CITY OF CALIFORNIA CITY
DECEMBER 9,2025
Marquette Hawkins
MAYOR
Jim Creighton
MAYOR PRO TEM
Della Clark
Ronald Smith
COUNCIL MEMBERS
Christopher Lopez
CITY MANAGER
AGENDA
CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
REGULAR MEETING TUESDAY DECEMBER 9, 2025 @ 5:00 PM
COUNCIL CHAMBERS & VIA ZOOM
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505
If you need special assistance to participate in this meeting, contact the City Clerk at (760) 373-7140 or via email at [email protected]. We request a 24-hour notification prior to the meeting in order for the City to make reasonable arrangements to ensure accessibility. (28 CFR 35.102-35.104 American Disabilities Act Title II) Zoom instructions and notes:
Web Link: https://us06web.zoom.us/j/82006683246
Meeting ID: 820 0668 3246
1. Public can dial into the Zoom line:
a. One tap mobile: +16694449171,87254527178# US
b. Dial the following number: +1 564 217 2000 US
2. Comments
a. Public must join Zoom meeting to comment
b. Keep your mic on Mute until you are requested to speak c. Use the “Raise your Hand” button to request to speak or, d. Send a chat request to City Clerk for request to speak e. When requested to speak state your name for the record f. Re-mute when your time to speak has ended
CITY OF CALIFORNIA CITY
DECEMBER 9,2025
Public is urged to listen to the meeting in a quiet place, to avoid background noise. We also request public to MUTE your audio device when not commenting to avoid disruption during meeting.
**Please take this time to turn off your cell phones ** CLOSED SESSION 2:00PM
CALL TO ORDER
ROLL CALL
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins
ADOPT THE AGENDA
PUBLIC COMMENT
Members of the public are welcome to address the City Council ONLY on those items listed on the Closed Session agenda. Each member of the public will be given (3) three minutes to speak
CLOSED SESSION
CS 1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) two cases: Lamberth v. California City (Case no. 25CUB00029) Vincent v. California City (Case No. BCV-25-102867)
CS 2. Conference with Labor Negotiators (Government Code Section 54957.6):
Employee Organization: Fire Unions
CS 3. PUBLIC EMPLOYMENT- (Government Code Section 54957) Title: City Manager
CS 4. PUBLIC EMPLOYMENT- (Government Code Section 54957) Title: City Clerk
CS 5. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Section 54956.9(d)(2): five cases.
REPORT OUT OF CLOSED SESSION
CITY COUNCIL CONVENES TO REGULAR MEETING
REGULAR MEETING 5:00PM
CALL TO ORDER
PLEDGE OF ALLEGIANCE / INVOCATION
CITY OF CALIFORNIA CITY
DECEMBER 9,2025
ROLL CALL –
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins
DEPARTMENT REPORTS
PD / AC Park
Treasurer OHV
Housing
CITY CLERK REPORTS/RECEIVED COMMUNICATIONS
JM POWERS:
- NOVEMBER 28, 2025- The City’s 10-Year Street O&M and Capital Improvement Project Funding - NOVEMBER 29, 2025- 10-Year Weakness in Street Operations & Maintenance Despite Substantial Funding - NOVEMBER 30, 2025- City’s 10-Year Anemic Funding of Street Capital Improvement Projects 94
CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS
PRESENTATIONS
- City Cash and Fund Analysis as of 6/30/2025 Provided by: Josh Giosa, Price Paige and Associates - Mayor Saul Ayon McFarland CA
PUBLIC BUSINESS FROM THE FLOOR / PUBLIC COMMENT
This portion of the meeting is reserved for the public to address the City Council on any matter NOT on this agenda and over which the City Council has jurisdiction. Please state your name for the record and limit your comments to (3) three minutes. The City Council will receive the comments but cannot engage in back-and- forth discussion with the public or make any decision. The City Council can direct staff to bring the item back to a future agenda for discussion.
CONSENT CALENDAR
WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES
Consideration to waive full-text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion. All items on the consent calendar are considered routine, and non-controversial and will be approved by (1) one motion if no member of the council, staff, or public wishesto comment or ask questions. Public comments are to be limited to (3) three minutes. Roll call vote required.
CC 1. Approve City Check Register dated 11/8/25- 12/4/25
CONTINUED BUSINESS
CB 1. Staff Report: Christopher Lopez, City Manager
Subject: A Resolution of the Mayor and City Council of California City Authorizing an Agreement Between the City of California City and the County of Kern for Fire Protection Duties and Enforcement of State Fire Marshal Regulations Recommendation: Staff recommends the City Council adopt Resolution No. 25-3188
NEW BUSINESS
NB 1. Staff Report: Christopher Lopez, City Manager-Shannon Hayes, Acting Public Safety Director Subject: A Resolution of the City Council of The City of California City, California, Authorizing the City Manager to Enter into an Agreement with Nichols Consulting for a Fixed Fee for Three (3) Years Not to Exceed $8,000 for the Period Ending June 30, 2027 Recommendation: Staff recommends the City Council adopt Resolution No. 25-3189 NB 2. Subject: Letter of Intent-Echols Group
CITY OF CALIFORNIA CITY
DECEMBER 9,2025
Recommendation: City Council Discuss and provide direction COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234 REPORTS This portion of the meeting is reserved for council members to present information, announcements, and items that have come to their attention. The Brown Act precludes Council, staff, or public discussion. Short staff responses are appropriate. The Council will take no formal action. A Council member may request the City Clerk to calendar an item for consideration at a future meeting or refer an item to staff.
ADJOURNMENT
AFFIDAVIT OF POSTING- December 5, 2025
I, Leanndrea Weible, Acting City Clerk for the City of California City, California, DO HEREBY CERTIFY that the foregoing notice was posted on all official City bulletin boards and the City’s website at least 72 hours prior to the meeting in compliance with the provisions of the Brown Act.
DR- PD
1 1
0 0 0 0
2021 2022 2023 2024 2025
MURDER - OCTOBER
10 12
7 14
6 2021 2022 2023 2024 2025
TOTAL VIOLENT
CRIMES - OCTOBER
14 51
18 17 12
2021 2022 2023 2024 2025
TOTAL PROPERTY
CRIMES - OCTOBER
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT: PD MONTHLY DEPARTMENT REPORT
October 2025 Stats
SEPTEMBER 2025 vs. OCTOBER 2025, DOWN BY 5.26%
Part 1 Crimes September 2025 – 19
Part 1 Crimes October 2025 – 18
18 63
25 32
18 0
10 20
30 40
50 60
70 2021 2022 2023 2024 2025
TOTAL PART 1 CRIMES
Total Violent and Property Crimes Reported 2021 - 2025
October Part 1 Crimes - as of 11/17/2025
DR- PD
2 0 0 1
6 2
5 3
2 0
SEPTEMBER 2025 PART 1
CRIMES BY AREA
0 0 1
4 1
6 3 3
0 OCTOBER 2025 PART 1
CRIMES BY AREA
OCTOBER 2025 – PATROL STATISTICS
Total Incidents (October): 1,235 Total Arrests (October): 13 Felony Arrests: 7 Misd. Arrests: 6
Total Incidents (2025): 14,256 Total Arrests (2025): 234 Felony Arrests: 127 Misd. Arrests: 107
Calls for Service (October): 1,031 Calls for Service (2025): 11,178 Citations Issued (October): 8 Citations Issued (2025): 201 DR- PD
1 16
28 18 14 14
2021 2022 2023 2024 2025
TOTAL PROPERTY
CRIMES - NOVEMBER
6 13 9 8 7
2021 2022 2023 2024 2025
TOTAL VIOLENT
CRIMES - NOVEMBER
0 0 0 0 0
2021 2022 2023 2024 2025
MURDER -
NOVEMBER
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT: PD MONTHLY DEPARTMENT REPORT
November 2025 Stats
OCTOBER 2025 vs. NOVEMBER 2025, UP BY 16.67%
Part 1 Crimes October 2025 – 18
Part 1 Crimes November 2025 – 21
22 41
27 22
21 0
10 20
30 40
50 2021 2022 2023 2024 2025
TOTAL PART 1 CRIMES
Total Violent and Property Crimes Reported 2021 - 2025
November Part 1 Crimes - as of 12/02/2025
DR- PD
2 0 0 1
4 1
6 3 3
0 OCTOBER 2025 PART 1
CRIMES BY AREA
0 0 1
3 3
6 6
2 0
NOVEMBER 2025 PART 1
CRIMES BY AREA
NOVEMBER 2025 – PATROL STATISTICS
Total Incidents (November): 1,245 Total Arrests (November): 15 Felony Arrests: 9 Misd. Arrests: 6
Total Incidents (2025): 15,501 Total Arrests (2025): 248 Felony Arrests: 135 Misd. Arrests: 113
Calls for Service (November): 982 Calls for Service (2025): 12,160 Citations Issued (November): 9 Citations Issued (2025): 210
COUNCIL AGENDA ITEM
October 2025 Report
TO: Honorable Mayor and City Council
SUBJECT: TREASURER MONTHLY DEPARTMENT REPORT
Balance on Net Balance on Percent
9/30/2025 Transactions 10/31/2025 of Total
Bank of the Sierra -- General Checking $ 3,623,276 $ (700,271) $ 2,923,005 17.56% Bank of the Sierra -- Cannibas Checking $ 2,181 $ 15,716 $ 17,897 0.11% Sub-Total Operating Accounts $ 3,625,457 $ (684,555) $ 2,940,903 Balance on Net Balance on Percent
9/30/2025 Transactions 10/31/2025 of Total
Local Agency Investment Fund (122) $ 7,874,680 $ 105,029 $ 7,979,709 47.93% Kern County Investment Fund (9153) $ 4,699,782 $ - $ 4,699,782 28.23% Multi-Bank Securities (CD Manager) $ 1,031,879 $ (3,098) $ 1,028,781 6.18% Sub-Total Investment Accounts $ 13,606,341 $ 101,931 $ 13,708,272 Total City Operating Funds $ 17,231,798 $ (582,624) $ 16,649,174 100.00% Checking & CD Accounts 9/30/2025 Net Transactions 10/31/2025 Housing Corp. -- Bank of the Sierra, Checking $ 2,106,861 $ 3,351 $ 2,110,212 72.87% Housing Corp. -- Bank of the Sierra, CD 7653 $ 114,664 $ 337 $ 115,001 3.97% Housing Corp. -- Bank of the Sierra, CD 7654 $ 143,423 $ 422 $ 143,845 4.97% Housing Corp. -- Bank of the Sierra, CD 6574 $ 262,708 $ 745 $ 263,453 9.10% Housing Corp. -- Bank of the Sierra, CD 6582 $ 262,708 $ 745 $ 263,453 9.10% Total Housing Corporation Funds $ 2,890,364 $ 5,601 $ 2,895,965 100.00% Checking & CD Investment Accounts 9/30/2025 Net Transactions 10/31/2025 SDI -- Bank of the Sierra, Checking 6370 $ 430,393 $ (126) $ 430,267 0.46% SDI -- Bank of the Sierra CD 2389 $ 268,075 $ 779 $ 268,854 0.29% SDI -- US Bank Investments *$ 92,860,470 $ 449,173 $ 93,309,644 99.26% Total SDI Agency Funds $ 93,558,938 $ 449,827 $ 94,008,765 100.00% Checking & Investment Accounts 9/30/2025 Net Transactions 10/31/2025 Successor -- Bank of the Sierra, Checking 8870 $ 297,033 $ 4,365 $ 301,398 25.90% RDA/Successor -- US Bank Investments $ 862,083 $ 0 $ 862,083 74.10% Total Successor Agency Funds $ 1,159,116 $ 4,365 $ 1,163,481 100.00% Restricted SDI Accounts
Note: Interest earned from the SDI CD is directly deposited into the SDI checking account monthly.
