Agenda packet, regular meeting — Banning City Council, June 23, 2026 (part 1 of 7)

June 23, 2026
5:00 p.m.

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

1. CALL TO ORDER

2. AGENDA APPROVAL
AGENDA

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
The following information comprises the agenda for the regular meeting of the Banning City Council, a joint meeting of the City Council and Banning Utility Authority, and the Banning City Council sitting in its capacity as the Banning Successor Agency Board.

This meeting is being held via Zoom so that members of the public may observe and participate in this meeting electronically. If you participate in this meeting via Zoom, you are agreeing to abide by the City's Zoom Community Standards for Public Meetings (provided in full on the last page of the agenda). Esta reunión se lleva a cabo en la Cámara y a través de Video/Teleconferencia en Zoom para que los miembros del público puedan observar y participar en esta reunión de manera electrónica. Si elige participar en esta reunión a través de Zoom, acepta cumplir con los Estándares comunitarios de Zoom para reuniones públicas de la ciudad (que se proporcionan en su totalidad en la última página de la agenda).

To observe and participate in the online video portion of the meeting through your personal computer or device, follow this link:
https://us02web.zoom.us/j/82012644588?pwd=GwdLNir0X6fHkhlgVjAjRUQf1C6yoz.1 Dial in: +1 669 900 9128
Meeting ID: 820 1264 4588
Password: 1913-92220
Per the City of Banning Manual of Procedural Guidelines, matters taken up by the Council before 10 p.m. may be concluded, but no new matters shall be taken up except upon a majority vote of the council members present and voting. Such an extension shall only be valid for one hour and each hour thereafter shall require a renewed action for the meeting to continue.

1.1 ROLL CALL

1.2 INVOCATION
Performed by Pastor Eric Wade of Sunrise Church

1.3 PLEDGE OF ALLEGIANCES AND

2.1 AGENDA APPROVAL
City Council - Regular Meeting Agenda
June 23, 2026
1 3. PRESENTATIONS

3.1 Proclamation - July as Parks and Recreation Month

4. REPORT ON CLOSED SESSION

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

6. CONSENT ITEMS

6.1 Consideration and Approval of the Meeting Minutes of the May 26, 2026, Regular City Council Meeting and the June 9, 2026, Closed Session and Workshop City Council Meetings.

6.2 Receive and File Fire Protective Services Statistics for the Month of May 2026

6.3 Receive and File Police Department Statistics for the Month of May 2026

6.4 Receive and File Code Enforcement Statistics for the Month of May 2026

6.5 Receive and File Animal Control Statistics for the Month of May 2026

6.6 Second Reading of Ordinance No. 1623 (Title 15 Code Amendment) Recommendation: Proclaim July 2026 as Parks and Recreation Month Phaedra, Norton, City Attorney

5.1 PUBLIC COMMENTS

5.2 CORRESPONDENCE

5.3 APPOINTMENTS
Planning Commission Appointment for Position 4, Term Ending January 31, 2027.

Recommendation: Appoint one applicant to fill the Planning Commission vacancy for Position 4,with a term ending January 31, 2027.

5.4 CITY COUNCIL COMMITTEE REPORTS

5.5 ANNOUNCEMENTS OF CITY COUNCIL MEMBERS

5.6 CITY TREASURER'S REPORT

5.7 CITY MANAGER'S REPORT

5.8 CITY ATTORNEY'S REPORT
The following items have been recommended for approval and will be acted upon simultaneously, unless a member of the City Council/Banning Utility Authority/Successor Agency Board wishes to remove an item for separate consideration.

Recommendation: Approve the Meeting Minutes of the May 26, 2026, Regular City Council Meeting and the June 9, 2026, Closed Session and Workshop City Council Meetings.

Recommendation: Receive and file
Recommendation: Receive and file
Recommendation: Receive and file
Recommendation: Receive and file
City Council - Regular Meeting Agenda
June 23, 2026
2 6.7 Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of the Mountain North Potable Water Reservoir by Tri-Pointe Homes

6.8 Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of Highland Home Road North within Tract Map 39262-1

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

6.10Consideration of Resolution 2026-81, Approving a Three-Year Street Sweeping Services Agreement with Sweeping Corp of America Utilizing Sourceswell Contract #111125-SWEP

6.11Consideration of Resolution 2026-83 for Approving the First Amendment to the Lance, Soll, Lunghard, LLP (LSL) Agreement for Professional Accounting Services and Ratifying Certain Services Performed in Excess of the Agreement Amount.

6.12Consideration of Resolution 2026-91, Confirming the Authority Granted By Resolution No. 2025-79 and Approving Amendment No. 3 to the Services Agreement with Yunex, LLC. for Citywide Traffic Signal Maintenance Services

6.13Consideration of Resolution 2026-93, Providing Authorization for the Execution of the Certification and Assurances and Authorized Agent Forms for the Low Carbon Transit Operations Program (LCTOP) for the Following Project: Free Fare Program in the Amount of $122,249

6.14Consideration of Resolution 2026-94, Adopting Regulations for Candidates for Elective Office Pertaining to the Electorate and the Costs Thereof for the General Municipal Election to be Held in the City on Tuesday, November 3, 2026.

6.15Consider Resolution 2026-95, Approving Amendment No. 2 to the Professional Services Agreement with ALL4, LLC. to Extend the Term of the Agreement through June 30, 2027 and approve the Assignment and Assumption Agreement between City of Banning, VCS Environmental and ALL4 LLC.

6.16Consideration of Resolution 2026-98, Approving Amendment No. 1 to the Professional Recommendation:

Staff recommends the City Council approve the second reading of Ordinance No. 1623.

Recommendation: Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of the Mountain North Potable Water Reservoir by Tri-Pointe Homes
Recommendation: Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of Highland Home Road North within Tract Map 39262-1
Recommendation: City Council accept as complete various improvements related to the Atwell Specific Plan Development and authorize a 90% reductions in the improvements bonds and exoneration of Monumentation Bonds.

Recommendation: Adopt Resolution 2026-81
Recommendation: Adopt Resolution 2026-83
Recommendation: Adopt Resolution 2026-91
Recommendation: Adopt Resolution 2026-93
Recommendation: Adopt Resolution 2026-94
Recommendation: Adopt Resolution 2026-95
City Council - Regular Meeting Agenda
June 23, 2026
3 Services Agreement with Resource Innovations, Inc. for Solar Photovoltaic and Energy Assessment Services

6.17Consideration of Resolution 2026-99, Approving the Agreement with Riverside County Children and Families Commission Allowing the City of Banning to Provide Swim Lessons Scholarships to Eligible Children Under the Age of Five

6.18Consideration of Resolution 2026-103, Establishing an Appropriations limit for Fiscal Year 2026/27 and Retroactively Approving the Fiscal Year 2025/26, Pursuant to Article XIIIB of the California Constitution.

7. PUBLIC HEARINGS

7.1 Ten Year Review of the Development Agreement between Tri Pointe Homes and the City of Banning Regarding the Development of the Atwell Project within the Butterfield Specific Plan.

7.2 Public Hearing and Consideration of Resolution 2026-92, Approving a Report in Connection with the Proposed Collection on the 2026/2027 Riverside County Property Tax Roll of Delinquent Solid Waste Service Charges for Single-Family and Multi-Family Dwelling Accounts and Making a Determination of Exemption under CEQA

7.3 Consideration of Resolution 2026-96, Adopting the 2025 Urban Water Management Plan (UWMP) and Consideration of Resolution 2026-97 Adopting the 2025 Water Shortage Contingency Plan (WSCP)

8. REPORTS OF OFFICERS

9. DISCUSSION ITEMS

9.1 Consideration of Resolution No. 2026-102, Declaring a Fiscal Emergency Due to Recommendation: Adopt Resolution 2026-98
Recommendation: Adopt Resolution 2026-99
Recommendation: Adopt Resolution 2026-103
Recommendation: Receive and file
Recommendation: Staff recommends that the City Council Adopt Resolution 2026-92:

1. Conduct the Public Hearing and accept public testimony regarding calendar year 2025 single-family and multi-family delinquent accounts to be applied to the Fiscal Year 2026/2027 County of Riverside property tax roll.

2. In the absence of a majority protest, approve the single-family and multi-family solid waste delinquency report from Waste Management of the Inland Empire (“Waste Management”) listing calendar year 2025 delinquencies for placement on the Fiscal Year 2026/2027 County of Riverside property tax roll (“County Tax Roll”).

3. Authorize the City Manager or designee to decrease the number of delinquent accounts and/or principal balances reported by Waste Management should delinquencies be resolved or reduced prior to final submittal of the delinquencies to the Riverside County Auditor-Controller for collection on the Fiscal Year 2026/2027 County Tax Roll.

4. Authorize the collection of calendar year 2025 single-family and multi-family delinquent solid waste charges on the Fiscal Year 2026/2027 County Tax Roll and direct the City Clerk to file a certified copy of the Resolution and the Solid Waste Delinquency Report with the County of Riverside Auditor-Controller.

5. Find that the proposed collection of delinquent charges on the County Tax Roll is exempt from CEQA.

Recommendation: Adopt Resolution 2026-96 and Resolution 2026-97 City Council - Regular Meeting Agenda
June 23, 2026
4 Extraordinary Financial Circumstances Threatening the City's Ability to Maintain Essential Municipal Services

9.2 Consideration of Resolution 2026-71, Approving Amendment No. 2 to the Landscape Operation and Maintenance Contract for Landscape Maintenance District No. 1 with Mariposa Landscapes, Inc. of Irwindale, California for Fiscal Year 2026/2027 in the Amount of $92,114.65

9.3 Consideration of Resolution 2026-72, Approving Amendment No. 8 to the Professional Services Agreement with Mariposa Landscapes, Inc. for Landscape Maintenance Services at City properties in the Amount of $200,128 for FY 2026/2027

9.4 Consideration of Resolution 2026-84, Approving the Fifth Amendment for Contract Services (C00698) for Landscape Maintenance Services for Banning City Parks with Mariposa Landscapes, Inc., not to exceed the amount of $172,734.80 for FY 2026/27.

9.5 Lamar Billboard – Approval of Final City Advertisement Rendering Billboard Update

9.6 Consideration of Resolution 2026-101, Authorizing the Appointment of Retired Annuitant Matthew Bassi as Extra Help

10. ITEMS FOR FUTURE AGENDAS
Recommendation: Adopt Resolution No. 2026-102 declaring a Fiscal Emergency, which publicly explains the City's fiscal predicament, acknowledges the severity of the crisis, and directs the City Manager to pursue a defined set of actions to immediately stabilize the City's financial condition.

Recommendation: Adopt Resolution 2026-71
Recommendation: Adopt Resolution 2026-72
Recommendation: Adopt Resolution 2026-84
Recommendation:

Staff recommends that the City Council:

1. Approve the final billboard advertisement rendering titled Billboard Attachment A_3_Final(2026).jpg; and

2. Authorize staff to coordinate with Lamar Advertising to proceed with final production, printing, and installation of the approved billboard design.

Recommendation:

Adopt Resolution 2026-101

11.1 NEW ITEMS

1. Review and discussion of the Censure Policy to ensure conformance with the City of Banning Manual of Procedural Guidelines and the Banning Municipal Code (Flynn) June 2026

11.2 EXISTING ITEMS

1. Emergency Preparedness (Barrington) January 2025

2. Streamline Procurement Policy (Flynn) August 2025

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

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

5. Maintenance and replacement of street signs. (Flynn) March 2026

6. Rename the Arthur Welch Community Center back to the National Guard Armory (Flynn) April 2026

7. Smoke Shop Moratorium (Miller) April 2026

8. Landscape Standards Review (Wallace) May 2026
City Council - Regular Meeting Agenda
June 23, 2026
5 11. ADJOURNMENT

9. Special Event Fee Schedule and Permit Process Review (Miller) May 2026 Next Regular Meeting – July 14, 2026.

Zoom Community Standards for Public Meetings
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Public Comment from Zoom attendees will immediately follow in-person comment from members of the public in Council Chambers.

If you fail to adhere to these community guidelines, you may be removed for disrupting the meeting occurring in Council Chambers. You may rejoin the meeting but may be removed for each violation of these community standards.

The chat function will be disabled for all City Council meetings on Zoom.

Estándares comunitarios de Zoom para Reuniones Públicas Al participar en esta reunión en Zoom, usted acepta cumplir con los Estándares Comunitarios para Reuniones Públicas de la ciudad de Banning. Los que atienden por Zoom que no cumplan con estos estándares pueden ser retirados de la sala de reuniones.

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

AFFIDAVIT • DECLARACIÓN JURADA
IT IS HEREBY CERTIFIED under the laws of the State of California that the above agenda was posted on the City's website (www.banningca.gov) as well as the Bulletin Board at Banning City Hall, located at 99 E Ramsey Street, Banning, CA 92220, at least 72 hours in advance of the meeting.
_________________________
Vickie Sellers, Elected City Clerk
Secretaria Municipal Electa
City Council - Regular Meeting Agenda
June 23, 2026
6 PUBLIC NOTICE • NOTICIA PÚBLICA
Meeting Agendas and Notices
Interested in receiving email and/or text notifications of upcoming City Council meetings? Sign up for meeting notifications through the City's website. Pursuant to amended Government Code §54957.5(b), staff reports and other public records related to open session agenda items are available on the City's website (www.banningca.gov/).

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

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

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

CONTACT • CONTACTO
City Clerk's Office | 951-922-3102 | [email protected] 99 East Ramsey Street, Banning, California 92220
City Council - Regular Meeting Agenda
June 23, 2026
7 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Ralph Wright, Parks and Recreation Director MEETING DATE: June 23, 2026
SUBJECT: Proclamation - July as Parks and Recreation Month STAFF RECOMMENDATION:

Proclaim July 2026 as Parks and Recreation Month
BACKGROUND:

For over 40 years, July has been recognized as Parks and Recreation Month. It is an opportunity to celebrate all things Parks and Recreation and the value it provides to a community, State and Country.

The Parks and Recreation Department offers programs and events throughout the month of July, such as our Annual July 4th Celebration, Summer Day Camp, Swimming Programs, Senior Activities and much more.

JUSTIFICATION:

Parks and Recreation Services are an integral part of the community that provide lasting memories for everyone in the City of Banning.

FISCAL IMPACT:

There is no Fiscal impact associated with this proclamation.

ATTACHMENTS:

1. Proclamation_Parks and Recreation Month 2026.docx
8 CITY OF BANNING

OFFICE OF THE MAYOR
WHEREAS parks and recreation programs are an integral part of communities throughout this country, including the City of Banning; and
WHEREAS parks and recreation services are vitally important to establishing and maintaining the quality of life in our communities, ensuring the health of all citizens, and contributing to the economic and environmental well-being of a community and region; and WHEREAS parks and recreation programs build healthy, active communities that aid in the prevention of chronic disease, provide therapeutic recreation services for those who are mentally or physically disabled, and also improve the mental and emotional health of all citizens; and WHEREAS parks and recreation programs increase a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and
WHEREAS parks and recreation areas are fundamental to the environmental well-being of our community and the City of Banning offers a variety of parks and recreation opportunities designed for all ages and interests, including popular special events, recreation, athletic programs, and Senior Services; and
WHEREAS the City of Banning Parks and Recreation has planned activities in July such as a July 4th Celebration, Day Camps, Learn to Swim programs, Dive in Movies, Classes and much more! WHEREAS the U.S. House of Representatives has designated July as Parks and Recreation Month; and WHEREAS the City of Banning recognizes the benefits derived from parks and recreation resources.

NOW THEREFORE, the City Council of the City of Banning do hereby proclaim and designate the Month of July 2026, as Parks and Recreation Month! BE IT PROCLAIMED this 23rd day of June 2026.

Richard Royce, Mayor
9 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
MEETING DATE: June 23, 2026
SUBJECT: Planning Commission Appointment for Position 4, Term Ending January 31, 2027.

STAFF RECOMMENDATION:

Appoint one applicant to fill the Planning Commission vacancy for Position 4,with a term ending January 31, 2027.

BACKGROUND:

The Planning Commission’s rules and responsibilities are governed by Chapter 2.28 of the Municipal Code. The Commission’s two main functions are to review land development applications for compliance with the Zoning Code and to make recommendations to the City Council regarding large projects and changes to the General Plan or Zoning Ordinance.

The Banning Municipal Code Section 2.28.020 requires applications be made available and vacancies announced at least two months prior to the vacancy. The Planning Commission vacancies were advertised on the City’s website and across social media platforms starting on May 11 2026. Public Notice was published in the Record Gazette on May 15, 2026. The deadline to submit an application was Friday, June 12, 2026.

JUSTIFICATION:

Eight applications were received for the Planning Commission vacancies and are up for consideration:

David Garcia
Edward Espinoza
Jose Barragan
Feiloai Neil Lualemaga
Kaherine Fuentes
Kimberly Light-Allende
Maya Anguiano
Todd Rinks
Heidie Hillard Garcia
The candidates will be interviewed in a Special Meeting - Workshop on June 23, 2026, beginning at 4:00 p.m. Staff recommends appointing one member to the City's Planning Commission from among these applicants.

FISCAL IMPACT:

Reopening the recruitment and maintaining vacancies on the City's Planning Commission may further 10 delay projects across the City. There is no fiscal impact on the General Fund to appoint a new Planning Commissioner, as they do not receive compensation for the position.

ATTACHMENTS:

1. Planning Commission Applications_Combined_Redacted.pdf

2. Banning__CA_Code_of_Ordinances_Section_2.28.pdf

3. Proof of Publication_Planninc Commission Vacancy_20260515.pdf 11 12
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A.

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3. 4.

5. D.

Chapter 2.28 - PLANNING COMMISSION

2.28.010 - Planning commission—Membership requirements.

Members of the planning commission shall be residents of the City of Banning who hold no other municipal office in the city. Members may not be employees of the city.

Proof of residency shall be submitted at time of application to the commission through voter registration, utility bill at a physical address within the city boundaries. Residency shall be confirmed prior to appointment and maintained throughout the term served. (Code 1965, § 2-5.)

2.28.020 - Term and vacancies.

The planning commission shall consist of five members.

Planning commissioners shall serve four-year terms, which shall be staggered every two years concurrent with the city elections. Appointments shall be made by the city council. Applications shall be made available and the closing date announced at least two months prior to the expiration of the commissioner's term to be filled.

In order to re-set the terms of office of planning commissioners consistent with paragraph (b) above, commencing January 2021, the city council shall appoint members of the planning commission, whether newly appointed or as reappointed members, to one of the following five numbered positions:

Position 1. The term of office for Position 1 will begin February 1, 2021, and expire on January 31, 2025.

Position 2. The term of office for Position 2 will begin February 1, 2021, and expire on January 31, 2025.

Position 3. The term of office for Position 3 will begin February 1, 2021, and expire on January 31, 2023.

Position 4. The term of office for Position 4 will begin February 1, 2021, and expire on January 31, 2023.

Position 5. The term of office for Position 5 will begin February 1, 2021, and expire on January 21, 2023.

Upon the expiration of each term of office specified in paragraph C, persons appointed or reappointed to the Position shall serve for a succeeding four-year term measured from the expiration of the prior term of that position. In the event the city council has not completed the appointment process by February 1 of each odd number year to fill the terms of positions that 39 E.

B.
are to commence on February 1 of that year, the predecessor's term of office for that position is automatically extended until the date that the successor has been appointed and sworn into office.

Members shall serve at the pleasure of the council and may be removed at any time by a majority vote of the entire council.

Any member who is unexcused for two consecutive regular meetings of the commission or six meetings within a twelve-month period, whether the six meetings are excused or not, will be deemed to have forfeited his or her office and the city council may appoint a new member to serve in the commissioner's position for the remainder of their term.

To be excused from any such meeting, a member shall notify the planning department, at least forty-eight hours prior to any such meeting that the member will not be in attendance at the upcoming meeting. If a member is unable to attend due to illness, injury or family matters, an oral statement made proving that specific reason by the member at the next regular meeting of the commission shall constitute an excused absence.
(Code 1965, § 2-6.)
(Ord. No. 1569, § 1, 9-22-20)

2.28.030 - Compensation.

Members of the planning commission shall not receive compensation; reasonable traveling expenses to and from conferences and/or special field trips and training sessions shall be reimbursed.

Upon authorization by the city manager, the planning commission and members of its staff, may attend city planning conferences or meetings, or hearings on city planning legislation, or matters affecting the planning of the city. The reasonable expenses of such attendance shall be charged upon the funds allocated to the commission.

All fundings shall be established through the City of Banning budget, which shall be approved by the city council.
(Code 1965, § 2-7.)

2.28.040 - Rules of procedure.

A quorum of the planning commission shall consist of a majority of the members (including any vacancies). A quorum must be present in order for the planning commission to hold a meeting.

In the event that only three commissioners are present, any actions recommending amendment to the Municipal Code or general plan must be unanimous; all other actions would require a majority vote of the commission in attendance. A tie vote shall constitute a denial of the matter or request brought before the planning commission.
40 C.

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3. C.

1. 2.

3. 4.

5. D.

The commission shall adopt rules for the transaction of business and shall keep a record of its transactions, findings, and determinations. The Brown Act and "Robert's Rules in Plain English" by Doris P. Zimmerman (Harper Perennial) shall be incorporated into such rules.

