Agenda packet, regular meeting — Banning City Council, January 13, 2026 (part 1 of 4)

January 13, 2026
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:
https://us02web.zoom.us/j/82012644588?pwd=RwqtJC8xehLDKZvr3LEKOf9u8uP2pt.1 Dial in: +1 669 900 9128
Meeting ID: 820 1264 4588
Password: 92220
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 Todd Oldenburg of Thrive Church

1.2 PLEDGE OF ALLEGIANCE

1.3 ROLL CALL

2.1 AGENDA APPROVAL
City Council - Regular Meeting Agenda
January 13, 2026
1 3. PRESENTATIONS

4. REPORT ON CLOSED SESSION

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

6. CONSENT ITEMS

6.1 Consideration and Approval of the meeting minutes of the May 13, 2025, May 14, 2025, May 22, 2025, Regular meeting of November 12, 2025, and the Closed Session and Workshop of the November 9, 2025, City Council meetings.

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

6.3 Public Works Capital Improvement Project Tracking List

6.4 Consideration of Second Reading and Adoption of Ordinance 1614, Repealing and Replacing Chapter 12.32

6.5 Consideration of Resolution 2026-01 UA Approving the Fourth Amendment to the John Pinkney, City Attorney

5.1 PUBLIC COMMENTS
A three (3) minute limitation shall apply to each member of the public who wishes to address the Council on a matter not on the agenda. No member of the public shall be permitted to share their time with any other member of the public. PLEASE STATE YOUR NAME FOR THE RECORD.

5.2 CORRESPONDENCE

5.3 APPOINTMENTS
City Council Committee Assignments for 2026
Recommendation: Discuss and assign Council Members to serve on various committees to represent the City of Banning in
the 2026 calendar year.

5.4 CITY COUNCIL COMMITTEE REPORTS

5.5 CITY TREASURER'S REPORT

5.6 CITY MANAGER'S REPORT

5.7 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 of of the May 13, 2025, May 14, 2025, May 22, 2025, Regular meeting of November 12, 2025, and the Closed Session and Workshop of the November 9, 2025, City Council meetings.

Recommendation: City Council accept as complete various improvements related to the Atwell Specific Plan Development and authorize the 90% reductions in the improvements bonds.

Recommendation: Receive and file
Recommendation: Approve second reading and Adoption of Ordinance 1614.

City Council - Regular Meeting Agenda
January 13, 2026
2 Professional Services Agreement with Falen Law Offices, LLC for Legal Services related to the Transfer of the San Gorgonio Flume System Increasing the Agreement Amount by $250,000 and to Ratify $150,000 issued on July 2025

6.6 Consideration of Resolution 2026-01, Awarding a Professional Services Agreement to Carollo Engineers, Inc. in the amount of $150,000 to perform On-Call Water/Wastewater Hydraulic Feasibility Studies.

6.7 Consideration of Resolution 2026-02, Approving a Western Systems Power Pool Confirmation Letter Agreement with the City of Vernon for the Purchase of Thirteen Megawatts of Local / Flexible Resource Adequacy Capacity for Calendar Years 2027 through 2029 at a Cost of $8.25 per Kilowatt-month, or $1,287,000 Per Year.

6.8 Consider Resolution 2026-05 to Quitclaim City Property to the Riverside County Flood Control and Water Conservation District and to accept property to be Quitclaimed by the Riverside County Flood Control and Water Conservation District along Pershing Channel (Highland Home Road) in the vicinity of Wilson Street

6.9 Consideration of Resolution 2026-06, Amending the Classification and Compensation Plan, Position Reclassification (Senior Planner)

6.10Consideration of Resolution 2026-08, Amending the Classification and Compensation Plan, Adding a Homeless Services Coordinator

6.11Consideration of Resolution 2026-10, Accepting a donation from Sun Lakes Country Club HOA Bingo Program in the amount of $1,500

6.12Consideration of Resolution 2026-11, Approving Final Parcel Map 38367 and Release the Map for Recordation

6.13 Consideration of Resolution 2026-12, Award of a Professional Services Contract to Jacob Green and Associates to conduct an Organizational Assessment for the Banning Police Department in the amount of $48,000.00

6.14Consideration of Resolution 2026-13, Awarding a Construction Contract for Project No. 2020- 04 Sun Lakes Boulevard Extension Project, to Riverside Construction Company, Inc. in the amount of $20,996,793.50 and approving a 10% contingency for a total budget of “Not-toExceed” $23,096,472.85 Recommendation: Adopt Resolution 2026-01 UA.

Recommendation: Adopt Resolution 2026-01
Recommendation: Approve Resolution 2026-02
Recommendation: Adopt Resolution 2026-05
Recommendation: Adopt Resolution 2026-06
Recommendation: Adopt Resolution 2026-08
Recommendation: Adopt Resolution 2026-10
Recommendation: Adopt Resolution 2026-11
Recommendation:

Adopt Resolution 2026-12.

Recommendation: Adopt Resolution 2026-13
City Council - Regular Meeting Agenda
January 13, 2026
3 6.15Consideration of Resolution 2026-14, to Authorize the City Manager to Execute Amendment No. 2 to Cooperative Agreement Between Riverside County Transportation Commission, City of Banning and City of Beaumont for the Management of the I-10/Highland Springs Avenue Interchange Project Study Report and to Include Project Approval and Environmental Document (PA/ED) Phase

7. PUBLIC HEARINGS

7.1 Introduction and First Reading of Ordinance No. 1615, A Zone Text Amendment to Banning Municipal Code Title 17, Chapter 17.88, Section 17.88.020 (Non-Conforming Structures and Uses)

7.2 Consideration of Resolution 2026-03, Approving a Tentative Tract Map Application (Case No.

TTM 39259/PTM25-0004), submitted by Tri Pointe Homes to Subdivide 15 Parcels Totaling 160.02 Acres into 544 Single-Family Residential Lots and 36 Condominium Lots (for 248 Duplex Condominium Units) Located at the Northwest Corner of Highland Home Road and the Southern California Edison Corridor.

7.3 Consideration of Resolution 2026-04, Approving a Tentative Tract Map Application (Case No.

TTM 39262/PTM25-0005), submitted by Tri Pointe Homes to Subdivide 6 Parcels Totaling

68.74 Acres into 193 Single-Family Residential Lots, Located at the Northeast Corner of Highland Home Road and the Southern California Edison Corridor

8. REPORTS OF OFFICERS

9. DISCUSSION ITEMS/ACTION ITEMS

9.1 Consideration of Resolution 2026-07, Authorizing the Appointment of Retired Annuitant Kenneth Louie as Interim Finance Director

9.2 Evaluation of current City of Banning Planning Commissioners pursuant to Banning Municipal Code Section 2.28.020(C) and Section 6.4 (C) of the Manual of Procedural Guidelines for the Conduct of City Council and Constituent Body/Commission Meetings for the City of Banning.

Recommendation: Approve Resolution 2026-14
Recommendation: Introduce and Waive full reading, direct the City Clerk to read the ordinance by title only, and introduce Ordinance No. 1615, entitled:

An Ordinance of the City Council of the City of Banning, California, amending Section

17.88.020 of Chapter 17.88 (Non-Conforming Structures and Non-Conforming Uses) of Title 17 (Zoning) of the Banning Municipal Code to provide greater flexibility for the repair and reconstruction of legally established non-conforming residential structures.

Recommendation:

Adopt Resolution 2026-03
Recommendation:

Adopt Resolution 2026-04
Recommendation:

Adopt Resolution 2026-07.

Recommendation: This item is being presented to the full City Council for the consideration and evaluation of all current City of Banning Planning Commissioners, in accordance with City Council - Regular Meeting Agenda
January 13, 2026
4 9.3 Discuss the City of Banning's Current Utility Billing Payment Plan Policies

10. ANNOUNCEMENTS FROM CITY COUNCIL MEMBERS

11. ITEMS FOR FUTURE AGENDAS

12. ADJOURNMENT
Banning Municipal Code (BMC) Section 2.28.020(C) and Section 6.4(C) of the Manual of Procedural Guidelines for the Conduct of City Council and Commission Meetings.

Recommendation: That City Council consider the current utility billing payment plan structure and possible alternatives to payment plans with consideration of the City's recent utility billing challenges.

11.1 NEW ITEMS

1. Revise Manual of Procedural Guidelines, Article 10.3 (c) (Flynn) December 2025

2. Sales Tax Agreement Update with Diamond Chevrolet (Flynn) December 2025

3. Cannabis Warehouse Moratorium (New Facilities Only) (Barrington) December 2025

11.2 EXISTING ITEMS

1. Emergency Preparedness (Barrington) January 2025

2. Review and Update Council Travel Policy (Flynn) May 2025

3. Streamline Procurement Policy (Flynn) August 2025

4. Community Garden, Sun Lakes (Flynn) September 2025

5.Update (anti-camping) Ordinance 1603 (Flynn) October 2025 Next Regular Meeting – January 27, 2026
Zoom Community Standards for Public Meetings
By participating in this meeting on Zoom, you are agreeing to abide by the City of Banning’s Community Standards for Public Meetings. Zoom attendees that fail to adhere to these standards may be removed from the meeting room.

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January 13, 2026
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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
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
January 13, 2026
6 Cit
yCouncil -RegularMeetingAgenda
January13, 2026
7 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Acting Deputy City Clerk
MEETING DATE: January 13, 2026
SUBJECT: City Council Committee Assignments for 2026
RECOMMENDATION:

Discuss and assign Council Members to serve on various committees to represent the City of Banning in the 2026 calendar year.

BACKGROUND:

Annually in January, the City Council assigns its members to regional boards and committees in order to represent the City of Banning and its interests.

JUSTIFICATION:

This is an annual process.

FISCAL IMPACT:

The only fiscal impact is the cost for City Council Members attending meetings of these boards and committees. Some boards/committees offer stipends to their members to offset this cost, but the stipend is paid directly to the member.

ALTERNATIVES:

There are no alternatives to this necessary annual process.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Council Assignments_2025_Dec 2025.pdf

2. Council Assignments_2026_ BLANK.pdf
8 BANNING CITY COUNCIL
2025 COMMITTEE ASSIGNMENTS

Page 1 of 2 ends

COMMITTEE DAY & TIME

OF MEETING MEMBER ALTERNATE STAFFLIAISON
Western Riverside
Council of
Governments
(WRCOG)
1st Mondays
2:00 p.m. Flynn Royce City Manager
Riverside Transit
Agency (RTA)
4th Thursdays
2:00 p.m.
(Dark August; Nov
and Dec meetings
on 3rd Thursday)
Miller Wallace Public Works
Director
Riverside County
Transportation
Commission (RCTC)
2nd Wednesdays
9:00 a.m. Flynn Barrington Public Works Director
Pass Area
Transportation
NOW Committee
1st Thursdays
12:00 p.m. Barrington Wallace Public Works Director
Regional
Conservation
Authority (RCA)
1st Mondays
12:30 p.m. Wallace Flynn
Community
Development
Director
San Gorgonio Pass
Water Alliance
(SGPWA)
4th Wednesdays
5:00 p.m. Miller Royce Public Works Director
Southern California
Association of
Governments (SCAG)
1st Thursdays
10:30 a.m. Wallace Flynn
Community Action
Partnership
3rd Thursdays
7:00 p.m. Royce Miller
League of California
Cities (CalCities)
Quarterly
(January, March,
May, and July)
Royce Miller City Manager
9 BANNING CITY COUNCIL
2025 COMMITTEE ASSIGNMENTS

Page 2 of 2 ends

2 x 2 COUNCIL WORKING GROUPS
(meet as needed)

BANNING

UNIFIED
SCHOOL

DISTRICT

MORONGO

BAND OF

MISSION

INDIANS
MT. SAN

JACINTO

COLLEGE
SAN

GORGONIO

MEMORIAL

HOSPITAL

CITY OF

BEAUMONT
Miller/Royce
Staff: City
Manager
Miller/Royce
Staff: City
Manager
Barrington/
Flynn
Staff: City
Manager
Flynn/
Barrington
Staff: City
Manager
Flynn/Miller
Staff: City
Manager

STANDING COMMITTEES
(meet as needed)

ECONOMIC

DEVELOPMENT

HEALTHY LIVING

CITY DOWNTOWN BUDGET & FINANCE

HOMELESSNESS

ADVISORY
Royce/Miller
Staff: Economic
Development
Manager
Miller/Wallace
Staff: Parks &
Recreation
Director
Wallace/Flynn
Staff: City
Manager
Barrington/
Royce
Staff: Finance
Director
Barrington/
Royce
Staff: City
Manager

CANNABIS GENERAL PLAN CDBG
Miller/Wallace
Staff:

Community
Development
Director
Barrington/
Flynn
Staff:

Community
Development
Director
Miller/Royce
Staff: Economic
Development
Manager
10 BANNING CITY COUNCIL
2026 COMMITTEE ASSIGNMENTS

Page 1 of 2 ends

COMMITTEE DAY & TIME

OF MEETING MEMBER ALTERNATE STAFFLIAISON
Western Riverside
Council of
Governments
(WRCOG)
1st Mondays
2:00 p.m. City Manager
Riverside Transit
Agency (RTA)
4th Thursdays
2:00 p.m.
(Dark August; Nov
and Dec meetings
on 3rd Thursday)
Public Works
Director
Riverside County
Transportation
Commission (RCTC)
2nd Wednesdays
9:00 a.m.

Public Works
Director
Pass Area
Transportation
NOW Committee
1st Thursdays
12:00 p.m.

Public Works
Director
Regional
Conservation
Authority (RCA)
1st Mondays
12:30 p.m.

Community
Development
Director
San Gorgonio Pass
Water Alliance
(SGPWA)
4th Wednesdays
5:00 p.m.

Public Works
Director
Southern California
Association of
Governments (SCAG)
1st Thursdays
10:30 a.m.

Community Action
Partnership
3rd Thursdays
7:00 p.m.

League of California
Cities (CalCities)
Quarterly
(January, March,
May, and July)
City Manager
11 BANNING CITY COUNCIL
2026 COMMITTEE ASSIGNMENTS

Page 2 of 2 ends

2 x 2 COUNCIL WORKING GROUPS
(meet as needed)

BANNING

UNIFIED
SCHOOL

DISTRICT

MORONGO

BAND OF

MISSION

INDIANS
MT. SAN

JACINTO

COLLEGE
SAN

GORGONIO

MEMORIAL

HOSPITAL

CITY OF

BEAUMONT
Staff: City
Manager
Staff: City
Manager Staff: City
Manager
Staff: City
Manager
Staff: City
Manager

STANDING COMMITTEES
(meet as needed)

ECONOMIC

DEVELOPMENT

HEALTHY LIVING

CITY DOWNTOWN BUDGET & FINANCE

HOMELESSNESS

ADVISORY
Staff: Economic
Development
Manager
Staff: Parks &
Recreation
Director
Staff: City
Manager
Staff:

Finance
Director
Staff: City
Manager

CANNABIS GENERAL PLAN CDBG
Staff:

Community
Development
Director
Staff:

Community
Developmen
t Director
Staff: Economic
Development
Manager
12 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Acting Deputy City Clerk
MEETING DATE: January 13, 2026
SUBJECT: Consideration and Approval of the meeting minutes of the May 13, 2025, May 14, 2025, May 22, 2025, Regular meeting of November 12, 2025, and the Closed Session and Workshop of the November 9, 2025, City Council meetings.

RECOMMENDATION:

Approve the meeting minutes of of the May 13, 2025, May 14, 2025, May 22, 2025, Regular meeting of November 12, 2025, and the Closed Session and Workshop of the November 9, 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 05 13 _ City Council _ Closed Session _ Draft.pdf

2. 2025 05 13_City Council_Regular Meeting_Draft.pdf

3. 2025 05 14 _ City Council _ Workshop _ Draft .pdf

4. 2025 05 22 _ City Council _ Workshop _ Draft .pdf

5. 2025 11 12_Regular Meeting_DRAFT.pdf
13 6. 2025 12 09_Closed Session_DRAFT.pdf

7. 2025 12 09_Workshop_DRAFT.pdf
14 MINUTES

CITY COUNCIL - SPECIAL MEETING (CLOSED SESSION)

CITY OF BANNING, CALIFORNIA
May 13, 2025 Council Chambers
4:00 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.

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
Robert Fisher, Acting City Manager
Vickie Sellers, City Clerk
Caroline Patton, Administrative City Clerk

1. CALL TO ORDER – 4:03 PM

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

2. PUBLIC COMMENTS - Agenda Items Only
None

3. CLOSED SESSION
John Pinkney, City Attorney read closed session items.

3.1 CONFERENCE WITH LEGAL COUNSEL: ANTICIPATED LITIGATION – SIGNIFICANT EXPOSURE TO LITIGATION 15
Pursuant to Government Code Section 54956.9(d)(2) and/or (3) Two Potential Cases.

3.2 CONFERENCE WITH LEGAL COUNSEL: ANTICIPATED LITIGATION – POTENTIAL

INITIATION OF LITIGATION
Pursuant to Government Code Section 54956.9(d)(4)
One Potential Case.

3.3 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957
Title: Interim City Attorney

3.4 PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE
Pursuant to Government Code Section 54957

3.5 CONFERENCE WITH LEGAL COUNSEL: EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
One Case: Worker's Compensation Case No.1080-WC-21-0000016

4. ADJOURNMENT – 6:23 P.M.

Prepared by: Amanda Morgan, Program Coordinator
Reviewed and submitted by: Sandra Calderon, Acting Deputy 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/199?view_id=1&redirect=true 16 1

MINUTES

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
May 13, 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.

1. CALL TO ORDER – 5:24 P.M.

1.1 INVOCATION
Performed by Nathaniel Rodriguez of Infinite Center

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
17 2

2. AGENDA APPROVAL

2.1 AGENDA APPROVAL
Motion to approve the agenda with item 6.1 tabled by Mayor Pro Tem Royce and seconded by Councilmember Miller.

Motion approved unanimously by a vote of 5-0.

3. PRESENTATIONS

3.1 Proclamation - Kids to Parks Day
Mayor Flynn read the proclamation.

3.2 Small Business Recognition Award - Truck Works, Inc.

Mayor Fynn read the recognition award. A video was played to highlight Truck Works, Inc.

4. REPORT ON CLOSED SESSION
John Pinkney, Interim City
Attorney, provided the report.

3.4 Public Employee Discipline
Dismissal/Release
Motion made by Mayor Pro Tem
Royce and seconded by
Councilmember Miller to approve
a separation, severance, and
general release agreement with
Lincoln Bogard.

Motion carried with a vote of 4-1.

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND

REPORTS

5.1 PUBLIC COMMENTS
Mario Carlos, reported that Opportunity Village is operating well but faces limited staff, no outreach team and challenges with permanent housing. Even so, since January 2024 the shelter has placed 15 residents in permanent housing 10 have exited with income, and over 75% exited to known destinations. Visible homelessness reflects the lack of outreach, not shelter performance. He stated 18 3
he supports renewed collaboration with Faith in Action, and thanked community partners.

Inge Schuler, commented on the Crossroads project, noting that some public support appears based on expected revenue, but clarified that after annexation, most property tax revenue would go to the county, not the city. She also raised concerns about the project’s usefulness given current declines in shipping activity, with cargo volumes at the Ports of LA and Long Beach down 35-40%, reducing the need for storage and logistics facilities. She noted that even small decreases in port activity result in significant job losses and urged the city to consider these economic uncertainties before making decisions on the Crossroads project.

Amy Pippenger, announced an upcoming community event at Dysart Park called Barrels, Brews, and Bites. The event will feature barrel racing, mutton busting, and a carnival provided in partnership with Live Oak Canyon Pumpkin Patch. Parking and admission is $5.00. The event will take place from 5:00 PM – midnight.

Carol Albaugh, addressed the City Council regarding the proposal that was previously emailed to the council. The proposal suggests that Faith in Action take over Opportunity Village operations using unspent grant funds. It would involve current staff, rebranding efforts, community outreach, and collaboration with local police to address chronic homelessness. She emphasized that Faith in Action would like the opportunity to present their full proposal before the council makes any decisions. They are requesting equal presentation time alongside other agencies.

Marco Santana, grant writer and board member for Faith in Action, expressed support for a formal partnership with the City to continue operations at Opportunity Village. He stated that Opportunity Village is more than a shelter, offering pathways to permanent housing. Faith in Action can bring funding for housing navigation, rental assistance, and case management, and include residents in future grant opportunities. He noted existing and expanding partnerships with county and local agencies to connect the site to a broader system of care.

Shelly, announced a free community resource assistance event at the Banning Church of the Nazarene. The event will serve as a central hub for residents to access essential resources, including food, basic needs, provided by partners such as Carol’s Kitchen, Help Inc., Inland Behavioral Health, Riv Co Social Services, and the local fire department. She emphasized the event’s goal of supporting vulnerable residents and invited the council to attend and show their support.

Diego Rose, commented on the potential RFP process for a new city manager, urging the council to prioritize continuity and consider internal candidates who understand the local community and its needs. He emphasized the value of local experiences, unity among council members, and avoiding divisions that hinder progress. He encouraged the council to work together, focus on meaningful change, and acknowledged the difficulty of their roles while expressing appreciation for their efforts.

Oleg Ivaschuk, a local business owner and the president of the Banning Chamber of Commerce announced an upcoming event offering residents the opportunity to meet with Riverside County Supervisor Xstian Gutierrez. The 19 4
event will be held on Wednesday, May 21 at 7:00 AM at the Farmhouse with tickets available for $25.00 on the chamber’s website or phone.

5.2 CORRESPONDENCE
None

5.3 APPOINTMENTS
None

5.4 CITY COUNCIL COMMITTEE REPORTS
Councilmember Wallace reported that the RCA supported SB 427, which would extend state funding for habitat conservation and land acquisition beyond 2030. She also shared updates from the Border Committee regarding long term regional transportation planning between Riverside County and San Diego, noting projected population growth in Riverside County. She attended the City Leaders' Summit and SCAG meetings, where they met with legislative and transportation representatives to discuss local issues and opportunities.

