Banning City Council
September 22, 2026

RESOLUTION 2026-05 UA

A RESOLUTION OF THE UTILITY AUTHORITY OF THE CITY OF BANNING, CALIFORNIA, 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-TOEXCEED AMOUNT OF $288,171, AND APPROVING A BUDGET APPROPRIATION

EQUALING THE AGREEMENT AMOUNT
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 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; and
WHEREAS, the project has now advanced to construction, and the City requires professional engineering support to assist with technical and design-related matters that arise during construction; and
WHEREAS, due to limited City staffing and the specialized nature of the project, these engineering services are necessary to supplement City staff and provide timely technical support while City staff continues to manage day-to-day Water/Wastewater operations and other capital projects; and
WHEREAS, WEBB is the Engineer of Record (EOR) and prepared the project design, plans, specifications, and associated construction documents, and retaining WEBB during construction will provide continuity between design and construction and allow design-related matters to be addressed efficiently by the engineering team most familiar with the project; and WHEREAS, WEBB has submitted a proposal to provide engineering services during construction, including construction-phase engineering support, participation in bi-weekly 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; and WHEREAS, staff recommends retaining WEBB on a sole-source basis because WEBB is the EOR and has direct knowledge of the project design, specifications, and design intent, thereby providing continuity and avoiding duplicative review, additional costs, and potential delays associated with bringing another consultant up to speed; and WHEREAS, the proposed Professional Services Agreement with WEBB is in a not-toexceed amount of $288,171, with WEBB to be compensated only for services actually rendered on a time-and-materials basis up to the approved not-to-exceed amount; and WHEREAS, the project will be funded through Wastewater Operations Fund 680, and an additional appropriation of $288,171 in General Ledger Account 680-8000-454.95-12 is required, with no impact to the General Fund associated with this item.

NOW, THEREFORE, BE IT RESOLVED by the Utility Authority of the City of Banning as follows:
371
Resolution 2026-05 UA

SECTION 1. The Utility Authority hereby approves 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.

SECTION 2. Albert A. Webb Associates shall be compensated only for services actually rendered on a time-and-materials basis, up to the approved not-to-exceed amount of $288,171.

SECTION 3. The City Manager, or designee, is authorized to execute the Professional Services Agreement with Albert A. Webb Associates, together with any non-substantive modifications approved by the City Attorney.

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

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
372
Resolution 2026-05 UA

CERTIFICATION:

I, Sandra Calderon, Secretary of the Banning Utility Authority, do hereby certify that the foregoing Resolution 2026-05 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
373
Resolution 2026-05 UA

EXHIBIT A
Professional Services Agreement with Albert A. Webb Associates for Engineering Services During Construction for the Wastewater Treatment Plant Equalization Basin Project 374
PS Version 1 Last Reviewed: 3/4/2026
1 AGREEMENT FOR PROFESSIONAL SERVICES (C01300)

BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR (“Agreement”) is made and effective as of the ____________ by and between the CITY OF BANNING, a California municipal corporation (“City”) whose address is 99 East Ramsey Street, Banning, California 92220, and ALBERT A. WEBB ASSOCIATES, a California Corporation whose address is 3788 McCray Street, Riverside, CA 92506 (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “party” and hereinafter collectively referred to as the “parties.”

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

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

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

1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after June 30, 2028, unless extended by the parties with the approval of the City Council of the City.

2. Services to be Performed. Contractor agrees to provide the services (“Services”) as follows: providing engineering services during the construction of the new equalization basin at 375
PS Version 1 Last Reviewed: 3/4/2026
2 the wastewater treatment plant in accordance with Exhibit “A”. All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. Contractor designates Brian P. Knoll as Contractor’s Representative responsible for overseeing the Services provided by Contractor (“Contractor’s Representative”). City designates the City Manager, or his or her designee, to act as the Project Manager (“Project Manager”) in connection with the delivery of Services under this Agreement. Contractor shall supply, at its sole expense, all equipment, tools, materials, and supplies necessary to perform Services. In the event that the Proposal contains terms that are in addition to or in conflict with this Agreement, other than the price for Services, such terms shall not be valid and shall be of no force or effect.

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

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

4. Compensation.

4.01 Contractor shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by City to Contractor under this Agreement shall not exceed the amount of Two Hundred Eighty-Eight Thousand One Hundred Seventy-One Dollars and Zero Cents ($288,171.00).

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

4.03 Contractor shall submit to City, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The City shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. City shall have the right to review and audit all invoices prior to or after payment to Contractor. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Verification that the hours billed, when multiplied by the approved hourly rates, result in the correct total;
376
PS Version 1 Last Reviewed: 3/4/2026
3 c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall either return the bill to Contractor with a request for explanation or adjust the payment accordingly and give notice to Contractor of the adjustment.

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

5. Obligations of Contractor.

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

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

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

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

5.05 In the event Contractor is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.
377
PS Version 1 Last Reviewed: 3/4/2026
4 5.06 Contractor represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein.

In the event City is required to obtain an approval or permit from another governmental entity, Contractor shall provide all necessary supporting documents to be filed with such entity.

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

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

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

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

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

5.12 By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the conditions, circumstances, difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of Services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor 378
PS Version 1 Last Reviewed: 3/4/2026
5 shall immediately inform the City of such facts and shall not proceed except at Contractor’s sole risk until written instructions are received from the Project Manager.

Contractor warrants all Services under the Agreement to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Services, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Services (or work of other contractors) damaged by Contractor’s defective Services or which becomes damaged in the course of repairing or replacing defective Services. For any Services so corrected, Contractor’s obligation hereunder to correct defective Services shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Services. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor.

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

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

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

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

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

If existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor shall provide the following types and amounts of insurance:
379
PS Version 1 Last Reviewed: 3/4/2026
6 6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; Contractor agrees to have its insurer endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

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

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

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

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

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

6.05 Cyber Liability Insurance REQUIRED IF CHECKED HERE ONLY [___] (Technology Professional Liability – Errors and Omissions), with limits not less than $2,000,000 per occurrence or claim, and $2,000,000 aggregate or the full per occurrence limits of the policies available, whichever is greater. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. Contractor will file with City, before beginning professional services, certificates of insurance (Acord Form 25 or equivalent) satisfactory to City evidencing.
380
PS Version 1 Last Reviewed: 3/4/2026
7 6.06 If Claims Made Policies (applies only to professional liability and cyber liability policies):
i. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
ii. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. iii. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract work.

7. General Conditions pertaining to Insurance Coverage.

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

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

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

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

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

7.05 All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions 381
PS Version 1 Last Reviewed: 3/4/2026
8 in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7.06 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor or arising out of the Services performed under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

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

8. Indemnification.

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

Contractor’s obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor (and/or Contractor’s agents and/or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
382
PS Version 1 Last Reviewed: 3/4/2026
9 b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable solely to the fault of City, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. 8A Indemnification Design Professionals. In the event that Contractor is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, Contractor shall defend, indemnify, and hold harmless the City, its officers, employees, trustees and members (“Indemnified Parties”) from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney’s and consultants’ fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death (“Claim(s)”), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Contractor, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties. The cost to indemnify, hold harmless, and defend charged to Contractor shall not exceed Contractor’s proportionate percentage of fault.

9. Additional Services, Changes and Deletions.

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

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

10. Termination of Agreement.

10.01. Notwithstanding any other provision of this Agreement, City, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days’ written notice to Contractor.
383
PS Version 1 Last Reviewed: 3/4/2026
10 10.02 In the event of termination, the payment of monies due Contractor for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement. Immediately upon termination, Contractor agrees to promptly provide and deliver to City all original documents, reports, studies, plans, specifications and the like which are in the possession or control of Contractor and pertain to City.

11. Status of Contractor.

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

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

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

12. Ownership of Documents; Audit.

12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties, and all other documents of any kind or nature prepared, developed, or obtained by Contractor in connection with the performance of Services performed for the City shall become the sole property of City, and Contractor shall promptly deliver all such materials to City upon request. At the City’s sole discretion, Contractor may be permitted to retain original documents, and furnish reproductions to City upon request, at no cost to City.
384
PS Version 1 Last Reviewed: 3/4/2026
11 12.02 Subject to applicable federal and state laws, rules and regulations, City shall hold all intellectual property rights to any materials developed pursuant to this Agreement.

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

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

12.04 Contractor acknowledges that the City is a California municipal corporation and is subject to the California Public Records Act, Government Code § 7920.000 et seq. (“CPRA”), and other applicable laws requiring public access to records. Contractor further acknowledges and agrees that any and all documents, records, data, writings, communications, materials, and other information of any kind, in any format (including electronic format), that Contractor (or any associate, subcontractor, consultant, or agent of Contractor) prepares, develops, obtains, provides, transmits, or submits to the City, or that are otherwise received or maintained by the City, in connection with this Agreement or the Services may constitute public records and may be subject to disclosure to third parties in response to a CPRA request, unless the City determines that all or a portion of the Submitted Materials are exempt from disclosure under the CPRA or other applicable law.

13. Miscellaneous Provisions.

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

13.02 Contractor shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of City. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.
385
PS Version 1 Last Reviewed: 3/4/2026
12 13.03 Contractor shall timely file FPPC Form 700 Conflict of Interest Statements with City if required by California law and/or the City’s conflict of interest policy.

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

13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.

13.06 Contractor covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

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

13.08 Improper Consideration. Contractor shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the City in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by City. The City, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the City with respect to the proposal and award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately report any attempt by any City officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor. 386
PS Version 1 Last Reviewed: 3/4/2026
13 13.09 Severability. If any portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

13.10 Prevailing Wages. Contractor shall be responsible to comply with applicable prevailing wages laws. As a condition of payment, if applicable Contractor shall show proof of payment of wages under applicable state and federal laws and regulations relating to prevailing wages in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773, 1773.1, 1773.5, and 1773.9”, for Riverside County and/or 40 U.S.C. Section 276a, et. seq.

Such wage rates shall conform with those posted at City offices and the project site. In the event that the Contractor fails to pay the prevailing wages, the Contractor shall be solely liable for penalties and for the shortfall in wages and shall indemnify, defend and hold harmless City under Section 8.01 against any of the same. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1771 - Requirement to Pay Prevailing Wages

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

3. Section 1774 – Payment of Prevailing Wage Rates.

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

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

6. Section 1777.5 - Apprenticeship Requirements.

7. Sections 1810 and 1811 - Working Hour Restrictions.

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

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

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

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or 387
PS Version 1 Last Reviewed: 3/4/2026
14 remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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

13.14 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purpose of this Agreement.

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

13.16 Force Majeure. Neither party shall be deemed in default of this Agreement to the extent that performance of its obligations is delayed or prevented by causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, riots, fires, floods, epidemics, pandemics, earthquakes, strikes, labor disputes, governmental orders, or failure of utilities. The affected party shall promptly notify the other party in writing of the occurrence of such event and shall use reasonable efforts to resume performance as soon as practicable. Force majeure shall not excuse the obligation to make payments when due. In no event shall force majeure entitle Contractor to additional compensation, but only to a reasonable extension of time.

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

13.18 The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. The parties expressly adopt and confirm each electronic signature made by a party to this Agreement, regardless of whether delivered in person, by mail, courier, facsimile, email, or in portable document format (PDF), as if the same 388
PS Version 1 Last Reviewed: 3/4/2026
15 were manually signed and delivered in person. Each party agrees not to assert that any electronic signature is inadequate to bind such party to the same extent as if signed manually and delivered in person.

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

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

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

To City:

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

Albert A Webb Associates
Attn Stephanie Standerfer, Vice President
3788 McCray Street
Riverside, California 92506
Email: [email protected]
Notices shall be deemed received as follows: (i) on the date of delivery if delivered personally; (ii) one (1) business day after deposit with a nationally recognized overnight courier; (iii) three (3) business days after deposit in the United States mail, postage prepaid; or (iv) on the date transmitted if sent by electronic mail during normal business hours of the receiving party, or on the next business day if sent after normal business hours. Either party may change its address for Notice by providing written Notice of such change to the other party in accordance with this Section.
389
PS Version 1 Last Reviewed: 3/4/2026
16 13.21 This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which counterparts taken together shall constitute one and the same instrument for all purposes of this Agreement.

13.22 The recitals set forth in the preamble of this Agreement are hereby incorporated into and made a substantive part of this Agreement as if fully set forth herein. [SIGNATURES ON FOLLOWING PAGE]
390
PS Version 1 Last Reviewed: 3/4/2026
17 IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.

CITY: CONTRACTOR:

CITY OF BANNING ALBERT A WEBB ASSOCIATES
By:_______________________ By:_______________________
Elizabeth Gibbs, City Manager Print
Name: ____________________
Date: ______________________
Date: _____________________
ATTEST:

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

By: ______________________
Phaedra A. Norton, City Attorney
Date: __________________
391
PS Version 1 Last Reviewed: 3/4/2026
18 EXHIBIT “A”

PROPOSAL
392
PS Version 1 Last Reviewed: 3/4/2026
19 393
PS Version 1 Last Reviewed: 3/4/2026
20 394
PS Version 1 Last Reviewed: 3/4/2026
21 395
PS Version 1 Last Reviewed: 3/4/2026
22 396
PS Version 1 Last Reviewed: 3/4/2026
23 EXHIBIT “B”

CERTIFICATES OF INSURANCE
397

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Holly Stuart, Public Works Program Manager Arturo Vela, Director of Public Works
MEETING DATE: September 22, 2026
SUBJECT: Consideration of Resolution 2026-128, Awarding a Professional Services Agreement to R3 Consulting Group, Inc. for Audit and Performance Review of Solid Waste, Recycling and Organics Services in the amount of $75,000 and Rejecting All Other Proposals
STAFF RECOMMENDATION:

Adopt Resolution 2026-128
BACKGROUND:

The City provides solid waste, recycling, and organics collection services through an exclusive franchise agreement with Waste Management (WM). The current Collection Services Agreement became effective July 1, 2021, and includes provisions that allow the City to independently evaluate the Contractor’s compliance and performance.

The audit will independently evaluate the accuracy of customer billing and franchise fee payments, assess compliance with contractual and regulatory requirements, and identify opportunities to improve solid waste, recycling, and organics service delivery. The review will also strengthen the City’s ongoing oversight of the franchise agreement and help ensure that ratepayer and City resources are managed effectively.

Article 12 of the Franchise Agreement authorizes the City to conduct billing audits and performance reviews using a qualified, independent consultant. The review is intended to verify that customer rates and billings are accurate, franchise fees and other required payments have been properly calculated and remitted, required reports and supporting data are reliable, diversion percentages are accurate, and contractual performance standards and service obligations are being met. The first review covers the period beginning July 1, 2021 through approximately June 30, 2026.

To perform this review, the City released Request for Proposals No. 26-131 for Audit & Performance Review of Solid Waste, Recycling and Organics Services through the City’s ProcureNow/OpenGov procurement system. The City released the solicitation on June 22, 2026, with proposals due on July 22, 2026. The requested scope included Agreement compliance mapping; billing, rate, and revenue verification; franchise fee and financial review; reporting and data verification; diversion and program performance review; operational and service performance review; customer service and complaint review; interviews and field observations; records review; and preparation of an Audit Work Plan, Compliance Checklist, Draft and Final Audit Reports, and presentation of findings.

In response to the RFP, the City received eight proposals which were ranked in the following order:
398

1. R3 Consulting Group, Inc.

2. GPP Analytics

3. MSW Consultants

4. Raftelis Financial Consultants, Inc.

5. Weaver and Tidwell, L.L.P.

6. Macias Gini & O'Connell

7. Clark Nuber P.S.

8. Robert D. Niehaus, Inc.

A three-member evaluation committee reviewed the proposals using the criteria established in the RFP:

Qualifications (25 points), Pricing (10 points), Experience (20 points), Professional References (10 points), Approach and Methodology (30 points), and Value Added Services (5 points). Following the committee’s review, R3 Consulting Group, Inc. received the highest overall score.

R3 specializes in solid waste and recycling consulting for public agencies and proposed a team with experience in franchise agreement compliance, billing and rate verification, financial and franchise fee review, diversion and regulatory reporting, customer service, and operational performance. R3’s proposed team is supported by Armanino LLP, whose CPA-level review will help verify financial records and franchise fee calculations.

R3 proposes a structured, evidence-based review that combines Agreement and records review, financial reconciliation and transaction testing, interviews with management and frontline personnel, onsite facility inspections and collection-route observations, and comparison of reported performance to contractual requirements and relevant benchmarks. The approach includes a dynamic Compliance Checklist, risk-based testing, exception-based financial analysis, and a corrective action roadmap intended to support future City oversight.

R3 proposes to complete Tasks 1 through 9 (see attached R3 Proposal) of the required scope for a total maximum cost of $75,000. The core engagement is anticipated to take approximately eight months following Notice to Proceed, subject to timely access to records and personnel. R3 also identified an optional Task 10 (on-call services) at $25,000; that optional work is not included in the recommended base award and would require separate City Council action and budget appropriation.

JUSTIFICATION:

R3 Consulting Group, Inc. received the highest overall score from the evaluation committee and demonstrated directly relevant experience conducting solid waste franchise audits, billing and fee reviews, compliance evaluations, and operational performance reviews for California public agencies.

R3’s proposed methodology closely aligns with the City’s requested scope and provides both financial and operational review capabilities. The proposed work will provide the City with documented findings regarding WM’s compliance with the Franchise Agreement, identify financial or service-related discrepancies where applicable, and provide recommendations and tools to strengthen future contract administration and oversight.

Staff recommends awarding the Professional Services Agreement to R3 Consulting Group, Inc. in a notto-exceed amount of $75,000 for Tasks 1 through 9 and rejecting all other proposals received in response to RFP No. 26-131.

FISCAL IMPACT:

The proposed Professional Services Agreement with R3 Consulting Group, Inc. shall not exceed $75,000 for the base audit and performance review. Article 12.01.1.3 of the Franchise Agreement requires the Contractor, WM, to contribute up to $75,000 toward the cost of each periodic audit and performance review. Because R3’s proposed base fee is $75,000, there is no impact on the General Fund, as the costs for these services will be paid through the payment obligation in accordance with the 399
Franchise Agreement.

Optional follow-up review services included in R3 Consulting Group, Inc.'s proposal beyond the not-toexceed amount of $75,000 shall only be performed if separately authorized in accordance with the Franchise Agreement, with subsequent approval from the City Council, and with available funding.

ATTACHMENTS:

1. Reso_2026-128_revised_JT.docx

2. R3 Proposal.pdf

3. Contract_No._C01294_R3_Draft_Agreement JT edits.docx 400
Resolution 2026-128

RESOLUTION 2026-128

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BANNING, CALIFORNIA, AWARDING A PROFESSIONAL SERVICES AGREEMENT TO R3 CONSULTING GROUP, INC.

