MINUTES
CITY COUNCIL – REGULAR MEETING
February 10, 2026
1. CALL TO ORDER – 5:08 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
Nate Smith, Deputy Director of Public Works
Vickie Sellers, City Clerk
Sandra Calderon, Deputy City Clerk
1.2 INVOCATION
There was no invocation at this meeting.
1.3 PLEDGE OF ALLEGIANCE
Mayor Royce led the Pledge of Allegiance.
2. AGENDA APPROVAL
2.1 AGENDA APPROVAL
MOTION
Council Member Wallace moved and Council Member Flynn seconded a motion to approve the agenda. The motion carried unanimously.
3. PRESENTATIONS
3.1 Proclamation February 2026 as American Heart Month
Recommendation: The City Council proclaim February 2026 as American Heart Month.
Mayor Royce read the proclamation.
4. REPORT ON CLOSED SESSION
City Attorney Pinkney stated there were two Closed Session items listed at the end of agenda and those would not be heard as part of this meeting or agenda.
City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
2 5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS
5.1 PUBLIC COMMENTS
Inge Schuler expressed disappointment that the City had not issued a proclamation recognizing Black History Month, noting it had been done traditionally in previous years. She questioned why it had not been included this year. She also expressed concerns regarding code enforcement, citing several recreational vehicles, trailers, and a boat that she stated had remained parked on City streets for extended periods while accumulating trash. She also discussed enforcement related to horse properties and questioned why horse owners received citations for waste disposal while other nuisance conditions appeared to go unaddressed. She acknowledged the City had recently hired new code enforcement staff and encouraged consistent enforcement of the Municipal Code.
Bill Hobbs expressed concern regarding warehouse development adjacent to residential neighborhoods and retirement communities. He stated he was concerned about the resulting impacts on air quality and believed the City should better protect existing neighborhoods.
Kathy Aranda expressed concerns regarding homeless encampments near commercial areas, including one located near Chipotle and another near the City's welcome sign. She stated the conditions negatively affected public safety, public health, local businesses, and the City's image.
She urged the City to address the encampments.
Steven McCleary expressed concerns regarding the quality of the City's tap water, stating it had a metallic taste. He also discussed the City's utility billing software and stated the City should retain a system that was reliable and easy for residents to use, particularly those on fixed incomes.
Stuart Mackenzie stated he had recently paid his outstanding utility bills and hoped the City's billing system would improve moving forward. He encouraged the City to evaluate utility billing systems used by other agencies and thoroughly test any future software before implementation. He also discussed the City's Strategic Plan and encouraged the City to focus on attracting new businesses and filling vacant commercial storefronts.
Oleg Ivaschuk, President of the Banning Chamber of Commerce, announced the upcoming Sunshine Breakfast scheduled for February 18 and invited the public to attend. He stated conditions within the City were improving and noted the recent opening of another health and wellness business. He encouraged continued business development, requested the City revisit updating the Interstate 10 billboard with a positive message, and stated the Chamber was willing to assist. He also encouraged residents to shop locally.
Adam Evanton, Senior Affairs Manager for Southern California Gas Company, discussed the company's proposal to close in-person payment offices. He stated in-person transactions represented approximately two percent of customer payments while costing approximately $19 million annually to operate. He stated the proposal was currently pending before the California Public Utilities Commission. He explained customers would continue to have in-person payment options available at participating retail locations, including Cheers Market, Cardenas Market, and Walmart, as well as payment by mail and online. He acknowledged concerns previously expressed by the City regarding payments being accepted at liquor stores and stated Southern California Gas Company was willing to work with the City to identify an alternative authorized payment location, including a local business or City Hall.
Frank Connelly thanked Mayor Royce for opposing the closure of the local Southern California Gas payment office. He stated many elderly residents preferred making payments in person and should not be required to use a liquor store to pay utility bills. He urged the City to continue opposing the closure until additional payment options were made available.
City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
3 Veronica Luna discussed the City's utility billing delays and stated she had continued making payments throughout the billing issues but was still receiving multiple bills in a single month. She expressed concern regarding the financial impact on low-income families and urged the City to stop issuing multiple utility bills each month.
