MINUTES
CITY COUNCIL – REGULAR MEETING
JANUARY 27, 2026
1. CALL TO ORDER – 5:32 p.m.
1.1 ROLL CALL
COUNCIL MEMBERS PRESENT: Mayor Richard Royce
Mayor Pro Tem Cindy Barrington
Council Member Sheri Flynn
Council Member Leroy Miller
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: John Pinkney, City Attorney
Art Vela, Interim City Manager
Robert Wright, Parks and Recreation Director
Nate Smith, Deputy Director of Public Works
Bonnie Johnson, Interim Finance Director
Fred Lynn, Deputy Director of Electric Utility
Mark Staples, Planning Manager
Vickie Sellers, City Clerk
Sandra Calderon, Deputy City Clerk
1.2 INVOCATION
Performed by Pastor Preston Norman from Praise Tabernacle Church
1.3 PLEDGE OF ALLEGIANCE
Council Member Wallace led the Pledge of Allegiance.
2. AGENDA APPROVAL
2.1 AGENDA APPROVAL
MOTION
Council Member Miller moved and Council Member Wallace seconded a motion to approve the agenda, amended to move Item 9.2 to be heard following Report on Closed Session.
The motion carried unanimously.
3. PRESENTATIONS
3.1 Proclamation - Youth in Government Day
Recommendation: Proclaim January 29, 2026, as Youth in Government Day.
Mayor Royce presented the Proclamation to Robert Wright, Parks and Recreation Director.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
2 Joe Matthews, Youth Commission Coordinator for Riverside County, discussed the Riverside County Youth Commission and explained how Youth in Government Day provides students with opportunities to participate in local government based on their areas of interest. He stated approximately 135 students participated in the program.
4. REPORT ON CLOSED SESSION
City Attorney Pinkney stated there was no reportable action from Closed Session.
Item 9.2 was moved to be heard at this time upon approval of the agenda.
9.2 Consideration of Resolution 2026-21, City of Banning Fiscal Year Ending June 30, 2024 Financial Statements and Related Required Reports and Approving a Contract Amendment and an Additional Appropriation for Eide Bailly Related to the City's Fiscal Year Ended June 30, 2024 Audit Increasing the Agreement Amount by $145,000
Recommendation: Adopt Resolution 2026-21.
Bonnie Johnson, Interim Finance Director, presented the staff report and introduced Roger Alfaro, Partner with Eide Bailly, to review the results of the City's Fiscal Year ending June 30, 2024 audit.
Mr. Alfaro reviewed the audit of the City's Fiscal Year ending June 30, 2024 financial statements.
He stated the responsibility of the independent external auditors was to express an opinion as to whether the financial statements were fairly presented, in all material respects, in accordance with generally accepted accounting principles. He also discussed the audit of the City's major federal programs and stated the audit included an evaluation of internal controls and compliance with applicable requirements.
Mr. Alfaro stated Eide Bailly issued a qualified opinion, explaining the auditors were able to express an opinion on the City's account balances, disclosures, and classes of transactions for both the City and the Banning Utility Authority, with the exception of inventory. He also stated the audit identified debt covenant noncompliance within the Banning Utility Authority. He reported the audit identified seven material weaknesses, one significant deficiency, and one instance of noncompliance in accordance with Government Auditing Standards, all of which were described in detail in the staff report. He stated management had prepared a corrective action plan to address the findings and reviewed the audit's summary findings.
Interim Finance Director Johnson reviewed the City's major operational funds. She stated the General Fund balance had declined from approximately $11.8 million in Fiscal Year 2019-2020 to approximately $3.5 million in Fiscal Year 2023-2024, indicating a structural budget imbalance. She also stated the Internal Service Funds reflected a deficit fund balance of approximately $12 million and explained that correcting the deficit would require a multi-year financial recovery plan. She discussed the need for additional funding to complete the audit and stated staff recommended the City Council receive and file the audit and adopt Resolution No. 2026-21 approving a contract amendment and additional appropriation of $145,000 for Eide Bailly related to the Fiscal Year ended June 30, 2024 audit.
