREEMENT
The City Clerk is hereby directed to record the fully executed Development Agreement with the Riverside County Recorder no later than ten (10) days after its execution.

SECTION 7. CERTIFICATION
The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Banning’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

PASSED, APPROVED AND ADOPTED this 23rd day of September, 2025.

Sheri Flynn, Mayor
City of Banning
ATTEST:

Sandra Calderon, Acting Administrative City Clerk
City of Banning
99 Ordinance 1611

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APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney, LLP
100
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CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning, California, do hereby certify that Ordinance 1611 was duly introduced at a regular meeting of the City Council of the City of Banning, held on the 23rd day of September, 2025, and was duly adopted at a regular meeting of said City Council on the __ day of October, 2025, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Administrative City Clerk
City of Banning, California
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EXHIBIT A
Legal Description

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BANNING, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

THOSE CERTAIN PARCELS OF LAND LOCATED WITHIN THE MORONGO INDIAN

RESERVATION, LOCATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING THOSE PORTIONS OF SECTION 1, 2 AND 12 OF TOWNSHIP 3 SOUTH, RANGE 1 EAST,

SAN BERNARDINO MERIDIAN, AS SHOWN ON THE OFFICIAL PLAT THEREOF, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 2;

THENCE ALONG THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 2 SOUTH 89°40'06" EAST 489.00 FEET TO A LINE PARALLEL WITH AND 489.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 2, SAID POINT BEING THE TRUE POINT OF BEGINNING;
THENCE ALONG SAID PARALLEL LINE NORTH 00°21'44" EAST 342.00 FEET TO A LINE PARALLEL WITH AND 342.00 FEET NORTHERLY OF SAID SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SECTION 2;
THENCE ALONG SAID PARALLEL LINE SOUTH 89°40'06" EAST 2164.30 FEET TO THE EASTERLY LINE OF SAID SECTION 2;

THENCE CONTINUING ALONG THE EASTERLY PROLONGATION OF SAID PARALLEL LINE SOUTH 88°36'14" EAST 107.02 FEET TO A LINE PARALLEL WITH AND 107.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 1;
THENCE ALONG SAID PARALLEL LINE SOUTH 00°17'18" WEST 270.81 FEET TO THE NORTHERLY LINE OF A STRIP OF LAND 16.50 FEET IN WIDTH, EXCEPTED FROM GRANT DEED REC. 10/7/2004 AS DOC. NO. 2004-0797131, OFFICIAL RECORDS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA (DEPT. OF INT. FILING 582 173Y07); THENCE ALONG SAID NORTHERLY LINE SOUTH 89°47'09" WEST 107.00 FEET TO THE WESTERLY LINE OF SAID SECTION 1;
THENCE ALONG SAID WESTERLY LINE SOUTH 00°17'18" WEST 16.50 FEET TO THE SOUTHERLY LINE OF THE AFOREMENTIONED 16.50 FOOT STRIP;
THENCE ALONG SAID SOUTHERLY LINE NORTH 89°47'09" EAST 107.00 FEET TO A LINE PARALLEL WITH AND 107.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 1;
THENCE ALONG SAID PARALLEL LINE SOUTH 00°17'18" WEST 52.58 FEET TO THE SOUTH LINE OF SAID SECTION 1, SAID POINT IS LOCATED ON A LINE PARALLEL WITH AND 107.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 12; 102
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THENCE ALONG SAID PARALLEL LINE SOUTH 00°03'26" WEST 1044.17 FEET TO THE

NORTHERLY LINE OF THAT CERTAIN FINAL ORDER OF CONDEMNATION RECORDED AUGUST 19, 1963 AS INST. NO. 87113 AND THAT CERTAIN FINAL ORDER OF CONDEMNATION RECORDED SEPTEMBER 26, 1967 AS INST. NO. 84776, BOTH OF OFFICIAL RECORDS OF SAID COUNTY OF RIVERSIDE. SAID NORTHERLY RIGHT OF WAY LINE BEING DEPICTED CALTRANS RIGHT-OF-WAY MAP NO. 984524 FILED IN BOOK 204 PAGE 91 OF CALTRANS RIGHT-OF-WAY MAPS AND CALTRANS RIGHT-OF-WAY MAP NO. 452194 FILED IN BOOK 205 PAGE 263 OF CALTRANS RIGHT-OF-WAY MAPS, BOTH ON FILE IN THE MISC. RECORDS OF THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY OF RIVERSIDE;
THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY SOUTH 71°02'58" WEST 113.17 FEET TO THE WESTERLY LINE OF SAID SECTION 2;
THENCE ALONG SAID WESTERLY LINE OF SECTION 12 NORTH 00°03'26" EAST 1081.36 FEET TO THE SOUTHEAST QUARTER OF THE AFOREMENTIONED SECTION 12;

THENCE ALONG THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SECTION 2 NORTH 88°36'14" WEST 2641.66 FEET TO THE SOUTH QUARTER CORNER OF SECTION 2;

THENCE ALONG THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SECTION 2 NORTH 89°40'06" WEST 2161.30 FEET TO THE TRUE POINT OF BEGINNING;

RESERVING THEREFROM AN EASEMENT FOR INGRESS, EGRESS AND UTILITIES, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 2;

THENCE ALONG THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 2 SOUTH 89°40'06" EAST 2583.30 FEET TO A POINT 67.00 FEET WESTERLY OF THE SOUTH QUARTER CORNER OF SAID SECTION 2, SAID POINT IS THE TRUE POINT OF BEGINNING;
THENCE NORTH 00° 21'44" EAST 342.00 FEET TO A LINE PARALLEL WITH 342.00 FEET NORTHERLY OF SAID SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SECTION 2; THENCE ALONG SAID PARALLEL LINE SOUTH 89°40'06" EAST 69.98 FEET TO A LINE PARALLEL WITH AND 342.00 FEET NORTHERLY OF THE SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 2;
THENCE ALONG SAID PARALLEL LINE SOUTH 88°36'14" EAST 30.02 FEET; THENCE SOUTH 00°21'44" WEST 342.06 FEET TO THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 2;
THENCE ALONG SAID SOUTHERLY LINE NORTH 88°36'14" WEST 33.02 FEET TO THE SOUTH QUARTER CORNER OF SAID SECTION 2;
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THENCE ALONG THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 2 NORTH 89°40'06" WEST 66.98 FEET TO THE TRUE POINT OF BEGINNING.

APN: 532-030-008, 532-030-009, 532-080-008, 532-080-010, 532-090-026, 532-090-028 AND 532-090-030
PARCEL 2:

THAT PORTION OF THE NORTHEAST 1/4 OF SECTION 11, TOWNSHIP 3 SOUTH, RANGE 1

EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO UNITED STATES

GOVERNMENT SURVEY, LYING NORTHERLY OF THAT CERTAIN PORTION OF SAID NORTHEAST 1/4 CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED OCTOBER 11, 1961, AS INSTRUMENT NO. 87046 IN BOOK 2997, PAGE 542, OFFICIAL RECORDS.

EXCEPTING THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL

HYDROCARBONS, MINERALS, GEOTHERMAL RESOURCES, AND MINERAL ORES OF

EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, SOLID, LIQUID OR GAS AND

WHETHER OR NOT HEREAFTER KNOWN TO SCIENCE OR INDUSTRY, NOT KNOWN TO

EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR

UNDERLYING THE SURFACE OF SAID LAND AS SHOWN IN DEED RECORDED JANUARY 28, 1987 AS INSTRUMENT NO. 24458 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

APN: 532-110-015
PARCEL 3:

A NON-EXCLUSIVE EASEMENT FOR ROAD PURPOSES UPON, OVER AND ACROSS THAT PORTION OF THE EAST 1/2 OF THE NORTHWEST 1/4 OF SECTION 11, TOWNSHIP 3 SOUTH, RANGE 1 EAST, SAN BERNARDINO BASE AND MERIDIAN, INCLUDED WITHIN A STRIP OF LAND 20 FEET WIDE, THE NORTHERLY LINE OF WHICH IS DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EAST LINE OF THE SAID NORTHWEST 1/4, DISTANT ALONG SAID EAST LINE SOUTH 0°41'41" WEST 1359.31 FEET FROM A 3/4 INCH IRON PIPE AND BRASS CAP MARKED "U.S.G.L.O. 1917" SET FOR THE NORTH 1/4 CORNER OF SAID SECTION;
THENCE NORTH 89°25'57" WEST, 1319.31 FEET TO THE WEST LINE OF THE SAID EAST 1/2.

ALSO THAT PORTION OF THE WEST 20 FEET OF SAID EAST 1/2 LYING SOUTHERLY OF THE SOUTHERLY LINE OF THE ABOVE DESCRIBED 20 FOOT STRIP.