Mayor Pro Tem Royce reported attending the Leader’s summit and meeting with State Assembly members in Sacramento, who were receptive to discussing local needs. As the City’s representative to SCAG, he also participated in workshops focused on supporting local economies, sustainable infrastructure, and resilient city growth.

Councilmember Barrington reported attending the City Leader’s Summit in Sacramento for two and a half days, participating in informative sessions on homelessness and city sustainability. She also attended a 2X2 meeting with Beaumont to discuss animal shelter options, noting that both cities are aligned and progress is being made.

Councilmember Miller reported attending the League City Summit and participating in sessions on goal setting and retaining talented leaders. Homelessness, housing, wildland fire, and disaster management. He noted that financial instability is the primary cause of homelessness, rather than drugs or alcohol, and discussed challenges with Caltrans and the railroad in cleaning encampments. he also attended the RTA meeting and met with Supervisor Gutierrez regarding the jail navigator programs, specifically adjusting inmate release times for better access to services.

Miller also clarified that homeless individuals arrested in Banning do not automatically become city residents unless residency was previously established.

Mayor Flynn reported that she also attended the League of CA cities summit in Sacramento and found the seminars valuable. She also reported on participating in a committee meeting about the animal shelter, and they will visit the Banning animal shelter to see its viability. She also reported attending the Law Enforcement Appreciation Night on April 30.

5.5 CITY MANAGER'S REPORT
Robert Fisher thanked Ruben Macias and Moses Medina for cleaning up areas of the city. Art Vela provided an update on the Public Works Department, including the replacement of light bulbs for a pilot study. David Newell provided an update about the General Advisory Committee and the Planning Commission.

5.6 CITY ATTORNEY'S REPORT
John Pinkney provided the City Attorney report, reminding the council and community of procedures for public hearings and comments.
20 5

5.7 CITY TREASURER'S REPORT
Sue Savage reported that there were no reportable items at the time.

Council questions:

Councilmember Miller asked Sue Savage to send a copy of the previous treasurer’s report, mentioning he had not received it yet.

6. CONSENT ITEMS
Items pulled: 6.3, 6.6, 6.9
Mayor Flynn opened public comments for items not pulled Frank Connolly asked why the city has been adhering to the requirement of $5,500 and 30 feet, noting that vehicle specifications are set and cannot exceed certain limits. He questioned why the standard continues to be followed
Mayor Flynn closed comments for items not pulled.

Motion made to approve consent items not pulled made by Councilmember Wallace and seconded by Councilmember Miller.

Motion carried unanimously with a vote of 5-0.

6.1 Approval of the Meeting Minutes for the February 14 and February 25, 2025 City Council Meetings

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

6.3 Parks and Recreation Report of Monthly Activities through the 3rd Quarter of Fiscal Year 2024/2025 - March 2025
Council discussion:

Councilmember Barrington praised the Parks and Recreation Department services and noted increased park usage and tree maintenance. She expressed concern that Dysart Park is the only park charging a usage fee for Stagecoach Days, despite being maintained by the Pippenger Family, while Lions Park is free for Banning Pass Little League usage.

Ralph Wright, Parks and Recreation Director, noted that in the upcoming MOU a fee waiver would be listed.

Mayor Flynn opened public comment
Diego Rose, commented on joining th Stagecoach Days Committee three years ago and quickly grew to love It after seeing the community’s energy at local events. He prasied Banning’s beauty, clean air, and strong sense of community. He stressed that Parks and Rec must ensure community funds truly benefit residents. He called Banning a gem worth protecting.

Amy Pippenger, stated that Stagecoach Days relies on many volunteers, but much of the work falls on her family since 2013. The association has invested over $100,000 into Dysart Park and just received another $100,000 from Morongo to finish the rodeo arena. Despite 21 6
this, the speaker said that they still have to pay $145 for each event, even though they hold many events and make little profit.

Mayor Flynn closed public comment

6.4 Accept an Easement from Tri Pointe Homes for Electric Utility Purposes on Accessor’s Tract Map No. 37389-3 PA 29 within the Atwell Development for the Maintenance of the CityOwned Electric Distribution System

6.5 Consideration of Resolution 2025-55, Awarding a Professional Services Agreement to Tetra
Tech, Inc. for CARB Accredited Verification Services - GHG Emissions Report in the Amount of $27,500 Over Five Years

6.6 Consideration of Resolution 2025-56, Approving the Renewal Letter Agreement Between the City of Banning and the City of Riverside Renewing the Utility Services Agreement for Fiscal Years 2026 and 2027 at the Current Monthly Rate of $47,074 Council questions:

Councilmember Barrington questioned if there is any revenue or if the money is just a loss.

Mayor Pro Tem Royce asked if there would ever be a point in time when this could be brought in-house.

Mayor Flynn opened public comment
None
Mayor Flynn closed public comment
Motion to approve resolution 2025-56 made by Mayor Pro Tem Royce and seconded by Councilmember Wallace.

Motion carried unanimously 5-0.

6.7 Consideration of Resolution 2025-57, Accepting Various Right of Way Dedications, Easements, and Quitclaims of Existing City Easements Related to the Improvement of Wilson Street at Smith Creek, Within the Atwell Specific Plan

6.8 Consideration of Resolution 2025-58, Approving the Street Name Changes Within Tract 33540 (KB Homes - Vista Robles)

6.9 City of Banning Fire Hydrant Maintenance Program
Art Vela, Public Works Director, provided the staff report Council questions:

Mayor Flynn asked if testing had started in Sun Lakes.

Councilmember Miller asked if the maintenance program included the blowoff Councilmember Barrington asked for a fire hydrant to be placed on John St, where there is no nearby hydrant.
22 7
Mayor Flynn opened public comment
None
Mayor Flynn closed public comment
Inge Schuler, noted that after many years, progress has finally been made, leading to improved efficiency. She highlighted recent improvements on Ramsey westbound near Sunset and the nearby shopping center by the animal clinic. She emphasized how great the improvements look and expressed confidence that similar results can be achieved without excessive spending.

Diego Rose, noted concerns about a fire hydrant near their property that obstructs access and was recently damaged. He requested that the hydrant be moved to improve safe entry and exit for service trucks. He felt that the past planning had overlooked his business needs and urged better coordination moving forward.

Kathy Aranda, reported that two fire hydrants near Albertson’s are missing parts, allowing the internal waterline to be visible. She raised concern about the safety of this.

Mayor Flynn closed public comment.

7. PUBLIC HEARINGS

7.1 Consideration of (1) Resolution 2025-59, Approving the Banning Commerce Center Project by Sansone Group, Including a Design Review Application, Case DR 21-7017, for 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 ("Project Site") and a Tentative Parcel Map Application, Case TPM 38756, for the Subdivision of the 131- 28-acre Project Site into Three Numbered Lots for Private Development Improvements and Four Lettered Lots for Right-of-Way and Other Improvements; (2) Resolution 2025-60, Certifying the Environmental Impact Report (SCH No. 2022090102), Adopting Findings and a Statement of Overriding Considerations, and Adopting a Mitigation Monitoring and Reporting Program for the Banning Commerce Center Project Consisting of a 1,320,284-Square Foot Industrial Warehouse Building on 131.28-acres of Land Located on the Project Site; and (3) Introduction and First Reading of Ordinance 1609, Approving a Development Agreement By and Between the City of Banning and JDJN Enterprises, LLC, a Missouri Limited Liability Corporation David Newell, Community Development Director, provided the staff report.

Council questions:

Councilmember Wallace questioned whether trucks would be coming down Hargrave onto Nicolet. She asked about improvements to Hathaway Street and who would continue to maintain it.

Mayor Pro Tem Royce asked if it was possible to hear the reasoning for the Planning Commission’s split vote on this project.

Councilmember Barrington questioned the traffic patterns and questioned how it could be done without an easement by the property owner.

Councilmember Miller asked when the development of Cottonwood would be completed. 23 8
Mayor Flynn expressed concern about the 3-2 vote by the Planning Commission.

The applicant (Sansome Group) provided a presentation.

Mayor Flynn opened the public hearing at 9:06 PM.

Robert Ramos, spoke in support of the project, praising the contractor’s commitment to local hiring and apprenticeship opportunities. He said this will strengthen the local workforce, boost the economy, and allow workers to stay closer to home. He urged the approval of the project.

John, a Banning resident who lives near Hoffer Elementary spoke in support of the project.

He said it would create well paying local jobs and allow workers like him, who have commuted for 22 years, to work closer to home. He noted the project’s significant infrastructure investments, including over $20 million in road and bridge improvements, and an estimated $500,000 in annual economic benefit to the local chamber of commerce. He urged the council to approve the project.

Jose Garcia, spoke in support of the Banning Commerce Center. He shared that he is currently in a Christian Recovery Program and rebuilding his life, and said projects like this are essential because they create hundreds of constructions and permanent jobs, including entry level and managerial positions across transportation, logistics and distribution. He described the project as a clear benefit to the community and urged the council to approve it.

Alfredo Valencia, spoke in support of the Banning Commerce Center. He said the 1.3 million square feet project will create meaningful opportunities for men rebuilding their lives and allow them to contribute positively to the community. He noted that several attendees have overcome additional land hardship, and that jobs offered by projects like this provide real alternative to negative paths. He urged the approval of the project.

Salvador, representing the Western States Reginal Council of Carpenters, spoke in support of the project. He said the union has 5,400 members in Riverside County and about 500 in Banning, and praised the developer for committing to hire local, skilled workers at area standard wages with health insurance and retirement benefits. He highlighted the project’s $21 million in infrastructure improvements, including sewer upgrades, a lift station, and a substation plus $9 million for a needed interchange. He also noted the project’s value to local youth through programs like career connection. He urged the council to approve the project.

The speaker outlined three reasons the project is a strong fit for Banning: Community, economics, and workability. He noted broad community support from residents to labor groups who want more opportunities in Banning. He emphasized that private development is essential for both job creation and major infrastructure investment. He said the developer has shown a willingness to work collaboratively and act in the city’s best interest. He urged the council to support the project so it can have a positive impact on the community.

Oleg Ivascheck expressed support for the project, noting its benefits to the City of Banning.

He highlighted that the project would help diversify the city, improve infrastructure, support the local electric utility, and increase business for nearby gas, food and lodging establishments. He added that industrial developments often generate more tax revenue while requiring fewer public services.

Kathleen Dale stressed that project timing is critical and supports using the alternate route via Nicolet to protect the community once there is an interchange. She noted another 24 9
upcoming project that could allow a future connection through Ramsey. She asked that traffic control provisions be added to the project’s conditions of approval and monitoring program and urged strengthening the HCP provisions based on conversation groups.

Virginia Cervantes acknowledged the project will create jobs but expressed concern that afterward the community may be left with large, empty buildings and limited long-term benefit.

She noted nearby vacant warehouses as an example and urged the city to prioritize projects that provide houses ideally 20,000 square feet or more.

Tracy noted that a large warehouse south of the freeway has been vacant since 2022-2023, and questioned why, if there is a strong demand, these existing spaces remain unoccupied.

She stated that 23 million square feet of industrial space is currently on the market, suggesting limited interest. She added that building new warehouses takes about 20 months and urged the city to avoid adding more industrial buildings.

Mayor Flynn closed public comment and public hearing
Council discussion:

Councilmember Wallace commented on the empty Sketchers building, mentioning there should have been a port of call, which the city doesn’t currently have.

Mayor Pro Tem Royce asked for the Planning Commissioner’s concerns to be addressed and then for it to be brought back.

Councilmember Barrington commented that residents’ concerns should be addressed, and that this may not be the correct location for a warehouse.

Councilmember Miller asked Mr. Newell to confirm that the planning commission had made recommendations. He also noted that Banning currently only has one warehouse.

Motion made to continue the public hearing to May 27th made by Mayor Flynn and seconded by Mayor Pro Tem Royce.

Motion carried by vote of 4-1.

Motion to extend the meeting another hour made by Mayor Pro Tem Royce and seconded by Councilmember Miller.

Mayor Flynn asked for changes be made to the agenda.

9.2 Discuss and Provide Direction to Staff to Develop a Weekly Summer Food Truck Event on City-Owned Property Located at 150 E. Ramsey Street
Alexander provided the presentation.

Council questions:

Councilmember Barrington commented that it was a great idea especially with the backing of the Chamber. She noted that the city may not have all the resources requested.

Councilmember Miller asked about the profits made and whether they are shared. 25 10
Mayor Flynn mentioned that the police station is across the street from the proposed property.

Mayor Flynn opened public comment
Frank Connolly, shared that from 1992-1995 the Chamber held a successful weekly Friday night street event with up to 2,000 attendees. He suggested reviving a smaller version by temporarily closing Ramsey Street between Alessandro and San Gorgonio and offering simple kids activities. He expressed his willingness to help organize.

Mayor Flynn closed public comment
Council discussion:

Councilmember Miller noted that Ramsey may not have to be shut down at San Gorgonio.

Mayor Flynn commented that the festival would be seen from the freeway.

Councilmember Barrington mentioned that the Google Maps is outdated as there is a Fearless Brand Hot Dog noted there.

Motion to develop a weekly summer food truck event made by Councilmember Barrington and seconded by Councilmember Miller.

Motion carried unanimously 5-0.

8. REPORTS OF OFFICERS

8.1 Consideration of Resolution 2025 -61, Opposing South Coast Air Quality Management District's Proposed Amended Rules 1111 and 1121
Art Vela, Public Works Director, provided the staff report.

Council questions:

Mayor Flynn confirmed modifications regarding the mandatory switching over to water heaters.

Mayor Flynn opened public comment
Frank Conolly opposed recent state policies, saying they create unnecessary burdens for residents. He described managing a housing complex and dealing with repeated appliance failures caused by hard water, including expensive water heater replacements and issues with electric stoves. He expressed frustration with those costs and concluded by thanking the council for opposing the rules.

Mayor Flynn closed public comment
Motion to adopt Resolution 2025 -61 and attached amended rules made by Mayor Flynn and seconded by Mayor Pro Tem Royce.

Motion carried unanimously 5-0.
26 11

8.2 Consideration of Resolution 2025-62, Receiving a Report in Connection with the proposed Collection on the 2025/2026 Riverside County Property Tax Roll of Delinquent Solid Waste Service Charges for Single -Family and Multi-Family Accounts for Calendar Year 2024, Setting a Public Hearing on the Report and Making a Determination of Exemption Under CEQA
Art Vela, Public Works Director, provided the staff report.

Mayor Flynn opened public comment
Frank Connolly reiterated the importance of finding out how many of the accounts are rental property. He mentioned that some owners may not be aware that tenants are not paying the trash bill.

Mayor Flynn Closed public comment
Council questions:

Councilmember Miller confirmed if Waste Management was direct billing.

Motion to adopt Resolution 2025-62 made by Mayor Flynn and seconded by Councilmember Miller.

Motion carried unanimously 5-0

8.3 Consideration of Resolution 2025-63, Declaring the Intention to Levy and Collect Assessments for Fiscal Year 2025/2026, Approving the Engineer’s Report and Setting the Date for the Public Hearing for Landscape Maintenance District No. 1 Nate Smith, Deputy Director of Public Works, provided the staff report.

Council questions:

Mayor Flynn opened public comment
None
Mayor Flynn closed public comment
Motion to adopt Resolution 2025-63 made by Councilmember Miller and seconded by Mayor Pro Tem Royce.

Motion carried unanimously 5-0.

8.4 Consideration of Resolution 2025-64, Establishing Fiscal Year 2025/2026 Rates for Residential and Commercial Garbage, Recyclable and Organic Waste Collection, Transportation, Recycling and Disposal Services, and Making a Finding of Exemption Under the California Environmental Quality Act
Art Vela, Public Works Director
Council questions:

Mayor Pro Tem Royce asked in Waste Management is making money off of the recycling. 27 12
Motion to adopt Resolution 2025-64 made by Councilmember Wallace and seconded by Councilmember Miller.

Motion carried unanimously 5-0.

8.5 Consideration of Resolutions 2025-65, 2025-02 UA, and 2025-02 SA, Approving the Citywide Proposed Midyear Budget for Fiscal Year 2024-25
Michelle Green, Interim Administrative Director, provided the report.

Council questions:

Mayor Flynn asked whether the intention was for the council to approve all three of the resolutions.

Mayor Flynn opened public comment
Frank Connolly expressed concern about the City’s financial management, stating they would not run their own finances the way the City currently does. He emphasized the need for better control, clearer oversight, and transparency regarding revenues and expenses. He warned that continued poor financial practices could negatively impact the City’s long-term stability.

Mayor Flynn closed public comment
Council discussion:

Councilmember Miller acknowledged Michelle Green’s hard work on the midyear budget, noting it’s a lot of information to digest in one evening.

Mayor Pro Tem Royce mentioned that at the next meeting, the consultant would be present.

Motion to adopt resolutions 2025-65, 2025-02 UA, and 2025-02 SA made by Mayor Pro Tem Royce and seconded by Councilmember Wallace.

Motion carried unanimously 5-0.

Motion was made to extend the meeting to another hour by Councilmember Wallace and seconded by Mayor Pro Tem Royce.

9. DISCUSSION ITEMS

9.1 Discussion Regarding Contracted Services for Homeless Encampment Clean Up, Illegal Dumping Abatement and Graffiti Removal
Art Vela, Public Works Director provided the staff report Council questions:

Councilmember Wallace asked where the funds would come from to fund the contract.

Mayor Pro Tem mentioned that he would like a pro active approach taken to this; mentioning dumping and graffiti areas.
28 13
Councilmember Miller noted this being a great idea but mentioned wanting to see a cost before moving forward.

Mayor Flynn mentioned a suggested ordinance announced by the Governor and questioned if there were funds that the City could tap into.

Mayor Flynn opened public comment
None
Mayor Flynn closed public comment

10. ANNOUNCEMENTS FROM CITY COUNCIL MEMBERS
Councilmember Wallace announced that there are citizens asking why there is no RFP for a City Manager.

Councilmember Miller announced Coffee with a Cop on May 20th and Splash with a Cop on May 24th at the Aquatic Center.

11. ITEMS FOR FUTURE

AGENDAS

11.1 NEW ITEMS

1. 2x2 committee with the
jail (Royce)

2. Acting City Manager
evaluation (Miller)

11.2 EXISTING ITEMS

1. Update on Community Garden (Flynn)

2. Developer Presentation on Sunset Crossroads Project (Flynn)

3. Contracting Animal Services (Flynn)

4. Emergency Preparedness (Barrington)

5. Changes to the Banning Procedural Manual (Royce)

6. Discussion of Reversing Decision to Close Airport (Royce)

7. Patriot Tree (Barrington)

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

9. RFP for City Manager (Wallace)

10. Long term City Strategic Planning (Miller)

11. Armory Grant (Royce)

12. Review Grant Management Protocol (Flynn)

13. Update on Electric Billing (Miller)

14. Review and Update Council Travel Policy (Flynn)
Motion to adjourn the meeting made by Mayor Pro Tem Royce and seconded by Councilmember Barrington
Motion carried unanimously 5-0.

12. ADJOURNMENT – 11:54 P.M.

Next Regular Meeting – May 27, 2025
29 14
Prepared by: Amanda Morgan, Program Coordinator
Reviewed and submitted by: Sandra Calderon, Deputy 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/201?view_id=1&redirect=true 30 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (WORKSHOP)

CITY OF BANNING, CALIFORNIA
May 14, 2025 Council Chambers
6:30 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 – 6:31 P.M.

ROLL CALL

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

2. PUBLIC COMMENTS - Agenda Items Only
Virginia Cervantes, expressed concern about vulnerable individuals within the homeless population, noting signs of possible human trafficking. She emphasized that some homeless individuals need help but don’t know how to access it, while others struggling with addiction may 31 2
pose safety risks. She urged attention to both public safety and support services and thanked them.

Daniel Pourter, congratulated Mayor Flynn on her recent appointment to Mayor and stated that he represented Banning-based Faith in Action. He emphasized that many of the local homelessness issues stem from misunderstandings and a great problem. He urged the Council to consider a local organization to assist since they are the ones hitting the ground and are familiar with the city’s homeless population.

Mario Carlos, asked several questions about the coordination of services, resource integration, and agency partnerships. He emphasized the need to understand how partnerships can better support individuals with severe substance use disorders, especially when detox services are unavailable for days. He expressed concern about maintaining engagement and safety for individuals navigating insurance barriers and delays in accessing detox treatment. He noted that in 2024, 95 individuals were discharged, and nine required detox, highlighting the complexity and prevalence of substance-related issues in the community. He thanked the council for raising these issues and expressing interest in finding a way to address the issues.

David Kieffer, shared that he had recently spent time speaking with Mario Carlos, Acting Director of Opportunity Village, to better understand the current conditions and concerns. He expressed difficulty with the meeting procedure, noting that public comments occur before the scheduled presentation, leaving them without enough information to ask meaningful questions. He asked whether the public would have an opportunity to ask questions after the presentation, stating that many attendees would benefit from that option.

Kathy Aranda, identified herself as a crisis counselor and emphasized the importance of compassion, both for people experiencing homelessness and for hard-working residents, families, and children who must navigate unsafe or unpredictable situations in the community. She noted that while compassion is important, any homeless individual who struggles with violence, addiction, and instability creates safety concerns for police and residents. She stated that current approaches are not working and asked for a different strategy that balances compassion and community safety.

Jacqueline Renteria expressed concerns about inappropriate behavior near schools by homeless individuals. She highlighted her own hard work as a single mother without government assistance.

She questioned the lack of transparency in the current homeless program outcomes at Opportunity Village and called for clearer reporting on how many participants have achieved stable housing or employment.

Luke Gregory described long-standing challenges with homelessness, noting that many individuals refuse help due to not wanting rules, while others struggle with mental illness or addiction and require significant resources the city does not have. He shared this personal experience with his son’s mental health and addiction issues, explaining that the Village program, while not perfect, provided meaningful support during crisis. He emphasized that homelessness solutions require substantial resources, that no single program will solve everything. He urged the city to focus on approaches that genuinely help rather than on ones that do not.