Restricted RDA/Successor Agency Accounts
Restricted Housing Corporation Accounts
FROM: Keith Middleton, City Treasurer
The values presented in this report are extracted from End of Month bank and investments statements.
The General Funds investment portfolio consists of funds for operations, Capital Improvement Projects (CIP), water rate stabilization, administration replacements and reserves.
General Operating Accounts
General Investment Accounts
1 of 2
October 2025 Report
INVESTMENT POLICY
9/30/2025 10/31/2025
Beginning Market Value 92,534,702 92,860,470
Ending Market Value 92,860,470 93,309,644
325,768 449,173
9/30/2025 10/31/2025
Beginning Market Value - -
Ending Market Value - -
- -
9/30/2025 10/31/2025
Beginning Market Value 97,203 0
Ending Market Value 0 0
(97,203) -
9/30/2025 10/31/2025
Beginning Market Value 270,003 0
Ending Market Value 0 0
(270,002) 0
9/30/2025 10/31/2025
Beginning Market Value 862,082 862,082
Ending Market Value 862,082 862,082
- -
Total RDA/Successor Investment Assets 862,083 862,083
Total "US Bank" Investment Assets 93,722,553 94,171,727 Market Value Summary - SUCCESSOR AGENCY Proj Area TAX RESERVE Investment Results (Acct. Number 211146003)
Market Value Summary - REDEVELOPEMENT AGENCY PROJ AREA TAX Investment Results (Acct. Number 211146000)
Market Value Summary - SUCCESSOR AGENCY Proj Area TAX INTEREST Investment Results (Acct. Number 211146001)
Market Value Summary - SUCCESSOR AGENCY Proj Area TAX PRINCIPAL Investment Results (Acct. Number 211146002)
RDA/Successor Agency Accounts
California City, California 93505
TREASURER'S MONTHLY REPORT OF INVESTMENT
The Treasurer shall invest the City's monies as permitted in the Citie's approved investment policy and approval of both the City Manager and Finance Director. The Treasurer shall consider current and projected cash needs in making such investments.
US Bank
SDI Account
Market Value Summary - CUSTODIAN ACCOUNT
Investment Results (Acct. Number 104388-010)
US Bank
2 of 2
DR-HOUSING
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Nicole Jarmon- Housing Manager
SUBJECT: HOUSING MONTHLY DEPARTMENT REPORT
BACKGROUND/ DISCUSSION
Desert Jade
Currently we have 88 apartments filled.
The waitlist currently has 71 applicants.
One unit is ready to be rented, applications are being reviewed Four units are undergoing rehab.
Desert Jade has three units red tag due to the fire that is undergoing demolition.
Legends
Currently has 6 apartments and 6 houses filled.
Waitlist is combined with Desert Jade
DR-PARK
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Leanndrea Weible, Park Coordinator
SUBJECT: Park and Recreation Monthly Department Report
CURRENTLY:
• Sunday Mornings Holy Scriptures Church Service is held in the Arts and Community Building
• Wednesdays the Art Center is used for Zumba Classes from 5-6pm. For more information, you are invited to stop in during a session and speak to Cheryl • Monday, Wednesday and Friday 5-7:45pm Strata is used for Basketball Practice by Can’t Stop Wont Stop YNA
UPCOMING:
• Annual Toy Giveaway and Food Drive hosted by R.E.A.C.H. will take place at the Strata Center December 5-7, 2025
• Annual Toy Giveaway hosted by Safe Haven Kids League will take place at the Strata Center on Saturday December 20, 2025
***REMINDERS***
Anyone interested in volunteering at the park can pick up a Volunteer application at City Hall.
DR-OHV
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Inge Elmes, OHV Manager
SUBJECT: OHV MONTHLY DEPARTMENT REPORT
Events
Thanksgiving Holiday season was a huge success. There was a total of 505 visible RV groups, significantly higher than the previous three years. The weather was great and minimal incidents reported. A huge thanks goes out to PD presence and FD assistance with emergency and nonemergency calls.
Operations
Ground crew will focus on trash clean up, park maintenance, and any additional road repairs as necessary. Staff is preparing for the New Year’s Holiday season.
The Borax Bill Park Visitor Center will be open special hours during the New Years Holiday and closed on 12/24 and 12/25. Please visit social media accounts for holiday hours. Vendors will be set up from 12/27-1/4, from 8am-dusk.
Manager Updates
All G24 grant close out and reimbursements are scheduled to be submitted by beginning of January 2026.
Finance Report
For the month of November, OHV sales totaled $62,221.00. These numbers are actuals and reflect only amounts received within each month. Please refer to Monthly Permit Sales report for FY totals.
*OHV sales are deposited to specific OHV Permit Program GL revenue codes #29-3992 through #29-3998. Please refer to the financial statement for details. Not all proceeds are deposited in the same month.
**Some merchandise was purchased by staff at a discounted rate. All sales for merchandise are allocated to GL revenue code 29-3691.
Attachment
OHV Permit Program Sales Spreadsheet
CC 1
COUNCIL AGENDA ITEM
December 09, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Kenny Cooper, Finance Manager
SUBJECT: Approve City Check Register dated 11/08/2025-12/04/2025 BACKGROUND/ DISCUSSION:
The following checks have been prepared by the Finance Department. The items are provided to the Mayor and City Council for review and approval.
RECOMMENDATION:
Staff recommends the City Council discuss and approve the attached check register.
CB 1
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Christopher Lopez, City Manager
SUBJECT: A Resolution of the Mayor and City Council of California City Authorizing an Agreement Between the City of California City and the County of Kern for Fire Protection Duties and Enforcement of State Fire Marshal Regulations
BACKGROUND:
The City has historically utilized a special tax to fund various operations for the community. Due to the loss of Measure C in 2024, the City made several reductions in personnel to offset some of the lack of funding, as well as putting forward various items to the voters to increase revenues.
On October 14, 2025, and during discussions related to Strategic Planning for the City, the Mayor and City Council discussed the importance of alternative service delivery options to help alleviate the City’s budget and service solvency issues. The Council unanimously supported this and provided direction to do such.
On October 28, 2025, the Mayor and Council approved a resolution appointing an Interim Fire Chief to oversee Fire Department operations in California City. That same night, the Council directed the City Manager to obtain a formal proposal from Kern County for fire protection services.
Kern County Fire has provided a proposal, and this item is provided as an attachment. The following synopsis provides a backdrop and foundation for this discussion.
BUDGET BACKGROUND
As background to the City’s budget issues, the City adopted its FY 24/25 Budget on March 25, 2025, which utilized fund balance to balance the budget. On July 8, 2025, the Mayor and Council adopted the FY 25/26 Budget with the use of fund balance again to balance the budget. The City has now adopted two budgets in the last six months that utilized fund balance to balance its operating budgets.
Over the last year, the City has asked voters to approve an extension of Measure C, which generated approximately $6M in revenues to fund public safety in the City, which expired on June 30, 2024 to help alleviate the City’s budget situation. Voters have not approved a new parcel tax CB 1
initiative, resulting in a lack of ongoing revenues to support City operations. In July 2025, the Mayor and City Council received polling results from registered voters that identified the lack of public support for a parcel tax measure to fund critical operations in the City including public safety. As a result, the Council did not direct staff to prepare resolutions and various other items for a ballot measure asking voters to approve a special parcel tax to fund critical operations.
