California City City Council
May 12, 2026

CITY OF CALIFORNIA CITY
May 12, 2026
Marquette Hawkins
MAYOR
Jim Creighton

MAYOR PRO TEM
Della Clark
Ronald Smith

COUNCIL MEMBERS
Sean Grayson

CITY MANAGER
AGENDA

CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
REGULAR MEETING TUESDAY, May 12, 2026 @ 5:00 PM

COUNCIL CHAMBERS
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505 &

VIA ZOOM
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/87988480756
Meeting ID: 879 8848 0756
Passcode: 288834

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 Webinar 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 the City Clerk for a request to speak, and the City Clerk will unmute you.
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
May 12, 2026
The 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 4:00 PM

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—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2):

Two.

CS 2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Government Code Section 54956.9(d)(1) – Two cases
Linda Davis v. City of California City, Kern County Superior Court, Case No. BCV-25-100895 Boston, et al. v. City of California City, Case Bo. BCV-22-101398-BCB

REPORT OUT OF CLOSED SESSION

CITY COUNCIL CONVENES TO REGULAR MEETING
REGULAR MEETING 5:00 PM

CALL TO ORDER

PLEDGE OF ALLEGIANCE / INVOCATION
ROLL CALL –
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins

CITY OF CALIFORNIA CITY
May 12, 2026

DEPARTMENT REPORTS
Parks and Recreation
Housing
Cannabis
OHV
City Manager

CITY CLERK REPORTS/RECEIVED COMMUNICATIONS
J.M. Powers – May 6, 2026

CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS

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.

PRESENTATION
P 1. KernCOG presentation on Regional Transportation Plan (RTP) 4-year update P 2. 4th and 5th of July City Celebration Announcement
P 3. Volunteer Parks and Recreation Recognition
P 4. Proclamation to Declare May as Community Action Month

PUBLICHEARING
PH 1. Staff Report: Kenny Cooper, Finance Manager
Subject: A Public Hearing to Approve Resolution 26-3241 Amending/Approving the Engineer’s Report and Resolution 26-3242 Ordering the Levy and Collection of Assessments for the Aspen Mall Landscaping and Lighting District Fiscal Year 2026/2027
A. Open Public Hearing
B. Staff Report: Anu Doravari, Planning Director
C. Public Comment
D. Close Public Hearing
E. Discussion
F. Recommended Action: Staff recommends that the City Council

1. Conduct Public Hearing for Adoption of Resolution No. 26-3241 & 26-3242

2. Close the public hearing.

3. Adopt Resolution No. 26-3241 & 26-3242 Or;

4. Take other actions as desired

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.

CITY OF CALIFORNIA CITY
May 12, 2026
CC 1. Approve City Check Register dated 04/24/2026-05/07/2026 CC 2. Approve Minutes for 04/28/2026 Regular Meeting and 5/4/2026 Special Meeting CC 3. Staff Report: Joe Barragan, Public Works Director Subject: NOTICE OF COMPLETION – SB1 Kenniston Street Rehabilitation Project from CalCity Blvd. to Walpole Ave.

Recommendation: It is recommended that the City Council Motion to approve Resolution 26- 3243 authorizing acceptance of completed work by Griffith Company for SB1 Kenniston St Rehabilitation Project from Cal-City Blvd to Walpole Ave., directing the City Clerk to file Notice of Completion with Kern County Recorder, and authorize payment of retention funds CC 4. Staff Report: Sean Grayson, City Manager
Subject: 1) Approval of a Contract with Technic Business Solutions for the Cybersecurity Framework Request for Proposals in an Amount Not-To-Exceed $250,000; and 2) Authorize the City Manager to Execute the Contract
Recommendation: It is recommended that the City Council approve a contract with Technic Business Solutions for the Cybersecurity Framework RFP and authorize the City Manager to execute a contract CC 5. Staff Report: Sean Grayson, City Manager
Subject: Contracts by Department: Housing, Human Resources, Public Works, and NonDepartmental Recommendation: It is recommended that the City Council receive and file the information. The information will be maintained by the City Clerk in a virtual and physical grants and contracts binder (multiple binders).

CONTINUED BUSINESS
CB 1. Staff Report: Sean Grayson, Interim City Manager
Subject: Resolution 2026-3244: A Resolution of the City Council of the City of California City Approving the Annual Rate Adjustment Request from WM for the 2026-2027 Fiscal Year Recommendation: Staff recommends that the City Council adopt the resolution 2026-3244 approving the rate adjustments
CB 2. Staff Report: Sean Grayson, Interim City Manager
Subject: 1) Approval of a Contract with Willdan Financial Services for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan in an Amount Not-ToExceed $40,545; and 2) Authorize the City Manager to Execute the Contract Recommendation: It is recommended that the City Council approve a contract with Willdan Financial Services for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan and authorize the City Manager to execute a contract

NEW BUSINESS
NB 1. Staff Report: Mayor Pro Tempore Jim Crieghton & Inge Elmes OHV Manager ` Subject: Receive a Presentation on and Provide any Direction on the Topic of the Needles OHV Permit for City Roads
Recommendation: It is recommended that the City Council receive the report and provide any direction needed

CITY OF CALIFORNIA CITY
May 12, 2026
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- May 8, 2026
I, John Paul Maier, Deputy City Manager / 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-PARK

COUNCIL AGENDA ITEM
May 12, 2026
TO: Honorable Mayor and City Council
FROM: Leanndrea Weible, Park Coordinator
SUBJECT: Park and Recreation Monthly Department Report
Operations
• The Strata Center is open to the public Tuesday through Friday. • Can’t Stop Won’t Stop Youth in Action utilizes the Strata Center for basketball practice on Mondays, Wednesdays, and Fridays from 5:00 PM to 8:00 PM through June 27, 2026. • From April 28, 2026, through May 28, 2026, the Strata Center is open from 10:00 AM to 12:00 PM for indoor walking. This program may be extended based on participation levels. • Zumba classes are held at the Art Center every Wednesday from 5:00 PM to 6:00 PM. The classes are open to all interested participants.

Current Projects and Updates
Staff are on track for the anticipated pool opening date of May 29, 2026. Lifeguard offer letters have been distributed, and supply inventory has been completed. Over the coming weeks, staff will focus on:
• Cleaning and filling the pool
• Cleaning and sanitizing the pool house
Anticipated Pool Schedule:

Tuesday, Wednesday, Friday:10:00 AM – 11:30 AM — Water Aerobics Tuesday through Saturday: 12:00 PM – 5:00 PM — Open Swim The daily admission rate, per the Master Fee Schedule, is $2.50 per person.

Upcoming Events
The Park Commission continues to host workshops to gather community input for the development of a 5-Year Parks and Recreation Plan. Community participation is strongly encouraged. Next Workshop:

Date: May 20, 2026
Time: 4:30 PM – 5:30 PM
Location: Central Park
Format: Walking Workshop to identify areas for improvements, equipment needs, and beautification opportunities throughout the park.

DR-PARK
Recent Event Summary
This past weekend’s community event that was led by the Chambers of Commerce after partnering with the California City Parks and Recreation Department in 2024, was highly successful and well attended. Special recognition is extended to All of the members of the Chambers of Commerce for organizing the Parade and Joe Barragan, Marion, his team, and the Police Department for their outstanding coordination of street closures and prompt reopening, minimizing traffic disruption. • Parade Line-up began at 8:00 AM; parade started at 9:00 AM • Route: City Hall to Central Park
• Approximately 20 entries participated, including Councilman Smith and Mayor Hawkins Attendance was significantly higher than in previous years, with full parking areas and strong spectator presence along the route
Parade Award Winners:

Youth Category: California City Middle School Cheerleaders Best Business: The Baking Spot
Most Creative: The Breakfast Burritos
Church Service
The church in the park service held in the Strata Center following the parade saw strong participation and was presented in both English and Spanish for all attendees to enjoy the message.

Event Activities
The event offered live entertainment, a variety of food and refreshments as well as a wide range of activities for attendees, which included the following, to name a few:
• Dunk Tank
• Laser Tag
• Sumo-style inflatable wrestling
• Cake Walk
• Face Painting
• Ring Toss
• Karaoke
• Bounce Houses
• Country Line Dancing
• Animal exhibits, including multiple tortoises (one giant tortoise) , horses and a snake interaction experience
Support
Volunteers played a critical role in the success of the event, and the City of California City along with the Chambers of Commerce would like to recognize these volunteers for all their time and efforts in assisting with the following to make this event a success. • Event setup and cleanup
• Trash collection
• Transportation assistance

DR-PARK
• Vendor support
• Monitoring activity stations
• Providing event and vendor information to attendees
Conclusion
Overall, operations are running smoothly, preparations for the pool season are on schedule, and community engagement remains strong. The recent event demonstrated increased participation and successful coordination across departments and volunteers.

DR-HOUSING

COUNCIL AGENDA ITEM
May 12, 2026
TO: Honorable Mayor and City Council
FROM: Nicole Jarmon- Housing Manager
SUBJECT: HOUSING MONTHLY DEPARTMENT REPORT

BACKGROUND/ DISCUSSION
Desert Jade
Currently we have 90 apartments that are filled.

The waitlist has been updated, and we currently have 70 applicants.

Three units are undergoing rehab, applications are being reviewed Desert Jade has three units red tag due to the fire and will begin the RFP process for a public bid.

April 28th, we had our monthly food giveaway.

Legends
Currently has 6 apartments and 6 houses filled.

Waitlist is combined with Desert Jade

DR-CANNABIS
1 COUNCIL AGENDA ITEM
May 12, 2026
TO: Honorable Mayor and City Council
FROM: Carina Robinson, Cannabis Program Manager and Tax Administrator SUBJECT: CANNABIS MONTHLY DEPARTMENT REPORT

MONTHLY ACTIVITY

1. Spoke to several operators with zero tax assessment reports

2. Received and spoke with most Cannabis operators regarding their Intent to Renew letters for June 30th expiring permits. This process satisfies requirements found in CCMC Sec. 5-

6.504(a) for FY 26-27

3. Waiting for three letters of intent to renew, the email and phone numbers are not working, and/or the system did not print permit number due to required administrative updates

4. One Intent to Renew was not issued due to operator claiming property has greenhouse operations. Waiting for clarification. Greenhouse TCOs expired 4/15/2024

5. Onsite audits and inspections start 5/11/2026 to ensure continued permit compliance for renewals, canopy space/light use, and tax assessments

6. Will create and send Cannabis Permit Renewal invoices by 5/31/2026

7. Anonymous complaints received through City Manager for cannabis smells from certain properties were addressed, logged and noted. Reviewing odor control equipment in facilities, reviewing SPR’s, and speaking with owners about equipment use per manufacturing specification, maintenance, SOPs, and due diligence to mitigate odor per code Sec 5-6.906(h) and ensuring compliance with Sec. 9-2.2903 distance requirements

8. After onsite inspections and multiple phone calls with 21001 Maverick: identified normal business operations and equipment is operational industry norms per codes Sec 5-6.906(h) and Sec. 9-2.2903

9. New operator (Management Services Agreement (MSA) /Joint Venture) coming online to take over facilities at 19577 Neuralia. Met with new operation manager. Shared historical documents regarding code enforcement, inspections, permit fees, and industry standards/requirements. CPM was advised about the timeframe it will take to come into compliance. New Operations Manager and CPM understand it will take time and significant expenditures to get into compliance with all violations from ownership

10. Contacted City attorneys for practical guidance and best business practices regarding odor control code violations and suspension processes. Asked CM to share email from Brandon Sanchez regarding practices and guidance with Council members for Sec 5-6.906(h)

DR-CANNABIS
2 11. Reviewing Prop 64 Local Evaluation Plan (LEP) and Progress Tracking spreadsheet.