Armando Martinez asked council members and the audience how many of them personally see the growing number of homeless individuals in town. He stressed that residents encounter this daily and cannot ignore it. He urged the council to recognize the severity of the problem. 32 3

3. WORKSHOP

3.1 PRESENTATION BY SOCIAL WORK ACTION GROUP (“SWAG”). CITY COUNCIL TO

PROVIDE DIRECTION TO STAFF ON WHETHER TO MOVE FORWARD WITH

NEGOTIATING A CONTRACT WITH SWAG TO PROVIDE HOMELESS SERVICES

WITHIN THE CITY OF BANNING
Aaron, Monica, and David, from Social Work Action Group (SWAG), provided a presentation.

Council questions:

Councilmember Wallace asked SWAG to provide documentation of their organization, including bylaws and governing documents. She also asked how long it takes to get a homeless individual off the street into treatment and to differentiate the difference between SWAG and Opportunity Village, noting SWAG is a street team. She also asked when SWAG began partnering with Banning PD.

Councilmember Barrington asked SWAG to list the organizations they partner with. She asked if they would be able to partner with the current organizations in the community.

Mayor Flynn asked SWAG whether they would apply for grant funding through the newprogram announced by the State.

Robert Fisher, Acting City Manager, provided a staff report surrounding the current situation of homelessness in the city of Banning, including Opportunity Village.

Council questions:

Councilmember Wallace asked how SWAG would be funded.

Mayor Pro Tem Royce asked how much has already come out of the general fund.

Councilmember Miller confirmed that it was from the general fund.

Mayor Flynn opened public comment
The speaker (name) requested clarification that a homeless individual living on private land with the owner’s permission is not violating any new rules. He emphasized that if a person is not stealing, not breaking the law, and an American citizen, that individual deserves to be treated fairly until they can join an assistance program.

David Kieffer, questioned how the City will address situations where outside groups, such as Faith In Action, are providing services that may not fully align with the City’s approach. He asked how these efforts can work together without stopping the groups from doing their work.

He also noted concerns about limited staffing, explaining that the City lacks sufficient staffing.

He is highlighting that one staff member has to remain at Opportunity Village and cannot conduct street outreach. He emphasized that the current approach being presented is what is already behind done.

Jaqueline Renteria expressed support of SWAG for using qualified social workers, transparency, and accountability for being willing to present their documents and bylaws.

She expressed concern about spending $3 million on housing without strong standards and stated that programs like SWAG, which show clear transparency and real work in the community, should be considered.
33 4
Kathy Aranda, agreed with the speaker before her, encouraging the council to move forward without further delay and to begin working with SWAG.

Virgina Cervantes encouraged the city to bring all the local service providers together, along with council members, police, and code enforcement to coordinate efforts and understand that each group needs to be effective. She emphasized that collaboration will improve resident safety, especially for vulnerable neighbors, and urged the City to explore available grants so all groups can work toward the same goal of addressing homelessness.

Rhonda, noted that many previous meetings have involved multiple groups, but each operates independently and problems appear to be worsening. She expressed uncertainty about whether the current proposal will be effective and asked if funding, specifically money spent on employees for Opportunity Village, will be sufficient to support the new program.

Kathleen Dale, expressed concern about the increasing disorder and homelessness, particularly on the north side of the freeway where individuals are living on sidewalks and blocking pedestrian access. She noted frequent issues near Highland Springs and Walmart and suggested the need for coordinated response between the City, local businesses and the County. She emphasized that there are resources already in place and it should not be the city’s job to provide housing.

Juanita Diaz expressed support for the proposed approach and encouraged the community to set aside personal feelings and give the new council a fair chance. She noted that the past strategies over the last seven years have not worked and emphasized the need for unity, maturity, and openness to change. She acknowledged that some people may resist or undermine the effort, including some churches or individuals, but she believes many residents love the city and are committed to positive change. She urged the community to allow the new council and staff the opportunity to do their jobs before judging the outcome.

Luke Gregory, expressed that police resources are dominated by daily homeless-related calls, leaving little capacity for traffic enforcement and other safety needs. He noted frequent speeding and major accidents on Ramsey and questioned whether the city has enough officers. He also raised concerns about rising costs and urged the city to reassess priorities for the whole community.

Edward Espinosa stated that the City’s main issues are the misconduct of transients on the street, including defecation, drug use, and blocking streets. He said many local businesses are affected and some unintentionally encourage transients by providing food, water or restroom access. He believes SWAG can help address the problem.

Mayor Flynn closed public comment.

Representatives from SWAG spoke to respond to comments and questions.

Council discussion:

Councilmember Miller noted that there is a serious problem in Banning and there is a need for intervention but commented on needing to look at the City’s finances before committing them to a contract and allow Faith in Action to provide a presentation for equal opportunity.

Councilmember Barrington agreed that she would like to see Faith in Action present their proposal for equal opportunity, noting that FIA and SWAG do two different things. She noted 34 5
the spending on staffing for Opportunity Village and suggested there may be funding to hire SWAG.

Mayor Pro Tem Royce agreed with his colleagues and noted that there will be spending either way but commented on the importance of hiring individuals who are properly equipped.

He encouraged the idea of speaking with the State to change the allocation of the funding towards paying for SWAG.

Councilmember Wallace agreed with Mr. Miller, noting that she would like to see stats and monies, and police calls.

Mayor Flynn commented that conferences that she attended the topics are often centered around housing. She mentioned being contacted by businesses who have said their store fronts are inundated with homeless individuals. She mentioned that while there is no discussion of funding currently, providing directions to negotiate a contract is a part of the discussion.

Motion to adjourn the meeting made by Mayor Flynn and seconded by Mayor Pro Tem Royce.

Motion carried unanimously 5-0.

4. ADJOURNMENT – 8:51 PM
Next regular meeting – May 27, 2025
Prepared by: Amanda Morgan, Program Coordinator
Reviewed and submitted by: Sandra Calderon, Acting Deputy 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/202?view_id=1&redirect=true 35 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (WORKSHOP)

CITY OF BANNING, CALIFORNIA
May 22, 2025 Council Chambers
10:00 a.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 – 10:03 AM

ROLL CALL

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

2. PUBLIC COMMENTS - Agenda Items Only
John Hagen, expressed his concerns as to why Faith in Action had been dismissed in the first place, and supported their upcoming presentation.

David Kieffer, stated that he was unfamiliar with what would be presented, but shared that he had been involved with Faith in Action for about 5 years, having served on the Board of Directors. He addressed concerns that the group SWAG did not appear to provide services for individuals such as veterans with disabilities. He shared a recent observation of and individuals seeking housing 36 2
who did not appear to have mental health issues but needed a place to stay with access to services.

Frank Conolly, commented on the timing of the Council meeting, noting that it would be better to schedule the meeting for a time when the majority of the general public would be able to attend.

Rosendo Del Rio, noted that he works at at the Banning Sizzler, commenting that If Faith in Action were to move into the new Wells Fargo building, there would be discussion of the business moving locations.

Tyler Jones, expressed appreciation for the city and the opportunity to participate, noting his recent relocation from San Diego in search of affordable housing. He acknowledged the complexity of homelessness issues and the difficult position facing decision makers. Drawing on experience as a business owner,

3. WORKSHOP

3.1 Presentation Related to Banning Police Department Transient Statistics 2024-2025 YTD
Brandon Smith, Acting Police Captain, provided the staff report.

Council questions:

Mayor Pro Tem Royce questioned in the statistics, including medical calls.

Councilmember Wallace, when they don’t want help, where are they moving those individuals to.

Councilmember Miller commented that having the medical statistics as a part of the report would be helpful.

Mayor Flynn opened public comment
Heidi Hilliard asked if all of these presentations are on the city’s website.

Frank Conolly commented that statistics and presentation were not published on the agenda.

Mayor Flynn closed public comment.

3.2 PRESENTATION BY FAITH IN ACTION CITY COUNCIL TO PROVIDE DIRECTION TO

STAFF ON WHETHER TO MOVE FORWARD WITH NEGOTIATING A CONTRACT WITH

FAITH IN ACTION TO PROVIDE HOMELESS SERVICES WITHIN THE CITY OF BANNING Faith in Action provided the presentation
Council questions:

Councilmember Miller asked what the qualifications are for the community health workers and whether Faith in Action has social workers. He also questioned about the outreach. He also questioned Faith in Action can operate Opportunity Village without funding from the city. 37 3 Mayor Flynn asked about the past 5 months activities of FIA and how it has been funded since being let go of Opportunity Village. She also asked about Faith in Action’s intent to apply for the grant that Governor Newsom had recently announced. She mentioned grants received and the total surrounding those. She confirmed if Faith in Action provided tents to the unhoused and if the city would need to assist in housing.

Mayor Flynn opened public comment
David Kieffer compared proposals from SWAG and Faith in Action and raised concerns about follow-up, coordination, and individuals returning to the streets without resources through SWAG. He questioned the need for all nonprofits, churches, and city organizations to work together. He said that a more unified, collaborative approach would be more positive and effective.

Frank Conolly, mentioned that both contracts (SWAG and FIA) can be implemented together, each with different objectives and emphasized the importance of working collaboratively.

Jacqueline Renteria supporting working with an organization that has an established plan and structure, expressing concern about proposals that emphasize “trying” rather than demonstrating proven results. While valuing Faith in Action’s contributions and on-theground social work, the speaker recommended delaying the decision and inviting both organizations to present at a public forum or town hall for further discussion. She only criticized interruptions during public comments, urging council members to be respectful and accountable when residents are speaking.

Tyler Jones, expressed concern over “yellow flags” in the proposal, citing language about new hires and untested approaches, and stated the need to move from trying to producing results. The speaker questioned whether the city has accurate date on how many people experiencing homelessness would use the services, cautioning against investing resources without clear evidence of demand.

Heidi Hilliard, suggested holding workshops with service providers and questioned whether social workers involved are properly licensed, emphasizing the importance of qualified staff and lived experience among employees or volunteers. She also expressed concern that financial details and budgeting were not adequately discussed, noting the absence of city representatives in financial planning conversations and characterizing the process as window shopping without proper fiscal review.

Juanita Diaz, expressed general support for the proposal but questioned eligibility, asking whether services would be limited to Banning residents and how residency would be verified, noting past instances of individuals coming from other cities. The speaker supported collaboration between Opportunity Village and Faith in Action, cautioned against being closed minded about outside partners, and stated willingness to work with both organizations to meet community’s needs.

Mayor Flynn closed public comment
Council discussion:

Councilmember Wallace asked the Acting City Manager if he had located the grant and gained status of the monies. She also questioned if it was true that if Opportunity Village 38 4
would be closed, if the city would be responsible for paying back the grant funding, clarifying she had spoken with the Supervisor regarding the money.

Mayor Pro Tem Royce appreciated the great comments and reiterated this must be many resources to make it happen. He also clarified to ensure that the Acting City Manager was looking into the grant
Councilmember Barrington commented on her respect for Faith in Action, noting their hard work in the community. She commented on seeing the need for both SWAG and Faith in Action to provide work in the commenting, noting that, financially, it would not be possible to support both organizations.

Councilmember Miller agreed with his colleagues but expressed concern over the city’s financial position, emphasizing that it is important to understand the fiscal picture before making any other decisions. He also mentioned that the timing of the meeting was challenging for community members to attend, as many individuals work.

Mayor Flynn asked Faith in Action if the city would not fund them if the organization continued its work. She noted that staff are still looking into the grant options, expressing that there may be other options available.

John Pinkney, Interim City Attorney, went over details of the grant, specifically noting funding and terms surrounding some remedies that could be used under the contract.

Motion made by Mayor Pro Tem Royce to direct staff to see if the grant can be modified for wrapping services, and seconded by Mayor Flynn
Motion carried unanimously 5-0.

Motion made by Mayor Pro Tem Royce to adjourn the meeting and seconded by Councilmember Miller.

Motion carried unanimously 5-0.

ADJOURNMENT – 12:38 PM
Next Regular Meeting – May 27th, 2025
Prepared by: Amanda Morgan, Program Coordinator
Reviewed and submitted by: Sandra Calderon, Acting Deputy 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/204?view_id=1&redirect=true

39 1

MINUTES

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
November 12, 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 Deputy City Clerk

1. CALL TO ORDER
5:02 p.m.

2. 1.1 INVOCATION
Performed by Pastor David Kieffer of Our Savior's Lutheran Church

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

3. AGENDA APPROVAL

2.1 AGENDA APPROVAL
A motion to approve the agenda was made by Council Member Wallace, seconded by Council Member Barrington. Motion carried unanimously 5-0.
40 2

3. PRESENTATIONS

3.1 Recycling All-Stars Awards
Recommendation: No action required, awards presentation.

Guadalupe Vega and Johnny Russo's Italian Kitchen were recognized by City Council and Waste Management for their recycling efforts.

3.2 Retirement Recognition of Public Works Superintendent Carl Szoyka Recommendation: Recognition for the retirement of Public Works Superintendent Carl Szoyka for nearly 38 years of service with the City of Banning.

Carl Szoyka, Public Works Superintendent, was recognized for 38 years of service dedication and contributions to the City.

3.3 Proclamation Honoring Mrs. Alice Louise Feldt Mandelke Recommendation: Proclaim Wednesday, November 12, 2025 as a day to honor Mrs.

Alice Louise Feldt Mandelke.

A proclamation was read honoring Alice Louise Felt-Mendelke on her 100th birthday, recognizing her lifelong residency and contributions to Banning.

4. REPORT ON CLOSED SESSION
Closed Session report by City Attorney John Pinkney
No reportable action was taken on closed session items 3.1 through 3.5.

3.1 CONFERENCE WITH LABOR NEGOTIATIORS
Pursuant to Government Code Section 54957.6 Agency Designated Representatives: Art Vela, Interim City Manager; David Newell, Community Development Director; Nicole Jews, Human Resources Manager; Employee Organization: Banning Police Officer's Association (BPOA)

3.2 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1) - One Case Two Brothers 14 Corporation v. City of Banning et. al. Riv. Co. Sup. Ct. No. CVR12406468

3.3 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8. Property: Banning Municipal Airport consisting of approximately 232.41 acres comprised of APNs 541-240 -009; 541-250 -009; 541-140-003; 532-150- 002; 532-150-003; 532-150- 004; 532- 130 -012; 532-130-018; 532-130-011; 532-180- 034. Agency Negotiator: Interim City Manager Art Vela or his designee. Negotiating Parties: City of Banning as potential Lessor and Industrial Enterprises, LLC as potential Lessee. Under Negotiations: Price and Terms of proposed ground lease

3.4 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8 Property: Vacant land adjacent to Bluff Street consisting of approximately 95 acres within APNs 531-100-008 and 531-110-012 and land consisting of approximately 160 acres with APN 535-080-018. Agency Negotiator: Interim City Manager Art Vela or his designee. Negotiating Parties: City of Banning and Loma Linda University. Under Negotiation:

Price and Terms, including possible land swap of the City’s above 95 acres in exchange for Loma Linda’s above described 160-acre parcel.

3.5 CONFERENCE WITH LEGAL COUNSEL-INITIATION OF LITIGATION 41 3
Pursuant to Government Code Section 54956.9(d)(4) – Deciding Whether to Initiate Litigation - One (1) Case.

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND

REPORTS

5.1 PUBLIC COMMENTS
● Julianne Dawkins-Despain and Stephanie Robinson introduced their new business, Farm to Fork Cafe.
• Sue Savage, City Treasurer, expressed concerns about financial transparency and her limited access to city resources.
• Lou Gregory, Banning resident, commended on Carl s work and questioned the accuracy of homelessness statistics.

5.2 CORRESPONDENCE
A letter from Tanisha Taylor was read, expressing concerns about the lack of basic necessities and the presence of homelessness in Banning.

5.3 APPOINTMENTS
None

5.4 CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace
● Reported on attending SCAG meetings and pilot programs, including e-bikes ● Mentioned upcoming grant opportunities through SCAG
Mayor Pro Tem Royce
● Attended the State of the City Address
● Commended the Chamber of Commerce and city staff
Council Member Miller
● Attended a TNOW meeting at Beaumont City Hall to discuss Pennsylvania grade separation and 79 interchange projects
● Attended the Cal City's Riverside County Division general meeting Mayor Flynn
● Attended the City of Hemet State of the City on November 6. ● Attended Rosilicie Ochoa Bogh Town Hall which was held in Beaumont on November 9. ● Attended RCTC today and One of the things that came up is the Highland Springs Interchange project, which is in the pre-construction phase, and it's going to go into final design, and it is estimated to start until 2031 to 2032.

5.5 CITY TREASURER'S REPORT
42 4
Sue Savage, City Treasurer presented a detailed report covering:
● City Council Finances: Expenses exceeding income for three years, reliance on investment funds.
● Payroll and Staffing: October payroll reached $1.9 million due to three pay periods. ● Banking Landscape: Updates on balances in various Bank of America and HCN Bank accounts. ● Banning Utility Authority: Overview of debt and bonds, highlighting payments due and the Chandler custody account.
● Banning Successor Agency: Cash withdrawals and use of funds to cover expenses. ● Call to action: a call to stewardship

5.6 CITY MANAGER'S REPORT
Art Vela addressed some of the Treasurer's comments:
● Explained the higher payroll expense in October due to three pay periods. ● Clarified that the Fair Oaks bond is paid by residents of that development. ● Discussed the strategic financing plan of issuing bonds for long-term infrastructure. ● Acknowledged the utility billing issue and efforts to catch up, with revenue starting to trickle in. ● Mentioned that the electric rate increase would help expedite the recovery of the Wells Fargo account.
● Announced a coordinated spay and neuter clinic event. ● Announced upcoming community events

5.7 CITY ATTORNEY'S REPORT
The City Attorney stated that City staff, the City Council and the City Attorney’s Office have ensured the Treasurer has access to information necessary to fulfill her statutory duties and has been repeatedly invited to participate in efforts to restore the City’s financial stability. It was noted that the Treasurer has not accepted those invitations, though there is hope she may reconsider.

The City Attorney also clarified that the City has a legal obligation to provide accurate and complete financial information. Until the City’s books are brought current, statements made by the Treasurer do not constitute official City financial statements.

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 Consideration and Approval of the meeting minutes of the April 8, April 18 and October 28, 2025, City Council meetings.

6.2 Receive and File Fire Protective Services Statistics for the Month of October 2025.

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

6.4 Receive and File Police Department Statistics for the Month of October 2025.

6.5 Receive and File Animal Control Statistics for the Month of October 2025.

6.6 Parks and Recreation Report of Monthly Activities through the 1st Quarter of Fiscal Year 2025/2026 - September 2025

6.7 Community Cleanup and Compost Giveaway Event Update

6.8 Issuance of "Tier II Public Notice" due to Exceedance of Hexavalent Chromium Maximum Containment Level.

6.9 Authorize the City Manager to sign the Notice of Completion for Project No. 2022-05, “Ramsey Street and Omar Street Intersection Improvements” as complete and direct the City Clerk to record the Notice of Completion.
43 5

6.10 Consideration of Ordinance 1613, Adopting Amendments to the Banning Municipal Code, Chapters 8 and 15, to Incorporate the 2025 California Building Standards Codes with Local Amendments and the 2025 California Fire Code with Local Amendments

6.11 Accept an Easement from Tri Pointe Homes for Electric Utility Purposes on Accessor’s Tract Map No. 37389-3 PA 29 within the Atwell Development for the Maintenance of the City-Owned Electric Distribution System

6.12 Consideration of Resolution 2025-147, Approving Amendment No. 1 in the Amount of $20,000 for a Total Agreement Amount of $45,000 with Pioneer Americas a Olin Corporation of Atlanta, Georgia for the Purchase of 12.5% Sodium Hypochlorite and Approving an Annual Agreement in the Amount of $45,000 per year for a Total of Five Years

6.13 Consideration of Resolution 2025-155, Amending the Classification and Compensation Plan Related to two Title Changes

6.14 Consideration of Resolution 2025-157, Granting of a Non-Exclusive Easement to Rancho San Gorgonio, LLC on Westward Avenue between Scott Street and the Eastern City Limit for Access, Ingress, Egress, and Maintenance Purposes

6.15 Consideration of Resolution 2025 -158, Approving the First Amendment to the Master Services Agreement (MSA) with Itron, Inc. (Itron) for Software-as-a- Service (SaaS) Agreement for OWCE (Open Way Collection Engine) and ISM (Itron Security Manager).

6.16 Consideration of Resolution 2025-159, Receipt of a One-time Transfer of Funds from the Clean Fuel Reward (CFR) Program

6.17 Consideration of Resolution 2025-160, Approving a New Purchase Order for GARDA CL West, Inc. to Use During Fiscal Year 2025/2026 and Fiscal Year 2026/2027 for an Amount Not to Exceed $35,000 per year

6.18 Consideration of Resolution 2025-161, Awarding a Professional Services Agreement for the Financial and Financial Forecasting Services to Urban Futures, Inc.

6.19 Consideration of Resolution 2025-162, Approving the Professional Services Agreement with Richard Heath & Associates, Inc. for Solar Photovoltaic and Energy Assessment Services Mayor Flynn opened public comment
No public comment
Mayor Flynn closed public comment
Motion made by Council Member Wallace to approve items 6.1 through 6.16 and seconded by Council Member Miller
Motion carried unanimously 5-0.

7. PUBLIC HEARINGS

7.1 Consideration of Resolution 2025-156, Adopting the Comprehensive User Fee Study Report Prepared by Matrix Consulting Group and Dated October 2025 and the Adoption of an Updated Master User Fee Schedule for the following City Departments and Fee Groups; Electric Utility, Engineering; Film Permits; Finance; Fire; Parks and Recreation; Planning; Building; Police; Utility Billing; Water & Wastewater; Development Services Surcharges Recommendation: Adopt Resolution 2025-156
Nate Smith, Deputy Director of Public Works/City Engineer presented the Enhanced User Fee Study prepared by Matrix Consulting Group (October 25, 2025) and recommended adoption of an updated Master User Fee Schedule for multiple city departments, including Electric Utility, Engineering, Film Permits, Finance, Fire, Parks and Recreation, Planning, Building, Police, and Utility Services. The study reviewed 824 fee line items, eliminated outdated fees, added flat fees for common services, expanded special events and film permit fees, and assessed cost recovery for each service. Most fees were below actual city costs, and the updated schedule recommends adjustments to fully cover the city’s costs without exceeding them. 44 6 Adoption of the updated fees is proposed to be effective January 15, 2026, with annual CPI-based adjustments.

