Banning City Council
August 25, 2026

RESOLUTION 2026-121

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

AUTHORIZING THE CITY MANAGER OR HER DESIGNEE TO EXECUTE THE

MEMORANDUM OF UNDERSTANING (MOU) AGREEMENT AND ALL RELATED GRANT

DOCUMENTS, FOR THE SUSTAINABLE COMMUNITIES PROGRAM-ACTIVE

TRANSPORTATION AND SAFETY, BANNING TWO-WAY CYCLE TRACK SAFETY

PROJECT, WITH THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) ON BEHALF OF THE CITY OF BANNING
WHEREAS, Engineering Division staff prepared and submitted the Banning Two-Way Cycle Track Safety Project Grant application for the Sustainable Communities Program – Active Transportation and Safety Grant to SCAG on September 26, 2024, the applications received were competitively scored and the City of Banning was selected for an award of $895,000 with no City match required; and
WHEREAS, SCAG and Engineering Division staff will oversee the project, with SCAG paying the consultant firm performing the design and community outreach tasks directly and the City will solicit and procure a construction firm to install the quick build materials and will then be reimbursed for this work by SCAG; and
WHEREAS, the Draft MOU was reviewed by Engineering and Purchasing Division staff along with the City Attorney’s Office and comments were incorporated into the attached final MOU: and
WHEREAS a signed resolution by a governing board that includes the grant project title and job title of the person authorized to enter into a contract with Caltrans is required; and WHEREAS, the City of Banning City Council wishes to delegate authorization to execute these forms, agreements and any amendments, related to the Sustainable Communities Program – Active Transportation and Safety, Banning Two-Way Cycle Track Safety Project, thereto to the City Manager or her designee.

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

SECTION 1. The City Council hereby authorizes the City Manager, or her designee, to make necessary non-substantive changes, and to execute said MOU and any other related documents required to receive Sustainable Transportation Planning Grant funds throughout the term of the MOU.

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

SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 466
Resolution 2026-121

PASSED, APPROVED AND ADOPTED this 25th day of August 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,
LLC
467
Resolution 2026-121

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-121, was duly adopted by the City Council of the City of Banning, California, at a regular meeting thereof held on the 25th day of August 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
468
Resolution 2026-121

EXHIBIT A

MEMORANDUM OF UNDERSTANDING
No. M-030-26
469

MEMORANDUM OF UNDERSTANDING
No. M-030-26
SCAG Overall Work Program (OWP) No: 225-4955.01
Federal/State Awarding Agency: (1) United States Department of Transportation; Funding Source(s): (1) 2023 SS4A
Sub-Recipient Name: City of Banning
Sub-Recipient’s UEI No: F996EVLCRCG3
Federal Award Identification Number (FAIN): 693JJ32640422 Federal Award Date: December 13, 2023
Name of the Federal Agency: Federal Highway Administration (FHWA) Assistance Listings Title and Number: Safe Streets and Roads for All, 20.939 Federal Award Project Description: Representing a collaboration of the jurisdictions across the sixcounty region, SCAG’s Regional Safety Action Plan will identify safety improvements for the region’s transportation network leading up to the 2028 Olympic and Paralympic Games. SCAG will inform the development of this plan with quick-build demonstrations that provide roadway improvements during the 2028 Games and supplemental planning that reaches local jurisdictions. Together, these three initiatives will support long-term investments that improve transportation safety for the region’s 19 million residents, serving as a foundation for legacy improvements following the 2028 Games.

Federal Funds Supporting the Project: $895,000
Non-Federal Funds Supporting the Project: $0
Total Funds Supporting the Project: $895,000
Amount of Sub Award (funds passed through to Sub Recipient): $620,000 (2023 SS4A) Amount of SCAG Administered Technical Assistance (not passed through): $275,000 (2023 SS4A) Subaward Period of Performance Start Date: Effective date of the MOU Subaward Period of Performance End Date: December 31, 2028 Type of Contract: Project Specific
Method of Payment: See Section 6 of this MOU
Project R&D: N/A
Indirect Cost Rate for the Award: N/A
Fringe Benefits Cost Rate for the Award: N/A
Subaward Project Title: City of Banning SCP-ATS Project Subaward Project Description: City of Banning will utilize 2023 SS4A funding for a SCP-ATS quickbuild project that will support program objectives of 2023 SS4A. 470
MOU No. :M-030-26
SCAG Project/OWP No. :225-4955.01

MEMORANDUM OF UNDERSTANDING
No. M-030-26

BETWEEN THE

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS

AND CITY OF BANNING

FOR A SCP-ATS PROJECT GRANT
(SCAG Project/OWP No. 225-4955.01)
This Memorandum of Understanding (“MOU”) is entered into by and between the Southern California Association of Governments (“SCAG”) and City of Banning (“Sub-Recipient”), for a SCP-ATS Project Grant. SCAG and Sub-Recipient may be individually referred to as “Party” and collectively as “Parties.”

RECITALS
WHEREAS, SCAG is the federally designated MPO for Southern California, primarily responsible for the development of a Regional Transportation Plan/Sustainable Communities Strategy (“RTP/SCS” also known as “Connect SoCal”) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside, and Ventura;
WHEREAS, SCAG’s 2024 Sustainable Communities Program – Active Transportation & Safety (“SCPATS”) is a grant program that provides technical assistance to support implementation of Connect SoCal by strengthening partnerships with local agencies and strategic partners who are responsible for land use and transportation decisions to help the region achieve its unified goals; WHEREAS, SCP-ATS, which is partially funded by the Regional Early Action Planning Grants Program of 2021 (“REAP 2.0”), was established with a principal goal to make funding available to Metropolitan Planning Organizations (“MPO”) and other regional entities for transformative planning and implementation activities that meet housing and equity goals, reduce Vehicle Miles Traveled per capita, and advance implementation of the region’s Sustainable Communities Strategy or Alternative Planning Strategy, as applicable;
WHEREAS, the California Department of Housing and Community Development (“HCD”), which administers REAP 2.0 in accordance with Health and Safety Code sections 50515.06 through 50515.10 (“Statutes”) and REAP 2.0 guidelines for MPO applicants released by HCD pursuant to the Statutes (“REAP 2.0 Guidelines”), awarded REAP 2.0 funds to SCAG; WHEREAS, SCP-ATS is partially funded by a grant received from the California Transportation Commission (“CTC”) Active Transportation Program - Cycle 7 (“ATP Cycle 7”) and awarded by the California Department of Transportation (“Caltrans”), under Grant Agreement Numbers ATPL-6049(42) and ATPL-6049(043) and its Master Agreement Number 07-6049S21, to fund specific types of planning, non-infrastructure and quick build projects that implement regional priorities and expand the reach of regional programs;
WHEREAS, as applicable, ATP Cycle 7 grant funds are subject to applicable Caltrans requirements for architectural and engineering (A&E) projects;
471
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WHEREAS, SCP-ATS is partially funded by the Federal Highway Administration (“FHWA”), an agency of the U.S. Department of Transportation’s (“USDOT”), through the Fiscal Year 2023 Safe Streets and Roads for All (“SS4A”) Grant Program, which awarded SS4A funds to SCAG to implement its Regional Safety Action Plan, to be informed by community-driven quick-build demonstrations and other safety initiatives, including awareness campaigns, community grants, and pop-up demonstrations; WHEREAS, this MOU may be funded through various funding sources, and may be subject to requirements imposed by USDOT/FHWA, CTC/Caltrans and/or HCD (collectively, “Awarding Agencies”) as provided in Exhibit B (“Funding Requirements”); WHEREAS, SCAG’s Regional Council adopted the SCP-ATS Program Guidelines (“Program Guidelines”) on June 6, 2024, and a competitive Call for Projects was released on July 8, 2024; WHEREAS, SCAG’s Regional Council adopted the first revised guidelines on September 5, 2024; WHEREAS, SCAG’s Regional Council adopted the second revised guidelines on September 5, 2025; WHEREAS, Sub-Recipient, eligible for funds under the SCP-ATS and Program Guidelines, developed and submitted a proposed quick-build project (“Project”) for the SCP-ATS; WHEREAS, SCAG reviewed the Project and approved the Project to receive funding after determining the Project to be consistent with the: 1) SCP-ATS Program Guidelines; 2) REAP 2.0 Statutes and Guidelines; 3) SS4A Grant Program Terms and Conditions; and/or 4) Caltrans Local Assistance Procedures Manual (“LAPM”);
WHEREAS, Sub-Recipient will commit to the Project and provide SCAG as-needed support, cooperation, and guidance; and
WHEREAS, the purpose of this MOU is to set forth the respective roles, responsibilities and obligations of the Parties with respect to the Project.

NOW THEREFORE, IT IS MUTUALLY AGREED THAT:

1. Recitals and Exhibits
The Recitals and all exhibits referred to in this MOU are incorporated herein by this reference and made a part of the provisions of this MOU.

2. Term
The Term of this MOU shall be effective as of the last date on which the document is executed by all Parties (“Effective Date”) and continue until December 31, 2028, (“Completion Date”). Time is of the essence in the performance of services under this MOU. The expenditure deadline for 2023 SS4A funds is December 31, 2028.
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3. Scope of Work and Sub-Recipient’s Responsibilities
a. Sub-Recipient shall be responsible for the complete and timely performance of the Project set forth in the “Scope of Work,” attached as Exhibit A. The Project shall commence when SCAG issues a written notice to proceed.
b. Sub-Recipient shall fully comply with all Funding Requirements set forth in Exhibit B. c. Sub-Recipient shall be responsible for carrying out each of the following for the Project:

1. Fully cooperate with SCAG to procure and manage a Consultant to design and evaluate the Project.

2. Fully cooperate with SCAG and SCAG’s Consultant to support design of the Project.

3. Construction of the Project.

4. Project remains installed for a minimum of six (6) months before evaluation.

5. Fully cooperate with SCAG and SCAG’s Consultant to support evaluation of the Project.

Additional guidance on quick-build materials, designs, and project requirements can be found in the ATP Cycle 7 Guidelines and the ATP Quick-Build Supplemental Guidance. d. Interim deliverables and tasks, including budgets and schedules, required to implement the Scope of Work shall be documented using the “Scope of Work Approval Form,” attached as Exhibit F (“SAF”). The SAF must be signed by SCAG Project Manager, SCAG Department Manager, SCAG Deputy Director or their designee, and Sub-Recipient prior to the performance of the work outlined in the SAF. The SAF may be signed by way of a manual or authorized digital signature, or a signature stamp. The SAF may be used to document interim deliverables and interim deliverable budgets and schedules but may not be used to modify the deliverables and budget noted in this MOU. The SAF may be amended subject to approval by SCAG. No amendment to the SAF shall be valid unless made in writing and signed by the Parties. If there is a conflict between the SAF and this MOU, this MOU shall prevail.
e. To design and evaluate the Project, SCAG will use $275,000 of the grant funds to procure and manage a Consultant through an on-call bench in accordance with applicable procurement requirements. For purposes of this MOU, the term “Consultant(s)” shall hereinafter refer to all entities that SCAG procures, manages, or otherwise enters into contracts or agreements with, in furtherance of designing and evaluating the Project regardless of the timing, nature of service/work provided or type of organization.
f. To construct the Project, Sub-Recipient will use up to $620,000 of the grant funds to procure and manage a Contractor in accordance with applicable procurement requirements. For purposes of this MOU, the term “Contractor(s)” shall hereinafter refer to all entities that Sub-Recipient procures, manages, or otherwise enters into contracts or agreements with, in furtherance of constructing the Project regardless of the timing, nature of service/work provided or type of organization. Contractor(s) does not include SCAG’s separately retained Consultants. g. Before issuing any Invitation for Bid or other procurement(s) for construction of the Project (“IFB”), Sub-Recipient shall provide SCAG with a copy of the IFB for review and approval. In addition, Sub-Recipient shall provide SCAG with a copy of the Contractor contract(s) and Notice(s) to Proceed within 30 days of execution or issuance of each document. 473
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4. Project Management
a. All work under this MOU, as outlined in the most current fully executed SAF, shall be coordinated with SCAG and Sub-Recipient through the Project Managers.

SCAG Sub-Recipient
Anna Van
SCAG Project Manager
(213) 236-1814
[email protected]
Nathan Smith, P.E.

Deputy Director of Public Works/City Engineer
City of Banning
99 East Ramsey Street
Banning, CA 92220]
951.922.3182
[email protected]
b. SCAG reserves the right to change this designation. Sub-Recipient reserves the right to change this designation upon written notice to SCAG.

5. Funding
a. Sub-Recipient’s total SCP-ATS award amount is $895,000 (“Grant Funds”) comprised of the following Awarding Agencies and amounts:
a. 2023 SS4A, in an amount not to exceed $895,000.
b. Total costs incurred for Consultant’s services, if any, and Sub-Recipient’s construction of the Project shall not exceed the Grant Funds. SCAG shall not be obligated to make payments for any costs that exceed the Grant Funds. SCAG shall not be obligated to pay for any increase in costs which exceeds the budget included in this MOU. Of these Grant Funds, $275,000 will be retained by SCAG to provide project technical assistance and up to $620,000 will be passthrough funding to the Sub-Recipient. c. SCAG shall make payments to Sub-Recipient only for work performed as part of the Scope of Work, as outlined in the most current fully executed SAF, consistent with the Program Guidelines and Awarding Agencies funding requirements.
d. SCAG reserves the right, in its sole discretion, to discontinue funding the Project and/or terminate this MOU as described in Section 17.
e. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies, to be ineligible or otherwise unallowable, shall be repaid by Sub-Recipient within thirty (30) calendar days of SubRecipient receiving notice or a written demand for reimbursement from SCAG. Such repayment may include interest, penalties, or related fees, as determined by SCAG, the Awarding Agencies, 474
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State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies. Should Sub-Recipient fail to reimburse unallowable costs due to SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold and/or off-set future payments to Sub-Recipient.

6. Invoices
a. SCAG’s contribution to the Project shall be made on a reimbursement basis to Sub-Recipient.

Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred and paid costs may not exceed the Project’s budget set forth in this MOU and the most current fully executed SAF. All invoices submitted to SCAG for payment shall be e-mailed to [email protected] (file cannot exceed 10MB) and copy the SCAG Program Manager. On all invoices submitted to SCAG for the Project, the Project Number (OWP No. 225- 4955.01) shall be referenced.
b. Invoices shall be submitted promptly, no later than sixty (60) days after the date services are completed and accepted. If there is only one invoice it should be named “Final-Invoice” and shall certify there will be no further expenditures. Sub-Recipient shall submit an invoice to SCAG using the electronic “Invoice Template” in accordance with the invoice submittal instructions and requirements noted in Exhibit C. Invoices must be submitted in both PDF format and Excel file format. Invoices shall contain sufficient information to confirm that the services have been performed and can be paid. As noted in the Invoice Template, all invoiced costs must be substantiated by providing documented support for the expense incurred, such as copies of payroll reports, paid invoices, associated deliverables, and proof of payment. The invoice shall include, in narrative form, a description of services performed by the Sub-Recipient’s staff and Contractor as well as progress toward completion of tasks related to the Project for the invoiced period. The invoice shall be signed by the Sub-Recipient. SCAG shall review invoices for compliance with this MOU. If SCAG determines that an invoice is compliant with this MOU, SCAG shall approve the invoice and issue payment to the Sub-Recipient. If SCAG determines that an invoice is not compliant with this MOU, SCAG may withhold and/or off-set future payments(s) to the SubRecipient. c. SCAG shall reimburse the Sub-Recipient as promptly as SCAG’s fiscal procedures permit, using Electronic Fund Transfer, available at: ACH Vendor Payment Authorization Form, upon receipt of itemized invoices submitted in accordance with this MOU. The Sub-Recipient shall complete the ACH Vendor Payment Authorization Form and email it to [email protected], prior to executing this MOU.
d. Only construction and construction material costs are reimbursable. Costs incurred outside of the approved procurement for construction must be approved in advance by SCAG to be eligible for reimbursement. Subrecipient labor and overhead costs are not reimbursable under this MOU. e. The Parties acknowledge that SCAG’s fiscal year is from July 1 to June 30. Sub-Recipient agrees to submit all invoices to SCAG for services rendered through June 30th, no later than July 21st during the Term of this MOU. SCAG shall not be obligated to pay Sub-Recipient for any invoice received after such date
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7. Reporting
a. At any time during the term of this MOU, SCAG may request additional information, as needed, to demonstrate satisfaction of all requirements identified in the MOU and the most current fully executed SAF.
b. Sub-Recipient shall submit quarterly progress reports that include, in narrative form, a description of services performed by Sub-Recipient’s staff and Contractor(s)’ staff along with progress toward the completion of Project-related tasks.
c. If Sub-Recipient elects to design and evaluate the Project, Sub-Recipient may be required to provide additional progress reports during the design and evaluation of the Project. d. Within 30 days following the completion of the Project, Sub-Recipient shall submit a Project Completion Report in a format reasonable acceptable to SCAG’s Project Manager. The Project Completion Report shall include photographs of project layouts and a narrative on project outcomes and lessons learned.
e. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 225-4955.01).

8. Accounting
a. Sub-Recipient shall establish and maintain an accounting system and reports that properly accumulate incurred Project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (“GAAP”), enable the determination of incurred costs as interim points of completion, and provide support for payment vouchers and invoices. b. Sub-Recipient shall establish a separate ledger account for receipts and expenditures of Grant Funds and maintain expenditure details in accordance with the Scope of Work as outlined in the most current fully executed SAF.
c. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive procurement bid process and completed procurements, and financial records of expenditures incurred during the course of the Project in accordance with GAAP. d. Sub-Recipient agrees that (1) the Contract Cost Principles and Procedures, 48 Code of Federal Regulations (CFR), Federal Acquisition Regulations System, Chapter 1, Subchapter E, Part 31, et seq. (Office of Management and Budget Circular A-87 Revised, “Cost Principles for State, Local, and Indian Tribal Governments), 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, and applicable ATP program cost guidance shall be used to determine the acceptability of individual project cost items; and (2) all parties shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Sub-Recipient and every Contractor receiving Project funds under this MOU shall comply with Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. 476
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e. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by either SCAG, Caltrans or other State or Federal authorities to be unallowable under, but not limited to, Title 2, CFR, part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are to be repaid by Sub-Recipient within thirty (30) calendar days of Sub-Recipient receiving notice of audit findings and a written demand for reimbursement from SCAG. Should Sub-Recipient fail to reimburse unallowable costs due SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold future payments due to Sub-Recipient.

9. RESERVED

10. Work Products
a. For purposes of this MOU, “Work Products” shall mean all deliverables created or produced under this MOU including, but not limited to, all deliverables conceived or made either solely or jointly with others during the term of this MOU and during a period of six months after the termination thereof, which relates to the Project. Work Products includes all deliverables, inventions, innovations, improvements, or other works of authorship, the Sub-Recipient or its Contractor(s) may conceive of or develop in the course of this MOU, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. Work Products shall not include real property or capital improvements, both interim and permanent. b. If Sub-Recipient elects to design the Project, Work Products shall not include plans, specifications, and estimates (PS&E) package that are developed by the Sub-Recipient. However, Work Product shall include all technical reports, studies, research, analysis, investigations, and data that are authored by Sub-Recipient.
c. SCAG shall own all Work Products and may, at its sole discretion, grant to Sub-Recipient a perpetual royalty-free, non-assignable, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Project and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products will be at Sub-Recipient’s sole risk and without liability or legal exposure to SCAG. Notwithstanding the foregoing, SCAG shall, upon written request by Sub-Recipient, provide Sub-Recipient with copies of any Work Products reasonably necessary for the operation, maintenance, repair, replacement, or modification of the Project following completion. Such copies shall be provided in a timely manner and in a format reasonably usable by Sub-Recipient for such purposes. Sub-Recipient’s use of such Work Products shall remain subject to the license granted herein.

11. Amendments
No amendment or variation of the terms of this MOU shall be valid unless made in writing and signed by the Parties. If an amendment is to become effective before the date of full execution by the Parties, the effective date of such amendment shall be no earlier than the date that SCAG received the request. 477
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12. Notices
Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other Party by the Party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses:

SCAG Sub-Recipient
Cindy Giraldo
Chief Financial Officer
Southern California Association of Governments
900 Wilshire Blvd., Suite 1700
Los Angeles, CA 90017
(213) 630-1413
[email protected]
Elizabeth Gibbs
City Manager
City of Banning
99 East Ramsey Street
Banning, CA 92220
951.922.3105
[email protected]
The Parties reserve the right to change this designation.

13. Insurance
a. Sub-Recipient, at their own expense, shall procure and maintain policies of insurance, or provide evidence of self-insurance, of the types and amounts below, for the duration of the MOU, excluding the design and evaluation of the Project. The policies shall state they afford primary coverage.

Insurance Type Requirements Limits
General Liability Commercial General
Liability insurance with
coverage at least as broad as
Insurance Services Office
form CG 00 01.

Not less than $1,000,000 per occurrence,
$2,000,000 general aggregate, for bodily injury,
personal injury, and property damage. The policy
must include contractual liability that has not
been amended. Any endorsement restricting
standard ISO “insured contract” language will
not be accepted.

Automobile
Liability
Automobile insurance at
least as broad as Insurance
Services Office form CA 00

01. Covering bodily injury and property damage for
all activities of the Sub-Recipient arising out of or
in connection with work to be performed under
this MOU, including coverage for any owned,
hired, non-owned, or rented vehicles, in an
amount not less than $1,000,000 combined single
limit for each accident.

Workers’
Compensation/
Employer’s Liability
Workers’ Compensation
insurance as required by the
State of California and
Employer’s Liability
Insurance. Not required for
sole proprietors or SubRecipient with no
Including Occupational Diseases in accordance
with California Law and Employers’ Liability
Insurance with a limit of not less than $1,000,000
each accident.
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employees.

Professional
Liability Insurance
Professional Liability (Errors
and Omissions) insurance
appropriate to the SubRecipient’s profession.

With limits of not less than $1,000,000 per
occurrence. In addition, it shall be required that the
professional liability insurance policy remain in
effect for three (3) years after the Completion Date
of this MOU.

Builders Risk Upon commencement of
construction and with
approval of SCAG, SubRecipient shall obtain and
maintain builder’s risk
(course of construction) for
the entire duration of the
Project. Not required for
Projects without
construction.

Sub-Recipient shall purchase and maintain
property insurance written on a builder’s risk
“Special Form Cause of Loss” or equivalent
policy form in an amount not to exceed amount
of the Contract, plus the cost of materials supplied
or installed by others on a full replacement cost
basis. The Builder’s Risk policy shall include a
soft cost endorsement that covers soft costs equal
to twenty percent (20%) of the Contract’s full
value. Soft costs are defined as certain expenses,
in addition to labor and materials, required to
complete the Project that has been delayed due to
unexpected physical damage and include, but are
not limited to, the following: legal/accounting
fees, design or other professional fees, financing
costs, taxes, general administration, lease
expenses, permit fees and insurance premiums.

This insurance shall include the interests of the
Additional Insureds as named below, SubRecipient and the Contractors of every tier on the Project as insureds. The insurance shall cover
without limitation, loss or damage to the Work
arising from the perils covered under “Special
Form Cause of Loss” form coverage including,
without duplication of coverage for theft, fire,
lightning, explosion, or hail, smoke, aircraft or
vehicles, riot or civil commotion, vandalism,
malicious mischief, collapse, earthquake, flood,
windstorm, false-work, testing and delay of
startup, temporary buildings, property in transit
and while stored at a temporary location, debris
removal including demolition occasioned by
enforcement of any applicable legal
requirements, and shall cover reasonable
compensation for Sub-Recipient’s services and
expenses required as a result of such loss. During
the Project construction period, Sub-Recipient
and its Contractors shall mutually waive all rights
of recovery against each other and against the
Additional Insureds identified below for damages
caused by fire or other perils covered by the
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Builders Risk “Special Form Cause of Loss”
insurance. All applicable policies of insurance
covering the Work or the property of the SubRecipient or Contractor shall be endorsed to provide a waiver of subrogation in favor of the
Additional Insureds identified below, SubRecipient and all subcontractors of every tier.

Further, Sub-Recipient hereby releases, and shall
cause its Contractors to release, the Indemnitees
identified in section 14 from any and all claims,
losses and damages caused by fire or other perils
covered by the Builders Risk “Special Form
Cause of Loss” insurance. There shall be no
deductible or self-insured retention exceeding
$10,000.00 per loss, other than earthquake or
flood which may have deductible or self-insured
retentions not exceeding $50,000.00. The policy
may have sublimits not less than the following:

Earthquake $5,000,000.00 Flood $1,000,000.00
Pollution Liability Coverage shall provide for
liability arising out of
sudden, accidental, and
gradual pollution, and
remediation. Not required
for Projects without
construction.