EXCEPT THAT PORTION LYING SOUTHERLY OF THE FOLLOWING DESCRIBED LINE:

BEGINNING AT A POINT IN THE WEST LINE OF SAID EAST 1/2, DISTANT ALONG SAID WEST LINE SOUTH 0°25'01" WEST 1041.97 FEET FROM THE POINT OF INTERSECTION 104
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THEREOF WITH THAT CERTAIN LINE HEREINABOVE DESCRIBED AS HAVING A BEARING OF NORTH 89°25'57" WEST;
THENCE NORTHEASTERLY ALONG 545 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY FROM A TANGENT BEARING NORTH 56°01'51" EAST, THROUGH AN ANGLE OF 1°46'36", A DISTANCE OF 16.90 FEET;
THENCE NORTH 54°15'15" EAST 50 FEET, AS CREATED IN DEED RECORDED JUNE 10, 1968 AS INSTRUMENT NO. 53726, OFFICIAL RECORDS.
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EXHIBIT B
Development Agreement
106
4924-7261-4673.13/
393342.00002/10-6-25/jcc/kp

RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:

CITY OF BANNING
99 E. RAMSEY STREET
BANNING, CA 92220

BANNING, CALIFORNIA
ATTN: CITY CLERK
SPACE ABOVE THIS LINE FOR RECORDER’S USE
EXEMPT FROM RECORDING FEE PER GOVERNMENT CODE SECTION 6103

DEVELOPMENT AGREEMENT

BETWEEN

THE CITY OF BANNING
AND

JDNJ ENTERPRISES, LLC

CONCERNING

BANNING COMMERCE CENTER
107
4924-7261-4673.13/
393342.00002/10-6-25/jcc/kp
{This Page Left Intentionally Blank}
108
4924-7261-4673.13/
393342.00002/10-6-25/jcc/kp
THIS DEVELOPMENT AGREEMENT (the “Development Agreement”) is made and entered into this September 25, 2025, by and between the City of Banning, a California municipal corporation (the “City”), and JDNJ Enterprises, LLC, a Missouri limited liability corporation qualified to do business in the state of California (“Developer”). City and Developer may be referred to in this Development Agreement collectively as the “Parties” or each individually as a “Party.”

RECITALS

1. Article 2.5 of Chapter 4 of Division 1 of Title 7 of the California Government Code (“Development Agreement Statute”) and Chapter 17.60 of the Banning Municipal Code authorizes City to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property.

2. Developer is proposing to develop an approximately 1,320,000 square-foot tilt-up industrial building consisting of 39,600 square feet of office space and 1,280,400 square feet of warehousing, and trailer parking on approximately 131.33 acres of real property located entirely within the City of Banning, comprised of three parcels having seven Assessor’s Parcel Number (Assessor’s Parcel Numbers (APNs):
532-030-008, 532-030-009, 532-080-008, 532-080-010, 532-090-026, 532-090- 028, 532-090-030, 532-110-015.), and more specifically depicted and described in Exhibit A (hereinafter the “Site”).

3. City and Developer mutually desire to enter into this Development Agreement pursuant to the Development Agreement Statute in order to implement the Project.

4. On July 8, 2025, the City Council adopted Resolution No. 2025-106 approving Tentative Parcel Map No. 38576 to reconsolidate all existing parcels on the Site into two (2) parcels; and Design Review No. 21-7017 for construction of one concrete tilt-up industrial building as described in the preceding recitals.

Resolution No. 2025-106 and any attachments and exhibits thereto is hereby incorporated by this reference.

5. For purposes of this Development Agreement, the approvals granted by Resolution No. 2025-106 are referred to herein as the “Project Approvals.”

6. On August 26, 2025, the City Council adopted Ordinance No. 1611 approving this Development Agreement between the City and Developer and finding this Development Agreement to be consistent with the City’s General Plan and Zoning Code.

7. The terms and conditions of this Development Agreement have undergone extensive review by City staff and the City Council and have been found to be fair, just and reasonable. By electing to enter into this Development Agreement, the City agrees to bind future City Councils by the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of the City; and 109
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further finds that the best interests of the citizens of the City and the public health, safety and welfare will be served by entering into this Development Agreement.

8. As set forth in the Project Approvals and this Development Agreement, development of the Site in accordance with this Development Agreement will further important policies and goals of the City, eliminate uncertainty in planning, provide for the orderly development of the Site, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and provide substantial community benefits.

9. Developer has incurred and will in the future incur substantial costs in order to assure development of the Site in accordance with this Development Agreement, and has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Site in accordance with this Development Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the adequacy and receipt of which is hereby acknowledged, the Parties do hereby agree as follows:

AGREEMENT
SECTION 1. RECITALS
The Recitals are part of this Development Agreement and shall be enforceable as any other provision.

SECTION 2. DEFINITIONS
The following defined terms shall have the meanings set forth in this Section 2 unless a different meaning is clearly intended by the context in they are used.

A. “Development Agreement” means this Development Agreement.

B. “City” means the City of Banning.

C. “City Council” means the City Council of the City of Banning.

D. “City Manager” means the City Manager of the City of Banning.

E. “Developer” means JDN Enterprises, LLC, a Missouri limited liability corporation.

F. “Development Impact Fee Program” or “DIF Program” means City’s program of collection and use of development impact fees, including fees for Police Facilities, Fire Facilities, Parkland and Park Facilities, General City Facilities, Transportation Facilities, Wastewater Facilities, and Water Facilities (collectively “DIF”) as set forth in Banning City Council Resolutions 2019-112, as it may be amended or superseded, City’s Update of Traffic Fee Component of the Development Fee Program dated May 2019 and Development Impact Fee Update Study, dated 110
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August 7, 2019. The DIF Program also includes the regional MSHCP impact fee program imposed by the City in cooperation with Western Riverside County Regional Conservation Authority (“RCA”) and the TUMF impact fee program adopted by the City in cooperation with Western Regional Council of Governments (“WRCOG”).

G. “Effective Date” shall mean the date that Ordinance No. 1611 approving this Development Agreement becomes effective.

H. “Existing Development Regulations,” subject to the exclusions and reservations set forth in Section 7, means all ordinances, resolutions, codes, rules, regulations and official policies of the City in force as of the Effective Date and governing the development of the Project and use of the Site; including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications.

I. “Municipal Code” means the Banning Municipal Code, as amended from time to time.

J. “Project” means the proposed development of the Site with 1,320,284 square-foot tilt-up industrial building consisting of 39,600 square feet of office space and 1,312,284 square feet of warehousing and trailer parking in a manner consistent with the Project Approvals and the terms and conditions of this Development Agreement.

K. “Project Approvals” means EIR 2022090102, SCH Number 2022090102, Tentative Parcel Map No. 38576 and Design Review No. 21-7017.

L. “Second Transportation Payment” shall have the meaning ascribed to it in Section 9(B) below.

M. “Site” means the real property that is the subject of the Project Approvals and as legally described in Exhibit A to this Development Agreement.

N. “Term” shall have the meaning ascribed to it in Section 6 below.

O. “Transfer” means any sale, lease, encumbrance, or other transfer of all or any portion of the Project or any interest therein.

P. “Transferee” means any person, partnership, limited liability company, joint venture, firm, or corporation who acquires an interest in the Site pursuant to a Transfer and assumes, or is deemed to assume, Developer’s obligations hereunder with respect to such interest.

Q. “Transportation Public Benefit Fee” shall have the meaning ascribed to it in Section 9(B) below.
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SECTION 3. DEVELOPER’S REAL PROPERTY INTEREST
Developer warrants and represents that, as of the Effective Date, it has or will have legal title to or an equitable interest in the Site; that it has full legal right to enter into this Development Agreement; and that the persons executing this Development Agreement on behalf of each Developer have been duly authorized to do so.

SECTION 4. RELATIONSHIP OF THE PARTIES
It is hereby specifically understood and acknowledged that the Project is a private development and that neither the City nor Developer will be deemed to be the agent of the other for any purposes whatsoever.

SECTION 5. BINDING EFFECT OF DEVELOPMENT AGREEMENT
A. Covenants, Reservations, and Restrictions. Developer hereby subjects the Project and the Property to the covenants, reservations, and restrictions as set forth in this Development Agreement. The City and Developer hereby declare their specific intent that the covenants, reservations and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon each of Developer’s successors and assigns in title or interest to the Site. The Parties hereby further declare their understanding and intent that the benefit of such covenants, reservations, and restrictions touch and concern the land by enhancing and increasing the enjoyment and use of the Site by Developer and the future occupants of the Site, the intended beneficiaries of such covenants, reservations, and restrictions, and by furthering the public purposes for which this Development Agreement is adopted. Each and every contract, deed, or other instrument hereinafter executed, covering, or conveying the Site or any portion thereof shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this Development Agreement, regardless of whether such covenants, reservations, and restrictions are set forth in such contract, deed, or other instrument.

B. Recordation. The City Clerk shall record this Development Agreement in the Official Records of the County Recorder of the County of Riverside within ten (10) days following the Effective Date. Upon the expiration or termination of this Development Agreement and the request of Developer, the City will execute and deliver, in recordable form, an instrument confirming that this Development Agreement is of no further force or effect.