Interim City Manager Vela discussed the reasons the audit required additional time to complete.
He stated several key Finance Department positions were vacant both currently and during the audit process and that staff was working diligently to complete the Fiscal Year 2024-2025 financial records so the next audit could proceed.
MOTION
Council Member Wallace moved and Mayor Royce seconded a motion to approve the staff recommendation. The motion carried unanimously.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
3 5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS
5.1 PUBLIC COMMENTS
Sue Savage discussed the City's utility billing system. She stated residents had reported that the electric rate increase reflected on their utility bills did not match the 20 percent increase previously communicated by the City. She requested that all public communications regarding electric rate increases be reviewed and updated to accurately reflect the rate increase.
Oleg Ivaschuk, President of the Banning Chamber of Commerce, provided an update on Chamber activities. He stated the recent Sunshine Breakfast at Morongo was a successful event. He also noted that the City's billboard along the freeway needed to be updated.
Tanya Hershey expressed concerns regarding homelessness within the city. She discussed biohazards associated with homeless encampments, including concerns about disease transmission, sharps waste, drug paraphernalia, and accumulated trash. She urged the City to take action to address the issue.
5.2 CORRESPONDENCE
Staff announced no correspondence had been received.
5.3 APPOINTMENTS
Banning Youth Council Appointment - Position 2, 3, 4, 5, & 7, terms ending January 31, 2027.
Recommendation: Extend the terms of five members of the Banning Youth Council with expiring terms for one year, terms ending January 31, 2027.
Parks and Recreation Director Wright presented the staff report. He stated the Youth Council was established in 2023 and highlighted several accomplishments, including working on policy, adopting a park, hosting community events, and engaging in other community service activities.
He stated the initial appointments were for two-year terms and that five members were reaching the end of those terms. Staff recommended extending each of those appointments by one additional year.
In response to Mayor Royce, Mr. Wright stated all current members were appointed during the initial formation of the Youth Council, resulting in non-staggered terms. Mayor Royce stated staff should develop a method for staggering future appointments to preserve institutional knowledge and experience on the Youth Council.
In response to Council Member Miller, Mr. Wright stated the Youth Council currently consisted of eight members and that the Banning Municipal Code authorized a membership of five to nine members.
MOTION
Council Member Miller moved and Council Member Wallace seconded a motion to approve the staff recommendation. The motion carried unanimously.
5.4 CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace reported on her attendance at the League of California Cities Mayors and Council Members Academy, where she participated in several educational workshops. She also attended a meeting of the Transportation, Communications and Public Works Policy Committee, during which members discussed e-bikes and child safety. In addition, she attended a San Diego Association of Governments meeting regarding transportation planning for the upcoming Olympic City of Banning
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January 27, 2026 Regular Meeting
4 Games and anticipated impacts in areas expected to receive significant tourist activity.
Council Member Flynn reported the Riverside County Transportation Commission meeting had been canceled. She also attended the League of California Cities Mayors and Council Members Academy, where she participated in workshops covering effective advocacy, key municipal issues, open government and conflicts of interest, and land use planning. She stated the conference was beneficial. Council Member Flynn also reported on a Western Riverside Programs and Projects Committee meeting, during which approximately $2.5 million in Transportation Uniform Mitigation Fee funding was approved for the Interstate 10/State Route 79 Interchange Project. She stated construction of that project was not anticipated to begin until approximately 2032 and noted the Highland Springs Interchange Project would begin first. She also announced the upcoming Sunset Crossroads public hearing and a Riverside County Transportation Commission workshop in Cathedral City.
Mayor Royce reported on his attendance at the League of California Cities Mayors and Council Members Academy, where he attended many of the same workshops discussed by Council Member Flynn. He stated he found the Brown Act training particularly beneficial. He also met with representatives from Cal Cities Riverside County Division regarding service on a public service committee focused on potential Public Employees' Pension Reform Act reforms. He stated he also attended sessions regarding the State budget process and how funding flows from the State to counties and cities.
Mayor Pro Tem Barrington reported she did not attend the League of California Cities conference but attended a recent Budget and Finance Committee meeting.
