Agenda packet, regular meeting — Banning City Council, March 24, 2026 (part 2 of 5)

155

CITY OF BANNING

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

ATTACHMENTS:

1. Good Police Stats ACO 2026 Feb.pdf
156
ANIMAL CONTROL Feb-26 Feb-25 % CHGE YTD-26 YTD-25 % CHGE Calls for Service 122 104 17% 254 192 32%
Animals Impounded 22 6 267% 40 6 567%
Animals Euthanized 3 3 0% 7 3 133%
Bite Reports 2 3 -33% 4 4 0%
Citations Issued 3 0 300% 4 0 400%
Expenses 844 0 84400% 1791.75 2233.25 -20%
Revenue 246.42 655 -62% 291.82 1257 -77%

BANNING POLICE DEPARTMENT
FEBRUARY, 2026
157

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Kristine Gutierrez, Community Development Operations Manager Vincent Avila, Chief of Police
MEETING DATE: March 24, 2026
SUBJECT: Receive and File Code Enforcement Statistics for the Month of February 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 decreases in particular areas of Code Enforcement over time.

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Feb. 2026 Code Stats.pdf
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Code Enforcement Feb-26 Feb-25 % CHGE YTD-26 YTD-25 % CHGE New Cases Opened 77 18 328% 188 35 437%
Total Cases Open (Active) 249 393 -37% 517 805 -36%
Notice of Violations Issued 209 76 175% 514 89 478%
Violations Resolved 229 81 183% 485 214 127%
Citations Issued 10 3 233% 54 24 125%
Inspections Completed 226 74 205% 491 155 217%
Collected Fee's (Citations) 1520 696.92 118% 2895 1459.75 98% Red Tagged Properties 2 1 100% 3 3 0%
AVA Program Vehicles Abated 3 0 300% 4 0 400%
Weed Abatement Cost Recovery 4593.62 1708.53 169% 16340.5 20221.23 -19% 72 Hour Parking (NOV) CVC 22651 K 13 0 1300% 34 0 3400% Unhoused Encampments Tagged (PC602) 12 0 1200% 31 0 3100% Calls For Service 205 0 20500% 410 0 41000%

BANNING POLICE DEPARTMENT
FEBRUARY, 2026
159

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director Art Vela, Director of Public Works
MEETING DATE: March 24, 2026
SUBJECT: Authorize the City Manager to sign the Notice of Completion for Project No. 2024-08 “Banning Water Canyon Stormwater Percolation Basin Repairs” as complete and direct the City Clerk to record the Notice of Completion.

RECOMMENDATION:

Authorize execution of the Notice of Completion.

BACKGROUND:

On February 11, 2025, the City Council adopted Resolution No. 2025-18 awarding a construction contract to Weaver Grading, Inc. for Project No. 2024-08, “Banning Water Canyon Stormwater Percolation Basin Repairs,” in the amount of $644,520, including a 20% contingency.

The City owns several acres in Banning Water Canyon north of Bluff Street that contain wells, transmission mains, and 36 percolation basins used to capture stormwater and recharge groundwater for later extraction—an important component of the City’s water supply strategy.

The project restored the basins following damage from Tropical Storm Hilary (2023) and debris from the Apple Fire, which caused slope erosion, sediment buildup, and damage to access roads and culverts.

During dredging operations, existing stormwater conveyance pipes were found to be severely damaged.

As a result, three change orders totaling $58,623.60 were issued to install approximately 860 linear feet of two parallel 12-inch corrugated metal pipes (CMPs) to restore stormwater flow between basins.

JUSTIFICATION:

Repairs to the percolation basins are essential for maximizing local groundwater recharge and reducing reliance on imported water. Through a funding agreement approved by City Council via Resolution No. 2024-69 on May 14, 2024, the Riverside County Flood Control and Water Conservation District (RCFC & WCD) agreed to fund 75% of the project costs (up to $750,000, whichever is less).

The lowest qualified bidder, Weaver Grading, Inc. was awarded the contract and work was completed on February 26, 2026. Public Works staff verified through inspections that the workmanship, materials, and procedures were satisfactory, and that the contract had met the required contract obligations.

FISCAL IMPACT:

The project was awarded in the amount of $537,100 with a 20% contingency, for a total budget of $644,520. The final contract amount was $595,723.60.
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As a result of the agreement with RCFC & WCD, the City received $402,825, representing 75% of the original contract award amount.

ATTACHMENTS:

1. NOC Banning Canyon Storwater Repairs.docx

2. Resolution No. 2025-018 (for refrence purposes).pdf

3. Executed C01122 - Water Canyon Pond Repairs (Weaver Grading Inc).pdf 161

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1 Recording Requested by:
2 Office of the City Clerk
3 City of Banning
4 P.O. Box 998
5 Banning, California 92220
6 7 Exempt from Recording Fees Pursuant to Government Code §6103 8 9 NOTICE OF COMPLETION
10 PROJECT NO. 2024-08, “BANNING CANYON STORMWATER PERCOLATION 11 BASIN REPAIRS”
12 13
14 THIS NOTICE OF COMPLETION IS HEREBY GIVEN by the OWNER, the City 15 of Banning, a municipal corporation, pursuant to the provisions of Section 9204 of the Civil 16 Code of the State of California, and is hereby accepted by the City of Banning, pursuant to 17 authority conferred by the City Council this March 24, 2026, and the grantees consent to 18 recordation thereof by its duly authorized agent.
19 20 That the OWNER, the City of Banning, and Weaver Grading, Inc. of Beaumont, California, 21 the vendee, entered into an agreement dated February 11, 2025, for Project No. 2024-08, 22 “Banning Water Canyon Stormwater Percolation Basin Repairs”. 23 24 The principal items of work included the restoration of percolation basins following 25 damage from Tropical Storm Hilary (2023) and debris from the Apple Fire, which caused 26 slope erosion, sediment buildup, and damage to access roads and culverts. 27 28 That the work of improvement was completed on February 26, 2026, for Project No. 2024- 29 08, “Banning Water Canyon Stormwater Percolation Basin Repairs”. 30 (1) The Nature of Interest was civil improvements completed on February 26, 31 2026, for Project No. 2024-08, “Banning Water Canyon Stormwater Percolation Basin 32 Repairs”.
33 (2) That the City of Banning, a municipal corporation, whose address is 34 Banning City Hall, 99 E. Ramsey Street, Banning, California 92220, is completing work 35 of improvement.
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1 (3) That said work of improvement was performed within Banning Water 2 Canyon, north of Bluff Street in Banning, California 92220. 3 (4) That the original contractor for said improvement was Weaver Grading, Inc. 4 of Beaumont, California, State Contractor’s License No. 703974, Class A. 5 (5) That Performance and Payment bonds were required for this project. 6 (6) The nature of interest is in fee.
7 Dated: March 24, 2026
8 CITY OF BANNING
9 A Municipal Corporation
10 11
12 13 By
14 Elizabeth Gibbs
15 City Manager
16 17 ATTEST:
18 19
20 21 Sandra Calderon
22 Administrative City Clerk
23 24 APPROVED AS TO FORM:
25 26
27 John Pinkney
28 City Attorney
29 Slovak, Baron, Empey, Murphy & Pinkney LLP
30 31
32 163

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1 JURAT
2 A notary public or other officer completing this certificate verifies only the identity 3 of the individual who signed the document to which this certificate is attached, 4 and not the truthfulness, accuracy, or validity of that document. 5 6
7 State of California
8 County of Riverside
9 10 Subscribed and sworn to (or affirmed) before me on this ___day of ___________, 2026 11 by ________________________________, who proved to me on this basis of satisfactory 12 evidence to be the person(s) who appeared before me. 13 14
15 16 (S e a l)
17 ______________________________
18 Notary Public in and for said County
19 and State
20 21 STATE OF CALIFORNIA
22 COUNTY OF RIVERSIDE
23 24 SANDRA CALDERON, being duly sworn, deposes and says:
25 26 That I am the Administrative City Clerk of the City of Banning, which City caused 27 the work to be performed on the real property hereinabove described, and is authorized to 28 execute this Notice of Completion on behalf of said City; that I have read the foregoing 29 Notice and know the contents thereof, and that the facts stated therein are true based upon 30 information available to the City of Banning, and that I make this verification on behalf of 31 said City of Banning. I declare under perjury that the forgoing is true and correct. 32 Executed on ___________________, 2026 at Banning, California. 33 34
35 Sandra Calderon
36 Administrative City Clerk
37 City of Banning
38 }
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RESOLUTION 2025- 18

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AWARDING A CONSTRUCTION CONTRACT TO WEAVER GRADING, INC. IN THE AMOUNT OF $ 537, 100 FOR THE BANNING WATER CANYON STORMWATER PERCOLATION BASIN REPAIRS AND APPROVING A 20% CONTINGENCY FOR A TOTAL PROJECT BUDGET NOT- TO- EXCEED $ 644, 520
WHEREAS, the City owns and operated 36 water recharge/ percolation basins (" Basins") in the Banning Water Canyon, which were damaged by Tropical Storm Hilary in 2023 and worsened by debris flows related to the Apple Fire of August 2020. The Basins are in need of repairs ( i.e. slope grading and inlet/ outlet piping) and dredging along with regrading of access roads (" Project"); and
WHEREAS, on May 14, 2024, the City Council approved Resolution 2024- 69, approving a Funding Agreement between the City and Riverside County Flood Control and Water Conservation District ( RCFC & WCD); and
WHEREAS, through the Funding Agreement, the City will be reimbursed for seventy- five percent ( 75%) of the Project costs up to $ 750, 000; and WHEREAS, on November 26, 2024, the Purchasing Department advertised an Invitation for Bids ( IFB) # 24- 089 for the Project and as a result received 5 bids; and WHEREAS, the lowest, responsive and responsible bid was submitted by Weaver Grading, Inc. of Beaumont, California in the amount of $537, 100; and WHEREAS, funding for the Project was included in the current fiscal year approved budget in the amount of $1,000, 000 in Account 660- 6300- 471. 95-09.

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

SECTION 1. The City Council approves the Construction Contract with Weaver Granding, Inc. for the Banning Water Canyon Stormwater Percolation Basin Repairs in an amount of $ 537, 100 and a twenty percent ( 20%) contingency with a total not- to-exceed amount of $644, 520.

SECTION 2. The City Council authorizes the City Manager to make non- substantive changes to the Construction Contract and to execute the Construction Contract with Weaver Grading, Inc. on behalf of the City Council.

SECTION 3. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this resolution and to approve change orders within the approved contingency.

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.

Resolution 2025- 18

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PASSED, APPROVED AND ADOPTED this 11th day of February , 2025.

ATTEST:

Caroline Patton, Ad
City of Banning
APPROVED AS TO FORM:

Resolution 2025- 18

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shllynn, Mayor w
City of Banning
166
CERTIFICATION:

I, Caroline Patton, Administrative City Clerk of the City of Banning , California , do hereby certify that the foregoing Resolution 2025- 18, was duly adopted by the City Council of the City of Banning , California , at a regular meeting thereof held on the 11th day of February , 2025 by the following vote, to wit:

AYES : Barrington, Flynn, Miller, Royce, Wallace .

NOES :

ABSENT:

ABSTAIN:

Resolution 2025- 18

Page 3 of 4 ends

Caroline Patton, Administ
City of Banning , California
167
Resolution 2025- 18

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EXHIBIT A
Construction Contract
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CONTRACT (C01122)

CITY OF BANNING CONTRACT FOR
CANYON STORMWATER PERCOLATION BASIN REPAIRS PROJECT & IFB 24-089 THIS CONTRACT (" Contract") is made and entered this ________ (" Effective Date"), by and between the CITY OF BANNING, a California municipal corporation (" City") and Weaver Grading, Inc., a California Corporation (" Contractor"). Contractor' s California State Contractor' s license number is 703974; Class A. Contractor' s DIR registration number is 1000015133.

In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

I. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid ( including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference.

2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as Canyon Stormwater Percolation Basin Repairs Project (" Project"), as described in this Contract and in the Contract Documents.

3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of Five Hundred Thirty- Seven Thousand One Hundred Dollars ($ 537,100.00) in accordance with the prices as submitted in the Bid.

4. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers' Compensation Certificate oflnsurance, Additional Insured Endorsement Comprehensive General Liability), Additional Insured Endorsement ( Automobile Liability), and Additional Insured Endorsement ( Excess Liability).

5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U .S.C. Sec.§ 15) or under the Cartwright Act (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.

6. Prevailing Wages. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply.

7. Workers' Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the perfonnance of the Work of this Contract."

8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.

C-1
169

9. Authority. Any person executing this Contract on behalf ofContractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.

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

11. Entire Agreement. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements.

This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.

12. Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (" electronic signature"). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties

13. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.

CITY OF BANNING
City Council Approval: _____ _ By: -------------
City Manager Date
ATTEST: APPROVED AS TO FORM:

By: By: -------------
Administrative City Clerk Date City Attorney Date
CONTRACTOR")
By: -------------
Name: Date
Title:

C-2
170
C-1
CONTRACT (C01122)

CITY OF BANNING CONTRACT FOR
CANYON STORMWATER PERCOLATION BASIN REPAIRS PROJECT & IFB 24-089

THIS CONTRACT (
Weaver Grading,
Inc., a California Corporation s
703974; Class A 1000015133.

In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. The Contract Documents are attached hereto and incorporated herein by reference.

2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as Canyon Stormwater Percolation Basin Repairs Project Contract and in the Contract Documents.

3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of Five Hundred Thirty-Seven Thousand One Hundred Dollars ($537,100.00) in accordance with the prices as submitted in the Bid.

4. Incorporation by Reference. All of the following documents are attached hereto and incorporated (Comprehensive General Liability), Additional Insured Endorsement (Automobile Liability), and Additional Insured Endorsement (Excess Liability).

5. Antitrust Claims. In entering into this Contract, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. § 15) or under the Cartwright Act (Business and Professions Code Section 16700 etseq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.

6. Prevailing Wages. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply.

7. . Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of

8. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it. 171
C-2

9. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.

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

This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.

12. Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties

13. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.

CITY OF BANNING
City Council Approval: ______________ By:

City Manager Date
ATTEST: APPROVED AS TO FORM:

By: By:

Administrative City Clerk Date City Attorney Date

)
By:

Name: Date
Title:
172

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Brandon Robinson, Electrical Engineering Supervisor Art Vela, Director of Public Works
MEETING DATE: March 24, 2026
SUBJECT: Accept Easements from Tri Pointe Homes for Electric Utility Purposes on Accessor’s Tract Map Nos. 37389-1, 37389-4, and 37389-F within the Atwell Development for the Maintenance of the City-Owned Electric Distribution System
RECOMMENDATION:

Accept easements from Tri Pointe Homes for electric utility purposes for Tract Map Nos. 37389-1 Lots G and M, 37389-4 Lot H, and 37389-F Lot H within the Atwell development.

BACKGROUND:

Final Tract Map No. 37389-1 within the Atwell Development Specific Plan was approved by the Banning City Council via Resolution 2022-122 on September 13, 2022 and Tract Map Nos. 37389-4 and 37389-F were approved by the Banning City Council via Resolution 2025-027 on February 25, 2025. The Banning Electric Utility has constructed electrical improvements within these tracts that were required to serve the new Atwell housing development. As part of the Conditions of Approval for the project, the developer or owner is required to provide the City with the necessary easements for the maintenance of the City owned electric distribution system.

The facilities within the proposed easements consist of primary underground electric infrastructure required for utility service within the Atwell development.

JUSTIFICATION:

It is necessary to obtain the easement for the City to access and provide maintenance for the City-owned electric distribution equipment which may include utility poles, conduit with conductors, transformers, switchgear, equipment pads, and meters.

FISCAL IMPACT:

There is no fiscal impact associated with the acceptance of the easement.

ATTACHMENTS:

1. Easement 37389-1, PA 5B Lots G and M.pdf

2. Certificate of Acceptance - Easement for 37389-1, PA 5B Lots G and M.docx

3. Easement 37389-4, PA 12 Lot H.pdf

4. Certificate of Acceptance - Easement for 37389-4, PA 12 Lot H.docx

5. Easement 37389-F, PA 13 Lot H.pdf

6. Certificate of Acceptance - Easement for 37389-F, PA 13 Lot H.docx 173
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Recording Requested by:

City Clerk
City of Banning
P.O. Box 998
Banning, CA 92220

NO RECORDING FEE PER SECTION
6103 OF THE GOVERNMENT CODE

CERTIFICATE OF ACCEPTANCE
This is to certify that the EASEMENT – PUBLIC ELECTRIC UTILITY PURPOSES from Tri Pointe Homes, IE-SD, Inc., dated 02/10/2026, is hereby accepted by THE CITY OF BANNING pursuant to authority conferred by the City Council this 24th day of March 2026, and the grantees consent to recordation thereof by its duly authorized agent.

Dated: March 24, 2026

CITY OF BANNING
________________________________
Sandra Calderon, Deputy City Clerk
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Recording Requested by:

City Clerk
City of Banning
P.O. Box 998
Banning, CA 92220

NO RECORDING FEE PER SECTION
6103 OF THE GOVERNMENT CODE

CERTIFICATE OF ACCEPTANCE
This is to certify that the EASEMENT – PUBLIC ELECTRIC UTILITY PURPOSES from Tri Pointe Homes, IE-SD, Inc., dated 02/02/2026, is hereby accepted by THE CITY OF BANNING pursuant to authority conferred by the City Council this 24th day of March 2026, and the grantees consent to recordation thereof by its duly authorized agent.

Dated: March 24, 2026

CITY OF BANNING
________________________________
Sandra Calderon, Deputy City Clerk
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Recording Requested by:

City Clerk
City of Banning
P.O. Box 998
Banning, CA 92220

NO RECORDING FEE PER SECTION
6103 OF THE GOVERNMENT CODE

Dated: March 24, 2026

CITY OF BANNING
________________________________
Sandra Calderon, Deputy City Clerk
197

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director Art Vela, Director of Public Works
MEETING DATE: March 24, 2026
SUBJECT: Consideration of Resolution 2026-52, Adopting the Water Supply Verification for Tract No. 39259 and 39262 (Atwell Specific Plan Phases 3B & 4A-1).

RECOMMENDATION:

Adopt Resolution 2026-52
BACKGROUND:

California Government Code §66473.7 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are available for projects meeting certain criteria. In the case of Tract No. 39259 and 39262, Atwell Specific Plan Phases 3B & 4A-1 with a combined area of 217.2 acres and 985 residential units, which is over the 500 Equivalent Dwelling Units (EDUs) threshold requiring written verification of sufficient water supplies.

California Water Code §10910 requires the preparation of a water supply assessment, which provides substantial evidence in support of the written verification. A water supply assessment (WSA) was previously prepared for the entire Atwell Specific Plan (previously Butterfield Specific Plan) and approved by City Council with final modifications in 2011.

In addition to the WSA prepared for the entire Specific Plan, each individual tract map with water demands in excess of 500 equivalent dwelling units (EDUs) requires the preparation of a Water Supply Verification, pursuant to California Senate Bill 221 (Chapter 642, Statutes of 2001) and Government Code §66473.7(a)(1). If the water demand of the proposed project was accounted for in the most recent Urban Water Management Plan (UWMP), the water supply verification may draw upon the information and analysis in the UWMP previously prepared by the City. The City prepared and adopted its 2020 UWMP as of June 2021, and the prepared Water Supply Verification relied on the information within the City’s UWMP.

Furthermore, in the near future, it is anticipated that conversion due to the production of recycled and conversions to non-potable irrigation will increase potable availability (groundwater) by 929 acre-feet per year in 2030 to 2,307 acre-feet per year in 2045. The City produced a total of approximately 8,111 acre198 feet to meet demands during the 2024 calendar year.

JUSTIFICATION:

The WSV prepared for Tract No. 39259 and 39262 (Atwell Specific Plan Phases 3B & 4A-1) are subject to and meet the requirements of the California Water and Government Codes.

FISCAL IMPACT:

There are no costs from the City’s existing budget involved with the above action, however the proposed development will generate operational and impact fee revenues for the City’s water funds.

ATTACHMENTS:

1. Resolution 2026-52.docx

2. Exhibit A_WSV for Tracts 39259 and 39262 (ATWELL PHASES 3B & 4A-1).pdf 199
Resolution 2026-52

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RESOLUTION 2026-52

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, ADOPTING THE WATER SUPPLY VERIFICATION FOR TRACT NO. 39259 & 39262 (ATWELL SP PHASE 3B & 4A-1)
WHEREAS, the City is the Water Purveyor for the water service area of the City of Banning; and
WHEREAS, a Water Supply Verification (WSV) has been prepared by the City’s consultant West & Associates Engineering, Inc for Tract No. 39259 & 39262; Atwell Phase SP 3B and $A-1 (Project); and
WHEREAS, the proposed Project is subject to California Senate Bill 221 (Chapter 642, Statutes of 2001) requiring a WSV because it is a Subdivision, pursuant to Government Code §66473.7(a)(1); and
WHEREAS, the WSV must be approved by the governing body of the public water system, the City of Banning; and
WHEREAS, the City has prepared and adopted its 2020 Urban Water Management Plan (UWMP) as of June 8, 2021; and
WHEREAS, the City approved a final version of the Water Supply Assessment (WSA) in December 2011 for the Butterfield Specific Plan; and
WHEREAS, the WSV prepared for the Project, attached and incorporated herein by this reference, relies on the information within the Butterfield Specific Plan WSA and the City’s adopted 2020 UWMP that indicates the City will have a sufficient water supply during the period from 2020 to 2045 during normal, single, and multiple dry years; and WHEREAS, the City’s water supply will meet the water demands of this proposed Project, existing uses, and other future uses.

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

SECTION 1. The City Council hereby makes the following findings related to the WSV:

California Government Code §66473.7 requires affirmative written verification from the water purveyor of the public water system that sufficient water supplies are available for projects meeting certain criteria. In the case of Tract No. 39259 and 39262, Atwell Specific Plan Phases 3B & 4A-1 with combined area of 217.2 acres and 985 residential units, which is over the 500 Equivalent Dwelling Units (EDUs) threshold requiring written verification of sufficient water supplies.

California Water Code §10910 requires the preparation of a water supply assessment, which provides substantial evidence in support of the written verification. A water supply assessment (WSA) was previously prepared for the entire Atwell SP (previously Butterfield SP) and approved by City Council with final modifications in 2011. 200
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In addition to the WSA prepared for the entire SP, each individual tract map with water demands in excess of 500 equivalent dwelling units (EDUs) requires the preparation of a Water Supply Verification, pursuant to California Senate Bill 221 (Chapter 642, Statutes of 2001) and Government Code §66473.7(a)(1). If the water demand of the proposed project was accounted for in the most recent Urban Water Management Plan (UWMP), the water supply verification may draw upon the information and analysis in the UWMP previously prepared by the City. The City prepared and adopted its 2020 UWMP as of June 2021, and the prepared Water Supply Verification relied on the information within the City’s UWMP.

The Water Supply Verification, prepared by the City's consultant (West & Associates Engineering, Inc.) demonstrates that the City’s water supply will meet the water demands of the proposed Project. The combined indoor and outdoor water demands for Tract No. 39259 and 39262; Phases 3B and 4A-1 are estimated at 538 acre-feet per year. For the years 2025 through 2045, the City has a projected water supply of 14,398 acre-feet per year. In addition, at the end of calendar year 2024, the City of Banning maintains a storage account in the Beaumont Basin, currently estimated at 49,225 acrefeet. Furthermore, in the near future, it is anticipated that conversion due to the production of recycled and conversions to non-potable irrigation will increase potable availability (groundwater) by 929 acre-feet per year in 2030 to 2,307 acre-feet per year in 2045. The City produced a total of approximately 8,111 acre-feet to meet demands during the 2024 calendar year.

Based on the above findings and the substantial evidence in the record including the WSA, WSV, staff report, and other documents incorporated therein, the City Council hereby finds that the public water system’s total projected water supplies available during normal, single dry and multiple dry water years during a 20-year projection will meet the projected water demand associated with the proposed Project, in addition to the public water system’s existing and planned future uses, including agricultural and manufacturing uses.

SECTION 2. The City Council hereby approves the Water Supply Verification, dated March 2026, for Tract No. 39259 and 39262, Atwell Specific Plan Phases 3B & 4A-1.

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 March 2026. .

Richard Royce, Mayor
City of Banning
201
Resolution 2026-52

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ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
202
Resolution 2026-52

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CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-52, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of March 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
203
Resolution 2026-52

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EXHIBIT A
Water Supply Verification
204
Water Supply Verification
Atwell Specific Plan Phases 3B and 4A-1
(Tract Maps 39259 and 39262)
Developer: Tri Pointe Homes
Corona, CA
March, 2026
205
Water Supply Verification
Atwell Specific Plan Phases 3B and 4A-1
(Tract Maps 39259 and 39262)
City of Banning, CA
Public Works Department
99 East Ramsey Street
Banning, CA 92220
(951) 922-3130
Developer
Tri Pointe Homes -
Inland Empire Division Office
1250 Corona Pointe Court, Suite 600
Corona, CA 92879
(951) 428-4400
Report Prepared by:

West & Associates Engineering, Inc.
78 Anacapa Ct
Foothill Ranch, CA 92610
March, 2026
206
ATWELL SPECIFIC PLAN PHASES 3B AND 4A-1

TABLE OF CONTENTS
TOC - 1
WATER SUPPLY VERIFICATION 2026

TABLE OF CONTENTS
Section 1: Executive Summary
SECTION Page

1.1 Scope of Water Supply Verification ...................................................................................2 Section 2: Proposed Development
SECTION Page

2.1 Development Location .......................................................................................................4

2.2 Development Water Demands ..........................................................................................5

2.3 2020 UWMP Projections ...................................................................................................6 Section 3: Water Supply
SECTION Page

3.1 Water Supply Sources.......................................................................................................11

3.2 Groundwater Production..................................................................................................12

3.3 Description of Groundwater Basins..................................................................................15

3.4 Projected Groundwater Supply ........................................................................................19

3.5 Groundwater Management..............................................................................................21

3.6 Imported Water ................................................................................................................22

3.7 Banning Water Canyon ....................................................................................................23

3.8 Recycled/Non-Potable Water ...........................................................................................24 Section 4: Water Demand
SECTION Page

4.1 Recent Water Use ............................................................................................................28

4.2 Recent Water Use by Sector ............................................................................................28

4.3 Water Demand Projections ..............................................................................................30 Section 5: Water Supply vs. Demand Analysis
SECTION Page

5.1 City Supply Reliability .......................................................................................................33

5.2 Drought Risk Assessment..................................................................................................34

5.3 Ensuring Adequate Supply ...............................................................................................35 Section 6: Water-Use Efficiency Strategies
SECTION Page

6.1 Development Conservation Measures .............................................................................45 207
TOC - 2 ATWELL SPECIFIC PLAN PHASES 3B AND 4A-1

TABLE OF CONTENTS
2026 WATER SUPPLY VERIFICATION
Section 7: Summary
SECTION Page

7.1 Conclusion and Recommendations ..................................................................................50 Appendices
Appendix A Council Resolution Adopting Water Supply Verification Appendix B Excerpts from the 2020 Urban Water Management Plan (Excerpts from Sections 2, 3, 4, & 6)
Appendix C Beaumont Basin Judgment
Appendix D Excerpts from 2018 Integrated Master Plan
(Table 3.5 & Figure 6.11)
Appendix E California Government Code Section 66473.7
(Water Supply Verification)
List of Tables
1 Atwell Phases 3B and 4A-1 Development Water Demands
2 Recent Groundwater Production (AFY)
3 Banning Annual Storage Consolidation - Beaumont Storage Unit 4 Projected Water Supply Availability (AF)
5 Historic SGPWA Water Purchases (AF)
6 Projected SGPWA Water Purchases (AF)
7 Potential Recycled Water Users
8 City’s Recent Water Use
9 Recent Water Use by Sector (AF)
10 Projected Water Use by Sector – With Development
11 Normal Water Year (AF) – With Development
12 Single Dry Year (AF) – With Development
13 Multiple Dry Years (2023-2027) (AF) – With Development 14 Multiple Dry Years (2028-2032) (AF) – With Development 15 Multiple Dry Years (2033-2037) (AF) – With Development 16 Multiple Dry Years (2038-2042) (AF) – With Development 17 Multiple Dry Years (2043-2047) (AF) – With Development 208
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TABLE OF CONTENTS
TOC - 3
WATER SUPPLY VERIFICATION 2026
List of Figures
1 Location Map/Aerial Photo
2 Current Planning Areas (Atwell Phases 3B And 4A-1)
3 Proposed Land Use Designations (Atwell Phase 3B)
4 Proposed Land Use Designations (Atwell Phase 4A-1)
5 Existing & Proposed Groundwater Wells Adjacent to Proposed Phases 3B And 4A-1 Development
6 Groundwater Storage Units
7 Current Water Demand by Sector (2024)
8 Projected Water Demand by Sector – With Development (in 2045) 209
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Section 1: Executive Summary
The purpose of this report is to provide an evaluation of the adequacy of total existing and future water supplies available to serve the proposed Specific Plan Phases 3B and 4A-1 (Development) of the “Atwell” Project, which will encompass Tract Numbers 39259 and 39262, respectively. This WSV anticipates adequate water will be available to the Development during normal, single dry, and multiple dry water years during a 20-year projection. A Water Supply Verification (WSV) is mandated by California Government Code Section 66473.7 for a subdivision that includes proposed residential development of more than 500 dwelling units, which applies to this Development.

This WSV relies in part on the Water Supply Assessment (WSA) for the Butterfield Specific Plan (“Atwell" Project) that RBF Consulting prepared in June 2011 along with part of the Draft Environmental Impact Report (EIR) and later modified in December 2011 by Section 4.1 of the Final EIR. This fulfilled the requirements of SB 610 when the Specific Plan was approved and the EIR was certified.
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1.1 SCOPE OF WATER SUPPLY VERIFICATION (WSV)
The City of Banning Public Works Department provides domestic water services to the City of Banning (City) and portions of unincorporated Riverside County located southwesterly of the City limits. The City of Banning would provide water to all portions of the Development. This WSV documents sources of water supply, quantifies water demands, evaluates drought impacts, and provides a comparison of water supply and demand, and will serves as the basis for the City to determine if adequate water will be available during normal, single dry, and multiple dry water years during a 20-year projection to meet the projected water demand associated with the Development. The Development is described in more detail later in Section 2.

The scope of this WSV is defined under California Government Code Section 66473.7, which includes the following elements:

1. 66473.7(b): The City shall include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply shall be available. Proof of the availability of a sufficient water supply shall be based on written verification from the applicable public water system within ninety (90) days of a request.

2. 66473.7(c): The verification shall be supported by substantial evidence, which may include the City’s most recently adopted Urban Water Management Plan (UWMP), adopted pursuant to Water Code Section 10610.
a. The entire Atwell Project water demands were accounted for as part of the 2015 and 2020 UWMPs, therefore this WSV will verify those findings.

This WSV does not specifically address funding of new or existing supplies. To serve the Development, the Developer (Tri-Pointe Homes) will be required to fund the acquisition of new supplemental supplies, including the treatment and distribution thereof. The extent of additional funding will be determined by the City and may take the form of new connection (capacity) fees or separate, miscellaneous charges. The City will also prepare a “Will Serve Letter”, which will declare that the City will provide a water service connection(s) to the proposed Development.

The Will Serve Letter will be issued upon payment of all fees by the Developer. 212

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3 WATER SUPPLY VERIFICATION 2026
Section 2: Proposed Development
The Atwell Specific Plan Phase 3B has a project area of 160.02 acres and 792 Dwelling Units, consisting of residential lots, open space and lettered lots, private common driveways, and public streets. The Atwell Specific Plan Phase 4A-1 has a project area of 68.74 acres and 193 Dwelling Units, consisting of residential lots, open space and lettered lots, private common driveways, and public streets. The northern portion of Phase 4A will be processed at a later time. This brings the total Atwell Specific Plan Phase 3B and 4A-1 (Development) project area to 228.76 acres and 985 Dwelling Units, all within the Butterfield Specific Plan (now “Atwell" Project).