The commission shall follow all applicable city fiscal and administrative policies and procedures. (Code 1965, § 2-8.)

2.28.050 - Duties and responsibilities.

The planning commission shall exercise those functions of the planning agency of the city delegated to it in the Banning Municipal Code.

At the regular February meeting, the planning commission shall choose a chairperson and a vicechairperson from among the planning commission members. The chairman and vice-chairman shall serve for one term. Both positions shall rotate every year.

The chairperson shall preside at all regular and special meetings and rule on all points of order and procedure during the meetings.

The vice-chairperson shall assume all duties of the chairperson in his or her absence.

In the event the chairperson and vice-chairperson are both absent, an acting chairperson shall be appointed from the commission for the meeting from those present.

The planning commission's scope of responsibility is to:

Prepare, review, adopt, and recommend to the city council for its adoption, a long range, comprehensive general plan to guide future physical development and conservation of the city and its adjoining environs based on geographic, social, economic and political characteristics of the community;
Prepare, review, adopt and recommend to the city council for its adoption of special area specific plans for identifiable areas, wherein more detailed guidelines are needed to supplement the objectives of the general plan;
Review development applications submitted to the city for consistency with adopted plans and ordinances. Approve or deny applications when final authority is granted to the planning commission by the Municipal Code. Make a recommendation on those actions for which the city council is the final reviewing approval body;
Act as the appeal body on decisions made by the community development director; Perform such other functions and duties as the city council may from time to time direct and/or provide within the Banning Municipal Code.
41 E.

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3. 4.

5. 6.

7. 8.

9. The commission may form ad-hoc subcommittees in accordance with the Brown Act, and make appointments to that subcommittee, as it deems necessary. A quorum of commission members may not be appointed to serve in a single subcommittee. Before forming a subcommittee, the commission shall establish a specific mission and term for the subcommittee.

The planning commission is an important function within the City of Banning, and as such, certain expectations are held by the city council in making the appointment of individuals to the commission. These expectations include the following:

Commissioners will attend all regular meetings and special meetings as they arise; Commissioners will communicate expected and unexpected absences to the planning department, prior to the meeting;
Commissioners will communicate any potential conflicts of interest on agenda items to the planning department in advance of the hearing to allow confirmation of a quorum; Commissioners will arrive on time to each meeting, fully participate, and remain in attendance until the end of each meeting;
Commissioners will prepare themselves for each meeting by reading the agenda, reports and other materials, and visiting the site, as necessary, and communicate any questions to the secretary in advance of the hearing. Pursuant to Resolution 2000-41, if a commissioner visits the site prior to a hearing on the matter, the commissioner shall disclose at the hearing such evidence and observation gathered during the site visit; Commissioners are encouraged to attend the annual planner's institute (Monterey and Southern California) or an equivalent planning training program given by a University of California campus (or approved equivalent) and may attend other planning conferences and or training classes as the need and opportunities arise. The city will also provide regular inservice training and make-up training where attendance is required; New commissioners are expected to become familiar with the city's general plan, the "Planning Commission Handbook" (prepared by the State of California), the relevant Municipal Code sections particularly those relevant to zoning to become familiar with these documents. The "Guide for New Members" distributed by the planning commissioners journal and www.plannersweb.com are other valuable resources for new commissioners; Applicants to the planning commission will be expected to attend a brief orientation session explaining the role of commissioners, the planning process, and the expectations of commissioners that are appointed; and
New commissioner members will attend an expanded orientation session with the liaison to the commission and other staff, as deemed necessary, to provide new appointees with a solid understanding immediately upon appointment. The orientation will include an overview of 42 F.

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5. 6.
the planning process, a review of the commission's structure, policies and bylaws, a summary of available documents and resources, and a review of the commission's relationship with citizens, staff, developers, and the governing body.

The planning commission may serve on regional boards or commissions as directed by the city council.

The planning commission shall participate in annual meetings with the city council to discuss development activity, development doctrine, policies, etc. (Code 1965, § 2-8.1.)
(Ord. No. 1569, § 2, 9-22-20)

2.28.060 - Conflict of interest requirements.

The State of California Political Reform Act requires planning commission members to disclose interests in investments, real property, and income derived within the City of Banning or from sources doing business within the City of Banning. Filings are required within ten days of assuming office and on an annual basis.

Members shall not work for the "pass" cities, which include Beaumont, Calimesa, and Riverside County in roles, such as economic development, planning, or redevelopment.

If an apparent conflict of interest arises, the member shall inquire of the city attorney or staff prior to the meeting.
(Code 1965, § 2-8.2.)

2.28.070 - Staff liaison.

The staff liaison to the planning commission shall be the community development director.

The planning commission liaison, supported by the secretary to the planning commission (a staff position), shall be responsible for:

Confirming that a quorum will be present prior to each meeting; Receiving and recording all exhibits, petitions, documents, or other material presented to the planning commission in support of, or in opposition to, any issue before the planning commission;
Signing all meeting minutes and resolutions upon approval; Preparing and distributing agendas and agenda packets;
Facilitating the tape recording of meetings and preparation of minutes; and Responding to all questions from planning commission members regarding agenda items in advance of meetings.
43 A.

A.
(Code 1965, § 2-8.3.)

2.28.080 - Meeting times and places.

The planning commission shall meet on the first Wednesday of each month at 5:30 p.m. at the city council chambers located at 99 E. Ramsey Street, or at such time and place as the commission may designate by resolution.

Commissioners will attend special meetings as they arise. (Code 1965, § 2-8.4.)
(Ord. No. 1427, § 1, 9-14-10; Ord. No. 1594, § 1, 8-22-22)

2.28.090 - Adoption.

This document, as adopted and amended by council resolution, shall serve as the bylaws for the commission.
(Code 1965, § 2-9.)
44 AFFIDAVIT OF PUBLICATION
Record Gazette
218 N. Murray St., Banning, CA 92220
Proof of Publication
(2015.5 C.C.P.)
2026 05 15 Public Notices Planning Commission
___________________________________________________
State of California )
County of Riverside ) SS.

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer and publisher of Record Gazette, a newspaper published in the English language in the City of Banning, County of Riverside, and adjudicated a newspaper of
general circulation as defined by the laws of the state of California by the Superior Court of the County of Riverside, under the date October 14, 1966, Case No. 54737.

That the notice, of which the annexed is a copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

May 15, 2026
Executed on: ____________________
At City of Banning, California
I ceritfy (or declare) under penalty of perjury that the foregoing is true and correct.
___________________________________________________
Signature
2026 05 15 Public Notices Planning Commission | Page 1 of 1 May 15, 2026
45 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
MEETING DATE: June 23, 2026
SUBJECT: Consideration and Approval of the Meeting Minutes of the May 26, 2026, Regular City Council Meeting and the June 9, 2026, Closed Session and Workshop City Council Meetings.

STAFF RECOMMENDATION:

Approve the Meeting Minutes of the May 26, 2026, Regular City Council Meeting and the June 9, 2026, Closed Session and Workshop City Council Meetings.

BACKGROUND:

After every meeting, the City Clerk's Office prepares meeting minutes. The City Council reviews and approves these minutes either as presented or with modifications.

JUSTIFICATION:

These minutes have been prepared as summary minutes in accordance with City Council Resolution 2025-22 and Government Code Section 36814, 4801, and 54953 (c)(2).

FISCAL IMPACT:

None
ATTACHMENTS:

1. City Council_Regular Meeting_DRAFT.pdf

2. 2026 06 09_Closed Session_DRAFT.pdf

3. 2026 06 09_Workshop_DRAFT.pdf
46 1

MINUTES

CITY COUNCIL - REGULAR MEETING

CITY OF BANNING, CALIFORNIA
MAY 26, 2026 – 5:00 p.m.

1. CALL TO ORDER - 5:03 p.m.

1.1 ROLL CALL
COUNCIL MEMBERS PRESENT: Mayor Richard Royce
Mayor Pro Tem Cindy Barrington
Council Member Sheri Flynn
Council Member Leroy Miller
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: Phaedra Norton, City Attorney
Elizabeth Gibbs, City Manager
Vickie Sellers, City Clerk
Sandra Calderon, Deputy City Clerk

1.2 INVOCATION
Performed by Rev. Bill Dunn of St. Episcopal Church

1.3 PLEDGE OF ALLEGIANCE

2. AGENDA APPROVAL

2.1 AGENDA APPROVAL
Council Member Miller asked to move item 9.1 before consent items agenda.

Council Member motioned to approve the agenda, seconded by Council Member Miller. Vote passed 5-0.

3. PRESENTATIONS

3.1 Small Business Recognition Month – Recognition of La Villa Burgers and Celebration of New Ownership and Ribbon-Cutting Ceremony for Gus Jr. No. 7 Recommendation: Staff recommends that the City Council:

1.) Award a Certificate of Recognition to La Villa Burgers in recognition of Small Business Recognition Month; and

2.) Recognize the new ownership and recent ribbon-cutting ceremony for Gus Jr. No. 7, celebrating continued local investment and economic growth within the City of Banning. 47 2
City Council recognized La Villa Burgers for its long-standing commitment and contributions to the local business community, highlighting its dedicated service, quality food, outstanding customer service, and continued investment.

4. REPORT ON CLOSED SESSION
John Pinkney, City Attorney
No reportable action on closed session items.

5. PUBLIC COMMENTS, CORRESPONDENCE, APPOINTMENTS, AND REPORTS

5.1 PUBLIC COMMENTS
• Inge Schuler expressed surprise at misleading mailers from the Sunset Crossroads developer, which omitted any mention of warehouses while highlighting a new fire station, local jobs, a new park, and open space. She noted the discrepancy in job numbers between two mailers and questioned the developer for using the city's logo without permission. • Kevin Saunders of the Blue Zones Project provided an update on their initiatives in Banning, thanking the city for its support of healthy focus initiatives.

He mentioned successful events like the color run and a hiking event and announced an upcoming farmers market and a mixer on May 29th. He also urged the council to consider stronger policies around smoke shops and liquor stores to protect youth and neighborhood health, suggesting a policy to limit additional retailers and inviting collaboration with city staff. • Kathy Aranda directly addressed what she called "false and misleading public statements" by Mayor Richard Royce regarding data centers and battery energy storage systems (BES) connected to the Sunset Crossroads project.

She stated that approved documents, specifically Resolution 2026-29 and the Sunset Crossroads Specific Plan, permit data centers and BES as industrial uses, contradicting the Mayor's claims. She argued that these uses were intentionally added by the city and that projects consistent with the zoning and specific plan can move forward administratively without further council votes. • Resident commented on the misleading glossy mailers, the recent road groundbreaking, and the potential for increased truck traffic on local roads. He also questioned the number of warehouses, noting a perceived increase from an earlier agreement.
• Resident noted the closure of the "opportunity village" for the homeless and encouraged continued efforts to address homelessness. He also suggested Banning adopt Beaumont's practice of displaying flags along main streets on federal holidays.
• Scott Reeder expressed concern about the Sunset Crossroads project, describing it as a "shape-shifting question mark" with no clear definition of its uses. He highlighted that the specific plan acknowledges future leases to third parties with undefined uses, calling it a "blank check." He questioned the city's approval of the project, particularly the inclusion of an electrical substation despite claims of an insufficient power grid for data centers. He urged the council to pause and demand enforceable use restrictions for a more beneficial development.

5.2 CORRESPONDENCE
None

5.3 APPOINTMENTS

5.4 CITY COUNCIL COMMITTEE REPORTS
Council Member Wallace attended a joint Riverside and San Bernardino Cal Cities division meeting where flock cameras were discussed as a beneficial public safety tool. She also 48 3
announced a Veterans Town Hall hosted by Supervisor Gutierrez. Council Member Miller attended the ICSE conference in Las Vegas, and the Mayor also attended, noting increased interest and contacts for Banning. A full report on the ICSE conference will be provided later.

5.5 ANNOUNCEMENTS OF CITY COUNCIL MEMBERS
Council Member Wallace announced a Juneteenth celebration on June 19th at Rossville Williams Park, starting at 11:00 AM.

5.6 CITY TREASURER'S REPORT
City Treasurer Sue Savage presented the treasurer's report, highlighting the upcoming arrival of Sam's Club and the Sun Lakes Boulevard extension groundbreaking. She addressed the referendum on mega warehouses, stating it only stops those specific warehouses and not Sam's Club or the boulevard extension. Savage challenged the accuracy of a "glossy flyer" claiming a budget deficit, contrasting it with bank statements showing significant funds. She detailed the city's cash and investments, noting a decrease in total cash year- over year but an increase in revenue.

She questioned the city's practice of not earning interest on checking accounts and highlighted the removal of funds from an interest-earning account. Savage requested email access to all bank accounts for a full report and noted significant legal fees, including those for employee investigations. She pointed out a pattern of spending exceeding income and reiterated the city treasurer's offer to earn interest on checking account funds, which she stated the city council has failed to respond to.

5.7 CITY MANAGER'S REPORT
30-day Strategic Plan Update
The City Manager addressed the suggestion for holiday flags, explaining that in Beaumont, this is managed by a service club (Beaumont Lions Club) through donations, and Banning would need a similar nonprofit or volunteer group. She deferred questions about restricted funds and investments to the Finance Director. Regarding data centers and battery storage, she stated she was not prepared to discuss their status with the specific plan but noted that developers have indicated their intent is not for warehouses, though this is not in writing. She then addressed the mailer incident, confirming that the developer used the city logo without permission and that a press release was issued. The developer sent an apology letter, acknowledging ignorance of the city code prohibiting unauthorized use of the city seal. The City Manager stated there is no further follow-up without direction from the City Council.

Finance Director's Report on Restricted Funds
Finance Director Jennifer Terry explained that the total cash listed in the treasurer's report ($60.2 million) is spread across dozens of funds, most of which are restricted for specific purposes, such as grant revenue, gas tax, developer impact fees for projects like the Sun Lakes Boulevard extension, and other allocated funds. She clarified that the total amount is not solely from the general fund.

5.8 CITY ATTORNEY'S REPORT
The City Attorney reviewed Resolution 2026-58, the City of Banning Manual Procedural Guidelines, Decorum, and Order, specifically Article 9.

9.1 Consideration of Motion for Censure Initiated by Council Member Flynn against Council Member Wallace.

Recommendation: None
49 4
The City Attorney confirmed she would lead the staff report on item 9.1, the public censure of a council member. She explained that Council Member Flynn initiated the process against Council Member Wallace. The hearing will be conducted in open session, starting with a reading of the charges by the charging member, followed by a statement and rebuttal from the member charged.

Witnesses may be presented, and closing statements will be made by both parties, with the charged member speaking last. The public will then have an opportunity to speak, followed by comments and a vote from the remaining council members. The Mayor then deferred to Council Member Flynn to present her opening charges.

Censure Procedures and Opening Statements
The meeting facilitator outlines the procedure for the censure process. The member being charged will have the opportunity to make a closing statement and will speak last. Following this, members of the public will be invited to speak either in favor or in opposition to the charges. Finally, the remaining council members will deliberate and vote on the matter. Council Member Flynn is then asked to present her opening charges.

Council Member Flynn read the charges against Council Member Wallace, alleging violations of the Banning Manual Procedure Guidelines (BMPG) and Municipal Code (BMC) regarding public censure.

Key Allegations
• Improperly filed complaint with HR instead of the City Manager or Attorney. • Failure to follow administrative policies AP-14 sections 3, 4, 5, and 6. • Caused an unnecessary outside investigation.
• Allegations included name-calling, questioning travel expenses, and preventing the Pledge of Allegiance.
• Procedural violations, not the content of the original complaint, are the basis for censure.

Council Member Wallace's Response
Council Member Wallace stated she followed procedures and did not intend to censor Council Member Flynn, citing a desire for respect due to alleged cursing, threats, and confrontational behavior from Council Member Flynn.
• She claimed not to have received the November 19th email about proper procedures. • Mentioned Council Member Flynn's alleged prior expense to the city regarding SCAG. • Asserted state procedures overrule local ones and that her actions were a response to disrespect.

Witness Testimony in Support of Council Member Wallace
• Karina Moreno (Council Member, Palm Desert): Described Wallace as a dedicated advocate who fights for her community and has a strong focus on economic development. • Daniela Andrade (Former Mayor): Expressed opposition to the censure, noting similar past attempts were voted down.
• Jeff Platt: Emphasized the importance of consistent governmental standards, fairness, due process, and equal treatment for all.

Council Member Wallace's Final Remarks
50 5
Council Member Wallace maintained she followed procedures, that state law overrules local, and reiterated her call for respect. She again alleged Mayor Flynn used profanity and name-calling, claiming to have witnesses and video evidence. She also stated that HR indicated Flynn refused mediation, while she had agreed.

Council Discussion and Conclusion
• Council Members discussed their options, noting that a motion for censure would require a unanimous vote.
• A Council Member suggested the current situation was "dirty laundry" and that censure might be counterproductive given the understanding of proper protocols. • The Mayor acknowledged procedures may not have been followed but emphasized moving forward with new HR and legal staff and procedures in place. • Seeing no motion to censure, the Mayor declared the hearing closed.

6. CONSENT ITEMS
The following items have been recommended for approval and will be acted upon simultaneously, unless a member of the City Council/Banning Utility Authority/Successor Agency Board wishes to remove an item for separate consideration.

6.1 Consideration and Approval of the meeting minutes of the May 12, 2026, Closed Session and Workshop City Council meetings.

6.3 Receive and File Code Enforcement Statistics for the Month of April 2026 Recommendation: Receive and file

6.4 Receive and File Police Department Statistics for the Month of April 2026 Recommendation: Receive and file.

6.5 Receive and File Animal Control Statistics for the Month of April 2026 Recommendation: Receive and file

6.6 Community Cleanup and Compost Giveaway Event Update Recommendation: This is informational only; receive and file report.

6.7 Accept a Right of Way Dedication for Road and Utility Purposes on APN 541-133-014 (245 N Evans Street).

Recommendation: Accept the Right of Way Dedication for Road and Utility Purposes

6.8 Accept an Easement for Public Drainage, Storm Drain, and Maintenance Purposes for APN 537-090-038 (near 3610 Ramsey Street).

Recommendation: Accept an easement for Public Drainage, Storm Drain, and Maintenance Purposes

6.9 Consideration for Amendment No. 1 to Professional Services Agreement (C01231) for Homeless Encampment Clean Up, Illegal Dumping Abatement, and Graffiti Removal Services by and between City of Banning and Clean Harbors Environmental Services, Inc.

Recommendation: Adopt Resolution 2026-74

6.10 Receive and file Accounts Payable and Payroll Warrants issued for the months of January through March 2026.

Recommendation: Receive and file
51 6

6.11 Consideration of Resolution 2026-77, Approving the Professional Services Agreement with Cornerstone Utility Engineering
Recommendation: Adopt Resolution 2026-77
Council Member Miller left at 7:00 p.m. due to illness.

Mayor Royce opened public comment on consent calendar
• Ingle Schuler expressed disappointment with code enforcement, citing long-standing issues with a boat parked on Westwood Avenue and multiple eighteen wheelers parked behind a property. Concerns were raised about potential contaminants and the lack of action despite numerous complaints.
• Frank Connelly commented on the extensive accounts payable and payroll warrants, emphasizing the need for thorough review during budget season.

Council member Wallace motioned to accept consent items 6.1 through 6.11, Seconded by Mayor Pro Tem Barrington – Motion passed 4-0-1 - Miller absent.

7. PUBLIC HEARINGS

7.1 City Initiated Code Amendment to add Section 15.12.055 to Chapter 15.12 of Title 15 (Building and Construction) Regarding Refunds
Recommendation: Introduce by title and waive further reading of Ordinance.

Matt Wise, the Building Official, presented Ordinance 1623, which proposes adding a section to the Banning Municipal Code to establish policies for refunding permit fees. This ordinance aims to ensure transparency and consistency in the refund process, aligning with the California Building Code.

Mayor Royce opened public hearing at 7:10 p.m.

No public comments
Mayor Royce closed public hearing at 7:10 p.m.

Council Member Wallace motioned to introduce by title and waive further reading of Ordinance, Seconded by Mayor Pro Tem Barrington – Motion passed 4-0-1 - Miller absent.

8. REPORTS OF OFFICERS
None

9. DISCUSSION/ACTION ITEMS

9.2 Consideration of Resolution 2026-75, Approving the 2025 Engineering and Traffic Survey and Adopting Updated Speed Limits for 70 Specified Streets Within the City of Banning.

Recommendation: Adopt Resolution 2026-75
Nate Smith, Deputy Director of Public Works, presented Resolution 2026-75, which adopts the findings of the 2025 Engineering and Traffic Survey. This survey recommends updating speed limits on 70 roadway segments throughout the city. The resolution also directs staff to install new speed limit signs and to draft an ordinance establishing a 25-mph speed limit on all local residential streets.
● Rationale: California Vehicle Code requires regular traffic surveys to justify speed limits for enforcement.
● Impact of AB 43: Provides more flexibility for lowering speed limits.