5.2 CORRESPONDENCE
Staff announced two comments letters had been received for Item 9.1 and would be read during public comment on that item.
5.3 APPOINTMENTS
There were no appointments for this meeting.
5.4 CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace reported on a meeting of the Regional Conservation Authority Board of Directors. She stated the Board received its annual review of the Riverside County Treasurer-Tax Collector's investment pool and reported the fund continued to perform well. She also discussed the Authority's ongoing efforts to acquire land for habitat conservation, including habitat for birds, toads, snakes, and lizards. Council Member Wallace also attended a Southern California Association of Governments transportation meeting, where members discussed transportation safety targets, particularly regarding electric bicycles. She expressed concern about modified ebikes capable of traveling at high speeds and discussed the need for increased safety measures, including greater involvement by the Department of Motor Vehicles.
Council Member Flynn reported on a Riverside County Transportation Commission transportation workshop, which she described as informative. She stated topics included traffic relief projects in western Riverside County, Interstate 10 interchange reconstruction projects, expansion of express lanes on Interstate 10, and expansion of passenger rail service into new areas of Riverside County.
She stated a future rail station could potentially be located in Cabazon, Banning, Beaumont, or Calimesa and expressed support for locating the station in Banning. She also discussed the continued growth of warehousing and logistics within Riverside County and stated projections indicated trucks would account for approximately 50 percent of daily traffic on Interstate 10 by 2045.
Council Member Flynn also reported on the 35th anniversary meeting of the Western Riverside Council of Governments. She stated the City paid approximately $6,570 annually in membership dues and, with WRCOG's assistance, had received more than $14.6 million in Transportation Uniform Mitigation Fee project funding. She also noted WRCOG had assisted the City with numerous regional studies and grant applications.
Mayor Pro Tem Barrington stated she had nothing to report.
Council Member Miller reported on a Riverside Transit Agency Budget and Finance Committee meeting. He stated the agency was installing 20 new bus shelters, although none were currently planned for Banning. He noted a new shelter had recently been installed at the Walmart in Beaumont. He also stated the committee discussed fuel tax issues and their potential impacts on local transit systems, with additional information expected at a future meeting. Council Member Miller further reported attending a League of California Cities district meeting, where several legislative proposals were discussed that could be considered for City sponsorship.
Mayor Royce stated he had nothing to report.
5.5 CITY TREASURER’S REPORT
Sue Savage, City Treasurer, presented the January 2026 Treasurer's Report. She stated the City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
4 reports provided to her remained limited and that she continued to be denied access to a printer and printer paper. She compared January 2026 financial information to January 2025 and stated the City's Local Agency Investment Fund (LAIF) balance had decreased by nearly $17 million. She noted the City's savings account earned approximately $833,000 in interest over the previous year while the reduction in LAIF balances, at an approximate 4.2 percent interest rate, resulted in an estimated $726,000 in lost interest earnings. She stated City funds should be managed strategically to maximize investment opportunities.
Ms. Savage stated California Government Code Section 53646 required the preparation of quarterly investment reports and questioned why those reports had not been provided. She also stated the City's combined cash and investment balances had decreased by approximately $12.87 million over the previous year. She expressed concern that more recent bank statements and online account access had not been made available, stating effective financial oversight required timely access to financial information. She also discussed changes in revenues, expenditures, fund balances, bond payments, debt covenant violations, and other matters related to the City's financial stewardship.
5.6 CITY MANAGER’S REPORT
Interim City Manager Vela responded to comments regarding the Treasurer's Report. He clarified the City experienced approximately a $25 million reduction in cash flow during the six-month period utility bills were not issued. He stated that although the City was currently issuing two utility bills per month as part of the catch-up process, customers were only being billed for one month of utility usage on each bill.
Mr. Vela announced the City would host a utility assistance event on February 19 from 9:00 a.m. to 2:00 p.m. in the Council Chambers, where County staff and City utility billing staff would assist customers with applications for the Low-Income Home Energy Assistance Program (LIHEAP) and the City's low-income electric utility assistance program.
