Banning City Council
February 24, 2026

February 24, 2026
5:00 p.m.

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

1. CALL TO ORDER

2. CLOSED SESSION
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 James Baylark of First Community Baptist Church

1.2 PLEDGE OF ALLEGIANCE

1.3 ROLL CALL

2.1 Conference with Labor Negotiator Pursuant to Government Code Section 54957.6 Agency Designated Representative: Mayor Richard Royce or his designee. Unrepresented City Council - Regular Meeting Agenda
February 24, 2026
1 3. CONSIDERATION AND POSSIBLE APPROVAL OF THE CITY MANAGER EMPLOYMENT

AGREEEMENT

3.1 Consideration of Resolution 2026-39, Appointment of Elizabeth M. Gibbs as City Manager and Approving the City Manager Employment Agreement

4. AGENDA APPROVAL

5. PRESENTATIONS/PROCLAMATIONS

5.1 Proclamation for Black History Month.

6. REPORT ON CLOSED SESSION

7. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

8. CONSENT ITEMS

8.1 Consideration and approval of the meeting minutes of the Workshop held on January 13, 2026, and the Special Meeting held on January 28, 2026.

Potential Employee: City Manager.

2.2 Public Employee Appointment/Employment Pursuant to Government Code Section 54957 Title: City Manager.

Recommendation:

Adopt Resolution 2026-39 approving a City Manager Employment Agreement between the City of Banning and Elizabeth Gibbs.

4.1 AGENDA APPROVAL
Recommendation: Proclaim February 2026 Black History Month.

John Pinkney, City Attorney

7.1 PUBLIC COMMENTS

7.2 CORRESPONDENCE

7.3 APPOINTMENTS

7.4 CITY COUNCIL COMMITTEE REPORTS

7.5 ANNOUNCEMENTS OF CITY COUNCIL MEMBERS

7.6 CITY MANAGER'S REPORT

7.7 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 the Workshop held on January 13, 2026, and the Special Meeting held on January 28, 2026.

City Council - Regular Meeting Agenda
February 24, 2026
2 8.2 Receive and File Fire Protective Services Statistics for the Month of January 2026.

8.3 Receive and File Code Enforcement Statistics for the Month of January 2026

8.4 Receive and File Animal Control Statistics for the Month of January 2026

8.5 Receive and File Police Department Statistics for the Month of January 2026

8.6 Community Cleanup and Compost Giveaway Event Update

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

8.8 Consideration of Resolution 2026-34, Approving the Professional Services Agreement with NewGen Strategies and Solutions, LLC in the amount of $90,000 for a three-year term to provide a rate review assessment and services to the Banning Electric Utility's electric rates.

8.9 Consideration of Resolution 2026-36, Approving the City of Banning Interfund Advances or Loan Policy

8.10Consideration of Resolution 2026-37, Amending the Classification and Compensation Plan, Classification Change (Civil Engineer Series)

8.11Consideration of Resolution 2026-38, Approving Amendment No. 1 to the Professional Services Agreement with UltraSystems Environmental, Inc. for an Additional Amount of $230,770 for Construction Environmental Monitoring Services Related to the Sun Lakes Boulevard Extension Project

9. PUBLIC HEARINGS

9.1 Introduction and First Reading of Ordinance No. 1621, and Adoption of Resolution No. 2026- 35, an update and amendment to Chapter 15.76 the Transportation Uniform Mitigation Fee (TUMF) Program

9.2 Consider Resolution 2026-24, Making a Finding of Exemption Under CEQA, Approving the Development Impact Fee Study (DIF) Dated January 2026, and Adopting New and Amended Recommendation: Receive and file.

Recommendation: Receive and file.

Recommendation: Receive and file.

Recommendation: Receive and file.

Recommendation: This is informational only; receive and file report.

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

Recommendation: Adopt Resolution 2026-34
Recommendation: Adopt Resolution 2026-36
Recommendation:

Adopt Resolution 2026-37
Recommendation: Adopt Resolution 2026-38
Recommendation: 1. Waive full reading and introduce by title only Ordinance No. 1621 and determine this action is exempt under CEQA

2. Adopt Resolution No. 2026-35, amending the applicable Transportation Uniform Mitigation Fee (TUMF) applicable to all developments in the City of Banning.

City Council - Regular Meeting Agenda
February 24, 2026
3 Development Impact Fees, and Introducing Ordinance 1616 Amending Chapter 15.68 - Development Impact Fees of the Banning Municipal Code, Including Sections 15.68.040,

15.68.010, 15.68.020, 15.68.030, 15.68.040, 15.68.050, 15.68.060, 15.68.070, and Adding Section 15.68.080 Electric Facilities Development Impact Fees

10. REPORTS OF OFFICERS

11. DISCUSSION ITEMS/ACTION ITEMS

11.1Review of Sales Tax Sharing and Operating Agreement between City of Banning and Dalia Auto Group, LLC and Khan Properties and Holdings, LLC (Diamond Chevrolet GMC)

11.2Approval of the City's Strategic Plan "Banning 2030 - Designing Our Future Today"

11.3Discussion and Direction regarding potential modifications to the City of Banning Manual of Procedural Guidelines including, but not limited to, Section 10.3, 10.6, and 12.2

12. ITEMS FOR FUTURE AGENDAS

13. ADJOURNMENT
Recommendation: 1) Determine this action is exempt under CEQA 2) Adopt Resolution 2026-24
3) Waive further reading, and introduce as read by title only, Ordinance 1616 Recommendation: Receive and file the update on the Sales Tax Sharing and Operating Agreement and provide direction to staff as appropriate.

Recommendation: Consider the approval of the City's Strategic Plan "Banning 2030 - Designing Our Future Today"
Recommendation: Discussion and direction regarding potential modifications to the City of Banning Manual of Procedural Guidelines including, but not limited to, Section 10.3, 10.6, and 12.2.

12.1 NEW ITEMS

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

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

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

9. Update Outdated Billboard on Sunset St. (Flynn) January 2026

10. Continue Food Truck Festival (Barrington) January 2026 Next Regular Meeting – March 10, 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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To indicate a desire to make Public Comment, you must use the Raise Hand function. The Mayor will City Council - Regular Meeting Agenda
February 24, 2026
4 not recognize those who have not used the Raise Hand function.

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La función de chat estará deshabilitada para todas las Reuniones del Ayuntamiento en Zoom.

AFFIDAVIT • DECLARACIÓN JURADA
IT IS HEREBY CERTIFIED under the laws of the State of California that the above agenda was posted on the City's website (www.banningca.gov) as well as the Bulletin Board at Banning City Hall, located at 99 E Ramsey Street, Banning, CA 92220, at least 72 hours in advance of the meeting.
_________________________
Vickie Sellers, Elected City Clerk
Secretaria Municipal Electa
City Council - Regular Meeting Agenda
February 24, 2026
5 PUBLIC NOTICE • NOTICIA PÚBLICA
Meeting Agendas and Notices
Interested in receiving email and/or text notifications of upcoming City Council meetings? Sign up for meeting notifications through the City's website. Pursuant to amended Government Code §54957.5(b), staff reports and other public records related to open session agenda items are available on the City's website (www.banningca.gov/).

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

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

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

CONTACT • CONTACTO
City Clerk's Office | 951-922-3102 | [email protected] 99 East Ramsey Street, Banning, California 92220
City Council - Regular Meeting Agenda
February 24, 2026
6 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Lisa Rossi, Human Resources Director
MEETING DATE: February 24, 2026
SUBJECT:

Consideration of Resolution 2026-39, Appointment of Elizabeth M. Gibbs as City Manager and Approving the City Manager Employment Agreement
RECOMMENDATION:

Adopt Resolution 2026-39 approving a City Manager Employment Agreement between the City of Banning and Elizabeth Gibbs.

BACKGROUND:

The purpose of this item is for the City Council to consider and take formal action on the Employment Agreement for the position of City Manager. Following an extensive recruitment and evaluation process, the City Council has identified Elizabeth M. Gibbs as the best-qualified individual to lead the City’s operations and implement Council policy.

In accordance with Government Code Section 54953(c)(3), this report serves to provide a summary of the recommended compensation and fringe benefits. By approving this agreement, the City ensures executive leadership stability and provides the City Manager with the necessary contractual framework to effectively manage City departments, oversee the municipal budget, and support the Council’s long-term strategic goals for the Banning community.

The agreement establishes a five-year term beginning February 25th, 2026, with an initial gross annual base salary of $311,955.00. In addition to base salary, the City will provide the following itemized benefits:

Retirement & Deferred Compensation: Participation in CalPERS as a "Classic Member" (2% @ 60) and a City-paid contribution to a 457 deferred compensation plan equal to 5% of the base salary.

Health & Welfare: An annual cafeteria benefit capped at $20,000.00 for health insurance and related plans, plus City-paid premiums for a $150,000.00 term life insurance policy and short-term disability coverage.

Leave Accruals: Annual allotments of 160 hours of vacation leave (with a 40-hour initial bank), 96 hours of sick leave, 98 hours of executive leave (with a 40-hour initial bank), and 13 paid holidays plus one floating holiday.
7 Allowances & Reimbursements: A monthly vehicle allowance of $250.00, and City-issued technology (cell phone, laptop, and desktop) and $250 per month for the candidate holding a Master’s Degree.

Professional Development: City-paid dues and travel expenses for participation in professional organizations such as ICMA.

JUSTIFICATION:

The City Manager position is critical to successful operations of the City of Banning. Ms. Gibbs is highly qualified and has the experience necessary to successfully perform the duties of the position.

FISCAL IMPACT:

The fiscal impact of this agreement includes a starting annual base salary of $311,955.00, along with a 5% deferred compensation contribution, a $20,000.00 annual cafeteria benefit and monthly stipend for vehicle use totaling $250.00.

ALTERNATIVES:

Do not approve Resolution 2026-39 and provide alternative directions to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution_2026-39.doc

2. City of Banning City Manager Employment Agreement FINAL.docx 8 Resolution 2026-39

RESOLUTION 2026-39

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPOINTING ELIZABETH M. GIBBS TO THE POSITION OF CITY MANAGER EFFECTIVE FEBRUARY 25TH, 2026 AND APPROVING A CITY MANAGER EMPLOYMENT AGREEMENT WHEREAS, after an extensive executive recruitment process, the Banning City Council has selected Elizabeth M. Gibbs for the position of Banning City Manager; and WHEREAS, at the City Council regular meeting on February 24th, 2026, the Council considered a City Manager Employment Agreement between the City of Banning and Elizabeth M. Gibbs; and
WHEREAS, Elizabeth M. Gibbs has confirmed her desire to serve as City Manager for the City of Banning; and
WHEREAS, the parties agree that Elizabeth M. Gibbs has the necessary qualifications and experience to perform and serve as City Manager.

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

SECTION 1. The City Council approves the City Manager Employment Agreement with Elizabeth M. Gibbs, attached hereto as Exhibit “A”, and authorizes the Mayor to execute same and the City Attorney to make any necessary non-substantive changes.

SECTION 2. The City Council authorizes any necessary budget adjustments, appropriations, and transfers related to this resolution.

SECTION 3. The City Clerk shall certify 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 24th day of February 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
9 Resolution 2026-39

APPROVED AS TO FORM:

John Pinkey, City Attorney
SBEMP
10 Resolution 2026-39

CERTIFICATION:

I, Sandra Calderon, Acting Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-168, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of February 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Deputy City Clerk
City of Banning, California
11 Resolution 2026-39

Exhibit A
Employment Agreement with Elizabeth M. Gibbs
12 1

CITY MANAGER

EMPLOYMENT AGREEMENT
This CITY MANAGER EMPLOYMENT AGREEMENT (hereinafter referred to as the “Agreement”) is entered into by and between CITY OF BANNING (hereinafter referred to as the “CITY”), and Elizabeth Gibbs, an individual (hereinafter referred to as “EMPLOYEE”). For purposes of this Agreement, CITY and EMPLOYEE may be collectively referred to as the “Parties” or individually as a “Party.”

RECITALS
Based on EMPLOYEE’s executive and administrative qualifications and ability, the City Council of CITY (“COUNCIL”) desires EMPLOYEE to serve as the City Manager for CITY; and
EMPLOYEE desires to serve and perform the responsibilities and duties as the City Manager for CITY; and
In consideration of these recitals and performance of the mutual promises, conditions and covenants contained herein, the CITY and EMPLOYEE agree as follows:

1. POSITION, DUTIES AND TERM.

1.1 Position, Duties & Term. EMPLOYEE agrees to serve as the City Manager and shall perform all City Manager functions, duties and services as established under California law and as set forth in the City of Banning Municipal Code (“Municipal Code”) as may be amended from time to time. The Term of this Agreement and EMPLOYEE’s employment with CITY shall commence on February 25, 2026, and shall terminate at 5:00 p.m. on February 24, 2031.

EMPLOYEE’s employment is subject to the “At-Will” provision in Section 1.2 and termination provisions in Section 6. Section 2.08.070 of the Municipal Code sets forth the Powers and Duties of the Banning City Manager (Powers & Duties).

As City Manager, EMPLOYEE shall function as the Chief Executive Officer of the CITY and shall be responsible to the CITY and its COUNCIL for the proper, lawful and ethical administration of all affairs of the CITY. In the role of the City Manager, EMPLOYEE shall also serve at the pleasure of the COUNCIL as the Director of any sub-entities/agencies of the City of Banning.
13 2

1.2 Employment with CITY “At-Will”.
(a) EMPLOYEE’s employment status with CITY shall be at-will and EMPLOYEE shall serve at the pleasure of the COUNCIL. EMPLOYEE acknowledges, understands and agrees that EMPLOYEE may not avail herself of any procedures, provisions or protections set forth under CITY’s Employment Policies, as defined herein, insofar as such procedures, provisions or protections limit, restrict, modify, prohibit or regulate EMPLOYEE’s status as an “at-will” employee of CITY or the ability of the COUNCIL to terminate EMPLOYEE’s employment at any time for cause or for convenience and without cause. For purposes of this Agreement, the capitalized term “Employment Policies” means and refers to any ordinance, resolution, regulation, rule, memorandum of understanding, or other written policy of CITY as the same may be amended, modified or supplemented from time-to-time, and any written employment manual of CITY which governs, regulates or otherwise relates to employment with CITY. CITY’s Employment Policies shall not apply to EMPLOYEE insofar as such Employment Policies limit, restrict, modify or regulate (or may be interpreted to limit, restrict, modify or regulate) EMPLOYEE’s status as an “at-will” employee of CITY. (b) EMPLOYEE shall not be entitled to any pre-termination notice or hearing or other similar proceeding or appeal proceeding as a precondition to any decision or action by the CITY to terminate EMPLOYEE’s employment whether for cause or for convenience and without cause.
(c) Nothing in this Agreement shall confer upon EMPLOYEE any right to any property interest in continued employment with CITY.

1.3 Work Hours. The position of City Manager is an exempt position under state and federal wage and hour laws. EMPLOYEE’s compensation (whether salary or benefits or other allowances) is not based on hours worked and EMPLOYEE shall not be entitled to any compensation for overtime. EMPLOYEE is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager’s position. The City Manager does not have set hours of work as the City Manager and is expected to dedicate herself on a full-time basis to serving as the City Manager and to be available at all reasonable and relevant times, including attending all City Council meetings, as well as other meetings as needed.

1.4 Non-CITY Activities. In accordance with Government Code Section 1126, during the period of EMPLOYEE’S employment, EMPLOYEE shall not accept, without the express prior written approval of three or more members of the COUNCIL after consideration of the issue at a noticed public meeting, any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with her duties as City Manager or that may be competitive with CITY, that 14 3
might cause a conflict-of-interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of EMPLOYEE’s duties as City Manager.

2. COMPENSATION BENEFITS AND REIMBURSEMENT.

2.1 Base Salary. Commencing on February 25, 2026, EMPLOYEE’s gross annual salary shall be $311,955.00 (hereinafter, the “Base Salary”) to be paid in monthly or bi-weekly installments at the same time and in the same manner as other management employees of CITY.

EMPLOYEE’s salary shall be subject to customary withholding for taxes and other required deductions. In recognition of EMPLOYEE accomplishing goals and objectives identified by the COUNCIL, the COUNCIL may, in its discretion, grant EMPLOYEE merit increases in her salary, annual merit bonuses and/or benefits.

2.2 Deferred Compensation. As part of the City Manager’s annual compensation, the City Manager may participate in the deferred compensation plan pursuant to Section 457 of the Internal Revenue Code as established by the City. The City shall contribute to the qualified 457 account in the City Manager’s name equal to 5% of her Base Salary, paid according to the biweekly payroll schedule in place for the City employees.

2.3 Compaction Avoidance. The annual base salary of the City Manager shall be ten percent greater than the City’s next highest paid employee. The City Council will amend this Agreement, as needed, in a noticed meeting to ensure EMPLOYEE’s salary remains ten percent above the next highest paid City employee.

2.4 Performance Evaluation. As needed and on the annual anniversary of the commencement of EMPLOYEE'S employment with CITY, COUNCIL and EMPLOYEE shall define the goals and objectives that they determine are appropriate for the proper operation of the CITY. Concurrently with the annual establishment of the goals and objectives for the CITY, the COUNCIL and EMPLOYEE shall establish the performance goals for EMPLOYEE and any specific criteria that shall be used to evaluate EMPLOYEE'S performance. The COUNCIL may in its discretion, amend said criteria from time to time, after consultation with EMPLOYEE. The failure of CITY to undertake performance evaluations shall not limit CITY’s ability to terminate EMPLOYEE and this Agreement pursuant to Section 6 (Termination).

2.5 Reimbursement. CITY shall reimburse EMPLOYEE for reasonable and necessary travel and other business expenses incurred by EMPLOYEE in the performance of EMPLOYEE’S official duties. All reimbursements shall be subject to and in accordance with any limitations or restrictions set forth under the laws of the State of California or any CITY-adopted reimbursement policies.
15 4

2.6 Vehicle Allowance. In lieu of expense reimbursement for mileage, EMPLOYEE shall receive a vehicle allowance of $250.00 per month. EMPLOYEE shall be responsible for payment of automobile and liability insurance, maintenance, repair, replacement costs, all taxes applicable to the vehicle allowance and shall be solely responsible for all expenses associated with her vehicle. EMPLOYEE shall be responsible for maintaining necessary records as may be required by Federal and/or State taxing authorities.

2.7 Cell Phone and Computer. For CITY related business, CITY shall provide EMPLOYEE with a CITY issued cell phone. City shall also provide EMPLOYEE with a desktop computer and CITY issued laptop for official use in connection with CITY business.

2.8 Benefits. In addition to Base Salary, CITY shall also provide EMPLOYEE with the following benefits:
(a) Cafeteria/Health and Welfare Benefits: EMPLOYEE shall be entitled to receive from the CITY an annual cafeteria benefit in an annual amount capped at Twenty Thousand Dollars ($20,000.00), for the purchase of health and welfare benefits under any approved plan provided by the CITY. Said contribution shall first be used to provide health insurance for the EMPLOYEE. EMPLOYEE may use funds for any of the CITY’s medical plans or, upon proof of coverage under another acceptable health plan as determined by the CITY’s Human Resource Department, this amount may be taken as taxable income or converted to a 457 Plan or CITY sponsored Medical Savings Account. CITY may increase the benefit annually using CPI or the average of all CITY health insurance premium increases as long as it stays within the maximum parameters established by City Council for department heads. EMPLOYEE may elect to receive ninety-two and five-tenths percent (92.5%) of the balance in cash as CalPERS non-includable taxable income or converted to a 457 plan or CITY sponsored Medical Savings Account.
(b) Life and Short-Term Disability Insurance. CITY agrees that during the term of employment, it will pay the annual premiums for a term life insurance policy in the amount of $150,000.00. If available, additional coverage may be purchased at EMPLOYEE’s expense and costs. EMPLOYEE shall nominate the beneficiary under such term life insurance policy.

Thirty days after commencement of EMPLOYEE’s full-time employment, CITY shall provide EMPLOYEE with short term disability insurance coverage consistent with policy terms provided to other non-sworn management level CITY employees.

2.9 Jury Duty. EMPLOYEE will receive Base Salary and benefits while responding to a jury summons or serving on a jury. Any compensation for such jury duty (except travel pay) shall be remitted to CITY.
16 5

2.10 Paid Leave
(a) Sick Leave. EMPLOYEE shall be entitled to ninety-six (96) hours of sick leave annually, with the right to cash in a maximum of ninety-six (96) hours annually. A minimum of forty (40) sick leave hours must be left in the bank at time of cash out. Sick leave shall accrue at the rate of 3.69 hours per pay period. Any sick leave cash out request must be made no later than November 1st of each year, and payment of the cash out shall be made in the last check issued in November. Sick leave may only be accrued to a maximum of four hundred eighty (480) hours at which point sick leave accrual will cease until the accrued hours fall below the maximum of four hundred eighty (480) hours. Sick leave must be used and deducted from accruals on a minute-by-minute basis for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours. Upon termination for any reason, EMPLOYEE shall be entitled to one hundred percent (100%) of the unused sick leave on the books then existing.
(b) Vacation Leave. EMPLOYEE shall be entitled to one hundred sixty (160) hours of vacation leave annually, with the right to cash in a combined maximum of eighty (80) vacation leave hours annually from any vacation leave bank. A minimum of eighty (80) vacation leave hours must be left in the regular vacation bank at time of cash out. If EMPLOYEE accrues greater than three hundred (300) hours of vacation time, then she may request a one-time cash out of fifty percent (50%) of the total available vacation hours to be paid at her current pay rate.

Vacation leave shall accrue at the rate of 6.15 hours per pay period. Vacation leave may only be accrued to a maximum of four hundred eighty (480) hours at which point vacation leave accrual will cease until the accrued hours fall below the maximum of four hundred eighty (480) hours.

Vacation leave must be used and deducted from accruals on a minute-by-minute basis for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours. Upon termination, for any reason, EMPLOYEE shall be entitled to one hundred percent (100%) of the unused vacation leave on the books then existing. A vacation leave bank of forty (40) hours will be established as of the employment date. (c) Executive Leave. EMPLOYEE shall be entitled to ninety-eight (98) hours annual accrual with a maximum accrual cap of two-hundred (200) hours. Leave will be earned at a rate of 3.77 hours per pay period. A maximum of ninety-eight (98) hours of Executive Leave may be cashed out annually. An executive leave bank of forty (40) hours will be established as of the employment date.
(d) Holiday Leave. EMPLOYEE shall be granted the following holidays:

New Year’s Day, Martin Luther King Day, President’s Day, Memorial Day, Juneteenth, Fourth of July, Labor Day, Veterans Day, Thanksgiving, Day after Thanksgiving, Christmas Eve, Christmas and New Year’s Eve. In addition, one (1) floating holiday will be credited to 17 6
EMPLOYEE’s Holiday Leave bank July 1st each year. If the City Council recognizes an additional holiday for City employees, said holiday shall be extended to EMPLOYEE. Holiday leave must be used and deducted from accruals in increments of no less than one hour for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours.
(e) Bereavement Leave. In the event of the death of a member of EMPLOYEE’s family, including EMPLOYEE’s spouse, domestic partner, mother, father, brother, sister, child, grandchild, or grandparent or any one of the same relatives of EMPLOYEE’s spouse or domestic partner, EMPLOYEE shall be allowed thirty (30) hours of bereavement leave for each death of a family member. Bereavement leave must be used and deducted from the total allowed hours in increments of no less than five hours for time missed from normal work hours which for purposes of this section are deemed to be normal City operating hours. In the event of the death of a spouse or multiple family deaths occurring within a 24-hour period, EMPLOYEE shall be allowed forty (40) hours of total bereavement leave for this unfortunate event.

2.11 Regional and Professional Activities. CITY desires that EMPLOYEE be reasonably active in professional organizations that will promote the standing of CITY and advance CITY’s goals, interests and policy objectives while also providing EMPLOYEE with opportunities for professional development that will enhance EMPLOYEE’S ability to serve CITY and perform EMPLOYEE’S duties as City Manager. Toward this end, EMPLOYEE may, upon reasonable notice to the City Council, join professional organizations such as ICMA and participate in the activities of such organizations insofar as such participation promotes the interests of CITY and does not unduly interfere with the performance of EMPLOYEE’s duties as City Manager. CITY agrees to budget and, consistent with that budget, pay for the dues, conference and travel fees, and subscriptions of the City Manager necessary for EMPLOYEE’S participation in such national, statewide, regional or professional organizations.

2.12 Education Pay. The CITY agrees to pay to EMPLOYEE the sum of Two Hundred and Fifty Dollars ($250.00) per month for a Master’s Degree.

2.13 Citywide Reduction in Salaries. The City Council may reduce the City Manager’s Base Salary as part of a City-wide reduction in City employee salaries. If the City Council reduces the Base Salary or any other financial benefit of the City Manager in a percentage greater than the average reduction of all executive managers, such action shall constitute a termination of this Agreement without Cause under Section 6.1 of this Agreement, and City Manager shall be entitled to Severance.
18 7

3. CITY COUNCIL COMMITMENTS.

3.1 Subordinates. Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consultants solely through the City Manager or the City Manager’s designee, and neither the City Council nor any member thereof shall give directions to any subordinate of the City Manager, either publicly or privately.

3.2 Appointment/Removal. No member of the City Council will order or pressure the City Manager to appoint or remove any person to any office or employment under the supervision and control of the City Manager.

3.3 Interference. Neither the City Council nor any of its members shall interfere with the execution of powers and duties of the City Manager, as specified in the City’s Municipal Code, this Agreement, or any other lawfully adopted and authorized document.

3.4 Direction and Authority. The City Manager shall take orders and instructions from the City Council only when it is sitting as a body in a lawfully held meeting. Nothing above shall be construed as restricting the ability of the City Council, when sitting as a body in a lawfully held meeting, from exercising any power or authority granted to it under state law or the City’s Municipal Code.

4. ILLNESS OR INJURY; DISABILITY AND DEATH.

4.1 Cessation of Work Due to Injury or Disability. In addition to any right of termination set forth under Sections 1.2 (Employment With CITY “At-Will”) and Section 6 (“Termination”), CITY also reserves the right to terminate EMPLOYEE’s employment along with this Agreement if EMPLOYEE ceases to work as a result of injury or disability which results in EMPLOYEE being unable to perform the essential duties of the City Manager position, with or without accommodation, for a period of six (6) consecutive months or more, as documented by a healthcare provider. The foregoing notwithstanding, CITY may terminate EMPLOYEE if the disability poses a direct threat to CITY, EMPLOYEE or any other employees working for CITY and any reasonable accommodation attempted by CITY would not mitigate or eliminate such a threat. CITY will not provide a severance payment if EMPLOYEE is terminated under this Section of this Agreement.