SECTION 6. TERM
The Term of this Development Agreement shall commence on the Effective Date and shall expire fifteen (15) years thereafter (the “Initial Term”) unless terminated sooner as provided in this Development Agreement. Unless Developer is in default under this Agreement, the Term shall automatically be extended for an additional five (5) years if prior to the expiration of the Initial Term, the Developer has provided City with the initial Transportation Public Benefit Fee in the amount of Two Million Five Hundred Thousand Dollars ($2,500,000) as specified in Section 9.B. Unless otherwise specified in this 112
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Development Agreement, the respective rights and obligations of the Parties hereto shall remain in full force and effect throughout the Term. Notwithstanding any provision to the contrary herein, in the event that, for any reason whatsoever, Developer fails to acquire fee simple title to the Property ("Fee Title") within 180 days following the Effective Date ("Fee Title Deadline"), Developer may elect, in its sole and absolute discretion, with the written approval of the fee title owner, and upon written notice to the City within sixty (60) days following the Fee Title Deadline, to terminate this Agreement and the Project Approvals. Effective upon such termination by Developer and fee title owner, this Agreement and the Project Approvals shall be of no further force or effect. After the Fee Title Deadline, if Developer has failed to acquire Fee Title and the fee title owner does not issue written approval of termination of this Agreement within five (5) days after the Fee Title Deadline, Developer shall no longer be subject to any of the obligations created in this Agreement or in the Project Approvals.

SECTION 7. VESTING OF DEVELOPMENT RIGHTS
A. General Statement. As a material inducement to Developer and its lenders to continue with diligent efforts to promote the development of the Property, Developer shall have the vested right to develop the Project on the Site in accordance with the terms and conditions of the Project Approvals, this Development Agreement, and the Existing Development Regulations, and City shall have the right to control development of the Site in accordance with the provisions of the Project Approvals, this Development Agreement, and the Existing Development Regulations.

B. Existing Development Regulations. In accordance with the terms of Gov. Code, § 65866, City and Developer agree the development of the Project on the Site shall be subject to all ordinances, resolutions, codes, rules, regulations and official policies of the City in force as of the Effective Date and governing the development and of the Site, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the development of the Site (collectively “Existing Development Regulations”) except as otherwise provided in this Development Agreement.

C. Exclusions and Reservations.

1. “Existing Development Regulations” excludes, and nothing in this Development Agreement shall preclude the application of, any municipal ordinance, resolution, code, rule, regulation or official policy, laws, and regulations that do not conflict with Developer’s vested rights to develop and use the Property in accordance with this Development Agreement.

Developer shall comply with such nonconflicting laws and regulations as may from time to time be enacted or amended hereafter.
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2. Without limitation to the foregoing exclusions or any nonconflicting law, City hereby expressly reserves its right with regarding to the Project and the Site to apply and enforce any municipal ordinance, resolution, code, rule, regulation or official policy, laws, or regulations regarding: (i) the conduct of businesses, professions, and occupations; (ii) taxes, fees, charges, and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of similar rights and interests that provide for the use of or the entry upon public property; (v) the exercise of the power of eminent domain; (vi) any and all new health and safety regulations (e.g., fire, building, and seismic, plumbing, and electric codes) made applicable in the City, inclusive of any similar such codes based upon uniform codes and incorporated by reference into the Banning Municipal Code; and (vii) procedural rules of general city-wide application, provided that City agrees to nevertheless process any Minor Modifications to Tentative Parcel Map No. 38576 or Design Review No. 21-7017 pursuant to the Chapter 17.84 of the Banning Municipal Code as that Chapter reads as of the Effective Date regardless of any later Municipal Code amendment.

Such Minor Modifications may include modifications which do not: (a) alter the permitted uses of the Site; (b) increase the maximum height and size of permitted buildings or structures in excess of the originally approved Project; or constitute a project requiring a subsequent or supplemental environmental impact report pursuant to Public Resources Code § 21166.

D. Superior Law. Nothing in this Development Agreement shall preclude the application to the Project and the Site of those changes in City ordinances, regulations, plans, or specifications that are: (i) specifically mandated and required by changes in state or federal laws or regulations as provided in Government Code § 65869.5 or any successor provision or provisions; (ii) required to ensure public safety and are made applicable throughout the City; or (iii) required to ensure access under the Americans with Disabilities Act. In the event such changes prevent or preclude compliance with one or more of the provisions of this Development Agreement, such provisions of this Development Agreement shall be modified or suspended or performance thereof delayed, to the extent necessary to comply with such changes in the law.

SECTION 8. DEVELOPMENT TIMING; PERMIT PROCESSING
A. Developer’s Discretion. Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), that failure to provide for the timing of development resulted in a later adopted initiative restricting the timing of development, it is the Parties’ intent to avoid that deficiency by acknowledging and providing that Developer shall have the right (without obligation), subject to the provisions of this Development Agreement, to complete the Project in such order and at such rate and at such times as Developer deems appropriate within the exercise of its subjective business judgment. 114
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B. Permit Processing. The City and its officers, agencies and departments shall not unreasonably delay the processing of any application for any permit or approval necessary to commence or complete the Project.

C. Provision of Real Property Interests by City. In any instance where Developer is required to construct any public improvement on land not owned by Developer, Developer shall at its sole cost and expense provide or cause to be provided, the real property interests necessary for the construction of such public improvements.

In the event Developer is unable, after exercising reasonable efforts over a period of at least 180 days to acquire the real property interests necessary for the construction of such public improvements (“Offsite Interests”), and if so requested by Developer and upon Developer’s provision of adequate security for costs City may reasonably incur as determined by City in its discretion, City may negotiate to attempt to purchase the Offsite Interests in order to allow Developer to construct the public improvements as required by the Project Approvals or this Development Agreement. If City is unable to acquire the Offsite Interests through a voluntary transaction, City shall consider acquiring the Offsite Interests through using its power of eminent domain to acquire such required real property interests. If City does elect in its discretion to exercise its power of Eminent domain, Developer shall pay all reasonable costs associated with such acquisition or condemnation proceedings as determined by City in its discretion and shall enter into a land acquisition agreement (“LAA”) with City in a form approved by the City Attorney.

The LAA shall provide among other things, that the Developer shall provide a deposit in an amount determined by the City to cover the City’s staff, legal and other expenses associated with the condemnation proceedings. This Section is not intended by the Parties to impose upon the Developer an enforceable duty to acquire land or construct any public improvements on land not owned by Developer, except to the extent that the Developer elects to proceed with the development of the Project, and then only in accordance with valid conditions imposed by City upon the development of the Project under the Subdivision Map Act or other legal authority. If after using good faith efforts to acquire the Offsite Interests, Developer is unable to acquire the Offsite Interests, and City, in its reasonable discretion, refuses to use its power of eminent domain to acquire the Offsite Interests, City shall waive the requirement for Developer to acquire the Offsite Interests, or if development of the Project cannot proceed without acquisition of the Offsite Interests, the Parties shall meet and confer in good faith to attempt to devise alternatives to allow the Project to proceed without acquisition of the Offsite Interests.

D. Subdivision Map Extension and Other Development Approvals. As permitted by Government Code § 66452.6, each subdivision or parcel map, heretofore or hereafter approved in connection with development of the Site or the Project shall be extended and shall remain in effect for the term provided by this Agreement. If Developer, in its sole and absolute discretion, chooses to process vesting tentative maps, City shall process such vesting maps subject to and in accordance with the Existing Land Use Regulations, the Subdivision Map Act. Subject to and in accordance with the Existing Land Use Regulations, and the Subdivision Map Act any tentative map, either vesting or non-vesting, may be processed in phases. In 115
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addition, Design Review No. 21-7017 and all subsequently adopted discretionary project approvals shall remain in effect for the term provided by this Development Agreement.

E. Development Impact Fees. Development Impact Fees (“DIF”) currently imposed are identified in Resolution 2019-112 adopted by the City Council on September 10, 2019. “DIF” also includes TUMF and MSHCP. A schedule showing the DIF applicable to industrial uses only in place as of the Effective Date (excluding MSHCP and TUMF) is attached as Exhibit “B”. If other uses are sought by Developer the DIF for such use shall apply. DIF and sewer and water connection and capacity fees shall be those in effect at the time of the issuance of a building permit and due and payable by Developer prior to the issuance of the building permit for the building in question. For the sake of clarity, as a condition to building permit issuance for each industrial building, Developer shall pay the development impact fees listed on Exhibit “B” as well TUMF and MSHCP for such building in the amount in effect at the time the building permit for such building is issued, as well as any new or increased DIF authorized by this Agreement. For the sake of clarity, Developer shall be subject to all increases and amendments to DIF at all times.

