Banning City Council
September 22, 2026

Attachment 1:

Proposed FY 2026-27 Authorized Position List
201
1910 Contracts Specialist 1.00
- (1.00)
19101 Buyer 1.00 1.00 0.00
19101 Buyer 1.00 1.00 0.00
19101 Purchasing Manager 1.00 1.00 0.00 3 Purchasing 4.00 3.00 (1.00) 2060 Multimedia Specialist 1.00- (1.00)
0 TV Government 1.00- (1.00)
2200 Police Cadet 0.50- (0.50)
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
22001 Police Officer 1.00 1.00 0.00
2200 Police Officer 1.00- (1.00)
2200 Police Officer 1.00- (1.00)
2200 Police Officer 1.00- (1.00)
2200 Police Officer 1.00- (1.00)
22001 Police Corporal 1.00 1.00 0.00
22001 Police Corporal 1.00 1.00 0.00
22001 Police Corporal 1.00 1.00 0.00
2200 Police Corporal 1.00- (1.00)
22001 Police Sergeant 1.00 1.00 0.00
22001 Police Sergeant 1.00 1.00 0.00
22001 Police Sergeant 1.00 1.00 0.00
22001 Police Sergeant 1.00 1.00 0.00
22001 Police Sergeant 1.00 1.00 0.00
2200 Police Sergeant 1.00- (1.00)
22001 Police Lieutenant 1.00 1.00 0.00
2200 Police Lieutenant 1.00
- (1.00)
2200 Police Lieutenant 1.00- (1.00)
2200 Police Lieutenant 1.00- (1.00)
2200 Police Captain 1.00- (1.00)

202
2200 1 Police Chief 1.00 1.00 0.00
2200 Records Technician 1.00 - (1.00)
2200 1 Records Technician 1.00 1.00 0.00
2200 1 Records Technician 1.00 1.00 0.00
2200 Records Technician II 1.00 - (1.00)
2200 1 Evidence Technician 1.00 1.00 0.00
2200 1 Community Services Officer* (not funded) 1.00 1.00 0.00 2200 Supports Services Manager/Executive Assistant 1.00 - (1.00) 35 Police 48.50 35.00 (13.50)
2210 1 Dispatcher 1.00 1.00 0.00
2210 1 Dispatcher 1.00 1.00 0.00
2210 1 Dispatcher 1.00 1.00 0.00
2210 Dispatcher 1.00 - (1.00)
2210 Dispatcher 1.00 - (1.00)
2210 1 Dispatcher II 1.00 1.00 0.00
2210 1 Dispatcher II 1.00 1.00 0.00
2210 1 Dispatcher II 1.00 1.00 0.00
2210 Dispatcher Supervisor 1.00 - (1.00)
6 Dispatch 9.00 6.00 (3.00)
2300 Animal Control Officer 1.00 - (1.00)
2300 1 Animal Control Officer 1.00 1.00 0.00
1 Animal Control 2.00 1.00 (1.00)
2700 Office Specialist 1.00 - (1.00)
2700 1 Building Permit Specialist 1.00 1.00 0.00
2700 Building Permit Specialist 1.00 - (1.00)
2700 Building Inspector 1.00 - (1.00)
2700 Senior Building Inspector 1.00 - (1.00)
2700 1 Building Official 1.00 1.00 0.00
2 Building & Safety 6.00 2.00 (4.00)
2740 1 Community Development Operations Manager 1.00 1.00 0.00 2740 Code Compliance Officer 1.00 - (1.00)
1 Code Enforcement 2.00 1.00 (1.00)
2800 Assistant Planner 1.00 - (1.00)
2800 1 Senior Planner 1.00 1.00 0.00
2800 1 Planning Manager 1.00 1.00 0.00
2800 Community Development Director 1.00 - (1.00)
2 Planning 4.00 2.00 (2.00)
3000 1 Engineering Services Assistant 1.00 1.00 0.00
3000 1 Public Works Inspector 1.00 1.00 0.00
3000 Associate Engineer 0.75 - (0.75)
3000 1 Associate Civil Engineer 1.00 1.00 0.00
3000 Senior Civil Engineer 1.00 (1.00)
3000 Deputy Public Works Director/City Engineer 1.00 - (1.00) 3000 1 Development Services Director - 1.00 1.00

203
4 Engineering 5.75 4.00 (1.75)
3100 1 Customer Service Representative 1.00 1.00 0.00
3100 1 Customer Service Representative 1.00 1.00 0.00
3100 1 Customer Service Representative 1.00 1.00 0.00
3100 1 Customer Service Representative 1.00 1.00 0.00
3100 1 Customer Service Representative 1.00 1.00 0.00
3100 1 Senior Billing Representative 1.00 1.00 0.00
3100 1 Senior Billing Representative 1.00 1.00 0.00
3100 1 Senior Billing Representative 1.00 1.00 0.00
3100 1 Customer Service Supervisor 1.00 1.00 0.00
3100 Customer Service & Billing Manager 1.00 - (1.00)
9 Utility Billing & Account 10.00 9.00 (1.00)
3110 1 Field Service Representative 1.00 1.00 0.00
3110 1 Field Service Representative 1.00 1.00 0.00
3110 1 Field Service Representative 1.00 1.00 0.00
3110 1 Lead Field Service Representative 1.00 1.00 0.00 4 Meter Readers 4.00 4.00 0.00
3200 1 Building Maintenance Specialist 1.00 1.00 0.00
3200 1 Senior Building Maintenance Specialist 1.00 1.00 0.00 2 Building Maintenance 2.00 2.00 0.00
3700 1 Multimedia Specialist - 1.00 1.00
3700 1 IT Analyst I 1.00 1.00 0.00
3700 1 IT Analyst I 1.00 1.00 0.00
3700 1 IT Analyst II 1.00 1.00 0.00
3700 1 IT Manager 1.00 1.00 0.00
5 Computer Services 4.00 5.00 1.00
3800 1 Executive Secretary 1.00 1.00 0.00
3800 1 Fleet Mechanic II 1.00 1.00 0.00
3800 1 Fleet Mechanic II 1.00 1.00 0.00
3800 Fleet Mechanic II 1.00 - (1.00)
3800 1 Fleet Manager 1.00 1.00 0.00
4 Fleet 5.00 4.00 (1.00)
3600 1 Maintenance Worker I 1.00 1.00 0.00
3600 1 Maintenance Worker I 1.00 1.00 0.00
3600 Senior Maintenance Worker 1.00 - (1.00)
3600 Parks Supervisor 1.00 - (1.00)
2 Parks 4.00 2.00 (2.00)
4000 0.5 Recreation Leader 0.50 0.50 0.00
4000 0.5 Recreation Leader 0.50 0.50 0.00
4000 0.5 Recreation Leader 0.50 0.50 0.00
4000 0.5 Recreation Leader 0.50 0.50 0.00
4000 Recreation Leader 0.50 - (0.50)
4000 Recreation Leader 0.50 - (0.50)

204
4000 Recreation Leader 0.50
- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Recreation Leader 0.50- (0.50)
4000 Senior Recreation Leader 0.50- (0.50)
4000 Seasonal Recreation Leader 0.50- (0.50)
4000 0.5 Office Specialist 1.00 0.50 (0.50)
40001 Program Coordinator 1.00 1.00 0.00
40001 Program Coordinator 1.00 1.00 0.00
4000 0.5 Sports Coordinator 0.50 0.50 0.00
4000 Recreation Manager 1.00- (1.00)
4000 Maintenance Worker I 1.00- (1.00)
4000 Parks and Recreation Director 1.00- (1.00)
4000 0.5 Community Services Director- 0.50 0.50

5.5 Recreation 15.00 5.50 (9.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50
- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Lifeguard 0.50- (0.50)
4010 Pool Manager 0.50- (0.50)
4010 Pool Manager 0.50- (0.50)
4010 Pool Manager 0.50- (0.50)
4010 Assistant Pool Manager 0.50- (0.50)
4010 Cashier - Pool 0.50- (0.50)
4010 Cashier - Pool 0.50- (0.50)
4010 Cashier - Pool 0.50- (0.50)
4010 Cashier - Pool 0.50- (0.50)
0 Aquatics 13.00- (13.00)
49001 Maintenance Worker II 1.00 1.00 0.00
49001 Maintenance Worker III 1.00 1.00 0.00

205
4900 1 Senior Maintenance Worker 1.00 1.00 0.00
4900 Work Release Crew Leader 1.00 - (1.00)
4900 1 Public Works Supervisor 1.00 1.00 0.00
4900 1 Public Works Manager 1.00 1.00 0.00
5 Streets 6.00 5.00 (1.00)
5100 0.75 Airport Attendant 0.75 0.75 0.00

0.75 Airport Fund 0.75 0.75 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 1 Bus Driver 1.00 1.00 0.00
5800 0.5 Bus Driver 0.50 0.50 0.00
5800 0.5 Bus Driver 0.50 0.50 0.00
5800 1 Field Supervisor 1.00 1.00 0.00
5800 1 Management Analyst - 1.00 1.00
5800 1 Transit Manager 1.00 1.00 0.00
5800 0.5 Office Specialist - 0.50 0.50
5800 0.5 Community Services Director - 0.50 0.50
14 Transit Fund 12.00 14.00 2.00
6300 1 Water Service Worker I 1.00 1.00 0.00
6300 1 Water Service Worker I 1.00 1.00 0.00
6300 1 Water Service Worker I 1.00 1.00 0.00
6300 1 Water Service Worker I 1.00 1.00 0.00
6300 1 Water Service Worker III 1.00 1.00 0.00
6300 1 Water Service Worker III 1.00 1.00 0.00
6300 1 Water Service Worker III 1.00 1.00 0.00
6300 1 Backflow Locator Specialist 1.00 1.00 0.00
6300 1 Water Production Operator II 1.00 1.00 0.00
6300 1 Warehouse Services Specialist 1.00 1.00 0.00
6300 1 Valve Crew Leader 1.00 1.00 0.00
6300 1 Assistant Water Superintendent 1.00 1.00 0.00
6300 1 Water/Wastewater Superintendent 1.00 1.00 0.00
6300 1 Associate Civil Engineer 1.00 1.00 0.00
6300 1 Service Crew Leader 1.00 1.00 0.00
6300 1 Production Supervisor 1.00 1.00 0.00
6300 1 Construction Crew Leader 1.00 1.00 0.00
6300 1 Meter Crew Leader 1.00 1.00 0.00
6300 1 Office Specialist 1.00 1.00 0.00
6300 Management Analyst 1.00 - (1.00)
6300 1 Water CIP Manager 1.00 1.00 0.00
6300 1 Public Works Program Manager 1.00 1.00
6300 1 Deputy Water/Wastewater Director 1.00 1.00 0.00
6300 Public Works Director 1.00 - (1.00)

206
6300 1 Assistant City Manager 1.00 1.00
23 Water Fund 23.00 23.00 0.00
7000 Public Benefits Analyst 1.00 - (1.00)
7000 1 Utility Services Assistant 1.00 1.00 0.00
7000 1 Utility Services Assistant 1.00 1.00 0.00
7000 1 Meter Tech 1.00 1.00 0.00
7000 1 Meter Tech 1.00 1.00 0.00
7000 1 GIS Tech 1.00 1.00 0.00
7000 1 Warehouse Specialist 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Powerline Tech 1.00 1.00 0.00
7000 1 Service Planner 1.00 1.00 0.00
7000 1 Service Planner 1.00 1.00 0.00
7000 1 Service Planner 1.00 1.00 0.00
7000 1 Powerline Tech Supervisor 1.00 1.00 0.00
7000 1 Powerline Tech Supervisor 1.00 1.00 0.00
7000 1 Powerline Tech Supervisor 1.00 1.00 0.00
7000 1 Powerline Tech Supervisor 1.00 1.00 0.00
7000 1 Powerline Superintendent 1.00 1.00 0.00
7000 1 Service Planning Supervisor 1.00 1.00 0.00
7000 1 Electric Operations Manager 1.00 1.00 0.00
7000 1 CORE Manager 1.00 1.00 0.00
7000 1 Engineering Supervisor 1.00 1.00 0.00
7000 1 Business Support Manager 1.00 1.00 0.00
7000 1 Associate Engineer 1.00 1.00 0.00
7000 1 Deputy Utility Director 1.00 1.00 0.00
29 Electric Fund 30.00 29.00 (1.00)
7010 1 Power Resource and Revenue Manager 1.00 1.00 0.00 1 Generation & Transmission 1.00 1.00 0.00
8000 1 WW Collections Tech III 1.00 1.00 0.00
8000 1 WW Collections Tech III 1.00 1.00 0.00
8000 1 WW Collections Supervisor 1.00 1.00 0.00
3 Wastewater Fund 3.00 3.00 0.00
9600 Public Works Program Manager 1.00 - (1.00)
9600 1 Environmental Program Coordinator 1.00 1.00 0.00 1 Refuse 2.00 1.00 (1.00)
184.25 CITY WIDE TOTAL 252.00 184.25 (67.75)

207
Fiscal Policies
208

CITY of BANNING
Budgetary and Fiscal Policies
I. PURPOSE
To satisfy our fiduciary responsibilities of being Transparent and Accountable in our use of public resources and to ensure Fiscal Sustainability in supporting our continued delivery of reliable services to our residents and visitors to our City.

II. METHODS FOR COMPLIANCE
City Council Periodic Review
The City Council shall conduct an annual review of this policy document to evaluate its effectiveness, consider any necessary refinements and formally adopt it. As part of this review the City Manager and Finance Director will present an overview of the City’s compliance with this Policy and commit to continual compliance.

Budget Development & Operational Policies
Budget Message

1. The City Manager is ultimately responsible for ensuring that a Budget Document is presented to the City Council and the public in a manner that is clear, understandable, and comprehensive to all stakeholders, including City staff, City Council, and residents.

The City Manager’s Budget Message will highlight key assumptions of the proposed budget, any explicit or implicit policy decisions, and, if the budget is adopted by the City Council, the short and long-term implications to the City’s current fiscal position and long-term fiscal sustainability.

The City Manager’s Budget Message should include an affirmation that the Proposed Budget conforms with the entirety of these Budgetary and Fiscal Policies. If any exceptions to this policy are proposed, they should be clearly identified, evaluated alongside alternatives, and accompanied by proposed plan to reach full conformance.

Structurally Balanced Budget

2. The City Manager is to propose a “structurally balanced” budget (i.e., ongoing expenditures are funded by ongoing revenues) for the General Fund and all other Funds.

To the extent the City Manager requests a deviation from this requirement, it should be clearly highlighted and discussed in the Budget Message. Preferably, any such deviations from policy should be identified and addressed prior to the Budget being presented to the City Council for adoption. The discussion shall outline, the reasons for the exception(s), the short and long-term implications, and how/when the City will return to compliance with this policy.
209

Budget Controls

3. The City will maintain a budgetary control system to ensure compliance with the adopted budget. The City will prepare quarterly status reports comparing actual revenues and expenditures to budgeted amounts. Where practical, the City will develop performance measures to be included in the operating budget.

Mid-Year Budget Review

4. The City will provide a detailed mid-year review that compares the Adopted Budget to actual revenue/expenditure activity. The review will clearly communicate the City’s level of conformance with the original Adopted Budget and expected year end fiscal position.

This mid-year review will also include presentation of the Audited Annual Comprehensive Financial Report (ACFR) from the previous fiscal year with a layperson’s assessment of key findings within the ACFR. At a minimum, this assessment should include material fund balance deviations between budgeted vs. audited actual balances as well as any relevant audit findings identified in the Management Letter, the Single Audit Report, the ACFR auditor’s opinion letter or other applicable source.

Budget Planning Workshop

5. The City will conduct an annual City Council workshop with the purpose of reflecting on the City’s current and expected long-term fiscal position for the General Fund, Utilities, and other Funds; current service levels and perceived needs of the community; and the parameters for the City Manager’s upcoming Proposed Budget. A 5 or 10-year fiscal forecast should be completed and discussed at this workshop.

Other Budget Goals

6. The City will strive to provide adequate maintenance of facilities, plant, and equipment and for the orderly replacement. If this is not occurring, this fact should be communicated with the City Council.

7. The City will project its equipment replacement and maintenance needs for the next several years and will update these projections annually. For this projection, a maintenance and replacement schedule will be developed and followed.

8. During the budget process, the City will reassess services and service levels. Staff may seek citizen input by surveys, public forums, and similar methods to accomplish this evaluation.

Equity of Cost Burden for Services and Infrastructure
• Services--services that are generally available to all should be funded with general taxes while services that disproportionably benefit residents or incur a new cost burden should be funded by fees (e.g., CFDs--Mello Roos, user fees, etc).
• Infrastructure--costs should be generally borne with dedicated funding by those receiving the benefit or causing the additional cost burden e.g., growth related additional capacity.
210

Capital Improvement Policies

1. The City will maintain a rolling 5-year capital improvement plan presented annually with the adoption of each annual budget.

2. New Development/Growth-Pays-For-Growth--The City should ensure that new development pays its proportionate share of public infrastructure, utility capacity expansion, and municipal service costs.

3. Capital improvements are to be funded primarily by user fees, service charges, development impact fees, assessments, special taxes, Community Facilities Districts (CFDs--Mello Roos) or developer agreements as appropriate.

4. The City will require that project costs and related funding be submitted with requested capital projects. “Full life” costs including operating, maintenance and demolition, if any, should be identified.

5. Although the City will strive to finance projects on a pay-as-you-go basis, the City Manager may recommend, and the Council may conclude that issuance of debt is the preferred alternative. This will be based on a study of the economy and other matters discussed below. The City will use the following criteria to evaluate the use of long-term financing vs. pay-as-you-go funding for capital projects:

Factors favoring pay-as-you-go.
• current revenues and excess reserves are available now and into the foreseeable future, or project phasing can be accomplished.
• debt levels adversely affect credit rating or there is unacceptable risk to the budget. • market conditions are unstable, or marketing difficulties exist for the debt.

Factors favoring long-term financing.
• the most equitable way of financing a project that benefits the entire community would be debt financing (pay-as-you-use) to provide the services in a timely manner. • revenues available for debt service are determined to be sufficient and reliable to provide funding for long-term financing which can be marketed with investment grade credit ratings. The assumption for the future revenue projections should include a conservative fiscal forecast (e.g., impacts of recessionary cycles, etc.). • the facility and underlying fiscal security for the financing is of the type that will support an investment grade credit rating.
• market conditions present favorable interest rates and demand for City financing. • a project is mandated by state and/or federal requirements and current revenues or fund balances are insufficient to “pay-as-you-go”.
• the facility is immediately required to meet or relieve capacity needs. • the life of the asset financed is equal to or longer than the life of the debt service. • the proposed long-term financing must conform with the Debt Management Policies below.
211

Revenue Policies

1. The City will strive to maintain a diversified revenue system to protect it from short-run fluctuations in any one revenue source.

2. State and Federal funds may be pursued and utilized, but only when the City can be assured that the total costs and requirements of accepting funds are known and judged not to adversely impact the City’s General Fund and other Funds.

3. The City, where allowed by law, will review all fees for licenses, permits, fines, and other miscellaneous charges on a 3–5-year rotating basis. They will be adjusted as necessary after considering inflation, cash flow needs, direct and indirect costs to provide the services, the need to meet Fund Balance policies, and any other factors pertinent to the specific item. A regular review and implementation of index escalators will be applied wherever authorized by resolution or ordinance.

4. Enterprise Fund Cost Recovery--The City shall establish and maintain utility rates at levels sufficient to recover the full cost of service in a fair, transparent and financially sustainable manner, while maintaining compliance with all applicable financing obligations.

At a minimum, the utility rates shall be sufficient to:
• Recover the full cost of operations, maintenance, administration, and regulatory compliance.
• Fund capital repair, replacement, and system improvements. • Maintain adequate operating, emergency, and rate reserves. • Pay all required debt service, lease payments, and other financing obligation of the enterprise.
• Preserve all required debt service, lease payments, and other financing obligations of the enterprise.
• Preserve the financial integrity and creditworthiness of enterprise funds. • Allocate costs equitably among customer classes based upon cost-ofservice principles.

5. Enterprise Fund Annual Rate Reviews--During the annual budget process, there should be an assessment of whether revenue generation is adequate to cover the costs mentioned in #4 above.

6. Enterprise Fund Comprehensive Review of Rates--Every 3-5 years, unless the outcome of #5 above suggests more immediate actions is needed, a comprehensive review of rates vs. cost of service should be completed and reported to the City Council. The City may consider inflation-based escalators or other multi-year phased adjustments if it is justified.

7. Enterprise Fund New Development Cost Recovery--see Capital Improvement Policies mentioned above.
212

8. An administrative fee will be charged where allowed by law for administrative services, provided the fee is based on the reasonable estimated costs incurred and is not duplicative of other cost recoveries e.g., City’s Cost Allocation Plan (CAP).

9. An annual review of the City’s CAP will be conducted by the Finance Director to ensure indirect administrative costs and Internal Service Fund costs are fairly and equitably allocated to operating departments. The results of this annual review will be reported to the City Manager.

10. All proposed capital projects will have a detailed capital budget specifying total costs and total revenues and shall identify the source of proposed revenues.

Debt Management Policies

1. The City will not use long-term debt to finance current operations. Long-term borrowing will be confined to capital improvements or similar projects with an extended life which cannot be “pay-as-you-go” financed from current and conservatively expected revenues over the life of the asset.

2. Debt payments shall not extend beyond the estimated useful life of the project being financed. The City will try to keep the average maturity of bonded debt at or below 20 years.

3. The City will maintain good communications with bond rating agencies and the bond market concerning its financial condition consistent with best practices and SEC guidelines.

4. The City may utilize lease purchasing with specific approval of the City Manager. The useful life of the item must be equal to or greater than the length of the lease. A lease purchase will require City Council approval beyond a five-year lease term, or the principal amount is over the City Manager’s authorized contract signing level.

5. The City will not obligate the General Fund to secure financing unless the marketability of the issue will be significantly enhanced resulting in lower interest costs, and there is appropriate review of the risk to the General Fund. This assessment of risk should be independently affirmed by the Municipal Financial Advisor.

6. A feasibility analysis shall be prepared for each request for long-term financing which analyzes the impact on current and future fiscal year budgets for debt service and operations. The analysis shall also address the reliability of revenues supporting annual debt service along with the risk of inevitable economic cycles that could impact that reliability.

7. The City shall conduct financing on a competitive basis unless, for reasons of market volatility, the use of an unusual financing structure or a complex security structure indicates the negotiated financing is preferred. These options should be evaluated with our contracted Municipal Financial Advisors.

8. The City will monitor all forms of debt on an annual basis and report concerns or suggested restructuring, if any, to the City Council as part of the annual Budget Planning Workshop process.
213

9. Enterprise and Property owner-based financing will only be issued under the assumption that the issue is self-supporting from user fees and charges, assessments, and special taxes without impacting the General Fund.

10. Appropriate credit enhancements, such as insurance or letters of credit shall be considered for marketing purposes, availability, and cost effectiveness.

11. The City shall diligently monitor its compliance with bond covenants and ensure its compliance with federal arbitrage regulations. Any current or expected non-compliance needs to be communicated to Council along with a plan to address it.

12. The City may issue interfund loans, but they must comply with the City of Banning current Interfund Advances or Loan Policy.

Fund Balance Policy For the General Fund
The Fund Balance (like household savings) of the General Fund is a critical buffer for the inevitable emergencies (e.g., recessionary impact on revenues, etc.), for an unexpected crisis, (e.g., uninsured loss, legal and/or court decisions), and to address operating cash flow needs.

Because the General Fund is so foundational to the City’s ability to provide services, the Policy goals discussed here, and the following section are extremely important.

The City’s Fund Balance available for emergencies and to meet cash needs should be a minimum 17% with a target range of 17% to 30% of operating appropriations.

This Fund Balance Policy establishes the desired funding level to ensure fiscal sustainability, protection against the unexpected and to meet cash flow needs. The following section sets out the procedures for reporting fund balance in the General Fund financial statements. The policy also authorizes and directs the Finance Director to prepare financial reports which categorize fund balance as per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

During the Mid-Year Budget Review, the Budget Planning Workshop, and the Budget presentation to City Council, the Finance Director, in conjunction with the City Manager, will report on the condition of the Fund Balances and provide an assessment of their compliance with this Policy. To the extent there is non-compliance, a plan shall be presented to achieve compliance in a timely fashion. Failure to do so presents an unacceptable risk to the City.

III. ACCOUNTING PROCEDURES FOR

POLICY COMPLIANCE
Fund Balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purpose for which amounts can be spent.
• Nonspendable Fund Balance (inherently nonspendable, will not convert to cash in the following year; thus, cannot be used as an available resource in the budget) • Restricted Fund Balance (externally enforceable limitations on use) • Committed Fund Balance (City Council self-imposed limitations on use) 214

• Assigned Fund Balance (limitations resulting from City Council intended use) • Unassigned Fund Balance (residual net resources available for use) The first two components listed above are not addressed in this policy due to the nature of their restrictions. An example of Nonspendable Fund Balance is inventory or other asset that will not convert to spendable cash in the next year. Restricted Fund Balance is either imposed by law or constrained by grantors, contributors, contracts, or regulations of other governments. This policy is focused on financial reporting of Fund Balance that can be controlled by City Council decision, the last three components listed above (Committed, Assigned and Unassigned). These three components are further defined below.

Committed Fund Balance
The City Council, as the City’s highest level of decision-making authority, may commit Fund Balance for specific purposes pursuant to constraints already imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit Fund Balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently.