As outlined in the Butterfield Specific Plan (“Atwell” Project), Phase 3B establishes eleven (11) Planning Areas, including: 31, 36, 37, 46, 47A, 47C, 48A, 49A, 49B, 53, and 63A. As shown in Figure 2, seven (7) of the Planning Areas {46, 47A, 47C, 48A, 49A, 49B, and 53} are designated for residential use, and four (4) of the Planning Areas {31, 36, 37, and 63A} are designated for open space use (parks, etc.). As outlined in the Butterfield Specific Plan (“Atwell” Project), Phase 4A-1 establishes four (4) Planning Areas, including: 50A, 51, 74, and 75. As shown in Figure 2, two (2) 213
4 WATER SUPPLY VERIFICATION
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2026 WATER SUPPLY VERIFICATION
of the Planning Areas {50A and 51} are designated for residential use, and two (2) of the Planning Areas {74 and 75} are designated for open space use (parks, flood control, reservoirs, etc.). The Planning Areas will be designed, permitted, and constructed over the course of available funding for the development.

2.1 DEVELOPMENT LOCATION
The Phases 3B and 4A-1 of the Atwell Project are located in the westerly portion of the City, within the northeasterly portion of the Atwell Project, just north of Phase 2B. Phase 3B will encompass Tract Numbers 39259-1, 39259-2, 39259-3, 39259-4, 39259-5, 39259-6, and 39259-F. Phase 4A-1 will encompass Tract Numbers 39262-1, 39262-2, and 39262-F. The Atwell Project is located north of Interstate 10 and west of Highland Home Road, and is bounded on the west by the City’s boundary (Highland Springs Avenue). A Location Map/Aerial Photo of the development is included in Figure 1.

Figure 1. Location Map/Aerial Photo
City Boundary
Atwell Phase 3B Atwell Phase 4A-1
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5 WATER SUPPLY VERIFICATION 2026
There are five (5) different land use designations of the Phase 3B portion of the Atwell Project, which include Low-Density Residential, Medium-Density Residential, Medium-Density Residential (Duplexes); however, because it is comprised of 11.95 du/ac the Projected Water Demand will treat this as High-Density Residential placing per the land use designations of the City’s General Plan, Open Space/Resources, and Open Space/Parks. There are four (4) different land use designations of the Phase 4A-1 portion of the Atwell Project, which include Low-Density Residential, Medium-Density Residential, Open Space/Resources, and Open Space/Parks. The proposed land use designations are indicated in Figure 3.

2.2 DEVELOPMENT WATER DEMANDS
This WSV will verify the findings of the 2020 UWMP that determined sufficient water supply of the City to serve Phases 3B and 4A-1 of the Atwell Project during normal, dry-year, and multipledry year scenarios through 2045. The projected water demands from Phases 3B and 4A-1 Development are shown in Table 1 below:

Table 1: Atwell Phases 3B and 4A-1 Development Water Demands Land Use Acres
(See Figure 3)
Water
Demand Factor
(GPD/Acre) 1
Total Daily
Water Demand
(Gal)
Total Yearly
Water Demand
(Acre-Feet)
Low-Density Residential 73.86 2,300 169,878 191
Medium-Density Residential 67.36 2,800 188,608 212
High-Density Residential 20.75 3,100 64,325 73
Open Space – Parks / Resources 66.79 1,000 66,790 75
Total 228.76 --- 489,601 551
1: Source: City of Banning 2018 Integrated Master Plan (IMP), Table 3.5 As indicated in Table 1 above, Phases 3B and 4A-1 of the Atwell Project is expected to create an overall water demand of approximately 551 AF.
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2.3 2020 UWMP PROJECTIONS
The City’s 2020 Urban Water Management Plan (2020 UWMP) accounted for two (2) proposed developments, which include the Atwell Project (formerly “Butterfield Specific Plan”) and Rancho San Gorgonio Specific Plan.

The 2020 UWMP projected the City's water use for 2025-2045 broken down by sector (2020 UWMP Table 6.6). Two (2) proposed developments (totaling 8,300 connections) were added to the estimate for 2045. Three (3) persons per connection multiplied by 8,300 connections (totaling 24,900 persons) amounts to a Citywide total of 66,400 persons for 2045. Distributed annually over 25 years, this amounts to a population growth of 1,411 persons per year for 25 years. Based off the Consumption Rates (gpcd) shown in the 2020 UWMP, including a 1% Annual Passive Savings, this equates to a water demand of 5,050 AFY in 2045. As indicated in Table 1, the total Phases 3B and 4A-1 water demands (551 AFY) are well within the UWMP projections for ultimate (build-out) water demands, even when combined with the Phase 2B water demands (298 AFY), as indicated in the Water Supply Verification - Atwell Specific Plan Phase 2B, for a total of 849 AFY.

The 2020 UWMP accounted for a water demand of 871 AFY from the Atwell Project in 2026.

The 2020 UWMP determined that if water use efficiency increases, the City can expect to have an adequate water supply in future years. This is in spite of a projected population growth over the next 25 years. Therefore, because the Development’s water demand was included in the 2020 UWMP, no further analysis would be required to determine if the City would have adequate water supply in future years to accommodate Phases 3B and 4A-1 of the Development.

Notwithstanding, the remaining portions of this WSV provide background information on the City’s water system, comparison of water supply to water demand, and conclusions/recommendations for the City.

The 2020 UWMP referred to the Atwell Project size based off the available information at that time, which was 1,543 acres and approximately 4,900 dwelling units. Based off the Developer 2025 data these values have been updated to reflect 1,523 acres and 4,456 dwelling units. The 2020 UWMP also included the Atwell Project’s increased population on a linear increase beginning in 2025, since it was unclear at the time how the phasing was to be developed. 216

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Figure 2: Current Planning Areas (Atwell Phases 3B and 4A-1) 217
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Figure 3: Proposed Land Use Designations (Atwell Phase 3B) 218

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9 WATER SUPPLY VERIFICATION 2026
Figure 4: Proposed Land Use Designations (Atwell Phase 4A-1) 219
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Section 3: Water Supply
The City’s water is obtained entirely from local groundwater basins through nineteen (19) potable groundwater wells, one (1) non-potable groundwater well, and three (3) co-owned wells with the Beaumont-Cherry Valley Water District (BCVWD). Both imported water and surface water are used to recharge the groundwater aquifers. This Section describes the current and projected water resources available to the City for this WSV.

3.1 WATER SUPPLY SOURCES
The City is within the boundaries of the Coachella Valley Hydrologic Unit, which encompasses several groundwater basins, including the Coachella Valley Groundwater Basin (Basin), within which the City is located. Several large subbasins, the boundaries of which are generally defined by fault lines that restrict the lateral flow of water, underlie the Basin. The Basin extends from Banning easterly to the Salton Sea.
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The City is underlain by the San Gorgonio Pass Subbasin (SGP Subbasin) portion of the overall Basin. The SGP Subbasin is further divided into water “storage units” which are not totally independent from each other. The City relies on the following five (5) storage units as sources of groundwater storage supply:

1. Beaumont Storage Unit (Beaumont Basin);

2. West Banning Storage Unit;

3. Cabazon Storage Unit.

4. Banning Bench Storage Unit;

5. Banning Water Canyon Storage Unit
The location of the Storage Units is shown on Figures 5 and 6.

3.2 GROUNDWATER PRODUCTION
As mentioned previously, the City owns and maintains nineteen (19) potable groundwater wells, one (1) non-potable groundwater well, and three (3) additional wells with BCVWD, for a total of twenty-three (23) wells. The pumping capacity of these wells is just over 14,000 AFY. However, this mechanical pumping capacity is actually limited to the safe yields and/or the adjudicated rights of the subbasins. The ground water production for the previous 7-years (2016 to 2022) is contained in Table 2.

To accommodate the proposed developments in the City (including the Atwell Project), the City is planning to redrill or add new well(s), including Well M7, Well M12, and a new well (Well C8) within the overall Atwell Project (or within Phases 3B and 4A-1 of the Atwell Project). The existing and future/potential wells are shown in Figure 5.

Since any new wells would be located in the Beaumont Storage Unit (Basin), which is an adjudicated basin, the City would need to consider operation of the wells such that the combined pumping volume of all wells in the Beaumont Basin does not exceed the City’s adjudicated limits (See Section 3.3: Beaumont Storage Unit).
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13 WATER SUPPLY VERIFICATION 2026
Figure 5: Existing & Proposed Groundwater Wells Adjacent to Proposed Phases 3B and 4A-1 Development Table 2: Recent Groundwater Production (AFY)
Basin Name 2016 2017 2018 2019 2020 2021 2022 2023 2024 Beaumont Storage Unit (Basin) 1,762 1,469 2,266 2,118 2,702 3,604 3,578 1,296 1,501 West Banning Storage Unit 1,396 1,967 1,957 1,326 1,719 947 809 538 885 Cabazon Storage Unit 1,211 685 1,006 526 0 210 541 421 640 Banning Bench Storage Unit 237 87 354 431 470 445 98 106 128 Banning Water Canyon Storage
Unit
2,428 3,367 2,342 2,826 3,705 2,890 2,817 4,921 4,957
Total 7,035 7,576 7,924 7,226 8,596 8,096 7,843 7,283 8,111 Source: City of Banning, Groundwater Extraction Annual Reports 2016 through 2024. Amount of groundwater pumped for Beaumont Basin includes water received from Beaumont Cherry Valley Water District, through three (3) Co-Owned Wells with the City of Banning, that directly pump from the Beaumont Basin.

City Boundary
Atwell Phase 3B Atwell Phase 4A-1
Well C4 Well M3
Well C2
Well C3
Well M7 Well M10 Well M12 Well M11
New Well C8
Storage Unit
Boundaries
Potential Future Treatment Facility
Foothill West Cluster
Beaumont
Storage Unit Banning Bench
Storage Unit
West Banning
Storage Unit
= Existing
= Proposed
223
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Hexavalent Chromium (Chromium-6)
Hexavalent chromium is a heavy metal that has been used in industrial applications and found naturally occurring throughout the environment. While chromium can exist in a nontoxic, trivalent form, the hexavalent form has been shown to be carcinogenic and toxic to the liver (OEHHA, 2011). Hexavalent chromium is among the chemicals known to the state to cause cancer [Title 27, California Code of Regulations, Section 27001], pursuant to California's Safe Drinking Water and Toxic Enforcement Act of 1986 ("Proposition 65"). The hexavalent chromium Maximum Contaminant Level (MCL) is 0.010 mg/L or 10 µg/L effective on October 1, 2024 and water systems with 10,000 or greater service connections are required to comply by October 1, 2026, which applies to the City.

The City recently tested for hexavalent chromium at all of its twenty-one (21) groundwater wells.

Eight (8) wells, including Wells C2A, C3, C4, C5, C6, C8, M3, M10, M11, and M12A tested near or above the new MCL. Subsequently, the City prepared and submitted a revised Chromium-6 Compliance Plan on 1/7/2026 to Division of Drinking Water (DDW) for their review and approval, which is currently pending approval.

The main objective of this Compliance Plan is for the City to come into compliance with the established MCL via Reduction-Coagulation-Filtration (RCF) treatment or non-treatment options (e.g. existing well screen modifications, blending, re-purposing potable wells to non-potable, or drilling new wells). Prior to doing so, the City plans to take a wholistic approach to meet the stated objective by achieving the following milestones listed below:

1. Develop a well profile to determine well screen modification opportunities for reducing levels of hexavalent chromium below the MCL;

2. Hire an owner’s advisor (consultant) to evaluate and design treatment and nontreatment options, prepare plans, specifications, capital and annual operations, and maintenance costs;

3. Raise capital via grants, rate increases, loans, bond issuance, etc., to implement the City’s compliance strategy; and

4. Construct the identified water system improvements to comply with the MCL. 224

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15 WATER SUPPLY VERIFICATION 2026
Currently, Wells C2A, C3, C6, M10, and M11 have exceeded the Running Annual Average (RAA) MCL of 10 ppb for Chromium-6. Although the City’s Chromium-6 Compliance Plan is pending approval by the DDW, the City recognizes that operational restrictions may be required if these exceedances persist. In the event the City is directed by DDW to shut down or reduce pumping from these wells, or any additional wells that may exceed the Chromium-6 RAA MCL, the resulting production loss could impact available water supply. Depending on the magnitude of the reduction, the City would implement the Water Shortage Response Actions identified in the 2020 UWMP. As outlined in Table 8.9 of the 2020 UWMP, a Stage 2 Water Shortage (10–20% shortage) includes measures such as suspending the issuance of new temporary or permanent water meters until supply conditions stabilize.

3.3 DESCRIPTION OF GROUNDWATER BASINS
The following basin descriptions are based on the Water Supply Verification Tentative Tract No. 37390, KWC Engineers. Inc., November 1, 2019 and the 2020 UWMP.

Beaumont Storage Unit (Beaumont Basin)
• The Beaumont Storage Unit, also referred to as the Beaumont Basin, is located in San Gorgonio Pass, a low-relief highland that is bordered on the north by the San Bernardino Mountains, on the southeast by the San Jacinto Mountains, and on the west by the San Timoteo Badlands. Surface sediment in the basin and the lowlands consist of unconsolidated and semi-consolidated Quaternary alluvium. Surrounding the alluvial sediments are semi-consolidated rocks of the San Timoteo Formation and igneous and metamorphic rocks of the San Jacinto and San Bernardino Mountains. The unconsolidated Quaternary alluvium and upper portion of the underlying San Timoteo Formation constitute the water-bearing aquifer.
• The boundaries of the basin are based on faults that form barriers to subsurface flow.

Major faults in the area include the Banning and Cherry Valley faults, which form the northern boundary of the basin.
• The total surface area is approximately 12,480 acres (19.5 square miles). • Groundwater occurs at depth in the Quaternary alluvium and the San Timoteo Formation. • The basin is replenished by infiltration of precipitation, subsurface flow across faults, return flow from irrigation and septic, and artificial recharge. 225
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• The basin discharges via groundwater production, subsurface flow across faults, rising water in San Timoteo Creek, and evapotranspiration.
• The safe yield is 6,700 AFY based on 2013 Reevaluation of the Beaumont Basin Safe Yield, dated April 3, 2015.
• The City operates four (4) groundwater production wells designated: C2, C3, C4, and M3 and an additional non-operating well M9. The four (4) active wells have a combined nominal capacity of 4,650 gpm.
• The City also co-owns with BCVWD three (3) groundwater production wells designated:
24, 25, and 26. The three (3) co-owned wells have a combined nominal capacity of 6,800 gpm, half of which is allotted to the City.
• The City’s total nominal pumping capacity in the Beaumont Basin is 8,050 gpm.

The Beaumont Storage Unit (Basin) is an adjudicated basin established by the Stipulation for Entry of Judgment Adjudicating Groundwater Rights in the Beaumont Basin (see Appendix C). Pursuant to the Judgment, the Court appointed a five (5) member Watermaster Committee, consisting of representatives from each of the five (5) appropriators, which include City of Banning, City of Beaumont, Beaumont-Cherry Valley Water District, South Mesa Water Company, and Yucaipa Valley Water District. At the end of calendar year 2024, the City had approximately 49,225 AF in its storage account, based on the Beaumont Basin Watermaster Consolidated Annual Report. The City of Banning is permitted to store up to 80,000 AF in the Beaumont Basin. Table 3 indicates the City of Banning’s storage in the basin for the past 8-years according to the Beaumont Basin Watermaster Consolidated Annual Reports 2016 through 2023. 226

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Figure 6: Groundwater Storage Units (Subbasins of San Gorgonio Pass Basin) City Boundaries
Beaumont Storage
Unit (Basin)
Development
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Table 3: Banning Annual Storage Consolidation - Beaumont Storage Unit Year 2016 2017 2018 2019 2020 2021 2022 2023 2024
Storage in AFY 49,990 51,960 52,320 51,737 50,889 48,778 46,570 47,650 49,225 (1) Source: Beaumont Basin Watermaster Consolidated Annual Reports On an annual basis, the Watermaster determines the amount of groundwater to which each producer is entitled from the Beaumont Basin without incurring a replenishment obligation. The City of Banning per Exhibit C Stipulation for Entry of Judgment Adjudicating Groundwater Rights in the Beaumont Basin (see Appendix D) is entitled to 31.43% of the unused overlying production in the Beaumont Basin. Quantities to which the City is entitled but does not pump can be credited to the City's storage account.

West Banning Storage Unit
• The total surface area is approximately 2,489 acres (3.9 square miles). • The area is underlain by alluvial sediments, with bedrock occurring to the north in the San Bernardino Mountains.
• The City operates four (4) groundwater production wells designated: Wells C5, M7, M10, and M11 with a combined nominal pumping capacity of 2,650 gpm. • The City lost Well M12, due to a collapse and has recently completed the drilling, development, and testing phase for its replacements (i.e., well M12A). Well M12A is expected to have a nominal pumping capacity of 400 gpm.

Banning Bench Storage Unit
• The total surface area is approximately 3,573 acres (5.9 square miles). • The area is underlain by alluvial sediments, with bedrock occurring to the north in the San Bernardino Mountains.
• The safe yield is 1,130 AFY.
• The average thickness is 600 feet.
• The estimated capacity is 240,000 AF, according to the WSA18. • The City operates three (3) groundwater production wells designated: Wells 1, 2, and 3 with a combined nominal pumping capacity of 3,650 gpm.
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Banning Water Canyon Storage Unit
• The Banning Water Canyon Storage Unit is located north of the Banning Bench Storage Unit • The total surface area is approximately 1,058 acres (1.7 square miles). • The canyon bottom comprises alluvium, and the canyon sides are bedrock. • The safe yield is 4,070 AFY.
• The average thickness is 161 feet.
• The estimated capacity is 13,500 AF. According to the WSA28 • Additional recharge occurs through the diversion of Whitewater River drainage into Banning Water Canyon via the San Gorgonio Flume.
• There are eight (8) active wells designated 4, 5, 7, 8, 9, 10, 11 and 12 with a combined nominal pumping capacity of 8,600 gpm.

Cabazon Storage Unit
• The Cabazon Storage Unit is located near the eastern boundary of the City, southeast of the West Banning Storage Unit and the Banning Bench Storage Unit. • The total surface area is approximately 17,215 acres (26.9 square miles). • The average thickness is 350 feet.
• The estimate storage is 1,000,000 AF.
• The safe yield is 5,265 AFY.
• There is one (1) active well designated: C6 with a nominal pumping capacity of 900 gpm. • Non-potable Well NP-1 (aka R1) has been equipped and is expected to be in service in 2026 once the non-potable distribution system is complete.

3.4 PROJECTED GROUNDWATER SUPPLY
As stated previously in this chapter, due to its reliance on local groundwater sources, the City has not experienced any actual supply deficiencies, even during multiple drought years. According to the 2020 UWMP, “the City is confident that water supplies are adequate to meet demands for all weather conditions through 2045.” With the local groundwater reserves available to the City during the preparation of the 2020 UWMP, which accounted for the Development, the City did not anticipate any water shortages. This WSV will review and analyze supply and demand data for 229
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the years subsequent to the 2020 UWMP and prior to preparation of this WSV (2021 through 2023). Table 4 below shows the City’s projected water supplies and available volumes, based off the values reflected in Appendix E of 2020 UWMP, DWR Submittal Table 6.9 (Appendix B) , with an updated end of calendar year 2023 amount of supply from the Beaumont Basin Storage Account.

Table 4: Projected Water Supply Availability (AF)
Year 2025 2030 2035 2040 2045
Beaumont Basin
Likely Used1 1,491 1,267 1,077 916 778
Total Available (Capacity) (6,700) (6,700) (6,700) (6,700) (6,700) West Banning Basin
Likely Used 1,430 1,430 1,430 1,430 1,430
Total Available (Capacity)1(1,430) (1,430) (1,430) (1,430) (1,430) Cabazon Basin
Likely Used 853 960 1,054 1,136 1,208
Total Available (Capacity)1(1,208) (1,208) (1,208) (1,208) (1,208) Banning Bench
Likely Used 1,055 1,187 1,304 1,330 1,330
Total Available (Capacity)1(1,330) (1,330) (1,330) (1,330) (1,330) Banning Water Canyon
Likely Used 3,679 3,730 3,730 3,730 3,730
Total Available (Capacity)1(3,730) (3,730) (3,730) (3,730) (3,730) Recharge/Storage
Imported Recharge2 1,000 1,250 1,500 2,000 2,500
WWTP Recharge (Recycled Water)1 0 929 1,245 2,144 2,307 Additional Supply from Storage3 999 2,126 3,156 4,128 4,991 Supply from Storage* 47,652 47,656 43,274 34,993 24,355 Total Available Supply 56,841 57,550 53,294 45,751 35,138 (1) Rows used to calculate the Total Available Supply.
(2) Imported Recharge water was added to Supply from Storage for each preceding year, and therefore not double counted in Total Available Supply
(3) Additional water Supply from Storage was subtracted from Supply from Storage for each preceding year, and therefore not double counted in Total Available Supply (4) See notes under UWMP Table 7.1 and notes under DWR Submittal Table 6.9 in UWMP Appendix E for a detailed explanation of the volumes above.
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3.5 GROUNDWATER MANAGEMENT
The Sustainable Groundwater Management Act, passed by the California Legislature in 2014, is an effort to regulate the use of groundwater in the state so that it is sustainable into the distant future. The Act requires all medium and high priority basins (the San Gorgonio Pass Subbasin is a medium priority basin) to develop a Groundwater Sustainability Plan (GSP) by January 2022. The 2022 GSP was submitted to DWR on 1/25/2025 and approved on 10/26/2023. The San Gorgonio Pass Subbasin Groundwater Sustainability Agency has made the 2022 GSP publicly available on its website: https://www.sgpgsas.org/. An update is required every 5 years, with the next update due on 1/1/2027. The contents of this plan are prescriptive and well defined by Act. Major components of each plan are a water budget for the subbasin, a hydrogeological conceptual model of the subbasin, and a stakeholder outreach plan.

Specifically, if a proposed development/project and/or subdivision will obtain water from a basin that is designated as medium- or high-priority under Act, the following must be included in the Water Supply Assessment/Verification:
• Information as to whether the Department of Water Resources has identified the basin as being subject to critical conditions of overdraft; and
• A copy of the Groundwater Sustainability Plan or alternative plan if a Groundwater Sustainability Agency has adopted such a plan.

According to the Department of Water Resources, the San Gorgonio Pass Subbasin is not identified as being subject to conditions of critical overdraft. The San Gorgonio Pass Subbasin has three (3) Groundwater Sustainability Agencies and all three worked together to produce a GSP.

The various water agencies that overlie the subbasin include the Desert Water Agency, Mission Springs Water District, Cabazon Water District, the City of Banning, the Banning Heights Mutual Water Company, and the San Gorgonio Pass Water Agency.
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3.6 IMPORTED WATER
The City purchases State Water Project (SWP) water from the San Gorgonio Pass Water Agency (SGPWA), one of 29 state water agencies with a SWP Water Supply Contract with the State Department of Water Resources (DWR). Quantities of SWP water purchased are recharged to the Beaumont Basin on SGPWA property. Recharge points were previously located at Beaumont Cherry Valley Water District (BCVMD). Quantities of water obtained from San Gorgonio Pass Water Agency for 2015-2025 are set forth in Table 5 below. Quantities that will be recharged in the future are dependent upon State Water Project water availability and storage capacity available to the City.

Table 5: Historic SGPWA Water Purchases (AF)
Year Purchases (AF)
2015 6861
2016 1,4771
2017 1,3501
2018 5001
2019 2501
2020 2501
2021 0
2 2022 352
2023 1,0002
2024 1,5002
2025 7503
Average: 709
2010 – 2015 Avg:
(2015 UWMP) 847
(1) Source: 2020 UWMP Table 3.2 Imported Water Supply 2015 to 2020 (2) Source: Beaumont Basin Watermaster Consolidated Annual Reports for 2021-2024. (3) Source: City’s internal reporting
In December 2020, the SGPWA announced that the SWP expected to deliver 10 percent of “Table A” contracted amounts in 2021. This allocation was decreased to 5 percent in March 2021. Due to continuing drought conditions throughout the State, in 2022 SWP allocations to contracting 232

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agencies fluctuated from 0 to 15 percent of “Table A” amounts. The wet winter of 2023 and resultant near-record snowpack in the Sierra Nevada has allowed the DWR to announce increases in “Table A” deliveries in January (30 percent), February (35 percent), and March (75 percent) 2023. In April 2023, DWR updated its expected deliveries from 75 to 100 percent of maximum annual “Table A” amounts. However, in December 2025, DWR stated it is initially allocating 10 percent of most SWP contractors’ requested Annual “Table A” Amounts for 2026. DWR will reassess the SWP allocation if water supply conditions change.

Although the City may expect variable reliability in availability of SWP water, such water is not its primary source of water, as it is relied on exclusively for recharge, and previous short-term declines in SWP water availability have been and will continue to be offset by the City's substantial reserves of stored groundwater and would not affect the City’s water supply. Due to the easing of drought conditions, the City received delivery of 100% of the 2023 order, but received much less in 2024. Table 6 shows the years in which the City’s amount of Purchases Water will increase.

Beginning in 2026 this value increases to 1,250 AF and will remain so until 2035 when it will further increase to 1,500 AF. This value will remain the same until 2040 when it will further increase to 2,000 AF and then again in 2045 to 2,500 AF.

Table 6: Projected SGPWA Water Purchases (AF)
Year Purchases (AF)
2026 1,250
2035 1,500
2040 2,000
2045
2,500
Source: City’s Internal Projections, increase based off past SGPWA contract with Ventura that will bring in additional water supply for Banning and Yucaipa.

3.7 BANNING WATER CANYON
In average years the Whitewater Flume provides direct water use to the Banning Heights Mutual Water Company, and the rest goes to recharging the Banning Water Canyon, which the City can then pump from as groundwater. A lot of recharged water is received during the Spring. 233
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The Apple Fire of 2020 encompassed the entire Whitewater Flume structure that diverted water to be recharged into the Banning Water Canyon. In December of 2022 water diversion was restored to the Banning Water Canyon, but the system remains damaged and unable to deliver surface water to BHMWC; therefore, BHMWC's water demands are met by water deliveries from the City of Banning. SCE, BHMWC, and the City are working together to get the system back in operation as quickly as possible. Southern California Edison currently owns the Whitewater Flume system.

The City of Banning preserved water stored in the Banning Water Canyon by instead pumping more from the Beaumont Basin Storage Account. This is apparent in the amount in storage for years 2021 and 2022 in Table 3. Since then, enough water has naturally replenished the Banning Water Canyon that the City began pumping water again in 2023 and relied less on the Beaumont Basin Storage Account. The City is not sure when the rest of the system will be restored for direct water replenishment.

3.8 RECYCLED/NON-POTABLE WATER
At this time there is no recycled water available in the City of Banning. According to the City’s 2018 IMP, the 2006 Recycled Water Master Plan, and the 2020 UWMP, the City anticipated implementing upgrades by 2025 at the City’s wastewater treatment plant that will meet tertiary treatment standards to supply recycled water. The City now anticipates that the wastewater treatment plant improvements will be completed by late 2028 to early 2029. Upon completion of the upgrades, approximately 2,700 AFY of recycled water would be available to recycled water customers. However, usage of the recycled water within the Beaumont Basin may be limited since it requires salt and nutrient removal which will require the installation of an Reverse Osmosis (RO) system and brine evaporation ponds, which are currently not in City's budget to upgrade the WWTP.

This document does not identify recycled water for use on the Development site, or as a potential supply source during the life of the Development. Recycled water use for the Development was also not identified in the 2020 UWMP. However, if the Development were to utilize recycled water, then the City’s increased use of recycled water would decrease the demand for potable water used in some irrigation and increase the capability to increase recharging in the West Banning 234

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Basin. Any proposed recycled water system is subject to the design requirements for the City of Banning Public Works Department and the demand criteria guidelines outlined in the 2018 IMP.

Potential Recycled Water Users
Upon completion of the recycled water upgrades, approximately 2,700 AFY of recycled water will be available to recycled water customers, based on the 2018 IMP. The City’s previous 2006 Recycled Water Master Plan identified potential customers across the Interstate 10 Freeway.

However, the 2018 IMP indicated that these potential customers were not feasible, due to the difficulty with crossing the 10 Freeway and the railroad tracks, and since there are other potential customers south of the 10 Freeway. The potential recycled water customers are listed in Table 7 below. As shown in Table 7, the projected total demand for the Atwell Project is 864 AFY.

Ignor e
Table 7: Potential Recycled Water Users
Customer Recycled Water
Demand (AF)
Conversion Year
(Begin Usage of Recycled
Water)
Existing Developments
Sun Lakes Golf Course 850 2030
Banning High School 175 2035
Dysart Park 87 2035
Lions Park 79 2030
Total 1,191 2035
Projected Developments
Atwell Project 864 20401
Rancho San Gorgonio
Development 217 2045
2 Neighborhood Park 35 2040
Total 1,116 2045
(1) City does not currently have a connection planned from the Recycled Water Main to the Atwell project at this time. They are plumbing for recycled water, but is not planned for construction yet.
(2) By 2035 25% of the Rancho San Gorgonio Development will have converted the desired potable water piping to recycled water.
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Section 4: Water Demand
As mentioned in Section 2.3, only two (2) proposed developments, the Atwell Project (formerly “Butterfield Specific Plan”) and Rancho San Gorgonio Specific Plan, were accounted for in the 2020 UWMP and 2018 IMP Population Projections. The 2020 UWMP developed Population Projections by linear growth using SCAG estimates for 2045, plus the two (2) proposed developments, that will bring the population growth to an average of 1,411 persons per year for the next 25 years (to 2045). By 2045, the City will be approaching ultimate "built-out" conditions with remaining expected future water demands primarily attributable to possible land use changes in residential densities and in-fill land development projects. As a result of the City’s local groundwater sources and imported recharge capacity from SGPWA, the City is in a position of providing a reliable source of quality water for the built-out conditions. 237
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4.1 RECENT WATER USE
Annual water consumption from 2016 to 2024 is listed in Table 8 below. Water consumption since 2016 has been consistent, with a moderate spike in 2020.

Table 8
City’s Recent Water Use
Year
Total
Consumption
(AF)
Population Per Capita
(GPCD)
2016 7,035 30,769 204
2017 7,576 30,981 218
2018 7,924 31,091 228
2019 7,226 31,142 207
2020 8,596 31,125 247
2021 8,096 31,189 232
2022 7,843 31,253 224
2023 6,333 31,253 201
2024 7,082 31,253 222
Average (last 9 years): 220
2010-2020 Avg. (2020 UWMP) 234
As indicated by Table 8, the City’s per capita water use has decreased since the 2020 UWMP due to water conservation.

4.2 RECENT WATER USE BY SECTOR
The City records water use per service connection only and bills customers based on a single water rate structure. Water sales data is compiled by City water staff and recorded on the DWR Form No. 38 (Public Water System Statistics) and submitted to DWR annually. The total water consumption by customer type since 2015 is shown on Table 9. 238

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As noted by Table 9, Single-Family Residential accounts are the highest consuming sector in the City since most of the City is zoned for single-family accounts (with higher densities for multifamily accounts). Figure 7 also shows the Current Water Demand by Sector (2024). The City's unaccounted for water ranged from 497 to 1,275 AF, which on average is about 11 percent of the total water supply into the City's distribution system. Unaccounted for water consists of routine flushing, unmetered use, and water losses. Although water losses have cost impacts on water agencies, they cannot be prevented entirely. Instead, effort is given to controlling the quantity of water losses (to a cost-effective extent) in order to reduce the cost impact of water losses on water operations. For this reason, the City has prepared water loss audits using AWWA software.