Notwithstanding the forgoing, the City may apply subsequently adopted new categories of DIF to the Project if the same are applied uniformly to development either throughout the City or within a defined area of benefit that includes the Property if the subsequently adopted DIF is not applied on an ad hoc basis solely to the Project and the subsequently adopted fee does not physically prevent development of the Property for the uses and to the density and intensity of development set forth in this Agreement. Notwithstanding the foregoing, if Developer is not in default under this Agreement and has made the initial Transportation Public Benefit Fee of Two Million Five Hundred Thousand Dollars ($2,500,000) as specified below, prior to first anniversary of the Effective Date, the City agrees not impose any new category of DIF on the Project for a period of Five Years after the Effective Date.

SECTION 9. PUBLIC BENEFITS
A. Intent. This Section sets forth the terms and conditions under which Developer agrees to provide public benefits in consideration of the of the benefits conferred on Developer and the Site by this Development Agreement.

B. Transportation Public Benefit Fee. Developer shall pay City a Transportation Public Benefit Fee in the amount of Nine Million Dollars ($9,000,000) (“Transportation Public Benefit Fee”).Two Million Five Hundred Thousand Dollars ($2,500,000) of the Transportation Public Benefit Fee will be paid no later than one (1) year from the Effective Date and the remaining amount of Six Million Five Hundred Thousand Dollars ($6,500,000) (“Second Transportation Payment”) prior to the issuance of the Project’s first building permit. If the Second Transportation Payment is not paid prior to the second anniversary of the Effective Date, the amount of the Second Transportation Payment will increase annually equal to the annual percentage change in the Consumer Price Index published by the U.S.

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Bernardino-Ontario Area, measured as of the month of April in the previous Fiscal Year, but not less than one percent (1%) and not greater than five percent (5%) .

The City shall solely use the Ramsey Interchange Fee for the design and construction of the Ramsey-Interstate 10 interchange and or the Hargrave Street interchange. The City acknowledges and agrees that the City shall not impose any other fee or exaction upon Developer for the Ramsey-Interstate 10 interchange.

C. Electrical Facilities Fee. Developer shall pay City an Electrical Facilities Fee equal to Three Hundred and Fifty-Seven Thousand Dollars ($357,000) per megavoltamperes (MVA) of requested electrical load due and payable pro rata prior to issuance of any building permit (“Electric Facilities Fee”). City shall use the proceeds of the Electrical Facilities Fee solely for the design or construction of new or expanded electrical facilities, which can include reimbursement to the City for part of the cost of an existing electrical facility substation which the City has funded.

D. Electrical Substation Land Dedication. Developer shall reserve and offer to dedicate to City lettered-lot “C” on the proposed Tentative Parcel Map No. 38576 for the Banning Electrical Utility to have the option to construct a new electrical substation (“Substation Property”). Such offer of dedication shall occur at the time final Parcel Map No. 38576 is recorded. If the City accepts the offer of dedication and undertakes construction of the electrical substation on the Substation Property, construction of the electrical substation shall be undertaken by the City at no cost to Developer. If the City accepts the offer of dedication for the Substation Property, City or its successors shall not use the Substation Property for any purpose other than a substation and related uses. If the City accepts the offer of dedication for the Substation Property, within thirty (30) days of City’s acceptance of the dedication, City shall pay the amount of the fair market value (“FMV”) of the Substation Property to the Developer, with the amount of the payment capped at the amount of the Electric Facilities Fee Acquisition of the Substation Property shall be at the sole discretion of the City and the City may in its sole discretion elect not to acquire the Substation Property.

E. Prior to the issuance of the first certificate of occupancy within the Project, the Developer shall be required to take all actions required to improve Hathaway Street, as depicted in Exhibit “C”.

F. The Developer shall use reasonable efforts to hire residents of the City of Banning.

Developer will hold at least one local job fair with the City for the purpose of recruiting workers from the City.

G. Sanitary Lift Station Land Construction and Dedication. Developer shall construct a sanitary lift station (“Lift Station”) on lettered lot “D” on the proposed Tentative Parcel Map No. 38576 (“Lift Station Property”) subject to plans and specifications approved by the Public Works Director and as contemplated by the Sewer Master Plan dated March 2018. City shall issue DIF credits against the wastewater DIF which includes the Lift Station and Lift Station Property in the amounts of (i) the cost of designing and constructing the Lift Station, and (ii) the FMV of the Lift 117
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Station Property (collectively, “Lift Station Costs”) in an amount not to exceed the Developer’s wastewater DIF obligation. Developer shall complete construction of the Lift Station prior to the issuance of the first certificate of occupancy for the Project. Developer is aware that the sewer force main near the Project running to Nicolet was installed by a previous developer on its property, and Developer must obtain the consent of the property owner to use this sewer force main for the Project and to undertake any additional improvements to the sewer force main at its sole cost and expense.

H. FMV Process. In order to determine the FMV of the Substation Property and the Lift Station Property, City shall commission an appraisal for each property, which shall be addressed to City and Developer, at Developer’s sole expense, prepared by a licensed appraiser holding a MAI designation from the Appraisal Institute (“Developer’s Appraiser”) with at least 15 years’ experience in appraising similar properties in the same geographical region. The FMV shall be based upon the the assumption the Property has in place all needed discretionary approvals to develop a project similar in nature to the Project. The appraiser shall use a date of valuation which is the current date of the appraisal. Developer’s Appraiser shall deliver a written report as to their opinion of FMV for each property within sixty (60) days after such appraiser has been retained by Developer. Upon receipt of Developer’s appraisal, the City shall have thirty (30) days to review the appraisal and agree or dispute the determination of FMV. In the event that the City disputes the FMV determined by Developer’s appraisal, the City shall be entitled to commission a second appraisal, at the City’s own expense, prepared by a licensed appraiser having the qualifications provided above (“City’s Appraiser”). The City’s Appraiser shall deliver a written report as to their opinion of FMV for the property within sixty (60) days after such appraiser has been retained by the City. If the higher appraisal is equal to or less than 120% of the lower appraisal, the two appraisals will be added together and their total divided by two; the resulting quotient will be the FMV of the property in question. If the higher appraisal is greater than 120% of the lower appraisal, the Parties shall have sixty (60) days after Developer’s receipt of the City’s appraisal to reach a negotiated resolution. If the Parties are unable to reach a negotiation resolution, the Parties shall reasonably cooperate to select a third licensed appraiser having the qualifications provided above(“Review Appraiser”) to make a final determination of FMV. If the Parties are unable to agree on the selection of the Review Appraiser, the Parties shall jointly petition the Riverside County Superior Court to select a Review Appraiser. The Parties will equally share the fees and expenses associated with the Review Appraiser, including but not limited to, the Parties’ joint petition to select a Review Appraiser and the Review Appraiser’s fees. The Review Appraiser shall review the two appraisals and then make a determination of FMV, which shall be no less than the value of the lower appraisal and no greater than the value of the higher appraisal. The Review Appraiser’s determination of FMV shall be binding on all Parties.
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I. Community Facilities Districts.

1. Service CFD. Developer agrees, pursuant to the Mello Roos Act, to petition the City or, alternatively, California Statewide Communities Development Authority (“CSCDA”) to form a community facilities district, the boundaries of which shall be coextensive with those of the Site (the “Service CFD”) for the purpose of financing City services and ongoing maintenance of public improvements provided by the City to the parcels within the boundaries of the Service CFD the cost of which shall be solely borne by the Developer, provided such services qualify as authorized services under the Mello Roos Act (collectively, “Authorized Services”). The Service CFD shall be a condition to the City’s issuance of the first certificate of occupancy for the Project.

2. If City sponsors the formation of the Service CFD, City shall initiate the process promptly following submission of Developer’s petition and compliance with Section 53318(d) of the Mello-Roos Act and shall use good faith, diligent efforts to form the Service CFD, including the scheduling of necessary public hearings at the cost of Developer. If requested, Developer will execute a reimbursement agreement providing for the advance deposit of monies to reimburse City for the cost of its implementing the CFD.

Developer agrees to cooperate in the formation and agrees that it will not contest and will exercise all of its voting power in favor of the formation of the Service CFD. Should Developer request CSCDA to sponsor the formation of the Service CFD, City shall cooperate in process and agrees to use good faith efforts to take all necessary and appropriate actions to assist Developer and CSCDA in the formation of the Service CFD in accordance with Section 9.H.1, including the issuance of necessary consents in the formation process.

3. Developer and City shall reasonably cooperate in developing the rate and method of apportionment of special taxes for the Service CFD (“Service RMA”), which the Parties agree shall provide, in part: (a) the maximum Service Special Tax rate in the first year that there is a levy of the Service Special Tax shall be at a rate of $0.10 per building square foot, which amount shall be subject to an “Annual Escalation Factor” equal to the annual percentage change in the Consumer Price Index published by the U.S. Bureau of Labor Statistics for “All Urban Consumers” in the RiversideSan Bernardino-Ontario Area, measured as of the month of April in the previous Fiscal Year, but not less than three percent (3%) and not greater than five percent (5%); (b) the levying of the Service Special Tax shall commence in the first fiscal year following the issuance of a certificate of occupancy by May 1 of the preceding Fiscal Year, (c) the adoption of an annual budgeting process to establish the annual actual Service Special Tax rate, and (d) the Service Special Tax cannot be prepaid.