The Finance Director is the subject matter expert and is expected to ensure compliance with the following Fund Balance policy. If noncompliance occurs or is expected to, this fact will be reported to the City Manager. These two are then expected to report out to the Council at the earliest possible time as to why there is noncompliance and propose a plan for eventual compliance.
• General Fund Emergency Contingency
The City’s General Fund balance committed for emergency or inevitable economic cycle contingencies is established at a minimum of 17% or up to 30% of operating appropriations. The Emergency Contingency is reserved for economic uncertainties, local disasters, recession, or other financial hardships; to subsidize unforeseen operating or capital needs; and for cash flow requirements. The City Council may, by the affirming vote of three members, change the amount of this commitment and/or the specific uses of these monies.

To the extent the General Fund does not have adequate funds to achieve the minimum 17%, the City Manager will immediately offer a plan with options, to reach that amount.

The City Manager will not propose a budget that causes non-compliance with this Policy without a substantive staff report that highlights proposed options to continue compliance vs. options to temporary fall outside this range along with a plan to get back into compliance. This discussion will occur well before the budget is submitted to Council for adoption, preferably during the Budget Planning Workshop.

The status of the General Fund-Fund Balance will be discussed as part of the City Manager’s Budget Message, in the Budget document.
215

Assigned Fund Balance
Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This policy hereby delegates the authority to assign amounts to be used for specific purposes to the Finance Director, with concurrence from the City Manager, for the purpose of reporting these amounts in the annual financial statements. A few examples of assigned fund balance follow. • Continuing Appropriations
This is sometimes called “carryover appropriations” which reflects unspent funds for unfinished capital projects that must be carried forward into the new fiscal year to complete the project.
• Debt Service
Established to provide for future debt service obligations.

Unassigned Fund Balance
These are residual positive net resources of the General Fund more than what can properly be classified in one of the other four categories.

Fund Balance Classification
The accounting policies of the City consider Restricted Fund Balance to have been spent first when an expenditure is incurred for purposes for which both Restricted and Unrestricted Fund Balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the Unrestricted classifications of fund balance could be used, the City considers Committed amounts to be reduced first, followed by Assigned amounts and then Unassigned amounts.

This policy is in place to provide a measure of protection for the City against unforeseen circumstances and to comply with GASB Statement No. 54. No other policy or procedure supersedes the authority and provisions of this policy.

Available Fund Balance Policies
Available Fund Balance is a term used in budgets and essentially is the sum of Committed, Assigned and Unassigned Fund Balance. It is this number that when added to Revenues describes the total Resources available to fund the budget.

1. Each Fund shall maintain, if necessary, an appropriate Available Fund Balance reserve to fund prior year’s incomplete capital projects, continuing appropriations, cash flow needs and any other financial need not included in the current fiscal year budget.

2. The BUA Water and Wastewater operational funds shall maintain a minimum Available Fund Balance reserve equal to 90 days of the operating and maintenance expenses and debt service payments.

3. The Electric operational fund shall maintain a minimum Available Fund Balance reserve of 10% of the upcoming fiscal year’s total operating appropriations and debt service payments. The Available Fund Balance for the Electric Rate Stability Fund shall be 216

maintained at a minimum of 20% of the upcoming fiscal year’s total operating appropriations and debt service payments.

4. The Self-Insurance Fund shall maintain a $1 million minimum Available Fund Balance reserve after fully funding the Accrued Claims Liabilities as determined by the actuary at an 80% confidence factor.

Budget and Budgetary Accounting Policies
The City uses the following procedures in establishing the budget:

1. Before the beginning of the budget cycle, the City Manager facilitates a Budget Planning Workshop to discuss the City’s finances, both current and long-term, current service levels, perceived needs of the community and the parameters of the City Manager’s upcoming Proposed Budget commencing July 1. The Council will provide general direction.

2. A budget workshop(s) may be conducted every two years or as needed to obtain citizen comments.

3. The budget is subsequently agendized, thoroughly discussed and adopted through passage of a resolution.

4. For a given fiscal year, all appropriations are as originally adopted or as amended by the City Council. At year end, all unencumbered budgeted amounts lapse, subject to requests for continuing appropriations. Outstanding encumbrances may be carried forward into the new fiscal year upon the Finance Director’s review and City Manager approval.

5. Continuing Appropriations requests and Authorized Capital Projects are approved by the City Manager after the adoption of the original budget. The original budget is then adjusted accordingly.

6. The legal level of budgetary control is at the fund level. A Department Head may transfer budget appropriations within a major category in a department or Fund under his authority. The City Manager’s approval must be obtained when a budget appropriation transfer request moves from one major appropriation category to another within a department.

7. The City Council may, at any time, amend the budget or delete appropriations, transfer appropriations within a fund, or change appropriation transfers between funds. 217
Resolutions
218
Resolutions 2026-131, 2026-08UA, and 2026-02SA

RESOLUTION 2026-131, 2026-08UA, AND 2026-02 SA

JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, THE BANNING

UTILITY AUTHORITY, AND THE SUCCESSOR AGENCY OF THE CITY OF BANNING

APPROVING AND ADOPTING THE ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2026/2027
WHEREAS, the City of Banning (“City”) is required to adopt an operating budget of expenditures for the period of July 1, 2026, to June 30, 2027 (“Fiscal Year 2026-27”); and WHEREAS, the City Manager has submitted the Proposed Annual Budget for Fiscal Year 2026-27 to the City Council, the Banning Utility Authority, and the Successor Agency of the City of Banning in accordance with the Banning Municipal Code and applicable state laws; and WHEREAS, on May 14, 2026, the City Council held a workshop on Banning’s Workout Plan to Fiscal Sustainability, and
WHEREAS, on June 23, 2026, the City Council adopted Resolution 2026-102 declaring a fiscal emergency, and the Fiscal Year 2026-27 budget has been developed in conjunction with Banning’s Workout Plan to Fiscal Sustainability; and
WHEREAS, the City Council adopted Resolution 2026-89 authorizing the continuation of expenditures through September 30, 2026, pending adoption of the Fiscal Year 2026-27 budget; and
WHEREAS, on August 18, 2026, August 20, 2026, August 26, 2026, and September 10, 2026, duly noticed public budget workshops were held to discuss the development of the Fiscal Year 2026-27 budget; and
WHEREAS, all citizens and interested parties were given an opportunity to be heard concerning the allocation of public funds during the workshops; and WHEREAS, it is the statutory responsibility of both the City Council, Banning Utility Authority, and the Successor Agency of the City of Banning to formally approve and adopt the annual budget to ensure the continuous operation of municipal services, infrastructure maintenance, and public safety.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, THE BANNING UTILITY AUTHORITY, AND THE SUCCESSOR AGENCY OF THE CITY OF BANNING AS FOLLOWS:

SECTION 1. Adoption of Budget. The Annual Budget for the City of Banning for the Fiscal Year beginning July 1, 2026, and ending June 30, 2027. A copy of the Operating Budget is on file with the City Clerk and is hereby adopted and, by this reference, expressly incorporated herein and made a part of this resolution as though fully set forth herein. The funds appropriated by this resolution are authorized to be expended as necessary and proper for municipal purposes.

SECTION 2. Appropriation of Funds. The sums of money set forth in the budget summary below are hereby appropriated from the respective funds and revenues of the City for the purposes stated, to be expended during Fiscal Year 2026-27:
 General Fund: $33,013,822
219
Resolutions 2026-131, 2026-08UA, and 2026-02SA

 Enterprise Funds: $68,013,665
 Interfund Service Funds: $15,355,757
 Special Revenue Funds: $4,263,866
 Water & Sewer Funds: $20,367,108
 Successor Agency Funds: $4,948,337
 Fiscal Year 2026-27 Appropriations: $145,962,556
SECTION 3. The City Manager, or designee, is authorized to approve and process the requisitions and purchase orders necessary to implement the adopted Fiscal Year 2026-27 Operating Budget, provided that such purchases are within the scope of approved budget appropriations. All procurement activities shall be conducted in accordance with the City’s adopted purchasing policies and procedures. No purchases shall be made without appropriate budget authorization and approval in accordance with City policy.

SECTION 4. The approved budget for each individual grant remains as an authorized appropriation until the grant is completed or expires. Any unexpended authorized appropriation for each grant, and the corresponding revenue budget, is automatically carried over from fiscal year to fiscal year until the funds of the individual grant are expended, the grant expires, or the grant is canceled by the grantor or the City Manager.

SECTION 5. The City Manager is authorized to amend budgets within a departmental appropriation; however, any change in authorized employee counts must be approved by the City Council.

SECTION 6. The City Manager, through the Finance Department, shall periodically report to the City Council on financial status, including revenues and expenditures to date and the estimated year-end fund balances. On a quarterly basis, the City Manager shall review all City financial operations, report to the City Council on financial results, and recommend the financial actions necessary to meet the adopted budget’s financial planning and goals.

SECTION 7. The City Manager, or designee, is authorized and directed to take all necessary and proper actions to implement this resolution, including minor reclassifications of revenue and expenditure estimates.

SECTION 8. Upon the effective date of this resolution, Resolution 2026-89 shall be superseded. Expenditures made under Resolution 2026-89 during Fiscal Year 2026-27 are ratified and shall be applied against the appropriations adopted by this resolution. This resolution shall take effect immediately upon its adoption.

SECTION 9. The City Clerk shall certify the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED, AND ADOPTED this 22nd day of September 2026. 220
Resolutions 2026-131, 2026-08UA, and 2026-02SA

For the City Council
Richard Royce, Mayor
City of Banning, California
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning, California

APPROVED AS TO FORM:

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP

For the Banning Utility Authority
Richard Royce, Mayor
Banning Utility Authority
ATTEST:

Sandra Calderon, Secretary
Banning Utility Authority

APPROVED AS TO FORM:

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP

221
Resolutions 2026-131, 2026-08UA, and 2026-02SA

For the Successor Agency of the City of
Banning

Richard Royce, Chairperson
Successor Agency of the City of Banning
ATTEST:

Sandra Calderon, Secretary
Successor Agency of the City of Banning

APPROVED AS TO FORM:

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP

222
Resolutions 2026-131, 2026-08UA, and 2026-02SA

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, Secretary of the Banning Utility Authority, and Secretary of the Successor Agency of the City of Banning do hereby certify that the foregoing Resolutions 2026-131, 2026-08 UA, and 2026-02 SA were duly adopted by the City Council of the City of Banning, California, Banning Utility Authority, Successor Agency of the City of Banning, at a regular meeting thereof held on the 22nd day of September 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Deputy City Clerk
City of Banning, California
223
2026-89
RESOLUTION 2026- 89

RESOLUTION OF THE BANNING CITY COUNCIL AND BOARDS OF THE

BANNING UTILITY AUTHORITY AND BANNING SUCCESSOR AGENCY,

ESTABLISHING CONTINUING BUDGETS AND AUTHORIZING

EXPENDITURES/ APPROPRIATIONS UNTIL THE EARLIER OF SEPTEMBER 30, 2026 OR THE ADOPTION OF OPERATING BUDGETS FOR FISCAL YEAR 2026- 2027
WHEREAS, the City Council of the City of Banning (" City") the Banning Utility Authority (" Authority"), and the Banning Successor Agency (" Successor Agency") are responsible for adopting operating budgets for their respective entities; and
WHEREAS, the City Council, Banning Utility Authority, and Banning Successor Agency passed the Fiscal Year 2025- 2026 Operating Budget; and
WHEREAS, the City Manager has provided a workout plan update at each City Council Meeting regarding the financial situation ofthe General Fund; and
WHEREAS, the workout plan requires a General Fund balanced budget to be presented for approval using only reoccurring revenues. Staff is evaluating all revenues and expenditures to determine what expenses can remain in the Fiscal Year 2026- 2027 Operating Budget; and WHEREAS, the City, Authority, and Successor Agency require the continued provision of municipal services and the payment of lawful obligations pending final adoption of the 2026- 2027 Fiscal Year - Annual Operating Budget; and
WHEREAS, With the assistance of City staff, the City Council, Banning Utility Authority, and Banning Successor Agency will be working on developing and reviewing the Fiscal Year 2026- 2027 Operating Budget and Capital Improvement schedules and have directed that expenditures/ appropriations continue at the same Fiscal Year 2025- 2026 Adopted Budget levels until the earlier of September 30, 2026 or upon the Fiscal Year 2026- 2027 Operating Budget being adopted by the City Council, Banning Utility Authority, and Banning Successor Agency; and
WHEREAS, the City Council, Banning Utility Authority, and Banning Successor Agency find that authorization of a continuing budget and expenditures/ appropriations as set forth herein, is necessary to preserve public health, safety, and welfare and ensure continuity of governmental operations; and WHEREAS, expenditures during the period of this continuing resolution shall be controlled through a prorated funding rate, based on the Fiscal Year 2025- 2026 Adopted Budget; and WHEREAS, the City Manager intends to and will work diligently to present a Fiscal Year 2026- 2027 Operating Budget to the City Council, Banning Utility Authority, and Banning Successor Agency for consideration no later than September 30, 2026.

NOW THEREFORE, the City Council of the City of Banning, Banning Utility Authority, and Banning Successor Agency do hereby ordain as follows:

SECTION l. RECITALS. The foregoing recitals are true and correct and are incorporated herein by this reference.

Resolution ---

224
2026-89
SECTION 2. CONTINUING BUDGET AUTHORITY. The City Council, Banning Utility Authority, and Banning Successor Agency hereby authorize a continuing budget and spending/ appropriation authority commencing on July 1, 2026, continuing through the earlier ofSeptember 30, 2026 or upon the City Council adopting the Fiscal Year 2026- 2027 Operating Budget.

SECTION 3. Authorized Expenditures. During the period of the continuing budget and appropriations, the City Manager, or designee, is authorized to incur expenditures and obligations at one quarter ( 1/4) of the prior year' s level of spending that are necessary for the continued operation of the City, Authority, and Successor Agency, including the following:

A. Expenditures necessary to meet payroll, employee benefits, debt service obligations, insurance premiums, utilities, contractual obligations, grant- funded activities, emergency expenditures, and other legally required payments and other expenses needed for the essential functions of the City, Authority, and Successor Agency as determined by the City Manager.

B. Capital improvement projects and capital purchases may proceed to the extent previously authorized by the City Council, Banning Utility Authority, or Banning Successor Agency, required by contract, supported by restricted funds, necessary to protect public health, safety and welfare, or approved by the City Manager.

SECTION 4. REVENUE COLLECTION AND ADMINISTRATION. The City Manager and other authorized officers are directed to continue the collection, receipt, deposit, accounting, and administration of all City, Authority, and Successor Agency revenues in accordance with applicable law and policies.

SECTION 5. BUDGET ADOPTION. Nothing in this Resolution shall be construed as adopting the Fiscal Year 2026- 2027 Operating Budget. The City Council, Banning Utility Authority, and Banning Successor Agency intend to consider and adopt the annual budget as soon as practicable.

SECTION 6. SEVERABILITY. If any provision of this Resolution or its application to any person or circumstance is held invalid, the remainder ofthis Resolution, including the application of its provisions to other persons or circumstances, shall not be affected and shall continue in full force and effect.

SECTION 7. EFFECTIVE DATE OF RESOLUTION. Thatthis Resolution shall take effect immediately upon its adoption.

SECTION 8. CERTIFICATION. That the City Clerk shall certify the passage ofthis Resolution and shall cause the same to be published according to law.

Resolution __

SIGNATURE PAGE BELOW]
225
2026-89
PASSED, APPROVED, AND ADOPTED this 9th day of June, 2026.

ATTEST:

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

Joh
Sl& v , , urphy & Pinkney,
LLP
Resolution __

Rich~ rd ey; Mayor
City of Banning and Chair ofBanning Utility
Authority and Banning Successor Agency
226
CERTIFICATION:.

I, Sandra Calderon, Deputy City Clerk ofthe City ofBanning, California, do hereby certify that Resolution 2026-89 was duly introduced at a regular meeting of the City Council of the City of Banning, was duly adopted at a regular meeting of said City Council on the 9th day of June 2026, by the following vote, to wit:

AYES: Barrington, Flynn, Miller, Royce, Wallace
NOES: None
ABSENT: None
ABSTAIN: None
Resolution 2026- 89

Sandra Calderon, Deputy City Clerk
City ofBanning, California
227
RESOLUTION 2026- 102

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

DECLARING A FISCAL EMERGENCY DUE TO EXTRAORDINARY FINANCIAL

CIRCUMSTANCES THREATENING THE CITY' S ABILITY TO MAINTAIN ESSENTIAL

MUNICIPAL SERVICES
WHEREAS, the City of Banning is committed to maintaining essential municipal services for the protection of the public health, safety, and welfare of its residents; and WHEREAS, the City Council recently conducted a May 14, 2026, Workshop-- Banning' s Workout Plan to Sustainability, where it received financial information demonstrating significant fiscal challenges affecting the City' s General Fund and overall financial condition; and WHEREAS, the City has been operating with annual General Fund budgets that were not structurally balanced for the last six years, which resulted in a reduction of a healthy FY 19-20

13.1 million Beginning Fund Balance ( savings account) to what we expect to be a n~gative

12.8 million by June 30, 2026, a dramatic $ 25.9 million reduction; and WHEREAS, in the past, the City relied on one- time resources, which made it inaccurately appear the annual budgets were structurally balanced ( ongoing revenues cover ongoing expenses), thus avoiding the very conversations that we are having today; and WHEREAS, the one- time resources have simply disappeared this fiscal year, and with unrealistic revenue projections in a budget that was adopted back in June 2024, resulting in an untenable General Fund-- Fund Balance estimate of negative $ 12.8 million at June 30, 2026, and if no dramatic action is taken now this deficit will likely more than double to negative $ 26 million through Fiscal Year 26-27; and
WHEREAS, the previous annual budgets lacked the appropriate level of transparency on the finances of the City; and
WHEREAS, the City Council discussed a comprehensive new Budgetary and Fiscal Policy at their May 14th Workshop that would reduce th_e likelihood of repeating the past; and WHEREAS, the City Manager has provided City Council with a Workout Plan to Sustainability with a Phase 1, which would include immediate but difficult budget reductions and other measures to " stop the fiscal bleeding" and eliminate the FY 26-27 General Fund budget operating deficit; and
WHEREAS, given the size of this inherited operating deficit, $ 14 million as a percentage of the current General Fund budget ($ 37 million), this will be a very difficult process leading to unprecedented budget reductions to stabilize the City' s General Fund; and WHEREAS, the City Manager is working with City staff and consultants to develop a FY 26- 27 Annual Operating Budget; and
Resolution 2026- 102

228
WHEREAS, the City Council finds that the preservation of essential governmental services and the protection of the public health, safety, and welfare constitute important public purposes requiring immediate but very difficult action; and
WHEREAS, it is very apparent that Banning' s current economy cannot sustain an appropriate level of City services, and it produces a higher unemployment rate and lower per household income for its residents when compared statewide or regionally; and WHEREAS, the City cannot solely tax its way out of this predicament; and WHEREAS, this Council further finds that extraordinary measures are necessary to stabilize the City' s finances, preserve essential public services, improve long- term fiscal sustainability for our children, and protect the interests of the residents of the City of Banning; and WHEREAS, the City Council desires to formally recognize the severity of the City' s financial condition and establish a framework for evaluating and implementing appropriate fiscal recovery measures; and
WHEREAS, the City Council is directing the City Manager to initiate decisions, proposals, and conversations that will be difficult and controversial; and NOW THEREFORE, the City Council of the City of Banning does hereby ordain as follows:

SECTION 1. RECITALS. The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. DECLARATION OF FISCAL EMERGENCY. Based upon the foregoing recitals, the City Council hereby finds and declares that a fiscal emergency exists within the City of Banning due to extraordinary financial circumstances that threaten the City' s fiscal stability and its ability to provide essential municipal services and protect the public health, safety, and welfare.

SECTION 3. PERIODIC REVIEW. The City Council directs the City Manager to continue providing periodic reports regarding the City' s financial condition and the status of efforts undertaken to address the fiscal emergency.

SECTION 4. FISCAL RECOVERY MEASURES. The City Council directs the City Manager and City staff to evaluate, develop, and implement lawful measures necessary to address the fiscal emergency, including but not limited to:
a. Proposing a FY 26- 27 General Fund budget that is structurally balanced, i.e., ongoing expenditures are covered by ongoing revenues and conforms with the attached Draft Budgetary and Fiscal Policy.
b. Proposing additional multi- year strategies that will result in eliminating negative Fund Balances and pivoting to appropriate positive amounts.
c. Seek immediate economic development opportunities that contribute to Banning' s economy and resources to the City.
d. Expenditure reductions and cost- containment measures.

Resolution 2026- 102

229
e. Seek partnerships with our labor representatives and comply with State law, e.g., Meyers- Milias- Brown Act ( MMBA).
f. Operational efficiencies and organizational restructuring. g. Review of staffing levels, vacancies, and personnel expenditures. h. Deferral, modification, or reprioritization of capital projects and non- essential expenditures.

1. Identification of new revenue opportunities and cost- recovery measures.

J. Pursue grants, outside funding sources, and other financial assistance; and k. Any other lawful actions deemed necessary or beneficial to preserve essential municipal services and improve the City' s financial condition.

SECTION 5. CONTINUING EFFECT. This declaration shall remain in effect until terminated by resolution of the City Council upon a determination that the fiscal emergency no longer exists.

SECTION 6. SEVERABILITY. If any provision of this Resolution or its application to any person or circumstance is held invalid, the remainder of this Resolution, including the application of its provisions to other persons or circumstances, shall not be affected and shall continue in full force and effect.

SECTION 7. EFFECTIVE DATE OF RESOLUTION. That this Resolution shall take effect immediately upon its adoption.

SECTION 8. CERTIFICATION. That the City Clerk shall certify the passage of this Resolution and shall cause the same to be published according to law.

Resolution 2026- 102

SIGNATURES ON FOLLOWING PAGE]
230
PASSED, APPROVED, AND ADOPTED this 23 rd day of June, 2026.

ATTEST:

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

John Pinkney, City Attorney
Slovak, Baron, Empey, Murp y &
Pinkney, LLP
Resolution 2026- 102

RidhardRoyce, Mayor
City of Banning
231
CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that Resolution 2026- 102 was duly adopted at a regular meeting of said City Council on the 23 rd day of June 2026, by the following vote, to wit:

AYES: Barrington, Flynn, Miller Royce
NOES: None
ABSENT: Wallace
ABSTAIN: None
Resolution 2026- 102

Sandra Calderon, Deputy City Clerk
City of Banning, California
232

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Elizabeth Gibbs, City Manager
MEETING DATE: September 22, 2026
SUBJECT: Consideration of an Alcohol License Restriction Strategy in Partnership with Blue Zones Project
STAFF RECOMMENDATION:

Discussion and direction to staff on the Alcohol License Restriction Strategy submitted in partnership with Blue Zones Project.

BACKGROUND:

Blue Zones has partnered with the City in requesting City Council consideration of a coordinated ordinance package intended to reduce alcohol outlet density and associated crime, nuisance, and public health harms in Banning. The proposal, titled "City of Banning, California - Alcohol License Restriction Strategy: Policy Analysis, Comparative Review, and Draft Ordinance Language" is attached and forms the basis of this report.

The California Department of Alcoholic Beverage Control (ABC) issues and regulates retail alcohol licenses statewide, but state law grants cities substantial local authority to shape where, how, and under what conditions alcohol is sold — through zoning ordinances, conditional use permits, undueconcentration findings, Public Convenience or Necessity (PCN) determinations, and deemed-approved ordinances for legal nonconforming outlets. Blue Zones' proposal is built around this local authority and is modeled in part on ordinances already adopted by the cities of Riverside and Palm Springs.

Blue Zones' proposal consists of three coordinated components:

Ordinance 1 — Comprehensive CUP Requirement: Amends the Zoning Code to classify all alcohol-related land uses as Conditional Uses in every commercial zone, requiring Planning Commission approval before any new ABC license may be issued in Banning. The draft includes denial criteria (e.g., location within 600 feet of a school, park, playground, library, church, or residential zone; location in an over-concentrated census tract or high-crime reporting district; applicant history of ABC violations) and standard conditions of approval (e.g., no off-sale after midnight, no chilled single-serve containers, RBS-certified staff, video surveillance, no-loitering enforcement, annual performance review). NOTE: this would require a CUP for grocery stores and restaurants selling alcohol and may adversely hinder and/or delay some economic development.

Ordinance 2 — Deemed Approved Ordinance (DAO): Applies performance standards to existing, legally nonconforming outlets that predate the CUP requirement, allowing them to keep operating only while they comply. Establishes a complaint-driven administrative hearing process, with three 233
or more verified police calls for service in 12 months creating a rebuttable presumption of noncompliance, and provides that loss of Deemed Approved status is reported to ABC and can result in license non-renewal.

Ordinance 3 — Zoning Code Density Standards: Codifies a local cap of no more than one off-sale general (Type 21) license per 5,000 residents per census tract and a 1,000-foot separation requirement between new and existing off-sale outlets, shifting the burden to the applicant to demonstrate compelling public benefit where a standard is already met.

The proposal also recommends that Public Convenience or Necessity (PCN) determinations — required by ABC in over-concentrated or high-crime areas under Business and Professions Code Section 23958.4 — be vested in the City Council rather than a staff designee, and that the Council adopt a PCN Policy Resolution establishing a rebuttable presumption against issuance in over-concentrated tracts.

The proposal benchmarks its recommendations against ordinances already in effect in the cities of Riverside and Palm Springs:

Feature City of Riverside City of Palm Springs Recommendation CUP required for new
licenses
Yes - all on-sale & offsaleYes-via Planning
Commission
Yes - all ABC license
types
Deemed Approved
Ordinance
Yes - with performance
standards
None
Yes - with annual
review
Density/concentration
cap
Via state undue
concentration rules
No explicit cap Codify local cap per
census tract
Sensitive use buffers
600 ft - hospitals,
schools, assemblies,
parks
None
600 ft - schools, parks,
churches, residences
Off-sale hours
restriction
No sales after 1:30 am 2:00 am (state default) No off-sale after midnight
PCN authority
Police Chief + City
Council
Planning Commission City Council
CUP Revocability Yes - for violations Yes
Yes - annual
performance review
JUSTIFICATION:

Consistent with standard zoning ordinance amendment procedure and Section 3 of the draft CUP Ordinance itself — which vests CUP approval authority in the Planning Commission — this item asks the Council only to authorize staff to prepare the proposal for formal review. The draft ordinances would first go to the Planning Commission for a duly noticed public hearing and a recommendation, and would return to the City Council only afterward for introduction, first reading, and adoption. No ordinance would take effect without both steps.