Staff discussed that many user fees adopted in 2019 were based on 2018 data and have not kept pace with current costs, leading to under-collection. Going forward, fees will be adjusted annually using the CPI to maintain cost recovery.

Council Member Barrington asked about sign permits, and staff clarified that temporary signs, such as banners or A-frame business signs, may be subsidized to encourage compliance, while other types or signs, including most real estate signs, are typically exempt or regulated differently.

Council Member Miller asked for clarification on false alarm fees for residential and commercial properties, confirming that charges apply after three false alarms for any property type.

Questions were also raised regarding Banning’s budget and FTE comparisons to other cities, noting that Banning’s higher figures are primarily due to staffing for city-run electric and water utilities. Staff explained that comparisons should consider cities providing similar services.

Mayor Flynn opened public hearing at 6:16 p.m.

No public comment
Mayor Flynn closed public hearing at 6:16 p.m.

Motion made by Council Member Wallace to adopt Resolution 2025-156 and seconded by Mayor Pro Tem Royce.

Motion carried unanimously 5-0.

8. REPORTS OF OFFICERS
None

9. DISCUSSION ITEMS

9.1 Western Regional Council of Governments (WRCOG) Vehicle Miles Driven (VMT) Mitigation Program Overview
Recommendation: Provide guidance to staff
Nate Smith, Deputy Director of Public Works/City Engineer and David Newell, Community Development Director presented an overview of a potential VMT mitigation bank program with WRCOG.

They sought guidance on the city's participation and potential policies.

Key points covered:
● Explanation of VMT and its relevance to CEQA.
● Difficulties in mitigating VMT impacts, especially in suburban and rural communities. ● WRCOG's proposed VMT mitigation program as a regional marketplace. ● Potential project types suitable for the program, such as transit passes and bus station enhancements.
● Obligations for the city, including a voluntary agreement and cost estimates. ● Policy considerations such as local preference and a hierarchy of mitigation measures.

Council Discussion on VMT
Council Member questions were centered on:
● Scope of "local" region. 45
7 ● How Caltrans's program interrelates with that of WRCOG. ● Enforceability and management of WRCOG program.
● Program details, potential challenges, and the potential for a WRCOG presentation to the Council.

10. ANNOUNCEMENTS FROM CITY COUNCIL MEMBERS
Council Member Miller announced a public town hall meeting on Saturday the 15th at 10:00 a.m. at the Senior Center, featuring presentations from David Newell and Blue Zones policy leaders.

Positive feedback was received at the State of the City regarding the Youth Council.

Mayor Flynn announced a strategic workshop will be held on November 25 from 9:00 a.m. to 5:00 p.m., including a presentation and full agenda item on the GHJ Utility audit. A Special public hearing for the Sunset Crossroads project is tentatively scheduled for December 11, with the next regular meeting on December 9 and no meetings until January.

Council Member Barrigton announced a District 2 town hall meeting on December 4, to be held in the Council Chambers. Shared positive remarks about Banning Community Health Center on Williams Street, noting its modern equipment, professional staff and extended hours.

11. ITEMS FOR FUTURE AGENDAS

11.1 NEW ITEMS

1. Update Ordinance 1603 (Flynn) October 2025

11.2 EXISTING ITEMS

1. Animal Control Facility Assessment (Flynn) January 2025

2. Emergency Preparedness (Barrington) January 2025

3. Contractor(s) to do Citywide Cleanup (Flynn) May 2025

4. Review and Update Council travel Policy (Flynn) May 2025

5. Streamline Procurement Policy (Flynn) August 2025

6. Community Garden, Sun Lakes (Flynn) September 2025
Mayor Flynn requested that the January meeting include a review of Planning Commissioners and a review and possible update of procedures for hiring a Police Chief.

Council Member Barrigton discussed an existing agenda item on emergency preparedness, with interest in forming an ad hoc committee to begin developing an emergency response plan.

Art Vela, Interim City Manager noted progress on several ongoing items, including updates to the anticamping ordinance, animal control facilities assessment, and citywide cleanup contracts.

12. ADJOURNMENT
A motion to adjourn the meeting was made by Council Member Miller, seconded by Mayor Pro Tem Royce. Motion carried unanimously 5-0, and the meeting was adjourned at 7:07 p.m.

Minutes prepared by:

Sandra B. Calderon
Acting Deputy 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/255?view_id=1&redirect=true 46 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (CLOSED SESSION)

CITY OF BANNING, CALIFORNIA
December 9, 2025 Council Chambers
3:00 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.

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: Phaedra Norton, Assistant City Attorney Arturo Vela, Interim City Manager
Vickie Sellers, City Clerk
Sandra Calderon, Acting Deputy City Clerk

1. CALL TO ORDER– 3:03 p.m.

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

2. PUBLIC COMMENTS - Agenda Items Only
No Public Comments

3. CLOSED SESSION
Phaedra Norton, Assistant City Attorney read closed session items.

3.1 CONFERENCE WITH LEGAL COUNSEL PENDING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1) Jimmy Flores, et., al. v. City of Banning, et., al. CVRI2405565

3.2 CONFERENCE WITH LEGAL COUNSEL REGARDING - ANTICIPATED

LITIGATION - SIGNIFICANT EXPOSURE TO LITIGATION
Pursuant to Government Code Section 54956.9(d)(2) and/or (3). One potential case. 47 2

3.3 CONFERENCE WITH LEGAL COUNSEL REGARDING POTENTIAL INITIATION OF LITIGATION Pursuant to Government Code Section 54956.9(d)(4). Three potential case.

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

3.5 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8. Property: Banning Municipal Airport consisting of approximately 232.41 acres comprised of APNs 541-240 -009; 541-250 -009; 541-140-003; 532-150- 002; 532-150-003; 532-150- 004; 532- 130 -012; 532-130-018; 532-130-011; 532-180- 034. Agency Negotiator: Interim City Manager Art Vela or his designee. Negotiating Parties: City of Banning as potential Lessor and Industrial Enterprises, LLC as potential Lessee. Under Negotiations: Price and Terms of proposed ground lease.

The City Council went into Closed Session at 3:05 p.m.

4. ADJOURNMENT
The City Council reconvened in open session at 3:52 p.m. No reportable action was taken. The Council did not complete review of all closed session items and will return to closed during the regular meeting Minutes prepared by:

Sandra B. Calderon
Acting Deputy 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/270?view_id=1&redirect=true 48 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (WORKSHOP)

CITY OF BANNING, CALIFORNIA
December 9, 2025 Council Chambers
3:30 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.

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: Phaedra Norton, Assistant City Attorney Arturo Vela, Interim City Manager
Vickie Sellers, City Clerk
Bob Deis, Sr. Consultant, Sloan Sakai Yeung Wong, LLP
Sandra Calderon, Acting Deputy City Clerk

1. CALL TO ORDER – 3:53 p.m.

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

2. WORKSHOP

2.1 Parks and Recreation Commission Interview to fill the vacancy in Position 4, with a term ending January 31, 2027, on the Banning Parks and Recreation Commission.

Recommendation: Conduct an interview with the applicant to fill a vacancy on the Banning Parks and Recreation Commission, Position 4, term ending January 31, 2027.

Applicant Rita Chaparrosa introduced herself, highlighting her lifelong residency in Banning, her 37 years of experience with the city in various departments, and her involvement in community committees.
49 2
● Parks and Recreation Commission Role: Rita understands the role to be advisory, with recommendations for policies and programs enhancements. ● Relationship with Staff and City Council: The relationship should be advisory, with recommendations going to the director. Issues should be taken to the director rather than staff directly.
● Handling Concerns: Rita stated she would go to the director with major concerns about staff reports and would keep confidential matters private.
● Meeting Attendance: Rita confirmed her ability to commit to attending the Parks and Recreation Commission meetings.

2.2 Continuance of the City of Banning Strategic Plan "Banning 2030 - Designing the Future TODAY"
Recommendation: Continue Discussion and Finalize Direction Regarding the City of Banning Strategic Plan "Banning 2030 - Designing the Future TODAY".

Discussion Points:
● Strategic Plan Overview: Bob Deis presented an assessment of the City organization and recommendations for moving forward, based on a strategic plan called "Banning 2030, Designing the Future Today".
● Workshop Summary: The workshop on November 25th involved each department sharing their strengths, weaknesses, opportunities, and threats (SWOTs). The strategic plan aims to reset the organization and onboard the council.
● Strategic Goals: There are 64 strategic goals due to Banning being a $100 million corporation on a major interstate, having three utilities, and needing to address accumulated catch-up goals. ● Decentralized Management: Banning's city management is decentralized, requiring strong department heads.
● Financial Position: The City's financial position is impaired. The general fund balance and internal service fund balance need immediate attention. ● Electrical Utility Fund: The Electrical Utility fund is underwater but is on its way to solvency through rate increases.
● Cash Management: Tight cash management is critical due to the impaired financial position. ● Budget Imbalance: The City has not had a structurally balanced budget for six years. Ongoing revenues need to cover ongoing expenditures.
● Financial Viability: The City needs to determine if it can be structurally balanced for the next five years.
● Catch-Up Goals: Employee performance management and technology issues need addressing. ● Insurance Issues: High settlements and claims have led to an increased insurance deductible. 50 3
● Technology Decentralization: Technology purchasing and rollout are decentralized, leading to inconsistency between departments. Centralizing this function is recommended. ● Management Stability: Addressing management turnover is essential. ● Priority Review: Council reviewed Exhibit A to categorize and prioritize strategic goals ● Goal Tiers: Goals were divided into tiers based on the number of votes received. ○ Tier 1: Policy goals with three or two votes.
○ Tier 2: Goals with one vote.
○ Tier 3: Goals with no votes.
● Policy vs. Administrative Goals: The focus is on policy goals, with administrative goals providing direction to the City Manager.
● Flexibility: The City Manager needs flexibility on administrative goals. ● Implementation Plan: An implementation plan will be developed for Tier 1 policy priorities, including timelines and budgets.
● CFD Program: The creation of a CFD program was discussed as part of a multi-year plan to fix the City's finances.
● Tier Adjustments: Some goals were moved between tiers based on feasibility and overlap. ● Leave Management Program: Implementing a leave management program was identified as an important administrative goal.

3. PUBLIC COMMENTS - Agenda Items Only
Mayor Flynn opened Public Comment
Frank Connolly supported Rita Paparrosa’s appointment and thanked Mr. Deis for his excellent work. He suggested prioritizing financial matters over animal control and homelessness issues and emphasized the importance of addressing the distressed departments: Finance, Human Resources, Police, and IT.

Mayor Flynn closed Public Comment
Next Steps:
● A consolidated strategic plan with tiered priorities and an implementation plan for Tier 1 will be presented in January.
● Council agreed to move forward with the strategic plan based on the presented tiers.

Action Items:
● Develop a consolidated strategic plan with tiered priorities. ○ Person responsible: Bob Deis
○ Deadline: January 2026
● Create an implementation plan for Tier 1 policy priorities, including timelines and budgets. ○ Person responsible: Bob Deis 51
4 ○ Deadline: January 2026
● Staff to present the final strategic plan to the Council. ○ Person responsible: City Staff
○ Deadline: January 2026

4. ADJOURNMENT
Motion was made by Mayor Pro Tem Royce and seconded by Mayor Flynn.

Motion carried unanimously 5-0.

The meeting was adjourned at 4:43 p.m. and Council moved to go back into closed session.

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/271?view_id=1&redirect=true 52 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: January 13, 2026
SUBJECT: Accept as Complete Various Improvements Related to the Atwell Specific Plan Development and Authorize the 90% Reduction of the Improvement Bonds
RECOMMENDATION:

City Council accept as complete various improvements related to the Atwell Specific Plan Development and authorize the 90% reductions in the improvements bonds.

BACKGROUND:

On February 27, 2024, City Council adopted Resolution 2024-29 approving Final Tract Map No. 37388- 1, releasing the map for recordation; authorizing staff to sign the subdivision improvement agreement and final tract map; and accepting the Performance and Labor and Material Bond for public improvements. As conditions of approval for the Atwell Specific Plan development, Tri Pointe Homes was required to sign subdivision improvement agreements and to submit bonds to assure the City that the required public improvements are constructed according to City standards and specifications. These public improvements included Raintree Place (street, sewer, water, NP water) from Highland Home Road providing access to separate subdivision areas of the specific plan.

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 # Bond Amount Improvements
30200445 $382,663.05 Raintree Place Street
30200447 $133,857.42 Raintree Place Sewer/Water
30200446 $85,103.94 Raintree Place NP Water
The remaining 10% of the bond amounts will remain for a period of 12 months (maintenance period) at which point the 10% balance will be released and the improvements will become City owned and maintained improvements.

FISCAL IMPACT:

Not applicable
ALTERNATIVES:

Do not accept staff’s recommendation and provide staff with additional direction. 53 BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. TR37388-1 SIA and Bonds - Raintree Place.pdf

2. Raintree Place Improvement Exhibit.pdf
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
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105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
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127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149

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:

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-1 EXHIBIT
PH 2B-1 RAINTREE PLACE WATER, NON-POTABLE WATER, STREET & MONUMENTATION 150

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Patrick Safari, Capital Improvement Projects Manager Nathan Smith, Deputy Director of Public Works/City Engineer MEETING DATE: January 13, 2026
SUBJECT: Public Works Capital Improvement Project Tracking List RECOMMENDATION:

Receive and file
BACKGROUND:

To keep the City Council and the public informed of the progress and status of various capital improvement projects, staff has prepared the attached Public Works CIP Tracking List, which will be updated and presented on a monthly basis.

The tracking list includes planning, environmental, design, and construction contracts previously approved by the City Council and/or the City Manager’s Office and currently managed by the Public Works Department.

JUSTIFICATION:

This recurring item is provided to keep the City Council and public apprised of the progress on certain projects.

FISCAL IMPACT:

Not applicable
ALTERNATIVES:

Not applicable
BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. CIP Tracking_December 2025.pdf
151

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153

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Mary Yaryan, Associate Planner
MEETING DATE: January 13, 2026
SUBJECT: Consideration of Second Reading and Adoption of Ordinance 1614, Repealing and Replacing Chapter 12.32
RECOMMENDATION:

Approve second reading and Adoption of Ordinance 1614.

BACKGROUND:

Chapter 12.32 of the Banning Municipal Code was adopted several years ago and establishes requirements for address assignment and posting within the City. The existing chapter reflects an earlier addressing framework and does not fully reflect the City’s current addressing administration practices.

Staff prepared an update to Chapter 12.32 of the Banning Municipal Code to clarify and codify the City’s addressing administration, address assignment, and posting requirements. The proposed ordinance updates the Municipal Code to reflect current administrative authority, address posting and visibility requirements, address assignment standards, and maintenance of the City’s Master Address Database.

Environmental Determination
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (the “common sense exemption”), as it can be seen with certainty that the ordinance has no potential to result in a significant effect on the environment.

JUSTIFICATION:

The proposed ordinance updates Chapter 12.32 of the Banning Municipal Code to clarify the City’s addressing authority, standards, and posting requirements. Adoption of the ordinance ensures consistency in address assignment and visibility standards and supports public safety and administrative coordination.

FISCAL IMPACT:

There is no direct fiscal impact associated with these actions.

ALTERNATIVES:

Do not adopt Ordinance 1614.

BUDGETED?:

No
CONTRACT/AGREEMENT:
154
No
ATTACHMENTS:

1. Ordinance 1614 Final.docx

2. Exhibit A Repealing BMC 12.32.pdf

3. Exhibit B New BMC 12.32.pdf
155
ORDINANCE NO. 1614

AN ORDINANCE OF THE CITY OF BANNING, CALIFORNIA, REPEALING THE EXISTING CHAPTER 12.32 AND ADOPTING A NEW CHAPTER 12.32 (HOUSE NUMBERING SYSTEM) OF TITLE 12 (STREETS, SIDEWALKS AND PUBLIC

PLACES) OF THE BANNING MUNICIPAL CODE RELATING TO THE

ADDRESSING AND HOUSE NUMBERING SYSTEM
WHEREAS, Chapter 12.32 of the Banning Municipal Code was adopted in 1965 and refers to a manual map-based system that is incompatible with the City’s current digital GIS, permitting, utility billing, and emergency dispatch systems.

WHEREAS, a uniform, modern addressing system is necessary to promote the public health, safety, and welfare by enhancing public safety, efficient emergency response, accurate mail and parcel delivery, and interagency coordination.

WHEREAS, the adoption of a new addressing and housing numbering system will provide clarity, sequencing, and support integration with the City’s digital Master Address Database.

WHEREAS, in accordance with the City’s Police Powers, the City of Banning hereby repeals Chapter 12.32 House Numbering System of the Banning Municipal Code and adopts a new Chapter 12.32 House Numbering System of the Banning Municipal Code.

NOW THERFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE

CITY OF BANNING, RIVERSIDE COUNTY, STATE OF CALIFORNIA AS FOLLOWS:

SECTION 1. ENVIRONMENTAL
The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), the “common sense” exemption, as it can be seen with certainty that the adoption of this Ordinance will not have the potential to cause a significant effect on the environment. This action involves the modernization and administrative update of existing addressing procedures and will not result in any physical environmental impacts.

SECTION 2. SEVERABILITY.

If any provision, section, paragraph, sentence, or word of this Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such decision 156
shall not affect the validity of the remaining portions. The City Council declares it would have adopted this Ordinance irrespective of the invalidity of any portion.

SECTION 3. PROSECUTION OF PRIOR ORDINANCE.

Neither the adoption of this Ordinance nor the repeal of any prior ordinance shall affect the prosecution of any violation of the Banning Municipal Code committed before this Ordinance’s effective date.

SECTION 4. FINDINGS.

The City Council of the City of Banning finds as follows:

A uniform, modern addressing system is necessary to promote public safety, efficient emergency response, accurate mail and parcel delivery, and interagency coordination.

Chapter 12.32 of the Banning Municipal Code, adopted in 1965, refers to a manual map-based system that is not compatible with the City’s current digital GIS, permitting, utility billing, and emergency dispatch systems.

The repealing of the existing and adopting of a new Chapter 12.32 will enhance clarity, sequencing, and consistency of addresses citywide and support integration with the City’s digital Master Address Database and promote the public health, safety, and welfare.

SECTION 5. APPROVAL.

The City Council hereby approves amendments to the Banning Municipal Code by repealing existing Chapter 12.32, in its entirety, as set forth in Exhibit A, and adopting a new Chapter 12.32 titled “House Numbering System”, as set forth in Exhibit B, attached hereto and incorporated herein by this reference.

SECTION 6. EFFECTIVE DATE AND PUBLICATION.

The Mayor shall sign, and the City Clerk shall certify to the passage of this Ordinance and cause the same, or a summary thereof, to be published within fifteen (15) days after adoption in accordance with Government Code Section 36933. This Ordinance shall take effect thirty (30) days after adoption in accordance with Government Code Section 36937.

NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Banning, California, approves an amendment to the City of Banning Municipal Code.
157
INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Banning, California, held on the 9 th day
of December 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Banning, California, held on the 13th day of January, 2026.

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
Richard Royce, Mayor
City of Banning
Attest: _________________________
Sandra Calderon, Acting Deputy City Clerk
City of Banning
Approved as to form:
_________________________
John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney, LLP
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Exhibit A
Title 12 - STREETS, SIDEWALKS AND PUBLIC PLACES
Chapter 12.32 HOUSE NUMBERING SYSTEM

Page 1 of 1 ends

Chapter 12.32 HOUSE NUMBERING SYSTEM

12.32.010 House numbering—System adopted.

The uniform system of house numbers described in the Section 12.32.020 is hereby adopted and established in the city.
(Code 1965, § 21-17.)

12.32.020 House numbering—System described.

The house numbering system for the city shall be as follows:

Starting with Ramsey Street and San Gorgonio Avenue as zero lines and numbering north and south and east and west from these streets, allowing one hundred numbers for each three hundred and thirty foot block, plus or minus, with the numbers divided centesimally along the block, and the blocks numbered as set forth and contained in the certain map entitled "Index of Block Numbers of the City of Banning, California," on file at the City Hall, which map is by reference made a part of this chapter. (Code 1965, § 21-18.)

12.32.030 Duty of owners or occupants of premises—Generally.

Every person owning, controlling, occupying or using any house, store, storeroom or building situated on premises fronting on any street, avenue or other public way or place in the city shall procure, place, attach and maintain in a conspicuous place on the street front of every such house, store, storeroom or building and on, over or near each door or entry thereto facing on any street, avenue or other public way or place the number assigned thereto by the city.
(Code 1965, § 21-19.)

12.32.040 Duty of owners or occupants of premises—In case of new or altered structures.

It shall be the duty of every person owning, controlling, occupying or using any new or altered structure required to be numbered by this chapter to place, attach and maintain the appropriate number to such structure within sixty days after either the completion or occupancy of the structure, whichever comes first. (Code 1965, § 21-20.)

12.32.050 Size, type, etc., of numbers.

All house numbers shall be of such size and type and so placed as to be easily visible and legible from the center of the street, avenue or other public way or place upon which the premises fronts and shall not be less than three and one-half-inches in height; provided, that numbers embossed, stamped or painted on a plate contrasting in color may be not less than two and one-half inches in height. (Code 1965, § 21-21.)
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Exhibit B
Title 12 - STREETS, SIDEWALKS AND PUBLIC PLACES
Chapter 12.32 HOUSE NUMBERING SYSTEM

Page 1 of 2 ends

Chapter 12.32 HOUSE NUMBERING SYSTEM

12.32.010 Adoption of Uniform Addressing System.

A uniform addressing and house numbering system is hereby adopted and established within the City of Banning.