The survey evaluated 70 locations, considering crash data, roadway conditions, and observed speeds. Roads with speed limit reductions were highlighted in green, while those with increases were yellow. 52
7 ● Key Reductions: Significant drops on 22nd Street and Ramsey Street. ● Key Increases: Williams Street between Sunset and Sunrise (25 mph to 35 mph). ● Wilson Street: Speed limit reduced from 45 mph to 40 mph in some sections.

Residents and council members raised concerns about specific street speed limits, particularly on Wilson Street due to safety issues and speeding. Discussions also touched upon the feasibility of speed bumps versus speed cushions and the impact of truck traffic on road stress. ● Wilson Street Safety: Concerns about fatalities and blind spots due to a hill. ● Hargrave Street: Proposed speed increase questioned due to residential and park usage. ● Wesley Street: Appreciation for the speed limit reduction but concerns about persistent speeding.
● Truck Traffic: The impact of heavy truck loads on road infrastructure was discussed.

Council member Wallace motioned to adopt Resolution 2026-75, approve the traffic survey, and direct staff to update speed limit signs, Seconded by Mayor Pro Tem Barrington – Motion passed 4-0-1 - Miller absent.

9.3 Consideration of Resolution 2026-76, Approving the Short-Range Transit Plan for Fiscal Year 2026/2027-2028/2029 and Authorizing the Submittal of the FY 2026/2027 Funding Claims Recommendation: Adopt Resolution 2026-76
Art Vela, Public Works Director, presented the Short-Range Transit Plan for fiscal years 2026-2029.

The plan outlines transit operations, capital improvements, and funding needs. The Banning Connect Transit System, established in 1973, currently operates two fixed routes and a dial-aride service, covering Banning and Cabazon, with stops in Morongo Casino and Beaumont. ● Fleet: 7 fixed-route buses and 4 dial-a-ride vehicles. ● New CNG Station: Completed and generating revenue, contributing to Farebox recovery. ● Ridership: Near pre-pandemic levels, aided by a free fare program.

The SRTP details funding sources, including the Local Transportation Fund (LTF), State Transit Assistance Program, State of Good Repair program, and Low Carbon Transit Operations Program (LCTOP). The city is requesting approximately $2.7 million in LTF funds, with a total operating budget of $3.1 million. Revenue from CNG fuel sales and transit advertising is helping to meet the 10% Farebox recovery requirement, reducing reliance on general funds.
● Total Operating Budget: $3.1 million.
● Farebox Recovery Goal: 10% ($313,300).
● Revenue Supplements: CNG fuel sales and transit advertising.

Proposed service improvements include removing a bus stop at Sun Lakes Village Drive due to concerns about loitering and activity related to correctional facility releases. The stop is used by a small percentage of riders. The council discussed whether to remove the city's stop and request RTA to remove theirs, or to remove only the RTA stop initially. ● Sun Lakes Village Drive Stop: Low ridership (1.6% of total) and community concerns. ● Proposed Action: Remove the RTA stop and monitor the impact on Banning Connect ridership. ● Alternative Transfer Point: Walmart.

No public comments
Council Member Wallace motioned to adopt Resolution 2026-76, approve the Short-Range Plan, and direct staff to remove the RTA stop from Sun Lakes Village Drive and conduct a 30-day study of 53 8
Banning Connect ridership at that location, Seconded by Mayor Pro Tem Barrington – Motion passed 4-0-1 - Miller absent.

10. ITEMS FOR FUTURE AGENDAS

11.1 NEW ITEMS

1. Landscape Standards Review (Wallace) May 2026

2. Special Event Fee Schedule and Permit Process Review (Miller) May 2026

11.2 EXISTING ITEMS

1. Emergency Preparedness (Barrington) January 2025

2. Streamline Procurement Policy (Flynn) August 2025

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

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

5. Continue Food Truck Festival (Barrington) January 2026

6. Maintenance and replacement of street signs. (Flynn) March 2026

7. Rename the Arthur Welch Community Center back to the National Guard Armory (Flynn) April 2026

8. Smoke Shop Moratorium (Miller) April 2026

11. ADJOURNMENT
Council Member Wallace motioned to adjourn, Seconded by Mayor Pro Tem Barrington – Motion passed 4-0-1 Miller absent
The meeting adjourned at 8:07 p.m.

Minutes prepared by:

Sandra B. Calderon
Deputy City Clerk
These minutes have been prepared as Summary Minutes in accordance with City Council Resolution 2025-22 and Government Code Sections 36814, 40801, and 54953(c)(2).

The entire discussion of this meeting may be viewed here:
https://banningca.granicus.com/player/clip/320?view_id=1&redirect=true 54 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (CLOSED SESSION)
JUNE 9, 2026 – 3:00 p.m.

1. CALL TO ORDER – 3:02 p.m.

COUNCIL MEMBERS PRESENT: Mayor Richard Royce
Mayor Pro Tem Cindy Barrington
Council Member Sheri Flynn
Council Member Leroy Miller
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: Elizabeth Gibbs, City Manager
Art Vela, Director of Public Works
John Pinkney, City Attorney
Vickie Sellers, City Clerk
Sandra Calderon, Deputy City Clerk

2. PUBLIC COMMENTS - Agenda Items Only
There were no public comments

3. CLOSED SESSION

3.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8.

Property: Banning Municipal Airport consisting of approximately 232.41 acres comprised of APNs 541-240 -009; 541-250 -009; 541-140-003; 532-150-002; 532-150-003; 532-150- 004; 532- 130 - 012; 532-130-018; 532-130-011; 532-180- 034.

Agency Negotiator: City Manager Elizabeth Gibbs or her designee.

Negotiating Parties: City of Banning as potential Lessor and Industrial Enterprises, LLC as potential Lessee.

Under Negotiations: Price and Terms of proposed ground lease.

3.2 CONFERENCE WITH LEGAL COUNSEL – SIGNIFICANT EXPOSURE TO LITIGATION – Pursuant to Government Code Section 54956.9(d)(2) and/or (3) One (1) Potential Case

3.3 CONFERENCE WITH LEGAL COUNSEL – INITIATION OF
LITIGATION Deciding Whether to Initiate Litigation
Pursuant to Government Code Section 54956.9(d)(4)
Number of Cases: One (1)
55 2

3.4 CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representative Elizabeth Gibbs or her designee Employee Organizations: International Brotherhood of Electrical Workers- General unit.

International Brotherhood of Electrical Workers – Utilities. Teamsters. Banning Police Officers Association. Banning police management association. Unrepresented Employees:

Non-Management Confidential Employees Group; Management Confidential Employees Group as defined in Council Resolution 2024-137.

Council Members recessed to Closed Session at 3:04 p.m. to discuss the items listed.

The City Council reconvened in open session with no reportable action taken.

4. ADJOURNMENT
Council Member Miller motioned to adjourn, seconded by Mayor Pro Tem Barrington.

The question was called by roll call vote and the motion carried unanimously.

The meeting adjourned at 4:39 p.m.

Minutes prepared by:

Sandra B. Calderon
Deputy City Clerk
These minutes have been prepared as Summary Minutes in accordance with City Council Resolution 2025-22 and Government Code Sections 36814, 40801, and 54953(c)(2).

The entire discussion of this meeting may be viewed here:
https://banningca.granicus.com/player/clip/321?view_id=1&redirect=true 56 1

MINUTES

CITY COUNCIL - SPECIAL MEETING (WORKSHOP)
JUNE 9, 2026 – 4:00 p.m.

1. CALL TO ORDER– 4:40 p.m.

2. WORKSHOP

2.1 Wastewater Treatment Plant and Recycled Water Upgrades Project Update and Next Steps Recommendation: It is recommended that the City Council:

Receive a presentation and update on the Wastewater Treatment Plant and Recycled Water Upgrades Project;
Review the work completed to date, current project cost estimates, and available options for moving the project forward; and
Provide direction to staff to proceed with Option B.3: Terminate the current Progressive Design- Build Contract and develop/implement a funding strategy for the original scope of work split into two phases: Phase I - Conventional Wastewater Treatment Plant Improvements; and Phase II - Reverse Osmosis and Brine Management.

Staff's Recommended Option: B3
Option B3 offers the best balance between compliance, reliability, financial responsibility, and recycled water goals.
● Off-ramps current progressive design-build contract.

While recommended, Option B3 has associated risks:
● Increased Costs: Delays can escalate project costs.
● Grant Eligibility: Needs active management. 57
2 ● Existing Infrastructure: Continued reliance on the aging plant during transition. ● Rate Impacts: Must be understood and managed.
● Beaumont Basin Requirements: Still need to be addressed in Phase 2. ● Mitigation: Grant coordination, updated rate analysis, funding strategy development, interim maintenance, and evaluation of brine management/blending options.

Proposed Next Steps (Upon Council Support for B3)
● Initiate off-ramp process for the current PDB contract. ● Continue grant coordination with the Bureau of Reclamation. ● Initiate updated water and wastewater rate study.
● Complete plans for a traditional design-bid-build delivery. ● Continue seeking additional funding, evaluating phase two options, and the environmental process.
.

3. PUBLIC COMMENTS - Agenda Items Only
There were no public comments

4. ADJOURNMENT
Council Member Wallace made a motion to proceed with Option B3, seconded by Mayor Pro Tem Barrington.

The question was called by roll call vote and the motion carried unanimously.

The meeting adjourned at 5:14 p.m.

Minutes prepared by:

Sandra B. Calderon
Deputy City Clerk
These minutes have been prepared as Summary Minutes in accordance with City Council Resolution 2025-22 and Government Code Sections 36814, 40801, and 54953(c)(2).

The entire discussion of this meeting may be viewed here:
https://banningca.granicus.com/player/clip/322?view_id=1&redirect=true 3 58

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Sandra Calderon, Deputy City Clerk
Todd Hopkins, CalFire Division Chief
MEETING DATE: June 23, 2026
SUBJECT: Receive and File Fire Protective Services Statistics for the Month of May 2026
STAFF RECOMMENDATION:

Receive and file
BACKGROUND:

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

JUSTIFICATION:

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

FISCAL IMPACT:

None
ATTACHMENTS:

1. jurisreport_banning.pdf
59 Robert Fish
Jurisdiction Summary for City of Banning
Fire Chief
Riverside County Fire Department/ CAL FIRE
5/1/2026 to 5/31/2026
Incident Response Activity
*At least 1 Resource Dispatched
Incident Type #
2 False Alarm 25
Medical 392
Other Fire 4
Other Misc 2
Public Service Assist 31
Ringing Alarm 2
Traffic Collision 11
Vehicle Fire 1
Wildland Fire 3
Incident Total 473
Average Enroute to On-Scene Time
*Units Responding Charlie, Delta, Bravo, Echo, Code 3
9 275 56
2 4.35 80.41
<5 Minutes +5 Minutes
+10 Minutes +20 Minutes
Average Min % 0 to 5 Min
Enroute Time: Unit has been acknowledged as responding.

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

Transport
*Based on Units with a Transport time
0 Total: 0
Mutual Aid
*Unit responses
Jurisdiction Units Responses
Engine 179
Total: 179
Mutual Aid Given
Engine 197
Total: 197
Mutual Aid Received
Brush 23
Chief 1
Engine 323
MRF 27
Nurse 4
Patrol 8
Squad 22
Total: 408
6/1/2026 1:41:08PM Page 1 of 260
Truck Report
recorded 0 responses in from 5/1/2026 1:40:10 PM to 5/31/2026 1:40:10 PM Significant Incidents
6/1/2026 1:41:08PM Page 2 of 261

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Brandon Smith, Lieutenant
Vincent Avila, Chief of Police
MEETING DATE: June 23, 2026
SUBJECT: Receive and File Police Department Statistics for the Month of May 2026 STAFF RECOMMENDATION:

Receive and file
BACKGROUND:

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

JUSTIFICATION:

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

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Group A Offense Report May 2026.pdf

2. Police Stats May 2026.pdf
62 Offense Reported
in 2026
Reported
in 2025
Percent
Change
Offenses
Cleared
Percent
Cleared
Percent Of
Category
Rate Per
100,000*
Murder 0 0 NA 0 0.00% 0.00% 0.00
Negligent Manslaughter 1 0 NA 0 0.00% 3.13% 3.13
Justifiable Homicide 0 0 NA 0 0.00% 0.00% 0.00
Non-consensual Sex Offenses:

Rape 0 2 -100.00% 0 0.00% 0.00% 0.00
Sodomy 0 0 NA 0 0.00% 0.00% 0.00
Sexual Assault with Object 0 0 NA 0 0.00% 0.00% 0.00
Fondling 0 0 NA 0 0.00% 0.00% 0.00
Aggravated Assault 14 6 133.33% 6 42.86% 43.75% 43.75
Simple Assault 13 13 0.00% 6 46.15% 40.63% 40.63
Intimidation 2 0 NA 0 0.00% 6.25% 6.25
Kidnapping/Abduction 2 2 0.00% 2 100.00% 6.25% 6.25
Consensual Sex Offenses:

Incest 0 0 NA 0 0.00% 0.00% 0.00
Statutory Rape 0 0 NA 0 0.00% 0.00% 0.00
Human Trafficking, Commercial
Sex Acts
0 0 NA 0 0.00% 0.00% 0.00
Human Trafficking, Involuntary
Servitude
0 0 NA 0 0.00% 0.00% 0.00
Crimes Against Persons Total 32 23 39.13% 14 43.75% 27.59% 100 Robbery 0 0 NA 0 0.00% 0.00% 0.00
Burglary/Breaking & Entering 1 5 -80.00% 0 0.00% 2.00% 3.13 Larceny/Theft Offenses 22 16 37.50% 4 18.18% 44.00% 68.75 Motor Vehicle Theft 9 7 28.57% 0 0.00% 18.00% 28.13
Arson 2 0 NA 2 100.00% 4.00% 6.25
Destruction Of Property 13 6 116.67% 2 15.38% 26.00% 40.63 Counterfeiting/Forgery 1 2 -50.00% 0 0.00% 2.00% 3.13
Fraud Offense 2 1 100.00% 0 0.00% 4.00% 6.25
Embezzlement 0 0 NA 0 0.00% 0.00% 0.00
Extortion/Blackmail 0 0 NA 0 0.00% 0.00% 0.00
Bribery 0 0 NA 0 0.00% 0.00% 0.00
Stolen Property Offenses 0 2 -100.00% 0 0.00% 0.00% 0.00 Crimes Against Property Total 50 39 28.21% 8 16% 43.1% 156.25 Drug/Narcotic Violations 16 7 128.57% 16 100.00% 47.06% 50.00 Drug Equipment Violations 12 4 200.00% 12 100.00% 35.29% 37.50 Gambling Offenses 0 0 NA 0 0.00% 0.00% 0.00
Pornography/Obscene Material 0 0 NA 0 0.00% 0.00% 0.00
Prostitution 0 0 NA 0 0.00% 0.00% 0.00
Weapons Law Violation 6 2 200.00% 3 50.00% 17.65% 18.75 Animal Cruelty 0 0 NA 0 0.00% 0.00% 0.00
Crimes Against Society Total 34 13 161.54% 31 91.18% 29.31% 106.25 Agency: BANNING PD
Total Group "A" Offenses 116 75 54.67% 53 45.69% 100% 362.5 Statewide Crime Profile * Adjusted population base: 32,000 2026 Crime in California

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

Group A Offense Report
Beginning Date: 05/01/2026 Ending Date: 05/31/2026
Printed On: 06/15/2026

Page 1 of 1 ends

63 CRIME May-26 May-25 % CHGE YTD-26 YTD-25 % CHGE
PART 1 CRIMES
Homicide 0 2 -100% 0 3 -100%
Rape 0 1 -100% 2 2 0%
Robbery 0 0 0% 6 3 100%
Assaults Agg/Simp 27 18 50% 71 66 8%
Burglary 1 2 -50% 3 38 -92%
Vehicle Theft 9 2 350% 26 25 4%
Larceny 22 10 120% 83 56 48%
OTHER
Narcotics 16 3 433% 41 38 8%
DUI 3 2 50% 12 8 50%
T/C Non-Injury 24 2 1100% 109 42 160%
T/C Injury 1 4 -75% 11 21 -48%
T/C Fatal 0 0 0% 1 0 100%
Transient Calls 141 166 -15% 682 632 8%
Unattended Death 5 7 -29% 26 35 -26%
246PC 2 1 100% 4 11 -64%
Citations 152 56 171% 613 282 117%
Total Incidents 3138 2852 10% 15927 14195 12%

BANNING POLICE DEPARTMENT
MAY, 2026
64 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: June 23, 2026
SUBJECT: Receive and File Code Enforcement Statistics for the Month of May 2026 STAFF 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. Code Stats May 2026.pdf
65 Code Enforcement May-26 May-25 % CHGE YTD-26 YTD-25 % CHGE New Cases Opened 57 49 16% 449 160 181%
Total Cases Open (Active) 245 398 -38% 1260 1990 -37%
Notice of Violations Issued 183 119 54% 1231 491 151%
Violations Resolved 255 113 126% 1238 553 124%
Citations Issued 40 7 471% 156 37 322%
Inspections Completed 176 97 81% 1191 477 150%
Collected Fee's (Citations) $ 4,985.00 $ - 498500% $ 13,495.00 $ 1,946.67 593% Red Tagged Properties 0 3 -100% 9 15 -40%
AVA Program Vehicles Abated 0 0 0% 4 0 400%
Weed Abatement Cost Recovery $ 6,945.90 $ - 694590% $ 23,686.40 $ 90,935.03 -74% 72 Hour Parking (NOV) CVC 22651 K 4 0 400% 81 3 2600%
Unhoused Encampments Tagged (PC602) 24 3 700% 91 3 2933% Calls For Service 137 1 13600% 744 5 14780%

BANNING POLICE DEPARTMENT
MAY, 2026
66 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: June 23, 2026
SUBJECT: Receive and File Animal Control Statistics for the Month of May 2026 STAFF 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. ACO Stats 2026 May.pdf
67 ANIMAL CONTROL May-26 May-25 % CHGE YTD-26 YTD-25 % CHGE Calls for Service 130 120 8% 664 498 33%
Animals Impounded 29 3 867% 116 9 1189%
Animals Euthanized 8 0 800% 15 3 400%
Bite Reports 6 5 20% 14 15 -7%
Citations Issued 2 0 200% 11 0 1100%
Expenses $ 714.00 $ 4,241.48 -83% $ 11,345.95 $ 8,039.86 41% Revenue $ 14.66 $ 972.00 -98% $ 1,696.56 $ 4,650.00 -64%

BANNING POLICE DEPARTMENT
MAY, 2026
68 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Matt Weise, Building Official
Matthew Bassi
MEETING DATE: June 23, 2026
SUBJECT:

Second Reading of Ordinance No. 1623 (Title 15 Code Amendment) STAFF RECOMMENDATION:

Staff recommends the City Council approve the second reading of Ordinance No. 1623.

BACKGROUND:

The City Council reviewed and approved the first reading of Ordinance No. 1623 at its Council meeting of May 26, 2026. It would be appropriate at this time for City Council to adopt the 2nd reading of Ordinance No. 1623. If approved, Ordinance No. 1623 will become effective on July 23, 2026 (30 days after 2nd reading).

JUSTIFICATION:

The City enforces the State-adopted model building standards for the purpose of regulating the design, construction, and quality of structures in order to protect life, health, safety, and property. Within the administrative provisions of these codes, Section 109.6 of the California Building Code (CBC) authorizes the Building Official to establish policies governing the refund of building permit fees. The proposed ordinance amends Title 15 of the Banning Municipal Code to provide clear and express authorization for the Building Official to administer and issue refunds associated with building permits, consistent with the California Building Code. For reference, the Building and Safety Division issues approximately 6 to 12 refunds annually to residents and contractors operating or residing within the City. The value of these refunds is typically less than $500.00 per refund after staff costs are considered.

This amendment is intended to ensure transparency, consistency, and equitable treatment in the administration of permit fee refunds, while formally establishing the City’s policy that monetary refunds are only issued for the remaining balance of the permit fee collected, once portions of staff services related to the administration, processing, plan review, or inspection of permit applications have been rendered. The California Building Code Section 109.6 authorizes the Building Official to establish a refund policy for building permit fees. Hence, the proposed code amendment request.

Upon review of the existing Banning Municipal Code, staff has determined that it does not currently 69 contain clear and concise provisions establishing a citywide building permit refund policy. The absence of a formally adopted policy creates the potential for inconsistent application of refunds, which may give rise to public perception of inequity, preferential treatment, or favoritism between industry professionals and owner-builder applicants. Such inconsistency undermines transparency and public trust in the permitting process. Accordingly, the establishment of a standardized refund policy is necessary to ensure that all applicants are treated in a fair, impartial, and uniform manner. This policy will provide clear guidance for the administration of refunds related to building permits, regardless of an applicant’s level of experience, knowledge, or resources, and will promote consistency, accountability, and confidence in the City’s regulatory processes.

FISCAL IMPACT:

There is no direct fiscal impact associated with this action.

ATTACHMENTS:

1. Refund_Policy_Ordinance_1623_PAN_MDW_Final.docx
70 Ordinance 1623

Page 1 of 5 ends

ORDINANCE 1623
AN ORDINANCE OF THE CITY OF BANNING, CALIFORNIA, ADDING SECTION 15.12.055 TO CHAPTER 15.12 (PERMITS) OF TITLE 15 (BUILDING AND CONSTRUCTION) OF THE

BANNING MUNICIPAL CODE TO AUTHORIZE THE BUILDING OFFICIAL TO ISSUE REFUNDS OF PERMIT FEES.