FISCAL IMPACT:

There is no fiscal impact associated with receiving the Blue Zones proposal itself. City Attorney review and refinement of the draft ordinance language will be billed under the City's existing legal services arrangement. Any fiscal impact associated with future enforcement — including possible cost-recovery permit or inspection fees — will be analyzed and presented if and when the Council considers formal ordinance adoption.
234
ATTACHMENTS:

1. DRAFT City of Banning Alcohol Density Strategy_.6.11.26.pdf

2. AlcoholOutletDensityCA2023.pdf

3. 2025-Deep-Dive-Safer-Alcohol-Sales.pdf

4. Policy-Brief-Safer-Alcohol-Sales.pdf

5. BUSD Letter of Support_Liquor Store Density Cap.pdf

6. Youth_Council_Letter_of_Support_T_A_Policies_for_BZ_SIGNED.pdf 235

CITY OF BANNING, CALIFORNIA
Alcohol License Restriction Strategy
Policy Analysis, Comparative Review, & Draft Ordinance Language July 2026 — For Discussion by City Council
I. Executive Summary
The City of Banning has the legal authority to significantly restrict the number of active alcohol licenses, control the location and operation of alcohol outlets, and establish binding performance standards for all existing and future licensees. This document outlines the most impactful ordinance strategy, compares approaches used by neighboring Riverside County cities, and provides draft ordinance language ready for City Council review.

The recommended approach is a two-ordinance package:
• A Comprehensive CUP (Conditional Use Permit) Ordinance requiring land use approval before any new ABC license can be issued in Banning. • A Deemed Approved Ordinance (DAO) applying performance standards to all existing, grandfathered alcohol outlets — with revocability if standards are violated.

Together, these create a complete regulatory framework covering both new and existing licenses.

II. California Legal Framework
State ABC Authority
California's Department of Alcoholic Beverage Control (ABC) holds primary authority over liquor licenses statewide. Cities cannot simply prohibit licenses by fiat. However, state law provides cities with substantial leverage through three mechanisms:

1. Zoning Ordinances (Bus. & Prof. Code §23790): The ABC cannot issue a retail license contrary to a valid local zoning ordinance. If Banning zones all commercial districts to require a CUP for alcohol sales, every new applicant must clear that hurdle first.

2. Undue Concentration (Bus. & Prof. Code §23958.4): Where a census tract already exceeds the allowable license-to-population ratio, or where a police reporting district has a crime rate more than 20% above the citywide average, ABC must require a Public 236
Convenience or Necessity (PCN) determination before issuing a license. The city can make that determination — and can say no.

3. Public Convenience or Necessity (PCN) Findings: In high-crime or over-concentrated areas, the city's governing body (or its designee) must affirmatively determine that a new license serves public convenience or necessity. This gives Banning a formal veto.

What a City Can and Cannot Do
A hard numerical cap on total citywide licenses is legally vulnerable to state preemption challenges. The CUP + PCN + zoning density approach achieves the same practical effect more durably, because each decision is grounded in specific, documented findings rather than an arbitrary number.

The city cannot retroactively revoke existing ABC licenses without cause. However, a Deemed Approved Ordinance can require existing licensees to comply with performance standards going forward — and can revoke the local land use permit (triggering an ABC license denial on renewal) if they fail to comply.

III. Comparative Analysis: Riverside County Cities
The following table compares alcohol regulatory approaches from the City of Riverside and the City of Palm Springs against the recommended framework for Banning:

Feature City of Riverside City of Palm
Springs
Recommended for
Banning
CUP Required for New
Licenses
Yes — all on-sale &
off-sale
Yes — via planning
commission
Yes — all ABC license
types
Deemed Approved
Ordinance (existing
licenses)
Yes — with
performance
standards
None Yes — with annual
review
Density / Concentration
Cap
Via state undue
concentration rules
No explicit cap Codify local cap per
census tract
Sensitive Use Buffers 600 ft from hospitals,
schools (preschool
through 12th grade),
assemblies of people
(non-entertainment),
or public parks
None 600 ft — schools, parks,
churches, residences
237
Hours Restriction (offsale)
No sales after 1:30
AM
2 AM (state default) No off-sale after
midnight
Single-Serve Cold Beer
Ban
Allowed - many
Riverside CUPs
include single-serve
cold restrictions as
standard conditions.

Not addressed Prohibited in off-sale
CUP conditions
PCN Authority Police Chief + Council Planning Commission City Council (democratic
accountability)
CUP Revocability Yes — for violations Yes Yes — annual
performance review
City of Riverside — Key Features
• Enacted a comprehensive Alcohol Sales ordinance (Chapter 19.450) requiring Minor Conditional Use Permits for bars, saloons, cocktail lounges, and taverns in commercial zones.
• Adopted a Deemed Approved Ordinance covering all existing legal nonconforming alcohol outlets — they may continue operating only if they comply with ongoing performance standards.
• Performance standards prohibit alcohol sales after 1:30 AM, restrict concurrent gas station/alcohol sales to beer and wine only, and require employees on duty after 10 PM to be at least 21 years of age.
• Grants the Police Department authority to initiate review of a Deemed Approved Use if the establishment generates nuisance complaints or public safety issues.

City of Palm Springs — Key Features
• Alcohol sales categorized as a Conditional Use in most commercial and resort zones — requiring Planning Commission approval, public notice, and public hearing. • CUPs specify location-specific operating conditions (hours, security, signage, parking) as binding conditions of approval.
• Resort and hotel alcohol service included within broader resort CUP approvals, with on-site consumption subject to tied conditions.
• Relies primarily on the state undue concentration framework rather than a local density cap — an area where Banning could improve upon the Palm Springs model. 238
IV. Recommended Ordinance Strategy for Banning
Ordinance 1: Comprehensive CUP Requirement (New Licenses) Amend Banning's Zoning Code to classify all alcohol-related land uses as Conditional Uses in every commercial zone. This is the single most powerful lever available to the city.

Scope
• Applies to all new ABC license applications: Type 20 (off-sale beer/wine), Type 21 (off-sale general/liquor), Type 40/41 (on-sale beer/wine), Type 47/48 (on-sale general), Type 42 (bars/taverns).
• Full-service restaurants with food-to-alcohol sales ratio exceeding 60% food may qualify for streamlined review — but still require a Minor CUP, not a permit by right. • Applies to any change in license type or ownership of an existing licensed premises.

CUP Denial Criteria
• Located within 600 feet of a school, park, playground, library, church, or residential zone boundary.
• Located in a census tract at or above the state undue concentration threshold (check ABC census tract report).
• Located in a police reporting district with crime rate 20% or more above the citywide average.
• Applicant or owner has prior ABC violations, license revocations, or criminal convictions related to alcohol.
• Proposed use is inconsistent with the surrounding neighborhood character or general plan land use designation.

Standard CUP Conditions of Approval
• Off-sale licenses: No alcohol sales after 12:00 midnight (stricter than state 2 AM default).
• Off-sale licenses: No sale of individual (single-serve) containers of beer, malt beverage, or wine cooler chilled at point of sale (reduces street drinking). • Off-sale licenses: No sale of fortified wine (greater than 15% ABV) in containers of 32 oz or less.
• Off-sale licenses: No alcohol advertising visible from the exterior of the premises. • On-sale licenses: Security personnel required when occupancy exceeds 75 persons or during late-night hours (after 10 PM).
• All licenses: All employees who sell or serve alcohol must hold a current California RBS (Responsible Beverage Service) certification.
239
• All licenses: Video surveillance system covering entrance, interior, and parking area; footage retained for 30 days.
• All licenses: Premises kept free of loitering, as enforced by posted signage and active staff management.
• All licenses: CUP subject to annual performance review and may be revoked upon findings of nuisance, crime nexus, or repeated violations.

PCN Process
The City Council (not a single designee) should hold authority over Public Convenience or Necessity determinations for licenses in high-crime or over-concentrated areas. This ensures democratic accountability. The Council should adopt a PCN Policy Resolution establishing:
• A rebuttable presumption against issuance in over-concentrated census tracts. • Specific written findings required to overcome the presumption (e.g., unique community benefit, no alternative location available).
• A public hearing with notice to residents within 600 feet of the proposed location.

Ordinance 2: Deemed Approved Ordinance (Existing Licenses) Dozens of California cities have adopted Deemed Approved Ordinances to address the gap that standard CUP ordinances leave: existing, grandfathered alcohol outlets that predate zoning requirements. Banning should adopt a DAO that:

4. Grants all existing legal alcohol outlets "Deemed Approved" status, allowing them to continue operating without a formal CUP — but only so long as they comply with the Performance Standards below.

5. Requires the City to notify each Deemed Approved outlet (by certified mail) of its status and the performance standards within 90 days of ordinance adoption.

6. Creates a complaint-driven review process: any resident, police officer, or city official may file a complaint that triggers an administrative hearing.

7. Authorizes the Hearing Officer (or Planning Commission) to impose conditions, impose administrative fines, or revoke Deemed Approved status if violations are found.

8. Provides that loss of Deemed Approved status terminates the local land use authorization — which the city then reports to ABC, triggering license non-renewal.

Deemed Approved Performance Standards
• No loitering on or immediately adjacent to the premises. Owner must post signage and actively discourage.
• No littering, graffiti, or vandalism nexus — owner responsible for keeping sidewalks and adjacent property clean.
• No sales to obviously intoxicated persons (state law standard, locally enforceable). • No single-serve chilled alcohol sales for off-sale outlets (added by local condition). • Lighting of parking lot and entrance adequate for security camera coverage. 240
• Compliance with all conditions of any existing ABC license and any prior city conditions.
• No repeated calls for service (three or more qualifying police calls in a 12-month period creates a rebuttable presumption of non-compliance).

Ordinance 3: Zoning Code Density Standards
Separately amend the Zoning Code to codify a maximum density of alcohol outlets per planning area:
• No more than one (1) off-sale general (Type 21) license per 5,000 residents in a given census tract.
• No new off-sale licenses within 1,000 feet of another existing off-sale license (separation requirement).
• These standards apply at time of CUP application — if the standard is already met, the burden shifts to the applicant to show compelling public benefit.

V. Draft Ordinance Language — CUP Requirement
The following is a draft framework for the City Attorney to refine and finalize. It is based on model language from California League of Cities guidance, the City of Riverside's Chapter

19.450, and Ventura's Chapter 24.460.

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA,

AMENDING THE BANNING MUNICIPAL CODE TO REQUIRE CONDITIONAL USE PERMITS

FOR ALCOHOL-RELATED LAND USES, ESTABLISH PERFORMANCE STANDARDS, AND

PROTECT PUBLIC HEALTH AND SAFETY
Section 1. Purpose and Findings
The City Council of the City of Banning hereby finds and declares that: (a) the concentration of alcohol-related businesses in certain areas of the City has been associated with increased levels of criminal activity, public nuisance, and adverse impacts on neighboring properties and residents; (b) it is necessary and appropriate to require review and approval of alcohol-related land uses through the Conditional Use Permit process to ensure compatibility with surrounding uses and protection of public health, safety, and welfare; (c) the City's authority to adopt this Ordinance is based upon its police powers and land use authority under the California Constitution and Government Code.

Section 2. Definitions
(a) 'Alcohol-Related Use' means any use for which a license is required from the California Department of Alcoholic Beverage Control, including but not limited to off-sale beer and wine 241
(Type 20), off-sale general (Type 21), on-sale beer and wine eating place (Type 41), on-sale general eating place (Type 47), and on-sale general public premises (Type 48). (b) 'Sensitive Use' means a school (K-12), park, playground, library, place of worship, licensed childcare facility, or residential zone. (c) 'Off-Sale Outlet' means any premises licensed for the sale of alcoholic beverages for consumption off the licensed premises. (d) 'On-Sale Outlet' means any premises licensed for the sale of alcoholic beverages for consumption on the licensed premises.

Section 3. Conditional Use Permit Required
No person shall establish, operate, or maintain an Alcohol-Related Use within the City of Banning without first obtaining a Conditional Use Permit (CUP) approved by the Planning Commission, except as provided in Section 4. A valid CUP shall be presented to the California Department of Alcoholic Beverage Control as part of any license application or renewal. No CUP shall be transferable except upon approval of a new CUP application following the procedures of this Chapter.

Section 4. Exemptions
The following uses are exempt from the CUP requirement of Section 3, but remain subject to all applicable performance standards: (a) Retail establishments where alcohol sales constitute less than ten percent (10%) of gross annual sales, provided the establishment does not sell chilled individual-serving containers; (b) Special event permits of 72 hours or less, subject to Police Department approval. Full-service restaurants where food sales constitute sixty percent (60%) or more of gross annual revenue remain subject to a Minor CUP.

Section 5. Findings Required for Approval
The Planning Commission shall not approve a CUP for an Alcohol-Related Use unless it makes all of the following written findings: (a) The proposed use is consistent with the General Plan land use designation for the property; (b) The proposed use will not create an undue concentration of alcohol outlets in the area, as defined by Business and Professions Code Section 23958.4; (c) The proposed use is not located within six hundred (600) feet of a Sensitive Use as defined in Section 2; (d) The proposed use will not be detrimental to the public health, safety, or general welfare of persons residing or working in the vicinity, based on evidence including, but not limited to, crime data, proximity to sensitive uses, and community input; (e) Adequate conditions of approval can be imposed to mitigate potential adverse impacts.

Section 6. Standard Conditions of Approval
All CUPs for Alcohol-Related Uses shall include, at minimum, the following conditions, in addition to any site-specific conditions imposed by the Planning Commission: (a) OFF-SALE OUTLETS: (1) Hours of alcohol sales shall not exceed 7:00 AM to 12:00 midnight daily; (2) No sale of any individual container of beer, malt beverage, or wine cooler that is refrigerated or chilled at the point of sale and contains less than 24 fluid ounces; (3) No sale of fortified wine (greater than 15% ABV) in containers of 32 ounces or less; (4) No exterior advertising of price, brand, or availability of alcoholic beverages; (5) Exterior premises shall be maintained free of litter, and permittee shall conduct a daily perimeter sweep. (b) ON-SALE OUTLETS: (1) Security 242
personnel required during hours of operation after 10:00 PM; (2) Exterior sound levels shall not exceed 65 dB at property line after 10:00 PM; (3) No patron shall be permitted to exit with an open container of alcohol. (c) ALL OUTLETS: (1) All employees who sell or serve alcohol shall hold current California RBS certification; (2) A functioning video surveillance system shall cover all entrances, the sales floor, and the adjacent parking area, with footage retained a minimum of 30 days; (3) Permittee shall post and enforce a no-loitering policy with visible signage; (4) This CUP is subject to annual review and may be revoked or modified pursuant to Section 8.

Section 7. Public Convenience or Necessity
In any case where the California Department of Alcoholic Beverage Control requires a Public Convenience or Necessity (PCN) determination, the City Council shall hold that authority. A PCN shall not be granted unless the City Council makes written findings, supported by substantial evidence in the record, that issuance of the requested license would affirmatively serve the public convenience or necessity of the community. The City Council may adopt a PCN Policy Resolution establishing criteria and procedures consistent with this Section.

Section 8. Annual Review and Revocation
Each CUP issued under this Chapter shall be subject to annual administrative review. The Planning Director may schedule a noticed hearing before the Planning Commission upon: (a) receipt of three or more verified complaints related to the permitted premises within any 12- month period; (b) documented evidence of repeated violations of any condition of approval; (c) any suspension or citation by the ABC within the preceding 12 months. Following a hearing with notice to the permittee, the Planning Commission may affirm, modify, add conditions to, or revoke the CUP. Revocation terminates the city's authorization for the ABC license.

Section 9. Nonconforming Uses — Deemed Approved Status
Any Alcohol-Related Use lawfully operating on the effective date of this Ordinance that does not conform to the requirements of Section 3 shall be considered a Deemed Approved Use and may continue to operate without a CUP, provided it complies fully with the Deemed Approved Performance Standards set forth in Section 10. Deemed Approved status is non-transferable upon change of ownership and does not run with the land. A change of ownership shall require a new CUP application under this Chapter.

Section 10. Deemed Approved Performance Standards
All Deemed Approved Uses shall comply with the following performance standards at all times:
(a) No loitering shall be permitted on the premises or within 50 feet of any entrance; permittee shall post visible no-loitering signs and actively enforce compliance; (b) The permittee shall maintain the exterior premises, sidewalks, and adjacent public areas free of litter, debris, and graffiti attributable to the establishment's patrons; (c) No sale of alcoholic beverages to any person who is visibly intoxicated; (d) All employees who sell or serve alcohol shall obtain California RBS certification within 180 days of the effective date of this Ordinance; (e) Exterior lighting shall be maintained in working order at all entrances and in all parking areas during all hours of operation; (f) Any three verified police calls for service related to the premises within a 243
12-month period shall create a rebuttable presumption of non-compliance for purposes of Section 11.

Section 11. Enforcement
(a) Any person may file a complaint with the Planning Department alleging non-compliance with this Chapter. (b) Upon receipt of a complaint, the Planning Director shall conduct an investigation and, if warranted, schedule an administrative hearing with 30 days written notice to the permittee. (c) At the hearing, the Planning Commission may impose administrative fines of up to $1,000 per day per violation, add or modify conditions, suspend operations, or revoke Deemed Approved status. (d) Revocation of Deemed Approved status or a CUP shall be reported to the California Department of Alcoholic Beverage Control within 15 business days.

VI. Implementation Roadmap
The following phased approach is recommended for the City of Banning:

Phase 1 — Immediate Actions (0–3 months)
• Direct City Attorney to draft final ordinance language based on this framework. • Pull Banning's current ABC census tract data from the ABC Licenses by Census Tract report to identify any tracts already at or over the undue concentration threshold. • Direct the Police Department to provide a crime rate analysis by reporting district to identify any areas already qualifying as 'high crime' under state standards. • Compile a current inventory of all active ABC licenses within city limits (by type and address).
• Conduct a 600-foot sensitive use buffer analysis — map all existing licenses against schools, parks, churches, and residential zones.

Phase 2 — Ordinance Adoption (3–6 months)
• Introduce and hold public hearings on both the CUP Ordinance and the Deemed Approved Ordinance.
• Adopt a PCN Policy Resolution delegating PCN authority to the City Council. • Amend the Zoning Code density standards and update the Zoning Code's commercial zone use tables to classify all alcohol-related uses as Conditional Uses. • Notify all existing Deemed Approved outlets within 90 days of adoption.

Phase 3 — Ongoing Compliance (6–12 months)
• First round of annual CUP reviews for any new permits issued after adoption. • Establish a tracking log for police calls for service to each licensed premises. 244
• Verify RBS certification compliance for all Deemed Approved outlet employees. • Report outcomes to City Council annually — number of CUPs denied, complaints filed, Deemed Approved status revocations.

VII. Key Legal Citations
• California Business & Professions Code §23790 — Zoning ordinance preemption of ABC license issuance.
• California Business & Professions Code §23958.4 — Undue concentration and high crime area definitions.
• California Business & Professions Code §23958 — Public Convenience or Necessity standard.
• California Government Code §65850 et seq. — Local zoning authority. • City of Riverside Chapter 19.450 — Alcohol Sales Ordinance (model for CUP + Deemed Approved framework).
• City of Ventura Municipal Code Chapter 24.460 — Alcohol Beverage Establishments CUP model.
• League of California Cities, 2011 Annual Conference — Liquor Stores, Bars and Conditional Use Permits.
• California ABC Licenses by Census Tract Report —
https://www.abc.ca.gov/licensing/licensing-reports/licenses-by-census-tract/ — End of Document —
This document was prepared for policy discussion purposes. The City Attorney should review and finalize all ordinance language prior to introduction before the City Council. This analysis is not legal advice.
245
2025
Alcohol Outlet Density in
California, 2023
California Department of Public Health
Substance and Addiction Prevention Branch
Confidential - Low 246
Substance and Addiction Prevention Branch (SAPB) webpage 1 Confidential - Low Table of Contents
................................................................................................ .................................................................................................................................................................................. ....................................................................................................................................................................... ..................................................................................................................................................................................... ............................................................................................... ................................................................................................ ............................................................................................................ ........................................................................................................ ...................................................................................................... .................................................................................................................. ....................................................... ................................................................................................................................................................... ............................................................................................................................................................ ................................................................................................................................................................. ....................................................................................... .............................................................................................................................................................................. ......................................................................................................................................................................... ................................................................................................................................................ ................................................................................................................ ..................................................................................................................................................................... .................................................................................................................................................................... ........................................................................................................................................ ............................................................................................................................................................................ .............................................................................................................................. ..................................................................................................................................................... ..................................................................................................................................

Background 2
Methods 3
Data Analysis 4
Results 6
Off-Premises Alcohol Outlet Density per 10,000 Residents 6 On-Premises Alcohol Outlet Density per 10,000 Residents 7 Total Alcohol Outlet Density per 10,000 Residents 8
Off-Premises Alcohol Outlet Density per Square Mile 9
On-Premises Alcohol Outlet Density per Square Mile 10
Total Alcohol Outlet Density per Square Mile 11
Comparing Alcohol Outlet Density Based on Urban-Suburban-Rural Classifications 12 Rural Counties 12
Suburban Counties 12
Urban Counties 13
Interpreting Findings Across Alcohol Outlet Density Measures 14 Discussion 15
Limitations 16
Public Health Implications 17
About the Alcohol Harms Prevention Initiative 17
Technical Notes 18
License Status 18
License Inclusion and Exclusion 18
References 19
Funding Source and Acknowledgements 20
Appendix: Tables 1, 2a-2c 21
Reference Map of California Counties 26
............................................................................. 247
Substance and Addiction Prevention Branch (SAPB) webpage 2 Confidential - Low Background
Excessive alcohol use continues to be one of the leading causes of preventable deaths in the United States, with over 178,000 deaths each year during 2020-2021. 1 During 2020-2021,
California averaged over 19,000 deaths due to excessive alcohol use per year, marking a 20% increase from the previous two years (2018-2019). These Californians that died had their lives reduced by an average of 25 years.2 In 2022, there were 573 emergency department (ED) visits per 100,000 California adults aged 18 and older due to alcohol-related causes.3 There are several strategies that
can be used to reduce excessive
alcohol use and related harms.

One such strategy is the control
of alcohol outlet density, which
refers to the number of alcohol
retailers within a defined area,
or per population.
4 The state of
California licenses and regulates
alcohol retail sales and local
communities have zoning
authority. Licenses are limited
based on the ratio of licenses to
the population within each
county. In California, the ratio is
one on-premises general license for
each 2,000 persons in the county in which the premises are situated and one off-premises general license for each 2,500 persons, according to the California Department of Alcoholic Beverage Control (ABC) website.
5 Local governmental bodies can address alcohol outlet
density through zoning regulations and ordinances, which may include conditional use permits and deemed approved ordinances.

What are Alcohol Outlets?
Alcohol outlets are establishments where alcohol
is served or purchased and may either be classified
as on- or off-premises outlets.

On-premises outlets: locations that serve alcoholic
beverages directly to their consumer, and the
beverage is consumed at that location (e.g., bars,
pubs and restaurants)
Off-premises outlets: locations that sell alcoholic
beverages to the consumer, but the beverages are
consumed away from the location (e.g., liquor
stores, grocery stores, etc.)
248
Why Should Alcohol Outlet Density
be Measured?
Current research indicates that greater
alcohol outlet density is associated with
increased alcohol use and alcohol related
harms including injury and violent crimes.

Substance and Addiction Prevention Branch (SAPB) webpage 3 Confidential - Low Research that measured various alcohol
policies and their impacts on adult
binge drinking found that alcohol outlet
density had a strong independent
association with binge drinking while
controlling for all other policies,
indicating that reducing alcohol outlet
density reduced likelihood of binge
drinking.6 Additional benefits of
reduced alcohol outlet density may
include decreases in public nuisances, loitering, and vandalism.7

The aim of this data brief is to provide stakeholders with baseline information on the concentration of alcohol outlets and how accessible alcohol is in their communities. To our knowledge, this is the first statewide alcohol outlet density analysis to be conducted in California. Several other alcohol outlet density analyses have been performed at the local level in California and in other states,8–10 which were used to inform this analysis.

Methods
The CDC Guide for Measuring Alcohol Outlet Density and the CDC Alcohol Outlet Density Surveillance Toolkit served as the framework for the statewide alcohol outlet density analysis conducted by the California Department of Public HealthSubstance and Addiction Prevention Branch (CDPH-SAPB).

There are several approaches to measuring alcohol outlet density, each has its own strengths and limitations. There is no single metric to determine what amount or level of
alcohol outlet density is dangerous or safe for the public.

Alcohol outlet density measurement and interpretation are highly relative and regional. The current analysis is a broad look at alcohol outlet density by county in California. 249
Substance and Addiction Prevention Branch (SAPB) webpage 4 Confidential - Low There are three main approaches for measuring alcohol outlet density – container-based, distance-based, and spatial access-based. Container-based counts are calculated within a set of boundaries such as census tracts, counties, or buffers around an established distance from a school or playground. Distance-based counts use minimum, mean, or median distances as measured from a specified reference point, such as a residential area or university. Spatial access-based measures may use average distances or calculate inverse distance weighting.

This analysis utilized container-based measurements that measure on- or off-premises alcohol outlet density by county using population- and area-based denominators. Strengths of using pre-defined container-based measurements such as population and area are the lower costs to perform the analysis and relative ease of calculations. Limitations include the inability to detect clustering within the county and inability to assess the directly exposed population.