4. Facilities CFD At the discretion of the Developer, Developer may, pursuant to the Mello Roos Act, petition the City or, alternatively, pursue other 119
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financing alternatives, including requesting CSCDA to form a community facilities district, the boundaries of which shall be coextensive with those of the Site (“Facilities CFD,” collectively with Service CFD, the “CFDs”) for the purpose of financing (i) public infrastructure required under the Development Agreement, including without exception, public streets, highways, and bridges, and other related improvements such as grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway landscaping related thereto, water facilities, storm drain facilities, sewer facilities, public parks, landscaping, electrical facilities, (collectively, “Facilities”), and (ii) Development Impact Fees, including, without exception, the Public Benefit Fees described in Section B and C above (“Fees,” collectively with Facilities, “Authorized Facilities and Fees”).

If City agrees to sponsor the formation of the Facilities CFD, City shall initiate the process promptly following submission of Developer’s petition and compliance with Section 53318(d) of the Mello-Roos Act, and shall use good faith, diligent efforts to form the Facilities CFD and timely issue bonds (“CFD Bonds”), including the scheduling of necessary public hearings related to formation and issuance of CFD Bonds. Any costs incurrent in establishing the Facilities CFD and issuing the CFD Bonds shall be paid from the CFD Bond proceeds, or failing that by the Developer. Developer agrees to cooperate in the formation and agrees that it will not contest and will exercise all of its voting power in favor of the formation of the Facilities CFD and issuance of CFD Bonds. Should Developer request CSCDA to sponsor the formation of the Facilities CFD and be the issuer of the CFD Bonds, City shall cooperate in process and agrees to use good faith efforts to take cooperate with Developer and CSCDA in the formation of the Facilities CFD and the issuance of the CFD Bonds, including the issuance of necessary consents in the formation and bond issuance processes.

Developer and City shall reasonably cooperate in developing the rate and method of apportionment of special taxes for the Facilities CFD (“Facilities RMA”).

5. In the event Developer conveys or grants an easement to any portion of the Site to City or any other government agency and the property so conveyed is subject to payment of special taxes under the Facilities CFD formed pursuant to this Development Agreement and CFD Bonds have been issued and are outstanding, Developer shall prepay the special taxes pursuant to the terms of the Facilities RMA with respect to the portion of the Site subject to an easement or being conveyed prior to completion of any such conveyance or easement. Upon completion of the conveyance or grant of easement, Developer’s obligation to pay special taxes pursuant to the Facilities RMA and the Services RMA for the conveyed property shall terminate. Alternatively, the RMA may exclude the forgoing conveyance or grant of easement from the imposition of the special taxes to accomplish the goals of this paragraph.

6. Notwithstanding the foregoing, it is acknowledged and agreed by the Parties that nothing contained in this Development Agreement shall be construed 120
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as committing or requiring the City Council to authorize and approve the formation of the CFDs and/or the issuance of the CFD Bonds. Further, City and Developer agree that the practical ability to issue CFD bonds is subject to marketability and therefore, Developer and City will first consult with a mutually agreed upon public finance consultant, at Developer’s cost prior to forming a Facilities CFD.

7. Except as expressly set forth or reserved in this Development Agreement, City shall not, without the prior written consent of Developer, initiate the formation of any new financing district or assessment district involving the levy of special taxes or assessments for facilities or services applicable to the Project or any portion thereof during the term of this Agreement or prior to the substantial completion of the Project.

SECTION 10. COMPLIANCE REVIEW
Within ten (10) days of each anniversary of the Effective Date, Developer shall file a report with City containing sufficient evidence to demonstrate Developer’s good faith compliance with this Development Agreement, and City will review Developer’s report in good faith.

Pursuant to Gov. Code § 65865.1, if City finds and determines, as a result of its review, that there is substantial evidence that Developer has not complied in good faith with terms or conditions of this Development Agreement, City may terminate or modify the agreement. City does not waive any claim of defect in performance by Developer if after any annual review, City does not enforce this Development Agreement.

SECTION 11. TRANSFERS AND ASSIGNMENTS
A. Transfers. Developer shall have the right to sell, transfer or assign the Site in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code § 66410 et seq.) to any person, partnership, limited liability company, joint venture, firm or corporation at any time during the Term of this Development Agreement without the prior consent of City. City acknowledges and agrees it is likely in the future that Developer may transfer its interest in the Site to an affiliated entity. Developer and Transferee shall execute and record an Assignment and Assumption Agreement whereby the assignee agrees to perform all of the obligations of the Developer under this Development Agreement, a copy of which shall be delivered to the City contemporaneously upon the closing of such sale, transfer or assignment. Upon recordation of the Assignment and Assumption Agreement, Developer shall be released from its obligations with respect to such portion of, or interest in, the Project that was the subject of such Transfer.

B. Conditions Applicable to Transfers. Notwithstanding whether a Transferee has executed an Assignment and Assumption Agreement, a Transferee shall be deemed upon transfer or assignment to have assumed all Developer’s obligations and to have been assigned all of Developer’s rights under this Development Agreement, and will be deemed the Developer hereunder. This Development Agreement may only be transferred to a person or entity who acquires fee title to the Site or any portion of the Site. Notwithstanding anything herein to the contrary, 121
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in no event shall any Lender (as defined in Section 12 below) have any obligation under this Development Agreement unless and until such Lender purchases at a foreclosure sale, or accepts a deed in lieu of foreclosure, the portion of the Site that was subject to a mortgage.

C. Release of Transferring Developer. Notwithstanding any transfer, a transferring Developer shall continue to be obligated under this Development Agreement until the full satisfaction by such transferring Developer of the following conditions and upon such satisfaction shall be released from the obligations under this Development Agreement: (i) Developer no longer has a legal or equitable interest in all or any part of the Site; (ii) Developer is not then in default under this Development Agreement; and (iii) Developer has provided City with the notice and executed agreement required under Section 11(A) above. If requested by transferring Developer, the City shall promptly memorialize such release in writing upon satisfaction of the foregoing conditions. A default under this Development Agreement by Developer shall not be considered or acted upon by the City as a default by the transferee and shall not affect the transferee’s rights or obligations hereunder,. Likewise, a default by a transferee relating to the transferred portion(s) of the Site shall not be considered or acted upon by the City as a default by Developer and shall not affect Developer’s rights and obligations hereunder.

Notwithstanding the forgoing, if a default of this Development Agreement is of a continuing nature that affects continued development of the Project including, but not limited to a failure to complete public improvements in accordance with the Project Approvals as needed to provide service to the Project or the payment of any tax, fee or assessment such default shall be the continuing responsibility of the transferee, if the transferee has accepted the obligation to complete public improvements.

SECTION 12. LENDERS
A. Rights of Lender. Should Developer place or cause to be placed any encumbrance or lien on the Project, or any part thereof, the beneficiary (“Lender”) of such encumbrance or lien shall have the right at any time during the Term of this Development Agreement and the existence of such encumbrance or lien to: (i) do any act or thing required of Developer under this Development Agreement, or cure any default of Developer under this Development Agreement within the time limits set forth in this Development Agreement, and any such act or thing done or performed by Lender or cure shall be as effective as if done by Developer; (ii) realize on the security afforded by the encumbrance or lien by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the security document evidencing the encumbrance or lien (hereinafter referred to as “a trust deed”); (iii) transfer, convey or assign the title of Developer to the Site to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale contained in a trust deed; and (iv) acquire and succeed to the interest of Developer by virtue of any foreclosure sale, whether the foreclosure sale is conducted pursuant to a court order or pursuant to a power of sale contained in a trust deed. Should any Lender request an amendment of this Development Agreement in respect of the rights and 122
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remedies granted to a Lender, the City shall consider such an amendment in good faith and in accordance with state and local law so long as the proposed amendment does not materially and adversely affect the rights, powers, and remedies of the City in respect of a default by Developer hereunder.

B. Notice to Lender. City shall give written notice of any default or breach under this Development Agreement by Developer to Lender (if known by the City) simultaneously with such notice of default the City gives to Developer and afford Lender the opportunity after receipt of service of the notice to: (i) cure the breach or default within thirty (30) days after service of such notice, where the default can be cured by the payment of money; (ii) cure the breach or default within thirty (30) days after service of such notice where the breach or default can be cured by something other than the payment of money and can be cured within that time; or (iii) cure the breach or default in such reasonable time as may be required where something other than payment of money is required to cure the breach or default and cannot be performed within thirty (30) days after such notice, provided that acts to cure the breach or default are commenced within a thirty (30) day period after service of such notice of default on Lender by the City and are thereafter diligently completed by Lender.