Creating Q3 progress report for identified items satisfying the grant requirements but not reported in the last three years. Will speak with Chris Borden week of May 11, 2026.

Billing due 5/15/2026

12. Spoke with DCC to meet with local inspectors and auditorsto create a professional working relationship regarding Cal City Operators

13. DCC legislation changes now allow for Local Municipality and authorities to access METRC (track and trace software) for local city permitted operators. Direct access to METRC assists with onsite audits and compliance with local ordinances. This is a huge step forward in California for the industry enforcement agencies. Other States already have this regulation adopted

14. Access was granted to CPM for Comcate software for inspection, citations, reports, and violations created in PD

15. Met on 5/7/2026 with Code Enforcement/Taskforce for a bi-weekly meeting and updates regarding code enforcement practices per City Code, Attorney email, complaints, citations, inspections, payments, and sharing information between departments – this was a very productive Taskforce meeting
a. Reviewed Taskforce requirements for Q3 grant progress report b. Equipment requests for Code Enforcement:
i. Nasal Detector
ii. Drone for illegal operations

1. Requires training for software and certifications

2. PD body camera software can be used for downloading of drone footage

3. Reports will be uploaded and saved in Comcate software at PD

4. PD – Officers Chambers and Duque require training
c. Human trafficking and hazmat training required for Code Enforcement Taskforce due to staffing changes
d. Code enforcement and CPM understandings are the same as attorney statement for Sec 5-6-.906(h)
e. Email and USPS Letter mailed 4/28/2026 to middle and high schools for classroom education sessions per grant for next school year, requested introduction meetings to discuss calendaring the in-classroom trainings
f. Spoke about reward incentives and giveaways for students, parents, and the community for attending classes and answering questions correctly after trainings g. Code Enforcement will provide number of inspections and citations starting in 2023 to update grant correctly
h. See code enforcement report for written citations
i. Taskforce is beginning to work cohesively and professionally to accomplish roles and responsibilities

ONGOING ACTIVITY

1. Follow-ups with complaints from identified and anonymous reporters regarding operators a. Taskforce has difficulties following up with anonymous complaints in a professional manner due to missing information normally reported to PD to initiate files for inspections, investigations, and follow-ups

DR-CANNABIS
3 2. Provide witness support for department cash drawer drop at end of work, when required due to low staff availability

3. Provide witness support for staff disciplinary actions when required due to low staff availability

4. Reviewing “Application Procedure to Operate A Cannabis Business in California City” and “Cannabis Business Permit Application Form”. Ensuring information is up to date with current Codes, Fee Schedule, and Resolutions.
a. Waiting for new resolutions to be shared, not updated on website yet to ensure accuracy

5. Updating electronic files for each operator for all correspondences. Documents are time and date stamped upon receipt, then scanned/uploaded to the ‘P’ Drive

6. Continuing to create internal cannabis checklists for onsite inspections per the CCMCs and DCC resources

7. Cannabis spreadsheet updated continuously with accurate information for accounting department

8. Reviewing facility files for accurate cannabis tax assessment reporting

9. Attending Cannabis Advisory Committee meetings (virtual attendance). Public comments are submitted via email and verbally as required

10. Attending Department of Cannabis Control meetings (virtual attendance). Public comments are submitted via email and verbally as required DR-OHV

COUNCIL AGENDA ITEM
May 12, 2026
TO: Honorable Mayor and City Council
FROM: Inge Elmes, OHV Manager
SUBJECT: OHV MONTHLY DEPARTMENT REPORT
Events
The OHV season is slowing down as the warm temperature increases. After the Memorial Day holiday weekend, the season will ramp up again in October.

Operations
The Fiscal Year 26/27 OHV Permit Program begins on July 1, 2026. New permits, applications and RV Passes will be available for purchase on July 1, 2026, at Borax Bill Park and participating vendor locations.

Manager Updates
G26 OHMVR Division Grant Program public review and comment period closed on May 4, 2026, with final applications due by June 1, 2026, at 5pm.

Finance Report
For the month of April, OHV sales totaled $4,928.00. 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

DR - CITY MANAGER
4898-7406-7085 v1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: City Manager’s Report
April 28, 2026 City Council Meeting AB1234, Questions and Comments Follow-Up:

At the April 28, 2026, City Council meeting, there were questions and direction provided by the City Council. Below, please find the answers and responses to be shared with the City Council and the community
The following is an update on information, questions, or requests that came from agendized items:
• CC1 Check Register, CC3 CSO Job Description, CB2 Water Rate Study Award, CB3 Well 15A Rehabilitation Project, and NB1 City Engineer's Proposed SDI projects were pulled from the agenda and directed to return on a special meeting to be scheduled. The Finance Department Report is directed to be included in that special meeting.
o The special meeting occurred on Monday May 4, 2026.
• Direction was provided to determine the value of the fire station parcel, bring all relevant information to the City Council for direction and to subsequently schedule a meeting with the City Manager and SDI Committee.
o Staff has evaluated the value of the fire station property and meetings with the SDI Committee members have been scheduled.
• Will Dial-A-Ride be available for the Tortoise Day Event? o This question was answered in the meeting, due to a shortage of drivers it was available.
• Question about the losses and gains within the SDI fund for the Treasurer and whether we are actively investing the fund.
o Staff is working to create a presentation to demonstrate the differences between the two reports.

DR - CITY MANAGER
4898-7406-7085 v1
• Need to schedule a meeting with the SDI Committee and the City Manager regarding a proposal for the value of the fire station parcel and potential repayment value in consideration of the SDI loan
o Staff has evaluated the value of the fire station property and meetings with the SDI Committee members have been scheduled
• Request that the City Clerk make multiple binders for grants and contracts for all City departments.
o The City Clerk will proceed with the request.

The following is an update on information, questions, or requests that came from AB1234 reports:

Councilmember Clark
• Make it a priority for the City Council to receive the remainder of the contracts for the City.
o This is intended to be prioritized over the next several meetings. • Recognition of Inspiration Walk and those that dedicate efforts to beautify that space.

Request that the City establish a process for the placement of benches with memorial plaques there.
o There is a bench in the general area with a memorial plaque. Staff will contact the Desert Rose Garden Club and REACH for input and bring the item to the Parks and Recreation Commission for a recommendation to the City Council. • Special thanks to Bridget Arnold, Ms. Arnold's husband, Councilmember Smith, and Parks Coordinator Leann Weible for their efforts related to the Women's Empowerment Brunch on Saturday April 25.
o No staff response.

Councilmember Smith
• Congratulations to City First Lady Hawkins and Councilmember Clark on the success of the Women's Empowerment Brunch.
o No staff response.
• Request for update on City Hall lighting needs.
o All can lights around the perimeter of the building have been replaced and are functioning. The primary light in the public parking lot is functioning. Two additional lights have been ordered for the public parking area. • Request to create new vicious dog review board.
o This will be addressed by the Police Department in July with anticipated animal control staffing returning to normal.
• Request a report on all private wells, are their meters read monthly, who reads them, and are the meters functioning correctly.
o Staff will work on this request.

DR - CITY MANAGER
4898-7406-7085 v1
• Review of several sections of the municipal code with regard to cannabis including tax administrator responsibility, odor control, inspections and enforcement, and the issuance of violations.
o No staff response.
• Request that a moratorium on all new cannabis permits be brought to the City Council for consideration.
o Staff is working on this request and anticipates options for the Council's consideration on the May 26, 2026 City Council agenda.

Mayor Pro Tem Creighton
• With the City's animal control officer out for a period of time, can Kern County Animal Control assist to fill the gap?
o The Acting Public Safety Director is working on this and other options.

Mayor Hawkins
• Trash and tree line issues in the area of Poppy and 81st/82nd streets. o Staff will work on this request.
• Look into a citizens volunteer road repair crew.
o Staff will work on this request.
• Saturday May 30 12-2pm at the Strata Center recognition of all 8th graders and 5th graders.
o The facility is reserved for this purpose.
• Where is the City with the Airport Ad Hoc?
o The City Council appointed the Mayor and Mayor Pro Tem to the Airport Ad Hoc committee. Staff will work with the committee to schedule convening and the authoring of a letter to request engagement with the board of the East Kern Airport District (Mojave Air and Space Port).
• Request for the Public Works yard fencing project to come to the Council with options.
o Staff will work on this request.
• Request for security cameras at the public works yard. o There are security cameras at the public works yard.
• Home Depot local assessment finding that the city needs more roof tops, housing, and population to be considered for one of their stores.
o No staff response.
• Reinforce Councilmember Clark's request for memorial benches around inspiration walk.
o No staff response.

DR - CITY MANAGER
4898-7406-7085 v1
• Thank you to all the non-profits and community members that participated in the citywide clean-up last weekend.
o No staff response.
• Thank you to Congresswoman Maxine Waters for attending the Women's Empowerment Brunch.
o No staff response.

May 4, 2026 Special City Council Meeting Questions and Comments Follow-Up:

At the May 4, 2026, City Council meeting, there were questions and direction provided by the City Council. Below, please find the answers and responses to be shared with the City Council and the community
The following is an update on information, questions, or requests that came from agendized items:
• Has the SDI Committee lawyer been paid?
o The check was issued the week of May 4, 2026.
• Could Willdan do a presentation on the water / wastewater study to the community. o Staff will ask them to have a presentation to the City Council on what their process and action will be and announce a listening session where the public could provide their input on the topic.
• Need to comply with the Municipal Code in relation to the SDI Committee. o The process of compliance was outlined in a previous City Council presentation.

The Treasurer and staff have worked together and anticipate beginning the Quarterly SDI Fund reports again next month.
• Direction to the City Manager to meet with the SDI committee or the individual members on the topic of the value of the fire station parcel. o The direction has been taken. One meeting with a member occurred on May 8 and a meeting wit the other member is scheduled for May 11, 2026.