Data Analysis
Data used to calculate and map alcohol
outlet density were obtained via the ABC
website. ABC provides a daily data export
available for public use that includes
information such as license types, license
status, and physical address of the
establishment. The data used for this
analysis are from March 3, 2023. Initial
data exploration and cleaning was
conducted in Excel before importing to
SAS 9.4. The physical address of the retail outlet was used to determine the location of the outlet. Outlets missing addresses were excluded from analysis.

Alcohol outlets were divided into three categories: off-premises, on-premises, and all others.

If the license was used for some other purpose (e.g., wholesalers, special events, seasonal, etc.), they were assigned to the “all others” category and were excluded from this analysis.

Categorization of on- or off-premises followed ABC’s license classifications. If establishments had multiple license types that allowed both on- and off-premises sales, the premise was counted in both categories, but was only counted as one establishment when calculating total density rates. SAS was used to sort and count by outlet type within each county. For information about the license types included for each outlet categorization in this analysis, please see the technical notes on page 18.

Credit: Getty Images
250
Substance and Addiction Prevention Branch (SAPB) webpage 5 Confidential - Low After obtaining final counts for each type of outlet in each county, measures were normalized to compare density across the state. Two rates were used to analyze container-based alcohol outlet density. The first method utilized population-based denominators using 2023 population projections obtained from the Department of Finance,11 and the second method calculated density based on the area of each county in square miles.

Quintiles were used to categorize county density rates for each measure and had fairly consistent ranges aside from the highest quintiles, which were severely skewed by outliers.

Due to heavy right skew (i.e., some counties having very high alcohol outlet density compared to other counties), median values were used in place of mean values.

In an effort to help make more equitable comparisons across counties, California State Association of Counties (CSAC) classifications were used to classify counties into urban (over 700,000 residents), suburban (over 100,000 but less than 700,000 residents), or rural areas (less than 100,000 residents).
12 CSAC designates 14 counties as urban, 17 suburban, and 27 counties as rural. Counties were stratified and compared within their own CSAC classifications to aid density rate interpretations.

Challenges and difficulties exist when interpreting alcohol outlet density results, particularly because standard metrics for comparison do not currently exist. There is not a known threshold of an alcohol outlet density level that is associated with increases in alcohol-related harm. Results can be difficult to interpret since each county has its own unique distinguishing features. For example, counties may be considered rural but be home to a university, meaning that many of the local population may not be counted as “residents” for census purposes, or a county with fewer permanent residents might be home to popular tourist destinations or ski resorts, which may make density rates difficult to interpret without the proper context. Urban counties tend to skew higher than suburban or rural counties when calculating density per square mile. Conversely, rural areas skew higher when calculating outlet density per 10,000 residents.

Fast Fact: Rural counties tend to have higher outlet density rates per 10,000 residents when compared to suburban and urban counties. 251
Substance and Addiction Prevention Branch (SAPB) webpage 6 Confidential - Low Results
Initial import of data yielded a total of 123,686 outlets that sell alcohol in California. Outlets may carry multiple types of licenses based on how and what they sell, this results in one outlet being represented several times in the dataset. Duplicate licenses were removed to ensure that each outlet is only counted one time. Duplicates accounted for 7,522 (6%) of the total records, and ‘all-other’ outlets accounted for 33,767 (27%) of the total records. After duplicate licenses and “all-other”
outlets were removed,
82,397 (67%) total onpremises and offpremises outlets (referred to as total
outlets for the
remainder of this data
brief) remained. Please
see Table 1 in Appendix
to view rates by county.

Off-Premises Alcohol
Outlet Density per
10,000 Residents
Off-premises outlets
accounted for 30,438
(37%) of the total
outlets statewide. The
median alcohol outlet
density across counties
was ten off-premises
outlets per 10,000
residents; off-premises
outlet density ranged
from a low of five (Santa
Clara County) to a high
252
Substance and Addiction Prevention Branch (SAPB) webpage 7 Confidential - Low of 69 (Alpine County) outlets per 10,000 residents. The highest off-premises density rates per 10,000 were found mainly in rural counties. Suburban counties above the median included Napa, San Luis Obispo,
Shasta, Sonoma, and
Tulare counties. No urban
counties were found to be
above the California
median. See Tables 1 and 2
in the appendix for alcohol
outlet density rates by
county.

On-Premises Alcohol
Outlet Density per 10,000
Residents
On-premises alcohol
outlets numbered 51,961
(63%), nearly double the
off-premises alcohol
outlets in the state with a
median density across
counties of 16 per 10,000
residents. On-premises
density ranged from a low
of seven per 10,000
residents (Kings County) to
a high of 147 per 10,000
residents (Alpine County).

Rural counties again
accounted for the majority of the highest density rates per 10,000 residents. A small number of suburban counties exceeded the median density, and urban counties San Francisco and San Mateo were above the median density.
253
Substance and Addiction Prevention Branch (SAPB) webpage 8 Confidential - Low Total Alcohol Outlet Density per 10,000 Residents
Overall median density across the counties was 26 per 10,000 residents. Alpine County had the highest overall density at 217 outlets per 10,000 residents, over double the density rate of the next highest county, Mono County. Kings County had the lowest overall density rate with 15 total outlets per 10,000 residents.

For nearly all counties,
on-premises outlet
density was greater than
off-premises outlet
density with Napa County
being the one notable
difference. Not only did
off-premises density
outnumber on-premises
density, the rate was
doubled at 52 offpremises outlets
compared 25 on-premises
outlets per 10,000
residents. There were 21
counties that were above
the median in both onand off-premises outlets
and included Alpine,
Amador, Calaveras,
Colusa, Del Norte,
Humboldt, Inyo, Lake,
Mariposa, Mendocino,
Modoc, Mono, Napa,
Nevada, Plumas, San Luis
Obispo, Sierra, Siskiyou,
Sonoma, Trinity, and
Tuolumne counties.

Among the 21 counties that measured above the median density rates in both on- and off254 Substance and Addiction Prevention Branch (SAPB) webpage 9 Confidential - Low premises, 18 were rural and three were suburban counties; zero urban counties measured above the median in both rates. Rural counties accounted for the highest density rates per 10,000 residents, with four of the top five counties being rural. Napa County, classified as suburban, was the one
exception.

Off-Premises Alcohol
Outlet Density per
Square Mile
Off-premises density per
square mile had a
median across the
counties of .104, which
equates to less than one
outlet per square mile, or
about one outlet every
ten miles. San Francisco
County had the highest
off-premises density at
17 outlets per square
mile. The next closest
counties to San Francisco
were Orange, Los
Angeles, Alameda, and
Sacramento counties,
with rates of three, two,
two, and one per square
mile respectively. The
lowest five counties all
had rates well under one
outlet per square mile,
with the lowest being
Inyo County at .004, or about one outlet every 250 miles. 255
Substance and Addiction Prevention Branch (SAPB) webpage 10 Confidential - Low On-Premises Alcohol
Outlet Density per Square
Mile
On-premises density per
square mile had a median
across the counties of
.142, equivalent to
approximately one outlet
every seven miles. San
Francisco County again
had an alcohol outlet
density well-above the
next closest county with a
rate of 63 outlets per
square mile, ten times
greater than Orange (6),
the second highest county
in terms of density rates
per square mile. Following
Orange County was
Alameda (3), San Mateo
(3), and Los Angeles (3)
counties. The lowest five
counties in terms of
density all had rates well
under one and included
Modoc, Inyo, Lassen,
Trinity, and Sierra
counties. The lowest counties each equate to about one outlet every 100 miles. 256
Substance and Addiction Prevention Branch (SAPB) webpage 11 Confidential - Low Total Alcohol Outlet
Density per Square Mile
The overall median
density per square mile
across counties was .269,
approximately one outlet
every four miles. The
highest county in outlet
density was San Francisco
at 79 outlets per square
mile. The next four
counties with the highest
density per square mile
were Orange (8), Alameda
(5), Los Angeles (4), and
San Mateo (4) counties.

Whereas the counties
with the highest rates per
10,000 residents were
mainly rural counties due
to lower population
counts, all five of the
counties with the highest
density rates per square
mile were urban counties.

Twenty-five counties
were found to be over the
median in both on- and off-premises alcohol outlet density per square mile and included Alameda, Butte, Contra Costa, Fresno, Los Angeles, Marin, Monterey, Napa, Orange, Placer, Riverside, Sacramento, San Diego, San Francisco, San Joaquin, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Sutter, Ventura, and Yolo counties.

Among the counties above the median for both on- and off-premises alcohol outlet density, 13 counties were urban, 11 were suburban, and Sutter County was the lone rural county. 257
Fast Fact
Urban and suburban coastal counties tend to have higher outlet density rates per square mile compared to other counties in California.

Substance and Addiction Prevention Branch (SAPB) webpage 12 Confidential - Low Comparing Alcohol Outlet Density Based on Urban-Suburban-Rural Classifications Because of the size, geographic diversity, and number of counties in California, making comparisons across counties can be difficult. To make more equitable comparisons that help provide more context, counties were stratified according to their urban-suburban-rural classification as defined by CSAC.

Rural Counties
For total density, rural counties (n=27) had a median of 35 outlets per 10,000 residents (range:
15-217), much higher than both suburban and urban counties at 26 (range: 16-75) and 19 (range: 16-41) outlets per 10,000 residents, respectively. Alpine County had the highest density per 10,000 residents among rural counties followed by Mono, Sierra, Plumas, and Inyo counties. Kings County had the lowest rate among the rural counties at 15 outlets per 10,000 residents.

Whereas rural counties had the highest alcohol outlet density per 10,000 residents, they were among the lowest density rates per square mile compared to suburban and urban counties.

Rural counties had a median of 0.07 outlets per square mile (range: 0.01-0.34), or approximately one outlet every 13 miles. El Dorado, Nevada, and Sutter Counties had the highest density per square mile among rural counties, about one outlet every three miles. Inyo County, Lassen County, and Modoc County had the lowest rates among the rural counties at about one outlet every 100 miles. Please see Appendix Table 2A for rates among rural counties.

Suburban Counties
Suburban counties (n=17) had a median of 26 outlets per 10,000 residents (range: 16-75), with Napa County being the lone outlier with a rate of 75 per 10,000 residents. San Luis Obispo (40), Sonoma (35), and Marin (30), counties also had higher density rates compared to other suburban areas. Among suburban counties, Imperial County had the lowest rate at 16 outlets per 10,000 residents.
258
Substance and Addiction Prevention Branch (SAPB) webpage 13 Confidential - Low The median density rate per square mile among suburban counties was 0.46 (range: .07 –

1.61), or about one outlet every two miles. Suburban counties had a much greater variance when looking at rates per square mile, ranging from a high of about one outlet every half mile in Santa Cruz, Marin, and Napa counties, to a low of one outlet approximately every 14 miles in Imperial County. Please see Appendix Table 2B for rates among suburban counties.

Urban Counties
Compared to suburban and rural counties, urban counties (n=14) had a much lower median density rate at 19
outlets per 10,000 residents. Outlet density in urban
counties ranged from a low of 16 (Riverside County) to a high of 41 (San Francisco County) per 10,000 residents.

Only San Francisco County had a rate greater than both
the suburban and rural county median rates. The rest of the urban counties had similar density rates with minimal variance between the counties. The difference between
Riverside County (16) and San Mateo County (23), which
had the second highest rate among urban counties, was
only seven outlets per 10,000 residents.

Median outlet density per square mile among urban
counties was much higher compared to suburban and rural counties at three outlets per square mile. Density per square mile varied in urban counties from a low of .18 outlets per square mile (San Bernardino County), to a high of 79 outlets per square mile (San Francisco).

The county with the second highest outlet density per square mile was Orange County at eight outlets per square mile. Please see Appendix Table 2C for rates among urban counties.

Credit: Getty Images
259
Substance and Addiction Prevention Branch (SAPB) webpage 14 Confidential - Low Interpreting Findings Across Alcohol Outlet Density Measures There is not a specific known outlet density level that is associated with harms. Thus, alcohol outlet density rates can be
interpreted relative to
others. We can also use
more than one
measurement approach to
present a more
comprehensive picture.

Land area calculations did
not account for
uninhabitable areas such
as large lakes, national
forests/parks, or other
wilderness areas. Urban
counties skew higher than
suburban and rural
counties when calculating
density per square mile,
whereas rural counties
tend to skew higher when
calculating density per
10,000 residents.

To better understand
alcohol outlet density in
California, density per
square mile and density
per 10,000 residents can
be examined jointly. San
Francisco, Sonoma, and
Napa counties had relatively higher rates of alcohol outlet density in both density calculations as compared to other California counties. San Francisco County is an urban county, while Sonoma and Napa are both suburban counties and are popular tourist destinations widely 260
Substance and Addiction Prevention Branch (SAPB) webpage 15 Confidential - Low known to be part of California’s wine country. No rural counties were found to be high in both density measures.

Other counties that had high alcohol outlet density rates relative to the rest of California in at least one measure, and medium rates for the second measure included: Alameda, Calaveras, Contra Costa, Marin, Placer, San Luis Obispo, Santa Cruz, and San Diego counties. Imperial County was the only county in California to have a relatively low density rate per 10,000 residents as well as a relatively low density rate per square mile based on the bivariate analysis.

Discussion
As excessive alcohol use continues to be a leading
cause of preventable deaths, measuring alcohol
outlet density is an important surveillance activity
for public health professionals. Identifying areas
that are higher in density measures relative to
other areas in the state, or other states, can help to
provide information about a key measure of
alcohol exposure in communities. Surveillance of
alcohol outlets can be used to compare rates
across the state and when paired with other
alcohol-related data can be used to identify areas to
focus excessive alcohol use prevention programs.

Fast Fact
If SoFi Stadium in Los Angeles
had the same density rate as
California per 10,000 people,
there would be 181 places that
sold alcohol in the stadium.

Rural counties had the highest rates of outlet density per 10,000 residents, followed by suburban and urban areas. Alcohol outlet density per 10,000 residents was highest in rural counties with lower population counts such as Alpine County, Mono County, and Sierra County. Napa County was the lone county in the top five in terms of highest density per 10,000 residents that is not classified as a rural county by CSAC.

Urban counties had the highest overall density rates per square mile, followed by suburban and rural areas. Density per square mile was highest in coastal urban and suburban counties, with San Francisco having the highest density at 79 outlets per square mile. In both measures, on-premises alcohol outlet density rates were consistently higher across the state compared to off-premises alcohol outlet density rates with Napa County being the primary exception. 261
Substance and Addiction Prevention Branch (SAPB) webpage 16 Confidential - Low Off-premises alcohol outlet density rates more than doubled the on-premises rates for Napa County, a trend not seen anywhere else in the state.

Overall, the findings highlight the benefit of including more than one measure when calculating alcohol outlet density. Although there is utility in using one measure, using multiple measures may help provide additional context, provide multiple indicators to assess changes over time, and make more equitable comparisons across geographic and demographically diverse areas. The most telling findings were counties that were considered high in both density rates relative to the rest of the state. When analyzing alcohol outlet density, context matters. For example, counties with large universities or military bases, may include tens of thousands of additional residents that are not accounted for in population estimates.

Accounting for non-permanent residents decreases overall density rates by inflating the population counts; however, these non-permanent residents are exposed to the alcohol outlets in that community.

Limitations
This analysis did not account for outlets across the state border in neighboring Oregon, Nevada, Arizona, or Mexico. Residents of border counties may seek to purchase alcohol in an area outside of their counties depending on availability, which is not captured in this analysis.

Another limitation is present when examining density by square mile. For example, total land area was used to calculate density per square mile, but some counties are home to large national parks, bodies of water, or other areas of uninhabited land. Inclusion of these areas may inflate the denominator and lead to underestimation of density rates in those areas. Local jurisdictions may want to examine and reconsider their area's denominators used in density calculations (i.e., population size and land area) in a more detailed analysis that is not possible at the state level.

Another limitation is that this analysis did not incorporate a hot spot analysis, which could help identify clusters of outlets at a more granular level. Even in counties with relatively low levels of density, cluster analyses may identify areas of high density that may contribute to excessive alcohol use in that community. Calculating density rates per square mile makes assumptions that outlets are evenly dispersed at intervals equal to the density rate, which is not true.

Identifying clusters would add another layer of context to better understand alcohol outlet density in each county.
262
Substance and Addiction Prevention Branch (SAPB) webpage 17 Confidential - Low Public Health Implications
Data on alcohol outlet density provides information on where density rates are higher relative to other areas, in this case other counties. This information, paired with other alcohol-related data can be used by public health practitioners, community advocates, and other stakeholders to inform strategies to reduce alcohol-related harms.

The Community Preventive Services Task Force, an independent, nonfederal body of experts that provide evidence-based recommendations, recommends limits on alcohol outlet density as one of the evidence-based strategies to reduce excessive alcohol use. Evidence suggests that a positive relationship exists between alcohol outlet density and excessive alcohol use, meaning that as alcohol outlet density increases, harms associated with excessive alcohol use also increase.3,4 This suggests that by reducing alcohol outlet density, excessive alcohol use and its associated harms may also decrease, including injury, violent crimes, public nuisance, loitering, and vandalism around alcohol-serving establishments.3,4,5 For more information about limiting alcohol outlet density, please visit the following resources:
• Community Guide – Outlet Density
• ChangeLab Solutions Outlet Density Infographic
About the Alcohol Harms Prevention Initiative
The Alcohol Harms Prevention Initiative (AHPI) raises awareness, conducts research, and provides harm reduction and education to reduce the adverse health effects of alcohol use on individuals, families and communities. AHPI collaborates with partners and stakeholders to support statewide efforts to reduce the negative health and social harms of alcohol use on the lives of Californians. To learn more about the initiative, please visit the AHPI homepage. 263
Substance and Addiction Prevention Branch (SAPB) webpage 18 Confidential - Low Technical Notes
License Status
License statuses included in the analysis were active, pending, R64B, REVPEN, surrendered, and suspended. These license statuses were included to avoid omitting outlets that are closed temporarily. R64B licenses are issued under Rule 64B of the California Code of Regulations (premise under construction and will be activated once its completed), REVPEN categorizes licenses that have not paid their renewal in the timely phase, the 50% phase, and are now in the REVPEN phase. If the licensee does not pay at the conclusion of this phase, the license will be automatically revoked and deactivated.

License Inclusion and Exclusion
Off-premises exclusion criteria included manufacturers or licenses involved in the manufacturing process, importers, brokers, warehouses or other storage, wholesalers, and any special permits including special events or non-stationary licenses. After excluding all licenses that met the criteria, License Types 20: off-sale beer and wine and 21: off-sale – general, were included for analysis.

On-premises exclusion criteria followed similar criteria. Non-stationary outlets, seasonal licenses, and any kind of special permits were excluded from consideration. Other licenses were excluded due to their ambiguous definitions and sometimes included both on- and offpremises consumption. Eleven license types were included in analyses. This included Types 23:
small beer manufacturer, 40: on-sale beer, 41: on-sale beer and wine – eating place, 42: onsale beer and wine – public premises, 47: on-sale general – eating place, 48: on-sale general – public premises, 50: on-sale general club, 51: club, 52: veteran’s club, 61: on-sale beer – public premises, and 75: brewpub-restaurant.

For this analysis, all outlets that serve alcohol to the general public were included. Some license types that were included in this analysis are not included in the California Business and Professions Code Section 23816 for the purpose of establishing limits on alcohol outlet density; therefore, alcohol outlet density rates included in this report may not align with others reported.
264
Substance and Addiction Prevention Branch (SAPB) webpage 19 Confidential - Low References

1. Esser MB, Sherk A, Liu Y, Naimi TS. Deaths from Excessive Alcohol Use - United States, 2016-2021., 2016 to 2021. MMWR Morb Mortal Wkly Rep. 2024;73(8):154-161.

Published 2024 Feb 29. doi:10.15585/mmwr.mm7308a1

2. Jimenez J, Demeter N, Pinsker E. Deaths from Excessive Alcohol Use in California, 2020- 2021. Calif Dep Public Heal. Published online 2023. Accessed April 11, 2023. www.cdph.ca.gov/sapb

3. HCAI - Department of Health Care Access and Information. Accessed March 26, 2024. https://hcai.ca.gov/

4. Preventing Excessive Alcohol Use | The Community Guide. Accessed April 18, 2023. https://www.thecommunityguide.org/topics/excessive-alcohol-consumption.html

5. Frequently Asked Questions | Alcoholic Beverage Control. Accessed March 26, 2024. https://www.abc.ca.gov/licensing/frequently-asked-questions/.

6. Xuan Z, Blanchette J, Nelson TF, Heeren T, Oussayef N. The alcohol policy environment and policy subgroups as predictors of binge drinking measures among US adults. Am J Public Health. 2015;105(4):816-822. doi:10.2105/AJPH.2014.302112

7. Task Force on Community Preventive Services T. Recommendations for Reducing Excessive Alcohol Consumption and Alcohol-Related Harms by Limiting Alcohol Outlet Density. Published online 2009. doi:10.1016/j.amepre.2009.09.021

8. Alcohol Outlet Density and Alcohol-Related Consequences. 2020. Accessed July 27, 2023. http://publichealth.lacounty.gov/sapc/MDU/SpecialReport/AODC2013.pdf

9. Colorado Alcohol Outlet Density. Colorado Department of Public Health & Environment.

Published 2022. Accessed January 8, 2023. https://cdphe.colorado.gov/alcohol-outletdensity

10. Alcohol Outlet Density Mapping Tool. Minnesota Department of Health. Published 2023.

Accessed August 9, 2023.
https://www.health.state.mn.us/communities/alcohol/data/densitymap.html

11. Population Projections. Department of Finance. Published 2023. Accessed August 9, 2023. https://dof.ca.gov/forecasting/demographics/projections/

12. California State Association of Counties. Accessed May 30, 2023. https://www.counties.org/
265
Substance and Addiction Prevention Branch (SAPB) webpage 20 Confidential - Low Funding Source and Acknowledgements
Suggested Citation
Alcohol Outlet Density in California, 2023. Sacramento, CA: California Department of Public Health, March 2025.

Funding Source
This data brief was supported by the Centers for Disease Control and Prevention (CDC) of the U.S.

Department of Health and Human Services (HHS) as part of a financial assistance award totaling $500,001 with 100 percent funded by CDC/HHS. The contents are those of the author(s) and do not necessarily represent the official views of, nor an endorsement, by CDC/HHS, or the U.S.

Government.