WHEREAS, pursuant to Article XI, Section 7 of the California Constitution, the City of Banning is authorized to adopt and enforce ordinances and regulations not in conflict with the general laws to protect the public health, safety, and welfare; and WHEREAS, the City of Banning is authorized to adopt and enforce building regulations pursuant to the California Building Code (CBC), as adopted and amended by the City; and
WHEREAS, Chapter 15.12 of Title 15 (Building and Construction) of the Banning Municipal Code regulates building permits within the City; and WHEREAS, the collection of building permit, plan review, and inspection fees is necessary to recover the City’s cost of providing such services; and WHEREAS, the City Council has independently reviewed and considered the requirements of the California Environmental Quality Act (CEQA) and finds that the proposed amendment is not subject to CEQA pursuant to Section 15060(c)(2) and (c)(3) of the CEQA Guidelines, as the amendment will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project” as defined in Section 15378 of the CEQA Guidelines.

NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANNING, RIVERSIDE COUNTY, STATE OF CALIFORNIA AS FOLLOWS:

SECTION 1. INCORPORATION OF RECITALS.

The recitals reflected above are true and correct and incorporated herein by this reference as the cause, purpose, and foundation for the action taken by the City Council through this Ordinance.

SECTION 2. ENVIRONMENTAL DETERMINATION.

The City Council finds that adoption of this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) and (c)(3) of the CEQA Guidelines because the adoption of Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project” as defined in Section 15378 of the CEQA Guidelines
71 Ordinance 1623

Page 2 of 5 ends

SECTION 3. SEVERABILITY.

The City Council hereby declares that if any provision, section, paragraph, sentence, or word of this Ordinance is rendered or declared to be invalid or unconstitutional by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, such invalidity shall not affect the other provisions, sections, paragraphs, sentences, or words of this Ordinance, and to this end the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed, and the balance of the Ordinance enforced.

SECTION 4. PROSECUTION OF PRIOR ORDINANCES.

Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution of any violation of any City ordinance or provision of the City of Beaumont Municipal Code, committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 4. FINDINGS.

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

A. That establishing a standardized refund policy promotes fairness, transparency, and consistency in the administration of such fees.

B. The City Council finds that the proposed amendment is consistent with the goals and policies of the City of Banning General Plan, including Housing Element Goal

1.0, which promotes the maintenance and preservation of the City’s existing housing stock; and
SECTION 5. AMENDMENT TO THE BANNING MUNCICPAL CODE.

Chapter 15.12 - Permits, is amended to add Section 15.12.055 – Refunds, to read as follows:

Section 15.12.055 - Refunds.

A. The Building Official may issue a refund if the applicant meets the following eligibility requirements:

1. If the applicant withdraws its application prior to the initiation of the plan review process, a refund of up to eighty percent (80%) of the permit fee may be refunded if no plan review has been performed.

2. If the Plan review process has been initiated but not completed, up to fifty percent (50%) of the plan review fee may be refunded, as determined by the Building 72 Ordinance 1623

Page 3 of 5 ends

Official based upon the percentage of plan review work completed. In no event will the refund exceed fifty percent (50%) of the plan review fee.

3. If the plan review has been completed but a permit has not been issued, a refund of the plan review fees is not authorized and will not be granted. A full refund of the permit Inspection fees may be refunded if the permit has not been issued.

4. If the permit has been issued but no inspections have been performed up to eighty percent (80%) of the inspection fee may be refunded.

5. If the permit has been issued and inspections performed, a refund of the permit inspection fees is not authorized and will not be granted.

B. The following fees are not eligible for refund:

1. Permits that have expired due to inactivity or abandonment.

2. Permits that have been finaled or closed.

3. Administrative and processing fees.

4. State-mandated fees (including, but not limited to, seismic and fire-related surcharges).

5. Third-party consultant or contract service fees.

C. Exceptions:

The Building Official, in his or her sole discretion, may authorize exceptions where a fee was collected in error or where extraordinary circumstances justify deviation from this policy.

SECTION 7. CERTIFICATION AND PUBLICATION.

The Mayor shall sign and the City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Banning’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

SECTION 8. EFFECTIVE DATE.

This Ordinance will become final and effective thirty (30) days following its passage and adoption by the City Council.

INTRODUCED AND READ for the first time and ordered posted at a regular meeting of the City Council of the City of Banning, California, held on the 26th day of May 2026, by the following roll call vote:

AYES: Barrington, Flynn, Royce, Wallace
NOES: None
ABSENT: Miller
73 Ordinance 1623

Page 4 of 5 ends

ABSTAIN: None
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Banning, California, held on the 23
rd of June 2026.

AYES:

NOES:

ABSENT:

ABSTAIN:

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
74 Ordinance 1623

Page 5 of 5 ends

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that Ordinance 1623 was duly introduced at a regular meeting of the City Council of the City of Banning, held on the 26th of May 2026, and was duly adopted at a regular meeting of said City Council on the 23rd day of June 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
75 CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: June 23, 2026
SUBJECT: Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of the Mountain North Potable Water Reservoir by Tri-Pointe Homes
STAFF RECOMMENDATION:

Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of the Mountain North Potable Water Reservoir by Tri-Pointe Homes BACKGROUND:

A condition of approval for the Atwell Specific Plan is the construction of a potable water reservoir for the planned Mountain North pressure zone. This pressure zone is unique to the Atwell project, and the improvement is necessary to provide water pressure and storage necessary for fire protection for structures in the Mountain North pressure zone. This pressure zone is roughly north of the Southern California Edison Easement and south of the future extension of Highland Home Road as it curves to the west to meet Highland Springs Avenue.

A Subdivision Improvement Agreement is a binding agreement that protects the City of Banning when private development constructs what will be public facilities. A stipulation in the agreement is that the developed provides Payment Bonds and Faithful Performance Bonds that ensure if there is a work stoppage by the developer at a critical phase of construction, the City can call on the bonds to ensure that suppliers are paid for the materials supplied, and/or labor costs to complete the improvements.

The Subdivision Improvement Agreement identifies when a project will be accepted by the City of Banning for public maintenance and operation. Upon satisfactory completion of the work as approved by the City Engineer, an acceptance and bond reduction will be brought to City Council for consideration.

From that point, there will be a 12-month warranty period where any defects will be corrected by the developer. After the 12-month warranty period, and upon satisfactory condition approved by the City Engineer, the remaining bond amounts would be exonerated by staff.

JUSTIFICATION:

The Subdivision Improvement Agreement and required bonds are standard practice by the City of Banning where public improvements are being constructed by private developers as a measure to protect the City of Banning if the improvements were left incomplete or present a hazard to the public.

FISCAL IMPACT:

None
76 ATTACHMENTS:

1. SIA MNZ Reservoir.pdf

2. MNZ Bonds.pdf
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: June 23, 2026
SUBJECT: Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of Highland Home Road North within Tract Map 39262-1
STAFF RECOMMENDATION:

Accept a Subdivision Improvement Agreement, Payment Bond, and Faithful Performance Bond for the Construction of Highland Home Road North within Tract Map 39262-1 BACKGROUND:

A condition of approval for the Atwell Specific Plan is the construction of necessary backbone roadway improvements that include Highland Home Road. The portion of Highland Home Road covered by this agreement is roughly from the Southern California Edison easement northerly within the limits of Tract Map 39262-1.

JUSTIFICATION:

FISCAL IMPACT:

None
ATTACHMENTS:

1. SIA HHR North.pdf
129

2. HHR North Bonds
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: June 23, 2026
SUBJECT: Accept as Complete Various Improvements Related to the Atwell Specific Plan Development and Authorize a 90% Reduction of the Improvement Bonds
STAFF RECOMMENDATION:

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

BACKGROUND:

On September 13, 2022, City Council adopted Resolution 2022-122 approving Final Map 37389-1, authorizing staff to sign the map and subdivision improvement agreements, release the map for recordation, and accept the performance and labor and material bonds for public improvements. This map included requirements for the construction of Apex Street and Meadowline Way within the map boundary.

As conditions of approval for the Atwell Specific Plan development, Tri Pointe Homes was required to sign subdivision improvement agreements and to submit bonds to assure the City that the required public improvements are constructed according to City standards and specifications. These public improvements include onsite street, sewer, water, and non-potable water.

JUSTIFICATION:

Staff has verified through inspections that the required public improvements were completed per City standards and specifications and recommends that City Council accept the improvements as complete and authorize the 90% bond reduction for the following bonds:

Bond # Bond Amount Improvements
30164648 $171,729.50
Apex Street NP Water
Improvements
30164649 $1,003421.23 Apex Street Improvements
30164650 $283,820.00 Apex Street Water Improvements
30164659 $255,909.50 Meadowline Way NP Water
Improvements
30164660 $108,859.00 Meadowline Way Sewer
Improvements
30164661 $1,358,057.54 Meadowline Way Street
Improvements
218
30164662 $597,136.35 Meadowline Way Water
Improvements
The remaining 10% of the bond amounts will remain for a period of 12 months (maintenance period) at which point the 10% balance will be released and the improvements will become City owned and maintained improvements.

FISCAL IMPACT:

Not Applicable
ATTACHMENTS:

1. Apex Street Non-Potable, Water and Street Bonds.pdf

2. Apex Street Improvements Exhibit.pdf

3. Meadowline Way Non-Potable, Water, Sewer and Street Bonds.pdf

4. Meadowline Way Improvements Exhibit.pdf

5. Atwell TR#37389-1, 37389-2, 37389-3, 37389-5 Subdivision Improvement Agreement.pdf 219
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APEX STREET
LEGEND:

APEX STREET
PHASE 2A-2, APEX STREET EXHIBIT

WILSON STREET

HIGHLAND
ESTATES NO.1
PA 19
PA 35A
PA 20
PA 14

MEADOWLINE WAY
PA 5B
PA 13 PA 10
PA 5A
PA 12

CEDARWOOD DRIVE

LANDMARK WAY
CLOVER DR.
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LEGEND:

MEADOWLINE WAY

MEADOWLINE WAY
STREET
APEX

HIGHLAND HOME ROAD

MERCURY AVENUE
PHASE 2A, MEADOWLINE WAY EXHIBIT

SMITH CREEK

HICKORY WAY

ACACIA LANE
PA 14
PA 15B
PA 35A
PA 35B

STREET MAVERICK

CAMBRIA DRIVE

AVENUE EUREKA
PA 29
PARK
PA 11
PA 9C
PA 10
PA 5A
PA 5B
PA 13

PLACE ER AT FALLW
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Holly Stuart, Public Works Program Manager Arturo Vela, Director of Public Works
MEETING DATE: June 23, 2026
SUBJECT: Consideration of Resolution 2026-81, Approving a Three-Year Street Sweeping Services Agreement with Sweeping Corp of America Utilizing Sourceswell Contract #111125-SWEP
STAFF RECOMMENDATION:

Adopt Resolution 2026-81
BACKGROUND:

Since 2020, the City has contracted street sweeping services with Sweeping Corporation of America (SCA). These services were originally obtained through a formal competitive bid process and were later continued through Sourcewell. Sourcewell is a nationally recognized public agency cooperative that competitively solicits and awards contracts on behalf of participating government agencies. This “piggyback” procurement method allows the City to utilize an existing competitively bid contract without conducting a separate formal bid process, while still complying with public purchasing requirements. Use of cooperative purchasing agreements helps reduce administrative costs, streamline procurement timelines, and leverage previously negotiated competitive pricing and terms.

To continue providing citywide street sweeping and related maintenance services, staff evaluated the newly awarded Sourcewell cooperative purchasing agreement for these services and determined that Sourcewell Contract No. 111125-SWEP provides an appropriate procurement vehicle for the City’s continued use. The agreement was competitively solicited and awarded to Sweeping Corporation of America for street sweeping, sewer jetting, hydro-excavation, and related public works services and is available for use by participating public agencies through the cooperative purchasing process. The agreement remains in effect through April 6, 2030.

The scope of work includes 340.88 curb miles of monthly street sweeping services for both residential and commercial areas throughout the City. Residential areas will be serviced once per month, and commercial areas will be serviced four (4) times per month. Additionally, monthly sweeping services will be provided to the parking lots of Repplier, Roosevelt Williams, and Lions Parks. Services shall include all labor, tools, materials, and equipment necessary to perform citywide street sweeping services. In addition to beautifying the City, street sweeping services eliminate roadside debris and trash, pollutants, and sediments that might otherwise enter the storm drain, assisting the City in complying with the requirements of its National Pollutant Discharge Elimination System (NPDES) permit. This permit requires the Permittees to implement litter and debris control measures, such as street sweeping, to reduce and/or eliminate the discharge of pollutants, including trash and debris, from the storm sewer system to Receiving Waters. In addition to standard monthly needs, the scope requires the Contractor to respond to special requests when hazards pose a threat to public safety, such as debris that creates 372
traffic issues. Street sweeping services may also be scheduled for special events. Routes, service days, and curb miles are summarized in the attached.

The agreement establishes an initial one-year term, effective through June 30, 2027, with the option for the City Council to approve up to two (2) successive one (1)- year renewal terms, not to exceed June 30, 2029.

JUSTIFICATION:

The Public Works Department does not have the required staff or equipment needed to maintain regularly scheduled street sweeping services; therefore, it is necessary to retain a contractor. Upon review, staff determined that SCA has continued to provide satisfactory citywide street sweeping services and that services be obtained utilizing Sourcewell Contract #111125-SWEP.

FISCAL IMPACT:

The total contract award amounts to $164,213.15. Residential and commercial street sweeping services will be provided for $150,123.55 and funded by Gas Tax Funds, Account 100-4900-431.33-11 (Professional Services). Additionally, monthly street sweeping services will be provided to the parking lots of Repplier, Roosevelt Williams, and Lions Parks, totaling $4,089.60 and funded by Account 001- 3600-461.30-01. Funding for services as needed in the amount of $10,000 will be determined on a caseby-case basis. A budget for these services will be included in the proposed FY 2026/67 Operating Budget.

ATTACHMENTS:

1. Route Map.pdf

2. Street Sweeping Schedule.pdf

3. Proposal_Sourcewell Sweeper Services Price List.xlsx

5. Resolution_2026-81__002_updated.docx

6. Draft_Agreement_SCA_FINAL.docx
373
Route Maps:

FY 2026/2027
374
Added Atwell Community FY 2026/2027
375
FY 2026/2027
376
Street Sweeping Route Schedule
FY 2026-2027

ROUTE ROUTE TYPE FREQUENCY SERVICE DAYS ROUTE CURB MILES MONTHLY CURB MILES ANNUAL CURB MILES A. 1 Commercial 4 X/Month Thursdays 31 124 1488
B. 2 Residential Monthly 1st Wednesday 14 14 168
C. 3 Residential Monthly 1st Thursday 28 28 336
D. 4 Residential Monthly 1st Friday 27 27 324
E. 5 Residential Monthly 2nd Wednesday 20 20 240
F. 6 Residential Monthly 2nd Thursday 15 15 180
G. 7 Residential Monthly 2nd Friday 71.88 71.88 862.56
H. 8 Residential Monthly 3rd Wednesday 22 22 264
I. 9 Residential Monthly 3rd Thursday 19 19 228
K. As Needed TBD TBD TBD TBD TBD TBD
Total 340.88 4,090.56
377
Banning Street Sweeping Services FY 2027
Sourcewell Contract #111125
Description Frequency
Residential 1x/month
ADDITIONAL ATWELL RESIDENTIAL 1x/month
Commercial 4x/month
Repplier Parking Lot Monthly Sweep
Roosevelt Williams Parking Lot Monthly Sweep
Lions Parking Lot Monthly Sweep
Services As Needed ($215 hr) TBD
Per Hour (scheduled)*Sourcewell
Per Hour (emergency)*Sourcewell
378
Service Area (Miles, Parking lot,
etc.)
FY 2027 Annual Curb
Miles
FY 2027 Monthly Service
Cost
193.45 2,321.40 $ 36.70

23.43 281.16 $ 36.70
124.00 1,488.00 $ 36.70
Parking Lot Parking Lot $ 113.60
Parking Lot Parking Lot $ 113.60
Parking Lot Parking Lot $ 113.60

TBD TBD TBD
$276.00 -$8.28 $267.72
$304.75 -$9.14 $295.61
379
FY 2027 Annual Service
Cost
$ 85,195.38
$ 10,318.57
$ 54,609.60
$ 1,363.20
$ 1,363.20
$ 1,363.20
$ 10,000.00
$ 164,213.15
SCA discounted price $215
SCA discounted price $245
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RESOLUTION 2026-81

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

APPROVING A THREE-YEAR STREET SWEEPING SERVICES AGREEMENT WITH SWEEPING CORP OF AMERICA, UTILIZING SOURCWELL CONTRACT #111125- SWEP
WHEREAS, since 2020, the City has contracted street sweeping services with Sweeping Corporation of America (SCA), originally obtained through a formal competitive bid and later continued through the Sourcewell cooperative purchasing process; and WHEREAS, Sourcewell is a nationally recognized public agency cooperative that competitively solicits and awards contracts on behalf of participating government agencies, allowing the City to utilize competitively bid contracts without conducting a separate formal bid process; and
WHEREAS, Sourcewell Contract No. 111125‑SWEP was competitively solicited and awarded to SCA for street sweeping, sewer jetting, hydro‑excavation, and related public works services, and remains in effect through April 6, 2030; and WHEREAS, the scope of work for Fiscal Year 2027 includes 340.88 curb miles of monthly street sweeping services in both residential and commercial areas, with residential sweeping once per month and commercial sweeping four (4) times per month, along with monthly sweeping of Repplier Park, Roosevelt Williams Park, and Lions Park parking lots; and
WHEREAS, the total first-year amount for Fiscal Year 2027 street sweeping services is $164,213.15, with $150,123.55 for residential and commercial sweeping funded by Gas Tax Funds (Account 100-4900-431.33-11), $4,089.60 for park parking lot sweeping funded by Account 001-3600-461.30-01, and $10,000 for services as needed to be determined on a case-by-case basis; and
WHEREAS, the agreement establishes an initial one-year term effective through June 30, 2027, with the option for the City Council to approve up to two (2) successive one (1) year renewal terms, not to extend beyond June 30, 2029; and WHEREAS, the agreement further provides that compensation shall be paid in accordance with the Sourcewell Sweeper Services Price List, and that the total fees for Fiscal Year 2027 street sweeping services shall not exceed One Hundred Sixty-Four Thousand Two Hundred Thirteen Dollars and Fifteen Cents ($164,213.15), unless otherwise approved in writing by the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:
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SECTION 1. The City Council approves the three (3) year Street Sweeping Services Agreement with Sweeping Corp of America (SCA) utilizing Sourcewell Contract #111125- SWEP.

SECTION 2. City Council authorizes the City Manager or designee to make necessary budget adjustments, appropriations, and transfers related to the Agreement with SCA for street sweeping services.

SECTION 3. City Council authorizes the City Manager to make necessary nonsubstantive revisions to the agreement and to execute said agreement with SCA for Fiscal Year 2026/2027 street sweeping services.

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 23rd day of June 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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CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-81, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 23rd day of June 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
383
Resolution 2026-81

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Exhibit A

SWEEPING CORP OF AMERICA (SCA)
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1 AGREEMENT FOR GENERAL SERVICES (C000000)

BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR GENERAL SERVICES BY INDEPENDENT CONTRACTOR (“Agreement”) is made and effective as of the __________ by and between the CITY OF BANNING, a California municipal corporation (“City”) whose address is 99 East Ramsey Street, Banning, California 92220, and SCA of CA, LLC, a Delaware limited liability company whose address is 3031 N. Rocky Point Drive West, Suite 730, Tampa FL 33607 (“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: citywide street sweeping services through a cooperative purchasing program administered by Sourcewell, a Minnesota service cooperative; and
B. Contractor is a vendor under a cooperative purchasing master agreement with Sourcewell, a governmental cooperative purchasing organization, pursuant to MASTER AGREEMENT #111125 CATEGORY: STREET SWEEPING, SEWER JETTING, HYRDOEXCAVATION, AND RELATED PUBLIC WORKS AS A SERVICE (“Sourcewell Agreement”), which is attached hereto as Exhibit “A” and incorporated herein by this reference subject to Section 13.23. The parties intend that purchases of services under this Agreement may be made pursuant to and in reliance upon the Sourcewell Agreement and applicable law.

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 remain in effect through June 30, 2027 (“Initial Term”), unless earlier terminated as provided herein. Upon expiration of the Initial Term, this Agreement may be renewed for 385
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2 successive one-year terms (each, a “Renewal Term”). The total term of this Agreement shall not exceed three (3) years, ending no later than June 30, 2029, unless earlier terminated as provided herein. Any Renewal Term shall be subject to the prior approval of the City Council of the City.