The water audits for 2016 to 2019 are provided in the Appendix of the 2020 UWMP. The 2019 Audit shows that the City’s Leakage Index (the ratio of real loss to unavoidable loss) was 1.16, which is an excellent score for water agencies.

Table 9: Recent Water Use by Sector (AF)
Sector 2016 2017 2018 2019 2020 2021 2022 2023 2024
Single Family Residential 3,370 3,728 3,775 3,438 3,966 4,030 3,955 3,538 3,815 Multi-Family Residential 69 76 77 70 81 82 78 72 78
Commercial 1,686 1,792 1,944 2,021 1,992 2,118 1,546 872 893 Industrial 94 102 101 95 172 259 210 202 217
Institutional/Governmental 58 64 58 28 23 39 410 1,013 1,140 Landscape Irrigation
(Potable) 539 579 562 505 559 834 1,004 885 1,102
Landscape Irrigation
(Non-Potable) 285 306 297 267 301 119 143 175 163
Other 0 0 0 0 0 0 0 0 0
Total Water Sales: 6,101 6,647 6,814 6,424 7,094 7,481 7,346 6,756 7,406 Unaccounted for Water* 934 929 1,110 802 1,502 615 497 238 990 Total Water Consumption
(Total Supply into System): 7,035 7,576 7,924 7,226 8,596 8,096 7,843 6,993 8,396 *Difference between total supply into system and metered/measured volumes. May not match official AWWA Water Audit Reports. 239
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Figure 7: Current Water Demand by Sector (2024)

4.3 WATER DEMAND PROJECTIONS
According to the 2020 UWMP, although a constant consumption rate provides a more conservative approach, the decreasing consumption rate scenario provides a more realistic picture for planning purposes as it considers gradual improvements in water-use efficiency and in the case of a multiple year event includes mandatory conservation measures that would not be in effect in a single year event. For planning purposes, the City's projected water use for 2025- 2045 shown in the 2020 UWMP, which accounted for the Development, is broken down by sector in Table 10. Figure 8 shows the Projected Water Demand by Sector (in 2045) with the Development.

Single Family

45.4%
Multi-Family

0.9%
Commercial

10.6%
Industrial

2.6%
Institutional/
Governmental

13.6%
Landscape
(Potable)

13.1%
Landscape
(Non-Potable)

1.9% Loss

11.8%
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Table 10
Projected Water Use by Sector – With Development
Sector 2025 2030 2035 2040 2045
Water Service Area Population 35,486 42,541 49,596 56,651 63,706 Consumption Rate (GPCD)
Including 1.0% Annual Passive Savings 217 207 197 187 178 Demands
Single Family Residential 4,357 4,967 5,507 5,982 6,397 Multi-Family Residential 86 98 109 119 127
Commercial 1,703 1,941 2,152 2,338 2,500
Industrial 232 264 293 318 340
Institutional/Governmental 451 514 570 619 662
Landscape Irrigation (Potable) 1,106 1,261 1,398 1,519 1,624 Landscape Irrigation ((Non-Potable) 158 180 199 216 231 Total Water Sales: 8,093 9,226 10,229 11,112 11,883
Unaccounted for Water 548 625 693 752 805
Total Water Consumption
(Total Supply into System): 8,641 9,851 10,922 11,864 12,688 Notes:

1. Overall projections shown above are lower than the projections shown in Table 6.6 of the 2020 UWMP due to recent lower water consumption rates.

2. Some projected potable landscape irrigation demands may be switched to the “non-potable” category when recycled water is available.

Figure 8: Projected Water Demand by Sector – With Development (in 2045) Single Family
6,397 AF
Multi-Family
127 AF
Commercial
2,500 AF
Industrial
340 AF
Institutional/
Governmental
662 AF
Landscape
(Potable)
1,624 AF
Landscape
(Non-Potable)
231 AF
Loss
805 AF
1 2
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Section 5: Water Supply vs. Demand Analysis

5.1 CITY SUPPLY RELIABILITY
The City's groundwater is not subject to short-term water shortages resulting from temporary dry weather conditions. Further, as part of the Beaumont Basin adjudication, the City has the option of storing up to 80,000 acre-feet (AF) of water in the Beaumont Basin. At the end of calendar year 2024, the City of Banning had approximately 49,225 AF of groundwater available in the Beaumont Basin Storage Account(Table 3), which is utilized as a buffer to make up for dry weather conditions and will be used in future years to meet demands that exceed local safe yields. 243
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5.2 DROUGHT RISK ASSESSMENT
The drought risk assessment is an assessment of the reliability of the City’s water supplies by comparing projected future water demands with expected available water supplies under three (3) different hydrologic conditions: normal year; a single dry year; and multiple dry years. Future supply and demand conditions can be determined from population forecasts, capacity of water supply facilities (wells), and recent water use trends.

Basis for Projected Demands
To project future demands, it will be assumed that total demand will change annually based on changes in population multiplied by the individual demand per-person (also known as the “percapita” consumption rate, see Section 4.1). The per-capita rates used in the future projections will be based on actual water use data from the recent past. In particular, the City’s averages for years 2016-2022 will be used as the basis to project demands through the year 2045. To project demands and supplies, the following is assumed:
• Starting consumption rate of 224 gallons per capita per day (GPCD). This is based on the average consumption of the City from 2016-2022, which is higher than if years 2023 and 2024 were to be included, causing a more conservative approach.. • Decreasing consumption rate from 2023 onward with a passive savings of 1.0% annually (i.e. 222 GPCD in 2023).

Although a constant consumption rate provides a more conservative approach, the decreasing consumption rate scenario provides a more realistic picture for planning purposes since it considers gradual improvements in water-use efficiency. In the past 20 years for instance, the City has seen a 6% annual decrease in water use. For drought-time demands, it is expected that there will be a small degree of increase due to the lack of rainfall on landscapes. To project demands during single and multiple (5) year drought periods, the following increase factors were assumed:
• Dry Year: 5%
• Multiple Dry Years: 5%, 8%, and 2%
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Although the UWMP did not assume increases in demand during dry years, the increase factors listed above are reasonable for the purposes of demand and supply projections since the City has seen increases in demands prior to the 2014 Emergency Declaration and 2015 Executive Order.

Basis for Projected Supplies
To project future supplies, the City can expect groundwater supplies to be based on the combined capacity of its groundwater wells, with a maximum safe yield for each subbasin. The City’s groundwater basins have a combined safe yield capacity of roughly 9,200 AFY. Further, as part of the Beaumont Basin adjudication, the City has the option of storing up to 80,000 AF of water in the Beaumont Basin.

5.3 ENSURING ADEQUATE SUPPLY
The City has available groundwater supplies based on the safe yield of the subbasins and the City’s storage account. The City’s subbasin safe yield and storage account volumes are not expected to be affected during droughts lasting up to five (5) years. Droughts will be addressed by following the criteria of the City's Water Shortage Contingency Plan (WSCP) along with implementation of the regional contingency plans. These programs are discussed in the UWMP.

As indicated by the tables on the following pages, with the Development’s projected water demand the City does not expect to have a water supply shortage during Normal Water Years, Single Dry Year, or Multiple Dry Years over the next 20 years.

The following tables were originally based off the 2020 UWMP, which at the time utilized data up to 2020. Since then, three (3) years of data has been produced and in order to better determine any possible supply shortfalls the most up to date data was used and the most conservative approach was taken. Some key updates include:
• Population Projections updated based off 2022 value of 31,253 from the City’s 2022 Validated Water Audit.
• Imported Water purchased in 2025 was 750 AF, and is projected to increase to 1,250 AF in 2026, 1,500 AF in 2030, 2,000 AF in 2035, and 2,500 AF in 2045 (Table 6). 245
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• It is anticipated that Recycled Water will begin entering the City’s distribution system beginning in 2035, as shown in Table 7. This additional supply will most likely supplement the Landscape Irrigation (Potable and Non-Potable) sector with 1,245 AF in 2035 and will increase to 2,307 AF by 2040, where it will remain until further developments are made. i. Based off the Butterfield Specific Plan (“Atwell” Project), Recycled Water may be used at the Development. However, a quantified value was not given and not enough information is available at this time to determine an amount. Therefore, this WSV will conservatively exclude Recycled Water use that will specifically supplement the Development’s Projected Water Demand.
ii. The 2018 IMP projected that the Atwell Project would use approximately 864 AFY of Recycled Water.
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Table 11
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Normal Water Year (AF)
Water Sources 2025 2030 2035 2040 2045
Population
Water Service Area Population 35,486 42,541 49,596 56,651 63,706 Consumption Rate (GPCD)
Including 1% Annual Passive Savings 217 207 197 187 178 Supply
Groundwater Pumped (Total) 7,641 7,725 7,766 7,736 7,697 Pumped from Beaumont Basin Storage
Account2 999 2,126 3,156 4,128 4,991
Total Anticipated Use of Supplies
(Estimated Production) 8,641 9,851 10,922 11,864 12,688 Total Available Supply3 56,840 57,549 55,047 49,063 39,394 Demand
Total Estimated Demand1 8,641 9,851 10,922 11,864 12,688 Compare to Avg. Demand for
Previous 9 Yrs. (7,743 AF) 112% 127% 141% 153% 164%
Supply/Demand Comparison
Supply-Demand (Difference) 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 48,199 47,698 44,125 37,199 26,706 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = Consumption Rate x Population
a. Average consumption rate of 2016-2022 = 224 gallons per capita per day. b. Consumption rate in 2016: 204 gpcd.
c. Consumption rate in 2024: 222 gpcd.
d. Approximate “passive” savings over past 20 years: 6 gpcd per year. e. Projected “passive” savings: 1 gpcd per year = 178 gpcd by 2045.

2. The Beaumont Basin Storage Account at end of 2023 contained approximately 47,650 AF of groundwater.

3. Total Available Supply = [Safe Yield for each Basin (Beaumont Basin’s reasonably available volume for that year; Cabazon Basin’s maximum reasonably available volume, which takes place in 2045) + Beaumont Basin Storage Account]. a. Imported water purchased from SGPWA is recharged into the Beaumont Basin, and will be credited to the City in their storage account, allowing for the Reasonably Available Volume to increase. The projections for Imported water purchased is based on the City’s recent purchases from SGPWA:
i. Low of 1,000 AF in 2025
ii. High of 2,500 AF in 2045
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Table 12
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Single Dry Year (AF)
Water Sources 2025 2030 2035 2040 2045
Population
Water Service Area Population 35,486 42,541 49,596 56,651 63,706 Consumption Rate (GPCD)
Including 1% Annual Passive Savings 217 207 197 187 178 Supply
Groundwater Pumped (Total) 7,641 7,725 7,766 7,736 7,697 Pumped from Beaumont Basin Storage
Account3 1,431 2,619 3,702 4,721 5,625
Total Anticipated Use of Supplies
(Estimated Production) 9,073 10,344 11,468 12,457 13,322 Total Available Supply4 56,077 56,022 50,752 41,945 29,568 Normal Year Supply 8,641 9,851 10,922 11,864 12,688
% of Normal Year 105% 105% 105% 105% 105%
Demand
Total Dry Demand1 9,073 10,344 11,468 12,457 13,322
Normal Year Demand 8,641 9,851 10,922 11,864 12,688
% of Normal Year 105% 105% 105% 105% 105%
Supply/Demand Comparison
Supply-Demand (Difference)5 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 47,004 45,678 39,284 29,488 16,246 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Single Dry Year Increase of 105%.

2. Imported water purchased from SGPWA and recharged into the Beaumont Basin during a Single Dry Year will be 236 AF.

3. A net-zero Supply-Demand (Difference) reveals that an additional amount of groundwater will be taken out of the Beaumont Basin Storage Account to meet the Total Dry Demand, on top of the Normal Water Year amount. A positive difference will be added to the Available Leftover Supply Capacity (Total Available Supply - Total Dry Demand + Difference) of subsequent years, as a surplus of water that was not pumped due to a low Total Dry Demand. For all cases there is more than enough in storage, as shown by the Available Leftover Supply Capacity.

4. All other items derived in similitude to Table 11.
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Table 13
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Multiple Dry Years (2023-2027) (AF)
Water Sources 2023 2024 2025 2026 2027
Population
Water Service Area Population 32,664 34,075 35,486 36,897 38,308 Consumption Rate (GPCD)
Including 1% Annual Passive Savings
222 220 217 215 213
Supply
Groundwater Pumped (Total) 7,641 7,641 7,641 7,641 7,641 Pumped from Beaumont Basin Storage
Account3 999 1,410 1,172 1,431 1,684
Total Anticipated Use of Supplies
(Estimated Production) 8,641 9,052 8,814 9,072 9,325
Total Available Supply4 56,840 57,494 56,320 55,383 54,897 Normal Year Supply 8,641 8,641 8,641 9,851 9,851
% of Normal Year 100% 105% 102% 92% 95%
Demand
Total Dry Demand1 8,521 9,052 8,814 9,072 9,325
Normal Year Demand 8,115 8,381 8,641 8,895 9,142
% of Normal Year 105% 108% 102% 102% 102%
Supply/Demand Comparison
Supply-Demand (Difference)5 120 0 0 0 0
Supply/Demand (%) 101% 100% 100% 100% 100%
Available Leftover Supply Capacity 48,319 48,562 47,506 46,311 45,572 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Multiple Dry Year Increases of 105%, 108%, and 102%.

2. Imported water purchased from SGPWA and recharged into the Beaumont Basin during Multiple Dry Years will be as follows:
a. Dry Year 1: 1,653 AF
b. Dry Year 2: 236 AF
c. Dry Year 3: 236 AF
d. Dry Year 4: 945 AF
e. Dry Year 5: 1,653 AF

4. All other items derived in similitude to Table 11.
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Table 14
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Multiple Dry Years (2028-2032) (AF)
Water Sources 2028 2029 2030 2031 2032
Population
Water Service Area Population 39,719 41,130 42,541 43,952 45,363 Consumption Rate (GPCD)
Including 1% Annual Passive Savings
211 209 207 205 203
Supply
Groundwater Pumped (Total) 7,641 7,641 7,725 7,725 7,725 Pumped from Beaumont Basin Storage
Account3 2,212 2,749 2,323 2,553 2,777
Total Anticipated Use of Supplies
(Estimated Production) 9,854 10,390 10,048 10,277 10,501 Total Available Supply4 57,549 56,990 54,477 52,390 50,782 Normal Year Supply 9,851 9,851 10,922 10,922 10,922
% of Normal Year 100% 105% 92% 94% 96%
Demand
Total Dry Demand1 9,854 10,390 10,048 10,277 10,501
Normal Year Demand 9,384 9,620 9,851 10,076 10,295
% of Normal Year 105% 108% 102% 102% 102%
Supply/Demand Comparison
Supply-Demand (Difference)5 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 47,695 46,599 44,429 42,112 40,280 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Multiple Dry Year Increases of 105%, 108%, and 102%.

4. All other items derived in similitude to Table 11.
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Table 15
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Multiple Dry Years (2033-2037) (AF)
Water Sources 2033 2034 2035 2036 2037
Population
Water Service Area Population 46,774 48,185 49,596 51,007 52,418 Consumption Rate (GPCD)
Including 1% Annual Passive Savings 201 199 197 195 193 Supply
Groundwater Pumped (Total) 7,725 7,725 7,766 7,766 7,766 Pumped from Beaumont Basin Storage
Account3 3,310 3,851 3,375 3,577 3,774
Total Anticipated Use of Supplies
(Estimated Production) 11,035 11,576 11,140 11,343 11,540 Total Available Supply4 55,047 53,390 49,775 46,636 44,004 Normal Year Supply 10,922 10,922 11,864 11,864 11,864
% of Normal Year 101% 106% 94% 96% 97%
Demand
Total Dry Demand1 11,035 11,576 11,140 11,343 11,540
Normal Year Demand 10,510 10,718 10,922 11,120 11,314
% of Normal Year 105% 108% 102% 102% 102%
Supply/Demand Comparison
Supply-Demand (Difference)5 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 44,012 41,814 38,634 35,293 32,464 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Multiple Dry Year Increases of 105%, 108%, and 102%.

4. All other items derived in similitude to Table 11.
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Table 16
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Multiple Dry Years (2038-2042) (AF)
Water Sources 2038 2039 2040 2041 2042
Population
Water Service Area Population 53,829 55,240 56,651 58,062 59,473 Consumption Rate (GPCD)
Including 1% Annual Passive Savings 191 189 187 185 183 Supply
Groundwater Pumped (Total) 7,766 7,766 7,736 7,736 7,736 Pumped from Beaumont Basin Storage
Account3 4,311 4,855 4,365 4,542 4,715
Total Anticipated Use of Supplies
(Estimated Production) 12,077 12,620 12,101 12,279 12,451 Total Available Supply4 49,063 46,405 41,787 37,658 34,060 Normal Year Supply 11,864 11,864 12,688 12,688 12,688
% of Normal Year 102% 106% 95% 97% 98%
Demand
Total Dry Demand1 12,077 12,620 12,101 12,279 12,451
Normal Year Demand 11,502 11,685 11,864 12,038 12,207
% of Normal Year 105% 108% 102% 102% 102%
Supply/Demand Comparison
Supply-Demand (Difference)5 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 36,986 33,785 29,685 25,379 21,609 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Multiple Dry Year Increases of 105%, 108%, and 102%.

4. All other items derived in similitude to Table 11.
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Table 17
City of Banning Water Supply Availability & Demand Projections - Including Atwell Project Multiple Dry Years (2043-2047) (AF)
Water Sources 2043 2044 2045 2046 2047
Population
Water Service Area Population 60,884 62,295 63,706 65,117 66,528 Consumption Rate (GPCD)
Including 1% Annual Passive Savings 181 180 178 176 174 Supply
Groundwater Pumped (Total) 7,736 7,736 7,697 7,697 7,697 Pumped from Beaumont Basin Storage
Account3 5,254 5,798 5,245 5,399 5,549
Total Anticipated Use of Supplies
(Estimated Production) 12,990 13,535 12,941 13,096 13,246 Total Available Supply4 39,394 35,793 30,231 25,222 20,768 Normal Year Supply 12,688 12,688 12,688 12,688 12,688
% of Normal Year 102% 107% 102% 103% 104%
Demand
Total Dry Demand1 12,990 13,535 12,941 13,096 13,246
Normal Year Demand 12,372 12,532 12,688 12,839 12,986
% of Normal Year 105% 108% 102% 102% 102%
Supply/Demand Comparison
Supply-Demand (Difference)5 0 0 0 0 0
Supply/Demand (%) 100% 100% 100% 100% 100%
Available Leftover Supply Capacity 26,403 22,258 17,289 12,126 7,522 General Note: Projections shown above, including per capita consumption rates (GPCD), are lower than the projections shown in Tables 7.1 to 7.7 of the 2020 UWMP due to recent lower water consumption rates (since the 2020 UWMP).

Footnotes (see number references in table above):

1. Total Demand = [Consumption Rate x Population] x Multiple Dry Year Increases of 105%, 108%, and 102%.

4. All other items derived in similitude to Table 11.
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Section 6: Water-Use Efficiency Strategies
The City of Banning is committed to implementing water conservation programs and encourages its customers to conserve water whenever possible. This year (2024) the City became a member of the California Water Efficiency Partnership (CalWEP). The City continues to implement the seven (7) categories of conservation measures as described in the CalWEP Memorandum of Understanding (MOU). The City of Banning is committed to implementing water conservation programs and encourages its customers to conserve water whenever possible.

6.1 DEVELOPMENT CONSERVATION MEASURES
As outlined in UWMP Chapter 9 - Conservation Measures, the following demand measures are applicable to the Development:
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• City Ordinance No. 1039 was adopted by the City Council in 1991, prohibiting the waste of water. Ordinance No. 1039 describes actions that are considered a waste of water and the subsequent penalties if a violation were to occur.
• In 1998, this Ordinance was incorporated into City Ordinance No. 1231. In 2006, Assembly Bill No. 1881 was passed, requiring local agencies, beginning January 1, 2010, to adopt a model water efficiency landscape ordinance that is at least as effective as the State's model water efficiency landscape ordinance. The City Council adopted Resolution No. 2010-06 on January 26, 2010 to meet this requirement.
• The City adopted Ordinance No. 1489 pertaining to drought water conservation. This ordinance sets forth mandatory prohibitions and additional restrictions on water use during drought conditions to comply with the executive orders issued by Governor Brown pertaining to the declared drought emergency and with the emergency water conservation regulations promulgated by the State Water Resources Control Board. • All of the City's water service connections, for all customer sectors, are metered.

Additionally, the City has installed dedicated landscape irrigation meters for Sun Lakes Country Club, Caltrans, the City park system, and City school district facilities. The City will continue to meter all new water service connections.
• The City has a three (3)-tiered increasing rate structure that applies to all customers. The City is currently investigating the potential of a fixed or drive-by Automatic Meter Read (AMR) system that allows the City to monitor each individual customer account for water conservation.
• The City has initiated several water conservation programs to educate its water service customers in regard to various approaches to conserve water. At City Hall, water conservation pamphlets are displayed year-round as well as at public citywide events. 256

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• As part of the City's normal operations, the City repairs major leaks to the distribution system as soon as possible after they are discovered. Further, under the City's capital improvement plan, old leaking pipes are continually being replaced.

The City's average consumption rate for the past 9 years is calculated to be 220 gallons per capita per day (GPCD), which demonstrates that the City has met its interim urban water use target of 284 GPCD as well as the 2020 target of 252 GPCD. The City can maintain its consumption rates and future targets by continuing to focus on water conservation. 257
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Section 7: Water Supply Verification
The Atwell Specific Plan Phases 3B and 4A-1 (Development) has a total project area of 228.76 acres and 985 Dwelling Units, and will consist of residential lots, open space and lettered (unassigned) lots, private common driveways, and public streets, all within the Atwell Project (formerly “Butterfield Specific Plan”). The Development is located in the westerly portion of the City, as shown in Figure 1. According to Section 2, the projected water demand coming from the proposed Phases 3B and 4A-1 Development is approximately 551 AFY. This demand was accounted for in the 2020 UWMP and 2018 IMP Population Projections.

This WSV reviewed and analyzed supply and demand data for the years subsequent to the 2020 UWMP and prior to this WSV (2021 through 2024). Based on the supply vs demand Tables 11 through 17 in Section 5, the City can expect to meet future demands for all climate conditions through 2045, including the proposed Development.
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7.1 CONCLUSION AND RECOMMENDATIONS
The overall Atwell Project remaining phasing plan proposes four (4) future development phases with potential sub-phases. It is expected that individual WSV Reports will be provided for each subsequent phase of the project. Build-out conditions in the City will likely occur over an estimated total duration of 30-years. Market conditions will dictate this pace and it is likely that build-out will occur at a slower pace.

Notwithstanding, the overall Atwell Project’s expected water demand is within the 2020 UWMP’s total projected water supply availability and demand during normal, single dry, and multiple dry water years for the next 20-25 years. Therefore, there will be adequate supplies to meet the projected water demand associated with the overall Atwell Project, in addition to the other existing and projected water demands in the City.

This Phases 3B and 4A-1 WSV shall be adopted by City Council via resolution. City staff shall prepare a staff report detailing the efforts made in preparing this WSV. The City will also prepare a “Will Serve Letter”, which will declare that the City will provide a water service connection(s) to the proposed Project. The Will Serve Letter will be issued upon payment of all fees by the Developer.

Should the construction of the proposed Project be delayed, it is recommended that this WSV be reviewed every five (5) years prior to construction, to verify that the City will have capacity to serve the Project.
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Appendix A: Council Resolution Adopting Water Supply Verification Water Supply Verification – Atwell Specific Plan Phases 3B and 4A-1 261
Appendix B: Excerpts from 2020 Urban Water Management Plan Water Supply Verification – Atwell Specific Plan Phases 3B and 4A-1 262
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2.3.3 Recent Developments
The City has experienced very substantial
developments in recent years. Recent or
planned developments are shown on Figure

2.5. Some of these developments are listed
in Table 2.2:

Table 2.2
Recent Developments in City of Banning
(Since 2015 UWMP)
No. Development
1 Banning Distribution Center*
2 Mountain Ave. Baptist School
(Expansion of existing private school
and installation of five modular
building)
3 Inland Behavioral Health Services
4 ESTES Trucking Terminal*
5 West Coast Electric*
6 Cruz Industrial Truck Inc.
7 O'Reilly's Auto Parts*
8 Taco Bell
Tot. Eight (8) Developments
*Pending or Under Construction

2.3.4 Planned Developments
Currently, there are two (2) significant
developments planned within the City's
water service area, as described below. Final
subdivision maps prepared for the two
projects will comply with the provisions of
CA Government Code Section 66473.7.

Atwell (Formerly “Butterfield”)
The Atwell Specific Plan is a master planned
community project that encompasses 1,543
acres and includes approximately 4,900
residential dwelling units, two elementary
schools, two commercial sites, and
community parks and trails. The project will
be constructed in five phases over an
estimated period of 30 years. Figure 2.1
shows some of the developments currently
being constructed.

Figure 2.1: Atwell Development
A project-specific water supply assessment
(WSA), titled Water Supply Assessment for
Atwell Specific Plan, Issued June 2011 with
the Draft EIR, Modified December 2011 by
Section 4.1 of the Final EIR, was prepared to
determine the adequacy of existing and
future water supplies to serve the project.
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The Environmental Impact Report (EIR) for
Atwell, which includes an analysis of water
supply supported by the project specific
WSA cited above, has been approved by City
Council.

Tri Pointe Homes (formerly known as Pardee
Homes), the home builder responsible for
the new development, has stated that
escrow was closed on 83 homes in
2020. They are projecting 392 escrow
closings by year end of 2021, bringing the
total number of closed homes to 475. They
are projecting 316 escrow closings in 2022,
bringing the total number of homes
occupied by new buyers to 791.

Rancho San Gorgonio
The Rancho San Gorgonio Specific Plan
(Rancho San Gorgonio) is a master planned
community project that encompasses
approximately 831 acres and includes up to
3,385 residential dwelling units, almost 49
acres of neighborhood and community
parks, over 160 acres of paseos and open
space, and approximately 81 acres of rightof-way and utility easements. The project is anticipated to be constructed in six phases
over a period of 18 years. This period is likely
to be extended due to varying economic
factors.

A project-specific WSA was prepared for
Rancho San Gorgonio, titled Water Supply
Assessment Rancho San Gorgonio Specific
Plan, by Madole & Associates, Inc. and
Encompass Associates, Inc., in 2015.

The Draft EIR for Rancho San Gorgonio
analyzes water supply supported by the
project-specific WSA cited above. Both the
EIR and WSA have been completed and
approved by the City Council.

2.4 CLIMATE
The City is located within the San Gorgonio
Pass, which is a transitional zone where
coastal climates transition to desert,
resulting in significantly differing landscape
and geology. The climate can best be
characterized by hot, dry summers and
short, mild winters. The region receives an
average annual rainfall of approximately

19.7 inches, most of which takes place
between December and March.

Evapotranspiration (ETo) in the area ranges
from 7.88 inches in July to 1.94 inches in
December.

As the State of California and the Riverside
County region has undergone a several-year
drought, rainfall has been much lower in the
City. Southern California is also expected to
be in a moderate La Nina year for 2021.

Recent ETo and rainfall for the City is listed
in Table 2.3:
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Table 3.2
Imported Water Supply 2015 to 2020
(Purchases of SWP water from SGPWA)
Year Purchases
(AF)
2015 686
2016 1,477
2017 1,350
2018 500
2019 250
2020 250
Average: 752
2010-2015 Avg.
(2015 UWMP) 847
Although the City purchases imported
water, this water is used solely for recharge
of the Beaumont Basin. None of the water
purchased is supplied directly to the City’s
customers. The amount of imported water
available to the City for groundwater
recharge is dependent on SGPWA’s
available supply from the SWP. According to
the water supply contract between DWR
and the SGPWA, SGPWA’s maximum annual
entitlement from the SWP is 17,300 AFY.

Under shortage conditions, SGPWA could
limit volumes by implementing SGPWA’s
Water Shortage Contingency Plan (WSCP).

The SGPWA also has a financial plan in place
to obtain additional supplies necessary to
meet projected demands within its service
area. Sources include the dry-year water
purchase program, exchanges with the
Crestline-Lake Arrowhead Water Agency
(CLAWA), and other supplemental water as
available. The SGPWA is expected to
purchase additional supplies by 2020 to
meet demands.

3.4 GROUNDWATER SOURCES
The City is within the boundaries of the
Coachella Valley Hydrologic Unit, which
encompasses several groundwater basins,
including the Coachella Valley Groundwater
Basin (Basin), within which the City is
located. The Basin is underlain by several
large subbasins, the boundaries of which
are mostly defined by fault lines that restrict
the lateral flow of water. The Basin extends
from Banning easterly to the Salton Sea.

The City is underlain by the San Gorgonio
Pass Subbasin (SGP Subbasin) portion of the
Basin per Figure 3.7 on the following page.

The SGP Subbasin is divided into water
storage units (also colloquially termed
"basins"), as depicted in Figure 3.8. The City
extracts groundwater from the West
Banning Storage Unit (formerly known as
the Banning Storage Unit), the Banning
Bench Storage Unit, the Cabazon Storage
Unit (formerly known as the East Banning
Storage Unit), the Beaumont Storage Unit,
and the Banning Water Canyon Storage
Unit, as shown in DWR Submittal Table 6-1
in Appendix E. The storage unit boundaries
have been defined in a 2006 USGS report
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Figure 3.7: San Gorgonio Pass Groundwater Basin
City Boundaries
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on Groundwater Hydrology, in the San
Gorgonio Pass Area (Scientific Investigations
Report 2006-5026), prepared by USGS in
cooperation with the SGPWA, dated 2006.

Since this report, DWR, SGPWA, and the
City have refined the details of these
storage units.

Groundwater recharge in the area results
from precipitation infiltrating into the
ground within the surface water
catchments and particularly in the canyons
north of the City. An additional source of
recharge is subsurface inflow (also referred
to as underflow) from storage unit to
storage unit, infiltration of Whitewater
River diversions in the Banning Water
Canyon, and from percolation of treated
wastewater into the Cabazon Storage Unit.

The Banning Water Canyon area receives
water from the percolation of canyon flows
through the gravelly soils of the canyon
bottom. The San Gorgonio River running
southerly through the Banning Water
Canyon provides intake areas for
distributing water to spreading ditches that
interconnect with spreading ponds located
approximately one mile north of the
Banning Bench to enhance percolation.

A hydrogeological study was conducted by
Geoscience to determine the maximum
perennial yield of the groundwater storage
units in the vicinity and to determine the
anticipated future available water supply
from the Beaumont Storage Unit, West
Banning Storage Unit, Banning Bench
Storage Unit, Cabazon Storage Unit, and
Banning Water Canyon Storage Unit. The
findings of the study are set forth in the
report by Geoscience, titled Maximum
Perennial Yield Estimates for the Banning
and Cabazon Storage Units, and Available
Water Supply from the Beaumont Basin,
dated March 29, 2011 (herein referred to as
the Geoscience Report). The individual
basin safe yields and projected groundwater
production (from each basin) are included
in Table 3.4 of this Section and in Appendix
E as DWR Submittal Table 6-9 (Projected
Water Supplies).