Acknowledgements
Thank you to the CDC Alcohol Program Lead, Dr. Marissa Esser, for her guidance and support during the creation of this analysis, and the group of state epidemiologists supported by CDC-RFADP21-2105 for their expertise and technical assistance in this alcohol outlet density analysis. Thank you to Vicky Rayle and the CDC Public Health Associate Program (PHAP) for their support and mentorship.
266
Substance and Addiction Prevention Branch (SAPB) webpage 21 Confidential - Low Appendix: Tables 1, 2a-2c
Table 1. Median Alcohol Outlet Density Rates by County, 2023 OffPremises
per 10k
OnPremises
per 10k
Total
Density
per 10k
OffPremises
per
Square
Mile
OnPremises
per
Square
Mile
Total
Density per
Square Mile
UrbanSuburban-Rural
Classification
California 9.76 16.26 25.80 0.10 0.15 0.27
Alameda 6.54 14.10 20.40 1.51 3.24 4.70 Urban
Alpine 69.32 147.31 216.64 0.01 0.02 0.03 Rural
Amador 13.83 28.70 42.01 0.09 0.18 0.27 Rural
Butte 9.62 13.25 22.66 0.13 0.19 0.32 Suburban
Calaveras 13.12 25.78 38.44 0.06 0.11 0.17 Rural
Colusa 18.29 17.42 35.28 0.03 0.03 0.07 Rural
Contra Costa 5.93 11.08 16.80 0.98 1.82 2.76 Urban
Del Norte 12.71 16.82 27.66 0.03 0.04 0.07 Rural
El Dorado 9.21 21.29 30.08 0.10 0.24 0.34 Rural
Fresno 9.35 9.17 18.44 0.16 0.16 0.32 Urban
Glenn 13.31 15.70 28.66 0.03 0.04 0.06 Rural
Humboldt 11.85 21.70 32.80 0.04 0.08 0.12 Rural
Imperial 8.79 7.35 15.89 0.04 0.03 0.07 Suburban
Inyo 20.45 38.13 57.48 0.00 0.01 0.01 Rural
Kern 9.59 9.87 19.40 0.11 0.11 0.22 Suburban
Kings 8.71 6.54 15.19 0.10 0.07 0.17 Rural
Lake 14.35 18.09 32.13 0.07 0.09 0.16 Rural
Lassen 13.12 11.10 23.89 0.01 0.01 0.02 Rural
Los Angeles 6.44 10.91 17.20 1.62 2.75 4.33 Urban
Madera 9.85 8.69 18.36 0.08 0.07 0.14 Rural
Marin 9.24 21.51 30.05 0.46 1.07 1.49 Suburban
Mariposa 14.27 22.62 35.39 0.02 0.03 0.04 Rural
Mendocino 18.54 25.77 42.73 0.05 0.07 0.11 Rural
Merced 9.22 8.30 17.35 0.14 0.13 0.26 Suburban
Modoc 25.60 24.53 45.86 0.01 0.01 0.01 Rural
Mono 33.74 68.92 100.51 0.02 0.03 0.05 Rural
Monterey 9.75 17.14 26.33 0.13 0.23 0.35 Suburban
Napa 51.55 25.03 75.29 0.96 0.47 1.41 Suburban
Nevada 9.85 21.84 30.88 0.10 0.22 0.32 Rural
267
Substance and Addiction Prevention Branch (SAPB) webpage 22 Confidential - Low Orange 6.19 13.43 19.36 2.52 5.48 7.90 Urban
Placer 7.92 18.29 25.72 0.23 0.53 0.74 Suburban
Plumas 26.87 47.95 71.67 0.02 0.04 0.05 Rural
Riverside 6.37 9.30 15.57 0.22 0.33 0.55 Urban
Sacramento 6.69 12.40 18.81 1.10 2.04 3.09 Urban
San Benito 8.00 14.39 22.06 0.04 0.06 0.10 Rural
San Bernardino 7.49 8.41 15.83 0.08 0.09 0.18 Urban
San Diego 6.63 14.05 20.53 0.53 1.13 1.65 Urban
San Francisco 8.65 33.04 41.03 16.62 63.45 78.79 Urban
San Joaquin 8.59 9.09 17.52 0.49 0.52 1.00 Urban
San Luis
Obispo 12.31 27.78 39.60 0.10 0.24 0.34 Suburban
San Mateo 6.24 17.59 23.43 1.09 3.06 4.08 Urban
Santa Barbara 9.70 19.61 29.05 0.16 0.33 0.49 Suburban
Santa Clara 5.18 13.13 18.07 0.80 2.04 2.80 Urban
Santa Cruz 8.59 17.76 25.88 0.53 1.11 1.61 Suburban
Shasta 12.26 15.19 26.89 0.06 0.07 0.13 Suburban
Sierra 35.70 48.69 77.90 0.01 0.02 0.03 Rural
Siskiyou 19.27 25.54 43.89 0.01 0.02 0.03 Rural
Solano 7.75 10.54 18.18 0.43 0.58 1.00 Suburban
Sonoma 15.72 20.18 35.41 0.50 0.65 1.14 Suburban
Stanislaus 9.45 11.01 20.20 0.36 0.42 0.77 Suburban
Sutter 9.77 10.37 19.94 0.16 0.17 0.33 Rural
Tehama 12.62 11.38 23.69 0.03 0.02 0.05 Rural
Trinity 25.17 31.28 51.87 0.01 0.01 0.02 Rural
Tulare 10.07 8.27 18.31 0.10 0.08 0.19 Suburban
Tuolumne 14.14 23.24 36.80 0.03 0.05 0.09 Rural
Ventura 7.67 12.24 19.69 0.36 0.57 0.91 Urban
Yolo 7.80 12.52 20.06 0.18 0.28 0.46 Suburban
Yuba 11.87 8.72 20.34 0.15 0.11 0.26 Rural
Note: Bold values denote rate greater than median
268
Substance and Addiction Prevention Branch (SAPB) webpage 23 Confidential - Low Table 2A. Median Alcohol Outlet Density Rates by Rural Classification, 2023 OffPremises
per 10k
OnPremises
per 10k
Total
Density
per 10k
OffPremises
per
Square
Mile
OnPremises
per
Square
Mile
Total
Density per
Square Mile

Rural
Counties 13.83 21.84 35.28 0.03 0.04 0.07
Alpine 69.32 147.31 216.64 0.01 0.02 0.03
Amador 13.83 28.70 42.01 0.09 0.18 0.27
Calaveras 13.12 25.78 38.44 0.06 0.11 0.17
Colusa 18.29 17.42 35.28 0.03 0.03 0.07
Del Norte 12.71 16.82 27.66 0.03 0.04 0.07
El Dorado 9.21 21.29 30.08 0.10 0.24 0.34
Glenn 13.31 15.70 28.66 0.03 0.04 0.06
Humboldt 11.85 21.70 32.80 0.04 0.08 0.12
Inyo 20.45 38.13 57.48 0.00 0.01 0.01
Kings 8.71 6.54 15.19 0.10 0.07 0.17
Lake 14.35 18.09 32.13 0.07 0.09 0.16
Lassen 13.12 11.10 23.89 0.01 0.01 0.02
Madera 9.85 8.69 18.36 0.08 0.07 0.14
Mariposa 14.27 22.62 35.39 0.02 0.03 0.04
Mendocino 18.54 25.77 42.73 0.05 0.07 0.11
Modoc 25.60 24.53 45.86 0.01 0.01 0.01
Mono 33.74 68.92 100.51 0.02 0.03 0.05
Nevada 9.85 21.84 30.88 0.10 0.22 0.32
Plumas 26.87 47.95 71.67 0.02 0.04 0.05
San Benito 8.00 14.39 22.06 0.04 0.06 0.10
Sierra 35.70 48.69 77.90 0.01 0.02 0.03
Siskiyou 19.27 25.54 43.89 0.01 0.02 0.03
Sutter 9.77 10.37 19.94 0.16 0.17 0.33
Tehama 12.62 11.38 23.69 0.03 0.02 0.05
Trinity 25.17 31.28 51.87 0.01 0.01 0.02
Tuolumne 14.14 23.24 36.80 0.03 0.05 0.09
Yuba 11.87 8.72 20.34 0.15 0.11 0.26
Note: Bold values denote rate greater than median
269
Substance and Addiction Prevention Branch (SAPB) webpage 24 Confidential - Low Table 2B. Median Alcohol Outlet Density Rates by Suburban Classification, 2023 OffPremises
per 10k
OnPremises
per 10k
Total
Density
per 10k
OffPremises
per
Square
Mile
OnPremises
per
Square
Mile
Total
Density per
Square Mile
Suburb na
Counties 9.59 15.19 25.72 0.16 0.28 0.46
Butte 9.62 13.25 22.66 0.13 0.19 0.32
Imperial 8.79 7.35 15.89 0.04 0.03 0.07
Kern 9.59 9.87 19.40 0.11 0.11 0.22
Marin 9.24 21.51 30.05 0.46 1.07 1.49
Merced 9.22 8.30 17.35 0.14 0.13 0.26
Monterey 9.75 17.14 26.33 0.13 0.23 0.35
Napa 51.55 25.03 75.29 0.96 0.47 1.41
Placer 7.92 18.29 25.72 0.23 0.53 0.74
San Luis
Obispo 12.31 27.78 39.60 0.10 0.24 0.34
Santa Barbara 9.70 19.61 29.05 0.16 0.33 0.49
Santa Cruz 8.59 17.76 25.88 0.53 1.11 1.61
Shasta 12.26 15.19 26.89 0.06 0.07 0.13
Solano 7.75 10.54 18.18 0.43 0.58 1.00
Sonoma 15.72 20.18 35.41 0.50 0.65 1.14
Stanislaus 9.45 11.01 20.20 0.36 0.42 0.77
Tulare 10.07 8.27 18.31 0.10 0.08 0.19
Yolo 7.80 12.52 20.06 0.18 0.28 0.46
Note: Bold values denote rate greater than median

270
Substance and Addiction Prevention Branch (SAPB) webpage 25 Confidential - Low Table 2C. Median Alcohol Outlet Density Rates by Urban Classification, 2023 OffPremises
per 10k
OnPremises
per 10k
Total
Density
per 10k
OffPremises
per
Square
Mile
OnPremises
per
Square
Mile
Total
Density per
Square Mile
Urban
Counties 6.59 12.32 18.63 0.89 1.93 2.78
Alameda 6.54 14.10 20.40 1.51 3.24 4.70
Contra Costa 5.93 11.08 16.80 0.98 1.82 2.76
Fresno 9.35 9.17 18.44 0.16 0.16 0.32
Los Angeles 6.44 10.91 17.20 1.62 2.75 4.33
Orange 6.19 13.43 19.36 2.52 5.48 7.90
Riverside 6.37 9.30 15.57 0.22 0.33 0.55
Sacramento 6.69 12.40 18.81 1.10 2.04 3.09
San Bernardino 7.49 8.41 15.83 0.08 0.09 0.18
San Diego 6.63 14.05 20.53 0.53 1.13 1.65
San Francisco 8.65 33.04 41.03 16.62 63.45 78.79
San Joaquin 8.59 9.09 17.52 0.49 0.52 1.00
San Mateo 6.24 17.59 23.43 1.09 3.06 4.08
Santa Clara 5.18 13.13 18.07 0.80 2.04 2.80
Ventura 7.67 12.24 19.69 0.36 0.57 0.91
Note: Values in bold denote rate greater than median
271
26 Confidential - Low
Reference Map of California Counties
Substance and Addiction Prevention Branch (SAPB) webpage 272

DEEP DIVE
Safer Alcohol Sales Policies
Where and how alcohol is sold plays an important role in family safety. Neighborhoods that have fewer alcohol stores experience significantly less crime. When communities have smart policies and practices around alcohol sales, we keep everyone safer — and physically and mentally healthier — by reducing excessive drinking and related violence.

The Alcohol and Violence Challenge
• Alcohol is responsible for approximately 178,000 deaths per year in the U.S., including more than 7,000 homicides.
1 • Neighborhoods with high concentrations of alcohol sales are linked to an increase in individual drinking habits — including young people binge drinking2 — and higher rates of violence3-5 and driving under the influence.6
• Multiple studies have found that more homicides, aggravated assaults, sexual assaults, and robberies are committed in areas with more alcohol outlets. 3-5
• Alcohol outlets are more likely to be located in low-income neighborhoods, despite the fact that alcohol consumption rises with income, and in majority non-white communities.7
A Healthy Solution: Safer Alcohol Sales
• Reduces violence — By limiting the density of alcohol outlets, research suggests that cities can reduce alcohol-related violence8 and binge drinking.2,9 • Falls within city authority — Most cities have the authority to limit, suspend, revoke, or deny liquor or business licenses that can affect the number and location of outlets that sell alcohol. Cities can also use other local powers (such as zoning) to affect a wide range of service practices and activities in or near alcohol outlets. • Makes communities safer — By taking straightforward actions, such as limiting hours and days during which alcohol sales are permitted or requiring minimum distances between alcohol outlets and sensitive land uses (like schools and parks), cities can help make neighborhoods safer for everyone.
273

DEEP DIVE
2 What is the Evidence that Safer Alcohol Sales Can Improve Health? • The Community Preventive Services Task Force, the CDC’s expert advisory group on what works best in public health, found strong evidence that limiting alcohol outlet density, often done through local powers such as zoning and licensing, can reduce excessive alcohol consumption and related harms.10
• When Atlanta policymakers intentionally decreased the availability of alcohol in the city’s Buckhead neighborhood by 3% from 2003 to 2007, researchers compared the outcomes to those in similar Atlanta neighborhoods. While overall crime went down across the city, Buckhead’s drop in crime was two times greater than the decrease in comparable neighborhoods.
8 • Reducing opening hours among the most common type of alcohol outlet in one neighborhood of Baltimore led to an immediate 14% drop in violent crime and a 29% annual decrease in violent crime, compared to similar neighborhoods in the city.11 How Can Safer Alcohol Sales Policies Help Address Health Disparities? • Multiple studies have found that, despite the fact that alcohol consumption rises with income,12,13 alcohol outlets are more likely to be located in low-income neighborhoods and in neighborhoods whose residents are predominantly people of color.14-17 • Researchers have explored a variety of explanations for why alcohol outlets are clustered in certain neighborhoods, and the reason that stands out statistically is the long history of racially discriminatory lending practices – known as redlining – by private and public lenders that stigmatized neighborhoods of color and subjected them to decades of disinvestment.7,18
• Conversely, reducing the number of alcohol outlets in these neighborhoods could lessen the level of risk residents face from violence on a daily basis, as was found in the Atlanta and Baltimore studies.
8,11
What Are Some Future Issues to Consider?
The role of alcohol in health and safety is often overlooked. Alcohol is the drug most commonly used by young people,19 and on average each year, almost 4,000 people under 21 die because of alcohol use.1 Many cities already have substantial alcohol-related laws on their books, and dedicated funding for enforcement of such laws has been shown to make them more effective in reducing related problems.20 Cities can also take action to restrict alcohol advertising on billboards and retail establishments within their borders, as numerous long-term studies have linked exposure to alcohol marketing with a greater likelihood of underage drinking.21,22 Finally, the U.S. Surgeon General and the CDC’s Hi-5 Initiative,23,24 which identifies cost-effective policies proven to improve community health within five years, both recommend increased 274

DEEP DIVE
3 taxes on alcohol as an evidence-based strategy to improve public safety and reduce the risks associated with alcohol abuse and misuse. Some U.S. cities already have the authority to institute higher excise taxes as a means to discourage excessive alcohol consumption, especially among underage youth.25
Resources for Cities
United States Surgeon General’s Advisory on Alcohol and Cancer Risk:
https://www.hhs.gov/surgeongeneral/reports-and-publications/alcohol-cancer/index.html Strategizer 55 - Regulating alcohol outlet density: An action guide. Alexandria: Community for Anti-Drug Coalitions of America (CADCA); Center on Alcohol Marketing and Youth (CAMY), Johns Hopkins Bloomberg School of Public Health; 2011.
https://wwwapp.bumc.bu.edu/BEDAC_Camy/_docs/resources/reports/alcoholavailability/strategizer-55-regulating-alcohol-outlet-density.pdf ChangeLab Solutions. Alcohol Outlet Density; An evidence-based strategy to reduce alcohol consumption and related harms. https://www.changelabsolutions.org/product/alcohol-outletdensity ChangeLab Solutions. Status of Local Authority to Regulate Alcohol Outlet Density. https://www.changelabsolutions.org/product/status-local-authority-regulate-alcohol-outletdensity Center on Alcohol Marketing and Youth. Preemption Tool: What can my community do about alcohol outlets?
https://wwwapp.bumc.bu.edu/BEDAC_Camy/ResearchToPractice/Place/AlcoholOutletDensity/ PreemptionDataTool
References

1. Centers for Disease Control and Prevention. Alcohol-Related Disease Impact (ARDI) Application. Centers for Disease Control and Prevention. Accessed March 3, 2024. https://nccd.cdc.gov/DPH_ARDI/default/default.aspx.

2. Fairman BJ, Goldstein RB, Simons-Morton BG, et al. Neighbourhood context and binge drinking from adolescence into early adulthood in a US national cohort. International Journal of Epidemiology. 2019;doi:10.1093/ije/dyz133.

3. Franklin FA, Laveist TA, Webster DW, Pan WK. Alcohol outlets and violent crime in Washington D.C. Western Journal of Emergency Medicine. 2010;11(3):283-290.

4. Toomey TL, Erickson DJ, Carlin BP, et al. The association between density of alcohol establishments and violent crime within urban neighborhoods. Alcoholism: Clinical and Experimental Research. 2012;36(8):1468-1473.

5. Han D, Gorman DM. Exploring Spatial Associations between On-Sale Alcohol Availability, Neighborhood Population Characteristics, and Violent Crime in a Geographically Isolated City.

Journal of addiction. 2013;2013:356152. doi:10.1155/2013/356152.

6. Lipton R, Ponicki WR, Gruenewald PJ, Gaidus A. Space–Time Analyses of Alcohol Outlets and Related Motor Vehicle Crashes: Associations at City and Census Block-Group Levels. 275

DEEP DIVE
4 Alcoholism: Clinical and Experimental Research. 2018;42(6):1113-1121. doi:10.1111/acer.13758.

7. Lee JP, Ponicki W, Mair C, Gruenewald P, Ghanem L. What explains the concentration of off-premise alcohol outlets in Black neighborhoods? SSM Popul Health. Dec 2020;12:100669. doi:10.1016/j.ssmph.2020.100669.

8. Zhang X, Hatcher B, Clarkson L, et al. Changes in density of on-premises alcohol outlets and impact on violent crime, Atlanta, Georgia, 1997-2007. Preventing Chronic Disease. 2015;12(5)doi:10.5888/pcd12.140317.

9. Xuan Z, Blanchette J, Nelson TF, Heeren TC, Oussayef N, Naimi TS. The alcohol policy environment and policy subgroups as predictors of binge drinking measures among US adults.

American Journal of Public Health. 2015;105(4):816-822.

10. Campbell CA, Hahn RA, Elder R, et al. The effectiveness of limiting alcohol outlet density as a means of reducing excessive alcohol consumption and alcohol-related harms. American Journal of Preventive Medicine. 2009;37(6):556-559.

11. Rosen EM, Trangenstein PJ, Fullem PL, Yeh JC, Jernigan DH, Xuan Z. Interrupted Time Series Analysis of Bar/Tavern Closing Hours and Violent Crime. JAMA Intern Med. Apr 1 2024;doi:10.1001/jamainternmed.2024.0255.

12. Lines SR, Marroquin A, Corbett S, Sergeant J, Choi W, Faseru B. Factors associated with binge drinking-Findings from 2019 Kansas behavioral risk factor surveillance system. Subst Abus. 2022;43(1):949-955. doi:10.1080/08897077.2022.2060437.

13. Bohm MK, Liu Y, Esser MB, et al. Binge Drinking Among Adults, by Select Characteristics and State - United States, 2018. MMWR Morb Mortal Wkly Rep. Oct 15 2021;70(41):1441-1446. doi:10.15585/mmwr.mm7041a2.

14. LaVeist TA, Wallace JMJ. Health risk and inequitable distribution of liquor stores in African American neighborhoods. Social Science and Medicine. 2000;51:613-617.

15. Berke EM, Tanski SE, Demidenko E, Alford-Teaster J, Shi X, Sargent JD. Alcohol retail density and demographic predictors of health disparities: A geographic analysis. American Journal of Public Health. 2010;100(10):1967-1971.

16. Gorman DM, Speer PW. The concentration of liquor outlets in an economically disadvantaged city in the northeastern United States. Subst Use Misuse. Dec 1997;32(14):2033-

46. 17. Romley JA, Cohen D, Ringel J, Sturm R. Alcohol and environmental justice: the density of liquor stores and bars in urban neighborhoods in the United States. J Stud Alcohol Drugs. Jan 2007;68(1):48-55. doi:10.15288/jsad.2007.68.48.

18. Trangenstein PJ, Gray C, Rossheim ME, Sadler R, Jernigan DH. Alcohol outlet clusters and population disparities. Journal of Urban Health. 2020;97(1):123-136.

19. Centers for Disease Control and Prevention. Youth On-line: High School YRBS. Centers for Disease Control and Prevention. Accessed December 18, 2024. https://nccd.cdc.gov/Youthonline/App/Default.aspx.

20. Elder RW, B. L, Janes G, et al. Enhanced enforcement of laws prohibiting sale of alcohol to minors: systematic review of effectiveness for reducing sales and underage drinking.

Transportation Research E-Circular. 2007;(E-C123):181-8. 276

DEEP DIVE
5 21. Jernigan D, Noel J, Landon J, Thornton N, Lobstein T. Alcohol marketing and youth alcohol consumption: a systematic review of longitudinal studies published since 2008.

Addiction. Aug 26 2017;112:7-20. doi:10.1111/add.13591.

22. Sargent JD, Babor TF. The Relationship Between Exposure to Alcohol Marketing and Underage Drinking Is Causal. J Stud Alcohol Drugs Suppl. Mar 2020;Sup 19(Suppl 19):113-124. doi:10.15288/jsads.2020.s19.113.

23. U.S. Department of Health and Human Services (HHS) Office of the Surgeon General.

Facing Addiction in America: The Surgeon General’s Report on Alcohol, Drugs, and Health. 2016.

Accessed September 21, 2017. https://addiction.surgeongeneral.gov/.

24. Centers for Disease Control and Prevention. Health Impact in 5 Years. Centers for Disease Control and Prevention. Accessed November 21, 2020. https://www.cdc.gov/policy/hst/hi5.

25. Mosher JF, Adler SS, Pamukcu AM, Treffers RD. Review of State Laws Restricting Local Authority to Impose Alcohol Taxes in the United States. Journal of studies on alcohol and drugs. 2017;78(2):241-248. doi:10.15288/jsad.2017.78.241.
277
Safer Alcohol Sales
Everyone deserves the
opportunity to live a healthy,
full life — but not everyone
in our country has an equal
opportunity to achieve this.

CityHealth, an initiative of the
de Beaumont Foundation and
Kaiser Permanente, promotes
a package of tried and tested
policies that ensure all people
in our largest cities have access
to healthy choices.

Together, with visionary city
leaders, we can make sure
that all people have access to
a safe place to live, a healthy
body and mind, and a thriving
environment. Policy solutions
like Safer Alcohol Sales can
help make communities safer
and resolve critical health
disparities — now and decades
down the road.

Where and how alcohol is sold plays an important role in family safety.

Neighborhoods that have fewer alcohol stores experience significantly less crime. When communities have smart policies and practices around alcohol sales, we keep everyone safer — and physically and mentally healthier — by reducing excessive drinking and related violence.

THE ALCOHOL AND VIOLENCE CHALLENGE
❚ Alcohol is responsible for nearly 100,000 deaths per year in the U.S.

According to the CDC, the largest categories of alcohol-related deaths are liver disease, cancer, heart disease, motor vehicle crashes, poisoning, suicide, and homicide.
❚ Neighborhoods with high concentrations of alcohol sales are linked to an increase in individual drinking habits — including young people binge drinking — and higher rates of violence and driving under the influence. ❚ Multiple studies have found that more homicides, aggravated assaults, sexual assaults, and robberies are committed in areas with more alcohol outlets, even after accounting for other neighborhood characteristics, such as structural disadvantage and gang violence.
❚ Alcohol outlets are more likely to be located in low-income neighborhoods, despite that fact that alcohol consumption rises with income, and in majority non-white communities.

A HEALTHY SOLUTION: SAFER ALCOHOL SALES
❚ Reduces Violence — By limiting the density of alcohol outlets, research suggests that cities can reduce alcohol-related violence and binge drinking. ❚ Falls Within City Authority — Most cities have the authority to limit, suspend, revoke, or deny liquor or business licenses that can affect the number and location of outlets that sell alcohol. Cities can also use other local powers (such as zoning) to affect a wide range of service practices and activities in or near alcohol outlets.
❚ Makes Communities Safer — By taking straightforward actions, such as limiting hours and days during which alcohol sales are permitted or requiring minimum distances between alcohol outlets and sensitive land uses (like schools and parks), cities can help make neighborhoods safer for everyone.

POLICY BRIEF
278
CityHealth, an initiative of the de Beaumont Foundation and Kaiser Permanente, works to advance a package of tried and tested policy solutions that ensure all people in our largest cities have access to healthy choices. Together with visionary city leaders, CityHealth helps cities adopt policies that can make their communities healthy and resolve critical health disparities — now and decades down the road. Learn more at cityhealth.org.

Going For Gold
CityHealth annually rates Safer Alcohol Sales policies in cities with criteria that set the “gold standard” in each policy area. These criteria were developed with input from national experts, are backed by evidence, and work to reduce or remove systemic barriers to health equity. Medals are awarded to cities that meet the elements necessary for the best quality policy (gold), a good quality policy (silver), and a passable quality policy (bronze). Cities with no policy, or that don’t meet the minimum threshold for a bronze medal, receive no medal.

SAFER ALCOHOL SALES MEDAL CRITERIA Silver Gold

1. City has a law that applies to all alcohol sales, addresses public health and safety, and authorizes the city to close an alcohol retailer for failing to comply with the law.

2. City has a law that applies to some alcohol sales (such as only new retailers, or only retailers selling for off-premises consumption including grocery or convenience stores),
addresses public health and safety, and authorizes the city to close an alcohol retailer for failing to comply with the law.

NOTE: Safer Alcohol Sales only has gold and silver medal criteria.

ATLANTA

REDUCES

VIOLENCE

WITH SAFER

ALCOHOL
SALES
From 2003 to 2007,
Atlanta took advantage
of its significant local
control over alcohol
outlets to intentionally
decrease the number
of both on- and offpremises outlets in its
Buckhead neighborhood
by 3%. In a peerreviewed study that
compared crime in
Buckhead to similar
Atlanta neighborhoods,
Buckhead experienced
a drop in crime that
was two times greater
than the decrease
in comparable
neighborhoods.
279
280
Blue Zones Project – Banning
Banning, CA 92220
Subject: Letter of Support for Tobacco and Alcohol Policies To Whom It May Concern,
On behalf of the City of Banning Youth Council, we are honored to express our support for the Blue Zones Project’s efforts to create healthier, safer, and stronger communities through its proposed tobacco and alcohol policies.

As youth leaders in our city, we see firsthand the importance of fostering environments that protect young people and encourage healthy decision-making. The presence and accessibility of tobacco and alcohol have long-term impacts on youth development, community safety, and overall well-being. By implementing policies that provide education, reduce exposure and limit access, Banning is taking a proactive step toward building a future where young people can thrive.

The Youth Council believes that these policies not only align with the mission of the Blue Zones Project but also reflect the values of our city—prioritizing health, safety, and opportunity for every generation. We are committed to standing alongside community leaders, organizations, and residents in supporting measures that reduce preventable harm and promote healthier lifestyles.

We thank the Blue Zones Project for its leadership in this area and look forward to working together to ensure Banning continues to be a place where youth and families can live, grow, and succeed in a healthy and positive environment.

Sincerely,
_______________________ __________________________
Malia Lopez Luana Patterson
Chairperson Vice Chairperson
City of Banning Youth Council
Faith Banuelos
Amaya Diaz
Maya Geronimo
Kal-El Hernandez
Sara McDermott
Josue Sanchez Omana
Docusign Envelope ID: 527D5E7E-09CC-4A4D-BD6A-717BC876BB7F 281 494

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director Art Vela, Director of Public Works
MEETING DATE: September 22, 2026
SUBJECT: Consideration of Resolution 2026-04 UA Awarding a Construction Contract to Mehta Mechanical Company, Inc. in the Amount of $5,350,000 for the Wastewater Treatment Plant Equalization Basin Project and Approving a 10% Construction Contingency for a Total Authorization of $5,885,000 and approving the budget appropriation as listed in the Fiscal Impact section of this report.

STAFF RECOMMENDATION:

Adopt Resolution 2026-04 UA
BACKGROUND:

On June 9, 2020, the City Council awarded a Professional Services Agreement to Albert A. Webb Associates (WEBB) for the design of the Wastewater Treatment Plant (WWTP) Equalization Basin. The original concept included two connected basins: one to equalize normal daily wastewater flows and provide steadier flow through the treatment process, and a second to capture excess flows during rain events and other high-flow conditions.