Council Member Miller reported he attended a Riverside Transit Agency Board Administrative and Operations Committee meeting and stated he had been appointed to the agency's Budget and Finance Committee. He reported he attended an appointed officials training webinar. Council Member Miller reported on his attendance at the League of California Cities Mayors and Council Members Academy, where he met with State legislators to discuss Caltrans projects and homelessness. He stated he was appointed to the League of California Cities Tax and Revenue Policy Committee and attended its meeting during the conference. He stated the conference included valuable training on CEQA, social media, and the Brown Act. He also noted he had an upcoming Riverside Transit Agency Board of Directors meeting.
5.5 CITY MANAGER'S REPORT
Art Vela, Interim City Manager, addressed several public comments. Regarding the recent utility rate increase, he stated the City Council previously adopted annual utility rate adjustments for a five-year period. He clarified the previously discussed 20 percent increase referred to an increase in overall utility revenue rather than a 20 percent increase to individual electric rates. He stated the rate adjustments varied depending on customer classification and became effective November 1, 2025.
Mr. Vela also discussed the City's freeway billboard and stated staff had been discussing potential updates internally. He stated staff anticipated bringing an update to the City Council within the next few months.
Regarding homelessness, Mr. Vela stated the City maintained an internal Homeless Task Force that regularly addressed homeless encampments and cleanup efforts. He stated photographs shown depicted locations that had already been cleaned and discussed a recent large-scale cleanup completed the previous week. He further explained that when encampments were located on private property, the City was required to provide notice to the property owner. If the property was not cleaned within the required timeframe, the City could perform the cleanup and bill the property owner for the associated costs. He also stated the City Council had recently awarded a City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
5 contract for homeless encampment cleanup services and staff was in the process of implementing that contract.
5.6 CITY ATTORNEY'S REPORT
City Attorney Pinkney read portions of the Rules of Decorum and Procedural Guidelines for the City of Banning.
6. CONSENT ITEMS
6.1 Consideration and Approval of the meeting minutes of the May 27, 2025, and January 13, 2026 Closed Session City Council meetings
Recommendation: Approve the meeting minutes of the May 27, 2025, and January 13, 2026 Closed Session City Council meetings.
6.2 Receive and File Fire Protective Services Statistics for the Month of December 2025 Recommendation: Receive and file.
6.3 Receive and File Code Enforcement Statistics for the Month of December 2025 Recommendation: Receive and file.
6.4 Receive and File Police Department Statistics for the Month of December 2025 Recommendation: Receive and file.
6.5 Receive and File Animal Control Statistics for the Month of December 2025 Recommendation: Receive and file.
6.6 Consideration of Second Reading and Adoption 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).
Recommendation: Approve second reading and Adoption of Ordinance 1615.
6.7 Consideration of Resolution 2026-09, Approving an Agreement with Electric Power Systems International, Inc. for Electric Substation Equipment Maintenance Testing, Advisory, and On-Call Services
Recommendation: Adopt Resolution 2026-09.
6.8 Consideration of Resolution 2026-17, Initiating Proceedings to Update Landscape Maintenance District No. 1 for Fiscal Year 2026/2027
Recommendation: Adopt Resolution 2026-17.
6.9 Consideration of Resolution 2026-18, Awarding a Professional Services Agreement for Project No. 2020-04 Sun Lakes Boulevard Extension Project for Environmental Monitoring Services, to UltraSystems Environmental, Inc. in the amount of $381,900 and approving a 10% contingency for a total budget of “Not-to-Exceed” $420,090
Recommendation: Adopt Resolution 2026-18.
6.10 Consideration of Resolution 2026-20, Authorizing the Purchase of Three 35-Foot Fixed Route CNG Buses in the Amount of $2,717,459.56
Recommendation: Adopt Resolution 2026-20.
Council Member Flynn stated she would like to pull Item 6.7.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
6 MOTION
Council Member Wallace moved and Mayor Pro Tem Barrington seconded a motion to approve Items 6.1-6.10, with the exception of Item 6.7. The motion carried unanimously.