Mr. Vela stated staff expected customers to receive their final catch-up utility bill during the month and that March would be the first month all customers would receive a single bill covering only their February utility usage. He acknowledged the utility billing issues had significantly impacted residents and stated that although the City still planned to upgrade its utility billing system, additional safeguards would be implemented to ensure a successful transition. In response to Mayor Royce, Mr. Vela stated future utility bills would include additional educational information to assist customers in understanding their statements.
5.7 CITY ATTORNEY’S REPORT
City Attorney Pinkney reviewed portions of the City of Banning's Rules of Decorum and Procedural Guidelines. He also addressed the Government Code section referenced during the City Treasurer's Report and clarified that the applicable statutory language was permissive rather than mandatory. He stated the Government Code provides that the City Treasurer or chief fiscal officer may prepare quarterly investment reports.
In response to Mayor Royce, Interim City Manager Vela stated the City had previously prepared quarterly investment reports but that staffing vacancies within the Finance Department and utility billing priorities had delayed their preparation. Mayor Royce stated he would like quarterly investment reports to resume once Finance Department staffing had stabilized. By consensus, the City Council agreed.
City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
5 6. CONSENT ITEMS
6.1 Consideration and Approval of the meeting minutes of the December 9, 2025 Regular City Council meeting
Recommendation: Approve the meeting minutes of December 9, 2025 Regular City Council meeting.
6.2 Public Works Capital Improvement Project List
Recommendation: Receive and file.
6.3 Receive and File Notice of Application for FY27 Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant
Recommendation: Receive and file the application submitted by the Banning Police Department to the California Office of Traffic Safety (OTS) for the FY27 Selective Traffic Enforcement Program (STEP) Grant.
6.4 Receive and file the application submitted for the FY26 Emergency Management Department State Homeland Security Program (SHSP) grant
Recommendation: Receive and file.
6.5 Parks and Recreation Report of Monthly Activities through the 2nd Quarter of Fiscal Year 2025/2026 - December 2025
Recommendation: Receive and file.
6.6 Consideration of Resolution 2026-19, to Authorize the City Manager to Execute Amendment No. 1 to the Reimbursement Agreement with SFPP, L.P., a Delaware Limited Partnership, for additional Costs Associated with the Relocation of Pipeline Facilities owned and Operated by SFPP in Relation to the Sun Lakes Boulevard Extension Project.
Recommendation: Approve Resolution 2026-19
6.7 Approve Resolution 2026-32, Awarding a Professional Services Agreement for Design Services for the Upgrade of the Intersection of Wilson Street and 12th Street to TKE Engineering, Inc. in the amount of $41,665 and Approving a 10% Contingency for a Total Project Budget of “Not-toExceed” $45,831.50.
Recommendation: Approve Resolution 2026-32.
6.8 Consideration of Resolution 2026-33, Amending the Classification and Compensation Plan, Position Reclassification (Accountant)
Recommendation: Adopt Resolution 2026-33.
MOTION
Council Member Wallace moved and Mayor Pro Tem Barrington seconded a motion to approve the consent agenda. The motion carried unanimously.
7. PUBLIC HEARINGS
None.
8. REPORTS OF OFFICERS
There were no reports.
City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
6 9. DISCUSSION ITEMS
9.1 Discussion of the 2025 Development Impact Fee Study, Maximum Justifiable Rates and City Council’s Direction for Final Rates for Approval.
Recommendation: Provide direction to staff on Development Impact Fee Rates.
Nate Smith, Deputy Director of Public Works, presented the staff report. He stated the item was a follow-up to the recent Development Impact Fee workshop. He explained the public hearing originally scheduled for this meeting had been postponed due to a noticing error. He stated staff was providing an overview of the proposed fees and seeking preliminary policy direction from the City Council in preparation for the public hearing scheduled for February 24.
Mr. Smith reviewed the proposed Development Impact Fees and compared the recommended fees to those of neighboring jurisdictions. He explained the fees were calculated based on land use rather than unit size and represented the maximum justifiable fees supported by the City's nexus study. He presented sample development scenarios and compared the resulting fees with neighboring agencies. He stated the proposed residential fees were generally higher than neighboring agencies while the proposed commercial and industrial fees were generally lower. He also presented an alternative comparison based on reduced fee levels, noting residential fees would be approximately 75 percent of the maximum justifiable amount if adjusted to be more comparable with neighboring cities. He further explained the Atwell Development Agreement limited certain development impact fees that could be imposed within that development. Mr. Smith stated that if the City elected to charge less than the maximum justifiable fees, another funding source would ultimately be required to construct the infrastructure those fees were intended to fund.