May 8, 2026
TO: Interested Persons
FROM: Jay Schlosser, Executive Director
RE: Availability of Draft 2026 Regional Transportation Plan (2026 RTP)/Sustainable Communities Strategy (SCS), Draft 2027 Federal Transportation Improvement Program (2027 FTIP), Corresponding Draft Conformity Analysis and Draft Environmental Impact Report (EIR) for Public Review
The documents noted above are being released for public review and comment. • The Draft 2026 RTP/SCS is a long-term coordinated transportation/land use strategy to meet Kern County’s transportation needs out to the year 2049. 55-day public review from May 8 to July 2. Please follow this link here: http://www.kerncog.org/category/docs/rtp/ • The Draft EIR document provides an analysis of potential environmental impacts related to the implementation of the 2026 RTP/SCS as required by the California Environmental Quality Act. 45-day public review from May 18 to July 2. Please follow this link here:
http://www.kerncog.org/category/docs/rtp/
• The Draft 2027 FTIP is a listing of capital improvement and operational expenditures using federal and state monies for transportation projects in Kern County during the next four years. 30-day public review from June 1 to July 2. Please follow this link here:
http://www.kerncog.org/category/docs/ftip/
• The Draft Conformity Analysis contains the documentation to support a finding that the 2026 RTP/SCS and 2027 FTIP meet the air quality conformity requirements for ozone and particulate matter. 30-day public review from June 1 to July 2. Please follow this link here:
http://www.kerncog.org/conformity/
Comments are welcomed at the public hearings 6:00 P.M. June 1, 2026 (Tehachapi) and 6:30 P.M. June 18, 2026 (Bakersfield); comments are due in writing by 5:00 P.M. July 2, 2026. All written comments should be submitted to Kern Council of Governments (Kern COG), 1401 19th Street, Suite 300, Bakersfield, CA 93301. The Kern COG Board of Directors will consider the adoption of the 2026 RTP/SCS, EIR, 2027 FTIP, and Conformity Analysis 6:30 P.M. August 20, 2026.

If you have any questions, please contact the following staff:

Ben Raymond, 661/635-2911 or [email protected], for the 2026 RTP/SCS and EIR; Ceasar Valle, 661/635-2917 or [email protected], for the 2027 FTIP; Vincent Liu, 661/635-2913 or [email protected], for the Conformity Analysis Attachments: Draft 2026 RTP Executive Summary and Sub Area Project Listing 1401 19th Street, Suite 300, Bakersfield, California 93301 (661) 635-2900 Facsimile (661) 324-8215 TTY (661) 832-7433 www.kerncog.org

Amtrak, Bakersfield Station Native American Petroglyph Monument Median Art, Ridgecrest Bike Rodeo, Bike Bakersfield
Pedestrian Overpass, McFarland
DRAFT – May 2026
Regional Transportation Plan
and Sustainable Communities Strategy
2025 Outsiders Kindergarten Transportation Parade – Bakersfield CA Kern Council of Governments ES-1
2026 Regional Transportation Plan

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

ABSTRACT
This Regional Transportation Plan (RTP)
establishes a comprehensive, multimodal
vision for a safe, equitable, and sustainable
transportation system serving the Kern,
one-county region over a 20-plus year
planning horizon. Prepared in accordance
with the most recent guidelines adopted by
the California Transportation Commission,
the RTP identifies current and future
transportation needs, system deficiencies,
and constraints while advancing strategies
to improve mobility for people and goods.

The plan integrates land use, environmental
stewardship, and transportation
investment decisions to support regional
and statewide goals, including economic
vitality, public health, system resilience,
and climate change mitigation. This
comprehensive document incorporates
required sections on Sustainable
Communities Strategy (SCS), Congestion
Management Program (CMP), growth
forecasts, policies, financing, performance
measures, public outreach and numerous
other requirements. As a long-range policy
document, the RTP communicates a
grassroots vision providing a foundation for
programming and funding decisions.

Consistent with state and federal
requirements, the RTP presents a
coordinated and balanced approach to
transportation planning across all modes,
including highways, transit, rail, aviation,
goods movement, bicycle, and pedestrian
systems. The plan is both action-oriented
and fiscally informed, addressing near-term
(0–5 year) and long-term (15–20+ year)
implementation horizons while maintaining
internal consistency between policy
priorities and financial constraints. Core
elements of the RTP include identification
of regional transportation issues,
quantification of needs, and development
of policies and strategies that guide
decision-making and investment. These
elements are designed to ensure a
continuous, cooperative, and
comprehensive planning process that
aligns regional priorities with statewide
objectives and supports delivery of
implementable transportation projects.

The RTP also reflects an inclusive and
performance-based planning framework
that incorporates stakeholder engagement,
environmental considerations, and
evolving mobility trends. Emphasis is
placed on enhancing system safety,
improving accessibility for disadvantaged
communities, reducing greenhouse gas
emissions, and increasing transportation
system efficiency and reliability. Through
collaboration with local jurisdictions, state
and federal agencies, tribal governments,
and direct outreach to the public which has
garnered input from over 10,500 residents,
the RTP advances a grassroots, shared
vision for a resilient and integrated
transportation network. This approach
ensures that transportation investments
are responsive to regional needs while
contributing to broader state and federal
policy goals and regulatory requirements.

Kern Council of Governments ES-2
2026 Regional Transportation Plan

EXECUTIVE SUMMARY

INTRODUCTION
Kern COG was established in 1970 with a
joint powers agreement (JPA) between the
eleven cities and the county of Kern,
creating a governing body made up of
elected representatives from each
municipality and two of the County
Supervisors. It is a federally designated
Metropolitan Planning Organization (MPO)
and a state designated Regional
Transportation Planning Agency (RTPA).

The JPA and these designations formally
establish Kern COG’s role in transportation
planning. Preparing the Regional
Transportation Plan (RTP) is one of Kern
COG’s primary federal and state roles.

The RTP is a 24-year blueprint that
establishes a set of regional transportation
goals, policies, and actions intended to
guide development of the planned
multimodal transportation systems in Kern.

It has been developed through a federally
required continuous, comprehensive, and
cooperative planning process, and provides
effective coordination between local,
regional, state and federal agencies on a 4-
year update cycle.

Major Issues - This continuous plan
development process greatly advances the
goals from prior cycles. For example,
adopted concurrently with the RTP is the
federal air quality conformity analysis
demonstrating attainment of federal Clean
Air Act Amendments of 1990. The Kern
region’s air monitoring system has
demonstrated an 80% improvement in NOx
emissions since 1980, advancing federal
conformity goals. NOx emissions are
precursor gases in the formation of Ozone
and Particulate Matter, health-based
criteria pollutants.

In addition, the Kern region has
outperformed the 2020 state greenhouse
gas (GHG) target required by Senate Bill
The Kern region’s air monitoring system
has demonstrated an 80%
improvement in NOx emissions since
1980... In addition, the Kern region has
outperformed the 2020 state
greenhouse gas (GHG) target, and this
plan shows we are on track to achieve
the 2035 GHG target... for passenger
vehicles and light-duty trucks
Figure ES-1: 1st in U.S. All Electric Off-Grid Solar Truck Stop on SR 65 in Bakersfield, 50 Spaces – World’s Largest Off-Grid EV Solar Charging Facility with 168 Spaces on SR 46 near Lost Hills Kern Council of Governments ES-3
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
(SB) 375, and this plan shows we are on
track to achieve the 2035 GHG target set by
theCalifornia Air Resources Board (ARB) for
passenger vehicles/light-duty trucks. The
region’s targets were set at 9 percent per
capita reduction by 2020, and the 15
percent per capita by 2035 as compared to
2005. These targets are discussed in the
Sustainable Community Strategy (SCS)
found in Chapter 4 of this Plan.

Continued progress toward the state target
and federal air conformity budgets will not
be easy. For both conformity and the SCS,
the simple reductions have been achieved
and the region needs to fully implement the
remaining strategies and measures
identified in this plan such as zero emission
charging infrastructure (See Figure ES-1) if
these air emission goals are to be met.

The SB 375 SCS law also provides for closer
integration of the RTP/SCS with the Regional
Housing Needs Allocation (RHNA) plan.

Developed on an 8-year cycle, RHNA goals
for greater housing choices reflect lowincome housing need while supporting directed transit planning and investment.

Kern COG closely coordinated the RHNA
and RTP/SCS development process using
the same oversight committee for both.

Local jurisdictions use the RHNA goal to
identify locations to provide sufficient
housing for all economic segments of the
population and ensure that the state’s
housing goals are met. These goals also
include efforts to provide more
compact/affordable housing choices that
support RTP/SCS investment in transit (See
Figure ES-2).

In addition to coordination with air quality
and housing goals, Kern COG addresses
environmental issues in a Program
Environmental Impact Report (Program
EIR), prepared pursuant to the California
Environmental Quality Act (CEQA), for the
RTP. Individual transportation projects are
preliminarily identified in the RTP; however,
the Program EIR analyzes potential
environmental impacts from a regional
perspective, providing opportunities for
streamlining the analysis required in
project specific environmental documents.
…goals for greater housing choices
reflect low-income housing need while
supporting directed transit planning
and investment
Figure ES-2: Central Bakersfield Core Area Incentives Have Resulted in 1,300 Units in 10 years Supporting Transit Investment Along Planned Bus Rapid transit/Future Light Rail Corridors Kern Council of Governments ES-4
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
PUBLIC PARTICIPATION: Listening to the
Citizens and Stakeholders
Our region’s continuous public
participation process encourages
participation at every stage of the planning
process, and all meetings are actively
promoted and open to the public.

Community engagement and outreach are
fundamental to the development of this
RTP/SCS. By nature, this plan represents
the region’s mutual vision for its future and
was developed using a grassroots, bottomup approach, garnering input from over 10,500 residents at over 50 events, public
meetings and surveys (online/phone/text)
with Spanish translation, across the region
over the past 4 years. The community
engagement process gathered residents’
input on their priorities for the region’s longterm future, while balancing survey responses with more informed, yet perhaps
less representative, responses at public
events. The outreach featured four
statically valid 1,200-person phone/text
surveys with oversampling in disadvantaged communities. The outreach process extended from January 2023
through June 2026. The program provided
numerous opportunities for community
members, and local stakeholders, and
local agencies to participate, including
public workshops, community events,
interactive and educational booths at
festivals and fairs, online via the project
website (www.kerncog.org/2026-rtp),
statistically valid phone/text surveys, and
presentations to various community groups
(See Figure ES-3).