FOR RFP NO. 26-131, AUDIT & PERFORMANCE REVIEW OF SOLID WASTE, RECYCLING, AND ORGANICS SERVICES, IN A NOT-TO-EXCEED AMOUNT OF $75,000 AND REJECTING

ALL OTHER PROPOSALS
WHEREAS, the City provides solid waste, recycling, and organics collection services through an exclusive franchise agreement with Waste Management, effective July 1, 2021, and Article 12 authorizes the City to conduct billing audits and performance reviews through a qualified, independent consultant; and
WHEREAS, the first review covers the period beginning July 1, 2021, through approximately June 30, 2026, and is intended to verify customer billing and rates, franchise fees and other payments, reporting and performance standards, diversion percentages, and other objectively measurable requirements of the Franchise Agreement; and WHEREAS, to obtain qualified independent professional services, the City released Request for Proposals No. 26-131 for Audit & Performance Review of Solid Waste, Recycling, and Organics Services through the City’s ProcureNow/OpenGov procurement system on June 22, 2026, with proposals due July 22, 2026; and
WHEREAS, the City received eight (8) proposals, and a three-member evaluation committee reviewed and scored the proposals based on Qualifications, Pricing, Experience, Professional References, Approach and Methodology, and Value Added Services; and WHEREAS, R3 Consulting Group, Inc. received the highest overall evaluation score of 96.17 points and demonstrated directly relevant experience and a methodology responsive to the City’s required scope; and
WHEREAS, R3 Consulting Group, Inc. proposed a total maximum cost of $75,000 for Tasks 1 through 9, with an optional follow-up review identified separately and not included in the recommended base award; and
WHEREAS, Article 12.01.1.3 of the Franchise Agreement requires the Contractor to contribute up to $75,000 toward the cost of each review and the recommended base award is within that amount; and
WHEREAS, staff recommends awarding a Professional Services Agreement to R3 Consulting Group, Inc. in a not-to-exceed amount of $75,000 and rejecting all other proposals received in response to RFP No. 26-131.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Banning as follows:
401
Resolution 2026-128

SECTION 1. The City Council approves a Professional Services Agreement with R3 Consulting Group, Inc. for Audit and Performance Review of Solid Waste, Recycling and Organics Services under RFP No. 26-131 in a total not-to-exceed amount of $75,000 for Tasks 1 through 9 of the base scope, and rejects all other proposals received in response to RFP No. 26-131.

SECTION 2. City Council authorizes the City Manager or designee to make necessary nonsubstantive revisions to the agreement, execute the agreement and related purchase orders and documents necessary to implement the agreement, and make necessary budget adjustments, appropriations, transfers, reimbursement processing, and account coding assignments related to the audit and performance review.

SECTION 3. Any optional follow-up review or additional services beyond the awarded base scope shall only be performed if separately authorized in accordance with the Franchise Agreement, with subsequent approval from the City Council, and with available funding.

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

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

Richard Royce, Mayor
City of Banning
ATTEST:

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

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney,
LLP
402
Resolution 2026-128

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-128, was duly adopted by the City Council 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, Deputy City Clerk
City of Banning, California
403
Resolution 2026-128

Exhibit A
Draft Agreement
404
17875 Von Karman Ave., Suite 150, Irvine, CA 92614 | p 916.782.7821 | f 916.782.7824 | www.r3cgi.com July 21, 2026
Ms. Ellen Clifford, Purchasing Manager
City of Banning
submitted via the City’s portal: https://procurement.opengov.com/portal/banning-ca/projects/267451 SUBJECT: RFP 26-131 Audit and Performance Review of Solid Waste, Recycling, and Organics Services - R3 Proposal
Dear Ms. Clifford,
The City of Banning (City) is entering a critical juncture with its solid waste, recycling, and organics franchise:
after five years of service delivery, the City is owed a clear, independent accounting of whether its franchised hauler has held up their end of the agreement, from the rates charged to residents and businesses to the franchise fees paid to the City, to diversion and state reporting obligations. Getting that accounting right matters because it gives the City confidence ratepayers are being billed fairly, the City is collecting every dollar of franchise fee revenue it’s owed, and the hauler’s reported performance reflects what’s actually happening on the ground. R3 specializes in solid waste and recycling consulting throughout California, and our team has conducted this exact type of franchise audit, covering billing and rate verification, franchise fee recalculation, diversion and reporting accuracy, and operational performance, for cities and counties across the state. Our team of specialists will bring that same rigor to this audit, giving the City a thorough, well-documented basis for any corrective action or contract discussions that follow.

Project Team
Rose Radford will serve as Project Lead, providing senior technical direction and independent review of all findings. Sarah Koplowicz will serve as Project Manager and the City’s primary point of contact, overseeing the audit day to day. Carrie Baxter, who brings prior familiarity with the City’s solid waste program, will provide strategic oversight in support of Rose. Rounding out the team are Claire Wilson, Jordan Muratsuchi, Maryann Hulsman, Rosene Nguyen, and Gauvri Nathwani, whose collective experience spans franchise compliance, billing and rate verification, reporting, and customer service review across California jurisdictions. The team is further supported by Ryan Teed, CPA, a Partner at Armanino LLP (Armanino), who will provide independent CPA-level verification of the hauler’s financial records and franchise fee calculations.

Contact Information
Name: Sarah Koplowicz, Managing Consultant
Phone Number: m 415.686.3398 | o 916.782.7821
Email Address: [email protected]
* * * * *
Thank you for this opportunity to continue to be of service in your community. If you have any questions regarding our proposal or need additional information, please contact us.

Sincerely,
Rose Radford | Principal Sarah Koplowicz | Managing Consultant R3 Consulting Group, Inc. R3 Consulting Group, Inc.
415.347.9536 | [email protected] 415.686.3398 | [email protected] 405
A. Statement of Understanding and Approach
page 1
B. Company Information
page 15
C. Company Personnel
page 16
D. Disclosure
page 27
E. Experience and References
page 28

TABLE OF CONTENTS TABLE OF CONTENTS
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services TOC 406 City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 1 A. STATEMENT OF UNDERSTANDING AND APPROACH
Understanding of Services, General Approach, Organization, Staffing, and Preliminary Research Requested
R3 understands that the City of Banning is seeking an independent, comprehensive, and well-documented assessment of WM’s compliance with the City’s Franchise Agreement and its performance in providing solid waste, recycling, and organics services during the period beginning July 1, 2021, through approximately June 30, 2026. The purpose of the review is to determine objectively measurable Agreement requirements have been satisfied, whether customers and the City have been billed and compensated correctly, whether required programs are operating effectively, and whether WM’s management, operational, customer service, safety, maintenance, and reporting practices support reliable and accountable service delivery.

R3 proposes a structured, evidence-based approach that integrates five complementary methods:
› Agreement and records review.
› Financial reconciliation and transaction testing.
› Interviews with management and frontline personnel.
› On-site facility inspections and collection-route observations. › Comparison of reported performance against historical results, contractual standards, recognized industry metrics, and comparable operations.

Using multiple sources of evidence will allow R3 to validate the information reported by WM. Contract provisions will be traced to records, financial data, operating practices, field observations, and interview results. Where evidence from different sources is inconsistent, R3 will investigate the discrepancy, document the basis for its conclusion, and identify any limitations affecting the finding.

R3 anticipates organizing field observations around five principal areas: management and administration; customer service; safety and training; collection operations; and vehicle maintenance, repair, and replacement. We have assumed up to three coordinated on-site visits may be conducted so that interviews, facility observations, financial testing, and route observations can be completed efficiently while minimizing disruption to WM’s operations.

Sarah Koplowicz will be the Project Manager, serving as the City’s primary point of contact and overseeing technical, operational, and financial work. Sarah will be supported by the proposed project staff who each have relevant expertise in franchise agreement compliance, solid waste operations, customer service, diversion programs, financial analysis, billing audits, and municipal solid waste regulation. The Project Lead, Rose Radford, will provide contingency support and senior-level quality assurance review to enhance continuity and technical oversight. Ryan Teed, CPA, a Partner at Armanino, will review the financial and billing analyses. This structure combines clear accountability with sufficient depth and redundancy to maintain progress when tasks occur concurrently or service needs fluctuate.

Implementation Plan, Project Management Controls, and
Stakeholder Engagement
Immediately following notice to proceed, R3 will establish the administrative and technical foundation. We will designate the project team, confirm the Project Manager and primary points of contact, schedule a virtual kick-off meeting within two weeks, establish secure file-sharing procedures, issue a comprehensive Request for Information, finalize the schedule, and coordinate interviews and site visits.

The kick-off meeting will be used to:
› Confirm the review period, scope, priorities, and intended use of the findings. › Establish communication, document-exchange, confidentiality, and escalation protocols.

A. STATEMENT OF

UNDERSTANDING & APPROACH
407
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 2 › Confirm the required deliverables and review procedures. › Identify known concerns, prior disputes, or areas warranting additional attention. › Establish contacts and coordination procedures involving WM. › Confirm the format and timing of progress meetings.
› Review the preliminary information request and fieldwork plan.

R3’s Request for Information will be organized by workstream so that the City and WM can readily understand what is requested, the applicable review period, the preferred format, and the requested delivery date. R3 will maintain a request log showing the status, receipt date, completeness, and any follow-up needed for each item.

Project management controls will include:
› Milestone and Deliverable Tracking: R3 will maintain a detailed project schedule showing each task, responsible team member, anticipated duration, deliverable, and review point. › Regular Coordination: R3 will conduct periodic coordination meetings with City staff and provide concise progress updates identifying completed work, upcoming activities, schedule status, emerging findings, decisions needed, and unresolved information requests.
› Budget and Scope Control: Work will be monitored against the authorized scope and budget. Potential changes will be identified early and discussed with the City before out-of-scope work is undertaken. › Quality Assurance and Quality Control: Analyses and deliverables will undergo technical review for factual accuracy, mathematical integrity, consistency with the Agreement, adequacy of supporting evidence, and clarity of recommendations. Financial analyses will receive review by the appropriately credentialed financial professional. › Findings Validation: Before finalizing conclusions, R3 will trace material findings to supporting evidence and, where appropriate, provide WM an opportunity to clarify factual information or identify additional documentation.

This factual-validation step will not compromise R3’s independence or give WM authority over the conclusions; its purpose is to reduce the risk that any finding results from incomplete information or misunderstanding.

Although this is principally a technical audit and performance review, carefully structured stakeholder input is essential. Internal stakeholder engagement will consist of kick-off and coordination meetings with City staff, targeted interviews, review of preliminary observations, and confirmation that recommendations respond to the City’s priorities.

External engagement will primarily involve structured interviews with WM personnel who are directly responsible for the systems and practices being reviewed.

Depending on roles and availability, these may include:
› Executive, administrative, and operations management. › Financial, accounting, and billing personnel.
› Customer service representatives and supervisors.
› Dispatchers, route supervisors, and drivers.
› Safety and training personnel.
› Fleet maintenance management and technicians.

R3 will use interview guides tailored to each functional area, while allowing follow-up questions based on the information obtained. Significant interview results will be documented in summaries or work papers and corroborated through records or observations wherever feasible. Field observations will be documented through standardized checklists, notes, and photographs. This consistent documentation process will allow evidence from interviews and observations to be incorporated transparently into the Compliance Checklist and audit findings. R3’s planned controls and coordinated fieldwork will facilitate meeting the City’s stated requirements of providing an independent work product that is supported by verifiable data and conducted without unduly interfering with operations.

Client Satisfaction
R3 defines client satisfaction for this engagement as the delivery of an independent, accurate, practical, and defensible assessment that gives the City a clear understanding of:

1. Whether WM has complied with the objectively measurable requirements of the Agreement.

2. Whether customer rates, billings, revenues, and City payments are accurate.

3. Whether required reports and supporting data are reliable.

4. Whether recycling and organics programs are achieving their intended results.

A. STATEMENT OF

UNDERSTANDING & APPROACH
408
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 3

5. Whether operations, customer service, equipment, facilities, staffing, training, and safety practices support effective service.

6. What financial or operational consequences are associated with any deficiencies.

7. What actions the City and WM should take to correct deficiencies and strengthen future oversight.

Our performance reviews are designed to provide the City with a practical framework for administering the Agreement, monitoring ongoing compliance, and improving the reliability of future reporting and performance oversight. The result of this process usually concludes in a corrective action plan with regular check-ins between the City and the hauler to confirm that corrective actions have been taken, and compliance with the Franchise Agreement has been achieved.

Project Schedule and Deliverables
R3 anticipates completing the core engagement over approximately eight months following Notice to Proceed, subject to timely access to records and personnel.

PHASE ANTICIPATED TIMELINE PRINCIPAL ACTIVITIES AND DELIVERABLES

1. Data Collection and
Kick-off Meeting September 2026
– Kick-off Meeting
– Final Work Plan
– Comprehensive Information Request
– Secure Data-Transfer Procedures
– Document Inventory
– Interview and Fieldwork Planning

2. Franchise Agreement
Compliance Review September – December 2026
– Agreement Review
– Identification of Objectively Measurable Provisions
– Development and Population of Compliance
Checklist
– Preliminary Compliance Testing

3. Billing, Rates, and
Revenue Verification October 2026 – January 2027
– Customer Billing Tests
– Rate and Service-Level Validation
– Revenue Transaction Testing
– Gross Receipts Verification

4. Franchise Fees and
Financial Review October 2026 – January 2027 – Franchise Fee Recalculation – Financial Control Review

5. Reporting and Data
Verification October 2026 – January 2027
– Monthly and Annual Report Review
– Contamination Reporting Review
– Regulatory Reporting Support Review
– Data Reliability Assessment
A. STATEMENT OF

UNDERSTANDING & APPROACH
409
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 4

6. Diversion and Program
Performance Review October 2026 – January 2027
– Monthly and Annual Report Review
– Diversion and Material Recovery Verification
– Contamination Reporting Review

7. Operational and
Service Performance
Review
November 2026 – February 2027
– Management and Administrative Review
– Safety and Training Review
– Vehicle and Equipment Review
– Facility Visits
– Interviews
– Route Observations
– Benchmarking

8. Customer Service and
Complaints Review November 2026 – February 2027 – Customer Service and Complaints Review

9. Draft and Final Report
and Presentation(s) March – April 2027
– Incorporation of City Comments
– Final Audit Report
– Presentation Materials
– Presentation to City Staff and/or City Council

10. On-Call Support
(Optional) As Directed
– Verification of Corrective Actions
– Expanded Analysis
– Benchmarking
– Implementation Planning
– On-Call Technical Support
Transition Plan
Upon authorization to proceed, R3 will:
› Confirm and mobilize the project team.
› Designate the Project Manager and backup contact.
› Schedule the kick-off meeting within two weeks.
› Establish secure file-sharing and confidentiality procedures. › Issue the initial information request.
› Confirm the detailed schedule and communication plan. › Obtain and organize the Agreement, amendments, prior reports, correspondence, and City financial records. › Coordinate introductions and document requests involving WM. › Schedule the first round of interviews and on-site activities. › Begin development of the Compliance Checklist.

This transition plan allows productive work to begin immediately while the response to the data request is being assembled by WM.

A. STATEMENT OF

UNDERSTANDING & APPROACH

PHASE ANTICIPATED TIMELINE PRINCIPAL ACTIVITIES AND DELIVERABLES 410
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 5 Fluctuations in Service Needs and Associated Price Adjustments R3’s team structure provides the ability to adjust staffing among technical, operational, and financial workstreams as records become available or project priorities change. Separate task expertise and senior contingency support will allow work to progress concurrently and reduce reliance on any single individual, an approach R3 has successfully used for complex assignments with overlapping deadlines.

R3 will first address routine fluctuations through internal workload management, re-sequencing of activities, and use of available staff within the authorized scope and budget. Examples may include accelerating financial testing while operational records are pending, conducting virtual interviews before a site visit, or reallocating staff to address a time-sensitive City concern.

No associated price adjustment will be made because tasks occur in a different sequence or R3 elects to use additional internal resources to maintain the schedule. A price or schedule adjustment would be considered only when the City requests a material expansion or change in scope. In those circumstances, R3 will first provide the City with a written description of the requested change, reason for the change, proposed methodology, schedule effect, and notto-exceed cost. R3 will not proceed with additional-cost work without City authorization.

Roles and Responsibilities
The project has been designed to minimize demands on City staff while ensuring that the City retains policy direction, oversight, and control of the engagement.

City Staff Responsibilities
› Designate a project manager and appropriate decision-makers. › Participate in the kick-off meeting and scheduled coordination meetings. › Provide available Agreement documents, amendments, reports, correspondence, rate schedules, payment records, prior findings, and other City-held information. › Identify known concerns, disputed issues, and priorities for the review. › Authorize and facilitate R3’s direct coordination with WM. › Assist in resolving material access issues or overdue information requests. › Provide applicable City policies and interpretations when needed. › Review draft deliverables.
› Provide consolidated comments within agreed-upon review periods. › Make policy decisions when alternative approaches are presented. › Coordinate the scheduling of any presentation to City staff, committees, or the City Council.

The City will not be expected to perform the underlying compliance testing, financial reconciliation, operational analysis, interview documentation, or report preparation.

R3 Responsibilities
› Manage the project, schedule, budget, communications, and quality assurance process. › Prepare and administer the comprehensive information request. › Maintain the information request, issue, decision, and schedule logs. › Review and map the Agreement’s objectively measurable requirements. › Develop and maintain the Compliance Checklist.
› Review records, systems, and supporting documentation. › Conduct interviews, facility inspections, route observations, and other fieldwork. › Perform billing, revenue, gross receipts, and franchise fee testing. › Evaluate reporting, diversion, contamination, and regulatory data. › Assess customer service, collection operations, staffing, safety, training, facilities, vehicles, maintenance, and management practices.
› Benchmark appropriate practices and performance metrics. › Identify and document data limitations.

A. STATEMENT OF

UNDERSTANDING & APPROACH
411
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 6 › Develop findings, quantify impacts where feasible, and prepare practical recommendations. › Prepare reports, presentations, calculations, and supporting schedules. › Present findings to City staff and/or the City Council. › Maintain confidentiality, independence, and professional objectivity throughout the engagement.

R3 will coordinate its activities to avoid unnecessary duplication of requests and undue interference with WM’s operations. City staff will provide strategic oversight and decisions; R3 will independently perform and document the technical work.

Innovative, Creative, and Alternative Service Delivery Approaches R3 proposes several approaches intended to increase efficiency, reduce City staff burden, improve the defensibility of conclusions, and strengthen the value of the review beyond the delivery of a conventional narrative audit report.

Dynamic Compliance Checklist
Rather than treating the Compliance Checklist as a static final deliverable, R3 will use it as the central project-control tool throughout the engagement. Each measurable Agreement provision will be linked to the applicable evidence, test procedure, status, deficiency, financial or operational effect, and recommendation.

This will:
› Reduce the risk that an Agreement requirement is overlooked. › Provide a transparent audit trail.
› Allow the City to see how conclusions were reached.
› Distinguish missing evidence from demonstrated noncompliance;. › Give the City a reusable framework for future contract administration.

Where practical, the final checklist can include fields the City may continue using after completion of the review, such as responsible party, reporting frequency, due date, evidence required, and follow-up status.

Risk-Based Testing and Escalation
R3 will initially test representative transactions and time periods across the five-year review window. Where a sample identifies an error, recurring inconsistency, weak control, or material variance, we will evaluate whether expanded testing is warranted. This approach concentrates resources where risks are greatest while avoiding unnecessary testing of low-risk records.

Exception-Based Financial Analysis
Where data quality permits, R3 may use electronic data analysis to identify unusual billing codes, unapproved rates, duplicate or inconsistent accounts, unexpected service combinations, outlier adjustments, inactive accounts with charges, unusual write-offs, or discrepancies between subscription and billing information. Exception testing can identify issues that may not be apparent from a purely random sample.

Corrective Action Roadmap
The Final Audit Report may organize recommendations by priority, responsible party, implementation timeframe, and required evidence of completion. This would allow the City to distinguish immediate financial or compliance matters from longer-term process improvements and provide a clear foundation for an optional follow-up review.

Hybrid Service Delivery
R3 proposes to use a hybrid combination of virtual and on-site work. Kick-off and routine coordination meetings can be held virtually to reduce travel time and cost, while on-site resources will be concentrated on activities that benefit most from direct observation, including facility inspections, financial record testing where required, staff interviews, customer service observation, route ride-alongs, and vehicle maintenance review.