As the project advanced, the City pursued design modifications intended to reduce construction costs while maintaining the operational objectives of the Equalization Basin Project. The redesign reduced the size of one cast-in-place concrete basin that will house the submersible pumps. The second basin was redesigned to use a High-Density Polyethylene (HDPE) liner instead of a cast-in-place concrete liner.

These changes were incorporated into the final plans and specifications to provide a more cost-effective approach to the construction project.

The project is now ready to proceed to construction. The proposed improvements will provide the WWTP with additional flow equalization and storage capacity to better manage peak and wet-weather flows and improve overall plant operational flexibility.

After completing the plans and specifications, the City competitively solicited bids for construction of the WWTP Equalization Basin Project. The City received five (5) bids, as summarized below; MMC submitted the lowest bid at $5,350,000. After reviewing the bids, staff determined MMC to be the lowest responsible and responsive bidder and recommends awarding the construction contract to MMC.

Rank Bidder Bid Amount
1 Mehta Mechanical Company, Inc.
(MMC)
$5,350,000
282
2 Pacific Hydrotech Corporation $5,555,200
3 GSE Construction Company $6,136,136
4 Pyramid Building & Engineering $6,341,816
5 Environmental Construction $6,995,452
JUSTIFICATION:

During prolonged and intense rain events, the WWTP experiences substantial increases in influent flow.

The Equalization Basin Project is intended to provide additional storage and flow equalization so excess flows can be contained and returned to the treatment process in a controlled manner. The project will also improve operational flexibility during high-flow events, plant shutdowns, and other conditions that can temporarily affect treatment capacity.

Awarding the construction contract to MMC, as the lowest responsible and responsive bidder, will allow the City to proceed with construction of this much-needed WWTP improvement.

FISCAL IMPACT:

The recommended construction contract with MMC is $5,350,000. A 10% construction contingency of $535,000 is recommended to address unforeseen conditions and necessary construction changes, resulting in a total construction authorization of $5,885,000.

The project will be funded through Wastewater Operations Fund 680 and Wastewater Development Impact Fund 681. An appropriation in the amount of $3,125,000 is required from Fund 680 and $2,760,000 from Fund 681. The City has also received a $1,250,000 grant through the U.S.

Environmental Protection Agency's Community Grants Program, which will be applied toward eligible project construction costs on a reimbursement basis. Utility rates and development impact fees will fund the balance of construction costs. Staff requests budget appropriations associated with this project as follows:

General Ledger Account
No.

Account Description
Budget Amount
Requested
680-8000-347.34-29 REVENUE FROM FEDERAL / EPA GRANT $1,250,000 680-8000-454-95.12

SPECIAL UTILITY CAP ITEMS / TREATMENT

PLANT IMPROV
$3,125,000
681-8000-454-95.12

SPECIAL UTILITY CAP ITEMS / TREATMENT

PLANT IMPROV
$2,760,000
There is no impact to the General Fund associated with this item.

ATTACHMENTS:

1. Resolution_2026-04_UA_JT_edits.docx

2. Contract No C01299 - Mehta Mechanical Company Inc - WWTP Equalization Basin.pdf 283
Resolution 2026-04 UA

RESOLUTION 2026-04 UA

A RESOLUTION OF THE UTILITY AUTHORITY OF THE CITY OF BANNING, CALIFORNIA, AWARDING A CONSTRUCTION CONTRACT TO MEHTA MECHANICAL COMPANY, INC.

FOR THE WASTEWATER TREATMENT PLANT EQUALIZATION BASIN PROJECT IN THE AMOUNT OF $5,350,000 AND APPROVING A 10% CONSTRUCTION CONTINGENCY FOR A TOTAL AUTHORIZATION OF $5,885,000, AND APPROVING BUDGET APPROPRIATIONS

NECESSARY FOR THE PROJECT
WHEREAS, on June 9, 2020, the City Council awarded a Professional Services Agreement to Albert A. Webb Associates (WEBB) for the design of the Wastewater Treatment Plant (WWTP) Equalization Basin Project, which includes facilities to equalize normal daily wastewater flows and capture excess flows during rain events and other high-flow conditions; and WHEREAS, as the project advanced, the City pursued design modifications intended to reduce construction costs while maintaining the operational objectives of the Equalization Basin Project, including reducing the size of one cast-in-place concrete basin that will house the submersible pumps and redesigning the second basin to utilize a High-Density Polyethylene (HDPE) in lieu of a cast-in-place concrete liner; and
WHEREAS, the proposed improvements will provide the WWTP with additional flow equalization and storage capacity to better manage peak and wet-weather flows, allow excess flows to be contained and returned to the treatment process in a controlled manner, and improve overall plant operational flexibility; and
WHEREAS, following completion of the plans and specifications, the City competitively solicited bids for construction of the WWTP Equalization Basin Project and received five (5) bids, with Mehta Mechanical Company, Inc. (MMC) submitting the lowest bid in the amount of $5,350,000; and
WHEREAS, following review of the bids, City staff determined MMC to be the lowest responsible and responsive bidder and recommends award of the construction contract to MMC in the amount of $5,350,000; and
WHEREAS, a 10% construction contingency in the amount of $535,000 is recommended to address unforeseen conditions and necessary construction changes, resulting in a total construction authorization of $5,885,000; and
WHEREAS, the project will be funded through Wastewater Operations Fund 680 and Wastewater Development Impact Fund 681, and an expenditure appropriation of $3,125,000 is required in General Ledger Account 680-8000-454.95.12 and $2,760,000 in Account 681-8000- 454.95-12; and
WHEREAS, the City has received a $1.25 million grant through the U.S. Environmental Protection Agency Community Grants Program, which will be applied toward eligible project construction costs on a reimbursement basis, and a revenue budget appropriation is necessary in Account 680-8000-347.34-29 for $1,250,000; and
WHEREAS, there is no impact to the General Fund associated with this item. 284
Resolution 2026-04 UA

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

SECTION 1. The Utility Authority hereby awards a construction contract to Mehta Mechanical Company, Inc., as the lowest responsible and responsive bidder, in the amount of $5,350,000 for construction of the Wastewater Treatment Plant Equalization Basin Project.

SECTION 2. The Utility Authority approves a 10% construction contingency in the amount of $535,000, for a total construction authorization of $5,885,000.

SECTION 3. The City Manager, or designee, is authorized to execute the construction contract with Mehta Mechanical Company, Inc., together with any non-substantive modifications approved by the City Attorney, and to approve change orders within the approved construction contingency.

SECTION 4. The City Manager, or designee, is authorized to make the necessary budget adjustments, appropriations, and transfers related to this Resolution, including any additional appropriation required in the FY 2026/2027 budget.

SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions.

PASSED, APPROVED AND ADOPTED this 22nd day of September, 2026.

Richard Royce, Mayor
Banning Utility Authority
ATTEST:

Sandra Calderon, Secretary
Banning Utility Authority
APPROVED AS TO FORM:

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
285
Resolution 2026-04 UA

CERTIFICATION:

I, Sandra Calderone, Secretary of the Banning Utility Authority, do hereby certify that the foregoing Resolution 2026-04 UA, was duly adopted by the Utility Authority of the City of Banning, California, at a regular meeting thereof held on the 22nd day of September, 2026 by the following vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

Sandra Calderon, Secretary
Banning Utility Authority
286
Resolution 2026-04 UA

EXHIBIT A
Construction Contract with Mehta Mechanical Company, Inc. for the Wastewater Treatment Plant Equalization Basin Project
287
C-1
CONTRACT (C01299)

CITY OF BANNING CONTRACT FOR
WASTEWATER TREATMENT PLANT EQUALIZATION BASIN (IFB 26-126) THIS CONTRACT (“Contract”) is made and entered this , (“Effective Date”), by and between the CITY OF BANNING, a California municipal corporation (“City”) and Mehta Mechanical Company, Inc. DBA MMC, Inc., a California corporation (“Contractor”). Contractor’s California State Contractor’s license number is 573635; Class A, B, C-61/D21,C11, and HAZ.

Contractor’s DIR registration number is 1000013675.

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

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

2. Scope of Services. Contractor shall perform the Work in a good and workmanlike manner for the project identified as WASTEWATER TREATMENT PLANT EQUALIZATION BASIN (IFB 26-126) (“Project”), as described in this Contract and in the Contract Documents.

3. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a not to exceed amount of Five Million Three Hundred Fifty Thousand Dollars ($5,350,000.00) in accordance with the prices as submitted in the Bid.

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

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

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

7. Workers’ Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the 288
C-2
provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”

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

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

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

11. Federal Grant Requirements. This Project is funded in whole or in part by a grant from the United States Environmental Protection Agency (“EPA”) under the Community Grants Program.

Contractor agrees that all Work performed under this Contract shall comply with all applicable federal statutes, regulations, and requirements, including but not limited to:
(a) 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards);
(b) 2 CFR Part 1500 (EPA-specific requirements);
(c) 40 CFR Part 33 (Disadvantaged Business Enterprise requirements); (d) All applicable EPA grant terms and conditions (https://www.epa.gov/grants/epa-generalterms-and-conditions-effective-october-1-2024-or-later); (e) All applicable federal cross-cutting requirements.

Contractor shall ensure that all such requirements are included in all subcontracts and lower-tier agreements and shall be responsible for ensuring compliance by all subcontractors and suppliers.

In the event of a conflict between federal requirements and this Contract, the more stringent requirement shall apply.

12. Davis-Bacon and Related Acts. The Project is subject to the Davis-Bacon and Related Acts (“DBRA”). Contractor shall comply with all applicable federal labor standards, including but not limited to the Davis-Bacon Act, the Copeland “Anti-Kickback” Act, and the Contract Work Hours and Safety Standards Act. Contractor shall include the applicable federal wage determinations in all solicitations and contracts and shall comply with all requirements of 29 CFR Parts 1, 3, and 5.
289
C-3
The following provision is incorporated herein and shall be included in all contracts and subcontracts:
“By accepting this contract, the contractor acknowledges and agrees to the terms provided in the DBRA Requirements for Contractors and Subcontractors Under EPA Grants.” Contractor shall be responsible for ensuring compliance with DBRA requirements by all subcontractors and for providing all required payroll records and documentation.

13. American Iron and Steel and Build America, Buy America. Contractor shall comply with all applicable American Iron and Steel (“AIS”) and Build America, Buy America (“BABA”) requirements. All iron, steel, manufactured products, and construction materials incorporated into the Project shall be produced in the United States, unless a waiver is granted by the EPA. “Produced in the United States” means that all manufacturing processes, including initial melting and final coating, occurred in the United States. Contractor shall provide documentation and certifications demonstrating compliance with AIS and BABA requirements upon request by the City or EPA. Contractor shall ensure that all subcontractors and suppliers comply with these requirements.

14. Federal Procurement Compliance. Contractor acknowledges that this Project is subject to federal procurement requirements. Contractor shall cooperate with the City in ensuring compliance with all applicable procurement standards, including but not limited to:
(a) Full and open competition requirements under 2 CFR 200.319; (b) Cost and price analysis requirements under 2 CFR 200.324; (c) Documentation requirements for procurement actions.

15. Certification Regarding Lobbying. Certification Regarding Lobbying (EPA Form 6600-06) is attached hereto as Exhibit “B” and incorporated herein by this reference. Contractor shall execute and comply with all requirements of said certification and shall include the required certification language in all subcontracts and subawards.

16. Entire Agreement. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.

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

18. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. 290
C-4
IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.

CITY OF BANNING
By:

City Manager Date
ATTEST: APPROVED AS TO FORM:

By: By:

Deputy City Clerk Date City Attorney Date
City Council Approval:
(“CONTRACTOR”)
By:

Name: Date
Title:

By:

Name: Date
Title:
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Bond No. __________

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Banning (“City”), State of California, has awarded to

(“Principal”)

(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

(Project name)
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and

(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of

Dollars ($ ), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. 292
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The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)

“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
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Bond No. __________

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Banning (“City”), has awarded to

(“Principal”)

(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

(Project name)
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

,

(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of

Dollars ($ ), this amount being not less than the
total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California 294
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Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its
By:

Its
(Seal)

“Surety”
By:

Its
By:

Its
(Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
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WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE
WHEREAS, the City of Banning (“City”) has required certain insurance to be provided by:

NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time:

1. This certificate is issued to:

City of Banning
City Hall
_______________________________
______________, California ________
The insureds under such policy or policies are:

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date

By:

Its Authorized Representative
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ADDITIONAL INSURED ENDORSEMENT

COMPREHENSIVE GENERAL LIABILITY
Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Banning (“City”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 297
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8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to City at:

City Manager
City of Banning
City Hall
_____________________________
______________, California _______

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability
□ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
□ General Liability Endorsement □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: if none,
so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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ADDITIONAL INSURED ENDORSEMENT

AUTOMOBILE LIABILITY
Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Banning (“City”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 299
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8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to City at:

City Manager
City of Banning
City Hall
____________________________
___________, California _______

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages Includes:
□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on ______________ at 12:01 a.m. and forms a part of Policy Number _________.

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
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ADDITIONAL INSURED ENDORSEMENT

EXCESS LIABILITY
Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Banning (“City”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought, except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to City, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds. 301
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8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to City at:

City Manager
City of Banning
City Hall
_________________________________
_______________, California ________

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

□ Following Form
□ Umbrella Liability
□

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NUMBER AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:

13. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

14. This is an □ occurrence or □ claims made policy (check one).

15. This endorsement is effective on ________ at 12:01 a.m. and forms a part of Policy Number ________.

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I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
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GENERAL PROVISIONS
SECTION 0. GENERAL PROVISIONS DEFINED
0-1 STANDARD SPECIFICATIONS
The 2024 edition of “Standard Specifications for Public Works Construction” (“Standard Specifications”), as amended by the Contract Documents, is incorporated into the Contract Documents by this reference. The Work described herein shall be done in accordance with the provisions of the Standard Specifications, as amended by the Contract Documents. 0-2 NUMBERING OF SECTIONS
The number of sections and subsections in these General Provisions are compatible with the numbering in the Standard Specifications.
0-3 SUPPLEMENTATION OF STANDARD SPECIFICATIONS
The Sections that follow supplement, but do not replace, the corresponding provisions in Part 1 (General Provisions) of the Standard Specifications, except as otherwise indicated herein. In the event of any conflict between the Standard Specifications and these General Provisions, these General Provisions shall control.

SECTION 1. GENERAL, TERMS, DEFINITIONS, ABBREVIATIONS, UNITS OF MEASURE,

AND SYMBOLS
1-2 TERMS AND DEFINITIONS
Whenever in the Standard Specifications or in the Contract Documents the following terms are used, they shall be understood to mean the following:

Agency – The City of Banning.

Board – The City Council of the City of Banning.

Contract Documents – As defined in Standard Specifications Section 1-2, but also including these General Provisions.

Engineer – The City Engineer, acting either directly or through properly authorized agents. Such agents shall act within the scope of the particular duties entrusted to them.

Inspector – An authorized representative of the City, assigned by the City to make inspections of Work performed by or materials supplied by the Contractor.

Laboratory – A laboratory authorized by the City to test materials and Work involved in the Contract.

Notice of Completion – The notice authorized by Civil Code Section 9204.

Project – See Work.
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Submittal – Any drawing, calculation, specification, product data, samples, manuals, requests for substitutes, spare parts, photographs, survey data, traffic control plans, record drawings, Bonds or similar items required to be submitted to the City under the terms of the Contract.
1-3.3 Institutions
The institutions listed in Section 1-3.3 of Part 1 of the Standard Specifications shall be supplemented by the list below:

Abbreviation Word or Words
AAN ................................................................................... American Association of Nurserymen AGCA ....................................................................... Associated General Contractors of America APWA ................................................................................... American Public Works Association CRSI ..................................................................................... Concrete Reinforcing Steel Institute CSI ........................................................................................ Construction Specifications Institute NEC ........................................................................................................... National Electric Code NFPA .................................................................................... National Fire Protection Association SSS ........................................................................... State of California Standard Specifications, Latest edition, Department of Transportation
SSP ....................................................................................... State of California Standard Plans, Latest edition, Department of Transportation
1-7.2 CONTRACT BONDS
The Faithful Performance Bond shall remain in force until the date of recordation of the Notice of Completion and the end of all warranty periods set forth in the Contract Documents. The Material and Labor Bond shall remain in force until expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and until the expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2.

All Bonds must be submitted using the required forms, which are in the Contract Documents, or on any other form approved by the City Attorney.

SECTION 2. SCOPE OF THE WORK

2.2 PERMITS
Before starting any construction work, the Contractor will be required to obtain all necessary permits from the City, which may include obtaining a no fee encroachment permit for Work within the public right-of-way, as well as all other permits required from all other agencies. Should this Project require construction of trenches or excavations which are five (5) feet or deeper and into which a person is required to descend, the Contractor shall obtain a Cal/OSHA permit and furnish the City with a copy before Work can commence on this Project. Contractor shall bear all cost for fees for all agencies except for the City’s permit fees. 305
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2.4 COOPERATION AND COLLATERAL WORK
The Contractor shall be responsible for coordinating all Work with the City’s street sweeping, trash pick-up, and street maintenance contractors, emergency services departments, utility companies’ crews, and others when necessary. Payment for conforming to these requirements shall be included in other items of Work, and no additional payment shall be made thereof. 2-5.4 Haul Routes. The Contractor must obtain the City Engineer’s approval before using any haul routes. Haul routes that are not consistent with approved City truck route must be approved by the City Engineer.
2-7 CHANGES INITIATED BY THE AGENCY
2-7.1 General.

The City reserves the right, without notice to the Surety, to increase or decrease the quantity of any item or portion of the Work described in the Contract Documents or to alter or omit portions of the Work so described, as may be deemed necessary or expedient by the City Engineer, without in any way making the Contract void. Such increases, alterations or decreases of Work shall be considered and treated as though originally contracted for, and shall be subject to all the terms, conditions and provisions of the original Contract. The Contractor shall not claim or bring suit for damages, whether for loss of profits or otherwise, on account of any decrease, alteration or omission of any kind of Work to be done. Any increase, decrease, alteration, or omission of Work shall be authorized by a written Change Order or written directive of the City Engineer issued in accordance with Section 2-8 of the Contract Documents. 2-8 EXTRA WORK
New and unforeseen work will be classified as Extra Work only when the Work is not covered and cannot be paid for under any of the various items or combination of items for which a Bid price appears on the Bid. The Contractor shall not do any Extra Work except upon written order from the City Engineer.

SECTION 3. CONTROL OF THE WORK
3-1 ASSIGNMENT
Any purported assignment without written consent of the City shall be null, void, and of no effect, and the Contractor shall hold harmless, defend and indemnify the City and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from or relating to any unauthorized assignment.

If the City opts to consent to assignment, the City’s consent shall be contingent upon: (1) a letter from the Surety agreeing to the assignment and assigning all of the Bonds to the assignee without any reduction, or the assignee supplying all new Bonds in the amounts originally required under the Contract Documents; and (2) the assignee supplying all of the required insurance in the amounts required in the Contract Documents. Until the Surety assigns all of the Bonds or the assignee supplies all of the new Bonds, and until the assignee supplies all of the required insurance, an assignment otherwise consented to in writing by the City shall not be effective.

Even if the City consents to assignment, no assignment shall relieve the Contractor of liability under the Contract.
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3-5 INSPECTION
The Contractor shall arrange and pay for all off-site inspection of the Work required by any ordinance or governing authorities. The Contractor shall also arrange and pay for other inspections, including tests in connection therewith, as may be assigned or required.

3.7 CONTRACT DOCUMENTS
3-7.1 General
In addition to the requirements under Section 3-7.1 in the Standard Specifications, the Contractor shall maintain a control set of Plans and Specifications on the Project site at all times. All final locations determined in the field, and any deviations from the Plans and Specifications, shall be marked in red on the control set to show the as-built conditions. This control set of Plans shall also be edited for all Addenda, Requests for Information, Change Orders, field changes not involving cost, and any other variation that occurred during construction. Upon completion of all Work, the Contractor shall return the control set to the City Engineer. Final payment will not be made until this requirement is met.

Where a work feature is shown on the drawings or identified in the Specifications but is not specifically indicated as an item in the Bid sheets, and there is no ambiguity regarding the requirement to construct, install, or construct and install that work feature, the Contractor is required to complete the work feature. All costs to the Contractor for constructing, installing, or both constructing and installing such a work feature shall be included in the Bid. 3-7.2 Precedence of the Contract Documents
With regard to Section 3-7.2 in the Standard Specifications, the General Provisions shall control over the Special Provisions, and the Notice Inviting Bids and Instructions to Bidders (in that order) shall control over the Bid, such that the order of precedence shall be as follows:

1. Permits issued by regulatory agencies with jurisdiction.

2. Change Orders and Supplemental Agreements, whichever occurs last.

3. Contract/Agreement.

4. Addenda.

5. Notice Inviting Bids.

6. Instructions to Bidders.

7. Bid/Proposal.

8. General Provisions.

9. Special Provisions.

10. Plans.

11. Standard Plans.

12. Standard Specifications.

13. Reference Specifications.
3-9 SUBSURFACE DATA
If the City or its consultants have made investigations of subsurface conditions in areas where the Work is to be performed, such investigations shall be deemed made only for the purpose of study and design. If a geotechnical or other report has been prepared for the Project, the Contractor may inspect the records pertaining to such investigations subject to and upon the 307
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conditions hereinafter set forth. The inspection of the records shall be made in the office of the City Engineer. It is the Contractor’s sole responsibility to determine whether such investigations exist, and the City makes no affirmative or negative representation concerning the existence of such investigations.

The records of any such investigations are made available solely for the convenience of the Contractor. It is expressly understood and agreed that the City, the City Engineer, their agents, consultants or employees assume no responsibility whatsoever with respect to the sufficiency or accuracy of any investigations, the records thereof, and the interpretations set forth therein. No warranty or guarantee is expressed or implied that the conditions indicated by any such investigations or records are representative of those existing in the Project area. The Contractor agrees to make such independent investigations and examination as necessary to be satisfied of the conditions to be encountered in the performance of the Work.

The Contractor represents that it has studied the Plans, Specifications and other Contract Documents, and all surveys and investigation reports of subsurface and latent physical conditions, has made such additional surveys and investigations as necessary for the performance of the Work at the Contract Price in accordance with the requirements of the Contract Documents, and that it has correlated the results of all such data with the requirements of the Contract Documents.

No claim of any kind shall be made or allowed for any error, omission or claimed error or omission, in whole or in part, of any geotechnical exploration or any other report or data furnished or not furnished by the City.
3-10 SURVEYING
3-10.1 General
The Contractor shall verify all dimensions on the drawings and shall report to the City any discrepancies before proceeding with related Work. The Contractor shall perform all survey and layout Work per the benchmark information on the Project Plans. All surveying Work must conform to the Professional Land Surveyors’ Act (Business and Professions Code Section 8700 et seq). All Project surveying notes and “cut-sheets” are to be provided to the City after the completion of each surveying activity and all final surveying notes shall be provided before final payment to the Contractor.

Construction stakes shall be set and stationed by Contractor at its expense. Unless otherwise indicated in the Special Provisions, surveying costs shall be included in the price of items Bid. No separate payment will be made. Re-staking and replacement of construction survey markers damaged as a result of the Work, vandalism, or accident shall be at the Contractor’s expense. 3-11 CONTRACT INFORMATION SIGNS
The names, addresses and specialties of the Contractor, Subcontractors, architects or engineers may not be displayed on any signage within the public right-of-way. This signage prohibition includes advertising banners hung from truck beds or other equipment. Contractor shall cooperate with the City in complying with EPA signage and public awareness requirements, including providing information and assistance as necessary for the installation of signage or dissemination of public information regarding the Project.
3-12 WORKSITE MAINTENANCE
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3-12.1 General.

Clean-up shall be done as Work progresses at the end of each day and thoroughly before weekends. The Contractor shall not allow the Work site to become littered with trash and waste material, but shall maintain the same in a neat and orderly condition throughout the construction operation. Materials which need to be disposed shall not be stored at the Project site, but shall be removed by the end of each Working Day. If the job site is not cleaned to the satisfaction of the City Engineer, the cleaning will be done or contracted by the City and shall be back-charged to the Contractor and deducted from the Contract Price.

If, in the opinion of the City Engineer, the condition of the Work site presents a risk to public safety, traffic flow, drainage, stormwater compliance, or adjacent public or private property, the City may immediately perform or cause to be performed such clean-up as is necessary, without prior notice to the Contractor, and all associated costs shall be back-charged to the Contractor and deducted from the Contract Price.

The Contractor shall promptly remove from the vicinity of the completed Work, all rubbish, debris, unused materials, concrete forms, construction equipment, and temporary structures and facilities used during construction. Final acceptance of the Work by the City will be withheld until the Contractor has satisfactorily complied with the foregoing requirements for final clean-up of the Project site.

3.12.4 Storage of Equipment and Materials.
3-12.4.1 General
The Contractor shall make arrangements for storing its equipment and materials. The Contractor shall make its own arrangements for any necessary off-site storage or shop areas necessary for the proper execution of the Work. Approved areas within Work site may be used for temporary storage; however, the Contractor shall be responsible for obtaining any necessary permits from the City. In any case, the Contractor’s equipment and personal vehicles of the Contractor’s employees shall not be parked on the traveled way or on any section where traffic is restricted at any time.

The Contractor shall deliver, handle, and store materials in accordance with the manufacturer’s written recommendations and by methods and means that will prevent damage, deterioration, and loss including theft. Delivery schedules shall be controlled to minimize long-term storage of products at the Project site and overcrowding of construction spaces. In particular, the Contractor shall provide delivery and installation coordination to ensure minimum holding or storage times for materials recognized to be flammable, hazardous, easily damaged, or sensitive to deterioration, theft, and other sources of loss.