The purpose of this system is to promote public safety, efficient emergency response, accurate mail and parcel delivery, and coordination among public agencies and utilities.

12.32.020 General Addressing Method
Addresses within the City shall be assigned in a logical, consistent, and sequential manner in accordance with a standardized grid and numbering system maintained by the City.

The baseline for numbering shall generally correspond with major intersecting streets within the City, with address numbers increasing outward from that point.

The specific methods and standards for address assignment, numbering increments, and street naming shall be maintained administratively in the City’s adopted Addressing Policy on file with the Community Development Department.

12.32.030 Responsibility of Property Owners and Occupants.

Every person owning, controlling, occupying, or using any house, building, or structure fronting on any street or public way shall post and maintain the official address number assigned by the City Address numbers shall be displayed in a location that is visible from the adjacent public right-of-way or access drive and shall be kept in good repair at all times No person shall display, alter, or remove any address number except as authorized by the City.

12.32.040 New or Altered Structures.

It shall be the duty of every person owning, controlling, occupying, or using any new or altered structure required to be numbered by this Chapter to post and maintain the assigned number prior to final inspection, occupancy, or utility activation, whichever occurs first The City may withhold issuance of final approvals or services until the structure is properly addressed and posted.

12.32.050 Address Number Specifications.

All address numbers shall be of sufficient size, color contrast, and placement to be clearly visible and legible from the public right-of-way or private access serving the property, consistent with the Fire Code and the City’s adopted Addressing Policy.

A. Buildings not visible from the street shall provide address identification at the point of access.

B. Illumination may be required where necessary for visibility and emergency response.

12.32.060 Administration and Enforcement.

The Community Development Director, or designee, shall administer this Chapter and maintain the City’s official Master Address Database.

The Director may adopt and update administrative procedures, standards, and guidelines consistent with this Chapter.
160

Page 2 of 2 ends

Violations of this Chapter or the Addressing Policy are subject to enforcement under Title 1 of this Code and any applicable Fire Code provisions.

12.32.070 Fees.

Fees for address-related services shall be established by resolution of the City Council and listed in the City’s Master Fee Schedule.

Such services may include, but are not limited to, new address assignment, address verification, change or correction of address, temporary addresses, tenant or suite numbering, and street naming or renaming.

Fees shall be due at the time of application submittal and are non-refundable unless otherwise specified by the City Council.

The Community Development Director may waive or defer fees for City-initiated address corrections necessary for public safety or administrative consistency. 161

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Art Vela, Interim City Manager
MEETING DATE: January 13, 2026
SUBJECT: Consideration of Resolution 2026-01 UA Approving the Fourth Amendment to the Professional Services Agreement with Falen Law Offices, LLC for Legal Services related to the Transfer of the San Gorgonio Flume System Increasing the Agreement Amount by $250,000 and to Ratify $150,000 issued on July 2025
RECOMMENDATION:

Adopt Resolution 2026-01 UA.

BACKGROUND:

For several years, the City of Banning, in cooperation with Banning Heights Mutual Water Company has been engaged in negotiations to secure control of the San Gorgonio Flume from Southern California Edison (SCE). SCE has attempted to surrender its license for the San Gorgonio hydroelectric system to the Federal Energy Regulatory Commission (FERC) for many years; however, several outstanding issues must be resolved before FERC will issue an approval of the SCE application and the Flume transfer can be completed.

Due to the complex nature of the San Gorgonio Flume transfer, as well as the significance of several other ongoing Water and Wastewater projects/activities, the City sought specialized legal services through a formal Request for Proposals (RFP) process in 2018. As a result, Falen Law Offices, LLC was selected to provide representation specific to San Gorgonio Flume project.

Falen Law Offices, LLC was chosen based upon their experience and expertise dealing with projects that involve the Federal Land Policy and Management Act (FLPMA), US Forest Service appeals, the 1891 Right of Way Act and Federal land issues, all of which relate to the San Gorgonio Flume project.

On April 23, 2019, the Banning Utility Authority approved a two-year Professional Services Agreement with Falen Law Offices, LLC in the amount of $100,000 for Legal Counsel Services related to the Transfer of the San Gorgonio Flume Project. On February 25, 2020, City Council approved the First Amendment to the Agreement increasing the contract by $250,000 for a total agreement amount not to exceed $350,000. On September 14, 2021, the Banning Utility Authority approved the Second Amendment to the agreement increasing contract funds in the amount of $50,000 for a total contract amount of $400,000. On August 23, 2022 the Banning Utility Authority approved a Third Amendment increasing the agreement in the amount of $100,000 for a total contract amount of $500,000 and extending the term for an additional 5-year period through August 13, 2027. Lastly, in July, 2025 an amount of $150,000 was to the contract for a total contract amount of $650,000, which will be ratified with approval of Resolution 2026-01.
162
At this time, staff respectfully requests approval of a Fourth Amendment, increasing the agreement in the amount of $250,000 for a total contract amount of $900,000.

JUSTIFICATION:

Since the execution of the agreement, Falen Law Offices, LLC, has diligently worked to review and evaluate historical documents, as well as, continued to be well-versed in longstanding negotiations to resolve the San Gorgonio Flume disputes on behalf of the City. Through the FERC Dispute Resolution Service (DRS) process, negotiations continue regarding the proposed decommissioning and US Forest Service permitting agreement.

Although staff remains optimistic regarding the progress achieved thus far, additional funds are necessary to continue working towards resolution of this complex matter. Negotiations are expected to continue.

FISCAL IMPACT:

The Fourth Amendment to the Professional Services Agreement with Falen Law Offices, LLC in the amount of $250,000 will be funded by Account 660-6300-471-90.78 (Planning/Design – Capital).

ALTERNATIVES:

1. Adopt Resolution 2026-01 UA with modifications.

2. Do not approve Resolution 2026-01 and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution 2026-01 UA.docx

2. Amendment 4 C00516 Budd Falen Law.docx

3. Resolution 2019-07 UA.pdf

4. Resolution 2020-03 UA.pdf

5. Resolution 2021-09 UA.pdf

6. Resolution 2022-10 UA.pdf
163
Resolution 2026-01 UA

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RESOLUTION 2026-01 UA

A RESOLUTION OF THE UTILITY AUTHORITY OF THE CITY OF BANNING, CALIFORNIA,

APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT WITH FALEN LAW

OFFICES, LLC FOR LEGAL SERVICES RELATED TO THE TRANSFER OF THE SAN GORGONIO FLUME SYSTEM INCREASING THE AGREEMENT AMOUNT BY $250,000 AND RATIFYING $150,000 ISSUED IN JULY, 2025.

WHEREAS, the City is engaged in an ongoing effort to secure the transfer of the San Gorgonio Flume from Southern California Edison (SCE); and WHEREAS, SCE has an application pending before the Federal Energy Regulatory Commission (FERC) to surrender its San Gorgonio hydroelectric system; and WHEREAS, several complex issues must be negotiated and resolved before FERC will approve the SCE application; and
WHEREAS, the City determined that specialized legal representation was necessary to successfully negotiate Flume issues on behalf of the City; and WHEREAS, on April 23, 2019, the Banning Utility Authority adopted Resolution 2019-07 UA, approving a Professional Services Agreement with Falen Law Offices, LLC in the amount of $100,000 to provide legal representation for the City in the San Gorgonio Flume matter; and WHEREAS, Falen Law Offices, LLC has made continuous progress on behalf of the City through the Federal Energy Regulatory Commission (FERC) Dispute Resolution Service (DRS) process; and
WHEREAS, in order to continue negotiations, the First Amendment to the agreement was processed increasing the contract amount by $250,000 for a total contract of $350,000 which was necessary to continue to fund the specialized legal representation provided by Falen Law Offices, LLC and approved under Resolution 2020-03 UA on February 25, 2020; and WHEREAS, on September 14, 2021, under Resolution 2021-09 UA, the Second Amendment to the agreement was approved extending the term and increasing the amount by $50,000 for a total contract amount of $400,000; and
WHEREAS, on August 23, 2022, the Banning Utility Authority approved the Third Amendment to the agreement increasing contract funds in the amount of $100,000 for a total contract amount of $500,000 and extending the term for up to an additional 5-year period to August 13, 2027;
WHEREAS, the contract amount was increased by $150,000 in July of 2025 for a total contract amount of $650,000.

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

SECTION 1. The Utility Authority adopts Resolution 2026-01 UA, approving the Fourth Amendment to the Professional Services Agreement with Falen Law Office, LLC for Legal 164
Resolution 2026-01 UA

Page 2 of 3 ends

Counsel Services for the Transfer of the San Gorgonio Flume System in the amount of $250,000 and ratifying $150,000 issued in July 2025.

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

SECTION 3. The City Manager is authorized to execute the Third Amendment to the Professional Services Agreement with Falen Law Offices, LLC.

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

PASSED, APPROVED AND ADOPTED this 13th day of January, 2026.

Richard Royce, Chairperson
Banning Utility Authority
ATTEST:

Sandra Calderon, Secretary
Banning Utility Authority
APPROVED AS TO FORM:

John Pinkney, Authority Counsel
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
165
Resolution 2026-01 UA

Page 3 of 3 ends

CERTIFICATION:

I, Caroline Patton, Secretary of the Banning Utility Authority, do hereby certify that the foregoing Resolution 2026-01 UA, was duly adopted by the Utility Authority of the City of Banning, California, at a regular meeting thereof held on the 13th day of January, 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Secretary
Banning Utility Authority
166
AMENDMENT NO. 4 TO PROFESSIONAL SERVICES AGREEMENT
(C00516) FOR THE TRANSER OF THE SAN GORGONIO FLUME

PROJECT BY AND BETWEEN CITY OF BANNING AND FALEN LAW
OFFICES, LLC.

THIS AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES
AGREEMENT (“Amendment No. 4”) by and between the CITY OF BANNING (“City”) and FALEN LAW OFFICES, LLC., a Wyoming limited liability corporation (“Consultant”) is effective as of this day: ______________.

RECITALS
A. City and Consultant entered into that certain Agreement for Professional Services dated August 14, 2019 (“Agreement”) whereby Consultant agreed to provide Legal Counsel Services for the Flume Project.

B. City and Consultant have entered into an Amendment No. 1 to the Agreement dated February 25, 2020, to increase the Contract Sum to Two Hundred Fifty Thousand Dollars ($250,000.00), as approved by City Council Resolution 2020-03 UA.

C. City and Consultant have entered into an Amendment No. 2 to the Agreement dated September 14, 2021, to extend the Term of the Agreement to August 13, 2022, and increase the Contract Sum to Fifty Thousand Dollars ($50,000.00), as approved by City Council Resolution 2021-09 UA.

D. City and Consultant have entered into an Amendment No. 3 to the Agreement dated October 11, 2022, to extend the Term of the Agreement to August 13,2024, and increase the Contract Sum to One Hundred Thousand Dollars ($100,000.00), as approved by City Council Resolution 2022-10 UA.

E. City and Consultant now desire to amend the Agreement to extend the Term of the Agreement to August 13, 2027, and increase the Contract Sum to Two Hundred Fifty Thousand Dollars ($250,000.00) and to ratify One Hundred Fifty Thousand Dollars ($150,000.00) that was issued on July 20, 2025.

The Parties therefore agree follows:

1. Amended Terms. The Agreement is hereby amended as follows:

1.1 The maximum compensation for the Services performed pursuant to this Amendment No. 4 shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) plus the One Hundred Fifty Thousand Dollars ($150,000.00) that 167
was previously issued, thereby increasing the Contract Sum, as set forth in Section 2.1 of the Agreement, to Nine Hundred Thousand Dollars ($900,000.00).

1.2 The Term of the Agreement, as set forth in Section 3.4 of the Agreement, is hereby extended through August 13, 2027, unless sooner terminated or extended as provided in the Agreement.

2. Miscellaneous Provisions

2.1 Continued Effect of Agreement. Except as amended by this Amendment No. 4, all provisions of the Agreement, as amended by Amendment Nos. 1, 2, and 3, shall remain unchanged and in full force and,. From and after the date of this Amendment No. 4, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment Nos. 1 through 3. In the event of a conflict between the provisions of this Amendment No. 4 and the provisions of the Agreement or Amendments No. 1 through 3, the provisions of this Amendment No. 4 shall control.

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 4.

2.3 Authority. The persons executing this Amendment No.4 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 4 on behalf of said party, (iii) by so executing this Amendment No. 4, such party is formally bound to the provisions of this Amendment No. 4, and (iv) entering into this Amendment No. 4 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 4 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
168
The Parties are signing this Amendment No. 4 on the date stated in the introductory clause.

CITY OF BANNING CONSULTANT
Art Vela,
Interim City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Sandra Calderon
Acting Deputy City Clerk
APPROVED AS TO FORM:

Slovak, Baron, Empey, Murphy & Pinkney
LLP
John O. Pinkney
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED.

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Arturo Vela, Interim City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director MEETING DATE: January 13, 2026
SUBJECT: Consideration of Resolution 2026-01, Awarding a Professional Services Agreement to Carollo Engineers, Inc. in the amount of $150,000 to perform On-Call Water/Wastewater Hydraulic Feasibility Studies.

RECOMMENDATION:

Adopt Resolution 2026-01
BACKGROUND:

On August 21, 2025, the City of Banning (“City”) issued Request for Proposals seeking qualified professional engineering firms to provide On-Call Hydraulic Feasibility Studies for the City’s water, wastewater, and recycled water systems. The purpose of the on-call contract is to support staff with timely hydraulic evaluations associated with new development projects, system capacity assessments, master planning consistency checks, and other as-needed hydraulic modeling assignments. These services are increasingly necessary as ongoing development activity continues to advance at a pace that may or may not necessarily align with the projections and assumptions identified in the City’s 2018 Integrated Master Plan (IMP).

Modern water systems are complex and constantly changing, with reservoirs, pumps, pipelines, and different pressure zones all working together to deliver water throughout the City. Because of this, simple hand calculations are not accurate enough to predict how the entire system will behave under different conditions. Specialized hydraulic modeling software is needed to simulate real-world scenarios such as daily water use, fire-flow demands and availability, system impacts due to new developments, or planned system upgrades. Using a calibrated model allows engineers to clearly understand system performance, compare options, and provide reliable recommendations for future improvements.

On September 24, 2025, the City received proposals from the following five (5) firms:

Carollo Engineers, Inc.

Albert A. Webb Associates
Dudek
Engineering Resources of Southern California
Watearth, Inc.

A three-member evaluation committee reviewed the proposals using the City’s established criteria:
qualifications, pricing, experience, professional references, approach & methodology, and value-added services.

Based on the evaluation criteria, Carollo Engineers, Inc. (“Carollo”), was determined to be the most qualified firm to perform on-call hydraulic studies. Carollo has served the City previously on multiple 183
assignments, including preparation of the 2018 IMP, development review modeling support, and on-call hydraulic modeling contract through 2024.

JUSTIFICATION:

Carollo Engineers, Inc. has extensive experience with the City’s water, wastewater, and recycled water systems, including preparation of the 2018 Integrated Master Plan and prior on-call hydraulic modeling support. Their strong familiarity with the City’s hydraulic model, development-related capacity needs, knowledge of the City's pressure zones combined with a large, locally staffed team, positions them to provide timely, accurate, and responsive hydraulic feasibility study services. Carollo also maintains a proven track record delivering similar on-call work for multiple Southern California agencies. Based on their qualifications, experience, and capacity, staff recommends Carollo as the most suitable firm to provide the City’s on-call hydraulic modeling services.

FISCAL IMPACT:

A budget appropriation in the amount of $150,000 to Water Account No. 660-6300-471.33-11 is requested to fund the Professional Services Agreement. The Agreement term will be for up to three years with an option to renew for two additional years, contingent upon satisfactory annual performance.

The City staff anticipates that more than 25% of the proposed costs will be invoiced to and recovered from developers through the preparation of hydraulic studies for their respective future development projects. Compensation to Carollo will be based on individual task orders, each outlining the proposed scope of work and associated fees, which will be reviewed and approved by the City prior to commencing any work and will follow the pricing included in the attached cost proposal.

The requested appropriation will have no impact on the General Fund.

ALTERNATIVES:

Reject the Professional Services Agreement with Carollo Engineers, Inc. and provide staff with additional direction.

BUDGETED?:

No
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution_No._2026-01.docx

2. C01218 On-Call Hydraulic Feasibility Studies Carollo.docx

3. Carollo's Price Proposal.pdf
184
Resolution 2026-01

Page 1 of 5 ends

RESOLUTION 2026-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT TO CAROLLO ENGINEERS, INC.

IN THE AMOUNT OF $150,000 TO PERFROM ON-CALL WATER/WASTEWATER HYDRAULIC MODELING SERVICES.

WHEREAS, on August 21, 2025, the City of Banning (“City”) issued Request for Proposals seeking qualified professional engineering firms to provide On-Call Hydraulic Feasibility Studies for the City’s water, wastewater, and recycled water systems. The purpose of the on-call contract is to support staff with timely hydraulic evaluations associated with new development projects, system capacity assessments, master planning consistency checks, and other as-needed hydraulic modeling assignments. These services are increasingly necessary as ongoing development activity continues to advance at a pace that may or may not necessarily align with the projections and assumptions identified in the City’s 2018 Integrated Master Plan (IMP); and WHEREAS, modern water systems are complex and constantly changing, with reservoirs, pumps, pipelines, and different pressure zones all working together to deliver water throughout the City. Because of this, simple hand calculations are not accurate enough to predict how the entire system will behave under different conditions. Specialized hydraulic modeling software is needed to simulate real-world scenarios such as daily water use, fire-flow demands and availability, system impacts due to new developments, or planned system upgrades. Using a calibrated model allows engineers to clearly understand system performance, compare options, and provide reliable recommendations for future improvements; and WHEREAS, the City’s UWMP was last updated in 2020. Although the 2025 UWMP Guidebook has not yet been released, several legislative and regulatory changes since 2020 will directly affect how the City evaluates future water demands and supplies, including "Making Water Conservation a California way of life" legislation, Compliance with water loss standards reporting, the Sustainable Groundwater Management Act (SGMA), Future water supply projects; and WHEREAS, on September 24, 2025, the City received proposals from the following five (5) firms: Carollo Engineers, Inc., Albert A. Webb Associates, Dudek, Engineering Resources of Southern California, Watearth, Inc.; and
WHEREAS, a three-member evaluation committee reviewed the proposals using the City’s established criteria: qualifications, pricing, experience, professional references, approach & methodology, and value-added services. Based on the evaluation criteria, Carollo Engineers, Inc. (“Carollo”), was determined to be the most qualified firm to perform on-call hydraulic studies.

Carollo has served the City previously on multiple assignments, including preparation of the 2018 IMP, development review modeling support, and on-call hydraulic modeling contract through 2024; and
WHEREAS, Carollo Engineers, Inc. has extensive experience with the City’s water, wastewater, and recycled water systems, including preparation of the 2018 Integrated Master Plan and prior on-call hydraulic modeling support. Their strong familiarity with the City’s hydraulic model, development-related capacity needs, interjacencies of City's pressure zones combined with a large, locally staffed team, positions them to provide timely, accurate, and responsive hydraulic feasibility study services. Carollo also maintains a proven track record delivering similar on-call work for multiple Southern California agencies. Based on their qualifications, experience, 185
Resolution 2026-01

Page 2 of 5 ends

and capacity, staff recommends Carollo as the most suitable firm to provide the City’s on-call hydraulic modeling services; and
WHEREAS, budget appropriation in the amount of $150,000 to Water Account No. 660- 6300-471.33-11 is requested to fund the Professional Services Agreement. The Agreement term will be for up to three years, contingent upon satisfactory annual performance. The City staff anticipates that more than 25% of the proposed costs will be invoiced to and recovered from developers through the preparation of hydraulic studies for their respective future development projects. Compensation to Carollo will be based on individual task orders, each outlining the proposed scope of work and associated fees, which will be reviewed and approved by the City prior to commencing any work and will follow the pricing included in the attached cost proposal.

The requested appropriation will have no impact on the General Fund; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:

SECTION 1. The City Council Award a Professional Services Agreement to Carollo Engineers, Inc. in the Amount of $150,000 to perform On-call Water/Wastewater Hydraulic Feasibility Studies.

SECTION 2. The City Council authorizes the City Manager to make non-substantive changes to the Professional Services Agreement with Carollo Engineers, Inc. in the Amount of $150,000 to perform On-call Water/Wastewater Hydraulic Feasibility Studies on behalf of the City Council.

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

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

PASSED, APPROVED AND ADOPTED this 13th day of January, 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Acting Deputy City Clerk
City of Banning
186
Resolution 2026-01

Page 3 of 5 ends

APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
187
Resolution 2026-01

Page 4 of 5 ends

CERTIFICATION:

I, Sandra Calderon, Acting Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-01, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of January, 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Deputy City Clerk
City of Banning, California
188
Resolution 2026-01

Page 5 of 5 ends

EXHIBIT A
Award a Professional Services Agreement to Carollo Engineers, Inc. in the Amount of $150,000 to perform On-call Water/Wastewater Hydraulic Feasibility Studies. 189
-1-
AGREEMENT FOR PROFESSIONAL SERVICES (C001218) FOR ONCALL HYDRAULIC FEASIBILITY STUDIES BY AND BETWEEN CITY OF BANNING AND CAROLLO ENGINEERS, INC.

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

RECITALS
A. City has sought by a Request for a Proposal (RFP 25-110) for the performance of the services for On-Call Hyrdraulic Feasibility Studies and as further defined and described particularly in Article 1 of this Agreement.

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

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

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

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

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which services may be referred to herein as the “Services” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. Consultant covenants that it shall complete the services required hereunder in accordance with the prevailing standard of care by exercising the skill and ability ordinarily required of consultants performing the same or similar services, under the same or similar 190
-2-
circumstances, in the State of California. All materials will be of good quality and fit for the purpose intended.