While various adjustments have been made to the budget, with the most notable one resulting in the elimination of 19 positions and saving $1.3M, there remains significant budget and service delivery issues in the community. Numerous residents have noticed these impacts, and the City is doing the best it can with its current limitations. Additionally, the City has gone without general liability insurance for over three years, which is not the best governance practice.
General Fund Overview
The general fund is the primary operating fund for the City. The general fund pays for many of the services offered to the City’s residents including personnel for Planning, Public Works Administration, Clerk’s Office, a portion of Police and Fire Department costs, and Recreation programming. While many cities fund public safety primarily through the general fund, California City has funded the bulk of its public safety departments through a special tax for public safety.
Relying on a special tax measure with an expiration date for such a critical function has the effect of funding a primary function of local government with a temporary funding stream. Funding a core element of local government with a temporary funding stream is not a best practice as it locks the City into a guaranteed crises every few years if there is no funding mechanism to take over the finite revenue stream. With the expiration of Measure C, this created a significant hole in the City’s budget since it relied on a temporary measure to fund public safety. While the City is current fully funding its public safety operations with the use of fund balance, this finite source of revenue will eventually go away.
The pattern of temporarily funding such core functions of government has locked the City into a pattern of instability and resulted in many issues for the California City community.
Historical Review of Special Tax Revenues and Expenditures: Budget Problem While Measure C covered a significant portion of the City’s public safety costs, the City ran deficits in these operations for many years. This means that even with the allocation of Measure C, or other special tax revenues, the City was unable to contain its expenditures within the revenues generated for public safety. The table below lists the total revenues, and the respective expenditures over the last ten years. The numbers included below are taken from the City’s audited financial statements, which can be viewed on the Finance Department website.
Fiscal Year
Ended
Public Safety
Revenues
Expenditures Excess (deficiency) of
revenues over (under)
expenditures
2015 $ 6,753,885 $ 7,307,711 $ (553,826)
2016 $ 6,794,075 $ 8,153,345 $ (1,359,270)
2017 $ 6,658,706 $ 8,632,413 $ (1,973,707)
CB 1
2018 $ 6,934,156 $ 6,884,488 $ 49,668
2019 $ 7,787,816 $ 8,043,685 $ (255,869)
2020 $ 7,283,017 $ 8,857,956 $ (1,574,939)
2021 $ 7,704,425 $ 7,330,376 $ 374,049
2022 $ 7,583,090 $ 8,414,445 $ (831,355)
2023 $ 7,229,442 $ 7,593,986 $ (364,544)
2024 $ 6,621,949 $ 8,588,388 $ (1,966,439)
In the last ten years, and based on the City’s audited financial statements, the City exceeded its public safety expenditures in eight of the last ten years. This means that the City’s special tax for public safety was only covering a portion of the City’s public safety costs. The additional funding necessary to cover this expense was covered through the general fund.
Use of Fund Balance to Balance the Budget
The use of fund balance to cover ongoing expenditures is not a recommended practice. Given the City’s accrual of fund balance in the general fund, the City can utilize this funding in order to balance the City’s budget. This deficit spending should be remedied, and a long-term solution is necessary to remove the City’s reliance on one time funding.
Utilizing fund balance is not a viable long-term strategy and will eventually lead to fiscal insolvency.
Additionally, the elimination of personnel in 2024 had the effect of lessening total general fund expenditures and thereby lessening the deficit for the fiscal year. Those reductions in personnel did come at a service cost since there is currently no maintenance staff to perform duties at the parks, city hall, senior center, and other functions of the City. Reductions in maintenance and operations expenditures have also provided significant savings to the community, but the City is grappling with conditions related to service insolvency, as its unable to meet basic demands for service.
Financial Health Indicators
When reviewing various items that provide an indication to the City’s financial health, the following items should raise concern as it relates to the City’s financial health, which are currently being utilized by the City:
1. Use of fund balance to balance the budget
2. Net operating deficits in the general fund
3. City is unable to keep pace with aging of capital assets
4. General fund subsidies occur in enterprise funds including the Airport Fund and the Golf Course Fund
5. Nonrecurring revenues from development have been utilized to fund operating costs (use of one-time revenue from development projects)
6. Public service levels do not need the standards and needs in the community CB 1
These practices are indicative of the broader issues related to the City’s ability to remain solvent into the future.
Insolvency:
California City has experienced significant stress due to ongoing deficits that have resulted in several service delivery challenges. Without additional painful cuts to critical and vital services, and in the absence of new revenue sources, the City is headed towards fiscal insolvency.
Opportunity still exists for the City of California City to address its financial condition, but it will require significant, difficult, and challenging conversations related to how to move the City towards financial sustainability.
It should be noted that according to John Knox and Marc Levinson, who wrote the document titled, Avoiding and Using Chapter 9 in Times of Fiscal Stress, they state that “filing for bankruptcy protection under chapter 9 should be considered a last resort, to be effected only after every effort has been made to avoid it.”
They also state that, “In these circumstances, painful cuts in service levels, employee compensation and other expenses may be required, as well as increased revenues through higher taxes or fees.”
Fire Department Discussions
On August 14 2025, the City Manager’s Office met with all the line personnel of the Fire Department. The purpose of this meeting was to allow the free flow of information, ask questions, and determine the needs of the men and women of the California City Fire Department. During this discussion, the following themes emerged:
1. Service demand levels are increasing
2. The CoreCivic facility will require additional calls for service, and there are concerns with the additional workload it will place on staff
3. Long term financial stability is necessary, and the City should plan for enough funding in reserves
4. The City can improve its communications with the community
5. The Fire Department needs its own Fire Chief
a. The concept of a “Public Safety Director” was only intended to be short term, and it was not intended to be this way into the future.
6. Kern County is a great and valuable resources and they do an incredible job assisting with operations when they have the capacity to do so
7. The Department needs assistance with its budget, personnel management, and other administrative functions that are ordinarily handled by a Chief Executive Officer On October 28, 2025, the Mayor and Council approved an agreement with Kern County Fire to provide interim Fire Chief services.
Notable Investments in Public Safety
It should be noted that there have been several recent investments made in the public safety. These investments, which were made possible from a development project, was made possible from one CB 1
time funding and is not evergreen, nor is this funding stream replenishable, making it unsuitable for long term sustainability.
Kern County Fire Proposal
On October 28, 2025, the Mayor and City Council directed staff to obtain a proposal from Kern County Fire for the provision of fire protection services. Kern County has provided the attached proposal for the Council’s review. The following items are included within their proposal:
• Fire prevention and suppression
• Emergency medical response
• Rescues
• Hazardous Materials response
• Fire inspections
• Plan review
• Fire cause and Arson investigation
• All support services including supervision, dispatching, training, maintenance, procurement, and supplies.
After preliminary discussions with Kern County Fire, they have informed the City Manager’s Office that this may be structured in such a way where City contributions for the provision of fire services is minimal for the first couple of years, which would thereby help lessen the financial impacts of utilizing fund balance to cover day to day operations, and may be an opportunity for the City to guarantee service delivery to residents of California City.
The County has provided four service level options, which are summarized below:
Option A
• 3 – Person Staffing (1 Captain, 1 Engineer, and 1 Firefighter) Option B
• 3 – Person Staffing with Advanced Life Support (ALS) service (1 Captain, 1 Engineer, 1 Firefighter Paramedic) –
Option C
• 4 – Person Staffing (1 Captain, 1 Engineer, 2 Firefighters) – Option D
• 4 – Person Staffing with ALS (1 Captain, 1 Engineer, 1 Firefighter, 1 Firefighter Paramedic)
The potential costs are listed below based on the various options:
FY 25-26 FY 26-27 FY 27-28
3- person Staffing (1 Captain, 1 Engineer, 1 FF) $388,606 $1,585,512 $2,426,075 Annual Cost w/ equipment credit $30,284 $192,039 $196,519 $3.98M equipment phase-in 9% 35% 56%
CB 1
3- person Staffing with ALS (1 Captain, 1
Engineer, 1 FF PM)
$402,887 $1,643,781 $2,515,236
Annual Cost w/ equipment credit $44,566 $250,308 $285,680 $3.98M equipment phase-in 9% 35% 56%
4- person staffing (1 Captain, 1 Engineer, 2 FF) $495,445 $2,021,457 $3,093,139 Annual Cost w/ equipment credit $137,134 $627,985 $863,583 $3.98M equipment phase-in 9% 35% 56%
4- person staffing with ALS (1 Captain, 1
Engineer, 1 FF, 1 FF PM)
$509,737 $2,079,726 $3,182,300
Annual Cost w/ equipment credit $151,415 $686,254 $952,744 $3.98M equipment phase-in 9% 35% 56%
November 3, 2025 Special Meeting
At the November 3, 2025 Special Meeting of the Mayor and City Council, the Council unanimously directed that the City accept Option A and directed staff to formalize a final agreement to be approved by the Mayor and City Council at a future meeting.
November 17, 2025 Meeting
At the November 17, 2025 meeting, the Mayor and City Council reconsidered the option selected at the November 3, 2025 meeting. The Mayor and City Council chose Option B, and directed staff to make this change.
Finalization of Kern County Agreement
Since the November 3, 2025 meeting, the City Manager’s Office has worked alongside Kern County Fire, and the respective associations to ensure that all matters have been resolved and addressed prior to the finalization of this agreement. Two personnel in the Fire Department will be transferred out of the Fire Department as Kern County will not be absorbing those employees, and they will be retained by the City. Those employees are involved with overseeing a cannabis related enforcement grant, and a carve out is included the proposed agreement.