3.4.1 Beaumont Basin (Storage Unit)
The Beaumont Storage Unit (also referred
to as the Beaumont Basin) is located
primarily in the City of Beaumont, with
some portions located within Banning,
Calimesa, and Cherry Valley, as depicted in
Figure 3.8. The Beaumont Storage Unit
covers approximately 12,480 acres (19.5
square miles). The City operates four (4)
groundwater production wells, namely
Wells C2, C3, C4, and M3, within the
Beaumont Basin. The City also maintains an
additional, non-operating well in the
Beaumont Basin (Well M9). The 4 active
wells have a combined nominal capacity of
4,650 gallons per minute (gpm). The City
also co-owns with BCVWD three additional
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Figure 3.8: Groundwater Basins in the City (Subbasins of San Gorgonio Pass Basin) City Boundaries
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2020 URBAN WATER MANAGEMENT PLAN
The Beaumont
Basin is the only
adjudicated
storage unit within
the San Gorgonio
Pass Basin
groundwater production wells (Wells 24,
25, and 26), with a combined nominal
capacity of 6,800 gpm, of which half is
allotted to the City. Therefore, the City's
total nominal pumping capacity in the
Beaumont Basin is 8,050 gpm. The
forementioned Wells in the Beaumont
Basin are shown in Figure 3.9.

The Beaumont Basin is an adjudicated basin
pursuant to the Stipulation for Entry of
Judgment Adjudicating Groundwater Rights
in the Beaumont Basin (the Judgment), a
copy of which is
included in Appendix L
of this Plan. Pursuant
to the Judgment, the
Court appointed a fivemember Watermaster
Committee, consisting
of members from each
of the five member agencies, which include
the Cities of Banning and Beaumont,
Beaumont-Cherry Valley Water District,
South Mesa Water Company, and Yucaipa
Valley Water District.

The safe yield of the Beaumont Basin was
initially established at 8,650 AF/yr, to be
distributed among the appropriators. The
safe yield is to be reevaluated at least once
every ten years. Based on the 2013
Reevaluation of the Beaumont Basin Safe
Yield, dated April 3, 2015, the safe yield was
determined to be 6,700 AF/yr.

Based on a description of the Judgment
included in the Beaumont Basin
Watermaster 2019 Annual Report Draft,
dated December 2020 (referred to herein as
the 2019 Watermaster Report), a controlled
overdraft (also referred to as temporary
surplus) was created to allow the
appropriators to extract from the
Beaumont Basin, during the first ten years
after adoption of the Judgment, a maximum
of 16,000 AF/yr. The temporary surplus
was divided among the appropriators, with
City of Banning receiving 31.43 percent (or
5,029 AF/yr).

After the first 10 years of operation ended
in 2014, appropriators no longer receive the
temporary surplus and are permitted to
extract only the amount each has in storage
or credited to them. At the end of calendar
year 2019, the City had approximately
51,917.9 AF in its storage account, based on
the 2019 Watermaster Report. City of
Banning is permitted to store up to 80,000
AF in the Beaumont Basin.

On an annual basis, the Watermaster
determines the amount of groundwater to
which each producer is entitled from the
Beaumont Basin without incurring a
replenishment obligation. City of Banning is
entitled to 31.43% of the unused production
in the Beaumont Basin. Quantities to which
the City is entitled but does not pump can
be credited to the City's storage account.
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Figure 3.9: Well Locations in the Beaumont Basin
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Figure 3.10: Spreading Grounds at WWTP

3.4.2 West Banning Storage
The West Banning Storage Unit lies south of
the Banning Bench Storage Unit and east of
the Beaumont Storage Unit, as depicted on
Figure 3.8. The total surface area of the
West Banning Storage Unit is approximately
2,489 acres (3.9 square miles). The area is
underlain by alluvial sediments, with
bedrock occurring to the north in the San
Bernardino Mountains. The City currently
operates four (4) groundwater production
wells within the West Banning Storage Unit,
namely C5, M7, M10, and M11. The City lost
Well M-12 within the basin, due to a cavein, but is currently looking into redrilling.

3.4.3 Cabazon Storage Unit
The Cabazon Storage Unit is located near
the eastern boundary of the City, southeast
of the West Banning Storage Unit and the
Banning Bench Storage Unit, as depicted on
Figure 3.8. The Cabazon Storage Unit
encompasses a surface area of
approximately 17,215 acres (26.9 square
miles). The City currently operates one (1)
groundwater production well in the
Cabazon Storage Unit, namely Well C6, with
a nominal pumping capacity of 900 gpm.

Additional groundwater can be produced
from the Cabazon Storage Unit. A water
balance prepared for the Cabazon Storage
Unit, as described in the Geoscience Report,
determined that a positive change in
storage has occurred as a result of inflow
and outflow factors, including effluent from
the Wastewater Treatment Plant (WWTP)
percolated from the adjacent spreading
grounds (Figure 3.10 above). Therefore,
future projections of available water from
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the Cabazon Storage Unit assume that all
inflow and outflow values remain the same,
with the exception of treated wastewater
applied to the basin.

For purposes of projecting Cabazon water
supplies into the future, inflow of recycled
water increases in time to account for the
increase of wastewater generated by an
increase in population over time, and this
recycled water will be percolated into the
Cabazon Storage Unit. Once the Phase I
expansion of the WWTP is completed,
approximately 1,680 AF/yr of recycled
water will be used for irrigation purposes
and will no longer be applied to the
Cabazon Storage Unit for direct percolation.

Well NP-1 is an offline non-potable well that
is near the City’s WWTP. It was drilled more
than 20 years ago, but was never equipped
to produce groundwater. There are plans to
equip it in the near future and use it prior to
the completion of the WWTP expansion.

Once the Title 22 improvements at the
WWTP are completed, Well NP-1 will serve
as a backup and will be used sparingly to
help the City meet peak irrigation demands.

3.4.4 Banning Bench Storage Unit
The Banning Bench Storage Unit is located
to the north of the West Banning Storage
Unit, as shown in Figure 3.8. The total
surface area of the Banning Bench Storage
Unit is approximately 3,573 acres (5.9
square miles). The City currently operates
three (3) groundwater production wells
within the Banning Bench Storage Unit,
namely Wells 1, 2, and 3, with a combined
nominal pumping capacity of 3,650 gpm.

3.4.5 Banning Water Canyon Storage Unit
The Banning Water Canyon Storage Unit is
located north of the Banning Bench Storage
Unit, as depicted in Figure 3.8. The total
surface area of the Banning Water Canyon
Storage Unit is approximately 1,058 acres
(1.7 square miles). The canyon bottom
comprises alluvium, and the canyon sides
are bedrock. The City currently operates
eight (8) groundwater production wells
within the Banning Water Canyon Storage
Unit, namely Wells 4, 5, 7, 8, 9, 10, 11, and
12, with a combined nominal pumping
capacity of 8,600 gpm.

Additional recharge occurs in the Banning
Water Canyon Storage Unit through the
diversion of Whitewater River drainage into
Banning Water Canyon. The diverted water
flows along steep mountain slopes for
approximately 14 miles in a mostly concrete
lined conveyance system known as the
Whitewater Flume. The Whitewater Flume
is described in more detail in Section 3.6.

3.5 GROUNDWATER PRODUCTION
All wells within the City’s service area are
equipped with a flowmeter to measure
water production. Water production is
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recorded monthly by City water staff and
reported annually to DWR. Over the past
five years of operation, groundwater
extraction has averaged 7,513 AFY. Table

3.3 displays the City's groundwater supplies
for years 2015 to 2020.

Table 3.3
Groundwater-Production
Year Production (AF)
2015 6,723
2016 7,035
2017 7,576
2018 7,924
2019 7,226
2020 8,596
Average 7,513
2010-2015 Avg.
(2015 UWMP) 8,246
Due to the City's increase in population
since 2015, the rebounding effects of the
mandatory declaration period, and an
abnormally dry 2020, groundwater
pumping has increased.

3.5.1 Projected Groundwater Supplies
Currently, the City does not utilize the
entire capacity of all of its storage units
(subbasins). The maximum annual amount
pumped by the City in the past 10 years is
just under 9,000 AF. Due to the projected
developments, the City expects pumping to
increase by 25% within 10 years and over
50% by the end of this UWMP planning
period (2045). The pumping capacity of the
City’s twenty-three (23) wells, including the
City’s co-owned wells with BCVWD, is just
over 14,000 AFY. However, this mechanical
pumping capacity is actually limited to the
safe yields and/or the adjudicated rights of
the subbasins. As noted, in some of the
subbasins, the City does not maximize
groundwater resources (i.e. Cabazon Unit).

Therefore, the City will be establishing new
groundwater resources to meet projected
demands. In the interim, the City will need
to supplement their current allowable
pumping capacity by dipping into their
Beaumont Basin storage account while the
City locates and drills new wells. This will
create new resources or establish
redundancy in existing resources in order to
meet water demands under built-out
conditions. Table 3.4 below shows the City’s
projected water supplies and available
volumes. These values are also reflected in
DWR Submittal Table 6.9 in Appendix E.
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Table 3.4
Projected Water Supply Availability (AF)
Year 2025 2030 2035 2040 2045
Basin Projected
(Available)
Projected
(Available)
Projected
(Available)
Projected
(Available)
Projected
(Available)
Beaumont Basin
1,491 1,267 1,077 916 778
(6,700) (6,700) (6,700) (6,700) (6,700)
West Banning Basin
1,430 1,430 1,430 1,430 1,430
(1,430) (1,430) (1,430) (1,430) (1,430)
Cabazon Basin
853 960 1,054 1,136 1,208
--- --- --- --- ---
Banning Bench
1,055 1,187 1,304 1,330 1,330
(1,330) (1,330) (1,330) (1,330) (1,330)
Banning Water Canyon
3,679 3,730 3,730 3,730 3,730
(3,730) (3,730) (3,730) (3,730) (3,730)
Imported Recharge 250 500 1,000 1,750 2,500
WWTP Recharge
(Recycled Water) 1,067 1,107 2,491 2,491 2,491
Additional Supply from Storage 999 2,126 3,156 4,128 4,991 Total Available Supply 63,098 59,351 51,220 40,439 28,551 Total Net Storage 47,169 43,422 35,291 24,510 12,622
Note: See notes under Table 7.1 and notes under DWR Submittal Table 6.9 in Appendix E for a detailed explanation of the volumes above.
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To offset dependency on the groundwater
supplies listed above, the City intends to
begin using recycled water within the next
10 years, as described in Section 4.

The City will also continue to benefit
indirectly from regional conservation efforts
and also through SGPWA’s efforts to
augment its supplies and improve reservoir
storage capacities. Section 7 discusses
reliability issues and compares the City's
projected water supply availability to
projected demands for normal, dry, and
multiple dry years through 2045.

3.6 SURFACE WATER
The Whitewater Flume was built to provide
water and power to the City and Banning
Heights Mutual Water Company (BHWMC).

BHWMC utilizes approximately 1,000 AF/yr
of the Whitewater River diversions in the
Flume (Figures 3.11 and 3.12), and the
remainder of the diverted water flows into
the San Gorgonio River below the Banning
Heights Mutual Water Company (BHMWC)
extraction point. A portion of the natural
runoff and the Whitewater River diversions
are diverted into spreading ponds located
approximately one mile north of the
Banning Bench in order to increase
groundwater recharge.

Since 1913, surface water from the
Whitewater River has been diverted into
the Banning Water Canyon Storage Unit,
with an average of 1,500 AF/yr diverted into
Banning Water Canyon since 1961. The
water flowed within the Whitewater Flume
(mentioned above in Section 3.4.5 Banning
Water Canyon Storage Unit), and then
through two hydroelectric power plants.

Figure 3.11: Whitewater Flume System
Due to damage along sections of the
Whitewater Flume, surface flow is being
diverted into Burnt Canyon to the north,
and then back to the Whitewater Flume
upstream of Powerhouse No. 1, where it
continues downstream through
Powerhouse No. 2 to an above ground
reservoir operated by Banning Heights
Mutual Water Company (BHMWC). The
remaining water flows to the San Gorgonio
River, where it recharges the Banning
Water Canyon Storage Unit.

In June of 2010, Southern California Edison
(SCE), the City of Banning, BHMWC and the
SGPWA entered into an “Agreement for
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URBAN WATER MANAGEMENT PLAN 2020
Transfer of San Gorgonio Hydroelectric
Project No. 344 Water Conveyance Facilities”
which determined that SCE would restore
and repair the facilities and transfer
ownership to the City and BHMWC.

Figure 3.12: Whitewater Flume System
In average years the Whitewater Flume
provides direct water use to the Banning
Heights Mutual Water Company, and the
rest goes to recharging the groundwater
basins, which the City can then pump from
as groundwater. A lot of recharged water is
received during the Spring.

The Apple Fire of 2020 encompassed the
entire Whitewater Flume structure. As of
April 2021, the Whitewater Flume remains
damaged and unable to deliver water to
BHMWC and the City of Banning. SCE,
BHMWC, and the City are working together
to get the system back in operation as
quickly as possible. Southern California
Edison currently owns the Whitewater
Flume system.

The City of Banning plans to conserve
stormwater flows from tributary creeks
within its service area by allowing water to
percolate into the ground. A preliminary
evaluation by the City indicated that a
portion of stormwater flows from creeks in
the area could be conserved as "new" water
to meet future needs. The Atwell
Development (previously known as
Butterfield) includes design features that
are estimated to capture and recharge
approximately 1,370 AF/yr of stormwater
flows from Smith Creek. The Rancho San
Gorgonio Specific Plan includes design
features that are estimated to capture and
recharge approximately 199 AF/yr of
stormwater at full buildout.

3.7 ALTERNATE WATER SOURCES
This section provides an overview of
alternative water sources (non-potable
supplemental supplies) and their potential
uses. Alternative water sources include
recycled water or greywater. A more
detailed look into recycled stormwater is
found in Section 4.

3.7.1 Greywater
Greywater systems have been used in
California to provide a source of water
supply for subsurface irrigation and also as
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a means to reduce overall water use.

Greywater consists of water discharged
from sinks, bathtubs, dishwashers, and
washing machines. Greywater systems
consist of an underground tank and
pumping system. Greywater is currently
legal for subsurface irrigation in the State of
California; however, strict regulations and
high installation costs have impeded
installation of professional greywater
systems and have the unintended
consequence of undocumented and
noncompliant use of greywater. An
example of a Greywater System is shown
below in Figure 3.13.

Figure 3.13: Greywater System
The City does not currently have a formal
program in place to support greywater use.

However, the promotion of greywater
systems as a means to reduce the City's
overall water use is not recommended since
the use of greywater is currently limited to
subsurface irrigation and therefore the
overall service area-wide reduction in water
use (in AF) would be minimal at best.

Additionally, any water diverted to
greywater systems would no longer be
available to be treated into recycled water.

3.8 TRANSFERS OR EXCHANGES
The City’s rights to annual groundwater
extraction are shown on DWR Submittal
Table 6-9 of Appendix E. In light of pending
housing growth, this table indicates that
preservation of the City’s groundwater
supplies is imperative for the City. Thus, the
leasing of groundwater rights is not feasible
for the City. Other than the sale of water to
High Valleys Water District, and occasionally
to BHMWC, the City is not planning to enter
into any groundwater transfer or exchange
opportunities with other agencies.

The City has one 12-inch interconnection
with BCVWD that is capable of transferring
water to the City during emergencies. The
emergency connection is located at the
intersection of Sun Lakes Blvd. & Highland
Springs Ave. During the summer of 2020 the
City took water from BCVWD through this
interconnection because four (4) wells were
out of operation. Before this year, the
interconnect had not been used since 2008.

3.9 PLANNED SUPPLY PROJECTS
The City continually reviews practices that
will provide its customers with adequate
and reliable supplies. Trained staff
continues to ensure the water quality is
277
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Figure 4.3: City of Banning WWTP and Percolation Ponds
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Since the Sun
Lakes Golf Course
provides the City
with existing
recycled water
demand, other
potential users can
“tap in” to the
proposed recycled
water pipeline.

4.3.2 Potential Recycled Water Use
From an engineering standpoint, there are
no physical barriers or constraints which
would cause the construction of recycled
water facilities to be unfeasible. The City is
relatively flat within the vicinity of potential
recycled water customers. The City
currently serves one customer (Sun Lakes
Golf Course) with
non‐potable water
from Well M7 and
Well M12. Typical
annual demand for
the Sun Lakes Golf
Course is 850 AFY or

0.8 MGD. Since the
Sun Lakes Golf Course
is located on the
westerly end of the
City, once the City constructs recycled
water pipelines to reach the Sun Lakes Golf
Course, other potential customers would be
within proximity to receive recycled water.

Therefore, construction of recycled water
facilities would prove feasible if the funding
for recycled water improvements and
pipeline infrastructure was covered, at least
in-part, by developers, and an agreement
was in place for the use of recycled water.

The City would then be able to provide
recycled water to its customers.

The City’s previous 2006 Recycled Water
Master Plan identified potential customers
across the Interstate 10 Freeway. However,
the 2018 IMP indicated that these potential
customers were not feasible, due to the
difficulty with crossing the 10 Freeway and
the railroad tracks, and since there are
other potential customers south of the 10
Freeway. The potential recycled water
customers are listed in Table 4.5 below:

Table 4.5
Potential Recycled Water Users
Customer Recycled Water
Demand (AF)
Existing Customers
Sun Lakes Golf Course 850
Banning High School 175
Dysart Park 87
Lions Park 79
Projected Developments
Atwell Development 864
Rancho San Gorgonio
Development 217
Five Bridges Development 223
Neighborhood Park 35
Total 2,530
As noted by Table 4.5 above, the exception
to maintaining only recycled water users
below the 10 Freeway would be the Atwell
Development (previously known as
Butterfield), since this is a relatively large
development. In addition, it would be
within about a 1-mile distance from the Sun
Lakes Golf Course. Assuming the Sun Lakes
Golf Course is provided recycled water
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service prior to completion of the Atwell
Development, the pipeline can be extended
to feed the Atwell Development due to the
proximity of the pipeline. A recycled water
line to the Atwell development may be
constructed in the future, but the City does
not currently have plans to fund or
construct such a project, as reflected in the
2018 Integrated Master Plan.

4.3.3 Recycled Water Alternatives
For the Atwell Development, the City had
considered construction of a satellite
wastewater treatment facility, but has since
moved away from this idea. Instead, Atwell
will send all of its sewer discharge to the
City's WWTP. However, the City is exploring
the option of using excess recycled water
(whatever is not used for irrigation) to
recharge the West Banning Basin. This
would allow the City to make full use of its
upgraded treatment capacity.

4.4 ENCOURAGING AND OPTIMIZING

RECYCLED WATER USE
Currently, there are no methods in place to
encourage the use of recycled water, since
recycled water infrastructure has not yet
been constructed as of this UWMP. Once
the City has the capacity to provide recycle
water, then they would consider incentives
to encourage and optimize recycled water
use. This may include:
 Outreach to general public
 Outreach to potential recycled
water customers
 Monitoring, enforcement and
training for recycled water use
 Temporary financial incentives, such
as free service for the first month
The exact methods will be developed as the
City’s recycled water system expands. If the
City applies for outside funding to construct
recycled water infrastructure, the City will
need to also secure funding specifically for
the purpose of actively promoting recycled
water use.
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Figure 4.4: City of Banning Potential Recycled Water Customers 281
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responsible manner. Water use priority
does not differ based on income level, but is
classified by the type of use.

The residential sector projections include
projected low-income housing in
accordance with the City’s Housing Element
(http://banning.ca.us/428/Housing-Element).

Page 14 ends

projecting a total of 1,163 additional lowincome housing units to meet the City’s Housing Needs Assessment. With an
estimated 2.5 persons per unit (or about 0.6
AFY per unit), the City will need an
additional 717 AF of water per year to
supply water to these projected lower
income housing units. These low-income
water demands are included in future
projections for single family and multifamily homes listed in Table 6.6 below.

6.8.3 Projected Water Use by Sector
For planning purposes, the City's projected
water use for 2025-2045 is broken down by
sector in Table 6.6. The estimates per
sector are based on the ratios of the sectors
shown in Table 6.3 and Figure 6.4. Figure

6.9 on the following page also shows the
Projected Water Demand by Sector (in 2045).

Table 6.6
Projected Water Demand by Sector
Sector 2025 2030 2035 2040 2045
Water Service Area Population 38,180 45,235 52,290 59,345 66,400 Consumption Rate (GPCD)
Including 1.0% Annual Passive Savings 222 211 201 191 181 Demands
Single Family Residential 4,505 5,071 5,569 6,004 6,382 Multi-Family Residential 92 103 114 123 130
Commercial 2,263 2,548 2,798 3,016 3,206
Industrial 195 220 241 260 276
Institutional/Governmental 26 29 32 35 37
Landscape Irrigation (Potable)* 635 715 785 846 900
Landscape Irrigation ((Non-Potable) 342 385 423 456 484 Total Water Sales: 8,059 9,070 9,961 10,739 11,415
Unaccounted for Water 1,448 1,630 1,790 1,930 2,052
Total Water Consumption
(Total Supply into System): 9,507 10,701 11,751 12,670 13,467 Note: Some projected potable landscape irrigation demands may be switched to the “non-potable” category when recycled water is available 282
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Figure 6.9: Projected Water Demand by Sector (in 2045)
Single Family
6,382 AF
Multi-Family 130 AF
Commercial
3,206 AF
Industrial
276 AF
Institutional
37 AF
Landscape
(Non-Potable)
484 AF
Landscape
(Potable)
900 AF
Loss
2,052 AF
283
Appendix C: Beaumont Basin Judgment
Water Supply Verification – Atwell Specific Plan Phases 3B and 4A-1 284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
Appendix D: Excerpts from 2018 Integrated Master Plan
Water Supply Verification – Atwell Specific Plan Phases 3B and 4A-1 311
CHAPTER 3 | INTEGRATED MASTER PLAN | CITY OF BANNING
FINAL |MARCH ͮͬͭʹ| ͯ‐ͳ
Table ͯ.ͱ Water Demand Factors
Land Use Type Abbreviation Calculated WDF
(gpd/acre)
ͮͬͭͳ IMP WDF
(gpd/acre)
Rural RUR ͭͱͬ ͭͬͬ
Very Low Density Residential VLDR ͭ,ͲͯͲ ͭ,Ͳͬͬ
Low Density Residential LDR ͮ,ͯͯͰ ͮ,ͯͬͬ
Medium Density Residential MDR ͮ,ͳͲͯ ͮ,ʹͬͬ
High Density Residential HDR ͯ,ͬͱͯ ͯ,ͭͬͬ
Commercial COM ͱ,ͮͳͱ ͱ,ͯͬͬ
Industrial IND ͭ,ͲͳͰ ͭ,ͳͬͬ
Open Space ‐ Parks OS‐P ͭ,ͬͭ͵ ͭ,ͬͬͬ
Public Facilities PF ͯͳͯ Ͱͬͬ
Schools PF‐S ͯ,ͱͬͮ ͯ,ͱͬͬ
Notes:
(ͭ) WDFs calculated based on ͮͬͭͲ billing data and scaled up to average of ͮͬͭͮ‐ͮͬͭͰ demands.

As shown in Table ͯ.ͱ, the calculated WDFs for the City’s land uses range between ͭͬͬ for rural areas to ͱ,ͯͬͬ for commercial areas.

3.1.2.3 Potable Water Peaking Factors
Peaking Factors (PF) are typically used to determine the water demands for conditions other than ADD conditions. Peaking factors account for fluctuations in demands on a seasonal or hourly basis. For example, during hot summer days, water use is typically higher than on a cold winter day due to increased irrigation demands.

Common PFs include factors for Maximum Day Demands (MDD) and Minimum Day Demands (MinDD). PFs are determined using the water system demands for a selected period and dividing the quantity by the ADD. The MDD factor, for example, is determined by comparing the water demands for the day of the year with the highest daily water demand to the ADD.

The peaking factors determined in this report include:
 Monthly Peaking Factors.
 Daily Peaking Factors.

These PFs not only reflect a different time scale, but are often calculated using different data sources. The City’s PFs and data used to establish these are discussed below.

Monthly Peaking Factors
Monthly PFs represent the seasonal demand variation on a monthly basis, such as the MMD and MinMD factors. In the absence of daily production data for an entire calendar year, these factors can be established using monthly production summaries or historical billing data. The City’s monthly peaking factors based on historical monthly production are summarized in Table ͯ.Ͳ.

Since year ͮͬͭͱ demands were much lower due to conservation mandates, it is not included in this calculation.
312
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!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([
!([

BLUFF ST

SUN LAKES BLVD

HIGHLAND SPRINGS AVE

HATHAWAY ST

SAN GORGONIO AVE

GILMAN ST

WESTWARD AVE

RAMSEY ST

WILSON ST
§¨¦10
8TH ST

LINCOLN ST

SUNSET AVE

CHARLES ST
Hargrave &
John St PRV San Gorgonio
& Lincoln PRV
South Mountain
Water Valve
Banning Water
Canyon PRV
Wells 1-12
Foothill East PRV &
Proposed Foothill
East 2 PRV
Southwest
Reservoir
San Gorgonio
Reservoirs
Sunset
Reservoirs
Brinton Reservoir
& Proposed
Foothill West PS
High Valley Tank
& Altitude Valve
Well M3
Well M10 Well M11
Well C3
Well C6
Proposed
Upper Main
Reservoirs
Proposed
Mountain North
Reservoir
Proposed
Foothill West
Reservoir
Fire Flow PRV
Woodland
& Lincoln
PRV 16th
& Hays
Well C9
PRV 8th St
& George
PRV 8th St &
Jacento View
PRV 4th St
& Wilson
PRV San Gorgonio
& Gilman
PRV Theodore
& Almond
Well C4
Well C5
Well C2,
Well C2 Forebay,
C2 Booster PS
Well C8

RSG PRV
Well C10
Well M7
Well M12
Proposed
Zone 1
Reservoir
Last Revised: February 13, 2018 \\io-fs-1\Data\GIS\GISBackup\Banning\MXD\Figure6.11_FutureSystemMaxPressures.mxd CHAPTER 6 | INTEGRATED MASTER PLAN | CITY OF BANNING
Figure 6.11 Future (2040) System Maximum Pressures with Re-zoning O
0 0.25 0.5
Miles
Disclaimer: Features shown in this
figure are for planning purposes and
represent approximate locations.

Engineering and/or survey accuracy
is not implied.

Data Sources: ESRI, Banning
Legend
Pressure > 150 psi
!([ New PRV
!ã Future Well
")
= Future PS
UT Future Tank
Future Pipeline
!([ Existing Valve
#* Existing BCVWD Interconnection
!ã Existing Well
")
= Existing PS
UT Existing Tank
Existing Pipeline
City Boundary
Parcel
Freeway
Pressure Zone
Foothill East Pressure Zone
Mountain North Pressure Zone
Lower I Pressure Zone
Lower Main Pressure Zone
Foothill West Pressure Zone
Mountain South Pressure Zone
Upper Main Pressure Zone
313
Appendix E: California Government Code Section 66473.7
Water Supply Verification – Atwell Specific Plan Phases 3B and 4A-1 314
Code: Select Code Section: 1 or 2 or 1001 Search
TITLE 7. PLANNING AND LAND USE [65000 - 66499.58] ( Heading of Title 7 amended by Stats. 1974, Ch. 1536. ) DIVISION 2. SUBDIVISIONS [66410 - 66499.41] ( Division 2 added by Stats. 1974, Ch. 1536. ) CHAPTER 4. Requirements [66473 - 66498] ( Chapter 4 added by Stats. 1974, Ch. 1536. ) 66473.7.

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GOVERNMENT CODE - GOV
ARTICLE 1. General [66473 - 66474.10] ( Article 1 added by Stats. 1974, Ch. 1536. ) (a) For the purposes of this section, the following definitions apply:
(1) “Subdivision” means a proposed residential development of more than 500 dwelling units, except that for a public water system that has fewer than 5,000 service connections, “subdivision” means any proposed residential development that would account for an increase of 10 percent or more in the number of the public water system’s existing service connections.
(2) “Sufficient water supply” means the total water supplies available during normal, single-dry, and multiple-dry years within a 20-year projection that will meet the projected demand associated with the proposed subdivision, in addition to existing and planned future uses, including, but not limited to, agricultural and industrial uses. In determining “sufficient water supply,” all of the following factors shall be considered:
(A) The availability of water supplies over a historical record of at least 20 years. (B) The applicability of an urban water shortage contingency analysis prepared pursuant to Section 10632 of the Water Code that includes actions to be undertaken by the public water system in response to water supply shortages.
(C) The reduction in water supply allocated to a specific water use sector pursuant to a resolution or ordinance adopted, or a contract entered into, by the public water system, as long as that resolution, ordinance, or contract does not conflict with Section 354 of the Water Code. (D) The amount of water that the water supplier can reasonably rely on receiving from other water supply projects, such as conjunctive use, reclaimed water, water conservation, and water transfer, including programs identified under federal, state, and local water initiatives such as CALFED and Colorado River tentative agreements, to the extent that these water supplies meet the criteria of subdivision (d). (E) If a proposed subdivision relies in whole or in part on groundwater, the following factors:
(i) For a basin for which a court or the State Water Resources Control Board has adjudicated the rights to pump groundwater, the order or decree adopted by the court or the State Water Resources Control Board. (ii) For a basin that has not been adjudicated, as follows:
(I) For a basin designated as high- or medium-priority pursuant to Section 10722.4 of the Water Code, the most recently adopted or revised adopted groundwater sustainability plan or approved alternative. If there is no adopted groundwater sustainability plan or approved alternative, information as to whether the Department of Water Resources has identified the basin or basins as overdrafted or has projected that the basin will become overdrafted if present management conditions continue. (II) For a basin designated as low- or very low priority pursuant to Section 10722.4 of the Water Code, information as to whether the Department of Water Resources has identified the basin or basins as Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 315
overdrafted or has projected that the basin will become overdrafted if present management conditions continue.
(3) “Public water system” means the water supplier that is, or may become as a result of servicing the subdivision included in a tentative map pursuant to subdivision (b), a public water system, as defined in Section 10912 of the Water Code, that may supply water for a subdivision. (b) (1) The legislative body of a city or county or the advisory agency, to the extent that it is authorized by local ordinance to approve, conditionally approve, or disapprove the tentative map, shall include as a condition in any tentative map that includes a subdivision a requirement that a sufficient water supply shall be available. Proof of the availability of a sufficient water supply shall be requested by the subdivision applicant or local agency, at the discretion of the local agency, and shall be based on written verification from the applicable public water system within 90 days of a request.
(2) If the public water system fails to deliver the written verification as required by this section, the local agency or any other interested party may seek a writ of mandamus to compel the public water system to comply. (3) If the written verification provided by the applicable public water system indicates that the public water system is unable to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision, then the local agency may make a finding, after consideration of the written verification by the applicable public water system, that additional water supplies not accounted for by the public water system are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section.