Mr. Smith stated staff would meet with the City's Development Impact Fee consultant and department directors to review the proposed fees, develop additional alternatives, and discuss those options with representatives of the development community before the February 24 public hearing.
In response to Mayor Royce, Mr. Smith stated the fee comparison for the City of Beaumont was based on its 2024 fee schedule. He stated staff would verify whether Beaumont had subsequently adjusted its fees for inflation and provide updated information at the public hearing.
Council Member Flynn discussed comments submitted by the Building Industry Association regarding the proposed residential fee increases. She questioned why a greater share of the impact fees was not allocated to commercial and industrial development. Mr. Smith explained the nexus study was specific to Banning and reflected the differing infrastructure impacts associated with each land use category. He stated the City's policy decision was whether to adopt the maximum justifiable fees or a lesser amount.
Mayor Pro Tem Barrington asked how other comparable cities determined the percentage of the maximum justifiable fees they charged. Mr. Smith stated that decision varied by jurisdiction and was ultimately a policy determination. He explained staff's recommendation was to adopt the maximum justifiable fees in order to fully recover the City's infrastructure costs. He also noted infrastructure costs continued to increase over time and stated the City could adjust Development Impact Fees by resolution in the future. He further explained an ordinance would be required to establish the proposed electric utility impact fee within the Municipal Code.
Council Member Miller stated additional information would be helpful before the public hearing. Mr.
Smith confirmed staff would provide the requested information.
In response to Council Member Wallace, Mr. Smith explained projected growth was determined using the City's General Plan land use designations.
City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
7 Interim City Manager Vela discussed the methodology used to calculate Development Impact Fees and explained comparisons between cities were not always meaningful because each nexus study reflected the unique infrastructure needs and growth patterns of that jurisdiction. He stated charging less than the maximum justifiable fee would increase the City's long-term infrastructure funding gap.
City Clerk Sellers read into the record letters submitted by the Building Industry Association and the Building Industry Legal Defense Foundation. The letters expressed concerns that the proposed residential Development Impact Fees would significantly increase housing costs and negatively affect future residential development.
Council Member Flynn stated the City should consider whether its policy objective was to encourage additional residential or commercial development when establishing the fee structure.
Mayor Pro Tem Barrington noted the proposed non-residential fees were already at the maximum justifiable amount. Mr. Smith explained they could not exceed the maximum amount supported by the nexus study. Interim City Manager Vela added that while the City could reduce fees below the maximum justifiable amount, it could not shift the resulting revenue shortfall from one land use category to another.
Mr. Smith stated staff was seeking general policy direction to assist in preparing the February 24 public hearing. Mayor Royce stated he supported capturing as much of the justifiable impact fees as possible for both residential and non-residential development.
Mr. Smith stated the staff report for the February 24 public hearing would include the results of staff's additional analysis and stakeholder meetings.
10. CLOSED SESSION
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.
City Attorney Pinkney stated during Item 4 that these items would no longer be heard as part of this agenda.
11. ANNOUNCEMENTS FROM CITY COUNCIL MEMBERS
There were no announcements.
12. ITEMS FOR FUTURE AGENDAS
12.1 NEW ITEMS
1. Update Outdated Billboard on Sunset St. (Flynn) January 2026
2. Continue Food Truck Festival (Barrington) January 2026
12.2 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 City of Banning
City Council Minutes
February 10, 2026 Regular Meeting
8 7. Sales Tax Agreement Update with Diamond Chevrolet (Flynn) December 2025
8. Cannabis Warehouse Moratorium (New Facilities Only) (Barrington) December 2025 In response to Mayor Pro Tem Barrington, Interim City Manager Vela stated some of the items were being scheduled for upcoming meetings.
13. ADJOURNMENT
MOTION
Council Member Miller moved and Mayor Pro Tem Barrington seconded a motion to adjourn the meeting. The question was called and the motion carried unanimously.
The meeting adjourned at 6:35 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/287?view_id=1&redirect=true