4.2 Compensation for Work-Related Illness or Injury. In the event EMPLOYEE suffers a physical or mental illness or disability arising out of the course of employment, EMPLOYEE’s exclusive remedy or remedies against CITY for such illness, injury or disability shall be those legally required under the workers’ compensation laws of the State of California. 19 8

4.3 Medical Examination. EMPLOYEE agrees to submit to a medical and/or psychological examination by a qualified physician or psychiatrist selected by CITY, in the event a decision must be made under Sections 4.1 through 4.2. CITY and EMPLOYEE shall receive a copy of all medical reports related to the examination.

4.4 Death of EMPLOYEE. This Agreement along with EMPLOYEE’s employment shall terminate automatically upon EMPLOYEE’s death.

4.5 Compensation Upon Termination. Except as otherwise provided under this Agreement, if EMPLOYEE’s employment is terminated pursuant to this Section 4 (Illness or Injury; Disability and Death), CITY shall pay EMPLOYEE all Base Salary, benefits, and compensation due and owing EMPLOYEE through the last day actually worked. If termination is caused by EMPLOYEE’s death, CITY shall provide the compensation and benefits otherwise due EMPLOYEE to EMPLOYEE’s executor, administrator, heirs, personal representatives, successors, and assigns. CITY will not provide for severance pay if EMPLOYEE is terminated under the provisions of Section 4.1 through 4.5.

5. RETIREMENT.

5.1 Public Employees Retirement System (PERS). CITY shall provide EMPLOYEE with retirement benefits through the California Public Employees Retirement System (CalPERS).

Such benefits are subject to applicable law and regulations, including but not limited to the Public Employees’ Retirement Law (PERL), the Public Employees’ Pension Reform Act (PEPRA) of 2013, and CalPERS rules. For the purpose of CalPERS retirement benefits, EMPLOYEE shall be a “Classic Member”. CITY shall pay the CITY’s share of CalPERS contribution and EMPLOYEE shall pay her share for participation in CalPERS. Retirement formulas and calculations are based upon a combination of the employee’s age, years of service, and annual pensionable compensation.

Classic Members are calculated at 2% @ 60 and three-year compensation average. Pensionable compensation caps on annual salary are used to calculate final compensation.

6. TERMINATION.

6.1 Termination by CITY for Convenience and/or Without Cause.

EMPLOYEE is appointed and serves at the pleasure of the COUNCIL as an “at-will” employee.

COUNCIL may terminate EMPLOYEE at any time for convenience and without cause. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the COUNCIL and CITY to terminate this Agreement and the employment of EMPLOYEE, with or without cause or for convenience. At the conclusion of EMPLOYEE’S employment whether by resignation or termination either with or without cause, EMPLOYEE shall be entitled to be compensated, subject 20 9
to Section 2 above, for accrued and unused vacation, sick leave and administrative leave, if any, through the effective date of termination. In the event EMPLOYEE is terminated without cause, at or during such time that EMPLOYEE is willing and able to perform her duties under this Agreement, then in that event, CITY agrees to pay EMPLOYEE a severance equal to the lesser of six (6) months base salary or EMPLOYEE’s monthly base salary multiplied by the number of months remaining on the unexpired term of this Agreement, less any and all applicable or legally required deductions. The payment of severance is conditioned upon EMPLOYEE first executing a full and final release of any and all actual or potential claims (including Civil Code Section 1542 release) that EMPLOYEE has or could have against CITY, its officials, employees and agents, acceptable to CITY in form and content. Notwithstanding anything herein to the contrary, the maximum severance EMPLOYEE may receive under this Agreement shall not exceed the limitations provided for in Government Code Section 53260-53264 or other applicable law.

6.2 Termination by EMPLOYEE. EMPLOYEE may terminate EMPLOYEE’S employment for any reason, and at any time, with or without cause, by providing CITY with written notice. In such event, CITY shall have the option, in its complete discretion, to make EMPLOYEE’s termination effective upon any date preceding any notice period provided by EMPLOYEE, provided CITY pays EMPLOYEE all compensation due and owing EMPLOYEE through the last day actually worked, plus an amount equal to the Base Salary EMPLOYEE would have earned through the balance of the notice period, which shall not exceed thirty (30) days. In the event EMPLOYEE terminates her employment or this Agreement expires by its own terms, then EMPLOYEE shall not be entitled to any severance.

6.3 Termination for Cause by CITY. CITY may immediately terminate EMPLOYEE’s employment with CITY and this Agreement at any time by providing EMPLOYEE with written notice of EMPLOYEE’S termination for cause and the reason(s) for the termination. In the event the City and EMPLOYEE are unable to resolve any disagreement regarding the cause for EMPLOYEE’S termination, the Parties agree to binding arbitration as provided in Section 6.6. No “severance payment” shall be paid in the event EMPLOYEE’s employment is terminated for cause, except that CITY shall pay EMPLOYEE for EMPLOYEE’S accrued and unused vacation, sick and administrative leave, as provided for in this Agreement. The term “cause” shall be defined to include any misconduct materially related to performance of official duties, including but not limited to any of the following: 1) breach of this Agreement, 2) willful or persistent breach of duties, 3) resume fraud or other acts of material dishonesty, 4) unauthorized absence or leave not otherwise supported by valid documentation from a healthcare provider, 5) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality), conviction of a misdemeanor DUI, or conviction of a felony under California law (the CITY may, in its discretion, place EMPLOYEE on paid or unpaid administrative leave until resolution of charges brought against EMPLOYEE), 6) violation of the CITY’s anti-harassment policies and/or a finding that EMPLOYEE engaged in legally prohibited personal acts of harassment, 21 10
discrimination, and/or retaliation against a CITY official, CITY employee, or any individual protected by state or federal laws prohibiting harassment, discrimination, and/or retaliation, 7) violation of the CITY’s Municipal Code, ordinances, rules or regulations, including but not limited to the CITY’s Rules and Regulations and Administrative Policies, 8) use or possession of illegal drugs, 9) engaging in conduct tending to bring embarrassment or disrepute to the CITY, 10) any illegal or unethical act involving personal gain, 11) pattern of repeated, willful and intentional failure to carry out materially significant and legally constituted directions or policy decisions of the City Council or City Manager, and 12) gross misfeasance or gross malfeasance. If the CITY COUNCIL terminates EMPLOYEE for cause, EMPLOYEE shall not be entitled to assume any further position or employment with the CITY.

6.4 Termination Obligation. EMPLOYEE agrees that all property, including without limitation, all equipment, tangible property, proprietary information, documents, records, notes, contracts, and computer-generated materials furnished to or prepared by EMPLOYEE incident to EMPLOYEE’S employment are the property of CITY and shall be returned immediately to CITY upon termination of EMPLOYEE’s employment. EMPLOYEE’s obligations under this subsection shall survive the termination of EMPLOYEE’S employment and the expiration or early termination of this Agreement.

6.5 Benefits Upon Termination. All benefits to which EMPLOYEE is entitled under this Agreement shall cease upon EMPLOYEE’s termination in accordance with this Section 6 (Termination), unless expressly continued under this Agreement or unless otherwise required by law.

6.6 Arbitration of Disputes. Any claim, dispute, or controversy which would otherwise require or allow resort to any court or other governmental dispute resolution forum between EMPLOYEE and CITY arising from, related to, or having any relationship or connection whatsoever with EMPLOYEE’S employment or the terms of this Agreement, whether based on tort, contract, statutory, or equitable law, or otherwise, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act, in conformity with the procedures of the California Arbitration Act (Cal. Code Civ. Proc. sec 1280 et seq.), including Section 1283.05 and all of the Act’s other mandatory and permissive rights to discovery; provided, however, that: in addition to requirements imposed by law, any arbitrator herein shall be a retired California Superior Court Judge and shall be subject to disqualification on the same grounds as would apply to a judge of such court. If for any reason the Parties cannot agree to an arbitrator, either Party may apply to a court of competent jurisdiction with authority over the location where the arbitration will be conducted for appointment of a neutral arbitrator. The court shall then appoint an arbitrator, who shall act under this Agreement with the same force and effect as if the Parties had selected the arbitrator by mutual agreement. The arbitrator shall then prescribe the rules and procedures for the arbitration process in accordance with laws that are applicable to the claim being raised. EMPLOYEE understands that by agreeing to this binding arbitration 22 11
provision, both CITY and EMPLOYEE give up their right to a trial by jury. In arbitration, the parties shall have the right to conduct adequate civil discovery, bring dispositive motions, and present witnesses and evidence as needed to present their cases and defenses, and any disputes in this regard shall be resolved by the arbitrator.

7. CONFLICT OF INTEREST.

7.1 EMPLOYEE shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of CITY, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the COUNCIL.

EMPLOYEE shall also be subject to the conflict of interest provisions of the Government Code of the State of California, CITY’s Municipal Code, and any other conflict of interest regulations applicable to EMPLOYEE’s employment with CITY. For and during the Term of this Agreement and any extension term, EMPLOYEE further agrees that except for a personal residence or residential property acquired or held for future use as EMPLOYEE’S personal residence, EMPLOYEE will not invest in any other real estate or property improvements within the corporate limits of CITY without the prior consent of the COUNCIL.

8. GENERAL PROVISIONS.

8.1 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below or at the last known address maintained in EMPLOYEE’s personnel file. EMPLOYEE agrees to notify CITY in writing of any change in EMPLOYEE’S address during EMPLOYEE’S employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

CITY’s Notice Address:
99 E. Ramsey Street
Banning, CA 92220
Attn: Mayor
EMPLOYEE’s Notice Address:
[At EMPLOYEE’s address on file with City]
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8.2 Indemnification. Subject to, in accordance with, and to the extent provided by the California Tort Claims Act (Government Code Section 810 et seq. including, but not limited to, Sections 825, 995 and 995.2) CITY will indemnify, defend, and hold EMPLOYEE harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any negligent act or omission occurring within the scope of EMPLOYEE’s employment during the Term of this Agreement or any extension term. CITY shall have the discretion to compromise or settle any such claim, demand or action and pay the amount of any settlement or judgment rendered thereon.

Notwithstanding the foregoing, CITY shall have no duty to indemnify, defend, or hold EMPLOYEE harmless from any criminal proceeding, or with regard to any civil, criminal or administrative proceeding initiated by EMPLOYEE.

8.3 Bonding. CITY shall bear the full cost of any fidelity or other bonds required of the City Manager under any laws or ordinance.

8.4 Entire Agreement. This Agreement is intended to be the final, complete, and exclusive statement of the terms of EMPLOYEE’s employment by CITY. This Agreement supersedes all other prior and contemporaneous Agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of EMPLOYEE, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to EMPLOYEE and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control.

8.5 Amendments. This Agreement may not be amended except in a written document signed by EMPLOYEE, approved by COUNCIL and signed by the City Attorney.

8.6 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.

8.7 Assignment. EMPLOYEE shall not assign any rights or obligations under this Agreement. CITY may, upon prior written notice to EMPLOYEE, assign its rights and obligations hereunder.

8.8 Severability. If any court of competent jurisdiction holds any provision, section, sentence or phrase of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.
24 13

8.9 Governing Law. This Agreement is entered into and to be performed in Riverside County, California and shall be governed by, construed and enforced in accordance with the laws of the State of California. Subject to Section 6, the Parties agree that in the event of any litigation, venue shall be in Riverside County, California.

8.10 Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit or against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement.

8.11 Statutory Obligations; Abuse of Office or Position. Notwithstanding anything in this Agreement to the contrary, pursuant to California Government Code Sections 53243, 53243.1 and 53243.2, which became effective on January 1, 2012, if EMPLOYEE is convicted of a crime involving an abuse of EMPLOYEE’S office or position, all of the following shall apply: (1) if EMPLOYEE is provided with an administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; (2) if CITY pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, as CITY is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; and (3) if this Agreement is terminated, any cash settlement related to the termination of EMPLOYEE by CITY, said amount shall be fully reimbursed to CITY or shall be void if not yet paid to EMPLOYEE. For this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under the color of authority; or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the California Penal Code.

8.12 Incorporation of Recitals. The Parties repeat and incorporate the recitals set forth above as if fully set forth herein.

8.13 State & Federal Law. The terms of this Agreement shall be applied only as consistent with State and Federal law.

8.14 Acknowledgment. EMPLOYEE acknowledges that EMPLOYEE has had the opportunity to consult legal counsel in regard to this Agreement, that EMPLOYEE has read and understands this Agreement, that EMPLOYEE is fully aware of its legal effect, and that EMPLOYEE has entered into it freely and voluntarily and based on EMPLOYEE’S own judgment and not on any representations or promises other than those contained in this Agreement.
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“CITY”

CITY OF BANNING
By:________________________
Richard Royce, Mayor
“EMPLOYEE”
By:________________________
Elizabeth Gibbs
ATTEST:

By:________________________
Sandra Calderon, City Clerk
APPROVED AS TO FORM:

By:___________________________
John O. Pinkney, City Attorney
26 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
MEETING DATE: February 24, 2026
SUBJECT: Proclamation for Black History Month.

RECOMMENDATION:

Proclaim February 2026 Black History Month.

BACKGROUND:

February is Black History Month.

JUSTIFICATION:

N/A
FISCAL IMPACT:

None
ALTERNATIVES:

N/A
BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Proclamation_-_Black_History_Month.pdf
27 City of Banning

OFFICE OF THE MAYOR
WHEREAS, the United States was established upon the profound but simple idea that all people are created equal and should be treated equally throughout their lives; and, WHEREAS, in 1926, Dr. Carter G. Woodson, a Harvard Scholar, established the observance of Black and African American History, to reveal the contributions, achievements, and involvement of Black and African American people in the development of our American democracy; and,
WHEREAS, Black and African Americans have made innumerable contributions that have enriched America and the lives of every American; and every American should acknowledge and express thankfulness for these contributions; and,
WHEREAS, throughout the arc of history to the present day, Black and African Americans have experienced and endured the inhumanity of injustices and inequities; and, WHEREAS, we must acknowledge and pay tribute to the generations of individuals who struggled with adversity, risked their lives for justice, fought a fight that at times seemed impossible to win, and continue to fight for equality; and, WHEREAS, Black and African Americans are engaged throughout our community as our friends and neighbors, scholars, teachers, business people, leaders, and contributors to our quality of life.

NOW THEREFORE, I, Richard Royce, Mayor of the City of Banning, do hereby proclaim the month of February 2026 as
Black History Month
BE IT PROCLAIMED this 24th day of February, 2024.

Richard Royce, Mayor
28 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
MEETING DATE: February 24, 2026
SUBJECT: Consideration and approval of the meeting minutes of the Workshop held on January 13, 2026, and the Special Meeting held on January 28, 2026.

RECOMMENDATION:

Approve the meeting minutes of the Workshop held on January 13, 2026, and the Special Meeting held on January 28, 2026.

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. 2026 01 13_City Council_Workshop_DRAFT.pdf

2. 2026 01 28_Special Meeting_Minutes_DRAFT.pdf
29 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (WORKSHOP)

CITY OF BANNING, CALIFORNIA
January 13, 2026 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.

1. CALL TO ORDER – 4:01 p.m.

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

2. WORKSHOP

2.1 Review of the Proposed Updates to the City of Banning Development Impact Fees Recommendation: Provide direction to staff and the City's consultant Nate Smith, Deputy Director of Public Works/City Engineer introduced the Development Impact Fee Workshop.

The purpose of the workshop was to present information, provide background, and seek direction from the Council regarding the implementation of development impact fees Development impact fees are charges to new development to mitigate citywide impacts. They address community-wide impacts beyond project-adjacent improvements, such as increased use of downtown areas and schools. These fees are authorized by the state under the Mitigation Fee Act (AB 1600 and Government Code 66000), allowing developers to either pay the fee or build a project from the Nexus study in lieu of payment, with credit given. AB 602 recently modified the Act, requiring a reasonable relationship between development types and fees. The update aims to comply with AB 602, which was not in place during the last fee study adoption.

Current fees were adopted in 2019 via resolution 2019-112 and ordinance 1551, covering fire, general facilities, parks, police, traffic, wastewater, and water. State regulations mandate updates at least every eight years. Matrix Consulting was contracted via Resolution 2024-92 for DIF updates, following their previous work on user fee updates.

Khushboo Ingle from Matrix Consulting presented the impact fee analysis. The City last conducted a study in 2019, and new regulations require analysis every eight years, aligning with the City's 2026 timeline. The analysis uses 2040 as the horizon timeframe. A new electric impact fee is proposed due to the City's ownership of the infrastructure. The study also compares fees to other jurisdictions. The goal is to ensure future development proportionately pays for infrastructure impacts, lessening the burden on the general fund and complying with state regulations, specifically AB 1600's nexus criteria and AB 602's 30 2
requirement for residential fees to be proportional to square footage. This shifts the current per-dwelling unit basis to a per-square-foot basis. The study must be reevaluated every eight years.

The methodology involves projecting future growth using City and regional documents and then examining City master plans and other documents to determine infrastructure impacts. The study considers all current impact fees and the proposed electric impact fee, focusing on capital costs like infrastructure, facilities, and vehicles for each service area (fire, police, etc.), excluding staffing and operational costs.

The electric impact fee results cover five land use types: single-family, multifamily, commercial, office, and industrial. There is no current existing fee for this. The study calculates the maximum justifiable fee, which is the maximum fee allowed under state law. The City can set the fee lower than this amount.

The single-family and multifamily fire fees were converted to a per-square-foot basis. There is a significant difference in under-recovery levels. This variance is common when switching to square footage for residential fees. The non-residential side shows less of a difference.

For general facilities, the residential side shows a subsidy, while the non-residential side is slightly over the maximum justifiable fee. The city must lower the fee to at least the maximum justifiable amount, but could lower it further.

Parks and recreation fees are typically only charged on residential land uses, as residents are the primary users of the infrastructure. It is a common fee that shows a larger under-recovery.

Similar to fire, police impact fees show a larger impact on residential land uses, but not as large of a difference as with non-residential land uses.

Comparing the current traffic and transportation fee is difficult because it is broken down by every possible land use type, making it complicated to administer. The goal is to make it consistent with other impact fees for easier calculation for developers
For wastewater, there are set fees for single-family and multifamily. The multifamily maximum justifiable fee is lower than the current fee, requiring the City to lower it to that amount or lower. The non-residential fee is currently calculated specifically for each project, but the process aims to establish a fixed fee.

There is a larger discrepancy between the current fee and the maximum justifiable fee. The current fees are the same as those calculated in 2019, which is important to consider given cost increases since then.

The nexus analysis calculates the maximum fee, but the council has the policy decision to set fees lower, balancing growth and development with infrastructure needs.

Impact fees can only fund infrastructure needs, excluding staffing and operational costs. It is recommended to adopt annual inflationary factors, using a construction cost index factor instead of CPI, as it is more closely tied to infrastructure and development costs.

Nate Smith explained that the fees are increasing due to significant cost escalations since 2019. The land use basis is similar to 2019, with project costs updated to reflect current field conditions. Construction costs have increased more than general inflation. The DIF is paid by all new development, including large subdivisions and single homes, applied uniformly on a per-square-foot basis.

Development agreements can impact DIF rates or applicability. For example, Atwell's agreement includes providing open space in lieu of paying the parks DIF. Previous resolutions allowed CPIU adjustments, but Atwell's development agreement locks their DIF in for 10-year intervals, so the DIF has remained static since 2019.

The fees in the report are the maximum justifiable fees. The Council can reduce the fees, but cannot raise them or transfer them between land use types. The movement to square footage is mandated by AB 602, which is driving residential adjustments. Currently, smaller homes pay a greater proportion of DIF than larger homes, which AB 602 aims to correct.

Police, fire, general facilities, and parks DIF rates are based on existing facilities and equipment needing replacement over 25 years. Traffic, sewer, water, and electric rates are based on adopted Nexus studies and capital lists. The land use breakdown (single-family, multifamily, commercial, office, industrial) matches WRCOG's TUMF program and is similar to RCA's MSHCP breakdown, providing alignment and predictability.
31 3
Implementing DIF is a City Council policy direction. Staff prepare the report to identify needs and maximum costs, and the Council decides how to proceed. Options include implementing the full DIF, partial fees, staggered fees, or reducing/removing fee categories. Increased development fees can impact economic growth and development.

If the Council chooses not to implement the full DIF, funding may be needed from other sources or infrastructure projects may need to be removed. Utilities could be covered by user rates, grants, or the general fund.

Council Member Flynn asked about the electric impact fee, noting the lack of a current fee and limited discussion in the report. Art Vela, Interim City Manager explained that electric impact fees are not industry standard, but the City has always had them for other utilities. The fee was added to the scope of work to align with City standard practice and facilitate project fee collection. The lack of a fee in the past was attributed to it not being industry standard.

Council Questions and Discussion
● Council Member Flynn inquired about the electric impact fee, comparative surveys, and fire impact fees
● The electric impact fee is new, as it was not industry standard in the past ● Council Member Flynn noted that the City's current residential fire impact fees are on the lower end compared to surrounding jurisdictions and suggested raising them ● Council discussed the approach to setting fees, considering the maximum justifiable fee versus the impact on economic development
● The Council wants to avoid being the highest of all surrounding cities Comparative Analysis
● WRCOG does a comparative analysis every two years, looking at prototype buildings and impact fees by jurisdiction
● As of 2022, Banning's current fee structure is below average ● The updates would likely put Banning on the above-average side Timeline and Next Steps
● The next step is to return to the City Council to adopt the fees ● The public hearing is scheduled for February 10th
● The second reading would then happen on February 24th ● Staff needs direction on where to set the fees
● Council agreed to adjust for overcharges, introduce the electric fee, and consider the fire fee ● The council aims for a happy medium between competitiveness and covering costs

3. PUBLIC COMMENTS - Agenda Items Only
A letter was received and read from Building Industry Association of Southern California, Inc. (Attachment 1)

4. ADJOURNMENT
A motion Council Member Flynn to adjourn the Special City Council meeting (workshop), Seconded by Mayor Pro Tem Barrington. Meeting adjourned at 4:59 p.m.

Minutes prepared by:
32 4
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/276?view_id=1&redirect=true 33 January 13, 2025
Mayor Richard Royce
City of Banning
99E. Ramsey Street
Banning, CA. 92220
RE: Agenda Item 2.1: Review of the Proposed Updates to the City if Banning Development Impact Fees
Honorable Mayor and Councilmembers:

On behalf of the Riverside County Chapter of the Building Industry Association of Southern California and our hundreds of home builders, trade partners, and suppliers throughout our region, we are writing today to respectfully request continuance and stakeholder consultation on Agenda Item 2.1: Review of the Proposed Updates to the City of Banning Development Impact Fees.

The Riverside County Chapter of the Building Industry Association of Southern California is the organization that represents the building community in western Riverside County and specifically Banning. Our organization was only made aware of the draft nexus study and this agenda item on January 8, 2026 and the city has provided no briefing or consultation to impacted stakeholders. The proposal before you will have significant cost increases and effect on the home building industry and impede the City’s ability to achieve its housing goals.

Typically, our industry is engaged in these discussions with local jurisdictions months in advance to make sure there is a clear understanding and careful vetting of the assumptions in the study and their potential cost impact on housing production. Given the significance of the proposed increases and the minimal time industry has had to review the materials, we believe further stakeholder consultation is in order.

We respectfully ask for your continuation of Agenda Item 2.1: Review of the Proposed Updates to the City of Banning Development Impact Fees. Additionally, we ask the city to host a workshop to give our industry adequate time to review the data and understand its impact on housing production in Banning.

Given the housing affordability and access crisis we believe this is a reasonable request.

Sincerely,
Lou Monville
Senior Vice President, Riverside County Chapter
Building Industry Association of Southern California
Attachment 1
34 1

MINUTES
CITY COUNCIL – SPECIAL MEETING

CITY OF BANNING, CALIFORNIA
January 28, 2026 Council Chambers
5:00 p.m. 99 E. Ramsey Street
In Chambers Banning, CA 92220
The following information comprises the agenda 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 – 5:04 p.m.

1.1 PLEADGE OF ALLEGIANCE

1.2 ROLL CALL
COUNCIL MEMBERS PRESENT: Mayor Pro Tem Cynthia Barrington Council Member Sheri Flynn
Council Member Leroy Miller
Mayor Richard Royce
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: John O. Pinkney, City Attorney
Art Vela, Interim City Manager
Mark Staples, Planning Manager
Nate Smith, Deputy Director of Public Works/City Engineer Todd Hopkins, Assistant Chief – Riverside Unit
Vickie Sellers, City Clerk
Sandra Calderon, Deputy City Clerk

2. PUBLIC COMMENTS - Closed Session Items Only
None

3. CLOSED SESSION

2.1 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 and Industrial Enterprises, LLC. Under Negotiations: Price and Terms of payment. 35 2
City Attorney John Pinkney said Council did not meet on Closed Session

4. PUBLIC COMMENTS
Public comments on items not on the agenda were not taken due to the Special Meeting.

5. CITY ATTORNEY'S REPORT
City Attorney John Pinkney reviewed procedural guidelines from the manual, emphasizing courtesy, respect, and order during the meeting.

Mayor Royce announced the public hearing for items 6.1 and 6.2, the proposed Sunset Crossroads Specific Plan project, reminding the public of the previously stated guidelines. The process would involve a staff presentation, council questions, and then public testimony limited to two minutes per person, with a suggestion for groups to appoint a spokesperson. Mr. Staples, Planning Manager was then introduced to present the staff report.

6. PUBLIC HEARINGS

6.1 Consideration of Applications By NP Banning Industrial, LLC for the Sunset Crossroads Project, including (1) a Specific Plan (Case No. SP 20-2002) to Allow for the Development of Industrial and Commercial Uses on 533.8-acres of Land Located South of I-10 and the Union Pacific Railroad, and West of Sunset Avenue (Specific Plan Area); (2) a General Plan Amendment (Case No. GPA 20-2501) and Zone Change (Case No. ZC 20-3502) to Amend the General Plan Land Use and Zoning of the Specific Plan Area to General Commercial (GC), Industrial (I), Opens Space-Parks (OS-P), and Open Space-Resources (OS-R), including Pre-zoning for Annexation of Portions of the Specific Plan Area into the City of Banning’s Jurisdictional Boundary; (3) a Development Agreement to Establish Vested Development Rights in Exchange for Public Benefits as Specified in the Agreement; (4) a Tentative Parcel Map (Case No. TPM 38118) for a Subdivision of the Specific Plan Area into Thirty-four Parcels and Five Lettered Lots Ranging in Size from One Acre to Seventy-eight Acres Consistent with the Nineteen Planning Areas in the Specific Plan; and (5) a Final Environmental Impact Report (Sch No. 2021020011) Including Findings of Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and Reporting Program.