1.2 Contract Documents and Exhibits.

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

1.3 Compliance with Law.

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

1.4 Licenses, Permits, Fees and Assessments.

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

1.5 Familiarity with Services.

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

1.6 Prevention of Loss and Damages.

Consultant shall adopt reasonable methods during the Term (defined in Section 3.4) to furnish continuous protection to the work product, and the equipment, materials, papers, 191
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documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence.

1.7 Further Responsibilities of Parties.

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

1.8 Additional Services.

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

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

1.9 Facilities and Equipment.

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

1.10 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern. 192
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1.11 Corrections.

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

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

1.12 Party Representatives.

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

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

Name Title
Matthew Huang, PE Associate Vice President
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Consultant Representative were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Consultant Representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Consultant Representative. For purposes of this Agreement, the foregoing Consultant Representative may not be replaced nor may their responsibilities be substantially reduced or reassigned by Consultant without the express written approval of City. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions which must be made by City to the Contract Officer. 2) Consultant’s Personnel: Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the Services shall be qualified to perform such Services. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement. 193
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Consultant shall notify City of all changes in Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires to reassign any staff or sub-contractor of Consultant, City shall give notice as set forth in Section 8.1. Consultant shall, immediately upon the receipt of the notice to re-assign staff from City, reassign such person or persons.

1.13 Independent Contractor.

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

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

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

1.14 Prohibition Against Subcontracting or Assignment.

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

Therefore, Consultant shall not contract with any other entity to perform in whole or in part the Services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this 194
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Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

1.15 Debarment or Suspension.

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, as full compensation for Services satisfactorily rendered, City shall pay Consultant at the hourly rates set forth in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. In no event shall Consultant be paid more than One Hundred Fifty Thousand ($150,000.00) (the “Contract Sum”). The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Coordination of the performance of the Services with City is a critical component of the Services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending those meetings.

2.2 Method of Compensation.

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

2.3 Reimbursable Expenses.

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

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

2.5 Invoices.

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

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

2.6 Waiver.

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

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 Schedule of Performance.

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

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement may be extended because of any delays due to 196
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unforeseeable causes beyond the control and without the fault or negligence of Consultant. Such unforeseeable consequences include, but are not restricted to, acts of God or public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified, subject to the provisions of Section 1.8. The Contract Officer’s determination (or the City Council’s determination, in the event the period of enforced delay exceeds the period specified in Section

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

3.4 Term.

The Term of this Agreement shall be from the Effective Date through December 31, 2026, with an option of two (2) one year extension, unless sooner terminated as provided in Article 6 of this Agreement or extended as provided in Sections 1.8 and 3.3 of this Agreement. Maximum term and any subsequent amendment or modification shall not exceed five (5) years.

ARTICLE 4. INSURANCE AND INDEMNIFICATION

4.1 Minimum Scope and Limits of Insurance.

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

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

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

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

4.2 Acceptability of Insurers.

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

4.3 Additional Insured.

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

4.4 Primary and Non-Contributing.

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

4.5 Consultant’s Waiver of Subrogation.

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

4.6 Deductibles and Self-Insured Retentions.

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

4.7 Cancellations or Modifications to Coverage.

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

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

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

4.9 Evidence of Insurance.

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

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

4.10 Indemnity Requirements not Limiting.

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

4.11 Sub-contractor Insurance Requirements.

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

4.12 Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnification of City.
1) To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising 199
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from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.

To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, defend, hold harmless and indemnify the Indemnitees, from and against any and all Liabilities, whether actual, alleged or threatened, to the extent arising out of, pertaining to, or relating to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, and/or its officers, agents, servants, employees, subcontractors, contractors or their officers, agents, servants or employees (and/or any entity or individual for whom Consultant shall bear legal liability) in the performance of professional services under this Agreement. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs, actually incurred in connection with such defense.

If Consultant is a “design professional”, as defined in California Civil Code Section 2782.8, then, to the extent any of the Services constitute “design professional services”, as that term in used in California Civil Code Section 2782.8, Consultant’s defense and indemnity obligations for Liabilities arising out of Consultant’s negligent performance of design professional services shall be limited to reimbursement of the City and otherwise as set forth in that Section 2) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws. City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2. 3) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Article from each and every sub-contractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement.

If Consultant fails to obtain such indemnity obligations, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s sub-contractor, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant’s sub-contractor shall bear the legal liability thereof) in the performance of this Agreement to the extent required by subparagraph A.1, above.
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B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Article, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

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

D. Survival of Terms. Consultant’s indemnifications and obligations under this Article shall survive the expiration or termination of this Agreement.

ARTICLE 5. RECORDS, REPORTS, AND RELEASE OF INFORMATION

5.1 Service Records.

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

5.2 Reports.

Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of Services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein, Consultant shall 201
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promptly notify the Contract Officer of that fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

5.3 Ownership of Documents.

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

5.4 Confidentiality and Release of Information.

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

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

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

D. Consultant shall promptly notify City should Consultant, its officers, employees, agents or sub-contractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any Party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with 202
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City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite the response.

ARTICLE 6. ENFORCEMENT OF AGREEMENT AND TERMINATION

6.1 California Law.

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

6.2 Disputes; Default.

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

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

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

6.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement): (i) any payment amount of which may be in dispute hereunder or which is necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, (ii) all amounts retained pursuant to the provisions of Section 4.8, (iii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement, and (iv) all payments due or that become due to Consultant during the period that Consultant or any of its sub-contractors fail to maintain any required insurance in full force and effect, until notice is 203
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received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City, as provided in Section 4.9, above. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

6.4 Waiver.

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

Acceptance by City of any Services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

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

6.5 Rights and Remedies are Cumulative.

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

6.6 Legal Action.

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

6.7 Termination Prior to Expiration of Term.

This Article 6 shall govern any termination of this Agreement except as specifically provided in Section 6.2 for termination for default of Consultant. City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of Consultant, the period of notice may be a shorter time as may be determined by the Contract Officer. In addition, Consultant reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of City, the period of notice may be a shorter time as Consultant may determine. Upon receipt of any notice of 204
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termination, Consultant shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Officer. Except where Consultant has initiated termination, Consultant shall be entitled to compensation for all Services rendered prior to the effective date of the notice of termination and for any Services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 6.3. In the event Consultant has initiated termination, Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 6.2.

6.8 Attorneys’ Fees.

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

ARTICLE 7. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

7.1 Non-liability of City Officers and Employees.

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

7.2 Conflict of Interest.

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

No officer or employee of City shall have any direct or indirect financial interest in this Agreement within the scope of Government Code section 1090, nor shall any such officer or employee make, participate in making, or use his or her official position to influence, any City decision relating to the Agreement which has a material financial effect on his or her financial interests or the financial interests of any corporation, partnership or association in which he or she 205
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is, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given, and will not pay or give any third party any money or other consideration for obtaining this Agreement.

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

7.3 Covenant Against Discrimination.

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

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

7.4 Unauthorized Aliens.

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

ARTICLE 8. MISCELLANEOUS PROVISIONS

8.1 Notices.

Any notice, demand, request, document, consent, approval, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on confirmed delivery by courier service or overnight delivery service during Consultant’s and City’s regular business hours; or (b) three (3) Business Days after deposit in the United States mail, by certified or registered mail, and addressed to the Party to be notified as set forth below:
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If to City Attn: Shah Nawaz
Deputy Director of Water/Wastewater
City of Banning
99 East Ramsey Street
Banning, California 92220
Email: [email protected]
With a courtesy copy to: John Pinkney, City Attorney
Slovak Baron Empey Murphy & Pinkney LLP
74774 CA-111
Indian Wells, CA 92210
Email: [email protected]
If to Consultant: Attn: Matthew Huang, PE
Associate Vice President
Carollo Engineers, Inc.
3400 Central Acenue, Ste 205
Riverside, California 92506
Email: [email protected]

8.2 Interpretation.

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

8.3 Counterparts.

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

8.4 Integration; Amendment.

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

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

8.6 Mutual Cooperation.

A. City’s Cooperation. City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available for Consultant’s proper performance of the Services required under this Agreement.

B. Consultant’s Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance of Services rendered under this Agreement, Consultant shall render any reasonable assistance that City requires.

8.7 No Third Party Beneficiaries Intended.

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

8.8 Final Payment Acceptance Constitutes Release.

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

8.9 Non-Appropriation of Funds.

Payments to be made to Consultant by City for Services performed within the current fiscal year which are within the current fiscal budget and within an available, unexhausted fund. In the event that City does not appropriate sufficient funds for payment of Consultant’s Services beyond the current fiscal year, this Agreement shall cover payment for Consultant’s Services only to the conclusion of the last fiscal year in which City appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year. 208
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8.10 Headings.

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

8.11 Word Usage.

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

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

8.13 Corporate Authority.

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

8.14 Electronic Signatures.

Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURES ON FOLLOWING PAGE]
209
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Art Vela, Date
Intermin City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Date
Acting Administrative City Clerk
Address:

APPROVED AS TO FORM:

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

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
210
Exhibit “A”-1
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following Services in connection with providing OnCall Hydraulic Feasibility Studies prepared in connection therewith:

II. As part of the Services, Consultant will prepare and deliver the following tangible work products and services to City:
211
Exhibit “A”
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212
Exhibit “A”
-3
213
Exhibit “A”
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214
Exhibit “A”
-5
215
Exhibit “A”
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216
Exhibit “A”
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217
Exhibit “A”
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218
Exhibit “A”
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219
Exhibit “A”-10
III. In addition to the requirements of Parts I and II of this Scope of Services, during the performance of the Services, Consultant will keep City appraised through periodic status reports regarding the performance of the Services under this Agreement as set forth below and in Section 5.2, by the following means:
a. In-person meetings and/or teleconferences.
b. Email updates/questions to applicant team and City while reviews are underway.
c. Conference calls.

IV. All work product is subject to review and acceptance by City. If the City determines that any work product is unacceptable, for any reason, it must be revised by Consultant without additional charge to City until found satisfactory and accepted by City. 220
Exhibit “B”-1
11303-0008\2344655v8.doc
EXHIBIT “B”

SPECIAL REQUIREMENTS

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

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

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

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

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

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

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

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.
221
Exhibit “B”-2
11303-0008\2344655v8.doc

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

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

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

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

Consultant shall comply with and be bound by Labor Code Section 1810. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
Date______________ Signature___________________________ 222
Exhibit “B”-3
11303-0008\2344655v8.doc

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

13. Consultant shall advise the City in writing as to what, if any, additional reports or data is required in order for Consultant to perform the Services. The City will review and promptly advise Consultant whether or not such additional reports or data will be provided .

14. Consultant has no control over the cost of labor, materials, equipment or services furnished by others, over water quality and/or quantity, or over the way City’s facilities and/or associated systems are operated and/or maintained. Hydraulic modeling results, data projections and estimates are Consultant’s professional opinion based on Consultant’s experience and judgment. Consultant does not guarantee that actual water distribution system operational characteristics will not vary from the hydraulic modeling results, data projections and estimates prepared by Consultant. Consultant is not liable to, and does not indemnify City or any third party relative to inconsistencies between Consultant’s hydraulic modeling results, data projections and estimates and actual water distribution system operational characteristics realized by City or any third party in the future, except to the extent that such inconsistencies are determined to be caused by the negligent acts, errors or omissions on the part of Consultant.

15. No person or entity not a signatory to this Agreement shall be entitled to rely on Consultant's performance of its services hereunder, and no right to assert a claim against Consultant by assignment of indemnity rights or otherwise shall accrue to a third party as a result of this Agreement or the performance of Consultant's services hereunder. 223
Exhibit “C”-1
11303-0008\2344655v8.doc
EXHIBIT “C”

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

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

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

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

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

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

D. Line items for all approved sub-contractor labor, supplies, equipment, materials, and travel properly charged to the Services. 224
Exhibit “C-1”-1
11303-0008\2344655v8.doc
EXHIBIT “C-1”
CONSULTANT’S BILLING RATE AND TASK SCHEDULE
225
Exhibit “C
-1”-2
11303-0008\2344655v8.doc
226
Exhibit “D”- 1
11303-0008\2344655v8.doc
EXHIBIT “D”

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

II. The Contract Officer may approve extensions for performance of the Services in accordance with Sections 1.8 and 3.3.
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Exhibit “D-1”- 1
11303-0008\2344655v8.doc
III.EXHIBIT “D-1”

PROPOSED PROJECT SCHEDULE
Refer To Exhibet A
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CITY OF BANNING / RFP 25-110 ON-CALL HYDRAULIC FEASIBILITY STUDIES CAROLLO / PROPOSAL / SEPTEMBER 2025 27
B:\Pursuits\Client20(OCO)\Banning\On-CallHydraulicModelingServices\Prop0925\Indd\V.C.-PriceProposal Engineers/Scientists
Engineering Intern $145
Staff Professional $195
Professional $225
Lead Professional $275
Senior Professional $295
Supervising Professional $325
Principal Professional $345
Technicians
Staff Analyst $175
Analyst $220
Senior Analyst $250
Supervising Analyst $285
Support Staff
Administrative Support $157
Carollo affirms that, if any travel costs are charged, all charges invoiced to the City for travel, lodging, and
subsistence will not exceed current IRS rates.

This fee schedule is subject to annual revisions due to labor adjustments.

Organization Chart Role Rate Category Rate Percent
Principal-In-Charge Principal Professional $345 2%
Technical Advisors Supervising Professional $325 5%
Project Manager Supervising Professional $325 10%
Task Lead Senior Professional $295 20%
Distribution/Collection Modeling Lead Professional $275 15% Distribution/Collection Modeling Professional $225 34%
Demand/Flow Projections Lead Professional $275 5%
GIS Analyst $220 1%
GIS Staff Analyst $175 3%
Administrative Support Administrative Support $157 5%
100%
Note:

The percentages may slightly vary depending on the complexity of the project.

This fee schedule is subject to annual revisions due to labor adjustments after December 31, 2026.

Price Proposal
SECTION V.C.
2025-2026 Rates
Hourly Rate Hourly Rate
Project Equipment Communication
Expenses (PECE) Per DL Hour $16.00
Other Direct Expenses
Travel and Subsistence Cost + 10%
Mileage at IRS Reimbursement Rate $0.70 per mile
Subconsultant Cost + 10%
Other Direct Cost Cost + 10%
Expert Witness Hourly Rate x 2.0
Typical Hydraulic Evaluation Project for Developer Projects 229

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: January 13, 2026
SUBJECT: Consideration of Resolution 2026-02, Approving a Western Systems Power Pool Confirmation Letter Agreement with the City of Vernon for the Purchase of Thirteen Megawatts of Local / Flexible Resource Adequacy Capacity for Calendar Years 2027 through 2029 at a Cost of $8.25 per Kilowatt-month, or $1,287,000 Per Year.

RECOMMENDATION:

Approve Resolution 2026-02
BACKGROUND:

After the 2000-2001 California energy crisis, the California Independent System Operator (“CAISO”) developed market modifications to ensure that all Load Serving Entities (“LSE”), including the City of Banning's Electric Utility ("Utility" or "BEU"), have acquired sufficient energy capacity (“Resource Adequacy” or “RA”) to serve their peak demand. The CAISO determined that each LSE must maintain capacity reserves of at least 15% above its projected peak demand and the CAISO implemented policy changes to ensure that these capacity reserves are procured by each LSE and are available to meet the 115% of projected demand. Additionally, the CAISO requires that a specified amount of each LSE’s total RA be from local generating resources ("Local RA"), as defined by the CAISO. For BEU, a generating resource must be located in the greater Los Angeles Basin to qualify as Local RA. Lastly, the CAISO requires that a specified amount of each LSE’s total RA be fast ramping ("Flexible RA"), as defined by the CAISO. Fast ramping means that the generating facility can be turned on very quickly and can begin producing electricity on very short notice.

In order to meet both of the CAISO's Local RA and Flexible RA requirements, in December of 2020 the Utility entered into a five-year agreement with NRG Power Marketing LLC to purchase thirteen (13) megawatts of RA that qualified as both Local RA and Flexible RA. The cost of this RA was $7.50 per kilowatt-month, and the agreement was effective from January 1, 2022 to December 31, 2026. This fiveyear agreement turned out to be very fortuitous for the Utility, as the RA markets went through a period of extreme upward volatility from 2022 to 2024.

JUSTIFICATION:

Although BEU's current RA agreement doesn't expire until December 31, 2026, the Utility began looking for a successor agreement early because there is a scarcity of generating resources that qualify as both Local RA and Flexible RA.

On September 30, 2025, the Utility sent out a solicitation to over forty (40) participants in the RA markets (a combination of energy companies and utilities who own their own generating resources, as well as RA 230
brokers) requesting for offers to sell thirteen (13) megawatts of Local RA that also qualified as Flexible RA under a three to five year agreement. The Utility received two offers in response to our solicitation, with the City of Vernon responding with the lowest and most responsible bid of a three-year offer at a price of $8.25 per kilowatt-month.

Given the scarcity of Local RA / Flexible RA and the competitive price offered by the City of Vernon, the Utility desires to move forward with the three-year agreement with the City of Vernon. The $0.75 increase in the price compared to our current five-year deal will slightly increase our capacity expense starting in calendar year 2027. However, the Utility believes that this is a reasonable increase given the inflation rates that have occurred since the current RA agreement was entered into five years ago.

FISCAL IMPACT:

The cost of this transaction is $8.25 per kilowatt-month, for an annual cost of $1,287,000 over the threeyear contract period. Because the cost of the current five-year agreement is $7.50 per kilowatt-month, or $1,170,000 per year, this new replacement agreement will result in an annual increased cost of $117,000 starting in calendar year 2027.

The purchase of RA is an ongoing operating expense, and funds have been allocated in BEU's Capacity Expenditure Budget line item (Fund 670-7010-473.27-50).

ALTERNATIVES:

Do not approve Resolution 2026-02 and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. 2026-02 Resolution Local-Flexible Resource Adequacy.docx

2. Resolution 2026-02 Exhibit A.pdf
231
Resolution 2026-02

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RESOLUTION 2026-02

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

APPROVING THE THREE-YEAR WESTERN SYSTEM POWER POOL CONFIRMATION

LETTER AGREEMENT WITH THE CITY OF VERNON FOR THE PURCHASE OF THIRTEEN

MEGAWATTS OF LOCAL / FLEXIBLE RESOURCE ADEQUACY CAPACITY FOR CALENDAR YEARS 2027 THROUGH 2029 AT A COST OF $8.25 PER KILOWATT-MONTH, OR $1,287,000 PER YEAR
WHEREAS, the City of Banning owns and operates its own Municipal Electric Utility (“Utility”); and
WHEREAS, the Utility is a Load Serving Entity (“LSE”) with the California Independent System Operator (“CAISO”); and
WHEREAS, the CAISO has implemented Resource Adequacy (“RA”) requirements of 115% requiring a minimum of 15% excess capacity reserves for all LSEs; and WHEREAS, the CAISO requires that a specified amount of each participant’s total capacity be from local generating resources (“Local RA”), as defined by the CAISO; and WHEREAS, the CAISO requires that a specified amount of each participant’s total capacity be fast ramping (“Flexible RA”), as defined by the CAISO; and WHEREAS, the City solicited bids from qualified energy marketers for thirteen MWs of RA that qualifies as both Local RA and Flexible RA capacity for calendar years 2027 through 2029 and received two qualified responses. The City of Vernon had the lowest responsive bid at $8.25 per kilowatt-month, or $1,287,000 annually.

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

SECTION 1. The City Council approves Resolution 2026-02, approving the three-year Western System Power Pool Confirmation Letter Agreement (“WSPP Agreement”) in the amount of $8.25 per kilowatt-month, or $1,287,000 per year, with the City of Vernon for the purchase of thirteen megawatts of Local / Flexible resource adequacy capacity for calendar years 2027 through 2029, attached herewith as Exhibit “A”.

SECTION 2. The City Council authorizes the Interim City Manager to make non-substantive changes to the WSPP Agreement and to execute the WSPP Agreement with the City of Vernon on behalf of the City Council.

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

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 232
Resolution 2026-02

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PASSED, APPROVED AND ADOPTED this 13th day of January 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
233
Resolution 2026-02

Page 3 of 4 ends

CERTIFICATION:

I, Sandra Calderon, Acting Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-02, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of January 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Deputy City Clerk
City of Banning, California
234
Resolution 2026-02

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EXHIBIT A
WSPP Confirmation Letter Agreement
235
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WSPP RESOURCE ADEQUACY CONFIRMATION
This confirmation letter (“Confirmation”) confirms the Transaction agreed to on 01/13/2026 (the “Confirmation Date”), between City of Vernon (“Vernon” or “Seller”) and City of Banning (“Banning” or “Purchaser”), by which Seller agrees to sell and deliver, and Purchaser agrees to purchase and receive, the Product, and is governed by the Western Systems Power Pool Agreement effective as of October 23, 2024 along with any annexes and amendments thereto (collectively, the “WSPP Agreement”). Any conflicts between the WSPP Agreement and the Confirmation shall be resolved in the following order of control: first, the Confirmation; and second, the WSPP Agreement. Capitalized terms not otherwise defined in this Confirmation or the WSPP Agreement are defined in the Tariff.