This finding shall be made on the record and supported by substantial evidence. (4) If the written verification is not provided by the public water system, notwithstanding the local agency or other interested party securing a writ of mandamus to compel compliance with this section, then the local agency may make a finding that sufficient water supplies are, or will be, available prior to completion of the subdivision that will satisfy the requirements of this section. This finding shall be made on the record and supported by substantial evidence.
(c) The applicable public water system’s written verification of its ability or inability to provide a sufficient water supply that will meet the projected demand associated with the proposed subdivision as required by subdivision (b) shall be supported by substantial evidence. The substantial evidence may include, but is not limited to, any of the following:
(1) The public water system’s most recently adopted urban water management plan adopted pursuant to Part 2.6 (commencing with Section 10610) of Division 6 of the Water Code. (2) A water supply assessment that was completed pursuant to Part 2.10 (commencing with Section 10910) of Division 6 of the Water Code.
(3) A groundwater sustainability plan adopted or alternative approved pursuant to Part 2.74 (commencing with Section 10720) of Division 6 of the Water Code.
(4) Other information relating to the sufficiency of the water supply that contains analytical information that is substantially similar to the assessment required by Section 10635 of the Water Code. (d) When the written verification pursuant to subdivision (b) relies on projected water supplies that are not currently available to the public water system, to provide a sufficient water supply to the subdivision, the written verification as to those projected water supplies shall be based on all of the following elements, to the extent each is applicable:
(1) Written contracts or other proof of valid rights to the identified water supply that identify the terms and conditions under which the water will be available to serve the proposed subdivision. (2) Copies of a capital outlay program for financing the delivery of a sufficient water supply that has been adopted by the applicable governing body.
(3) Securing of applicable federal, state, and local permits for construction of necessary infrastructure associated with supplying a sufficient water supply.
(4) Any necessary regulatory approvals that are required in order to be able to convey or deliver a sufficient water supply to the subdivision. 316
(e) If there is no public water system, the local agency shall make a written finding of sufficient water supply based on the evidentiary requirements of subdivisions (c) and (d) and identify the mechanism for providing water to the subdivision.
(f) In making any findings or determinations under this section, a local agency, or designated advisory agency, may work in conjunction with the project applicant and the public water system to secure water supplies sufficient to satisfy the demands of the proposed subdivision. If the local agency secures water supplies pursuant to this subdivision, which supplies are acceptable to and approved by the governing body of the public water system as suitable for delivery to customers, it shall work in conjunction with the public water system to implement a plan to deliver that water supply to satisfy the long-term demands of the proposed subdivision. (g) The written verification prepared under this section shall also include a description, to the extent that data is reasonably available based on published records maintained by federal and state agencies, and public records of local agencies, of the reasonably foreseeable impacts of the proposed subdivision on the availability of water resources for agricultural and industrial uses within the public water system’s service area that are not currently receiving water from the public water system but are utilizing the same sources of water. To the extent that those reasonably foreseeable impacts have previously been evaluated in a document prepared pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or the National Environmental Policy Act (Public Law 91-190) for the proposed subdivision, the public water system may utilize that information in preparing the written verification. (h) Where a water supply for a proposed subdivision includes groundwater, the public water system serving the proposed subdivision shall evaluate, based on substantial evidence, the extent to which it or the landowner has the right to extract the additional groundwater needed to supply the proposed subdivision. Nothing in this subdivision is intended to modify state law with regard to groundwater rights. (i) This section shall not apply to any residential project proposed for a site that is within an urbanized area and has been previously developed for urban uses, or where the immediate contiguous properties surrounding the residential project site are, or previously have been, developed for urban uses, or housing projects that are exclusively for very low and low-income households.
(j) The determinations made pursuant to this section shall be consistent with the obligation of a public water system to grant a priority for the provision of available and future water resources or services to proposed housing developments that help meet the city’s or county’s share of the regional housing needs for lower income households, pursuant to Section 65589.7.
(k) The County of San Diego shall be deemed to comply with this section if the Office of Planning and Research determines that all of the following conditions have been met:
(1) A regional growth management strategy that provides for a comprehensive regional strategy and a coordinated economic development and growth management program has been developed pursuant to Proposition C as approved by the voters of the County of San Diego in November 1988, which required the development of a regional growth management plan and directed the establishment of a regional planning and growth management review board.
(2) Each public water system, as defined in Section 10912 of the Water Code, within the County of San Diego has adopted an urban water management plan pursuant to Part 2.6 (commencing with Section 10610) of the Water Code.
(3) The approval or conditional approval of tentative maps for subdivisions, as defined in this section, by the County of San Diego and the cities within the county requires written communications to be made by the public water system to the city or county, in a format and with content that is substantially similar to the requirements contained in this section, with regard to the availability of a sufficient water supply, or the reliance on projected water supplies to provide a sufficient water supply, for a proposed subdivision. (l) Nothing in this section shall preclude the legislative body of a city or county, or the designated advisory agency, at the request of the applicant, from making the determinations required in this section earlier than required pursuant to subdivision (b).
(m) Nothing in this section shall be construed to create a right or entitlement to water service or any specific level of water service.
(n) Nothing in this section is intended to change existing law concerning a public water system’s obligation to provide water service to its existing customers or to any potential future customers. 317 (o) Any action challenging the sufficiency of the public water system’s written verification of a sufficient water supply shall be governed by Section 66499.37.
(Amended by Stats. 2016, Ch. 594, Sec. 1. (SB 1262) Effective January 1, 2017.) 318
319

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Patrick Safari, Capital Improvement Projects Manager Art Vela, Director of Public Works
MEETING DATE: March 24, 2026
SUBJECT: Consideration of Resolution 2026-57, Approving the Execution of a Service Contract with the California Department of Transportation for the Construction of Safety Improvements at the At-Grade Crossing of San Gorgonio Avenue and the Union Pacific Railroad.

RECOMMENDATION:

Adopt Resolution 2026-57
BACKGROUND:

The City of Banning, in partnership with California Department of Transportation (Caltrans) and the Union Pacific Railroad (UPRR), has been working to improve safety at the at-grade crossing of San Gorgonio Avenue and the UPRR tracks. The project's scope was established by a diagnostic team led by the California Public Utilities Commission (CPUC) Rail Crossings and Engineering Branch, with funding provided through Federal Section 130, Railroad-Highway Grade Crossing Program (RHGCP).

On March 23, 2021, City Council approved Resolution No. 2021-14 approving the execution of an Engineering Services Contract with Caltrans for safety improvements at the at-grade crossing of San Gorgonio Avenue and the Union Pacific Railroad. Subsequently, the Engineering Services Contract was amended to address increased costs for traffic engineering support (Amendment No. 1) and to incorporate additional active transportation design improvements (Amendment No. 2). Amendment No. 3 extended the contract term to December 31, 2026, to accommodate the expanded scope and necessary multi-agency coordination.

The safety improvements to be constructed remain as outlined in the original project scope and are fully consistent with the City's prior actions and the CPUC's recommendations. The City's scope of work includes installing ADA-compliant concrete sidewalks, curb and gutter, pedestrian curb ramps with detectable warning strips, and new signage and striping. The UPRR's scope, managed under a separate agreement between Caltrans and UPRR, includes installing new warning devices and concrete crossing surfaces.

JUSTIFICATION:

The proposed safety improvements, identified through the CPUC diagnostic process, are designed to enhance safety for vehicles, pedestrians, and cyclists at the San Gorgonio Avenue and UPRR crossing.

Approval of the Service Contract with Caltrans is necessary to authorize the construction phase and reimbursement of the City’s cost, up to $871,757 needed to complete the safety improvements. 320
FISCAL IMPACT:

The project construction costs phase will be fully funded by Caltrans utilizing RHGCP funds.

ATTACHMENTS:

1. Resolution 2026-57.pdf

2. Resolution No. 2021-014.pdf

3. Caltrans Contract Amendment 1.pdf

4. Caltrans Contract Amendment 2.pdf

5. Caltrans Contract Amendment 3.pdf

6. Construction Service Contract.pdf
321
Resolution 2026-57

Page 1 of 4 ends

RESOLUTION 2026-57

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

APPROVING THE EXECUTION OF A SERVICE CONTRACT WITH THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION FOR THE CONSTRUCTION OF SAFETY

IMPROVEMENTS AT THE AT-GRADE CROSSING OF SAN GORGONIO AVENUE AND THE UNION PACIFIC RAILROAD.

WHEREAS, the City of Banning, in partnership with California Department of Transportation (Caltrans) and the Union Pacific Railroad (UPRR), is committed to improving safety at the at-grade crossing of San Gorgonio Avenue and the UPRR tracks; and WHEREAS, the project's scope was established by a diagnostic team led by the California Public Utilities Commission (CPUC) Rail Crossings and Engineering Branch to enhance safety for vehicles, pedestrians, and cyclists; and
WHEREAS, on March 23, 2021, City Council approved Resolution No. 2021-14 approving the execution of an Engineering Services Contract with Caltrans for safety improvements at the at-grade crossing of San Gorgonio Avenue and the UPRR tracks; and WHEREAS, said Engineering Services Contract was subsequently amended to address increased costs for traffic engineering support (Amendment No. 1), incorporate additional active transportation design improvements (Amendment No. 2), and extend the contract term to December 31, 2026, to accommodate the expanded scope and necessary multi-agency coordination (Amendment No. 3); and
WHEREAS, the construction phase scope of work for the City includes installing ADAcompliant concrete sidewalks, curb and gutter, pedestrian curb ramps with detectable warning strips, and new signage and striping; and
WHEREAS, the City now desires to enter into a Service Contract with Caltrans to authorize the construction phase and provide for the reimbursement of the City's cost in the amount of $871,757; and
WHEREAS, the project is funded through the Federal Railroad-Highway Grade Crossing Program (Section 130), with Caltrans administering the funds.

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

SECTION 1. The City Council approves a Service Contract with Caltrans for the construction of safety improvements at the at-grade crossing of San Gorgonio Avenue and the Union Pacific Railroad.

SECTION 2. The City Council authorizes the City Manager, or their designee, to execute the Services Contract with Caltrans.

SECTION 3. City Council authorizes the City Manager to make necessary non-substantive changes and execute the Service Contract with Caltrans. 322
Resolution 2026-57

Page 2 of 4 ends

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 March 2026.

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
323
Resolution 2026-57

Page 3 of 4 ends

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-57, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of March 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
324
Resolution 2026-57

Page 4 of 4 ends

EXHIBIT A
Service Contract with Caltrans
325
RESOLUTION 2021- 14

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

CALIFORNIA, APPROVING THE EXECUTION OF A SERVICE

CONTRACT WITH THE CALIFORNIA DEPARTMENT OF

TRANSPORTATION FOR SAFETY IMPROVEMENTS AT THE AT -

GRADE CROSSING OF SAN GORGONIO AVENUE AND THE UNION

PACIFIC RAILROAD
WHEREAS, a diagnostic team was formed and lead by the California Public Utilities Commission ( CPUC) Rail Crossings and Engineering Branch staff for purposes of itemizing the safety improvements to be funded under the Railroad -Highway Grade Crossing Program RHGCP), Section 130 at the San Gorgonio Avenue and Union Pacific railroad at -grade crossing; and
WHEREAS, several safety improvements were identified by the diagnostic team after analyzing the existing at -grade crossing with respect to vehicular travel, bicycle travel, pedestrian pathways and rail traffic; and
WHEREAS, the diagnostic team determined that the identified safety improvement are eligible to be fully funded by RHGCP funds; and WHEREAS, the execution of a Service Contract between the City of Banning and the California Department of Transportation ( Caltrans) is required to acquire the authorization for reimbursement of the City' s cost, up to $ 80, 000, for the preliminary engineering phase of the project.

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

SECTION 1. The City Council approves a Service Contract between Caltrans and the City of Banning for Safety Improvements at the at -grade crossing of San Gorgonio Avenue and the Union Pacific railroad and authorizes the City Manager or his designee to sign the Service Contract.

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 23rd dy of March, 2021 1 Colleen Wallace, Mayor
City of Banning, California
Resolution 2021- 14
326
ATTEST:

Laurie Sampso` h, Acting Deputy City Clerk
City of Banning

APPROVED AS TO FORM
AND LEGAL CONTENT:

Kevin G. Ennis, City Attorney
Richards, Watson & Gershon
2 Resolution 2021- 14
327
CERTIFICATION:

I, Laurie Sampson, Acting Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2021- 14 was duly adopted by the City Council of the City of Banning, California. at a regular meeting thereof held on the 23rd day of March 2021, by the following vote, to wit:

AYES: Council Members Hamlin, Happe, Pingree, Sanchez and Mayor Wallace NOES:

ABSENT:

ABSTAIN:

Laurie Sampson, Acting Deputy City Clerk
City of Banning, California
3 Resolution 2021- 14
328

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
San Gorgonio A venue, Banning
Amendment I
December 2, 2022
Sheet l of l
Item Chapter Budget Act Caltrans Project ID Unit Amount State Fiscal Year 2660-120-0890 23 2019 0821000010 3328 $80,000.00 2019/2020 2660-102-0890 43 2022 0821000010 3328 $50 000.00 2022/2023 The funds listed above are available for the oeriod and ouroose of the exoenditure stated herein and aooliable to this amendment.

PROJECT NUMBER (FED ID) STPLR-7500(288)
CONTRACT AMENDMENT #1 CAL TRANS ACCOUNTING ID: 0821000010 San Gorgonio Ave, City of Banning, CA PROGRAM SUPPLEMENT : 50LP288 AGENCY LOCODE: 5214
(The numbers above shall be included with all invoices submitted to Cal trans) Caltrans Division of Local Assistance
Office of Federal Programs Highway Railroad Grade Crossing Safety Program (Section 130) P.O. Box 942874, MS 1
Sacramento, CA 94274-0001
Effective Date of Contract : December 2, 2022
LOCAL AGENCY: City of Banning Expiration Date of Contract : December 31, 2024 ADDRESS: 99 E. Ramsey Street
Banning, CA 92220 Contract $ 80,000.00
Phone: (951) 922-3130 Additional Funds Amend #1 $ 50,000.00 Total Contract $ 130,000.00
WHEREAS: Service Contract 50LP288, dated December 15, 2020, provided $80,000.00 towards the Preliminary Engineering (PE) needed for roadway safety improvements at the grade crossing and intersection of San Gorgonio Avenue and the Union Pacific Railroad tracks identified as; California Public Utilities Commission (CPUC) No. OOlB568.20 I RIV-1003, Federal DOT No 760694C.

WHEREAS, due to the complexity of the project, the City of Banning elected to hire a traffic engineering firm to support the design of the project and;
WHEREAS, market forces have substantially increased the overall cost of goods and services, WHEREAS, updated PE costs require additional funding in the amount of $50,000.00, as requested by the City of Banning.

NOW THEREFORE, that all terms and conditions of Program Supplement 50LP288 shall remain in full force and effect except it is mutually agreed by the parties hereto; the contract dollar amount shall be amended with additional funds for a total contract value of $130,000.00. These funds are PE, with any unexpended balance applied towards the total funding needed for CON authorization and compliant with Caltrans' state budget authority.

IN WITNESS WHEREOF, the parties have duly executed this contract as of the dates shown below with the effective date as shown above.

CALIFORNIA DEPARTMENT OF TRANSPORTATION
By ____________________ _
Office of Federal Programs
Caltrans Local Assistance
Title _____ S __ e __ c_ti __ o_n_1 __ 3_0_P_r_o_g_r_a_m_M_a_n_a_g_e_r ____ _ Date ___________________ _
Title _~ fr'ba9<,tt. /4Lt -.:...-.---,.. / --"---' ............... .......__,___ tl'...,,...,,.. ---'--'----
Date ____._/_~_1.s- _ /4'---z.,.. _____ _ ~ I
December 9, 2022
329
STATE OF CALIFORNIA San Gorgonio Avenue, Banning
DEPARTMENT OF TRANSPORTATION Amendment 2
January 3, 2024
Sheet 1 of 1
WHEREAS: Service Contract 50LP288 through Amendment 1, provides $130,000.00 towards the Preliminary Engineering of roadway safety improvements at the grade crossing and intersection of San Gorgonio Avenue and the Union Pacific Rail Crossing identified as; California Public Utilities Commission (CPUC) No. 001B-568.20 / RIV-1003, Federal DOT No 760694C.

WHEREAS, the project team supports the exploration of additional active transportation improvements into the project design;
WHEREAS, addition work will be required to facilitate adding new sidewalks into the design improvements and updated PE funding in the amount of $100,000.00 has been secured through FHWA funding, NOW THEREFORE, that all terms and conditions of Program Supplement 50LP288 shall remain in full force and effect except it is mutually agreed by the parties hereto; the Section 130 program will provide 100% of the funds necessary to complete the project and the contract amount shall be amended for a total value of $230,000.00.

IN WITNESS WHEREOF, the parties have duly executed this contract as of the dates shown below with the effective date as shown above.

CALIFORNIA DEPARTMENT OF TRANSPORTATION CITY OF BANNING By ___________________________________________ By _____________________________________________ Bruce Roberts
Office of Federal Programs
Caltrans Local Assistance
Title_ Section 130 Program Manager ____ Title __________________________________________________ Date _____________________________________________ Date __________________________________________________ Item Chapter Budget Act Caltrans Project ID Unit Amount State Fiscal Year 2660-120-0890 23 2019 0821000010 3328 $80,000.00 2019/2020 2660-102-0890 43 2022 0821000010 3328 $50,000.00 2022/2023 2660-102-0890 12 2023 0821000010 3328 $100,000.00 2023/2024 The funds listed above are available for the period and purpose of the expenditure stated herein and appliable to this amendment.

CONTRACT AMENDMENT #2
San Gorgonio Ave, City of Banning, CA
PROJECT NUMBER (FED ID) STPLR-7500(288)
CALTRANS ACCOUNTING ID: 0821000010
PROGRAM SUPPLEMENT: 50LP288
AGENCY LOCODE: 5214
(The numbers above shall be included with all invoices submitted to Caltrans) Caltrans Division of Local Assistance
Office of Federal Programs
P.O. Box 942874, MS 1
Sacramento, CA 94274-0001
Highway Railroad Grade Crossing Safety Program (Section 130) LOCAL
AGENCY:

ADDRESS:

Phone:

City of Banning
99 E. Ramsey Street
Banning, CA 92220
(951) 922-3130
Effective Date of Contract: December 2, 2022
Expiration Date of Contract: December 31, 2024
Contract $130,000.00
Additional Funds Amend #2 $100,000.00
Total Contract $230,000.00
City Manager
January 8, 2024 January 5, 2024
330

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
San Gorgonio Avenue, Banning
Amendment 3
Oct 11, 2024
Sheet l of l
Item Chapter Budget Act Caltrans Project ID Unit Amount State Fiscal Year 2660-102-0890 23 2019 0821000010 3328 $80 000.00 2019/2020 2660-102-0890 43 2021 0821000010 3328 $50 000.00 2022/2023 2660-102-0890 12 2023 0821000010 3328 $100 000.00 2023/2024 The funds listed above are available for the period and purvose of the expenditure stated herein and appliable to this amendment.

PROJECT NUMBER (FED ID) STPLR-7500(288)
CONTRACT AMENDMENT #3 CALTRANS ACCOUNTING ID: 0821000010 San Gorgonio Ave, City of Banning, CA SERVICE CONTRACT: 50LP288 AGENCY LOCODE: 5214
(The numbers above shall be included with all invoices submitted to Caltrans) Caltrans Division of Local Assistance
Office of Federal Programs Highway Railroad Grade Crossing Safety Program (Section 130) P.O. Box 942874, MS 1
Sacramento. CA 94274-0001
Effective Date of Contract : December 15, 2020
LOCAL AGENCY: City of Banning Expiration Date of Contract : December 31, 2024 ADDRESS: 99 E. Ramsey Street Amended Expiration Date of Contract December 31, 2026 Banning, CA 92220
Phone: (951) 922-3130
Total $230,000.00
WHEREAS: Service Contract 50LP288, dated December 15, 2020, provided $80,000.00 towards the Preliminary Engineering (PE) needed for roadway safety improvements at the grade crossing and intersection of San Gorgonio Avenue and the Union Pacific Railroad tracks identified as; California Public Utilities Commission (CPUC) No. 001 B568 .20 I RlV-1003, Federal DOT No 760694C.

WHEREAS, Amendment #1 provided an additional $50,000 and Amendment #2 provided an additional $100,000.

WHEREAS, Scope changes to include additional pedestrian treatments and project complexity have extended the project timeline.

WHEREAS, Amendment #3: Ongoing modifications of the project scope will require addition time and coordination to finalize the General Order 88B.

NOW THEREFORE, It is mutually agreed by the parties hereto; that all terms and conditions of Contract 50LP288 as amended shall remain in full force and effect, except that the expiration date is hereby extended, through December 31, 2026.

IN WITNESS WHEREOF, the parties have duly executed this contract as of the dates shown below with the effective date as shown above.

CALIFORNIA DEPARTMENT OF TRANSPORTATION
By ____________________ _
Carlos Ruiz
Office of Federal Programs
Caltrans Local Assistance
Title _____ S __ __ e c__ t1 __ •o __ n___ 1 3 __ 0_P_ r_o_.g_r_a_m_M_a_n_a_g_e_r ____ _ Date ______October 15, 2024______________

CITY OF BANNING

PUBLIC WORKS AGENCY
Title �'C' 'i>.i-t?fC'To{? CX' �"Jl.�c Wc4'?.ftS
c-r-, � G;t"kJ<:<:?fl
Date ___ lO_/_t '-f_/1_1.._'( _____ _
331
STATE OF CALIFORNIA San Gorgonio Avenue, Banning
DEPARTMENT OF TRANSPORTATION Amendment 4
January 21, 2025
Sheet 1 of 2
WHEREAS: Service Contract 50LP288, dated December 15, 2020, provided $80,000.00 towards the Preliminary Engineering (PE) needed for roadway safety improvements at the grade crossing and intersection of San Gorgonio Avenue and the Union Pacific Railroad tracks identified as; California Public Utilities Commission (CPUC) No. 001B568.20 / RIV-1003, Federal DOT No 760694C.

WHEREAS, Amendment #1 provided an additional $50,000 to support increased market costs for traffic engineering support services, and
WHEREAS, Amendment #2 provided an additional $100,000 for additional active transportation design improvements, and
WHEREAS, Amendment #3 extended the contract expiration date until December 31, 2026 due to more time being needed for design efforts related to the expanded project scope and continued multiagency coordination, and WHEREAS, Amendment #4 will provide construction dollars in the amount $871,757.00 for the beginning of construction, and to extend the expiration date to December 31, 2028, and the project will move into the construction phase.

NOW THEREFORE, It is mutually agreed by the parties hereto; that all terms and conditions of Contract 50LP288 as amended shall remain in full force and effect, except the total contract value shall be $1,101,757.00, and the expiration date is hereby extended, through December 31, 2028.

Item Chapter Budget Act Caltrans Project ID Unit Amount State Fiscal Year 2660-102-0890 23 2019 0821000010 3328 $80,000.00 2019/2020 2660-102-0890 43 2021 0821000010 3328 $50,000.00 2022/2023 2660-102-0890 12 2023 0821000010 3328 $100,000.00 2023/2024 2660-102-0890 4 2025 0821000010 3328 $641,757.00 2025-2026 The funds listed above are available for the period and purpose of the expenditure stated herein and appliable to this amendment.

CONTRACT AMENDMENT #4
San Gorgonio Ave, City of Banning, CA
PROJECT NUMBER (FED ID) STPLR-7500(288)
CALTRANS ACCOUNTING ID: 0821000010
SERVICE CONTRACT: 50LP288
AGENCY LOCODE: 5214
(The numbers above shall be included with all invoices submitted to Caltrans) Caltrans Division of Local Assistance
Office of Federal Programs
P.O. Box 942874, MS 1
Sacramento, CA 94274-0001
Highway Railroad Grade Crossing Safety Program (Section 130) LOCAL AGENCY:

ADDRESS:

Phone:

City of Banning
99 E. Ramsey Street
Banning, CA 92220
(951) 922-3130
Effective Date of Contract : December 15, 2020
Expiration Date of Contract : December 31, 2026
Amended Expiration: December 31, 2028
Contract Existing $230,000.00
Additional Funds $871,757.00
Total $1,101,757.00
332
STATE OF CALIFORNIA San Gorgonio Avenue, Banning
DEPARTMENT OF TRANSPORTATION Amendment 4
January 21, 2025
Sheet 2 of 2
IN WITNESS WHEREOF, the parties have duly executed this contract as of the dates shown below with the effective date as shown above.

CALIFORNIA DEPARTMENT OF TRANSPORTATION CITY OF BANNING

PUBLIC WORKS AGENCY
By ______________________________________________________ By ___________________________________________________ Carlos Ruiz
Office of Federal Programs
Caltrans Local Assistance
Title_ Section 130 Program Manager ______ Title ________________________________________________________ Date _________________________________________________________ Date ________________________________________________________ 333

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Elizabeth Gibbs, City Manager
MEETING DATE: March 24, 2026
SUBJECT: Discussion and Direction regarding the Draft City of Banning Reimbursement Policy for Elected and Appointed Officials – also known as the Travel Policy
RECOMMENDATION:

Discussion by and direction from the City Council regarding the draft City of Banning Reimbursement Policy for Elected and Appointed Officials.

BACKGROUND:

On January 14, 2020, City Council adopted a Travel and Meeting Policy, Policy E-3 (Attachment 1).

Subsequently, Council Member Flynn requested a future agenda item to review and update the Policy (Attachment 2). The draft policy was written to comply with AB 1234 and the provisions of the Government Code related to reimbursement for reasonable, actual, and necessary expenses of elected and appointed officials.

The draft policy includes the purpose, a general policy statement, activities for which expense reimbursement may be granted, expenses authorized for reimbursement, expenses not authorized for reimbursement, reporting requirements, reimbursement exclusion for expenses paid for by third parties, the travel authorization procedures, and a list of pre-approved community, regional, state-wide, and/or national events for which reimbursement shall be required for reason, actual, and necessary expenses.

The policy is provided for discussion by and direction from the City Council including the addition of preapproved community, regional, state-wide, and/or nation events for which reimbursement shall be required for reasonable, actual, and necessary expenses.

JUSTIFICATION:

In May 2025, Council Member Flynn requested a future agenda item to review and update the City Council Reimbursement Policy for Elected and Appointed Officials.

FISCAL IMPACT:

This is a discussion item only.

ATTACHMENTS:

1. E-3-Travel-Meeting-Policy.pdf

2. Draft Elected Officials Reimbursement Policy 1.final.clean.pdf 334

3. Reimbursement Policy for Elected & Appointed Officials.pdf 335
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 1 of 10

PURPOSE
The purpose of this policy is to establish a travel and expense policy for the City of Banning (City) elected officials and City employees when authorized to travel on official City business. Non-City employees shall not be covered under this policy.

BACKGROUND
Occasionally, it is necessary for City personnel to travel to meetings to conduct City business, attend conferences, training seminars and other work related events. To control the costs, and compensate individuals for actual and necessary travel related expenses incurred for a bona fide business purpose, the City has established a travel policy.

POLICY

1. INTRODUCTION
(a) This policy applies to anyone who incurs travel expenses paid by the City of Banning. This policy supersedes all previous travel policies.

1.2 Responsibility of Traveler
(a) City of Banning travelers are expected to spend funds sensibly and plan appropriately so costs do not exceed budgets. Business travel expenses will be paid by the City when expenses are reasonable, appropriately documented, properly authorized, and within the guidelines of this policy. The traveler should neither gain nor lose personal funds as a result of travel. (b) If a check is issued by the City for reimbursement, the check shall be cashed by the traveler within six (6) months of the issue date.

1.3 Traveler and Approver Accountability
(a) Travelers shall not commit City funds until travel is approved in accordance with this policy. (b) IMPORTANT: Travelers shall obtain permission from their own authorized approver prior to engaging in any work related travel. The Finance Department is not responsible for 336
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 2 of 10
authorizing travel for personnel in other departments. By signing any of the travel forms listed in this policy, authorized approvers have authorized their staff to travel for that single event. (c) Any additional costs resulting from a traveler taking a companion on City travel shall not be reimbursed or paid by the City.
(d) Any additional costs related to traveling prior to, or extending the stay beyond the time necessary to attend the approved meeting, conference, training, convention, and other functions shall not be reimbursed or paid by the City. Approving officials are expected to use appropriate discretion when authorizing their staff to travel to an event prior to the event. (e) Travelers may not authorize reimbursement of their own expenses. The Department Head or designee should approve the reimbursement for all travel. The City Manager will approve travel for all Department Heads.
(f) Reimbursements shall not be requested and made to third parties, or non-employees. (g) The Statement of Expense report shall be submitted within 15 working days after returning from travel. In addition, no future travel advances will be issued during that fiscal year if Statement of Expense reports are pending. Statement of Expense reports must be signed by the traveler, and authorized approver.
(h) Travelers shall document all allowable and authorized travel-related expenditures with itemized receipts, invoices, or other acceptable documentation. Under no circumstance will the City provide reimbursement for an expense over $75.00 without the necessary receipt(s).

1.4 Travel Time
(a) Time traveled to and from the event for non-exempt (hourly) travelers during normal working hours will be counted as time worked. Generally, travel time to the event on City business is limited to the actual dates or a function plus reasonable travel time not to exceed a maximum of twenty-four (24) hours before and /or after the function. 337
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 3 of 10
(b) No overtime will be provided for travel time to and from the event other than that mandated by the Federal Fair Labor Standards Act (“FLSA”) requirements and/or approved Memorandums of Understanding (MOU). Departments must be aware of the FLSA and MOU requirements when arranging for travel for all non-exempt (hourly) travelers. Travel-related overtime in connection with travel on City business requires authorization from the Supervisor.

2. TRANSPORTATION

2.1 Air Travel
(a) Generally, the lowest priced domestic coach class airfare is available with a 14-day advance purchase. Reservations should be made as soon as travel plans are finalized to receive advance purchase discounts.
(b) Upgrades – City will not reimburse any upgrades from “economy class” to a higher traveling class. Free upgrades or upgrades paid by the traveler must be clearly documented as such in the Statement of Expense Report.
(c) Frequent flyer memberships should not influence travelers to select a flight that is not the lowest priced flight available.
(d) Frequent flyer miles earned by any traveler during City business travel may be retained by the traveler for business or personal use.
(e) Dues for membership in any airport/airline club are not reimbursable. (f) Airlines are responsible for compensating the owners of lost baggage. The City will not reimburse travelers for personal items lost while traveling on business unless approved by the City Manager.
(g) Employees will be reimbursed for excess baggage charges only when traveling with heavy, bulky materials or equipment necessary for business or when traveling for more than seven (7) days.
338
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 4 of 10
(h) When a trip is canceled after a ticket has been issued, the traveler should inquire with the issuing agent about using the ticket for future travel or processing a refund. The ticket will become property of City and will be used for City purposes only.

2.2 Rental Car
(a) Travelers may rent a vehicle to their business destination when driving is more convenient and less expensive than an airline (this must include the car rental, all additional rental fees and additional parking fees that may be incurred). Travelers must try to utilize a City vehicle whenever available prior to the rental. No mileage will be reimbursed on City vehicles. (b) Reimbursement for gasoline will be allowed at regular gasoline rates. When the rental company requires the vehicle to be returned with a full tank of gasoline (or other specified quantity), the traveler is responsible for adhering to those terms. Incurring consequential fees for not adhering to the rental terms shall not be reimbursed.
(c) Travelers may rent a vehicle at their destination when it is the most convenient or least expensive mode of transportation. Expensive rental rates and parking costs, in addition to the lack of available parking generally makes vehicle rental in large cities impractical. Alternative mode of transportation such as public transit, taxis, Uber, Lyft, airport and hotel shuttles should be given first consideration.
(d) All travelers renting vehicles must comply with all rental agency requirements such as listing driver(s) on the rental agreement, age restrictions, location or state of operation, etc., as well as all state and local laws governing the operation of a motor vehicle. Violations of any requirement of the law (such as driving under the influence, traffic violations, careless or reckless driving, or parking tickets) are the employee’s personal liability. (e) Travelers are required to use intermediate or standard cars. Travelers are responsible for daily rental costs in excess of the approved class as stated above. When traveling in a large group greater than 4, a van, full size, or Sports Utility Vehicle may be rented. When upgrades are available to the traveler they may be taken as long as there is no additional cost to the City. 339
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 5 of 10
(f) Only City employees, who are renting vehicles for business purposes, are covered under the City’s insurance plan. Spouses, friends and other non-employee listed drivers or passengers are covered only under insurance provided by the rental company or under their own personal insurance. Cost of insurance for these additional non-City employee individuals is not a reimbursable expense. The use of City vehicles is encouraged when available.