What we heard was that most residents
want to maintain, fix and finish what we
have. A discussion of Kern COG’s extensive
public participation activities is found in
Chapter 4 of the RTP, and a Summary of
Findings is documented in Appendix C of
the RTP.

By nature, this plan represents the
region’s mutual vision for its future and
was developed using grassroots, bottom
-up approach, garnering input from over
10,500 residents at over 50 events,
public meetings and surveys (online/
phone/text) with Spanish translation,
across the region over the past 4 years
Figure ES-3: Over 10,500 Residents Participated in Over 50 Public Outreach Events and Surveys, Such as Events at an Arvin Church, Taft Festival and Wasco Police Activities League Kern Council of Governments ES-5
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
OUR VISION: Maintain, Fix and Finish What
We Have
In response to the extensive grassroots
public input, the Kern COG RTP process has
placed an emphasis on achieving air
emission, safety, and economic goals while
maintaining, fixing and finishing our
transportation system. The intent of the
SCS chapter 4 is to achieve the state’s
emission reduction targets for automobiles
and light trucks. The SCS will also provide
opportunities for a stronger economy,
healthier environment, and safer quality of
life for all of Kern’s diverse communities.

This RTP/SCS seeks to: improve economic
vitality, air quality, community health,
mobility and safety, while promoting the
conservation of natural resources and
undeveloped land, regional access to
community services, increase energy
independence, and increase opportunities
to help shape our community’s future.

Kern County is unlike any other region in
California. Kern’s large size and diverse
valley, desert and mountain environs are
dominated by agriculture, oil production,
renewable energy, aerospace, military,
recreation, transportation linkages and
other activities that warrant unique and
different approaches to address RTP/SCS
goals. These economic pursuits are the
basis for dispersed rural centers and
strategic locations for developments within
the county that are unlike other areas of the
state. Accordingly, unique strategies are
needed to support Kern’s equity, economic,
and environmental transportation goals.

This uniqueness is reflected in the General
Plans and programs of Kern County’s local
governments and the RTP/SCS.

This RTP/SCS supports an improved quality
of life for our residents by providing more
choices for where they will live, work, and
play, and how they will move around. The
safe, secure, and efficient transportation
systems will provide improved access to
opportunities, such as education, jobs and
healthcare. Promoting bike and ped safety
is one of many strategies being employed to
achieve our vision (See Figures ES-4 & -5).

The safe, secure, and efficient
transportation systems will provide
improved access to opportunities, such
as education, jobs and healthcare.

Figure ES-4: Active Transportation Program - Portable Mock City Bike Safety Training Kit Kern Council of Governments ES-6
2026 Regional Transportation Plan

EXECUTIVE SUMMARY

CHALLENGES/SOLUTIONS
Solutions for the Economy and Air
Quality - Kern County continues to suffer
from unemployment rates that are nearly
double State average. In 2020, Kern County
sank to the 2nd worst poverty rate after tiny
Del Norte County at the northwest corner of
the state, while the rest of the state has
been recovering from the great recession
and pandemic, state policies to combat
climate change have slowed Kern’s
recovery. Those polices have curtailed
groundwater pumping for agriculture, and
new investment in oil production, two of
Kern’s primary economic sectors.

The Federal Highway Administration
estimates that every $1 billion spent on
roadway infrastructure creates 13,000 job
years while transit creates 40,000 job years
of employment. This value is generated by
direct construction, indirect construction
suppliers and induced jobs in retail,
services and other sectors that benefit from
more efficient goods movement
(https://www.fhwa.dot.gov/policy/otps/pubs/i
mpacts/). The induced jobs make up about
1/3rd of the total jobs. The plan’s $14 billion
(see Chapter 5, Table 5-1), 24-year
investment plan is projected to add 64,740
5-year job positions, increasing Kern’s
economic base, adding capacity to reinvest in an ever more efficient/cleaner transportation system, triggering an upward
economic spiral for future generations.

Since the 1990s, the Kern region has
achieved consistent improvements in the
number of days exceeding federal
standards for ozone and particulate matter,
generally defined as “fine dust”. In 2012,
Kern demonstrated attainment of the 1-
hour ozone standard and has made
significant progress on the 8-hour ozone
and PM2.5 standards. Advancing emission
reduction strategies helps our region to
make significant progress toward both
federal and state air emission goals.

Strategies such as improving transit, bike,
walk, and housing options. For example,
bike and ped projects are fully funded (see
Figure ES-4 & -5).
…every $1 billion spent on roadway
infrastructure creates 13,000 job years
Figure ES-5: 90% of Project Mileage in 30-Year Bike & Pedestrian Complete Streets Plan Delivered in Just 15 Years
Kern Council of Governments ES-7
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
Financial Challenges - Of all the
challenges facing us today, there is none
more critical than funding. With the
projected growth in population,
employment and demand for travel, the
costs of our multimodal transportation
system surpass projected revenues
available from our historic transportation
funding source – the gas tax. Maintaining
the local transportation infrastructure is of
critical importance for the entire region and
was ranked as the highest priority based on
public outreach. Funding from the federal
gas tax has traditionally been used to
support the maintenance of these facilities.

Over time, however, federal gas tax
revenues have failed to keep up with
inflation. Additionally, the increase in the
number of electric and hybrid vehicles that
pay significantly less gas tax per mile
traveled only exacerbates the problem.

In 2005, Former Congressman Bill Thomas
secured $720M in federal appropriations
which leveraged additional state and
federal grant funding totaling over $1B in
transportation infrastructure expenditures
in Kern. However, these funds are now
nearly expended and there are no new
funding sources identified to replace these
one-time funds (see Figure ES-6).

The 2017 state gas tax increase known as
SB 1, is a temporary solution to this
problem. When adopted in 2017, estimates
were that by 2030 the tax on gasoline will
diminish to the point that another
transportation funding source will be
needed because of the number of electric
cars on the road. In addition, the tax
increase was estimated to only bring in half
what was needed to bring our roadways up
to good condition and being just enough to
keep the road system from getting any
worse. Thanks to the gas tax increase and
heroic efforts of local jurisdictions and
Caltrans, Kern continues to see the road
pavement condition index hover between
63 and 65 out of 100. A long-term, funding
solution is needed.

Most regions in the state have taken the
maintenance and improvement of their
transportation systems into their own
Figure ES-6: 2024 Ribbon Cutting - SR 58 Centennial Connector Freeway Shaves-Off an Average of !2 Miles on Trips Between I-40 and the Northern San Joaquin Valley/Bay Area via I-5 … federal gas tax revenues have failed
to keep up with inflation. Additionally,
the increase in the number of electric
and hybrid vehicles that pay
significantly less gas tax per mile…
Kern Council of Governments ES-8
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
hands and have become “Self-Help”
counties, by passing a local ½ cent retail
sales tax measure protected from state
raids during economic downturns. The
State has also identified a special fund of
state gas tax revenue for regions that are
Self-Help. Kern is the largest county in the
state without a local sales tax for
transportation and misses out on $2 million
per year from this special fund, even though
our residents pay into it.

Furthermore, with recent declines in transit
ridership and fare revenue due to the
pandemic, the region’s transit operators
continue to face major obstacles to
providing frequent and convenient transit
services. Local and regional public transit
is available within and between sixteen
Kern County communities and has been
experiencing challenges. From 2019 to
2024 public transit services in Kern
countywide saw a 47% decrease in
passengers from 7.9 million to 4 million.

New services such as zero emission bus
rapid transit (BRT), combined with Uber/Lyft
style, curb-to-curb, on-demand, last-mile,
micro-transit are promising but need funds
to implement/operate (See Figure ES-7).

PLANNING FOR GROWTH
Population, Housing, Employment &
Traffic Forecasts - Population in the 8,200
square mile County of Kern was estimated
to be over 924,000 in January 2025. Growth
since the pandemic has been nearly flat at
1/3rd of one percent per year or about 3,000
people annually according to the California
Department of Finance. The Kern COG
adopted 2022 RTP forecast, projects 10,460
people per year over the 24-year planning
period. This equated to a total growth of 30
percent. The revised population growth
estimate shows only 11 percent resulting in
a total population of 1,017,200 by 2049.

This significant reduction has been driven
primarily by out-migration exceeding
natural increase (births minus deaths).

Recent trends show a large exodus of
people leaving the major urban counties
and moving to more suburban counties like
Riverside, or out of state. The Kern region
remains California’s eleventh most
populated county ahead of San Francisco,
but behind Fresno County.

From 2019 to 2024 public transit
services in Kern countywide saw a 47%
decrease in passengers
Figure ES-7: Golden Empire Transit Now Operates 14 Hydrogen and more than 60 CNG Buses Hydrogen CNG
Kern Council of Governments ES-9
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
According to the California Employment
Development Department (EDD), the
unemployment rate is close to double the
state rate reaching a high of 18.7% during
the pandemic and is currently a little over
9% for January 2026. Kern’s continued high
unemployment rate is partially due to the
slowdown in the oil and agriculture sectors.

Much of Kern employment is dispersed,
such that, the Metropolitan Bakersfield
area experiences a “reverse commute”
whereby workers commute to outlying
areas such as agricultural fields, food
processing facilities, distribution/logistic
centers, wind farms, oil fields, prisons,
power plants, and military installations.

Goods Movement Increase - Kern has
noticed a significant increase in trucking
since 2018. According to the California
Traffic Census, I-5 over the Grapevine has
seen truck traffic increase by 25% between
2018 and 2023. Warehousing and
manufacturing square footage has doubled
since the pandemic, in part due to a
moratorium on new warehousing in the
Inland Empire counties in Southern
California. That warehousing demand has
spilled over into the San Joaquin Valley,
driving increased truck traffic.

To help mitigate the increased trucking, a
$100M trucking container depot and
intermodal rail facility is under construction
in Shafter(See Figure ES-8). This is the only
“BNSF Certified Site” in California
marketed by a class one railroad (bnsfpremier-one-sheet-shafter-ca.pdf). The facility has a shipping price from BNSF to
the ports of L.A./Long Beach and the
Midwest that is competitive with trucking.

Diverting these truck shipments to rail at
Shafter reduces road-wear, emissions,
congestion and traffic incidents on I-5 and
58 over the passes. Shipping by rail is 10
times more energy efficient and 7 times less
polluting.

Regional Planning efforts such as the Kern
Area Regional Goods Movement
Operations (KARGO) Community Prosperity
and Protection Study are identifying
strategies to mitigate the negative effects of
To help mitigate the increased trucking,
a $100M trucking container depot and
intermodal rail facility is under
construction in Shafter. This is the only
“BNSF Certified Site” in California
marketed by the class one railroad.

Figure ES-8: April 2026 - 600 Plus Containers at Wonderful Company Shafter Container Depot Demonstrating Market for $100M Intermodal Rail Yard Under Construction on BNSF Main line Kern Council of Governments ES-10
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
goods movement in the region while
enabling the economic benefits of hightech jobs in resource processing, manufacturing, and logistics.