Recommendation: Deny the Project Applications as Recommended by the Planning Commission by Adopting:
(1) Resolution 2026-26 Rejecting the Certification of an Environmental Impact Report (EIR), SCH No. 2021020011, Including Related Findings, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program; and
(2) Resolution 2026-27 Denying Applications by NP Banning Industrial LLC for the Sunset Crossroads Project, Including General Plan Amendment (No. 20-2501), Zone Change (No. 20-3502), Specific Plan (No. 20-2002), Tentative Parcel Map (TPM 38118) and a Development Agreement, for the Development of Industrial and Commercial Uses on a 533.8-acre Project Site Located South of I-10/the Union Pacific Railroad and West of Sunset Avenue.

Alternatively, Approve the Project Applications as recommended by Staff by Adopting:
(1) Resolution 2026-28 Certifying the Environmental Impact Report, SCH No. 2021020011, Including Related Findings, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program; and
(2) Resolution 2026-29 Approving the General Plan Amendment (No. 20-2501); and (3) Resolution 2026-30 Approving Annexation of 253.7 Acres into the City of Banning; and (4) Resolution 2026-31 Approving the Tentative Parcel Map (TPM 38118); and (5) Introducing by Title Only the Following Ordinances:

Ordinance 1618, Approving Zone Change (No. 20-3502);
Ordinance 1619, Approving Specific Plan (No. 20-2002); and Ordinance 1620, Approving a Development Agreement Between NP Banning Industrial 36 3
LLC and the City of Banning.

Mark Staples outlined the proposed applications for the Sunset Crossroads project, including General Plan Amendment 20-2501, Zone Change 20-3502, Specific Plan 20-2002, Tenant Parcel Map 38118, pre-annexation zoning and development agreement, and Environmental Assessment 20-1506 (State Clearinghouse number 2021-10232. 2021-020011), along with General Plan Amendment 22-2502 and Zone Change 22-3502 for the Mt. San Jacinto Community College District. The project site includes a northern half within the city boundary and a southern half in unincorporated Riverside County, requiring annexation. The northern half is to be re-designated as a specific plan, and the southern half pre-zoned as such, pending LAFCO approval. Existing general plan and zoning show commercial areas to the north and residential zoning throughout, with open space. Proposed changes maintain commercial to the north, convert much of the residential area to industrial, and preserve open space for natural drainage.

Planning Area 2, a shaded red area, would require a site-specific change to general commercial at a later date. The Sunset Crossroads project proposes commercial and industrial uses on 533.8 acres, including 268,400 square feet of commercial space (medical office, professional office, education, recreation), a 125-room hotel, and up to 5 million square feet of industrial uses (including up to 330 square feet of cold storage). The specific plan text serves as the project zoning document, containing land uses, development standards, design guidelines, and implementation provisions. Planning Area 1 is the general commercial area, while Planning Area 2 (33.8 acres) will need a future amendment for general commercial designation.

Examples of development standards from the specific plan (Chapter 3) were presented, including general commercial and industrial standards for lot size and setbacks. Mark Staples then introduced Nate Smith, Deputy Director of Public Works/City Engineer, to discuss circulation and traffic improvements.

Nate Smith discussed public works improvements related to the city's master plan. The project would require constructing Sunset Avenue to its full width from the Union Pacific Railroad to Westward Avenue, with a partial width improvement south of that point and a bridge crossing over Smith Creek. Dedications are required on Highland Home Road and Sun Lakes Boulevard. Ramp improvements on Sunset Avenue and intersection improvements at Sunset Lincoln, Sunset and Westward, Sun Lakes and Highland Home, and Ramsey Street are planned. These improvements align with circulation element roadways, intersections, and the traffic development impact fee program.

Roadway cross-sections are generally consistent with adopted city sections, with variations in parkway widths. Bike lanes and facilities are proposed. The current adopted truck route Resolution 2005-91) was presented, noting that roadways are not automatically truck routes and local serving businesses are exempt. The city is working towards AB 98 compliance with the general plan update by January 1, 2030.

A truck management plan is required to address community concerns about excessive trucks near Sun Lakes. The plan aims to divert traffic to Sunset Avenue towards the I-10 trade corridor, including signage, lease provisions with penalties for non-compliance, and physical improvements to discourage turns towards Sun Lakes. A traffic coordinator contact with the city and increased enforcement by Banning PD are also planned.

The project would provide additional water system redundancy and looping, benefiting the Sun Lakes community. An alternate water source would be provided via an 18-inch main within Westward Avenue. Non-potable water will be used for landscaping, with extensions to Sun Lakes and Sunset Avenue, and potentially to Sunset and Bobcat. A new gravity sewer backbone line from the Westward Avenue lift station to Sunset is required, eventually leading to the decommissioning of the lift station, which would reduce energy and maintenance demands.

All drainage on the project is set to be self-contained, with no major city-owned drainage system proposed. Stormwater must comply with the Banning-Venie Code, Regional Water Quality Board 37 4
control measures, and permits from CDFW, U.S. Fish and Wildlife, and Army Corps. The grading plan must comply with Title 18 of the Banning Municipal Code and environmental agency permits, with grading proposed to balance on site.

The Public Works Department developed conditions to ensure necessary infrastructure is built before each building's operation, allowing for flexibility in development sequencing based on market demands. The Planning Commission suggested adding conditions for ramp improvements at I-10 and Sunset (westbound and eastbound right turn lanes) and a traffic signal at Ramsey Street and Highland Home Avenue. These locations are within the city's traffic diff, making the project eligible for diff credit and reimbursement. Nate Smith concluded his presentation and handed it back to Mark Staples.

Mark Staples resumed, discussing design guidelines in Chapter 4 of the specific plan, which aim to ensure quality and character throughout the project. These guidelines assist developers, tenants, builders, engineers, architects, and landscape architects in achieving the desired design. They provide an aesthetic benchmark for future applications, encourage energy-efficient design, and ensure compliance with the City of Banning General Plan and ordinances. Chapter 5 includes implementation measures for land use and development guidelines, assisting city staff in project review.

A tentative parcel map subdivides the industrial and commercial areas into 34 lots (ranging from one to 78 acres) and five lettered lots for common areas or public purposes. The map has been updated to remove financing conveyance purposes and include correct APM numbers. The northern half and southern half (currently in Riverside County) of the map were shown. Mark Staples then introduced Interim City Manager Art Vela to discuss the development agreement.

Interim City Mager Art Vela highlighted notable terms in the development agreement, including an $8 million public benefit fee ($1.44 per square foot) paid in installments, with the first million due before grading permit issuance. The developer can receive up to $2 million in credits towards the $8 million for bringing in a sales tax-generating tenant, such as a fulfillment center. The agreement also includes an accelerated transportation development impact fee payment of $5.1 million for improvements to the Sun Lakes Boulevard extension, intended to help the city cash flow the project.

The developer is offering land for a fire station site, water tank site, electric substation site, and reverse osmosis site, estimated to be worth $5 to $7 million, at no cost to the city. They will also contribute $500,000 for the design and environmental review of a new substation, with total contributions not to exceed $12.5 million, which is estimated to cover the entire construction. This is crucial because the existing Midway substation (20 MVA) is outdated, and the electric utility lacks the funds for replacement. The developer's contribution would fund both the replacement and the capacity needed for their project.

The developer will be reimbursed for the city's share of the substation, partly through the city's transformer equipment and labor (estimated at $2.5 million), and the balance through rate revenues. The current electric rate structure supports this payback. The developer is also dedicating a five-acre park, which they will design, construct, and maintain.

The development agreement mandates a minimum 100-foot buffer between buildings and Bobcat Road, including a 20-foot landscape area. Facility funding includes a $15 million fire station contribution (covering design and construction) and $1 million for fire station equipment (a new fire truck), plus the electric substation contribution. A $750,000 grant contribution can be used to beautify downtown or fund a small business assistance program, such as a revolving loan.

The development agreement includes the formation of a CFD for a special tax on industrial buildings at 20 cents per square foot annually, with an annual escalator and no sunset date. The developer benefits from a seven-year freeze on new impact fees (excluding increases in existing categories). The developer is required to construct or begin construction of 100,000 square feet of commercial retail within 24 months of the first industrial building occupancy, with a $500,000 38 5
payment to the city every six months if they fail to meet this commitment. The agreement calls for at least two 100,000 square foot retailers, and the developer must submit an amendment to the specific plan and conduct an environmental review to allow retail and commercial in planning area two.

The development agreement was made public on September 10th and November 5th, 2025, with changes made based on Planning Commission discussions. Further revisions have been made in collaboration with the city attorney's office and the developer's team, including a tolling period (to be explained by City Attorney John Pinkney).

A 17 cents per square foot cap on permit fees has been removed due to refined calculations. A provision related to a tax-sharing and reimbursement agreement for the electric substation has also been removed, as the electric rate structure now supports the city's share of the substation cost.

Various other changes clarify the intent of specific provisions.

Interim City Manager Vela presented a table summarizing the fiscal impact of the project, highlighting its timeliness given the recent audit discussion. The 2024 audit identified a serious fiscal challenge and a structural deficit of at least $3 million for the next few years. The annual revenue from the project includes the special tax (20 cents per square foot) and other recurring revenues, totaling over $2.9 million per year. The "other recurring revenues" represent the net surplus after subtracting the city's estimated expenditures for providing services to the development.

One-time revenues total over $37 million, including the public benefit fee (potentially reduced by $2 million), and contributions towards the electric substation. Half of the property is within the county jurisdiction, and upon annexation, the county will retain 75% of the property tax, with the city receiving only 25%. The project is expected to generate over $70 million in impact fee revenue, which is not included in the one-time revenue table as it is a standard requirement for all developments. Interim City Manager Vela concluded his presentation and handed it back to Mark Staples.

Mark Staples outlines the required findings for various project applications as per the municipal code. For general plan amendments, section 17.64.070 lists four items addressed in resolutions 26- 27 (denial) and 28-31 (approval), carrying over findings from the Planning Commission's November 17th meeting. The specific plan adheres to section 17.96.040, emphasizing consistency with the general plan, environmental impact, site suitability, and neighborhood character. Zone change findings are under section 17.116.050, focusing on consistency with the general plan, zoning ordinance, and environmental concerns. The development agreement, unique to each project, is subject to section 17.0.030, ensuring consistency with the general plan, specific plans, and zoning ordinance, while promoting public welfare. The parcel map complies with the Subdivision Map Act, Section 66474, mirroring the seven findings discussed previously for the track map.

Mark Staples resumed, stating that he would go through the last of the project slides, mostly dealing with the required findings that are required with every project application. With all the application types, there are a couple slides to get through. He stated that he would not read through them all, but this is the list of required findings per the municipal code for general plan amendments. He pointed out the four items there per section 17.64.070. He stated that these items are all addressed both in the different resolutions that are before the council. He stated that the first two, resolutions 26 and 27, are what could be called the denial resolutions, and that resolutions 28 through 31 are the approval resolutions.

The project's environmental compliance timeline dates back to February 2021, with the circulation of the EIR notice of preparation. A scoping session followed two weeks later. The draft EIR was published in December 2023, with a comment period yielding 54 letters. The final EIR was published in July 2024. Due to unavoidable impacts on air quality, greenhouse gas emissions, noise, and transportation, Council must make findings and adopt statements of overriding considerations for approval. The draft EIR covers the summary, introduction, project description, environmental analysis, density change to Mt. San Jacinto College, cumulative impacts, CEQA topics, alternatives, and preparers, along with technical appendices. The final EIR focuses on responses to comments, draft EIR text revisions, the mitigation monitoring and reporting program, findings of fact, and 39 6
statement of overriding considerations, supplemented by a memorandum from September 10th, 2025.

The Mt. San Jacinto project involves general plan application 22-2502 and zone change 22-3502, transferring 1146 potential residential units from Sunset Crossroads to the Mt. San Jacinto College property. This includes rezoning 41 acres of the 49.2-acre area from public facilities/school to very high-density residential. The Sunset Crossroads project must also adhere to general plan amendment findings (section 17.64.070) and zone change findings (section 17.116.050). The Council has two groups of decisions: denying the EIR and project per the Planning Commission's recommendation or approving the project. The Planning Commission initially voted 3-2 to recommend denial on September 10th, then adopted denial resolutions on November 17th, 2025.

Resolution 2026-26 rejects the EIR certification, while resolution 2026-27 denies the applications for the 533-acre site. Approval resolutions include 2026-28 (EIR certification), 2026-29 (general plan amendment), 30 (annexation resolution for LAFCO), and 31 (tentative parcel map 38118). Three ordinances are needed to approve Zone Change 20-3502, Specific Plan 20-2002, and the development agreement 1620.

Council Member Flynn inquiries about the removal of cold storage, the Sunset Avenue ramp improvements, and AB 98 compliance. Mark Staples clarifies that the cold storage was removed from the 33-acre planning area. Nate Smith explains that the Sunset ramp improvements are part of the DIF program, with the developer potentially making right-hand turn improvements and receiving DIF credit. The Caltrans process could take about 18 months, but there are no current plans.

Caltrans was notified about the EIR but did not respond. Regarding AB 98 compliance, Nate Smith states that Banning is not listed as a warehouse-impacted area and, as a jurisdiction under 50,000 residents, has a compliance date of 2030. The city will evaluate truck routes in coordination with Beaumont as part of the general plan update.

Council Member Flynn questions the designation of Sun Lakes Boulevard west of Highland Home as a truck route. Nate Smith clarifies that it is not currently a truck route and would require a separate council action. He notes the section to Highland Springs is designated for 10,000 pounds or less.

Regarding prohibiting trucks from turning right from the extension past Highland Home to Highland Springs, Nate Smith mentions the applicant's proposed intersection control with narrower lanes. He also addresses the proposed signal at Ramsey and Highland Home, stating it was not included as a condition of approval due to its location on the opposite side of the freeway, but the traffic study shows a potential impact. A signal at Highland Home and Sun Lakes Boulevard extension is not planned at this point, pending a more detailed traffic analysis. Council Member Flynn asks about the transformer for the electric substation.

Interim City Manager Art Vela estimates the transformer has been at the yard for about two years, purchased for the Midway substation replacement. He confirms the CFD is a service special tax, found in section 6.2.2 C of the development agreement, and requires property owner approval.

Council Member Flynn notes the development agreement was published recently and is labeled as a draft. Mark Staples clarifies it's the most final version. Council Member Flynn questions if the project is null and void if LAFCO denies annexation. Mark Staples believes only the southern portion's development rights would be affected, but Council Member Flynn cites section 4.2 on page 29, stating the owner reserves the right to terminate the agreement if LAFCO denies annexation. Mark Staples acknowledges this is the owner's decision.

Council Member Flynn raises concerns about the retail development obligation, noting the 100,000 square feet of commercial use is required within 24 months after the first final certificate of occupancy for a project warehouse, potentially delaying the retail development. She also questions the market feasibility study requirement for Planning Area 2, fearing another warehouse if the study deems commercial retail unviable. Mark Staples acknowledges the change to commercial was a late addition based on feedback. City Manager Vela agrees with Council Member Flynn's concerns, suggesting the 24-month clock should start sooner and emphasizing the city's intent for commercial and retail use regardless of the market study.
40 7
Council Member Flynn prefers the retail development clock to start with permitting, not occupancy.

Mark Staples clarifies that occupancy refers to the final inspection, not necessarily a physical presence. Council Member Flynn then questions the special account for public benefit fees until the Sun Lakes Boulevard extension is completed. Interim City Manager Vela explains this provision was added early on when the city lacked full funding for the extension, but the project is now fully funded, so the fees won't be used for the road. Council Member Flynn asks if the city will miss out on the money. Interim City Manager Vela confirms the city will still receive the money per the installment schedule. Council Member Flynn expresses concern about the first installment of the public benefit fee being paid prior to the first grading permit, potentially delaying payment for years. She wants to see fees paid sooner.

Council Member Wallace seeks clarification from Nate Smith regarding truck routes, specifically ensuring Sun Lakes Boulevard is not designated as one. Nate Smith confirms it is not and would require separate council action. Mayor Royce raises the issue of defining "construction" within the contract agreement, questioning whether it refers to permit issuance, groundbreaking, building completion, or occupancy. Interim City Manager Vela suggests the definition depends on the context and should be clarified in each provision where the term is used. Mark Staples suggests tying it to building department standards, where work is expected to begin within six months of permit issuance.

Brent Miles, one of the owners and founders of North Point, introduces the firm, highlighting its position as the largest privately held landlord in the United States with over $20 billion in assets under management. He emphasizes North Point's experience with California regulations and its commitment to investing in communities through thoughtful planning and public input. Miles states the project will create generational economic impact for Banning. He acknowledges the Council's difficult decision and aims to demonstrate transparency, openness, collaboration, and partnership.

Miles expresses eagerness to begin the project, noting North Point purchased the property from a residential developer in June 2020. He highlights the team of professionals involved in creating a robust plan. Miles claims this project has the largest amount of public benefit North Point has ever given, representing almost a $1 billion investment in Banning.

Brent Miles emphasizes the significant public benefit of the project, estimating it as a near $1 billion investment in Banning. He addresses concerns about distrust in developers, assuring commitment to working with the city attorney to ensure transparency in payments. The project aims to transform the community by introducing retail, grocery stores, restaurants, hotels, entertainment, and services, with a signed contract with an anchor tenant. Miles highlights the creation of approximately 4,000 permanent jobs, infrastructure improvements, funding for a fire station and equipment, and a partnership to address Banning Electric's issues. Land donation for parks, along with their construction and maintenance, is also part of the plan. The development agreement is structured to protect the city without incurring costs, featuring a high CFD fee. Miles points out the elimination of cold storage plans and the addition of a 100-foot buffer in response to community feedback, ensuring AB 98 compliance. He also mentions the reduction of industrial square footage and the relocation of the fire station, emphasizing the importance of the anchor tenant and the donation of land to the retail user.

Brent Miles reiterates the public benefits, including the retail timing penalty, special facilities tax, and fire station funding, clarifying that the city retains the fire station funds if an agreement with Riverside County isn't reached. He highlights a grant for small businesses and the donation of land and easements for the Banning Electric substation and Sun Lakes Boulevard extension. A two-week job look-ahead for Banning residents and a partnership with MSJC are proposed to ensure local job creation. Financial impacts are tied to the certificate of occupancy, with flexibility in payment timing.

Infrastructure improvements, including the Sun Lakes Boulevard extension and upgrades to Sunset, Lincoln, Bobcat, and Highland Home roadways, are valued at $42 million. Other benefits include the donation of right-of-way, a substation, a fire station, a water storage tank, an osmosis center, and parkland. Miles expresses excitement about bringing new shopping opportunities and a first-class fire station and parks to the community. He acknowledges the project's impacts, including sound, traffic, and noise, and explains the mitigation efforts. The sound impact is addressed, noting that the 41 8
project only exceeds sound variance during the construction of Sunset, with a temporary sound wall proposed as a solution.

Brent Miles discusses the traffic management plan, emphasizing no truck traffic west on SLB and proposing a headache bar solution. He highlights the use of sound walls, buffering, and landscaping to mitigate noise, stating that the project does not exceed sound limits except during Sunset construction. Miles argues that residential development is not viable on the site due to infrastructure costs and the presence of arroyos. He emphasizes the project's billion-dollar investment, commitment to paying fees, and desire to bring amenities and jobs to the community. Miles seeks a partnership to create a project that benefits the community, acknowledging the courage required to approve such a project and the potential for opposition. He believes the project's benefits outweigh the drawbacks.

Council Member Flynn inquires about the anchor tenant, which Miles confirms is a grocery-anchored retailer but cannot be publicly named. She questions the usability of the 65 acres of public park land, noting that much of it consists of culverts and ravines, and expresses concern about the existing homeless population in the area. Miles suggests that increased activity will deter homelessness and offers to consider providing more land for pure park space. Flynn emphasizes the ongoing issue of homelessness on the property and asks about plans for addressing it.

Council Member Flynn raises concerns about the lack of plans and funding for staffing the proposed fire station. Brent Miles suggests staff can better address the funding issue. Council Member Flynn requests a permanent sound wall north of Sun Lakes Boulevard on Highland Home Road to buffer the view and noise for the Sun Lakes community. Miles agrees to explore the sound wall. City Manger Vela explains that the project is projected to bring a net annual fiscal surplus to the city, part of which could be used for fire services, and mentions the possibility of a citywide CFD service to fund fire and police. He also suggests cost-sharing with the City of Beaumont. Brent Miles adds that the park land could potentially be expanded from five to twelve acres.

Councilman Miller expresses concern that the $16 million allocated for the fire station and equipment may not be sufficient due to rising costs. Brent Miles offers to increase the funding and tie it to a CPI inflator. Council Member Wallace asks the Fire Chief Hopkins about staffing the fire station once it's built. Fire Chief Hopkins explains that the city can request staffing through a letter, and the costs would depend on the type of resource placed there. He emphasizes the need for a fire station on the south side of the freeway and its potential to improve coverage in the city. Council Member Flynn clarifies the desired extent of the sound wall along Highland Home Road, requesting it extend to the substation for continuity.

Fire Chief Hopkins discussed the potential costs and benefits of establishing a fire station on the south side of Beaumont, emphasizing the current lack of coverage in that area and the reliance on stations in Cabazon (often blocked by trains) or Poppet Flats. He mentioned that staffing costs would depend on the type of resource deployed. Moving Engine 20 to the new station and adding equipment to the Wilson station could improve coverage for Atwell and other north-side communities. The Fire Chief offered to provide cost estimates for fire equipment, noting that a fully outfitted fire engine currently costs around $1.7 million, while a truck like the one purchased by Beaumont cost $2.4 million plus outfitting expenses. The estimated cost for a new fire station is around $8 million, potentially excluding land costs, but the city has architecture drawings available to help reduce costs. Projections have been made regarding response times from potential fire station locations off Sunset and at the Wilson site, aiming for a four-to-five-minute response time. Other fire stations being built in the county are estimated to cost around $12 million or more.

Charlene So from Urban Crossroads stated that the modified project now anticipates 1,850 trucks per day on Sunset Avenue daily, a reduction from the original estimate of 3,200 due to project modifications. The traffic study primarily focuses on morning and evening peak hours, revealing slightly more truck traffic in the morning (about 100 trucks more). While truck activity generally occurs outside peak commute hours, there could be truck traffic between 7-9 PM. The industrial traffic pattern is inverse to residential traffic, with higher inbound traffic in the morning and higher outbound traffic in the afternoon, potentially mitigating congestion during peak commute times. 42 9
Council Member Flynn questioned the significant reduction in truck traffic (from 3,200 to 1,800) despite the removal of only 500,000 square feet of warehouse space. Brent Miles clarified that the removal of 330,000 square feet of cold storage, along with the elimination of the truck stop as a permitted use, significantly contributed to the reduction in truck traffic. Cold storage and truck stops have a disproportionately high impact on truck volume compared to standard warehouse space.

Council Member Flynn requested that the updated traffic study memo be provided to the entire council for review.

Mayor Royce questioned Brent Miles about comparable mixed-use projects in California. Brent Miles mentioned a large project near the Sacramento airport and retail developments in Kansas City and Detroit, but not a similar mixed-use project in California. He stated that his company has developed 30,000 residential units across the U.S. Mayor Royce expressed concern about the high number of vacant warehouses in Riverside County and asked if tenants were secured for the proposed warehouses. Brent Miles stated that he doesn't have tenants yet because he doesn't know when construction will begin. He cited a 5.2% vacancy rate for IE East, indicating a tight market. Council Member Flynn expressed concern that the warehouses might remain empty, referencing the Skechers building and other vacant properties in Cherry Valley. Brent Miles stated that the Skechers issue is related to foreign trade zone status, not a lack of demand. He disagreed with the notion of a downturn in warehousing, asserting that the region is the most robust industrial market globally.

Council Member Flynn suggested a condition requiring a tenant to be secured before building each subsequent warehouse. Brent Miles expressed openness to discussing language around this but highlighted the financial risk of building additional vacant warehouses. Council Member Flynn emphasized the community's concern about potential empty warehouses, given the history of vacant properties and the rezoning of land previously designated for single-family homes. She worried about the negative impact on surrounding communities if the warehouses remain unoccupied and do not benefit the city. Brent Miles pointed out that he would still be paying fees and taxes even if the buildings were vacant. City Manager Vela added that vacant warehouses would generate revenue through CFD and property taxes without placing demands on city services like traffic management.

Mayor Royce expressed concern that empty warehouses could attract crime and blight, potentially exceeding the revenue generated. Brent Miles stated that less than 2%, possibly less than 1%, of his California properties are currently vacant. Mayor Royce inquired about the intended use of the warehouses, specifically whether they would be used for "point of sale" activities. Brent Miles explained that point of sale taxation in California is complex and depends on the tenant's other facilities. He mentioned Chewy.com as an example of a point-of-sale tenant in Missouri. Brent Miles estimated that 20% of their California portfolio involves point of sale. He believes that the Banning location is a "home-run site" and that he has the capital ready for the project. He noted that last year, his company leased 15.6 million square feet, with 9.8 million square feet coming from existing Fortune 500 tenants.

Brent Miles clarified that the plans include dedicated truck parking spaces, separate from loading and unloading docks. These spaces are intended for trucks staging between loads. Mayor Royce expressed concern about trucks spilling over onto city roads, a common problem in other cities with large distribution centers. Brent Miles assured that the site has ample land coverage (22-25%) compared to typical industrial developments (35-38%), allowing for sufficient on-site storage and queuing. City Manager Vela emphasized the longer throats leading into the buildings, providing more on-site storage capacity for trucks. Brent Miles stated that the internal road networks are designed to prevent trucks from queuing on public streets. He expressed confidence in leasing the buildings due to their state-of-the-art design and ample parking.