C. Action by Lender. Notwithstanding any other provision of this Development Agreement, a Lender may forestall any action by the City for a breach or default under the terms of this Development Agreement by Developer by commencing proceedings to foreclose its encumbrance or lien on the Site. The proceedings so commenced may be for foreclosure of the encumbrance by order of court or for foreclosure of the encumbrance under a power of sale contained in the instrument creating the encumbrance or lien. The proceedings shall not, however, forestall any such action by the City for the default or breach by Developer unless: (i) they are commenced within thirty (30) days after service on Developer (and on Lender if Lender’s address is provided by notice to the City pursuant this Development Agreement) of the notice described hereinabove; (ii) they are, after having been commenced, diligently pursued in the manner required by law to completion within one year; and (iii) lender keeps and performs all of the terms, covenants, and conditions of this Development Agreement requiring the payment or expenditure of money by Developer until the foreclosure proceedings are complete or are discharged by redemption, satisfaction, or payment.

SECTION 13. NOTICES
Any notice or instrument permitted or required under this Development Agreement shall be deemed made when personally delivered or when mailed 72 hours after deposit in the United States Mail, certified mail postage prepaid and addressed to the party at the following addresses:

If to City: City of Banning
99 E. Ramsey Street
Banning, CA 92220
Attn: City Manager
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If to Developer JDNJ ENTERPRISES, LLC
120 South Central Avenue, Suite 500
St. Louis. MO 63105
Attn: John C. Condas
Allen Matkins Leck Gamble Mallory & Natsis LLP
2010 Main Street, Suite 800
Irvine, CA 92614
Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

SECTION 14. EVENT OF DEFAULT
Developer is in default under this Development Agreement upon the occurrence of one or more of the following events or conditions:

A. A material warranty, representation, or statement made or furnished by Developer to City set forth herein or in any document incorporated by reference herein is false or proved to have been false in any material respect when it was made.

B. City finds and determines upon the basis of substantial evidence following an annual review pursuant to this Development Agreement, that Developer has not complied in good faith with any material term and/or condition of this Development Agreement, subject to notice and opportunity to cure as provided by this Development Agreement.

C. Developer breaches any of the terms or conditions of this Development Agreement, after notice and opportunity to cure as provided in this Development Agreement.

SECTION 15. ENFORCEMENT
A. Notice; Cure. In the event of a default under the provisions of this Development Agreement by Developer or City, the non-breaching party shall give written notice to the defaulting party (or its successor) by registered or certified mail addressed at the address stated in this Development Agreement, and if such violation is not corrected to the reasonable satisfaction of the non-breaching party within thirty (30) days after such notice is served on the defaulting party, or if such breach or default cannot be cured within such thirty (30) days (excluding monetary defaults) and provided that acts to cure the breach or default must be commenced within such thirty (30) days and must thereafter be diligently pursued to completion by the defaulting party, then the non-breaching party may, without further notice, declare a default under this Development Agreement and, upon any such declaration of default, if the City is the defaulting party, Developer may bring any action necessary to specifically enforce the obligations of City. If Developer is the defaulting party, then City may give notice to Developer of its intent to terminate or modify this Development Agreement, in which event the matter shall be scheduled for consideration and review by the City Council.
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B. Remedies. The Parties acknowledge that money damages and remedies at law generally are inadequate and specific performance and other non-monetary relief are particularly appropriate remedies for the enforcement of this Development Agreement and should be available to the Parties for the following reasons: due to the size, nature, and scope of the Project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Development Agreement has begun. After such implementation, Developer may be foreclosed from other choices it may have had to utilize the Site or portions thereof. Developer has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Development Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Development Agreement, and it is not possible to determine the sum of money which would adequately compensate Developer for such efforts. Accordingly, it is expressly recognized that injunctive relief and specific enforcement of this Development Agreement are proper and desirable remedies, and it is agreed that in any claim by Developer against City for an alleged breach of this Development Agreement may avail itself to injunctive relief or an appropriate action for specific enforcement of this Development Agreement. It is agreed that specific performance is not available to City against Developer, although City can seek the remedy of injunctive relief, declaratory relief or any other appropriate remedy against Developer.

C. Nonperformance by Developer. Nonperformance by Developer shall not be excused because performance by Developer of the obligations herein contained would be unprofitable, difficult, or expensive, or because of a failure of any third party or entity, other than City.

SECTION 16. PARTIES NOT LIABLE FOR DAMAGES
It is acknowledged by the Parties that the City and Developer would not have entered into this Development Agreement if either could be held liable in damages under or with respect to this Development Agreement or the application thereof. Consequently, and except for the payment of attorneys’ fees in accordance with this Development Agreement, the City shall not be liable in damages to Developer, or to any assignee, transferee, or any other person, and Developer shall not be liable in damages to City.

Developer and City jointly covenant on behalf of itself and its successors in interest not to sue for or claim any damages: (i) for any breach of this Development Agreement; (ii) for the taking, impairment or restriction of any right or interest conveyed or provided hereunder or pursuant hereto; (iii) arising out of or connected with any dispute, controversy, or issue regarding the application or interpretation or effect of the provisions of this Development Agreement; or (iv) for any injury to or interference with the rights of Developer, allegedly or actually arising out of, or incurred in connection with, the Parties entering this Development Agreement, or their exercise of any rights under this Development Agreement. Notwithstanding the forgoing, City shall not be excluded from seeking money damages for non-payment of the Electric Facilities Fee or the Transportation Public Benefit Fee, including attorney fees. In addition, Developer shall 125
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not be excluded from seeking its attorneys fees in the case of a breach of this Agreement by City.

SECTION 17. INDEMNIFICATION AND LEGAL CHALLENGE
A. Claims For Damage For Personal Injuries. To the maximum extent permitted by law, Developer must defend, indemnify, and hold the City and its elected officials, officers, contractors serving as City officials, agents, and employees (“Indemnitees”) harmless from liability for damage and/or claims for damage for personal injuries, including death, and claims for property damage, and with respect to all other actions and liabilities for damages caused or alleged to have been caused by reason of Developer’s activities in connection with the development and/or construction of the Project, and which may arise from the direct or indirect operations of Developer or those of Developer’s contractors, agents, tenants, employees, or any other persons acting on Developer’s behalf, which relate to the development and/or construction of the Project. This indemnity provision applies to all damages and claims for damage, as described above, regardless of whether or not the City prepared, supplied, or approved the plans, specifications, or other documents for the Project, including any associated public or private improvements.

B. Prevailing Wages. Without limiting the generality of the preceding paragraph (A), Developer shall defend, indemnify, and hold the Indemnitees harmless from and against any and all claims, liabilities, losses, damages, costs, and expenses arising from or related to any claims that Developer or Developer’s contractors are required to pay prevailing wages pursuant to Labor Code Section 1720 et seq., in connection with the development of the Project or any public improvements.

C. Third Party Legal Challenge. Without limiting the generality of preceding paragraph A, in the event of any legal action challenging the validity, applicability, or interpretation of any provision of this Development Agreement, any of the entitlement documents pertaining to the Project including, without limitation, the City’s General Plan, Zoning Code, or any other supporting document relating to the Project, Developer shall also indemnify, defend, and hold harmless the Indemnitees with respect to all liability, costs, and expenses incurred by, and/or awarded against, the City or any of the Indemnitees in relation to such action. In addition, the Term, the obligations imposed herein, and the lifespan of all Project Approvals, presently in existence or in existence in the future, shall be extended day for day based upon a timely filed lawsuit challenging the validity or legality of this Agreement and/or any of the Project Approvals, until the date on which said challenge is finally resolved. Developer and City shall promptly notify the other Party to this Agreement upon learning of the filing any such third party litigation.

D. Legal Counsel; Cash Deposit. With respect to any legal action or claim falling within Developer’s defense, indemnity, and hold harmless obligations, the City shall have the right to select counsel of its choice and the Parties shall cooperate in the defense. The City’s separate counsel billing rates shall be identical to the rates City pays for its typical municipal litigation rates for legal challenges of the 126
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variety being defended. Developer shall provide, and maintain for the duration of such action or claim, a cash deposit to City in an amount or amounts determined by the City Attorney to be reasonably necessary to cover the City’s legal fees, costs, and expenses. Developer shall not be entitled to a refund of funds expended from the deposit regardless of the outcome of the action or claim. The City shall refund to Developer any unexpended funds from the deposit within thirty (30) days of any final disposition or full and complete settlement of the action or claim.

E. Continued Effect of Development Agreement. In the event of any litigation challenging the effectiveness of this Development Agreement, or any portion hereof, this Development Agreement shall remain in full force and effect while such litigation, including any appellate review, is pending, unless otherwise ordered by the court. Absent issuance of an injunction, Developer may elect to continue development of the Project under this Development Agreement pending completion of the litigation but it shall do so at its sole risk, and the City shall not be liable for any loss suffered as a result thereof. City shall perform all obligations under this Development Agreement, including the timely processing of all applications submitted by Developer in connection with the Project.