Land Use Development - Land use is one
of the most important elements of effective
transportation planning. Kern COG does
not have jurisdiction over land use
planning, but the agency does advise and
encourage dialogue among those involved
in the decision-making process. The
RTP/SCS and Regional RHNA were
developed in consultation with local
jurisdictions and are consistent with
existing adopted general plans and zoning.

Kern COG will continue to use the
California Environmental Quality Act
(CEQA) and the National Environmental
Policy Act (NEPA) to communicate with
Kern cities and the county on issues of land
use, transportation, and air quality to
ensure that land use projects are
environmentally sound.

PLANNING SUCCESSES
Updated on a 4-year cycle, here are a few
notable sustainable community successes
from the implementation of past plans.

Over 60 success stories are found in
Appendix E.

Clean California Highway Murals – Using
local artists and themes several major
highway bridge ramps and underpasses
were decorated with beautiful murals
through a grant from the Clean California
Local Grant Program provided by Caltrans.
(See Figure ES-9)
Equity - Every RTP cycle since 1998 has
included an Integrated Environmental
Justice Performance Measure Analysis (see
Appendix D). Each cycle the equity
analysis has demonstrated that funds are
being expended in a manner that benefits
disadvantage communities better or as well
as all communities countywide. This is in
large part because of the grassroot public
outreach effort that ensures that the
projects in the plan are supported by all
communities.

Figure ES-9: Clean California Local Grant Program – SR 204 Garces Circle Overpass Murals …the equity analysis has demonstrated
that funds are being expended in a
manner that benefits disadvantage
communities better or as well as all
communities countywide.

Kern Council of Governments ES-11
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
Safety – Although safety has seen some
challenges in recent years based on
performance measures, the Kern Region
has completed a joint update of safety
plans for 9 jurisdictions in 2022, ensuring
eligibility for Highway Safety Improvement
Program (HSIP) funds.

Telecommute Strategy – The Kern region
has continued its strong support for
telecommuting through its Commute Kern
program. As demonstrated during the
pandemic, over 35% of workers
telecommuted up from 5% in prior years.

Local statistically valid surveys indicate
that approximately 10% of all workers plan
to continue telecommuting after the
pandemic, resulting in the single most
effective strategy for reduction of commute
related traffic and emissions.

Longest Class I Car-Free Bike Trail in
California – Started in 1976, Kern County
has now completed the longest dedicated
paved bike trail in the state extending 36.3
miles from Lake Ming to Lake Webb along
the banks of the Kern River. The paved
bikeway is used by commuters and
recreational riders alike, promoting this
plans sustainability and livability goals.

STRATEGIC INVESTMENTS
The RTP/SCS includes a forecast of
reasonably available revenue over the next
20-plus years at $15.7 billion (See Chapter
6). This RTP promotes a more efficient
transportation system that calls for fully
funding alternative transportation modes,
while emphasizing transportation demand
and transportation system management
approaches for new capacity. 77% of
investments in this Plan are for operations/
77% of investments in this plan are for
operations/maintenance, active
transportation, & transit projects.

Figure ES-10: Investments by Mode 2026-2049 ($ x 1,000) 77% for Operations/Maintenance, Transit & Active Transportation
Kern Council of Governments ES-12
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
maintenance, active transportation, and
transit projects (See Figure ES-10).

REGULATORY REQUIREMENTS
The RTP fulfills multiple requirements with
one document:
• Congestion Management Program
• Sustainable Communities Strategy &
Rural Urban Connectivity Strategy
• Regional Housing Need Allocation
• Environmental Justice & Performance
Measure Analysis
• Safety-Security Action Element
As the Congestion Management Agency,
Kern COG prepares the federally required
Congestion Management Program (CMP)
which is integrated into Chapter 5 of the
RTP. Through the Kern Regional Traffic
Count Program, Kern COG monitors
compliance with the congestion standards
set in the CMP. The Program includes an
innovative multi-model deficiency plan
policy that looks at ways to improve
mobility, such as HOV lanes to keep transit
moving during peak congested periods.

Note that since 2006, the number of
segments on the CMP system that were
showing congestion deficiencies has
shrunk from 8 down to 1. This is primarily
due to the slower population growth
discussed above.

The SCS includes a Rural Urban
Connectivity Strategy designed to ensure
that rural economic sectors—agriculture,
energy, tourism, military, and others—are
not left out of efforts to provide for a more
efficient transportation system.

To ensure consistency with the SCS, Kern
COG engaged in the RHNA process
concurrently with the development of the
RTP. The RHNA is an 8-year document that
provides low-income housing goals for
each community in the region.

Recognized as a state best practice, the
Kern RTP includes an innovative analysis
with the Integrated Performance Measures
Analysis for System Level, Smart Mobility
Framework, Health Equity, Environmental
Justice, and Title VI. The analysis includes
Safety, and Ch. 5 includes the SafetySecurity Action Element.

RTP GOALS
Figure ES-11 lists the 7 publicly vetted
goals of the Regional Transportation Plan.

RTP SUMMARY HANDOUTS
The following handouts summarize this
RTP/SCS benefits and assumptions.

1. Mobility – Improve the mobility of people and freight;

2. Accessibility – Improve accessibility to major employment and other regional activity centers;

3. Reliability – Improve the reliability and safety of the transportation system;

4. Efficiency – Maximize the efficiency of the existing and future transportation system;

5. Livability – Promote livable communities;

6. Sustainability – Minimize effects on the environment; and

7. Equity – Ensure equitable distribution of the benefits among various demographic & user groups.

Figure ES-11: Kern’s 7 Long-Range Regional Transportation Planning Goals Kern Council of Governments ES-13
2026 Regional Transportation Plan

EXECUTIVE SUMMARY

SUMMARY OF BENEFITS
2026 Regional Transportation Plan
The region represented by the Kern Council of Governments is projected to grow by more than 11% by 2049. To protect the quality of life for future generations, the 2026 RTP is presented as an economic development strategy as well as a transportation infrastructure and sustainability investment.

MOBILITY BENEFITS
 The plan improves overall mobility and provides needed congestion relief by maintaining, fixing and finishing what we have
 The plan fully funds maintenance of the transportation system while increasing funding for bike, pedestrian, and transit facilities
 Implementation of the plan will nearly double the number of homes within walking distance to quality transit. By integrating land use and transportation, more than 70% of homes will be near quality transit compared to less than 60% under older plans.

ECONOMIC BENEFITS
 The Federal Highway Administration estimates that every $1 billion spent on transportation infrastructure creates 13,000 job years of which 1/3rd can persist long after construction, generated by increased labor from better mobility and more efficient goods movement.
 This 24-year investment plan is projected to add over 64,740 5-year jobs) from construction, maintenance, and better mobility, and saves 21,000 additional existing jobs that would have been lost because of poor road conditions.  The plan could ultimately add about 21,600 5-year permanent non-transportation sector jogs to the region, increasing Kern’s economic base, adding capacity to re-invest in an ever more efficient transportation system, triggering an upward economic spiral for future generations.

HEALTH BENEFITS
 Improve air quality and public health by reducing all criteria pollutants, emissions and their precursors to meet national standards – oxides of nitrogen (Nox), reactive organic gasses (ROG), particulate matter (PM10), fine particulate matter (PM2.5) and Carbon Monoxide (CO).
 4% or more reduction in health expenditures because of improved air quality.  Promotes more active transportation by fully funding the Kern Active Transportation Plan and increasing funding for bike and pedestrian facilities by 700% over the 2011 RTP.

SUSTAINABILITY BENEFITS
 20% reduction in farmland converted to urban/built-up uses outside city spheres of influence.
 15% reduction in household water use providing a full range of housing choices  3% reduction in infrastructure costs by revitalizing existing communities compared to past plans
Kern Council of Governments ES-14
2026 Regional Transportation Plan

EXECUTIVE SUMMARY
PLANNING ASSUMPTION MAPS2026 Regional Transportation Plan Reflecting diverse public input, the plan assumes projects that reflect a more efficient transportation system that will benefit the mobility, economy, health and sustainability of the region. Consistent with the prior plan, funding from traditional sources continue at historic rates as well as a slight increase in additional funding from potential new sources. Funding assumptions are updated every four years. Land use assumptions are based on local general plans with input from the public and the regional planning advisory committee.

Transportation
Projects
Future Land Use
Assumptions Future
Land Use
Assumptions

SOUTHEAST KERN SUBAREA
YOE Cost ($)**
Maintenance /
Inflation Savings
($)**
Percent of
expenditures
county-wide
Fix-It-First, Keep-It-Local / Cost-Efficient--Roadway Safety, Maintenance, Operations 195,888,000 92,067,000 Advanced Tech, Safe, Clean Transportation--Transportation Control Measures (TCM) 576,445,800 75,493,500 Priority Regional Projects 1,033,400,000 78,900,000
Early Expenditures Subtotal 1,805,733,800 246,460,500 12.8% Next-In-Line Projects**** 36,935,300,000 6,092,400,000
Grand Total of All Projects Benefiting Subarea 38,741,033,800 6,338,860,500 58.5% Share of County Population: 5.2%
**Year of expenditure (YOE) 1) Assumes 3% annl. inflation, assumed extra funding allows delivery of projects 5 yrs. early resulting in inflation savings, 2) Prioritize preventative maint., lowers cost by est. 47%. ***Active Transportation (bike & pedestrian) projects identified in the Kern COG Active Transportation Plan are fully funded and listed in table 5.1. ****Next-In-Line (unconstrained) projects include unfunded high speed rail segments in Kern totalling an estimated $30 Billion. Any potential new local funding sources/savings shall not be used for this project.

Next-In-Line (unconstrained) projects have no funding identified yet. However, if early expenditure projects in Table 5.1 are delivered early and under budget, these projects would be the next in line for funding.

Fix-It-First, Keep-It-Local / Cost-Efficient--Roadway Safety, Maintenance, Operations Roadway Safety, Maintenance and Operations
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)**
Maintenance /
Inflation Savings
($)**
RTP Project ID
3 California City - potential new
funds Various Locations Roadways, bridges (RR, canals, etc), safety widenings; rehab/reconstruct., signalization, bike/ped imprvmts, etc 22,835,000 10,732,000 KER26RTP001 3 California City - existing funds Various Locations Roadways, bridges (RR, canals, etc), safety widenings; rehab/reconstruct., signalization, bike/ped imprvmts, etc 86,474,000 40,643,000 KER26RTP001 3 County Areas - potential new
funds Various Locations Roadways, bridges (RR, canals, etc), safety widenings; rehab/reconstruct., signalization, bike/ped imprvmts, etc 49,559,000 23,293,000 KER26RTP001 3 County Areas - existing funds Various Locations Roadways, bridges (RR, canals, etc), safety widenings; rehab/reconstruct., signalization, bike/ped imprvmts, etc 195,888,000 92,067,000 KER26RTP001 3 State Highways - existing funds Various Locations State Highway Operations and Protection Program (SHOPP) 200,506,000 94,238,000 KER26RTP001
*1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 555,262,000 260,973,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 yrs. early resulting in inflation savings, and helps prioritize preventative maintenance, lowering cost by est. 47%.