Mayor Royce Opened Public Hearing at 7:50 p.m.
• A resident highlights key issues previously raised: electricity bills, warehouses, and animal care. urges the council to consider whether the current project is truly in the city's best interest, noting resident opposition to empty warehouses and uncertainty about future buyers and the economy. • Richard McCard expresses concerns about the incompatibility of warehouses with neighboring residential areas and focuses on traffic impacts. He cites a figure of 1,850 trucks per day, 43 10
exceeding one truck per minute. He raises concerns about ambulance and police access, added load on the 10 freeway, noise, and pollution. He questions truck routing via Sun Lakes Boulevard to Sunset Blvd. and suggests the airport as a more suitable location. • Chuck Huff emphasizes that the council's loyalty should be to residents, not freight traffic. He criticizes the council's credibility, citing the San Gorgonio Inn and a drag racetrack. He recalls previous claims about the impossibility of extending Sun Lakes Boulevard due to dangerous pipelines. He highlights traffic problems on Sunset and Lincoln, the impact on fire engine access despite the $35 million underpass, and the increase in decibel levels from sirens. He also mentions the shift from rural land to high-density housing and commercial development. • A resident asks if homeowners in Serrano Del Vista will be reimbursed if truck traffic on Sunset lowers property values.
• John, representing union plumbers, pipe fitters, and refrigeration workers, finds it ironic that people complain about warehouses while ordering online. He challenges the vacancy rate argument, citing statistics of approximately 5% vacancy in the general area and 8% county-wide, suggesting a 92% chance of occupancy. He proposes organizing warehouses with tiered wage systems, higher salaries based on seniority, supervisors with higher pay, and union representation. He urges the council not to turn down this opportunity. • Jack Marty, a Banning resident with logistics and trucking experience, notes the presentation sounded better than previous ones. He recalls citizen opposition to warehouses and marijuana facilities, preferring grocery stores and retail. He expresses concern about 80 trucks per hour accessing the freeway, predicting a "nightmare." He also mentions fumes, drugs, overnight truck parking, and the potential for lawsuits forcing the opening of Sun Lakes Boulevard to truckers. • Ashley Adams, a lifelong Banning resident and mother, acknowledges setbacks but emphasizes the need to consider the future for her child and other children. She highlights the jobs, entertainment, and food the plan could bring, urging the council to work out the details and consider the expectations of the younger generation.
• Tara Hagee, a Banning resident and caregiver in Sun Lakes, admires the area's environment and nature. She notes the existing 11 industrial, two commercial, and four residential projects already in the works. She argues for legacy over quick fixes, emphasizing community, small business, sustainable jobs, and environmental alignment. She urges consideration of the proposal's economic, health, and longevity impacts.
• Edward Espinosa clarifies factual points about the Sunset Crossroads project, including the 30- year development agreement and the $8 million public benefit fee being contingent on building construction and occupancy. He notes that the fire station, water reservoir, and other public facilities are based on phased needs, not automatic construction. He states that the warehouse and commercial components are market-driven and phased, with no mandatory build-out date.

He also mentions the illustrative nature of the presented map and the lack of fixed warehouse sizes or layouts. He suggests ways for the city to protect itself, such as performance bonds and permit-based phasing. He raises concerns about decibel levels affecting seniors with hearing aids.
• Kathy Aranda formally opposes the Sunset Crossroads project, calling it the wrong project in the wrong location. She emphasizes the Planning Commission's recommendation for denial. She notes the permanent rezoning and annexation of over 500 acres, allowing over 5.5 million square feet of industrial warehouse development. She highlights the Environment Impact Report's acknowledgement of significant unavoidable impacts, including air quality, noise, traffic, and quality of life effects. She argues that environmental review identifies impacts but does not justify them, and rezoning makes those impacts permanent. She urges the council to deny the project, consistent with the Planning Commission's recommendation. • Amy Pippinger expresses agreement with the previous speaker. If the project passes, she insists on a stoplight or stop sign at Highland Home and Sun Lakes. She raises concerns about student 44 11
and resident traffic on Sunset, especially near Westward, and the potential for problems with teenage drivers and semi-trucks. She believes the developer should have proposed a project consistent with the existing zoning. She also requests a buffer on Bobcat for horse trailers. • Nick Weyrich, Senior Vice President at SRS Real Estate Partners, explains his firm was hired to secure retail tenants for the project's commercial component. He argues this is a transformational opportunity for Banning, potentially bringing a major nationally recognized retail anchor tenant. He emphasizes the competitive landscape with other sites in Beaumont and Calimesa. He states that the logistics component subsidizes the deal, making it attractive to retailers. He believes the anchor tenant will attract other retailers, creating a diverse mix of uses and a first-class amenity for the city.
• Lee Park, a partner at Axiom Retail Advisors, represents a nationally recognized big box retail client in advanced negotiations with North Point. He expresses strong support for the project, citing the potential for good local jobs, substantial tax revenue, and secured future growth. He emphasizes the client's real interest but ties their ability to move forward to the industrial component and its infrastructure. He warns that delays could lead the client to deploy resources elsewhere, making Banning no longer viable. He believes North Point is the right steward for the property and that the time for approval has come.
• Juanita Diaz expresses concern that the community is not adequately involved and convinced of the project's benefits. She feels information is often left out and that last-minute document releases are designed to confuse residents. She requests the council to deny the project with prejudice due to inadequate information.
• Louie Lopez, business agent for Ironworkers Local 433, highlights the "endless opportunity" promised by the city's motto. He seeks to recruit more Banning residents into the ironworkers, especially veterans through a direct entry program. He emphasizes the community benefits offered by North Point, stating he has never seen a developer willing to give so much to the community. He notes that union ironworkers start at $30 an hour as first-period apprentices, emphasizing the value of on-the-job skill training.
• Chuck Huff, a 52-year member of Local 250 Steam Fitter, acknowledges the improvements made to the project over the years. He admits that change is hard, especially for long-time residents. He notes his community's proximity to the project and its potential impact. He acknowledges the reduction in warehouses and the removal of the refrigeration component. He connects the project to the college and high-density housing, questioning the affordability of housing for retail workers earning $20 an hour. He commends the developers but remains hesitant about the change, understanding the need for jobs. • Fran Hanrati asks the city council to be careful in their decision, suggesting the amount of warehouse square footage is excessive. She emphasizes the city's beautiful surroundings and its status as a blue zone city, highlighting the importance of clean air. She requests a revision to reduce the warehouse square footage.
• A resident addresses the potential uses of warehouses, citing examples of sports arenas, eateries, and chef classes. Emphasize the potential for community benefit and job creation, particularly in carpentry, ironworking, and electrical trades. • A resident suggests relocating the project to the airport, creating a win-win situation for everyone and avoiding truck traffic near homes.
• Ron Roy supports the Planning Commission's recommendation to deny the project, reflecting the community's wishes for the 534 acres. He suggests the city staff's support for the developer stems from private meetings and communications without comparable public input. He asks the council to require the developer to reduce the industrial warehouse footprint and expand on existing general plan land uses, suggesting less than 160 acres or 30% of total acreage away from homes. He also mentions available industrial land east of Hathaway. He argues that the future of the 534 acres should reflect the Planning Commission and community's vision, not the 45 12
developer's, criticizing the developer's unchanging monolithic vision since 2021, where warehouses dominate 74% of the land use. He requests the Council to require the developer to reduce the industrial warehouse footprint and expand on existing general plan land uses, suggesting less than 160 acres or 30% of total acreage away from homes for industrial use. He believes more diverse land uses would create better dynamics and value. • Carlos Esparza expresses his support for the project, mentioning his desire for a new park and nearby work opportunities. As a member of Iron Workers Local 433, he emphasizes the need for opportunities for young people, highlighting the union's apprenticeship programs for veterans and others
Mayor Royce Closed Public Hearing at 8:36 p.m.

Brent Miles with North Point addresses concerns, stating that fire services were prioritized based on staff input and that they have never seen property value decline near their industrial projects, citing examples in Kansas City and Edgerton, Kansas. They clarify that weed is a prohibited use due to their financial partners' restrictions inside warehouses. They emphasize the benefits of the 30-year development agreement, including guaranteed fees and an upfront payment of $7 million. They also highlight the explicit details of the development agreement regarding upfront payments.

Brent Miles addresses concerns about sound, stating that the human ear cannot detect decibel changes of less than three decibels, while the project's noise impact is much lower. He is willing to discuss the stoplight at Highland with public works and engineering. He also mentioned Hillwood as a competitor in the airport commentary.

Brent Miles clarifies that the industrial buildings will not be built all at once, and the traffic model accounts for full build-out over several years. expresses a shared desire to avoid vacant buildings and offer to provide a more detailed illustration of the traffic model, including signal locations, turn lanes, and time frames.

Brent Miles is unsure about the electrical substation and offers to consider how the project can help with other city needs like animal control. Council Member Flynn expresses concern about the amount of warehouses and square footage, suggesting the inclusion of more retail, commercial, and medical facilities.

Brent Miles agrees to consider alternative land uses but cautions that changes to the industrial square footage could impact on the financial viability of the project and the public benefit package.

Emphasizes that the development agreement was heavily negotiated and that industrial use is the primary financial driver.

Mayor Royce points out the conflict between the developer's financial interest in warehouses and the city's need for retail. The applicant representative acknowledges the community's desire for retail but argues that industrial development generates more fees and is a more reliable financial producer. They estimate that the retail development could generate $2.5 million in sales tax.

Council Member Miller raises concerns about truck traffic and asks if some warehouses could be used for other purposes. The applicant representative explains that traffic is modeled based on warehouse square footage and that they actively monitor traffic to minimize problems, as excessive truck traffic is undesirable for both the developer and potential tenants. He highlight the $46 million investment in infrastructure to manage traffic.

Mayor Royce suggests a traffic study model predicting traffic in two to three years. The applicant representative and Charlene So from Urban Crossroads clarify that the traffic study looks at various time horizons, including existing conditions, project phases, cumulative projects, and a horizon year of 2045.

Council Member Flynn emphasizes that various commercial uses beyond retail are possible and 46 13
that warehouses generate 24/7 truck traffic, unlike medical or retail buildings. She expresses concern about the potential impact of 80 trucks per hour on the on and off ramps and suggests reducing the warehouse area south of Sun Lakes Blvd.

Brent Miles reiterates their efforts to minimize truck traffic and balance community needs with the development agreement. Councilmember Flynn questions the guarantee of LAFCO approval for the county land south of Sun Lakes Boulevard and the potential for the developer to withdraw if it's not approved.

J.J. Jenkins with Northpoint confirms that a survey was conducted in a disadvantaged unincorporated community, and residents chose not to join the city.

Council Member Wallace emphasizes the need for economic development in Banning, highlighting the city's fiscal challenges and the importance of adapting to change. She argues that the Planning Commission's denial of projects is hurting the city and that Banning needs to attract businesses to avoid being bypassed by other booming cities. She stresses the need for a change in mindset to support economic growth for the benefit of future generations.

Charlene So, with Urban Crossroads confirms the original traffic study was completed on August 9th, 2023, with subsequent technical memos, including one dated September 3rd, 2025.

Deputy City Clerk, Sandra Calderon reports receiving seven letters in support and 416 letters in opposition to the project, distributed to the council. Councilman Wallace reiterates that the project impacts the entire city of Banning.

Council Member Flynn moves to continue the discussion to a future date, citing the late release of the development agreement and a 10-page letter received from Sunset Crossroads. She argues that the council needs more time to digest these documents and the traffic study. The motion is seconded by Council Member Barrington. Motion carried 4-1 with Council Member Wallace voting no.

City Attorney Pinkney clarifies that continuing the public hearing to a date certain avoids the need for re-noticing. The discussion clarifies that agenda items 6-1 and 6-2 are related to the same project and can be continued together.

Councilmember Flynn suggests hearing agenda item 6-2, which involves the general plan amendment and zone change, as it is a separate issue involving the city and Mt. San Jacinto College, not North Point.

Mark Staples, Senior Planner proceeds to present the next item 6.2.

6.2 Consideration of an Application by the City of Banning, CA for General Plan Amendment (Case No. GPA 22-2502) and Zone Change (Case No. ZC 22-3502) to Amend the Land Use Designation and Zoning of Approximately 41 acres of Land Owned by Mount San Jacinto Community College District Located Near the Southeast Corner of Westward and Sunset Avenues from PF–S (Public Facilities-Schools) to Very High Density Residential (VHDR) to Transfer Density of Not Less Than 1,146 Residential Units from the Sunset Crossroads Specific Plan.

Recommendation: 1. Adopt Resolution 2026-33, DENYING the project proposals of General Plan Amendment (Case No. GPA 22-2502) and Zone Change (Case No. ZC 22-3502)

2. Adopt Resolution 2026-34, APPROVING the project proposals of a General Plan Amendment (Case No. GPA 22-2502) and Zone Change (Case No. ZC 22-3502) Mark Staples, Senior Planner proceeds to present on the residential land use transfer, explaining that it complies with state law regarding no net loss of residential land uses and is tied to the housing element. Another site was needed to accommodate the 1,146 units. Explaining the prior residential land uses in the area, referencing the "no net loss law" passed around 2021 or 2022 and its connection to the housing element. To compensate for the loss of 1,146 units, previous 47 14
directors contacted Mt. San Jacinto College, who were willing to take on the residential unit total, but wouldn't provide a formal letter of commitment. The presentation includes approval and denial resolutions tied to the North Point project and resolutions approving general plan 22-2502 and zone change 22-3502, specific to the college district's properties.

Council Member Flynn questioned the college's willingness without a formal commitment and the implications of transferring 1,146 low-density homes to a property not owned by the city, suggesting it's merely a "paper trade" to satisfy state housing policy. She expressed concern about losing these homes and the potential repercussions from HCD. She emphasized the Planning Commission's opposition to the project and the need for rooftops to support local businesses.

Mark Staples stated that the MSJC district generally accepted the responsibility for the 1,146 units.

They mentioned the possibility of further transfer development rights. Council Member Flynn questioned the density required to accommodate that many units, and Mark clarified it would be roughly 27 units per acre, similar to recently built three-story apartments.

Mayor Royce opened public comments.
• Amy Pippinger speculated that MSJC might be amenable to the proposal because Diversified Pacific could purchase the land for apartments. She expressed her opposition to the plan. • Tara Hagee questioned the logic of voting on the proposal without guarantees and its contingency on the other proposal, suggesting it be revisited with a committed site. The developer representative stated the MSJC site was considered in the EIR for the North Point project due to SB 330 requirements. He clarified that the MSJC site is intended for job development, not housing, and wouldn't preclude future school facilities. He also mentioned the 1,146 units were analyzed programmatically in the EIR and traffic analysis, with a housing range of 24-30 DU per acre, potentially in a clustered, three-story format. • Shirley Hagey noted the reduced audience and expressed concern that the community wasn't adequately informed about the rezoning. She suggested delaying the decision for more public input. John Kond, counsel for the developer, emphasized the legal requirement under SB 330 to handle the North Point project and the zone change simultaneously. He clarified that state law only requires capacity, and the 1,146 units were merely shifted, not built or planned, similar to the previous situation with Lennar and the Sunset Crossroads property. • Juanita Diaz expressed concern about the number of warehouses and questioned whether the city was prioritizing the community's needs. She emphasized the need for affordable housing and raised concerns about MSJC's potential departure. The meeting host then opened the floor for council discussion, deferring to legal counsel regarding separating or combining the items.

The City Attorney advised handling the two items together as they are applications for one project.

Mayor Royce closed public comments
City Attorney, Pinkney suggested continuing the public hearing to February 26th to allow for the inclusion of missing ordinances. A motion was made to continue the meeting to February 26th.

Councilmember Flynn inquired about the impact of the Rancho San Gregorio project (3,500 homes) on traffic. Staff confirmed the EIR accounted for Rancho San Gregorio as an existing approved project from 2016.

Council Member Flynn sought clarification on the car traffic numbers in addition to the 1,800-truck count.

Mark Staples indicated they would need to defer to traffic experts for specific car traffic numbers but estimated Island Springs had 30,000+ cars per day. Mayor Pro Tem Barrington pointed out that Rancho San Gregorio traffic would use multiple streets, not just Sunset. Council Member Flynn requested clear data on truck and car traffic. Mark Staples committed to translating the technical traffic data into an understandable narrative.
48 15

7. ADJOURNMENT
A motion was made by Mayor Royce and seconded by Council Member Miller to continue items 6-1 and 6-2 to February 26th at 5 p.m., motioned carried 5-0. Meeting was adjourned 9:32 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/282?view_id=1&redirect=true 49 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
Todd Hopkins, CalFire Division Chief
MEETING DATE: February 24, 2026
SUBJECT: Receive and File Fire Protective Services Statistics for the Month of January 2026.

RECOMMENDATION:

Receive and file.

BACKGROUND:

City Council has requested CalFire’s Riverside County Division, which provides fire protection services in the City of Banning, to provide specific reports to the public and City Council on a monthly basis.

JUSTIFICATION:

Many Fire and EMS Departments store and analyze statistical data, which can provide a detailed analysis of the types of responses their organization is called to assist. This information is critical to elevating the level of service provided by the Fire Department.

FISCAL IMPACT:

None
ALTERNATIVES:

Providing statistics keeps the Council, staff, and residents apprised of current fire and paramedic activities. If the statistics are not presented to the Council on a regular basis, then they should be provided on another platform.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. JurisReport_Banning_v2.pdf
50 Robert Fish
Jurisdiction Summary for City of Banning
Fire Chief
Riverside County Fire Department/ CAL FIRE
1/1/2026 to 1/31/2026
Incident Response Activity
*At least 1 Resource Dispatched
Incident Type #
Com Fire 1
False Alarm 24
Medical 403
Multi-Fam Dwelling Fire 1
Other Fire 10
Other Misc 3
Public Service Assist 28
Res Fire 1
Ringing Alarm 1
Standby 5
Traffic Collision 15
Wildland Fire 1
Incident Total 493
Average Enroute to On-Scene Time
*Units Responding Charlie, Delta, Bravo, Echo, Code 3
6 265 94
1 4.16 72.40
<5 Minutes +5 Minutes
+10 Minutes +20 Minutes
Average Min % 0 to 5 Min
Enroute Time: Unit has been acknowledged as responding.

On-Scene Time: Unit has been acknowledged as being On-Scene.

Transport
*Based on Units with a Transport time
0 Total: 0
Mutual Aid
*Unit responses
Jurisdiction Units Responses
Engine 173
Total: 173
Mutual Aid Given
Engine 200
Total: 200
Mutual Aid Received
Breathing Support 1
Brush 1
Chief 11
Engine 340
Environmental Health 1
MRF 62
Nurse 19
Patrol 13
PIO 2
Squad 39
Truck/Quint 2
Total: 491
2/9/2026 11:35:06AM Page 1 of 251
Truck Report
T2 recorded 2 responses in City of Banning from 1/1/2026 to 1/31/2026 Significant Incidents
CAL Fire/Riverside County Fire Department was dispatched to a reported structure fire at the above address. The first reporting engine company reported a two-story structure with light smoke visible. Fire personnel made access to the fire and were able to contain it to a small patio area. There were no injuries reported to fire service personnel or civilians. The cause of the fire remains undetermined at the time of this report.
26CARRU000791
1/2/2026 8:25:00AM
CAL FIRE/Riverside County Fire Department resources from Battalion 3 responded to the above location for multiple reports of a commercial structure fire. The first arriving Company Officer reported an exterior fire threatening a large commercial market and strip mall. Fire crews contained the fire, however, the market experienced heavy smoke damage to food product.

Riverside County Environmental Health is on scene assessing the food stock. Banning City Building and Safety is requested to assess the building.
26CARRU015919
1/28/2026 10:40:00PM
2/9/2026 11:35:09AM Page 2 of 252

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Kristine Gutierrez, Community Development Operations Manager Vincent Avila, Chief of Police
MEETING DATE: February 24, 2026
SUBJECT: Receive and File Code Enforcement Statistics for the Month of January 2026
RECOMMENDATION:

Receive and file.

BACKGROUND:

The Banning Police Department provides Code Enforcement statistics to the public and City Council upon request.

JUSTIFICATION:

Statistics provide details on the types of code enforcement related calls the City responds to. Statistics show increases and decrease in particular areas of Code Enforcement over time.

FISCAL IMPACT:

None.

ALTERNATIVES:

Providing statistics keeps the Council, staff, and residents apprised of current Code Enforcement activities. If the statistics are not presented to the Council on a regular basis, then they should be provided on another platform.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Code Stats Jan 2026.pdf
53 Code Enforcement Jan-26 Jan-25 % CHGE YTD-26 YTD-25 % CHGE New Cases Opened 111 17 553% 111 17 553%
Total Cases Open (Active) 268 412 -35% 268 412 -35%
Notice of Violations Issued 305 13 2246% 305 13 2246%
Violations Resolved 256 133 92% 256 133 92%
Citations Issued 44 21 110% 44 21 110%
Inspections Completed 265 81 227% 265 81 227%
Collected Fee's (Citations) 1375 762.83 80% 1375 762.83 80% Red Tagged Properties 1 2 -50% 1 2 -50%
AVA Program Vehicles Abated 1 0 100% 1 0 100%
Weed Abatement Cost Recovery 11746.88 18512.7 -37% 11746.88 18512.7 -37% 72 Hour Parking (NOV) CVC 22651 K 21 0 2100% 21 0 2100% Unhoused Encampments Tagged (PC602) 19 0 1900% 19 0 1900% Calls For Service 205 0 20500% 205 0 20500%

BANNING POLICE DEPARTMENT
JANUARY, 2026
54 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Yvette Vaca, Administrative Sergeant
Vincent Avila, Chief of Police
MEETING DATE: February 24, 2026
SUBJECT: Receive and File Animal Control Statistics for the Month of January 2026 RECOMMENDATION:

Receive and file.

BACKGROUND:

The Banning Police Department provides Animal Control Services statistics to the public and City Council upon request.

JUSTIFICATION:

Statistics tell a city how many Animal Control Officers need to be on the street, the types of calls they handle, and the need for additional services. Statistics show increases and decreases in particular areas of Animal Control Services over time.

FISCAL IMPACT:

None.

ALTERNATIVES:

Providing statistics keeps the Council, staff, and residents apprised of current Animal Control Services activities. If the statistics are not presented to the Council on a regular basis, then they should be provided on another platform.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Good Police Stats ACO 2026 Jan.pdf
55 ANIMAL CONTROL Jan-26 Jan-25 % CHGE YTD-26 YTD-25 % CHGE Calls for Service 132 88 50% 132 88 50%
Animals Impounded 18 0 1800% 18 0 1800%
Animals Euthanized 4 0 400% 4 0 400%
Bite Reports 2 2 0% 2 2 0%
Citations Issued 1 0 100% 1 0 100%
Expenses 947.75 2233.25 -58% 947.75 2233.25 -58%
Revenue 45.4 602 -92% 45.4 602 -92%

BANNING POLICE DEPARTMENT
JANUARY, 2026
56 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Yvette Vaca, Administrative Sergeant
Vincent Avila, Chief of Police
MEETING DATE: February 24, 2026
SUBJECT: Receive and File Police Department Statistics for the Month of January 2026
RECOMMENDATION:

Receive and file.

BACKGROUND:

The Banning Police Department provides statistics to the public and City Council upon request.

JUSTIFICATION:

Statistics tell a city how many police officers need to be on the street, what crimes are being committed, and reveal increases and decreases in specific crimes. Also, cities get funding in part on their crime rates. If a federal crime bill passed, the Government needs to know which cities could benefit the most from those funds, and some cities have been rewarded financially for drastically lowering rates of crime.

FISCAL IMPACT:

None.

ALTERNATIVES:

Providing statistics keeps the Council, staff, and residents apprised of current police activities. If the statistics are not presented to the Council on a regular basis, then they should be provided on another platform.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Good Police Stats Workbook Jan 2026.pdf

2. Group A Offense Report Jan 2026.pdf
57 CRIME Jan-26 Jan-25 % CHGE YTD-26 YTD-25 % CHGE
PART 1 CRIMES
Homicide 0 0 0% 0 0 0%
Rape 1 0 100% 1 0 100%
Robbery 1 1 0% 1 1 0%
Assaults Agg/Simp 13 18 -28% 13 18 -28%
Burglary 0 2 -100% 0 2 -100%
Vehicle Theft 11 8 38% 11 8 38%
Larceny 21 10 110% 21 10 110%
OTHER
Narcotics 3 4 -25% 3 4 -25%
DUI 2 1 100% 2 1 100%
T/C Non-Injury 23 24 -4% 23 24 -4%
T/C Injury 1 6 -83% 1 6 -83%
T/C Fatal 0 0 0% 0 0 0%
Transient Calls 131 88 49% 131 88 49%
Unattended Death 5 6 -17% 5 6 -17%
246PC 1 0 100% 1 0 100%
Citations 96 64 50% 96 64 50%
Total Incidents 3354 2823 19% 3354 2823 19%

BANNING POLICE DEPARTMENT
JANUARY, 2026
58 Offense Reported
in 2026
Reported
in 2025
Percent
Change
Offenses
Cleared
Percent
Cleared
Percent Of
Category
Rate Per
100,000*
Murder 0 0 NA 0 0.00% 0.00% 0.00
Negligent Manslaughter 0 0 NA 0 0.00% 0.00% 0.00
Justifiable Homicide 0 0 NA 0 0.00% 0.00% 0.00
Non-consensual Sex Offenses:

Rape 1 0 NA 0 0.00% 5.26% 3.13
Sodomy 0 0 NA 0 0.00% 0.00% 0.00
Sexual Assault with Object 0 0 NA 0 0.00% 0.00% 0.00
Fondling 2 1 100.00% 1 50.00% 10.53% 6.25
Aggravated Assault 6 2 200.00% 1 16.67% 31.58% 18.75
Simple Assault 7 12 -41.67% 4 57.14% 36.84% 21.88
Intimidation 2 0 NA 0 0.00% 10.53% 6.25
Kidnapping/Abduction 1 0 NA 1 100.00% 5.26% 3.13
Consensual Sex Offenses:

Incest 0 0 NA 0 0.00% 0.00% 0.00
Statutory Rape 0 0 NA 0 0.00% 0.00% 0.00
Human Trafficking, Commercial
Sex Acts
0 0 NA 0 0.00% 0.00% 0.00
Human Trafficking, Involuntary
Servitude
0 0 NA 0 0.00% 0.00% 0.00
Crimes Against Persons Total 19 15 26.67% 7 36.84% 24.68% 59.38 Robbery 1 1 0.00% 0 0.00% 2.13% 3.13
Burglary/Breaking & Entering 0 2 -100.00% 0 0.00% 0.00% 0.00 Larceny/Theft Offenses 21 10 110.00% 2 9.52% 44.68% 65.63 Motor Vehicle Theft 11 10 10.00% 0 0.00% 23.40% 34.38
Arson 1 0 NA 0 0.00% 2.13% 3.13
Destruction Of Property 12 7 71.43% 2 16.67% 25.53% 37.50 Counterfeiting/Forgery 0 0 NA 0 0.00% 0.00% 0.00
Fraud Offense 1 1 0.00% 0 0.00% 2.13% 3.13
Embezzlement 0 1 -100.00% 0 0.00% 0.00% 0.00
Extortion/Blackmail 0 0 NA 0 0.00% 0.00% 0.00
Bribery 0 0 NA 0 0.00% 0.00% 0.00
Stolen Property Offenses 0 3 -100.00% 0 0.00% 0.00% 0.00 Crimes Against Property Total 47 35 34.29% 4 8.51% 61.04% 146.88 Drug/Narcotic Violations 3 1 200.00% 3 100.00% 27.27% 9.38 Drug Equipment Violations 4 1 300.00% 4 100.00% 36.36% 12.50 Gambling Offenses 0 0 NA 0 0.00% 0.00% 0.00
Pornography/Obscene Material 0 0 NA 0 0.00% 0.00% 0.00
Prostitution 0 0 NA 0 0.00% 0.00% 0.00
Weapons Law Violation 4 6 -33.33% 3 75.00% 36.36% 12.50 Animal Cruelty 0 0 NA 0 0.00% 0.00% 0.00
Crimes Against Society Total 11 8 37.5% 10 90.91% 14.29% 34.38 Agency: BANNING PD
Total Group "A" Offenses 77 58 32.76% 21 27.27% 100% 240.63 Statewide Crime Profile * Adjusted population base: 32,000 2026 Crime in California

Note: The Rate per 100,000 will be 'NA' when the Adjusted Population Base is Zero.