ARTICLE 1

TRANSACTION TERMS
Purchaser: City of Banning
Seller: City of Vernon
Product, Delivery Period, Contract Quantity, Contract Price and other specifics of the Product are in Appendix B. Appendices A, B and C are incorporated into this Confirmation ARTICLE 2

DELIVERY OBLIGATIONS AND ADJUSTMENTS

2.1 Sale and Delivery of Product
(a) For each Showing Month of the Delivery Period, Seller will sell and deliver to Purchaser, and Purchaser will purchase and receive from Seller, the Contract Quantity of the Product from the Shown Unit(s).
(b) Seller will deliver the Contract Quantity by submitting to CAISO in its Supply Plan the Shown Unit and the characteristics of the Shown Unit and Product for Purchaser, as further specified in Appendix B, all in compliance with this Confirmation.
(c) If applicable, Seller will transfer appropriate Import Capability as specified in Appendix B to the Purchaser to correspond with the agreed to Contract Quantity and Delivery Period via the CIRA Tool no later than two Business Days before the Notification Deadline for the Showing Month.
(d) Seller will cause all Supply Plans to meet and be filed in conformance with the requirements of the Tariff. Seller will submit, or cause the Unit’s SC to submit, on a timely basis with respect to each applicable Showing Month, Supply Plans in accordance with the Tariff to identify and confirm the Product delivered to Purchaser for each Showing Month of the Delivery Period. The total amount of Product identified and confirmed for each day of such Showing Month will equal 236
A-2
the Contract Quantity, less any excused deductions to the Contract Quantity, in the case of Flexible RA Capacity for excused reductions in Unit EFC. (e) Seller may sell and deliver from a Shown Unit that meets requirements set forth in Appendix B. Seller will identify the Shown Unit(s) and Contract Quantity by providing Purchaser with the specific Unit information contemplated in Appendix B no later than the Notification Deadline for the relevant Showing Month. (f) If CAISO rejects either the Supply Plan or the Resource Adequacy Plan with respect to any part of the Contract Quantity for the Shown Unit in any Showing Month, the Parties will confer, make such corrections as are necessary for acceptance, and resubmit the corrected Supply Plan or Resource Adequacy Plan for validation before the applicable deadline for the Showing Month. (g) The Product is delivered and received when the CIRA Tool shows the Supply Plan accepted for the Product from the Shown Unit by CAISO or Seller complies with Purchaser’s instruction to withhold all or part of the Contract Quantity from Seller’s Supply Plan for any Showing Month during the Delivery Period. Seller has failed to deliver the Product if (i) Purchaser has elected to submit the Product from the Shown Unit in its Resource Adequacy Plan and such submission is accepted by the CAISO but the Supply Plan and Resource Adequacy Plan are not matched in the CIRA Tool and are rejected by CAISO notwithstanding performance of Section

2.1(f) or (ii) Seller fails to submit the volume of Contract Quantity for any Showing Month in such amount as instructed by Purchaser for the applicable Showing Month. Seller will not have failed to deliver the Contract Quantity if Purchaser fails or chooses not to submit the Shown Unit and the Product in its Resource Adequacy Plan with the CAISO.
(h) Excused Reductions in Unit EFC: Not applicable.

2.2 Purchaser’s Remedies for Seller’s Failure to Deliver Contract Quantity (a) If Seller fails to deliver any part of the Contract Quantity as required herein for any Showing Month, Seller is liable for damages pursuant to Section 21.3 of the WSPP Agreement, without reference to the word “hourly” therein. (b) Seller agrees to indemnify, defend and hold harmless Purchaser from any penalties, fines or costs, including Environmental Costs, assessed against Purchaser by the CAISO or other Governmental Body resulting from Seller’s failure to deliver the Product. The Parties will use commercially reasonable efforts to minimize such penalties, fines or costs; provided, that in no event will Purchaser be required to use or change its utilization of its owned or controlled assets or market positions to minimize these penalties, fines or costs. If Seller fails to pay the foregoing penalties, fines or costs, or fails to reimburse Purchaser for those penalties, fines or costs, then, without prejudice to its other rights and remedies, Purchaser may setoff and 237
A-3
recoup those penalties, fines or costs against any future amounts it may owe to Seller under this Confirmation or the WSPP Agreement.

2.3 Purchaser’s Re-Sale of Product
(a) Purchaser may re-sell all or part of the Product; provided that any such re-sale must not increase Seller’s obligations hereunder other than as set forth in this Section

2.3(a). For any such a resale, Resource Adequacy Plan of Purchaser as used herein will refer to the Resource Adequacy Plan of Subsequent Purchaser. Seller will, or will cause the Unit’s SC, to follow Purchaser’s instructions with respect to providing such resold Product to Subsequent Purchasers, to the extent such instructions are consistent with Seller’s obligations under this Confirmation. Seller will, and will cause the Unit’s SC, to take all commercially reasonable actions and execute all documents or instruments reasonably necessary to allow such Subsequent Purchasers to use such resold Product in a manner consistent with Purchaser’s rights under this Confirmation. If Purchaser incurs any liability to a Subsequent Purchaser due to the failure of Seller or the Unit’s SC to comply with this Confirmation, Seller will be liable to Purchaser for the same amounts Seller would have owed Purchaser under this Confirmation if Purchaser had not resold the Product.
(b) Purchaser will notify Seller in writing of any resale of Product and the Subsequent Purchaser no later than ten Business Days before the Notification Deadline for the Showing Month.

ARTICLE 3

PAYMENTS

3.1 Payment
Purchaser must pay for the Product as provided in Article 9 of the WSPP Agreement.

Purchaser shall make a Monthly RA Capacity Payment to Seller for each Unit, prior to the applicable Showing Month. Each Unit’s Monthly RA Capacity Payment is equal to the sum of the product for each day during such Showing Month of (a) the applicable Contract Price for such day, prorated to reflect the number of days during such Showing Month, (b) the Designated Quantity delivered for such day, and (c) 1,000 kw/MW. The final sum of this Monthly RA Capacity Payment calculation will be rounded to the nearest penny (i.e., two decimal places).

3.2 Allocation of Other Payments and Costs
(a) Seller will receive any revenues from, and must pay all costs charged by, CAISO or any other third party with respect to the Unit for (i) start-up, shutdown, and minimum load costs, (ii) capacity for ancillary services, (iii) energy sales, (iv) flexible ramping product, or (v) black start or reactive power services. Purchaser must promptly report receipt of any such revenues to Seller. Purchaser must pay 238
A-4
to Seller any such amounts described in this Section 3.2(a) received by Purchaser or a Subsequent Purchaser. Without prejudice to its other rights and remedies, Seller may setoff and recoup any such amounts that are not paid to it against any amounts owed to Purchaser under the WSPP Agreement.
(b) Purchaser is to receive and retain all revenues associated with the Contract Quantity of Product during the Delivery Period, including any capacity and availability revenues from the Capacity Procurement Mechanism, or its successor, RUC Availability Payments, or its successor, but excluding payments described in Section 3.2(a)(i)-(v) or 3.2(d). Seller must promptly report receipt of any such revenues to Purchaser. Seller must pay to Purchaser any such amounts received by Seller, or a Unit’s SC, owner, or operator. Without prejudice to its other rights, Purchaser may set off and recoup any such amounts that are not paid to it against amounts owed to Seller under the WSPP Agreement.
(c) If CAISO designates any part of the Contract Quantity as Capacity Procurement Mechanism Capacity, then Seller will, or will cause the Unit’s SC to, within one Business Day of the time Seller receives notification from CAISO, notify Purchaser and not accept any such designation by CAISO unless and until Purchaser has agreed to accept such designation.
(d) Any Availability Incentive Payments or Non-Availability Charges are for Seller to receive and pay.

ARTICLE 4

OTHER PURCHASER AND SELLER COVENANTS

4.1 CAISO Requirements
Seller must schedule or cause the Unit’s SC to schedule or make available to CAISO the Contract Quantity of the Product during the Delivery Period, in compliance with the Tariff, and perform all, or cause the Unit’s SC, owner, or operator to perform all, obligations under applicable law and the Tariff relating to the Product. Purchaser is not liable for, and Seller will indemnify and hold Purchaser harmless from, the failure of Seller or the Unit’s SC, owner, or operator to comply with the Tariff, and for any penalties, fines or costs imposed on Seller or the Unit’s SC, owner, or operator for noncompliance.

4.2 Seller’s and Purchaser’s Duties to Take Actions to Allow Product Utilization Throughout the Delivery Period, Purchaser and Seller will take all commercially reasonable actions and execute all documents or instruments reasonably necessary to ensure Purchaser’s rights to the Contract Quantity for the sole benefit of Purchaser or any Subsequent Purchaser. If necessary, the Parties further agree to negotiate in good faith to amend this Confirmation to conform this Transaction to subsequent clarifications, revisions, or decisions rendered by CAISO or an applicable Governmental Body to maintain the benefits of the Transaction.
239
A-5

4.3 Seller’s Representations and Warranties
Seller represents and warrants to Purchaser throughout the Delivery Period that:
(a) no part of the Contract Quantity during the Delivery Period has been committed by Seller to any third party to satisfy Compliance Obligations or analogous obligations in any CAISO or non-CAISO markets;
(b) the Unit qualifies under the Tariff for the Product, and the Unit and Seller are capable of delivering the Product;
(c) the aggregation of all amounts of Capacity Attributes that Seller has sold, assigned, or transferred for the Unit during the Delivery Period does not exceed the Unit NQC and, if applicable, the Unit EFC, for that Unit;

ARTICLE 5
ADDITIONAL WSPP AGREEMENT AMENDMENTS; GENERAL PROVISIONS

5.1 Termination Payment
For this Transaction, the following is inserted as a penultimate paragraph in Section 22.2(b) of the WSPP Agreement:
“If Purchaser is the Non-Defaulting Party and Purchaser reasonably expects to incur or be liable for any penalties, fines or costs from CAISO, or any Governmental Body, because Purchaser or a Subsequent Purchaser is not able to include the applicable Contract Quantity in a Compliance Showing due to Seller’s Event of Default, then Purchaser may, in good faith, estimate the amount of those penalties, fines or costs and include the estimate in its determination of the Termination Payment, subject to accounting to Seller when those penalties, fines or costs are finally ascertained. If this accounting establishes that Purchaser’s estimate exceeds the actual amount of penalties, fines or costs, Purchaser must promptly remit to Seller the excess amount with interest in accordance with Section 9.3 of the WSPP Agreement. The rights and obligations with respect to determining and paying any Termination Payment, and any dispute resolution provisions with respect thereto, survive the termination of this Transaction and continue until after those penalties, fines or costs are finally ascertained.”

5.2 Payment Netting.

Section 28.1 of the WSPP Agreement shall be applicable and the Parties shall net monthly payments in accordance with Exhibit A of the WSPP.
240
A-6

5.3 Confidentiality
Notwithstanding Section 30.1 of the WSPP Agreement, (i) Purchaser may disclose information in order to support its Compliance Showings or otherwise show it has met its Compliance Obligations; (ii) Seller may disclose to a Unit’s SC or as necessary for Supply Plans; and (iii) Purchaser may disclose information to any Subsequent Purchaser. Each Party recognizes that this Confirmation is subject to the requirements of the California Public Records Act (Government Code Section 6250 et seq.). In order to designate information as confidential, the disclosing party must clearly stamp and identify the specific portion of the material designated with the word “Confidential.” The Parties agree not to over-designate material as confidential. Over-designation would include stamping whole agreements, entire pages or series of pages as Confidential that clearly contain information that is not confidential.

Upon request or demand of any third person or entity not a Party hereto to City of Vernon pursuant to the California Public Records Act for production, inspection and/or copying of Confidential Information (“Requested Confidential Information”), City of Vernon will as soon as practical notify Purchaser in writing via email that such request has been made. Purchaser will be solely responsible for taking at its sole expense whatever legal steps are necessary to prevent release of the Requested Confidential Information to the third party by City of Vernon. If Purchaser takes no such action after receiving the foregoing notice from City of Vernon, City of Vernon shall, at its discretion, be permitted to comply with the third party’s request or demand and is not required to defend against it. If Purchaser does take or attempt to take such action, City of Vernon shall provide timely and reasonable cooperation to Purchaser, if requested by Purchaser, and Purchaser agrees to indemnify and hold harmless City of Vernon, its officers, employees and agents (“City of Vernon Indemnified Parties”), from any claims, liability, award of attorneys’ fees, or damages, and to defend any action, claim or lawsuit brought against any of City of Vernon Indemnified Parties for City of Vernon’s refusal to disclose any Requested Confidential Information.

5.4 Dodd-Frank Act
The Parties intend this Transaction to be a “customary commercial arrangement” as described in Section II.A.1 of Commodity Futures Trading Commission, Proposed Guidance, Certain Natural Gas and Electric Power Contracts, 81 Fed. Reg. 20583 at 20586 (Apr. 8, 2016) and a “Forward Capacity Transaction” within the meaning of Commodity Futures Trading Commission, Final Order in Response to a Petition From Certain Independent System Operators and Regional Transmission Organizations To Exempt Specified Transactions Authorized by a Tariff or Protocol Approved by the Federal Energy Regulatory Commission, 78 Fed. Reg. 19,880 (Apr. 2, 2013).

5.5 Governing Law
Notwithstanding any other provision of the WSPP Agreement, this Confirmation and the rights and duties of the Parties hereunder shall be governed by and construed, enforced and 241
A-7
performed in accordance with the laws of the State of California, without regard to principles of conflicts of law.

5.5 Credit Requirements
Notwithstanding any provision in the WSPP Agreement to the contrary, including Section 27, neither Party shall be required to post collateral or other security for this Transaction.

5.6 Counterparts
This Confirmation may be signed in any number of counterparts with the same effect as if the signatures to the counterparts were upon a single instrument. The Parties may rely on electronic, facsimile or scanned signatures as originals under this Confirmation. Delivery of an executed signature page of this Confirmation by facsimile or electronic mail transmission (including PDF) shall be the same as delivery of a manually executed signature page.

5.7 Entire Agreement; No Oral Agreements or Modifications This Confirmation sets forth the terms of the Transaction into which the Parties have entered and shall constitute the entire agreement between the Parties relating to the contemplated purchase and sale of the Product. Notwithstanding any other provision of the Agreement, this Transaction may be confirmed only through a Documentary Writing executed by both Parties, and no amendment or modification to this Transaction shall be enforceable except through a Documentary Writing executed by both Parties.

AGREED AS OF THE EFFECTIVE DATE:
01/13/2026 01/13/2026

CITY OF VERNON
By:

Name: Todd Dusenberry
Title: VPU General Manager

CITY OF BANNING
By:

Name: Art Vela
Title: Interim City Manager
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A-8

APPENDIX A

DEFINED TERMS
“CAISO” means the California ISO.
“Capacity Attributes” means attributes of the Unit that may be counted toward Compliance Obligations, including: flexibility, dispatchability, physical location or point of electrical interconnection of the Unit; Unit ability to generate at a given capacity level, provide ancillary services, or ramp up or down at a given rate; any current or future defined characteristics, certificates, tags, credits, or accounting constructs of the Unit, howsoever entitled, identified from time to time by the CAISO or a Governmental Body having jurisdiction over Compliance Obligations.
“CIRA Tool” means the CAISO Customer Interface for Resource Adequacy. “Compliance Obligations” means, as applicable, RAR, Local RAR and FCR. “Compliance Showings” means the applicable LSE’s compliance with the resource adequacy requirements of the CAISO pursuant to the Tariff for an applicable Showing Month. “Environmental Costs” means (i) costs incurred in connection with acquiring and maintaining all environmental permits and licenses for the Product, (ii) the Product’s compliance with all applicable environmental laws, rules, and regulations, including capital costs for pollution mitigation or installation of emissions control equipment required to permit or license the Product, (iii) all operating and maintenance costs for operation of pollution mitigation or control equipment, (iv) costs of permit maintenance fees and emission fees as applicable, (v) the costs of all emission reductions that have been authorized by a local air pollution control district or emissions trading credits or units pursuant to the California Health & Safety Code, market based incentive programs such as the South Coast Air Quality Management District’s Regional Clean Air Incentives Market, authorizations to emit sulfur dioxide and oxides of nitrogen by the Environmental Protection Agency, and any costs related to greenhouse gas emissions required by any applicable environmental laws, rules, regulations, or permits to operate, and (vi) costs associated with the disposal, clean-up, decontamination or remediation, on or off site, of hazardous substances. “FCR” means the Flexible Capacity requirements established for LSEs by the CAISO pursuant to the Tariff, or other Governmental Body having jurisdiction over Compliance Obligations and includes any non-binding advisory showing which an LSE is required to make with respect to flexible capacity.
“FCR Attributes” means, with respect to a Unit, any and all resource adequacy attributes of the Unit, as may be identified from time to time by the CAISO or other Governmental Body having jurisdiction over Compliance Obligations, that can be counted toward an LSE’s FCR. “Governmental Body” means any federal, state, local, municipal or other government; any governmental, regulatory or administrative agency, commission or other authority lawfully 243
A-9
exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; and any court or governmental tribunal. “Local RAR” means the local resource adequacy requirements established for LSEs by CAISO pursuant to the Tariff, or by any other Governmental Body having jurisdiction over Compliance Obligations.
“LSE” means “Load Serving Entity” as such term is used in Section 40.9 of the Tariff. “Import Capability” specifies the amount of resource adequacy capacity, measured in MW, that Load-Serving Entities collectively can procure from imports at that Intertie to meet their resource adequacy requirements.
“MW” means megawatt.
“Notification Deadline” is twenty (20) Business Days before the relevant deadlines for the corresponding Compliance Showings applicable to the relevant Showing Month. “Product” means RAR, Local RAR and FCR, for the Delivery Period, Unit, Contract Quantity, Contract Price and other specifications contained in Appendix B. “Prorated Percentage of Unit Factor” means the percentage, as specified in Appendix B, of the Unit NQC as of the Effective Date that is dedicated to Purchaser under this Transaction. “Prorated Percentage of Unit Flexible Factor” means the percentage, as specified in Appendix B, of the Unit EFC as of the Effective Date that is dedicated to Purchaser under this Transaction. “RAR” means the resource adequacy requirements established for LSEs by CAISO pursuant to the Tariff or by any other Governmental Body having jurisdiction over Compliance Obligations. “SC” means Scheduling Coordinator as defined in the Tariff. “Showing Month” means the calendar month of the Delivery Period that is the subject of the related Compliance Showing.
“Shown Unit” means a Unit specified by Seller in a Supply Plan, but not necessarily identified by Seller to Purchaser on the Effective Date.
“Subsequent Purchaser” means the purchaser of Product from Purchaser in a re-sale of Product by Purchaser.
“Tariff” means the CAISO Tariff, including any current CAISO-published “Operating Procedures” and “Business Practice Manuals,” in each case as amended or supplemented from time to time.
244
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“Uncontrollable Forces” shall have the meaning set forth in the WSPP Agreement, except that notwithstanding Section 10 of the WSPP Agreement, a Party’s failure to perform shall not be excused as an Uncontrollable Force due to “drought” or a “failure to obtain the necessary authorizations and approvals from, any governmental agency or authority.” “Unit” means the generation unit described in Appendix B and any Shown Unit. A Unit may not be a nuclear or coal-fired generating facility.
“Unit EFC” means Unit Effective Capacity and is the lesser of that of the Unit as set by CAISO as of the Effective Date and that of the Unit on a subsequent date of determination. “Unit NQC” means Unit Net Qualifying Capacity and is the lesser of that of the Unit as set by CAISO as of the Effective Date and that of the Unit on a subsequent date of determination. 245
B-1

APPENDIX B

PRODUCT AND UNIT INFORMATION
Product:

RAR Local RAR Flexible Capacity
Additional Product Information (fill in all that apply):

CAISO Zone: South
CAISO Local Area (if applicable): LA Basin
Flexible Capacity Category (if applicable): 1
Delivery period: January 01, 2027 through December 31, 2029 Contract Quantity and Contract Price:

RAR, FCR and Local RAR, as applicable
Showing Month Contract Quantity
(MW)
FCR Attributes
(MWs)
Local RAR
Attributes
(MWs)
Contract Price
($/kW-mo)
JANUARY 13 13 13 $8.25
FEBRUARY 13 13 13 $8.25
MARCH 13 13 13 $8.25
APRIL 13 13 13 $8.25
MAY 13 13 13 $8.25
JUNE 13 13 13 $8.25
JULY 13 13 13 $8.25
AUGUST 13 13 13 $8.25
SEPTEMBER 13 13 13 $8.25
OCTOBER 13 13 13 $8.25
NOVEMBER 13 13 13 $8.25
DECEMBER 13 13 13 $8.25
Unit 1
Unit Specific Information
Resource Name Malburg Generating Station
Physical Location Vernon, CA
CAISO Resource ID VERNON_6_MALBRG
SCID of Resource VERN
Unit NQC: 139
Unit EFC: 105
Resource Type (e.g., gas, hydro, solar, etc.) Natural Gas Resource Category (1, 2, 3 or 4) 4
Resource Flex Category (1,2, or 3) 1
Path 26 (North or South) South
Local Capacity Area LA Basin
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C-1

APPENDIX C

NOTICE INFORMATION
Purchaser: City of Banning Seller: City of Vernon
All notice information for Purchaser will be as
set forth on the Cover Sheet to the Master
Agreement unless otherwise set forth below.

All notice information for Seller will be as set
forth on the Cover Sheet to the Master
Agreement unless otherwise set forth below.

All Notices:

Attn: Fred Lyn
Phone: 951-922-3265
Facsimile:

Duns: 099169823
Federal Tax ID Number: 95-6000674
All Notices:

Attn: Shawn Sharif
Phone: 323-826-3625
Facsimile: 323-826-3629
Duns: 060883022
Federal Tax ID Number: 95-6000808
Invoices:

Attn: Anna Hauldren, Riverside Public Utilities
Phone: 951-826-8506
Email: [email protected]
Invoices:

Attn: Settelments
Phone: 323-583-8811 Ext 275 or 227
Email: [email protected]
Scheduling:

Attn: Scheduling
Phone: 951-922-3265
Facsimile:

E-Mail: [email protected]
Scheduling:

Attn: Shawn Sharif
Phone: 323-826-3625
Facsimile:323-826-3629
Email: [email protected]

Wire Transfer:

Bank Name:

Bank ABA:

Account Name:

Account Number:

Wire Transfer:

Bank Name: East West Bank
Bank ABA: 322070381
Account name: Gas & Electric Account
Account Number: 80362791
Credit and Collections:

Attn: Fred Lyn
Phone: 951-922-3265
Facsimile:

E-Mail: [email protected]
Credit and Collections:

Attn: Richard Corbi
Phone: 323-583-8811 Ext 390
Facsimile: 323-826-3629
Email: [email protected]
Defaults:

Attn:

Additional notices of an Event of Default to:

Defaults:

Attn:

Additional notices of an Event of Default to:
247

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: January 13, 2026
SUBJECT: Consider Resolution 2026-05 to Quitclaim City Property to the Riverside County Flood Control and Water Conservation District and to accept property to be Quitclaimed by the Riverside County Flood Control and Water Conservation District along Pershing Channel (Highland Home Road) in the vicinity of Wilson Street
RECOMMENDATION:

Adopt Resolution 2026-05
BACKGROUND:

Recent development of the Atwell project has brought to light property and maintenance items that require some administrative cleanup. The actions tonight deal with transference of real property and maintenance and access rights between the City of Banning and the Riverside County Flood Control and Water Conservation District (“District”). The items are described in more detail below.