Storage shall be arranged to provide access for inspection. The Contractor shall periodically inspect to assure materials are undamaged and are maintained under required conditions.

All costs associated with the clean-up and storage required to complete the Project shall be the sole responsibility of the Contractor.
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3-12.4.2 Storage in Public Streets
The first sentence of Section 3-12.4.2 shall not be incorporated and shall instead be replaced with the following:

Construction materials and equipment shall not be stored in Streets, roads, or highways unless otherwise specified in the Special Provisions or approved by the City Engineer. 3-13 COMPLETION, ACCEPTANCE, AND WARRANTY
3-13.1 Completion.

The Contractor shall complete all Work under the Contract within three hundred and sixty-five (365) Calendar Days from the Notice to Proceed or as specified in writing by the City Engineer. 3-13.2 Acceptance
The Project will not be considered complete and ready for City Council direction to staff regarding recordation of the Notice of Completion until all required Work is completed, the Work site is cleaned up in accordance with Section 3-12 of Part 1 of the Standard Specifications and the Special Provisions, and all of the following items have been received by the City Engineer:

1. A form of Notice of Completion, with all information required by the California Civil Code;

2. All written guarantees and warranties;

3. Evidence that the Performance Bond has been extended and will remain in effect for the period specified in Section 1-7.2 of the Standard Specifications, as modified by these General Provisions;

4. All “as-builts”;

5. Duplicate copies of all operating instructions and manufacturer’s operating catalogs and data, together with such field instructions as necessary to fully instruct City personnel in correct operation and maintenance procedures for all equipment installed listed under the electrical, air conditioning, heating, ventilating and other trades. This data and instructions shall be furnished for all equipment requiring periodic adjustments, maintenance or other operation procedures.

The Contractor shall allow at least seven (7) Working Days’ notice for final inspection. Such notice shall be submitted to the City Engineer in writing. 3-13.3 Warranty
For the purposes of the calculation of the start of the warranty period, the Work shall be deemed to be completed upon the date of recordation of the Notice of Completion. If that direction is contingent on the completion of any items remaining on a punchlist, the Work shall be deemed to be completed upon the date of the City Engineer’s acceptance of the final item(s) on that punchlist.

The Contractor shall repair or replace defective materials and workmanship as required in this Section 3-13.3 at its own expense. Additionally, the Contractor agrees to defend, indemnify and 310
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hold the City harmless from claims of any kind arising from damage, injury or death due to such defects.

The parties agree that no certificate given shall be conclusive evidence of the faithful performance of the Contract, either in whole or in part, and that no payment shall be construed to be in acceptance of any defective Work or improper materials. Further, the certificate or final payment shall not terminate the Contractor’s obligations under the warranty herein. The Contractor agrees that payment of the amount due under the Contract and the adjustments and payments due for any Work done in accordance with any alterations of the same, shall release the City, the City Council and its officers and employees from any and all claims or liability on account of Work performed under the Contract or any alteration thereof.

SECTION 4. CONTROL OF MATERIALS
4-1 GENERAL
The Contractor and all Subcontractors, suppliers, and vendors shall guarantee that the Work will meet all requirements of this Contract as to the quality of materials, equipment, and workmanship. 4-4 TESTING
Except as elsewhere specified, the City shall bear the cost of testing materials and workmanship that meet or exceed the requirements indicated in the Standard Specifications and the Special Provisions. The cost of all other tests, including the retesting of material or workmanship that fails to pass the first test, shall be borne by the Contractor. 4-6 TRADE NAMES
If the Contractor requests to substitute an equivalent item for a brand or trade name item, the burden of proof as to the comparative quality and suitability of alternative equipment or articles or materials shall be upon the Contractor, and the Contractor shall furnish, at its own expense, all information necessary or related thereto as required by the City Engineer. All requests for substitution shall be submitted, together with all documentation necessary for the City Engineer to determine equivalence, no later than five (5) Days after the award of Contract, unless a different deadline is listed in the Special Provisions.

SECTION 5. LEGAL RELATIONS AND RESPONSIBILITIES
5-3 LABOR
5-3.1 Public Work
The Contractor acknowledges that the Project is a “public work” as defined in Labor Code Section 1720 et seq. (“Chapter 1”), and that this Project is subject to (a) Chapter 1, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the Director of Industrial Relations (“DIR”) implementing such statutes. The Contractor shall perform all Work on the Project as a public work. The Contractor shall comply with and be bound by all the terms, rules and regulations described in (a) and (b) as though set forth in full herein. 311
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5-3.2 Copies of Wage Rates
Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Project are on file at City Hall and will be made available to any interested party on request. By initiating any Work, the Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and the Contractor shall post such rates at each job site covered by these Contract Documents.

The Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty paid to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to these Contract Documents by the Contractor or by any Subcontractor.

In addition to state prevailing wage requirements, Contractor shall comply with all applicable federal wage determination requirements under the Davis-Bacon Act. Contractor shall ensure that the correct federal wage determinations are incorporated into all bid solicitations, contracts, and subcontracts in accordance with 29 CFR 1.6.
5-3.3 Payroll Records
The Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires the Contractor and each Subcontractor to (1) keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the City of the location of the records. The Contractor has ten (10) days in which to comply subsequent to receipt of a written notice requesting these records, or as a penalty to the City, the Contractor shall forfeit one hundred dollars ($100) for each Day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due.

The Contractor and each Subcontractor shall comply with and be bound by the provisions of Labor Code Section 1771.4(a)(3), which requires that each Contractor and each Subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner at least monthly, in a format prescribed by the Labor Commissioner.
5-3.4 Hours of Labor
The Contractor acknowledges that eight (8) hours labor constitutes a legal day’s work. The Contractor shall comply with and be bound by Labor Code Section 1810. The Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty paid to the City, forfeit twentyfive dollars ($25) for each worker employed in the performance of this Project by the Contractor or by any Subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code Section 1815, work performed by employees of the Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted 312
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upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half (1-1/2) times the basic rate of pay. 5-3.5 Apprentices
The Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. The Contractor shall be responsible for compliance with these Sections for all apprenticeable occupations. Before commencing Work on this Project, the Contractor shall provide the City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) Days after concluding Work, Contractor and each of its Subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Contract.
5-3.6 Debarment or Suspension
The Contractor shall not perform Work with any Subcontractor that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or State law providing for the debarment of contractors from public works. The Contractor and Subcontractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or State law providing for the debarment of contractors from public works. If the Contractor or any Subcontractor becomes debarred or suspended during the duration of the Project, the Contractor shall immediately notify the City. 5-3.7 Registration with the DIR
In accordance with Labor Code Sections 1725.5 and 1771.1, no contractor or subcontractor shall be qualified to Bid on, be listed in a Bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to Section 1725.5. 5-3.8 Compliance Monitoring and Posting Job Sites
This Project is subject to compliance monitoring and enforcement by the DIR. The Contractor shall post job site notices, as prescribed by regulation. 5-3.9 Subcontractors
For every Subcontractor who will perform Work on the Project, the Contractor shall be responsible for such Subcontractor’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and the Contractor shall include in the written Contract between it and each Subcontractor a copy of the provisions in this Section 5-3 of the General Provisions and a requirement that each Subcontractor shall comply with those provisions. The Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure Subcontractor’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the Subcontractor and upon becoming aware of the failure of the Subcontractor to pay its workers the specified prevailing rate of wages. The Contractor shall diligently take corrective action to halt or rectify any failure.

Contractor shall include all applicable federal requirements in every subcontract, including but not 313
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limited to:
(a) Davis-Bacon and Related Acts requirements;
(b) American Iron and Steel requirements;
(c) Build America, Buy America requirements;
(d) Federal procurement requirements under 2 CFR Part 200; (e) Certification Regarding Lobbying requirements;
(f) All applicable EPA grant terms and conditions.

Contractor shall be responsible for ensuring compliance by all subcontractors at every tier. 5-3.10 Prevailing Wage Indemnity
To the maximum extent permitted by law, the Contractor shall indemnify, hold harmless and defend (at the Contractor’s expense with counsel reasonably acceptable to the City) the City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed in Section 5-3 of the General Provisions by any Person (including the Contractor, its Subcontractors, and each of their officials, officers, employees and agents) in connection with any Work undertaken or in connection with the Contract Documents, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of the Contractor under this Section 5-3.10 shall survive expiration or termination of the Contract. 5-4 INSURANCE
5-4.1 General
Prior to the beginning of and throughout the duration of the Project, Contractor and its subcontractors shall maintain insurance in conformance with the requirements set forth in this Section 5-4. Contractor may use existing coverage to comply with these requirements; provided, however, that if such existing coverage does not meet the requirements set forth herein, Contractor shall amend, supplement, or endorse such coverage to do so.

Contractor acknowledges that the insurance coverage and policy limits set forth in this Section 5- 4 constitute the minimum amount of coverage required. Any available insurance proceeds in excess of the minimum limits and coverage identified in the Contract Documents that are applicable to a given loss, claim, or demand shall be available to the City.

The insurance provisions of this Contract shall not be construed to limit the Contractor’s indemnity obligations contained elsewhere in the Contract Documents. 5-4.2 Types of Insurance
Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this 314
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Agreement, policies of insurance of the type and amounts described below and, in a form, satisfactory to City:
a. Commercial General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and $2,000,000 completed operations aggregate.

The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. b. Automobile liability insurance. Contractor shall maintain 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 Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $2,000,000 combined single limit for each accident. c. Umbrella or excess liability insurance. If Contractor is using umbrella coverage to meet part of its liability insurance requirements under Paragraph a of this Section, Contractor shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury, completed operations and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.
d. Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers. e. Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $2,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy 315
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shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.
f. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. 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 subcontractors, 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. The City, its officials, officers, agents, and employees, shall be included as insureds under the policy.
g. Builder’s risk insurance. Upon commencement of construction and with approval of City, Contractor shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the City has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below.

The named insureds shall be Contractor and City, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to City. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the City. The City will act as a fiduciary for all other interests in the Project.

Policy shall be provided for replacement value on an “all risk” basis for the completed value of the project, as adjusted from time to time to reflect the actual replacement cost of the Work. Builder’s Risk coverage shall also include, but not limited to, coverage for damage to existing structures, utilities, equipment, process systems, piping, electrical systems, and other real or personal property located at or forming part of the City’s existing wastewater treatment plant facilities to the extent such damage arises out of or relates to the Work. Coverage shall not exclude losses arising from flooding, surface water intrusion, sewer backup or surcharge, groundwater intrusion, excavation, dewatering, vibration, collapse, underground utility damage, temporary shutdowns, contamination events, bypass system failures, or impairment of ongoing wastewater treatment operations caused by construction activities. Such insurance shall respond regardless of whether Contractor is independently obligated under the Contract Documents to repair or replace damaged property. Contractor shall be solely responsible for payment of any deductibles or selfinsured retentions applicable to Builder’s Risk claims. Coverage limits and sublimits shall be sufficient to address repair, restoration, replacement, and operational recovery costs associated with damage to active wastewater treatment infrastructure and related facilities, including all water-intrusion related losses.

There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with 316
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sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to City to ensure adequacy of terms and sublimits and shall be submitted to the City prior to commencement of construction.
5-4.2.1 Additional Insureds
The City, its elected and appointed officials, officers, employees, attorneys, agents, volunteers, and independent contractors in the role of City officials, shall be the insured or named as additional insureds covering the Work, regardless of any inconsistent statement in the policy or any subsequent endorsement, whether liability is attributable to the Contractor or the City. Such additional insured status shall apply to all general liability policies and any umbrella or excess liability policies maintained by the Contractor. Coverage provided by the Contractor shall be primary and noncontributing with respect to any insurance or self-insurance maintained by the City, and any insurance or self-insurance maintained by the City shall not contribute to the Contractor’s insurance coverage.

The insurance maintained by Contractor shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability, and the policies shall not contain any cross-liability exclusions. 5-4.2.2 No Limitation on Indemnity
The insurance provisions shall not be construed to limit the Contractor’s indemnity obligations contained in these Contract Documents. Requirements of specific coverage features or limits contained in this Section 5-4 are not intended as a limitation on coverage, limits, or other requirements, or as a waiver of any coverage normally provided by insurance. 5-4.2.3 Replacement Insurance
The Contractor agrees that it will not cancel, reduce, materially modify, or allow to lapse any required insurance coverage during the term of the Contract. Contractor shall maintain insurance against claims for injuries to persons or damages to property arising out of or in connection with the performance of the Work by Contractor, its agents, representatives, employees, or subcontractors, for the duration of the Contract and for so long thereafter as there remains a statutory exposure for completed operations claims.

If Contractor does not keep the required insurance in full force and effect, and such insurance is available at a reasonable cost, the City may obtain the necessary insurance and pay the premium thereon, and repayment thereof shall be deemed an obligation of Contractor. The cost of such insurance may, at the option of the City, be deducted from payments due Contractor. This remedy shall be in addition to all other legal rights and remedies available to the City. 5-4.2.4 Certificates of Insurance with Original Endorsements The Contractor shall submit to the City certificates of insurance with the original endorsements, both of which reference the same policy number, for each of the insurance policies that meet the insurance requirements, not less than one (1) day before beginning of performance under the Contract. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. Endorsements may be executed on the City’s standard forms titled 317
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“Additional Insured Endorsement,” copies of which are provided in the Contract Documents, or on any other form that contains substantially the same terms and is approved by the City’s Risk Manager. In any case, the endorsements must specifically name the City of Banning and its elected and appointed officials, officers, employees, attorneys, agents, volunteers, and independent contractors in the role of City officials as insureds or additional insureds. Contractor shall also provide a waiver of subrogation endorsement in favor of the City for workers’ compensation coverage. Current insurance certificates and endorsements shall be kept on file with the City at all times during the term of this Contract. The City reserves the right to require complete, certified copies of all required insurance policies at any time. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing. 5-4.2.5 Subcontractors
The Contractor shall require each of its Subcontractors that perform Services under the Contract to maintain insurance coverage that meets all of the requirements of this Section 5-4. Contractor shall monitor and review all such insurance coverage and shall be fully responsible for ensuring compliance by all Subcontractors and lower-tier subcontractors. Upon request by the City, Contractor shall provide copies of agreements with Subcontractors demonstrating compliance with the insurance requirements contained herein.
5-4.2.6 Waiver of Subrogation
All insurance coverage maintained or procured pursuant to the Contract shall be endorsed to waive subrogation against the City, its elected and appointed officials, officers, employees, agents, volunteers, and independent contractors serving in the role of City officials, or shall specifically permit Contractor to waive rights of recovery prior to loss.

Contractor hereby waives its own right of recovery against the City and shall require similar written waivers from its insurers and Subcontractors.
5-4.2.7 Acceptable Insurers
All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s risk manager. 5-4.2.8 Notice of Cancellation
Contractor shall require its insurers to provide the City with not less than thirty (30) Days’ written notice of cancellation or nonrenewal of any required coverage, except that ten (10) Days’ notice shall apply for cancellation due to nonpayment of premium. 5-4.5 Insurance Requirements not Limiting
If the Contractor maintains broader coverage and/or higher limits than the minimums required in this Section 5-4, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. No representation is 318
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made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of the Contractor under this Contract. The City reserves the right, upon reasonable written notice, to require reasonable modifications to insurance requirements during the term of the Contract if determined necessary by the City’s Risk Manager.

5.7 SAFETY
5-7.8 Steel Plate Covers
5-7.8.1 General
The Contractor shall cover all openings, trenches and excavations at the end of each Work Day with steel plate covers.

Section 5-8 is hereby added to Section 1 of Part 1 of the Standard Specifications, as follows:
5-8 INDEMNIFICATION
The following indemnity provisions shall supersede the indemnity in Section 5-4.1 of the Standard Specifications.
5-8.1 Contractor’s Duty.

To the fullest extent permitted by law, the Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify the City and its elected officials, officers, attorneys, agents, employees, volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, stop payment notices, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of the Contractor, its officers, agents, servants, employees, Subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual for whom the Contractor bears legal liability) in the performance of the Contract, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by court decision or by the agreement of the Parties. The Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. The Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith. The City shall not be liable for any accident, loss, or damage to the Work prior to completion, except as otherwise specified in Section 6-5.
5-8.1.1 Taxes and Workers’ Compensation.

The Contractor shall pay all required taxes on amounts paid to the Contractor under the Contract, and indemnify and hold the City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by reason of the independent contractor relationship created by 319
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the Contract. The Contractor shall fully comply with the Workers’ Compensation law regarding the Contractor and the Contractor’s employees. The Contractor shall indemnify and hold the City harmless from any failure of the Contractor to comply with applicable Workers’ Compensation laws. The City may offset against the amount of any fees due to the Contractor under the Contract any amount due to the City from the Contractor as a result of the Contractor’s failure to promptly pay to the City any reimbursement or indemnification arising under this Subsection 5-8.1.1. 5-8.1.2 Subcontractor Indemnity Agreements.

The Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 5-8 from each and every Subcontractor or any other person or entity involved by, for, with or on behalf of the Contractor in the performance of the Contract. If the Contractor fails to obtain such indemnity obligations, the Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of the Contractor’s Subcontractor, its officers, agents, servants, employees, Subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual for whom the Contractor’s Subcontractor bears legal liability) in the performance of the Contract, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final court decision or by the agreement of the Parties. 5-8.2 Workers’ Compensation Acts not Limiting.

The Contractor’s indemnifications and obligations under this Section 5-8, or any other provision of the Contract, shall not be limited by the provisions of any Workers’ Compensation act or similar act. The Contractor expressly waives its statutory immunity under such statutes or laws as to the City, its officers, agents, employees and volunteers.
5-8.3 Insurance Requirements not Limiting.

The City does not, and shall not, waive any rights that it may possess against the Contractor because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to the Contract. The indemnities in this Section 5-8 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against the City. 5-8.4 Civil Code Exception.

Nothing in this Section 5-8 shall be construed to encompass Indemnitees’ sole negligence or willful misconduct to the limited extent that the underlying Contract is subject to Civil Code Section 2782(a) or the City’s active negligence to the limited extent that the underlying Contract Documents are subject to Civil Code Section 2782(b), provided such sole negligence, willful misconduct or active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction.
5-8.5 Nonwaiver of Rights.

Indemnitees do not and shall not waive any rights that they may possess against the Contractor because the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to these Contract Documents. This indemnity provision is effective 320
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regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence. 5-8.6 Waiver of Right of Subrogation.

The Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all Claims arising out of or incident to the activities or operations performed by or on behalf of the Contractor regardless of any prior, concurrent or subsequent active or passive negligence by Indemnitees.
5-8.7 Survival of Terms.

The Contractor’s indemnifications and obligations under this Section 5-8 shall survive the expiration or termination of the Contract, are intended to be as broad and inclusive as is permitted by the law of the State and are in addition to any other rights or remedies that Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against the Contractor shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision.

SECTION 6. PROSECUTION AND PROGRESS OF THE WORK
6-1 CONSTRUCTION SCHEDULE AND COMMENCEMENT OF THE WORK
6-1.1 Construction Schedule
One (1) week before the scheduled pre-construction meeting, the Contractor must submit to the City Engineer for review and approval the construction schedule required by the first paragraph of Section 6-1.1. The Contractor shall make revisions as required by the City Engineer. The schedule must account for all subcontract work, as well as the work of the Contractor, submittals, coordination with the other contractors performing concurrent work and the Traffic Control Plan.

The Contractor shall update this Construction Schedule when directed by the City Engineer, or when:
a. A Change Order significantly affects the Contract completion date or the sequence of construction approach or activities; or
b. The actual sequence of the Work, or the planned sequence of the Work, is changed and does not conform to the Contractor’s current accepted Project construction schedule.

The Contractor shall submit an updated construction schedule with its monthly invoice every month. Progress payments shall be contingent upon the receipt of monthly updated construction schedules.
6-1.1.1 Pre-Construction Conference
Approximately ten (10) Days before the commencement of Work at the site, a pre-construction conference will be held at the City and shall be attended by the Contractor’s Project manager, its on-site field superintendent, and any Subcontractors that the Contractor deems appropriate.

Attendance by the Contractor and any Subcontractors designated is mandatory. 321
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Contractor shall submit its twenty-four (24) hour emergency telephone numbers to the City Engineer for approval of a minimum of two (2) Working Days before the pre-construction conference. Unless previously submitted to the City Engineer, the Contractor shall bring to the pre-construction conference copies of each of the following:
1) Construction Schedule.
2) Procurement schedule of major equipment and materials and items requiring long lead time.
3) Shop drawing/sample submittal schedule.
4) Preliminary schedule of values (lump sum price breakdown) for progress payment purposes.
5) Written designation of the on-site field superintendent and the Project manager.

Both daytime and emergency telephone numbers shall be included in the written designation.

The purpose of the conference is to designate responsible personnel and establish a working relationship. The parties will discuss matters requiring coordination and establish procedures for handling such matters. The complete agenda will be furnished to the Contractor before the meeting date. The Contractor shall be prepared to discuss all of the items listed below. 1) The Contractor’s construction schedule.
2) Notification of local residents before starting any Work and keeping them informed throughout the Project.
3) Procedures for transmittal, review, and distribution of the Contractor’s submittals. 4) Processing applications for payment.
5) Maintaining record documents.
6) Critical Work sequencing.
7) Maintaining sewage service during construction, including proposed by-passes. 8) NPDES requirements, if any.
9) Field decisions and Change Orders.
10) Use of Project site, office and storage areas, security, housekeeping, and the City’s needs.
11) Major equipment deliveries and priorities.
12) Traffic control.
13) Any other item that the City representative states is relevant to the meeting. 6-1.1.2 Weekly Progress Meetings
Progress meetings will be held each week during the course of the Project. The meeting location, day of the week and time of day will be mutually agreed to by the City and the Contractor. The Contractor shall provide a two (2) week “look ahead” schedule for each meeting. The construction manager will preside at these meetings and will prepare the meeting agenda, meeting minutes and will distribute minutes to all persons in attendance. As the Work progresses, if it is determined by agreement of the attendees, that weekly meetings are not necessary, the weekly progress meetings may be changed to bi-weekly progress meetings. 6-1.2 Commencement of the Work
The Contractor shall not begin any construction activity at the site before the issuance of the Notice to Proceed. Any Work that is done by the Contractor in advance of the Notice to Proceed 322
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shall be considered as being done at the Contractor’s own risk and responsibility, and as a consequence will be subject to rejection.

Section 6-1.3 is hereby added to Section 6 of Part 1 of the Standard Specifications, as follows:
6-1.3 Working Days And Hours
The Contractor shall do all Work between the hours of 7:30 a.m. to 4:30 p.m., Monday through Friday. No Work will be allowed on Saturday, Sunday or City holidays, which are as follows: New Year Eve, New Year, Martin Luther King Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving, Day after Thanksgiving, Christmas Eve and Christmas.

In addition, no Work will be allowed on any special election Day that may be declared. Should a special election Day be declared, a time extension of one (1) Working Day will be granted for each such Day.

A permit may have other hours or Days for the Contractor to do the Work, and those hours and Days shall supersede any hours and Days written in this Section.

Whenever the Contractor is permitted or directed to perform night Work or to vary the period during which Work is performed during the Working Day, the Contractor shall give twelve (12) hours’ notice to the City Engineer so that inspection may be provided. A charge may be made to the Contractor for approved overtime or weekend inspections requested by the Contractor. 6-4 DELAYS AND EXTENSIONS OF TIME
6-4.1 General.

Unless otherwise agreed in writing, an adjustment to the Contract time by reason of a Change Order shall be agreed to at the time the Change Order is issued and accepted by Contractor. If the Change Order does not reserve the right of the parties, or either of them, to seek an adjustment to the Contract time, then the parties forever relinquish and waive such right and there shall be no further adjustments to the Contract time.

No extension of time will be granted for any event, including pandemics, leading to the issuance of a “stay at home” or similar kind of order by any local, State, or federal governmental authority, if the Work has been deemed, either by emergency order or proclamation, or operation of law, to be an essential service that is exempt from such stay at home or similar order. 6-4.2 Extensions of Time
In the event it is deemed appropriate by the City to extend the time for completion of the Work, any such extension shall not release any guarantee for the Work required by the Contract Documents, nor shall any such extension of time relieve or release the Sureties on the Bonds executed. In executing such Bonds, the Sureties shall be deemed to have expressly agreed to any such extensions of time. The amount of time allowed by an extension of time shall be limited to the period of the delay giving rise to the same as determined by the City. Notwithstanding any dispute which may arise in connection with a claim for adjustment of the Contract time, the Contractor shall promptly proceed with the Work.
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6-4.3 Payment for Delays
Notwithstanding any other terms and conditions of the Contract Documents, the City shall have no obligation whatsoever to increase the Contract Price or extend the time for delays.

Unless compensation and/or markup is agreed upon by the City, the Contractor agrees that no payment of compensation of any kind shall be made to the Contractor for damages or increased overhead costs caused by any delays in the progress of the Contract, whether such delays are avoidable or unavoidable or caused by any act or omission of the City or its agents. Any accepted delay claim shall be fully compensated for by an extension of time to complete the performance of the Work.

This Section shall not apply to compensable delays caused solely by the City. If a compensable delay is caused solely by the City, the Contractor shall be entitled to a Change Order that:
(1) extends the time for completion of the Contract by the amount of delay caused by the City; and (2) provides equitable adjustment, as determined by the City, to the Contractor. 6-8 TERMINATION OF THE CONTRACT FOR CONVENIENCE
Notwithstanding any other provision of this Agreement, City, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving thirty (30) days’ written notice to Contractor.

Upon receipt of the notice of termination, the Contractor shall immediately discontinue the Work to the extent specified in the notice, place no further orders or subcontracts (except as may be necessary to complete any portion of the Work not terminated), and take such actions as may be reasonably necessary to protect and preserve the Work in place.