In partnership with the Association representing the safety employees in the Fire Department, the Fire Association President has confirmed that the moving of the personnel to Kern County Fire and the respective items associated with that move have been agreed upon by their membership.
Kern County Fire has also confirmed that they are in agreement with the proposed movement, and all items have been resolved and addressed.
RECOMMENDATION:
It is recommended that the Council adopt the resolution of the Mayor and City Council of California City Authorizing an Agreement Between the City of California City and the County of Kern for Fire Protection Duties and Enforcement of State Fire Marshal Regulations.
CB 1
ATTACHMENTS
:
1. Resolution
2. Kern County Fire Agreement
RESOLUTION NO. 25-3188
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF CALIFORNIA CITY
AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF CALIFORNIA CITY AND
THE COUNTY OF KERN FOR FIRE PROTECTION DUTIES AND ENFORCEMENT
OF STATE FIRE MARSHAL REGULATIONS
The City Council of the City of California City (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, in 2024, the City eliminated its Police and Fire chief positions in an attempt to realize budget savings; and
WHEREAS, on August 14, 2025, the City Manager’s Office met with all line level personnel from the Fire Department and gathered feedback and input from the rank and file; and
WHEREAS, the City Manager’s Office has worked with Kern County Fire in developing an agreement for fire protection services; and WHEREAS, the City Council has directed staff to meet and confer regarding impacts to represented employees and has completed this; and WHEREAS, the City Council desires to enter into an agreement with Kern County for Fire Protection Services and Enforcement of State Fire Marshal regulations.
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AS FOLLOWS:
SECTION 1: The above recitals are true and correct.
SECTION 2: The City Council authorizes the Mayor and City Manager to execute a cooperative agreement with Kern County for Fire Protection Services and Enforcement of State Fire Marshal regulations.
SECTION 3: The City Council authorizes the City Manager to take all actions necessary to implement this action.
SECTION 4: This Resolution becomes effective immediately upon approval by the City Council.
[THIS SPACE IS INTENTIONALLY LEFT BLANK]
PASSED, APPROVED, AND ADOPTED by the City Council of the City of California City, this 9th day of December 2025.
__________________________
Marquette Hawkins
Mayor
ATTEST: APPROVED AS TO FORM:
___________________________ __________________________
Leanndrea Weible Victor M. Ponto,
Acting City Clerk City Attorney
CERTIFICATION
I, Leanndrea Weible, Acting City Clerk of the City of California City, California, hereby certify that the foregoing resolution was duly adopted at a meeting of the City Council of said City at its meeting held on the 9th of December 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of California City, California, this 9th day of December, 2025. __________________________
Leanndrea Weible
Acting City Clerk
CITY AGREEMENT NO.: ___________
COUNTY AGREEMENT NO.: ____________
AGREEMENT BETWEEN THE CITY OF CALIFORNIA CITY AND THE COUNTY OF KERN
FOR COUNTY OF KERN FIRE PROTECTION DUTIES
AND
ENFORCEMENT OF STATE FIRE MARSHAL REGULATIONS
(COUNTY OF KERN-CITY OF CALIFORNIA CITY)
4936-0829-6574 v1 Page 1 of 15
THIS AGREEMENT, made and entered into on , by and between COUNTY OF KERN, a political subdivision of the State of California (hereinafter referred to as “COUNTY”) and CITY OF CALIFORNIA CITY, a municipal corporation within COUNTY of Kern (hereinafter referred to as “CITY”);
WITNESSETH:
WHEREAS, Government Code section 36501 provides that the government of a general law city shall be vested in the officers therein named and includes the designation of a fire chief; and
WHEREAS, Government Code section 38611 provides that the legislative body of a general law city shall establish a fire department for CITY, and that said fire department shall be under the charge of a chief who shall have had previous training and experience as a firefighter, and that the other members of said fire department shall consist of paid firefighters or such companies of call firefighters as the legislative body may determine; and WHEREAS, Pursuant to the provisions of Health and Safety Code section 13143, Regulations of the State Fire Marshal have been adopted which are set forth in Chapter 1 of Title 19 of the California Code of Regulations; and
WHEREAS, Government Code section 51301 authorizes the Board of Supervisors to contract with a city within COUNTY and authorizes CITY legislative body to contract with COUNTY for the performance of city functions by appropriate county officers and employees; and WHEREAS, Government Code section 51303 provides in part that: “COUNTY officers and employees named in the contract shall exercise within CITY all of the powers and duties conferred upon CITY officers or employees named in the contract”; and WHEREAS, CITY Council of CITY desires that the functions of the Chief of the Fire Department of CITY, including enforcement of the regulations of the State Fire Marshal, shall be performed by the Chief of the Fire Department of COUNTY acting as the Fire Chief of CITY; and WHEREAS, CITY and COUNTY have negotiated this Agreement to concurrently terminate prior County agreement #1033-2002
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between COUNTY and CITY as follows:
DRAFT
4936-0829-6574 v1 Page 2 of 15
1. POWERS AND DUTIES OF COUNTY FIRE CHIEF AND COUNTY FIRE
DEPARTMENT EMPLOYEES
(A) The Chief of the Kern County Fire Department and employees of COUNTY Fire Department shall exercise within CITY all of the powers and duties conferred upon a City Fire Chief of City Fire Department personnel, including reporting to CITY Council and enforcing the “Regulations of the State Fire Marshal.” (B) Fire prevention and suppression, emergency medical responses, rescues, hazardous materials responses, fire cause and arson investigation plus all COUNTY support services including, but not limited to, supervision, dispatching, training, equipment maintenance, supplies, and procurement, collectively referred to as “services.” “Services” shall not include duties relating to the inspection, enforcement, or any other related functions concerning CITY-regulated local cannabis industry as currently performed by CITY personnel pursuant to CITY’s Proposition 64 grant funding. Functions within CITY’s boundaries shall be vested in COUNTY Fire Chief and employees of COUNTY Fire Department as may be designated by COUNTY Fire Chief.
Such reassignment of resources shall have no effect on CITY’S Annual Fee for services. (C) In the performance of their duties of prevention, control and suppression of fires, emergency medical responses, rescues, hazardous materials responses and fire investigation functions pursuant to this Agreement, the personnel of COUNTY shall have the powers and duties of the Chief of the Fire Department of CITY and shall perform said services in accordance with professional firefighting standards. In the event of a dispute between the parties as to these duties, functions or manner of performance of these duties and functions, determinations by COUNTY Fire Chief shall be final and conclusive between the parties.
(D) All engine companies assigned to CITY fire station(s) as listed in Section 5 (C) “SERVICE LEVEL” shall carry automatic defibrillators and their personnel shall be certified Emergency Medical Technician-Defibrillator.
(E) COUNTY will participate in and support community emergency preparedness, education, training, and exercises. COUNTY personnel will work with CITY to continue to provide public education programs currently offered by CITY. The scope and specific programs may be modified by COUNTY and CITY after subsequent evaluation. CITY shall retain responsibility for CITY’s internal emergency management and related programs, as well as communication and coordination with COUNTY’s Emergency Operations Center (EOC), when activated.
(F) It is expressly understood that in the performance of the services herein provided for, COUNTY shall be, and is, an independent contractor and is not an agent or employee of CITY. COUNTY has and shall retain the right to exercise full control and supervision of the services and full control over the employment, direction, assignment, compensation and discharge of all persons employed by COUNTY and assisting in the performance of services hereunder. COUNTY shall be solely responsible for all matters relating to the payment of its employees including, but not limited to, compliance with DRAFT
4936-0829-6574 v1 Page 3 of 15
social security, workers’ compensation, withholding, and all regulations governing such matters.
DRAFT
4936-0829-6574 v1 Page 4 of 15
(G) COUNTY shall provide as necessary, fire inspection services as are provided by COUNTY Fire Department to residents of the unincorporated area of COUNTY of Kern. (H) County Fire Department Personnel shall make a good faith effort to attend a City Council meeting once every month of the calendar year.
2. PLANS REVIEW, INSPECTIONS AND CODE ENFORCMENT FUNCTIONS Solely for the purpose of enforcing or assisting in the enforcement of the regulations of the State Fire Marshal, as provided for in Chapter 1 of Title 19 of the California Code of Regulations, COUNTY will perform the following specific functions on behalf of CITY:
(A) Plan check and approve or disapprove all building, electrical, and plumbing plans for all occupancies covered by Chapter 1 of Title 19 of the California Code of Regulations before a building permit is issued by CITY and construction started. (B) Plan check and approve or disapprove any changes in approved plans on all the above-described occupancies for new construction, alterations to existing buildings, and any changes of occupancy.
(C) Make joint final inspection with building inspection personnel of CITY on all of the above-described occupancies. No certification of lights, gas, or occupancy shall be issued, nor business license granted until joint approval by COUNTY and CITY after joint final inspection.
COUNTY will perform these functions without an increase in the Annual Fee (as describe in Paragraph 7), provided that fees for these services in the amounts established by COUNTY are paid to COUNTY pursuant to Paragraph 10 and provided further that the services do not require that COUNTY increase staffing level set forth in Paragraph 5(c).