Group A Offense Report
Beginning Date: 01/01/2026 Ending Date: 01/31/2026
Printed On: 02/12/2026

59 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Holly Stuart, Public Works Program Manager Arturo Vela, Director of Public Work/Interim City Manager MEETING DATE: February 24, 2026
SUBJECT: Community Cleanup and Compost Giveaway Event Update RECOMMENDATION:

This is informational only; receive and file report.

BACKGROUND:

The City of Banning has partnered with Waste Management as part of the solid waste franchise agreement to provide three free bulky item collection events for residential accounts per calendar year.

The first of three bulky item collection events for this year was held on January 17, 2026, at Dysart Park offering residents the opportunity to dispose of unwanted items including, but not limited to, appliances, mattresses, green waste, e-waste and so forth. This event also offers residents paper shredding and the collection of household batteries.

This latest event welcomed 447 vehicles. An accumulation of 33.88 tons of municipal solid waste, 5.50 tons of green waste, 6.51 tons of white goods/metal, 3.60 tons of paper shredding, 2.98 tons of E-waste, and 4.19 tons of mattresses were collected over the duration of 5 hours. Waste Management collected a grand total of 56.66 tons of waste, of which 22.78 tons were successfully diverted from the landfill.

Furthermore, four (4) barrels of household batteries were collected during the event.

According to Waste Management's calculations, these recycling efforts resulted in the following benefits:
• Saved 132,878 kWh of electricity. Enough electricity to power 10 households for one year. • Reduced GHG emissions by 4 metric tons. Equivalent to taking 3 passenger cars off the road for one year.
• Kept 5,956 Ibs of solid Waste out of the landfill. The amount of trash generated by 3 households in one year.
• Kept 1,460 Ibs of hazardous materials out of the environment.

In addition to the collection of bulky waste at Dysart Park, the City included a compost station, giving away free compost to the community. Forty-seven (47) residents obtained compost on the day of the event. Any unused compost that was not given away was disbursed and utilized on City properties throughout the community. Incorporating the free compost giveaway supports the City’s compliance goals in achieving targets identified by the State and SB 1383 requirements to purchase and utilize organic waste materials. In all, Waste Management provided 18 tons of compost for the giveaway.

JUSTIFICATION:

The City’s Bulky Item Collection and Compost Giveaway events continue to be a success and provide a great service to our community. The events aid in keeping the community clean through reducing the 60 amount of waste that may otherwise be illegally dumped throughout the City and its rights-of-ways. In celebration of Earth Day, our next event is scheduled for Saturday, April 18, 2026, followed by October 17, 2026.

FISCAL IMPACT:

Event staff and material costs were funded by the Refuse fund.

ALTERNATIVES:

Not applicable.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Event Pictures 2.24.26.docx
61 Staff Report: Bulky Item Collection & Compost Giveaway January 17, 2026
447 Vehicle Trips

BULKY ITEM COLLECTION & COMPOST GIVEAWAY EVENT PICTURES 62 Staff Report: Bulky Item Collection & Compost Giveaway January 17, 2026
447 Vehicle Trips
63 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer MEETING DATE: February 24, 2026
SUBJECT: Accept as Complete Various Improvements Related to the Atwell Specific Plan Development and Authorize the 90% Reduction of the Improvement Bonds and Exoneration of Monumentation 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 and exoneration of Monumentation Bonds.

BACKGROUND:

On May 28, 2024, City Council adopted Resolution 2024-77 approving Final Tract Map 37388-5, 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 include onsite street, sewer, water, non-potable water, and centerline monuments serving the tract.

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 reduction for the following bonds:

Bond Number Bond Amount Improvements
30219390 $913,713.84 Streets
30219391 $464,875.48 Water and Non-Potable Water
30219392 $388,584.86 Sewer
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.

Staff has verified through inspections that the required monuments were installed per City standards and specifications and recommends that City Council accept the monuments as complete and authorize the 100% bond exoneration for the following bond:
64 Bond Number Bond Amount
Improvements
30219393 $19,677.90 Monuments
FISCAL IMPACT:

Not applicable
ALTERNATIVES:

Do not accept staff’s recommendation and provide staff with additional direction.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. TR37388-5 Improvement Exhibit.pdf

2. TR37388-5 SIA and Bonds.pdf

3. TR37388-5 CL Ties.pdf
65 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:

PA 16A-1/48B SEWER, WATER, NON-POTABLE WATER, STREET & MONUMENTATION

EUREKA AVENUE

LANE TAMARACK

SEQUOIA PLACE HACKBERRY
PLACE

DOUGLAS AVENUE

RAINTREE PLACE

CAROB PLACE

LANE CH BEE

GUAVA LANE

WOOD DOG PLACE
POPLAR
LANE
CORK
PLACE

APEX STREET

BAYWOOD LANE
PHASE 2B-2, PA 16A-1/48B EXHIBIT
66 67
68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
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88 89
90 91
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(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET
D A
R Y L J. CHRIS T I A N
LS 8554

S T A T E O F C A L I F O R N I A

PROFESSIONA L LAND SURVEYO
R
142
1 2 3 4 5 6 7
46 45
44 43
42 41
40 39
38 37
36 35
34 33
32 31
30 29
28 27
26 25
24 23
22 20 21
19 18 17 16 15 12 13 14 11 9 10 8
TRACT NO. 37388-5
M.B. 496/1-8
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET

DOUGLASS AVENUE

RAINTREE
PLACE
CAROB

BEECH LANE
PLACE

SEQUOIA
PLACE

GUAVA LANE

BAYWOOD LANE

DOGWOOD PLACE
143
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET

RAINTREE

CAROB PLACE
20 21
22 24
25 23
PLACE
144
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET

RAINTREE
PLACE
12 13 14 15 16
6 7
5 4
145
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET

RAINTREE PLACE

BAYWOOD LANE
8 9
10 1
2 146
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET
28 29
30 31

BEECH LANE
CAROB

VIRGINIA DRIVE
PLACE
147
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET
46 45
44 39
38 37
36 35
34 CAROB
PLACE

DOGWOOD PLACE
148
(949) 251-8821

P L A N N E R S E N G I N E E R S S U R V E Y O R S
5 PETERS CANYON ROAD
SUITE 305
IRVINE, CA 92606
WWW.MDSCONSULTING.NET
42 43
44 39
40 41

CAROB PLACE
149

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Fred Lyn, Deputy Director of Electric
MEETING DATE: February 24, 2026
SUBJECT: Consideration of Resolution 2026-34, Approving the Professional Services Agreement with NewGen Strategies and Solutions, LLC in the amount of $90,000 for a three-year term to provide a rate review assessment and services to the Banning Electric Utility's electric rates.

RECOMMENDATION:

Adopt Resolution 2026-34
BACKGROUND:

The City of Banning’s Electric Utility ("Utility”) entered into a professional services agreement with NewGen Strategies and Solutions, LLC ("NewGen") on Nov 12, 2024 (Resolution 2024-175). NewGen completed a Cost of Service Analysis and Rate Design Study for the City in the Fall of 2025 which provided the necessary information to calculate the appropriate electric rates that will ensure that the Utility’s ongoing revenue requirements are met, therefore maintaining the Utility's long-term financial stability. NewGen developed a financial model for the electric enterprise which was utilized to complete the Cost of Service Analysis and Rate Design Study.

JUSTIFICATION:

Once the Utility has completed the Cost of Service Analysis and Rate Design Study ("Study"), it is prudent and best practice for an annual review comparing actual results to the original approved financial model. This assessment will include reviewing existing fund balances, billing determinants, and retail rate revenues collected to date compared to estimated projections developed from the 2025 Study.

Additionally, NewGen will evaluate and update any projected annual estimates for the City’s fund balances, billing determinants and retail revenues based on the data provided by the City and make any adjustments and/or recommendations accordingly. Staff is requesting a term of three (3) years.

FISCAL IMPACT:

If approved, the Professional Services Agreement with NewGen Strategies and Solutions, LLC will be for $30,000 per year for a 3-year period for a total not to exceed amount of $90,000. An appropriation in the amount of $30,000 will need to be transferred to Account No. 673-7000-473.33-11 (Professional Services for Fiscal Year 2025/2026.

ALTERNATIVES:

Do not approve Resolution 2026-34 and provide staff with alternate direction.

BUDGETED?:

No
150
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Exhibit A - PSA for NewGen Rate Review 2026.docx

2. Attachment A to Exhibit A - City of Banning_Rate Services Review - 2026_Proposal.pdf

3. Resolution 2026-34.docx
151
1 AGREEMENT FOR PROFESSIONAL SERVICES

BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR (“Agreement”) is made and effective as of the ____, 2026 by and between the CITY OF BANNING, a California municipal corporation (“City”) whose address is 99 East Ramsey Street, Banning, California 92220, and NEWGEN STRATEGIES AND SOLUTIONS, LLC, a Colorado limited liability company (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “party” and hereinafter collectively referred to as the “parties.”

RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:

A. City desires to engage Contractor to provide the following services: Electric Utility Rate Review Services; and
B. Contractor has made a proposal (“Proposal”) to the City to provide such professional services, which Proposal is attached hereto as Exhibit “A” and incorporated herein by this reference; and
C. Contractor agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to City that Contractor possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, City and Contractor agree as follows:

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after 3 years unless extended by the parties with the approval of the City Council of the City.

2. Services to be Performed. Contractor agrees to provide the services (“Services”) as follows: Annual rate review and financial assessment in accordance with Exhibit “A”. All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. 152
2 Contractor designates Scott Burnham, as Contractor’s Representative responsible for overseeing the Services provided by Contractor (“Contractor’s Representative”). City designates the City Manager, or his or her designee, to act as the Project Manager (“Project Manager”) in connection with the delivery of Services under this Agreement. Contractor shall supply, at its sole expense, all equipment, tools, materials, and supplies necessary to perform Services. In the event that the Proposal contains terms that are in addition to or in conflict with this Agreement, other than the price for Services, such terms shall not be valid and shall be of no force or effect.

3. Associates and Subcontractors. Contractor may, at Contractor’s sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as Contractor deems necessary to perform the Services; provided, however, that Contractor shall not subcontract any of the Services without the prior written consent of City.

4. Compensation.

4.01 Contractor shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by City to Contractor under this Agreement shall not exceed the amount of Thirty Thousand Dollars and Zero Cents ($30,000).

4.02 Contractor shall not be compensated for any Services rendered nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the City, in writing.

4.03 Contractor shall submit to City, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The City shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. City shall have the right to review and audit all invoices prior to or after payment to Contractor. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Verification that the hours billed, when multiplied by the approved hourly rates, result in the correct total;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall 153
3 either return the bill to Contractor with a request for explanation or adjust the payment accordingly and give notice to Contractor of the adjustment.

4.04 If the work is satisfactorily completed, City shall pay such invoice within thirty (30) days of its receipt. Should City dispute any portion of any invoice, City shall pay the undisputed portion within the time stated above, and at the same time advise Contractor in writing of the disputed portion.

5. Obligations of Contractor.

5.01 Contractor agrees to perform all Services in accordance with the terms and conditions of this Agreement and the Proposal. In the event that the terms of the Proposal shall conflict with the terms of this Agreement or contain additional terms that purport to bind the City other than the Services to be rendered and the hourly rate for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.

5.02 Except as otherwise agreed by the parties, Contractor will supply all personnel, materials and equipment required to perform the Services. Contractor shall provide its own offices, telephones, vehicles and computers. Contractor will determine the method, details, and means of performing the Services under this Agreement.

5.03 Contractor shall keep City informed as to the progress of the Services by means of regular and frequent consultations. Additionally, when requested by City, Contractor shall prepare written status reports.

5.04 Contractor is responsible for paying, when due, all income and other taxes, fees, and withholding, including withholding state and federal taxes, social security, unemployment and worker’s compensation, incurred as a result of the compensation paid under this Agreement. Contractor agrees to indemnify, defend, and hold harmless City for any claims, costs, losses, fees, penalties, interest, or damages suffered by City resulting from Contractor’s failure to comply with this provision.

5.05 In the event Contractor is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.

5.06 Contractor represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein. 154
4 In the event City is required to obtain an approval or permit from another governmental entity, Contractor shall provide all necessary supporting documents to be filed with such entity.

5.07 Contractor shall be solely responsible for obtaining Employment Eligibility Verification information from Contractor’s employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that Contractor’s employees are eligible to work in the United States.

5.08 In the event that Contractor employs, contracts with, or otherwise utilizes any CalPERS retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the City and shall be subject to the City’s advance written approval.

5.09 Drug-free Workplace Certification. By signing this Agreement, the Contractor hereby certifies under penalty of perjury under the laws of the State of California that the Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug-free workplace.

5.10 Contractor shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder including, but not limited to California Department of Industrial Relations (Cal/OSHA) regulations; and the U.S. Department of Transportation Omnibus Transportation Employee Testing Act, related to their scope of work and operations. In case of conflict, the most stringent shall apply.

5.11 Contractor shall keep itself informed concerning and shall render all Services hereunder in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any federal, state or local governmental entity having jurisdiction in effect at the time service is rendered.

5.12 By executing this Agreement, Contractor warrants that Contractor (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 conditions, circumstances, difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of Services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform the City of such facts and shall not proceed except at Contractor’s sole risk until written instructions are received from the Project Manager. 155
5 Contractor warrants all Services under the Agreement to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Services, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Services (or work of other contractors) damaged by Contractor’s defective Services or which becomes damaged in the course of repairing or replacing defective Services. For any Services so corrected, Contractor’s obligation hereunder to correct defective Services shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Services. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor.

In the event that Contractor fails to fulfil its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Services and any work damaged by such services or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

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

5.13 Time is of the essence in the performance of this Agreement.

6. Insurance. Contractor hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal-OSHA.

Therefore, throughout the duration of this Agreement, Contractor hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit “B” are copies of Certificates of Insurance and endorsements as required by Section 7.02.

If existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor shall provide the following types and amounts of insurance:

6.01 Commercial general liability insurance in an amount of not less than $2,000,000 per occurrence and $4,000,000 in the aggregate; Contractor agrees to have its insurer 156
6 endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

6.02 Business Auto Coverage in an amount no less than $1 million per accident.

If Contractor or Contractor’s employees will use personal autos in performance of the Services hereunder, Contractor shall provide evidence of personal auto liability coverage for each such person.

6.03 Workers’ Compensation insurance for any of Contractor’s employees that will be providing any Services hereunder. Contractor will have a state-approved policy form providing statutory benefits as required by California law. The provisions of any Workers’ Compensation insurance will not limit the obligations of Contractor under this Agreement.

Contractor expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. Sole proprietors with no employees, LLCs, or partnerships using the services of members or partners who do not carry Workers’ Compensation insurance acknowledge that they are not subject to the Workers’ Compensation Act of the State of California and agree to complete a signed workers compensation exemption form.

6.04 Optional Insurance Coverage. Choose and check one: Required __ /Not Required __; Errors and omissions insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by Contractor, its employees and/or agents in the performance of any Services for City.

6.05 Cyber Liability Insurance REQUIRED IF CHECKED HERE ONLY [___] (Technology Professional Liability – Errors and Omissions), with limits not less than $2,000,000 per occurrence or claim, and $2,000,000 aggregate or the full per occurrence limits of the policies available, whichever is greater. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. Contractor will file with City, before beginning professional services, certificates of insurance (Acord Form 25 or equivalent) satisfactory to City evidencing.

6.06 If Claims Made Policies (applies only to professional liability and cyber liability policies):
157
7 i. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
ii. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. iii. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract work.

7. General Conditions pertaining to Insurance Coverage.

7.01 No liability insurance coverage provided shall prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor waives all rights of subrogation against City regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do the same.

7.02 Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.

7.03 All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of “A:VII”. The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

7.04 Self-insurance does not comply with these insurance specifications.

Contractor acknowledges and agrees that that all insurance coverage required to be provided by Contractor or any subcontractor, shall apply first and on a primary, non-contributing basis in relation to any other insurance, indemnity or self-insurance available to City.

7.05 All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 158
8 7.06 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor or arising out of the Services performed under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

7.07 The coverage shall contain no special limitations on the scope of protection afforded to City, its directors, officers, employees, or authorized volunteers. If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

8. Indemnification.

8.01 Contractor and City agree that City, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by Contractor or any subcontractor or agent of either as set forth herein. Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to City. Contractor acknowledges that City would not enter into this Agreement in the absence of the commitment of Contractor to defend, indemnify, and protect City as set forth herein.
a. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its employees, agents and officials, from and against any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, injuries, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys’ fees incurred by City, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.

Contractor’s obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor (and/or Contractor’s agents and/or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City 159
9 as set forth above for liability attributable solely to the fault of City, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. 8A Indemnification Design Professionals. In the event that Contractor is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, Contractor shall defend, indemnify, and hold harmless the City, its officers, employees, trustees and members (“Indemnified Parties”) from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney’s and consultants’ fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death (“Claim(s)”), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Contractor, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties. The cost to indemnify, hold harmless, and defend charged to Contractor shall not exceed Contractor’s proportionate percentage of fault.

9. Additional Services, Changes and Deletions.

9.01. In the event Contractor performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of City, Contractor shall not be compensated for such services. Contractor expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the City in writing.

9.02 Contractor shall promptly advise the City Manager and Finance Director of City as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of Services. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the City and/or City Council.

10. Termination of Agreement.

10.01. Notwithstanding any other provision of this Agreement, City, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days’ written notice to Contractor.
160
10 10.02 In the event of termination, the payment of monies due Contractor for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement. Immediately upon termination, Contractor agrees to promptly provide and deliver to City all original documents, reports, studies, plans, specifications and the like which are in the possession or control of Contractor and pertain to City.

11. Status of Contractor.

11.01 Contractor shall perform the Services in Contractor’s own way as an independent contractor, and in pursuit of Contractor’s independent calling, and not as an employee of City. However, Contractor shall regularly confer with City’s City Manager or Project Manager as provided for in this Agreement.

11.02 Contractor agrees that it is not entitled to the rights and benefits afforded to City’s employees, including disability or unemployment insurance, Workers’ Compensation, retirement, CalPERS, medical insurance, sick leave, or any other employment benefit. Contractor is responsible for providing, at its own expense, disability, unemployment, Workers’ Compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.

11.03 Contractor hereby specifically represents and warrants to City that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of City and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services in the same geographic area where the City is located. Further, Contractor represents and warrants that the individual signing this Agreement on behalf of Contractor has the full authority to bind Contractor to this Agreement.

12. Ownership of Documents; Audit.

12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties, and all other documents of any kind or nature prepared, developed, or obtained by Contractor in connection with the performance of Services performed for the City shall become the sole property of City, and Contractor shall promptly deliver all such materials to City upon request. At the City’s sole discretion, Contractor may be permitted to retain original documents, and furnish reproductions to City upon request, at no cost to City.
161
11 12.02 Subject to applicable federal and state laws, rules and regulations, City shall hold all intellectual property rights to any materials developed pursuant to this Agreement.

Contractor shall not use such data or documents for purposes other than the performance of this Agreement, nor shall Contractor release, reproduce, distribute, publish, adapt for future use or any other purposes, or otherwise use, any data or other materials first produced in the performance of this Agreement, nor authorize others to do so, without the prior written consent of City.

12.03 Contractor shall retain and maintain, for a period not less than four years following termination of this Agreement, all-time records, accounting records and vouchers and all other records with respect to all matters concerning Services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as City may deem necessary, Contractor shall make available to City’s agents for examination all of such records and shall permit City’s agents to audit, examine and reproduce such records.

13. Miscellaneous Provisions.

13.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by Contractor for City and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties.

13.02 Contractor shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of City. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.

13.03 Contractor shall timely file FPPC Form 700 Conflict of Interest Statements with City if required by California law and/or the City’s conflict of interest policy.

13.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which that party may be entitled.

13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.
162
12 13.06 Contractor covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

13.07 Contractor has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. Contractor agrees that they are unaware of any financial or economic interest of any public officer or employee of the City relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the City may immediately terminate this Agreement by giving notice thereof. Contractor shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.

13.08 Improper Consideration. Contractor shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the City in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by City. The City, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the City with respect to the proposal and award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately report any attempt by any City officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor.

13.09 Severability. If any portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

13.10 Prevailing Wages. Contractor shall be responsible to comply with applicable prevailing wages laws. As a condition of payment, if applicable Contractor shall show proof of payment of wages under applicable state and federal laws and regulations relating to prevailing wages in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1”, for Riverside County and/or 40 U.S.C. Section 276a, et. seq. Such wage rates shall conform with those posted at City offices and the project site. In the event that the Contractor fails to pay the prevailing wages, the Contractor shall be solely liable for penalties and for the 163
13 shortfall in wages and shall indemnify, defend and hold harmless City under Section 8.01 against any of the same. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1776 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

13.11 Covenant Against Discrimination. Contractor 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, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry.

13.12 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 work or Services by Contractor 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.

13.13 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.

13.14 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 purpose of this Agreement. 164
14 13.15 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.

13.16 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 reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified neither party shall be responsible for the service of the other.

13.17 The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. The parties expressly adopt and confirm each electronic signature made by a party to this Agreement, regardless of whether delivered in person, by mail, courier, facsimile, email, or in portable document format (PDF), as if the same were manually signed and delivered in person. Each party agrees not to assert that any electronic signature is inadequate to bind such party to the same extent as if signed manually and delivered in person.

13.18 This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which counterparts taken together shall constitute one and the same instrument for all purposes of this Agreement.

13.19 The recitals set forth in the preamble of this Agreement are hereby incorporated into and made a substantive part of this Agreement as if fully set forth herein. [SIGNATURES ON FOLLOWING PAGE]
165
15 IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.

CITY: CONTRACTOR:

CITY OF BANNING NEWGEN STRATEGIES AND

SOLUTIONS, LLC
By:_______________________ By:_______________________
Print Print
Name: ____________________ Name: ____________________
Date: _____________________ Date: _____________________ ATTEST:

By: ______________________
Date: _________
APPROVED AS TO FORM:

By: ______________________
John O. Pinkney, City Attorney
Date: _________
166
16 EXHIBIT “A”

PROPOSAL
167
17 EXHIBIT “B”

CERTIFICATES OF INSURANCE
168
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
225 Union Boulevard
Suite 450
Lakewood, CO 80228
Phone: (720) 633-9514
December 12, 2025
via email
Art Vela
City Manager
City of Banning
99 East Ramsey Street
Banning, CA 92220
Subject: Electric Utility Rate Review Services – 2026
Dear Art:

We hope that all is well with you and your colleagues at the City of Banning (the City). As requested, NewGen Strategies and Solutions, LLC (NewGen) is pleased to submit our scope of services and price proposal to provide rate review services for the City and Banning Electric Utility (BEU). We appreciate the opportunity to continue supporting the City’s commitment to financially sound utility operations and fair, well-supported retail rate structures.

The intent of the rate review services is to provide an independent assessment of the impact of the recent electric retail rate changes implemented by the City. This assessment will include reviewing existing fund balances, billing determinants, and retail rate revenues collected to date compared to estimated projects developed for the 2025 Electric Cost of Service (COS) and Rate Design Study (Study). Additionally, NewGen will evaluate and prepare projected annual estimates for the City’s fund balances, billing determinants, and retail revenues based on the data provided by the City. This information will be combined with data provided by the City regarding its existing and projected operating expenses, existing and projected debt issues, changes in reserve balances, and other revenue-related data. NewGen will provide the City with revised financial projections that will include an assessment of how, or if, the City is projected to meet its applicable financial metrics (see Scope of Proposed Services in Attachment A).

NewGen will conduct this assessment on a time-and-materials basis with our existing hourly rates and reasonable travel-related expenses for a not-to-exceed estimated budget of $30,000.

As always, we appreciate the opportunity to continue to be of service to you and the City. If you have any questions regarding this letter or need additional information, please contact me directly at (720) 259- 1762 or via email at [email protected].

Sincerely,
NewGen Strategies and Solutions, LLC
Scott Burnham
Partner
Docusign Envelope ID: 939DFE30-DF84-4104-9D15-2D09A7019F72 112169
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
Attachment A
Electric Utility Rate Review Services – 2026
Scope of Proposed Services
NewGen Strategies and Solutions, LLC (NewGen) will perform the following tasks as part of the Electric Utility Rate Review Services – 2026 (Services) for Banning Electric Utility (BEU):
 Review individual and collective reserve fund account balances to assess adequacy, targets, and trends.
 Analyze actual and projected billing determinants for retail rates by customer class.  Evaluate actual and projected retail rate revenues by class, including consistency with system costs.  Review operating expenses incurred to date and estimate expenses for the remainder of the year.  Review capital improvement expenses incurred to date and estimate remaining fiscal year (FY) capital expenditures.
 Assess existing and projected debt issues, as applicable, and reflect debt impacts in long-range planning.
 Update long-range (for the five upcoming FYs) projections for reserves, revenues, and expenses, including an updated financial forecast analysis.
 Compare existing retail rates by class to the test year cost of service (COS) analysis to identify alignment or gaps.
 Develop recommendations for potential rate changes, as necessary, to support cost recovery and policy goals.
 Provide a letter report summarizing analysis, methodology, and findings, along with a presentation to City of Banning (City) staff and/or Council if requested.

Price Proposal
NewGen will conduct this assessment on a time-and-materials basis with our existing hourly rates and reasonable travel-related expenses for a not-to-exceed estimated budget of $30,000. Assistance provided to the City will be performed at the direction of the City staff. As services are requested and performed, NewGen proposes to invoice the City on a monthly basis for actual hours worked at our then-applicable hourly billing rates.

Docusign Envelope ID: 939DFE30-DF84-4104-9D15-2D09A7019F72 112270

CITY OF BANNING, CA
ELECTRIC UTILITY RATE REVIEW SERVICES – 2026
2 Thoughtful Decision Making for Uncertain Times
NewGen’s hourly billing rates, effective January 1, 2026, through December 31, 2026, are as follows:

NewGen Strategies and Solutions, LLC
2026 Billing Rates
Position Hourly Billing Rate
Partner $305 – $455
Principal $295 – $455
Senior Manager $250 – $295
Manager $220 – $250
Senior Consultant $200 – $220
Consultant $185 – $200
Administrative Services $145
Note: Billing rates are subject to change based on annual reviews and salary increases.