2. Services to be Performed. Contractor agrees to provide the services (“Services”) as follows: Contractor shall provide citywide street sweeping and related maintenance services, including sweeping of residential and commercial streets, designated City parking lots, response to special sweeping requests, event-related sweeping, debris removal services related to public safety hazards, and all labor, supervision, equipment, tools, materials, and supplies necessary to perform such services, in accordance with Exhibit “A” and Sourcewell Contract No. 111125- SWEP. All Services shall be performed in the manner and according to the timeframe set forth in the Sourcewell Agreement or subsequent order forms. Contractor designates Alejandra Zaragoza 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 subsequent order form 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.

Contractor shall ensure that all subcontractors comply with the requirements of this Agreement, including, but not limited to, insurance, indemnification, and licensing requirements.

4. Compensation.

4.01 Contractor shall be paid at the rates set forth in the Sourcewell Sweeper Services Price List Exhibit “C”, and shall not increase any rate without the prior written consent of the City. In accordance with Section 11 of the Sourcewell Agreement, Contractor shall not charge the City rates that exceed those listed in the current, approved Sourcewell pricing schedules.

Contractor may offer lower rates at its discretion; however, no rate may exceed the Sourcewellapproved ceiling pricing. 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 One Hundred Sixty-Four Thousand Two Hundred Thirteen Dollars and Fifteen Cents ($164,213.15). 386
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3 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. City shall have the right to review and audit all invoices prior to or after payment to Contractor. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
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.

4.05 Sourcewell administrative fees owed by Contractor under the Sourcewell Agreement are included in all pricing and shall not be billed separately to City.

5. Obligations of Contractor.

5.01 Contractor agrees to perform all Services in accordance with the terms and conditions of this Agreement and any subsequent order form. In the event that the terms of an order form 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 387
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4 own offices, telephones, vehicles and computers. Contractor will determine the method, details, and means of performing the Services under this Agreement.

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

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

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

5.06 Contractor represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Sourcewell Agreement 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. 388
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5 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 Contractor warrants that it has investigated the scope, site, and conditions of the Services, understands the challenges involved, and will perform in accordance with this Agreement. Contractor shall promptly notify the City of any latent or unknown conditions and shall not proceed without written direction from the Project Manager.

All Services shall be of good quality and free from defects at time of service completion. City may notify Contractor within forty-eight (48) hours of service completion, City may request that Contractor correct any defective or non-conforming Services and repair related damage, including work of others affected thereby , at its sole expense within ten (10) days of such notice.

If Contractor fails to fulfill these obligations, the City may correct the work at Contractor’s expense, and Contractor shall reimburse the City upon demand. Payment by the City shall not be deemed acceptance of defective work.

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

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

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

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

6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; Contractor agrees to have its insurer 389
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6 endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

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

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

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

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

6.04 Optional Insurance Coverage. Choose and check one: Required __ /Not Required _X_; 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.

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 likewise.

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 endorsements. All copies of 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 390
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7 be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.

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

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

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, reasonable 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 391
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8 liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, injuries, expenses, damages or costs of any kind, whether actual, alleged or threatened, reasonable attorneys’ fees incurred by City, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement. Contractor’s obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor (and/or Contractor’s agents and/or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City 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.

9. Additional Services, Changes and Deletions.

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

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

10. Termination of Agreement.

10.01. Notwithstanding any other provision of this Agreement, either party, at their sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (30) days’ written notice to the other party.

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 392
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9 documents, reports, studies, plans, specifications and the like which are in the possession or control of Contractor and pertain to City.

11. Status of Contractor.

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

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

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

12. Ownership of Documents; Audit.

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

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 393
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10 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 not more than once in any twelve (12) month period , 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. Such audit(s) shall be subject to a mutually agreeable nondisclosure agreement.

12.04 Contractor acknowledges that the City is a California municipal corporation and is subject to the California Public Records Act, Government Code § 7920.000 et seq. (“CPRA”), and other applicable laws requiring public access to records.

13. Miscellaneous Provisions.

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

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

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

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

13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.
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11 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 award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately report any attempt by any City officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor.

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

13.10 Prevailing Wages Contractor shall be responsible to comply with applicable prevailing wages laws. As a condition of payment, if applicable, Contractor shall show proof of payment of wages under applicable state and federal laws and regulations relating to prevailing wages in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773, 1773.1, 1773.5, and 1773.9”, 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 395
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12 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 1771 - Requirement to Pay Prevailing Wages

2. Section 1773.1 – Per Diem Wages; Travel and Subsistence Pay.

3. Section 1774 – Payment of Prevailing Wage Rates.

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

5. Section 1776 – Payroll Records and Certified Payroll Reports.

6. Section 1777.5 - Apprenticeship Requirements.

7. Sections 1810 and 1811 - Working Hour Restrictions.

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

13.11 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement. Contractor shall take affirmative action to ensure that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry.

13.12 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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

13.14 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages 396
GS Version 1 Last Reviewed: 3/4/2026
13 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 Force Majeure. Neither party shall be deemed in default of this Agreement to the extent that performance of its obligations is delayed or prevented by causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, riots, fires, floods, epidemics, pandemics, earthquakes, strikes, labor disputes, governmental orders, or failure of utilities. The affected party shall promptly notify the other party in writing of the occurrence of such event and shall use reasonable efforts to resume performance as soon as practicable. Force majeure shall not excuse the obligation to make payments when due. In no event shall force majeure entitle Contractor to additional compensation, but only to a reasonable extension of time.

13.17 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.

13.18 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.

13.19 The provisions of this Agreement that by their nature are intended to survive the expiration or termination of this Agreement shall survive such expiration or termination.

Without limiting the foregoing, the provisions relating to indemnification, ownership of documents and intellectual property, audit and records retention, insurance obligations, confidentiality, and payment obligations shall survive the termination or expiration of this Agreement.

13.20 Notice. Any notice, demand, request, consent, approval, or other communication required or permitted to be given under this Agreement (“Notice”) shall be in 397
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14 writing and shall be deemed to have been duly given if delivered personally, sent by nationally recognized overnight courier, sent by certified or registered mail (return receipt requested), or sent by electronic mail, addressed as follows:

To City:

City of Banning
Attn: City Manager
99 East Ramsey Street
Banning, California 92220
Email: [email protected]
To Contractor:

Attn: Legal
SCA of CA, LLC
3031 N. Rocky Point Drive West, Suite 730, Tampa, FL 33607 Notices shall be deemed received as follows: (i) on the date of delivery if delivered personally; (ii) one (1) business day after deposit with a nationally recognized overnight courier; (iii) three (3) business days after deposit in the United States mail, postage prepaid; or (iv) on the date transmitted if sent by electronic mail during normal business hours of the receiving party, or on the next business day if sent after normal business hours. Either party may change its address for Notice by providing written Notice of such change to the other party in accordance with this Section.

13.21 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.

13.22 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.

13.23 Incorporation of Sourcewell Agreement. The parties intend to incorporate by reference into this Agreement the Sourcewell Agreement solely to the extent necessary to (i) identify the cooperative contract vehicle, (ii) apply Sourcewell pricing controls and program requirements to City's purchases, and (iii) apply any Sourcewell terms that, by their nature, govern transactions between Contractor and a Participating Entity. [SIGNATURES ON FOLLOWING PAGE]
398
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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 SCA of CA, LLC
By:_______________________ By:_______________________
Elizabeth Gibbs, City Manager Print
Name: ____________________
Date: ______________________
Date: _____________________
ATTEST:

By: ______________________
Sandra Calderon, Deputy City Clerk
Date: __________________
APPROVED AS TO FORM:

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

SOURCEWELL MASTER AGREEMENT
400
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17 EXHIBIT “B”

CERTIFICATES OF INSURANCE
401
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18 EXHIBIT “C”

SOURCEWELL SWEEPER SERVICES PRICE LIST
402

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Jennifer Terry, Finance Director
Jennifer Terry, Finance Director
MEETING DATE: June 23, 2026
SUBJECT: Consideration of Resolution 2026-83 for Approving the First Amendment to the Lance, Soll, Lunghard, LLP (LSL) Agreement for Professional Accounting Services and Ratifying Certain Services Performed in Excess of the Agreement Amount.

STAFF RECOMMENDATION:

Adopt Resolution 2026-83
BACKGROUND:

The City has lacked current, reliable, and up-to-date financial information for Fiscal Years 2024/25 and 2025/26. This deficiency has impacted day-to-day operations and limits the City’s ability to accurately assess its overall financial position. The situation stems from the departure of several key Finance Department employees, resulting in a loss of institutional knowledge and continuity that is critical to maintaining accurate and timely financial records. Due to a lack of City staff and the extreme backlog of work, the City needed to quickly procure financial expertise. In accordance with Section 13 (Emergency Purchases) of the City’s Purchasing Rules and Procedures, staff informally solicited and interviewed two qualified Certified Public Accounting firms experienced in municipal accounting recovery to address this urgent need.

Following this informal procurement process, staff selected LSL, an accounting and consulting firm with extensive experience assisting California cities with financial reconciliation and prior familiarity with Banning’s accounting systems and practices, as the most qualified. The City Council approved the Agreement with LSL on October 14, 2025.

Some of the mandatory assignments performed by LSL included bank reconciliations, year-end closing schedules and journal entries, assistance with bond trustee statement reconciliations, and other auditrelated endeavors. LSL helped the City significantly by completing the previously mentioned tasks for FY 2024/25 and several for FY 2025/26.

With permanent Finance Department staff in place, city staff are resuming the tasks that were performed by LSL. While LSL's assistance will wind down, their Agreement needs to be amended. Work was performed by LSL that exceeded the amount specified in the Agreement. Staff seeks to amend the Agreement to increase the not-to-exceed amount to $415,000. This is an increase of $105,000, which will fund the existing services previously performed and authorized by City staff. This amount covers 403
billed but unpaid invoices for work completed to date, as well as the estimated cost to complete LSL's remaining in-process tasks to facilitate hand-off to City staff.

JUSTIFICATION:

During the recruitment and onboarding of vital accounting staff and the Finance Director positions, LSL provided support with bank reconciliations and preparation of various Fiscal Year 2024/25 year-end close tasks and comprehensive audit schedules. Responsibilities are now being transitioned back to City staff.

The City acknowledges that the use of external consulting services represents a significant cost; however, this support was essential to completing numerous backlog items. The agreement will conclude once all functions have been successfully transferred to City staff. The City will be responsible for only the services rendered.

FISCAL IMPACT:

No additional funding is necessary as this amendment will be funded by salary savings from vacant positions in Fiscal Year 2025/26.

ATTACHMENTS:

1. LSL_1st_Amendment (2).docx

2. LSL Original Reso.docx

3. V2 LSL Consulting Proposal

4. LSL_New_Resolution_2026-83 JT.docx

5. LSL_1st_Amendment__JT
404
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT
(C01217) FOR ACCOUNTING AND FINANCE CONSULTING

SUPPORT SERVICES BY AND BETWEEN CITY OF BANNING AND

LSL, LLP
THIS AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR SERVICES (“Amendment No. 1”) by and between the CITY OF BANNING (“City”) and LSL, LLP, a California limited liability partnership (“Contractor”) is effective as of this 9
th day of June 2026.

RECITALS
A. City and Contractor entered into that certain Contract dated October 14, 2025 for the purpose of providing Accounting and Finance Consulting Support Services (“Agreement”) following, as approved by City Council Resolution 2025-149.

B. City and Contractor now desire to amend the Agreement to increase the Contract Sum to $620,000.00.

The Parties therefore agree follows:

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

1.1 The maximum compensation for the Services performed pursuant to this Amendment No. 1 shall not exceed Three Hundred Ten Thousand Dollars ($310,000.00) thereby increasing the Contract Sum, as set forth in Section 4.01 of the Agreement, to Six Hundred Twenty Thousand Dollars ($620,000.00).

2. Miscellaneous Provisions

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

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 1.

2.3 Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) entering into this Amendment No. 405
1 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 1 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
406
The Parties are signing this Amendment No. 1 on the date stated in the introductory clause.

CITY OF BANNING LSL, LLP
Elizabeth Gibbs,
City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Sandra Calderon
Deputy City Clerk
APPROVED AS TO FORM:

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

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
407
Resolution 2025-149

Page 1 of 4 ends

RESOLUTION 2025-149

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

APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH LSL, LLP IN THE AMOUNT OF $310,000 FOR PROFESSIONAL MUNICIPAL ACCOUNTING SERVICES AIMED AT

UPDATING THE CITY'S FINANCIAL RECORDS
WHEREAS, the City is faced with a significant lack of current and reliable financial information for Fiscal Year 2024-25, which affects day-to-day operations and the City’s ability to accurately assess its overall financial position; and
WHEREAS, this condition originated with the departure of several key Finance Department employees in Fiscal Year 2024-25, resulting in the loss of institutional knowledge and continuity essential to maintaining accurate and timely financial records; and WHEREAS, despite the dedication of the Interim Finance Director, who will soon near the maximum hours allowed for a CalPERS retired annuitant, and the use of interim and temporary staffing resources, the complexity and magnitude of the backlog exceed the current capacity of the Finance Department; and
WHEREAS, consistent with Section 13 (Emergency Purchases) of the City’s Purchasing Rules and Procedures, staff informally solicited and interviewed two qualified Certified Public Accounting firms experienced in municipal accounting recovery to address this urgent need; and WHEREAS, following this process, staff selected LSL, LLP, an accounting and consulting firm with extensive experience assisting California cities with financial reconciliation and prior familiarity with Banning’s accounting systems and practices, as the most qualified and costeffective option; and WHEREAS, engaging LSL, LLP, along with onboarding of a new Interim Finance Director as an Extra Help retiree annuitant, will provide the additional capacity, expertise, and leadership necessary to bring the City’s financial records current and ensure accurate data for the upcoming budget cycle and long-term fiscal planning; and
WHEREAS, an appropriation in the amount of $310,000 is required from the General Fund to Account 001-1910-412-33.11.

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 LSL, LLP in the amount of $310,000 for Professional Municipal Accounting Services.

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

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

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. 408
Resolution 2025-149

Page 2 of 4 ends

PASSED, APPROVED AND ADOPTED this 14th day of October 2025.

Sheri Flynn, Mayor
City of Banning
ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney, LLP
409
Resolution 2025-149

Page 3 of 4 ends

CERTIFICATION:

I, Sandra Calderon, Acting Administrative City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2025-149, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 14th day of October 2025 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Acting Administrative City
Clerk
City of Banning, California
410
Resolution 2025-149

Page 4 of 4 ends

EXHIBIT A
Professional Services Agreement with LSL, LLP
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PREPARED BY

LSL, LLP
Certified Public Accountants
License Number 2584
Proposal Presented to the
City of Banning
Accounting and Consulting Services
Date of Submission: June 15, 2026
Valid for 90 Days
Authorized by
Kelly Telford, CPA, Partner
500 Technology Drive, Suite 350
Irvine, CA 92618
(949) 829-8299
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Table of Contents
TABLE OF CONTENTS ........................................................................................................................ 1 LETTER OF TRANSMITTAL................................................................................................................. 2 Scope of Services and Deliverables ................................................................................................... 2 Qualifications and Personnel .............................................................................................................. 2 Cost Proposal and Payment Terms .................................................................................................... 5 Adapting to a Remote Working Relationship....................................................................................... 6 Conclusion.......................................................................................................................................... 7 LSL PROFILE ....................................................................................................................................... 8 History and Size ................................................................................................................................. 8 Location.............................................................................................................................................. 8 Accounting Today Regional Leader.................................................................................................... 8 INSIDE Public Accounting (IPA) Award .............................................................................................. 9 Our Core Values................................................................................................................................. 9 Best of Accounting Award................................................................................................................... 9 Training and Seminars........................................................................................................................ 9 License to Practice ............................................................................................................................. 9 Desk Reviews and Disciplinary Action ................................................................................................ 9 Peer Review .....................................................................................................................................10 QUALIFICATIONS & EXPERIENCE ................................................................................................... 10 Certified Public Accountants .............................................................................................................10 Continuing Education........................................................................................................................10 Recent Experience ...........................................................................................................................10 APPENDIX A – SCOPE AND DELIVERABLES.................................................................................. 11 APPENDIX B – PEER REVIEW ..........................................................................................................12 413
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LETTER OF TRANSMITTAL
June 15, 2026
Jennifer Terry, Finance Director
City of Banning
99 E. Ramsey Street
Banning, CA 92220
Dear Ms. Terry,
LSL, LLP (“LSL”) is pleased to present our proposal for accounting and consulting services. We value the opportunity to present our professional qualifications to the City of Banning and demonstrate why our services are second to none.

LSL has a well-established history of delivering outstanding services to government entities. We provide auditing, accounting, and consulting services to more than 100 municipal clients across the country, such as cities, counties, water and electric utilities, and special-purpose government agencies. Our proposal highlights our firm’s strength and stability, along with our demonstrated experience, knowledge, passion, and creative problem-solving capabilities as a leader in the field of governmental accounting and auditing. Our dynamic team is comprised of top talent within the industry, and with our comprehensive government experience, and our dedication to providing personalized experiences for each of our clients, we believe you will find that LSL is one of the best-qualified accounting firms to provide these services.

SCOPE OF SERVICES AND DELIVERABLES
We understand you are seeking a qualified firm to provide consulting and accounting services. LSL has a structured, well-tested approach to providing accounting services. Our goal is not to replace your team but become a part of it.

Our team is willing and ready to provide assistance in strategic areas that allow your team to focus on the day-to-day while allowing us to take care of more complex tasks that cannot be done by other team members. LSL can handle tasks typically managed by the finance department so your team can focus on daily operations. Details on LSL's services are in Appendix A, which can be prioritized with City staff to address key items within budget.

QUALIFICATIONS AND PERSONNEL
Our dedicated team of professionals have a combined 60 years of expertise working in and with government agencies. Key members of our team and their requisite experience is listed below. Detailed resumes of our management team are included below. Additional information regarding the other members of the team are available upon request.
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Kelly Telford, CPA, Partner
Kelly is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. She has developed her expertise in accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology, including ERP implementations. She has taught classes for GFOA and CSMFO and has presented at annual conferences for GFOA, CSMFO and GFOAA.

Kelly has a wealth of experience in both public accounting and local government. She has previously served as Finance Director for the cities of Costa Mesa and Seal Beach as well as the Los Angeles Community Development Agency. She has a proven track record of helping agencies identify operating inefficiencies, assisted in departmental reorganizations, identify internal control challenges, completing year-end close procedures, and serving as an outsourced Finance Director.

Kelly is a licensed CPA in California and Texas.

Noah Daniels, CPA, CPFO, Director
Noah has extensive experience in municipal finance departments, gained through both his work as an auditor and his work in local government agencies. As a director, he combines his strategic problem-solving approach with firsthand knowledge of our client’s operations, allowing him to understand their needs and serve as a trusted partner and extension of their departments. Noah's expertise has been instrumental in helping government agencies maximize the use of their existing resources to meet a broader range of priorities.

As the Finance Director for the City of Rancho Cucamonga, Noah's strategic leadership was instrumental in replacing an outdated financial system (Workday), enhancing efficiency and accuracy. He was responsible for designing fiscal policies, including debt management, special district funding, and reserve policies, to ensure efficiency, compliance, and adherence to government regulations.

Noah is a licensed CPA in California.

Nike Ricks, MBA, Manager
Nike specializes in guiding public agencies through operational challenges, financial overhauls, and system upgrades with a focus on strategic improvement. With 20 years of public sector leadership across California, Arizona, and Utah - Nike has served in key roles including City Treasurer, Assistant Finance Director, and Finance Manager.

Nike’s experience is in budgeting and forecasting, financial reporting, system design, grant administration, policy development, and long term planning for enterprise operations allows her to provide comprehensive support with a solutions driven approach that empowers her clients to lead with confidence. She has led full-scale ERP implementations, revamped payroll systems, strengthened internal controls, restructured fund accounting, and modernized treasury operations. 415
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Louis Li, Manager
Louis brings a decade of experience in governmental accounting and is known for delivering results under pressure. He combines precision and adaptability to navigate the most complex financial challenges and uncover effective solutions. Louis’ expertise includes reconciliations, preparing audit-ready documentation, and journal entries. Whether it's troubleshooting system inefficiencies or optimizing financial workflows, his passion is in helping clients untangle their accounting challenges and bring clarity and structure to the underlying causes.

Hiram Zavala, Supervisor
With more than a decade of experience in municipal accounting and finance, Hiram Zavala brings strong technical expertise and practical experience to the LSL team.

Before joining LSL, he held key finance roles with the County of San Bernardino and the cities of Ontario and Rancho Cucamonga. Hiram has performed a variety of tasks in those roles, including capital asset accounting, accounts payable, budgeting, assembling cost allocation plan and indirect cost rate calculations, and improving financial reporting processes. His analytical and collaborative approach makes him a valuable contributor to complex accounting and implementation projects supporting LSL’s government clients.

Cara Clifton, Senior Accountant
With more than 22 years of experience in municipal accounting, Cara brings extensive knowledge of fund accounting, bank reconciliations, capital assets, and utility billing.

Before joining LSL, Cara spent 16 years with the City of Longview, Texas where she rose to the role of Utilities Accounting Supervisor. Her responsibilities included capital asset accounting, grant management, multiple bank reconciliations, and oversight of utility revenue internal controls.