The policy limit shall be no less than $1,000,000
per claim and in the aggregate. All activities
contemplated in this MOU shall be specifically
scheduled on the policy as “covered operations.”
The policy shall provide coverage for remediation
of the site in the event of an environmental
contamination event arising out of the materials,
supplies, products, work, operations, or
workmanship.

Products/Completed
Operations
Coverage
Coverage shall extend a
minimum of three (3) years
after project completion. Not
required for Projects without
construction.

Coverage shall be included on behalf of the
insured for covered claims arising out of the
actions of independent Contractors. If the insured
is using Contractors, the Policy must include
work performed “by or on behalf” of the insured.

Policy shall contain no language that would
invalidate or remove the insurer’s duty to defend
or indemnify for claims or suits expressly
excluded from coverage. Policy shall specifically
provide for a duty to defend on the part of the
insurer. SCAG, its officials, officers, agents, and
employees, shall be included as additional
insureds under the Products and Completed
Operations coverage.
b. Higher Limits: no representation is made that the minimum insurance requirements of this MOU are sufficient to cover the indemnity or other obligations of Sub-Recipient under this MOU. c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the 480
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following provisions:
i. SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of Sub-Recipient; products and completed operations of Sub-Recipient; premises owned, occupied or used by Sub-Recipient; or automobiles owned leased, hired or borrowed by Sub-Recipient. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials, and employees.
ii. For any claims related to this Project, Sub-Recipient’s insurance coverage shall be primary insurance as respects SCAG, its officials, and employees. Any insurance or self-insurance maintained by SCAG shall be excess of Sub-Recipient’s insurance and shall not contribute with it.
iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials, and employees. iv. Sub-Recipient’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The Workers’ Compensation and Employer’s Liability policies shall include a waiver of subrogation endorsement in favor of SCAG, its, officials, employees, and volunteers. e. Any deductibles or self-insured retentions in amounts over $10,000 must be declared to and approved by SCAG.
f. Insurance is to be placed with California admitted insurers with a current A.M. Best’s rating of no less than A and be admitted, unless otherwise approved by SCAG. g. Sub-Recipient shall furnish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf. All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, Sub-Recipient shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications.
h. Sub-Recipient agrees to ensure that its Contractor(s) provide the same minimum insurance coverage and endorsements required of Sub-Recipient. Sub-Recipient agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. However, in the event Sub-Recipient’s Contractor(s) cannot comply with this requirement, which proof must be submitted to SCAG, SubRecipient shall be required to ensure that its Contractor(s) provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Contractor(s) scope of work and services, with limits less than required of the Sub-Recipient, but in all other terms consistent with the Sub-Recipient’s requirements under this MOU. This provision does not relieve Sub-Recipient of its contractual obligations under the MOU and/or limit its liability to the amount of insurance coverage provided by its Contractor(s). This provision is intended solely to 481
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provide Sub-Recipient with the ability to utilize Contractor(s) who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of SubRecipient under this MOU given the limited scope of work or services provided by the Contractor(s). Sub-Recipient agrees that upon request, all agreements with Contractor(s) will be submitted to SCAG for review.

14. Indemnification
a. Sub-Recipient assumes all risk of injury to its employees, agents, and contractors, including any loss or damage to property, in connection with this MOU. b. When the law establishes a professional standard of care, Sub-Recipient shall, to the fullest extent permitted by law, indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from all allegations, claims, liabilities, damages, and expenses, including attorney’s fees arising out of or related to the Project or this MOU. If Sub-Recipient elects to design and evaluate the Project, Sub-Recipient shall be solely responsible and liable for all design and evaluation activities along with the accuracy and completeness of any design and evaluation deliverables.
c. For all other services, Sub-Recipient shall indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from all allegations, claims, liabilities, damages, and expenses, including attorneys’ fees, arising out of or related to the Project or this MOU, except to the extent caused by the intentional or willful misconduct of SCAG. d. Sub-Recipient shall indemnify, defend, and hold harmless SCAG, its members, officers, employees, and agents from any allegations, claims, liabilities, damages, and expenses, including attorneys’ fees, arising out of or related to any Intellectual Property or Work Products provided under this MOU that infringes or misappropriates the rights of any third party, including without limitation any patent, copyright, trade secret, or trademark right. e. These indemnification obligations in this Section are independent of any insurance coverage and are not limited by any insurance policy limits.

15. Disputes
Any dispute will be escalated to the Parties’ Project Managers, then senior executives. If unresolved within 30 days, the Parties will participate in meditation within Riverside County before litigation.

SCAG’s Project Manager may consider any written or verbal evidence submitted by Sub-Recipient.

The decision of the SCAG Project Manager, issued in writing, shall be conclusive and binding on the Parties on all questions of fact considered and determined by the Project Manager. Neither the pending of a dispute nor its consideration by the Project Manager will excuse Sub-Recipient from full and timely performance in accordance with the terms of this MOU.

16. Noncompliance
a. In the event of nonperformance or noncompliance with any requirement of this MOU, including but not limited to Project eligibility, schedule, deliverables, or milestone timelines, as outlined in the most current fully executed SAF, SCAG may terminate this MOU and require repayment of 482
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Grant Funds, including all applicable Consultant fees related to the Project. b. Notwithstanding the provisions set forth above, or any other provision contained in this MOU, no remedy conferred by any of the specific provisions of this MOU or in the most current fully executed SAF, is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy existing at law or in equity or by statute or otherwise.

17. Termination of MOU
a. Termination for Cancellation or Reduction in Funding. In the event an Awarding Agency terminates or cancels funding to SCAG that supports this MOU, whether in whole or in part, SCAG reserves the unilateral right to terminate this MOU immediately upon written notice to SubRecipient. In such event, this MOU shall be deemed terminated and SCAG shall be relieved of any and all obligation under this MOU as of the effective date of the Awarding Agency’s termination or cancelation of funding. In the event an Awarding Agency reduces funding to SCAG, SCAG shall have the unilateral right to stop work, proportionally reduce funding to Sub-Recipient, or terminate this MOU, in whole or in part, upon written notice to Sub-Recipient. b. Termination for Convenience. Either Party may terminate this MOU at any time by giving written notice to the other party of such termination at least thirty (30) calendar days before the effective date of such termination. Should SCAG terminate the MOU for convenience, upon receipt of the notice of termination, Sub-Recipient shall immediately take action to avoid incurring any additional obligation costs or expenses except as may be necessary to terminate its activities or the activities of its Contractor(s). SCAG shall pay Sub-Recipient its reasonable and allowable costs through the effective date of termination and is not liable for any expenses after termination, including any costs associated with Contractor(s). In such event, all finished or unfinished Work Products shall be provided to SCAG.
c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill its obligations under this MOU, or if either Party violates any of the covenants, terms, or stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this termination for cause provision, Sub-Recipient shall reimburse SCAG for all funds provided for the Project and all finished or unfinished Work Products shall be provided to SCAG at its option.

18. Records Retention
a. Subject to longer retention periods in the Funding Requirements, Sub-Recipient and its Contractor(s) shall maintain and make available, in accordance with Section 19 of this MOU, all source documents, books and records connected with the Project, documentation of its normal procurement policy and competitive procurement bid process and completed procurements related to the Project, all work performed under this MOU, all evidence of environmental clearance, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five 483
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(5) years after termination of this MOU. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. b. Subject to longer retention periods in the Funding Requirements, if any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained and made available by SubRecipient and its Contractor(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) termination of this MOU, whichever is later.

19. Monitoring and Audits
a. SCAG may monitor expenditures and activities of Sub-Recipient and its Contractor(s) as SCAG deems necessary to ensure compliance with the MOU and the Funding Requirements of the Awarding Agencies including but not limited to the LAPM, 2 CFR Part 200, and 48 CFR Part 31, as applicable.
b. At any time during the term of this MOU, SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies may perform or cause to be performed a financial audit of any and all phases of the Project. At their request, Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant.
c. Sub-Recipient agrees that SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made and furnished upon request at no cost.
d. If Sub-Recipient elects to design and evaluate the Project, Sub-Recipient may be subjected to additional monitoring during the design and evaluation of the Project. e. Sub-Recipient agrees to permit SCAG, the Awarding Agencies, State or Federal authorities or cognizant agencies, their designees, or any other duly authorized agencies access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this MOU, the Program Guidelines, the Funding Requirements of the Awarding Agencies, or applicable state and federal laws, rules, and regulations.
f. If there are audit findings from any audit, Sub-Recipient must submit a detailed response acceptable to SCAG for each audit finding within ninety (90) days of the audit finding report.

20. RESERVED
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21. Compliance with Laws, Rules, and Regulations
Sub-Recipient agrees to comply with all applicable federal and state laws (as set forth in the Funding Requirements) local laws, ordinances, codes and regulations and orders of public authorities as well as all applicable legal authority regarding construction standards.

22. Public Works and Construction
Without limiting the generality of Section 21, Sub-Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following:
a. Labor Code Requirements
i. Sub-Recipient is hereby put on notice that the Project under the MOU may qualify as a public works project and Sub-Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages. Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time-to-time.
ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body.
iii. If Sub-Recipient or its Contractor(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations (“DIR”) in order to be compliant with the law. Neither Sub-Recipient nor its Contractor(s) may work on a public works project without a current and active DIR registration. iv. In the event that Sub-Recipient or its Contractor(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub-Recipient and its Contractor(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub-Recipient and its Contractor(s) shall ensure compliance with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work.
v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Contractor(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter. b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all 485
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construction contracts in accordance with the California Public Contract Code and the California Labor Code.
c. All construction contracts for the Project shall be administered and managed by Sub-Recipient. SubRecipient shall prepare or have prepared a detailed schedule of performance for the Project, ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient shall be responsible for requiring the construction contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub-Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds.
d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Project, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements applicable to the Project. Sub-Recipient shall pay all charges and fees and give all notices necessary or incidental to the Project. e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Project and ensure that the Project complies with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability.
f. Sub-Recipient shall conduct all necessary due diligence for the Project, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property, including but not limited to any covenants conditions and restrictions, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project. g. Sub-Recipient shall ensure any Contractors or subcontractors are paid in accordance with applicable laws and regulations.
h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts. i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Project after completion.

SCAG shall not be responsible for ongoing maintenance of the Project after completion.

23. Conflict of Interest
The Parties shall comply with all applicable Federal and State conflict of interest laws, regulations, and policies.
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24. Independent Contractor
Sub-Recipient and its Contractor(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG.

25. Assignment
Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent may be granted, withheld, or conditioned in the consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees.

26. Release of Information
a. Subject to any provisions of law, including but not limited to the California Public Records Act, any Work Product or materials deemed confidential by either Party shall be held confidential by the receiving Party who shall safeguard such confidential materials from unauthorized disclosure, using the same standard of care to avoid disclosure as the receiving Party treats its confidential information, but in no case less than reasonable care. Nothing furnished to either Party which is otherwise known or is generally known, or has become known, to the related industry shall be deemed confidential.
b. Sub-Recipient shall not release any information or Work Products to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act). c. All public-facing communications materials relating to this MOU, or its subject matter, shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials.
d. To ensure consistency of public information about SCAG programs and funded work products, Sub-Recipient is required to notify and coordinate with SCAG Project Manager who will coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets. e. All communication materials must be provided to SCAG Project Manager prior to completion so that inclusion of this element can be confirmed.
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27. Non-Exclusivity
Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services from other entities or sources.

28. Severability
If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby.

29. Survival
The following sections survive expiration or termination of this MOU:

Section 5 (Funding)
Section 10 (Work Products)
Section 12 (Notices)
Section 13 (Insurance)
Section 14 (Indemnification)
Section 15 (Disputes)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 26 (Release of Information)
Section 31 (Jurisdiction and Venue)
Section 32 (Waiver)

30. Flow-Down Provisions
Sub-Recipient shall include the following provisions in all agreements entered into containing funds provided under this MOU, require the provisions below that survive expiration or termination of this MOU to survive, and shall include a requirement in all agreements that each of them in turn include the requirements in all contracts and subcontracts they enter into to perform work under the Project.

SCAG does not have a contractual relationship with Sub-Recipient’s Contractor(s), and Sub-Recipient shall be fully responsible for monitoring and ensuring compliance with these provisions.

Exhibit B (Funding Requirements)
Section 5.e. (Funding – repayment of ineligible costs)
Section 6 (Invoices)
Section 7 (Reporting)
Section 8 (Accounting)
Section 10 (Work Products)
Section 13 (Insurance)
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Section 14 (Indemnification)
Section 18 (Records Retention)
Section 19 (Monitoring and Audits)
Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction)
Section 23 (Conflict of Interest)
Section 24 (Independent Contractor)
Section 25 (Assignment)
Section 26 (Release of Information)
Section 33 (Standard of Care)
Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement.

31. Jurisdiction and Venue
This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Riverside County, California.

32. Waiver
No delay or failure by either Party to exercise or enforce at any time any right or provision of this MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each and every right and provision of this MOU. A waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver.

33. Standard of Care
Sub-Recipient and its Contractor(s) shall perform the work required for the Project under this MOU in accordance with generally accepted industry standards, practices, and principles applicable to such work. If Sub-Recipient elects to design and evaluate the Project, such services shall be performed in accordance with professional standards of care applicable to licensed design professionals in California.

34. Force Majeure
Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance as a result of such event shall notify the other Party in writing of such circumstances within not more than ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver the notice described in the previous sentence, then such event shall not relieve the Party from its timely performance.
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35. Entire MOU
This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed amendments, represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties with respect to the matters set forth herein.

36. Execution
This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

The signature page of this MOU or any amendments may be executed by way of a manual or authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any amendment.

37. Authority
Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake the Project, and, if applicable, that a resolution, motion, or similar action has been fully adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in connection with the Project and to provide such additional information as may be required by SCAG. 490

SIGNATURE PAGE TO

MEMORANDUM OF UNDERSTANDING
No. M-030-26
IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed by their duly authorized representatives as of the dates indicated below:

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”) By: _______________________________________________ _________________ Cindy Giraldo Date
Chief Financial Officer
APPROVED AS TO FORM:

By: _______________________________________________ _________________ Richard Lam Date
Senior Deputy Legal Counsel
City of Banning (“Sub-Recipient”)
By: _______________________________________________ _________________ Elizabeth Gibbs, City Manager Date
City Manager
APPROVED AS TO FORM:

By: _______________________________________________ _________________ John Pinkney, City Attorney Date
Slovak, Baron, Empey, Murphy & Pinkney, LLC
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EXHIBIT A

SCOPE OF WORK & BUDGET
Sub-Recipient: City of Banning
Project Title: Banning Two-Way Cycle Track Safety Project Project Description:

This project will improve safety for people walking and biking between two schools in the city. Quick-build materials will support elements including a one-way couplet around the school to reduce traffic speeds, a designated school drop off and pick up lane, enhanced crosswalks, curb extensions and signage to improve safety for senior citizens, parents, young school children and residents. With these improvements, students will be able to safely bike to and from school in a protected area designated for bicyclists with a physical separation from cars.

Project involves installation of street markings and wayfinding with no changes to concrete/asphalt.

Total Grant Funds: $895,000
Total Amount of Sub-Award: $895,000
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EXHIBIT B

FUNDING REQUIREMENTS
Sub-Recipient shall comply with all relevant federal, state, and local requirements, including cost principles, procurement standards, and environmental regulations. If a conflict arises between federal and state regulations, laws, or policies, federal law takes precedence and supersedes state law. Similarly, if a state regulation or policy conflicts with applicable federal laws, statutes, or regulations, the federal requirement must be followed. In some cases, the state may impose more stringent standards than federal (i.e. environmental regulations), which is generally allowable, provided they do not directly contradict or frustrate the objectives of the federal legislation.

I. GENERAL FEDERAL REGULATIONS
Sub-Recipient must comply with all applicable federal requirements governing federal assistance, including:
a. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR Part 200 and 48 CFR Part 31, including reporting obligations under 2 CFR Part 200, access related to books, records, and facilities for audits under 2 CFR 200.337, and Cash Management Requirements under 2 CFR 200.305
b. Labor and fair employment standards, including requirements related to Disadvantaged Business Enterprises (DBE) under 49 C.F.R. Part 26;
c. Prevailing Wage requirements under 29 CFR Part 3;
d. Environmental Compliance including, as applicable, the National Environmental Policy Act (42 U.S.C. 4321, et seq.), the Clean Air Act (42 U.S.C. 7401, et seq.), and the Clean Water Act (33 U.S.C. 1344);
e. Compliance with drug-free workplaces under 49 CFR Part 32; and f. All certifications related to:

1. Non-Discrimination (Title VI of the Civil Rights Act of 1964 and 49 CFR Part 21)

2. Debarment and Suspension (2 CFR Part 180, Part 1532);

3. Lobbying Restrictions (2 CFR Part 34; 31 U.S.C. § 1352);

4. Trafficking Victims Protection Act of 2000 (as amended) compliance;

5. Prohibition on Covered Telecommunications Equipment (2 CFR §200.216);

6. Domestic Preferences (2 CFR §200.322); and

7. Procurement of Recovered Materials (2 CFR §200.323)
g. Sub-Recipient shall require its Contractors to abide by the Federal Requirements set forth here and throughout this MOU.

II. GENERAL PROJECT REQUIREMENTS
a. Procurement. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its procurement process complies with all applicable federal, state and funding requirements. For all agreements entered into containing funds provided under this MOU or to perform work under this MOU, as outlined in the most current fully executed SAF, SubRecipient shall procure in compliance with all applicable federal, state, and local laws and regulations. These include the following:

1. Upon request, Sub-Recipient shall provide information to the SCAG Project Manager regarding any existing solicitation including, but not limited to, Requests for Proposals, Invitation for Bids, Request for Qualifications, and Requests for Quotation 493
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(collectively “RFP”). For new RFPs developed or finalized after the Effective Date of this MOU, Sub-Recipient shall provide information to the SCAG Project Manager and obtain SCAG Project Manager’s written approval on any final RFP prior to its issuance.

SCAG may require documentation of RFPs and Notices to Proceed before approval of invoice reimbursement.

2. Sub-Recipient shall be accountable to SCAG and the Awarding Agencies to ensure Contractor’s performance. Sub-Recipient’s Project Manager shall be responsible for final approval of Contractor’s deliverables consistent with the Scope of Work as outlined in the most current fully executed SAF; provided, however, that prior to approving a deliverable from the Contractor, Sub-Recipient’s Project Manager shall consult with SCAG’s Project Manager.

3. When requested, Sub-Recipient shall provide other related documentation of compliance, as determined by SCAG, with applicable procurement requirements and terms and conditions of this MOU within ten (10) days of the request.

4. Sub-Recipient shall not be authorized to direct any additional work by the Contractor or cause any increase in the Contractor costs without SCAG’s prior written approval.

In the event that Sub-Recipient or its Contractor proposes an amendment to the Contractor’s contract which changes the terms of Contractor’s contract with SubRecipient, including but not limited to, increases the value of the contract amount and/or modifies the Scope of Work, as outlined in the most current fully executed SAF, Sub-Recipient shall notify SCAG’s Project Manager in writing prior to execution of such amendment, provide SCAG with copy of the amendment and obtain SCAG’s written approval. SCAG may propose an amendment to this MOU, if necessary, consistent with any executed amendments to the Contractor contract.

5. Sub-Recipient shall be accountable to SCAG and the Awarding Agencies to ensure Contractor(s)’ performance. Sub-Recipient’s Project Manager shall be responsible for final approval of Contractor(s)’ deliverables consistent with the Scope of Work as outlined in the most current fully executed SAF; provided, however, that prior to approving a deliverable from the Contractor(s), Sub-Recipient’s Project Manager shall consult with SCAG’s Project Manager.
b. Licenses. Sub-Recipient agrees to obtain and maintain the required licenses, permits, and all other appropriate legal authorizations from all applicable federal, state and local jurisdictions, and pay all applicable fees. Sub-Recipient further agrees to immediately notify SCAG in writing of any change in its licensing status which has a material impact on the Sub-Recipient’s performance under this MOU.
c. Reporting. Sub-Recipient shall submit reports to SCAG as outlined in Exhibit A Scope of Work, as outlined in the most current fully executed SAF. Unless otherwise stated herein, all reports shall be submitted electronically to the SCAG Project Manager (“SCAG PM”) at intervals determined by SCAG PM. If the reports are too large to be attached via email, the reports shall be submitted via a file-sharing site that allows SCAG to access and download the files. SCAG reserves the right to review, comment, and request changes to any report produced as a result of this MOU.
d. No Conflict of Interest. Sub-Recipient, in performing all tasks set forth in Exhibit A Scope of Work, as outlined in the most current fully executed SAF, warrants that it has no business, professional, personal or other interest that would conflict in any manner or degree with the performance of its obligations under this MOU. Sub-Recipient must immediately inform SCAG in writing of any actual or potential conflict of interest arises during the term of this 494
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MOU. SCAG may, in its sole judgment, terminate this MOU immediately upon written notice to Sub-Recipient.
e. Standards of Performance. Sub-Recipient shall be responsible for exercising the degree of skill and care customarily required by accepted professional practices and procedures subject to SCAG’s final approval which SCAG will not unreasonably withhold. Any costs incurred due to the failure to meet the foregoing standards, or otherwise defective services which require reperformance, as directed by SCAG, shall be the responsibility of Sub-Recipient. If SubRecipient is deemed by SCAG to have failed the foregoing standards of performance, SCAG may request re-performance.
f. Pass-Through. Sub-Recipient shall require its subrecipients, if any, to abide by the Project Requirements set forth in this MOU.

III. FEDERAL REQUIREMENTS AND CERTIFICATIONS
This MOU is funded, in whole or in part, by an USDOT award to the SCAG. Information on the award may be found at SS4A FY23 Terms and Conditions, and made a part herein by this reference. As such, SubRecipient shall fully comply with all applicable federal rules, regulations, and requirements, including, but not limited to, the following:
a. Procurement Requirements. As a federal funded project, Sub-Recipient shall conduct all procurements in strict compliance with:

1. Title 2 Code of Federal Regulations Part 200 (2 CFR Part 200), including Subpart D (Post Federal Award Requirements) and Subpart E (Cost Principles); and

2. b. SS4A Requirements. Sub-Recipient, and its subrecipient(s) and Contractor(s), must fully adhere to the SS4A program requirements set forth by USDOT pursuant to the Infrastructure Investment and Jobs Act (IIJA) Section 24112 and align its performance with the specific requirements listed in the “FY 2023 Notice of Funding Opportunity (NOFO) for Safe Streets and Roads for All.”
c. Delinquent Tax Liability and Felony Convictions. Sub-Recipient warrants that federal funds will not be used for contracts with corporations having unpaid Federal tax liability or recent felony convictions under the Consolidated Appropriations Act, 2023. d. Anti-Kickback and Fraud. Sub-Recipient warrants compliance with the Copeland AntiKickback Act under 18 U.S.C. 874 and 40 U.S.C. 3145 and Whistleblower Protection under 41 U.S.C. 4712, which prohibits retaliation for disclosing gross mismanagement or violations of law.
e. Banning Text Messaging While Driving. Pursuant to Executive Order 13513, Sub-Recipient must adopt policies to prohibit texting while driving on official business. f. Quarterly Reporting. Sub-Recipient shall comply with the Quarterly Progress Reports requirement submitted in the specific format and with the content described in Exhibit D, which was designed specifically for the SS4A grant program. g. Debarment and Suspension. Sub-Recipient shall fully comply with 2 CFR Part 180, as supplemented by 2 CFR Part 1532 and Executive Order 12549. Sub-Recipient certifies that neither it, nor any of its Contractors is or has been debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions, as they are defined in 2 CFR Parts 180 and 1200, by any Federal agency or department and is: not presently excluded or disqualified, as those terms are defined in 2 CFR § 180.110; not convicted within the preceding three years of any of the offenses listed in 2 CFR § 180.800(a) or had a civil judgment rendered against it for one of those offenses within that time period; not presently 495
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indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses listed in 2 CFR § 180.800(a); or not had one or more public transactions (Federal, State, or local) terminated within the preceding three years for cause or default. Sub-Recipient acknowledges that failing to disclose the information required under 2 CFR § 180.355 may result in the delay or negation of this MOU or pursuance of legal remedies, including suspension and debarment.
h. New Restrictions on Lobbying. Sub-Recipient certifies its compliance with Title 2 CFR Part 34, New Restrictions on Lobbying. No appropriated funds may be expended by the SubRecipient of a Federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any of the following covered Federal actions: the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. i. Trafficking Victims Protection Act of 2000. Sub-Recipient, and any of its subrecipients and Contractor(s) paid with SS4A funds, shall comply with the provisions of the Trafficking Victims Protection Act of 2000 (See 22 USC 7104 et seq.; and specifically 7104(g)). j. Prohibition On Covered Telecommunications Equipment. Sub-Recipient is prohibited from obligating or expending loan or grant funds to: Procure or obtain covered telecommunications equipment or services; Extend or renew a contract to procure or obtain covered telecommunications equipment or services; or Enter into a contract (or extend or renew a contract) to procure or obtain covered telecommunications equipment or services, as those terms are defined in 2 CFR §200.216.
k. Domestic Preferences (“Buy America”). Sub-Recipient must, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products), as those terms are defined in 2 CFR §200.322.
l. Audit Requirements. During the term of the MOU, and for a period of three (3) years from the date of MOU expiration, and if requested in writing by SCAG, Sub-Recipient shall allow SCAG or the Comptroller General of the United States, their designated representatives and/or the cognizant Federal Audit Agency access during normal business hours to all records and reports related to the work performed under this MOU. Sub-Recipient assumes sole responsibility for reimbursement to USDOT, a sum of money equivalent to the amount of any expenditures disallowed should the Auditing Agencies rule through audit exception or some other appropriate means that expenditures from funds allocated to the Sub-Recipient were not made in compliance with the applicable cost principles as contained in 2 CFR Part 200 Subpart E, or the provisions of this MOU. Through the term of this MOU, and if applicable and if SubRecipient expended One Million Dollars ($1,000,000) or more in a fiscal year in Federal Awards, Sub-Recipient shall have a single or program-specific audit conducted in accordance with the requirements of 2 CFR Part 200 Subpart F.
m. Federal Property Disposition Conditions. The disposition of equipment funded in whole or in part with Federal funds, when it is no longer needed for the original project, program, or for other activities currently or previously supported by a Federal agency, must comply with local, state and federal regulations, including 2 CFR § 200.313 as amended. Pursuant to the federal property disposition conditions, Sub-Recipient agrees to report to SCAG, every 2 years after 496
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the conclusion of the MOU term, information relating to the equipment, until the equipment’s fair market value drops below $10,000 or until the equipment is no longer used in accordance with the purpose of this MOU. Information to be reported shall include: the serial number or another identification number, the fair market value at the time of the report, location, use and condition of the equipment. Sub-Recipient shall also notify SCAG within thirty (30) days of the equipment’s sale or transfer. The requirements of this provision shall survive the expiration of this MOU.
n. Intellectual Property Rights. The Parties’ rights to all intangible property made under this MOU, including copyrights, trademarks, patents, and inventions, shall be in accordance with 2 CFR §200.315 and 37 CFR Part 401, and any applicable federal regulations. In addition, Sub-Recipient agrees to the following:

1. Rights of Technical Data – The United States Government and SCAG shall have the unlimited right to use technical data, including material designated as a trade secret, resulting from the performance of services by Sub-Recipient under this MOU. SubRecipient shall have the right to use technical data for its own benefit.