A. STATEMENT OF

UNDERSTANDING & APPROACH
412
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 7 Coordinated Fieldwork
R3 will group interviews and observations by location and functional area, develop interview schedules in advance, and provide focused document lists for on-site review. This will reduce interruptions to WM and allow several review objectives to be addressed during each site visit.

Factual Review Without Loss of Independence
Before issuing the Draft Audit Report, R3 may provide preliminary factual findings to WM for clarification and additional documentation. R3 will independently determine whether any response changes a finding. This process can improve factual accuracy and reduce unproductive disputes while preserving the City’s control of the engagement and R3’s independence.

Tools that Support Future City Oversight
Where opportunities are identified, R3 may recommend or develop practical tools such as:
› Standardized monthly and annual reporting templates.
› Franchise fee reconciliation schedules.
› Contract-administration calendars.
› Complaint and missed-service dashboards.
› Corrective action tracker.

These tools will be designed to reduce recurring administrative effort and help the City identify future issues earlier.

Use of City-Owned Facilities or Property
R3 does not propose to lease, purchase, rent, or obtain exclusive use of any City-owned facility, property, vehicle, equipment, or other asset in connection with this engagement. No City-owned property is required to support R3’s proposed pricing or methodology, and there is therefore no related effect on the cost proposal.

Scope of Work
Task 1 Data Collection and Kick-Off Meeting
Task 1.1 Document Request and Review
R3 requests the following information be provided, as available:
› From the City
– Correspondence between the City and WM regarding any relevant contractual matters (e.g., service complaints, financial issues).
– Accounting of Franchise Fee and any other applicable payments received from WM for FY 2021-2026. – Copies of historical annual reports received from WM for fiscal years 2021-2026. – Franchise Agreement and amendments.
› From WM
– Organizational chart and applicable job descriptions. – List of daily routes by line of business.
› Collection Operations
– Employee handbook, policies and procedures, safety handbook, employee manuals and/or work rules. – List of safety, operations, customer service, financial, vehicle maintenance and other performance benchmarks that are tracked and historical performance relative to those benchmarks for the past five (5) fiscal years.
– Workers’ compensation and on-the-job injury summaries (OSHA Form 300 and Form 300A) for the past three years; Historical TRIR, DART, and VARR rates (if tracked). – Experience modification factors for the past five years. – Record of collection for the bulky waste (date service requested, date service received, CY collected, etc.) for selected audit months: Q3 2021, Q4 2022, Q1 2023, Q2 2024, Q3 2025. – Record of collection for the illegal dumping waste collected for selected audit months: Q3 2021, Q4 2022, Q1 2023, Q2 2024, Q3 2025.

A. STATEMENT OF

UNDERSTANDING & APPROACH
413
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 8 – Description of routing/mapping software used, and any monitoring software (GPS/GIS) used, if applicable. – Documentation of any regulatory violations.
– New hire and refresher training program documentation. – Copies of annual training schedules and documentation of training completed. – Supervisor route observation policies and procedures. – Copies of vehicle load overweights for the past five years. – Policies and procedures for monitoring overweight vehicles. – Vehicle list, including vehicle legal load weights, and vehicle replacement schedule. – Vehicle spill log for the last five years.
– Contingency plan for service interruptions.
– Copy of a non-service warning tag (such as incorrect setouts). – Record of use of non-service warning tag past five years. › Customer Subscription, Billings, and Fee Payments
– Excel file with current customer subscription levels detailing by customer account, the service level, billing rate, service address, day of service, and special categories such as on-premises service, key service, etc. (SFD, MFD, Commercial, City).
– A complete list of billing codes.
– The current approved rate schedule and rate schedules for 2021-2025. – Covered generators that have not subscribed to commercial recycling and commercial organics programs. – Annual, monthly, and quarterly billing registers for 2021-2026. – Current route maps by service day (SFD, MFD, Commercial). – List of roll-off permanent customers with addresses.
– Historical diversion and disposal tonnages by material stream, line of business (residential, commercial, rolloff) and program (e.g., residential curbside, residential organics, commercial recycling, C&D recovery, etc.); and supporting documentation for 2021-2026 reported diversion rates. – Monthly summary of gross receipts and corresponding franchise fees (and any other fees) paid to City for 2021-2026.
– Documentation any liquidated damages paid to the City. – Audited financial statements supporting annual “Gross Rate Revenues” for 2021-2026. › Customer Service and Public Education and Outreach
– Customer complaint log with resolutions for selected audit months. – Missed pickup records 2021-2026.
– Emails, letters, or other logs from residents expressing thanks/good service 2021-2026. – Report on outreach activities undertaken, 2021-2026.
– Report on notifications, technical assistance, and site visit activities undertaken, 2021-2026. – Publicity and advertising materials provided to the public, including materials on HHW services 2021-2026. › Facilities
– Documentation on approved facilities for processing collected materials.

Some of the above-listed items can be reviewed on-site.

Task 1.2 Kick-Off Meeting
R3 will schedule a virtual Kick-Off Meeting with the City within two weeks of authorization to proceed, to confirm the scope of work, project schedule, deliverables, communication protocols and audit priorities.

Task 2 Franchise Agreement Compliance Review
R3 will document and review Agreement items requiring, among other things, that WM provide specific services, meet specific performance standards, track and document information, and submit payments, information, or reports.

The following are examples of items that may be reviewed, the City may request additional items:
› Review of diversion compliance with Article 5 of the Agreement. › Review of public education and outreach materials and requirements in Article 15 of the Agreement.

A. STATEMENT OF

UNDERSTANDING & APPROACH
414
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 9 › Review and observation of WM’s customer service functions and structure. › Review of WM’s protocols for addressing customer complaints and procedures for service interruptions, such as complaint logs and tracking systems.
› Interviews and discussions with WM’s administration and management personnel. › Interviews and discussions with WM’s financial and accounting personnel. › Interviews and discussions with route dispatchers, route drivers, vehicle maintenance supervisors, field and service supervisors, and managers.
› Review of on-route collection services, including observation of driver performance, collection productivity, and visual inspection of residential routes before/after collection to evaluate cart placement and cleanliness of streets. › Review of vehicle and equipment maintenance log and accident or vehicle incident records, if any.

To structure our review, we shall develop a Compliance Checklist that will list the major objective contractual requirements to be assessed as part of the Performance Review, with supporting documentation and findings, including compliance status, tracked for each of the identified terms from the Agreement.

Task 2 Deliverables
— Ensuring that compliance standards are being achieved as agreed upon by the City and WM via the Agreement. — Recommendations for City monitoring/enforcement of standards throughout the remainder of the Agreement.

Task 3 Billing, Rates, and Revenue Verification
Our verification of billing, rates, and revenue is designed to address the following:
› Verify each customer receives the service for which the customer is being billed in accordance with approved rate schedules (Task 3.1).
› Verify that the billed amounts to City residents and businesses, and the corresponding payments received are properly recorded in the WM billing and accounting systems. (Task 3.2) R3 anticipates that WM will provide access to the required financial and operational records, including monthly and annual reports. If access to the records is not granted, or the records are unavailable, the testing protocol will be modified to include records that are available.

Task 3.1 Audit of Billings
The purpose of the Audit of Billings is to determine the extent to which residential and commercial subscribers are billed correctly for the level of service provided, and whether billings are consistent with the appropriate rate schedule.

The Audit of Billings will include the following items:
› A review of service levels and charges from one billing cycle per year for FY 2021-2026 to determine if the rates charged for the various service levels are consistent with the approved rate schedule. › A review of one billing cycle per year for FY 2021-2026 to determine if rates charged have been approved (e.g., are there any charges that are billed but are not listed on the approved rate schedule such as finance charges, push/pull charges, etc.).

At the conclusion of these tests, R3 will make a determination of the level of accuracy of WM’s subscriber billing system, and formulate suggestions, as appropriate, to improve the accuracy of the system. As part of this task, R3 will review the status of delinquent accounts and collections.

Task 3.2 Test of Revenue Transactions
The purpose of this test is to determine if revenues from subscription services are properly recorded in the WM accounting system. A random sample of residential and commercial subscribers’ transactions will be selected for the test period. Each transaction will be tested to verify that the billed amount and corresponding payment were properly posted in the billing and accounting systems. In the event that payments were not received, the test procedure will include a review of the documentation of the authorization to write-off the account as uncollectible.

At the conclusion of this test, R3 will make a determination of the accuracy of the accounting and billing systems to record billed receivables and payments, and will formulate suggestions, as appropriate, to improve the accuracy of the system.

A. STATEMENT OF

UNDERSTANDING & APPROACH
415
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 10 Task 3 Deliverables
— On-site review and testing of WM’s financial records. — Results of the Audit of Billings and Test of Revenue Transactions Task 4 Franchise Fees and Financial Review
Our verification of franchise fees is designed to address the following:
› Verify that the franchise fees are calculated correctly and based on the correct level of recorded revenues.

R3 will test the franchise fee transactions from WM to determine if properly calculated and paid in accordance with the terms of the Agreement. A statistically significant sample of franchise fee payments will be selected for the test period.

Each selected transaction will be tested to verify that the calculation is based on the appropriate gross revenue and franchise fee percentage. This process will also include a verification of the number of residential and commercial subscribers for the months tested, by service level, to ensure that gross revenues were calculated correctly by WM.

Finally, we will compare the calculated franchise fee payment to the payment received by the City.

At the conclusion of this test, R3 will make a determination of the accuracy of the methodology used to calculate franchise fees, and if franchise fees are correctly paid and received as calculated.

Task 4 Deliverables
— On-site review and testing of WM’s financial records. — Results of the test of franchise fee transactions.

Task 5 Reporting and Data Verification
R3 will evaluate the completeness, accuracy, and timeliness of reports required under the Agreement, in order to assess data reliability, consistency across reporting systems, and adequacy of documentation.

The verification of reporting data and systems shall include the following subtasks:
› Monthly and annual reports: R3 will review annual reports for the review period and at least one monthly report per year for 2021-2026 for compliance with the Agreement. › Gross receipts: R3 will review gross receipts from the review period, per Task 1.1. › Diversion and material recovery data: R3 will review diversion and material recovery data, per Task 6. › Contamination monitoring: R3 will review contamination reporting from route reviews for compliance with the Agreement, for at least one contamination report per year for the review period. › Regulatory reporting support: R3 will review WM’s regulatory reporting support including CalRecycle related data and reporting requirements.

Task 5 Deliverables
— Findings and recommendations for Task 5 to be included in the Task 9 Draft and Final Reports. — Recommendations for additional reporting procedures.

Task 6 Diversion and Program Performance Review
R3 will assess WM’s diversion performance and the effectiveness of recycling programs. This shall include verification of reported diversion rates, evaluation of program performance for recycling, green waste and organic waste, review of contamination levels and monitoring program effectiveness, and general assessment of alignment with regulatory requirements and Agreement standards.

Task 6 Deliverables
— Findings and recommendations for Task 6 to be included in the Task 9 Draft and Final Reports. — Recommendations for additional reporting procedures.

Task 7 Operational and Service Performance Review
Task 7.1 Management and Administration Review
This task will provide the City with an assessment of the effectiveness of WM’s management and administrative systems, and identify potential changes or improvements to management practices, policies, and procedures.

A. STATEMENT OF

UNDERSTANDING & APPROACH
416
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 11 This task may include, but is not limited to, the review of the following items:
› Overall organizational structure and management systems and procedures. › Staffing practices, including the deployment of management and supervisory personnel. › Personnel management practices, including the resolution of employee grievances. › Employee job and safety training, and management of hazardous waste. › Usage and management of facilities, equipment, and personnel. › Staffing ratios, including the ratio of customers to management staff, supervisors, dispatchers, drivers, maintenance personnel, customer service and billing representatives, etc. › Data tracking and reporting procedures, including what data is continuously tracked and how data is used to manage the collection operations.
› Employee management policies and procedures.

In conducting this task, we will meet with management and supervisors of WM and review the structure and staffing of their management and administrative systems and operations. We may also interview various front-line staff through a combination of in-person or virtually depending on schedule and availability. Policies and procedures will be reviewed with a focus on how those policies and procedures are implemented and the associated training that is provided to staff. We will also review if and what performance benchmarks have been established and the historical performance relative to those benchmarks.

Systems for collecting and reporting data will also be reviewed. As part of that process, we will request and review management reports that are regularly produced, identify who receives that data, how it is used, and to what extent WM conducts diagnostic reviews based on that data to identify areas that need improvement. We will also review management’s business planning processes, and if/how WM establishes and executes operational priorities.

Key questions to be answered include:

1. Is there effective, functional management, responsibility, and accountability for the primary franchise functions?

2. Are there clearly defined and documented responsibilities for key management, administrative, and operational functions?

3. Is there a clearly defined chain of command and reporting relationships?

4. Are there clear and established performance standards (benchmarks)? Is performance tracked according to those standards? Is staff held accountable for performance, both good and bad?

5. Is there a formally documented annual staff performance review process?

6. What are WM’s strengths, limitations, and opportunities for improvement? Task 7.2 Collection Operations Review
As part of this task, we will provide the City with an assessment of the effectiveness of WM’s collection operations to determine if WM has an effective driver training program and if they have a reasonable number of route supervisors.

Additionally, we will gauge the effectiveness of route supervision, if WM is actively monitoring driver performance, and whether drivers are providing collection services in a safe and effective manner while adhering to the associated requirements of the Agreement.

This subtask may include, but is not necessarily limited to, a review of the following items:
› Review of the efficiency of collection operations, including an analysis of routes, schedules, and the impact of Agreement requirements.
› Field observations/route audits of WM’s residential and commercial collection services, including driver start and end times and visual inspections of residential and commercial routes before and after collection to evaluate cart and bin placement, cleanliness of streets.
› Review of the method of collection and types of materials collected from City facilities. › Review of missed pickup records.
› Review of incidental services.
› Review of worker training program(s).
› Review of supervisor roles and responsibilities.
› Review the current route to supervisor ratio.
› Review of vehicle load weights and procedures for tracking and addressing overloaded vehicles.

A. STATEMENT OF

UNDERSTANDING & APPROACH
417
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 12 The interviews and interactions with WM route supervisors will take place during on-site work. Driver interviews may also be conducted.

Task 7.3 Assessment of Performance Monitoring and Benchmarking Systems R3 will assess the performance benchmarking systems WM has in place for monitoring and improving performance.

As part of our review, and in support of comparing WM’s practices and performance with similar businesses, we will document their existing safety, customer service and performance benchmarking systems, and their current and historical performance relative to those benchmarks.

Based on the information provided, and additional information gathered as part of our review, we will develop a comparison of the current performance of WM to:
› Their internal historical performance.
› Established internal benchmarks.
› Their performance relative to industry standards, and other operations to the extent that information is available.

In the case that WM does not have established benchmarks or is not directly tracking and reporting certain appropriate safety or operational information, we may recommend that they begin tracking and reporting that information.

This may include the following:
› Total Recordable Injury Rate (TRIR): The number of OSHA recordable injuries incurred per 100 full time employees. The lower the TRIR the better.
› Vehicle Accident Rate Report (VARR): The number of operational hours between auto accidents. The higher the VARR the better.
› Lost Time Work Rate: The number of paid total temporary disability employees per 100 employees. › Property Accident Recordable Rate (PARR): The number of operational hours between property accidents. The higher the PARR the better.
› Customer Service Metrics, including:
– Total number of incoming calls.
– Average customer hold time.
– Dropped calls percentage.
– Call log by type of call: missed pickups, bill payments, complaints, compliments, service changes, bulky, etc. – Number of accounts per customer service representative.

Task 7 Deliverables
— Findings and recommendations for Task 7 to be included in the Task 9 Draft and Final Reports. — Recommendations for additional performance metrics to be tracked and reported.

Task 8 Customer Service and Complaint Review
This task may cover the following items:
› Policies and procedures for receiving and resolving customer and service recipient inquiries, complaints and concerns.

R3 will review the current customer service functions and structure utilized by WM, their financial management practices specific to WM’s billing and collection system, and its policies with regards to uncollected customer accounts. This will include the protocol for addressing customer complaints, and service interruption procedures.

Complaint logs will be reviewed and classified into complaint categories, if not already delineated, and missed-pickup records will be reviewed to identify and report statistics of chronically missed customers by customer type and service rendered. We will also review the responsiveness of WM’s customer service representatives to customer inquiries, requests and complaints, average telephone response times, including a sampling during at least one billing period per year of the review, courteousness of representatives, accuracy of information given, and willingness and ability to resolve complaints where applicable.

As part of this task, R3 may conduct separate interviews with customer service and billing staff.

A. STATEMENT OF

UNDERSTANDING & APPROACH
418
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 13 During these interviews, we may review the internal organizational processes for the following customer service and billing functions:
› Data exchange and communication between customer service, routing, marketing/sales, billing, and operations. › Responding to calls from residential and commercial customers regarding inquiries for new service. › Establishing new customer accounts in the billing system. › Coordinating delivery of refuse, recycling, and organics bins or carts. › Establishing service level and collection frequency for new accounts. › Establishing start-dates and service initiation for new accounts. › Establishing end-dates and service termination for closing accounts. › The process and procedures for addressing customer complaints and calls, including missed collection, broken or stolen carts, etc.
› How special billing arrangements for non-standard services are completed. › Resolving delinquent payment (uncollected) customer accounts. › Resolving billing inquiries and complaints.
› Generating and updating route lists.
› Processing and closing work orders in the customer service system. › Tracking of bin placement by number and address.
› Confirming delivery of bins, or carts.

Task 8 Deliverables
— Findings and recommendations for Task 8 to be included in the Task 9 Draft and Final Reports. — Recommendations for additional performance metrics to be tracked and reported.

Task 9 Draft and Final Reports and Presentation(s)
Task 9.1 Preliminary Findings and Draft Report
Upon completion of Tasks 2 through Task 8, R3 recommends that we present our preliminary findings to WM for their review. This step is undertaken to ensure that we have not misinterpreted any of the information that has been provided. Based on comments received from WM, we will make any appropriate adjustments to our findings prior to presenting our Draft Report to the City. R3 will prepare an electronic Draft Report in both Microsoft Word and PDF formats that incorporate the work performed in Task 2 through Task 8.

R3 anticipates that the Draft Report will include, but not be limited to the following sections:
› Executive Summary.
› Introduction.
› Methodology.
› Findings of the Performance Review with recommendations for performance enhancements and improvements. › Findings of the Audit of Billings with recommendations for improvements and summaries of any monetary variances.
› Recommendations of potential liquidated damages in accordance with the Agreement, as appropriate.

Task 9.2 Final Report
Based on written or verbal comments from City staff on the Draft Report, R3 will prepare and submit a Final Report to the City in an electronic PDF format.

Task 9.3 Presentation(s)
Together with City staff, and as necessary, R3 will prepare a PowerPoint presentation that summarizes the findings in our Final Report, with one (1) round of revision. Two (2) virtual presentations will be conducted: one (1) presentation to appropriate staff and subcommittee(s); and one (1) to the City Council.

Task 9 Deliverables
— Electronic copy of the Draft Report (Word) and Final Report (PDF). — One (1) PowerPoint presentation with one (1) round of revisions.

A. STATEMENT OF

UNDERSTANDING & APPROACH
419
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 14 — One (1) virtual presentation of findings to appropriate staff and subcommittee(s). — One (1) virtual presentation of findings to City Council.

Task 10 On-Call Support (Optional)
After the conclusion of the performance review and at the City’s direction, R3 may provide on-call support to the City on an as-needed basis.