6.7 Consideration of Resolution 2026-09, Approving an Agreement with Electric Power Systems International, Inc. for Electric Substation Equipment Maintenance Testing, Advisory, and On-Call Services
Recommendation: Adopt Resolution 2026-09.
In response to Council Member Flynn, Fred Lynn, Deputy Director of Electric Utility, discussed the three bids received and explained the cost differences between the bids. He clarified the proposed agreement covered a three-fiscal-year term and that the additional amount included on-call services to be provided on an as-needed basis, for a total contract amount not to exceed $293,000.
MOTION
Council Member Flynn moved and Council Member Miller seconded a motion to approve the staff recommendation. The motion carried unanimously.
7. PUBLIC HEARINGS
7.1 Continued from January 13, 2026, meeting - continued deliberation by the City Council to 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.
Recommendation: Adopt Resolution 2026-03.
Mark Staples, Planning Manager, presented the continued item from the previous meeting regarding the Tentative Tract Map application. He summarized the questions and concerns raised during the initial public hearing, including the proposed parks, the size and anticipated pricing of the condominium units, and owner occupancy. He stated the applicant had agreed to include an owner-occupancy addendum in its purchase agreements requiring purchasers to occupy their homes for one year. He also stated most purchasers were expected to be first-time homebuyers and that current rental rates in Banning would not generally be sufficient to cover mortgage payments. Mr. Staples further explained the proposed density adjustment would not increase the total number of residential units or traffic beyond what was already contemplated under the Butterfield Specific Plan because the overall approved unit count remained unchanged. He also stated the Development Agreement prohibited the City from imposing conditions on the project that were not applied citywide.
Council Member Flynn reiterated her concern that investors could purchase homes with cash and convert them to rental properties. She asked City Attorney Pinkney whether the Development Agreement prevented the City from imposing an owner-occupancy requirement. Mr. Pinkney stated his understanding was that the Development Agreement contained language limiting the City's ability to impose additional project-specific conditions. He stated, however, that the applicant had proposed a voluntary owner-occupancy condition that would address the Council's concerns. He explained the City would have the ability to enforce the voluntarily accepted condition.
In response to Council Member Miller, Mr. Staples stated the two proposed parks would be accessible to the public. He explained one park would be located within the proposed age-restricted community, but neither park would have public access restrictions. He stated both parks would be maintained by the homeowners association.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
7 Mayor Pro Tem Barrington discussed the Veterans Tree and stated she understood relocating the approximately 100-year-old tree would likely not be feasible. She asked when that issue would be addressed. Interim City Manager Vela stated the issue would arise when improvements to the adjacent roadway were undertaken, although he could not identify a specific timeline. He stated staff remained hopeful a solution could be identified that would preserve the tree and discussed potential design alternatives, including a roundabout, while acknowledging engineering challenges.
Michael Titus, representing Tri Pointe Homes, discussed the proposed owner-occupancy condition.
He stated Tri Pointe Homes agreed to a condition of approval requiring the occupancy addendum currently used by the company to be included with the sale of all residential units within Tract 39259-2. He further stated the occupancy addendum would not be modified without the approval of the City of Banning, allowing the City to enforce the condition. Mr. Titus also responded to the CEQA comments raised at the previous hearing and reiterated his position that the existing environmental documents adequately addressed the issues identified in the submitted comment letter.
In response to Council Member Flynn, Mr. Titus clarified the condition of approval would apply to the condominium units included within the tract. He stated, however, that Tri Pointe Homes used the occupancy addendum in the sale of all of its homes.
City Attorney Pinkney stated Mr. Titus had provided the proposed occupancy addendum and related condition language by email. He stated both documents would be incorporated into the administrative record and provided to the City Clerk.
Mayor Royce reopened the public hearing.
Edward Espinosa expressed concern regarding the condition of Highland Springs Road. He stated portions of the roadway were deteriorating and questioned whether damage from construction traffic would be addressed as part of the project.
Mayor Royce closed the public hearing.