2. Copyright – Sub-Recipient agrees to grant the United States Government and SCAG a royalty-free, nonexclusive, irrevocable right to reproduce, translate, publish, use, and dispose of all copyrightable material first produced or composed in the performance of this MOU.
o. NEPA Requirements. Sub-Recipient is responsible for ensuring compliance with applicable National Environmental Policy Act (NEPA) requirements, including, as applicable, serving as the implementing agency for environmental approval(s).
p. Nondiscrimination. In the performance of this MOU, Sub-Recipient must not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment on the basis of race, religious creed, color, national origin, ancestry, sex, sexual orientation, age, mental status, medical condition, physical or mental disability, or allow unlawful denial of family and medical care leave, denial of pregnancy disability leave, or reasonable accommodations. Sub-Recipient must comply with the provisions of the Fair Employment & Housing Act (Government Code § 12900 et seq.), Title VI of the Federal Civil Rights Act of 1964 (P.L. 88-352), Section 504 of the Rehabilitation Act of 1973, the Americans with Disability Act (42 USC 12101, et seq.), and all amendments thereto, and all administrative rules and regulations issued pursuant to said Acts. Sub-Recipient must also comply with all applicable Executive Orders, including:

1. Executive Order 14173 (Ending Illegal Discrimination and Restoring Merit-Based Opportunity).

2. Executive Order 14224 (English as the Official Language).

Failure by Sub-Recipient to carry out these nondiscrimination requirements is a material breach of this MOU, which may result in the termination of this MOU or other legally available remedies.
q. Citizenship and Alien Status. Sub-Recipient warrants that it fully complies with all laws regarding the employment of aliens and others, and that its employees performing services hereunder meet the citizenship or alien status requirements contained in federal and state statutes and regulations including, but not limited to, the Immigration Reform and Control Act of 1986 (P.L. 99-603). The Sub-Recipient shall obtain from all covered employees performing services hereunder all verification and other documentation of employees' eligibility status required by federal statutes and regulations as they currently exist and as they may be hereafter amended. Sub-Recipient shall have a continuing obligation to verify and document the 497
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continuing employment authorization and authorized alien status of employees performing services under this MOU to ensure continued compliance with all federal statutes and regulations. Notwithstanding the above, Sub-Recipient, in the performance of this MOU, shall not discriminate against any person in violation of 8 USC Section 1324b. r. Federal Freedom of Information Act. Certain records related to this MOU may be subject to disclosure under the Freedom of Information Act (FOIA), 5 U.S.C. § 552. Accordingly, nothing in this MOU will be construed to limit the rights of any member of the public under FOIA or to obligate SCAG to withhold records that are otherwise required to be disclosed under applicable law. Sub-Recipient must clearly mark information that it considers proprietary, confidential, or otherwise exempt from disclosure under FOIA at the time of submission. Such markings do not guarantee protection from disclosure.

Scope of Applicability. Failure to expressly identify a Federal law applicable to the Sub-Recipient or to activities under this MOU does not negate its applicability. [THIS SECTION INTENTIONALLY LEFT BLANK]
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EXHIBIT C

INVOICE SUBMITTAL REQUIREMENTS
SCAG will provide the Sub-Recipient an Invoice Template in Excel file format. The Invoice Template must be used to request reimbursement from SCAG. Detailed submittal instructions for filling out and submitting are provided in the Invoice Template. The Invoice Template may be amended from time to time and does not guarantee that any invoices will be approved or that the Sub-Recipient will receive payment.

A Final Invoice shall be submitted within sixty (60) days of Project completion and must include all remaining eligible costs, proof of payment, and a certification that no additional reimbursement requests will be submitted for this Project.

The Invoice Template will require information and supporting documentation such as, but not limited to:
a. SCAG’s “Bill To” information
b. Invoice number specified by the Sub-Recipient. The invoice number must be unique for each invoice submitted;
c. Invoice date;
d. Billing period specified with beginning and ending dates. The beginning date must not be sooner than the MOU Effective Date of the Agreement, or within any previous billing dates;
e. Total amount due for the billing period;
f. MOU Number, SCAG Project/OWP Number, and the MOU Term Date; g. Project Title;
h. Agency Name, Agency Project Manager Name, and Project Manager Email Address; and i. SCAG Project Manager Name.
j. Progress report
k. Cost by task and/or cost category
l. Detailed description of Other Direct Charges
m. Proof of payment
n. Timesheets
o. Payroll report/Payroll registers
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EXHIBIT D

REPORT TEMPLATE
Pending Template.
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EXHIBIT E
Annual Title VI Compliance Report
Section 1.01 Instructions for Agency
As a recipient of Federal Highway Administration (FHWA) and Federal Transit Administration (FTA) funds, the Southern California Association of Governments (SCAG) is required to ensure that all federally funded programs, services, and activities are conducted in compliance with Title VI of the Civil Rights Act of 1964 and related nondiscrimination laws. These laws prohibit discrimination on the basis of race, color, national origin, sex, age, and disability in federally assisted programs.

SCAG is responsible to monitoring Subrecipients and beneficiaries of FHWA/FTA funds to ensure their compliance with Title VI requirements. As a beneficiary of FHWA funds, your agency is required to implement Title VI policies and procedures to prevent discrimination and ensure equitable service delivery.

The purpose of this Annual Title VI Compliance Report is to document your agency’s ongoing compliance with Title VI requirements. This report must be completed and submitted to SCAG within two months of the MOU effective date to demonstrate adherence to federal nondiscrimination obligations.

Failure to comply with Title VI requirements may result in corrective actions, increased monitoring, or suspension of the FHWA funding. If any compliance deficiencies exist, please attach a corrective action plan outlining the steps you will take to achieve compliance.

Section 1.02 General Information
Name of Agency:

Project Name/ Number:

Date of Review:

Reviewer Name & Title:

Section 1.03 Annual Certifications
a. Title VI Policy and Training
Do you have an adopted Title VI Policy?
[ ] Yes. [ ] No*. If no, explain why not.

Do you have a Title VI Coordinator?
[ ] Yes. [ ] No*. If no, explain why not.
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Have you required your employees to receive Title VI training in the last two years? [ ] Yes. [ ] No*. If no, explain why not.

Is your Title VI Policy publicly available and posted in appropriate locations? [ ] Yes. [ ] No*. If no, explain why not.

Are Title VI complaints logged, investigated, and resolved appropriately? [ ] Yes. [ ] No*. If no, explain why not.
b. Public Engagement and Limited English Proficiency (LEP) Are your public meetings held in accessible locations?
[ ] Yes. [ ] No*. If no, explain why not.

Do you have a LEP plan in place and follow the plan?
[ ] Yes. [ ] No*. If no, explain why not.

Are LEP individuals provided interpretation and translated materials, as needed? [ ] Yes. [ ] No*. If no, explain why not.

Do your engagement efforts include minority, low-income, and underserved communities? [ ] Yes. [ ] No*. If no, explain why not.
c. Data Collection and Reporting
Do you collect demographic data on program beneficiaries, as applicable? [ ] Yes. [ ] No*. If no, explain why not.
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Do you work to identify and address disparities in services or benefits? [ ] Yes. [ ] No*. If no, explain why not.
d. Complaint Monitoring and Resolution
Is your Title VI complaint process clearly communicated to the public? [ ] Yes. [ ] No*. If no, explain why not.

Do you track complaints and resolve them within required timeframes? [ ] Yes. [ ] No*. If no, explain why not.

Have you ensured that no patterns of discrimination were identified in complaint reviews? [ ] Yes. [ ] No*. If no, explain why not.

Section 1.04 Certification and Signature
By signing below, I certify that the information provided in this report is true and accurate to the best of my knowledge. I acknowledge that failure to comply with Title VI requirements may result in corrective actions, increased monitoring, or suspension of the FHWA funding.
* If any compliance deficiencies exist, I have attached a corrective action plan outlining the steps my agency will take to achieve compliance.

Name:

Title:

Signature:
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EXHIBIT F

SCOPE OF WORK APPROVAL FORM
[INSERT]
504

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Robert Fisher, Acting City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: April 8, 2025
SUBJECT: Provide An Update to City Council of an Award of Grant for the Banning Two Way Cycle Track Safety Project, a Quick Build Pilot Study Project Funded by the Southern California Association of Governments RECOMMENDATION:

Provide direction to staff to continue to process necessary items for the Banning Two Way Cycle Track Safety Project, a Quick Build Study Project Funded by the Southern California Association of Governments (SCAG)
BACKGROUND:

SCAG Connect SoCal 2024 Sustainable Communities Program ( SCP) - Active Transportation and Safety Grant:

SCAG’s Sustainable Communities Program ( SCP) – Active Transportation and Safety grant provides funding to projects that support active transportation modes (e.g., walking, biking, and transit), improve roadway safety, and achieve the mobility goals, planning policies, strategic investments, and implementation strategies of the Connect SoCal 2024 Regional Transportation Plan/Sustainable Communities Strategy. In 2024, the SCP – Active Transportation and Safety grant funding round awarded $8.2 million in the following project categories:

Community/Areawide Plans: Active transportation-related plans that benefit disadvantaged communities, per the state’s Active Transportation Program guidelines.

Quick-Build Projects: Interim capital improvement projects that require minor construction activity and use durable, low- to medium-cost materials to pilot and iterate through active transportation and roadway safety project designs with community feedback.

Following the adoption of Connect SoCal every four years, SCAG calls for applications through the SCP to provide local technical assistance in support of Connect SoCal implementation. In July of 2024 a call for applications was announced soliciting applications for active transportation related plans and quickbuild projects that was due on September 27, 2024. The SCP – Active Transportation and Safety Cycle 7 regional funds awards $8.2 million in grants with $900,000 being the maximum awarded for quickbuild projects. SCAG, along with local and sub-regional partners, evaluated a total of 29 applications (12 for plans and 17 for quick-build projects) and selected 13 projects for funding.

Engineering Division staff and the Grants Manager prepared the SCP Quick-Build grant application in house for an innovative pilot study project shown in Attachment 1, “Banning Two Way Cycle Track Safety project” and submitted it on September 26, 2024. The Deputy Director of Public Works/City 50582
Engineer was notified on January 27, 2025 that the City of Banning’s application was competitively scored by a committee and was successful in being awarded the requested grant amount of $895,000, with no City matching funds required. The SCAG Regional Council approved the 2024 SCP Active Transportation and Safety grant award recommended project list on December 5, 2024.

This list of projects recommended for the SCP Grant by the SCAG Regional Council will be bought before the California Transportation Commission (CTC) for approval on June 26th/27th of 2025. Once approved, a City Council Resolution accepting the award is required, which will be bought before the City Council for approval in late summer of 2025. The grant terms and Agreement will be in the form of a Memorandum of Understanding (MOU) between SCAG and the City of Banning, which will be developed by SCAG after the City Council accepts the SCP Grant and put forward before the City Council for approval in late 2025.

Active Transportation Plan:

In 2021, the City of Banning obtained a SCP Active Transportation and Safety grant award to develop the City’s first Active Transportation Plan. This extensive plan was developed over the course of almost two years and was adopted by the City Council on June 25, 2024, with the staff report, resolution and presentation shown in Attachment 2.

The final Plan includes a practical implementation strategy with preliminary design schematics and concepts, and data that can be used in grant applications for fifteen (15) priority projects, and six (6) safe routes to schools projects. Additionally, existing conditions, a summary of public outreach and grant funding opportunities are summarized in the Plan and Appendix.

One of the more novel and challenging recommended projects is a separated cycle track along San Gorgonio Ave. that was highlighted and discussed with the Stakeholders Advisory committee throughout the entire project, which included the Banning Unified School District ( BUSD), at Open Houses, at Planning Commission, City Council meetings and at public meetings. Much feedback was received from the BUSD, library staff, parents, Banning PD, and residents about the unsafe conditions, due to congested pick up and drop off times, at Nicolet Middle School and Central Elementary School.

Attachment 3, Project Map and Description ( which is Exhibit 1 and 2 of the SCP grant application) describes the Banning Two Way Cycle Track project.

Separated Bikeways, also called cycle tracks, are on-street bicycle facilities with a physical separation between the bikeway and vehicle travel lanes, usually with flexible posts and buffer zone. The City’s ATP developed a state-of-the-art two-way cycle track to loop around Nicolet Middle School and run alongside Central Elementary School. Students will be able to safely bike to and from school in a protected area designated for bicyclists with physical separation from cars. This will narrow the existing vehicle travel lane, naturally slowing down traffic speeds which in turn, increases safety and comfort for people walking, bicycling, and even driving. Additional safety improvements include a one-way couplet around the school to reduce traffic speeds, designation of school drop off and pick up lanes, enhanced crosswalks, curb extensions and signage to improve safety for senior citizens, parents, young school children and residents.

The purpose of the ATP was to provide the City of Banning with a comprehensive document outlining the existing inventory of bicycle and pedestrian infrastructure and travel habits of the community. An analysis of the City's current infrastructure highlights areas of opportunity to be prioritized for future improvements and recommendations are presented within this plan as fifteen (15) priority projects. The ATP guides the development and implementation of active transportation infrastructure programs and policies for the City. Conducting the demonstration/pilot project aligns with this policy.

Community Outreach during the ATP:
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As part of the ATP, the consultant prepared a Community Engagement Plan in order to provide outreach activities that included participation from the public and from key stakeholders to ensure the Plan’s concepts reflect the community’s needs and wishes. The outreach activities engaged local and regional representatives to obtain feedback, provided presentations covering the project background, goals, scope, preliminary and draft concepts, and the final Plan, as the project progressed.

Details of the public outreach efforts during the ATP preparation process are detailed in the staff report for City Council to adopt the ATP in Attachment 2.

Banning Two Way Cycle Track Safety Project:

The one-way couplet with the cycle track around Nicolet Middle School is a distinctive feature of the adopted ATP. This design involves converting two parallel streets into a one-way couplet. This approach can significantly reduce traffic congestion around the school, enhance safety for students during peak hours, and improve traffic flow. By creating a more organized and predictable traffic pattern, the couplet reduces the likelihood of accidents and makes the area more navigable for pedestrians and cyclists.

The proposed project will include hiring a consultant for the following tasks:

Project Management
Data Collection of existing conditions in a Report;
Public Participation/Community Outreach and developing a Public Outreach Plan detailing all of the outreach events and methods and preparing a Report on outreach events, numbers, survey results, and concerns;
A Technical Advisory Committee and Community Advisory Committee that meets throughout the project;
Developing project Plans with two design alternatives for one way and two way traffic along San Gorgonio Ave., Plans and Specs for Bidding, and an Implementation Plan Collecting Post Installation Data in a Report; and preparing Draft and Final Reports including data evaluations, recommendations, future grant fund opportunities, and final Presentations.

A contractor will be hired to perform the installation. As a quick build project, the work will include roadway striping and installation of plastic delineators. No permanent fixed objects will be constructed or installed as part of the pilot project. The Scope of Work, schematic, and additional reference Exhibits to the SCP Grant application, on page 9 of 14, are listed in Attachment 1 and include a list of detailed tasks and deliverables. These safety improvements will create more opportunities to walk, bike and use transit.

A large part of the project will be Public Participation, whereby a consultant will be hired to perform community outreach before, during and after the demonstration. Surveys will be prepared and tallied to determine the community’s reaction, experience and observations to the safety improvements, meetings held monthly with BUSD, Banning PD, EMS, FD and other stakeholders via technical advisory meetings, and a project website and social media posts will solicit comments from the public. Additionally, Town Halls/Open Houses will be held at City Hall, the library and school district (PTA meetings and interviews with students and parents will occur). Pop Ups at each school during drop off and pick up hours will also solicit feedback and provide data. The data of these outreach methods will be analyzed and summarized by the consultant on a monthly basis and shared with the community.

If after installation, the community feedback is against the reconfigured roadway, the pilot study can be removed easily and returned to existing conditions. The duration of the project is expected to be 2 years and 2 months, with the actual demonstration in place for about 6 months. Once the CTC approves the list of SCP grant awards, the MOU with SCAG will be executed, a RFP for a consultant will be developed by Engineering Division staff and SCAG, and solicited in early 2026. SCAG will award the consultant contract and manage the grant management and reimbursement from Caltrans, which is a time savings for City staff. There are no hard costs associated with the SCP grant.. 50784
A demonstration and temporary pilot of the Banning Two Way Cycle Track Safety project is an opportunity to install the one-way couplet around San Gorgonio Ave. using temporary paint for lane markings and installing flexible posts for the separated bike lane and curb extensions, and to obtain community and BUSD feedback. No new ground disturbance or construction of new permanent fixed objects (like curbs or asphalt) is necessary, and all work will occur on the existing roadway between the existing curbs.

CEQA Determination:

SCAG is requiring CEQA documentation by April 18, 2025 to advance the grant application. The Director of Community Development has determined that a Notice of Exemption is appropriate for this temporary pilot study.

Section 21084 of the California Public Resources Code requires Guidelines for Implementation of the California Environmental Quality Act ("CEQA"). The Guidelines are required to include a list of classes of projects which have been determined not to have a significant effect on the environment, and which are exempt from the provisions of CEQA. In response to that mandate, the Secretary for Resources identified classes of projects that do not have a significant effect on the environment and are declared to be categorically exempt from the requirement for the preparation of environmental documents. In accordance with Section 15301 " Existing Facilities," Class 1 projects consist of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public structures, facilities, mechanical equipment or topographical features involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination.

Therefore, in accordance with Section 15301 (c), staff have determined that the Banning Two Way Cycle Track Safety project, a temporary pilot project, is considered categorically exempt from CEQA and a Notice of Exemption has been prepared and will be filed with the Riverside County Clerk.

JUSTIFICATION:

Staff is seeking City Council's concurrence to proceed with the grant award process, and submit the project’s Categorical Exemption CEQA determination to SCAG and Caltrans as a condition of the SCP grant. After Caltrans and the CTC obligate the funding, a grant agreement will be brought to City Council for execution after the CTC obligates the funding in June or July of 2025. A grant agreement is anticipated in August or September of 2025 to be brought to Council for authorization.

FISCAL IMPACT:

The City of Banning will pay recording fees with the County of Riverside to file the Notice of Exemption.

The Notice of Exemption was prepared by City Staff. The Banning Two Way Cycle Track Safety project will be paid through a Caltrans ATP Cycle 7 grant that SCAG administers.

ALTERNATIVES:

Direct staff to cease continued efforts to pursue this grant award, and notify SCAG to remove the City of Banning from the awarded projects list, and do not build the two-way cycle track pilot project that is included in the adopted Active Transportation Plan.

BUDGETED?:

No
CONTRACT/AGREEMENT:

No
ATTACHMENTS:
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1. Att. 1 SCP Grant Application Submittal, 9.26.24.pdf

2. Att. 2 6.25.24 Staff Report Agenda Packet.pdf

3. Att. 3 SCP Grant Exhibits 1 & 2. Project Map and Description.pdf

4. Draft Notice of Exemption
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2024 Sustainable Communities Program Active Transportation and Safety Application Form
Submission Date: Thursday, September 26, 2024
I. GENERAL INFORMATION
A. APPLICATION INFORMATION
If an agency/ organization is submitting more than one application, only one application needs to include all the information requested in Questions 1-13.

Additional applications must fill in Question 1 and can leave Questions 2-13 blank if the information is same across all applications.

1. Agency/Organization
City of Banning, Public Works

2. City
Banning

3. County
Riverside

4. Project Manager Name
Nathan Smith, P.E.

5. Project Manager Title
Deputy Director of Public Works/ City Engineer
1 51087

6. Project Manager Department
Public Works, Engineering

7. Project Manager Email
nsmith@banningca. gov

8. Project Manager Phone
951.922.3130

9. Additional Contact Name
Ann Marie Loconte, P.E.

10. Additional Contact Title
Associate Civil Engineer

11. Additional Contact Department
Public Works, Engineering

12. Additional Contact Email
amloconte@banningca. gov

13. Additional Contact Phone Number
951.922.3130
B. PROJECT INFORMATION

14. Project Name
San Gorgonio Ave. Cycle Track Pilot Project

15. Please provide a short summary of your project that includes the major deliverables (500 character limit)
The City of Banning’s first Active Transportation Plan (ATP) developed a state-of-the-art two-way cycle track to loop around one school and run alongside another neighboring school: Nicolet Middle School and Central Elementary School. Students will be able to safely bike to and from school in a protected area designated for bicyclists with a physical separation from cars. This will narrow the existing vehicle travel lane, naturally slowing down traffic speeds which in turn, increases safety and comfort for people walking, bicycling, and even driving. Additional safety improvements include a one way couplet around the school to reduce traffic speeds, a designated school drop off and pick up lane, enhanced crosswalks, curb extensions and signage to improve safety for senior citizens, parents, young school children and residents. The proposed project will include hiring a consultant to perform: project management, data collection of existing conditions ( with a Report), Public Participation/ Community Outreach and will develop a Public Outreach Plan detailing all of the outreach events and methods and prepare a Report on outreach events, numbers, survey results, concerns, etc., convene a TAC and CAC that meets throughout the project, develop project Plans with two design alternatives, Plans and Specs for Bidding, an Implementation Plan, Post Installation Data collection ( with a Report), Draft and Final Reports including data, recommendations and future grant fund opportunities, and final Presentations. A contractor will be hired to perform the installation. Please see the SOW for full detailed tasks and deliverables. These safety improvements will create more opportunities to walk, bike and use transit.

16. Project Duration ( Years, Months)
2 years, 2 months
2 51188

17. Requested Amount
875,000.00

18. Local Match (Please type N/A if this does not apply.) Please note: A local match is optional and not scored as part of the application. A local match will not increase the competitiveness of the application.

N/ A

19. Is your agency submitting multiple applications?
b. No

20. How many applications is your agency submitting?
1 21. What is the priority of this application (e.g. 1, 2, or 3) 1 22. Project Type
Quick-Build
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QUICK-BUILD
The 2024 Sustainable Communities Program – Active Transportation and Safety call aims to build and maintain an integrated multimodal transportation network by advancing Connect SoCal 2024 complete streets, transit and multimodal integration, and safety mobility strategies.

A. MOBILITY

1. Describe the challenges and needs for people walking, biking and using other forms of active transportation for the quick-build project area and how those challenges create barriers to an integrated multimodal transportation network.