She has supported numerous cities and special districts in their year-end close processes, including bank reconciliation, capital assets, pensions, OPEB, leases, and IT subscriptions. Cara’s hands-on approach and familiarity with municipal systems make her a trusted resource for complex reconciliations and year-end close support.

In addition to our key team members, our team includes seniors, supervisors, and managers with extensive experience working in and with local governments. All assigned staff have significant expertise in providing auditing and accounting services for cities, counties, and special-purpose government agencies. This ensures that your team does not need to train ours. All our team members are supervised by the LSL management team, guaranteeing that the deliverables we provide to our clients are of high quality and accuracy.

As you can see, LSL is uniquely positioned to assist our clients as our team is comprised of government industry experts who have worked in local governments themselves. Our team understands the complexities of government accounting and can ensure your accounting is accurate and well maintained. In addition, our team has implemented ERP systems as both consultants and as members of local government which allows us to design policies and procedures with accounting in mind.
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Also, having a team that has worked in local government, we can assist with other projects you may need such as training and support of finance department staff, evaluations of efficiencies in the department and assessments to help determine where staff capacity exists, and serving as a backup for day-to-day transaction processing such as utility billing, accounts payable and payroll.

LSL does not subcontract work but often has personnel working outside of the US. All staff assigned have extensive experience providing auditing and/or accounting services for cities, counties, and special-purpose government agencies. Our educational programs are designed to provide our team members with the knowledge and skills necessary to deliver high-quality services to our clients. We offer a variety of training opportunities, including those provided by CalCPA, AICPA, Government Audit Quality Center, and GFOA.

The LSL team is comprised of top talent within the industry with comprehensive experience beyond governmental audit, accounting, and advisory services. When you partner with LSL, you gain access to the experience, knowledge, and resources of our entire team, including our consulting and technology teams. We are committed to helping finance departments thrive by providing the guidance, tools, and services that foster lifelong success for your finance team. We encourage our clients to tap into our full professional team of industry and product experts for your fullservice consulting, staffing, and financial report automation solutions.

Financial &
Compliance Audits
Consulting,
Staffing & Training
ERP &
Other Technologies

COST PROPOSAL AND PAYMENT TERMS
Our professional fee for the services outlined in Appendix A – Scope and Deliverables was and will be at the firm’s preferred rates plus out of pocket expenses. Our fees are based on the time required by the individuals assigned to the engagement, the complexity of the work performed, as well as any out-of-pocket expenses. Due to the nature of these services, the work LSL performs work on an hourly basis to allow for as little or as much assistance as necessary.

This amendment adds an estimated $105,000 to the existing contract to cover services previously performed and authorized by City staff. This amount covers billed but unpaid invoices for work completed to date, as well as the estimated cost to complete LSL's remaining in-process tasks to facilitate hand-off to City staff. Any significant deviations from this estimate will be reviewed and discussed with City management.

LSL has collaborated with City management throughout the engagement to prioritize the most critical tasks, sequence the work accordingly, and identify opportunities where City staff could assist with certain tasks to help control hours.

As the engagement winds down, LSL will continue to keep the City informed of progress through completion of the remaining in-process work.

Our standard hourly rates and preferred client rates are provided on the following page. 417
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Additional circumstances may arise that could impact the total cost including, but not limited to, increase in scope, issues encountered with the timely delivery, availability, quality, or completeness of the information you provide to us, changes in your personnel or operations that impact our services or other unanticipated items that arise during our engagement and that require additional time to complete the agreed-upon services. You agree that you will deliver all records requested and respond to all inquiries made by our staff to complete this engagement on a timely basis.

You agree to pay all fees and expenses incurred whether or not we issue deliverable(s). Should these circumstances exist, our team will communicate with staff prior to time being incurred.

Any non-personnel-related costs will be billed and reimbursed as they are incurred, if necessary. Progress bills will be sent monthly on the basis of hours of work completed during the course of the engagement plus out-of-pocket expenses incurred in accordance with the firm's proposal.

The rates above are effective through December 31, 2026. Rates increase annually on January 1 based upon market rates for similar services and generally range between 3% to 7%.

ADAPTING TO A REMOTE WORKING RELATIONSHIP
LSL is fully equipped with software and communication tools to support a remote process. We leverage Microsoft Teams to easily connect over a video call in a face-to-face setting, giving us the ability to share screens and information in real-time. Additionally, having the customizable LSL CaseWare Cloud Portal makes the exchange of secure information easy and painless. LSL is also accustomed to working in our client’s financial software solutions in a remote environment, taking advantage of VPN connections and remote desktops. In an effort to reduce costs for our clients, our team has become accustomed to working remotely using remote desktop technology. It is anticipated that the work would be performed entirely remotely.

Title
2026 Hourly
Rates
2026 Rates
with
Preferred
Client
Discount
Group Training $ 675 $ 675
Partner - Advisory $ 590 $ 590
Partner - Technical $ 590 $ 460
Principal $ 590 $ 460
Director $ 465 $ 363
Senior Manager $ 410 $ 320
Manager $ 350 $ 273
Supervisor $ 315 $ 246
Senior $ 250 $ 195
Experienced Staff $ 210 $ 164
Staff $ 190 $ 148
Clerical $ 110 $ 86
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CONCLUSION
Our collective experience in local government accounting backed by our comprehensive understanding of all facets of municipal government operations has resulted in our development of efficient procedures and a streamlined work plan approach, which we believe makes LSL one of the best-qualified teams to perform this engagement.

Our proposal is a firm and irrevocable offer for 90 days following the closing date for the receipt of proposals. For this proposal, Kelly Telford, CPA, Partner, is authorized to make representations for our firm. She can be reached by phone at (714) 458-5292 or by email at [email protected].

Very truly yours,
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LSL PROFILE
LSL provides auditing, accounting, and consulting services to over 100 municipal clients, including cities, counties, water and electric utilities, and special-purpose government agencies. Generally, our government sector services break down into the following major classifications: attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.

Our extensive experience in local government accounting has led to the development of efficient procedures and a comprehensive understanding of all finance department operations, including federal and state grant programs. Our work plan approach takes full advantage of accumulated experiences, which we believe sets LSL apart.

Our dynamic team of industry experts holds extensive experience providing services to a full range of government entities. We lead seminars and training courses on introductory government accounting, preliminary views on financial reporting, internal control risk assessments, and all GASB updates and best practices.

HISTORY AND SIZE
LSL is a limited liability partnership and is not a wholly owned subsidiary of a parent company. LSL was established in 1929 and has grown as a leader in the government sector. Our full-service accounting firm is headquartered in Irvine, California, with a dynamic team of 15 partners, 4 principals, and 180 employees.

Ranked #17 on the Orange
County Business Journal’s
CPA Firm Book of Lists
Established
in 1929
15 Partners
4 Principals
180 Employees
(and growing!)

LOCATION
LSL is a multi-location firm with formidable resources that provides a personal feel and hands-on client experience.

Our Offices
Irvine, CA
500 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299
Sacramento, CA
500 Capitol Mall., Suite 2350
Sacramento, CA 95814
Phone: (916) 503-9691
Phoenix Metropolitan Area, AZ
950 W. Elliot Rd., Suite 110
Tempe, AZ 85284
Phone: (480) 424-7855
The Woodlands, TX
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
Phone: (936) 828-4587

ACCOUNTING TODAY REGIONAL LEADER
LSL has again been recognized as an Accounting Today Regional Leader in 2026.

The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions. 420
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INSIDE PUBLIC ACCOUNTING (IPA) AWARD
LSL is honored to be recognized among the Top 300 accounting firms in the nation by INSIDE Public Accounting! Each year, IPA ranks CPA firms based on net revenue, and LSL proudly advanced from #220 in 2024 to #201 in 2025. Our fantastic team and the trust of our valued clients are the driving force behind this upward momentum and continued growth.

OUR CORE VALUES
As we continue to grow and evolve, we recognized our core values needed to grow and change with us. Our values weren’t decided on by management and handed down, every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients.

BEST OF ACCOUNTING AWARD
LSL has consistently secured the ClearlyRated Best of Accounting award since 2019. This exclusive program awards accounting firms who demonstrate high-level service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients.

TRAINING AND SEMINARS
LSL regularly leads seminars and training courses on introductory governmental accounting, preliminary views on financial reporting, internal control risk assessments, and all GASB updates and best practices, which are made available to our clients for additional information and continued support. For upcoming webinars, please visit https://lslcpas.com/webinars/.

LICENSE TO PRACTICE
LSL is a limited liability partnership and is not a wholly owned subsidiary of a parent company. LSL is a public accounting firm licensed by the State of California, Department of Consumer Affairs, as a Public Accounting Partnership. Under Section 901.461 of the State of Texas Public Accountancy Act, LSL is authorized to practice in the State of Texas as an out-of-state firm. We are also members of the American Institute of Certified Public Accountants. All key staff to be assigned to this engagement are or will be licensed by the State of California to practice as Certified Public Accountants and are pending approval for licensure in the State of Texas.

DESK REVIEWS AND DISCIPLINARY ACTION
There have been no disciplinary actions against our organization since its inception. There have been no litigations against our firm in the past three years. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Controller’s Office acting as the Oversight Agency. We have never had a report rejected by any of these agencies, which demonstrates our thorough understanding of federal grant programs. LSL is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports. 421
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PEER REVIEW
Our firm has participated in the AICPA Peer Review Program since its inception. All our peer reviews have covered governmental engagements and have received pass ratings. Our most recent peer review, conducted by Spafford and Landry CPAs, is provided in Appendix B.

QUALIFICATIONS & EXPERIENCE

CERTIFIED PUBLIC ACCOUNTANTS
Your engagement team includes two certified public accountants who maintain active licenses with the State of California. In addition, your engagement team may also include individuals licensed in other states. Please refer to the individual bios for information on CPA licensure.

CONTINUING EDUCATION
As a firm policy, all professional government staff meet the requirement of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Our educational programs include training from CalCPA, AICPA, Government Audit Quality Center, CSMFO, GFOA, Becker and GASB.

RECENT EXPERIENCE
As a firm, we have extensive experience with municipalities including cities, counties, water and electric utilities, special districts, joint powers authorities and compliance with OMB Uniform Guidance. We are familiar with all federal and state grant programs typically awarded to municipalities. Generally, our government sector services break down into the following major classifications: attestation, compliance, consulting, interim staffing, strategic planning, and tax services. A list of current government clients can be provided upon request.

As a part of our consulting services, we also provide accounting services that include outsourced accounting services, year-end close assistance, audit preparation, bank reconciliation, training, accounting software implementation, and GASB implementation services. Our team is well-versed in using most accounting software solutions, including Workday, Tyler Munis, One Solution, PeopleSoft, and Tyler Incode.

Our collective experience in local government accounting, backed by our comprehensive understanding of all federal and state grant programs awarded to municipalities, has refined our development of efficient procedures and streamlined work plan approach, which we believe makes LSL one of the best-qualified teams to perform these services.
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APPENDIX A – SCOPE AND DELIVERABLES

DESCRIPTION OF SERVICES AND DELIVERABLE PLAN AND OUTCOME Task 1 - Additional Assistance for FY 2024–25 Year End
Close
• Performed year-end close procedures, including
reconciliation of key fund-level balance sheet
accounts
• Collaborated with City staff to confirm accounting
activity ahead of close, enabling City staff to
complete the year-end close and proceed with the
fiscal year audit
Plan: LSL has assisted the City with the
FY 2024–25 Year-End Close. During the
engagement, the scope expanded beyond
the prior engagement to include clean-up
of prior year balances and completion of
the bank and investment reconciliations
necessary to close FY 2024–25.

Under this task, LSL is completing the
remaining in-progress FY 2024–25 close
procedures so that City staff can finalize
the year-end close and proceed with the
annual audit.

City responsibilities will include:
• Assisting LSL in locating and providing supporting
documentation and records as available
Outcome: Completion of the in-progress
FY 2024–25 year-end close procedures
and delivery to City staff of the information
necessary to finalize the close and
proceed with the audit.

Task 2 – FY 2025–26 Bank and Investment
Reconciliations
Prepared monthly bank and investment account
reconciliations through March 31, 2026, including:
• Identification of all reconciling items for bank and
investment accounts on a monthly basis
• Advised City staff on reconciliation procedures to
transition ongoing responsibility to the City beginning with the April 1, 2026 reconciliations and forward
City responsibilities will include:
• Providing daily accounting in a timely manner to
ensure activity is recorded accurately
• Providing monthly bank statements, investment
statements, and custody reports promptly after
month-end
• Providing access to third-party payment platform
reports used in daily cash settlement
• Researching and posting journal entries arising from
the monthly reconciliation process
• Designating staff to participate in training and to
assume reconciliation responsibilities upon hand-off
Plan: LSL has performed the monthly
reconciliations and identified the
reconciling items for the City's bank and
investment accounts through March 31,
2026.

LSL has conducted remote training and
advised City staff on the reconciliation
processes so that City staff can continue
performing the reconciliations
independently, and will continue to support
the transition through the wrap-up of inprocess tasks.

Outcome: Bank and investment account
workbooks identifying the reconciling items
for each month through March 2026,
which City staff will research and post,
along with remote training on the
reconciliation process so City staff can
assume the reconciliation responsibility
going forward.
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APPENDIX B – PEER REVIEW
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Resolution 2026-83

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RESOLUTION 2026-83

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

APPROVING THE FIRST AMENDMENT TO THE LANCE, SOLL, LUNGHARD, LLP (LSL)

AGREEMENT FOR PROFESSIONAL ACCOUNTING SERVICES AND RATIFYING CERTAIN

SERVICES PERFORMED IN EXCESS OF THE AGREEMENT AMOUNT
WHEREAS, the City has been faced with a significant lack of current and reliable financial information for Fiscal Years 2024/25 and 2025/26, which affects day-to-day operations and the City’s ability to accurately assess its overall financial position; and WHEREAS, this condition originated with the departure of several key Finance Department employees, which has resulted in the loss of institutional knowledge and continuity essential to maintaining accurate and timely financial records; and WHEREAS, consistent with Section 13 (Emergency Purchases) of the City’s Purchasing Rules and Procedures, staff informally solicited and interviewed two qualified Certified Public Accounting firms experienced in municipal accounting recovery to address this urgent need; and WHEREAS, following this process, staff selected LSL, LLP, an accounting and consulting firm with extensive experience assisting California cities with financial reconciliation and prior familiarity with Banning’s accounting systems and practices, as the most qualified and costeffective option; and WHEREAS, the City entered into an Agreement with LSL on October 14, 2025; and WHEREAS, City staff will resume the tasks previously prepared by LSL now that a permanent Finance Director and accounting staff have been hired; and WHEREAS, the City and LSL wish to increase the agreement for work that was performed in excess of the agreement amount and to transition any remaining tasks; and OW, 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 LSL, with the additional amount of $105,000 for Professional Municipal Accounting Services, with a contract sum of $415,000.

SECTION 2. The City Council authorizes the City Manager, or their designee, to use savings from previously vacant and currently vacant positions to fund this endeavor.

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

SECTION 4. 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 23rd day of June 2026. 426
Resolution 2026-83

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Richard A. 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
427
Resolution 2026-83

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CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-83, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 23rd day of June 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
428
Resolution 2026-83

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EXHIBIT A
Professional Services Agreement with LSL, LLP
429
AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT
(C01217) FOR ACCOUNTING AND FINANCE CONSULTING

SUPPORT SERVICES BY AND BETWEEN CITY OF BANNING AND

RECITALS
A. City and Contractor entered into that certain Contract dated October 14, 2025, for the purpose of providing Accounting and Finance Consulting Support Services (“Agreement”) following, as approved by City Council Resolution 2025-149.

B. City and Contractor now desire to amend the Agreement to increase the Contract Sum to $415,000.

The Parties therefore agree follows:

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

1.1 The maximum compensation for the Services performed pursuant to this Amendment No. 1 shall not exceed Three Hundred Ten Thousand Dollars ($105,000.00) thereby increasing the Contract Sum, as set forth in Section 4.01 of the Agreement, to Six Hundred Twenty Thousand Dollars ($415,000.00).

2. Miscellaneous Provisions

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 1.

2.3 Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) entering into this Amendment No. 430
1 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 1 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
431
The Parties are signing this Amendment No. 1 on the date stated in the introductory clause.

CITY OF BANNING LSL, LLP
Elizabeth Gibbs,
City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Sandra Calderon
Deputy City Clerk
APPROVED AS TO FORM:

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

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
432

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Holly Stuart, Public Works Program Manager Arturo Vela, Director of Public Works
MEETING DATE: June 23, 2026
SUBJECT: Consideration of Resolution 2026-91, Confirming the Authority Granted By Resolution No. 2025-79 and Approving Amendment No. 3 to the Services Agreement with Yunex, LLC. for Citywide Traffic Signal Maintenance Services
STAFF RECOMMENDATION:

Adopt Resolution 2026-91
BACKGROUND:

The City owns and maintains traffic signals and related equipment at signalized intersections throughout the City. These facilities include signal controllers, signal poles and heads, vehicle detection systems, battery backup systems, communication equipment, and other associated infrastructure necessary for the safe and efficient operation of the City's transportation network.

On May 23, 2023, through ProcureNow and advertisement in the local newspaper, City staff released a solicitation for proposals from qualified firms to provide maintenance and repair services for traffic signals throughout the City of Banning for a one-year term with the option to renew four (4) additional one-year periods.

Following the competitive solicitation process, the City entered into an agreement with Yunex, LLC, on August 17, 2023, for Citywide Traffic Signal Maintenance Services in an amount not to exceed $25,000.

On June 25, 2024, the City Council approved Amendment No. 1, extending the agreement term through August 31, 2025, and increasing the contract amount by $25,000, resulting in a total not-to-exceed contract amount of $50,000.

On June 10, 2025, the City Council adopted Resolution No. 2025-79 approving Amendment No. 2 to extend the agreement term and increase compensation for a total contract of $75,000 for continued traffic signal maintenance services through Fiscal Year 2027/28. However, during processing of the amendment, the executed amendment extended the agreement term only through August 31, 2026, rather than through August 31, 2028, as stated in Resolution 2025-79.

To accurately reflect the City Council's intended action, staff is confirming the authority granted by Resolution No. 2025-79, and approval of Amendment No. 3 to extend the agreement term through August 31, 2028, and increase the contract amount by $50,000. Upon approval, the total agreement amount over the five-year term will not exceed $125,000. 433
The agreement is structured around an anticipated average annual maintenance budget of approximately $25,000 over the five-year term. However, traffic signal maintenance requirements can vary significantly from year to year depending on equipment failures, emergency repairs, replacement part costs, system upgrades, and other operational needs. As such, annual expenditures may be greater or less than the anticipated annual allocation. The agreement provides flexibility for the City to utilize funding as needed during any fiscal year, provided that total cumulative expenditures under the agreement do not exceed the authorized not-to-exceed amount of $125,000.

The Scope of Work includes routine monthly traffic signal maintenance services, emergency call-outs, troubleshooting, repairs, and related services necessary to maintain the reliable operation of the City's traffic signal infrastructure. Yunex is responsible for furnishing all labor, equipment, tools, materials, and technical expertise required to perform the work in accordance with applicable federal, state, and local regulations.

JUSTIFICATION:

The Public Works Department does not maintain staffing levels or specialized traffic signal technicians necessary to perform comprehensive traffic signal maintenance and emergency repair services.

Consequently, the City relies on a qualified contractor to ensure traffic signals remain operational, safe, and compliant with applicable standards.

Yunex has continued to provide satisfactory maintenance services and possesses the specialized expertise, equipment, and technical resources necessary to maintain the City's traffic signal infrastructure. Approval of Amendment No. 3 will correct the contract term discrepancy, maintain continuity of services, and ensure the agreement accurately reflects the intended five-year contractual relationship previously approved by the City Council.

The amendment also provides the City with the flexibility necessary to address varying maintenance and repair demands throughout the contract term while maintaining a clearly defined maximum contract amount of $125,000.

FISCAL IMPACT:

Amendment No. 3 increases the contract amount by $50,000, bringing the total agreement amount to no more than $125,000 over the five-year term.

The agreement is based on an anticipated average annual expenditure of approximately $25,000. Actual annual expenditures may fluctuate depending on maintenance demands, emergency repairs, equipment failures, replacement components, and other operational requirements. Accordingly, funding allocations may be utilized unevenly throughout the contract term, provided that cumulative expenditures do not exceed the authorized not-to-exceed amount of $125,000.

Funding for the agreement will continue to be provided through the Street Division's operational budget, Account No. 100-4900-413.30-09 (Repair/Maintenance – Traffic Signals), subject to budget appropriations in each fiscal year. The annual appropriation to cover the costs associated with this agreement will be included in the proposed Operating Budgets for FY 2026/27 and 2027/28.