This includes the following activities:
› Expanded program performance analysis.
› Benchmarking against industry standards or comparable jurisdictions. › Development of an implementation plan to identify next steps from the performance review. › Support City in implementation of findings and/or corrective actions from the performance review. › Attendance at meetings as directed by the City. This encompasses both in-person and remote meetings and includes setting the agenda for meetings, as directed by the City. › Review of documents, spreadsheets, and other material as directed by City, including contracts, budgets, reports, presentations, etc.
› Preparation of new material or updates on material provided by the City. › Tracking relevant regulations as needed and directed by the City. › Other services as directed by the City.

Task 10 Deliverable
— As mutually determined by City and R3.

Limitations
Our Scope of Work is designed to focus on the major objective contractual requirements, with a more detailed focus on those that are of most interest and importance to the City. In addition to rendering an opinion as to WM’s compliance (with respect to the contractual requirements that are reviewed), it is our intent to also provide the City with an overall assessment of WM’s performance relative to safety, customer service, and effectiveness.

To enable us to conduct as thorough and comprehensive a review possible, our initial information request (Task 1.1) is designed to obtain much of the information that we need to effectively undertake our review and determine WM’s compliance with the related requirements covered under each of our work scope tasks. If requested information is not, or cannot be made available, we will note that in our report and adjust our review and focus accordingly.

A. STATEMENT OF

UNDERSTANDING & APPROACH
420
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 15 B. COMPANY INFORMATION
About R3 - Prime Consultant
Over the past 23 years, we have specialized in providing a diverse range of solid waste management consulting services to public agencies, including competitive procurement and/or extension negotiations of collection, processing and disposal services, development, implementation and monitoring of service contracts and franchise agreements, rate and financial reviews, nexus fee studies, zero waste planning, and legislative compliance. Our team, comprised of 22 staff members, has dedicated their careers to the field of solid waste management, public service, and sustainability, and skillfully deliver expert industry analysis and recommendations to our clients.

We provide a range of services to our clients, including:
› Rate reviews and cost-of-service studies.
› Financial and technical analyses of programmatic and policy alternatives. › Negotiation and procurement assistance for collection, processing, and disposal services. › Development, implementation, and monitoring of service contracts and franchise agreements. › Legislative compliance and audits to ensure compliance is maintained. › Zero waste planning, implementation, and 5- and 10-year updates to zero waste plans based on progress and necessary pivots.
› Operations and performance reviews.

R3 Profile
R3 Litigation Statement
R3 has never, in our 23 year history, had any litigation or claims threatened or filed, or filed then settled, against our firm. Additionally, R3 has never, in our 23 year history, failed to complete any awarded work.

About Armanino - Subconsultant
Armanino is one of the 20 largest independent accounting and business consulting firms in the United States, serving more than 12,000 clients across over 100 countries. Armanino has deep expertise in the solid waste industry, performing financial statement audits and reviews, franchise feeds audits, and consulting and tax services for over 20 solid waste companies. Armanino’s consulting services include identifying unbilled or erroneously billed services, rate analysis and projections based on current and expected economic conditions, and rate application preparation to support negotiations with regulators and city officials. Armanino is a licensed independent CPA firm and a Certified B Corporation.

B. COMPANY INFORMATION
› R3 Consulting Group, Inc. Project Manager, Point of Contact Type of Organization Sarah Koplowicz | Managing Consultant S-Corporation; CA Small Business [email protected]
Established in 2002 m 415.686.3398
› R3 Offices
Headquarters Branch Offices
Northern Bay Area Southern California
1504 Eureka Road, Suite 220 414 13th Street, Suite 450 17875 Von Karman Ave., Suite 150 Roseville, CA 95661 Oakland, CA 94612 Irvine, CA 92614
›
421
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 16 C. COMPANY PERSONNEL
Team Biographies
Professional Team
Rose Radford, Principal: Project Lead and Principal-in-Charge Rose will serve as Project Lead, providing senior technical direction throughout the engagement. Rose has personally led comparable franchise hauler performance reviews and financial audits for cities and counties across California, work that has included recalculating franchise fees, verifying billing accuracy against approved rate schedules, and identifying non-compliant reporting and rate practices, in some cases uncovering unapproved charges and underpayments dating back several years. Her audits have supported jurisdictions through contested rate increases, hauler transitions, and agreement renegotiations, giving her a close working knowledge of how audit findings translate into enforceable corrective action. As Project Lead, Rose will oversee the audit methodology, ensure consistency across each scope area, and provide the independent, senior level review the City can rely on for its findings.

Sarah Koplowicz: Managing Consultant, Project Manager
Sarah will serve as the City’s primary point of contact and manage the audit day to day. Sarah is currently leading billing audits and franchise compliance reviews for several California cities and counties, work that includes recalculating franchise fees, auditing customer billing against approved rate schedules, and verifying hauler reporting and operational compliance, the same areas this audit will examine. That handson experience, paired with close to two decades in the solid waste field, makes her the team member most directly embedded in this kind of engagement, and the City’s most consistent point of contact throughout.

R3 Key Personnel
Carrie Baxter, Principal: Institutional Knowledge Advisor Carrie brings the added benefit of existing familiarity with the City of Banning, having previously led the contract negotiations with WM, and supported the City’s SB 1383 implementation strategy alongside a number of other Southern California jurisdictions. These prior engagements gave her direct exposure to the City’s solid waste program, its regulatory priorities, and its working relationships with City staff, context that allows the audit team to move into this engagement without the ramp-up period a new firm would typically need. With 15+ years in consulting across operational, financial, and legislative compliance projects, Carrie will support by providing institutional continuity and historical program context, helping ensure findings are grounded in an accurate understanding of the City’s existing practices and prior commitments.

Claire Wilson, Sr. Managing Consultant: Compliance and Billing Review Specialist Claire leverages her experience across 80+ municipal clients to support the audit team’s compliance, billing, and reporting review work. Her background combines public policy training with hands-on experience conducting hauler performance and billing reviews, most recently for the City Elk Grove and Vallejo, where she evaluated franchise agreement compliance, operational and maintenance practices, and customer service alongside a full billing audit. That range, paired with strong research and data analysis skills, allows Claire to move fluidly across the audit’s compliance, financial, and reporting components wherever the engagement needs added depth.

Jordan Muratsuchi, Managing Consultant: Franchise Fee and Revenue Verification Specialist Jordan brings deep financial and rate-setting expertise to the audit’s billing and franchise fee review work.

He has personally conducted the type of testing this audit calls for, including a hauler billing and diversion audit for the City of Rancho Cucamonga that verified subscription data, billings, and gross revenues against approved rates and confirmed reported tonnage through weight ticket sampling. He also leads onsite performance reviews of franchised haulers, including an in-depth operational review of the City of West Sacramento’s hauler covering yard operations, pre-trip inspections, and in-field collection activities.

Jordan’s broader portfolio of rate studies, cost-of-service analyses, and fee reviews across California C. COMPANY PERSONNEL
m 415.347.9536
m 415.686.3398
422
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 17 jurisdictions means he brings not just audit experience but a working understanding of how rates and fees are supposed to be built in the first place, useful context when assessing whether a hauler’s numbers are actually right.

Maryann Hulsman, Sr. Consultant: Customer Service and Reporting Review Specialist Maryann brings a track record of both frontline review work and report authorship to the audit’s customer service and reporting components. She evaluated franchised haulers’ customer service and education/outreach practices as part of performance reviews for the Cities of Los Altos, Piedmont, Vallejo, and West Sacramento and the County of San Benito, and served as primary author or co-editor on each of the resulting audit reports, most recently authoring and editing the full audit report for the City of Glendale’s four franchised haulers. She also reviews rate applications for mathematical accuracy and compliance with franchise agreement terms, work that reduced two consecutive requested rate increases for the City of Milpitas. That combination of customer service assessment and rate-application scrutiny, paired with her experience turning audit findings into clear, client-ready reports, positions Maryann to support both the Customer Service and Complaint Review component of this audit and the development of the City’s Draft and Final Audit Reports.

Rosene Nguyen, Sr. Consultant: Franchise Fee and Financial Review Support Rosene brings a unique perspective – she managed franchise agreements from inside a public agency before joining R3, overseeing the City of San Jose’s commercial solid waste franchise agreement, invoice processing, and annual rate adjustments, and directing the City of Modesto’s Solid Waste Division and compost and landfill operations. Since joining R3, she has applied that background directly to audit-style engagements, currently conducting a tonnage audit review for the City of Rancho Cucamonga’s franchised hauler, a tonnage, fee, and container review for the City of Vallejo, a franchise fee audit for the City of Colfax, and a commercial and multi-family rate and bin study for the City of Santa Monica. That combination of inside-agency financial oversight and hands-on audit work gives her a practical read on where hauler-reported numbers tend to diverge from what’s actually owed, valuable for this audit’s Franchise Fee and Financial Review and Reporting and Data Verification components.

Gauvri Nathwani, Consultant: Billing and Rate Verification Support Gauvri brings hands-on billing audit experience directly relevant to this engagement’s rate and revenue verification work. For the Cities of Albany, Piedmont, and Vallejo, she conducted a billing audit checking the hauler’s rates charged across commercial, residential, multi-family, and roll-off accounts against the approved rate sheet, then verified the hauler’s Refuse Rate Index calculations for compliance with the franchise agreement’s CPI adjustment terms. She is currently conducting similar billing audits of the City of Santa Clara’s non-exclusive franchise haulers, to identify discrepancies and confirm ratepayers are being charged correctly and also previously assisted the City of Elk Grove with a four-year rate comparison analysis that surfaced potential mischarges. That direct experience testing billed rates against approved schedules and franchise terms will support the audit’s Billing, Rates, and Revenue Verification component.

Armanino Key Personnel
Ryan Teed, CPA, Partner: Financial Verification Specialist Ryan is a licensed CPA and audit partner at Armanino, bringing more than 25 years of public and private accounting experience to this engagement’s financial verification work. Based in Armanino’s San Ramon office for the past 22 years, Ryan leads the firm’s dedicated solid waste audit practice, specializing in confidential independent route audits, franchise fee audits, financial statement audits and reviews, rate analysis and projections, and rate application review for waste management companies and municipalities. He also specializes in the manufacturing and distribution, and technology industries. Ryan holds a BS in Business Administration from California Polytechnic State University, San Luis Obispo, and is a member of both the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. His audit expertise and CPA credential support this engagement’s requirement for independent verification of the franchised hauler’s financial records, billing practices, and franchise fee calculations.

Teaming Experience
R3 regularly partners with specialized subconsultants to bring credentialed, industry-specific expertise to our engagements, and Armanino is a familiar partner in that regard. R3 has previously worked with Ryan Teed on rate applications for Atlas Disposal and Turlock Scavenger, and we selected Armanino based on that experience, along with Ryan’s CPA credential and Armanino’s dedicated solid waste audit practice, offering independent route audits, rate analysis, and rate application review services directly relevant to the City’s needs. R3 maintains full oversight of Armanino’s scope of work throughout the engagement, and Ryan will report directly to R3’s project lead to ensure the CPA-level financial review is fully integrated with R3’s audit findings and reporting.

C. COMPANY PERSONNEL
p 415.686.3398
423
R3 Team 2026
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 18 R3 Statement
R3 is properly licensed to practice in California, which covers all assigned key professional consulting staff.

Additionally, our subconsultant for this engagement, Armanino, is a licensed independent CPA firm.

Project Team Organizational Chart
The City’s core project team will be the primary, day-to-day staff responsible for this engagement. Our team is also able to draw upon additional, on-call staff members on an as-needed basis. Additional information on our team’s experience, backgrounds and contact information can be found on the following pages.

C. COMPANY PERSONNEL

KEY PERSONNEL

PROJECT LEAD
Rose Radford
Principal
Claire Wilson
Sr. Managing Consultant
Carrie Baxter
Principal

PROJECT MANAGER
Sarah Koplowicz
Managing Consultant
Jordan Muratsuchi
Managing Consultant
Maryann Hulsman
Sr. Consultant
Rosene Nguyen
Sr. Consultant
Gauvri Nathwani
Consultant
SUBCONSULTANT:

ARMANINO
Ryan Teed
CPA
424
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 19 Relevant Experience
Rose Radford
Principal, Project Lead
About
Rose Radford leads the solid waste management planning, program development, and regulatory reporting practice areas at R3. She provides strategic advisory services to cities, counties, and special districts throughout California, particularly for jurisdictions facing complex and rapidly evolving state regulatory requirements.

As Principal at R3, Rose primarily practices in the greater Bay Area, where she lives, and the greater San Gabriel Valley, where she was raised. With a strong background in research and technical writing, Rose applies her deep knowledge of solid waste, recycling, and organics regulations to help public agencies solve real-world operational and compliance challenges.

Her practice focuses on guiding jurisdictions through the implementation of state law, including developing and administering programs that achieve regulatory compliance while remaining practical and cost-effective. This includes conducting comprehensive audits of hauler operational and financial performance, analyzing franchise agreements, and supporting the negotiation of agreements and amendments. As state law evolves, Rose also assists with the design and implementation of programs extending beyond hauler obligations, regularly supporting more 20+ jurisdictions on an on-call basis.

Education & Certifications
» Master of Public Administration in Environmental Science and Policy, Columbia University » Bachelor of Science in Conservation and Resource Studies, University of California, Berkeley Years with R3:

Years in Industry:
10 Years
10+ Years
» Performance Review | Cities of San Juan Bautista, Citrus Heights, Hollister, Los Altos, San Juan, and West Sacramento; County of San Benito
Recently assisted the Cities in comprehensive performance reviews of their franchised haulers, Republic, Mission Trail Waste Systems, WM, and Recology. These projects all included billing audits and City fee audits, as well as comprehensive reviews of the following: franchise agreement compliance; regulatory compliance; operations; management and administration; vehicle and equipment maintenance, repair and replacement; customer service; and monthly, quarterly and annual reports. » Transition Assistance and Hauler Audits | City of Glendale Led the fee verification, tonnage review, and legislative compliance review for half the permitted haulers active in the City prior to the franchise transition. She assisted the City in its transition to a districted exclusive franchise system by leading weekly/monthly hauler meetings and ensuring haulers are meeting key transition deadlines and their franchise agreements’ requirements. The City underwent a complex transition from over twelve non- exclusive permitted haulers to four exclusive haulers as well as a fully SB 1383-compliant franchise agreement that includes mandatory universal roll-out of recycling and organics service to all customers. Following transition, Rose led the R3 team in conducting financial, tonnage, and customer service audits on the franchised and permitted haulers, generally finding sound accounting controls, accurate tonnage reporting, and substantial compliance among the franchised haulers, but also identified notable fee underpayments in the 2022 review, isolated customer billing errors, low commercial diversion, and recurring opportunities to improve City reporting forms, customer-service tracking, outreach, and waiver records. » Hauler Financial Audit and Assignment Review | City of Carson Led the fee verification and billing audit portions of the audit of Waste Resources Technology (WRT), the hauler serving the City of Carson. Assisted the City in requesting and evaluating additional information related to the requested assignment of the WRT agreement to WM.
» Diversion and Billing Audit and Review of Burrtec’s Rate Increase Request | City of Rancho Cucamonga Validated Burrtec’s tonnage reporting by sector and material type, and recalculated customer billings as well as the franchise fees paid to the City. Rose found that Burrtec was crossing jurisdictional boundaries with some routes, including public self-haul tonnage in tonnage reporting to the City, and charging some customers rates that were not approved by the City.

Rose has been assisting the City in reviewing Burrtec’s rate increase requests and auditing Burrtec’s diversion reporting, billings, and City fee payments since 2018, including most recently in 2026. » Base Year Rate Adjustment | Cities of Concord, Rio Vista, and Milpitas Performed detailed rate reviews for each City. The detailed rate review included assessing the general reasonableness and necessity of the hauler’s individual line item expenses and identifying and removing non-allowable expenses from consideration; identifying any excessive or one-time operating expenses that need to be adjusted as part of rate-setting procedures; reviewing the reasonableness of the hauler’s depreciation schedule and accounting for those items as part of the rate adjustment; and assuring that expenses that are limited per the Franchise Agreement do not exceed those limitations.

Rose provided assistance to the City in framing the Franchise Agreement’s requirements to the haulers.

Contact Number 415.347.9536
C. COMPANY PERSONNEL
425
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 20 Relevant Experience
Sarah Koplowicz
Managing Consultant, Project Manager
About
Sarah Koplowicz has been working in the solid waste management industry for nearly two decades, with a wide range of experience in environmental programs and policies. She spent more than ten years working in event production providing Zero Waste management to millions of people throughout the state of California, performed dozens of waste audits and waste characterization studies, and has provided environmental sustainability training and education to businesses, residents, and municipalities.

Sarah contributes her extensive hands-on experience working in the field with a variety of community members and stakeholders. She excels at assessing systems and providing analyses that lead to widespread improvements in cost and efficiency, while also maximizing resource recovery. Since joining R3, Sarah has worked with 60+ jurisdictions across California on solid waste projects including compliance with and enforcement of state laws such as SB 1383, AB 341, and AB 1826, monitoring hauler compliance with franchise agreements, negotiations and procurement, operational reviews, and outreach and education tailored to individual communities.

Education & Certifications
» Master of Science in Environmental Management, University of San Francisco » Bachelor of Arts, University of California, Davis
» Certified Manager of Zero Waste, Solid Waste Association of North America » TRUE Advisor, U.S. Green Building Council
» SB 1383 Implementation Services and Negotiation Support | City of Albany Sarah currently provides comprehensive services to support the City in achieving compliance with SB 1383 requirements and management of other solid waste programs. This has included updating Municipal Code, compliance reports to CalRecycle, negotiating a new franchise agreement with the hauler to help meet all state laws and ongoing administration of the contract, management of the new franchise agreement with a custom contract management plan and compliance checklist, and other ongoing support as needed. Recently, she assisted the City in conducting a billing audit to ensure the hauler was accurately charging customers in the City per the approved rates and multiple rate adjustments in the first year of the agreement term and further identified that quarterly and annual reports were not compliant with the new agreement. » SB 1383 Compliance and On-Call Assistance | County of San Benito Supported on a wide variety of projects, including compliance with regulatory requirements, updating the purchasing policy, developing a county-wide illegal dumping program and new staff position, and organics capacity planning for the landfill.

Recently assisted in a performance review of the County’s franchised hauler, auditing collection operations and customer service. Identified that the hauler was non-compliant with certain operational requirements, including collections and donations of reusable goods. Recently assisted with presentation materials and staff reports for the Local Task Force and member agencies regarding the upcoming procurement process for the exclusive franchise agreement and other program updates. » Performance Review and Negotiations | City of Citrus Heights Recently assisted with conducting a performance review of the franchised hauler for residential collection services. The review included a billing and city fees audit, to check that customers are being charged correctly for the approved rate schedule, and identified that the hauler was not correctly paying franchise fees to the City and additional payments were owed. Further checked the City’s GIS parcel listings of residential addresses against the hauler’s subscription list and identified addresses that do not currently have service as required, as well as customers that do not have compliant 3-container services. Further reviewed compliance with the agreement such as annual reporting, whether the vehicle inventory was upgraded to CNG fuel vehicles in 2022, and the accuracy of diversion rates reported. Currently supporting the City in negotiations with the existing hauler to restate and amend the exclusive agreement for residential services, based on the results of the performance review. » Performance Review | Napa-Vallejo JPA and City of Vallejo Previously assisted the Napa-Vallejo JPA with a performance and financial review of Napa Recycling Operations and Waste Services (NROWS). This project included reviewing documents and data provided by NROWS and the City such as monthly and quarterly reports, franchise agreement and regulatory compliance review, safety and customer service review, and a review of NROWS’ financial records and request for increase in compensation. Currently supporting the City of Vallejo in conducting a comprehensive performance review of Recology’s compliance with the exclusive Franchise Agreement and general operational performance standards. Specifically assisting with a billing audit to ensure customers are charged accurately based on rate sheets for the period reviewed, as well as a customer service review to ensure adequate responsiveness and turnaround times for specific services and assessing potential operational corrections. Once the performance review is completed, will provide the City with ongoing support for implementing any necessary corrections needed to improve service provision and Franchise Agreement compliance.