3. FIRE HYDRANTS AND WATER SUPPLY
(A) CITY, as its sole and separate obligation, shall continue to provide a system of fire hydrants and water supply for fire prevention and suppression within CITY. CITY shall cooperate with and assist COUNTY in requiring that CITY Water Department or other local water purveyors provide at least minimum water fire flows as required by the California Fire Code and hydrants for fire protection purposes within CITY. (B) COUNTY shall annually inspect all fire hydrants within CITY to ensure that fire hydrants are mechanically operable and capable of delivering water. COUNTY shall notify CITY Water Department or other local water purveyors, in writing, of any maintenance requirements as soon as possible after such inspections and at any other time COUNTY becomes aware of maintenance or repair requirements. COUNTY shall not be liable to pay CITY Water Department or any other water purveyors for hydrant installation, painting to COUNTY specifications, repair, maintenance, or rental fees or any other related costs or expenses.
DRAFT
4936-0829-6574 v1 Page 5 of 15
4. ROUTING OF EMERGENCY CALLS
(A) The immediate transference of 9-1-1 calls to COUNTY by CITY’s Public Safety Answering Point (PSAP) shall be performed on all fire, rescue, hazardous materials, and emergency medical incidents without cost to COUNTY. CITY shall be responsible for all costs associated with connecting ring down circuits from its PSAP to COUNTY’s circuit. (B) COUNTY shall provide to CITY annually, and upon request, statistical response information reports for emergency incident activity and response times. (C) Prior COUNTY agreement #1033-2202 between COUNTY and CITY for dispatch service is terminated.
5. SERVICE LEVEL
(A) Nothing in this Agreement precludes the future expansion, closure, consolidation, or relocation of the fire stations referenced herein if such action is mutually beneficial to and agreed upon by both CITY and COUNTY.
(B) Any agreed-upon adjustments in staffing may cause adjustments in the determination of the Annual Fee.
(C) COUNTY will provide to CITY a minimum assigned service level based on daily staffing (24-7) of one (1) Captain, one (1) Engineer, and one (1) Firefighter Paramedic.
Fire personnel assigned will be comparably equipped and trained as other similar positions within COUNTY Fire Department. COUNTY will also provide such “backup” or additional service as reasonably necessary in accordance with professional firefighting standards, including, but not limited to those situations where firefighters assigned to the CITY are utilized outside CITY limits on emergencies. (D) Any request by CITY for increased Service Levels shall be communicated to COUNTY no later than January 1st prior to implementation the following fiscal year, subject to approval by COUNTY and in accordance with Section 12 “POTENTIAL CHANGES IN SERVICE LEVEL” herein.
6. COST ALLOCATION METHODOLOGY
The Annual Fee in this Agreement is based upon CITY incorporated area boundaries as of the effective date of this Agreement and minimum service level set forth in Section
5. A change in the incorporated area boundaries of the CITY shall be considered a potential change in service subject to Section 12 “POTENTIAL CHANGES IN SERVICE LEVEL” herein. The methodology for cost allocation includes the following:
(A) Direct Costs - Those costs include fire department direct station cost to operate a COUNTY fire station in an incorporated CITY; and include the following:
i. Average cost for station assigned uniformed personnel and pro rata shares of Battalion Chiefs, including salary and all benefits but not including overtime to maintain constant staffing based on fiscal year 2024-2025 costs.
DRAFT
4936-0829-6574 v1 Page 6 of 15
ii. Equipment cost allocation of $42,500 per year per station. iii. Average of historic utility cost of County stations. iv. Fire station maintenance cost allocation of $10,000 per year per station for stations owned by County.
(B) Indirect Cost - Calculation of a " fair share" administrative/overhead cost factor to account for indirect costs associated with providing fire protection services to participating CITY. For the duration of this Agreement the Indirect Cost rate shall be calculated as 10% of the Direct Costs.
(C) The Direct and Indirect Costs are then added together to identify the “Total Cost.” (D) Each year after the first year of this Agreement, Total Cost are determined as the prior year’s Total Cost plus 2%.
(E) Due to the strategic location of the station in California City, within the context of the countywide mutual aid system, a discount of 15% of Total Cost shall be applied to arrive at CITY’s Total Cost.
(F) All amounts collected by COUNTY from CITY under this Agreement for the Equipment Cost Allocation contained in Section 6(A)(ii) shall be accumulated and utilized by COUNTY for new or replacement Kern County Fire Department vehicles and equipment primarily serving, and housed within, CITY.
7. COMPENSATION
CITY will compensate COUNTY for the performance of duties under this Agreement as follows:
(A) The Annual Fee owed by CITY to COUNTY for the performance of duties under this Agreement is included as “Exhibit A” to this Agreement. (B) Any increases in costs necessitated or mandated by legislative or judicial decisions or actions, or by CITY’s request for increases in service level, other than penalties or damages due to negligence of COUNTY, shall be due in the fiscal year that they occur.
(C) Average Salaries and Benefit Costs will be used as the basis for costs to be billed to the CITY for any additional personnel requested by the CITY. (D) COUNTY shall be responsible for all costs and expenses incident to the performance of the services for CITY, including but not limited to, all costs of equipment provided by COUNTY, all fees, fines, licenses, bonds or taxes required of or imposed against COUNTY and all other of COUNTY’S costs of doing business. Except as expressly provided for herein, CITY shall not be responsible for any expense incurred by COUNTY in performing services for the CITY, unless such expenses are incurred due to CITY’s negligence.
DRAFT
4936-0829-6574 v1 Page 7 of 15
8. FIRE FUND RETENTION
In the event CITY annexes additional areas from COUNTY, COUNTY shall continue to receive the Fire Fund revenues associated with those additional areas. Those additional Fire Fund revenues shall not be deducted from the CITY’s TOTAL COSTS until the next contract cycle when COUNTY’S costs and incidents in the annexed area are reviewed and factored into this Agreement as necessary to serve the new incorporated boundaries.
9. BILLING & PAYMENT
(A) In consideration of the covenants contained herein, CITY shall pay to COUNTY the costs specified in Section 6 “COST ALLOCATION METHODOLOGY” and Section 7 “COMPENSATION” herein over the term of the Agreement. The Kern County Fire Department shall, within thirty (30) days of the close of each calendar year quarter, invoice CITY for one fourth of the amount to be paid annually. CITY shall pay COUNTY within forty-five (45) days of receipt of the invoice. Invoices and general notices regarding billing and payment shall be sent to CITY at:
City of California City
21000 Hacienda Boulevard
California City, CA 93505
Payments shall be sent to:
Kern County Fire Department
5642 Victor Street
Bakersfield, CA 93308
Either party shall notify the other in writing of an address change. (C) In the event that a billing/payment dispute arises between COUNTY and CITY, the parties will negotiate in good faith to resolve the dispute and the following procedures will be taken to resolve the dispute:
1. The dispute will be specified, in writing, and presented to COUNTY jurisdictional Deputy Fire Chief if a CITY dispute, or to CITY MANAGER if a COUNTY dispute, within thirty (30) days of the receipt of a disputed invoice or disputed payment. CITY shall pay any disputed invoice “under protest.”
2. If COUNTY and CITY cannot fully resolve the dispute within ninety (90) days of receipt of written notification of this dispute (impasse), the impasse will be sent to an independent arbitrator for resolution. Said arbitrator shall be selected jointly by CITY and COUNTY within forty-five (45) days of impasse and shall be paid for equally by CITY and COUNTY. If COUNTY and CITY cannot agree on an arbitrator, each party shall, at its own expense, retain an arbitrator within thirty (30) days after the jointly selected arbitrator should have been DRAFT
4936-0829-6574 v1 Page 8 of 15
selected. These two arbitrators will within thirty (30) days mutually select a third arbitrator. The mutually agreed-upon arbitrator will resolve the matter within thirty (30) days after his/her selection. COUNTY and CITY shall share equally the cost of the third arbitrator. The arbitrator’s resolution of the impasse shall be final and binding.
If COUNTY prevails in arbitration, all money owed and not paid to COUNTY will be forwarded to the mailing address identified in Section 9 “BILLING & PAYMENT”, herein, within thirty (30) calendar days from the date of the issuance of the arbitrator’s decision.
In addition, CITY will be assessed and pay the interest payment amount as calculated for an interest payment in Section 9(B) of this Agreement.
If CITY prevails in arbitration and has paid COUNTY the disputed amount, a refund to CITY will be forwarded to the mailing address identified in Section 9(A), herein, within thirty (30) calendar days from the date of the issuance of the arbitrator’s decision. In addition, COUNTY will pay to CITY the interest as calculated for an interest payment, as identified in Section 9(B) of this Agreement.
10. FEES
All revenues generated from fees established or implemented by COUNTY shall be COUNTY revenues. Fees of any nature collected by CITY on behalf of COUNTY shall be passed through to COUNTY by CITY as COUNTY revenues. CITY shall be authorized to retain a five percent (5%) administrative charge for any fees collected on behalf of COUNTY. Any fees charged and collected by CITY subsequent to the commencement date of service shall remain as revenues of CITY provided that such fees are not identified as fees imposed by COUNTY. COUNTY shall be authorized to retain a five percent (5%) administrative charge for any fees collected by COUNTY on behalf of CITY. Excluding any State, Federal, or judicially mandated Programs or fees, any fees established by COUNTY to be imposed in CITY after the commencement date of service shall require the prior approval of CITY, which shall not be unreasonably withheld. After giving written notice to COUNTY, CITY may at any time choose to pay, in part or whole, any fees levied by COUNTY in lieu of imposition of the fees upon the citizens of CITY.