In Banning (pop. 29,505), a historically underserved community, the existing conditions in many parts of the City, including in the proposed project area, are barriers to active transportation with sidewalk gaps, lack of bicycle and ADA-compliant facilities, and speeding motorized vehicle traffic.

Ramsey Street and San Gorgonio Avenue are significant roadways that provide access to Central Elementary and Nicolet Middle Schools, the community and Senior center, churches, the municipal swimming pool, Repplier Park, the only library, the neighborhood grocery store, Banning Civic Center, Police Station, Post Office, and County Courthouse ( see Exhibit 1). These roadways are used to access important local destinations, which underscores the need for active transportation facilities that safely and comfortably accommodate non-motorized forms of travel along these car-oriented corridors. While developing its 2023 Downtown Revitalization Complete Streets Plan and the 2024 City of Banning Active Transportation Plan, the City analyzed its roadways and engaged disadvantaged community (DAC) members to identify and prioritize the best streets to improve with active transportation facilities in order to address the community’s needs.

The proposed Project is directly informed by the City’s Complete Streets and Active Transportation Plans.

The following Plans were used to develop these Plans:
o 2024 City of Banning Active Transportation Plan
o 2023 Banning Downtown Revitalization and Complete Streets Plan o 2022 Banning Local Road Safety Plan (LRSP) established by the California Department of Transportation ( Caltrans) in alignment with the California Strategic Highway Safety Plan (SHSP)
o City of Banning General Plan 2013 Circulation Element Amendment o 2018 Western Riverside County of Government ( WRCOG) Active Transportation Plan
o City of Banning Long Range Transportation Plan
o County of Riverside Climate Action Plan
The City of Banning’s Active Transportation Plan is included in its MPO’s current regional transportation plan.

The Southern California Association of Governments’ (SCAG’s) 2024-2050 Regional Transportation Plan/ Sustainable Communities Strategy lists Banning’s Active Transportation Plan (page 70) as one of its Sustainable Communities Program Projects Approved since 2020, with this SCP grant that we are now applying for a Quick Build Grant.

The proposed project will create safer conditions for students, handicapped, senior residents, and families with wider, more connected walkways and designated bikeways separated from motorized vehicle traffic on San Gorgonio Avenue. The City will install sidewalk curb extensions with flex posts and paint at intersections to reduce the roadway width and force vehicles to slow down when turning. Pedestrians on the curb extensions and crossing the street will be more visible. The extensions shorten the crossing distance making it safer and more convenient to navigate intersections. This design forces slower driving in narrower passages thereby improving pedestrian/ cyclist safety.

Based on 301 surveys received, public comments at several workshops and Pop Ups held during the City’s 4 51390
recent Complete Streets Plan and ATP public outreach in 2022 through 2024, there are a number of barriers and challenges that prevent residents from using active transportation. These include road safety, narrow roadways with priority given to vehicles, sidewalk gaps, unsafe driver behavior, and lack of ease in reaching a destination or activity at the community facilities along San Gorgonio Ave and Ramsey St. or bus stops within the area. Road safety concerns and unsafe behavior can be attributed to:

Motorist violations: Driving at high speeds reduces the time a driver has to notice, recognize, and react to pedestrians and cyclists. Higher speeds also increase stopping distances. There is speeding along San Gorgonio Ave, the main street in this project. Turing part of it into a one way couplet, installing high visibility cross walks and curb extension and have a designated class IV cycle track will help to drastically reduce the speed of cars travelling in the area, particularly around the two schools.

Pedestrian violations: Pedestrian violations on roadways may include jaywalking, crossing streets outside of designated crosswalks, and ignoring traffic signs and signals. These behaviors increase the risk of accidents, as pedestrians may unexpectedly enter vehicle paths. Such violations stem from inadequate pedestrian infrastructure, making it difficult for pedestrians to navigate safely. Improving walkways, crosswalks, and having a one way couplet around the school and a designated school pick up and drop off lane will reduce these violations by providing safer, more accessible routes for pedestrians. Insufficient or unclear signage indicating pedestrian crossings and bike routes can lead to confusion and missed cues for drivers
Violating right-of-way: Violating right-of-way on streets occurs when drivers, pedestrians, or cyclists fail to yield as required, leading to dangerous conflicts. This includes drivers not yielding to pedestrians at crosswalks, cyclists ignoring traffic signs and signals, and pedestrians crossing against signs and signals.

Such violations disrupt the orderly flow of traffic, increasing the risk of accidents and injuries. Clear signage, more visible crossings, and improved active transportation infrastructure will help ensure that all road users understand and respect right-of-way rules, enhancing safety and efficiency on the streets.

The proposed project will remove right-of-way conflicts and confusion by removing pedestrians and bicyclists from roadways and separating them from motorized vehicles. Additionally, improved pavement markings and crossing facilities will help define spaces for pedestrians, bicyclists, and motor vehicles and encourage safer crossing behaviors. New bike lanes, crosswalks, and high-visibility intersections improve pedestrian safety by providing clear, designated spaces for walking and cycling. These features reduce the likelihood of pedestrians jaywalking or crossing unsafely by offering convenient, visible, and accessible pathways.

Enhanced infrastructure encourages compliance with traffic laws, as pedestrians feel safer using designated crossings. Additionally, high-visibility intersections increase driver awareness, further reducing the risk of accidents and promoting a safer, more orderly flow of foot and bike traffic. In areas where cars, bikes, and pedestrians share the road without clear separation, it can be difficult for drivers to anticipate the movements of non-motorized users.

This design reduces the risk of collisions and creates a more secure environment for cyclists, encouraging more residents to use bicycles for daily commutes and recreational activities. In Southern California, where such infrastructure is relatively new, these enhancements set a precedent for other cities to follow, promoting healthier lifestyles and reducing traffic congestion.

The Project includes active transportation access to public transit/ bus stops. This integration with public transit makes it easier for people to combine active transportation and transit for their journeys. The Project enhances existing transit routes to civic and government facilities and services. Additionally, the City’s transit system leads to buses that travel to nearby Beaumont and Cabazon. If residents felt more comfortable walking or biking to the main bus stops along San Gorgonio Ave and Ramsey St., they would utilize the larger San Gorgonio Pass transit network and integrate with other transit agencies’ networks.

2. Which of the following goals of the 2024 Sustainable Communities Program - Active Transportation and Safety call will the proposed quick-build project support? Improve mobility across the region, especially for children, and older adults, and people walking, biking, riding transit/ rail, and using other forms of active transportation. 5 51491
Strategically invest in communities most harmed by traffic injuries and fatalities, which include the historically disinvested communities that comprise the majority of the Regional High Injury Network Refer to application resources for more information).

Support a more resilient transportation network, especially in anticipation of the large-scale events hosted by the region.

Support local efforts to increase competitiveness for state and federal funding. 2i. Please describe how the proposed quick-build will meet the described challenges and needs identified in Question 1 and support implementation of the selected 2024 Sustainable Communities Program - Active Transportation and Safety goals.

The project will accomplish all of the SCP ATS goals. The City is committed to creating transformational multimodal facilities that benefit all residents and visitors. Current infrastructure hinders safe pedestrian and cyclist travel with barriers caused by missing sidewalk, narrow walkways, lack of designated bike lanes, limited visibility and crossings, and high-speed vehicle traffic.

Project Benefits for Students and Families
The Project benefits non-motorized travelers of varying abilities. The Project prioritizes active transportation improvements around Central Elementary and Nicolet Middle Schools, totaling over 1,750 students. By improving walkways and bikeways with greater separation from vehicles, the Project will provide safer access to schools for students and families. Improvements will reduce traffic congestion during peak school hours when long car lines form on First Street and San Gorgonio Avenue. The proposed Class IV cycle track along San Gorgonio Avenue, featuring a protective vehicle barrier, will boost confidence and accessibility for young students, while the high visibility crosswalks and narrow road crossings will benefit wheelchair users and those with limited mobility to use the facilities.

The community also requested active transportation improvements to increase physical activity. Despite being below state averages, significant portions of Banning’s population, according to 2018 California Health Interview Survey, are diagnosed with conditions like asthma (13.4%), diabetes (8.5%), and heart disease

7.9%). Promoting healthy habits in childhood minimizes risk of chronic diseases in adulthood. For students, walking or biking to school daily can fulfill the American Academy of Pediatrics’ recommended 60 minutes of physical activity for children ages 6 to 17. With average walking times of 15-20 minutes per mile, walking to school could provide over 50% of this recommendation, improving overall health in Banning.

Project Benefits for Seniors
Seniors ( age 65+) comprise 27.6% of residents, the largest Banning age bracket. The Project meets seniors’ active transportation needs, as evidenced by their 29% participation the Active Transportation Plan survey.

Seniors requested street lighting, signaled pedestrian crossings, protected or painted bike lanes, and better walkability to the Community and Senior Center located at the north end of the Project area along San Gorgonio Avenue. Infrastructure features such as curb extensions for shorter crossings, ramps, and wellmarked crossings enhance accessibility and minimize hazards. Improving active transportation conditions facilitates safer travel to the Senior Center, fostering connections, reducing social isolation, and improving health, which is crucial as seniors drive less and rely more on active transportation as they age.

Local Health Concerns
Banning’s California Healthy Places Index (HPI) score, developed by the Public Health Alliance of Southern California to predict life expectancy, is 11.6%—indicating the City is only healthier than 11.6% of other California cities. This low score is influenced by several factors.

The vast majority of Banning, and certainly within the project limits, is a disadvantaged community. The SCAG’s High Injury Network, shown in Exhibit 2, leads into and out of San Gorgonio Ave, which is in the east side of town. This area has historically been neglected with less parks, amenities and public improvement 6 51592
made within it. A fatal pedestrian collision along George St., just east of the project and other four other vehicle and pedestrian severe injuries occurred, per Figures 2-4 and 2-8 of the 2022 LRSP, shown as Exhibit 3, within this historically underserved community.

Due to limited connectivity and multimodal options, the Banning community heavily relies on cars for daily travel to essential services and schools. The proposed active transportation improvements will connect the community to key destinations along San Gorgonio Ave. (two schools, one and only community and senior center, Repplier Park and Aquatic Center, City Hall, the Police Department, Banning library, a neighborhood grocery store, several shops and businesses shown in Exhibit 1) to Ramsey Street, with many stores and attractors, providing more inclusive transportation infrastructure for all residents. Some intersections lack clearly marked crosswalks or any pedestrian crossing infrastructure, forcing pedestrians to navigate through vehicle traffic.

Responses from the community at several workshops and in the surveys ( 301 were collected) from the 2024 ATP Plan funded by a SCP Grant from SCAG indicated that seniors and residents are reluctant to take the bus due to the difficulty in accessing the stops through the unsafe traffic conditions. There are seven bus stops along San Gorgonio Ave that lead to other buses, including to the neighboring cities, including Beaumont and Cabazon. Improving accessibility and safety with the project improvements could increase use of the local transportation network.

Because the City has limited resources, grants are needed to implement active transportation strategies that will improve the health of the residents. If this demonstration project is funded, it will provide crucial data that can be used to pursue other long term permanent construction from state and federal grants and place the City in a competitive status for these grants.

B. SAFETY BENEFIT

3. Describe the quick-build project area's history of pedestrian and bicycle crashes and any other safety concerns that this plan will address. Provide data to support this description. If the quickbuild project will direct people biking and walking away from dangerous areas, data from nearby locations/ corridors may be used. Potential sources of crash history and safety concerns include the Statewide Integrated Traffic Records System, Transpor tation Injury Mapping System, Office of Traffic Safety Crash Rankings, Regional High Injury Network, and/ or local data sources ( e.g.

Crossroads, 311 requests, etc.) - Refer to application resources page Based on extensive community outreach, several challenges have been identified regarding road safety:
unsafe motorist behavior, improper turning, cars violating the pedestrian right of way, difficulty (low ease of accessibility) for residents to reach bus stops with heavy traffic and the lack of visible crosswalks.

During school pick up and drop off hours, Banning Unified School District (Banning USD), Banning PD, Fire, EMS, residents, library staff, community center staff and students have commented on how dangerous the project area is. Feedback was received during public meetings, a community pop up outside the schools and via surveys completed during the Local Roadway Safety Plan (LRSP completed in Sept. of 2022) and during the ATP development (ATP just completed in June of 2024 with a SCAG SCP grant).

Currently, the streets are two-way traffic, do not have any RRFBs or lighted crosswalks for safe crossing, and do not have designated lanes for drop off/ pick up of students. Cars are double and triple parked and drop off students in the middle of the street. Near misses have been reported by the Banning USD. This creates a safety challenge for students, walkers, bikers and motorists trying to navigate the congested roads.

SCAG’s High Injury Network from 2022, shown in Exhibit 2, show several areas shown on the project map; Ramsey St and San Gorgonio Ave, and San Gorgonio Ave and West Livingston ( within the project limits) and just east of the project, George St and Alessandro, as being high injury corridors. Changing the street to a one way, with a designated two-way protected cycle track, creating a school drop off zone, installing safety 7 51693
improvements such a visible crosswalks, curb extensions and signage will greatly enhance the safety of students.

Data from January 1, 2017 through December 31, 2021 was used to query the Statewide Integrated Traffic Records System along with the Transportation Injury Mapping System (TIMS) and is listed in the LRSP and used in the ATP. From the LRSP, Figure 2-4 City Fatalities and Severe collisions and Figure 2-8, Pedestrian Collisions by Severity are included as Exhibit 3 and shown in the project area on Exhibit 2, are nearby bicycle collisions along with crash hot spots.

Within a quarter mile radius of the school, walking distance for many students in this disadvantaged area, there has been: 1 bike collision, 5 pedestrian collisions and 1 pedestrian fatality. Just outside of the ¼ mile several more pedestrian collisions have occurred. Central Elementary school is the largest in Banning with 783 students and Nicolet Middle School has a population of 975 students.

The one-way couplet around Nicolet Middle School is another distinctive feature of the Project. This design involves converting two parallel streets into one-way roads that move traffic in opposite directions. This approach can significantly reduce traffic congestion around the school, enhance safety for students during peak hours, and improve traffic flow. By creating a more organized and predictable traffic pattern, the couplet reduces the likelihood of accidents and makes the area more navigable for pedestrians and cyclists.

4. Explain how the quick-build project’s approach, elements and materials respond to the identified safety concern(s). What are the intended safety outcomes and how will the outcomes be measured/ evaluated? As part of your response, include references to the relevant parts of the scope of work and initial project layout (e.g. conceptual plan) The proposed project will address the safety concerns of residents and students by providing a state-of-theart two-way cycle track to loop around one school and run alongside another neighboring school: Central Elementary School and Nicolet Middle School. Students will be able to safely bike to and from school in a protected area (using flexible posts) designated for bicyclists with a physical separation from cars. This along with curb extensions will narrow the existing vehicle travel lane, naturally slowing down traffic speeds which in turn, increases safety and comfort for people walking, bicycling, and even driving. Additionally, a dedicated drop off/ pick up lane will significantly improve safety and prevent a backup of cars into the crosswalks and surrounding streets, the schematic is shown as Exhibit 4. The San Gorgonio Ave loop will change the parallel streets to a one-way couplet. If the community does not like the one-way streets, a two way traffic San Gorgonio Ave can be implemented. At a minimum, these two designs will be included in the engineering consultant’s Scope of Work. The material used are flexible, such as paint and flexible posts for the cycle track, that can be changed/ removed fairly easily based on the safety outcomes or public response.

These both will be measured qualitatively and quantitively and analyzed by Engineering staff as described below.

Lastly, new painted enhanced crosswalks and signage will ensure pedestrians and cyclists, and handicapped residents can confidently cross streets after school, in particular students from Central Elementary and Nicolet Middle School, to the community attractors on the west side of San Gorgonio Ave (public library, community center, aquatic center and the elementary school). There are seven ( 7) City bus stops along San Gorgonio Ave. and Alessandro St., and about a dozen within the route of improvements in the project area that would improve the ease of accessibility from the safety improvements. In summary the following improvements will address the safety and accessibility concerns voiced by the public: separated protected bike lane, one-way couplets, enhanced crosswalks, curb extensions and signage and a designated school pickup/ drop off lane.

Banning analyzed the deficiencies during its Active Transportation Planning process, and considered ways to slow traffic, expand space for people walking and bicycling, and provide a safer walking environment. In alignment with the Plan shaped by the public, this project will increase connectivity and safety with improved bike lanes, pavement markers, high visible crosswalks, and signs. The proposed project will address residents’ concerns and remove barriers by:
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Enhancing Safety: Protected Bike lanes provide dedicated spaces for bicyclists, reducing the risk of conflicts with motor vehicles. Traffic calming features will slow traffic by reducing road space for cars and encouraging slower driving speeds. Improved crosswalks and intersections that prioritize bicyclists and pedestrians will make streets safer for all users and less stressful for active transportation users.

Improving Accessibility: Well-designed bike lanes and roads create a connected network that allows people to travel safely and conveniently throughout Downtown without relying on motorized transport. New infrastructure will have inclusive designs to be accessible for all users, including those with disabilities, improving mobility options for everyone.

A large part of the project will be Public Participation, whereby a consultant will be hired to perform community outreach before, during and after the demonstration. Surveys will be prepared and tallied to determine the community’ s reaction, experience and observations to the safety improvements, meetings held monthly with Banning USD, Banning PD, EMS, FD and other stakeholders via technical advisory meetings, a project website and social media posts will solicit comments from the public. Additionally, Town Halls/ Open Houses will be held at City Hall, the library and school distract (PTA meetings and interviews with students and parents will occur). Pop Ups at each school during drop off and pick up hours will also solicit feedback and provide data. The data of these outreach methods will be analyzed and summarized by the consultant on a monthly basis and shared with the community.

Quantitative data will be measured, collected, analyzed and tallied by the civil engineering firm hired to perform the Design and Engagement work. Task 2. Existing Conditions and Analysis Report, and Task 6.

Evaluation and Report, in the Scope of Work will include collecting data such as vehicle counts and speed on the surrounding roads and with the project limits, bicycle and pedestrian counts/ usage, collision data, violations issued by the PD, data from the Fire and EMS, school district and other important data will be collected as suggested by the engineering firm. This will be done prior to the project being implemented for baseline purposes, and after the project has been implemented for 6 months, and shared with the community and Engineering staff to learn what safety measures should remain and what should be enhanced or changed. Reviewing and evaluating the data will ensure that the anticipated outcomes of safer roads (lower speeds and number of cars) and more active transportation ( increased pedestrian and bicycle counts) occurred due to the project’s implementation. Public input through surveys and input are included as data for these Tasks.
4i. Attach scope of work, schedule, budget, and initial project layout (conceptual plan) here PDF Exhibit 3. 2022 LRSP Figs. 2.….pdf PDF Exhibit 4. Schematic of Cycle ….pdf PDF 307_Exhibit 5. Cal Env Score ….pdf PDF Exhibits 1. and 2. Project Ma…. pdf XLS
X Final, 24-0010-scp-ats-budge….xlsx XLSX Final, 24-0010-scp-ats-scope….xlsx C. PUBLIC HEALTH
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5. Describe how your project will address local public health concerns and disparities. Also describe additional co-benefits connected to public health, such as urban greening and cooling, placemaking, and improving livability. Potential sources for understanding and describing public health concerns and disparities include the Healthy Places Index, the California Health Interview Survey, local data, and/or public health-related metrics from CalEnviroScreen, the Climate and Economic Justice Screening Tool, or U.S. Department of Transportation Equitable Transportation Community Explorer ( Refer to application resources page) One of the important goals of the City's Two-Way Cycle Track Safety project is to provide a new active transportation option to improve public health and quality of life benefits for all residents. Exhibit 5 shows the project area’s Cal Environ score and Healthy Places Index (HPI) for reference.

Local Health Concerns
Banning’s California Healthy Places Index (HPI) score is 11.6%; this indicates the City is only healthier than

11.6% of other California cities. (See Attachment: Healthy Places Index-HPI). This low score is influenced by several factors, including:

Transportation: Only 2.27% of workers in Banning ( 16 years and older) commute by transit, walking, or bicycling. Active commuting offers physical activity, provides transportation options for carless individuals, encourages social cohesion, and reduces climate impact and air pollution.

Economic Conditions: In Banning, 21% of residents live below poverty. Research indicates that economic opportunity strongly predicts good health and health disparities for people in or near poverty.

Neighborhood Conditions: Only 2% of Banning’s land has a tree canopy (weighted by the number of people per acre). Trees provide shading and cooling, mitigate GHG emissions, reduce stress, and promote health, wellness, and physical activity.

The Cycle Track project aims to tackle health concerns highlighted by the HPI by providing a designated, barrier-separated bike lane to promote biking instead of vehicle travel within the Project area. The Project also addresses health disparities by creating opportunities for physical activity, providing a safe transportation option for those without a car, reducing emissions of air pollutants and greenhouse gases by reducing Vehicle Miles Traveled ( VMT), and by providing direct access to amenities and large green spaces including Repplier Park.

According to 2021-2022 California Health Interview Survey (CHIS) data, significant portions of Banning’s population are diagnosed with conditions like asthma (15.2%), diabetes (12.7%), and heart disease (10.4%).

Promoting healthy habits in childhood minimizes risk of chronic diseases in adulthood. For the 2,904 students attending Central Elementary, Nicolet Middle and Banning High Schools, biking to and from school via the new Two-Way Cycle Track daily can fulfill the American Academy of Pediatrics’ recommended 60 minutes of physical activity for children ages 6 to 17.

Making cycling safer, less stressful and more attractive, the Cycle Track will encourage more people to engage in physical activity, which can lead to improved public health outcomes and decrease health disparities. Increased cycling can lead to fewer cars on the road, reducing air pollution and contributing to a cleaner environment – especially important in this community that suffers the burdens of high instance of asthma and cardiovascular disease.

Quality of Life
Lower income families in poor areas are especially vulnerable to transportation insecurity, and often walking or biking are necessary to get to a job, store, or school. By creating designated, separated bicycle lanes, the 10 51996
Project will positively impact residents who use a bicycle as their primary mode of transportation. The Cycle Track will provide connectivity to destinations within the Project area such as the Banning Library, Banning City Hall, Banning Community Center and Senior Center, Repplier Park and Aquatic Center, as shown on Exhibit 1. This will greatly improve accessibility, safety and quality of life for residents, creating a more livable community. The Project will also encourage the use of public transit as many people who use public transportation cycle to or from stops and stations.

Through the SCAG-funded Active Transportation Plan public outreach process conducted October 2022 thru March 2023, the greater Banning Community was able to collaboratively determine and prioritize what active transportation and safety improvements were needed in the City. For biking, the top five preferences were:
separated bike paths, protected or painted bike lanes, street lighting, bike parking, and a bikeshare program.

The participants also requested active transportation improvements to increase physical activity. The TwoWay Cycle Track Safety Project is a direct result of this Community placemaking effort.

The project will reduce traffic congestion near the two schools, lowers carbon emissions, and promotes healthier lifestyles. As a visible commitment to sustainable infrastructure, the bike lane can attract support for further active transportation projects. Additional benefits include:

Promoted Health and Well Being: By making walking and cycling safer, less stressful, and more attractive, these facilities will encourage more people to engage in physical activity, which can lead to improved public health outcomes and decrease health disparities. Increased walking and cycling can lead to fewer cars on the road, reducing air pollution and contributing to a cleaner environment – especially important in this community that suffers the burdens of high instance of asthma and cardiovascular disease.

Environmental Sustainability: Promoting cycling and walking helps reduce reliance on fossil fuels, contributing to lower greenhouse gas emissions. The Project includes native plantings for shade, cooling, and green spaces, which improve urban biodiversity and aesthetics.

D. DISADVANTAGED COMMUNITIES
Quick-build projects are not required to be located in a Priority Equity Community or disadvantaged community. However, the 2024 Sustainable Community Program – Active Transportation and Safety call will strategically invest in communities most harmed by traffic injuries and fatalities, which include the historically disinvested communities comprising the majority of the Regional High Injury Network. Proposed quick-build projects not located in a Priority Equity Community or disadvantaged community are still encouraged to apply, because the proposed project may still benefit priority equity or disadvantaged communities.

6. Is the project area in a Priority Equity Community ( PEC) or in a disadvantaged community as identified in the state’s Active Transportation Program guidelines? See pages 11-13 of the state's 2025 Active Transportation Program guidelines for definitions of each disadvantaged community(Refer to application resources page).

Yes
6i. Which disadvantaged community definition applies to the project area? CalEnviroScreen
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6ii. Upload a screenshot of a map identifying the project and its relationship to a PEC or equivalent disadvantaged community.

PDF Exhibit 5. Cal Env Score and …. pdf

7. Explain how the quick- build project will directly benefit a Priority Equity Community or other measure of a disadvantaged community and ensure those with the greatest need are not negatively impacted by this project.