In the event of termination without cause, the Contractor shall be entitled to payment for Work properly performed and accepted by the City prior to the effective date of termination, including reasonable costs incurred as a direct result of the termination, but in no event shall the total amount paid to the Contractor exceed the amount that would have been payable had the Contractor fully performed the Contract. The Contractor shall not be entitled to anticipated profits, loss of prospective work, or consequential damages arising out of or related to such termination.

In no event (including termination for impossibility or impracticability, due to conditions or events beyond the control of the City, for any other reason or for no reason) shall the total amount of money to Contractor exceed the amount which would have been paid to Contractor for the full performance of the services described in the Contract.
6-9 LIQUIDATED DAMAGES
For the purposes of the calculation of the start of the liquidated damages, the Work shall be deemed to be completed when the same has been completed in accordance with the Plans and Specifications therefor and to the satisfaction of the City Engineer, and the City Engineer has certified such completion in accordance with Section 3-13.1 of Part 1 of the Standard Specifications. Liquidated damages is $1,000.00 per calendar day.

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SECTION 7. MEASUREMENT AND PAYMENT

7.3 PAYMENT

7.3.1 General
The unit and lump sum prices to be paid shall constitute full compensation for all labor, equipment, materials, tools and incidentals required to complete the Project as outlined in these Contract Documents and as directed by the City Engineer. In accordance with Public Contract Code Section 7107, if no claims have been filed and are still pending, the amount deducted from the final estimate and retained by the City will be paid to the Contractor except such amounts as are required by law to be withheld by properly executed and filed notices to stop payment, or as may be withheld for any other lawful purposes.
7-3.2 Partial and Final Payment
7-3.2.1 Monthly Closure Date and Invoice Date
For purposes of Section 7-3.2, the monthly closure date shall be the last Day of each month. A measurement of Work performed, and a progress estimate of the value thereof based on the Contract and of the monthly payment shall be prepared by the Contractor and submitted to the City Engineer before the tenth (10th) Day of the following month for verification and payment consideration.
7-3.2.2 Payments
The City shall make payments within thirty (30) Days after receipt of the Contractor’s undisputed and properly submitted payment request, including an updated construction schedule pursuant to Section 6-1.1 of the General Provisions. The City shall return to the Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven (7) Days after receipt, and shall explain in writing the reasons why the payment request is not proper. Contractor shall provide all documentation required by the City to support payment requests, including but not limited to invoices, payroll records, time records, and cost documentation. Contractor acknowledges that failure to provide adequate supporting documentation may result in delayed or denied payment.
7-3.2.3 Retention
The City shall withhold not less than five percent (5%) from each progress payment. However, at any time after fifty percent (50%) of the Work has been completed, if the City Council finds that satisfactory progress is being made, it may, at its discretion, make any of the remaining progress payments in full for actual Work completed. The City shall withhold not less than five percent (5%) of the Contract Price from the Final Payment Amount (defined in Section 7-3.2.4) until at least thirty-five (35) days after recordation of the Notice of Completion, or recordation of a notice of acceptance or cessation, but not later than the period permitted by Public Contract Code Section 7107.
7-3.2.4 Final Invoice and Payment
Whenever the Contractor shall have completely performed the Contract in the opinion of the City Engineer, the City Engineer shall notify the City Clerk that the Contract has been completed in its 325
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entirety. The Contractor shall then submit to the City Engineer a written statement of the final quantities of Contract items for inclusion in the final invoice. Upon receipt of such statement, the City Engineer shall check the quantities included therein and shall authorize a payment amount, which in the City Engineer’s opinion shall be just and fair, covering the value of the total amount of Work done by the Contractor, less all previous payments and all amounts to be retained under the provisions of the Contract Documents (“Final Payment Amount”). The City Engineer shall then request that the City accept the Work and that the City Clerk be authorized to file, on behalf of the City in the office of the County Recorder, a Notice of Completion of the Work herein agreed to be done by the Contractor. In addition, the final payment will not be released until the Contractor returns the control set of Plans and Specifications showing the redlined as-built conditions.
7-3.2.5 Substitute Security
In accordance with Public Contract Code Section 22300, the Contractor may request that it be permitted to substitute securities in lieu of having retention withheld by the City from progress payments when such payments become due or, in the alternative, the Contractor may request that the City make payments of earned retentions directly to an agreed upon designated escrow agent at the Contractor’s expense. If the Contractor selects either one of these alternatives, the following shall control.

7.3.2.5.1 Substitution of Securities for Performance Retention At some reasonable time before any progress payment would otherwise be due and payable to the Contractor in the performance of Work under these Contract Documents, the Contractor may submit a request to the City in writing to permit the substitution of retentions with securities equivalent to the amount estimated by the City (“estimated amount of retention”) to be withheld.

The Contractor shall deposit such securities with the City or may, in the alternative, deposit such securities in escrow with a State or federally chartered bank in California, as the escrow agent, at the Contractor’s expense. Such securities will be the equivalent or greater in value of the estimated amount of retention. If the Contract is modified by written Modifications or Change Orders or the Contractor otherwise becomes entitled to receive an amount more than the Contract Price at the time the securities are deposited, the Contractor shall, at the request of the City, deposit with the City or escrow agent, whichever is applicable, additional securities within a reasonable time so that the amount of securities on deposit with the City or escrow agent is equivalent or greater in value than the amount of retention the City would otherwise be entitled to withhold from progress payments due or to become due to the Contractor as the Work progresses.

The City shall withhold any retention amount that exceeds the security amount until the additional securities are deposited and, if the deposit is with an escrow agent, the City has confirmation from that escrow agent of the new total value of securities. Upon satisfactory completion of the Contract, which shall mean, among other things, that the City is not otherwise entitled to retain proceeds from progress payments as elsewhere provided in the Contract or under applicable law, the securities shall be returned to the Contractor. The City shall, within its sole discretion, determine whether the amount of the securities on deposit with the City or escrow agent is equal to or greater than the amount of estimated retention of progress payments that could otherwise be held by the City if the Contractor had not elected to substitute same with securities. 7-3.2.5.2 Deposit of Retention Proceeds with an Escrow Agent As an alternative to the substitution of securities, as provided above, or the City otherwise retaining and holding retention proceeds from progress payments, the Contractor may request 326
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the City to make payments of retentions earned directly to an escrow agent with the same qualifications as required in Section 7-3.2.5.1 above and at the expense of the Contractor. At its sole expense, the Contractor may direct the investment of such retention payments into only such securities as mentioned in Section 7-3.2.5.4 below and shall be entitled to interest earned on such investments on the same terms provided for securities deposited by the Contractor. Upon satisfactory completion of the Contract, which shall mean when the City would not otherwise be entitled to withhold retention proceeds from progress payments had the Contractor not elected to have such proceeds deposited into escrow, the Contractor shall be allowed to receive from the escrow agent all securities, interest and payments deposited into escrow pursuant to the terms of this Section. The Contractor shall pay to each Subcontractor, not later than ten (10) Days of receipt of payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount withheld to ensure performance of the Contractor.
7-3.2.5.3 Subcontractor Entitlement to Interest
If the Contractor elects to receive interest on any moneys withheld in retention by the City, then the Subcontractor shall receive the identical rate of interest received by the Contractor on any retention moneys withheld from the Subcontractor by the Contractor, less any actual pro rata costs associated with administering and calculating that interest. In the event that the interest rate is a fluctuating rate, the rate for the Subcontractor shall be determined by calculating the interest rate paid during the time that retentions were withheld from the Subcontractor. If the Contractor elects to substitute securities in lieu of retention, then, by mutual consent of the Contractor and the Subcontractor, the Subcontractor may substitute securities in exchange for the release of moneys held in retention by the Contractor. The Contractor shall pay each Subcontractor, not later than ten (10) Days after receipt of escrow moneys, the amount owed to each Subcontractor from the moneys plus the respective amount of interest earned, net of costs attributed to the retention held from each Subcontractor, on the amount of retention withheld to ensure performance of the Subcontractor.
7-3.2.5.4 Securities Eligible for Investment
Securities eligible for investment shall include those listed in Government Code Section 16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed upon between the Contractor and the City. The Contractor shall be the beneficial owner of any securities substituted for any monies withheld and shall receive any interest thereon.
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7-3.2.5.5 Escrow Agreement for Security Deposits in Lieu of Retention The escrow agreement that shall be used for the deposit of securities in lieu of retention shall substantially conform to the form prescribed in Public Contract Code Section 22300(f). 7-3.2.5.6 Inconsistencies with Prevailing Statutory Requirements If there is any inconsistency between or differences in Public Contract Code Section 22300 and the terms of this provision, or any future amendments thereto, Section 22300 shall control. 7-3.9 AUDIT
Section 7-3.9 is hereby added to Section 7-3 of Part 1 of the Standard Specifications, as follows:

The City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by the Contractor in preparing its billings to the City as a condition precedent to any payment to the Contractor or in response to a construction claim or a Public Records Act (Government Code Section 6250 et seq.) request. The Contractor will promptly furnish documents requested by the City at no cost. Additionally, the Contractor shall be subject to State Auditor examination and audit at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under the Contract. The Contractor shall include a copy of this Section 7-3.9 in all contracts with its Subcontractors, and the Contractor shall be responsible for immediately obtaining those records or other written material from its Subcontractors upon a request by the State Auditor or the City. If the Project includes other auditing requirements, those additional requirements will be listed in the Special Provisions.

In addition to the foregoing, the Contractor acknowledges that the EPA, the Comptroller General of the United States, and their authorized representatives shall have the right of access to any books, documents, papers, and records of the Contractor that are pertinent to this Contract for the purpose of making audits, examinations, excerpts, and transcriptions in accordance with 2 CFR 200.337.

Contractor shall retain all such records for a minimum of three (3) years after final payment or longer if required by federal law.

SECTION 8 FACILITIES FOR AGENCY PERSONNEL
8-1 General
No field offices for City personnel shall be required; however, City personnel shall have the right to enter upon the Project at all times and shall be admitted to the offices of the Contractor to use the telephone, desk and sanitary facilities provided by the Contractor for its own personnel.

SECTION 9. ADDITIONAL TERMS
9-1 NONDISCRIMINATORY EMPLOYMENT
The Contractor shall not unlawfully discriminate against any individual based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, 328
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genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation or military and veteran status. The Contractor understands and agrees that it is bound by and will comply with the nondiscrimination mandates of all statutes and local ordinances and regulations.

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9-3 CONTRACTOR’S RESPONSIBILITY FOR WORK
Until the final acceptance of the Work by the City Council in accordance with Section 3-13.2 of the General Provisions, the Contractor shall have the charge and care thereof and shall bear the risk of injury or damage to any part of the Work by the action of the elements, criminal acts, or any other cause. The Contractor shall rebuild, repair, restore and make good all injuries or damages to any portion of the Work occasioned by any cause before its completion and acceptance and shall bear the expense thereof, except for such injuries or damages arising from the sole negligence or willful misconduct of the City, its officers, agents or employees. In the case of suspension of Work from any cause whatever, the Contractor shall be responsible for all materials and the protection of Work already completed, shall properly store and protect them if necessary, and shall provide suitable drainage and erect temporary structures where necessary. 9-4 PROCEDURE IN CASE OF DAMAGE TO PUBLIC PROPERTY
Any portions of curb, gutter, sidewalk or any other City improvement damaged by the Contractor during the course of construction shall be replaced by the Contractor at its own cost. The cost of additional replacement of curb, gutter or sidewalk in excess of the estimated quantities shown in the Bid form and Specifications, and found necessary during the process of construction (but not due to damage resulting from carelessness on the part of the Contractor during its operation), shall be paid to the Contractor at the unit prices submitted in his or her Bid. 9-5 REMOVAL OF INTERFERING OBSTRUCTIONS
The Contractor shall remove and dispose of all debris, abandoned structures, tree roots and obstructions of any character encountered during the process of excavation. It is understood that the cost of any such removals are made a part of the unit price Bid by the Contractor under the item for excavation or removal of existing Work.
9-6 SOILS ENGINEERING AND TESTING
A certified materials testing firm may be retained by the City to perform materials tests during the Contractor’s entire operation to ascertain compliance with the Contract requirements. The City shall be responsible for the first series of tests. If the initial tests do not meet the Contract requirements, the Contractor shall bear the cost of all subsequent tests.

If the City requires other tests or more specific requirements for testing regarding this Project, those details will be included in the Special Provisions. 9-7 ACCESS TO PRIVATE PROPERTY
Unless otherwise stated in the Special Provisions, the Contractor shall be responsible for all fees and costs associated with securing permission to access private property for any portion of the Project.
9-9 CLAIM DISPUTE RESOLUTION
In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of Work, but shall proceed with the performance of the Work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The Disputed Work will be categorized 330
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as an “unresolved dispute” and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all Disputed Work, claims and other disputed matters.

All claims arising out of or related to the Contract Documents or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein.

Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Section 9204 and Article 1.5 (as applicable), pursuant to the definition of “claim” as individually defined therein. 9-10 THIRD PARTY CLAIMS
The City shall have full authority to compromise or otherwise settle any claim relating to the Project at any time. The City shall timely notify the Contractor of the receipt of any third-party claim relating to the Project. The City shall be entitled to recover its reasonable costs incurred in providing this notice.
9-11 COMPLIANCE WITH LAWS
The Contractor shall comply with all applicable federal, State and local laws, ordinances, codes and regulations in force at the time the Contractor performs pursuant to the Contract Documents. 9-12 CONTRACTOR’S REPRESENTATIONS
By signing the Contract, the Contractor represents, covenants, agrees, and declares under penalty of perjury under the laws of the State of California that: (a) the Contractor is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in the Contract Documents; (b) there are no obligations, commitments, or impediments of any kind that will limit or prevent its full performance under the Contract Documents; (c) there is no litigation pending against the Contractor that could adversely affect its performance of the Contract, and the Contractor is not the subject of any criminal investigation or proceeding; and (d) to the Contractor’s actual knowledge, neither the Contractor nor its personnel have been convicted of a felony. 9-13 CONFLICTS OF INTEREST
The Contractor agrees not to accept any employment or representation during the term of the Contract or within twelve (12) months after acceptance as defined in Section 3-13.2 of the General Provisions that is or may likely make the Contractor “financially interested,” as provided in Government Code Sections 1090 and 87100, in any decisions made by the City on any matter in connection with which the Contractor has been retained pursuant to the Contract Documents.

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9-14 APPLICABLE LAW
The validity, interpretation, and performance of these Contract Documents shall be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules.

Venue for any such action relating to the Contract shall be in the Superior Court with geographic jurisdiction over the City.
9-15 TIME
Time is of the essence in these Contract Documents.
9-16 INDEPENDENT CONTRACTOR
The Contractor and Subcontractors shall at all times remain, as to the City, wholly independent contractors. Neither the City nor any of its officials, officers, employees or agents shall have control over the conduct of the Contractor, Subcontractors, or any of their officers, employees, or agents, except as herein set forth, and the Contractor and Subcontractors are free to dispose of all portions of their time and activities that they are not obligated to devote to the City in such a manner and to such Persons that the Contractor or Subcontractors wish except as expressly provided in these Contract Documents. The Contractor and Subcontractors shall have no power to incur any debt, obligation, or liability on behalf of the City, bind the City in any manner, or otherwise act on behalf of the City as agents. The Contractor and Subcontractors shall not, at any time or in any manner, represent that they or any of their agents, servants or employees, are in any manner agents, servants or employees of the City. The Contractor and Subcontractors agree to pay all required taxes on amounts paid to them under the Contract, and to indemnify and hold the City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by reason of the independent contractor relationship created by the Contract Documents. The Contractor shall include this provision in all contracts with all Subcontractors. 9-17 CONSTRUCTION
In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of these Contract Documents shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Contract Documents or who drafted that portion of the Contract Documents.
9-18 NON-WAIVER OF TERMS, RIGHTS AND REMEDIES
Waiver by either party of anyone (1) or more of the conditions of performance under these Contract Documents shall not be a waiver of any other condition of performance under these Contract Documents. In no event shall the making by the City of any payment to the Contractor constitute or be construed as a waiver by the City of any breach of covenant, or any default that may then exist on the part of the Contractor, and the making of any such payment by the City shall in no way impair or prejudice any right or remedy available to the City with regard to such breach or default.

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9-19 TERM
The Contract is effective as of the Effective Date listed and shall remain in full force and effect until the Contractor has fully rendered the services required by the Contract Documents or the Contract has been otherwise terminated by the City. However, some provisions may survive the term listed within this Section, as stated in those provisions. 9-20 NOTICE
Except as otherwise required by law, any notice or other communication authorized or required by these Contract Documents shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during the City’s regular business hours or (b) on the third (3rd) business day following deposit in the United States mail, postage prepaid, to the addresses listed on the Contractor’s Bid and City Hall, or at such other address as one party may notify the other.
9-21 SEVERABILITY
If any term or portion of these Contract Documents is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of these Contract Documents shall continue in full force and effect.
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SPECIAL PROVISIONS
The Sections that follow supplement, but do not replace, the corresponding provisions in Part 3 (Construction Methods) and Part 4 (Existing Improvements) of the Standard Specifications, except as otherwise indicated herein. In the event of any conflict between the Standard Specifications and these Special Provisions, these Special Provisions shall control.

SECTION 306 - OPEN TRENCH CONDUIT CONSTRUCTION
306-3.1 GENERAL
Pursuant to Public Contract Code Section 7104, if the project involves trenching more than four (4) feet deep, Contractor shall promptly and before the following conditions are disturbed notify the City in writing of any:
a. Material that Contractor believes may be material that is hazardous waste, as defined in California Health and Safety Code Section 25117, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; and/or b. Subsurface or latent physical conditions at the site differing from those indicated; and/or
c. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract.
d. As required by Labor Code Section 6705 and in addition thereto, whenever work under the Contract that involves an estimated expenditure in excess of twenty-five thousand dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by City in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards established by the Construction Safety Orders of the Division of Industrial Safety, the plan shall be prepared by a registered civil or structural engineer employed by Contractor, and all costs therefore shall be included in the price of the Contract. Nothing in this provision shall be deemed to allow the use of a shoring, sloping, or other protective system less effective than that required by the Construction Safety Orders. Nothing in this provision shall be construed to impose tort liability on the City or on any City officer, agent, consultant, representative, or employee. All plans, processing and shoring costs are Contractor’s responsibility and must be included in Contractor’s Bid.

SECTION 400 - PROTECTION AND RESTORATION
400-1 GENERAL
All costs to the Contractor for protecting, removing, restoring, relocating, repairing, replacing, or reestablishing existing improvements shall be included in the Bid.

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SECTION 402 - UTILITIES
402-1 LOCATION
The location and existence of any underground Utility or substructure has not been obtained. The methods used and costs involved to locate existing elements, points of connection and all construction methods are the Contractor’s sole responsibility. Accuracy of information furnished, as to existing conditions, is not guaranteed by the City. The Contractor, at its sole expense, must make all investigations necessary to determine locations of existing elements, which may include contacting Underground Service Alert and other private underground locating firm(s), utilizing specialized locating equipment, hand trenching, or both. For every Dig Alert Identification Number issued by Underground Service Alert during the course of the Project, the Contractor must submit to the City the following form. The Contractor shall be responsible for preserving the integrity of the existing underground utilities at the site.
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UNDERGROUND SERVICE ALERT IDENTIFICATION NUMBER FORM
No excavation will be permitted until this form is completed and returned to the City.

Government Code Section 4216 et seq. requires a Dig Alert Identification Number to be issued before a permit to excavate will be valid.

To obtain a Dig Alert Identification Number, call Underground Service Alert at 811 a minimum of three (3) Working Days before scheduled excavation. For best response, provide as much notice as possible up to ten (10) Working Days.

Dig Alert Identification Number: ________________________________________________ Dated:
(“CONTRACTOR”)
By:

Printed Name:

Title:

By:

Printed Name:

Title:

Note: This form is required for every Dig Alert Identification Number issued by Underground Service during the course of the Work. Additional forms may be obtained from the City upon request.
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402-1.3 Entry by Utility Owners
The right is reserved to the owners of public Utilities or franchises to enter the Project site for the purpose of making repairs or changes in their property that may be necessary as a result of the Work as well as any other reason authorized by the City. When the Contract Documents provide for the Utility owners to alter, relocate or reconstruct a Utility, or when the Contract Documents are silent in this regard and it is determined by the City Engineer that the Utility owners must alter, relocate or reconstruct a Utility, the Contractor shall schedule and allow adequate time for those alterations, relocations or reconstructions by the respective Utility owners. City employees and agents shall likewise have the right to enter upon the Project site at any time and for any reason or no reason at all.
402-2 PROTECTION
If Contractor damages or breaks the Utilities, it will be the Contractor’s responsibility to repair the Utility at no cost to the Utility or the City.
402-3 REMOVAL
Facilities encountered during the prosecution of the Work that are determined to be abandoned shall be removed by the Contractor as required for the Work, unless directed otherwise by the City Engineer. The remaining portion of the existing Utility, which is left in place shall be accurately recorded, in elevation and plan, on the control set of Contract Drawings. 402-4 RELOCATION
The Contractor shall cooperate fully with all Utility forces of the City or forces of other public or private agencies engaged in the relocation, altering, or otherwise rearranging of any facilities that interfere with the progress of the Work. The Contractor shall schedule the Work so as to minimize interference with the relocation, altering, or other rearranging of facilities. 402-6 COOPERATION
The Contractor’s attention is directed to the fact that Work may be conducted at or adjacent to the site by other contractors during the performance of the Work under this Contract. The Contractor shall conduct its operations so as to cause a minimum of interference with the work of such other contractors and shall cooperate fully with such contractors to provide continued safe access to their respective portions of the site, as required to perform work under their respective contracts. Compensation for compliance shall be included in the various items of the Work, and no additional compensation shall be allowed therefor.

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402-7 NOTIFICATION
The Contractor shall notify the City Engineer and the owners of all Utilities and substructures not less than forty-eight (48) hours before starting construction. The following list of names and telephone numbers is intended for the convenience of the Contractor and is not guaranteed to be complete or accurate:

Agency: City of Banning
Phone Number: 951-922-3140
Contact Person: Shah Nawaz
Email: [email protected]
Agency: City of Banning
Phone Number: 951-922-3135
Contact Person: Isabelle Guido
Email: [email protected]
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EXHIBIT A
[ATTACHED BELOW]
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Prevailing Wage Rates
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EXHIBIT B
EPA Form 6600-06
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EXHIBIT
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CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Shah Nawaz, Deputy Water/Wastewater Director Art Vela, Director of Public Works
MEETING DATE: September 22, 2026
SUBJECT: Consideration of Resolution 2026-05UA Approving a Professional Services Agreement with Albert A. Webb Associates for Engineering Services During Construction for the Wastewater Treatment Plant Equalization Basin Project in a Not-to-Exceed Amount of $288,171 STAFF RECOMMENDATION:

Adopt Resolution 2026-05UA
BACKGROUND:

On June 9, 2020, the City Council awarded a Professional Services Agreement to Albert A. Webb Associates (WEBB) for the design of the Wastewater Treatment Plant (WWTP) Equalization Basin. The project includes equalization and storage improvements intended to help the WWTP manage normal daily flows as well as excess flows during rain events and other high-flow conditions.

The project has now advanced to construction. Under a separate action, staff is recommending award of the construction contract to Mehta Mechanical Company, Inc. (MMC) in the amount of $5,350,000, with a 10% construction contingency, for a total construction authorization of $5,885,000.

As the project moves into construction, the City will require professional engineering support to assist with technical and design-related matters that arise in the field. Due to limited City staffing and the specialized nature of the project, City staff does not have the capacity to perform all of the engineering services required during construction while continuing to manage day-to-day Water/Wastewater operations and other capital projects. These services are therefore necessary to supplement City staff and provide timely technical support throughout construction.

WEBB is the Engineer of Record (EOR) and prepared the project design, plans, specifications, and associated construction documents. Continuing with WEBB during construction will provide continuity between design and construction and allow submittals, requests for information, field conditions, commissioning issues, and other design-related matters to be addressed efficiently by the engineering team most familiar with the project.

JUSTIFICATION:

WEBB has submitted a proposal to provide engineering services during construction in a not-to-exceed amount of $288,171. In general, the services will include construction-phase engineering support, participation in biweekly construction progress meetings, review of contractor submittals and requests for information, coordination with the City and contractor, site visits and field support as needed, startup and commissioning assistance, and project closeout support. 369
Staff recommends retaining WEBB on a sole-source basis because WEBB is the EOR for the Equalization Basin Project and has direct knowledge of the project design, specifications, and design intent. Retaining WEBB during construction provides continuity, avoids duplicative review and the additional costs of bringing another consultant up to speed, and allows the engineer responsible for the original design to address RFIs, submittals, and design-related issues efficiently.

The proposed fee is consistent with the City's existing on-call engineering agreement and is reasonable for the required professional engineering services. The scope assumes an approximately 18-month construction period and does not include continuous construction observation. The scope includes approximately 200 hours of limited on-site inspection, in addition to pre-construction and biweekly meetings and other related construction management support, for use only as requested and directed by the City.

FISCAL IMPACT:

The proposed Professional Services Agreement with WEBB is in a not-to-exceed amount of $288,171.

The project will be funded through Wastewater Operations Fund 680. The project requires a budget appropriation of $288,171 in General Ledger Account 680-8000-454.95-12. WEBB will be compensated only for services actually rendered on a time-and-materials basis, up to the approved not-to-exceed amount of $288,171.

There is no impact on the General Fund associated with this item.

ATTACHMENTS:

1. Resolution_2026-05UA edited JT.docx

2. Contract No C01300 - Albert A Webb Associates - EQ Basin Construction Management Services.docx 370
Resolution 2026-05 UA