11. COST RECOVERY
In the event that an incident occurs within CITY while this Agreement is in effect during which COUNTY may be required to deploy a substantial number of COUNTY apparatus and personnel to such incident, COUNTY reserves the right to pursue cost recovery at its sole discretion against the party that caused the incident but not against CITY. In the event CITY pursues cost recovery for COUNTY resources deployed to such an incident, CITY shall promptly pay to COUNTY all such COUNTY costs recovered by CITY less the cost of CITY’S recovery efforts. Costs for COUNTY resources paid for by CITY through this Agreement as detailed in Section 5(C) “SERVICE LEVEL” herein and deployed to such an incident shall not be recoverable by COUNTY from CITY.
12. POTENTIAL CHANGES IN SERVICE LEVEL
DRAFT
4936-0829-6574 v1 Page 9 of 15
If public safety requires an increase in staffing levels during the term of this Agreement, CITY and COUNTY will renegotiate the annual compensation paid to COUNTY.
13. CITY RESOURCES
Upon execution of this agreement, COUNTY agrees to purchase CITY fire assets including Station, Land, Vehicles, and Equipment. The complete list of items to be purchased by COUNTY from CITY is included as an attachment to this agreement titled ‘Exhibit B’.
CITY agrees to receive credit toward fire protection services provided by COUNTY for station, land, vehicles, and equipment contained in Exhibit B totaling $3,981,350. Credit shall be applied over the term of the agreement as follows:
FY 25-26: $358,322
FY 26-27: $1,393,473
FY 27-28: $2,229,556
CITY shall transfer ownership of CITY fire station, land, vehicles, and equipment to County upon execution of this agreement.
(A) Real Property – CITY agrees to transfer and convey all right, title, and interest to existing CITY land and fire station located at 20809 Hacienda Boulevard, APN 205- 330-04, to COUNTY.
(B) Apparatus/Equipment – CITY agrees to transfer and convey all right, title, and interest to COUNTY for all apparatus, vehicles, and capital equipment identified in Exhibit B.
(C)Personnel – In order to avoid the necessity of implementing lay-off procedures, COUNTY agrees to accept as COUNTY employees those full-time CITY Fire Department sworn employees who meet the minimum qualifications and physical requirements that all COUNTY Fire Department sworn employees must periodically meet for their respective employment classifications. In addition, CITY employees to be transferred to COUNTY service shall be required to consent to the release of his or her personnel records to COUNTY, and further consent to the integration of such records in the employee’s COUNTY personnel file.
a. CITY shall continue to pay for the costs of the employees until such time as employees are transferred to COUNTY. CITY retains all liabilities incurred as a result of CITY employment. Including, but not limited to, liabilities related to employee benefits and any liabilities incurred but not reported. b. COUNTY shall not assume any responsibility for personnel benefits or CITY obligations accrued by CITY employees prior to the commencement date of COUNTY service, except as expressly provided for in this Agreement. c. Each CITY Fire Department sworn employee holding the rank of Firefighter, Engineer, or Captain who transfers to COUNTY employment shall be required to complete COUNTY employment paperwork and testing as required by COUNTY. Qualifications of CITY employees will be reviewed by COUNTY for COUNTY to determine eligibility, rank, and salary step at which CITY employees would become COUNTY employees.
DRAFT
4936-0829-6574 v1 Page 10 of 15
d. Employees shall be allowed to roll over up to 144 hours of accrued sick and vacation time from CITY to COUNTY, not to exceed employee’s actual balance. CITY shall be responsible for all payments to CITY employees for any accrued leave balances not transferred to COUNTY. CITY shall be responsible to pay COUNTY for leave balances transferred to COUNTY, calculated per hour at $52.72 for Firefighters, $66.24 for Engineers, and $77.59 for Captains.
e. Terms of employee transfer to be subject to meet and confer and memorialized in a separate MOU between COUNTY and employee association.
14. TERM OF AGREEMENT
The term of this Agreement will begin on January 1, 2026 and shall continue in full force and effect until June 30, 2028 unless otherwise terminated.
15. MODIFICATIONS TO AGREEMENT
(A) A review of the Agreement terms may be initiated at any time by either party, upon written notice to the other, and modifications made to this Agreement upon written consent of both parties, which consent shall not be unreasonably withheld or delayed.
The parties agree to negotiate in good faith and deal fairly with respect to performance under this Agreement and to any proposed modifications to this Agreement. (B) This Agreement may be modified only in writing and with the approval of both CITY and COUNTY.
16. TERMINATION
(A) Either party may terminate this Agreement without cause by providing to the other party in writing at least twelve (12) months advance notice of its intent to terminate; and any such notice of termination by COUNTY shall be served upon CITY by delivery of said notice either in person or by registered mail to the CITY Clerk; any such notice of termination shall be served upon COUNTY by delivery of said notice either in person or by registered mail to the Clerk of the Board of Supervisors. (B) In the event this Agreement is terminated, all real property, equipment, fire apparatus, personal property, and supplies, contained in COUNTY fire station(s) shall remain the sole property of COUNTY.
(C) In the event CITY detaches from COUNTY, any unpaid Annual Fee Limitation excess together with any outstanding Annual Fee payments due by CITY as of the effective date of the detachment shall be due and payable to COUNTY no later than the effective date of detachment. Should a credit be due CITY from COUNTY, a refund shall be paid to CITY no later than the effective date of detachment.
17. INDEMNIFICATION
DRAFT
4936-0829-6574 v1 Page 11 of 15
(A) Neither party will be liable to the other party for any damage, liability claim or cause of action for damage to, or destruction of, property or for injury to or death of persons arising solely from any act or omission of the other party’s officers, agents and employees.
(B) CITY will indemnify, hold harmless, and defend (upon the written request of COUNTY) COUNTY, its officers, employees, and agents from any and all loss, damage, liability claim or cause of action of every nature whatsoever for the physical damage to or destruction of property, including the property of COUNTY or physical injury to or death of any person, including COUNTY’S officers, employees or agents, which may arise out of any negligent act or omission of CITY, its officers, employees or agents. (C) COUNTY will indemnify, hold harmless and defend (upon the written request of CITY) CITY, its officers, employees, and agents from any and all loss, damage, liability, claim or cause of action of every nature whatsoever for physical injury to or death of any person, including CITY’S officers, employees and agents, which may arise out of any negligent act or omission of COUNTY, its officers, employees or agents. (D) The party against whom any claim arising from this Agreement is filed will give prompt notice of the filing of the claim to the other party.
18. INSURANCE
Both parties represent that they are self-insured for all exposure including bodily injury and property damage. Both parties agree to provide proof of self-insurance upon demand to include coverage above any self-insured retention.
19. WAIVER
No waiver of a breach of any provision of this Agreement will constitute a waiver of any other breach, or of such provision. Failure of CITY or COUNTY to enforce at any time, or from time-to-time, any provision of this Agreement will not be construed as a waiver thereof. The remedies herein reserved will be cumulative and additional to any other remedies in law or equity.
20. PARTIAL INVALIDITY
Should any part, term, portion, or provision of this Agreement be finally decided to be in conflict with any law of the United States of the State of California, or otherwise be unenforceable or ineffectual, the validity of the remaining parts, terms, portions, or provisions will be deemed severable and will not be affected thereby, provided such remaining portions or provisions can be construed in substance to constitute the Agreement which the parties intended to enter into in the first instance.
21. ENTIRE AGREEMENT
This Agreement contains the entire agreement of the parties relating to the rights herein granted and the obligations herein assumed. Any oral representation or modification DRAFT
4936-0829-6574 v1 Page 12 of 15
concerning this Agreement will be of no force or effect excepting a subsequent modification in writing, signed by both parties.
22. COUNTY RECORDS
At any time during normal business hours, upon the request of CITY, COUNTY will make available for examination all of its existing records with respect to matters covered by this Agreement for purposes of audit, examination, or to make copies of such records, exclusive of confidential personnel files.
23. COUNTERPARTS
This agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
24. NOTICES
All notices required or permitted to be given pursuant to this Agreement may be personally served on the other party by the party giving such notice or may be served by certified mail, return receipt requested, to the following addresses:
COUNTY: CITY:
County Fire Chief City Manager, City of CALIFORNIA CITY 5642 Victor Street 21000 Hacienda Boulevard
Bakersfield, CA 93308 California City, CA 93505
[SIGNATURES ON THE FOLLOWING PAGE]
DRAFT
4936-0829-6574 v1 Page 13 of 15
IN WITNESS WHEREOF, CITY and COUNTY have caused this Agreement to be executed by their authorized agents.
APPROVED AS TO FORM:
“CITY” “COUNTY”
By: _________________________ By: ___________________________ Mayor Leticia Perez, Chairman
City of California City Kern County Board of Supervisors By: _________________________ By: ___________________________ City Attorney Deputy County Counsel
City of California City Kern County
APPROVED AS TO CONTENT:
By: _________________________ By: ___________________________ City Manager Aaron Duncan, Fire Chief
City of California City Kern County
Attest:
By: _________________________ By: __________________________ City Clerk Julie Gragg, Clerk of the Board
City of California City County of Kern
DRAFT
4936-0829-6574 v1 Page 14 of 15
Exhibit A
Annual Fee
City
FY
2025/26
FY
2026/27
FY
2027/28
California City
Cost of Service $402,887 $1,643,781 $2,515,236
Employee Costs * - -
Facility and Equipment Credit $358,322 $1,393,473 $2,229,556 Net Cost $44,566* $250,308 $285,680
*Employee costs associated with section 13(C)(d) to be determined and billed to City separately during FY 2025-26.
DRAFT
4936-0829-6574 v1 Page 15 of 15
Exhibit B
Land, Building, Apparatus, Vehicles, and Equipment to be transferred to County.