Years with R3:

Years in Industry:
4 Years
18+ Years
Contact Number 415.686.3398
C. COMPANY PERSONNEL
426
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 21 Relevant Experience
Carrie Baxter
Principal, Project Support
About
Carrie Baxter has over 15 years of experience in solid waste consulting, leading operational, planning, and financial projects for jurisdictions throughout California. She specializes in providing legislative compliance and assists agencies in implementing state regulatory requirements, negotiating and updating collection agreements, and incorporating best practices and evolving state legislation in their municipal codes and collection agreements. Carrie has significant experience managing competitive procurements for collection and processing services, including development of procurement documents, proposal evaluations, and negotiation support, along with providing financial analyses, diversion incentive development, and community and stakeholder engagement.

She also routinely supports jurisdictions with ongoing program administration and contract performance oversight, including operations and performance reviews, billing and reporting systems evaluation, on-site route audits, benchmarking, and rate surveys. More recently, her work has expanded to include SB 1383 implementation support, edible food recovery coordination, organics procurement compliance grant and reporting oversight, and interim optional management support for local agencies.

Education, Certifications & Professional Affiliations
» Bachelor of Science in Organization, Leadership & Management, University of San Francisco » Secretary, SWANA Gold Rush Chapter – July 2025-June 2026 » Vice President, SWANA Gold Rush Chapter – July 2026-June 2027 » Mandatory Organics Recycling Compliance | Cities of Banning, Beaumont, Citrus Heights, Dixon, Elk Grove, Folsom, Grass Valley, Rancho Cordova, Rocklin, and Westlake Village; Town of Loomis; Nevada County; Yuba Sutter RWMA Led the development of a strategic plan for implementing SB 1383 requirements. She assisted City staff with updating elected officials and the public of current and upcoming state recycling laws, with a large focus on SB 1383, and helped the City to meet and maintain current legislative requirements and achieve compliance with future legislation becomes effective. » Fee Audit | City of Elk Grove
Assisted in conducting a comprehensive audit of Republic Services’ residential solid waste billing and City fee payments for calendar years 2022 through 2024. The review included customer billing accuracy, annual rate adjustments, delinquent account procedures, internal controls, and the calculation and payment of franchise, administrative, household hazardous waste, and storm drain utility fees. The study included independently analyzing billing records, recalculating amounts owed, identifying reporting and payment discrepancies totaling approximately $1.38 million, and developing recommendations to improve billing accuracy, reporting transparency, internal controls, and ongoing contract compliance. » Detailed Review | Cities of Rohnert Park and Petaluma Led the review and assessment of the reasonableness of Recology’s identified non-allowable expenses, revenues, and expense allocations to the City’s franchise. She also reviewed the reasonableness of the forecasted costs for the upcoming year, and the accuracy of the Recology’s calculated rate adjustment, including the proper application of Recology’s operating ratio. The approved rate adjustment included the recommended franchise agreement amendments and was decreased by between 3% - 15% from Recology’s original revised request based on the findings from the detailed rate review. » Various On-Call Consulting Services | City of Westlake Village Led a comprehensive review of the City’s solid waste system to assess compliance with SB 1383 and related state mandates, including AB 341 and 1826. Supported negotiation and amendment of the City’s exclusive solid waste agreement to ensure regulatory compliance, assisted with issuance of the required five-year notice for the exclusive franchise, and led revisions to the Municipal Code. Manages the project team overseeing contractor compliance with franchise requirements and SB 1383 regulations, including site visits, edible food recovery program oversight, procurement of recovered organic products, and capacity planning. Supports grant writing and reporting, EAR preparation, and implementation of outreach and education programs to regulated generators.
» Procurement Assistance | Cities of Eastvale, El Cajon, Half Moon Bay, Norco, Rancho Cordova, Rohnert Park, Rosemead, San Fernando, San Juan Capistrano, and Santa Clarita, West Sacramento; Town of Windsor; Counties of Nevada, and Santa Clara; Zero Waste Sonoma; California State Polytechnic University at Pomona Leads and supports competitive procurements for collection and processing services, including development of RFP packages and draft franchise agreements reflecting current legislation and industry best management practices. Supports proposal evaluations, interview processes, financial and service comparisons, and preparation of unbiased summary with a side-by-side comparison of the proposals to aid the evaluation committee in their review. Preparation of recommendations and staff reports for City Council.

Years with R3:

Years in Industry:
15 Years
15+ Years
Contact Number 916.878.7413
C. COMPANY PERSONNEL
427
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 22 Relevant Experience
Claire Wilson
Sr. Managing Consultant, Project Support
About
Claire Wilson utilizes her background in public policy, experience in research and data analysis, and community outreach and education to apply to the range of R3’s solid waste planning projects. She is experienced in Zero Waste and high diversion planning and implementation, specializes in community and stakeholder engagement strategies, and has worked with jurisdictions to develop innovative methodologies to approach Zero Waste, reuse policy, and comply with State legislation. Claire has also assisted with the revision of municipal ordinances to update and clearly define diversion goals and other high diversion strategies. She has worked with 80+ municipal clients at her time at R3 on a broad range of projects that include program implementation, procurement and negotiations, rate models, to name a few.

She recently completed her Master of Public Policy program at UC Berkeley In May 2024 where she is focused on applied policy analysis and practice, program evaluation, sustainable food systems.

Education & Certifications
» Master of Public Policy, Goldman School of Public Policy, University of California, Berkeley » Bachelor of Science in Environmental Studies, University of California, Santa Barbara » Zero Waste Community Associate Certification, Zero Waste USA » Comprehensive Performance Review | City of Vallejo
Claire is currently leading the Performance Review of the City’s hauler, Recology. This project includes a billing audit and comprehensive reviews of the following: franchise agreement compliance; regulatory compliance; operations; management and administration; vehicle and equipment maintenance, repair and replacement; customer service; and monthly, quarterly and annual reports. She is specifically leading the operations review, analyzing billing trends, and the customer service review. » Performance Review Support | City of West Sacramento and City of Piedmont Claire R3 recently undertook a performance review of the City of West Sacramento’s hauler, WM, on behalf of the City. Claire supported the in-depth customer service review and including interviewing customer service managers and representatives on-site. For the City of Piedmont, she provided support on the on-site operations and safety components. » Solid Waste Billing and Fee Audit | City of Elk Grove Claire is currently leading R3’s project with the City on a residential fee study analyzing the last three years of billings and rates charged by Republic to Elk Grove residents. The audit includes a recalculation of all fees charged by Republic that are remitted to the City. She works closely with staff to provide project updates, led the billing review and fee recalculation process, and communications with the hauler.
» Performance and Billing Review of MTWS | City of Los Altos Previously assisted with an operation and performance review of MTWS, the franchised hauler for the City of Los Altos. This project included a billing audit and comprehensive reviews of the following: franchise agreement compliance; regulatory compliance; operations; management and administration; vehicle and equipment maintenance, repair and replacement; customer service; and monthly, quarterly and annual reports. Claire specifically worked on assessing contractor compliance, supporting analysis with billing and fees, and supporting evaluating the efficiency and safety of the hauler’s collection operations.
» Hauler Fee Audit | City of Carson
Claire co-led the billing audit of the City’s franchised hauler, applying the same data-driven approach she brings to R3’s billing and compliance reviews across the state. Covering an 18-month period, the audit verified franchise fees, COLA-adjusted administrative fees, and tonnage-based processing fees. Claire reconciled audited tonnage allocation methodologies through hauler reporting and random sampling of weight tickets and billing records, drawing on her research and data analysis background to trace discrepancies back to their source. The audit’s draft and final reports detailed any discrepancies identified, along with corrective actions and recommendations for improved financial management practices. » Operational Review and Fee Study | City of Glendale
Recently completed a project that reviewed the City’s residential solid waste operations to identify opportunities for improved efficiency. Claire specifically worked closely on an analysis of the City’s current cost of providing residential collection service through a review of current funds, associated revenues and costs, and identified ongoing costs and revenues regardless of outsourcing. She also led the analysis highlighting the pros and cons of outsourcing with two potential scenarios resulting from outsourcing. She also prepared a comparison of solid waste rates and driver wages among neighboring cities.

Years with R3:

Years in Industry:
8 Years
8+ Years
Contact Number 916.782.7821
C. COMPANY PERSONNEL
428
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 23 Relevant Experience
Jordan Muratsuchi
Managing Consultant, Project Support
About
Jordan Muratsuchi brings deep expertise in fee studies, cost-of-service analyses, and facility-related financial planning, helping municipalities design rate structures to reflect the true cost of delivering solid waste and recycling services. His background in government-community relations and nonprofit leadership gave him an early and distinctive vantage point on the solid waste landscape - one shaped by fiscal accountability, community impact, and the systems that connect the two. Before joining R3, he served as Executive Director of an environmental nonprofit focused on waste management and community engagement, an experience that sharpened both his analytical instincts and his understanding of how policy decisions land at the local level.

As a Managing Consultant at R3, Jordan brings that grounding to a wide range of financial and operational engagements, including rate studies, cost-of-service analyses, collection agreement evaluations, and SB 1383 implementation support. He has a natural ability to absorb complex information, identify what matters, and develop solutions tailored to the specific conditions of each community he serves - and jurisdictions value both his rigor and ability to work constructively across governmental, business, and community stakeholders.

Education & Certifications
» Master of Science, Natural Resources & Environmental Management, University of Hawaiʻi, Mānoa » Bachelor of Science, Civil Engineering (Environmental Concentration), University of Michigan » Certified Manager of Zero Waste, Solid Waste Association of North America » Diversion and Billing Audit | City of Rancho Cucamonga Assisted in conducting an audit of hauler’s solid waste collection, diversion, and billing records to verify the accuracy of reported revenues and compliance with approved rates. The review included cross-checking subscription data, billings, payments, and reported gross revenues against rate schedules and source documentation. Jordan also analyzed Waste Generation and Diversion Reports and performed detailed sampling of weight tickets, confirming no significant discrepancies between the reported and actual tonnage data.
» Performance Review | City of West Sacramento
Conducted an in-depth operational performance review of the City’s franchised hauler, including onsite evaluation of yard operations, morning launch and pre-trip inspections, and in-field collection activities. Assessed management practices, safety protocols, and overall operational effectiveness. Verified compliance with franchise agreement requirements and identified specific areas for improvement to enhance service quality and efficiency. » Disposal Fee Review and Other Solid Waste Services | Butte County Created a rate model to estimate expenses and recommend revenue requirements that will provide the County with the financial resources to fund landfill operations and build out reserves to industry standard levels. Additionally, rate reviews (both base year and intermittent year) were conducted for the County’s three haulers, as well as other solid waste consulting services in the fields of edible food recovery, capacity planning, and agreements. » Rate Review | City of San Bernardino
Reviewed the City’s franchised waste hauler’s annual rate application. This review included verifying the rate adjustment application for mathematical accuracy and conformance with the franchise agreement. Additionally, this review investigated the costs required to comply with SB 1383 and the alignment with City needs. This review took into account the possibility of an agreement extension and the corresponding impact on solid waste rates.. » Solid Waste Disposal Fee and Collection Rate Study | Sacramento County Managing a comprehensive cost-of-service study, rate and fee study, and 10-year financial plan for Sacramento County’s municipally operated Solid Waste Enterprise Fund. The engagement includes evaluating residential collection rates, landfill tipping fees, transfer station fees, and other enterprise services through detailed cost-of-service analyses, long-term financial forecasting, and development of an Excel-based financial model. Responsibilities include analyzing operating and capital costs, revenue requirements, reserve funding, equipment replacement, and regulatory obligations, evaluating alternative rate scenarios, benchmarking regional rates, and developing recommended multi-year rate and fee adjustments to support the County’s long-term financial sustainability.
» Solid Waste Rate Study | City of San Luis Obispo
Conducted a full solid waste rate study for the City, including a detailed (base year) rate review, cost-of-service analysis, and analysis of legal liability. Additionally, he redeveloped the City’s Solid Waste Rate Setting Manual, originally created in 1994, to modernize and streamline it with the anticipated product ensuring a straight-forward rate setting process.

Years with R3:

Years in Industry:
6 Years
11+ Years
Contact Number 916.782.7821
C. COMPANY PERSONNEL
429
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 24 Relevant Experience
Maryann Hulsman
Sr. Consultant, Project Support
About
Maryann Hulsman brings two decades of project management experience in a wide range of mission-driven projects, including environmental planning, non-profit fundraising, and event production, and she has worked in the solid waste industry for three years. She provides effective, thoughtful communication, and is able to solve problems and lead teams through complex situations. She has a long-held and ardent relationship with waste diversion and environmental consulting. Maryann first began engaging with California waste management policy and operations while in college, then worked for eight years compiling CEQA, NEPA, and water permitting documentation for a broad assortment of clients in the Central Valley and Bay Area.

As a Sr. Consultant for R3, Maryann provides important support on a variety of solid waste management projects, including negotiations/procurements of new collection agreements, hauler performance reviews and audits, SB 1383 implementation/compliance, and solid waste cost studies.

Education & Certifications
» Master of City Planning, Emphasis in Community Development, Massachusetts Institute of Technology » Bachelor of Science, Environmental Policy Analysis and Planning, University of California Davis » Consulting Services to Audit Performance | City of Glendale Conducted audits of the four franchised haulers’ customer service, education/outreach, and waiver programs, then acted as primary author and editor of the entire franchised haulers’ audit report, reviewing and editing each component section and preparing a cohesive, clear document for City staff. She also prepared financial and tonnage analysis for R3’s audit of the City’s permitted haulers.
» On-Call Consulting Services and Performance Review | City of Los Altos Currently providing ongoing assistance and advice to the City as City staff strive to meet and exceed their goals related to implementation of SB 1383, particularly including guidance regarding outreach materials and the City’s year-round cycle of solid waste-related deadlines and responsibilities. She prepares the City’s Electronic Annual Reports (EARs) for submittal to CalRecycle. Additionally, R3 undertook a performance review of the City’s hauler, Mission Trail Waste Systems, on behalf of the City. Maryann reviewed the City’s franchised hauler’s customer service and education/outreach practices, and then acted as co-editor of the performance review report.
» On-Call Consulting Services and Performance Review | County of San Benito R3 recently undertook a performance review of the County’s hauler, Recology, on behalf of the County. Maryann led County staff through a minute review of the franchise agreement’s special programs. She also reviewed Recology’s customer service and education/outreach practices. Beyond the performance review, she provides assistance to the County on SB 1383 matters as well as research and writing on other solid waste topics. » Performance Reviews | Cities of Piedmont, Vallejo, and West Sacramento R3 undertook performance reviews of each of these jurisdictions’ haulers, which include Mission Trail Waste Systems, WM, Republic, and Recology, on behalf of the jurisdictions. Maryann authored review and compliance frameworks, reviewed the franchised haulers’ customer service and education/outreach practices, provided support for operational reviews, and acted as co-editor of performance review reports.
» Hauler Assignment Review | City of Carson
Assisted and advised the City in requesting and evaluating additional information related to the requested assignment of the City’s current agreement with Waste Resources Technology (WRT) to WM. » SB 1383 Compliance Gap Analysis | City of Redlands
Performed an SB 1383 compliance gap analysis, then drafted a detailed SB 1383 compliance roadmap for the City to follow. In the process, she advised the City on a number of tailored policy changes and procedures to pursue and implement. » On-Call Consulting Services | City of Duarte
Provided assistance and advice to City staff. In particular, she helped the City manage their relationship with their hauler, Burrtec, she helped with the City’s 2024 Capacity Planning for both Organic Waste Recycling and Edible Food Recovery, and she prepared the City’s 2023 and 2022 EARs for submittal to CalRecycle.

Years with R3:

Years in Industry:
3 Years
5+ Years
Contact Number 916.782.7821
C. COMPANY PERSONNEL
430
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 25 Relevant Experience
Rosene Nguyen
Sr. Consultant, Project Support
About
Rosene Nguyen brings over a decade of experience managing solid waste programs from inside public agencies, giving her a firsthand understanding of the pressures jurisdictions navigate every day. She has directed solid waste divisions, overseen compost facility and landfill operations and permitting, managed enforcement operations, developed recycling and diversion programs, and administered franchise agreements from negotiation through ongoing compliance monitoring. Her background in budget development, grant administration, and reporting to elected officials means she understands not just the technical side of waste management, but the institutional context that shapes decisions. A degree in Chemistry further supports her work, as modern waste systems rely heavily on material science, emissions control, and environmental compliance.

As a Sr. Consultant at R3, Rosene is a careful, analytical thinker who takes the time to understand a problem fully before recommending a path forward. Her instinct for spotting patterns and anticipating risks means clients get solutions that are sound on paper and defensible in practice. She builds relationships grounded in trust and genuine investment in client success — and as someone who has sat where her clients sit, she brings a perspective that is rare and immediately useful.

Education & Certifications
» Bachelor of Arts in Chemistry, Minor is Arabic and Islamic Studies, Purdue University of Indianapolis » Master of Science in Chemistry, Environmental-Analytical Track, San Francisco State University » Geographic Information System for Environmental Analysis Certificate, San Francisco State University » Diversion and Billing Audit | City of Rancho Cucamonga R3 has been frequently engaged by the City to review the diversion reporting and billing accuracy of its franchised hauler, Burrtec Waste Industries, to confirm compliance with the terms of its Franchise Agreement. Rosene led the tonnage audit review portion of this engagement, cross-checking monthly waste generation and diversion reports against on-site weight ticket sampling to verify reported tonnage.
» Tonnage, Fee, and Container Review | City of Vallejo
R3 has supported the City since 2015 with contract negotiations, rate setting, and compliance with state laws including AB 1826 and SB 1383. As part of this ongoing on-call work, Rosene conducted a review of the franchised hauler’s tonnage reporting, franchise fee payments, and container inventory to confirm the hauler’s figures matched its contractual obligations. » Commercial and Multi-Family Rate and Bin Study | City of Santa Monica R3 is supporting the City’s update to its Zero Waste Plan, evaluating the City’s progress toward a 95% diversion goal by 2030 through an assessment of diversion rates, disposal trends, and per capita generation. Rosene conducted the commercial and multi-family dwelling rate and bin study component, examining current bin sizing and rate structures to inform the plan’s recommendations.
» Franchise Fees Audit | City of Colfax
As part of R3’s on-call consulting services to the City, Rosene is conducting a review of the hauler’s Electronic Annual Report and Implementation Record submittals alongside a franchise fees audit, verifying that fee payments align with the terms of the franchise agreement.
» Commercial Hauler Report and Waiver Review | City of Rancho Cordova R3 has provided on-call solid waste consulting services to the City since 2004, including oversight of the contractual requirements, diversion reports, and fee payments of the City’s residential franchised hauler and ten non-exclusive franchised haulers. Rosene developed a solid waste guideline for developers and reviewing the City’s commercial hauler reports and waiver requests.
» Interim Executive Director Staff Augmentation and Rate Review | Yuba Sutter RWMA R3 has served as the Interim Executive Director for RWMA, administering its exclusive franchise agreement with Recology through monthly compliance monitoring and providing turnkey management for the regional agency and its six member agencies. Rosene conducted the Authority’s annual rate review as part of this engagement.