ATTACHMENTS:

1. Reso__2026-91_Traffic_Signal.docx

2. Orginal Agreement_Yunex.pdf

3. Amend 1_Yunex.pdf

4. Amend No. 2_Yunex.pdf

5. CC Resolution No. 2025-079.pdf

6. 26-03-02 Traffic Signal Maintenance Extension Rate Sheet_PRO.pdf 434

7. AMENDMENT_NO_3.pdf
435
Resolution 2026-91

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RESOLUTION NO. 2026-91

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, CONFIRMING THE AUTHORITY GRANTED BY RESOLUTION NO. 2025-79 AND APPROVING AMENDMENT NO. 3 TO THE SERVICES AGREEMENT WITH YUNEX, LLC. FOR CITYWIDE

TRAFFIC SIGNAL MAINTENANCE SERVICES
WHEREAS, on May 23, 2023, through ProcureNow and advertisement in the local newspaper, City staff released a solicitation for proposals from qualified firms to provide maintenance and repair services for traffic signals throughout the City of Banning for a term of one (1) year with the option to renew four (4) additional one-year periods; and WHEREAS, in August 2023, the City entered into an agreement with Yunex, LLC. (“Yunex”) for Citywide Traffic Signal Maintenance Services in an amount not to exceed TwentyFive Thousand Dollars ($25,000.00); and WHEREAS, on June 25, 2024, Amendment No. 1 was approved extending the term of the agreement through August 31, 2025, and increasing the contract amount by Twenty-Five Thousand Dollars ($25,000.00), for a total not-to-exceed amount of Fifty Thousand Dollars ($50,000.00); and
WHEREAS, on June 10, 2025, the City Council adopted Resolution No. 2025-79 approving Amendment No. 2 to extend the agreement term and increase the compensation amount for continued traffic signal maintenance services; and WHEREAS, the City Council's intended action was to provide for continued traffic signal maintenance services through August 31, 2028; however, the executed amendment extended the agreement term only through August 31, 2026; and
WHEREAS, Resolution No. 2025-79 authorized continuation of the Agreement for the balance of the five-year term contemplated by the original procurement and authorized a total not-to-exceed compensation amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00); and
WHEREAS, the Parties have determined that Amendment No. 2 did not fully memorialize the City Council's authorized term and compensation and that Amendment No. 3 is necessary to conform the written Agreement to the authority previously granted by Resolution No. 2025-79; and
WHEREAS, Amendment No. 3 increases the contract amount by Fifty Thousand Dollars ($50,000.00), resulting in a total agreement amount not to exceed One Hundred Twenty-Five Thousand Dollars ($125,000.00) over the five-year term of the agreement; and WHEREAS, the agreement is based upon an anticipated average annual expenditure of approximately Twenty-Five Thousand Dollars ($25,000.00), although annual expenditures may vary based upon traffic signal maintenance requirements, emergency repairs, equipment failures, replacement part costs, and other operational needs; and WHEREAS, the City Council recognizes that funding may be utilized unevenly throughout the agreement term, provided that cumulative expenditures do not exceed the authorized not-toexceed contract amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00); and 436
Resolution 2026-91

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WHEREAS, Amendment No. 3 will be funded through the operational budget of the Street Division, Account No. 100-4900-413.30-09 (Repair/Maintenance – Traffic Signals), subject to annual budget appropriations.

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

SECTION 1. The City Council hereby confirms and ratifies the authority previously granted in Resolution No. 2025-79 and finds that Amendment No. 3 is consistent with and implements that prior authorization.

SECTION 2. The City Council hereby approves Amendment No. 3 to the Citywide Traffic Signal Maintenance Agreement with Yunex, LLC. The Council finds that Amendment No. 3 memorializes and implements the term and compensation authority previously authorized by Resolution No. 2025-79, including a contract term through August 31, 2028, and a total not-to-exceed compensation amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00).

SECTION 3. The City Council acknowledges that the agreement is structured around an anticipated average annual expenditure of approximately Twenty-Five Thousand Dollars ($25,000.00); however, annual expenditures may fluctuate based upon operational needs and maintenance demands. Funding may be utilized unevenly throughout the agreement term, provided that cumulative expenditures do not exceed the total authorized contract amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00). Funding shall be provided through the operational budget of the Street Division, Account No. 100-4900-413.30-09 (Repair/Maintenance – Traffic Signals), subject to annual budget appropriations.

SECTION 4. The City Council authorizes the City Manager, or designee, to make necessary budget adjustments, appropriations, and transfers related to this Resolution.

SECTION 5. The City Council authorizes the City Manager to execute Amendment No. 3 with Yunex, LLC., and to make any necessary non-substantive revisions consistent with the intent of this Resolution.

SECTION 6. The City Clerk shall certify the adoption of this Resolution and shall cause a certified copy to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 23rd day of June 2026. 437
Resolution 2026-91

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_____________________________________
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
438
Resolution 2026-91

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CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution No. 2026-91 was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 23rd day of June 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________________
Sandra Calderon, Deputy City Clerk
City of Banning, California
439
2344655v8

AGREEMENT FOR CITY WIDE TRAFFIC SIGNAL MAINTENANCE
SERVICES (C00857)
THIS AGREEMENT FOR TRAFFIC SIGNAL MAINTENANCE SERVICES (herein “Agreement”) is entered into this day: ___________________, (“Effective Date”) by and between the CITY OF BANNING, a California municipal corporation (“City”) and, YUNEX, LLC., a Delaware Limited Liability Company, (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. Following submission of a proposal or bid for the performance of traffic signal maintenance services, as particularly defined and described in Article 1 of this Agreement, the Consultant was selected by City to perform those services.

B. The Parties desire to enter this Agreement in order to set forth terms and conditions under which Consultant will perform the traffic signal maintenance services referenced in Recital “A”. above.

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

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, in accordance with all terms and conditions of this Agreement, and to City’s reasonable satisfaction (“Services.”) As a material inducement to City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein.

Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services described herein. Consultant covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, and fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in the California Labor Code. Therefore, as to those services that are “public works,” Consultant shall comply in all DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 8/17/2023
145640
-2-
respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit “B” hereto.

1.2 Contract Documents and Exhibits.

This Agreement includes this document, Exhibit A (Scope of Services), Exhibit B (Special Requirements), and Exhibit C (Schedule of Compensation) . In the event of any conflict between this document and any Exhibit hereto, the provisions of this document shall govern.

1.3 Compliance with Law.

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

1.4 Licenses, Permits, Fees and Assessments.

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

1.5 Familiarity with Services.

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

1.6 Prevention of Loss and Damages.

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 145741
-3-

1.7 Further Responsibilities of Parties.

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

1.8 Additional Services.

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

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

1.9 Facilities and Equipment.

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

1.10 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference.

1.11 Corrections.

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

5.3, 5.4, and 6.3, Consultant shall correct, at its expense, all errors in the Services which may be disclosed during City’s review of Consultant’s report or plans. Should Consultant fail to make DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 145842
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such correction(s) in a reasonably timely manner, such correction(s) may be made by City, and the cost thereof shall be charged to Consultant. In addition to all other available remedies, City may deduct the cost of such correction(s) from any retention amount held by City, or may withhold payment otherwise owed Consultant under this Agreement up to the amount of the cost of correction(s), as provided in Section 6.3.

1.12 Party Representatives.

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

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

Name Title
David P. Heermance President
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Consultant Representative were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing Consultant Representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Consultant Representative. For purposes of this Agreement, the foregoing Consultant Representative may not be replaced nor may their responsibilities be substantially reduced or reassigned by Consultant without the express written approval of City. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the Services, and Consultant shall refer any decisions which must be made by City to the Contract Officer. 2) Consultant’s Personnel: Consultant has, or will secure at its own expense, all personnel required to perform the Services required under this Agreement. All of the Services required under this Agreement shall be performed by Consultant or under its supervision, and all personnel engaged in the Services shall be qualified to perform such Services. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement.

Consultant shall notify City of all changes in Consultant’s staff and sub-contractors, if any, assigned to perform the Services required under this Agreement, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires to reassign any staff or sub-contractor of Consultant, City shall give notice as DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 145943
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set forth in Section 8.1. Consultant shall, immediately upon the receipt of the notice to re-assign staff from City, reassign such person or persons.

1.13 Independent Contractor.

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

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

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

1.14 Prohibition Against Subcontracting or Assignment.

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

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, as full compensation for Services satisfactorily rendered, City shall pay Consultant at the hourly rates set forth in Exhibit C-1 and the not-to-exceed sub-budget rates set forth in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. In no event shall Consultant be paid more DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146044
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than Twenty-Five Thousand Dollars ($25,000.00) (the “Contract Sum”). The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City.

Coordination of the performance of the Services with City is a critical component of the Services.

If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending those meetings.

2.2 Method of Compensation.

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

2.3 Reimbursable Expenses.

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

2.4 Unauthorized Services and Expenses.

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

2.5 Invoices.

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

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146145
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2.6 Waiver.

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

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 Schedule of Performance.

Consultant shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform monthly and call-out Services as set forth in the Scope of Services, Exhibit “A”, hereto..

3.3 Force Majeure.

The maintenance schedule specified in the Scope of Services may be adjusted because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant. Such unforeseeable consequences include, but are not restricted to, acts of God or public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and adjust the maintenance schedule when and if in the judgment of the Contract Officer such delay is justified, subject to the provisions of Section 1.8.

The Contract Officer’s determination (or the City Council’s determination, in the event the period of enforced delay exceeds the period specified in Section 1.8) shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused; Consultant’s sole remedy shall be the extension of the Agreement and/or adjustment of the maintenance schedule, pursuant to this Section.

3.4 Term.

The Term of this Agreement shall be from the Effective Date through August 31, 2024, unless sooner terminated as provided in Article 6 of this Agreement or extended by written agreement of the Parties or as provided in Sections 1.8 and 3.3 of this Agreement. This Agreement may be extended for four (4) succeeding terms of one (1) year each by the written agreement of the Parties. The maximum term and any subsequent amendment or modification to the term shall not exceed five (5) years.

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146246
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ARTICLE 4. INSURANCE AND INDEMNIFICATION

4.1 Minimum Scope and Limits of Insurance.

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

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

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

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

D. Professional Liability/Errors and Omissions Insurance with minimum limits of $1,000,000.00 per claim and in the aggregate. If a claims-made policy is provided, it shall be endorsed with an extended reporting period of not less than three (3) years, or shall be maintained in full force and effect for three (3) years, following final payment to Consultant hereunder.

4.2 Acceptability of Insurers.

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

4.3 Additional Insured.

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

4.4 Primary and Non-Contributing.

The insurance policies required under this Article shall apply on a primary noncontributing basis in relation to any other insurance or self-insurance available to City. Any DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146347
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insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

4.5 Consultant’s Waiver of Subrogation.

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

4.6 Deductibles and Self-Insured Retentions.

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

4.7 Cancellations or Modifications to Coverage.

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

4.8 City Remedy for Noncompliance.

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

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

4.9 Evidence of Insurance.

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

Consultant shall provide proof to the City Clerk that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two (2) weeks prior to the expiration of the DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146448
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coverages.

4.10 Indemnity Requirements not Limiting.

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

4.11 Sub-contractor Insurance Requirements.

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

4.12 Indemnification, Hold Harmless, and Duty to Defend.

A. Indemnification of City.
1) Indemnity for Professional Services. To the fullest extent permitted by law, Consultant shall, at its sole cost and expense, protect, indemnify, defend, and hold harmless City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, stop notices, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith, and reimbursement of attorney’s fees and costs of defense (collectively “Liabilities”), whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of Consultant, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.
2) Other Indemnities. Other than in the performance of professional services, and to the fullest extent permitted by law, Consultant shall, at its sole cost and expense, defend, hold harmless and indemnify Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, stop notices, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Claims”), at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant, its officers, agents, servants, employees, sub-contractors, materialmen, consultants or their officers, agents, servants or employees (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Claims arising from the sole negligence or willful misconduct of the Indemnitees as determined by court decision or by the agreement of the Parties. Consultant shall defend the Indemnitees in any action or actions filed in connection with any Claims with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Consultant shall DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146549
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reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
3) Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. Consultant shall indemnify and hold City harmless from any failure of Consultant to comply with applicable workers’ compensation laws.

City may offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.3. 4) Consultant shall obtain executed indemnity agreements with provisions identical to those in this Article from each and every sub-contractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. If Consultant fails to obtain such indemnities, Consultant shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities and Claims, in law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Consultant’s sub-contractor, its officers, agents, servants, employees, sub-contractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Consultant’s sub-contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities and Claims arising from the sole negligence or willful misconduct of the Indemnitees, as determined by court decision or by the agreement of the Parties.

B. Workers’ Compensation Acts not Limiting. Consultant’s indemnifications and obligations under this Article, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

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

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

ARTICLE 5. RECORDS, REPORTS, AND RELEASE OF INFORMATION

5.1 Service Records.

Consultant shall keep, and require sub-contractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and Services performed hereunder (the “Service Records”), as shall DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146650
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be necessary to perform the Services required by this Agreement and enable the Contract Officer to evaluate the performance of such Services. Any and all such Service Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such Service Records at all times during normal business hours of City, including the right to inspect, copy, audit and make copies and transcripts from such Service Records. Such Service Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Service Records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the Service Records may be given to City, and access shall be provided by Consultant’s successor in interest (“Consultant’s Successor”). If custody of the Service Records is given to Consultant’s Successor, Consultant shall give written notice to City of the transfer of the Service Records to Consultant’s Successor. The notice shall include contact information (address and telephone number) for Consultant’s Successor, and access shall be provided to City by Consultant’s Successor.

5.2 Reports.

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

5.3 Ownership of Documents.

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146751
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5.4 Confidentiality and Release of Information.

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

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

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

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

ARTICLE 6. ENFORCEMENT OF AGREEMENT AND TERMINATION

6.1 California Law.

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

6.2 Disputes; Default.

A. In the event that City determines Consultant is in default under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any Services performed after the date of default. In addition to the provisions of Section 4.8, and the DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146852
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right to terminate pursuant to Section 6.7, if the City Manager determines that Consultant is in default in the performance of any of the terms or conditions of this Agreement, City may serve Consultant with written notice of the default. Consultant shall have ten (10) calendar days after service upon it of the notice in which to cure the default by rendering a satisfactory performance.

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

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

6.3 Retention of Funds.

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

6.4 Waiver.

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

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

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 146953
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6.5 Rights and Remedies are Cumulative.

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

6.6 Legal Action.

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

6.7 Termination Prior to Expiration of Term.

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

6.8 Attorneys’ Fees.

In any litigation or other proceeding by which a Party seeks to enforce its rights under this Agreement (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorney’s fees on any appeal, and in addition the Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147054
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litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 7. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

7.1 Non-liability of City Officers and Employees.

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

7.2 Conflict of Interest.

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

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

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

7.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147155
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any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, or ancestry in the performance of this Agreement.

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

7.4 Unauthorized Aliens.

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

ARTICLE 8. MISCELLANEOUS PROVISIONS

8.1 Notices.

Any notice, demand, request, document, consent, approval, bill, invoice, report or other communication required or permitted under this Agreement shall be in writing and conclusively deemed effective: (a) on confirmed delivery by courier service or overnight delivery service during Consultant’s and City’s regular business hours; or (b) three (3) Business Days after deposit in the United States mail, by certified or registered mail, and addressed to the Party to be notified as set forth below:

If to City Attn: Art Vela
Public Works Director
City of Banning
99 East Ramsey Street
Banning, California 92220
Email: [email protected]
With a courtesy copy to: Kevin G. Ennis, City Attorney
Richards, Watson & Gershon
350 South Grand Avenue, 37th Floor
Los Angeles, California 90071
Email: [email protected]
If to Consultant: Attn: David P. Heermance, President
Crosstown Electrical & Data, Inc.
5454 Diaz Street
Irwindale, CA 91706
Email: [email protected]
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147256
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8.2 Interpretation.

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

8.3 Counterparts.

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

8.4 Integration; Amendment.

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

8.5 Severability.

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

8.6 Mutual Cooperation.

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

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147357
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8.7 No Third Party Beneficiaries Intended.

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

8.8 Final Payment Acceptance Constitutes Release.

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

8.9 Non-Appropriation of Funds.

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

8.10 Headings.

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

8.11 Word Usage.

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

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

8.13 Corporate Authority.

The persons executing this Agreement on behalf of the Parties hereto warrant that (i): such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147458
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this Agreement on behalf of that Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which that Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

8.14 Signatures.

Electronic Signatures: Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147559
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IN WITNESS WHEREOF the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF BANNING CONSULTANT
Douglas Schulze, Date
City Manager
NAME: Date
TITLE:

NAME: Date
TITLE:

ATTEST:

Tax ID No.

Caroline Patton Date
Deputy City Clerk
Address:

City Council Approval:

NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED. APPROPRIATE

ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 86-2136678
8/16/2023
Michael Hutchens
Western Operations Manager
Riverside, CA 92501
2250 Business Way
USA
8/17/2023
8/17/2023
n/a
147660
Exhibit “A”-1
11303-0011\2688202v3.doc
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the following Services in connection with providing City Wide Traffic Signal Maintenance prepared in connection therewith:

II. As part of the Services, Consultant will prepare and deliver the following tangible work products and services to City:

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147761
June 13th
, 2023
Ms. Barbara Mason
Purchasing Manager
City of Banning
99 E. Ramsey Street
Banning, CA 92220
\{UN X

TRAFFIC
RE: Proposal for: Traffic Signals Maintenance & Repair Services (RFP-23-030) Ms. Mason,
Yunex LLC would like to express our sincere appreciation for the opportunity to participate in the proposal process for providing Traffic Signals Maintenance & Repair Services for the City's traffic signal system. The prices and terms stated in our proposal package will remain in effect for 90- days from the date of submission, June 13th
, 2023.

Yunex LLC is a corporation, incorporated in the State of Delaware on February 17th , 2021. Our
federal tax employer I.D. number is 86-2136678 and our corporate address is 9225 Bee Cave Road, Building B, Austin, TX 78733.

Yunex LLC is an electrical contracting firm who is a California licensed A & C-10 contractor (CA License #1080007) and is also a registered Public Works Contractor (DIR No. 1000815000), who provides leading edge technology for the fast-paced Intelligent Transportation Systems world.

Whether providing maintenance services, controllers, controller firmware, central systems, system analysis, design, or integration, Yunex LLC brings innovative and reliable solutions to customers.

Yunex LLC has reviewed the Scope of Work in the RFP and Sample Professional Services Agreement and will list our Legal Exceptions and Assumptions within our Proposal for the City's review/consideration.

During the evaluation, if there are any questions regarding this proposal, please feel free to contact either of us using the contact information listed below. We look forward to serving the needs of the City of Banning and would like to thank you in advance for your consideration.

Respectfu I ly,
Yunex LLC
Director of Service
2250 Business Way
Riverside, CA 92501
(951) 784-6600 Office
(951) 784-6700 Fax
[email protected]
L
Yunex LLC
Michael J. Hutchens
West Operations Manager
2250 Business Way
Riverside, CA 92501
(951) 784-6600 Office
(951) 784-6700 Fax
[email protected]
EXHIBIT "A" "A" - 2
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147862
Understanding
It is our understanding that the City Banning is seeking a qualified traffic signal maintenance firm to provide Traffic Signals Maintenance and Repair Services. The selected
service company will be responsible for providing a
continuing, comprehensive, routine, and extraordinary
maintenance program for the City’s equipment. The City’s expectation is that the maintenance program will reduce the incidence of malfunctions, reduce complaints,
promote safety, and proactively extend the longevity of the equipment, thus reducing the overall operating cost for the City’s traffic signal system.

Our goal is always to exceed our customer’s expectations. We have a broad range of experienced personnel including IMSA and NEC certified Traffic Signal Maintenance personnel.

The technician assigned to this contract has over 20 years of experience managing and maintaining traffic signal systems and related ITS equipment.

Our local traffic signal laboratories (Riverside, CA) provide a full range of technical services including complete controller/cabinet testing, repair, and conflict monitor testing/certification.

Services for this contract include the provision of appropriately trained personnel and equipment necessary to perform maintenance activities as outlined in your RFP.

We understand that the general Scope of Work to be done consists of routine preventative maintenance and repair of your traffic control systems as well as general and emergency repairs of the same. These services will provide your city with safe and efficient operations. Yunex Traffic will have available and readily accessible, qualified personnel, tools, equipment, facilities, and material required to perform all work necessary for the maintenance of the City’s traffic signal systems, as outlined in the Scope of Work and in compliance with current City and State standards.

Our Approach / Emergency Response Times
To be able to respond immediately to emergency calls, Yunex Traffic’s field technicians are authorized to take their work vehicles home daily. All work vehicles are stocked with proper field equipment so he/she may sufficiently address most problems they encounter while responding.

Emergency response call outs and unscheduled repairs are initiated by calling our toll-free emergency phone number, 1-800-229-6090. A live dispatcher will be available 24 hours a day, 7 days per week, 365 days per year. Our dispatcher will create a work order in our visual planning board and once the work order is released, it will immediately transfer to our technician’s queue on their mobile device. As part of our quality control practice, our dispatcher will follow up with a phone call to our technician to confirm that he/she is in receipt of the call out/work order. For emergency calls, the technician will arrive at the site within two (2) hours to assess and correct the reported problem. Once the problem is corrected, the technician will inform the city of the repair actions.