F. Survival. This Section shall survive this the expiration or earlier termination of this Development Agreement. Notwithstanding the foregoing, Developer’s obligation to indemnify any Indemnitee due to personal injury or property injury suffered in connection with Developer’s design and construction of any public facility, shall terminate one (1) year after City accepts Developer’s dedication of such public facility.

SECTION 18. ENTIRE AGREEMENT
This Development Agreement and the Exhibits therein contain the entire agreement between the Parties, and is intended by the Parties to completely state the Development Agreement in full. Any agreement or representation respecting the matters dealt with herein or the duties of any Party in relation thereto, not expressly set forth in this Development Agreement, is null and void.

SECTION 19. AMENDMENT OR CANCELLATION
Except as otherwise provided for herein, this Development Agreement may be amended or canceled in whole or in part only by mutual consent of the Parties, or their successors in interest, and in the manner provided in Gov. Code, §§ 65865.1, 65867, 65867.5.

SECTION 20. OPERATING MEMORANDA
The provisions of this Development Agreement require a close degree of cooperation between the City and the Developer. It is anticipated due to the term of this Development Agreement that non-substantive interpretation of the Development Approvals may be appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law and this Development Agreement, the City and Developer shall retain a certain degree of flexibility with respect to all matters, items and provisions covered in general under this Development Agreement. The Developer may request 127
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minor changes, adjustments or clarifications under this Agreement and the City and Developer may effectuate such changes, adjustments or clarifications through operating memoranda (“Operating Memoranda”) approved by the Parties in writing, which reference this Section of the Development Agreement. Operating Memoranda shall not constitute an amendment to this Development Agreement but mere ministerial interpretations or clarifications; therefore, public notices and hearings shall not be required. The City Attorney shall be authorized, upon consultation with the Developer, to determine whether a requested interpretation or clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to the Development Agreement which requires compliance with the provisions of this Development Agreement pertaining to amendments. The authority to enter into such Operating Memoranda is hereby delegated to the City Manager, and the City Manager is hereby authorized in his or her discretion to execute any Operating Memoranda permitted hereunder without Planning Commission or City Council action and without public hearing.

SECTION 21. MISCELLANEOUS PROVISIONS
A. Binding Effect. This Development Agreement shall bind, and the benefits and burdens hereof shall inure to, the respective Parties hereto and their legal representatives, executors, administrators, successors and assigns, wherever the context requires or admits.

B. Headings. Headings used in this Development Agreement are for reference purposes only and shall not be deemed a part of this Development Agreement.

C. Exhibits. Each exhibit referenced in this Development Agreement is hereby incorporated into the Development Agreement as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this Development Agreement, the terms of this Development Agreement shall control.

D. Time of Essence. Time is of the essence in every provision hereof in which time is a factor.

E. Force Majeure. In the event that any party hereto shall be delayed or hindered or prevented from performance of any act required hereunder by reason of acts of God, strikes, lockouts, labor troubles, riots, insurrection, terrorism, war, pandemics, epidemics or other reason of similar nature not the fault of the party delayed in performing the work or doing the acts required under the terms of this Development Agreement, then the performance of such act shall be excused for the period of the delay caused by the foregoing. Financial inability shall not be deemed an excuse for delay under this Section.

F. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel, or otherwise. 128
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G. Cooperation. Each of the Parties shall cooperate with and provided reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Development Agreement and the satisfaction of the conditions of this Development Agreement.

H. City Manager Authority. Any consent, approved or other instrument described in this Development Agreement may be granted, given or executed on behalf of the City by the City Manager or their written designee without the need for further authorization from the City Council; provided, however that, notwithstanding the foregoing, the City Manager or their designee may, in their sole discretion, refer to the City Council any item for which the City Manager has authority to act hereunder.

I. Conflicts of Interest; Prohibited Interests. Developer warrants and maintains as of the Effective Date of this Development Agreement that it has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Developer. If any information regarding an officer of employee of the City having an interest in this transaction or in the business of Developer as of the Effective Date of this Development Agreement comes to the knowledge of Developer at any time during the Term of this Development Agreement, Developer shall immediately make a complete, written disclosure of such interest to the City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws. If the City subsequently is provided information that Developer had knowledge but failed to disclose knowledge of any such interest, and Developer fails to acknowledge such interest within 14 days of notification by the City, Developer’s failure shall constitute a breach of the Development Agreement subject to the provisions of Section 14 of this Development Agreement.

J. Applicable Law and Venue. This Development Agreement shall be construed in accordance with and governed by the laws of the State of California. Venue for any action or litigation brought for breach or to enforce any provision of this Development Agreement shall be the County of Riverside, California.

K. Partial Invalidity. If any provisions of this Development Agreement shall be deemed to be invalid, illegal, or unenforceable, the validity, legality, or enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

L. Attorneys’ Fees. In any proceedings arising from the enforcement of this Development Agreement or because of an alleged breach or default hereunder, the prevailing party shall be entitled to recover its costs and reasonable attorneys’ fees and experts’ fees incurred during the proceeding (including appeals) as may be fixed within the discretion of the court.

M. Corporate Authority. Each person executing this Development Agreement on behalf of Developer warrants that he or she is duly authorized to execute this 129
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Development Agreement on behalf of Developer and that by his or her execution, Consultant is formally bound to the provisions of this Development Agreement.

N. Counterparts. This Development Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument.

O. No Third-Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Development Agreement.

P. Legally Binding Contract; Enforceability. It is the intent of City and Developer that this Development Agreement is a legally binding contract which shall prevail over the provisions of any subsequently enacted moratoria, statutes, ordinances, limitations, or other measures, enacted by City, or under the authority of City by voter initiative or referendum, and which initiative, moratorium, referendum, statute, ordinance, limitation, or other measure relates, in whole or in part, to the rate, timing, sequence, or phasing of the development or construction of all or part of the Project or the improvements or affecting parcel or subdivision maps, building permits, occupancy certificates, or other entitlement to use the Site which are issued by City, subject only to the rights and powers reserved to City under the terms of this Development Agreement and the requirements of California law IN WITNESS WHEREOF, the undersigned have executed this Development Agreement as of the day and year first above-written.

CITY

CITY OF BANNING,
a California municipal corporation
By: _________________________
Sheri Flynn
Mayor
ATTEST:

By: _________________________
Vickie Sellers
City Clerk

DEVELOPER

JDNJ ENTERPRISES, LLC,
a Missouri limited liability corporation
qualified to do business in California
By: JDNJ, LLC, its Manager
By: JDN Holding Co., LLC, its Manager
By: __________________________
James G. Sansone, Manager
By: __________________________
Douglas G. Sansone, Manager
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APPROVED AS TO FORM:

By: _________________________
John O. Pinkney
City Attorney
By: __________________________
Nicholas G. Sansone, Manager
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EXHIBIT A
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EXHIBIT A

SITE LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF BANNING,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

THOSE CERTAIN PARCELS OF LAND LOCATED WITHIN THE MORONGO INDIAN

RESERVATION, LOCATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING THOSE PORTIONS OF SECTION 1, 2 AND 12 OF TOWNSHIP 3 SOUTH, RANGE 1 EAST, SAN BERNARDINO MERIDIAN, AS SHOWN ON THE OFFICIAL PLAT THEREOF, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 2;

EXHIBIT A
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THENCE ALONG SAID SOUTHERLY LINE NORTH 89°47'09" EAST 107.00 FEET TO A LINE PARALLEL WITH AND 107.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 1;
THENCE ALONG SAID PARALLEL LINE SOUTH 00°17'18" WEST 52.58 FEET TO THE SOUTH LINE OF SAID SECTION 1, SAID POINT IS LOCATED ON A LINE PARALLEL WITH AND 107.00 FEET EASTERLY OF THE WESTERLY LINE OF SAID SECTION 12; THENCE ALONG SAID PARALLEL LINE SOUTH 00°03'26" WEST 1044.17 FEET TO

THE NORTHERLY LINE OF THAT CERTAIN FINAL ORDER OF CONDEMNATION RECORDED AUGUST 19, 1963 AS INST. NO. 87113 AND THAT CERTAIN FINAL ORDER OF CONDEMNATION RECORDED SEPTEMBER 26, 1967 AS INST. NO. 84776, BOTH OF OFFICIAL RECORDS OF SAID COUNTY OF RIVERSIDE. SAID

NORTHERLY RIGHT OF WAY LINE BEING DEPICTED CALTRANS RIGHT-OF-WAY MAP NO. 984524 FILED IN BOOK 204 PAGE 91 OF CALTRANS RIGHT-OF-WAY MAPS AND CALTRANS RIGHT-OF-WAY MAP NO. 452194 FILED IN BOOK 205 PAGE 263 OF CALTRANS RIGHT-OF-WAY MAPS, BOTH ON FILE IN THE MISC. RECORDS OF THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY OF RIVERSIDE; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY SOUTH 71°02'58" WEST 113.17 FEET TO THE WESTERLY LINE OF SAID SECTION 2;
THENCE ALONG SAID WESTERLY LINE OF SECTION 12 NORTH 00°03'26" EAST 1081.36 FEET TO THE SOUTHEAST QUARTER OF THE AFOREMENTIONED SECTION 12;