Regional Transportation Plan (RTP) 20+ Year Expenditure Program Summary By Major Expendature Categories with Forecast of Existing and Potential New Funding Sources 2026 RTP Appendix C SE Kern - p. 1 of 8
SOUTHEAST KERN SUBAREA (Continued)
Advanced Tech, Safe, Clean Transportation--Transportation Control Measures (TCM) Transit, Passenger Rail, Low-Zero Emissions Infrastructure, Intellegent Transportation Systems (ITS) Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Inflation Savings ($)** RTP Project ID
1,2,3,4,5,6
,7,8,9 Countywide Vanpooling Vanpooling, Park & Ride Lots 10,300,000 1,400,000 KER26RTP005 1,2,3,4,5,6
,7,8,9 Countywide Bus Service Operations and Maintenance (incl. fare box, TDA, fed.) 16,400,000 - KER26RTP018 1,2,3,4,5,6
,7,8,9 Countywide Intellegent Transportation. Sys.(ITS) ITS related improvements / upgrades - Traffic Ops, etc. 180,000 - KER26RTP019 1,2,3,4,5,6
,7,8,9 Countywide Aviation Capital, Maintenance and Operational Improvements 2,490,000 300,000 KER26RTP020 7,9 County/Rosamond Passenger Rail Metrolink extension - Palmdale/Lancaster to Rosamond 414,000,000 56,900,000 KER26RTP021 1,2,3,4,5,6
,7,8,9 Countywide Various Locations Other TCMs,--Alternative fuel/zero emission infrastructure, Promotion of alt. modes, alt. commuting, etc. 4,770,000 700,000 KER26RTP025 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 448,140,000 59,300,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 years early resulting in an inflation savings. ***The largest portion of the Passenger Rail Program is funded through the CA High Speed Rail Authority (CHSRA) and like aviation and freight rail is included for information purposes only and beyond COG funding authority. $3.0B in HSR funding has been identified (fiscally constrained) for construction in the Kern region. An estimated $20 billion is unfunded for the ramaining segements in the Kern Region and can be found in Table 5.2. Continued delays in funding for the HSR project negate the possiblity of any inflation savings.

SOUTHEAST KERN SUBAREA (Continued)
Bicycle and Pedestrian Complete Streets Improvements and Maintenance Bikeway Facilities
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Inflation Savings ($)** RTP Project ID Start
7 California City class I shared use path Mendibur/Gr Cir Cr/Yerba Rushe (CCB to 100' W of 88th) 1.6 m 1,620,700 222,700 KER26RTP076 7 California City class I shared use path North City Path/Mendiburu Rd (88th St to Hacienda Bl) 0.2 mi. 202,600 27,800 KER26RTP077 7 California City class II bike ln Airway Bl (Redwood Bl to Sequoia Bl) 1 mi. 101,300 13,900 KER26RTP004 7 California City class II bike ln California City Bl (S College Bl to Proctor Bl fill gap) .7 mi. 70,900 9,700 KER26RTP004 7 California City class II bike ln Hacienda Bl (Redwood Bl to Sequoia Bl) 1 mi. 101,300 13,900 KER26RTP004 7 California City class II bike ln Neuralia Rd (Redwood Bl to Poppy Bl) 1.5 mi. 151,900 20,900 KER26RTP004 7 California City class II bike ln Neuralia Rd (Redwood Bl to Sequoia Bl) 1 mi. 101,300 13,900 KER26RTP004 7 California City class II bike ln Proctor Bl (Randsburg Mojave Rd to College Bl) .5 mi. 50,600 7,000 KER26RTP004 7 California City class II bike ln Redwood Bl (Airway Bl to Neuralia Rd extend new bike ln) .7 m 70,900 9,700 KER26RTP004 7 California City class II bike ln Redwood Bl (California City Bl to Hacienda Bl on south side fill 141,800 19,500 KER26RTP004 7 California City class II bike ln Redwood Bl (Proctor Bl to California City Bl) .7 mi. 70,900 9,700 KER26RTP004 7 California City class II bike ln 90th St (California City Bl to Catalpa Av) .2 mi. 18,000 - KER2xRTP000 2023 7 California City class II bike ln Airway Bl (Redwood Bl to S Loop Bl) .6 mi. 54,000 - KER2xRTP000 2023 7 California City class II bike ln Conklin Bl/Heather Av (California City Bl to Calhoun Ct to conn 45,000 - KER2xRTP000 2023 2026 RTP Appendix C SE Kern - p. 2 of 8
7 California City class II bike ln Hacienda Bl (North Loop Bl to California City Bl) .6 mi. 54,000 - KER2xRTP000 2023 7 California City class II bike ln Poppy Bl (Neuralia Rd to N Loop Bl) .8 mi. 72,000 - KER2xRTP000 2023 7 California City class II bike ln Randsburg Mojave Rd (Mcintosh Wy to Hooker Dr extend new 63,000 - KER2xRTP000 2023 7 California City class II bike ln S Loop Bl (California City Bl to Hacienda Bl extend new bike ln 108,000 - KER2xRTP000 2023 7 California City class III bike bl 92nd St (Catalpa Av to Fir Av Bl) .1 mi. 5,600 800 KER26RTP004 7 California City class III bike bl 92nd St (Fir Av to S Loop Bl) .2 mi. 11,300 1,600 KER26RTP004 7 California City class III bike bl California City Bl (Redwood Bl to Sandy Av) .8 mi. 45,000 6,200 KER26RTP004 7 California City class III bike bl California City Bl (SR 14 to Yerba Bl) 6.8 mi. 382,700 52,600 KER26RTP004 7 California City class III bike bl Catalpa Av (92nd St to 90th St) .2 mi. 11,300 1,600 KER26RTP004 7 California City class III bike bl Conklin Bl (Mendiburu Rd to North Loop Bl) .6 mi. 33,800 4,600 KER26RTP004 7 California City class III bike bl Desert Butte Bl (Forest Bl to Sequoia Bl) .4 mi. 22,500 3,100 KER26RTP004 7 California City class III bike bl Division Rd (Midway Rd to Ironwood St) 1 mi. 5,600 800 KER26RTP004 7 California City class III bike bl Fir Av (92nd St to 92nd St) .1 mi. 5,600 800 KER26RTP004 7 California City class III bike bl Forest Bl (Neuralia Rd to Desert Butte Bl) 2.6 mi. 146,300 20,100 KER26RTP004 7 California City class III bike bl Hacienda Bl (Mendiburu Rd to N Loop Bl) .6 mi. 33,800 4,600 KER26RTP004 7 California City class III bike bl Mendiburu Rd (Baron Bl to Rusche Bl) 2.5 mi. 140,700 19,300 KER26RTP004 7 California City class III bike bl Mendiburu Rd (Hacienda Bl to Randsburg Mojave Rd) 2.1 mi. 118,200 16,200 KER26RTP004 7 California City class III bike bl Neuralia Rd (Mendiburu Rd to Poppy Bl) .5 mi. 28,100 3,900 KER26RTP004 7 California City class III bike bl Rusche Bl (Mendiburu Rd to Bolden Dr) .3 mi. 16,900 2,300 KER26RTP004 7 California City class III bike bl Sequoia Bl (Neuralia Rd to Desert Butte Bl) 2.5 mi. 140,700 19,300 KER26RTP004 7 California City class III bike bl Yerba Bl (Mendiburu Rd to California City Bl) 1 mi. 5,600 800 KER26RTP004 7 County/Indian Wells V. class II bike ln Brown Rd (Athel Av to US 395) 7.8 mi. 702,000 - KER2xRTP000 2023 7 County/Indian Wells V. class II bike ln Brown Rd (US 395 Northern Overpass to US 395 Southern Ov 27,000 - KER2xRTP000 2023 7 County/Indian Wells V. class II bike ln Brown Rd (US 395 to Ridgecrest Bl.) 8.2 mi. 738,000 - KER2xRTP000 2023 7 County/Indian Wells V. class III bike bl Athel Av (Us 395 to Brown Rd signage only) 2.6 mi. 146,300 20,100 KER26RTP004 7 County/Indian Wells V. class III bike bl Brown Rd (SR 14 to US 395 signage only) 20 mi. 1,125,500 154,600 KER26RTP004 7 County/Indian Wells V. class III bike bl Brown Rd (US 395 Northern Overpass to US 395 Southern Ov 16,900 2,300 KER26RTP004 7 County/Indian Wells V. class III bike bl Garlock Rd (Redrock 18 mi. 1,013,000 139,200 KER26RTP004 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr SR 14 (Athel Av to SR 178) 5.9 mi. 531,000 - KER2xRTP000 2023 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr SR 14 (US 395 to Athel Av) 1 mi. 90,000 - KER2xRTP000 2023 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr SR 178 (SR 14 to Sierra Hwy ) 32.3 mi. 3,271,900 449,500 KER26RTP004 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr SR 178 Inyokern Rd (Ridgecrest City Limits to SR 14) 9.2 mi. 828,000 - KER2xRTP000 2023 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr US 395 (Brown Rd to China Lake Bl) 10.1 mi. 909,000 - KER2xRTP000 2023 7 County/Indian Wells V./Caltrans class II bike ln, Caltrans shldr US 395 (Brown Rd to Inyo County Line 10.4 mi. 936,000 - KER2xRTP000 2023 7 County/Inyokern class II bike ln Broadway (Orchard Av to Plains Av) 0.5 mi. 50,600 7,000 KER26RTP004 7 County/Jawbone Cn class II bike ln, Caltrans shldr SR 14 (SR 178 to Mojave) 46.6 mi. 4,194,000 - KER2xRTP000 2023 7 County/Mojave class II bike ln 40th St (Arroyo Av to Purdy Av) 3.1 mi. 314,000 43,100 KER26RTP004 7 County/Mojave class II bike ln 5th St (Rosewood Bl to Purdy Av) 5.1 mi. 516,600 71,000 KER26RTP004 7 County/Mojave class II bike ln Arroyo Av (45th St to SR 58) 1.9 mi. 192,500 26,400 KER26RTP004 2026 RTP Appendix C SE Kern - p. 3 of 8
7 County/Mojave class II bike ln Arroyo Av (5th St to Town Limits) 1.5 mi. 151,900 20,900 KER26RTP004 7 County/Mojave class II bike ln Butte Av (5th St to Town Limits) 1.5 mi. 151,900 20,900 KER26RTP004 7 County/Mojave class II bike ln Camelot Bl (45th St to Holt St) 1.6 mi. 162,100 22,300 KER26RTP004 7 County/Mojave class II bike ln Denise Av (5th St to Town Limits) 1.5 mi. 151,900 20,900 KER26RTP004 7 County/Mojave class II bike ln Holt St (Arroyo Av to Purdy Av) 3 mi. 303,900 41,800 KER26RTP004 7 County/Mojave class II bike ln Inyo St (K St to O St) 0.3 mi. 30,400 4,200 KER26RTP004 7 County/Mojave class II bike ln K St (Oak Creek Rd to Inyo St) 0.5 mi. 50,600 7,000 KER26RTP004 7 County/Mojave class II bike ln Kock St (Arroyo Av to Purdy Av) 3.1 mi. 314,000 43,100 KER26RTP004 7 County/Mojave class II bike ln O St (Inyo St to Park St) 0.4 mi. 40,500 5,600 KER26RTP004 7 County/Mojave class II bike ln Oak Creek Rd (45th St to K St) 2.3 mi. 207,000 - KER2xRTP000 2023 7 County/Mojave class II bike ln Purdy Av (45th St to Town Limits) 6.8 mi. 688,800 94,600 KER26RTP004 7 County/Mojave class II bike ln Rosewood Bl (Kyle St to 5th St) 5 mi. 506,500 69,600 KER26RTP004 7 County/Mojave/Caltrans class I shared use path SR 14 Sierra Hwy (Oak Creek Rd to Purdy Av) 2.4 mi. 2,431,100 334,000 KER26RTP080 7 County/Mojave/Caltrans class II bike ln, Caltrans shldr Mojave-Barstow Hwy/Old SR 58 (SR 14 Sierra Hwy to 5th St) 261,000 - KER2xRTP000 2023 7 County/Rosamond class II bike ln Rosamond Bl (60th St to SR 14) 3.7 mi. 333,000 - KER2xRTP000 2023 7 County/Rosamond class II bike ln Rosamond Bl (SR 14 to Sierra Hwy) .5 mi. 50,600 7,000 KER26RTP004 7 County/Rosamond class II bike ln Sierra Hwy (Rosamond Bl to LA County Line) 3 mi. 270,000 - KER2xRTP000 2023 7 County/Rosamond class III bike bl Sierra Hwy (Rosamond Bl to Silver Queen Rd) 9.3 mi. 523,400 71,900 KER26RTP004 1,2,3,4,5,6
,7,8,9 Countywide Various locations Construct Class I, II or III Bike Path; striping; signage 100,000 13,700 KER26RTP004 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 26,582,800 2,218,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 years early resulting in an inflation savings. 2026 RTP Appendix C SE Kern - p. 4 of 8
Bicycle and Pedestrian Complete Streets Improvements and Maintenance Pedestrian Facilities
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($) Inflation Savings ($)** RTP Project ID Start
7 California City Complete Streets/ITS Improvements Other future developments funded by mitigation, fees, etc. 50,302,600 6,911,100 KER26RTP025 7 California City High-Visibility Crosswalk 90th St (Fir Av) 1 mi. 3,200 400 KER26RTP025 7 California City High-Visibility Crosswalk Catalpa Av (90th St) 4 mi. 12,600 1,700 KER26RTP025 7 California City Pedestrian Improvement Corridor N Loop Blvd (Hacienda Bl to Lake Shore Dr) 1.3 mi. 394,500 54,200 KER26RTP025 7 California City Pedestrian Improvement Corridor Redwood Blvd (Neuralia Rd to California City Blvd) 2.9 mi. 908,100 124,800 KER26RTP025 7 County/Mojave Corridor Improvement Douglas Av (Koch St-Mojave West Park) .3 mi. 91,800 12,600 KER26RTP025 7 County/Mojave Corridor Improvement M St (Belshaw St-Shasta St) .4 mi. 112,800 15,500 KER26RTP025 7 County/Mojave Corridor Improvement O St (Cerro Gordo St-Park St) .5 mi. 145,200 19,900 KER26RTP025 7 County/Mojave Corridor Improvement SR 14 (Cypress-Silver Queen) 5.4 mi. 2,813,800 386,600 KER26RTP025 7 County/Mojave Corridor Improvement SR 58 (Sierra Hwy-Nadene St) .7 mi. 202,600 27,800 KER26RTP025 7 County/Mojave Fence Removing Q St (Belshaw St) 1. mi. 600 100 KER26RTP025 7 County/Mojave High-Visibility Crosswalk Gregory Dr (Pat Av) 4 mi. 12,600 1,700 KER26RTP025 7 County/Mojave High-Visibility Crosswalk SR 58 (Kern County Fire Department) 4 mi. 12,600 1,700 KER26RTP025 7 County/Rosamond County Aeras Complete Streets/ITS ImOther future developments funded by mitigation, fees, etc. 44,930,900 6,173,100 KER26RTP025 7 County/Rosamond Sidewalk Improvement 20th St W (Marie Av-Rosamond Bl) 1 mi. 213,600 29,300 KER26RTP025 7 County/Rosamond Sidewalk Improvement 35th St W (Holiday Av-Felsite Av) 1.5 mi. 318,900 43,800 KER26RTP025 7 County/Rosamond Sidewalk Improvement Mojave Tropico Rd (Rosamond Blvd-Cobalt Av) .3 mi. 58,900 8,100 KER26RTP025 7 County/Rosamond Sidewalk Improvement Rosamond Blvd (Mojave Tropico Rd-10th St W) 4.5 mi. 968,300 133,000 KER26RTP025 7 County/Rosamond Sidewalk Improvement Sierra Hwy (Hillcrest Av-Orange St) 1 mi. 219,400 30,100 KER26RTP025 1,2,3,4,5,6
,7,8,9 Countywide Various locations Safe, Complete Streets, Pedestrian Enhancements - - KER26RTP025 1,2,3,4,5,6
,7,8,9 Countywide Various locations Construct Complete Streets Improvements - - KER26RTP025 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 101,723,000 13,975,500 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 years early resulting in an inflation savings.