A. Statement of Understanding and Approach
EXHIBIT "A" "A" - 3
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 147963
Scope of Work
It is always the goal of Yunex Traffic to tailor our services around our customer’s needs. We understand that throughout the term of a contract, those needs may change. We approach all our contracts with the same vision; build a partnership with the City’s staff and work towards achieving common goals set forth through that partnership. We realize that this is an everevolving process and that is why we believe that the only successful route is through establishing common goals. This methodology and a commitment to service will be applied to every aspect of our services for the City of Banning.

Routine Maintenance
We will execute a comprehensive monthly routine maintenance program as outlined in the City’s Scope of Work, as recommended by the manufacturer, and as listed below. Yunex Traffic will also maintain, at the same unit price, additional traffic signals and appurtenant devices as they are installed or become a part of the maintenance requirements of the city.

Yunex Traffic technicians will, at a minimum, perform the following tasks on the City’s traffic signal system monthly:
 Routine maintenance is typically scheduled by the technician as they are more aware of the geography of the area. He will take into consideration contract requirements and your preference when scheduling routine preventive maintenance.  Once our technician arrives at the location, he will complete a job hazard analysis (JHA) determining any potential hazards at the location. Following the JHA, he/she will secure the area with proper traffic control as referenced in the most recent edition of the W.A.T.C.H. Handbook and in accordance with the city’s traffic control requirements.  Our technician will clean and vacuum the controller and battery backup cabinets (if equipped) and ensure the cabinet vents are un-obstructed, the air filter is clean, properly inserted, and secure (air filters will be replaced semi-annually). During this process, your Yunex Traffic technician will perform the following checks inside the controller cabinet:
o Confirm the controller cabinet is securely
mounted to the foundation and inspect the
seal for deterioration. Excessive dampness
and plant/animal intrusion inside the
controller cabinet will be reported to the city
and repaired immediately.
o Verify fan operation and ensure the
thermostat is set to 96 degrees Fahrenheit
and that there is sufficient airflow through the
cabinet.
o Inspect cabinet hardware (i.e., door gaskets,
hinges, locks, etc.) for proper operation. All
deficiencies will be repaired and reported to
the city.
o Inspect electrical components (i.e., relays, load switches, equipment displays and indications, flasher(s), rack-mount detectors, harness/connectors, service connections, system telemetry, communications system, cabinet grounding, GFCI receptacles, terminal connections cabinet lights and switches, CMU (interlock) door switch, the police panel switches, etc.) for proper operation and adjust, as necessary. We will also verify proper operation of all equipment displays and EXHIBIT "A" "A" - 4
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148064
cabinet/controller indicator lamps. Deficiencies that pose a safety concern will be corrected immediately.
o Verify that controller software/firmware is up to date.  Following the visual inspection, your Yunex Traffic technician will examine the functionality of the controller in relation to traffic at the intersection and confirm all phase and coordination timing is programmed correctly and is current based on the timing sheet located in the controller cabinet.
 In addition to monitoring phase actuation from vehicle/traffic, they will also confirm proper intersection cycling by manually placing vehicle/pedestrian calls on each phase through the cabinet test switches/controller keypad to verify controller servicing of each phase.  Yunex Traffic technicians will ensure your controller’s date and time is correct and we will adjust all controller clocks within 48 hours of time changes related to Daylight Savings Time. This also includes confirming the correct date and time in all Conflict Monitor Units and Malfunction Management Units (CMU/MMU) during each visit.  Your Yunex Traffic technician will check the controller log buffers and investigate any faults that may have surfaced since the last maintenance visit.  CMU’s/MMU’s can be tested annually with an MT-180 or equivalent conflict monitor tester.

Individual test results will meet the city’s documentation requirements and be available in each controller cabinet and an electronic file (USB) will be delivered to the city within 30 days after completing the testing. This test will also be documented on the routine maintenance log located in the controller cabinet. If requested, the cost for annual CMU/MMU testing will be billed as noted on the Price Proposal.  The technician will confirm all detector loop cables are correctly identified, connected to the correct vehicle detector field terminals, and that a call is placed on the correct detector input, and that the input places a call on the correct controller phase. We will adjust or retune detector amplifiers and correct substandard splices, as necessary. Loops requiring re-seal or replacement will be documented and reported to the city immediately. Loop replacement cost will be billed as noted on the Price Proposal.  If the intersection is equipped with video/radar detection our technician will verify that detection zones are properly structured. They will also verify proper camera operation by monitoring the vehicle call on the video processor unit and confirm that the calls are registering in the controller and actuating the correct phase in the controller. The technician will verify that detection system software has been properly updated. Video Detection lens cleaning can be done, if requested, on a time/material basis.  If equipped, your Yunex Traffic technician will confirm operation of all preemption devices (i.e., railroad, emergency vehicle preemption (EVP), fire station preemption, etc.). Annual Optical detector lens cleaning can be done, if requested, on a time/material basis.  Inspect CCTV cameras for correct operation and for
damage to wiring or housing. Inspection and lens cleaning can be done, if requested, on a time/material basis.
 If equipped, your Yunex Traffic technician will also test your interconnect systems to maintain existing operation and will notify you of any deficiencies.
 If equipped, your Yunex Traffic technician will check the battery back-up systems / uninterruptible power supplies Our technicians are
extremely knowledgeable
with the installation,
handling, and testing of
interconnect and fiber
optic systems.

EXHIBIT "A" "A" - 5
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148165
(UPS) including checking / logging the battery and load levels. In addition, we will confirm all battery connections to ensure they are clean and secure. If requested, we can perform testing by electrical bypass for proper operation, which will be billed on a time/material basis. We will report any batteries that require replacement immediately. All events and run time will be documented inside each controller cabinet.  If requested, Yunex Traffic can perform a night check of all safety lights and illuminated street name signs (IISNS). Our findings will be submitted to the city and required repairs will be made according to the time & material rates. Monthly night checks can be done, if requested, on a time/material basis.
 Our technician will walk the intersection (clockwise and counterclockwise) and visually inspect all poles, signal heads, pedestrian signals, associated framework, and signal mounted signs for proper operation, alignment, and broken or missing parts. During this process, your Yunex Traffic technician will perform the following checks outside of the controller cabinet:
o Depress all pedestrian push buttons and observe
proper timing and display.
o Visually inspect the loops for sufficient sealant or
exposed loop wires.
o Inspect pull boxes, pull box lids and hand-hole covers.

Missing covers/lids will be replaced immediately.
o Visually inspect all signal doors, back plates, and visors and confirm they are secure.
o Remove unauthorized signs, stickers, and posters that can be easily removed from traffic signal poles and the controller cabinet. Graffiti will also be removed within twenty-four (24) hours of notification.
o Prepare a list of locations where painting may be
necessary, which will be submitted to the City for
approval. Painting rates can be provided upon request.
 The technician will lubricate cabinet door locks and padlocks quarterly, unless required sooner.
 Maintain an inventory list of all equipment in the controller cabinet at each location. This list will also be updated electronically and provided to the city yearly in a Microsoft Excel spreadsheet, or as requested.
 Your Yunex Traffic technician will document all maintenance activities on the city approved Preventative Maintenance checklist, on the cabinet log, and in their mobile device which is wirelessly communicating to our maintenance server enabling our customers to view all progress in virtually real-time.

EXHIBIT "A" "A" - 6
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148266
Extraordinary Services
In addition to the Preventative Maintenance program, we will provide other Extraordinary Services such as scheduled repairs, emergency response and technical support services to the City’s traffic signal systems in accordance with City requirements and as listed below.

Our Extraordinary and Emergency Response Services include, but not limited to, the following services:
 Downed signal heads, poles, signal on flash, signal
blackout, burned out lamps, damaged controllers and
cabinets, damaged illuminated street name signs, damaged inductive loops, sensing elements, pedestrian push
buttons, electroliers, pedestrian signal heads, wiring, and other operational equipment related issues.
 Assisting the City for special events or for City construction projects, as necessary to implement revised traffic signal timing and phasing for changed traffic conditions. If
requested, prepare punch list items, and follow through with city representative to ensure a successful completion.
 Perform overhead maintenance on traffic signals, safety lighting, street name and regulatory signs, video detection cameras and Opticom systems.
 Provide support for underground maintenance including conduit repair or replacement, wire inspection and
installation, and interconnect installation.
 Repair, replace or otherwise render in good working order all defective parts of the traffic signal equipment with like make and model parts. Whenever equipment is removed,
the city representative will be notified within twenty-four (24) hours.
 USA Dig Alert – Locating services using in-house locators. o Yunex Traffic will respond to all Underground Service Alert (USA) requests/notices or at the request of city staff for the marking and protection of traffic signal underground facilities such as traffic signal and electrical conduits, interconnect facilities, loops, safety light conduits, and other appurtenant equipment which might conflict with other right-of-way construction or repairs. Our technicians are equipped and certified with the proper locating devices provided by Metrotech.

EXHIBIT "A" "A" - 7
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148367
 Fiber Optic related maintenance services such as: Installation, splicing, terminations, troubleshooting, on-reel testing, and integration.
 Signal Loop Replacement. Yunex Traffic is the only maintenance provider who performs Loop replacements in-house.

Yunex Traffic will notify the City prior to any traffic signal deactivations that may be necessary to provide the required services. Traffic signal shutdowns will not be scheduled without the approval of an authorized representative of the City. Also, Yunex Traffic will not proceed with any extraordinary repairs without authorization from the city, unless it is a matter of public safety.

Spare Equipment
Yunex Traffic has over $1,500,000 in spare inventory and available to the City of Banning:
 25 – NEMA controllers (such as Econolite ASC/2S-2100, ASC/3-2100, Cobalt, McCain, and many others)
 25 – 24VDC Power Supply
 25+ – MMU/CMU from various manufacturers
 150 – Load Switches
 6 – Type P controller cabinets
 3 – 332 controller cabinets
 250+ – Replacement LED Lamps (Red/Yellow/Green) and LED pedestrian signals  50 – ADA compliant pedestrian activation buttons
 25+ - Battery Backup Batteries (sizes/manufacturers vary)  20+ – Streetlight luminaires of various manufactures and wattages  25+ - Several types/sizes of Marbelite concrete streetlight poles EXHIBIT "A" "A" - 8
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148468
On-Line Portal (Service Business Platform @ITS)
Yunex Traffic has rolled out a new service tool called SBP (Service Business Platform), which is a proprietary management system designed to effectively manage all service order progress, remotely update our ERP system (SAP) and as work is performed.  SBP allows us to monitor many key performance items such as time arrived onsite, time of completion, materials used, and vehicle/equipment used.  SBP keeps historical records for every location which allows the technicians an additional resource when troubleshooting.
 When creating a new service request, the SBP will query the location history and will flag the order if it appears to be a repeated call out or duplicate order.  Technicians transmit response and routine maintenance items in real-time using IOS or Android devices.
 The contractual Scope of Work and all maintenance activities are also available for technicians to review to ensure all tasks are completed within the specified timeframe.  Customer specific checklists for routine preventative maintenance will be available to the technicians so all required tasks are completed, per your Scope of Work.

EXHIBIT "A" "A" - 9
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148569
Customer Portal
The SBP Customer Portal gives our customers access to:
 Monitor real-time status of routine maintenance and service calls  Location history (sort/filter by date, location, call type, etc.)  Overall historical maintenance and repair data
 Real-time equipment inventories, maps, and event reporting  Asset management (including digital photographs, GIS data, etc.) EXHIBIT "A" "A" - 10
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148670
Tracking as Related to Invoicing
In addition to our Customer Portal, you will receive a monthly detailed billing report with each invoice that lists labor and equipment hours billed for each service order.

EXHIBIT "A" "A" - 11
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148771
Exhibit “A”-12
11303-0011\2688202v3.doc
III. In addition to the requirements of Parts I and II of this Scope of Services, during the performance of the Services, Consultant will keep City appraised through periodic status reports regarding the performance of the Services under this Agreement as set forth below and in Section 5.2, by the following means:
a. In-person meetings and/or teleconferences.
b. Email updates/questions to applicant team and City while reviews are underway.
c. Conference calls.

IV. All work product is subject to review and acceptance by City, and must be revised by Consultant without additional charge to City until found satisfactory and accepted by City.

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148872
Exhibit “B”-1
11303-0011\2688202v3.doc
EXHIBIT “B”

SPECIAL REQUIREMENTS

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

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

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

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

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

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

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

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 148973
Exhibit “B”-2
11303-0011\2688202v3.doc

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

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

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

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

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

11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Consultant hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
Date______________ Signature___________________________ DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149074
Exhibit “B”-3
11303-0011\2688202v3.doc

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

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149175
Exhibit “C”-1
11303-0011\2688202v3.doc
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the tasks (“Tasks”) not to exceed the rates in Exhibit “C1-1”
II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task sub-budget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8.

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

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

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

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

D. Line items for all approved sub-contractor labor, supplies, equipment, materials, and travel properly charged to the Services.

IV. Consultant’s billing rates for all personnel are attached as Exhibit C-1.

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149276
Exhibit “C-1”-1
EXHIBIT “C-1”
CONSULTANT’S BILLING RATE AND TASK SCHEDULE
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149377
Exhibit “C-1”-2
DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149478
Exhibit “C-1”-3
Project Schedule:

DocuSign Envelope ID: 2A39FCC7-80F3-45D9-8B98-1ED7ADF1981A 149579
AMENDMENT NO. 1 TO THE AGREEMENT (C00857) FOR CITY

WIDE TRAFFIC SIGNAL MAINTENANCE SERVICES BY AND

BETWEEN CITY OF BANNING AND YUNEX, LLC
THIS AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT FOR SERVICES (“Amendment No. 1”) by and between the CITY OF BANNING (“City”) and YUNEX, LLC., A Delaware Limited Liability Company, (“Contractor”) is effective as of this day: June 25, 2024.

RECITALS
A. City and Contractor entered into that certain Contract dated August 17, 2023 for the purpose of providing traffic signal maintenance services (“Agreement”) following Request for Proposal (RFP 23-030).

B. City and Contractor now desire to amend the Agreement to extend the Term of the Agreement to August 31, 2025, and increase the Contract Sum to Fifty Thousand Dollars ($50,000.00).

The Parties therefore agree follows:

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

1.1 The maximum compensation for the Services performed pursuant to this Amendment No. 1 shall not exceed Twenty-Five Thousand Dollars ($25,000.00) thereby increasing the Contract Sum, as set forth in Section 2.1 of the Agreement, to Fifty Thousand Dollars ($50,000.00).

1.2 The Term of the Agreement, as set forth in Section 3.4 of the Agreement, is hereby extended through August 31, 2025, unless sooner terminated or extended as provided in the Agreement.

2. Miscellaneous Provisions

2.1 Continued Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement, as amended by Amendment No.1, shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1. In the event of a conflict between the provisions of this Amendment No. 1 and the provisions Docusign Envelope ID: 93CB5305-2428-4B71-A3DF-9F89FB5ED04D 145380
of the Agreement or Amendment No. 1, the provisions of this Amendment No. 1 shall control.

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 1.

2.3 Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 1 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: 93CB5305-2428-4B71-A3DF-9F89FB5ED04D 145481
The Parties are signing this Amendment No. 1 on the date stated in the introductory clause.

CITY OF BANNING CONTRACTOR
Douglas Schulze,
City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Caroline Patton
Administrative City Clerk
APPROVED AS TO FORM:

Richards, Watson & Gershon
Serita R. Young
City Attorney
NOTE: PROOF OF AUTHORITY TO BIND CONTRACTING PARTY REQUIRED.

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

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

Docusign Envelope ID: 93CB5305-2428-4B71-A3DF-9F89FB5ED04D Michael Hutchens
Western Operations Manager
2024-99
145582
AMENDMENT NO. 2 TO AGREEMENT (C00857) FOR CITY WIDE

TRAFFIC SIGNAL MAINTENANCE SERVICES BY AND BETWEEN

CITY OF BANNING AND YUNEX, LLC
THIS AMENDMENT NO. 2 TO THE AGREEMENT FOR SERVICES
(“Amendment No. 2”) by and between the CITY OF BANNING (“City”) and YUNEX, LLC, a Delaware Limited Liability Company, (“Consultant”) is effective as of this day:
______________.

RECITALS
A. City and Consultant entered into that certain Contract dated August 17, 2023 for the purpose of providing Traffic Signal Maintenance Services (“Agreement”) following Request for Proposal (RFP 23-030).

B. City and Consultant have entered into an Amendment No. 1 to the Agreement dated June 25, 2024 to extend the Term of the Agreement to August 31, 2025, and increase the Contract Sum to Fifty Thousand Dollars ($50,000.00), as approved by City Council Resolution 2024-99.

C. City and Consultant now desire to amend the Agreement to modify the Scope of Services to add an additional site, update the rate schedule, extend the Term of the Agreement to August 31, 2026 and increase the Contract Sum to Seventy-Five Thousand Dollars ($75,000.00).

The Parties therefore agree follows:

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

1.1 The Scope of Services as set forth in Section 1.1 of and Exhibit A to the Agreement is hereby amended to include the Services set forth in Attachment A, attached hereto and incorporated herein.

1.2 The maximum compensation for the Services performed pursuant to this Amendment No. 2 shall not exceed Twenty-Five Thousand Dollars ($25,000.00) thereby increasing the Contract Sum, as set forth in Section 2.1 of the Agreement, to Seventy-Five Thousand Dollars ($75,000.00).

1.3 The Term of the Agreement, as set forth in Section 3.4 of the Agreement, is hereby extended through August 31, 2026, unless sooner terminated or extended as provided in the Agreement

1.4 Exhibit C-1 to the Agreement is hereby amended to read as set forth in Attachment B, attached hereto and incorporated herein.

Docusign Envelope ID: 32AFADBB-1A70-4E15-A826-4F9F5ECB0B5F June 10, 2025
144883

2. Miscellaneous Provisions

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

2.2 Consideration for Amendment. The parties hereby agree that they have each received adequate and independent consideration for the modifications to the Agreement set forth in this Amendment No. 2.

2.3 Authority. The persons executing this Amendment No. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of this Amendment No. 2 , and (iv) entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound.

2.4 Counterparts. This Amendment No. 2 may be signed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

2.5 Electronic Signatures. Each Party may adopt as its signature an electronic identification consisting of a symbol or code that is affixed to or contained in each document transmitted by such Party (“electronic signature”). The Parties hereto herby agree that electronic signatures are acceptable, shall have the same force and effect under the law as original wet signatures, and shall be sufficient to verify that the Parties have executed this Agreement and such other documents transmitted by the Parties.
[SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: 32AFADBB-1A70-4E15-A826-4F9F5ECB0B5F 144984
The Parties are signing this Amendment No. 2 on the date stated in the introductory clause.

CITY OF BANNING CONSULTANT
Robert Fisher,
Acting City Manager
NAME:

TITLE:

City Council Approval: _______________ NAME:

TITLE:

ATTEST:

Caroline Patton
Administrative City Clerk
APPROVED AS TO FORM:

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

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE

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

Docusign Envelope ID: 32AFADBB-1A70-4E15-A826-4F9F5ECB0B5F Western Operations Manager
Michael Hutchens
2025-079
145085
ATTACHMENT “A”
Docusign Envelope ID: 32AFADBB-1A70-4E15-A826-4F9F5ECB0B5F 145186
ATTACHMENT “B”
Docusign Envelope ID: 32AFADBB-1A70-4E15-A826-4F9F5ECB0B5F 145287
RESOLUTION 2025- 79

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO THE SERVICES AGREEMENT WITH YUNEX, LLC., IN THE AMOUNT OF $ 75,000 EXTENDING THE TERM THROUGH FISCAL YEAR 2027/ 2028

CITYWIDE TRAFFIC SIGNAL MAINTENANCE
WHEREAS, on May 23, 2023, through ProcureNow and advertisement in the local newspaper, City staff released a solicitation for proposals from qualified firms to provide maintenance and repair services for eight (8) traffic signals throughout the City of Banning for a term of one { 1) year with the option to renew four ( 4) additional signal year periods; and WHEREAS, in August of 2023 an agreement in the amount of $ 25,000 was administratively approved and awarded to Yunex, LLC., following the formal bid process and bid evaluation; and
WHEREAS, on June 25, 2024, Amendment No. 1 was approved and extended the term of the agreement for a one ( 1) year period and increased the traffic signal maintenance services agreement for FY 2024/2025 in the amount of $25,000; and WHEREAS, under approval of this resolution, Amendment No. 2 is approved extending the term of the agreement for an additional three ( 3) year period and increasing the traffic signal maintenance services agreement in the amount of $ 75,000 for a total contract amount of 125,000: and
WHEREAS, Amendment No. 2 will be funded by the operational budget of the Street Division, Account 100-4900-413. 30-09 (Repair/Maintenance-Traffic Signals).

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

SECTION 1. The City Council approves Amendment No. 2 to the Citywide Traffic Signal Maintenance Agreement with Yunex, LLC., extending the term through Fiscal Year 2027/2028 and increasing the contract in an additional amount of $75,000.

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

SECTION 3. City Council authorizes the City Manager to make necessary non-substantive changes and to execute Amendment No. 2 with Yunex, LLC., for services through Fiscal Year 2027/2028.

SECTION 4. 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.

Resolution 2025-79

Page 1 of 4 ends

Banning City CouncilJune 23, 2026

Banning City Council
June 23, 2026