THENCE ALONG THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SECTION 2 NORTH 88°36'14" WEST 2641.66 FEET TO THE SOUTH QUARTER CORNER OF SECTION 2;

THENCE ALONG THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SECTION 2 NORTH 89°40'06" WEST 2161.30 FEET TO THE TRUE POINT OF BEGINNING;

RESERVING THEREFROM AN EASEMENT FOR INGRESS, EGRESS AND UTILITIES, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 2;

EXHIBIT A
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THENCE NORTH 00° 21'44" EAST 342.00 FEET TO A LINE PARALLEL WITH 342.00

FEET NORTHERLY OF SAID SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SECTION 2;
THENCE ALONG SAID PARALLEL LINE SOUTH 89°40'06" EAST 69.98 FEET TO A LINE PARALLEL WITH AND 342.00 FEET NORTHERLY OF THE SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 2;
THENCE ALONG SAID PARALLEL LINE SOUTH 88°36'14" EAST 30.02 FEET; THENCE SOUTH 00°21'44" WEST 342.06 FEET TO THE AFOREMENTIONED SOUTHERLY LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 2; THENCE ALONG SAID SOUTHERLY LINE NORTH 88°36'14" WEST 33.02 FEET TO THE SOUTH QUARTER CORNER OF SAID SECTION 2;

THENCE ALONG THE SOUTHERLY LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 2 NORTH 89°40'06" WEST 66.98 FEET TO THE TRUE POINT OF BEGINNING.

APN: 532-030-008, 532-030-009, 532-080-008, 532-080-010, 532-090-026, 532-090- 028 AND 532-090-030
PARCEL 2:

THAT PORTION OF THE NORTHEAST 1/4 OF SECTION 11, TOWNSHIP 3 SOUTH, RANGE 1 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO UNITED

STATES GOVERNMENT SURVEY, LYING NORTHERLY OF THAT CERTAIN PORTION OF SAID NORTHEAST 1/4 CONVEYED TO THE STATE OF CALIFORNIA BY DEED RECORDED OCTOBER 11, 1961, AS INSTRUMENT NO. 87046 IN BOOK 2997, PAGE 542, OFFICIAL RECORDS.

EXCEPTING THEREFROM, ALL RIGHT, TITLE AND INTEREST IN AND TO ALL

HYDROCARBONS, MINERALS, GEOTHERMAL RESOURCES, AND MINERAL ORES

OF EVERY KIND AND CHARACTER, METALLIC OR OTHERWISE, SOLID, LIQUID OR

GAS AND WHETHER OR NOT HEREAFTER KNOWN TO SCIENCE OR INDUSTRY,

NOT KNOWN TO EXIST OR HEREAFTER DISCOVERED UPON, WITHIN OR

UNDERLYING THE SURFACE OF SAID LAND AS SHOWN IN DEED RECORDED JANUARY 28, 1987 AS INSTRUMENT NO. 24458 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

APN: 532-110-015
PARCEL 3:
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EXHIBIT A
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ALSO THAT PORTION OF THE WEST 20 FEET OF SAID EAST 1/2 LYING SOUTHERLY OF THE SOUTHERLY LINE OF THE ABOVE DESCRIBED 20 FOOT STRIP.

EXCEPT THAT PORTION LYING SOUTHERLY OF THE FOLLOWING DESCRIBED LINE:

BEGINNING AT A POINT IN THE WEST LINE OF SAID EAST 1/2, DISTANT ALONG SAID WEST LINE SOUTH 0°25'01" WEST 1041.97 FEET FROM THE POINT OF

INTERSECTION THEREOF WITH THAT CERTAIN LINE HEREINABOVE DESCRIBED AS HAVING A BEARING OF NORTH 89°25'57" WEST;
THENCE NORTHEASTERLY ALONG 545 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY FROM A TANGENT BEARING NORTH 56°01'51" EAST, THROUGH AN ANGLE OF 1°46'36", A DISTANCE OF 16.90 FEET; THENCE NORTH 54°15'15" EAST 50 FEET, AS CREATED IN DEED RECORDED JUNE 10, 1968 AS INSTRUMENT NO. 53726, OFFICIAL RECORDS. 136
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EXHIBIT B
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EXHIBIT B

DIF SCHEDULE AS OF EFFECTIVE DATE
City of Banning Development Impact Fees1
Land Use Category Fire
Facilities
General
City
Facilities
Police Traffic Water Wastewater2
Nonresidential – Fee
per 1,000 Square Feet
- Industrial $236.00 $239.00 $170.00 $1,791.69
Per Table

8.5 in City
Council
Resolution
2019-112
$708.54
1 Represents the City of Banning Development Impact Fees for non-residential land uses effective November 9, 2019 per City Council Resolution No. 2019-112. 2 Wastewater Facilities Fee shown as per 1 EDU. Wastewater Facilities EDU Factors for every 1,000 square feet are 0.37 for Commercial, 0.13 for Office and 0.14 for Industrial.

City of Banning Development Impact Fees (cont’d.)
Land Use Category TUMF
3 MSHCP3
Industrial $2.33 per square foot
$20,191 per acre
Class A/B Office $2.45 per square foot
3 TUMF and MSHCP subject to annual increases.
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393342.00002/10-6-25/jcc/kp

EXHIBIT C
-6-

EXHIBIT C

HATHAWAY IMPROVEMENTS
The following shall be completed to the satisfaction of the City Engineer:
 Along the west side of N Hathway Street between E Williams Street and E George Street, install City standard sidewalk behind curb and gutter, and install city standard curb ramps at intersections. Install new residential driveways as necessary to maintain access to existing driveway locations.  Within the existing right-of-way and pavement along the west side of N Hathway Street between E Williams Street and future Wilson Street, install striping for a new 6 ft. bike lane.
 Within the existing right-of-way and pavement along the east side of N Hathway Street between E Williams Street and existing Nicolet Street, install striping for a new 6 ft. bike lane.
 At the intersection of E Jacinto View Road and N Hathway Street, provide traffic measure to restrict Project traffic from access to E Jacinto View Rd  At the intersection of E Nicolet Street and N Hathway Street, provide traffic measure to restrict Project traffic from access to E Nicolet Street  At the intersection of E George Street and N Hathway Street, provide traffic measure to restrict Project traffic from access to E George Street 138

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Jim Steffens, Power Resources Manager
Fred Lyn, Deputy Electric Utility Director
MEETING DATE: October 14, 2025
SUBJECT: Consideration of Resolution 2025-137 Approving the City of Banning Electric Utility's Power Source Disclosure Annual Report and Power Content Label for Calendar Year 2024
RECOMMENDATION:

Adopt Resolution 2025-137.

BACKGROUND:

On October 11, 2009, Governor Arnold Schwarzenegger signed California State Assembly Bill 162 (“AB 162”), which amended the Power Content Label reporting requirements originally set forth in Senate Bill 1305. The amendments changed the reporting requirements from quarterly to annual, and required that utilities report actual power content information instead of projected.

The information must be provided to the utility’s customers through either printed or electronic means, including posting it on the City’s website. The utility will provide it by posting an electronic copy of the Power Content Label on the City’s website.

The California Energy Commission (CEC), which has oversight authority for this requirement, has stated that the governing body of each locally owned public utility must approve both the Power Source Disclosure Annual Report and the annual Power Content Label for the utility(s) under its jurisdiction.

Therefore, Staff is requesting that the City Council approve Resolution 2025-137, accepting both the City of Banning Electric Utility’s Power Source Disclosure Annual Report, attached herewith as Exhibit “A”, and the City of Banning Electric Utility’s Power Content Label, attached herewith as Exhibit “B”.

JUSTIFICATION:

AB 162 requires that all load serving electric utilities develop and provide to its customers on an annual basis an approved Power Content Label. The Power Content Label shows the percentages of each type of energy resources that are used to serve an electric utility’s customers. The regulation has been amended beginning in calendar year 2019, requiring the governing body of each locally owned public utility to approve both the Power Source Disclosure Annual Report and the Power Content Label.

FISCAL IMPACT:

There is no fiscal impact in the adoption of Resolution 2025-137.

ALTERNATIVES:

Do not approve Resolution 2025-137 and provide alternative direction to staff. 139
BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. 2025-137 Resolution PCL.docx

2. Resolution 2025-137 Exhibit A v2.pdf

3. Resolution 2025-137 Exhibit B.pdf
140
Resolution 2025-137

Page 1 of 5 ends

Banning City CouncilOctober 14, 2025

Banning City Council
October 14, 2025