The entire Project area is designated as a DAC based on median household income as well as CalEnviro Screen 4.0 data and National School Lunch free and reduced lunch data. Banning is a historically underserved community nestled between more affluent areas, such as the Palm Springs resort area to the east and areas of greater means to the west. Banning’s DAC residents will have direct access to the Project as the bikeways and improvements that will be constructed in the Project area are immediately adjacent to the disadvantaged neighborhoods of these Census Tracts. Many residents in and near the Project area do not own vehicles and walking is their only mode of transportation to access schools, City amenities, and City bus stops. The Project will also increase connectivity to local transit at seven existing bus stops in the Project Area. Exhibit 5 shows the Cal Environ Score and HPI index for the project area.

The proposed Project provides active transportation improvements that will benefit the students and families that attend Central Elementary School and Nicolet Middle School. According to the Unduplicated Student Poverty – Free or Reduced -Price Meal Data for 2022-2023, 89.0% of Central Elementary ( enrollment 783) and

89.6% of Nicolet Middle (enrollment 975) are eligible for free or reduced- price meals. The Project will serve these disadvantaged students and families. In Banning, 21% of residents live below poverty. Research indicates that economic opportunity strongly predicts good health and health disparities for people in or near poverty.

The protected bike lane, curb extensions and improved visibility of crosswalks provides a safe, direct route for cyclists and pedestrians, encouraging more people to choose biking or walking over driving. Additionally, a dedicated drop off/pick up lane will prevent idling cars and traffic backups. This reduces traffic congestion, lowers carbon emissions, and promotes healthier lifestyles. The project will not have any negative impacts on the community.

As a visible commitment to sustainable infrastructure, the bike lane can attract support for further active transportation projects. The success of the bike lane can spur additional investments in similar projects, such as expanding bike lanes, adding bike-sharing stations, and improving pedestrian pathways. Future capital and maintenance projects can build on this foundation, progressively creating a comprehensive, citywide network by ‘chasing the pavers’ and installing bike facilities on surrounding roads after paving or slurry maintenance projects. This network will enhance mobility, improve public health, and contribute to a greener, more connected City.

E. PUBLIC PARTICIPATION

8. Which of the following goals of the Sustainable Communities Program will the community engagement component of the propose plan support (Refer to application resources page)? Provide needed resources forlocal jurisdictions to advance the goals outlined in the four pillars of Connect SoCal 2024: mobility, communities, environment and economy. 12 52198
Promote racial equity grounded in the recognition of the past and current harms of systemic racism and advance restorative justice.

Integrate the region’s development pattern and transportation network to improve air quality, reduce greenhouse gas emissions and enable more sustainable energy and water use.

Prioritize the most vulnerable populations and communities subject to climate hazards to help the people, places and infrastructure most at risk for climate change impacts. In doing so, recognize that disadvantaged communities are often overburdened.

Increase the region’s competitiveness for federal and state funds, including the California Active Transportation Program and Greenhouse Gas Reduction Funds. i. Please describe how stakeholders will be engaged equitably in the development of the plan in line with the Sustainable Communities Program goals as outlined above. Identify community/ plan area- specific engagement challenges and describe the intended outreach approach and strategies to maximize accessibility.

The City has a Public Information Officer to assist with public outreach and recognizes the challenges in reaching the community which include adults that work during the day, need childcare, speak Spanish as their primary language, and don’t have access to remote meetings. The philosophy of public outreach is to meet people where they are. With this in mind, Open Houses and meetings will be held during different times of the day, various weekdays and weekend days, and in different venues. Outreach and presentations will occur during PTA meetings in the schools, events/ clubs at the library (so families can attend with their children), at the community center, City Hall, Chambers of Commerce, HOA meetings, and community events such as Market Night and family holiday events held within the City (Halloween, concerts at the park during the summer, holiday parties, etc.).

Meetings at City Hall can be attended in person or via Zoom and are recorded so they can be accessed and are shown on the City tv network after it occurs during the week. These meetings will be used to inform the public and obtain their feedback before, during and after the project design and demonstration phases, where students, residents, and visitors can learn about and experience the new infrastructure firsthand, which will further enhance awareness and engagement.

Additionally, the City will install informative signage around the new infrastructure and collaborate with local media to run features highlighting the benefits and safety aspects of active transportation. The City will also engage business owners in the Project areas to receive their ongoing feedback about the active transportation changes and slower traffic in the project area.

Additional outreach materials in English and Spanish include social media, handing out surveys, advertisements of meetings and the project website to residents on City buses, during Pop Ups outside the schools during pickup and drop off times, information booths at community events, a utility bill insert, and City Council workshops. By leveraging these diverse channels, the City will effectively communicate the advantages of active transportation, such as improved safety, health benefits, and reduced traffic congestion, thereby encouraging widespread adoption and support.

Previous Public Outreach helped to shape this Project:

On May 23, 2023, City officials met with Banning Unified School District (BUSD) staff to learn more about existing active transportation challenges around schools and discuss solutions. The BUSD expressed safety concerns for students commuting to and from school, emphasizing needs for safer crossings, completed sidewalks, and reduced vehicle speeds. While officials felt improved active transpor tation facilities would encourage multimodal commuting, families need to feel that active transportation is a safe alternative. Wider walkways, protected bikeways, and enhanced lighting for pre- and post-school commuting would improve safety. BUSD recommended prioritizing challenges at Central Elementary School, Nicolet Middle School, Banning High School, and Hemmerling Elementary School, recommending a fully-separated two-way cycle 13 52299
track around Nicolet Middle School and south to Banning High School, and improvements on First Street near the busy Ramsey Street intersection.

Subsequentially, the BUSD attended the nine Stakeholder Advisory Group (SAG) meetings, along with students, and the final Plan meeting at the Banning Library on March 20, 2024.

The City received 250 responses to its 2023 Downtown Revitalization Complete Streets Plan public survey and 301 responses to its 2024 Active Transportation Plan survey. City residents provided the following reasons for using or not using active transportation:

I use active transportation because I am in a wheelchair.” Four-month Banning resident
It is too unsafe to ride a bike because we don’t have bike paths, etc.” Shelby’s Mom, Banning resident
If the City is awarded this quick build project, a similar approach will be taken to ensure the residents, students, community, and especially the Banning Unified School District (BUSD) will be heard. The BUSD is in full support of this project.

F. COST EFFECTIVENESS

9. What existing tools or templates will be integrated into the quick build project? Examples of existing tools and templates include the SCAG/ statewide Active Transportation Database, Safe Routes to School Evaluation Surveys and Worksheets, U.C. Berkeley SafeTREC Street Story, and templates from existing efforts relevant to the proposed project (Please refer to application resources page).

The UC Berkeley SafeTREC Street Story community engagement platform is a free resource that can be utilized very well for this project. Throughout this demonstration project, residents, children over 13, school staff, and others can use it to anonymously report on crashes, near misses, general hazards and safety concerns. This is critically important as data collected by the consultant may not catch all of these elements and this provides City Engineering staff a forum to see what the community sees and feels. The City will use it to gather qualitative information that will be used in addition to the quantitative data collected by the consultant.

The NATCO design standards, Urban Biking design chapter, were used in the 2024 ATP just completed with a SCAG SCP grant and for the preliminary engineering drawings included in the ATP that will be a basis for the final drawings used by the selected engineering design firm. Additionally the consultant can utilize the SRTS Guide for the evaluation phase, using their surveys and worksheets to save funds. Lastly, the SCAG Statewide Active Transportation Database does not include any information from Banning. If the City is successful in obtaining this grant, we can include this in the SCAG database.

G. COMMITMENTS, PARTNERSHIPS, AND LEVERAGING

10. Provde three letters of support from key stakeholders for your project, including but not limited to agencies, schools, non-profits and/ or community- based organizations.

PDF Four Letters of Suppor t.pdf
14 100 523

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Douglas Schulze, City Manager
PREPARED BY: Nate Smith, Deputy Director of Public Works/City Engineer Art Vela, Director of Public Works
MEETING DATE: June 25, 2024
SUBJECT: Consideration of Resolution 2024-111, Adopting the Banning Active Transportation Plan (ATP)
RECOMMENDATION:

Adopt Resolution 2024-111.

BACKGROUND:

In 2019, the City of Banning embarked on a project to add bike lanes throughout the City. However, a comprehensive ATP is needed to guide active transportation decisions affecting local streets and roads, sidewalks, ADA compliance, school routes and business corridors and improve transportation infrastructure for pedestrians and bicyclists.

Active Transportation Plan
On March 31, 2022, SCAG staff released a Request for Proposals ( RFP) No. 22-050 for the project through the electronic bidding system “ PlanetBids” and directly to SCAG’s Solicitation Management System website. In response to these efforts, forty-four (44) firms downloaded the RFP, and three (3) proposals were received. The RFP included: a detailed Consultant Scope of Services/Tasks, submittal requirements, and a description of the evaluation criteria and selection process for the RFP. The Proposal Review Committee (PRC) consisted of four staff members: two from SCAG, one from the City of Lynwood and one from the City of Banning’s Engineering Division of the Public Works Department.

The PRC evaluated each proposal in accordance with the criteria set forth in the RFP and conducted the selection process in a manner consistent with all applicable federal and state contracting regulations.

After evaluating the proposals, the PRC interviewed all three ( 3) offerors. The highest ranked consultant was KTUA and SGAC approved Contract No. 22-050-C01 in an amount not-to-exceed 448,056, with KTUA, to develop one comprehensive Active Transportation Plan (ATP) for the City of Banning among other projects administered by SCAG with this award. This project was entirely funded by SCAG.

JUSTIFICATION:

The purpose of this project is to create a comprehensive citywide Active Transportation Plan. While the planning effort was comprehensive and evaluated bike/pedestrian infrastructure citywide, there are specific focus areas of concern. These include school routes, crash and injury hot spots, and the eastern portion of town that lacks infrastructure to support walking and biking. The Consultant identified and created maps for proposed pedestrian and bicycle facilities and non-infrastructure programs based on community, stakeholder, and stakeholder advisory committee feedback. The planning process identified improvements for active transportation, safe routes to schools, and ADA compliance including sidewalks, roadway safety improvements (high visibility crosswalks, markings, speed cushions/tables) and Class I, 101 524
II, III and IV bicycle facilities/routes.

Through stakeholder workshops and evaluation of current conditions, the assessment phase of planning resulted in a better understanding of where critical barriers to mobility and infrastructure gaps exist. The draft Plan includes a practical implementation strategy with preliminary design schematics and concepts, and data that can be used in grant applications for fifteen ( 15) priority projects, including six (6) safe routes to schools projects. Additionally, existing conditions, public outreach and grant funding opportunities are summarized in the Plan. The Consultant coordinated with City staff to create an extensive and effective public participation approach engaging the community with proven approaches for finding consensus amongst stakeholders, which is essential to public policy development and longterm implementation of the Plan. All residents of Banning were encouraged to attend community meetings.

The purpose of this ATP is to provide the City of Banning with a comprehensive document outlining the existing inventory of bicycle and pedestrian infrastructure and travel habits of the community. An analysis of the City's current infrastructure highlights areas of opportunity to be prioritized for future improvements and recommendations are presented within this plan as fifteen (15) priority projects. This ATP will guide the development and implementation of active transportation infrastructure programs and policies for the City.

The consultant prepared a Community Engagement Plan in order to provide outreach activities that included participation from the public and from key stakeholders to ensure the Plan’s concepts reflect the community’s needs and wishes. The outreach activities engaged local and regional representatives to obtain feedback, provided presentations covering the project background, goals, scope, preliminary and draft concepts, and the final Plan, as the project progressed.

The purpose of project stakeholders’ meetings was to advise key stakeholders of the goals of the project, and keep them informed on the project progress, while also allowing the stakeholders to provide input on the Plan and concepts. Nine (9) project Stakeholder Advisory Group (SAG) meetings occurred with the final meeting held on April 29, 2024. Additional outreach activities, including three (3) community events, a project website, surveys, and social media posts are included. In total, the following activities have been completed:

October 27, 2022 Engagement Day
Community pop-ups at Banning High School, Nicolet Middle School, and Central Elementary School
Banning Civic Center Open House
April 15, 2023 Disaster Expo, presentation boards soliciting community feedback May 5, 2023 Market Night, Kit of Parts demonstration of five infrastructure elements November 7, 2023 ATP Plan Update and Public Outreach:

Sun Lakes HOA presentation
Banning Civic Center Open House
March 19, 2024 Community Workshop/Open House at Banning Public Library May 7, 2024 Sun Lakes HOA Presentation #2
Nine bimonthly Stakeholder Advisory Group (SAG) Meetings Public Surveys and Project Website
Presentation of the Draft ATP
May 1, 2024 Planning Commission Workshop
Meeting May 7, 2024 Second Sun Lakes HOA presentation
The Planning Commission presentation led to a discussion about Nicolet Middle School and the cycle track, regarding the merits of a one way versus a two way traffic cycle track. The Sun Lakes presentation led to a discussion regarding parking along Sun Lakes Boulevard. 102 525
The item was presented to City Council at a workshop session at 4:00 PM on June 11, 2025 where a summary of the project was provided, comments received during the presentations to other bodies, and questions from council were answered. The Final Draft is included as attachment to this agenda item and will be posted on the City's website under the Engineering section.

FISCAL IMPACT:

The consultant contract for the ATP project is being paid through a Caltrans ATP Cycle 5 grant that SCAG administers. There were no hard costs to the City of Banning for this project.

ALTERNATIVES:

1. Adopt Resolution 2024-111 as recommended.

2. Adopt Resolution 2024-111 with modifications.

3. Do not adopt Resolution 2024-111 and provide alternative direction to staff.

ATTACHMENTS:

1. Resolution 2024-111, ATP.docx

2. DRAFT_Banning_ATP_042524.pdf

3. DRAFT_Banning_ATP_Appendix_042324.pdf
103 526
City of Banning San Gorgonio Ave. Cycle Track Pilot Project EXHIBIT 1
Existing Condition
Alesandro Ave Looking South
Proposed Condition
Alesandro Ave Looking South
Proposed Project and Improvements
The City of Banning’ s first Active Transportation Plan (ATP) developed a state- of-the-art two-way cycle track to loop around one school and run alongside another neighboring school: Nicolet Middle School and Central Elementary School.

Students will be able to safely bike to and from school in a protected area designated for bicyclists with a physical separation from cars. This will narrow the existing vehicle travel lane, naturally slowing down traffic speeds which in turn, increases safety and comfort for people walking, bicycling, and even driving. Additional safety improvements include a one way couplet around the school to reduce traffic speeds, a designated school drop off and pick up lane, enhanced crosswalks, curb extensions and signage to improve safety for senior citizens, parents, young school children and residents. In addition to the two schools, there are numerous attractors in the immediate area including the Banning Library, Senior and Community Center, Repplier Park and Aquatic Center, City Hall, the Police Dept., Post Office, County Courthouse and neighborhood supermarket. These safety improvements will create more opportunities to walk, bike and use transit.

LEGEND

BUS STOP
TRACKCity Hall 2 WAY CYCLE

AQUATIC
CENTER
Police
Dept.
104 527
City of Banning San Gorgonio Ave. Cycle Track Pilot Project EXHIBIT 2
Separated Bikeways
Separated Bikeways, sometimes called cycle tracks, are on-street bi-cycle facilities with a physical separation between the bikeway and vehicle travel lanes usually with flexible posts and buffer zone.

Bicycle Facilities with Safety in mind
Shared Lane Markings (“ Sharrows”)
The shared lane marking is commonly used where parking is allowed adjacent to the travel lane. Many cities install sharrows over a green background to enhance visibility.

Edge Lane Roads
An edge lane roads, sometimes referred to as advisory bike lanes, is a preferred space for bicyclists and motorists to operate on narrow streets that would otherwise be a shared roadway. Roads with edge lane roads accommodate low to moderate volumes of two-way motor vehicle traffic and provide a safer space for bicyclists with little or no widening of the paved roadway surface. Due to their reduced cross section requirements, edge lane roads have the potential to open up more roadways to accommodate comfortable bicycle travel.

Collision Analysis ( See Collision Vicinity Map)
Collision analysis in this report is based on 2011 to
2021 bicycle collision data downloaded from the
University of Berkeley’ s Transportation Injury Mapping System (TIMS), which is supported by the City’ s Local
Road Safety Plan (LRSP). TIMS data is based on the
California Highway Patrol’ s (CHP) Statewide
Integrated Traffic Records Systems ( SWITRS).

High Injury Networks
HINs) are one of many strategies for local agencies to begin addressing traffic fatalities and serious injuries. HINs identify stretches of roadways where the highest concentrations of collisions resulting in fatal or serious injuries occur on the transportation network. An HIN is not an assessment of whether a street or location is dangerous; instead, an HIN suggests which corridors within a transportation network carry a higher risk of injury. (SCAG Transportation Safety) Proposed Route
Directional Markings ( Sample)
Shared Lane
Sample)
Collision Vicinity Map with
Hot Spots in Red
Ramsey Street
George Street
105 528
Notice of Exemption Appendix E
Revised 2011
To: Office of Planning and Research
P.O. Box 3044, Room 113
Sacramento, CA 95812- 3044
County Clerk
County of: __________________
From: (Public Agency): ____________________________
Address)
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County: _____________________ Description of Nature, Purpose and Beneficiaries of Project:

Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: ( check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: ____________________________________ Statutory Exemptions. State code number: ______________________________________________ Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date: ______________ Title: _______________________ Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR: _______________ Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. 106 529

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Lisa Rossi, Human Resources Director
Lisa Rossi, Human Resources Director
MEETING DATE: August 25, 2026
SUBJECT: Compliance with Assembly Bill 2561/Government Code Section 3502.3 regarding vacancies, recruitment and retention efforts
STAFF RECOMMENDATION:

Conduct a public hearing on workforce vacancies, recruitment, and retention efforts in accordance with Assembly Bill 2561
BACKGROUND:

This report is provided in compliance with California State Assembly Bill (AB) 2561, approved on September 22, 2024, which added §3502.3 to the Government Code. This law requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. The presentation must be made before the adoption of a final budget for the fiscal year.

Additional obligations may apply if the vacancy rate in a bargaining unit meets or exceeds 20%.

JUSTIFICATION:

This report is provided in accordance with Government Code §3502.3. As stated previously, if job vacancies within a single bargaining unit reach or exceed 20% of the authorized full-time positions, the City must, at the request of recognized employee organizations, present certain information at a public hearing, including: (1) the total number of vacancies within the bargaining unit; (2) the number of applicants; (3) the average number of days to fill positions; and (4) opportunities to improve compensation and working conditions for employees in the bargaining unit. (Gov. Code §3502.3(c).) Workforce Overview:

As of June 30, 2026, the City has 230 full-time equivalent (FTE) budgeted positions and 7 are elected or appointed officials. Of the remaining 223 FTE's 90% are represented by bargaining groups. The City's overall vacancy rate was 15%. Vacancy rates are calculated as follows: Vacancy Rate (%) = (Number of Vacant Positions in an employee group / Total Number of Authorized Positions) X 100. The following table summarizes the City's vacancy rate by employee group as of June 30, 2026.

Represented
Employee
Groups
FTE's
Budgeted
Vacancies
as of
June 30,
2026
Vacancy
Rate
530
IBEW General
Unit 78 13 17%
IBEW Utility Unit 51 2 3.9%
Banning Police
Officers
Association
(BPOA)
35 6 17%
Banning Police
Management
Association
(BPMA)
5 2 40%
Teamsters Local
1932
35 2 5.7%
Unrepresented
Employee
Groups
Executive
Contracts
7 1 14%
Confidential/Nonrep
12 2 17%
TOTAL: 223 27 12%
(Note- Seasonal
and Part-time
(nonrepresented
were not
included)
Vacancies within the City arise from a range of factors including retirement, internal promotions, resignations, and terminations.

Recruitment and Retention
The City of Banning employs a competitive, merit-based recruitment process that balances thoroughness with efficiency. This process involves strategic job postings across multiple channels, including the City's website, GovernmentJobs.com, LinkedIn, and free professional job boards such as those offered by the Municipal Management Association of Southern California (MMASC). For more targeted or hard-to-fill positions, Human Resources collaborates with department hiring managers to allocate funding for postings on specialized or additional job websites. The recruitment process involves several key steps:
• A two-tier application screening process to verify minimum qualifications and identify top candidates. • Structured panel interviews with subject matter experts, using standardized evaluation criteria. • Final interviews with hiring managers to assess departmental fit and compatibility with the City's work culture.
• Comprehensive background and reference checks before extending offers. • A 6 to 12-month probationary period for new hires.

Employees transition from at-will to regular status after completing probation and then receive appropriate due process protections.

The City recognizes that competitive compensation is a crucial tool for attracting and retaining highquality employees. Consistent with common municipal compensation practices, the City's approach to employee compensation is guided by principles including:
• Public Accountability
531
• Affordability
• Flexibility
• Legality
• Competitiveness
• Internal Relationships
• Ability to Pay
• Compensation Studies
However, these principles must currently be applied within the context of the City's declared fiscal emergency. The City's Ability to Pay and Affordability have been fundamentally constrained by the budgetary shortfall, requiring the City Council to consider the proposed workforce reduction as a necessary measure to restore fiscal sustainability. Difficult decisions regarding staffing levels are unavoidable given the severity of the City's financial position, and the City must prioritize its long-term solvency alongside its obligations to its workforce.

Even amid these constraints, the City continues to face challenges filling certain vacant positions, particularly specialized utility, engineering, and public safety classifications, due to competition from neighboring jurisdictions and utilities, a limited regional applicant pool, and the technical nature of several classifications. These recruitment and retention challenges are shared by public and private employers throughout the Inland Empire and are not unique to Banning; however, the current fiscal emergency has heightened their impact, as reduced staffing capacity places greater pressure on remaining employees to maintain core service levels. Staff recognizes that remaining as competitive as fiscally responsible is important with respect to compensation, working conditions, and workplace culture, and will continue to balance these considerations against the City's immediate need for financial stability.

The Human Resources Department will continue to monitor the City's fiscal recovery and evaluate opportunities to responsibly support and, where feasible, rebuild the City's workforce as conditions allow, while ensuring that any workforce actions taken are consistent with the requirements of AB 2561 and the City's obligations to its employees and the community it serves.

FISCAL IMPACT:

There is no fiscal impact associated with this update.

ATTACHMENTS:

1. column_affidavit_g4uiYdW8U80VtEUgSrRG.pdf
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See Proof on
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AFFIDAVIT OF PUBLICATION
[def:$signername|printname|req|signer1] [def:$signersig|sig|req|signer1] [def:$notarysig|sig|req|notary] [def:$date|date|req|notary] [def:$state|state|req|notary] [def:$county|county|req|notary] [def:$disclosure|disclosure|req|notary] [def:$seal|seal|req|notary] Record Gazette
218 N. Murray St., Banning, CA 92220
Proof of Publication
(2015.5 C.C.P.)
City of Banning NPH AB 2561
________________________________________________________________ State of New Jersey, County of Camden, ss:

I, Anjana Bhadoriya, of lawful age, being duly sworn upon oath depose and say that I am a citizen of the United States, I am over the age of eighteen years, and not party or interested in the above entitled matter. I am the Agent 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:

Publication Dates:

Aug 14, 2026
Notice ID: g4uiYdW8U80VtEUgSrRG
Notice Name: City of Banning NPH AB 2561
Publication Fee: $119.29
[$signersig]
______________________________ [$seal]
Agent

VERIFICATION
State of New Jersey
County of Camden
Signed or attested before me on this: [$date]
[$notarysig]
__________________________________________
Notary Public
[$disclosure]
City of Banning NPH AB 2561 | Page 1 of 2
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City of Banning NPH AB 2561 | Page 2 of 2
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Matthew Bassi, Interim Community Development Director MEETING DATE: August 25, 2026
SUBJECT: Urgency Ordinance No. 1625 - Establishing a Moratorium on Cannabis Cultivation Warehouses, Manufacturing and Testing
STAFF RECOMMENDATION:

Staff recommends the City Council adopt ORDINANCE NO. 1625 an Interim Urgency Ordinance of the City Council of the City of Banning, California, adopting and imposing a temporary moratorium on the submittal and approval of licenses, permits, approvals, or other entitlements for use, including any modification thereof for marijuana cultivation, marijuana cultivation activities, cultivation facilities, manufacturing facilities, testing laboratory facilities, distribution facilities or cannabis microbusiness BACKGROUND:

The City's current cannabis regulations for industrial properties (which include indoor cultivation, manufacturing, testing laboratory, distribution facility and micro business) was adopted by Council on July 10, 2018 via Ordinance No. 1523. The cannabis regulations for commercial properties (which only include cannabis storefront retailers) was adopted by Council a few months later on November 13, 2018 via Ordinance No. 1531. All cannabis uses require approval of a Conditional Use Permit by the Planning Commission and City Council as outlined in Chapter 17.12, Table 17.12.020 of the BMC. Each retail or industrial cannabis business is also required to obtain a State Cannabis License approved and issued by the State Licensing Authority before they can begin operations in the City. [Note: Cannabis retailers are not affected by the moratorium] There are currently three (3) cannabis retailers operating storefront businesses in the City. As Council knows, the Zoning Code limits the amount of retail cannabis businesses to one (1) business per 10,000 population. All three cannabis retailers are located on Ramsey Street in the commercial zoning district, and each has received approval of a Conditional Use Permit. In addition, there are four (4) cannabis cultivation businesses (i.e., "indoor grows") and one (1) industrial cannabis manufacturer located in the industrial zones. Each business has an active Conditional Use Permit approved by the City Council between December 2020 and September 2025, but only two (2) businesses are currently operating. Staff has prepared a summary memo outlining the business names and locations of each business (refer to Attach 4 for details).