DRAFT
NB 1
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and City Council
FROM: Christopher Lopez, City Manager
Shannon Hayes, Acting Director of Public Safety
SUBJECT: A Resolution of the City Council of The City of California City, California, Authorizing the City Manager to Enter into an Agreement with Nichols Consulting for a Fixed Fee for Three (3) Years Not to Exceed $8,000 for the Period Ending June 30, 2027 BACKGROUND/ DISCUSSION:
The City of California City has previously contracted with Nichols Consulting to prepare and submit claim forms to the State Controller’s Office (SCO) for reimbursement of costs incurred under SB 90 state-mandated programs, such as the Domestic Violence Arrests and Victim Assistance Program. Cities and counties that incur increased costs as a result of these mandates are eligible to submit claims for reimbursement.
Reimbursement requests are based on the City’s ongoing activities related to providing informational cards to domestic violence victims, as well as the total number of reported responses to qualifying incidents within the applicable fiscal year. Eligible costs include salaries and benefits associated with the number of hours worked by officers performing these duties. City staff provides all supporting documentation to Nichols Consulting for each fiscal year to substantiate the information included in the claims.
The cost-to-revenue comparison for the last several years is as follows:
• 2021: Expenses $2,400; Revenue $26,915
• 2022: Expenses $2,000; Revenue $18,388
• 2023: Expenses $2,200; Revenue $30,190 (estimated)
• 2024: Expenses $2,400; Revenue $33,130 (estimated)
These figures demonstrate a consistent net positive financial benefit to the City.
FISCAL IMPACT:
Revenues (TBD) for these services will be recorded in account 10-3687. The annual fees for services for fiscal years ending June 30, 2025 ($2,400), June 30, 2026 ($2,600), and June 30, 2027 ($3,000) total a fixed amount of $8,000, which will be budgeted under 10-4212-310.
NB 1
RECOMMENDATION:
Staff recommends that the City Council approve the contract and authorize the City Manager to enter into an agreement with Nichols Consulting for a three-year term, for a total fixed fee of $8,000.
ATTACHMENTS:
1. Contract for Professional Services with Nichols Consulting.
2. Resolution, 25-3189
NB 1
3-Year Fixed Fee - $8,000
Nichols Consulting
CONTRACT FOR PROFESSIONAL SERVICES
This Contract is made and entered into this of 2025, by and between the City of California City, a city under the laws of the State of California (hereinafter referred to as “City”) and Nichols Local Government Consulting, LLC (dba “Nichols Consulting”) a limited-liability company, (hereinafter referred to as “Consultant”).
RECITALS
A. City has the authority to seek reimbursement for certain costs from the State of California pursuant to California Government Code Section 17550 et seq.
B. City has the authority to contract for the preparation of said Claims through a designated individual or entity.
C. Consultant is qualified to provide the service of preparing said Claims in consideration for the fees, expenses, and costs stipulated in this Contract.
Therefore, the parties to this Contract agree as follows:
I. CONSULTANT’S RESPONSIBILITIES
A. Consultant shall review all eligible claiming opportunities and prepare all Claims whose State-imposed timely and late deadlines, for reimbursement, fall between the time of execution of this Contract and June 30, 2028. Consultant shall collect, document and process the information necessary for Consultant to file the claims on behalf of the City.
Separately, Consultant extends to City the option of extending this agreement to June 30, 2029 and separately, June 30, 2030.
B. Consultant will provide City with a copy of Claims and supporting documentation prepared pursuant to this Contract. The copy will be provided following the state imposed deadline for said Claims.
C. Consultant shall implement a Claims monitoring and documentation process in the NB 1
course of Consultant’s duties.
D. Consultant agrees not to exceed the amount of the fee proposal set forth in Appendix E. 3-Year Fixed Fee - $8,000
A to this Contract without prior written authorization of the City.
F. Consultant will make good faith effort to file Claims in accordance with existing laws, regulations and applicable written guidelines but does not warrant the reimbursable nature or likelihood of success of reimbursement of any particular Claim.
G. Consultant shall advise City of all official action which is necessary under applicable federal and state constitutional provisions, state statutes and regulations, and any other applicable provisions, in order that City may fulfill its responsibilities as set forth in Section II, paragraph C of this Contract for Services.
H.
II. CITY’S RESPONSIBILITIES
A. City will provide Consultant with all the documents, records and information necessary to prepare Claims in a timely manner.
B. City agrees to pay Consultant, a fee of $8,000 for services rendered. Consultant’s fee is due and payable in three separate installments. The dates of these installment payments and their respective amounts are: May 31, 2026 ($2,400), May 31, 2027 ($2,600) and May 31, 2028 ($3,000). Consultant’s fee is not-to-exceed $8,000.00, unless approved by City in writing. Additionally, Consultant is separately offering the City two (2) one-year options for a Fixed Fee of $3,300 each for FY 2028-29 (May 31, 2029) and FY 2029-30 (May 31, 2030) executed solely at the City’s discretion. The payment of Consultant fee is not dependent on the amount of Claims ultimately reimbursed by the State of California.
C. City agrees to take that official action which is necessary under applicable federal and state constitutional provisions, state statutes and regulations, and any other applicable provisions, to perform its obligations under this Contract in a timely manner.
III. MODIFICATIONS
This Contract may be modified only by a written amendment to this Contract, executed by both parties.
IV. TERMINATION OF CONTRACT
This Contract may be terminated by mutual written consent or by either party, provided that the terminating party gives ninety (90) days written notice to the other party, without NB 1
cause. Upon receipt of a Notification of Termination, Consultant shall promptly discontinue all services affected. Consultant shall provide the City with all work products completed up to the date of termination. In the event of termination, City shall reimburse 3-Year Fixed Fee - $8,000
Consultant for all direct service hours on work-in-process at $125.00 per hour. However, in no event shall City be obligated to pay more than the total amount of the Contract.
V. ATTORNEY’S FEES AND COSTS
In any litigation, arbitration or other proceeding by which one party either seeks to enforce its rights under this Contract (whether in contract, tort, or both) or seeks a declaration of any rights or obligations under this Contract, each party shall bear its own attorney fees, together with any costs and expenses to resolve the dispute and to enforce the final judgment.
VI. SEVERABILITY
If any term of this contract is held by a court of competent jurisdiction to be void or unenforceable, the remainder of this Contract shall remain in full force and effect and shall not be affected.
VII.NOTICES
All notices that are required to be given by one party to the other under this Contract shall be in writing and shall be deemed to have been given if delivered personally or enclosed in a properly addressed envelope postage prepaid and deposited with an overnight delivery service or with a United States Post Office for delivery by first class and certified mail addressed to the parties at the following addresses, unless such addresses are changed by notice, in writing, to the other party.
City of California City
Attn: Finance Manager
21000 Hacienda Boulevard
California City, CA 93505
Nichols Consulting
1857 44th Street
Sacramento, CA 95819
VIII.AUTHORITY
The individuals executing this Contract represent and warrant that they have the legal power and authority to this contract and to contractually bind their respective entities.
NB 1
3-Year Fixed Fee - $8,000
IX. GOVERNING LAW
The validity of this Contract and each of its terms and provisions, as well as the rights and duties of the parties under this Contract, shall be construed pursuant to and in accordance with the laws of the State of California.
X. ENTIRE AGREEMENT
This Contract, which includes the “Proposal for Contract for Professional Services” set forth as Appendix A, supersedes any and all other agreements, whether oral or in writing, between the parties with respect to the subject of this Contract. This Contract contains all of the covenants and agreements between the parties with respect to the subject of this Contract, and each party acknowledges that no representatives, inducements, promises, or agreements embodied in this Contract. No agreement, statement, or promise not contained in this Contract shall be valid or binding on the parties with respect to the subject of this Contract.
Executed at , California, on the day and year set forth above. , President
F. Andy Nichols
Nichols Consulting
1857 44th Street
Sacramento, CA 95819
, Title
Print Name
City of California City
NB 1
21000 Hacienda Boulevard
California City, CA 93505
NB 1
3-Year Fixed Fee - $8,000
APPENDIX A
PROPOSAL FOR CONTRACT FOR SERVICES
This proposal for the City of California City is to provide the services set forth under Paragraph I of the Contract for Professional Services relating to the preparation of Claims for reimbursement pursuant to California Government Code Section 17550 et seq.
Consultant’s fee shall be $8,000.00, for claims prepared on behalf of the City beginning with the time of execution of this Contract and ending June 30, 2028. Consultant’s fee is due and payable in three separate installments. The dates of these installment payments and their respective amounts are: May 31, 2026 ($2,400), May 31, 2027 ($2,600) and May 31, 2028 ($3,000). Consultant’s fee is not-to-exceed $8,000.00, unless approved by City in writing.
Additionally, Consultant is separately offering the City two (2) one-year options for a Fixed Fee of $3,300 each for FY 2028-29 (May 31, 2029) and FY 2029-30 (May 31, 2030) executed solely at the City’s discretion.
This Proposal is valid until December 19, 2025 unless extended in writing by Consultant.