Docusign Envelope ID: 939DFE30-DF84-4104-9D15-2D09A7019F72 112371
Resolution 2026-34

RESOLUTION 2026-34

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

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH NEWGEN STRATEGIES

AND SOLUTIONS, LLC FOR THE ELECTRIC UTILITY RATE REVIEW SERVICES IN THE AMOUNT OF $90,000 FOR A 3-YEAR TERM
WHEREAS, the City of Banning owns and operates its own Municipal Electric Utility (“Utility”); and
WHEREAS, the Cost-of-Service Analysis and Rate Design Study (“Study”) was performed and completed in October 2025; and
WHEREAS, it is fiscally prudent and best practice for the Utility to annually review actual results to the original financial model from the Study; and WHEREAS, the Utility desires to engage NewGen Strategies and Solutions, LLC. to conduct the annual rate review based on their proven expertise and prior experience performing the City’s Cost-of-Service Analysis and Rate Design Study in October 2025; and given their unique knowledge of the City’s proprietary data and methodologies, as no other firm possesses the same level of insight and historical context necessary to ensure accuracy, consistency, and continuity in the review process; and
WHEREAS, the Professional Services Agreement with NewGen Strategies and Solutions, LLC will be for an annual amount of $30,000 per year for a total not to exceed amount of $90,000 for a three-year term.

WHEREAS, continuing with NewGen Strategies and Solutions, LLC through a sole source professional services agreement is in the best interest of the City to maintain integrity and avoid duplication of work, which would result in unnecessary additional costs and delays.

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

SECTION 1. The City Council approves the Professional Services Agreement with NewGen Strategies and Solutions, LLC for the Electric Utility Rate Review Services in an amount not to exceed $90,000 for a three-year term, attached hereto as Exhibit A.

SECTION 2. The City Council authorizes the City Manager to make non-substantive changes to the Professional Services Agreement and to execute the Agreement with NewGen Strategies and Solutions, LLC on behalf of the City Council.

SECTION 3. The City Council authorizes the City Manager, or his 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 24th day of February 2026. 172
Resolution 2026-34

Richard Royce, Mayor
City of Banning
ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
173
Resolution 2026-34

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-34, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of February 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
174
Resolution 2026-34

EXHIBIT A
Professional Services Agreement for Electric Rate Review Services 175

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Kenneth Louie,
MEETING DATE: February 24, 2026
SUBJECT: Consideration of Resolution 2026-36, Approving the City of Banning Interfund Advances or Loan Policy
RECOMMENDATION:

Adopt Resolution 2026-36
BACKGROUND:

Interfund loans involve the lending of cash from one City fund to another for a specific purpose with a requirement for repayment. The practice of interfund loans is a common, recognized, necessary, and acceptable municipal finance practice. The purpose of the Interfund Loan Policy is to provide guidelines for the proper documentation and approval of interfund loans.

Interfund advances or loans may be made to offset timing differences in cash flow, offset timing differences between expenditures and reimbursements, typically associated with grant funding, providing funds for interim financing in conjunction with obtaining long-term financing, and for short-term borrowing in place of external financing.

The City Manager may initiate short-term interfund advancements or loans under one (1) year which shall be evidenced by a Loan Agreement. Long-term advancements or loans greater than one (1) year shall be evidenced by a Loan Agreement and City Council resolution approving the interfund advance or loan.

The Policy will improve accountability of cash being borrowed between funds and document the methods used by the City to demonstrate prudent financial management over interfund borrowing.

JUSTIFICATION:

Generally accepted account principles permit advances or loans between the funds that are used within a fund accounting framework. The Interfund Advances or Loan Policy (“Policy”) is established to ensure that all interfund advances or loans are appropriately authorized, properly documented, and will not hinder the accomplishment of any function or project for which the lending fund was established.

The Policy is intended to apply uniformly and consistently to all funds within the City and to meet the City’s financial control, budget authority, audit requirements, and applicable law.

FISCAL IMPACT:

None related to this report.

ALTERNATIVES:
176

1. Adopt Resolution 2026-36 as recommended.

2. Adopt Resolution 2026-36 with modifications.

3. Do not approve Resolution 2026-36 and provide alternative direction to staff.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution.2026-36.docx

2. Interfund Loan Policy.docx
177
Resolution 2026-36

RESOLUTION 2026-36

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

APPROVING THE CITY OF BANNING INTERFUND ADVANCES OR LOAN POLICY WHEREAS, Interfund loans involve the lending of cash from one City fund to another for a specific purpose with a requirement for repayment; and WHEREAS, the practice of interfund loans is a common, recognized, necessary, and acceptable municipal finance practice; and
WHEREAS, the purpose of the Interfund Loan Policy is to provide guidelines for the proper documentation and approval of interfund loans; and
WHEREAS, the Interfund Loan Policy will improve accountability for borrowing money between funds and documenting the methods used by the City to demonstrate prudent financial management over interfund borrowing; and
WHEREAS, the Interfund Loan Policy is intended to apply uniformly and consistently to all funds within the City and to meet the City’s financial controls, budget authority, audit requirements, and applicable law.

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

SECTION 1. The City Council approves the City of Banning Interfund Advances or Loan Policy attached as Exhibit A to this resolution.

SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 24th day of February 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
178
Resolution 2026-36

APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
179
Resolution 2026-36

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-36, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of February 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
180
Resolution 2026-36

EXHIBIT A
City of Banning Interfund Advances or Loan Policy
181

EXHIBIT A
City of Banning
Interfund Advances or Loan Policy
I. PURPOSE
The City of Banning (“City”) Interfund Advances or Loan Policy (“Policy”) sets forth the guidelines for the City Council to authorize interfund advances or loans, establishes administrative procedures for the implementation of interfund advances or loans, improves accountability of cash being borrowed between funds, and documents the methods used by the City to demonstrate prudent financial management over interfund borrowing.

The Policy requires City Council approval of interfund advances or loans, except for advances or loans as required for fiscal year-end Generally Accepted Accounting Principle (GAAP) presentation of the City’s financial statements or short-term advances or loans of one (1) year or less.

II. POLICY
Generally Accepted Accounting Principles permit advances or loans between the funds that are used within a fund accounting framework. Interfund borrowing is a recognized, common, and necessary practice in municipal financing.

This Policy is established to ensure that all interfund advances or loans are appropriately authorized, properly documented, and will not hinder the accomplishment of any function or project for which the lending fund was established.

Interfund advances or loans may be made for the following reasons:
 To offset timing differences in cash flow
 To offset timing differences between expenditures and reimbursements, typically associated with grant funding.
 To provide funds for interim financing in conjunction with obtaining longterm financing.  For short-term borrowing in place of external financing. 182
Interfund advancements or loans may not be used to solve ongoing Structural Budget deficit, must have an identified repayment source and date; include an interest component, paid on an annual basis, with a minimum investment rate at least equal to the Local Agency Investment Fund (“LAIF”) rate the lending fund would have received had the advance or loan not occurred.

Short term advances or loans
The City Manager may initiate short term interfund advancements or loans under one (1) year which shall be evidenced by a Loan Agreement. The Loan Agreement shall include the following terms and conditions: the date of Loan Agreement; the amount of interfund advance or loan; the purpose of interfund advance or loan; the interest rate or rates on interfund advance or loan; the schedule of interfund advance or loan principal and interest payments (the interest payments will be calculated on an annual basis); the source of interfund advance or loan repayment by borrowing fund.

The City Manager must provide the City Council with the details of the interfund advancement or loan at the next available regular City Council meeting.

Long term advances or loans
Interfund advancements or loans greater than one (1) year shall be evidenced by a Loan Agreement and a City Council Resolution approving the interfund advance or loan. The Loan Agreement shall include the following terms and conditions: the date of Loan Agreement; the amount of interfund advance or loan; the purpose of interfund advance or loan; the interest rate or rates on interfund advance or loan; the schedule of interfund advance or loan principal and interest payments (the interest payments will be calculated on an annual basis); the source of interfund advance or loan repayment by borrowing fund. At no time will the term of the interfund advancement or loan exceed ten (10) years.

Interfund advances or loans will follow Generally Accepted Accounting Standards and will be included in the proposed and adopted budget and annual report, as applicable. The Annual Comprehensive Financial Report will also consistently include the loan term, rate of interest, and the interest amount due in its calculation of the total liability associated with the loan (the interest payment will be calculated on an annual basis).
183
If any provision of this Policy conflicts with applicable law, applicable law shall prevail.

III. DEFINITIONS
As used in this Policy, the following terms shall have the meanings specified below:
a. Interfund Advance or Loan - Interfund Advance or Loan means an advance or loan of cash from one City fund to another City fund, subject to future repayment of principal and interest (interest will be calculated on an annual basis); but it does not constitute an expenditure or a use of retained earnings, fund balance, or unappropriated surplus of the lending fund. b. Loan Agreement - A Loan Agreement is a formal contract between the City lending fund and the borrowing fund. Loan Agreements shall specify all the details of the interfund advancement or loan, such as the principal amount, interest rate, amortization period, term, fees, payment terms, and any covenants.
c. Structural Budget Deficit - The structural budget represents the budgeted revenues and expenditures, and a deficit occurs when expenditures exceed revenues.

IV. PROCESS
This Policy is intended to apply uniformly and consistently to all funds within the City and to meet the City’s financial control, budget authority, and audit requirements as well as applicable law.

1. An analysis of the financial condition of each fund involved in the interfund advance or loan process prior to approval is to be completed, including a review of cash positions, revenues, expenditures, assets, liabilities, and potential sources of revenue. The analysis will determine the funds' ability to pay obligations such as ongoing operations, principal and interest payments for existing long-term debt, and agreements or contracts with third parties. To the extent possible, only funds with an ability to meet all expenditure and debt obligations will be included in an interfund advance or loan.
184

2. The lending fund's analysis of financial condition must also demonstrate that the lending fund fully covers its bond reserves ratios, if any; cash in excess of this amount can be made available for the interfund advance or loan process.

3. If the determination has been made to establish an interfund advancement or loan, the Finance Director (FD) will report to the City Manager the need for the advance or loan. The City Manager upon accepting the report will request the FD to prepare the necessary documents for the City Manager, if the interfund advance or loan is short-term, or to prepare the necessary City Council documents including the Loan Agreement. The documents will have the following information:
✓ the purpose for which the advance or loan is being made. ✓ the identification of both the lending and borrowing fund, or funds. ✓ the dollar amount of the advance or loan.
✓ the maturity date on which all principal together with all accrued and unpaid interest will be due and payable.
✓ the applicable interest rate.
✓ the financial plan for repayment
Attached: Loan Document
185

INTERFUND LOAN AGREEMENT
This Loan Agreement ("Agreement") is executed as of (Month Date, Year,) between the City of Banning ______ Fund ("Borrower") and the City of Banning ______ Fund ("Lender"). Lender agrees to lend to Borrower, and Borrower agrees to repay Lender an amount not to exceed the Principal Amount and interest accrued on the unpaid loan balance, in accordance with the following:

1. Purpose of the Loan: To provide funds for use by Borrower or its designee, to enhance Borrower's cash position. The loan shall account for borrowing between the _______ Fund, Fund No.____ and the _______ Fund, Fund No. ____ and shall not be available for appropriation or be considered revenue to the Borrower.

2. Principal Loan Amount: $ ________________. The loan will be recorded as receivable to the Lender and payable to the Borrower.

3. Term of the Loan: The term of this loan shall begin on __, and the outstanding balance is to be repaid by _______.

4. Scheduled Payments: Borrower shall make payments no less than annually. Such payments are due within thirty (30) days following the final closing of the Borrower's Financial Books for each fiscal year. At a minimum, annual Scheduled Payments shall equal the amount of any accrued interest through June 30th of that fiscal year. The loan may be prepaid, or paid prior to the end of the term, in part or whole without penalty. See Exhibit A - Repayment Schedule.

5. Repayment Source: The repayment source shall be from ____Fund.

Missed scheduled payments shall be reported by the Finance Department to the City Manager and the City Council.
186

6. Rate of Interest: Interest shall accrue and will be paid annually on June 30 on the outstanding loan balance at the variable rates based on the City of Banning’s interest bearing LAIF account, currently at XXX% for fiscal year______ Loan interest will be recorded as revenue to the Lender and expenditure to the Borrower.

7. General Provisions: This Agreement constitutes the full Agreement by and between the Borrowing Fund and Lending Fund and no other representations have been made regarding the contents of this Agreement. This Agreement shall not be amended, modified, or altered in any respect unless such amendment, modification or alteration has been reduced to writing and executed by both parties.

LENDER: City of Banning,
Fund Name: __________ Fund, No. _________
BORROWER: City of Banning
Fund Name: ___________ Fund, No. ________
By: ________________________________________
City Manager
187

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Nicole Jews, Human Resources Manager
Lisa Rossi, Human Resources Director
MEETING DATE: February 24, 2026
SUBJECT: Consideration of Resolution 2026-37, Amending the Classification and Compensation Plan, Classification Change (Civil Engineer Series) RECOMMENDATION:

Adopt Resolution 2026-37
BACKGROUND:

It is necessary to amend the City’s Classification & Compensation Plan from time to time to maintain a current plan that reflects budget amendments, organizational structure, and department needs.

Past City Council resolutions have identified the necessity to maintain a current Classification & Compensation Plan that reflects the nature of work and organizational structure, that the plan is updated to reflect both market changes and appropriate compensation for work performed.

JUSTIFICATION:

Proposed changes to the Classification and Compensation plan include:

Public Works Department – Engineering Division
Currently the Assistant Civil Engineer (Job Code 4325) position Grade T63, Associate Civil Engineer (Job Code 4322) position Grade T79 and Senior Civil Engineer (Job Code 4350) position Grade T86 are listed as individual job classifications. These positions have been difficult to recruit individually. Staff would like to change these positions to a three-tiered job classification. By changing to a tiered job classification system, this provides a structured way to manage compensation and career progression, ensure employees in similar roles receive equitable pay while still recognizing different levels of skill and responsibility.

FISCAL IMPACT:

Public Works Department – Engineering Division
Position / Range Current Salary Range
Assistant Civil
Engineer / T63
$ $68,515.36 -
$92,692.89
188
Associate Civil
Engineer / T79
$ 101,711.08 -
$137,602.63
Senior Civil Engineer
/ T86
$120,901.72 -
$163,565.22
Total Annual Fiscal
Impact
$0
ALTERNATIVES:

Do not adopt Resolution 2026-37 and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

No
ATTACHMENTS:

1. Resolution 2026-37.docx

2. Staff Engineer-Assistant.Associate.Senior.pdf
189
Resolution 2026-37

RESOLUTION 2026-37

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

AMENDING THE CLASSIFICATION & COMPENSATION PLAN FOR THE CITY OF BANNING

TO CHANGE THE POSITION CLASSIFICATION FOR THREE CIVIL ENGINEER POSITIONS WHEREAS, it is necessary to amend the City’s Classification & Compensation Plan from time to time to maintain a current plan that reflects the nature of work, organizational structure, or otherwise; and
WHEREAS, staff would like to change the Assistant Civil Engineer, Associate Civil Engineer and the Senior Civil Engineer positions to a three-tiered job classification. This will provide a better opportunity to hire qualified individuals for one of the three tiers; and WHEREAS, changes to job descriptions, job titles, and/or pay ranges require City Council approval.

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

SECTION 1. The City Council approves changing the Assistant Civil Engineer, Associate Civil Engineer and the Senior Civil Engineer positions to a three-tiered job classification for Fiscal Year 2025-26.

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

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

PASSED, APPROVED AND ADOPTED this 24th day of February, 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
190
Resolution 2026-37

APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney LLP
191
Resolution 2026-37

CERTIFICATION:

I, ____________________, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-37, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of February, 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
192
Resolution 2026-37

Exhibit A
Staff Civil Engineer Job Description
193
1 JOB DESCRIPTION
TITLE: Staff Civil Engineer (Assistant/Associate/Senior) JOB CODE: 4322/4325/4350 DEPARTMENT: Public Works FLSA STATUS: VARIES
REPORTS TO: PUBLIC WORKS DIRECTOR/DEPUTY PUBLIC

WORK DIRECTOR
UNION STATUS: Represented
SUPERVISES: n/a EFFECTIVE DATE: 7/01/2019
SALARY: ASSISTANT - T63 $68,515.36 - $92,692.89
ASSOCIATE - T79 $101,711.08 - $137,602.63
SENIOR - T86 $120,901.72 - $163,565.22
REVISED DATE: 02/24/2026

JOB PURPOSE/SUMMARY
This is a multi-level series which includes Assistant, Associate, and Senior Engineer positions. Working under general direction of the Public Works Director, Deputy Public Works Director and/or the City Engineer. These positions perform professional, paraprofessional, and technical engineering work and related duties in support of the Land Development and Capital Improvement Projects, and related work as assigned and required.

PERFORMANCE EXPECTATIONS
• Leadership: Contributes to a positive work culture consistent with the City of Banning Leadership Philosophy, actively welcomes new approaches to public service and supports change and process improvements at all levels within the organization. • Management: Able to independently assess and organize personal work performance while contributing to the overall organization.
• Teamwork: Demonstrates ability and willingness to work collaboratively with a team. • Communication: Communicates effectively with peers, supervisors, subordinates, and individuals to who service is provided.

ABOUT THE CITY OF BANNING
The City of Banning is located in the San Gorgonio Pass area of Southern California. The community of over 30,000 people is diverse with income levels slightly lower than other areas of Riverside County. However, growth and development is occurring rapidly, which will create new jobs, increase the population and raise income levels. Our employees are the most important asset in preserving our Proud History, Creating a Prosperous Tomorrow, and in responding to the community’s needs. The City provides competitive salaries, outstanding benefits and professional growth opportunities.

CITY VISION
The City of Banning promotes and supports a high quality of life that ensures a safe and friendly environment, fosters new opportunities and provides responsible, fair treatment to all and is the pride of its citizens.

CORE VALUES
▪ Customer Service Excellence: We excel in what we do by staying responsive, flexible, patient, effective, and professional.
▪ Integrity: We are ethical, accountable and compliant with our responsibility to the public and community.
▪ Teamwork: We work together and maintain great communication and respect and foster a fun and enjoyable atmosphere to take pleasure in what we do.
▪ Yes-Minded: We recognize diversity and maintain a positive attitude to do all we can to serve the community in the safest and most responsible manner.
194
2 DISTINGUISHING CHARACTERISTICS
The Assistant Engineer is an entry-level non-exempt, classification in the Engineer series. Initially performing tasks under general supervision while learning job tasks. The Assistant Engineer is distinguished from the higher-level classifications by the performance of less than the full range of duties assigned to the Associate Engineer.

The Associate Engineer is an experienced journey-level exempt, classification in the series, expected to independently perform the full scope of duties associated with the performance of technical engineering activities. The Associate Engineer is distinguished from the Senior Engineer in that the Senior Engineer is responsible for the performance and professional engineering work, including project management.

The Senior Engineer is a fully qualified professional exempt, classification, and includes supervisory responsibilities of engineering staff in conjunction with the City Engineer.

Under general supervision, performs a variety of professional engineering field and office work which may include basic design, specification and inspection of construction projects for sewers, streets, structures, parks and related public works projects; performs related work as assigned.

ESSENTIAL FUNCTIONS
The following duties ARE NOT intended to serve as a comprehensive list of all duties performed by all employees in this classification. Shown are duties intended to provide a representative summary of the major duties and responsibilities. Incumbent(s) may not be required to perform all duties listed and may be required to perform additional, position-specific duties. • Designs and prepares drawings and engineering specifications for public works construction projects, including water, wastewater, drainage, traffic and street projects. • Reviews plans and specifications submitted by developers and contractors for conformance with City requirements.
• Make general engineering and plan checking calculations for public works projects • Prepares quantity and cost estimates for construction projects • Checks field data and survey party notes and assists in transferring data to maps and other required records
• Reviews and writes legal descriptions for properties
• Reviews plans submitted by developers, contractors or the public and issues required permits • Acts as project engineer on limited design and construction contracts, including preparing progress reports and recommending progress payments and change orders, as necessary. • Performs more complex construction inspections on site to confirm contractual compliance to engineering and construction standards
• Performs field observations and reporting duties as required. • Performs studies related to traffic engineering activities, including making traffic counts and maintaining collision records.
• Reviews plans and applications for conformance to applicable codes, regulations, and ordinances. • Maintains records of city owned assets
• Utilize permit management software to review and communicate department requirements to applicants
• Collaborates with multiple departments on private development and capital improvement projects Associate Engineer – Items listed above, plus;
• Prepares and reviews project schedules and cost estimates • Provide public access to department records
• Assist the public regarding the City’s policies and procedures • Utilize asset management software to review and evaluate capital projects • Utilize permit management software to analyze permit data, review and communicate department requirements to applicants, and recommend process improvements 195
3 Senior Engineer – Items listed above, plus;
• Direct usage of asset management software to implement City goals and required reporting • Utilize permit management software and department lead, train staff, and provide oversight to ensure appropriate usage and application
• Manage the work of consultants and contractors through the development of project requirements including project strategies, budget, schedule, land acquisitions, permitting requirements and compliance with City policies, procedures, design and construction standards, regulations, and codes.
• Request, evaluate, negotiate, and manage consultant proposals, sets project schedules, design review elements, agency coordination, owner reviews, regulatory agency compliance, budgeting considerations in accordance with appropriate engineering standards. • Example duties and projects include;
o Preparation of Conditions of Approval
o Plan check of improvement plans
o Presentations to Planning Commission and other City boards and commissions o Direct meetings with development
o Represent the City at construction meetings
KNOWLEDGE OF:
• Knowledge of applicable city, county, state and Federal statutes, rules, regulations, ordinances, codes, administrative orders and other operational guidelines and directives. • Knowledge of the City's and the Department's policies and procedures. • Knowledge of research methods and procedures.
• Knowledge of engineering principles and methods.
• Knowledge of tends and practices in public improvement projects.

Associate Engineer – Items listed above, plus:
• Civil engineering principals and practices relating to design and construction • Municipal, state, and federal codes relating to design and construction • Analyze problems, identify alternatives, and negotiate effective solutions • Bookkeeping and/or accounting principles
• Principals and practices of project management
• External customer service
• Basic contract law, bond, and insurance requirements
Senior Engineer – Items listed above, plus
• Knowledge of management and/or supervision principles • Principals and practices of process improvement
• Principals and practices of conflict resolution
• Municipal administration practices and procedures
• Current supervision and evaluation techniques
• Standard Specifications for Public Works Construction • Public contracting policies and practices
ABILITY TO:
• Read, understand, interpret and apply relevant City, County, State and Federal statutes, rules, regulations, ordinances, codes, administrative orders, policies and procedures and other operational guidelines and directives.
• Assess and prioritize multiple tasks, projects and/or demands. • Work within deadlines to complete projects and assignments. • Establish and maintaining effective working relations with co-workers, staff, vendors, contractors, visitors, the general public and others having business with the City of Banning. • Operate a personal computer utilizing a variety of software applications • Assess, analyze, identify, and implement solutions to complex problems 196
4 • Work within a fact paced environment and provide rapid responses to problems/concerns • Multi-task and be flexible to changing requirements
• Work in a safe manner and report unsafe activity and conditions Associate Engineer – Items listed above, plus:
• Apply principals and practices of civil engineering to internal and external design and construction projects
• Prepare appropriate reports and studies relative to the assigned area of responsibility that adhere to codes, laws, regulations, and guidelines relating to the engineering activity • Identify, communicate, and negotiate the resolution of complex engineering issues • Adapt to diverse and changing customer needs
• Maintain attention to detail and produce high quality deliverables • Coordinate multiple projects
• Communicate both orally and written, clearly and effectively, engineering requirements and process to City staff, development clients, and the general public • Prepare oral and written reports for presentation to executive management and elected/appointed bodies
• Assist in the preparation of Scope of Work for necessary services • Issue encroachment permits for construction work in the City’s right of way • Maintain plats and records relating to streets, drainage, utilities • Maintain records of city owned assets as assigned (streets, drainage, facilities, utilities) Senior Engineer – Items listed above, plus:
• Lead, supervise, plan, coordinate, and manage engineering staff • Coordinate discrepancies and resolve problem situations with outside parties • Oversee land and easement acquisitions processes
• Supervise the preparation and maintenance of maps and records • Supervise the preparation of improvements agreements and improvement bonds • Review and recommend approval of all subdivision maps, engineering improvement plans, and technical studies to the City Engineer
• Meet and confer with developers, contractors, engineers, and the general public relative to City policies, regulations, and engineering standards and procedures. • Interpret, apply, and recommend revisions as appropriate for relevant codes, ordinances, rules, and regulations.
• Manage and review plans and inspections for public infrastructure improvements, public and private
• Administer department operations and maintenance contracts, such as 3 rd party plan review and
inspections and track affiliated costs
• Provide comprehensive oversight and documentation
• Develop and implement policies and procedures to expedite the development review process • Provide input on the preparation and administration of the departments budget • Prepare Scope of Work and Requests for Proposals for necessary services • Serve as staff to a variety of City and outside boards, commissions, councils, and committees • Supervise, train, and evaluate assigned staff

MINIMUM QUALIFICATIONS
Assistant Engineer
• Bachelor’s degree from an accredited four-year university with major coursework in Civil Engineering or closely related engineering field
Associate Engineer
• Bachelor’s degree from an accredited four-year university with major coursework in Civil Engineering or closely related engineering field
• Engineer-In-Training Certificate
• Four (4) years of full-time professional level experience in a civil engineering field • Two (2) years’ experience in project management of civil engineering work 197
5 Senior Engineer
• Bachelor’s degree from an accredited four-year university with major coursework in Civil Engineering or closely related engineering field
• Valid Civil Engineering Professional licensure in the State of California • Five (5) years’ full time professional level experience in a civil engineering field • Two (2) years’ experience in project management of civil engineering work • Two (2) years’ in a supervisory role or in responsible charge overseeing and reviewing engineering work prepared by others
Any equivalent combination of education, training, and experience which provides the requisite knowledge, skills, and abilities for this job may be substituted for evaluation at the discretion of the City Manager.

DESIRABLE QUALIFICATIONS
Assistant Engineer
• Engineer-In-Training certificate
Associate Engineer
• Two (2) years’ experience in public sector setting
Senior Engineer
• Five (5) years’ experience in a public sector setting • Two (2) years acting in responsible charge for engineering services

ADDITIONAL REQUIREMENTS
• Valid California drivers’ licenses at time of hire
• APWA, ASCE, or other professional organization registration and participation in continuing education and certification programs
• May be required to work outside the traditional work schedule • May be subject to call out in certain cases

PHYSICAL AND ENVIRONMENTAL WORKING CONDITIONS
Work is primarily performed in an office environment which is busy, oriented to public service, and subject to occasional work interruptions. Noise level in the work environment is usually moderately loud.