2.3 Personal Car Usage Guidelines
(a) Employees may use their personal car for business purposes if it is to save time, transport equipment or reduce costs when a number of people are traveling to the same destination. (b) If a traveler chooses to use a personal car for travel to his/her destination, the cost must be less than or equal to coach class air fare and/or the cost of a rental car. (c) The use of City vehicles is encouraged when available. (d) In addition, if more than one traveler is traveling to the same destination they are encouraged to share transportation whenever possible. It is encouraged for travelers to carpool, and thus claim one (1) mileage reimbursement.
(e) Mileage will be reimbursed from either point of origin to point of travel, or from City Hall to point of travel, whichever distance is less. The Standard Mileage Rate for business is based on the IRS annual bulletin. Mileage will not be granted in advance, and is only eligible for reimbursement.
(f) City employees who receive gas allowance from the City shall not be entitled to mileage reimbursement unless their trip exceeds forty (40) miles round trip from either point of origin to point of travel, or from City Hall to point of travel, whichever distance is less, in which case the employee will be reimbursed for the miles driven, less forty (40) miles. If the reimbursable amount is less that twenty dollars ($20.00), traveler shall not be entitled to mileage reimbursement.
(g) It is the responsibility of the owner of the vehicle being used for business purposes to carry adequate insurance coverage (state mandatory insurance requirement at minimum) for their 340
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 6 of 10
protection and the protection of any passengers. When using a personal car for City business, an employee’s personal car insurance carrier is the primary insurance carrier. The City’s insurance will only cover up to the City’s statutory limits in liability claims. (h) Travelers will be reimbursed for business usage of personal cars at the Federal Government’s IRS rate per mile. Tolls and parking will be reimbursed.

2.4 Other Transportation
(a) The most economical mode of transportation should be used to and from airline terminals. Many major hotels provide free transportation to and from airports, travelers should inquire for this type of service. Public transportation and shuttle services should be considered. Employees traveling to same location should share ground transportation whenever possible. (b) Under special circumstances, employees and/or management may be granted the permission to travel in a larger vehicle in order to facilitate the travel of larger groups and reduce the cost. The City Manager or designee may grant approval of such transportation. (c) Itemized Receipts should be provided for all ground transportation expenditures. Original Itemized receipts should be provided, when available, for reimbursement of taxi, shuttle, bus or other ground transportation fares.

3. LODGING
(a) Travelers should use standard room accommodations. When making reservations for lodging costs, the traveler should inquire about educational or governmental discounts. Most California hotels honor the City as a governmental agency and all travelers should make an effort in supplying this information to the hotel.

(b) Lodging costs exceeding established GSA rates may be reimbursed at a higher rate if a written statement explaining the reason for the expense is submitted by the department head to the City Manager along with the completed Travel Advance Request form. Lodging costs shall not exceed the maximum group rate published by the conference or activity sponsor, provided that lodging at the group rate is available to the traveler. 341
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 7 of 10
(c) Non-mandatory hotel related fees for bundled services (such as resort and health club fees) are not reimbursable. Mandatory hotel related fees will be reimbursed with a submission of an itemized receipt.
(d) Travelers must submit an itemized check-out receipt. Booking receipts are not acceptable forms of documentation.

4. MEALS
(a) Per diem allowances must be requested at least two weeks in advance of the day funds are required, or there shall be no obligation on the part of the City for an advance. These funds will be distributed to the requestor no more than seven (7) days prior to the travel date. (b) Per Diem costs for employees traveling out-of-town on City business shall be allowed for meals related to attendance at conventions, scheduled meetings, conferences, seminars, special assignments or an assignment when meals are not already provided by the event host and included with event registration at no additional cost. If it is determined that an event hosted meal only includes a continental breakfast, hors d’oeuvres, or appetizers, the traveler may request per diem in place of these servings, but will have to provide documented information showing that the serving provided by the event host does not include a full meal. (c) When out of town City business requires an employee to leave home one (1) hour earlier than normal worktime, the breakfast meal is allowable. When an employee is required to work out-of-town, or is still in transit two (2) hours past a normal business day, the evening meal is allowable.
(d) The maximum allowance for meals per day is based on the current GSA rates, inclusive of taxes and tips.
(e) The maximum amounts will be increased/decreased as the GSA Standard Meal Allowance rate is adjusted.
(f) An event agenda as well as proof of event registration shall be submitted with any request for meal allowance to be eligible to receive any meal allowances, if available. 342
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 8 of 10
(g) Where the cost of a meal is included as part of a registration charge or fee, no per diem allowance, nor reimbursement may be claimed for that meal. (h) No reimbursement shall be made for alcoholic or Cannabis infused beverages of any kind. (i) Special situations may be considered on a case-by-case basis. A memo from the traveler to the department head is required and the department head’s approval must be attached to the Advance Request form and the Statement of Expense form.

5. USE OF TRAVEL FORMS

5.1 The following list of forms may be applicable to travel authorization and expenses:
• Travel Advance
• Requisition (only when requesting use of Purchasing credit card) • Statement of Expense

5.2 Travel Advance:
(a) When a traveler requires advance pay for a planned trip on official City business, they shall fill out a “Travel Advance” form which shall be signed by both the traveler and the authorized approver with event documentation attached. By signing this form, the approver is authorizing both the travel and advance pay. When payment is being requested, the signed Travel Advance form and appropriate documentation shall be submitted to Finance for payment. (b) If the traveler wishes to have expenses paid in advance by the Purchasing Division via credit card, the signed Travel Advance and appropriate documentation shall be submitted to the Purchasing Division with an approved “Requisition.”
(c) Upon completion of travel, a Statement of Expense must be filed per the requirements below.

Failure to provide the required documentation will result in the denial of future advances.

5.3 Statement of Expense:
343
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 9 of 10
(a) All reimbursement requests must be accompanied by a statement of expense form. If no travel advance pay was requested/provided to the traveler before an authorized City business trip, the traveler may be reimbursed after their return by filling out a Statement of Expense form with all travel related itemized receipts and documentation attached. The Statement of Expense form shall be signed by both the traveler and an authorized approver. By signing this form, the approver has authorized both the travel, and the reimbursable expenses to be paid out of their department’s budgeted account. The signed Statement of Expense form and appropriate documentation shall be submitted to Finance for payment in order for the traveler to be reimbursed by the City.
(b) By signing any/all of these forms, the authorized approver has audited the forms, receipts, and other applicable documentation, and authorized the travel and payment to the traveler within the constraints of this policy and their budget accounts. (c) All travel forms, expense reimbursements and associated documents are considered public records, and are subject to disclosure under the California Public Records Act. Penalties for the misuse of public resources or falsifying expense reports in violations of reporting policies may include, but are not limited to, the penalties specified in Government Code section 53232.4.

6. PROHIBITED ITEMS FOR REIMBURSEMENT
• Alcoholic or Cannabis infused beverages
• Upgrades to airline seating
• Dues/memberships to airline club(s)
• Personal items lost during travel
• Excess baggage charges (except as approved in the “air travel” section of the policy) • Upgrades from intermediate or standard rental vehicles • Insurance to cover non-City employee passengers
• Car repairs
• Rental car costs during repair of personal car
• Tickets, fines, or traffic violations
• Damage to personal vehicle
344
City of Banning
Administrative Procedures
Travel & Meeting Policy
POLICY NO:

E-3
ORIGINATING DEPARTMENT:

Administrative Services Department
DIVISION:

Finance
ADOPTION DATE:
01/14/2020
APPROVED BY:

City Council
LAST AMENDED:

SUPERSEDES:

E-1 & E-2
REFERENCE:

B-30
PAGE 10 of 10
• Theft of personal vehicle or vehicle content
• Non-mandatory resort or health club fees at hotels
• Any personal expenses including, but not limited to the following:
o Dry cleaning
o Hotel movies
o Other entertainment
o Donations
• If requesting reimbursement for ANY items not mentioned in this policy, reimbursement will be subject to the approval of the City Manager.
345
1 CITY OF BANNING

REIMBURSEMENT POLICY FOR ELECTED AND APPOINTED OFFICIALS PURPOSE:

To establish a policy for the reimbursement and authorization of expenses incurred by elected and appointed officials (hereinafter “officials”) of the City of Banning (“City”) in the performance of City business. AB 1234 contains certain requirements and restrictions on local agency practices relating to reimbursing local elected and appointed officials’ expenses. AB 1234 was subsequently codified as California Government Code Section 53232 et seq. This policy will be applicable to all elected or appointed members of any legislative body (as defined in California Government Code Section 54952(a), (b)) of the City, including the City Council, Planning Commission, Parks & Recreation Commission, Utility Authority Board, and any other City-affiliated commission, committee, board, or other body created by ordinance, resolution, or formal action of the City Council.

POLICY:

As a condition of reimbursement, all officials must obtain prior approval before attending any event, function, meeting, training, or other gathering where: (i) the official intends to represent the City in any official or semi-official capacity; and (ii) the official intends to seek reimbursement of any associated expenses, including but not limited to travel, lodging, meals, registration fees, or other related costs. This requirement applies regardless of whether the event is held locally, regionally, or out-of-state, and regardless of whether the event is sponsored by a governmental, quasi-governmental, nonprofit, or private entity. 1 ACTIVITIES FOR WHICH EXPENSE REIMBURSEMENT MAY BE GRANTED:

City Council will annually approve in an open public council meeting a list of pre-authorized community events that City Council members may attend and be reimbursed for actual and necessary expenses incurred by attending (see Exhibit “A” for the list of pre-approved annual community events).

EXPENSES AUTHORIZED FOR REIMBURSEMENT:
1 Except as otherwise provided for herein, reimbursement for expenses incurred by a board member, commissioner, committee member, or other elected/appointed city officials that do not serve on the City Council require prior written approval by the City Manager.
346
2 Consistent with California Government Code Section 53232.2(a), City Council reserves the discretion to deny reimbursement where it determines the expenses were not actual and necessary in conducting official City business.

In accordance with California Government Code § 53232.2(f), all expenses that do not fall within this reimbursement policy must be approved by the City Council in a public meeting before the expenses are incurred, except as provided in California Government Code Section 53232.2(d).

Officials are expected to exercise good judgment and show proper regard for economy when incurring expenses in connection with official City business. The principle of “actual and necessary” should be used when deciding to expend taxpayer money. The most economical cost options for any and all expenses should be utilized. Expense reimbursement is for the official only.

1. Transportation. Transportation expenses incurred in connection with activities authorized under this policy are subject to the following requirements:

a. Airlines and Other Commercial Carriers: Travel reimbursement is generally limited to coach class fare at government rates or group rates when available. Airfares that are equal to or less than those available through the Enhanced Local Government Airfare Program offered through CalCities, the California State Association of Counties (CSAC), and the State of California are presumed to be the most economical and reasonable for purposes of reimbursement under this policy. If rates comparable to those available through CalCities or the State are not available or the fare to the applicable destination is not specified by these sources, then fares that do not exceed the median retail price of the fares posted on websites such as www.expedia.com or www.travelocity.com, or an equivalent service, will be considered reasonable. b. Automotive (Personal Vehicle): Travel using personal vehicles will be reimbursed at the IRS mileage rate in effect at the time (see www.irs.gov). These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are also reimbursable. The City will not reimburse for customary commuting miles to City Council meetings, meetings at City Hall, or other events within the City’s jurisdictional boundaries. c. Efficiency of Travel: When a personal automobile (vehicle) is used for travel, reimbursement for mileage shall be paid at the rate found in Section 1(b) above, up to a maximum equal to the lowest reasonable round-trip airfare to the conference or meeting location. The least costly travel option should be used whenever feasible.
d. Car Rental: Rental vehicles may be used if they are more economical and reasonable than other forms of transportation. Rentals are generally limited to the most economical 347
3 and reasonable mid-sized vehicle. Government rates or rental rates that are equal to or less than those listed by the State of California will be considered the most reasonable and economical for purposes of reimbursement. If government rates or rates comparable to those listed by the State are either not available or the State does not specify a rate for a particular location, then rental rates that do not exceed the median retail price of the rates posted on websites such as www.expedia.com or www.travelocity.com, or an equivalent service, will be considered reasonable. Carpooling is required when feasible.
e. Taxis/Shuttle/Ride Share: Taxi, shuttle, and ride share fares, when reasonable and necessary will be reimbursed, including a not to exceed 15% gratuity per fare. Officials are required to utilize shared transportation options (e.g., carpooling, shared ride services) whenever feasible to minimize costs for the City.

2. Lodging. Lodging expenses incurred in connection with activities authorized under this policy when travel requires an overnight stay are subject to the following requirements:
a. Officials must use government or group rates for lodging when available. b. If lodging is in connection with a conference or organized activity, lodging expenses must not exceed the maximum group rate published by the conference or activity sponsor if such rate is available at the time of booking.
c. If group or government rates are not available, lodging rates that do not exceed the median retail price for lodging in the areas listed on websites such as www.hotels.com or equivalent service will be considered reasonable.
d. Lodging Authorization for Distant Events. Lodging expenses shall be eligible for reimbursement when an official attends an authorized City-related event that is located fifty (50) miles or more from the official’s primary residence. For purposes of this policy, mileage shall be calculated based on the most direct route between the official’s residence and the event location. i. For single-day events, officials may request lodging reimbursement if events start or end at times that would require travel outside of reasonable commuting hours.
ii. Officials must submit proof of the event location and schedule with their reimbursement request to demonstrate eligibility under this subsection.

3. Meals. Meal expenses incurred in connection with activities authorized under this policy will be reimbursed at the applicable U.S. General Services Administration 348
4 (https://www.gsa.gov/travel/plan-book/per-diem-rates) meal rates in effect at the time. Receipts for the elected official’s meal(s) must include a detailed description of items ordered by the elected official only (e.g., separate check with a not to exceed gratuity of 15%). If a meal is provided as part of the event or activity (e.g., if a conference provides breakfast, lunch, or dinner as part of the conference) meal reimbursement will not be provided. Alcoholic beverages will not be reimbursed.

Meal reimbursement may be paid on a per diem basis without receipts if consistent with GSA guidelines; otherwise, itemized receipts are required.

4. Miscellaneous Expenses. Actual and necessary miscellaneous business expenses, as defined by the IRS and incurred in connection with activities authorized within this policy, may be reimbursed (i.e. bridge and road tolls, parking fees, internet access required, standard baggage fees, mandatory resort or facility fees).

Personal convenience items such as in-room entertainment (movies, streaming, gaming), mini-bar purchases, spa services, gym fees, wellness treatments, pet care, childcare, house-sitting expenses, lost items, missed flights, or similar expenses will not be reimbursed.

5. Misuse of Travel and Expense Reporting. All travel forms, expense reimbursements and associated documents are considered public records, and are subject to disclosure under the California Public Records Act. Penalties for the misuse of public resources or falsifying expense reports in violations of reporting policies may include, but are not limited to, the penalties specified in California Government Code Section 53232.4.

EXPENSES NOT AUTHORIZED FOR REIMBURSEMENT:

1. The personal portion of any trip;

2. Political or charitable contributions or events;

3. Family Expenses, including partners’ expenses when accompanying the City Council member/appointed official on City-related business, as well as children or pet related expenses;

4. Entertainment expenses, including theatre, movies (either in-room or at the theatre), Sporting events (including gym, massage, and/or golf related expenses), or other Cultural events;

5. In-town mileage;

6. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline;
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5 7. Alcohol and personal bar expenses;

8. Personal losses incurred while on City business. Any questions regarding the propriety of a particular type of expense should be resolved by the City Council before the expense is incurred.

REPORTING REQUIREMENTS:

1. Report Forms. Officials should submit their expense reports within thirty (30) calendar days after the end of the month in which the expense was incurred. Each report must be accompanied by receipts that are itemized and clearly identify vendor, date, amount and nature of expense (credit card statements alone are not sufficient). In no event may a request for reimbursement be submitted later than the end of the fiscal year in which the expense was incurred, unless exigent circumstances exist.

2. Reports to City Council, Board, or Commission. Each official will briefly report on outside meetings and events attended at public expense at the next regular meeting of the official’s legislative body. If multiple officials attended the same meeting, a joint report may be made.

3. No Show Policy for Official Events and Reimbursement. a. A “no show” occurs when an official fails to attend a scheduled event.

Reimbursement will not be provided by the City for a no show occurrence. b. Officials should provide at least three (3) working days advance notice if they need to cancel a previously requested reservation.
c. If an official fails to attend a reserved event without providing the required notice, they may be required to reimburse the City the total cost for the reservation. d. Exceptions to the no show policy may be considered for officials who can provide valid documentation of unforeseen circumstances or emergencies that prevented them from attending the event.
e. In the event of a no show, the official will notify the City Manager or his/her designee of the missed event and any associated charges within one (1) day. f. If an official/City Council member has multiple unexcused no shows, the City Council, in its discretion, may prohibit said official/City Council member from attending future events at City’s expense.
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6 REIMBURSEMENT EXCLUSION FOR EXPENSES PAID BY THIRD PARTIES.

If an official is appointed by the City Council to serve on or represent the City at another entity (including joint powers authorities, commissions, boards, or non-city organizations) then the other entity is expected to be the primary source of reimbursement for expenses. If the official is not reimbursed by that entity for eligible expenses incurred in connection with official City business and they were appointed to that entity by the City Council, the official may request reimbursement from the City. The official will be reimbursed subject to approval by City Council.

Notwithstanding anything to the contrary in this policy, the following provisions govern the reimbursement of expenses in circumstances involving third-party payments:

1. Non-Reimbursable Expenses Covered by Third Parties. Officials shall not be entitled to reimbursement from the City for any expenses that have been, or will be, reimbursed by a third party. This includes but is not limited to reimbursements from other public agencies, private organizations, conference or training sponsors, or any other non-City entity. Reimbursement by third parties may trigger the provision of the Political Reform Act including, but not limited to, limitations on the type and amount of reimbursements and/or reporting requirements.

2. No Duplicate Reimbursements. If an official receives reimbursement for an expense from a third party, the official shall not seek or accept reimbursement for the same expense from the City. It is the responsibility of the official to disclose any third-party reimbursement received or anticipated at the time of submitting the City's reimbursement request.

3. Priority of Reimbursement. In the event an official receives reimbursement from the City prior to receiving funds from a third party, the official must notify the City and return the City's reimbursement within ten (10) business days of receiving funds from the third party.

4. Certification Requirement. As part of the reimbursement request process, officials shall certify that the expenses claimed have not been reimbursed, and are not eligible for reimbursement, from any other source.

5. Third-Party Appointments. When an official is appointed to serve on a committee, board, or other body by an external agency or organization, the official shall seek reimbursement for expenses directly from that appointing agency or organization. The City shall not reimburse expenses for service on such committees, boards, or bodies unless the appointment is made by the City Council.

TRAVEL AUTHORIZATION PROCEDURES:
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7 1. Officialsshall not commit City funds until travel is approved in accordance with this policy.

Officials are encouraged to utilize virtual attendance options in lieu of travel to minimize costs.

2. City Staff should inform officials and City Council members of any applicable deadlines in writing (including by email) to allow timely registration for events or related activities. The City may, at its option and discretion, directly pay for registration, lodging, or transportation, or provide a travel advance Any unused advanced funds must be returned to the City within ten (10) business days.
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8 EXHIBIT “A”

LIST OF PRE-APPROVED COMMUNITY, REGIONAL, STATE-WIDE, OR NATIONAL

EVENTS FOR WHICH COUNCIL MEMBERS SHALL BE REIMBURSED FOR ACTUAL

AND NECESSARY EXPENSES

1. Banning Annual State of the City Meeting

2. Beaumont Annual State of the City Meeting

3. Banning Chamber of Commerce Annual Installation of Officers Meeting

4. Beaumont Chamber of Commerce Annual Installation of Officers Meeting

5. Banning Chamber Monthly Breakfast

6. Beaumont Chamber Monthly Breakfast

7. WRCOG Annual General Assembly

8. Building Industry Association – Riverside County Chapter (Inland Empire Events)

9. League of California Cities Annual Conference and Expo

10. League of California Cities Annual City Leader Summit (this event is limited to two (2) council members to be selected annually by the City Council in an open public meeting)

11. League of California Cities Mayors and Council Members Academy

12. League of California Cities Annual Planning Commissioners Academy (this event shall be limited to Planning Commission members)

13. Annual Washington D.C. Meetings with City Lobbyist and National Elected Representatives (this event is limited to two (2) council members to be selected annually by the City Council in an open public meeting)

14. International Conference of Shopping Centers AKA ICSC Annual Conference (this event is limited to two (2) council members to be selected annually by the City Council in an open public meeting)
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Art Vela, Director of Public Works
MEETING DATE: March 24, 2026
SUBJECT: Consideration of Resolution 2026-51, Approving a Professional Services Agreement with Urban Futures, Inc to Provide Municipal Advisory Services in an Amount Not-to-Exceed $100,000 per Year
RECOMMENDATION:

Adopt Resolution 2026-51
BACKGROUND:

The City of Banning requires the services of a qualified Municipal Advisor to assist the City with a variety of financial advisory services including financial planning, capital financing strategies, debt issuance support, and long-term fiscal planning. Municipal advisory services provide the City with independent professional guidance related to the municipal bond market, financing strategies, credit rating considerations, and other financial policy issues.

On January 12, 2026, the City issued a Request for Proposals (RFP) for Municipal Advisory Services, which was publicly advertised through the OpenGov procurement platform. The purpose of the RFP was to solicit proposals from qualified firms capable of providing comprehensive municipal advisory services to the City on an ongoing basis.

The RFP sought services including:

Financial planning and analysis
Debt issuance and capital market advisory services
Credit rating surveillance and strategy
Continuing disclosure compliance
Evaluation of financing strategies for capital projects Advisory support related to revenue measures and long-term fiscal planning As a result of the RFP process, two proposals were received and subsequently evaluated by City staff based on the evaluation criteria outlined in the RFP. The criteria included qualifications, pricing, experience with similar projects, professional references, approach and methodology, and value-added services.

Following the evaluation process, the proposals received the following overall scores:

Urban Futures, Inc. (UFI): 96.33 points
Columbia Capital Management, LLC: 77.33 points
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Based on the evaluation results, Urban Futures, Inc. received the highest overall score and was determined to be the most qualified firm to provide municipal advisory services to the City.

Urban Futures, Inc. has extensive experience advising California public agencies on municipal finance matters including debt issuance, financial forecasting, fiscal recovery strategies, capital financing, and credit rating support. Staff believes that UFI’s experience and approach will provide valuable support to the City as it continues to address its financial priorities and long-term fiscal sustainability.

Resolution 2025-161
On November 12, 2025, the City Council adopted Resolution 2025-161 approving a Professional Services Agreement with Urban Futures, Inc. to provide critical financial advisory services during a period of significant fiscal challenges. At that time, the City was short-staffed and required specialized expertise to assist with financial forecasting, budgeting, and development of a financial stability plan. Due to the urgent need to stabilize the City’s financial condition and the firm’s familiarity with the City’s circumstances, the agreement was approved under the emergency exception to the City’s procurement policy. Urban Futures, Inc., led by Mr. Michael Busch, has since provided ongoing support to guide the City’s financial recovery and long-term sustainability efforts. This Professional Services Agreement was approved for a one-year term and not-to-exceed $100,000.

JUSTIFICATION:

Municipal advisory services are important to assist the City with financial planning, evaluating financing strategies, and navigating the municipal bond market. An experienced Municipal Advisor provides independent, fiduciary advice related to debt issuance, capital financing, and long-term fiscal planning, helping the City make informed financial decisions.

Following the competitive RFP process, Urban Futures, Inc. received the highest overall evaluation score and demonstrated strong experience providing municipal advisory services to California public agencies.

Based on the evaluation results and the firm’s qualifications and experience, staff recommends awarding the agreement to Urban Futures, Inc..

Strategic Plan – “Banning 2030 – Designing our Future TODAY” The services to be provided will assist the City in meeting the following top priority initiative:

Strategic Goal 4 – Maintaining Effective and Efficient Services Develop and Implement Banning’s Financial Workout plan to Sustainability FISCAL IMPACT:

The proposed agreement authorizes up to $300,000 for an initial three-year term for general financial advisory services. The services will be funded out of Fund 705 (Central Services), Account 705-4500- 412.33-11 (Professional Services). An appropriation in the amount of $300,000 to the account is required to fund these services.

Future amendments for transaction-specific advisory services associated with bond issuances or other financings will be presented to the City Council for approval as needed.

ATTACHMENTS:

1. Resolution_2026-51.docx

2. AGREEMENT FOR PROFESSIONAL SERVICES.pdf

3. UFI_Proposal_to_Banning_vF.pdf

4. UFI_Pricing_Proposal_vF.pdf

5. Resolution 2025-161.pdf
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Resolution 2026-51

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RESOLUTION 2026-51

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

AWARDING A PROFESSIONAL SERVICES AGREEMENT WITH URBAN FUTURES, INC TO PROVIDE MUNICIPAL ADVISORY SERVICES IN AN AMOUNT NOT-TO-EXCEED $300,000

FOR A THREE-YEAR TERM
WHEREAS, the City of Banning requires the services of a qualified Municipal Advisor to assist the City with financial planning, capital financing strategies, debt issuance advisory services, and related financial consulting; and
WHEREAS, on January 12, 2026, the City issued a Request for Proposals for Municipal Advisory Services through the OpenGov procurement platform; and WHEREAS, as a result of the Request for Proposals process, two proposals were received and evaluated based on the criteria identified in the Request for Proposals; and WHEREAS, the evaluation results resulted in the following overall scores: Urban Futures, Inc. (96.33) and Columbia Capital Management, LLC (77.33); and WHEREAS, Urban Futures, Inc. received the highest overall score and was determined to be the most qualified firm to provide municipal advisory services to the City; and WHEREAS, the proposed agreement provides for general as-needed financial advisory services in an amount not-to-exceed $300,000 for an initial term of three (3) years with the option to renew for two (2) additional one-year terms, for a maximum agreement term of five (5) years; and
WHEREAS, future amendments to add funding for specific financing transactions will be brought before the City Council for approval; and
WHEREAS, the Professionals Service Contract will be funded by Fund 705 (Central Services), Account 705-4500-412.33-11 (Professional Services) and requires an appropriation in the amount of $300,000.

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 Urban Futures, Inc. for Municipal Advisory Services in the amount of $300,000 for general as-needed financial advisory services for a three-year term.

SECTION 2. The City Council authorizes the City Manager, or designee, to execute the Professional Services Agreement with Urban Futures, Inc., and to make non-substantive changes consistent with the intent of this Resolution.

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

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 370
Resolution 2026-51

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

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
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Resolution 2026-51

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CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-51, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 24th day of March 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
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Resolution 2026-51

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EXHIBIT A
Professional Services Agreement with Urban Futures, Inc. 373
1 AGREEMENT FOR PROFESSIONAL SERVICES (C01259)

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 Urban Futures, Inc., a California Corporation whose address is 1470 Maria Creek Lane, Ste 315, Walnut Creek, CA 94596 (“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: Municipal Advisory 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 three (3) years, unless extended for up to two (2) additional one (1) year terms upon approval of the City Council of the City.
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2 2. Services to be Performed. Contractor agrees to provide the services (“Services”) as follows: Comprehensive Financial Planning & Analysis Services, Credit Rating Surveillance, Advise on Market Conditions, Debt Issuance & Continuing Disclosure Service, and Etc. in accordance with Exhibit “A”. All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. Contractor designates Michael Busch, Chief Strategy Officer 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 Three Hundred Thousand Dollars and Zero Cents ($300,000.00) over the course of the three (3) year term.

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;
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3 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 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.
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4 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.

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 377
5 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.

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 378
6 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 $1,000,000 per occurrence and $2,000,000 in the aggregate; Contractor agrees to have its insurer 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 _X_ /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 379
7 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):
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 380
8 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.

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. 381
9 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 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.
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10 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.

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 383
11 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.

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.
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12 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.

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 385
13 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 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. 386
14 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.

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]
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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 URBAN FUTURES, INC.

By:_______________________ By:_______________________
Print Print
Name: ____________________ Name: ____________________
Date: _____________________ Date: _____________________ ATTEST:

By: ______________________
Date: _________
APPROVED AS TO FORM:

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

PROPOSAL
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28 EXHIBIT “B”

CERTIFICATES OF INSURANCE
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City of Banning
Proposal for
Municipal Advisory Services
RFP-25-123
Urban Futures, Inc.

February 12, 2026
Public Finance | Public Management |Analytics & Compliance 402
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 Table of Contents
A. Statement of Understanding and Approach............................................................................................................1 B. Company Information...............................................................................................................................................8 C. Company Personnel................................................................................................................................................10 D. Disclosure................................................................................................................................................................11 E. Experience and References.....................................................................................................................................12 V.C Price Proposal* .....................................................................................................................................................16 V.D Value Added Services...........................................................................................................................................16 V.E Evidence of Insurance*.........................................................................................................................................16 Appendix A: Professional Resumes – UFI Team Members........................................................................................17 Appendix B: Regulatory Disclosure ............................................................................................................................22 403
1 UFI Financial Solutions
February 12, 2026
Angelo Heidt
99 E. Ramsey St
PO Box 998
Banning, CA 92220
[email protected]
Re: Urban Futures, Inc. – Request for Proposals - Municipal Financial Advisory Services Dear Mr. Heidt:

We are pleased to submit this proposal to the City of Banning (the “City”) for the purpose of providing objective and independent municipal financial advisory services. Urban Futures, Inc. (“UFI”) is a full-service financial planning and municipal advisory firm that has been providing innovative, high-quality solutions to California public agencies since 1972.

For over 20 years, UFI has maintained a deep partnership with the City, serving as the municipal advisor on over $137 million of the City and Successor Agency’s bond issues during that time. No other firm brings the same depth of knowledge or familiarity with your financial landscape.

As the City now requests an expanded level of services, UFI is uniquely positioned to respond. Our recent engagement to provide the City with financial forecasting services is intended to serve as the analytical foundation for the City’s fiscal recovery and long-term financial planning. We have the comprehensive capabilities to address all aspects of this expanded scope beyond traditional advisory work. We understand the City’s goals, challenges, and operational priorities. Looking ahead, our commitment to the City remains the same: to serve as an extension of City staff, deliver sound financial strategies, and support the City’s long-term vision.

The following is a summary of our distinguishing expertise and services:
• #1 Ranked California Municipal Advisor: UFI has been a leader in providing financial advisory services since 1972 to over 300 public agencies throughout California. UFI is ranked as the top financial advisory firm in California over the last 5-year period as measured by the number of transactions completed1. UFI is in the market virtually every week, advising on more bond sales than any other firm. • Relevant and Local Experience: Our experience with the City as well as others in Riverside County gives us a firm grasp on the local economic landscape as well as the unique challenges and opportunities faced by Banning. We regularly engage with cities in the County to advise on public facilities end enterprise fund financings, often bridging municipal advisory activities and analysis with in-house consulting engagements leading to successful economic development.
• Experienced Personnel: The team assigned to the City includes professionals with deep expertise in special general fund, tax allocation, and enterprise fund credits, credit analysis, and pricing execution for bond sales. UFI’s municipal advisors and consultants include a former city finance director/assistant city manager, special district general counsel, public finance investment bankers, and a rating agency analyst, which allows us to offer the City a comprehensive blend of qualifications and resources. With advisors based in Southern California, we are available to meet with the City as often as is necessary to complete upcoming assignments.
1 Source: SDC Platinum (Thomson Reuters)
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2 UFI Financial Solutions
• Technical Competence: Providing our clients with responsive and high-quality analytical services is central to our corporate mission. Our advisors have extensive financial modeling and credit analysis experience directly related to the types of debt issued by the City. In addition, UFI has extensive experience advocating for our clients through preparing best-in-class rating presentations. We believe this will be critical as the City looks to restore its credit standing with Standard & Poor’s on the electric utility. Our priority is to help the City execute future financings at the lowest possible cost while maintaining its strong credit position.

Working with the City is very important to us. UFI is committed to dedicating as much of the firm’s resources to the City as is necessary, and to completing assignments in a comprehensive and timely fashion. We submit this proposal with the intent to perform the requested services and confirm that we have reviewed all terms and conditions of the RFP and sample agreement. Thank you very much for your consideration.