Interim City Manager Vela stated certain improvements to Highland Springs Road had already been completed by the developer as conditions of the project. He acknowledged portions of the original roadway remained in poor condition and stated staff was obtaining quotes for temporary repairs until permanent improvements associated with future development could be completed.
MOTION
Mayor Pro Tem Barrington moved and Council Member Wallace seconded a motion to approve the staff recommendation as amended. The motion carried unanimously.
RECESS
At 7:10 p.m., the City Council recessed. The meeting reconvened at 7:35 p.m. with all Council Members present.
8. REPORTS OF OFFICERS
There were no reports.
9. DISCUSSION ITEMS
9.1 Consideration of Resolution 2026-16, Authorizing the City Manager to Execute the Voluntary VMT Exchange Program Participation Agreement between the Western Riverside Council of Governments and the City of Banning
Recommendation: Adopt Resolution 2026-16.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
8 Nate Smith, Deputy Director of Public Works, presented the staff report. He explained that Vehicle Miles Traveled (VMT) is the transportation metric required under the California Environmental Quality Act (CEQA) and focuses on reducing vehicle travel and associated emissions rather than roadway level of service. He stated projects that increase VMT are required to mitigate those impacts.
Mr. Smith explained the Western Riverside Council of Governments (WRCOG) had developed a regional VMT Mitigation Program, which would establish a mitigation credit marketplace. He stated public agencies could create eligible transportation projects that generate VMT mitigation credits, while private development projects needing to mitigate VMT impacts could purchase those credits.
He noted a project in Beaumont would likely be among the first developments required to purchase VMT mitigation credits through the program.
Mr. Smith stated the City of Banning could participate in the program by developing eligible projects, such as transit enhancements, and offering those projects as mitigation credits through the WRCOG marketplace. He explained WRCOG would collect the mitigation payments and remit funding to the City to construct the approved project. He stated if project costs exceeded estimates, the City would be responsible for the additional costs, while any unused funds would be returned to WRCOG.
Mr. Smith stated staff recommended beginning with a transit pass program because it satisfied farebox recovery requirements, did not require General Fund support, had a known cost, and would allow staff to gain experience with the new program. He stated the transit passes would be distributed to the community.
Christopher Tzeng, Program Manager for the Western Riverside Council of Governments (WRCOG), emphasized there was no cost to the City to participate in the program and stated it provided significant benefits to agencies seeking to construct projects or implement programs that met the program criteria.
In response to Mayor Royce, Mr. Smith stated that if the City purchased transit passes for approximately $100, the corresponding mitigation credits could be offered through the marketplace for approximately $104.
In response to Council Member Flynn, Mr. Tzeng stated the program was available throughout California.
Mr. Smith stated staff would continue working through policy issues related to the program and would return to the City Council with additional recommendations as needed. He stated staff was requesting authorization to execute the voluntary participation agreement with WRCOG to allow local mitigation funding to support local transit improvements.
Council Member Miller expressed support for participating in the program. He stated Riverside Transit Agency had recently approved participation and believed it was important for the City to participate early before mitigation credits became more competitive.
MOTION
Council Member Wallace moved and Mayor Royce seconded a motion to approve the staff recommendation. The motion carried unanimously.
9.2 Consideration of Resolution 2026-21, City of Banning Fiscal Year Ending June 30, 2024 Financial Statements and Related Required Reports and Approving a Contract Amendment and an Additional Appropriation for Eide Bailly Related to the City's Fiscal Year Ended June 30, 2024 Audit Increasing the Agreement Amount by $145,000
Recommendation: Adopt Resolution 2026-21.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
9 This item was heard earlier in the meeting, immediately following the Closed Session Report, as reordered by the City Council upon approval of the agenda.
9.3 Consideration of Resolution 2026-22, Approving a Temporary Payment Plan Policy for a Period of Twelve Months
Recommendation: Adopt Resolution 2026-22.
Interim City Manager Vela presented the staff report. He stated the proposed resolution memorialized the City Council's direction from the previous meeting regarding utility billing payment plans and the grace period. He provided an update on the City's utility billing schedule, stating all November bills and approximately two-thirds of the December bills would be mailed by the end of January, with the remaining December bills expected to be mailed during the first week of February.