Years with R3:

Years in Industry:
<1 Years
11+ Years
Contact Number 916.782.7821
C. COMPANY PERSONNEL
431
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 26 Relevant Experience
Gauvri Nathwani
Consultant, Project Support
About
Gauvri Nathwani is an experienced sustainability professional with a strong background in environmental education, policy compliance, and community outreach. With a degree in Environmental Studies from UC Santa Barbara and a focus on sustainability and renewable energy, she has worked across local government, nonprofit, and private sectors to support zero-waste initiatives and promote environmentally responsible practices. At Alameda County Industries, she played a key role in helping the City of Alameda meet California’s waste diversion and climate goals by leading outreach programs, conducting waste audits, and developing tailored plans for businesses, multi-family properties, and public agencies.

Gauvri’s work is grounded in a strong understanding of state legislation and driven by a passion for making sustainability practical and impactful at the community level. Whether presenting to stakeholders, writing grants, or managing on-the-ground education campaigns, she brings a thoughtful, solutions-oriented approach to every project.

Education & Certifications
» Bachelor of Arts in Environmental Studies, University of California, Santa Barbara » LEED Green Associate, U.S. Green Building Council
» SB 1383 Implementation Services | City of Albany
Assisting the City with a billing audit for WM, which involved looking at the rates that WM are charging customers for commercial, residential, multi family, and roll off services against the approved rate sheet. Based on the findings, Gauvri drafted a memo for the client to describe the scope of work, the total accounts that were audited, gross billings, and next steps for WM. Additionally, she reviewed WM’s RRI to ensure that the data was calculated correctly per the franchise agreement, making sure that rates aligned with relevant CPI to ensure that the annual rate adjustment is within the frame of the agreement and fair to rate payers.
» On-Call Consulting Services | City of Anderson
R3 is providing comprehensive legislative compliance and program implementation support for the City’s January 2026 organics collection launch, including outreach, procurement, recordkeeping, reporting, and enforcement under AB 341, AB 1826, and SB 1383. Most recently, Gauvri visited 100+ businesses to speak with and educate owners and/or managers about the City’s organics program and state legislation.
» On-Call Consulting Services | County of San Benito
R3 is providing comprehensive support to the County, including legislative compliance, hazardous waste management, report analysis, franchise agreement oversight, and other various solid waste planning. Gauvri is currently assisting with edible food recovery verification for tier 1 and tier 2 generators. Recently, she assisted in conducting site visits for 15 generators, confirming their status with the San Benito Food Bank and ensuring necessary documentation was complete to rescue as much edible food as possible. Gauvri also worked with the hauler to shadow and provide recommendations on current outreach practices and identify areas of challenge for the City. » RFPs for Solid Waste Collection Agreement | City of Santa Clara R3 is assisting the City with two RFPs for Disposal and Yard Waste processing services, developing the solicitations in coordination with City staff and drafting agreements for dedicated disposal and yard trimmings processing services. Gauvri is currently conducting audits for the City’s NEF Haulers. She is identifying discrepancies in billing, ensuring ratepayers are being charged correctly, and conducting audits to learn more about the Haulers’ methods in order to facilitate a transparent process. » On-Call Consulting Services | City of Elk Grove
Assisted with billing analysis for Republic and the City. Worked on comparing rates across a 4 year span to identify potential mischarges and differences in rates. She also performed a storm drain analysis where she identified customers that may have been charged differently than the understood methodology. Gauvri assisted the City to complete their implementation record, and reviewed documents including but not limited to: program descriptions, paper procurement, ROWP, route reviews and other SB 1383 compliance areas for the City’s JACE review. » On-Call Consulting Services | Town of Loomis
R3 provides on call consulting services to manage the City’s C&D program for residents looking to modify their homes and businesses. Gauvri assists in the approval of pre- and post-construction permits, ensuring the applicant is complying with CalGreen diversion requirements and identifying non-compliant sites to the Town. She works in partnership with the Town to ensure that all permits are tracked, approved or corrected, and that each applicant meets diversion requirements.

Years with R3:

Years in Industry:
<1 Years
4+ Years
Contact Number 916.782.7821
C. COMPANY PERSONNEL
432
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 27 D. DISCLOSURE
R3 & City of Banning Business Relationship
R3 has worked with the City of Banning since 2019, and below is a list of services R3 has provided. › June 2019 - April 2021: Contract and Negotiations
› September 2020 - October 2021: Ordinance Revisions
› June 2021 - December 2021: Environmentally Preferable Purchasing Policy › November 2021 - June 2022: SB 1383 Compliance Support (RFP Assistance) R3’s City Employee Contact
Ms. Holly Stuart, Program Manager
99 E. Ramsey Street, Banning, CA 92220
951.922.3130, Direct 951.922.3138 | [email protected] D. DISCLOSURE
433
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 28 E. EXPERIENCE AND REFERENCES
Prime Services
Operations and Performance Reviews
Over the past 23 years, our team has extensive experience operating and evaluating solid waste management systems, having assisted 50+ clients with the review and analysis of both municipally operated and franchised solid waste operations, including collection, transfer, and landfill operations. Our vast understanding of the challenges associated with operating municipal systems and administering franchised solid waste services enables us to generate meaningful data-based recommendations that focus on opportunities to improve safety and customer service, increase productivity, and reduce costs.

Our operations and performance review services include the following:
› Review of billing functions and City fees.
› Review and analysis of management and administrative functions. › Review of collection-system productivity and the development of target-productivity standards and performance-enhancement strategies.
› Review of contract compliance by private operators.
› Time-and-motion analysis of collection and transfer operations. › Analysis of vehicle-routing systems.
› Review of customer service functions.
› Development of benchmarking metrics to measure system performance and improvements.

One of our distinguishing qualifications is our hands-on operational experience. Key R3 team members have both public and private sector solid waste collection system operational experience, which informs all of the contract compliance and operational reviews that we perform. R3 has completed operational performance reviews for several southern California cities including Pomona, Eastvale, Barstow, Irwindale, Rolling Hills Estates, San Juan Capistrano, Santa Monica, Burbank, Temple City, and Wildomar; and northern California cities such as Cotati, Fairfield, Los Altos, Petaluma, Piedmont, Rancho Cordova, Salinas, Santa Rosa, Stockton, and West Sacramento, Woodland, as well as the Counties of San Benito and Santa Clara.

Financial, Rate, and Fee Services
R3 staff have broad experience conducting solid waste fee studies, rate reviews and performing financial and rate structure analyses for municipalities, and regional authorities. R3’s understanding of the perennial challenge of City’s governments to balance complex services and programs with the realities of budget constraints allows us to provide effective and meaningful financial consulting services. Our financial review projects provide comprehensive analysis of fee methodologies and related budgets, resulting in documented adjustments to projected revenues and expenses plus specific recommended fee adjustments. Our financial and fee analysis projects furnish the financial information and comparative analysis our clients require to make sound, informed decisions.

Our solid waste financial and rate analysis services include the following:
› Financial and operational strategic planning, including budgeting and long-term financial planning. › Cost of service and revenue requirement studies, rate reviews, and indexed rate adjustments. › Rate model development and multi-year rate financial projections, including rate setting and adjusting. › Evaluation of alternative funding mechanisms, including Nexus Studies, refuse vehicle impact fees, and solid waste development fees.
› Rate structure design to support solid waste management objectives and comply with Proposition 218. › Rate and service surveys, and audits of solid waste billing systems and franchise fee payments.

E. EXPERIENCE
& REFERENCES
434
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 29 R3 Bankruptcy Statement
R3 has not have filed for bankruptcy under the R3 Consulting Group, Inc., business name or any other business name over the past five (5) years, nor during our entire 23-year history.

Project Experience

1. City of West Sacramento
Mr. Ryan Burnett, Sustainability Manager
1110 West Capitol Ave, 1st floor, West Sacramento, CA 95691 916.617.5025 | [email protected]
Project Dates: February 2025 – August 2025
Comprehensive Performance Review
R3 has been engaged with the City on various engagements beginning with evaluating the pros and cons of the City negotiating with Waste Management versus issuing a competitive RFP document back in 2015. Based on an assessment of the pros and cons of negotiation, R3 was directed to negotiate a new franchise agreement with WM. Our work efforts included leading the sole-source negotiations with WM, tracking the offer and counter-offer positions of both the City and WM, conducting the negotiations sessions with WM, meeting with the City’s finance manager to analysis the fiscal impact on the City, working with the City Attorney and WM’s attorney, and preparing the new franchise agreement. The City reengaged R3 to provide comprehensive SB 1383 implementation planning for all aspects of the law, culminating in an implementation plan and municipal code update. This plan included outreach and education, route audits for contamination, enforcement schedules and activities, edible food recovery planning in coordination with the County, assistance in adjusting the Cities’ purchasing policy, and assistance in negotiations with the City’s hauler.

Most recently, R3 conducted a review of WM’s performance primarily focusing on the period of 2023-2024, with some portions including a review of records as far back as 2020. Our review found WM in partial compliance with the Agreement. Collections are generally safe, courteous, and clean, but overweight vehicles are a major concern. While WM has an effective internal work order system, it often fails to meet performance standards for customer service and work order turnaround due to inaccurate records, a manual communication process with the City’s Utility Billing department, and high employee turnover. These issues hinder customer service but do not pose major safety or operational risks, except for overweight vehicles. Customer service and outreach have improved since the 2024 Agreement amendment and recycling coordinator hire. WM has accepted the findings and is implementing corrective measures.

2. City of Carson
Mr. Thomas Toman, Deputy City Manager
701 E. Carson Street, Carson, CA 90745
310.830.7600 | [email protected]
Project Dates: December 2025 – May 2026
Hauler Fee Audit
R3 recently completed audits of the City of Glendale’s franchised and permitted solid waste haulers. The franchised-hauler audits covered calendar years 2022 and 2024 for the City’s four exclusive commercial and multifamily haulers and reviewed franchise and AB 939 fee payments, customer billing, internal accounting controls, tonnage and diversion reporting, customer service, outreach, waiver administration, and compliance with franchise and State requirements. Separately, R3 has conducted the City’s permitted-hauler audits annually since 2020, focusing on municipal code compliance, permit and AB 939 fees, revenue and tonnage reporting, and the use of qualifying facilities for construction and demolition debris.

R3 generally found sound accounting controls, accurate tonnage reporting, and substantial compliance among the franchised haulers, but also identified notable fee underpayments in the 2022 review, isolated customer billing errors, low commercial diversion, and recurring opportunities to improve City reporting forms, customerservice tracking, outreach, and waiver records. For permitted haulers, most responsive companies reported and paid fees accurately, and most C&D material was delivered to City of Los Angeles-certified or other appropriate E. EXPERIENCE
& REFERENCES
435
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 30 high-diversion facilities; however, the audits identified several underpayments or late payments, reporting and recordkeeping errors, possible overpayments requiring City confirmation, and haulers that did not respond or provide complete records. The findings support continued auditing and targeted follow-up to recover amounts owed, resolve discrepancies, and strengthen compliance oversight.

3. County of San Benito, Integrated Waste Management
Ms. Celina Stotler, IWM Manager
2301 Technology Parkway, Hollister, CA 95023
831.801.0718 | [email protected]
Project Dates: September 2021 – Current, Ongoing Project Performance Review
Since 2021, R3 has served as San Benito County Integrated Waste Management and the San Benito County Integrated Waste Management Regional Agency’s on-call solid waste consultant, supporting the County and the cities of Hollister and San Juan Bautista across franchise administration, rate-setting, SB 1383 implementation, and long-term solid waste planning. That sustained relationship has given R3 deep familiarity with the Regional Agency’s franchise structure and hauler operations, positioning the team to take on a comprehensive performance review of Recology’s exclusive franchise in 2025.

The review evaluated Recology’s collection operations, customer service, outreach and education, management and administration, vehicle and equipment maintenance, tonnage reporting, billing, and fees, along with additional programs and services provided under the franchise agreement. R3 found Recology substantially compliant overall while identifying corrective actions tied to overweight vehicles, tonnage reporting errors, customer service and work order response times, emergency contact posting, outreach coordination, reuse and textile services, public container services, and free compost and event services, along with the associated rate impacts. The review was paired with an ongoing billing and city fees audit, giving the County and cities a clear, defensible basis for holding their franchised hauler accountable.

4. City of Elk Grove
Ms. Kara Taylor-Seeman, Finance Division Manager
8401 Laguna Palms Way, Elk Grove, CA 95758
916.627.3410 | [email protected]
Project Dates: February 2025 – July 2026
Fee Audit
R3 recently conducted a Solid Waste Fee Audit for the City, reviewing franchise fee and other fee payments from the City’s residential hauler Republic Services (Republic). The engagement included an extensive audit of fiscal years 2022-2024 across all billing cycles, followed by a higher-level audit of fiscal years 2017-2021 using sampled billing cycles, to independently verify fees owed against amounts remitted.

R3’s audit found the City was underpaid by roughly $1.38 million in fees from Republic between 2022 and 2024, an amount large enough to require Republic to reimburse the City for both the lost fees and the cost of the audit itself. Looking back further, to when Republic took over billing in mid-2018, R3 calculated high level estimates of the amounts that could be owed to the City, which are in the range of approximately $1.102 million to $2.758 million. This emphasizes the need for more extensive auditing for the 2018-2021 period as well as regular auditing for more recent billing periods (2025-current). The audit also found many residential customers missing required storm drain fees, late fee payments in every billing period reviewed, miscalculations of franchise fees and administrative fees, and issues with providing the City with backup documentation for fee calculations.

E. EXPERIENCE
& REFERENCES
436
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 31

5. City of Citrus Heights
Ms. Mary Poole, Operations Manager
6360 Fountain Square Drive, Citrus Heights, CA 95621
916.727.4730 | [email protected]
Project Dates: July 2025 – February 2026
Performance Review
R3 recently supported the City with conducting a performance review of the current residential contract held by Republic Services (Republic), which includes a detailed billing and City fees audit. Our review found that Republic is in compliance with the majority of their requirements as reviewed. However, there were several areas where Republic was not meeting the terms of the Agreement and/or Agreement Amendment. The most significant area for improvement relative to the Agreement’s terms and conditions is in the Billings and City Fees review, which are not being performed according to the Agreement’s requirements. Other noncompliant areas included proof of purchase of all-new CNG fueled collection vehicles starting in 2022 for the new organics collection routes, annual reporting maps of service areas and number of collection notification tags and tours/other activities, billing customers for incorrect container sizes, franchise fees and late fees owed to the City, ensuring accuracy and completeness of residential subscription data to include all residents located in the City, ensuring all customers have three container service, and payment for levies overpayments.

6. City of Glendale
Mr. Etienne Ozorak, Integrated Waste Superintendent
548 W. Chevy Chase Drive, Glendale, CA 91204
818.550.3468 | [email protected]
Project Dates: August 2024 – Current, Ongoing Project
Operational Review and Fee Study
R3 recently completed audits of the City of Glendale’s franchised and permitted solid waste haulers. The franchised-hauler audits covered calendar years 2022 and 2024 for the City’s four exclusive commercial and multifamily haulers and reviewed franchise and AB 939 fee payments, customer billing, internal accounting controls, tonnage and diversion reporting, customer service, outreach, waiver administration, and compliance with franchise and State requirements. Separately, R3 has conducted the City’s permitted-hauler audits annually since 2020, focusing on municipal code compliance, permit and AB 939 fees, revenue and tonnage reporting, and the use of qualifying facilities for construction and demolition debris.

R3 generally found sound accounting controls, accurate tonnage reporting, and substantial compliance among the franchised haulers, but also identified notable fee underpayments in the 2022 review, isolated customer billing errors, low commercial diversion, and recurring opportunities to improve City reporting forms, customerservice tracking, outreach, and waiver records. For permitted haulers, most responsive companies reported and paid fees accurately, and most C&D material was delivered to City of Los Angeles-certified or other appropriate high-diversion facilities; however, the audits identified several underpayments or late payments, reporting and recordkeeping errors, possible overpayments requiring City confirmation, and haulers that did not respond or provide complete records. The findings support continued auditing and targeted follow-up to recover amounts owed, resolve discrepancies, and strengthen compliance oversight.

7. City of Los Altos
Mr. Harun Musaefendic, Assistant Civil Engineer
1 N. San Antonio Road, Los Altos, CA, 94022
650.947.2650| [email protected]
Project Dates: May 2024 – March 2025
Performance Review
R3 conducted a comprehensive performance review of the City’s exclusive solid waste collection franchise agreement, covering collection operations and franchise performance for the 2021 through 2023 review period.

The review evaluated the contractor’s compliance with the City’s Franchise Agreement and assessed operational E. EXPERIENCE
& REFERENCES
437
Performance
Review
Financial
Study
Legislative
Compliance
Procurement /
Negotiations
Solid Waste
Planning
City of Banning • • • •
City of Burbank • • • •
City of Carlsbad • • • •
City of Carson • • •
City of Chula Vista • • • •
City of Downey • • • •
City of Duarte • • •
City of Glendale • • • •
City of Pomona • • • •
City of Redlands • • • •
City of Riverside • • • •
City of Rolling Hills Estates • • • • •
City of Rosemead • • •
City of San Bernardino • • • • •
City of San Juan Capistrano • • • •
City of San Luis Obispo • • • •
City of Santa Barbara • • • • •
City of Santa Monica • • • •
City of Temple City • • • • •
County of Ventura • • • •
CLIENT

CONSULTING SERVICES PROVIDED
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 32 performance, customer service, billing practices, outreach and education programs, fleet maintenance practices, and overall management systems, including a franchise agreement compliance review and broader regulatory compliance assessment.

Our team performed an in-depth operational and administrative assessment that included field observations of residential, commercial, organics, bulky item, and roll-off collection operations, along with route audits, facility inspections, and evaluation of driver safety practices, route supervision, vehicle conditions, and operational efficiency. R3 reviewed customer service functions, including call center performance metrics, complaint resolution procedures, and missed pickup tracking, and conducted a billing audit to verify service levels, billing accuracy, and consistency with approved rates, alongside an assessment of vehicle maintenance operations, diversion performance, and management structure. The project also included a detailed review of 200+ separate contractual requirements, to determine compliance with the franchise agreement and applicable regulatory obligations. R3’s findings and recommendations gave the City actionable guidance to strengthen contract oversight, improve transparency, and support continued high-quality solid waste services for the community.

R3 Additional Relevant Experience
The matrix below highlights a representative sampling of public agency clients and their scope of services.

E. EXPERIENCE
& REFERENCES
438
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 33

PRICE PROPOSAL
1 R3 proposes to complete the project for a total maximum cost of $75,000 for Tasks 1-9, or $100,000 to include optional Task 10. Table 1, below, shows the total cost breakdown by task. Additional consulting services beyond those proposed will be charged at the standard rates shown in Table 2, on the following page. Fees for work completed will be billed monthly at the first of each month, for the preceding month, and are due within 30 days of the invoice date. In regards to travel cost reimbursement(s), R3 will not exceed the current IRS rates.