December 3, 2025
, President
F. Andy Nichols
Nichols Consulting 1857
44th Street
Sacramento, CA 95819
NB 1
RESOLUTION NO. 25-3189
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIFORNIA CITY, CALIFORNIA, AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT WITH NICHOLS
CONSULTING FOR A FIXED FEE FOR THREE (3) YEARS NOT
TO EXCEED $8,000 FOR THE PERIOD ENDING JUNE 30, 2027
The City Council of the City of California City (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the City of California City authorizes the City Manager to enter into contracts on behalf of the City, including previous agreements with Nichols Consulting to seek, prepare, and submit claim forms to the State Controller’s Office (SCO) for reimbursement of costs incurred for SB 90 state-mandated programs, such as the Domestic Violence Arrests and Victim Assistance Program; and,
WHEREAS, the purpose of this contract is to submit reimbursement claims based on ongoing activities, including providing informational cards to victims of domestic violence, and documenting reported responses to related incidents during the fiscal year of the claim; and, WHEREAS, such reimbursement costs include salaries and benefits for the number of hours worked in a fiscal year by an officer; and
WHEREAS, the City provides records to Nichol’s Consulting for each fiscal year to support the information in the claims; and,
WHEREAS, the annual fees for the services rendered by Nichols Consulting for fiscal years ending June 30, 2025 ($2,400), June 30, 2026 ($2,600), and June 30, 2027 ($3,000) will be for a fixed fee not to exceed $8,000; and
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AS FOLLOWS:
SECTION 1: The above recitals are true and correct.
SECTION 2: The City Council authorizes the City Manager to execute an agreement with Nichols Consulting for a fixed fee not to exceed $8,000 for a three-year term, for the preparation and submission of claims to the State Controller’s Office (SCO) for SB 90-related costs.
SECTION 3: City Clerk shall certify to the passage and adoption of the Resolution PASSED, APPROVED, AND ADOPTED by the City Council of the City of California City, this 9th day of December 2025.
NB 1
__________________________
Marquette Hawkins
Mayor
ATTEST: APPROVED AS TO FORM:
___________________________ __________________________
Leanndrea Weible Victor M. Ponto,
Acting City Clerk City Attorney
[THIS SPACE INTENTIONALLY LEFT BLANK]
NB 1
CERTIFICATION
I, Leanndrea Weible, Acting City Clerk of the City of California City, California, hereby certify that the foregoing resolution was duly adopted at a meeting of the City Council of said City at its meeting held on the 9th of December 2025, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of California City, California, this 9th day of December 2025.
__________________________
Leanndrea Weible
Acting City Clerk
NB 2
COUNCIL AGENDA ITEM
December 9, 2025
TO: Honorable Mayor and Members of the City Council
SUBJECT: Letter of Intent- Echols Group
ATTACHMENTS:
1. Letter of Intent
Confidential 1 © Verdant Microgrid, LLC, All Rights Reserved Microgrid Letter of Intent
Robert Babcock, CEO
Verdant Microgrid, LLC
7272 Wisconsin Avenue
Suite 900
Bethesda, MD 20814
November 24, 2025
The Honorable Marquette Hawkins, Mayor
Mr. Christopher Lopez, City Manager
City of California City
21000 Hacienda Blvd
California City, CA 93505
Dear Mr. Hawkins and Mr. Lopez:
This Letter is to show the Intent of Verdant Microgrid, LLC (“Verdant”) and the City of California City (“Customer”) (together, the “Parties”) to pursue, analyze, negotiate, and agree on the terms and conditions by which Verdant shall design, develop, finance, construct, own and operate one or more microgrids on vacant land owned by the city or one of its subdivisions within the city boundaries of California City, CA, United States.
Verdant has obtained various information on the energy supply, use and growth of California City and discussed the goals that California City would like to achieve for its energy supply with the California City Development Association. Verdant has conveyed the economic and operational benefits of a microgrid located on one or more city-owned parcels within the boundaries of California City and has made multiple iterations of potential recommended configurations.
Verdant’s initial evaluations of the information available to it about Customer’s electric situation and further investigation into the preliminary design of one or more power generation facilities has yielded the following conclusions:
• Customer is an incorporated city in the state of California with a population of approximately 10,000 citizens and has taken the steps to create a municipal power authority to purchase energy and supply electricity to residents of California City; • The current power supply for the city is from Southern California Edison (SCE) and the electric service provided by SCE is unacceptable for the following reasons (among others):
o Power is expensive
o Power is unreliable
o Expansion of power supplies is uneconomical
• Customer desires a solution that achieves multiple goals:
o Improve sustainability – carbon reduction;
o Improve resiliency – improved power quality; and
o Reduce energy costs.
• Verdant’s research has indicated the following costs for energy (based on SCE’s TOU-8 tariff for service over 50 kV):
Confidential 2 © Verdant Microgrid, LLC, All Rights Reserved o A range of $.067 to $.12 per kWh - Electricity kWh charges with a weighted average of $.089 across all hours of the year;
o A range of $19.49/kW/Mo to $39.13/kW/Mo –Demand Charges • The city is expected to consume approximately 100,000,000 kWh per year currently with economic growth intended to double or triple this use – or expand it even more if a large consumer like a data center can be attracted to the city; This Letter of Intent outlines the broad process by which the Parties will agree to cooperate to finalize a transaction where Verdant builds, owns and operates one or more microgrids at locations within California City. Verdant’s proposal is to design, build, own and operate the microgrid and to sell the output from the systems to Customer under a long-term Energy Services Agreement on terms that reduce the city’s all-in energy costs. With the exception of the Exclusivity Period below, this Letter of Intent is non-binding to the Parties.
Exclusivity Period
By executing this Letter of Intent, Customer agrees to grant an exclusivity period of three hundred sixty (360) days from the date hereof to Verdant to analyze, investigate and prepare a microgrid project term sheet for consideration by Customer. Should the parties agree to proceed, such Term Sheet will contain further exclusivity periods to come to agreement on and to close a transaction.
Initial Proposed Transaction (subject to additional diligence and analysis) Location: A TBD parcel within the boundaries of California City, CA
Power Offtaker: The City of California City (or one of its agencies or subdivisions)
Project Proposer: Verdant Microgrid, LLC
Economic Goal: Clean, reliable, locally sourced energy supply at a rate less expensive than SCE rates
Technology: Solar and Energy Storage
Capacity: 145,000 kW Solar (~360,000,000 kWh/yr)
347,000 kWh of Energy Storage
Expected Electricity Cost Benefit: ~$4,100,000 per year (compared to SCE current rates)
Estimated Capital Cost (Verdant’s expense): $250,000,000 ESA Term: 20 years
Electricity ESA Rate: $.15 / kWh increasing at 2.5% per year ESA Demand Rate: $10.00 / kW /Month increasing at 2.5% per year Fuel Costs: None
Operations and Maintenance: Facility will be 100% operated and maintained by Verdant
Confidential 3 © Verdant Microgrid, LLC, All Rights Reserved Economic Analysis of the Project
Economic Projections Across Broader Portfolio
The above tariff rates are taken from SCE’s most recent Rate Book for the Large General Service category for Time Of Use rates for service provided at 50 kV and above. This is the equivalent of SCE’s best rate. By calculating the cost of what power provided at these rates would be to California City for 20 MW of load, we have calculated the minimum savings to citizens of California City would be approximately $4,100,000 per year (with the SCE rates historically increasing much faster than the proposed inflation in the ESA.
Resiliency and Environmental Analysis of the Project
The city resides in a state with a relatively low carbon intensity for its grid operations. California’s recently stated emissions were 261 kg/MWh of consumed electricity. The proposed microgrid is expected to generate over 305,000 MWh annually with 43% of that energy curtailed due to seasonality. Thus, the offset of carbon emissions is calculated on the used electricity, which is projected to equal 174,000 MWh. The result is that the proposed microgrid is projected to reduce the carbon emissions of California City by approximately 45,600 MT per year.
Agreement to Share Information with Verdant Engineering/Legal Teams Verdant will rely on its engineering design teams to assist in the finalization of the design and analysis of the benefits of the microgrid. Initially, this team will consist of:
• Engineering personnel from our Energy Storage providers (BESS suppliers) • Engineering and project design personnel from one or more Engineering Procurement and Construction contractors (EPC)
Subject to the non-disclosure agreement executed by the Parties, the Parties agree to share information about current and future power requirements for California City, the electrical infrastructure located within the city boundaries, and the contractual structure of a transaction.
Specifically, Customer agrees to provide to Verdant the following information in as timely a manner as commercially possible:
• Details regarding the operation of the municipal load serving entity, including but not limited to:
o Authority to engage in retail sales of electricity
o Current operations or future planned operations
Confidential 4 © Verdant Microgrid, LLC, All Rights Reserved o Existing electricity distribution assets
o Power load profiles
o Potential for load increases or shedding
o Potential outages
• Land availability and any survey and/or environmental data on specific parcels; • Site and system schematics, drawings, and plans as may be reasonably requested by Verdant;
• Financial and business information of Customer for purposes of a credit analysis, including any financial statements, and information on debt instruments such as mortgages, asset-backed-loans, bonds, etc.;
• Site and equipment access for Verdant and its employees, consultants, contractors, financiers and advisors; and
• Any other material and relevant information that Verdant may reasonably request.
Site Access Procedures
Verdant and its contractors will require site access to prepare and provide the analysis and final proposal to Customer. This Letter of Intent explicitly grants such access; provided, however, that Verdant must exercise reasonable commercial judgement to not unduly interfere with the ongoing operations of any Customer facility, must comply with Customer’s and Customer’s representative’s instructions at all times when conducting any site visit (including instruction about safety and security) and must provide reasonable notice for any site visits, keep any visits to the minimum number and length of time required to analyze the site, and use reasonable judgement to minimize the attendees of any site visit.
______________________________________
By affixing their signatures below, the Parties hereby agree to the terms of this Letter of Intent and to proceed with the development of the potential project referenced above. ______________________
By: Robert Babcock
CEO
Verdant Microgrid, LLC
______________________
By:
Title:
California City