The idea of establishing a city-wide moratorium on cannabis cultivation warehouses was brought forward by Councilmember Barrington at the December 9, 2025 meeting. Council member Barrington asked that a future agenda item be brought forward for Council discussion regarding a possible cannabis moratorium. At the City Council meeting of July 14, 2026, Staff prepared a briefing report for Council 535
consideration that outlined two (2) options Council could take in regards to a city-wide cannabis moratorium (refer to Attachment 2 for report packet). After discussing these options, Council unanimously voted to direct Staff to prepare an urgency ordinance for adoption establishing a city-wide moratorium on cannabis cultivation warehouses. Thus, this urgency ordinance covers manufacturing and testing, distribution and microbusinesses – but not retail cannabis operations.

JUSTIFICATION:

Analysis:

California Government Code section 65858 provides statutory authority for interim ordinances prohibiting uses that may conflict with a contemplated general plan, specific plan or zoning proposal that the city is studying or plans to study. An interim ordinance, commonly called a moratorium, imposes temporary land use controls based on a documented, current and immediate threat to public health, safety, and welfare. An interim ordinance protects and promotes the planning process by prohibiting the introduction of potentially nonconforming land uses that could defeat or impair a later adopted general plan or zoning ordinance. Procedurally, such an ordinance may be adopted initially without a public hearing following a 4/5 vote of the legislative body (staff's recommendation). The initial moratorium lasts for 45 days. After notice and a public hearing, the ordinance may be extended, again with a 4/5 vote, for an additional 10 months and 15 days. No more than two extensions may be adopted. The City Council cannot adopt or extend any interim ordinance unless the ordinance contains a finding that there is a current and immediate threat to the public health, safety or welfare, and that the approval of applicable land use entitlements would result in that threat to public health, safety or welfare. Ten (10) days prior to the expiration of such an ordinance or any extension, a written report is to be issued describing the measures taken to alleviate the condition that led to the adoption of the ordinance.

Urgency Ordinance No. 1625 (Attachment 1) requested by Council establishes the immediate 45-day moratorium on the submittal and approval of licenses, permits, or other entitlements for use, including any modification thereof for marijuana cultivation, marijuana cultivation activities, cultivation facilities, manufacturing facilities, testing laboratory facilities, distribution facilities or cannabis microbusinesses.

However, it does not prohibit applications for cannabis retail operations. The primary purpose of the moratorium is twofold: 1) it stops new cannabis CUP's from being submitted; and 2) it allows time for the City to decide how best to address the cannabis issue and move forward with a future code amendment to better regulate cannabis businesses in the City.

As it is unlikely that Staff can prepare a municipal code amendment in the next 45-days, state law allows the City Council the ability to extend the moratorium for additional 10 months and 15 days by adopting a 2nd ordinance within the first 45-days. It is Staff's intent to bring a 2nd Ordinance to Council for adoption at the September 22, 2026 Council meeting. Adoption of both ordinances will create a 1-year long moratorium for Staff to prepare a permanent code amendment to address the cannabis issues outlined in the urgency ordinance. The permanent code amendment will need Planning Commission review with a recommendation to the City Council.

The urgency ordinance is written to prohibit new cannabis licenses and conditional use permit applications for all cannabis business types while the moratorium is in effect together with the issuance of new building permits that would permit the build-out and development of an approved cannabis license and conditional use permit where no building permit had been previously issued. The urgency ordinance excludes retail cannabis businesses, the renewal or transfer of existing cannabis licenses, except where the transfer is to a new location without an approved conditional use permit or where the transfer proposes an amendment or modification to an approved conditional use permit, such as for an expansion or a change in use. It also excludes the issuance of building permits to existing cannabis businesses with an approved cannabis license and conditional use permit where the building permit does not involve the build-out or expansion of the use but rather pertains to the ordinary use and maintenance of the business.
536
CEQA Determination:

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) in that (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the adoption of this Ordinance will have a significant effect on the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; rather it prevents changes in the environment pending the completion of the contemplated Municipal Code review.

Summary:

The attached urgency ordinance provides what the Council directed Staff to bring forward, and as noted, adoption of Ordinance No. 1625 will go into effect immediately.

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Attach 1 - Urgency Ordinance 1625-Final.docx

2. Attach 2 - Cannabis Briefing CC Rept [7-14-26].pdf
537
1 ORDINANCE NO. 1625

AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF BANNING, CALIFORNIA, ADOPTING AND IMPOSING A

TEMPORARY MORATORIUM ON THE SUBMITTAL AND APPROVAL

OF LICENSES, PERMITS, APPROVALS, OR OTHER ENTITLEMENTS

FOR USE, INCLUDING ANY MODIFICATION THEREOF FOR

MARIJUANA CULTIVATION, MARIJUANA CULTIVATION ACTIVITIES,

CULTIVATION FACILITIES, MANUFACTURING FACILITIES, TESTING

LABORATORY FACILITIES, DISTRIBUTION FACILITIES OR

CANNABIS MICROBUSINESS
WHEREAS, the City of Banning works to encourage economic development by encouraging development that provides significant tax revenue to the City and that provides significant employment opportunities for City residents taking into consideration the health, safety and welfare of the public; and
WHEREAS, the City of Banning has attempted to balance various land uses taking into account the public health, safety and welfare to accomplish these goals; and WHEREAS, the City Council adopted the following ordinances: Ordinance No. 1523, July 10, 2018; Ordinance 1531, November 13, 2018; Ordinance 1539, January 1, 2019; Ordinance 1542, April 23, 2019; Ordinance 1565, July 14, 2020; Ordinance 1577, September 28, 2021 establishing a set of regulations allowing cannabis cultivation, manufacturing, retail sales, distribution and other operations within the City which are codified in Chapters 5.33 (Cannabis Retailer Regulatory Permits), 5.34 (Marijuana Cultivation), 5.35 (Cannabis Regulatory Permits), 17.53 (Cannabis Conditional Use Permits), 17.54, ("Cannabis Retailer Conditional Use Permits") (collectively “Cannabis Regulations”). The Cannabis Regulations were created to provide the public with a clear understanding of the process for obtaining City approval to operate a Commercial cannabis activity, Cannabis business, Cannabis microbusiness, Cannabis retail operations, as defined in the Cannabis Regulations, within the City; and WHEREAS, the Banning Municipal Code provides for the regulation and licensing of cannabis business throughout the City under the Cannabis Regulations in conformance with applicable state and local laws and; and
WHEREAS, the Cannabis Regulations are as authorized by section 26200 of the California Business and Professions Code, designed to minimize negative impacts on the City and neighboring uses, and to promote the health, safety, morals, and general welfare of residents and businesses within the City; and
538
2 WHEREAS, the City currently has four (4) cannabis cultivation businesses with four (4) licenses comprised of four (4) operating businesses; and WHEREAS, beginning in January 2025, the City began experiencing a high number of cannabis cultivation odor complaints. Between January 1, 2025, and July 30, 2026, the City received a total of 10 complaints regarding odor emanating from cannabis cultivation warehouses. The City has issued approximately 11 code enforcement citations during the same period. These complaints frequently cite the interference with the use and enjoyment of their property; and
WHEREAS, the above-mentioned complaints concerning cannabis odors were reported to the City with a large number of complaints occurring in the industrial zoning districts; and
WHEREAS, despite City staff's efforts to manage the complaints through additional inspections, and specific actions by cannabis businesses to mitigate odors, the City has seen an increase in the number of cannabis odor complaints; and WHEREAS, despite actions to mitigate odor including filters, the City has continued to receive cannabis odor complaints related to these businesses; and WHEREAS, the City is therefore concerned about the efficacy of the existing regulatory framework in preventing/minimizing cannabis odors emanating from the City's cannabis businesses and is concerned about the impact of such odors upon sensitive receptors (e.g., residential properties, schools, community centers, places of worship) and the effect thereof upon the public health, safety and welfare; and WHEREAS, collectively, the cumulative volume of complaints citing the interference with the use and enjoyment of property and the limited effect actions to date have had in mitigating these complaints necessitate a review of the City's cannabis regulations, with particular emphasis on zoning, odor control, and enforcement.; and WHEREAS, given the number of cannabis odor complaints, the City desires to review the Cannabis Regulations (including, without limitation, zoning designations, building construction standards, odor mitigation requirements, enforcement mechanisms, and other cannabis regulations) to ensure that odors from cannabis businesses are effectively mitigated and cannabis businesses located in the appropriate zones with appropriate buffers and distance requirements from certain uses (e.g., parks, day care centers, youth center, schools); and
539
3 WHEREAS, therefore, the City desires to study and analyze the Cannabis Regulations outlined in the Banning Municipal Code to ensure that they are up to date and effectively regulate industrial cannabis businesses in the City.

WHEREAS, the City views retail cannabis business as an important current and future source of revenue to the City that do not create significant odor for neighboring properties.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BANNING DOES HEREBY ORDAINS AS FOLLOWS:

SECTION 1. FINDINGS
The City Council finds and determines the following:
(a) The recitals set forth above are hereby adopted as findings of the City Council. (b) Based upon the findings set forth above and all oral and written testimony and reports presented by members of the public and City staff to the City, the continuous approval, establishment, and operation of cannabis businesses in the limited areas where they are permitted in the City poses an immediate threat to the public health, safety and welfare because it will potentially increase cannabis odors within the City such that it could create a public nuisance and negatively impact the City's residents, such as their quality of life, and, in particular, negatively impact the City's certain uses (e.g., parks, day care centers, youth center, schools). Therefore, the immediate threat of the impact of cannabis odors upon the City's residents and certain uses (e.g., parks, day care centers, youth center, schools) within the City justifies adoption of an interim urgency moratorium ordinance; and (c) In order to allow the City appropriate time to study the impacts of cannabis businesses and to adopt, if necessary, amendments to the Cannabis Regulations so as to ensure that the Cannabis Regulations are up to date and effectively regulate cannabis businesses, a temporary moratorium on the approval of new cannabis businesses must be enacted.

SECTION 2. MORATORIUM
Pursuant to the authority granted to the City Council by California Government Code Section 65858 to protect the health, safety and general welfare of the residents of the City of Banning, and based upon the findings set forth above and all oral and written testimony and reports presented by members of the public and City staff the City Council hereby enacts as an interim urgency measure a moratorium to take effect immediately upon the adoption of this Ordinance as follows:
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4 (a) Definitions. Except as otherwise provided herein, all terms used in this Ordinance shall have the same definitions as provided for in the Cannabis Regulations. (b) Moratorium. Beginning on the effective date of this Ordinance, no licenses, permits, approvals, or other entitlements for grading, building, improvements, and/or use including, but not limited to conditional use permits, shall be accepted for filing, approved or issued for a cannabis business under the Banning Municipal Code including but not limited to Chapter 5.34 (MARIJUANA CULTIVATION), 5.35 (CANNABIS REGULATORY PERMITS) or Chapter 17.53 (CANNABIS CONDITIONAL USE PERMITS).
(c) For purposes of this ordinance “Cannabis Business” shall mean a cultivation facility, a manufacturing facility, testing laboratory facility, distribution facility, or a cannabis microbusiness as those terms are defined in Banning Municipal Code Section

5.35.010 or Beaumont Municipal Code 17.54.010. In addition, no modification to any existing Conditional Use Permit, Regulatory Permit or Building Permit for any existing cannabis business shall be accepted for filing or approved, including, without limitation, to the following:
(i) Modifications that will result in an increase, intensification or expansion in the use or operations, or the square-footage utilized for a cannabis business ("Increase in Operations"). An increase in sales volume based on increased demand and not on an Increase in Operations is not considered to be an Increase in Operations.
(ii) Modifications to change the location of a cannabis business. (c) Exemptions. The following shall be exempt from the moratorium provided in this Ordinance:
(i) Any licenses, permits, approvals, or other entitlements including conditional use permits for the retail sale of cannabis products as defined in BMC

5.35.010 or 17.53.
(ii) Any modification to an existing Permit solely for the purposes of changing ownership of a cannabis business provided that such modification shall not result in an Increase in Operations or a change in location of the cannabis business.
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5 (iii) Any Permit or modification thereof that that does not result in the Increase in Operations of the cannabis business, such as expansions to administrative office space, minor tenant improvements, and repairs.
(iv) Any Permit modification that decreases the use or operations, or squarefootage utilized for cannabis business. (v) Any renewal of a permit for a cannabis business.

SECTION 3.REPORT
Pursuant to Government Code § 65858(d), ten (10) days prior to the expiration or any extension of this Ordinance, the City Council will issue a written report describing the measures taken to alleviate the conditions which led to the adoption of this Ordinance.

SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The City Council finds that this Ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the adoption of this Ordinance will have a significant effect on the environment) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; rather it prevents changes in the environment pending the completion of the contemplated Municipal Code review.

SECTION 5. SEVERABILITY
If any chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each chapter, sections, subsections, subdivisions, sentences, clauses, phrases, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 6. EFFECTIVE DATE; EXPIRATION; EXTENSION
Pursuant to Government Code § 65858(a), this Ordinance shall take effect immediately but shall be of no further force and effect forty-five (45) days from its date of adoption, unless the City Council, after notice and public hearing as provided under Government Code § 65858(a) and adoption of the findings required by Government Code § 65858(c), subsequently extends this Ordinance.
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6 SECTION 7. POSTING
The City Clerk shall cause this Ordinance to be posted in the manner as required by law.

NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of Banning, California, herby adopts this Urgency Ordinance.

PASSED, APPROVED AND ADOPTED on this 25th day of August, 2026.

Richard Royce, Mayor
City of Banning
ATTEST:

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

Phaedra Norton, City Attorney
Slovak, Baron, Empey, Murphy &
Pinkney, LLP
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7 CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that Ordinance No. 1625 was duly adopted at a regular meeting of the City Council of the City of Banning, held on the 25th day of August, 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Matthew Bassi, Interim Community Development Director Matthew Bassi, Interim Community Development Director
MEETING DATE: July 14, 2026
SUBJECT: Cannabis Warehouse Moratorium Discussion (Future Agenda Item):

STAFF RECOMMENDATION:

Staff recommends the City Council discuss and provide direction.

BACKGROUND:

At the City Council's December 9, 2025 meeting, Councilmember Barrington asked that a future agenda item be brought forward for discussion regarding a possible moratorium on cannabis warehouses. This report provides background information for City Council to consider and discuss and provide direction to Staff.

The City's current cannabis regulations for industrial properties (which include indoor cultivation, manufacturing, testing laboratory, distribution facility and micro business) was adopted by Council on July 10, 2018 via Ordinance No. 1523 (Chapter 17.53 BMC - refer to Attach 1). The cannabis regulations for commercial properties (which only include cannabis storefront retailers) was adopted by Council a few months later on November 13, 2018 via Ordinance No. 1531 (Chapter 17.54 BMC - refer to Attach 2). All cannabis uses require approval of a Conditional Use Permit by the Planning Commission and City Council as outlined in Chapter 17.12, Table 17.12.020 of the BMC (refer to Attach 3). Each retail or industrial cannabis business is also required to obtain a State Cannabis License approved and issued by the State Licensing Authority before they can begin operations in the City.

There are currently three (3) cannabis retailers operating storefront businesses in the City. As Council knows, the Zoning Code limits the amount of retail cannabis businesses to one (1) business per 10,000 population. With the city's population currently around 31,000 +/-, a 4th retail cannabis business would not be permitted until the population reached 40,000. All three cannabis retailers are located on Ramsey Street in the commercial zoning district and each has received approval of a Conditional Use Permit. In addition, there are three (3) cannabis industrial cultivation businesses (i.e., "indoor grows") and one (1) industrial cannabis manufacturer located in the industrial zones.

Each business has an active Conditional Use Permit approved by the City Council between December 2020 and September 2025, but only two (2) businesses are currently operating. Staff has prepared a summary memo outlining the business names and locations of each business (refer to Attach 4 for details).

JUSTIFICATION:

As City Council discusses cannabis, Staff has outlined below a couple of options to be considered in deciding how best to move forward.
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Option 1 - Adopt a Moratorium
Council could direct Staff to prepare a 45-day Urgency Ordinance adopting an immediate Moratorium prohibiting the submittal of a CUP for new cannabis businesses. This urgency ordinance could be brought to Council for action at the next Council meeting (scheduled for August 25th). This 45-day urgency ordinance could also be extended by Council within the 45 days providing an additional 10 months and 15 days to the moratorium (1-year total). During this 1-year moratorium, Council could additionally extend the moratorium for an additional 1-year period if desired (2 years total). The primary purpose of the moratorium is twofold: 1) it stops new cannabis CUP's from being submitted; and 2) it allows time for the City to decide how best to address the cannabis issue and move forward with a code amendment. Staff would need specific direction from Council regarding what the content of the code amendment would entail (i.e., prohibition or amending standards).

Option 2: - Adopt a Zoning Code Amendment (without the Moratorium):

Council could direct staff to move forward with a zoning code amendment in lieu of adopting a moratorium. This option would take several months to process as it will require Planning Commission review with a recommendation from the Commission before the Council could take action. Under this option, Staff would need specific direction from Council regarding what the content of the code amendment would entail (i.e., prohibition or amending standards).

Regardless of what option Council directs Staff to move forward with, a zoning code amendment would ultimately need to be prepared and brought forward for Planning Commission and City Council review and approval. The zoning code amendment would need to be prepared in coordination with the City Attorney's office before it could be scheduled for public hearings.

Recommendation:

Discuss and provide direction to staff.

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Attach 1 - Chapter 17.53 (Industrial Cannabis Regs).pdf

2. Attach 2 - Chapter 17.54 (Retail Cannabis Regs).pdf

3. Attach 3 - Chapter 17.12 Excerpt (Comm-Ind Use Table).pdf

4. Attach 4 - Existing Cannabis Users Memo [7-7-26].pdf 2 546
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Chapter 17.53 - CANNABIS CONDITIONAL USE PERMITS

17.53.010 - Definitions.

For the purpose of this Chapter, the following words and phrases shall be defined as follows:
"Applicant" means an owner applying for a cannabis conditional use permit pursuant to this Chapter.
"Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
"Cannabis business" means a cultivation facility, a cannabis manufacturing level 1 facility, testing laboratory facility, cannabis distribution facility, or cannabis microbusiness. "Cannabis distribution" means the procurement, sale and transport of cannabis goods between State licensed cannabis retailers, manufacturers, cultivators and testing laboratories. "Cannabis distribution facility" means a facility that transports cannabis goods between State licensed cannabis retailers, manufacturers, cultivators and testing laboratories. "Cannabis goods" means cannabis, including dried flower, and cannabis products. "Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) a cannabis retailer (as defined in Section 17.54.010), (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than 10,000 square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses.
"Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code.
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"Canopy space" means the designated areas at a cultivation facility that will contain mature plants at any point in time, as follows:

Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries;
Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary that includes, but is not limited to, interior walls, and shelves; and
If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation. "City" means the City of Banning.
"City Manager" means the City Manager or his/her designee. "Convicted" or "conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted.
"Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a State license issued by a licensing authority.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
"Cultivation facility" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs. "Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.
"Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time. "Indoors" means within a fully enclosed and secure structure. "Infusion" means a process by which cannabis, cannabinoids, or cannabis concentrates, are directly incorporated into a product formulation to produce a cannabis product. "Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other State cannabis licensing authority.
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"Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
"Manufacturing facility" means a location that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. "MAUCRSA" means the Medicinal and Adult-Use Cannabis Regulation and Safety Act. "Outdoors" means any area or location not specifically meeting the definition of indoors. "Owner" means any of the following:

A person with an aggregate ownership interest of 20 percent or more in the person applying for a permit or a permittee, unless the interest is solely a security, lien, or encumbrance.

The chief executive officer of a nonprofit or other entity.

A member of the board of directors of a nonprofit.

An individual who will be participating in the direction, control, or management of the person applying for a permit. An owner who is an individual participating in the direction, control, or management of the commercial cannabis business includes any of the following:

A partner of a cannabis business that is organized as a partnership.

A member of a limited liability company of a cannabis business that is organized as a limited liability company.

An officer or director of a cannabis business that is organized as a corporation. "Nonvolatile solvent" means any solvent used in the extraction process that is not a volatile solvent. For purposes of this Chapter only, nonvolatile solvents include carbon dioxide and ethanol.
"Package" means any container or receptacle used for holding cannabis or cannabis products. "Permit" means a cannabis conditional use permit issued pursuant to this Chapter. "Permittee" means any person holding a cannabis conditional use permit under this Chapter. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant where the cannabis business will be conducted.
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"Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory.
"Testing laboratory" means a laboratory, facility, or entity in the City that offers or performs tests of cannabis or cannabis products and that is both of the following:

Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State.

Licensed by the Bureau.
"Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 3, 4-23-19; Ord. No. 1565, § 12, 7-14-20; Ord. No. 1577, § 19, 9-28-21)

17.53.020 - Commercial cannabis conditional use permit required.

Except as expressly authorized pursuant to this Title (Title 17, Zoning), all commercial cannabis activity is prohibited in the City.

Prior to initiating operations and as a continuing requisite to operating a cannabis business, the person(s) wishing to operate a cannabis business shall:

Obtain and maintain a validly issued cannabis conditional use permit approved by the City Council after recommendation by the Planning Commission, and comply with all conditions of approval.

Obtain and maintain a State license to engage in the specific cannabis business being operated on the premises.

Obtain and maintain a cannabis regulatory permit as required by Chapter 5.35 of this Code.

Obtain and maintain a business license or any other license or permit required by this Code. (Ord. No. 1523, § 3G, 7-10-18)

17.53.030 - Commercial cannabis conditional use permit—Application fees and terms.

No cannabis conditional use permit application shall be processed unless the applicant pays the application fee deposit in the amount to be established by resolution of the City Council. No cannabis conditional use permit shall be issued unless the applicant pays the nonrefundable permit fee in the amounts to be established by resolution of the City Council. 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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7. No cannabis conditional use permit shall be issued if the applicant has an ownership or other direct financial interest in any other commercial cannabis business operating in the City. (Ord. No. 1523, § 3G, 7-10-18)

17.53.040 - Cannabis conditional use permit application requirements.

An applicant shall file the following information with the City at the time of application for a cannabis conditional use permit:

A completed cannabis conditional use permit application, together with the application fee in an amount to be established by resolution of the City Council.

Proof of a cannabis regulatory permit jointly approved by the City Manager and Chief of Police.

The owner identified on the cannabis conditional use permit application shall be same owner as listed on the cannabis regulatory permit issued pursuant to Chapter 5.35.

An operating plan for the proposed cannabis business that includes:

A general description of the types of products and/or services to be provided by the cannabis business;
A site plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, of the parcel of property on which the proposed cannabis business will be located.

The site plan shall include the outline of all structures, driveways, parking and landscape areas, and boundaries of the parcel.

A floor plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, designating all interior dimensions of the premises, the proposed use of all spaces, identification of limited access areas, areas of ingress and egress, and all security camera locations.

An evaluation of accessibility by the physically disabled to and within the building and identification of any planned accessibility improvements to comply with all state and federal disability access laws, including, but not limited to, Title 24 of the California Code of Regulations and the Americans with Disabilities Act. The evaluation must be professionally prepared by a licensed civil engineer or architect.

A business plan describing how the cannabis business will operate in accordance with the Banning Municipal Code, state law, and other applicable regulations. The business plan must include plans for cash handling and transportation of cannabis and cannabis products to and from the premises.

Water source information.
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Projected energy demand and energy efficiency plan that addresses illumination, heating, cooling, and ventilation. The applicant shall also provide a letter from the Banning Municipal Electric Company stating that the Banning Municipal Electric Company can meet the cannabis business' energy demand.

A list of all owners, employees, independent contractors, and volunteers.

Neighborhood Context Map. An accurate straight-line drawing depicting the boundaries of the premises, the boundaries of all other properties within 600 feet of the premises, and the uses of those properties, specifically including, but not limited to, any use identified in Business and Professions Code section 26054(b) and any park located within 600 feet of the premises. The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. The map must be professionally prepared by a licensed civil engineer or architect.

Security plan. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. The security plan must be prepared by a qualified professional.

Lighting Plan. A lighting plan showing existing and proposed exterior and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use.