Tract 23446 Lot M
Final Map 23446 was recorded on May 6th, 1993 with a dedication of Lot M for Flood Control Channel Purposes to the City of Banning. This improvement was constructed to District standards as the West Pershing Channel, Line K, Stage 2 and has been maintained by the District since its acceptance January 31, 2003. It is standard practice that the District would be the fee owner of the parcel of land that the flood control channels is within that the District maintains.

The action requested tonight would transfer Lot M from the City of Banning to the District via a Quitclaim Deed. The document does include a reservation of an easement on the property to the City of Banning for access and maintenance of City easements and facilities separate from the mainline Pershing Channel.

Various Flood Control Parcels
The District maintained West Pershing Channel as a concrete trapezoidal channel north of Wilson Street along a partially improved Highland Home Road in parcels of land that are owned in fee by the District.

During the course of development of the Atwell Specific Plan, the previous trapezoidal channel was replaced with underground facilities including reinforced concrete pipe and reinforced concrete box. This Replacement facility was completed and accepted for operation and maintenance by the District on September 6, 2024. Per the terms of the Cooperative agreement between the City, District and the Tripoint Homes, the district will Quit Claim fee title to the City of Banning for Highland Home Road.

There are various parcels considered in this action, as shown in Attachment 6. The District is reserving a 248
non-exclusive easement within the right of way to be able to access and maintain their underground facilities, with clarification that the District will minimize their impact to the roadway, and to restore the roadway back to the same condition that existed prior to construction.

To complete this item, the County Board of Supervisors will agree to the quitclaim through their independent action. Resolution 2026-05 will authorize City staff to accept the property once action is completed by the County Board or Supervisors.

JUSTIFICATION:

These actions clean up land, easement, and maintenance rights between the City and the District, and follow general practices on facilities owned and operated by the District.

FISCAL IMPACT:

None
ALTERNATIVES:

Do not approve the resolution, and provide additional direction to staff BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Reso 2026-05 - Pershing Channel Quitclaims.docx

2. Reso 2026-05 Exhibit A - Legal Desc. Lot M.pdf

3. Reso 2026-05 Exhibit B - City QC of Lot M.pdf

4. Reso 2026-05 Exhibit C - mb244_072-076.pdf

5. W. Pershing Stage 2 District Acceptance.pdf

6. RS052_065-067.pdf

7. RCFC Parcel No. 5150-1A Legal Description.pdf

8. RCFC Parcel No.5150-1B Legal Description.pdf

9. RCFC Parcel 5150-2 thru 5150-5C Legal Description.pdf

10. Coop for TR 37388 & 37389-1 (245031).pdf

11. District QC for HHR.pdf
249
Resolution 2026-05

Page 1 of 6 ends

RESOLUTION 2026-05

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

APPROVING TO QUITCLAIM CITY PROPERTY TO THE RIVERSIDE COUNTY FLOOD

CONTROL AND WATER CONSERVATION DISTRICT AND TO ACCEPT PROPERTY TO BE

QUITCLAIMED BY THE RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT ALONG PERSHING CHANNEL (HIGHLAND HOME ROAD) IN

THE VICINITY OF WILSON STREET
WHEREAS, The City of Banning owns real property dedicated on Final Map 23446 recorded on May 6, 1993 as Lot M that was developed for flood control channel purposes, an accepted by the Riverside County Flood Control and Water Conservation District (“District”) for maintenance on January 31, 2003; and
WHEREAS, the District’s standard practice is to have fee title ownership to open channels it maintains; and
WHEREAS, the Quitclaim Deed prepared would transfer fee title ownership to the District, while reserving easement rights to the City of Banning for access main maintenance of City easements and facilities separate from the open channel; and WHEREAS, The District possesses fee title ownership of several parcels of land within the City of Banning street rights of way of Wilson Street and Highland Home Ave for a previous open flood control channel that have been replaced with reinforced concrete box and pipe; and WHEREAS, the District wishes to transfer fee ownership of District Parcels 5150-1A, 5051-1B, 5150-2, 5150-3B, 5150-3C, 5150-4A, 5150-4B, 5150-4C, 5150-5A, 5150-5B, and 5150- 5C back to the City of Banning, while reserving a non-exclusive easement to maintain said facilities and return the roadway to the same condition after maintenance activities as it was prior; and
WHEREAS, the Riverside County Board of Supervisors is required to take the first action on the quitclaim of property to the City of Banning, that the City will sign a Certificate of Acceptance after action by the Board of Supervisors is completed.

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

SECTION 1. The City Council authorizes the mayor to sign the quitclaim of Lot M of Final Map 23446 to the Riverside County Flood Control and Water Conservation District SECTION 2. The City Council authorizes the City Clerk to sign a Certificate of Acceptance for parcels 5150-1A, 5051-1B, 5150-2, 5150-3B, 5150-3C, 5150-4A, 5150-4B, 5150-4C, 5150-5A, 5150-5B, and 5150-5C after the Riverside County Board of Supervisors authorizes the quitclaim of the parcels.

SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 250
Resolution 2026-05

Page 2 of 6 ends

PASSED, APPROVED AND ADOPTED this 13th day of January, 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

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

John Pinkney, City Attorney
251
Resolution 2026-05

Page 3 of 6 ends

CERTIFICATION:

I, Sandra Calderon, Acting Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-05, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 13th day of January, 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Deputy City Clerk
City of Banning, California
252
Resolution 2026-05

Page 4 of 6 ends

EXHIBIT A
Legal Description of Final Map 23446 Lot M
253
Resolution 2026-05

Page 5 of 6 ends

EXHIBIT B
Quitclaim Deed of Final Map 23446 Lot M
254
Resolution 2026-05

Page 6 of 6 ends

EXHIBIT C
Final Map 23446 (MB244/72-76)
255

RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT

Page 1 of 1 ends

EXHIBIT "A"

LEGAL DESCRIPTION

WEST PERSHING CHANNEL BANNING MDP LINE K STAGE II
RCFC Parcel 5150-502
APN: 537-253-019 and 537-261-023
In City of Banning, County of Riverside, State of California, Lot M, Tract No. 23446, filed in Map Book 224, Pages 72 through 76, inclusive, records of said County.

Containing 79,355.720 square feet / 1.821 acres, more or less.

Prepared under my supervision.
_____________________________ __________________

DENNIS ODENBAUGH DATE
9-4-2025
256
Recording Requested by:

City of Banning
P.O. Box 998
Banning, CA 92220
Riverside County Flood Control and
Water Conservation District
1995 Market Street
Riverside, CA 92501
NO RECORDING FEE PER SECTION 6103 OF

THE GOVERNMENT CODE SPACE ABOVE THIS LINE FOR RECORDERS USE APN: 537-253-019 & 537-261-023
RCFC Parcel No. 5150-502
West Pershing Channel, Line K, Stage 2
DOCUMENTARY TRANSFER TAX $ -0-.

THE CONVEYANCE IS TO A GOVERNMENTAL

ENTITY OR POLITIAL SUBDIVISION
R&T CODE 11922

QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF BANNING, a public body corporate and politic (“Grantor”), does hereby remise, release and forever quitclaim to Riverside County Flood Control and Water Conservation District, a body corporate and politic (“Grantee”), the real property located in the City of Banning, County of Riverside, State of California, and described in Exhibit A, reserving an easement for maintenance access to the City of Banning, blanket in nature, across the real property described in Exhibit A.

Dated: _____________________
Richard Royce, Mayor
City of Banning
APPROVED AS TO FORM:

Sandra Calderon, Acting Deputy City Clerk
City of Banning
John Pinkney, City Attorney
257
State of California
County of Riverside
On ___________________ (date), before me, Sandra Calderon, Notary Public, personally appeared ____________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
State of California
County of Riverside
On ___________________ (date), before me, Sandra Calderon, Notary Public, personally appeared __________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)
}
}
258

CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by Quitclaim Deed dated _____________________ from the CITY OF BANNING (“Grantor”) to RIVERSIDE COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT (“Grantee”) is hereby accepted by the undersigned officer on behalf of the Board of Supervisors of the Riverside County Flood Control and Water Conservation District pursuant to authority conferred by Resolution No. 474 of the Board of Supervisors of said District adopted on May 12, 1961, and the Grantee consents to the recordation thereof by its duly authorized officer.

RIVERSIDE COUNTY FLOOD CONTROL

AND WATER CONSERVATION DISTRICT
Date: By:

JASON E. UHLEY
General Manager-Chief Engineer
Project: West Pershing Channel, Line K, Stage 2
Project No. 5-0-00150
APN 537-253-019 & 537-261-023
RCFC Parcel No. 5150-502
259
260
261
262
263
264

MEMORANDUM
------------

RIVERSIDE COUNTY FLOOD CONTROL

AND WATER CONSERVATION DISTRICT
DATE: January 31, 2003
TO: Mark Biloki, Operations ~d Maintenance Superintendent FROM: Coen Couwenberg, Chi~f o; Operations and Maintenance Division RE: Tract 23446
West Pershing Channel, Stage 2
Project No. 5-0-0150
Drawing No. 5-188
80536.1
Please add the referenced project to the District's maintained system and acquaint your staff with the new project. Also, make an addition in the next FY budget to account for maintenance costs. The attached maps and plans are for your use.

Attachments
c: Dale Anderson
Terri Cummings
Sandi Henry
Clyde Johnson
Jay Keller
Bob Low
George Ruiz - w/reduced plans
Zully Smith - w/plan sheet
Steve Stump - w/plan sheet
Jason Uhley
Ami Urista - w/plan sheet
Mark Wills
GIS Technical Committee
Attn: Bill Rhoades - w/plan sheet
File Room
R/W File
AU:pln
265
266
267
268

RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT

Page 1 of 2 ends

EXHIBIT "A"

LEGAL DESCRIPTION

WEST PERSHING CHANNEL LINE K
RCFC Parcel 5150-1A
Portion of APN: 537-253-033
In the City of Banning, County of Riverside, State of California, lying in Section 7, Township 3 South, Range 1 East, San Bernardino Meridian, being a portion of Parcel 5150-1 as shown on Records of Survey, filed in Book 52 of Records of Surveys, Pages 65 through 67 inclusive, records of said County, more particularly described as follows:

Beginning at the intersection of the southerly Right-of-Way line of Willson Street, 65-foot southerly part width as shown on Tract No. 23446, filed in Book 244, of maps, Pages 72 through 76, inclusive, records of said County, with the easterly line of said Parcel 5150-1; Thence along the westerly prolongation of said southerly Right-of-Way, South 89° 35’ 15” West a distance of 50.65 feet;
Thence leaving said westerly prolongation, South 07° 41’ 13” West a distance of 83.48 feet to a point on the westerly line of said Parcel 5150-1, said point being a distance of 139.75 feet northerly along said westerly line, from the southwesterly corner thereof; Thence along the westerly line of said Parcel, South 26° 51’ 01” East a distance of 139.75 feet to said southwesterly corner;
Thence along the southerly line of said Parcel, North 54° 46’ 30” East a distance of 140.00 feet to the southeasterly corner thereof;
Thence along the easterly line of said Parcel, North 42° 19’ 12” West a distance of 171.80 feet to the Point of Beginning.
269

RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT

Page 2 of 2 ends

Containing 20,503.35 square feet / 0.47 acres, more or less.

Prepared under my supervision.
_____________________________ __________________

DENNIS ODENBAUGH DATE
PREPARED BY: ____
CHECKED BY: ____
10/6/2025
270
N

GRAPHIC SCALE
TRACT NO. 23446
MB NO. 244/072-076

MOUNTAIN AIR
ESTATES UNIT NO. 2
M.B. 46 P. 64
271

RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT

Page 1 of 2 ends

EXHIBIT "A"

LEGAL DESCRIPTION

WEST PERSHING CHANNEL LINE K
RCFC Parcel 5150-1B
Portion of APN: 537-253-033
In the City of Banning, County of Riverside, State of California, lying in Section 7, Township 3 South, Range 1 East, San Bernardino Meridian, being a portion of Parcel 5150-1 as shown on Records of Survey, filed in Book 52 of Records of Surveys, Pages 65 through 67 inclusive, records of said County, more particularly described as follows:

Beginning at the intersection of the southerly Right-of-Way line of Willson Street, 65-foot southerly part width as shown on Tract No. 23446, filed in Book 244, of maps, Pages 72 through 76, inclusive, records of said County, with the easterly line of said Parcel 5150-1; Thence along the westerly prolongation of said Right-of-Way line, South 89° 35’ 15” West a distance of 50.65 feet;
Thence leaving said westerly prolongation, South 07° 41’ 13” West 83.48 feet, to a point on the westerly line of said Parcel 5150-1, said point being a distance of 139.75 feet northerly along said westerly line, from the southwesterly corner thereof; Thence along said westerly line, North 26° 51’ 01” West a distance of 53.05 feet, to an angle point on said westerly line;
Thence along said westerly line, North 00° 46’ 50” West a distance of 70.15 feet to the northwesterly corner of said Parcel 5150-1;
Thence along the north line of said Parcel 5150-1, North 89° 35’ 15” East a distance of

55.08 feet to the easterly line of said Parcel 5150-1;
Thence along said easterly line South 42° 19’ 12” East a distance of 47.03 feet to the Point of Beginning.
272

RIVERSIDE COUNTY FLOOD CONTROL AND WATER

CONSERVATION DISTRICT

Page 2 of 2 ends

Containing 4,354.38 square feet / 0.10 acres, more or less.

Prepared under my supervision.
_____________________________ __________________

DENNIS ODENBAUGH DATE
PREPARED BY: ____
CHECKED BY: ____
10/6/2025
273
N

GRAPHIC SCALE
TRACT NO. 23446
MB NO. 244/072-076

MOUNTAIN AIR
ESTATES UNIT NO. 2
M.B. 46 P. 64
274

Page 1 of 1 ends

RIVERSIDE COUNTY FLOOD CONTROL AND

WATER CONSERVATION DISTRICT

EXHIBIT "C"

LEGAL DESCRIPTION
West Pershing Channel, Stage I

APNs:, 408-671-010, 408-662-025 and a portion of 419-060-008 In the City of Banning, County of Riverside, State of California, being Parcels 5150-2, 5150-3B, 5150-3C, 5150-4A, 5150-4B, 5150-5A, 5150-5B, and 5150-5C as shown on Record of Survey filed in in Book 52, Pages 65 through 67 of Record of Surveys, in the Office of the County Recorder of said County.

Containing 73,452.14 sf / 1.69 acres, more or less.
_________________________________________________ __________________________

DENNIS ODENBAUGH DATE
11/6/2025
275

AGREEMENT DISTRIBUTION
DATE: 10/11 /22
PROJECT NAME: West Pershing Channel, Stage 5 TR 37388 & 37389-1 PROJECT NO(S: 5-0-00150-5
------------ ---------- [ XJ COOPERATIVE AGREEMENT
[ l CONSUL TING SERVICES AGREEMENT
[ l OTHER:

PARTIES: District/ City of Banning/ Tri Pointe Homes IE-SD, Inc.

FROM: MS
-------
TO:

J. UHLEY
E. QUINONEZ/C. PADRES
No. of No. of
Copies EC
Beth Monroy 1
Ami Urista 1
Construction Management 1
David G./Eric L./Ryan G.

Accounts Receivable 1
Developer Services 1
R. Arguetta/ D. James
Contract Services

COMMENTS
AgreementDistributionForm.xls
Action/Comment
Original for scanning. Please return orig
Copy for file
Copy for file
Copy for file
Copy for file
Revised 8/8/12 (amr)
276

SUBMITTAL TO THE FLOOD CONTROL AND

WATER CONSERVATION DISTRICT

BOARD OF SUPERVISORS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
ITEM: 11 .5
(ID# 19674)
MEETING DATE:

Tuesday,August30,2022
FROM: FLOOD CONTROL DISTRICT:

SUBJECT: FLOOD CONTROL DISTRICT: Approval of the Cooperative Agreement Between the Riverside County Flood Control and Water Conservation District, the City of Banning and Tri Pointe Homes IE-SD, Inc, a California Corporation, for West Pershing Channel, Stage 5, Tract Map Nos. 37388 and 37389-1, Project No. 5-0-00150-5, Nothing Further is Required Under CEQA, District 5. [$0]
RECOMMENDED MOTION: That the Board of Supervisors:

1. Find that nothing further is required under the California Environmental Quality Act (CEQA) for approval of this Cooperative Agreement because all potentially significant environmental effects have been adequately analyzed and the potential impacts have been mitigated in the Final Environmental Impact Report (EIR) (State Clearing House No. 2007091149), adopted by the Lead Agency (City of Banning) on December 9, 2014;

2. Approve the Cooperative Agreement between the Riverside County Flood Control and Water Conservation District ("District"), the City of Banning ("City") and Tri Pointe Homes IE-SD, Inc, a California corporation ("Developer");
Continued on page 2
ACTION:Policy
L MGR-CHF FLO CNTRL E G 8/16/2022

MINUTES OF THE BOARD OF SUPERVISORS
On motion of Supervisor Spiegel, seconded by Supervisor Perez and duly carried by unanimous vote, IT WAS ORDERED that the above matter is approved as recommended.

Ayes:

Nays:

Absent:

Date:
xc:

Page 1 of 3 ends

Jeffries, Spiegel, Washington, Perez and Hewitt
None
None
August 30, 2022
Flood
ID# 19674
K .

C
B-\:._j,r.p'r-fl-""-"""'"~~..,

11.5 277
.,.

SUBMITTAL TO THE FLOOD CONTROL AND WATER CONSERVATION DISTRICT BOARD

OF SUPERVISORS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
RECOMMENDED MOTION: That the Board of Supervisors:

3. Authorize the Chair of the District's Board of Supervisors ("Board") to execute the Cooperative Agreement documents on behalf of the District;

4. Authorize the General Manager-Chief Engineer or designee to take all necessary steps to implement the Cooperative Agreement, including, but not limited to, negotiating, approving and executing any non-substantive amendments and any assignment and assumption associated with change of ownership of the property, subject to approval as to form by County Counsel; and

5. Direct the Clerk of the District's Board to return five (5) copies of the executed Cooperative Agreement to the District.

FINANCIAL DATA Current Fiscal Year: Next Fiscal Year:

COST $0 $0
NET COUNTY COST $0 $0
SOURCE OF FUNDS: The Developer is funding all
construction and construction inspection costs (100%)
C.E.O. RECOMMENDATION: Approve
BACKGROUND:

Summary
Total Cost: Ongoing Cost
$0 $0
$0 $0
Budget Adjustment: No
For Fiscal Year: N/A
' The Cooperative Agreement ("Agreement") sets forth the terms and conditions by which certain flood control facilities for Tract Map Nos. 37388 and 37389-1 ("Project") required as a condition of approval are to be constructed by the Developer and inspected, operated and maintained by the District and City.

The District owns, operates and maintains the existing West Pershing Channel, Stage 1, ("Open Channel") as shown on District Drawing No. 5-0131 . The Developer proposes to convert the existing Open Channel into a new underground storm drain system ("West Pershing Channel, Stage 5") to utilize the surface for new residential development and to improve the City's traffic circulation plan.

For the purpose of converting the Open Channel, the District desires to convey the fee and easement interest of the Open Channel to the City pursuant to a Quitclaim Deed at a later Board meeting. Upon construction completion of the Project, the District will assume ownership, operation and maintenance of West Pershing Channel, Stage 5 and associated safety devices ("District Facilities"). The City will assume ownership and responsibility for the operation and maintenance of the Project's associated inlets, junction structures, catch basins, curbs and gutters, manholes and laterals that are 36 inches or less in diameter located within City's rights of'way.

Page 2 of 3 ends

278

SUBMITTAL TO THE FLOOD CONTROL AND WATER CONSERVATION DISTRICT BOARD

OF SUPERVISORS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
The Agreement is necessary to formalize the transfer of necessary rights of way and to provide for District construction inspection a nd subsequent operation and maintenance of District Facilities.

County Counsel has approved the Agreement as to legal form, and the City and Developer have executed the Agreement.

CEQA Findings
Pursuant to Section 15096 of the State CEQA Guidelines, Making Responsible Agency Findings, the District has considered the Final EIR that was prepared for the Butterfield Specific Plan (SCH No. 2007091149). The District, in its limited capacity as a Responsible Agency, finds that the inspection, acceptance and subsequent operation and maintenance of the West Pershing Channel, Stage 5 flood facility as described in the Agreement are adequately addressed in the Final EIR. The District finds that inspection, acceptance and subsequent operation and maintenance of the proposed flood facilities will not have a significant impact on the environment. Therefore, no further analysis is required under CEQA.

Impact on Residents and Businesses
As noted above, construction of these drainage improvements will facilitate the development of Tract Map Nos. 37388 and 37389-1 . The principal beneficiaries are the future residents of the tract. Ancillary benefits will accrue to the public who will utilize the tracts' roadways.

SUPPLEMENTAL:

Additional Fiscal Information
The Developer is funding all construction and construction inspection costs. Future operation and maintenance costs of the District maintained storm drain facilities will be accrued by the District.

ATTACHMENTS:

1. Vicinity Map

2. Cooperative Agreement
AK:blm
PS/245031

Page 3 of 3 ends

Banning City CouncilJanuary 13, 2026

Banning City Council
January 13, 2026