Table 1: Cost Breakdown by Task

TASK COST

1. Data Collection and Kick-off Meeting $ 5,030

2. Franchise Agreement Compliance Review $ 8,545

3. Billing, Rates, and Revenue Verifications $ 11,510

4. Franchise Fees and Financial Review $ 7,240

5. Reporting and Data Verification $ 4,010

6. Diversion and Program Performance Review $ 4,680

7. Operational and Service Performance Review $ 13,670

8. Customer Service and Complaints Review $ 5,150

9. Draft and Final Report and Presentation(s) $ 15,165
SUBTOTAL, TASKS 1-9 $ 75,000

10. On-Call Support (Optional) $ 25,000
TOTAL, TASKS 1-10 $ 100,000

PRICE PROPOSAL
separate PDF
439
City of Banning | Audit & Performance Review of Solid Waste, Recycling, and Organics Services 342 R3 CLASSIFICATION FY 2026-27 RATES
Principal / Sr. Director $ 355 per hour
Director $ 320 per hour
Sr. Managing Consultant $ 275 per hour
Managing Consultant $ 245 per hour
Sr. Consultant $ 230 per hour
Consultant $ 210 per hour
Associate Consultant $ 195 per hour
Expert Witness 2.5x Rates Listed Above

ARMANINO CLASSIFICATION RATES
Partner $ 355 per hour

REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and Meals Direct cost
Travel — Private or company car At Current Federal Rate Travel — Other Direct cost
Delivery and other expenses Direct cost
Table 2: Standard Rates for FY 2026-27
Standard Rates

PRICE PROPOSAL
separate PDF
440
PS Version 1 Last Reviewed: 3/4/2026
1 AGREEMENT FOR PROFESSIONAL SERVICES (C01294)

BY INDEPENDENT CONTRACTOR

THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR (“Agreement”) is made and effective as of the ____________ by and between the CITY OF BANNING, a California municipal corporation (“City”) whose address is 99 East Ramsey Street, Banning, California 92220, and R3 Consulting Group, Inc., a California Corporation whose address is 1504 Eureka Road, Suite 220, Roseville, CA 95661 (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “party” and hereinafter collectively referred to as the “parties.”

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

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

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

1. Term of Agreement. This Agreement becomes effective on the date first written above and will remain in effect until terminated as provided herein. Notwithstanding any provision to the contrary, this Agreement shall automatically terminate one (1) year from the date of execution unless extended by the parties. The parties may renew the Agreement for up to four (4) additional one-year terms, not to exceed a total duration of five (5) years, subject to approval by the City Council of the City.
441
PS Version 1 Last Reviewed: 3/4/2026
2 2. Services to be Performed. Contractor agrees to provide the services (“Services”) as follows: Audit and Performance Review of Solid Waste, Recycling, and Organics Services in accordance with Exhibit “A”. All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. Contractor designates Sarah Koplowicz as Contractor’s Representative responsible for overseeing the Services provided by Contractor (“Contractor’s Representative”). City designates the City Manager, or his or her designee, to act as the Project Manager (“Project Manager”) in connection with the delivery of Services under this Agreement.

Contractor shall supply, at its sole expense, all equipment, tools, materials, and supplies necessary to perform Services. In the event that the Proposal contains terms that are in addition to or in conflict with this Agreement, other than the price for Services, such terms shall not be valid and shall be of no force or effect.

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

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

4. Compensation.

4.01 Contractor shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the City. Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by City to Contractor under this Agreement shall not exceed the amount of Seventy-Five Thousand Dollars and Zero Cents ($75,000.00).

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

4.03 Contractor shall submit to City, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The City shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. City shall have the right to review and audit all invoices prior to or after payment to Contractor. This review and audit may include, but not be limited to City’s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Verification that the hours billed, when multiplied by the approved hourly rates, result in the correct total;
442
PS Version 1 Last Reviewed: 3/4/2026
3 c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If City determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, City shall either return the bill to Contractor with a request for explanation or adjust the payment accordingly and give notice to Contractor of the adjustment.

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

5. Obligations of Contractor.

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

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

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

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

5.05 In the event Contractor is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.
443
PS Version 1 Last Reviewed: 3/4/2026
4 5.06 Contractor represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein.

In the event City is required to obtain an approval or permit from another governmental entity, Contractor shall provide all necessary supporting documents to be filed with such entity.

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

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

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

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

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

5.12 By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of Services to be performed, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the conditions, circumstances, difficulties and restrictions attending performance of the Services under this Agreement. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of Services hereunder. Should the Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor 444
PS Version 1 Last Reviewed: 3/4/2026
5 shall immediately inform the City of such facts and shall not proceed except at Contractor’s sole risk until written instructions are received from the Project Manager.

Contractor warrants all Services under the Agreement to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Services, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the Services (or work of other contractors) damaged by Contractor’s defective Services or which become damaged in the course of repairing or replacing defective Services. For any Services so corrected, Contractor’s obligation hereunder to correct defective Services shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected Services. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor.

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

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

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

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

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

If existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement, or endorse the existing coverage to do so. Contractor shall provide the following types and amounts of insurance:
445
PS Version 1 Last Reviewed: 3/4/2026
6 6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; Contractor agrees to have its insurer endorse the general liability coverage required herein to include as additional insured’s City, its officials, employees and agents. Contractor also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.

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

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

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

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

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

6.05 Cyber Liability Insurance REQUIRED IF CHECKED HERE ONLY [___] (Technology Professional Liability – Errors and Omissions), with limits not less than $2,000,000 per occurrence or claim, and $2,000,000 aggregate or the full per occurrence limits of the policies available, whichever is greater. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Contractor in this Agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations. Contractor will file with City, before beginning professional services, certificates of insurance (Acord Form 25 or equivalent) satisfactory to City evidencing.
446
PS Version 1 Last Reviewed: 3/4/2026
7 6.06 If Claims Made Policies (applies only to professional liability and cyber liability policies):
i. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
ii. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. iii. If coverage is canceled or non-renewed and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the contract work.

7. General Conditions pertaining to Insurance Coverage.

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

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

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

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

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

7.05 All coverage types and limits required are subject to approval, modification and additional requirements by City, as the need arises. Contractor shall not make any reductions 447
PS Version 1 Last Reviewed: 3/4/2026
8 in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent.

7.06 Contractor agrees to provide immediate notice to City of any claim or loss against Contractor or arising out of the Services performed under this Agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

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

8. Indemnification.

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

Contractor’s obligation to defend, indemnify, and hold harmless shall include any and all claims, suits, and proceedings in which Contractor (and/or Contractor’s agents and/or employees) is alleged to be an employee of City. All obligations under this provision are to be paid by Contractor as they are incurred by City.
448
PS Version 1 Last Reviewed: 3/4/2026
9 b. Without affecting the rights of City under any provision of this Agreement or this Section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable solely to the fault of City, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. 8A Indemnification Design Professionals. In the event that Contractor is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, Contractor shall defend, indemnify, and hold harmless the City, its officers, employees, trustees and members (“Indemnified Parties”) from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney’s and consultants’ fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death (“Claim(s)”), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Contractor, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties. The cost to indemnify, hold harmless, and defend charged to Contractor shall not exceed Contractor’s proportionate percentage of fault.

9. Additional Services, Changes and Deletions.

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

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

10. Termination of Agreement.

10.01. Notwithstanding any other provision of this Agreement, City, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days’ written notice to Contractor.
449
PS Version 1 Last Reviewed: 3/4/2026
10 10.02 In the event of termination, the payment of monies due Contractor for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement. Immediately upon termination, Contractor agrees to promptly provide and deliver to City all original documents, reports, studies, plans, specifications and the like which are in the possession or control of Contractor and pertain to City.

11. Status of Contractor.

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

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

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

12. Ownership of Documents; Audit.

12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties, and all other documents of any kind or nature prepared, developed, or obtained by Contractor in connection with the performance of Services performed for the City shall become the sole property of City, and Contractor shall promptly deliver all such materials to City upon request. At the City’s sole discretion, Contractor may be permitted to retain original documents, and furnish reproductions to City upon request, at no cost to City.
450
PS Version 1 Last Reviewed: 3/4/2026
11 12.02 Subject to applicable federal and state laws, rules and regulations, City shall hold all intellectual property rights to any materials developed pursuant to this Agreement.

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

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

12.04 Contractor acknowledges that the City is a California municipal corporation and is subject to the California Public Records Act, Government Code § 7920.000 et seq. (“CPRA”), and other applicable laws requiring public access to records. Contractor further acknowledges and agrees that any and all documents, records, data, writings, communications, materials, and other information of any kind, in any format (including electronic format), that Contractor (or any associate, subcontractor, consultant, or agent of Contractor) prepares, develops, obtains, provides, transmits, or submits to the City, or that are otherwise received or maintained by the City, in connection with this Agreement or the Services may constitute public records and may be subject to disclosure to third parties in response to a CPRA request, unless the City determines that all or a portion of the Submitted Materials are exempt from disclosure under the CPRA or other applicable law.

13. Miscellaneous Provisions.

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

13.02 Contractor shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of City. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.
451
PS Version 1 Last Reviewed: 3/4/2026
12 13.03 Contractor shall timely file FPPC Form 700 Conflict of Interest Statements with City if required by California law and/or the City’s conflict of interest policy.

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

13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.

13.06 Contractor covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder. Contractor further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.

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

13.08 Improper Consideration. Contractor shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the City in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by the City. The City, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the City with respect to the proposal and award process of this Agreement or any City contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any City contract has been awarded. Contractor shall immediately report any attempt by any City officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor. 452
PS Version 1 Last Reviewed: 3/4/2026
13 13.09 Severability. If any portion, section, sentence, provision or paragraph of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.

13.10 Prevailing Wages. Contractor shall be responsible to comply with applicable prevailing wages laws. As a condition of payment, if applicable Contractor shall show proof of payment of wages under applicable state and federal laws and regulations relating to prevailing wages in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773, 1773.1, 1773.5, and 1773.9”, for Riverside County and/or 40 U.S.C. Section 276a, et. seq.

Such wage rates shall conform with those posted at City offices and the project site. In the event that the Contractor fails to pay the prevailing wages, the Contractor shall be solely liable for penalties and for the shortfall in wages and shall indemnify, defend and hold harmless City under Section 8.01 against any of the same. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1771 - Requirement to Pay Prevailing Wages

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

3. Section 1774 – Payment of Prevailing Wage Rates.

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

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

6. Section 1777.5 - Apprenticeship Requirements.

7. Sections 1810 and 1811 - Working Hour Restrictions.

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

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

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

Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or Services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or 453
PS Version 1 Last Reviewed: 3/4/2026
14 remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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

13.14 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purpose of this Agreement.

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

13.16 Force Majeure. Neither party shall be deemed in default of this Agreement to the extent that performance of its obligations is delayed or prevented by causes beyond its reasonable control, including but not limited to acts of God, war, terrorism, riots, fires, floods, epidemics, pandemics, earthquakes, strikes, labor disputes, governmental orders, or failure of utilities. The affected party shall promptly notify the other party in writing of the occurrence of such event and shall use reasonable efforts to resume performance as soon as practicable. Force majeure shall not excuse the obligation to make payments when due. In no event shall force majeure entitle Contractor to additional compensation, but only to a reasonable extension of time.

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

13.18 The parties acknowledge and agree that this Agreement may be executed by electronic signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. The parties expressly adopt and confirm each electronic signature made by a party to this Agreement, regardless of whether delivered in person, by mail, courier, facsimile, email, or in portable document format (PDF), as if the same 454
PS Version 1 Last Reviewed: 3/4/2026
15 were manually signed and delivered in person. Each party agrees not to assert that any electronic signature is inadequate to bind such party to the same extent as if signed manually and delivered in person.

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

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

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

To City:

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

R3 Consulting Group, Inc.

Attn: Rose Radford
1504 Eureka Road, Suite 220
Roseville, CA 95661
Email: [email protected]
Notices shall be deemed received as follows: (i) on the date of delivery if delivered personally; (ii) one (1) business day after deposit with a nationally recognized overnight courier; (iii) three (3) business days after deposit in the United States mail, postage prepaid; or (iv) on the date transmitted if sent by electronic mail during normal business hours of the receiving party, or on the next business day if sent after normal business hours. Either party may change its address for Notice by providing written Notice of such change to the other party in accordance with this Section.
455
PS Version 1 Last Reviewed: 3/4/2026
16 13.21 This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which counterparts taken together shall constitute one and the same instrument for all purposes of this Agreement.

13.22 The recitals set forth in the preamble of this Agreement are hereby incorporated into and made a substantive part of this Agreement as if fully set forth herein. [SIGNATURES ON FOLLOWING PAGE]
456
PS Version 1 Last Reviewed: 3/4/2026
17 IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.

CITY: CONTRACTOR:

CITY OF BANNING R3 CONSULTING GROUP INC.

By:_______________________ By:_______________________
Elizabeth Gibbs, City Manager Print
Name: ____________________
Date: ______________________
Date: _____________________
City Council Approval: RESO
ATTEST:

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

By: ______________________
Phaedra Norton, City Attorney
Date: __________________
457
PS Version 1 Last Reviewed: 3/4/2026
18 EXHIBIT “A”

PROPOSAL
458
PS Version 1 Last Reviewed: 3/4/2026
19 459
PS Version 1 Last Reviewed: 3/4/2026
20 460
PS Version 1 Last Reviewed: 3/4/2026
21 461
PS Version 1 Last Reviewed: 3/4/2026
22 462
PS Version 1 Last Reviewed: 3/4/2026
23 463
PS Version 1 Last Reviewed: 3/4/2026
24 464
PS Version 1 Last Reviewed: 3/4/2026
25 465
PS Version 1 Last Reviewed: 3/4/2026
26 466
PS Version 1 Last Reviewed: 3/4/2026
27 467
PS Version 1 Last Reviewed: 3/4/2026
28 468
PS Version 1 Last Reviewed: 3/4/2026
29 469
PS Version 1 Last Reviewed: 3/4/2026
30 470
PS Version 1 Last Reviewed: 3/4/2026
31 471
PS Version 1 Last Reviewed: 3/4/2026
32 472
PS Version 1 Last Reviewed: 3/4/2026
33 473
PS Version 1 Last Reviewed: 3/4/2026
34 474
PS Version 1 Last Reviewed: 3/4/2026
35 EXHIBIT “B”

CERTIFICATES OF INSURANCE
475

CITY OF BANNING

STAFF REPORT
TO: CITY COUNCIL
FROM: Elizabeth Gibbs, City Manager
PREPARED BY: Ellen Clifford, Purchasing Manger
Jennifer Terry, Finance Director
MEETING DATE: September 22, 2026
SUBJECT: Consideration of Resolution 2026-126 Consolidated Approval of Citywide Software-as-a-Service (SaaS) and Software Maintenance Agreements STAFF RECOMMENDATION:

Adopt Resolution 2026-126
BACKGROUND:

The City of Banning uses software to conduct operations, maintain records, support reporting, ensure compliance, promote transparency, and implement Federal, State, and Local requirements and regulations. The software programs support many facets of the City, from Utility billing and financial reporting to project management and Parks & Recreation events. These software programs streamline productivity, improve communication, and increase transparency, among other benefits.

Government Accounting Standards Board (GASB) requires reporting on software agreements in our annual financial reporting that include Subscription-Based Information Technology Arrangements (SBITAs). This standard, GASB 96, establishes uniform accounting and financial reporting requirements for SBITAs to improve the comparability of governments' financial statements and enhance the understandability, reliability, relevance, and consistency of information.

The attached list of Citywide Software-as-a-Service (SaaS) and Software Maintenance Agreements is not a requirement of GASB 96; but rather a monitoring tool so the City Council is made aware of all SaaS and Software Maintenance Agreements.

Citywide Department Liaisons met on April 30, 2026, to conduct a comprehensive review of all software currently utilized throughout the City. The meeting aimed to evaluate whether existing platforms are used effectively and whether certain systems could be consolidated, replaced, or terminated. After the meeting, each department submitted its software list to the Information Technology Department, which compiled the information into a Citywide Software Catalog.

As a result of the comprehensive review, thirty (30) systems were identified for cancelation. Two (2) are 476
on this year's list but are at the end of their final term and will not be renewed. One (1) software being used is a free version for cost saving measures and the remaining twenty-seven (27) systems have been cancelled, discontinued, deemed no longer necessary, or removed from the updated software resolution.

Collectively, these cancellations reflect an annual savings of $438,136.17. These actions support the City's continued efforts to streamline technology resources, eliminate unnecessary costs, and maintain alignment with current operational needs and approved resolutions.

The software catalog serves as the basis for the software listing presented to the City Council as Exhibit “A.” Approval of the catalog will streamline the administration and renewal of the City’s SaaS subscriptions and software maintenance agreements.

The total cost of the software listed in Exhibit “A” is $1,867,037.34. This amount includes $1,183,752.41 in multi-year SaaS subscriptions and software maintenance agreements previously approved by the City Council.

JUSTIFICATION:

Staff use various software applications and platforms as essential tools for ongoing operations across all departments. The software provides informational data and reporting, enabling Staff to manage operations throughout the City of Banning. Submitting the annual software list will streamline timely presentation for City Council approval in one cohesive effort.

FISCAL IMPACT:

Staff included software budgets for their prospective departments in the Fiscal Year 2026/27 Proposed Operating Budget. Any software purchases not within budget would require separate City Council approval and budget appropriation.

There is no fiscal impact associated with approving Resolution 2026-126. The budgets for these agreements were included in the Proposed Fiscal Year 2026/27 Operating Budget.

ATTACHMENTS:

1. Resolution_2026-126_SaaS_edited_JT.docx

2. Software List for City Council Exhibit A.pdf
477
Resolution 2026-126

RESOLUTION 2026-126

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

APPROVING CITYWIDE SOFTWARE-AS-A-SERVICE (SAAS) AND SOFTWARE

MAINTENANCE AGREEMENTS
WHEREAS, the City of Banning uses multiple Software-as-a-Service (SaaS) and software maintenance agreements in departments throughout the City; and WHEREAS, the SaaS and software maintenance agreements are necessary to the continued operations of the City; and
WHEREAS, the City Council has approved the use of SaaS and software maintenance agreements throughout the past year(s), and Staff would like to present an annual comprehensive list of SaaS and software maintenance agreements for City Council approval and greater transparency.

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

SECTION 1. The City Council approves the use of City-Wide SaaS and software maintenance agreements listed in Exhibit “A” for a total annual cost of $1,867,037.34. This amount includes the prior year amount of $1,183,752.41, which was previously approved by the City Council.

SECTION 2. The City Council authorizes the City Manager to make necessary non-substantive changes and to execute said agreement(s).

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

SECTION 4. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions PASSED, APPROVED AND ADOPTED this 22nd day of September 2026 Richard Royce, Mayor
City of Banning
ATTEST:

Sandra Calderon, Deputy City Clerk
City of Banning
478
Resolution 2026-126

APPROVED AS TO FORM:

Lena Wade, City Attorney
Slovak, Baron, Empey, Murphy & Pinkney, LLP
479
Resolution 2026-126

CERTIFICATION:

I, Sandra Calderon, Deputy City Clerk of the City of Banning, California, do hereby certify that the foregoing Resolution 2026-126, was duly adopted by the City Council 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, Deputy City Clerk
City of Banning
480
Resolution 2026-126

Exhibit “A”
481
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Acom Solutions,
Inc.

Acom Transfer Data Between Naviline AP/PR. Maintenance Finance $ 7,476.43 9/1/2026 8/31/2027 CDW-G Adobe Acrobat Pro Portable Document Format software used for office productivity and
integration.

SAAS Citywide $ 15,582.00 1/4/2026 1/3/2027
CDW-G Adobe Creative Suite Video and photo editing software. SAAS Media $ 779.88 11/30/2026 11/29/2027 CDW-G Adobe Illustrator Software to create flyers, social media information, registration packets etc.

SAAS Recreation $ 263.88 4/10/2026 4/9/2027
Aspen, Inc Advanced Systems One-liner 100 and Power Flow 100 (1 seat) - For transmission system
modeling.

Maintenance Electric $ 5,942.00 6/15/2026 6/14/2027
AllData.com All Data Diagnostic software and access to
latest OEM repair manuals for vehicle
repair.