SOUTHEAST KERN SUBAREA (Continued)
Priority Regional Projects
Freight Rail***
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($) Inflation Savings ($)** RTP Project ID Start
1,2,3,5,6,7
,8,9 County/Tehachapi Freight Rail Double-track sections (Bakersfield to Mojave) - Phase 2 101,300,000 13,900,000 KER26RTP086 1,5,6,8 Shafter/Bakersfield Freight Rail Intermodal Rail Facility - Phase 3 100,000,000 - KER26RTP087 2026 1,2,3,4,5,6
,7,8,9 Countywide Freight Rail Private Sector Rail Network Improvments, supporting rail freight movement 56,300,000 7,700,000 KER26RTP089
*1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 257,600,000 21,600,000 Sub-total 2026 RTP Appendix C SE Kern - p. 5 of 8
**Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 years early resulting in an inflation savings. ***Freight rail projects are usually privately funded however some competetive government grant funding is available.

Priority Regional Projects
2026-2029 Major Roadway Improvements
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($) Inflation Savings ($)** RTP Project ID Start
1,5,6,7,8,9 Bakersfield Centennial Corridor At Rte 99 & 58 – operational improvements 84,000,000 - KER22RTP003 2026 1,5,7 County Route 184 At Union Pacific Railroad - new grade separation 29,700,000 - KER08RTP108 2026 1,5,6,7,8,9 County Centennial Corridor Stockdale Hwy (SR 43 to Heath Rd) safety widening, traffic flow impvmts. 66,400,000 - KER22RTP005 2026
7,9 County/California City Route 58 SR 58 Cal City Bl to Edwards AFB N. Gate - safety improvements Phase 1 (KARGO 12.1&2) 38,400,000 - KER22RTP007 2026 1,2,3,4,5,6
,7,8,9 County/Keene Route 58 W of Tehachapi to General Beale Rd - new truck climbing lanes 140,000,000 - KER22RTP006 2026 3,4,7,9 County/Ridgecrest Route 14 Redrock / Inyokern Rd to Rt 178 - safety widening, traffic flow improvements (Ph. 2) 47,300,000 6,500,000 KER08RTP017 2031 3,4,7,9 County/Indian Wells V. Route 14 Redrock / Inyokern Rd to Rt 178 - safety widening, traffic flow improvements (Ph. 3) 36,000,000 4,900,000 KER08RTP024 2036 4,5 Bakersfield Route 178 Alfread Harold Hwy to Rancheria - safety widening, traffic flow improvements 22,300,000 3,100,000 KER08RTP084 2049 4,5 County/Bakersfield Route 178 Vineland to E. of Alfred Harrell Hwy - new freeway segment, interchange 133,900,000 18,400,000 KER08RTP025 2049
5,6,8 County/Bakersfield West Urban Corridor Taft Hwy to White Lane - construct new facillity 101,300,000 13,900,000 KER08RTP097 2049 3,7 Ridgecrest US 395 Between Rt 178 and S. of China Lake Blvd - passing lanes/intersection improvments 22,500,000 3,100,000 KER08RTP089 2049 8 Taft Route 119 Elk Hills - County Rd to Tupman Ave - safety widening, traffic flow impvmts. (Ph. 2) 54,000,000 7,400,000 KER08RTP086 2049 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 775,800,000 57,300,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 years early resulting in an inflation savings.

SOUTHEAST KERN SUBAREA (Continued)
Regional Projects Under Construction / Recently Completed - 2025 Status Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($) Savings ($)** RTP Project ID Start 1,5,6,7,8,9 Bakersfield Route 58 I-5 to 58/Cottonwood Rd - new freeway/operatational Improvem 698,000,000 - KER08RTP020 2016 1,5,6,7,8,9 Bakersfield Passenger Rail Amtrak Station - Phase 3 13,000,000 - KER2xRTP000 2022 3,4,7 Inyokern Route 14 Redrock / Inyokern Rd to Rt 178 - widen to 4 lanes (Ph. 1) 42,000,000 - KER08RTP006 2016 5,7,9 Tehachapi Freight Rail Double-track sections (Bakersfield to Mojave) - Phase 1 111,700,000 - KER2xRTP000 2017 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 864,700,000 2026 RTP Appendix C SE Kern - p. 6 of 8
SOUTHEAST KERN SUBAREA (Continued)
Fix-It-First, Keep-It-Local / Cost-Efficient--Roadway Safety, Maintenance, Operations Next-In-Line - Local Streets and Roads (Unconstrained Projects) Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Maintenance Savings ($)** RTP Project ID
1,2,3,4,5,6
,7,8,9 Region Various Locations Roadways, bridges (RR, canals, etc), safety widenings; rehab/reconstruct., signalization, bike/ped imprvmts, etc 698,400,000 328,200,000 KER26RTP001 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 698,400,000 328,200,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 yrs. early resulting in inflation savings, and helps prioritize preventative maintenance, lowering cost by est. 47%.