The name, phone number, and email address of an on-site community relations representative or staff member or other representative to whom the City can provide notice if there are operating problems associated with the cannabis business or refer members of the public who may have complaints or concerns regarding the cannabis business. This information shall be available to neighboring businesses and residences located within one hundred feet of the cannabis business, as measured in a straight line without regard to intervening structures. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 4, 4-23-19)

17.53.050 - Additional application requirements.

Each cannabis business shall obtain a separate conditional use permit.

The applicant shall submit proof that the applicant is, or will be, entitled to possession of the premises for which application is made.

The applicant shall submit proof of the nature of the cannabis business's organizational status, such as articles of incorporation, by-laws, partnership agreements, and other documentation which may be required by the City.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.060 - Procedures and findings for approval of cannabis conditional use permit. 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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A cannabis conditional use permit shall be processed in accordance with the procedures set forth in Chapter 17.52, Conditional Use Permits, with the following exceptions:

Any provision that requires the approval by the Planning Commission with appeal to the City Council shall be replaced with the requirement that the Planning Commission make a recommendation on the cannabis conditional use permit and that the approval of such permit shall be made by the City Council.

Sections 17.52.020 (Application procedures) and 17.52.080 (Modifications) shall not apply.

Any procedures pertaining to noticing and the setting of a public hearing before the Planning Commission shall also apply to the City Council.

An applicant for a cannabis conditional use permit shall comply with the California Environmental Quality Act ("CEQA"). No cannabis conditional use permit shall be granted until the requisite CEQA review has been conducted.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.070 - Approval of cannabis conditional use permit with conditions.

Upon approval of a cannabis conditional use permit, the City Council may impose conditions in excess of the requirements set forth in this Chapter including, but not limited to, conditions relating to hours of operation, the operation of any cannabis business, restrictions relating to the deployment or use of the types of equipment used on the premises, and set back requirements.

The City may grant a cannabis conditional use permit prior to the applicant having obtained a state license from a licensing authority; however, no approved cannabis business may receive a certificate of occupancy nor operate in the City prior to possessing the requisite state and local licenses and permits.

All cannabis businesses must pay all applicable taxes pursuant to all federal, state, and local laws.

Cannabis businesses shall comply with all cannabis state laws and regulations. (Ord. No. 1523, § 3G, 7-10-18)

17.53.080 - Premises.

All cannabis businesses shall be conducted only in the interior of enclosed structures, facilities and buildings and all operations including the storage or cultivation of cannabis plants at any stage of growth shall not be visible from the exterior of any structure, facility, or building. There shall be no outdoor storage of any kind associated with the cannabis business.

No cannabis business shall be located within a 600-foot radius of any park, day care center, or youth center, or public or private school providing instruction in kindergarten or any of grades 1- 12, that is in existence at the time the cannabis conditional use permit is issued. The 600-foot 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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distance requirement does not include any private school in which education is primarily conducted in a private home or a family day care home. The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. Outdoor storage on the premises shall be prohibited.

Loading areas and loading docks shall be located on the side or rear of the lot, and shall be screened by solid, decorative walls.

Hours of operation shall be as approved with the Conditional Use Permit.

Cannabis businesses shall only be conducted on properties that are fully compliant with all Banning Municipal Code requirements, including required development standards such as parking, landscaping, etc.

Cannabis businesses located within the same building or on the same property shall each have a validly issued cannabis conditional use permit from the City.

All entrances into the premises shall be locked at all times with entry controlled by the permittee's managers and staff.

The main entrance shall be maintained clear of barriers, landscaping, and other obstructions.

Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed on the premises.

All commercial cannabis activity in any premises shall be separated from the main entrance and lobby, and cannabis and cannabis products shall be secured by a lock accessible only to managers and staff of the permittee.

A permittee shall not, without an approved amendment to the cannabis conditional use permit, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application. Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limitedaccess areas within the premises.

A permittee shall not sublet the premises.

Inspections. The City shall have the right to enter all cannabis businesses from time to time upon 24-hour's notice for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this Code, state law, and other applicable laws and regulations.

Any cannabis business licensed pursuant to this Chapter may be required to demonstrate, upon 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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demand by the City that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1542, § 5, 4-23-19)

17.53.090 - Personnel and visitors.

All agents, officers, or other persons acting for or employed by a cannabis business shall display a laminated or plastic-coated identification badge issued by the cannabis business at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the cannabis business's "doing business as" name and city business license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

Employees and Volunteers Age Requirement. A cannabis business shall not employ an individual less than twenty-one (21) years of age, nor may a cannabis business permit an individual less than twenty-one (21) years of age to volunteer at or be within the cannabis business.

Visitors. Cannabis businesses shall not be open to the general public. Any individual permitted to enter a limited access area who is not a person that has undergone a background check in accordance with Chapter 5.35 of this Code and is not listed on the premises' worker list shall be considered a visitor. Notwithstanding the foregoing, state and local employees, or their official designees, shall not be considered a visitor provided the individual is on the licensed premises for purposes of official government business.

Visitors Identification and Record Requirements. Prior to permitting a visitor into a limited access area, a cannabis business must check the individual's valid government issued identification. The visitor shall be required to sign the cannabis business's visitor log, which must include the individual's name, date of entry, and purpose for entry.

Visitors Must Be at Least Twenty-One (21) Years of Age. A cannabis business may not permit a visitor who is less than twenty-one (21) years of age to enter a limited access area.

Visitors Prohibited Conduct. A visitor shall not be permitted to engage in any commercial cannabis activity while on the premises.

A manager shall be on the site at all times that any other person, except a security guard, is on the site.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.100 - Security.

The premises of a cannabis business must comply with all of the following security requirements:
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Main Entrance and Lobby. The premises shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed in the cultivation areas.

Transport Area. The premises shall have an area designed for the secure transfer of cannabis from the cultivation, manufacturing, or testing laboratory area to a vehicle for transportation.

Commercial-Grade Locks. All points of ingress and egress to a premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

A permittee that is engaged in cultivation, manufacture, or distribution or is a cannabis microbusiness shall hire or contract for 24-hour security personnel to provide security services for the premises. All security personnel hired or contracted for by the cannabis business shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

Video Surveillance. The premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.

Each premises shall have a digital audio/video surveillance system with a minimum camera resolution of 1280 x 720 pixels.

The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet.

The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance and shall capture audio such that all sounds are intelligible.

Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection 5 below.

Areas that shall be recorded on the audio/video surveillance system include the following:

Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the premises; Limited-access areas;
Security rooms;
Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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Entrances and exits to the premises;
Waste containers.

Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).

The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering, fire, or theft.

Surveillance recordings shall be kept for a minimum of 90 days.

Surveillance recordings shall be monitored by a third party surveillance company.

Surveillance recordings are subject to inspection by the City, and shall be kept in a manner that allows the City to view and obtain copies of the recordings at the licensed premises upon not less than 24 hours advance notice. The permittee shall also send or otherwise provide copies of the recordings to the City upon reasonable notice by the City.

Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards.

The video surveillance system shall be equipped with a failure notification system that provides notification to the permittee of any interruption or failure of the video surveillance system or video surveillance-system storage device.

The video surveillance system shall be equipped with a battery backup system capable of sustaining system operations in the case of an energy failure.

Alarm System. The premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows.

The alarm system shall be installed, maintained, monitored, and responded to by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

Upon request, a permittee shall make available to the City all information related to the alarm system.

Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times. All areas where cannabis and/or cannabis products are kept shall be separated from the main entrance and lobby and secured by a lock accessible only to managers and staff.

Lighting. The business entrance(s) and all window areas of any cannabis business shall be illuminated during evening hours. The cannabis business shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, and shielding. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1577, § 20, 9-28-21) 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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17.53.110 - Track and trace.

All permittees shall comply with the track and trace system established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.120 - Signage.

The premises must comply with the following signage requirements.

A cannabis business shall conspicuously post signs a minimum of eight (8) inches wide by ten (10) inches high in size that can readily be seen by all persons at the entrance that state: "This site is not open to the public" and "Retail sales of any goods and services is prohibited." Business signage shall be limited to the name of the cannabis business only, shall be in compliance with the City's sign code, and shall contain no advertising of any companies, brands, products, goods, or services.

A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera." Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, "Limited Access Area—Authorized Personnel Only." A sign shall be posted stating "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Banning Municipal Code."
A cannabis microbusiness that engages in in person retail sale of cannabis and cannabis products is not required to comply with Subsection A above. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1577, § 21, 9-28-21)

17.53.130 - Cannabis waste management.

Cannabis waste disposal shall be conducted as follows:

Chemical, Dangerous and Hazardous Waste. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-medicinal cannabis waste. If necessary to protect the health and safety of individuals working on a licensed premises, a cannabis business may grind the stalk of a cannabis plant outside of its licensed premises provided all grinding activities occur within twenty feet of the licensed premises and cannot be seen from any public street.

Cannabis waste must be placed in either a trash enclosure or a trash receptacle for which either is locked with a commercial grade lock that is only accessible by the owner, manager, or employee of the cannabis business and any waste disposal company that provide waste disposal services for the cannabis business.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.140 - General sanitary requirements.

A cannabis business must ensure that its premises is maintained in a sanitary manner and activities on its premises are conducted in a sanitary manner.

All facilities of a cannabis business must have adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature.

All workers that engage in the preparation of edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.150 - Odor control.

A cannabis business must have a ventilation and filtration system installed that shall prevent cannabis plant odors from exiting the interior of the structure and shall comply with all related Building Code requirements.

The ventilation and filtration system must be approved by the Building Official and installed prior to the commencement of cannabis cultivation activities. (Ord. No. 1523, § 3G, 7-10-18)

17.53.160 - Cannabis indoor cultivation.
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Cannabis Commercial Indoor Cultivation shall occur only indoors and shall contain not less than 10,000 square feet of canopy space nor exceed 22,000 square feet of canopy space per cannabis conditional use permit holder.

Seed to Sale Tracking Required. Until such a time that the state of California fully implements the California Cannabis Track and Trace System required by Section 26067 of the Business and Professions Code, a cannabis business must utilize seed to sale software, third-party software that tracks all sales, transfers, purchases, receipts, deliveries of cannabis and cannabis products.

The software must be capable of producing electronic shipping manifests, tracking all cannabis inventory in possession of the cannabis business, promptly identifying a discrepancy in the stock, and tracking cannabis from the end purchaser back to its source in the event of a serious adverse event. Once implemented, all permittees shall comply with the California Cannabis Track and Trace System established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

Cultivators must comply with the Federal Worker Protection Standard (40 CFR 170).

The cultivation of cannabis must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

The cultivation of cannabis shall be conducted in a secure manner and shall not be visible from a public right of way. As used in this subsection, the term "visible" means capable of being seen without visual aid by an individual of normal acuity.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.170 - Cannabis manufacturing level 1.

Edible Cannabis Products. Edible cannabis products shall be manufactured, packaged and labeled in compliance with MAUCRSA and any implementing regulations adopted by the State.

Edible cannabis products must be individually packaged and ready for sale by the manufacturer prior to sale or transfer to another cannabis business.

Any person that is involved in the manufacture of edible cannabis products must be a state certified food handler. The valid certificate number of such person must be on record at the manufacturing facility where that individual produces edible cannabis products.

Any facility used by a cannabis business to manufacture edible cannabis products shall be constructed, operated and inspected in compliance with all applicable building code and food safety requirements.
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A cannabis business that manufactures edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food; which shall include, but not be limited to, hand-washing requirements, use of gloves for packaging, and policies prohibiting individuals suffering from symptoms associated with communicable diseases or infections from engaging the production of edible cannabis products.

Expiration Date. A cannabis business engaged in the manufacture of cannabis products, including an edible cannabis product, that is perishable shall assign an expiration date or use-by date, whichever is appropriate, to all perishable cannabis products. Once an expiration date or use-by date is assigned to cannabis products, it shall be unlawful for a person to alter that date or affix a new label with a later use-by or expiration date.

Extraction Requirements.

A manufacturer engaged in extraction may only engage in extraction using non-volatile solvents. The permittee shall not make any modifications to the method of extraction without first obtaining a modification of its permit.

Within the limitations set forth by state law, a cannabis business that extracts cannabis or produces cannabis concentrate using a solvent must use a professional grade, closed-loop extraction system capable of recovering the solvent used and must only use a solvent that is permissible under the MAUCRSA and any implementing regulations, and the manufacturer's state license.

Compliance with State Law. All packaging and labeling of cannabis and cannabis products by a cannabis business must, at a minimum meet the requirements set forth in the MAUCRSA and any implementing regulations, as the same may be amended from time to time or superseded or replaced by subsequent state legislation or by any state department or division.

Tamper-Evident, Child-Resistant Packaging Required. Cannabis and cannabis products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.

Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images.

State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c). Notwithstanding the foregoing, during the period of time that the state permits untested cannabis and cannabis products to be sold to purchasers, all cannabis and cannabis products must have a label affixed to each package that clearly states "This product has not been tested as required by the Medicinal and Adult Use Cannabis Regulation and Safety Act" and must comply with any other labeling requirements imposed by the state. (Ord. No. 1523, § 3G, 7-10-18)
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17.53.180 - Cannabis testing laboratory.

Accreditation. A testing laboratory shall obtain and maintain ISO/IEC 17025 accreditation.

Operating Procedures. A testing laboratory shall adopt and adhere to standard operating procedures to ensure the reporting of accurate test results, including but not limited to equipment, calibration, and methodology standards, that are consistent with its ISO/IEC 17025 accreditation.

A testing laboratory shall obtain samples of cannabis and cannabis products for testing in accordance with a statistically valid method designed to ensure that a sample is representative of the whole. Sampling methods should have at least a 95% confidence rate.

A testing laboratory shall destroy and safely dispose of the remains of any samples of cannabis or cannabis products tested upon completion of the analysis and the expiration of any retention time pursuant its standard operating procedures.

A testing laboratory shall maintain all testing results as a part of their respective business records.
(Ord. No. 1523, § 3G, 7-10-18)

17.53.190 - Cannabis distribution facility.

The transportation of cannabis or cannabis products shall only be conducted by persons holding a State license for cannabis distribution or employee of those persons.

Transportation safety standards, in addition to those imposed by the State of California, shall be approved by the Chief of Police including without limitations, the type of vehicles in which cannabis or cannabis product may be distributed, and minimum qualification for persons eligible to operate such vehicles.

A person holding a permit to operate a distribution facility shall observe and comply with all security manifest and notice requirements of Business and Professions Code Section 26070, as well as all State law requirements and Bureau regulations to operate a distribution facility. (Ord. No. 1565, § 14, 7-14-20)

17.53.200 - Cannabis microbusinesses.

A cannabis microbusiness shall comply with the following operational regulations as applicable:

Any cannabis cultivation shall occur only indoors and shall contain less than ten thousand square feet of canopy space.
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The cannabis microbusiness shall comply with the California Cannabis Track and Trace System established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.

A cannabis microbusiness that engages in cultivation must comply with the Federal Worker Protection Standard (40 CFR 170).

Any cannabis cultivation must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

Any cannabis cultivation shall be conducted in a secure manner and shall not be visible from a public right-of-way. As used in this subsection, the term "visible" means capable of being seen without visual aid by an individual of normal acuity.

A cannabis microbusiness that engages in the manufacture of cannabis products shall comply with Section 17.53.170.

A cannabis microbusiness that engages in the distribution of cannabis or cannabis products shall comply with Section 17.53.190.

A cannabis microbusiness that engages in the retail sale of cannabis must comply with Sections 17.54.090 and 17.54.170. In the event there is a conflict pertaining to any of the operational or development standards set forth in this Chapter and in the above-referenced Sections in this paragraph, the Community Development Director shall determine which standards apply. For example, if a cannabis microbusiness operates as both a retailer and cannabis cultivation facility and the standards pertaining to a retailer and cannabis cultivation facility conflict, the Community Development Director shall determine which standards apply.

A conditional use permit shall only be issued to a cannabis microbusiness if it includes conditions that require (1) an application for a building permit for any construction or tenant improvements for the proposed use to be submitted within forty-five days of approval of the cannabis conditional use permit, (2) that any physical construction in reliance on the building permit be commenced within sixty days after the issuance of the building permit, and (3) that the cannabis microbusiness commence its operations within one hundred eighty days of the issuance of a building permit. If the applicant fails to satisfy the requirements for the fortyfive-day, sixty-day, or one hundred eighty-day period, the cannabis conditional use permit shall automatically become null and void, unless the applicant files an application for an extension prior to the expiration of the applicable deadline and thereafter obtains that extension from the Community Development Director on the basis that the extension is warranted by special circumstances and that the applicant would be irreparably injured by the denial of an extension. In addition, if after commencement of construction, work is discontinued for a period of one hundred eighty days, the cannabis conditional use permit shall become null and void.
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17.53.210 - Other provisions.

Cannabis Consumption on Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a premises is prohibited. Premises as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas.

No person shall give, sell, distribute, or otherwise transfer any cannabis product in any manner not consistent with the approved cannabis conditional use permit or that violates local or state law.

Permittees must cooperate with City staff and Police Department personnel who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter.

Permittees must comply with all state laws and regulations that pertain to cannabis businesses including, but not limited to, the MAUCRSA, and any regulations promulgated by a licensing authority.
(Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1565, § 13, 7-14-20; Ord. No. 1577, § 2, 9-28-21) Editor's note— Ord. No. 1577, § 22, adopted July 14, 2020, renumbered § 17.53.200 to be 17.53.210 to provide for the addition of a new § 17.53.200

17.53.220 - Indemnification.

Indemnification. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any permit pursuant to this Chapter or the operation of any cannabis business approved by such permit pursuant to this Chapter. As a condition of approval of a permit granted under this Chapter, the applicant shall:

Indemnify and hold the City harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business as provided in this chapter.

Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to guidelines and policies set forth by the City.

Name the City as an additionally insured on all City required insurance policies.

Defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a permit or the operation of the cannabis business. 6/30/26, 2:14 PM Banning, CA Code of Ordinances
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Reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge (or federal enforcement action) related to the City's approval of a permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. (Ord. No. 1523, § 3G, 7-10-18; Ord. No. 1565, § 13, 7-14-20; Ord. No. 1577, § 22, 9-28-21) Editor's note— Ord. No. 1577, § 22, adopted July 14, 2020, renumbered § 17.53.210 to be 17.53.220 to provide for the addition of a new § 17.53.200.
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Chapter 17.54 - CANNABIS RETAILER CONDITIONAL USE PERMITS

17.54.010 - Definitions.

For the purpose of this Chapter, the following words and phrases shall be defined as follows:
"Applicant" means an owner applying for a cannabis retailer conditional use permit pursuant to this Chapter.
"Bureau" means the Bureau of Cannabis Control within the California Department of Consumer Affairs.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code.
"Cannabis business" means a cannabis retailer.
"Cannabis microbusiness" means a commercial cannabis business comprised of at least three out of the following four uses on the same premises: (1) cannabis retailer, (2) a manufacturing facility, (3) a cultivation facility with canopy space of less than ten thousand square feet, and (4) a cannabis distribution facility. To qualify as a cannabis microbusiness, the cannabis business must engage in a minimum of three out of the four above referenced uses. Any term use in this definition that is not defined herein shall have the same definition as set forth in Section 17.53.010.
"Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code.
"Cannabis retailer" means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers.
"City" means the City of Banning.
"City Manager" means the City Manager or his/her designee. 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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"Convicted" or "Conviction" means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to California law or a similar federal or state law where the expungement was granted. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, or engaging in any other cannabis activity that requires a State license issued by a licensing authority.
"Financial interest" shall have the meaning set forth in Section 5004 of Title 16 of the California Code of Regulations, as the same may be amended from time to time. "Licensing authority" means the Bureau of Cannabis Control; CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA); the California Department of Public Health's Manufactured Cannabis Safety Branch; or any other State cannabis licensing authority.
"MAUCRSA" means the Medicinal and Adult-Use Cannabis Regulation and Safety Act. "Owner" means any of the following:

A person with any ownership interest, unless the interest is solely a security, lien, or encumbrance.

The chief executive officer of a nonprofit or other entity.

A member of the board of directors of a nonprofit.

An individual who will be participating in the direction, control, or management of the person applying for a permit. An owner who is an individual participating in the direction, control, or management of the commercial cannabis business includes any of the following:

A partner of a cannabis business that is organized as a partnership.

A member of a limited liability company of a cannabis business that is organized as a limited liability company.

An officer or director of a cannabis business that is organized as a corporation. "Permit" means a cannabis retailer conditional use permit issued pursuant to this Chapter. "Permittee" means any person holding a cannabis conditional use permit under this Chapter. "Person" includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant where the cannabis business will be conducted.
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"Significant discrepancy" means a difference in actual inventory compared to records pertaining to inventory of at least one thousand dollars. For purposes of determining a discrepancy, the acquisition price of the cannabis goods shall be used to determine the value of cannabis goods in a permittee's inventory.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1577, § 24, 9-28-21)

17.54.020 - Cannabis retailer conditional use permit required.

Except as expressly authorized pursuant to this Title (Title 17, Zoning), all commercial cannabis activity is prohibited in the City. Notwithstanding the foregoing, the City shall not prohibit any commercial cannabis activity for which the City is preempted by State law from prohibiting.

Consistent with Section 5416 of Title 16 of the California Code of Regulations, or any successor section, cannabis retail deliveries are permitted from lawful and permitted retailers in the City and from retailers located outside the City that are lawfully operating and permitted by the county or city in which they are located.

Prior to initiating operations and as a continuing requisite to operating a cannabis business, the person(s) wishing to operate a cannabis business shall:

Obtain and maintain a validly issued cannabis conditional use permit approved by the City Council after recommendation by the Planning Commission, and comply with all conditions of approval.

Obtain and maintain a State license to engage in the specific cannabis business being operated on the premises.

Obtain and maintain a cannabis retailer regulatory permit as required by Chapter 5.33 of this Code.

Obtain and maintain a business license or any other license or permit required by this Code.

A cannabis microbusiness with a retail component is not subject to the requirements of this Chapter 17.54 and is instead regulated pursuant to Chapter 17.53. (Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565, § 15, 7-14-20; Ord. No. 1577, § 25, 9-28-21)

17.54.030 - Cannabis retailer conditional use permit—Application fees and terms.

No cannabis retailer conditional use permit application shall be processed unless the applicant pays the application fee deposit in the amount to be established by resolution of the City Council.

No cannabis retailer conditional use permit shall be issued unless the applicant pays the nonrefundable permit fee in the amounts to be established by resolution of the City Council. 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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Each cannabis retailer premises shall require a separate cannabis retailer conditional use permit. Two cannabis retailer premises in the City may not operate under one cannabis retailer conditional use permit.

No holder of a cannabis retailer conditional use permit for one premises shall have an ownership interest in any other cannabis retailer lawfully or unlawfully operating in the City. Accordingly, no cannabis retailer conditional use permit shall be issued for an applicant, business entity, or person that has an ownership interest in any other cannabis retailer in the City and no cannabis retailer conditional use permit shall be issued if the applicant, owner or person with a direct financial interest in the cannabis business also has an ownership or other direct financial interest in any other commercial cannabis retailer that is operating in the City or that has obtained a conditional use permit. (Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1539, § 3, 1-8-19)

17.54.040 - Cannabis retailer conditional use permit application requirements.

An applicant shall file the following information with the City at the time of application for a cannabis retailer conditional use permit:

A completed cannabis retailer conditional use permit application, together with the application fee in an amount to be established by resolution of the City Council.

Proof of a cannabis regulatory permit jointly approved by the City Manager and Chief of Police.

The owner(s) identified on the cannabis retailer conditional use permit application shall be same owner(s) as listed on the cannabis retailer regulatory permit issued pursuant to Chapter 5.33.

An operating plan for the proposed cannabis business that includes:

A general description of the types of products and/or services to be sold or provided by the cannabis business.

A site plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, of the parcel of property on which the proposed cannabis business will be located.

The site plan shall include the outline of all structures, driveways, parking and landscape areas, and boundaries of the parcel.

A floor plan, drawn to scale and professionally prepared by a licensed civil engineer or architect, designating all interior dimensions of the premises, the proposed use of all spaces, identification of limited access areas, areas of ingress and egress, and all security camera locations.

An evaluation of accessibility by the physically disabled to and within the building and identification of any planned accessibility improvements to comply with all state and federal disability access laws, including, but not limited to, Title 24 of the California Code of Regulations and the Americans with Disabilities Act. The evaluation must be professionally prepared by a licensed civil engineer or architect.
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A business plan describing how the cannabis business will operate in accordance with the Banning Municipal Code, state law, and other applicable regulations. The business plan must include plans for cash handling and transportation of cannabis and cannabis products to and from the premises.

A list of all owners, employees, independent contractors, and volunteers.

Neighborhood Context Map. An accurate straight-line drawing depicting the boundaries of the premises, the boundaries of all other properties within 600 feet of the premises, and the uses of those properties, specifically including, but not limited to, any use identified in Business and Professions Code section 26054(b), and any park. The map must also identify any residentially zoned parcel that is located within 200 feet of the premises. The map must be professionally prepared by a licensed civil engineer or architect.