Sincerely,
Michael Busch, Chief Strategy Officer
1470 Maria Creek Lane, Suite 315
Walnut Creek, CA 94596
Office: (714) 923-3541
E-mail: [email protected]
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 1 A. Statement of Understanding and Approach
This section must demonstrate an understanding of the Services. It should describe the general approach, organization and staffing required for the Services requested. If necessary, preliminary investigations, due diligence, and research shall be discussed in this section. Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, cost-effective operations or increased performance capabilities. In addition, the City will consider proposals that offer alternative service delivery means and methods for the services desired.

UNDERSTANDING OF SCOPE OF SERVICES
The City is seeking a municipal advisor to provide an expanded level of support across five key areas: (1) General Services, (2) Financial Planning, (3) Debt Management and Financial Implementation, (4) Ballot Initiatives, and (5) Value Added Services.

We understand the City is currently navigating a well-documented fiscal crisis—one marked by years of structural imbalances, fund deficits, and internal control weaknesses. In addition, the City’s electric utility bonds were recently downgraded to sub-investment grade and put on negative outlook, citing improper financial controls and negative unrestricted cash balances.

UFI is uniquely positioned to help the City navigate this environment. We are assigning senior municipal advisors from our Public Finance Group and Public Management Group, who have an intimate knowledge of the City’s current fiscal challenges. In 2025, the firm was engaged by the City to provide a comprehensive General Fund Budget Forecast Model, which will serve as the analytical foundation for the City’s fiscal recovery and long-term financial planning. We are enthusiastic about the opportunity to build on this work and support the City in implementing the next phase of its financial strategy.

At this pivotal time, we stand ready to assist the City in addressing fiscal challenges, strengthening its credit profile, and structuring financings that support long-term financial sustainability. Our strategic approach is backed by over 20 years of history working with the City, having served as municipal advisor on over $137 million of City and Successor Agency bond issues during that time. Our proposal reflects a comprehensive, integrated approach to the full scope of services required, and we are committing the full resources of our firm to support the City’s financings, financial forecasting, strategic initiatives, and other priority assignments. Our service model is designed to deliver efficient, cost-effective solutions while maintaining the highest standard of professional advisory support.

APPROACH TO GENERAL & FINANCIAL PLANNING SERVICES
On all engagements, UFI takes the time to perform extensive due diligence, research, and preliminary analyses in order to understand the goals and priorities of our clients, as well as the economic and political challenges and opportunities our clients face in achieving those goals. Our first task as part of the financial planning service involves a complete assessment of the client’s needs and financial constraints. Where appropriate and requested by the City, this preliminary work may include preparation of a detailed finance plan for the capital project(s) involved in the financing, a preliminary credit assessment using rating agency criteria, and an evaluation of all financing mechanisms available to the City, among other activities.

These services include, but are not limited to, the following:
• Monitor the City’s debt portfolio and advise on refunding and other opportunities that would benefit the City
• Serve as a resource on outstanding debt obligations, offering real-time support to staff on reporting, compliance, and structuring questions
• Evaluate new money financing options, including comparative analyses of various debt instruments, terms, and repayment structures
• Prepare capital funding analyses, including financing options as well as options that do not include the sale 406
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 2 of debt
• Support the formation of CFDs and related special district financing mechanisms to fund new development or infrastructure
• Advise the City on economic development opportunities • Project delivery analysis and assistance
• Assist with financial policy development
• Schedule meetings or calls with staff to request all necessary data and discuss the needs and goals of the City.
• Undertake a funding analysis for the identified capital project(s) and prepare a finance plan. • Identify and assist with strategies to mitigate risks of public facilities projects. • Analyze existing outstanding debt to determine parity test requirements, feasibility of refunding certain outstanding series of Bonds, and debt affordability.
• Analyze insured values for lease revenue transactions. • Review pension liabilities and existing policies.
• Assist with comprehensive credit analysis to anticipate rating outcomes, preferred structures, and interest rate scales.
• Facilitate communication with credit rating agencies regarding outstanding bonds. • Independently structure the financing and present results to the City.

APPROACH TO DEBT MANAGEMENT AND IMPLEMENTATION
Managing the Financing Process and Engaging the Team
If financing targets are best achieved through a bond issuance, UFI will immediately initiate development of a financing schedule and the implementation of the agreed-upon strategy. UFI’s scope of work during the debt structuring and issuance process includes, but is not limited to, the following:
• Determine sizing and structure of the debt issue and verify cash flow analyses provided by underwriters. • Evaluate the particular financing being contemplated and provide recommendations regarding the method of sale. UFI has significant experience with both negotiated and competitive public offerings, both of which could be considered for this financing. We will work with the City to carefully evaluate each of the financing methods to determine the appropriate method that best meets the City’s objectives. • Assist in the selection of service providers, including, but not limited to, underwriter, bond counsel, disclosure counsel, appraiser, or trustee.
• Plan and coordinate presentations to rating agencies; advocate for the City throughout the process and provide a credit narrative that supports a favorable outcome. • Call, arrange, and lead working group meetings as appropriate. • Develop and maintain a detailed financing timetable.
• Monitor financing process and coordinate all activities of the financing team. • Review all legal and financing documents on behalf of the City. • Provide support to the City relating to financing documents, including preparation of staff reports and presentations.

Rating Agency Strategy: The City’s electric utility has implemented recent rate increases to restore its credit standing with S&P to investment-grade status. Accordingly, the credit rating process will be a critical component of any electric utility financing. As an active municipal advisor on California utility financings, UFI maintains an extensive working knowledge of the issues facing California utilities and how rating agencies view the issues. UFI team members assigned to the City excel at credit and technical analysis, as well as putting together high-quality presentations that have achieved positive rating results. We will work proactively with staff to prepare materials, frame the credit narrative, and advocate effectively on the City’s behalf to help achieve the strongest possible rating outcome. With respect to the electric utility, we intend to focus our messaging on the City’s recent rate increases and efforts to bring audited financials current.
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 3 Pricing and Closing Execution: UFI offers extensive expertise in the pricing and marketing of municipal securities.

Our team includes former public finance investment bankers with direct experience underwriting and distributing municipal bonds, allowing us to provide informed and strategic guidance throughout the pricing process. Generally, our approach is to recommend that the underwriter employ an aggressive pricing strategy (aiming for approximately 2 times oversubscription) to achieve the best possible pricing for our clients. We will work to ensure the best possible result for the City, without risk of diminishing investor participation, and provide post issuance analysis. UFI’s scope of work during pricing and closing includes the following tasks:
• Monitor market conditions and advise on the optimal timing of the bond sale. • Track and analyze comparable transactions to inform pricing and strategy. • Evaluate alternative couponing and redemption strategies. • Assess the potential benefits of bond insurance.
• Prepare a summary of cost of issuance.
• For a competitive sale: prepare and market bid documents, advise on timing, and evaluate bids. • For a negotiated sale: provide guidance on retail order periods and institutional marketing, analyze comparable bonds and secondary market data, verify cash flows, and serve as pricing advisor. • Coordinate all aspects of the bond closing process.

Related Value-Added Services
• Vehicle/Equipment Leases - The assigned team has extensive experience working with lenders in this space and has completed recent assignments for the Cities of Fullerton, Monterey Park and Coachella involving equipment leases. Our expertise includes evaluating lender proposals, conducting credit analysis, managing lender RFP processes, and advising on a range of lease structures, including master lease programs. We are well‑positioned to assist the City with all aspects of lease implementation. • Stakeholder Education – UFI has significant experience providing municipal finance education—such as Bonds 101, debt policy fundamentals, and capital planning workshops—to City staff, City Councils, and community stakeholders. In addition, we are equipped to present financial forecast results and other complex analyses in clear, accessible formats to help policymakers and stakeholders understand the City’s fiscal trajectory and options moving forward.
• Pension/OPEB: UFI has an in-depth understanding of pension liabilities, pension obligation bonds, and CalPERS’ administrative processes. As a result, the firm can advise on a variety of pension-related issues (not just POBs), and can provide consultation to the City regarding Section 115 Trusts, stabilization reserves, and pension policy development.

BALLOT MEASURES
UFI works with a number of cities across the State that have successfully implemented transaction and use taxes, such as the Cities of Pomona, Menifee and Lake Elsinore. In addition, we are currently working with the City of Beaumont as the City evaluates a new sales tax measure to fund public facility improvements, including a new police station. A locally controlled sales tax provides cities with a stable source of unrestricted General Fund revenue, which can be used to address critical needs such as public safety, infrastructure, and core services. UFI can assist the City with an evaluation of the sales tax and evaluate different revenue structures, including revenue projections based on historical taxable sales. In addition, we can model financing scenarios that demonstrate how projected sales tax revenues could be leveraged to support capital investments through the issuance of lease revenue bonds or similar financing mechanisms. We recently provided such analysis for the City of Pomona, helping them assess the impact of a new local sales tax and align the structure with long-term capital planning goals.

VALUE-ADDED SERVICES

FINANCIAL FORECASTING
As of June 30, 2024, the City reported a negative unassigned General Fund balance of approximately $7.2 million, significant deficits within its Internal Service Funds, and material reliance on interfund cash borrowing to sustain operations. Independent auditors formally concluded that the City was “currently in a severe financial crisis,” citing structural operating deficits, impaired liquidity, and multiple material weaknesses in financial reporting, cost 408
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 4 allocation, and internal controls. These findings were presented to the City Council alongside direction to develop a comprehensive “workout plan” to restore fiscal sustainability.

In 2025, UFI was engaged by the City to prepare a comprehensive General Fund Budget Forecast Model to serve as the analytical foundation for the City’s fiscal recovery and long-term financial planning. The model is being developed as a decision-support tool for City management and the City Council to:
• Quantify the City’s true structural General Fund deficit; • Separate one-time solutions from ongoing structural imbalances; • Evaluate the General Fund impact of Internal Service Fund (ISF) corrections; • Assess the feasibility and timing of recovery strategies over a multi-year horizon.

UFI’s General Fund Budget Forecast Model incorporates a dual-lookback and look-forward framework, integrating historical financial performance with forward-looking policy and operational assumptions.

Historical Analysis (5–10 Years):
• Review of audited actuals to identify long-term revenue and expenditure trends; • Identification of recurring versus one-time revenues (e.g., ARPA, fund closures); • Analysis of historical cost allocation practices and under-recovery of ISF costs; • Reconstruction of baseline General Fund operating performance absent temporary fixes.

Forward-Looking Forecast (10 Years):
• Multi-year General Fund projections under current service levels; • Integration of full ISF cost recovery to reflect true General Fund obligations; • Sensitivity analysis of key cost drivers (personnel, benefits, risk management); • Scenario modeling to evaluate policy options, expenditure reductions, and revenue strategies.

The model is designed to be transparent, assumption-driven, and iterative, allowing City staff and elected officials to test alternative fiscal strategies and understand tradeoffs over time.

Key Preliminary Findings
• The General Fund exhibits a minimum structural deficit of approximately $2.8 million annually, exclusive of ISF under-allocations;
• Once full ISF cost recovery is reflected, the true General Fund operating gap is likely between $3 million and $6 million per year, consistent with audit and staff report conclusions • Prior reliance on one-time revenues masked underlying imbalances but did not resolve them; • Long-term sustainability will require a coordinated fiscal workout plan rather than incremental or short-term fixes.

Deliverables and Use
A draft model is scheduled for delivery to the City in mid-February, aligned with the City’s broader fiscal recovery timeline. The model will serve as staff-usable General Fund forecast model accompanied by clear documentation and policy-level outputs suitable for Council workshops, closed-session strategy discussions, and public financial planning.

The model is intended to serve as the core analytical platform supporting:
• Development of a formal General Fund workout plan;
• Evaluation of cost allocation and ISF restructuring;
• Cash flow stabilization and interfund loan repayment strategies; • Ongoing multi-year financial monitoring and updates.

Value to the City
This engagement provides the City with more than a forecast—it establishes a fact-based framework for restoring fiscal discipline, rebuilding transparency, and supporting defensible policy decisions at a critical moment for the organization.
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 5 STRATEGIC PLAN IMPLEMENTATION AND FISCAL WORK-OUTS
Our team has direct experience assisting public agencies facing structural fiscal imbalance, organizational transition, and operational constraints. We have supported the development and implementation of strategic plans that move beyond high-level policy direction to measurable action plans, performance benchmarks, and accountable timelines.

In fiscally stressed environments, we have designed and implemented work-out programs that integrate multi-year financial forecasting, expenditure restructuring, revenue stabilization strategies, debt and liquidity analysis, and labor and service delivery alignment. Our approach emphasizes disciplined execution, transparent reporting to governing bodies, and ongoing recalibration as conditions evolve—ensuring that adopted strategies translate into sustained fiscal and operational stability.

MUNICIPAL AIRPORT REDEVELOPMENT STRATEGY & NEGOTIATIONS The City of Banning owns and operates a 250-acre municipal airport that has historically generated limited economic return and required ongoing General Fund support. The FAA Reauthorization Act of 2024 released the City from longstanding federal aviation obligations, creating a rare opportunity to evaluate closure and redevelopment of the airport property. This legislative change positioned the site as a potential long-term economic driver aligned with the City’s fiscal recovery objectives.

UFI is serving as the project manager for the potential redevelopment and disposition of the airport. Our engagement focuses on maximizing land value, structuring a transaction that delivers measurable public benefit, and aligning negotiations with the City’s broader fiscal stabilization strategy. This work is integrated with the City’s financial “workout” efforts and coordinated with staff, legal counsel, environmental consultants, and an independent appraiser.

Key responsibilities include:
• Evaluating disposition alternatives, including long-term ground lease, fee simple sale, and hybrid development structures.
• Developing comparative financial models to assess value realization, timing, control, and risk allocation. • Coordinating with independent appraisal experts to determine highest and best use and market-supported valuation.
• Leading financial analysis and negotiation strategy in discussions with Hillwood, a national industrial and logistics developer.
• Advising the City Council in closed session on transaction structure, governance protections, and fiscal implications.
• Ensuring compliance with the Surplus Land Act, environmental review requirements, and entitlement sequencing.

The airport represents one of the largest real estate assets under City control and has the potential to materially influence Banning’s long-term fiscal trajectory. While redevelopment alone will not eliminate structural deficits, a disciplined and well-structured transaction can provide liquidity, recurring revenue capacity, and economic momentum necessary to support service sustainability. UFI’s advisory approach emphasizes:
• Maximizing long-term economic value;
• Protecting public policy interests and governance controls; • Enhancing transparency and public trust; and
• Aligning real estate strategy with comprehensive fiscal stabilization efforts.

POST-ISSUANCE COMPLIANCE SERVICES
UFI provides clients with a full suite of services, tailored to the reporting requirements of each covered security, debt, loan, or other outstanding obligation. We have been providing these services since 1994, when the reporting requirements were first mandated. To ensure we deliver accurate and timely services, UFI has developed a proprietary, in-house database and tracking system. The details of our client’s issuances and debt obligations are 410
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 6 entered into the database (applicable disclosure requirements, filings, deadlines, etc.) enabling us to work closely with clients to keep them in compliance. Our proposed continuing disclosure and post-issuance compliance services include the following:
• Annual Disclosure Reporting: UFI will annually prepare and post the required Continuing Disclosure Annual Report (CDAR) on the MSRB's Electronic Municipal Market Access (EMMA) data portal. Each year we will send a request for client-provided information and financial documents, assemble required third-party data, update the corresponding analytical tables, and review the documents necessary to ensure the report complies with the requirements and deadlines of the applicable Continuing Disclosure Certificate or Agreement. We will provide the City a copy of the disclosure report to review before filing. After filing the disclosure report and associated financial documents on EMMA, we will transmit a copy of the report and the electronic posting confirmation to the City.
• Material Event Filings: For Listed Events in the applicable Continuing Disclosure Certificate or Agreement, UFI will prepare and post the requisite Material Event Notice on the EMMA data portal. To ensure notice of material events are posted in a timely manner, we work closely with trustees and clients to receive updated information, monitor Bloomberg’s market data for various event alerts, and stay up-to-date on any changes in SEC/MSRB regulations. Please note, the City is required to timely report to UFI the occurrence of Listed Events of which the City is made aware. • Annual CDIAC Filings: For all debt obligations issued after January 21, 2017, and for pre-2017 debt obligations that used a Marks-Roos financing authority, UFI will annually assemble the required data and file the Annual Debt Transparency Reports and/or Marks-Roos Yearly Fiscal Status Reports with the California Debt and Investment Advisory Commission (CDIAC). If required, we will request through the City information from the trustee on bond fund balances. We have developed expertise on the reporting requirements and tracking of affiliated filings using CDIAC’s online reporting system.

Implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.

Project Management Methods & Controls
UFI employs a number of project control methods to ensure financings are executed efficiently and in line with client goals and desired timelines. Throughout the process, we keep our clients informed and involved in key project decisions. The following are some examples of the control methods used to execute financings:
• Schedule Management: When developing a financing schedule, we typically work backward from the desired closing date, identifying key milestones along the way to ensure that projects are delivered on time and in line with client needs.
• Transaction Monitoring: Throughout the financing, we will monitor the process, track document distribution and approvals.
• Market Volatility: UFI actively monitors market conditions, interest rate movements, and economic developments. When market dynamics shift, we provide real-time guidance and may recommend calendar adjustments to optimize pricing and execution for our clients. • Fee Negotiations: For negotiated transactions, we conduct detailed underwriter fee surveys, comparing proposed compensation against weighted averages for comparable transactions. In addition, we regularly bid out other services for bond counsel, trustee and other consultants, ensuring our clients receive fair and competitive pricing.
• Stakeholder Engagement: UFI has a depth of experience presenting to and responding to questions from City Councils, Committees, Tax Associations, and other stakeholder groups regarding capital planning, bond issuance, and other policy issues. Where appropriate and as requested, UFI is able to present to the City Council or conduct special workshops, which can be an ideal setting for Council to learn, ask key questions, and formulate opinions.
• MSRB Compliance: The firm maintains three Series 54 principals, who are responsible for overseeing the 411
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Proposal for Municipal Advisory Services February 12, 2026 7 municipal advisory activities to ensure compliance with MSRB rules and other applicable regulations.

Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

Throughout the term of the agreement, UFI will provide consistent staffing by a senior team of highly qualified municipal advisors. For each financing engagement, a minimum of two municipal advisors will be assigned to ensure both strategic oversight and day-to-day responsiveness. The core team will be supported by a broader bench of professionals with experience across all financing mechanisms utilized by the City, including enterprise revenue bonds, tax allocation bonds, and other public finance structures. This scalable staffing model ensures continuity, preserves institutional knowledge, and maintains a consistently high level of service, with staff continuity remaining a top priority for the City’s account.

Our depth of experience and staffing capacity allow us to deliver responsive, high-quality service across all areas of engagement. We remain committed to supporting the City with forward-looking, dependable, and strategic advisory services as it navigates both current initiatives and future challenges.

Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.

UFI is currently assisting the City with the preparation of a comprehensive financial forecast, with a draft expected by mid-February. In addition, we remain actively engaged on other consulting assignments, including development of a workout plan and the provision of strategic advisory services related to the municipal airport.

With respect to future financings, we have provided below a draft schedule for a typical public bond issuance, outlining key milestones and responsible parties. A public bond sale generally requires approximately three to four months to complete, while a private placement can typically be executed within 60 to 90 days. We understand that, prior to pursuing a financing, the City may require additional support as it works to bring its audits current. There may also be preliminary coordination with the rating agencies to address credit considerations. UFI is prepared to assist the City with these foundational steps to ensure it is well-positioned to access the market. Once the City is ready to proceed, we will work closely with staff to confirm objectives and tailor the financing structure and timeline accordingly.

Date Action Responsibility
Month 1
City Council meeting to approve financing team and proceeding with bond issuance City/UFI
Kick-Off Call/Meeting UFI
Draft Bond Documents and Prospectus UFI
Month 2
Send Credit Package to Rating Agency UFI/City
Revised Drafts of Documents and Rating Agency Credit Meeting All Submit Document Package for City Council approval Bond/Disclosure Counsel
Month 3
Premarket Prospectus to Investors UFI
Sell Bonds/Pricing Call (Lock In Interest Rates) All
Close Bonds and Receive Proceeds All
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 8 Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.

For each financing, we would request participation from required City staff on conference calls and to provide input on the financing schedule to ensure we are meeting the City’s goals. Additionally, we rely on the City’s guidance during preparation of the official statement to ensure it reflects the City’s disclosure practices and fully communicates all risks to investors. For the credit rating process, we request that the City Manager and other executive-level staff participate in all rating calls. The City’s assistance is also critical in responding to rating agency inquiries and providing supporting information, which may include:
• Financial forecasts, rate studies and policy documents • Future debt plans
• Identification of one-time revenues or transfers
• Details of significant development projects
• Information regarding cyber incidents and policies
• Any additional information necessary to support the City’s credit profile Our goal is to limit the City’s involvement to critical areas and to complete each financing in a manner that achieves the City’s goals without putting any unnecessary burden on City staff time.

Proposers are also requested to identify any City owned facilities or property which Proposer would propose to use or lease, purchase, or rent from the City in connection with the services to be performed, including information about the terms of any proposed lease, purchase or use of such equipment and facilities, and how this proposed structure affects the overall cost proposal to the City, if applicable.

UFI does not anticipate leasing, purchasing, renting, or otherwise using any City-owned facilities or property in connection with the performance of the proposed services. Accordingly, no City facilities or property are proposed for use, and there is no impact on the overall cost proposal to the City.

If, at the City’s discretion, lease revenue bond financing is pursued in the future, the identification of City-owned real property assets for collateral purposes would be undertaken as part of the financing structuring process. Any such assistance would be advisory in nature, would not involve use or occupancy of City property by UFI, and would not affect proposed fees.

B. Company Information
This section shall include contact person information, address and telephone number of the company main office and branch offices. Each Company shall identify itself as to the type of organizational entity (corporation, sole proprietorship, partnership, joint venture, etc.). Any supplemental information that Company believes may be pertinent to the selection process may be provided.

FIRM PROFILE
Urban Futures, Inc. (UFI) is a full service municipal advisory firm that provides innovative solutions and the highest level of service to California cities as well as park, utility, school, and healthcare districts. Since 1972, the firm has provided municipal advisory services to hundreds of California clients. UFI is registered as an independent municipal advisor with the MSRB and SEC and is structured as a C-Corporation.

UFI is a California-based, California-focused firm, combining a top-ranked municipal advisory practice with a financial consulting practice that has decades of public finance and executive-level government experience. Clients engage our firm to provide a range of services, including municipal advisory assignments for debt issuance across a multitude 413
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 9 of credits, capital funding analysis and preparation of finance plans, and non-municipal advisory services including post-issuance compliance financial forecasting, tax and revenue analysis, and development of fiscal strategies.

With headquarters in Walnut Creek, UFI has 20 employees, 16 of whom are Series-50 licensed municipal advisors, including 5 based in Southern California. In addition, UFI has three registered Series 54 Principals wo are responsible for
overseeing the municipal advisory activities of the firm to ensure compliance with MSRB rules and other applicable
regulations.

We believe our extensive experience with California public agencies, and strong knowledge of policy and legal issues as well market environments make us well-qualified to serve the District on this financing assignment. For the scope of services outlined in the RFP, professionals from the Public Finance Group and Public Management Group will be assigned to
provide municipal advisory, financial forecasting and other asneeded services to the City. In addition, UFI offers complementary services, including continuing disclosure services via our Compliance and Analytics Group. A description of the three main UFI divisions is provided below:

Public Finance Group (“PFG”) provides municipal advisory services, debt analysis, financing plans, and access to capital markets for various transaction types, including Enterprise Revenue Bonds, General Obligation Bonds, Tax Increment financings, Real Property Leases, Equipment Leases, Land Secured Bonds, and Pension Obligation Bonds, as well as Public Private Partnerships (P3), and Enhanced Infrastructure Financing Districts (EIFDs). We help staff evaluate and implement various financing options for priority projects (including bonds, revolving lines of credit, and State and Federal loan programs) and refinancing opportunities. This group includes Isom Advisors, a division of UFI, that specializes in education financing.

Public Management Group2(“PMG”) provides in-depth and insightful analysis of our client's financial history and current position, revenue and expense structures, long-term liabilities and risks, and fiscal outlook through the use of custom financial models, long-term forecasts, and fiscal assessment tools that integrate a wide variety of econometric, financial and demographic data with key metrics, benchmarks and best practices. More importantly, the diversity and experience of our PMG team enables UFI to transform the financial data and analysis into actionable management information, reports and plans that provide specific recommendations, and strategies supported by the analytics that help our clients achieve their goals and objectives.

Analytics and Compliance Group
2 provides services related to post-issuance compliance, including continuing disclosure, arbitrage rebate, and CDIAC reporting compliance. UFI’s Analytics & Compliance Group is dedicated to managing the comprehensive continuing disclosure and post-issuance compliance needs of our California clients.

UFI has been providing continuing disclosure services since 1994, when the reporting requirements were first mandated. We currently serve over 200 California cities, enterprise districts, utilities, successor agencies, joint powers and financing authorities, school districts, and charter schools, with extensive experience providing disclosure reporting for various credit types, legal structures, and methods of sale. o The Proposal shall identify any litigation, mediation, or arbitration, regarding the performance of any services similar to the Services, in which the Company has been involved in the past five (5) years. If the Services require a license or certification, the Proposal shall include any claims or disciplinary action taken against Company or any of Company’s key personnel within the past five years.
2 Non-Municipal Advisory Service
Urban Futures, Inc.
✓ 53 years in business
✓ 16 registered MAs
✓ 3 Series 54 Principals
✓ 100% focus on California public
agencies
✓ #1 ranked CA firm since 2017*

1470 Maria Creek Lane | Walnut Creek, CA 94596 |
Tel: (714) 923-3541
*Source: SDC Platinum, Equal to each manager
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 10 UFI has not had any legal events or disciplinary actions over the last five years or through its history. This is reflected on its Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The City may electronically access our firm’s most recent Form MA and each most recent Form MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html.

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC.

C. Company Personnel
This section shall contain names, contact numbers and description of experience, including licenses and/or certifications, of all key personnel who would be assigned to perform the Services. Members of the Company’s professional team (managers, contact person, etc.) should be identified by name, title, phone number, and description of the portion of work they will be assigned to perform under this Agreement. Also include major subcontractors (if any) and their degree of involvement in this program. If the Company is including any subcontractors, the Company shall identify how long the Company has worked with the subcontractor. o An affirmative statement should be included that the proposer and all assigned key professional staff are properly licensed to practice in California.

For the scope of services outlined in the RFP, Michael Busch will serve as the primary contact and will have overall responsibility for client service delivery; Branden Kfoury will serve as transaction manager, and will provide day-today coverage to the City team on municipal advisory assignments. James Morris, Managing Director, will lead financial forecasting and fiscal sustainability assignments as well as any post-issuance compliance work required by the City. In addition, Wing-See Fox, will oversee compliance matters and serve as the firm’s Series 54 Principal. The assigned team has extensive experience assisting cities in Southern California with the execution of general fund financings, enterprise fund financings, and other economic development assignments. All of the assigned personnel are licensed Series 50 municipal advisors, which includes an ability to practice in California. The firm does not intend to utilize any contractors during the term of our engagement.

UFI Team – Municipal Advisory Team Biographies
Municipal Advisory
Michael Busch, Chief Strategy Officer| (714) 923-3541
Role: Strategy/ Engagement Lead
Experience: Michael is a seasoned municipal executive and public finance professional with 30 years in public finance with the last 18 years at Urban Futures, Inc. (UFI), where he served as owner and Chief Executive Officer before becoming Chief Strategy Officer. His career includes senior leadership roles as Assistant City Manager, Finance Director, and founding member of the California Utility Executive Management Association (CUEMA) guiding public agencies with strategic fiscal management and operational leadership. Michael has advised cities, special districts, and nonprofits across California, helping them identify emerging trends, navigate complex policy issues, share best practices, and advance their missions through sound fiscal and economic strategies. Over his career, he has structured and managed more than $5 billion in tax-exempt and taxable debt, including lease revenue bonds/COPs, water and wastewater revenue bonds, pension obligation bonds, tax allocation bonds, CFD and assessment district bonds, and New Market Tax Credits. Recognized for linking prudent fiscal policies with economic development objectives, Michael has helped deliver numerous high-priority projects for communities statewide. His current and recent clients include the Cities of Beaumont, Pomona, Eastvale, Ontario, San Jacinto, Oceanside, Azusa/Azusa Light and Water, Lake Elsinore, and Menifee. 415
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 11 Branden Kfoury, Director | (714) 923-3560
Role: Transaction Manager/Day-to-day coverage
Office Location: Southern California
Experience: Branden Kfoury joined Urban Futures in 2019. He has worked on a variety of debt offerings for cities and special districts in California including, but not limited to utility revenue bonds, general obligation bonds, lease revenue bonds, CFD and assessment district bonds, as well as tax allocation bonds. Mr. Kfoury has extensive experience in all aspects of the bond financing process and excels at providing value-added debt structuring, credit and quantitative analysis. Since joining UFI, Mr. Kfoury has assisted with financing and consulting assignments for the Cities of Encinitas, Ontario, Oceanside, Azusa, Fullerton, Pasadena, and Menifee. Previously, Mr. Kfoury worked as a Senior Associate at Fieldman, Rolapp & Associates where he supported the firm’s city and special district clients. Mr. Kfoury has held prior roles in public finance investment banking, bond insurance, as well as in the technology industry. Mr. Kfoury passed the CFA Level I exam in May 2025.

PMG Group – Financial Forecasting/Consulting Services
James P. Morris, Managing Director
Role: PMG Financial Forecasting/Consulting Lead
Office Location: Southern California
Experience: Jim Morris has over twenty years of experience working in the fields of financial analysis, municipal law and public agency governance. He specializes in assisting cities and special districts in the areas of long-term forecasting, fiscal stabilization and financial sustainability planning. His recent engagements include engagements for the Cities of Alameda, Culver City, Pomona and South San Francisco. Prior to joining UFI, Jim worked with the City of San Bernardino where he was tasked with successfully winding-down San Bernardino’s former redevelopment agency, acknowledged as one of the most complex redevelopment dissolutions in the State of California. He was also a key advisor and strategist for the city’s bankruptcy team on various organizational and fiscal restructuring matters, and drafted the strategic plan component for San Bernardino’s municipal bankruptcy plan of adjustment.

Jim began his professional career as a public law attorney with Best & Krieger LLP, where he served as Assistant City Attorney for the cities of Corona and Ontario, and General Counsel for Western Municipal Water District. He is a graduate of Dartmouth College and received both a Juris Doctorate and Master of Urban Planning from UCLA.

Series 54 Representative
Wing-See Fox, Managing Director | (650) 503-1500
Role: Series 54 Principal
Office Location: Northern California
Experience: Wing-See Fox is the Series 54 Municipal Advisor Principal of UFI and leads the Public Finance Group. Wing-See has over a decade of experience in the fields of municipal advising, public finance, and municipal securities. She has worked on over $3 billion in municipal debt offerings for various credits, including general obligation bonds for cities and special districts. Wing-See focuses on California cities and excels in transaction management, credit analysis, developing funding alternatives, and structuring bond transactions to meet the needs of the issuer while maximizing credit strength and marketability to investors. Prior to joining UFI in 2017, Wing-See worked as a public finance investment banker. She is an active member of the Northern California Chapters of Women in Public Finance (WIP) and Asian Americans in Public Finance (AAPF) as well as CSMFO. Wing-See received an MBA from Columbia Business School, MSW from Columbia University School of Social Work, and BA from Stanford University. Her current and recent clients include the Cities of Victorville, Oceanside, Goleta, Watsonville, Cosumnes CSD, Atascadero, and Manteca.