SAAS Fleet $ 1,500.00 7/20/2026 7/19/2027
AnyDesk AnyDesk Remote Access Software, Used for
Third party consultants to access City
Network application.

SAAS Information Technology $ 430.80 6/26/2026 6/25/2027 ESRI ArcGIS GIS mapping and spatial analysis
software used by Community Dev. for
zoning review, General Plan land use
review, parcel research, addressing
and also helps display a map for
SmartGov.

SAAS Building Safety;Planning;Fire $ 1,400.00 2/26/2026 2/25/2027 DLT Solutions TD
Synnex
AutoCAD LT 2024 Computer Aided Drafting to assist in
the engineering design of public works
facilities for streets, drainage, sewer,
water, and electric. Is also used to
coordinate engineering plans prepared
by others.

SAAS Electric;Engineering;Water $ 7,750.33 5/23/2026 5/22/2027 SoftwareOne Backup Simple Is a fully managed, cloud-native backup and recovery service.

SAAS Citywide $ 60,000.00 7/1/2026 6/30/2027
1 482
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
CDW-G Barracuda Essentials A comprehensive cloud-based email security and data protection solution,
ideal for Microsoft 365, Office 365, &
Exchange. It consolidates multiple
layers of protection, email filtering,
advanced threat defense, continuity,
backup, archiving, encryption, and
compliance.

SAAS Citywide $ 23,208.00 9/16/2026 9/15/2027
GovOptics LLC Beacon Bid Scope Searches for Bid research SAAS Citywide $ 6,375.00 4/4/2026 4/3/2027 Bluebeam Bluebeam This software supports the review,
analysis, commenting, and limited
design of engineering plans submitted
to the Engineering Department. It is
used for Capital Improvement
Projects, internal engineering work,
planning efforts, and
land
‑
development reviews. The
Planning and Community
Development teams use it to mark up
PDFs, evaluate site plans, elevations,
floor plans, landscape plans, and
other development-related
documents. It enables staff to
measure distances and areas,
compare plan sheets, provide
coordinated comments, and
communicate required corrections
with applicants and other
departments. Overall, the software is
essential for performing accurate and
efficient plan checks.

SAAS Building
Safety;Electric;Engineering;Fire;
Planning;Refuse;Streets;Transit
;Water
$ 5,943.24 1/6/2026 1/5/2027
Canva Canva Software for Senior Center - create
posters, newsletter, flyers, social
media content etc.

SAAS Senior Center; Utility Billing $ 450.00 11/2/2026 11/1/2027 2 483
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
LeadsOnline, LLC Cell Hawk Cellphone Data Mapping SAAS Police $ 5,650.00 5/15/2026 5/14/2027 CI Solutions CI Solutions Department ID/Access cards Maintenance Police $ 1,040.00 7/1/2026 6/30/2027 Civic Plus Civic Engage Municipal website platform SAAS Citywide $ 26,476.68 7/1/2026 6/30/2027 Civic Plus Civic Plus Archiving
Service
Automated capture of posts,
comments, edits, deletions, and
hidden content across government
social channels in real time stores
metadata and context maintains
digital signatures and timestamps.

Compliance-focused: Designed to
support FOIA and state public records
laws by preserving complete social
media activity.

SAAS Information Technology; Media $ 6,287.40 7/1/2026 6/30/2027 Civic Plus Civic Rec Parks and Recreation Department
Registration Software
SAAS Aquatics;Parks;Recreation;Seni
or Center; Transit
$ 4,961.25 9/29/2026 9/28/2027
Comcate Comcate Code Enforcement case management
software.

SAAS Code Enforcement; Animal
Control
$ 11,827.17 7/1/2026 6/30/2027
Motorola
Solutions, Inc
Command Central
Aware
Command Central Aware Software for
Motorola APX Next Mapping Location
Service
SAAS Police $ 31,350.80 7/1/2026 6/30/2027
Lexipol LLC Cordico Wellness App Employee physical, mental, emotional wellness & career growth
SAAS Police $ 7,999.20 5/1/2026 4/30/2027
Cummins Inc Cummins Insite Diagnostic Software for Cummins Engines and associated products.

SAAS Fleet $ 860.00 3/1/2026 2/28/2027
Cybertime Cybertime Internet Service Service Agreement Information Technology $ 10,388.00 7/1/2026 6/30/2027 Cybertime Cybertime Looped Microwave Backbone Service Agreement Information Technology $ 22,800.00 7/1/2026 6/30/2027 Docusign Docusign Document Signing Software for
external candidates
SAAS Citywide $ 23,411.70 4/1/2026 3/31/2027
Haaker Envirosight (Wincan) Video Software for sewer line inspections
Maintenance Water; Engineering Using Free Version 7/1/2026 6/30/2027 Satec ExpertPower Meter Data Management SAAS Electric $ 87,225.00 2/1/2026 1/31/2027 3 484
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
First Two, Inc First Two, Inc Police Intelligence Software SAAS Police $ 5,400.00 4/1/2026 3/31/2027 HDL - Hinderliter
de Llamas &
Associates
HDL - Hinderliter de
Llamas & Associates
Sales Tax Services SAAS Finance $ 18,000.00 12/20/2026 12/19/2027 HDL Companies HDL Business License Business License Tax Administration and Transient Occupancy Tax (TOT)
Administration
SAAS Finance $ 3,331.80 1/1/2026 12/31/2027
HDL Coren & Cone HDL Property Tax
Software
Property Tax Management Software
and Audit Services
SAAS Finance $ 16,800.00 1/1/2026 12/31/2027
Cybertek
Computers and
Networking
Services
HP Nimble Annual Renewal - Maintenance for City
and Police department SAN Storage (
location that houses all internal City
Server DATA)
Maintenance Information Technology $ 12,000.00 7/1/2026 6/30/2027 Infosend, Inc Infosend, Inc Service Agreement To Provide DataProcessing, Printing, and Mailing Services For Utility Billing
SAAS Utility Billing $ 151,554.90 7/1/2026 6/30/2027
Innovyze Innovyze Used for water system modeling. SAAS Engineering; Water $ 5,158.65 10/14/2026 10/13/2027 Invoice Cloud Invoice Cloud Customer online bill pay portal for Utilities
SAAS Utility Billing $ 76,960.59 3/16/2026 3/16/2027
Itron Itron Open Way Collection Engine (OWCE)
and Itron Security Manager Services
(ISM)
SAAS Electric; Utility Billing $ 72,982.28 6/18/2026 6/18/2027 Cybertek
Computers and
Networking
Services
Juniper SRX SRX Firewall Annual Renewal, for City
Enterprise Firewall
Maintenance Information Technology $ 7,700.00 7/1/2026 6/30/2027 CDW-G KNOWBE4 Phishing Campaigns and
Cybersecurity Training
SAAS Information Technology $ 18,650.70 11/1/2025 10/31/2028 Cleverbridge Konnekt SharePoint Integration software for desktop
SAAS Citywide $ 2,913.76 11/1/2026 10/31/2027
4 485
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
ECS Imaging name
change to MCCI
Laserfiche (MCCI) Citywide records management and
document management system used
to store, organize, retrieve, and
manage City records. Planning uses
Laserfiche to research project files,
permits, resolutions, ordinances, staff
reports, agreements, conditions of
approval, and historical property
records. Although Planning uses it
regularly, it is a citywide system and
not Planning-specific.

SAAS Citywide $ 28,958.00 9/30/2026 9/29/2027
LeadsOnline, LLC Leads Online Power
Plus Investigation
System Software
Investigative Software SAAS Police $ 4,003.00 9/15/2026 9/14/2027 Leightronix Leightronix Live Streaming and Video on Demand for City Council Meetings
SAAS Media; City Manager $ 6,576.00 10/9/2026 10/8/2027 MAGUS
Maintenance
Journal
Level II Conduct State inquiries. Used by
dispatch & officers. Desktop & police
unit accessible
SAAS Police $ 30,047.00 7/1/2026 6/30/2027
LexisNexis
Coplogic Solutions
LexisNexis Desk reporting officer and investigative
software
SAAS Police $ 9,449.61 7/1/2026 6/30/2027
MegaTronics
International Corp
MegaTrak Fuel Management software for the
diesel and gasoline pumps at the
corporate yard.

SAAS Fleet $ 2,995.00 12/31/2026 12/30/2027
Cybertek
Computers and
Networking
Services
Meraki Subscription Merkai license and Support  (CISCO) Annual Maintenance Renewal for one
of the Cities Firewall
Maintenance Information Technology $ 1,964.92 7/1/2026 6/30/2027 5 486
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
SoftwareOne Microsoft enterprise
software (Microsoft
Server licensing, 0365
licensing,
Conferencing license)
Microsoft 365 is a cloud-based
subscription service that provides
productivity apps like Outlook, Word,
Excel, PowerPoint, Teams, OneDrive,
and SharePoint. It enables secure
email, file storage, real
‑
time
collaboration, and access to apps
from any device, with automatic
updates and built
‑
in security features.

SAAS Citywide $ 90,518.81 8/1/2026 7/31/2027
MY COI MY COI Insurance Compliance and Certificate
Management
SAAS Purchasing $ 15,264.00 11/30/2026 11/29/2027
Sungard Public
Sector
Inc/SuperionCentral Services
NaviLine /
CentralSquare
Technologies
Citywide Software Program Maintenance Citywide $ 148,170.60 7/1/2026 6/30/2027 Nearmap Nearmap High resolution, georeferenced, and
frequent aerial imagery covering the
City of Banning and surrounding areas.

High resolution images can be
downloaded and integrated into GIS
platforms and into AutoCAD
engineering drawings to assist with
preparation of engineering plans. The
software is also utilized by the
Community Development Department
in planning application reviews and
presentation to Planning Commission
and City Council. Imagery can be used
by PD/Code Enforcement and Fire
departments for research purposes, or
to track compliance issues. Imagery is
updated at least 3 times annually.

SAAS Building Safety; Code
Enforcement;Police;Economic
Development;Electric;Engineeri
ng;Fire;Parks;Planning;Refuse;T
ransit;Streets;Water
$ 14,257.20 8/20/2026 8/19/2027
Civic Plus Next Request Public Records and FOIA (Freedom of Information Act) request management
platform
SAAS Citywide $ 7,370.53 7/1/2026 6/30/2027
6 487
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Nobel Nobel Water/Wastewater Department asset
GIS, workorder tracking, water loss
tracking, Well Level Tracking (Monthly,
Annually), Well and Booster
Production Reports (Monthly,
Annually), Hydrant Maintenance,
Backflow maintenance and records,
Lead and Copper Rule tracking (LCRR),
Water and Sewer As-builts (Unlimited),
Sewer Cleaning Maintenance, Sewer
Video Maintenance, Unlimited Custom
Reports, Layers and Video and picture
Uploads, Dig Alert Tickets and
tracking, Inspections for Manholes,
Insect spraying, System Valves,
Hydrants, Fats, Oils and Grease (FOG),
Automotive, AMI, System Valves for
recycled water. Inventory, Valve
isolation, sewer tracing. Property
details with Corelogic data and
Landbase.

SAAS Water; Building Maintenance;
Meter Services;Streets;Utility
Billing; Electric
$ 100,800.00 7/1/2026 6/30/2027
Nobel/ArcGIS Online Information
Services Inc
Portal for Utility Billing to determine
customer credit worthiness
SAAS Utility Billing $ 7,500.00 6/6/2026 6/5/2027
Systems Integrated onSITE Used for the water and wastewater SCADA systems
Maintenance Water Maintenance as
needed
7/1/2026 6/30/2027
7 488
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
OpenGov OpenGov Budget, Planning, Procurement,
Cartegraph. Mostly use it for Bid
Platform. Asset management and work
order system utilized for the
Airport/Building Maintenance/Streets
Maintenance department. Tracks
labor, materials, resources, requests,
and work orders for Building, Streets,
and Storm water assets. Software will
assist in capital planning for future
street paving projects, storm drain
maintenance projects, establishing
preventative maintenance plans, and
mandatory reporting. Services can be
expanded in the future to cover fleet,
parks, water, and wastewater.

SAAS Finance;Purchasing;Planning;
Airport; Building
Maintenance;Engineering;Stree
ts;Water
$ 103,240.02 12/15/2026 12/14/2027
PDQ PDQ Deploy &
Inventory
Software deployment and Windows
endpoint discovery tool used by IT to
quickly Inventory install, update, or
uninstall software across many
Windows computers at once without
needing to touch each machine.

SAAS Information Technology $ 3,300.00 6/13/2026 6/13/2027 PMAM Corporation PMAM False Alarm
Management System
False alarm management system SAAS Police 70/30 Revenue Split 4/1/2026 3/31/2029 Power Monitors,
Inc
Power Monitors Canvas devices - Field Power Quality
Analyzers
SAAS Electric $ 995.00 5/10/2026 5/9/2027
QT Petroleum on
Demand DBA QT
Pod
QT Pod Self service fueling terminal at Banning
Municipal Airport
SAAS Airport $ 1,195.00 9/1/2026 8/31/2027
Reavis Code Reavis Code Subscription for RC Ops., Tickets CoreCore system for RC Ticket - Work Order
SAAS Electric $ 51,300.00 7/1/2026 6/30/2027
8 489
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Sun Ridge Systems RIMS Police Department Computer Aided Dispatch & Records Management
Maintenance Police $ 27,515.00 9/24/2026 9/23/2027
Routeware
(formerly Recyclist)
Routeware (formerly
Recyclist)
The Recyclist software program is
utilized for Solid Waste Compliance
Reporting. This standalone program
provides significant benefits to the
Refuse Division by centralizing
compliance data, improving
recordkeeping, and streamlining
reporting processes. The program
allows staff to efficiently track program
activities and maintain compliance
with regulatory requirements
established under SB 1383.

SAAS Refuse $ 28,828.80 5/1/2026 4/30/2027
Ron Turley &
Associates
RTA Asset Management and Fleet Work
Order maintenance software
SAAS Fleet $ 9,357.12 8/1/2026 7/31/2027
Iridium SAT Phones Satellite Phone Store Service for Satellite Phones Service Agreement Information Technology $ 3,695.40 7/1/2026 6/30/2027 Scalefusion Inc Scalefusion Software used to turn PC into Kiosk SAAS Kiosk in Lobby to provide access to Online permitting,
City website, business license
& Invoice cloud
$ 288.00 12/19/2026 12/18/2027
Time Clock Plus Schedule Anywhere Department scheduling SAAS Police $ 1,917.04 12/1/2026 11/30/2027 ScreenApp Pty Ltd ScreenApp AI powered recording, transcription, and content
‑
analysis platform. Its core
purpose is to record meetings or
videos, transcribe them, summarize
them, and turn them into searchable,
structured knowledge.

SAAS City Clerk $ 408.00 10/21/2026 10/20/2027
Provision SecureMax - Provision City Bus Cameras SAAS Transit $ 5,748.00 3/15/2026 3/15/2027 Granicus LLC SmartGov Permitting Software SAAS Fire $ 28,851.86 6/1/2026 5/31/2027 Granicus LLC SmartGov, Bluebeam,
Adobe,
Plan check and permitting services SAAS Building Safety $ 50,390.95 8/1/2026 7/31/2027 9 490
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Cybertek
Computers and
Networking
Services
Smartnet- CISCO Annual Renewal - Maintenance for City
and Police deparment Servers
Maintenance Information Technology $ 7,746.86 7/1/2026 6/30/2027 Bentley SpidaCalc Prod Sub, SPIDA calcFull HWL (2
seats) - for utility pole wind loading
SAAS Electric $ 5,254.00 9/27/2026 9/26/2027
Survalent
Technology, Inc
Survalent Technology SCADA Servers, monitoring and data analysis
SAAS Electric $ 14,319.00 5/9/2026 5/8/2027
Swiftly Swiftly GPS Tracking software for the transit
vehicles
SAAS Transit $ 16,859.04 8/4/2026 8/4/2027
Integrity
Surveillance
Tactitrack GPS
Tracker
Portable GPS tracker SAAS Police $ 998.00 12/15/2026 12/14/2027 Token Transit Token Transit Token Transit allows bus riders to purchase a bus pass using their
phone.

SAAS Transit 10% of gross
proceeds
7/1/2026 6/30/2027
Trullion, Inc Trullion, Inc GASB 87/96 Reporting SAAS Finance $ 8,125.00 7/1/2026 6/30/2027 Turbo Data
Systems
Turbo Data Citation processing system for Police
Department parking citations.

SAAS Police $ 3,000.00 10/1/2026 9/30/2027
TriGlobalTechnologie
s, LLC
UtiliPad Tri-Global Data Orbit transfer service for GPS Centering rod for mapping.

SAAS Electric $ 3,285.00 11/28/2026 11/28/2027
Vector USA Verkada Camera
License - (5yr) 36
Cameras
Police Department Cameras. SAAS Police $ 28,802.88 7/1/2026 6/30/2031 Pixabytes
Solutions, Inc
Verkada Camera
License - (5yr) 8
Cameras
Community Services Camera. SAAS Parks;Recreation;Senior Center $ 7,143.52 7/1/2026 6/30/2031 Vigilant Vigilant - CrowdStrike Endpoint Security Software plus 24 Hour threat response
SAAS Citywide $ 103,302.60 9/29/2026 9/28/2027
10 491
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Virtual Project
Manager
Virtual Project
Manager
A comprehensive capital project
management system designed to
coordinate seamlessly between City
staff, inspectors, contractors, and
subcontractors. It supports all aspects
of capital construction projects,
including plan management, plan
change management, requests for
information, material submittal review
and approval, inspection
documentation, labor compliance,
and financial tracking.

SAAS Engineering $ 12,000.00 7/1/2026 6/30/2027
Eagle Aerial Waterview Water View is to track and verify the amount of water used indoors,
outdoors per State regulations.

SAAS Water $ 26,936.00 10/10/2026 10/10/2027
When I Work When I Work Staff shift scheduling and time-clock software.

SAAS Aquatics;Recreation;Senior
Center
$ 1,800.00 7/1/2026 6/30/2027
Milsoft WindMil Enterprise
Site License
Milsoft Engineering Analysis Essentials
- distribution system engineering
analysis
SAAS Electric $ 8,180.96 1/1/2027 12/31/2027
Automated
Merchant Systems,
LLC
Wonderware Inc. DBA
CORE Business
Technologies
Credit Card Payment Readers Maintenance Utility Billing $ 3,233.58 4/11/2026 4/11/2027 Zencity
Technologies US
Inc
Zencity Community Engagement Software SAAS City Manager $ 37,800.00 12/6/2025 12/6/2026 Zenner USA, Zenner Stealth Software is used for the water meter (Automatic Meter Infrastructure (AMI))
delivering the meter reads to billing,
water staff and tracking of customer
leaks within a 24 hour period.

SAAS Finance; Meter Services; Utility
Billing; Water
$ 22,175.20 3/4/2026 3/3/2027
11 492
Vendor Product Purpose Type Department/Division Using
Software
FY27 Annual Cost Annual Start Date Annual End Date
Zoom Zoom Meeting Cloud based communication
application that provides video
conferencing, voice calls, chat,
webinars, and collaboration tools.

SAAS City Manager;Media;City
Council
$ 2,339.40 5/15/2026 5/14/2027
FY 25/26 RESO 2025-66 FY 26/27 RESO 2026-126
Total Cost of SAAS and Maintenance $ 2,007,903.58 $ 1,867,037.34 Previously Approved by City Council
Action
$ 880,520.33 $ 1,183,752.41
Fiscal Year Annual Amount $ 1,127,383.25 $ 683,284.93
Estimated 5% Escalator $ 56,369.16 $ 34,164.25
Total Approved by City Council $ 1,183,752.41 $ 717,449.17 12 493
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