Security Plan. A detailed security plan outlining the measures that will be taken to ensure the safety of persons and property on the premises. The security plan must be prepared by a qualified professional.

Lighting Plan. A lighting plan showing existing and proposed exterior and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use.

The name, phone number, and email address of an on-site community relations representative or staff member or other representative to whom the City can provide notice if there are operating problems associated with the cannabis business or refer members of the public who may have complaints or concerns regarding the cannabis business. This information shall be available to neighboring businesses and residences located within one hundred feet of the cannabis business, as measured in a straight line without regard to intervening structures. (Ord. No. 1531, § 3G, 11-13-18)

17.54.050 - Additional application requirements.

Each cannabis business shall obtain a separate conditional use permit.

The applicant shall submit proof that the applicant is, or will be, entitled to possession of the premises for which application is made.

The applicant shall submit proof of the nature of the cannabis business's organizational status, such as articles of incorporation, by-laws, partnership agreements, and other documentation which may be required by the City.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.060 - Procedures and findings for approval of cannabis retailer conditional use permit. 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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A cannabis retailer conditional use permit shall be processed in accordance with the procedures set forth in Chapter 17.52, Conditional Use Permits, with the following exceptions:

Any provision that requires the approval by the Planning Commission with appeal to the City Council shall be replaced with the requirement that the Planning Commission make a recommendation on the cannabis retailer conditional use permit and that the approval of such permit shall be made by the City Council.

Sections 17.52.020 (Application Procedures), 17.52.070 (Expiration), and 17.52.080 (Modifications) shall not apply.

Any procedures pertaining to noticing and the setting of a public hearing before the Planning Commission shall also apply to the City Council.

An applicant for a cannabis retailer conditional use permit shall comply with the California Environmental Quality Act ("CEQA"). No cannabis retailer conditional use permit shall be granted until the requisite CEQA review has been conducted.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565, § 16, 7-14-20)

17.54.070 - Approval of cannabis retailer conditional use permit with conditions.

Upon approval of a cannabis conditional use permit, the City Council may impose conditions in excess of the requirements set forth in this Chapter including, but not limited to, conditions relating to hours of operation, the operation of any cannabis business, restrictions relating to the deployment or use of the types of equipment used on the premises, and set back requirements.

The City may grant a cannabis conditional use permit prior to the applicant having obtained a state license from a licensing authority; however, no approved cannabis business may receive a certificate of occupancy nor operate in the City prior to possessing the requisite state and local licenses and permits.

All cannabis businesses must pay all applicable taxes pursuant to all federal, state, and local laws.

Cannabis businesses shall comply with all cannabis state laws and regulations. (Ord. No. 1531, § 3G, 11-13-18)

17.54.080 - Separation requirements and other limitations.

Only one cannabis retailer for every 10,000 residents may lawfully operate in the City, with any fraction of that ratio being rounded down to the nearest whole number.

No cannabis business shall be located within a 200-foot radius of any residential zoning district.

No cannabis business shall be located within a 600-foot radius of any day care center, youth center, public or private school providing instruction in kindergarten or any of grades 1—12, or park. The 600-foot distance requirement does not include any private school in which education 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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is primarily conducted in a private home or a family day care home. The distances specified in this subsection shall be the horizontal distance measured in a straight line without regard to intervening structures, from the property line of the lot on which the cannabis business is located to the nearest property line of those uses described in this subsection. (Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1539, § 4, 1-8-19)

17.54.090 - Premises.

The building where the commercial cannabis activity occurs must be a minimum of 800 square feet in size.

All cannabis businesses shall be conducted only in the interior of enclosed structures, facilities and buildings and all operations including the storage or cultivation of cannabis plants at any stage of growth shall not be visible from the exterior of any structure, facility, or building. There shall be no outdoor storage of any kind associated with the cannabis business.

Loading areas and loading docks shall be located on the side or rear of the lot, and shall be screened by solid, decorative walls.

Hours of operation shall be as approved with the Conditional Use Permit.

Cannabis businesses shall only be conducted on properties that are fully compliant with all Banning Municipal Code requirements, including required development standards such as parking, landscaping, etc.

All entrances into the premises shall be locked at all times with entry controlled by the permittee's managers and staff.

The main entrance shall be maintained clear of barriers, landscaping, and other obstructions.

Inside of the main entrance, there shall be a lobby to receive persons into the site and to verify whether they are allowed on the premises.

All commercial cannabis activity in any premises shall be separated from the main entrance and lobby, and cannabis and cannabis products shall be secured by a lock accessible only to managers and staff of the permittee.

A permittee shall not, without an approved amendment to the cannabis retailer conditional use permit, make a physical change, alteration, or modification of the premises that alters the premises or the use of the premises from the premises diagram filed with the permit application.

Material or substantial changes, alterations or modifications requiring approval include, but are not limited to, the removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway or passage alters or changes limited-access areas within the premises.

A permittee shall not sublet the premises.
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3. Inspections. The City shall have the right to enter all cannabis businesses from time to time upon 24-hour's notice for the purpose of making reasonable inspections to observe and enforce compliance with this Chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this Code, state law, and other applicable laws and regulations.

Any cannabis business licensed pursuant to this Chapter may be required to demonstrate, upon demand by the City that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.100 - Personnel and visitors.

All agents, officers, or other persons acting for or employed by a cannabis business shall display a laminated or plastic-coated identification badge issued by the cannabis business at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the cannabis business's "Doing business as" name and city business license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height.

Employees and Volunteers Age Requirement. A cannabis business shall not employ an individual less than twenty-one (21) years of age, nor may a cannabis business permit an individual less than twenty-one (21) years of age to volunteer at the cannabis business.

Visitors. Limited access areas of a cannabis business shall not be open to the general public. Any individual permitted to enter a limited access area who is not a person that has undergone a background check in accordance with Chapter 5.33 of this Code and is not listed on the premises' worker list shall be considered a visitor. Notwithstanding the foregoing, state and local employees, or their official designees, shall not be considered a visitor provided the individual is on the licensed premises for purposes of official government business.

Visitors Identification and Record Requirements. Prior to permitting a visitor into a limited access area, a cannabis business must check the individual's valid government issued identification. The visitor shall be required to sign the cannabis business's visitor log, which must include the individual's name, date of entry, and purpose for entry.

Visitors Must Be at Least Twenty-One (21) Years of Age. A cannabis business may not permit a visitor who is less than twenty-one (21) years of age to enter a limited access area.

Visitors Prohibited Conduct. A visitor shall not be permitted to engage in any commercial cannabis activity while on the premises.
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A manager shall be on the site at all times that any other person, except a security guard, is on the site.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.110 - Security.

The premises of a cannabis business must comply with all of the following security requirements:

Main Entrance and Lobby. The premises shall have a building with a main entrance that is clearly visible from the public street or sidewalk. The main entrance shall be maintained clear of barriers, landscaping, and other obstructions. The premises shall have an area designed for the secure receipt of cannabis and cannabis goods from a licensed distributor.

Commercial-Grade Locks. All points of ingress and egress to a premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

A permittee shall hire or contract for 24-hour security personnel to provide security services for the premises. All security personnel hired or contracted for by the cannabis business shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

Video Surveillance. The premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection.

Each premises shall have a digital audio/video surveillance system with a minimum camera resolution of 1280 x 720 pixels.

The surveillance-system storage device or the cameras shall be transmission control protocol (TCP) capable of being accessed through the internet.

The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance and shall capture audio such that all sounds are intelligible.

Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection 5 below.

Areas that shall be recorded on the audio/video surveillance system include the following:

Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the premises; Limited-access areas;
Security rooms;
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Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; Entrances and exits to the premises;
Waste containers.

Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second (FPS).

The physical media or storage device on which surveillance recordings are stored shall be secured in a manner to protect the recording from tampering, fire, or theft.

Surveillance recordings shall be kept for a minimum of 90 days.

Surveillance recordings shall be monitored by a third party surveillance company.

Surveillance recordings are subject to inspection by the City, and shall be kept in a manner that allows the City to view and obtain copies of the recordings at the licensed premises upon not less than 24 hours advance notice. The permittee shall also send or otherwise provide copies of the recordings to the City upon reasonable notice by the City.

Recorded images shall clearly and accurately display the time and date. Time is to be measured in accordance with the United States National Institute Standards and Technology standards.

The video surveillance system shall be equipped with a failure notification system that provides notification to the permittee of any interruption or failure of the video surveillance system or video surveillance-system storage device.

The video surveillance system shall be equipped with a battery backup system capable of sustaining system operations in the case of an energy failure.

Alarm System. The premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows.

The alarm system shall be installed, maintained, monitored, and responded to by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

Upon request, a permittee shall make available to the City all information related to the alarm system.

Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times.

Lighting. The business entrance(s) and all window areas of any cannabis business shall be illuminated during evening hours. The cannabis business shall comply with the City's lighting standards regarding fixture type, wattage, illumination levels, and shielding. (Ord. No. 1531, § 3G, 11-13-18)
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17.54.120 - Track and trace.

All permittees shall comply with the track and trace system established by the State of California and as further described in Sections 5048 through 5052, inclusive, of Title 16 of the California Code of Regulations, as the same may be amended from time to time.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.130 - Signage.

The premises must comply with the following signage requirements:

Business signage shall be limited to the name of the cannabis business only, shall be in compliance with the City's sign code, and shall contain no advertising of any companies, brands, products, goods, or services.

A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve (12) inches wide and twelve (12) inches long, composed of letters not less than one inch in height, stating "All Activities Monitored by Video Camera." Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, "Limited Access Area—Authorized Personnel Only." A sign shall be posted stating "Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises, in their vicinity, or in any public place is prohibited and a violation of the Banning Municipal Code." (Ord. No. 1531, § 3G, 11-13-18)

17.54.140 - Cannabis waste management.

Cannabis waste disposal shall be conducted as follows:

Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-medicinal cannabis waste.

Cannabis waste must be placed in either a trash enclosure or a trash receptacle for which either is locked with a commercial grade lock that is only accessible by the owner, manager, or employee of the cannabis business and any waste disposal company that provide waste disposal services for the cannabis business.

The permittee shall comply with Chapter 13.20, Industrial Wastewater Collection and Treatment of the Banning Municipal Code.
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(Ord. No. 1531, § 3G, 11-13-18)

17.54.150 - General sanitary requirements.

A cannabis business must ensure that its premises is maintained in a sanitary manner and activities on its premises are conducted in a sanitary manner.

All facilities of a cannabis business must have adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature. (Ord. No. 1531, § 3G, 11-13-18)

17.54.160 - Odor control.

A cannabis business must have a ventilation and filtration system installed that shall prevent cannabis odors from exiting the interior of the structure and shall comply with all related Building Code requirements.

The ventilation and filtration system must be approved by the Building Official and installed prior to the commencement of business activities on the premises.
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565, § 18, 7-14-20)

17.54.170 - Operating regulations.

Limited Hours of Operation. A cannabis retailer may only be open to the public and engage in sales between the hours of 8:00 (eight) a.m. and 10:00 (ten) p.m.

Product Not Visible To Public. The display of cannabis and cannabis products for sale shall not be visible from outside the licensed premises.

Age Restricted Entry. A cannabis retailer may not permit an individual less than twenty-one years of age into the licensed premises, except a cannabis retailer with an M-license (allowing for the sale of medicinal cannabis and cannabis products) from the state may permit an individual aged eighteen years or older into the licensed premises if the cannabis retailer verifies the individual is a qualified patient with a physician's recommendation or a primary caregiver, as those terms are defined under State law.

Cannabis Paraphernalia Sales. Cannabis retailers may sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products. 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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Electronic Point-of-Sale System Required. Cannabis retailers must have an electronic point of sale system that is either part of their seed to sale software or integrates with their seed to sale software. The electronic point of sale system must be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

No Sales of Expired Product. Cannabis retailers may not sell any expired products, cannabis or cannabis products. Cannabis retailers shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

Handling of Edible Cannabis Products. Cannabis retailers that possesses edible cannabis products shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

Sale of Untested Products. All cannabis and cannabis products sold by a cannabis retailer must be tested by a State licensed testing laboratory prior to sale to a purchaser in accordance with the MAUCRSA.

Consumption of Cannabis and Cannabis Products on Premises. Cannabis and cannabis products shall not be smoked, vaporized, ingested or otherwise consumed on the licensed premises of a cannabis retailer. Premises as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas.

Tamper-Evident, Child-Resistant Packaging Required. A cannabis retailer shall not deliver or sell cannabis products that are not packaged or labeled in a resealable, tamper-evident, childresistant package. The cannabis and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.

Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images.

State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c).
(Ord. No. 1531, § 3G, 11-13-18; Ord. No. 1565, § 19, 20, 7-14-20)

17.54.180 - Other provisions.

No person shall give, sell, distribute, or otherwise transfer any cannabis product in any manner not consistent with the approved cannabis conditional use permit or that violates local or state law.

Permittees must cooperate with City staff and Police Department personnel who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter.
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5. Permittees must comply with all state laws and regulations that pertain to cannabis businesses including, but not limited to, the MAUCRSA, and any regulations promulgated by a licensing authority.

Minimum square footage of the building shall be 800 square feet unless otherwise provided by the State.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.190 - Indemnification.

Indemnification. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any permit pursuant to this Chapter or the operation of any cannabis business approved by such permit pursuant to this Chapter. As a condition of approval of a permit granted under this Chapter, the applicant shall:

Indemnify and hold the City harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business as provided in this chapter.

Maintain insurance in the amounts and of the types that are acceptable to the City pursuant to guidelines and policies set forth by the City.

Name the City as an additionally insured on all City required insurance policies.

Defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a permit or the operation of the cannabis business.

Reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge (or federal enforcement action) related to the City's approval of a permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.
(Ord. No. 1531, § 3G, 11-13-18)

17.54.200 - Expiration.

Notwithstanding any other provision of this Code, a retailer conditional use permit shall only be issued if it includes conditions that require (1) an application for a building permit for any construction or tenant improvements for the proposed use to be submitted within forty-five days of approval of the retailer conditional use permit, (2) that any physical construction in reliance on the building permit be commenced within sixty days after the issuance of the building permit, and (3) that the retailer commence its operations within one hundred eighty days of the issuance of a building permit. If the applicant fails to satisfy the requirements for the forty-five-day, sixty-day, or one hundred eighty-day period, the retailer conditional use 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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permit shall automatically become null and void, unless the applicant files an application for an extension prior to the expiration of the applicable deadline and thereafter obtains that extension from the Community Development Director on the basis that the extension is warranted by special circumstances and that the applicant would be irreparably injured by the denial of an extension. In addition, if after commencement of construction, work is discontinued for a period of one hundred eighty days, the Conditional Use Permit shall become null and void.
(Ord. No. 1565, § 17, 7-14-20; Ord. No. 1577, § 26, 9-28-21) 6/30/26, 2:17 PM Banning, CA Code of Ordinances
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Zone DC GC HSC PO I AI BP IMR
Single-family dwellings, new P X X X X X X X
Accessory Dwelling Unit P X X X X X X X
Other Uses
Commercial or
telecommunications antennae

X C C C C C C C
Public utility facilities X P P P P P P P
Emergency shelters X X X X X P X X
Cannabis Commercial Indoor
Cultivation

X X X X C X C X
Cannabis Personal Cultivation X X X X X X X X
Cannabis Manufacturing Level 1 X X X X C X X X
Cannabis Retailer X X C X X X X X
Cannabis Testing Laboratory X X X X C X X X
Cannabis Distribution Facility X X X X C X X X
Cannabis Microbusiness X X X X C X C X
Other Cannabis Uses X X X X X X X X
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7 9
8 9
10 11
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1  Surface mining permit required. See Chapter 17.100.
2  Mobile phones, televisions, video, audio systems, and digital cameras. 3  Refer to Section 17.12.050(B) for conditional use permit requirements. 4  A government office shall include administrative functions as well as those activities that will involve onsite customer patronage. A government office that is only administrative in nature, involving no customer patronage, can be considered a professional office.
5  When undertaken in conjunction with on-site retail as a primary use. 6  Existing mixed residential/commercial uses that are legal and nonconforming with respect to Conditional Use Permits may be reoccupied.
7  Cannabis Personal Cultivation is prohibited except in a house, an apartment unit, a mobile home, or other similar dwelling that is a legal non-conforming use and that otherwise complies with Chapter 5.34 of this Code.
8  Cannabis Retailers shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.54. 9  Cannabis Commercial Indoor Cultivation, Cannabis Manufacturing Level 1, and Cannabis Testing Laboratory uses shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53. 10  A Cannabis Distribution Facility shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53.
11  A Cannabis Microbusiness shall require approval of a Cannabis Conditional Use Permit by the City Council, after recommendation by the Planning Commission, and shall be subject to the requirements of Chapter 17.53.
12  New Single-Family Residential Dwellings shall be prohibited on (East/West) Ramsey Street and (North/ South) San Gorgonio Avenue.
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City of Banning
Community Development Department

MEMORANDUM
DATE: July 7, 2026
TO: Matthew Bassi, Interim Community Development Director FROM: Mark Staples, Planning Manager
RE: Existing Cannabis Businesses in Banning
The following is a summary of the existing cannabis retail businesses in Banning:

CANNABIS RETAILERS

1. 1034 W. Ramsey St. – Harvest Corner (CUP 20-8001): City Council approval on June 23, 2020 (Currently Operating and has an Active Business License)

2. 1474 W. Ramsey St. – Black Sun Medicinals (CUP 19-8010): City Council approval on January 14, 2020 (Currently Operating and has an Active Business License)

3. 2372 W Ramsey St. – Nourish Earth Inc. (CUP 19-8006): City Council approval on January 14, 2020 (Currently Operating and has an Active Business License) The following is a summary of the existing industrial cannabis cultivators and manufacturers:

CANNABIS CULTIVATORS (Indoor Grow Businesses)

1. 820 S Hathaway St – Green Grow Farms (CUP 20-8010): City Council Approval on December 8, 2020 (Currently Operating and has an Active Business License)

2. 313 S. Galleher St. #101/102, SJ Agrigrow (CUP 21-8012): City Council Approval on Sept. 28, 2021 (Under Construction and Not Yet Operating)

3. 301 S. Galleher St – Flower Dept, LLC (CUP 24-0107): City Council Approval on Sept. 23, 2025 (Under Construction and Not Yet Operating)

CANNABIS MANUFACTURER

1. 195 E Lincoln St. – Tres Jotas Properties, LP (CUP 22-8003): City Council Approved Sept. 27, 2022 (Currently Operating and has an Active Business License) Note: This is a Type 6 non-volatile solvent manufacturing or mechanical extraction (i.e. do not produce flammable gas or vapor, ethanol, carbon dioxide, etc. OR utilizes mechanical extraction with pressure, heat, or cold to extract)
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Art Vela, Director of Public Works
MEETING DATE: August 25, 2026
SUBJECT: Consideration of Resolution 2026-110, Approving the Purchase of a New IBM Server to Support the Central Square-Naviline ERP Upgrade, Authorizing the Required Installation Services, and Approving a Citywide Naviline Business Process Review and System Re-Implementation STAFF RECOMMENDATION:

Adopt Resolution 2026-110
BACKGROUND:

The City currently operates the CentralSquare Naviline Enterprise Resource Planning (ERP) software system in an on premises environment. The existing IBM hardware platform has reached the end of its support lifecycle and is no longer compatible with the operating system and software versions required to deploy the latest Naviline release. To maintain vendor support, ensure software compatibility, and preserve operational stability, an upgrade of the underlying server hardware is required.

The current Navaline ERP modules utilized by the City include:

Customer Information System (i.e. Utility Billing)
Fixed Assets
Payroll/Personnel
Purchasing/Inventory
Land/Parcel Management
GMBA (Government Management and Budgetary Accounting)
Cash Receipts
Work Order Interface
As part of a broader long term IT infrastructure evaluation, staff reviewed both the continuation of the on premises environment (Option 1) and the option to migrate to the Naviline Cloud platform (Option 2). The evaluation considered system requirements, operational impacts, financial constraints, and the City’s long term strategic objective to maintain uninterrupted ERP operations while continuing to evaluate future system modernization opportunities.

Option 1 – Continue On Premises Operation (Recommended) This option involves purchasing a new IBM server that meets the current operating system requirements for the latest Naviline software release. Key benefits include:

Ensuring compliance with Naviline vendor support requirements 584
Maintaining full compatibility with current and future software updates Preserving system performance and existing department workflows Maintaining the City’s direct control over data, infrastructure, and security Providing the most cost effective approach under current financial conditions This option ensures the City continues operating a fully supported ERP system using existing staff expertise and current operational practices.

Option 2 – Transition to CentralSquare’s Naviline Cloud Platform Staff evaluated the cloud hosted Naviline option, which provides advantages such as reduced local hardware maintenance, enhanced uptime, and improved disaster recovery.

The cloud solution is approximately $80,000 more annually than the City's current on premises cost structure. However, this difference narrows during years when new IBM replacement hardware is required (every 6-8 years), as those years include larger one-time capital expenditures for on premises infrastructure.

Despite this narrowing, the recurring annual cost increase remains significant and is not feasible within the City’s current financial constraints. For this reason, cloud migration is not recommended at this time.

The cloud option is an alternative that could be considered in the future once the hardware is at the end of its useful life and the City's financial position improves.

Business Process Review and System Re Implementation (Recommended Regardless of Option) The Naviline system has been in use for more than 20 years. Over this period, the City has experienced substantial organizational changes, staff turnover, and retirements, resulting in a loss of institutional knowledge. Many departments no longer fully utilize available Naviline functionality, and some workflows reflect outdated or incomplete system usage.

Staff recommends treating the Naviline upgrade as a functional system re-implementation, including a comprehensive business process review. This effort would:

Modernize workflows across all departments
Align City processes with current system capabilities and industry best practices Rebuild institutional knowledge through targeted training Improve consistency and system usage across departments Identify opportunities to streamline operations and reduce manual work Maximize the City's return on its ERP investment
This re-implementation approach applies to either deployment model (on premises or cloud) and is essential to ensuring long term ERP success.

OMNIA Partners – Hardware Installation
The City is utilizing the sole-source procurement provisions permitted under its Purchasing Policy to retain Solutions II for installation and integration services. Solutions II is an authorized installer and integrator for the specific hardware purchased through the OMNIA Partners cooperative agreement.

OMNIA contracts are competitively solicited at the national level and provide pre-vetted vendors, verified qualifications, and competitively established pricing. Although other information technology service providers exist, they lack the manufacturer certifications and OMNIA contract authorization required to install and integrate the City’s purchased hardware.

Cooperative purchasing agreements like OMNIA Partners are commonly used by the City and are recognized as an acceptable procurement method for public agencies because they streamline acquisition, reduce administrative overhead, and ensure compliance through competitively awarded contracts. Utilizing this agreement allows the City to obtain specialized hardware installation services 585
from a contractor already determined to be qualified through a rigorous competitive process, eliminating the need for a separate bid solicitation.

JUSTIFICATION:

The City’s NaviLine ERP system supports key financial, utility billing, payroll and purchasing functions.

The current IBM server is at end of life and cannot support required system upgrades. Replacing it is necessary to maintain vendor support, ensure compatibility, and avoid service disruptions.

Staff also evaluated a move to CentralSquare’s cloud platform, but it would increase annual costs by approximately $80,000. Given current budget constraints, replacing the server and remaining onpremises is the most cost-effective option while maintaining performance. Cloud migration may be reconsidered in the future.

A Business Process Review and system re-implementation are also needed due to outdated workflows and loss of institutional knowledge over time. This effort will improve consistency, reduce manual processes, enhance training, and better use existing system capabilities.

Together, these actions provide a cost-effective approach to maintain ERP operations, improve efficiency, and preserve future modernization options.

Lastly, staff’s recommendation to approve Resolution 2026-110, is consistent with the City’s Strategic Plan, Strategic Initiative 4b. “Two Phase Evaluation of the City’s Utility Billing Function”. This strategic initiative describes the first phase as including upgrading the existing utility billing software by bringing Navaline to the most current version.

FISCAL IMPACT:

The cost to purchase of the new IBM server hardware is $55,321.39.

The installation costs to install the new hardware is $8,200.

The Business Process Review and System Re-Implementation, a service to be provided by Central Square, will cost $69,840.

The total cost of the project is $133,361.39.

The required funding will be a part of the Information Systems Services (Fund 703) Fiscal Year 2026/2027 budget.

ATTACHMENTS:

1. Reso 2026-110.docx

2. CentralSquare BPR Proposal

3. Omnia Partners POWER10 Hardware Proposal.pdf

4. Solutions II Installation/Migration Services Proposal.pdf

5. Sole Source Vendor Form Solutions II.pdf
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Resolution 2026-110