He stated January bills would be mailed during February and anticipated March would be the first month in which all customers would receive only one monthly bill.
Mr. Vela reviewed the proposed payment plan policy, including a three-month grace period during which customers could either pay their outstanding balance in full or enroll in a payment plan. He stated no late fees, service discontinuations, or credit card convenience fees would be assessed during the grace period. Following the grace period, the City would resume its standard discontinuation of service procedures, subject to applicable medical and financial hardship exceptions. He stated payment plans would include either a 6-month term with a 5 percent deposit or a 12-month term with a 10 percent deposit. He requested City Council direction regarding the commencement date of the grace period.
Mayor Royce stated he wanted to ensure all customers would be receiving only one monthly bill before the grace period began. Mr. Vela stated staff anticipated all customers would receive only their February utility bill during March and was confident that schedule could be achieved.
Council Member Wallace asked how the policy would apply to customers who had made no payments during the billing delay. Mr. Vela explained those customers would have three months from the commencement of the grace period to either pay their outstanding balance or enter into a payment plan before the standard 60-day discontinuation timeline would begin. He also reviewed examples of how payment plans would be structured, noting payment plan installments would be in addition to current monthly utility charges and did not constitute interest-bearing loans.
Mayor Pro Tem Barrington requested information regarding the City's low-income utility assistance programs be included with customer bills. Mr. Vela stated staff was preparing additional public outreach regarding both local and State assistance programs and that future bills would also include information regarding the grace period and available payment plans.
In response to Mayor Royce, Mr. Vela stated staff was also developing a sample utility bill to help customers better understand how to read their statements. He noted customers would be required to establish payment plans in person.
In response to Council Member Flynn, Mr. Vela stated staff continued to evaluate how automatic payments would function for customers participating in payment plans. He stated staff wanted to avoid automatically charging customers for their full outstanding balances and that automatic payments might remain suspended until all payment plans had concluded.
Frank Connolly encouraged the City to implement the payment plan program as soon as possible.
He stated residents had benefited from delayed billing and should now begin paying the outstanding balances owed to the City.
Jerry Phelps stated she agreed the City needed to move forward but remained concerned the utility City of Banning
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January 27, 2026 Regular Meeting
10 billing process was confusing for many residents. She stated not all residents had been able to save money during the billing delays and expressed concern that requiring customers to appear at City Hall during business hours to establish payment plans could create hardships.
Leslie Evans stated she had established utility service after moving to Banning and questioned how customer utility deposits would be treated for residents enrolling in payment plans. She asked whether previously paid utility deposits could be applied toward outstanding balances.
Edward Espinosa questioned whether the City had authority to place delinquent utility accounts on property liens and discussed potential options for customers who continued to refuse payment.
Mayor Royce encouraged residents with billing questions to meet with City staff and request detailed payment and usage histories to better understand their accounts.
Mr. Vela stated Ms. Evans had raised a valid issue that staff had not previously considered. He stated it would be reasonable to consider applying qualifying customer utility deposits toward outstanding balances in appropriate circumstances. He also referenced Section 2 of the proposed resolution, which authorized the City Manager to approve special payment arrangements on a case-by-case basis for documented special circumstances.
Council Member Flynn stated customer utility deposits should be credited back to qualifying customers after the required holding period rather than combining deposits with payment plan balances.
Mayor Royce stated the City should exercise flexibility when assisting customers experiencing unique circumstances.
Council Member Miller expressed agreement with Mayor Royce's comments.
Mayor Pro Tem Barrington stated situations involving customer deposits could be addressed under the case-by-case provisions contained in Section 2 of the proposed resolution.
Following discussion, the City Council reached consensus that the three-month grace period would commence with customers' February utility bills, which would be mailed in March.
MOTION
Council Member Wallace moved and Council Member Miller seconded a motion to approve the staff recommendation. The motion carried unanimously.