Occasional attendance at meeting before and after regular work hours is required.

While performing the duties of this job, the employee is frequently required to walk, sit, talk, and hear. The employee is frequently required to use hands to finger, handle, feel or operate objects, tools, or controls and reach with hands and arms. May be exposed to extreme weather conditions, potential physical harm, infectious diseases, hazardous chemicals and/or dangerous machinery.

The employee must regularly lift and/or move up to ten (10) pounds, and occasionally lift and/or move up to twenty five (25) pounds. Specific vision abilities required by this job include close vision, color vision, and the ability to adjust focus.

The City of Banning is an equal opportunity employer. All employees and candidates for employment will be recruited, selected, trained, promoted, compensated and, if necessary, disciplined or terminated without regard to sex/gender, race, national origin, religion, creed, color, marital status, veteran status, age, national origin, pregnancy, sexual orientation, gender identity, disability, genetic information or any other basis prohibited by law.

While requirements may be representative of minimum levels of knowledge, skills and abilities to perform this job successfully, the incumbent will possess the abilities or aptitudes to perform each duty proficiently.

This job description does not constitute an employment agreement between the Employer and Employee and is subject to change as the needs of the Employer and requirements of the job change. 198

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Art Vela, Interim City Manager
PREPARED BY: Patrick Safari, Capital Improvement Projects Manager Nathan Smith, Deputy Director of Public Works/City Engineer MEETING DATE: February 24, 2026
SUBJECT: Consideration of Resolution 2026-38, Approving Amendment No. 1 to the Professional Services Agreement with UltraSystems Environmental, Inc. for an Additional Amount of $230,770 for Construction Environmental Monitoring Services Related to the Sun Lakes Boulevard Extension Project
RECOMMENDATION:

Adopt Resolution 2026-38
BACKGROUND:

The Sun Lakes Boulevard Extension is a critical infrastructure project that will construct a new 1-mile roadway segment, providing a vital east-west connection between Highland Home Road and Sunset Avenue. The project is designed to improve traffic circulation, reduce congestion on parallel routes, and support planned community development.

On January 27, 2026, City Council adopted Resolution No. 2026-18, awarding a Professional Services Agreement to UltraSystems Environmental, Inc. (UltraSystems) for Construction Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project in the amount of $381,900.

Since the award of the contract, staff and UltraSystems have identified additional, non-discretionary permitting and regulatory compliance requirements that were not within the original scope of the environmental monitoring services agreement. While the original scope focused on field monitoring during construction (i.e., biological resources, nesting birds, and paleontological resources), the concurrent administration and compliance documentation for three specific state and federal permits require dedicated technical expertise.

These permits, administered by the California Department of Fish and Wildlife (CDFW) and the Regional Water Quality Control Board (RWQCB), carry strict reporting requirements, and failure to comply could result in substantial fines, project shutdowns, or legal liability. The City is legally bound to fulfill these requirements under the California Environmental Quality Act (CEQA) Mitigation Monitoring and Reporting Program (MMRP) and the terms of the permits themselves.

JUSTIFICATION:

To ensure full regulatory compliance and avoid project delays, staff recommend approving Amendment No. 1 to the Professional Services Agreement with UltraSystems. This amendment will fund additional services related to the following permits, which are outside the current scope of work:
199
Incidental Take Permit (ITP) Compliance (CDFW): Preparation of monthly and annual compliance reports, monitoring of avoidance and minimization measures specific to covered species, and coordination with CDFW regarding potential take events.

Streambed Alteration Agreement Compliance (CDFW): Documentation of impacts to riparian habitat and streambeds, as-built surveying of temporary vs. permanent impacts, and preparation of the final compliance report required to close out the permit. Waste Discharge Requirements / Dredge or Fill Discharge Permit Compliance (RWQCB):

Preparation and submittal of weekly construction site monitoring reports, stormwater compliance documentation, water quality sampling, and final site closure certification to satisfy Order R7-2025- 0014 requirements.

These tasks are highly technical, time-sensitive, and were originally assumed to be covered under the City’s general construction management or prime design contracts; however, those existing agreements do not include the specialized regulatory expertise required. UltraSystems, as the City’s appointed environmental monitor, is uniquely positioned to perform this work efficiently without requiring a new procurement process, avoiding mobilization delays and ensuring continuity of documentation.

Staff has reviewed the proposed scope and fee of $230,770 and finds it to be fair, reasonable, and in the best interest of the City of Banning. This change order brings the total “Not-to-Exceed” contract value to $650,860.

FISCAL IMPACT:

Staff recommends approving Amendment No.1 to the Professional Services Agreement with UltraSystems Environmental Inc. for an additional amount of $230,770.

The project costs remain eligible for reimbursement through previously awarded grant funding. As noted in the original Resolution 2026-18, the Transportation Uniform Mitigation Fee (TUMF) funds administered by the Western Riverside Council of Governments (WRCOG) and Measure A Regional Arterial (MARA) funds administered by the Riverside County Transportation Commission (RCTC) total $33,500,000 in eligible reimbursements for design, construction, environmental monitoring, utilities relocation, and environmental permitting. Staff confirms that these additional permit compliance services qualify as eligible environmental permitting costs.

An appropriation from Measure A Fund in the amount of $230,770 to Account No. 101-4900-431.93-16 is necessary to fund Amendment No.1 to the Professional Services Agreement with UltraSystems Environmental, Inc. for Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project. City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

ALTERNATIVES:

Do not approve Resolution 2026-38 and provide alternative direction to staff.

BUDGETED?:

Yes
CONTRACT/AGREEMENT:

Yes
ATTACHMENTS:

1. Resolution_2026-38.docx

2. Resolution No. 2026-18.pdf

3. Incidental Take Permit Approval.pdf

4. Streambed Alteration Agreement.pdf

5. Waste Discharge Dredge or Fill Order.pdf
200

6. UltraSystems Change Order.pdf
201
Resolution 2026-38

RESOLUTION 2026-38

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING AMENDMENT NO.1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH ULTRASYSTEMS ENVIRONMENTAL, INC. FOR AN ADDITIONAL AMOUNT OF $230,770

FOR CONSTRUCTION ENVIRONMENTAL MONITORING SERVICES RELATED TO THE SUN LAKES BOULEVARD EXTENSION PROJECT.

WHEREAS, the Sun Lakes Boulevard Extension Project is a critical infrastructure project that will construct a new 1-mile roadway segment between Highland Home Road and Sunset Avenue to improve traffic circulation, reduce congestion, and support planned community development; and
WHEREAS, on January 27, 2026, the City Council adopted Resolution No. 2026-18 awarding a Professional Services Agreement to UltraSystems Environmental, Inc. for Construction Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project in the amount of $381,900; and
WHEREAS, since the award of the contract, staff and UltraSystems have identified additional, non-discretionary permitting and regulatory compliance requirements that were not within the original scope of the environmental monitoring services agreement; and WHEREAS, while the original scope focused on field monitoring during construction (i.e., biological resources, nesting birds, and paleontological resources), the concurrent administration and compliance documentation for three specific state and federal permits require dedicated technical expertise; and
WHEREAS, the Project requires compliance with state and federal regulatory permits, including but not limited to an Incidental Take Permit (ITP) issued by the California Department of Fish and Wildlife (CDFW), Streambed Alteration Agreement issued by CDFW, and Waste Discharge Requirements / Dredge or Fill Discharge Permit issued by the Regional Water Quality Control Board (RWQCB); and
WHEREAS, the permits carry strict reporting requirements, and failure to comply could result in substantial fines, project shutdowns, or legal liability and the City is legally bound to fulfill these requirements under the California Environmental Quality Act (CEQA) Mitigation Monitoring and Reporting Program (MMRP) and the terms of the permits themselves; and WHEREAS, these tasks are highly technical, time-sensitive, and were originally assumed to be covered under the City’s general construction management or prime design contracts; however, those existing agreements do not include the specialized regulatory expertise required; and
WHEREAS, UltraSystems, as the City’s appointed environmental monitor, is uniquely positioned to perform this work efficiently without requiring a new procurement process, avoiding mobilization delays and ensuring continuity of documentation; and WHEREAS, staff has reviewed the proposed scope of work and fee and finds it to be fair, reasonable, and in the best interest of the City of Banning and this change order brings the total “Not-to-Exceed” contract value to $650,860; and
202
Resolution 2026-38

WHEREAS, the additional services are eligible for reimbursement through the Transportation Uniform Mitigation Fee (TUMF) funds administered by the Western Riverside Council of Governments (WRCOG) and Measure A Regional Arterial (MARA) funds administered by the Riverside County Transportation Commission (RCTC) in the amount of $33,500,000; and WHEREAS, an appropriation from Measure A Fund in the amount of $230,770 to Account No. 101-4900-431.93-16 is necessary to fund Environmental Monitoring Services for the Sun Lakes Boulevard Extension Project and City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

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

SECTION 1. The City Council approves Amendment No.1 to the Professional Services Agreement with UltraSystems Environmental, Inc. for an additional amount of $230,770 for construction environmental monitoring services related to the construction of the Sun Lakes Boulevard Extension Project.

SECTION 2. The City Council authorizes the City Manager, or their designee, to execute Amendment No.1 to the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 3. The City Council authorizes the City Manager to make necessary non-substantive changes and execute Amendment No.1 to the Professional Services Agreement with UltraSystems Environmental, Inc.

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 24th day of February 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
203
Resolution 2026-38

APPROVED AS TO FORM:

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney, LLP
204
Resolution 2026-38

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-38, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of February 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
205
Resolution 2026-38

EXHIBIT A
Amendment No.1 Professional Services Agreement with UltraSystems Environmental, Inc. 206
RESOLUTION 2026- 18

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

WHEREAS, the Sun Lakes Boulevard Extension is a critical infrastructure project that will construct a new 1 - mile roadway segment, providing a vital east -west connection between Highland Home Road and Sunset Avenue. The project is designed to improve traffic circulation, reduce congestion on parallel routes, and support planned community development; and WHEREAS, on April 14, 2020, City Council approved Resolution No. 2020- 48for Professional Services Agreement with WEBB for the design and environmental impact studies of the Sun Lakes Boulevard Extension Project in the amount of $548, 416. 05. The Agreement was subsequently amended five (5) times resulting in a total design cost of $1, 364, 706. 6; and WHEREAS, the construction of this project, while essential, will create environmental impacts that have been carefully analyzed and mitigated through the California Environmental Quality Act ( CEQA) process performed by WEBB; and
WHEREAS, the project necessitates the services of a qualified environmental monitoring team to ensure that all work aligns with the mandated Mitigation Monitoring and Reporting Program ( MMRP), meets state and federal regulatory standards, and fulfills all obligations for environmentally sensitive resources of this project; and WHEREAS, on July 14, 2020, City Council adopted Resolution No. 2020- 97, authorizing the City Manager to execute a Transportation Uniform Mitigation Fee (TUMF) Reimbursement Agreement with Western Riverside Council of Government ( WRCOG) for up to $ 1, 000,00 in TUMF funds for the Sun Lakes Boulevard Extension project with subsequent two amendments increasing the grant agreement to a total of $ 20, 000,00; and WHEREAS, on October 24, 2023, City Council adopted Resolution 2023- 174, authorizing the Mayor to execute an Agreement for Measure A Regional Arterial ( MARA) funding with the Riverside County Transportation Commission ( RCTC) in the amount of $ 13, 500, 000 for the Construction of the Sun Lakes Boulevard Extension Project; and WHEREAS, on November 5, 2025, staff released a Request for Proposals (RFP) for Sun Lakes Boulevard Extension Project Construction Environmental Monitoring Services on the City' s public bidding platform; and
WHEREAS, on December 15, 2025, in response to the RFP, nine ( 9) proposals were received ranging in score from 90. 33 to 76; and
WHEREAS, the scope of work will include project management, general monitoring program, Crotch' s Bumble Bee monitoring, vegetation clearance and pre -construction nesting bird, monitoring and inadvertent discovery and fossil discovery; and Resolution 2026- 18

WHEREAS, the retention of a qualified environmental monitoring consultant is a fundamental and non -discretionary component of responsible project delivery for the Sun Lakes Boulevard Extension project and it will ensure that we meet our legal obligations, protect the environment, manage financial and schedule risks, and fulfill the commitments made to our community and regulatory partners during the environmental review process; and WHEREAS, staff recommends awarding a Professional Services Agreement to UltraSystems Environmental Inc. in the amount of $381, 900 and approving a 10% contingency in the amount of $381, 900 for a total " not -to -exceed" project budget of $ 420, 090; and WHEREAS, the project costs are eligible and expected to be fully reimbursed through TUMF Funds administered by WRCOG and MARA funds administered by RCTC. Both grants will provide funding totaling $ 33, 500, 000 which will include design, construction, environmental monitoring, utilities relocation and environmental permitting; and WHEREAS, the project shall be funded through Measure " A" Account No. 101- 4900- 431. 93- 16 and City staff will submit monthly reimbursement invoices to RCTC and WRCOG.

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

SECTION 1. The City Council approves the Professional Services Agreement with UltraSystems Environmental, Inc. in the amount of $ 381, 900and approving a 10% contingency for a total budget of "not -to -exceed" $420, 090 for the environmental monitoring services during the construction of Sun Lakes Boulevard Extension Project.

SECTION 2. The City Council authorizes the City Manager, or their designee, to execute the Professional Services Agreement with UltraSystems Environmental, Inc.

SECTION 3. The City Council authorizes the City Manager to make necessary non -substantive changes and execute the Professional Services Agreement with UltraSystems Environmental, Inc.

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 27th day of January 2026.

Rich*' rd Royc , Mayor
City f Banning
Resolution 2026- 18

ATTEST:

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

Johy( PjA ney, City Attorne
Slov' c!I<, Baron, Empey, Murphy & Pinkney, LLP
Resolution 2026-18

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-18, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 27th day of January 2026 by the following vote, to wit:

AYES: Barrington, Flynn, Miller, Royce, Wallace
NOES: None
ABSENT: None
ABSTAIN: None
Resolution 2026-18

Sandra Calderon, Deputy City Clerk
City of Banning, California
210

EXHIBIT A
Professional Services Agreement with UltraSystems Environmental, Inc.

Resolution 2026- 18

211
PREPARED BY:

PRICE PROPOSAL FOR THE
SUN LAKES BLVD. EXTENSION

ENVIRONMENTAL MONITORING SERVICES
ovei

BANNING

CITY OF BANNING, PUBLIC WORKS DEPARTMENT
99 E. RAMSEY STREET
BANNING, CA 92220
UltraSvstem
ULTRASYSTEMS ENVIRONMENTAL, INC.
16431 SCIENTIFIC WAY
IRVINE, CA 92 618
UEI No. 251106
212
213
Sun Lakes Blvd Extension - Environmental Monitoring Services

1. 0 PRICE PROPOSAL
The following table provides a
summary of our proposed fees. Table 1. 0-2 includes UltraSystems 2026 Rate Schedule.

Table 1. 0-

PROPOSED FEES
Project Management

1. Kick- offMeeting ( One) 560
L2 Progress Meetings ( 10) 5, 670

1. 3 Invoicing ( Monthly) 0
Subtotal 6, 230

2. 0 General Monitoring Protocol:- see below for Arch and Paelo

2. 1 Review of applicable biological and cultural resources reports 1, 770

2. Monitoring all ground disturbing activities 0

2. 3 Conduct Daily pre -construction meetings 8, 550

2. 4 Prepare Daily logs including pictures 8, 690
Subtotal 19, 010

3. 0
Crotch Bumble Bee Monitoring - up to 40 hrs.

3. 1 Monitor construction activities 8, 090

3. 2 Ensure compliance with MMRP 0

3. Verify implementation of buffer zones and seasonal work restrictions 0

3. 4 Halt work if CBB or active nest is observed 690
Subtotal 8, 090

4. 0 Vegetation Clearance and Pre- ConstructionNesting Bird

4. 1 Monitor vegetation clearing activities 19, 930

4. 2 Establish Protective buffer and halt work 3, 910
Subtotal 19, 930

5. 0 Monitoring and Inadvertent Discovery - Arch Monitoring 180 days

5. 1 Implement and enforce an Inadvertent Discovery Plan 154, 40

5. 2 Authority to stop work in the immediate discovery area 0

5. 3 Immediately notify the City, the designate Cultural Resources Lead 0

5. 4 Maintain daily logs and assist in preparing incident reports 3, 800 Subtotal 158, 240

6. 0 Fossil Discovery - Paleo Monitoring - 180 days

6. 1 Inspection of excavated soil and bedrock 154, 40

6. 2 Halt excavation in immediate vicinity to evaluate find 0

6. 3 Responsible for in -field salvage, stabilization and proper curation 0

6. 4
Prepare daily monitoring reports and Final Paleontological Mitigation Report
15, 960
Subtotal 170, 40
TOTAL COST 381, 900
ms

UltraSystems No. 251106
214
Aiel
ANNIN
t+:

Sun Lakes Blvd Extension - Environmental Monitoring Services* Table 1. 0 -2 ULTRASYSTEMS STANDARD RATE SCHEDULE - Yr. 2026 PROFESSIONAL STAFF Hourly HOURLY
Principal 210
Director 210
Senior Project Manager 205
Project Manager 200
Senior Principal Engineer 200
Senior Scientist/ Engineer 194
Scientist/ Engineer 189
Staff Scientist/ Engineer 184
Senior Planner 179
Associate Planner 173
Planner/ Envionmental Analyst 168
Senior Biologist II 179
Senior Biologist I 173
Staff Biologist II 168
Staff Biologist I 163
Associate Biologist 158
Cultural Specialist 173
Archaeologist 168
Cultural Monitor 137
Senior GIS Analyst 173
GIS Technician 168
Word Processor 137
Intern 105
FIELD EQUIPMENT Daily Weekly
Excavation Screen 5 21
Field Supplies ( shovels, health and safety, flagging, binoculars, etc.) 15 63 Garmin GPS ( non - Trimble) 5 21
iPad Data Tablet 25 105
Kestrel Anemometer ( or equivalent) 5 21
Photoionization detector ( PID) or equivalent 100 420
Quest SoundPro SP -DL -1-/ 3 Sound Level Meter ( or equivalent) 110 462 RKI GX- 2003 Multi - Gas Meter ( or equivalent) 65 273
Trimble Geo7x GPS Unit with Rangefinder ( or equivalent) 120 588 XRF Analyzer 95 399
Note: Consultant support ( printing, reproduction and other direct expenses) will be billed at a rate of cost plus ten 10) percent. Automobile mileage will be charged at IRS standard rates. Travel time will be billed as indicated in the hourly rate schedule above. Invoices will be submitted monthly for work in progress and at completion of contract obligations and are payable upon receipt.

UltraS} sterns
U1traSystems No. 251106
215
@Sun Lakes Blvd Extension - Environmental Monitoring Services.

Table 1 U- 3,

LABOR COSTS BY TASK
U ltro Sa TASK COST BREAKDOWN • SUN LAKES BOULEVARD EXTENSION - ENVIRONMENTAL MONITORING Wh" Ca" p'"""
Project
Director
Scvlor
Biologist II
Scale
Biologist
SOB
BIWaWtti
Biological
Monitor
NSaetloQl"
Arcluwkg0. ta
PaleomoglM
1Ionl 0014
Senior f15
ant
Word
Pte.,
Total Ve611c Travel
Street
n1Pe6ac
R{ 3"AS
Lnwmkdl
Boo* 041e lay WbOr Category a» 5210 5129 173 6163, 00 MS 5168 595 5173 5037 lours Coal Mlles 10. 70 Hours
Co. ,:. Project M0M5eororlt

1. 10.00111114. 40402 ( WO 1 1 1 0 0 0 0 0 G 3004 0 SG 10 5: 60 to Prr, Brna Nwdng, ( tor) 10 14 1a a a 0 0 n 0 7e 8'+, 670 0 a 0 00170

1.3 Inedcing illumalyl 0 U 0 U a 0 0 0 0 0 60 0 50 m 50 111301707 II II II 0 0 e 0 e 0 31 16.02 0 SO 5. 90 6, 270 20: floe MrcA61004 Prat..

E. 1 10, 123349. 011446. 12140102501 and cWwNrcavmOn' Won 0 4 I 0 0 4 4 0 0 12 81. 169 0 50 10 53. 210

2. 1 4mn$ nrin84nnn8Mlgm+ nA 41006tn5a' rM4- k0 0 0 4 0 d a 4 54 0 541 to Sa 2: 3 lm0nrt 05000m+ mlm+ Mnl nenrogs U 0 0 0 U 0 90 0 0 90 10050 ll 90 50 1500 29 944, 6031141121624 40,, 11n30010, er 0 J 5 0 0 90 0 0 00 51550 0 41 5190 0390 10000701 0 4 0 0 0 4 104 0 192 810. 060 0 50 130 419, 010

3. 0 ketch 0oelble Dee Monitoring

3. 1 114402. 39440,0109034. 21141102 0 0 Q 0 40 0 40 0 0 30 57, 600 700 1490 50 50. 090

3. 1 090 900011, 60 wlt441090 0 4 0 0 0 0 0 0 6 0 ED 0 SO SO f0 11 VerINloolememakm 90190krmnn aiN se, mrxinl unak remirtJmO 0 0 0 0 0 P 0 0 a i0 SO LO Sa

3. 4 hall work ifC0U urutt14cne0l' w344,: I1' CV U U 4 0 0 0 0 0 0 4 169E 0 SO 50 6690 511000001 0 0 4 0 40 0 40 0 0 04 47,00 700 5190 S0 10, 090

40. Ve47md000mrmle and Pre - Construction be400$ ol o

4. 1 l414e0rw, orark. ncla, m:4oto91w 0 04 24 40 4 0 :: A 0 91 516506 0600 51. 410 14 519. x!0

4. 2 01001001, 034iee0Wk440441W0o 0o 0 0 0 24 0 0 0 0 0 74 59. 412 0 SU 39 12. 910 5110199701 0 24 24 44 0 0 0 6 0 IIO 116006 16181 53, 920 SO 119, 910

3. 0 :.Mpld1u1141an0o4d4alel0 Discovery

5. 1 I004mn112 and enforce an I0. 1040044010nn' ary Man 0 0 0 0 0 0 1440 0 0 1440 1114/01 20200 511. 640 50 0134. 440 i.2
9019090090041wvrk 10000 01404. 11400400. 0441. e 0 0 n 0 0 0 0 0 0 0 SO 0 10 40 f0 r.3 Inmm1140420370, rf007. tw 04. 004900406044 00m10410403 a 0 0 0 0 0 0 0 0 SO 0 50 50 SO 4 01. 4011014. 0. 016160 6.105410 in Vrc( aN9114o14cN6 Wd0 0 0 Q 0 U 0 40 0 0 40 111100 9 SO SV 900060 SU010391 0 0 0 V U 0 1400 Il 0 1401 1140400 U SO S0 3150240

6. 0 r,atiM4w04 , 1 • Pale9$ k00onr41. 1101Gyn

6. 1 In0urtimi Me6r3. 04e, l2Ml . 40361 r6, 10 a 0 0 0 0 0 1410 0 0 1440 1116/00 20100 512.40 0 01.4. 40

6. 3 Ilan., 5000000n 191mm000400inirr to . 000, lar0 GM 0 0 0 0 0 0 0 0 10 0 00 SO Sa

6. 3 1190. 4. 09019 be, ortindv41r. 01nb0Laloaa900, 90e0000001 t 0 0 0 0 0 0 0 0 10 0 60 SO 10 G4 11409• 04 .1 ritymvaoltngrt7nrrl nod lo, 0l'nlenmNngkolMMyo60n 61010
J 0 U U 40 10 0 4 131 611218 1, 0 51' 18 51:.; 160
SU000701 0 0 0 0 0 40 1530 0 4 1574 1152410 25200 117440 5170 5170, 400 lISIAI. 001111FROWN 11 49 39 64 411 44 1' 54 6 4
1111. 310011. 43, 100 56, 901 16, 747 510, 4. 32 37, 810 37,91 1100210 11, 0111 5548 3401 1341474 31501 122, 050 4125 1421, 900 Page4
UltraSystems So. 251106
216
State of California -The Natural Resources Agency GAVIN NEWSOM, Governor DEPARTMENT OF FISH AND WILDLIFE VALERIE TERMINI, Acting Director Inland Deserts Region
3602 Inland Empire Blvd., Suite C-220
Ontario, CA 91764
http://www.wildlife.ca.gov
Rev. 1/7/2026 Conserving California’s Wildlife Since 1870 Page 1 of 1 January 27, 2026
Nate Smith, P.E., Deputy Director of Public Works/City Engineer City of Banning Public Works Department
99 E. Ramsey Street
Banning, CA 92220
Re: Incidental Take Permit Application for Sun Lakes Boulevard Extension Project (2081-2025-079-06)
Dear Nate Smith:

On December 23, 2025, the Department of Fish and Wildlife (CDFW) received your Incidental Take Permit Application and on December 24, 2025, the appropriate application fee. CDFW received your request for authorization, pursuant to Fish and Game Code section 2081(b), to incidentally take1 Crotch’s bumble bee (Bombus crotchii), a species designated as a candidate pursuant to the California Endangered Species Act (CESA) (Fish & G. Code, § 2050 et seq.). The above-referenced application was deemed complete on January 23, 2026.

CDFW has 90 days from the date the application is accepted as complete to finalize the Permit, in accordance with the California Code of Regulations, Title 14, Section 783.5.

CDFW cannot finalize the Permit until CDFW has received your certified California Environmental Quality Act (CEQA) document along with the Findings, Notice of Determination, and a copy of proof of payment for the environmental filing fee. If you have any questions, please contact Enola Fulgencio, Environmental Scientist, at [email protected].

Sincerely,
Heidi Calvert, Regional Manager
Inland Deserts Region
cc: CESA Permitting Program
Habitat Conservation Planning Branch
Department of Fish and Wildlife
[email protected]
1 Pursuant to Fish and Game Code section 86, “‘Take’ means hunt, pursue, catch, capture, or kill, or attempt to hunt, pursue, catch, capture, or kill.” See also Environmental Protection Information Center v. California Department of Forestry and Fire Protection (2008) 44 Cal.4th 459, 507 (for purposes of incidental take permitting under Fish and Game Code section 2081, subdivision (b), “’take’ … means to catch, capture or kill”).

Docusign Envelope ID: 2D4415F9-1CD9-4B9C-A284-2D1E54B15240 1120 217

CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE

INLAND DESERTS REGION
3602 INLAND EMPIRE BLVD, SUITE C-220
ONTARIO, CA 91764

STREAMBED ALTERATION AGREEMENT
EPIMS-RIV-54902-R6
Highland Wash, Smith Creek, and Pershing Creek

CITY OF BANNING

SUN LAKES BOULEVARD EXTENSION PROJECT
This Streambed Alteration Agreement (Agreement) is entered into between the California Department of Fish and Wildlife (CDFW) and City of Banning (Permittee) or as represented by Nathan Smith.