D. Disclosure
Please disclose any and all past or current business and personal relationships with any current Banning elected official, appointed official, City employee, or family member of any current Banning elected official, appointed official, or City employee. Any past or current business relationship may not disqualify the firm from consideration. 416
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 12 UFI has previously been engaged by the City of Banning to provide municipal financial consulting services as well as municipal advisory services on prior bond issues. Other than prior professional engagements, UFI does not have any past, current or ongoing business or personal relationships with any current Banning elected official, appointed official, City employee, or any family member of such individuals.

E. Experience and References
The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.

Statement Regarding Experience Requirements
UFI confirms that it meets the minimum experience requirements in the Prerequisites section of the RFP. UFI has been in business for over 53 years, and each of the advisors assigned to the City’s account has over 10 years experience serving public agencies. Michael Busch, who will serve as the lead on this engagement has over 30 years experience. UFI has operated under the same business name since 1972, is legally registered to conduct municipal advisory business, and has never filed for bankruptcy in its history.

Relevant and Sector-Specific Experience. As the #1 ranked municipal advisory firm in California by number of deals (Source: SDC), UFI typically completes 100+ financings annually. In fact, since January 1, 2020, UFI has assisted California municipal clients in the completion of 674 bond transactions, more than any other firm. Our frequent market participation provides clients with real-time insight into financing structures, pricing, and market conditions.

As noted, no other municipal advisor firm has more experience advising the City of Banning than UFI. Over the past 23 years, we have served as the City’s municipal advisor on over $137 million of transactions across the City’s water, wastewater and electric credits as well as the Successor Agency TABs, as noted in the table below.

Beyond our work with the City, UFI is highly active in the surrounding region. Within Riverside County alone, we have executed over $750 million in financing transactions since 2018. UFI has developed a deep understanding of the regional economic landscape through our advisory roles with numerous neighboring jurisdictions, including the Cities of Beaumont, Menifee, Lake Elsinore, Eastvale, Coachella, and Desert Hot Springs, as illustrated on the map below. Most recently, we were engaged by the City of Murrieta as municipal advisor via a competitive RFP process.

In neighboring San Bernardino County, we work closely with the City of Ontario, assisting with the issuance of lease revenue bonds, water utility and CFD special tax financings. This extensive local experience directly informs our approach, enabling UFI to deliver tailored, value-added solutions that reflect each city’s unique priorities and fiscal landscape.

Issuer Bond Issue Sale Date Par Amount
Banning Utility Authority 2019 Ref RBs (Wastewater) 10/24/2019 $4,020,000 Successor Agency to the Banning RDA 2016 Ref TABs 9/22/2016 32,255,000 Banning Utility Authority 2015 Imp Ref RBs (Water) 8/19/2015 25,365,000 Banning Financing Authority 2015 Ref RBs (Electric) 8/19/2015 31,755,000 Banning Community RDA 2007 TABs 5/24/2007 29,965,000
Banning Community RDA 2003 Ref TABs 12/23/2003 14,095,000 Total $137,455,000
UFI's Municipal Advisory Experience with the City of Banning Rank Firm No. of
Issues
1 Urban Futures Inc 674
2 Fieldman Rolapp & Associates 528
3 KNN Public Finance 389
4 PFM Financial Advisors LLC 314
5 Public Resources Advisory Group 219
(January 1, 2020 - Present)
Top Municipal Advisors for CA Municipal Bonds
Source: SDC Platinum (Thomson Reuters)
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 13 Within the utilities sector, the assigned team has broad experience assisting issuers across California with water and wastewater-related financings, as well as strategic advisory assignments. Since January 1, 2020, UFI has served on municipal advisor on approximately $496 million of water and sewer transactions in the State (Source: CDIAC). We regularly engage with clients on new money and refunding transactions, and assist with issuers with capital planning, often participating in the rate study process to verify financing assumptions. Our current and recent utility financings include engagements for the Cities of Monterey Park, Beaumont, Victorville, Ontario, Santa Ana, Coachella, Culver City and Covina, Diablo Water District, Rowland Water District, Walnut Valley Water District, and the Water Replenishment District of Southern California.

We have provided below some examples of specific project experience that we believe best underscore our range of capabilities. It is worth noting that all of the projects below were completed by staff assigned to the City’s account.

City of Beaumont – UFI was engaged by the City of Beaumont in the wake of officials discovering financial mismanagement and fraud that masked a multimillion-dollar structural operating deficit.

Less than two years after emerging from the SEC investigation, UFI was engaged by the City to serve as financial advisor on its first rated bond transaction, the 2018 Wastewater Revenue Bonds, which were issued to fund construction of a new Wastewater Plant, requiring $90 million of financing. UFI advised the City on key bond covenants and structuring options in order to strengthen the credit while maintaining flexibility for the City. As this was essentially a brand-new credit, the presentation to the rating agency and obtaining bond insurance were crucial to the financing. UFI took the lead in developing a credit story for in-person presentations to S&P, Assured Guaranty, and Build America Mutual, which involved walking them through how the new City Council and new City management had meticulously implemented new policies and financial control systems to build transparency and fiscal sustainability (in addition to addressing S&P’s rating criteria for wastewater revenue bonds).

The City ultimately achieved an “A+” rating, along with very aggressive insurance and surety bids from both Assured Guaranty and Build America Mutual, and was able to lock in a very low all-in fixed borrowing rate of 3.95%.

Earlier in 2025, UFI advised the City on its $71.8 million Wastewater Revenue Bonds, Series 2025A, which refunded the 2018 Bonds and funded capital projects. UFI worked closely with the City’s financing team to secure a credit upgrade to “AA-,” reflecting the City’s fiscal discipline and improved financial health. In response to volatile market 418
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Proposal for Municipal Advisory Services February 12, 2026 14 conditions, UFI recommended a flexible and proactive approach to the refunding. The bond documents were brought for City Council approval in June 2025, credit rating and insurance bids were secured, and the Preliminary Official Statement was posted on June 24. NPV savings remained slightly below 3% for several weeks as the transaction evolved day-to-day, with UFI coordinating closely with the City and underwriter on market updates and timing.

Starting in early August, interest rates began to decline due to a cooling job market and the increased probability of a Fed rate cut in September. On the morning of August 4, the underwriter opened the order period, receiving $205 million in orders, a 2.9x oversubscription. The transaction achieved 3.31% NPV savings, roughly $2.4 million. The City utilized the cash flow savings to issue $2.3 million of new money bonds to fund capital projects.

City of Lake Elsinore – UFI has served as municipal advisor to the City of Lake Elsinore since 2014. During that time, UFI has provided Municipal Advisory Services to the City on approximately $287 million of land secured financings, lease revenue bonds, tax allocation bonds, and private placements.

UFI recently advised the City on two new money CFD transactions that priced in December 2025 and January 2026. Both transactions priced extremely well receiving strong demand from retail investors. In addition, in 2025, we advised the City on a $77.58 million Marks Roos pooled CFD to refund 9 underlying CFDs. The bonds received a very strong “A+” rating from Standard & Poor’s and secured an attractive bond insurance bid from AGM, which included a 100% surety. The transaction priced in May 2025 and achieved strong results, generating

6.74% NPV savings. As a result, the financing provided approximately $11 million in new-money proceeds for capital improvements within the District and will allow the City to reduce special taxes for CFD residents.

In 2022, UFI served as the municipal advisor on the City’s issuance of $23.7 million of lease revenue bonds to finance construction costs of a new City Hall, which will further enhance the City’s historic downtown and house City Council chambers, administrative office space, multi-purpose and retail space, and outdoor amenities with connection to the existing City Hall building. UFI worked with the City to explore various funding options and ultimately it was decided that issuing lease revenue bonds was the optimal method of financing. Because of inflationary fears as well as expected increases in interest rates, the City accelerated the financing. UFI worked expeditiously to put together a financing schedule and coordinate next steps. On 6/1, S&P upgraded the City’s lease revenue bonds to “A+” from “A” as a result of the City’s consistent economic growth and strong reserve levels. The lease revenue bonds closed in June 2022 at a favorable true interest cost of 4.57%. The timing of the transaction proved to be advantageous to the City, as yields rose by as much as 150 basis points across the curve in the following months.

City of South San Francisco – Through a competitive RFP process, the City of South San Francisco selected UFI to provide General Fund revenue enhancement analysis and recommendations to the City Council. In 2019, UFI developed a long-term financial forecast model for the City, assessed the City’s long-term financial position and evaluated the fiscal impact and pros/cons of various recessionary scenarios. We then worked with the City’s various departments to identify financial issues, identify priorities, develop potential recession actions and strategies, and build estimated savings from the recession strategies into the forecast model. The engagement culminated in developing a Fiscal Sustainability Plan.

In early 2025, UFI was selected by the City to assist in analyzing and making recommendations on revenue enhancement options to fill a projected General Fund structural deficit of $14 million. Our evaluation included Sales Tax (which would require special legislation since the City was already at its cap), Parcel Tax, Utility Users Tax, and Real Property Transfer Tax (which would require the City to become a Charter City). UFI met with the City Manager, Assistant City Manager, and Finance Director weekly over the course of two months, and the project culminated in presenting to the Budget Subcommittee and then the full City Council our recommended ranking of revenue measures for the City to further pursue.
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 15 Victorville Municipal Utilities Services Electric Revenue Bonds - In 2022, UFI served as the municipal advisor to the City of Victorville on its inaugural issuance of $46.7 million tax-exempt and taxable electric revenue bonds to refund outstanding variable rate debt and fund capital projects.

The outstanding bonds associated with the electric system were issued on the City’s general fund credit, and the encumbered leased assets constituted most of the City’s public facilities. The City’s electric system has sufficient liquidity and revenues to pay debt service; however, its customer base is small and highly concentrated. Given the storied credit, UFI recommended a confidential Rating Evaluation Service with S&P through which we presented two scenarios: 1) a standard net revenue pledge of the electric system; 2) a net revenue pledge of the electric system plus, if there is a draw on the Debt Service Reserve Fund, a covenant for City management to request the City Council budget and appropriate from any available funds of the City to replenish the DSRF. UFI structured the second scenario to boost the credit of the electric revenue bonds without the need for the City to encumber leased assets and without any recourse to the City if it chose not to appropriate General Fund moneys. S&P indicated that the first scenario would result in a BBB- rating while the second scenario would result in an A- rating, a 3-notch difference. The City proceeded with the second structure, and despite a highly volatile market in May 2022, the bonds attracted sufficient investor interest for all bonds to be subscribed for, and the City was able to achieve its objective of securing attractive fixed-rate financing without a General Fund security pledge.
o Company shall provide at least 3 references, within the past 5 years, of clients for whom services have been performed that are comparable in quality and scope to that specified in this RFP. The references shall include client names, addresses, telephone numbers and e-mail addresses of the clients for whom prior work was performed and include an explanation of the services provided along with project start and end dates.

We encourage you to contact any of our recent clients listed below to discuss their experience and satisfaction with UFI. We have provided contact information for three references below.

City of Beaumont
Gustavo J. Romo, Interim City Manager
Phone: (951) 572-3212 x306
Email: [email protected] 550 E 6th St, Beaumont, CA
Services provided: MA services for Wastewater Revenue Bonds, CFD transactions; financial forecast, police station debt analysis, Workout Plan leading to financial turnaround, Budget development and support, Economic Development assistance
Dates of Service: 2015 – Present
Most recent engagement: Pooled CFD new money and refunding; wastewater revenue refunding bonds City of Pomona
Andrew Mowbray, Finance Director/City Treasurer
Tel: (909) 620-2353; E-mail: [email protected] 505 South Garey Avenue, Pomona, California 91766
Services provided: Budget Forecast Modeling, Revenue Measure Analysis Leading to a Sale Tax Measure, MA Services on various bond issues (including utility enterprises), Continued services regarding financial resource/ services balancing
Dates of Service:2016 - Present
Most recent engagements: Financial Forecast, Financial Impact Analysis of the Children and Youth Fund (Measure Y ,Redevelopment Pass-Through Deferral Agreement Negotiations / Strategy with Los Angeles County 420
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 16 V.C Price Proposal*
All proposals submitted shall have a stated dollar bid amount for providing the services outlined in the Scope of Services. The total shall be an all-inclusive maximum price and to contain all direct and indirect costs including all out-of-pocket expenses with a full and complete breakdown of all said costs, and proposed fees including but not limited to hourly rates, reimbursable expenses and/or rates, mileage and/or travel cost, miscellaneous fees, etc., for the first year's audit engagement.

In addition, a statement must be included in this section that if the proposer is charging travel costs, the proposer's charges invoiced to the City for travel, lodging and subsistence shall not exceed the current IRS rates.

Our pricing proposal has been provided under separate cover in accordance with the RFP submission instructions.

V.D Value Added Services
We have included a discussion of our value added services in Section A above.

V.E Evidence of Insurance*
Our insurance certificates are enclosed with the RFP submission.

City of Lake Elsinore
Jason Simpson, City Manager
Phone: (951) 674‐3124 Ext. 211
Ema 130 S. Main Street, il: jsimpson@lake‐elsinore.org Lake Elsinore, CA Services provided: MA services for LRBs, CFD and TABs, and multiple pooled CFD refundings; Financial forecasting, Affordable Housing/AB 341 analysis, Economic Development, EIFD, Pension Study Dates of Service: 2014 – Present
Most recent engagement: New money CFDs; pooled CFD refunding 421
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 17 Appendix A: Professional Resumes – UFI Team Members
422
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 18 MICHAEL BUSCH
Chief Strategy Officer

CONTACT
1470 Maria Lane, Suite 315,
Walnut Creek, CA 94596
TEL: (714) 923-3541
[email protected]

EDUCATION
M.P.A. – Finance and Public
Works
Cal State University, Long Beach
B. A., Urban and Regional
Planning
Cal State Polytechnic University,
Pomona

PROFESSIONAL AFFILIATIONS
Innovating Commerce Serving
Communities (ICSC)
California Society of Municipal Finance
Officers (CSMFO)
Past President – Municipal Management
Association of Southern California
(MMASC)
Past Chair – Cal-ICMA
Profile
Michael Busch is a seasoned municipal executive and public finance professional with 30 years in public finance with the last 18 years at Urban Futures, Inc. (UFI), where he served as owner and Chief Executive Officer before becoming Chief Strategy Officer. His career includes senior leadership roles as Assistant City Manager, Finance Director, and founding member of the California Utility Executive Management Association (CUEMA) guiding public agencies with strategic fiscal management and operational leadership. Michael has advised cities, special districts, and nonprofits across California, helping them identify emerging trends, navigate complex policy issues, share best practices, and advance their missions through sound fiscal and economic strategies. Over his career, he has structured and managed more than $5 billion in tax-exempt and taxable debt, including lease revenue bonds/COPs, water and wastewater revenue bonds, pension obligation bonds, tax allocation bonds, CFD and assessment district bonds, and New Market Tax Credits. Recognized for linking prudent fiscal policies with economic development objectives, Michael has helped deliver numerous highpriority projects for communities statewide.

Select Experience
• City of Lake Elsinore – Economic development projects, CFD Bonds, Tax Allocation Bonds
• City of Beaumont – CFD Bonds, Wastewater Bonds
• City of Pomona – Various bond issues, Redevelopment
Pass-Through Deferral Agreement Negotiations / Strategy with Los Angeles County
• City of Ontario – CFD Bonds, Lease Revenue Bonds, Water Revenue Bonds, Private Activity Financing
• Desert Hot Springs 2022 Lease Revenue Bonds (City Hall and Police Station Expansion Project)
• City of Eastvale - 2025 Lease Revenue Bonds
423
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 19 BRANDEN KFOURY
Director

CONTACT
1470 Maria Lane, Suite 315,
Walnut Creek, CA 94596
Tel: (714) 923-3560
[email protected]

EDUCATION
BS, Finance
New York University

PROFESSIONAL AFFILIATIONS
California Society of Municipal Finance
Officers (CSMFO)
Profile
Branden Kfoury joined Urban Futures in 2019. He has worked on a variety of debt offerings for cities and special districts in California including, but not limited to utility revenue bonds, general obligation bonds, lease revenue bonds, CFD and assessment district bonds, as well as tax allocation bonds. Mr. Kfoury has extensive experience in all aspects of the bond financing process and excels at providing value-added debt structuring, credit and quantitative analysis. Previously, Mr. Kfoury worked as a Senior Associate at Fieldman, Rolapp & Associates where he supported the firm’s city and special district clients. Mr. Kfoury has held prior roles in public finance investment banking, bond insurance, as well as in the technology industry. He graduated Cum Laude from New York University with a Bachelor of Science degree in Finance and a minor in Politics.

Relevant Project Experience
• City of Encinitas – Lease Revenue Bonds
• City of Pasadena – General Obligation Bonds (Historic Library Renovation Project)
• City of Fullerton – CFD Refundings, tax allocation bonds, and CFD Formation
• City of Oceanside – Pooled CFD Refunding
• Walnut Valley Water District – Water Revenue Bonds
• City of Santa Ana – Water Revenue Bonds
424
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 20 WING-SEE FOX
Managing Director

CONTACT
1470 Maria Lane, Suite 315,
Walnut Creek, CA 94596
TEL: (650) 503-1500
[email protected]

EDUCATION
MBA
Columbia Business School
MSW
Columbia University School of
Social Work
BA, Psychology
Stanford University

PROFESSIONAL AFFILIATIONS
Women in Public Finance (WIP)
Asian Americans in Public Finance (AAPF)
California Society of Municipal Finance
Officers (CSMFO) Communications
Committee
Class of 2015 LeaderSpring Fellow
Profile
Wing-See Fox is the Series 54 Municipal Advisor Principal of UFI and leads the Public Finance Group. Wing-See has over a decade of experience in the fields of municipal advising, public finance, and municipal securities. She has worked on over $3 billion in municipal debt offerings for cities and special districts in California including lease revenue bonds and certificates of participation. She has recently executed lease transactions for the Cities of Claremont, South San Francisco, Orange, Atherton, the Town of Apple Valley and Cosumnes Community Services District. WingSee excels in gaining a thorough understanding of credits, validating assumptions in financial projections, and structuring bond transactions to meet the needs of the issuer while maximizing credit strength and marketability to investors. She has extensive experience developing credit presentations geared towards the criteria of rating agencies in order to achieve the highest possible ratings. Prior to becoming a municipal advisor, Wing-See was a public finance investment banker, having worked at Raymond James Public Finance in San Francisco and UBS Investment Bank in New York.

Select Project Experience
• City of Manteca – CFD Bonds
• City of Alameda –CFD Bonds
• City of Goleta –Lease Revenue Bonds & Transportation
Sales Tax Bonds
• Cosumnes Community Services District – Certificates of Participation
• City of South San Francisco – Lease Revenue Bonds
• City of Pismo Beach –Lease Revenue Bonds (Public Safety Facility Project)
425
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 21 JAMES MORRIS
Managing Director

CONTACT
1470 Maria Lane, Suite 315,
Walnut Creek, CA 94596
Tel: (714) 923-3542
[email protected]

EDUCATION
Juris Doctorate and Master of
Urban Planning
UCLA
Bachelors Degree
Dartmouth College
Jim Morris has over twenty-five years of experience working in the fields of financial analysis, municipal law and public agency governance. Jim specializes in assisting cities and special districts in the areas of long-term forecasting, financial sustainability and comprehensive fiscal
assessments. His recent engagements include financial
forecast models for numerous municipal clients, preparing fiscal sustainability plans, and developing comprehensive fiscal assessments. Jim also has responsibility for managing and guiding UFI’s Analytics and Compliance practice group which includes continuing disclosure, arbitrage rebate, and CDIAC reporting compliance for municipal issuers. Prior to joining UFI, Jim worked with the City of San Bernardino where he was tasked with successfully winding-down San
Bernardino’s former redevelopment agency ($28+ million
annual budget and $275+ million in debt and obligations), and he was a key advisor and strategist for the city’s
bankruptcy team. Jim began his professional career as a public law attorney with Best Best & Krieger, where he
served as Assistant City Attorney for the cities of Corona and Ontario, and General Counsel for Western Municipal Water District. Jim is a graduate of Dartmouth College and
received both a Juris Doctorate and Master of Urban
Planning from UCLA.

Select Project Experience
• City of Pomona
• City of South San Francisco
• City of Culver City
• City of Ontario
• City of Alameda
• City of Colton
• City of Corona
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City of Banning
Proposal for Municipal Advisory Services February 12, 2026 22 Appendix B: Regulatory Disclosure
Conflicts of Interest and Other Matters Requiring Disclosures. Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. (UFI) and its associated persons.

The following are potential conflicts of interest to be considered. • UFI represents that in connection with the issuance of municipal securities, UFI may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction.

Consistent with the requirements of MSRB Rule G-42, UFI hereby discloses, that such contingent and/or transactional compensation may present a potential conflict of interest regarding UFI' ability to provide unbiased advice to enter into such transaction. The contingent fee arrangement creates an incentive for UFI to recommend unnecessary financings or financings that are disadvantageous to the client, or to advise the client to increase the size of the issue. This potential conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the client; • UFI fees under this potential agreement may be based on hourly fees of UFI's personnel, with the aggregate amount equaling the number of hours worked by such personnel times an agreed-upon hourly billing rate. This form of compensation presents a potential conflict of interest because it could create an incentive for UFI to recommend alternatives that would result in more hours worked. This conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to its clients;
• UFI’s fees under this potential agreement, may be a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by the client and UFI of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by UFI. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, UFI may suffer a loss; Thus, UFI may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the client;
• The fee paid to UFI increases the cost of investment to client. The increased cost occurs from compensating UFI for municipal advisory services provided. • UFI serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another UFI client. For example, UFI serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients; These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, UFI could potentially face a conflict of interest arising from these competing client interests. UFI fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients; • UFI does not have any affiliate that provides any advice, service, or product to or on behalf of the client that is directly or indirectly related to the municipal advisory activities to be performed by UFI; • UFI has not made any payments directly or indirectly to obtain or retain its clients municipal advisory business;
• UFI has not received any payments from third parties to enlist UFI's recommendation to its clients of its services, any municipal securities transaction or any municipal finance product; • UFI has not engaged in any fee-splitting arrangements involving UFI and any provider of investments or services to its clients;
• UFI does not have any legal or disciplinary event that is material to its clients evaluation of the municipal advisory or the integrity of its management or advisory personnel; 427
City of Banning
Proposal for Municipal Advisory Services February 12, 2026 23 • UFI does not act as principal in any of the transaction(s) related to this Agreement; • Certain employees of Urban Futures, Inc. hold ownership interests in and serve as directors of California Municipal Statistics, Inc., a company that provides information services for municipal bond offerings and ongoing disclosures. These roles may result in financial or other benefits to those employees or the company. Urban Futures, Inc. maintains policies and procedures to manage any potential conflicts of interest and to ensure that our advice to clients remains objective, impartial, and in the best interests of our clients, consistent with our fiduciary duty.

Legal Events and Disciplinary History. UFI does not have any legal events and disciplinary history on its Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Town may electronically access UFI’s the most recent Form MA and each most recent Form MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html. There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. 428
City of Banning
Cost Proposal for
Municipal Advisory Services
RFP-25-123
Urban Futures, Inc.

February 12, 2026
Public Finance | Public Management |Analytics & Compliance 429
City of Banning
Pricing Proposal for Municipal Advisory Services February 12, 2026 All proposals submitted shall have a stated dollar bid amount for providing the services outlined in the Scope of Services. The total shall be an all-inclusive maximum price and to contain all direct and indirect costs including all out-of-pocket expenses with a full and complete breakdown of all said costs, and proposed fees including but not limited to hourly rates, reimbursable expenses and/or rates, mileage and/or travel cost, miscellaneous fees, etc., for the first year's audit engagement.

Municipal Advisory Services
For municipal advisory financing assignments, UFI proposes the following fees based on financing type. Our fees for municipal advisory services are contingent upon closing and exclusive of out-of-pocket expenses such as travel, data recovery, third party data fees, and internal compliance requirements. Out-of-pocket expenses will not exceed $2,500 on any transaction. Any reimbursable travel, lodging, and subsistence expenses will be billed in accordance with current IRS reimbursement rates.

Financial Forecasting/Other Hourly Assignments
We understand the City has recently implemented utility rate increases intended to restore investment-grade credit ratings. As a result, there may be additional preparatory work required in advance of any utility financings that falls outside the traditional scope of municipal advisory services. For these types of assignments, along with other special projects requested by the City, including CFD formations, capital improvement funding planning, and the development of funding options and recommendations, UFI proposes an hourly rate of $275. This rate is consistent with our current agreement with the City for financial forecasting services.

UFI’s Proposed Municipal Advisory Fees
Bond Type Fee
Water/Sewer/Electric Enterprise $45,000
General Fund Leases/COPs $40,000
CFD Bond Issues $40,000
Tax Allocation Bonds $40,000
Private Placements $35,000
430
City of Banning
Pricing Proposal for Municipal Advisory Services February 12, 2026 Regulatory Disclosure
Conflicts of Interest and Other Matters Requiring Disclosures. Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. (UFI) and its associated persons.

Consistent with the requirements of MSRB Rule G-42, UFI hereby discloses, that such contingent and/or transactional compensation may present a potential conflict of interest regarding UFI' ability to provide unbiased advice to enter into such transaction. The contingent fee arrangement creates an incentive for UFI to recommend unnecessary financings or financings that are disadvantageous to the client, or to advise the client to increase the size of the issue. This potential conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the client; • UFI fees under this potential agreement may be based on hourly fees of UFI's personnel, with the aggregate amount equaling the number of hours worked by such personnel times an agreed-upon hourly billing rate. This form of compensation presents a potential conflict of interest because it could create an incentive for UFI to recommend alternatives that would result in more hours worked. This conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to its clients;
• UFI’s fees under this potential agreement, may be a fixed amount established at the outset of the Agreement. The amount is usually based upon an analysis by the client and UFI of, among other things, the expected duration and complexity of the transaction and the Scope of Services to be performed by UFI. This form of compensation presents a potential conflict of interest because, if the transaction requires more work than originally contemplated, UFI may suffer a loss; Thus, UFI may recommend less time-consuming alternatives, or fail to do a thorough analysis of alternatives. This conflict of interest will not impair UFI's ability to render unbiased and competent advice or to fulfill its fiduciary duty to the client;
• The fee paid to UFI increases the cost of investment to client. The increased cost occurs from compensating UFI for municipal advisory services provided. • UFI serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another UFI client. For example, UFI serves as municipal advisor to other municipal advisory clients and, in such cases, owes a regulatory duty to such other clients; These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, UFI could potentially face a conflict of interest arising from these competing client interests. UFI fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients; • UFI does not have any affiliate that provides any advice, service, or product to or on behalf of the client that is directly or indirectly related to the municipal advisory activities to be performed by UFI; • UFI has not made any payments directly or indirectly to obtain or retain its clients municipal advisory business;
• UFI has not received any payments from third parties to enlist UFI's recommendation to its clients of its services, any municipal securities transaction or any municipal finance product; • UFI has not engaged in any fee-splitting arrangements involving UFI and any provider of investments or services to its clients;
• UFI does not have any legal or disciplinary event that is material to its clients evaluation of the municipal advisory or the integrity of its management or advisory personnel; • UFI does not act as principal in any of the transaction(s) related to this Agreement; • Certain employees of Urban Futures, Inc. hold ownership interests in and serve as directors of California Municipal Statistics, Inc., a company that provides information services for municipal bond offerings 431
City of Banning
Pricing Proposal for Municipal Advisory Services February 12, 2026 and ongoing disclosures. These roles may result in financial or other benefits to those employees or the company. Urban Futures, Inc. maintains policies and procedures to manage any potential conflicts of interest and to ensure that our advice to clients remains objective, impartial, and in the best interests of our clients, consistent with our fiduciary duty.

Legal Events and Disciplinary History. UFI does not have any legal events and disciplinary history on its Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Town may electronically access UFI’s the most recent Form MA and each most recent Form MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html. There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. 432
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Ralph Wright, Parks and Recreation Director MEETING DATE: March 24, 2026
SUBJECT: Consideration of Resolution 2026-43, Approving an Agreement with Pyro Spectaculars, Inc. for Production of the Fourth of July Aerial Fireworks Display
RECOMMENDATION:

Adopt Resolution 2026-43
BACKGROUND:

For over a dozen years, the City of Banning has offered an annual July 4th Celebration including vendors, music, kids and family activities as well as a stunning aerial fireworks display. It has become a well-known, highly supported community event.

Last year’s event had an estimated 2,500 people in attendance at Nicolet Middle School and thousands of other community members watching the fireworks show from their home, local parks, and adjacent neighborhoods. The feedback from the community was that the event was a beneficial and well-liked event that brought the community together.

July 4th, 2026 represents the 250th anniversary of the United States and as part of the event this year, the Playhouse Bowl Association has requested to partner with the City by securing a band for the event.

The Playhouse Bowl Association is paying the additional costs associated with the band.

Pyro Spectaculars, Inc., is one of the premier pyrotechnic show providers in the nation, providing most of the aerial fireworks shows on July 4th in California and throughout the United States. As a returning customer, Pyro Spectacular, Inc. offers a significant discount to the City of Banning and is able to guarantee an operator for the annual event. Staff inquired with Pyro Spectaculars, Inc. as to securing the best pricing for an aerial fireworks show and received a quote of $37,000. This fee includes a $3,000 increase over last year’s show price. This higher price has come about due to many increases that can be seen throughout the supply chain including insurance costs, shipping and labor costs.

In the past, the City has struggled to secure additional bids either informally or formally through the RFP process. Pyro Spectaculars, Inc., has a waiting list of new customers that if they were given an opportunity of a show, would be required to pay a minimum of $50,000 for a show. Customers that cancel annual shows and choose to return in subsequent years will have to be added to a waiting list and no longer be offered the returning customer discount. Additionally, there is a substantial shortage of operators for fireworks shows and Pyro-Spectaculars is unable to accommodate all requesting cities and organizations.

Our neighbor, the City of Beaumont, lost their operator and was unable to bring back Pyro Spectaculars, 459
Inc the following year. Beaumont issued an RFP and did not receive any responses for a July 4th show. Through an informal process, they were able to secure another vendor at a significant increase in price of more than double their cost for previous aerial fireworks shows. For 2026, the City of Beaumont's budget for their July 4th event is at $100,000.

If the production agreement is approved and executed, the City of Banning will pay 50% or $18,500 by April 15th and the remaining 50%, or $18.500 in June.

JUSTIFICATION:

Providing a July 4th event and including the aerial fireworks display provides a tremendous community benefit with thousands in attendance at the facility. Considerably more watch the fireworks show in adjacent neighborhoods, parks and throughout Banning. Pyro Spectaculars, Inc. has performed over a dozen July 4th shows in Banning and proven themselves to deliver an exciting and safe show for the community. Due to the shortage of operators and responsive vendors for aerial fireworks shows, Pyro Spectacular is considered a single source for Banning and we receive a discounted show price as a continuing customer. Funding is currently allocated in the FY 2025-26 budget (Account 001-5400-446-

41.58) to support the annual July 4th event including the Aerial Fireworks Display. Additionally, Pyro Spectaculars, Inc. will provide liability insurance naming the City of Banning as additional insured and works closely with our fire marshal each year to mitigate the risk associated with fireworks show.

FISCAL IMPACT:

Sufficient funds are available and were budgeted in the FY 2025/2026 Budget in the 4th of July Celebration account 001-5400-446-41.58. A 50% payment for the aerial fireworks display will take place on April 15th and the balance will be paid after in June.

ATTACHMENTS:

1. Resolution_2026-43__PR_Pyrospectaculars_rev.docx

2. Banning 7-4-26 Proposal Pyro Spectacular, Inc.pdf
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Resolution 2026-43

Page 1 of 3 ends

Banning City CouncilMarch 24, 2026

Banning City Council
March 24, 2026