9.4 Consideration of Resolution 2026-23, Authorizing the City Manager to Execute the Engagement Letter with Stradling Yocca Carlson & Rauth, LLP to Serve as Bond Counsel and Disclosure Counsel to the City of Banning
Recommendation: Adopt Resolution 2026-23.
Interim City Manager Vela presented the staff report. He stated the City was seeking to retain a law firm to provide specialized legal services, including bond counsel and, when necessary, disclosure counsel, to ensure compliance with applicable federal, State, and local laws. He stated the City currently utilized municipal advisors and had issued a Request for Proposals to solicit legal services, although such services were exempt from the City's purchasing policy. He stated the Request for Proposals process was conducted to ensure the City received the best value. Mr. Vela stated staff recommended Stradling Yocca Carlson & Rauth as the most qualified firm. He also noted a typographical error in the proposed resolution and clarified the contract amount should be $200,000.
City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
11 Council Member Flynn noted the firm's proposal identified an estimated cost of $70,000 to $120,000 and questioned why the proposed contract amount was higher. Mr. Vela explained the proposal was based on a specific bond financing matter, while the proposed agreement would provide broader bond counsel and disclosure counsel services. He stated the City Council could authorize a lower amount and staff could return with a future amendment if additional services became necessary.
Sue Savage expressed concerns regarding the City's electric utility bonds. She stated the City had received two non-investment-grade bond ratings from Standard & Poor's and questioned whether issuing additional debt was the appropriate solution. She suggested the City consider using existing funds to resolve the bond covenant issues rather than incurring additional debt and associated legal costs. She also recommended filling key Finance Department vacancies, clarifying the November utility rate increases, and addressing exposed electrical infrastructure. She stated those issues affected the City's ability to meet its current debt obligations.
Mr. Vela stated Ms. Savage had raised important questions but explained they were outside the scope of the proposed agreement. He clarified the purpose of retaining Stradling was not to issue additional bonds, but rather to provide specialized legal advice regarding bond-related matters and assist the City in developing strategies to address its existing financial and bond obligations. He stated issuing additional debt, if considered in the future, would occur only if determined to be appropriate under improved financial circumstances.
MOTION
Council Member Flynn moved and Council Member Miller seconded a motion to approve the staff recommendation leaving the resolution as presented with a not-to-exceed amount of $150,000. The motion carried unanimously.
10. CLOSED SESSION
Recommendation: MAYOR TO CONTINUE CLOSED SESSION AGENDA ITEMS 10.1 AND 10.2 TO THE ADJOURNED REGULAR MEETING FEBRUARY 5, 2026 at 12:00 p.m. AS SET FORTH UNDER ITEM 12 - ADJOURNMENT
10.1 Conference with Labor Negotiator Pursuant to Government Code Section 54957.6 Agency Designated Representative: HR Director Lisa Rossi or her designee. Unrepresented Potential Employee: City Manager.
10.2 Public Employee Appointment/Employment Pursuant to Government Code Section 54957 Title: City Manager.
Mayor Royce continued to the items to the Adjourned Regular Meeting to be held on February 5, 2026 at 12:00 p.m.
11. ITEMS FOR FUTURE AGENDAS
11.1 NEW ITEMS
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
6. Revise Manual of Procedural Guidelines, Article 10.3 (c) (Flynn) December 2025
7. Sales Tax Agreement Update with Diamond Chevrolet (Flynn) December 2025
8. Cannabis Warehouse Moratorium (New Facilities Only) (Barrington) December 2025 City of Banning
City Council Minutes
January 27, 2026 Regular Meeting
12 Council Member Flynn requested that a future agenda item be added to consider updating the Interstate 10 billboard with a new theme.
Mayor Pro Tem Barrington requested that a future agenda item be added to continue the monthly Foodie Fridays food truck events with a new agreement with the Chamber of Commerce.
12. ADJOURNMENT
MOTION
Mayor Royce moved and Council Member Wallace seconded a motion to adjourn the meeting to February 5, 2026 at 12:00 pm. The question was called and the motion carried unanimously.
The meeting adjourned at 8:30 p.m.
Minutes prepared by:
Sandra B. 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/281?view_id=1&redirect=true