RECITALS
WHEREAS, pursuant to Fish and Game Code section 1602, Permittee notified CDFW on December 3, 2024, that Permittee intends to complete the project described herein.

WHEREAS, pursuant to Fish and Game Code section 1603, CDFW has determined that the project could substantially adversely affect existing fish or wildlife resources and has included measures in the Agreement necessary to protect those resources.

WHEREAS, Permittee has reviewed the Agreement and accepts its terms and conditions, including the measures to protect fish and wildlife resources.

NOW THEREFORE, Permittee agrees to complete the project in accordance with the Agreement.

PROJECT LOCATION
The Sun Lakes Boulevard Extension Project (Project) crosses Highland Wash, Smith Creek, and Pershing Creek, in the City of Banning, County of Riverside, State of California; Latitude 33.91844, Longitude -116.92514. The Project is located within Assessor’s Parcel Number 537-110-013.

PROJECT DESCRIPTION
The Project is limited to the construction of an arterial highway parallel to existing Westward Avenue, an east-west unpaved dirt road between Highland Home Road and Sunset Avenue. The proposed highway will include two eastbound and two westbound lanes, each containing a 12-foot-wide lane, a 14-foot-wide lane, a raised 18-foot-wide median, and an 8-foot-wide sidewalk on either side. The Project will also adjust and 218
EPIMS-RIV-54902-R6
Streambed Alteration Agreement

relocate various utilities to grade such as: sewer manholes, storm drain manholes, telecommunication manholes, power poles, air vacuums, fire hydrants, electrical risers, electrical vaults, and 13 city power poles (which would require 13 feet of excavation).

Additionally, the Project will partially realign 1,500 linear feet of a 16-inch diameter steel natural gas pipeline owned by Williams Companies, a 20-inch diameter steel petroleum pipeline, and 12-inch diameter steel telecommunications pipeline, both owned by Kinder Morgan, Inc.

The Project area crosses over three creeks, from west to east: Highland Wash, Smith Creek, and Pershing Creek, where three culverts (i.e., Proposed Lines J, I, and K) will be constructed under the proposed Sun Lakes Boulevard roadway extension to convey existing flow. The culverts will be multi-cell reinforced concrete box (RCB) channels with concrete straight wing walls and riprap aprons at the upstream end of each channel and vertical wing walls and concrete aprons at the downstream end. Concrete ramps will be constructed at the south end of the channels to provide maintenance access. Concrete swales and trapezoidal channels will be provided to intercept stormwater run-on from north of the Project and discharge it to the proposed channels. Existing Westward Avenue pipe culverts are to be abandoned in place when the Project is completed.

Four storm drain laterals occur in the Project: Laterals K-1 and K-2 drain to Pershing Creek and Laterals I-1 and I-2 drain to Smith Creek. Laterals K-2, I-1, and I-2 all collect street runoff via catch basins in the street, however K-2 collects run-on from north of the Project and conveys it to Line K. Catch basins will be fitted with City-approved filters to capture debris and treat post-construction runoff generated by the roadway. The Permittee has committed to participating in a regional solution for the sediment transport function of the Smith Creek watershed. The intended outcome of this regional solution is to bring the various stakeholders in this watershed together to work on a sediment management strategy to ensure sediment is transported efficiently and effectively to support ecological resources. The Permittee’s commitment to this regional solution will serve as providing rehabilitation mitigation for the overall impacts from this Project1.

PROJECT IMPACTS
Existing fish or wildlife resources the Project could substantially adversely affect include:

BIRDS: burrowing owl (Athene cunicularia), rock pigeon (Columbia livia), mourning dove (Zenaida macroura), greater roadrunner (Geococcyx californianus), Anna’s hummingbird (Calypte anna), ring-billed gull (Larus delawarensis), northern harrier (Circus hudsonius), red-tailed hawk (Buteo jamaicensis), barn owl (Tyto alba), American kestrel (Falco sparverius), black phoebe (Sayornis nigricans), Say’s phoebe (Sayornis saya), Cassin’s kingbird (Tyrannus vociferans), western kingbird (Tyrannus verticalis), loggerhead shrike (Lanius ludovicianus), American crow (Corvus brachyrhynchos), common raven (Corvus corax), California horned lark (Eremophila alpestis actia), cliff swallow (Petrochelidon pyrrhonota), American bushtit (Psaltriparus minimus), rock wren (Salpinctes obsoletus), Bewick’s wren (Thryomanes bewickii), northern mockingbird 1 Western Riverside County Multiple Species Habitat Conservation Plan Determination of Biologically Equivalent or Superior Preservation Report Sun Lakes Boulevard Extension Project 219
EPIMS-RIV-54902-R6
Streambed Alteration Agreement

(Mimus polyglottos), European starling (Sturnus vulgaris), house sparrow (Passer domesticus), house finch (Haemorhous mexicanus), lark sparrow (Chondestes grammacus), western meadowlark (Sturnella neglecta), hooded oriole (Icterus cucullatus), Brewer’s blackbird (Euphagus cyanocephalus), blue grosbeak (Passerina caerulea);
PLANTS: Marvin’s onion (Allium marvinii), many-stemmed dudleya (Dudleya multicaulis), annual ragweed (Ambrosia acanthicarpa), western ragweed (Ambrosia psilostachya), California sagebrush (Artemesia californica), mugwort (Artemesia douglasiana), tarragon (Artemisia dracunculus), mule fat (Baccharis salicifolia), yellow pincushion (Chaenactis glabriuscula), common sand aster (Corethrogyne filaginifolia), pinebush (Ericameria pinifolia), horseweed (Erigeron canadensis), leafy fleabane (Erigeron foliosus), golden yarrow (Eriophyllum confertiflorum), common sunflower (Helianthus annuus), telegraph weed (Heterotheca grandiflora), scale-broom (Lepidospartum squamatum), cliff aster (Malacothrix saxatilis), ladies’ tobacco (Pseudognaphalium californicum), shrubby ragwort (Senecio flaccidus), small wirelettuce (Stephanomeria exigua), cotton thorn (Tetradymia comosa), rough cockleburr (Xanthium strumarium), fiddleneck (Amsinckia sp.), cryptantha (Cryptantha sp.), heliotrope (Heliotropium curassavicum), pectocarya (Pectocarya sp.), caterpillar phacelia (Phacelia cicutaria), blue elderberry (Sambucus nigra ssp. caerulea), sand pygmyweed (Crassula connata), calabazilla (cucurbita foetidissima), rattlesnake sandmat (Euphorbia albomarginata), deerweed (Acmispon glaber), Heermann’s lotus (Acmispon heermannii), miniature lupine (Lupinus bicolor), southern California black walnut (Juglans californica), white sage (Salvia apiana), chia (Salvia columbariae), black sage (Salvia mellifera), vinegarweed (Trichostema lanceolatum), wishbone (Mirabilis laevis), California sun cup (Camissoniopsis bistorta), sandysoil suncup (Camissonia strigulosa), winecup clarkia (Clarkia purpurea), California poppy (Eschscholzia californica), showy penstemon (Penstemon spectabilis), dotseed plantain (Plantago erecta), chaparral gilia (Gilia angelensis), hooked navarretia (Navarretia hamata), California buckwheat (Erigonum fasciculatum), slender woolly buckwheat (Eriogonum gracile), curly dock (Rumex crispus), redmaids (Calandrinia menziesii), Miner’s lettuce (Claytonia sp.), Fremont cottonwood (Populus fremontii), Goodding’s black willow (Salix gooddingii), arroyo willow (Salix lasiolepis), red willow (Salix laevigata), tall flatsedge (Cyperus eragrostis), cheatgrass (Bromus tectorum), rabbitsfoot grass (Polypogon mospeliensis), purple needle grass (Stipa pulchra); MAMMALS: Los Angeles pocket mouse (Perognathus longimembris brevinasus), Northwestern San Diego pocket mouse (Chaetodipus fallax), Dulzura kangaroo rat (Dipodomys simulans), Bryant’s/San Diego Desert woodrat (Neotoma bryanti (lepida) intermedia), baja mouse (Peromyscus fraterculus), deer mouse (Peromyscus maniculatus), western harvest mouse (Reithrodontomys megalotis), black-tailed jackrabbit (Lepus californicus), Audobon’s (Desert) cottontail (Sylvilagus audubonii), California ground squirrel (Otospermophilus beecheyi), Botta’s pocket gopher (Thomomys bottae), coyote (Canis latrans);
REPTILES: Great Basin fence lizard (Sceloporus occidentalis longipes), side-blotched lizard (Uta stansburiana), coastal western whiptail (Aspidoscelis tigris stejnegeri); The adverse effects the Project could have on the fish or wildlife resources identified above include: loss of natural bed or bank; disturbance from Project activity; permanent loss of riparian habitat; change in channel cross section; restriction in sediment 220
EPIMS-RIV-54902-R6
Streambed Alteration Agreement

transport; debris transport impedance; change in floodplain composition; loss of sediment and debris transport that supplies sediment and sand sources for wildlife habitat including downstream dune habitat; temporary and permanent loss of foraging habitat for burrowing owl and Los Angeles pocket mouse; permanent loss of potential burrow sites for burrowing owl and Los Angeles pocket mouse; the disturbance to, alteration of, and/or loss of nesting, roosting, and foraging habitat; the reduction or loss of habitat coverage, composition, and distribution; impacts to water quality; and increased impacts associated with edge-effects to local flora and fauna populations.

The Project will temporarily impact 0.09 acres and permanently impact 0.37 acres associated with Highland Wash, Smith Creek, and Pershing Creek (Exhibit 2). The Project will impact a total of 0.46 acres of stream bed, bank, and channel, which are the limits of the Project impacts authorized under this agreement (Table 1).

Table 1.

Stream Name Temporary Impacts
(acres)
Permanent Impacts
(acres)
Highland Wash 0.01 0.1
Smith Creek 0.04 0.08
Pershing Creek 0.03 0.2
Total 0.09 0.37

MEASURES TO PROTECT FISH AND WILDLIFE RESOURCES

1. Administrative Measures
Permittee shall meet each administrative requirement described below.

1.1 Documentation at Project Site. Permittee shall make the Agreement, any extensions and amendments to the Agreement, and all related notification materials and California Environmental Quality Act (CEQA) documents, readily available at the project site at all times and shall be presented to CDFW personnel, or personnel from another state, federal, or local agency upon request.

1.2 Providing Agreement to Persons at Project Site. Permittee shall provide copies of the Agreement and any extensions and amendments to the Agreement to all persons who will be working on the project at the project site on behalf of Permittee, including but not limited to contractors, subcontractors, inspectors, and monitors.
221
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Streambed Alteration Agreement

1.3 Notification of Conflicting Provisions. Permittee shall notify CDFW if Permittee determines or learns that a provision in the Agreement might conflict with a provision imposed on the project by another local, state, or federal agency. In that event, CDFW shall contact Permittee to resolve any conflict.

1.4 Project Site Entry. Permittee agrees that CDFW personnel may enter the project site at any time to verify compliance with the Agreement.

1.5 Take of Nesting Birds. Fish and Game Code section 3503 makes it unlawful to take, possess, or needlessly destroy the nest or eggs of any bird, except as otherwise provided by Fish and Game Code or any regulation made pursuant thereto. Fish and Game Code section 3503.5 makes it unlawful to take, possess, or destroy any birds in the orders Falconiformes or Strigiformes (birds-of-prey) to take, possess, or destroy the nest or eggs of any such bird except as otherwise provided by Fish and Game Code or any regulation adopted pursuant thereto.

Fish and Game Code Section 3513 makes it unlawful to take or possess any migratory nongame bird except as provided by the rules and regulations adopted by the Secretary of the Interior under provisions of the Migratory Bird Treaty Act 1918, as amended (16 U.S.C. § 703 et seq.). The issuance of this Agreement does not in any way exempt or excuse compliance with these statutes.

1.6 Additional Project Impacts. Permittee shall submit to CDFW a request to amend this Agreement if any additional impacts to Fish and Game Code section 1602 resources, or additional operations and maintenance activities not identified in this Agreement are anticipated. No additional impacts to Fish and Game Code section 1602 resources are authorized unless the impacts and/or activities are expressly authorized by CDFW by amendment to this Agreement.

1.7 Notify CDFW Prior to Work. Permittee shall notify CDFW by email at least five (5) working days prior to initiation of Project activities. See contact information below.

1.8 Reporting of Violations. Permittee shall report any violations of the Agreement, whether committed by Permittee or any person acting on behalf of Permittee, to the CDFW contact identified below within 48 hours of the violation occurring.

1.9 Dead or Injured Species. Permittee shall report any dead or injured CESA- or ESA- listed threatened, endangered, or fully protected species, or species of special concern found along roads or in Project areas to CDFW within 24 hours via email according to contact information below. The Permittee shall report the location, cause of death or injury, species found, and any other relevant information.

1.10 Compliance with other Agencies. The Agreement does not relieve the Permittee of responsibilities for compliance with applicable federal, state, or local laws, ordinances or grant conditions.
222
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1.11 Work According to Plans. Final stamped engineered design plans shall be submitted to CDFW a minimum of 30 days prior to start of Project activities, for review by CDFW prior to Project start. The final plans shall be based on the Project design plans submitted to CDFW in the notification package. If the submitted Project plans differ substantially from the Project description, Permittee shall provide CDFW a detailed, written description of the changes made. CDFW may require an amendment to this Agreement or submission of a new notification prior to starting the Project if the Project designs have changed from those submitted in the Notification Package.

2. Avoidance and Minimization Measures
To avoid or minimize adverse impacts to fish and wildlife resources identified above, Permittee shall implement each measure listed below.

General Wildlife Protection and Prevention Measures

2.1 Designated Biologist(s) and Biological Monitor(s). Permittee shall submit to CDFW for review and approval the names, qualifications, business addresses, and contact information of any qualified biologists (Designated Biologist(s)) and Biological Monitor(s) that will be utilized to conduct species/habitat surveys, biological monitoring, or mitigation planning and implementation activities at least 30 days before initiating ground- or vegetation- disturbing activities.

Permittee shall specify the proposed responsibilities of each Designated Biologist(s) and/or Biological Monitor(s) and provide clear evidence of knowledge, experience, and capability of performing those proposed duties.

Optional CDFW biologist resume form available here:
https://nrm.dfg.ca.gov/FileHandler.ashx?DocumentID=202869.

2.1.1 A qualified Designated Biologist(s) is an individual who holds a bachelor’s degree from an accredited university and 1) is knowledgeable in relevant species’ life histories and ecology, 2) can correctly identify relevant species, 3) has conducted field surveys for relevant species, 4) is familiar with relevant survey protocols, and 5) is knowledgeable of state and federal laws regarding the protection of sensitive species.

2.1.2 A Biological Monitor(s) is an individual who shall have academic and professional experience in biological sciences and related resource management activities as it pertains to this Project, experience with construction-level biological monitoring, be able to recognize species that may be present within the Project area and be familiar with the habitats and behaviors of those species.

2.2 Responsibility of the Designated Biologist(s). The Designated Biologist(s) shall be responsible for monitoring activities addressed by this Agreement, including, but not limited to all activities that result in clearing, grading, drilling, and/or other ground-disturbing activities. To ensure compliance with the measures of this 223
EPIMS-RIV-54902-R6
Streambed Alteration Agreement

Agreement, the Designated Biologist(s) shall confirm and monitor the limits of Project activities addressed by this Agreement.

2.3 Authority of Designated Biologist(s). To ensure compliance with the measures of this Agreement, the Designated Biologist(s) shall have the authority to immediately halt any activity that does not comply with this Agreement, order any reasonable measure to avoid the violation of any measure of this Agreement, and directly contact CDFW for any reason. If the Designated Biologist(s) determines that the Project may have an adverse effect on any special-status species (threatened, endangered, candidate, species of special concern, etc.), they shall halt construction and notify the appropriate agencies immediately.

Unless authorized by CDFW, the Designated Biologist(s) shall not have the authority to handle any special-status species (threatened, endangered, candidate, species of special concern, etc.).

2.4 Authority of Biological Monitor(s). The Permittee or Designated Biologist shall designate a person to monitor on-site compliance with all conditions of this Agreement. The Biological Monitor shall halt Project Activities to comply with the terms of this Agreement and otherwise avoid impacts to species or habitats.

2.5 Delineate Work Area Boundary. In consultation with the Designated Biologist(s), Permittee shall clearly delineate the outer perimeter of the work areas and access routes with appropriate fencing, signage, and/or flagging to prevent damage to adjacent habitats prior to start of Project activities. The delineation materials shall be in place during all periods of operation and all persons employed or otherwise working on the Project site shall be instructed about the restrictions. Permittee shall ensure the delineation materials are monitored daily, and maintained, repaired, or replaced immediately if the materials are damaged, lost, stolen, or become ineffective in any way. The Designated Biologist(s) shall ensure the delineation materials do not create a barrier to wildlife movement and will not pose a risk to wildlife safety.

2.6 Environmentally Sensitive Areas. The Designated Biologist shall determine and clearly delineate any necessary avoidance and/or buffer areas with appropriate fencing, signage, and/or flagging. The delineation materials shall be visibly discernable from the ‘standard work area boundary’ materials and all persons employed or otherwise working on the Project site shall be instructed about the restrictions associated with these environmentally sensitive areas. Permittee shall ensure the delineation materials are monitored daily, and maintained, repaired, or replaced immediately if the materials are damaged, lost, stolen, or become ineffective in any way. The Designated Biologist(s) shall ensure the delineation materials do not create a barrier to wildlife movement and will not pose a risk to wildlife safety.

2.7 Wildlife Species. To avoid impact to any non-listed wildlife species, a Designated Biologist shall inspect the project area prior to any project activities. Any individuals found shall not be harassed and shall be allowed to leave the project 224
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area unharmed. If needed, a Designated Biologist may guide, handle, or capture an individual non-listed wildlife species to move it to a nearby safe location within nearby refugium, or it shall be allowed to leave the project site of its own volition.

Capture methods may include hand, dip net, lizard lasso, snake tongs and snake hook. If the wildlife species is discovered or is caught in any pits, ditches, or other types of excavations, the Designated Biologist shall release it into the most suitable habitat near the site of capture.

2.8 Educational Program. Permittee shall conduct an education program (Education Program) for all persons employed or otherwise working on the Project prior to performing any work on site. The Education Program shall consist of a presentation from a Designated Biologist(s) that includes a discussion of the biology of the habitats and species identified in this Agreement and present at the Project site. The Designated Biologist(s) shall also include as part of the Education Program information about the distribution and habitat needs of any protected species that may be present, legal protections for those species, penalties for violations and Project-specific protective measures included in this Agreement. Interpretation shall be provided for non-English speaking workers, and the same instruction shall be provided for any new workers prior to their performing work on site. The Permittee shall prepare and distribute wallet-sized cards or a fact sheet that contains this information for workers to carry on site.

Upon completion of the Education Program, employees shall sign a form stating they attended the Education Program and understand all protection measures.

These forms shall be filed at the worksite offices and be available to CDFW upon request. The Education Program shall be repeated annually for part of the Project extending more than one (1) year. Copies of the Education Program’s materials shall be maintained at the Project site for workers to reference as needed.

2.8.1 Invasive Species Education Program. Permittee shall include an invasive species education program for all persons working on the Project prior to the performing any work on site. The invasive species education program shall consist of a presentation from a Designated Biologist(s) that includes a discussion of the invasive species currently present within the Project site as well as those that may pose a threat to or have the potential to invade the Project site. The discussion shall include a physical description of each species and information regarding their habitat preferences, local and statewide distribution, modes of dispersal, and impacts. The invasive species education program shall also include a discussion of Best Management Practices (BMPs) to be implemented at the Project site to avoid the introduction and spread of invasive species into and out of the Project site.

2.9 Daily Clearance Survey. Before the start and end of daily Project activities. The Designated Biologist or Biological Monitor shall survey the Project area to ensure wildlife incidentally trapped due to project activities are allowed to escape. 225
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2.9.1 Excavated Areas. At the end of each workday, Permittee shall, with the oversight of the Designated Biologist(s) or a trained construction management staff, secure any open trench or excavated area within the Project area addressed by this Agreement such that animals are unable to enter and become entrapped. The excavated areas must be secured using appropriate site- and species-specific methods, such as, placing plywood or other barrier materials over the excavated area, placing an escape ramp of suitable material and at an angle no greater than 30 degrees at each end of the open trench/excavated area, or installing temporary fencing around the perimeter of trenches or holes.

2.9.2 Check for Wildlife in Pipes/Construction Materials. Permittee shall visually inspect all sections of pipe/construction materials for the presence of wildlife sheltering within them prior to the pipe sections being placed in the trench and attached together or shall have the ends capped while stored on site to prevent wildlife from entering. After attaching the pipe sections to one another, whether in the trench or not, the exposed end(s) of the pipeline shall be capped at the end of each day during construction to prevent wildlife from entering and being trapped in the pipeline. All pipes, hoses, or similar structures less than 12 inches in diameter shall be closed or covered to prevent animal entry.

2.10 Lighting and Fencing. No lighting shall be allowed to impact Highland Wash, Smith Creek, and Pershing Creek, or other avoided natural space areas. Lighting and fencing for infrastructure adjacent to these areas shall be designed or reviewed by a qualified biologist to allow wildlife to move within the streams and avoided natural areas without hindrance.

Nesting Bird Protection

2.11 Nesting Birds. It is the Permittee’s responsibility to avoid impacts to nesting birds.

Permittee shall ensure that impacts to nesting birds are avoided by assigning a Designated Biologist to complete pre-construction surveys, determine/establish appropriate avoidance and minimization measures, and monitor the efficacies of these measures. The Designated Biologist must have experience with conducting bird surveys using appropriate survey methodology (e.g., Ralph et al. 19932) and United States Fish and Wildlife Service [USFWS] and/or CDFWaccepted species-specific survey protocols, available here:
https://wildlife.ca.gov/conservation/survey-protocols; nesting surveying techniques, recognizing breeding and nesting behaviors, locating nests and 2 Ralph, C.J., G.R. Geupel, P. Pyle, T.E. Martin, and D.F. DeSanta. 1993. Handbook of field methods for monitoring land birds. General Technical Report PSW-GTR 144. USDA Forest Service Pacific Southwest Research Station. Albany, CA. 226
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breeding territories, and identifying nesting stages and nest success (e.g., Martin and Geupel 19933)

2.11.1 Nesting Bird Pre-construction Surveys. Surveys shall be conducted by the Designated Biologist at the appropriate time of day/night, during appropriate weather conditions, within three (3) days prior to the initiation of Project activities addressed by this Agreement. Surveys shall encompass all suitable areas including trees, shrubs, bare ground, burrows, cavities, and structures. Survey duration shall take into consideration the size of area subject to this Agreement; density, and complexity of the habitat; number of survey participants; survey techniques employed; and shall be sufficient to ensure the data collected is complete and accurate. Pre-construction surveys shall focus on both direct and indirect evidence of nesting, including nest locations and nesting behavior (e.g., copulation, carrying of food or nest materials, nest building, removal of fecal sacks, flushing suddenly from atypically close range, agitation, aggressive interactions, feigning injury or distraction displays, or other behaviors). If a nest is suspected, but not confirmed, the Designated Biologist shall establish a disturbance-free buffer until additional surveys can be completed, or until the location can be inferred based on observations. The Designated Biologist shall not risk failure of the nest to determine the exact location or status and will make every effort to limit the nest to potential predation as a result of the survey/monitoring efforts (e.g., limit number of surveyors, limit time spent at/near the nest, scan the site for potential nest predators before approaching, immediately depart nest area if indicators of stress or agitation are displayed). If a nest is observed, but thought to be inactive, the Designated Biologist shall monitor the nest for one hour (four hours for raptors during the non-breeding season) prior to approaching the nest to determine status. The Designated Biologist shall use their best professional judgement regarding the monitoring period and whether approaching the nest is appropriate. Results of pre-construction surveys shall be provided to CDFW at least one business day prior to commencement of Project activities. Results of ongoing monitoring surveys shall be provided to CDFW upon request.

2.11.2 Buffers. When an active nest is confirmed, the Designated Biologist shall immediately establish a conservative buffer surrounding the nest based on their best professional judgement and experience. The buffer shall be delineated to ensure that its location is known by all persons working within the vicinity but shall not be marked in such a manner that it attracts predators. Once the buffer is established, the Designated Biologist shall document baseline behavior, stage of reproduction, and existing site 3 Martin, T.E. and G.R. Geupel. 1993. Nest-monitoring plots: methods for locating nests and monitoring success. Journal of Field Ornithology 64:507-514.
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conditions, including vertical and horizontal distances from proposed work areas, visual or acoustic barriers, and existing level of disturbance. The Designated Biologist shall monitor the nest at the onset of Project activities addressed by this Agreement, and at the onset of any changes in Project activities (e.g., increase in number or type of equipment, change in equipment usage, etc.) to determine the efficacy of the buffer. If the Designated Biologist determines that Project activities may be causing an adverse reaction, the Designated Biologist shall adjust the buffer accordingly.

2.11.3 Ongoing Monitoring. The Designated Biologist shall be onsite daily to monitor all existing nests, the efficacy of established buffers, and to document any new nesting occurrences. The Designated Biologist shall document the status of all existing nests, including the stage of reproduction and the expected fledge date. If a nest is suspected to have been abandoned or failed, the Designated Biologist shall monitor the nest for a minimum of one hour (four hours for raptors), uninterrupted, during favorable field conditions. If no activity is observed during that time, the Designated Biologist may approach the nest to assess the status.

2.11.4 Securing Site. The Permittee, under the direction of the Designated Biologist, may also take steps to discourage nesting on the Project site, including moving equipment and materials daily, covering material with tarps or fabric, and securing all open pipes and construction materials.

The Designated Biologist shall ensure that none of the deterrent materials pose an entanglement risk to birds or other species. The Designated Biologist shall include a detailed account of any steps taken to discourage nesting within the Project site in the summary reports.

2.11.5 Reporting. The Designated Biologist shall be responsible for providing summary reports, where relevant, to CDFW no less than once weekly regarding the nesting species identified onsite, discovery of any of new nests, the status/outcome of any previously identified nest, buffer distances established for each nest, and any adjustments made to established buffers. If Project activities result in the abandonment of, or damage to a nest, Permittee shall notify CDFW within 24 hours of detection.

Burrowing Owl Protection

2.12 Burrowing Owl. Permittee shall ensure that impacts to burrowing owls are avoided through the implementation of pre-construction surveys, ongoing monitoring, and if necessary, establishment of minimization and mitigation measures.

2.12.1 Focused Survey for Burrowing Owls. Because the burrowing owl habitat assessment identifies suitable burrowing owl habitat onsite, Permittee 228
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