SOUTHEAST KERN SUBAREA (Continued)
Advanced Tech, Safe, Clean Transportation--Transportation Control Measures (TCM) Next-In-Line - Transit, Passenger Rail, Aviation (Unconstrained Projects) Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Maint./Inflation Savings ($)** RTP Project ID

3.4.7.9 Eastern California Local Passenger Rail Mammoth Lakes to Lancaster/Palmdale (2005 E. Sierra Public Transit Study) 3,335,000,000 531,200,000 KER26RTP105 7,9 Mojave, Cal City, Tehachapi Commuter Rail Metrolink Service Extension - Tehachapi Corridor (2012 Commuter Rail Study) 231,300,000 36,800,000 KER26RTP110 1,2,3,4,5,6
,7,8,9
Kern County, Bakersfield,
Tehachapi High Speed Rail Northwest of Bakersfield to Palmdale connecting to Palmdale Metrolink Station 30,000,000,000 4,778,100,000 KER26RTP113 5 Bakersfield Bakersfield Municipal Airport Capital Improvements 5,700,000 900,000 KER26RTP114 7 California City Cal City Municipal Airport Capital Improvements 4,800,000 800,000 KER26RTP115 3,7,9 County Mojave Air/Space Port Capital Improvements 102,300,000 16,300,000 KER26RTP123 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 33,679,100,000 5,364,100,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 yrs. early resulting in inflation savings, and helps prioritize preventative maintenance, lowering cost by est. 47%.

SOUTHEAST KERN SUBAREA (Continued)
Next-In-Line - Active Transportation (Unconstrained Projects) Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Maint./Inflation Savings ($)** RTP Project ID
1,2,3,4,5,6
,7,8,9 all 0
Sub-total $0 $0 Sub-total
The intent of this plan is to fully fund bike and pedestrian projects as identified in the most recent active transportation plan. For a complete listing of projects see Table 5.1.
2026 RTP Appendix C SE Kern - p. 7 of 8
SOUTHEAST KERN SUBAREA (Continued)
Next-In-Line - Freight rail (Unconstrained Projects)
Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Maint./Inflation Savings ($)** RTP Project ID
5 County/Bakersfield Intermodal hub Edison/Bolthouse Intermodal Rail Terminals (KARGO Study) 20,000,000 3,200,000 KER27RTP137 7 County/Boron Intermodal hub Rio Tinto Intermodal Rail Faciity (KARGO Study) 20,000,000 3,200,000 KER27RTP140 7 County/Mojave Intermodal hub Mojave Inland Port on UP spur at Routes 58 & 14 (KARGO Study) 75,000,000 11,900,000 KER27RTP133
3,7 County/Ridgecrest Intermodal hub Searles Station Intermodal Rail Terminal on UP spur (KARGO Study 6.3) 109,000,000 17,400,000 KER27RTP132
7 County/Mojave Freight Rail Mojave Inland Port Intermodal Rail Facility 337,700,000 46,400,000 KER26RTP088 7 Mojave shorthaul rail Mojave - Airport Rail Access Improvements (2013 SJV IGMP) 3,000,000 500,000 KER27RTP147
*1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 564,700,000 82,600,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 yrs. early resulting in inflation savings, and helps prioritize preventative maintenance, lowering cost by est. 47%.

SOUTHEAST KERN SUBAREA (Continued)
Next-In-Line - Major Roadway Improvements (Unconstrained Projects) Sub
Areas*
Benefttd.

Jurisdiction(s) Project Scope YOE Cost ($)** Maint./Inflation Savings ($)** RTP Project ID
7 California City California City Blvd Rt 14 east six miles -safety widening 22,000,000 3,500,000 KER08RTP052 7,9 California City CCB/Northgate Bl/140th St SR 58 Cal City Bl to Edwards AFB N. Gate - safety improveme 56,850,000 9,100,000 KER08RTP054 7 California City Twenty Mule Team Rd California City Blvd to Rt 58 -safety widening 21,600,000 3,400,000 KER08RTP053 7 County Rosamond Blvd Rosamond Blvd @ UPRR - construct grade separation 69,000,000 11,000,000 KER08RTP133 1,5,6,7,8,9 County Route 58 Route 223 new interchange (KARGO 2.3) 244,000,000 38,900,000 KER26RTP155 1,5,6,7,8,9 County Route 58 Cultural Biological Interpretive Visitors Center (KARGO 2.4) 17,550,000 2,800,000 KER26RTP156 7 County / Mojave K Street Mojave - extend K St to Rt 14 12,900,000 2,100,000 KER08RTP063 7 County / Mojave K Street K St @ UPRR - construct grade separation 69,000,000 11,000,000 KER08RTP135 7,9 County/Cal City Route 58 Convert from expressway to freeway adding frontage roads an 112,000,000 17,800,000 KER22RTP004 3,7 County/Mojave Route 14 Purdy Rd - interchange & grade separated overpass at UPRR 60,000,000 9,600,000 KER22RTP008 3,7 County/Mojave Route 14 Silver Queen / Backus / Dawn Rd - grade separated overpass 120,000,000 19,100,000 KER22RTP009 1,5,6,7,8,9 County/Tehachapi Route 58 W of Teh. to Gen Beale Rd - truck climb/safety passing lanes seg 1 (KARGO 2.1) 230,000,000 36,600,000 KER08RTP035
1,5,6,7,8,9 County/Tehachapi Route 58 W of Teh. to Gen Beale Rd - truck climb/safety passing lanes seg 3 (KARGO 2.2) 301,000,000 47,900,000 KER26RTP154
3,7 Johannesburg US 395 San Bdo County Line to Rt 14 - safety widening 244,000,000 38,900,000 KER08RTP050 3,7 Johannesburg US 395 Safety passing lane extension (KARGO 6.1) 80,800,000 12,900,000 KER26RTP170 3,7 Ridgecrest US 395 China Lake Bl Intersection Improvments (KARGO 6.2) 59,400,000 9,500,000 KER26RTP171 7,9 Tehachapi Teh Willow Sps(WS)Rd Rt 58 to Rosamond Blvd - safety widening 151,000,000 24,000,000 KER08RTP064 7,9 Tehachapi Teh WS Rd/Av A/United Tehahcapi-Willow Spriings Rd, Av A, United Greenpass netwo 122,000,000 19,400,000 KER26RTP177 *1) Arvin-Lamont, 2) Frazier Park, 3) Indian Wells Valley, 4) Lake Isabella, 5) Metro Bakersfield, 6) North Kern, 7) Southeast Kern, 8) Taft-Maricopa, 9) Tehachapi 1,993,100,000 317,500,000 Sub-total **Year of expenditure (YOE) assumes 3% annual inflation. Additional funding assumed to allows delivery of projects 5 yrs. early resulting in inflation savings, and helps prioritize preventative maintenance, lowering cost by est. 47%. 2026 RTP Appendix C SE Kern - p. 8 of 8
JULY 4TH & 5TH · CENTRAL PARK · CALIFORNIA CITY, CA

AMERICA'S
250TH ANNIVERSARY

CALIFORNIA CITY, CALIFORNIA

TWO DAYS OF INDEPENDENCE DAY CELEBRATION

DAY ONE
JULY 4

BBQ BASH
Community BBQ
Live Entertainment
Vendors & Food
1:00 PM – 8:00 PM

DAY TWO
JULY 5

FIREWORKS SHOW
Grand Finale Fireworks
Blankets & Chairs Welcome
Family Night Out
1:00 PM – 8:00 PM
Join us for two amazing nights of celebration in California City!

LOCATION

CENTRAL PARK
10350 Heather Ave · California City, CA 93505

FREE & OPEN

TO THE PUBLIC

PROUDLY SPONSORED BY

CITY OF CALIFORNIA CITY, CA

PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY RECOGNIZING MAY 2026 AS COMMUNITY ACTION MONTH
WHEREAS, Community Action is built on innovative, responsive, and efficient programs that are uniquely tailored to meet local needs; and
WHEREAS, Community Action delivers high-impact, cost-effective results that generate a significant return on investment for local communities; and WHEREAS, Community Action Agencies are trusted pillars of the community that engage volunteers who donate their time to advance local progress, support working families, and contribute to lasting community success; and
WHEREAS, Community Action programs are both necessary and popular—delivering effective, high-quality assistance that strengthens community resilience and fosters local prosperity; and NOW, THEREFORE, BE IT PROCLAIMED, I, Mayor Marquette Hawkins, on behalf of the City Council of the City of California City, do hereby proclaim May 2026 as Community Action Month in recognition of the hard work and dedication of all cities in Kern County and the State of California who are a part of Community Action Agencies.

Dated: May 12, 2026
____________________________
Marquette Hawkins, Mayor
PH 1

COUNCIL AGENDA ITEM
May 12, 2025
TO: Honorable Mayor and City Council
FROM: Kenny Cooper, Finance Manager
Joe Barragan, Public Works Director
SUBJECT: A Public Hearing to Approve Resolution 26-3240 Amending/Approving the Engineer’s Report and Resolution 26-3241 Ordering the Levy and Collection of Assessments for the Aspen Mall Landscaping and Lighting District Fiscal Year 2026/2027

BACKGROUND
Attached are the two resolutions that allow the City of California City to levy and collect assessments for the Aspen Mall Landscaping and Lighting District for fiscal year 26/27. This is an annual requirement that pays for the parking lot lighting and landscape maintenance at the mall.

The fund is budgeted to receive $32,000 annually and pays for the common area line, water, and landscaping wall.

RECOMMENDATION
Staff recommends that the City Council conduct the public hearing and adopt the resolutions.

FINANCIAL IMPACT
The $32,000 will be placed as revenue in fund 71-3445 AMMADA Assessments and used for budgeted expenditures as noted.

ENVIRONMENTAL IMPACT
None

ATTACHMENTS

1. Resolution No. 26-3240

2. Resolution No. 26-3241

3. FY26-27 Engineer’s Annual Levy Report

RESOLUTION NO. 26-3240

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AMENDING AND/OR APPROVING THE ENGINEER’S REPORT FOR

THE ASPEN MALL LANDSCAPING AND LIGHTING DISTRICT, FISCAL YEAR 2026/2027
The City Council of the City of California City (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (hereafter referred to as the “Act”), did by previous resolution declared its intention to levy and collect annual assessments for the Aspen Mall Landscaping and Lighting District (hereafter referred to as the “District”), for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 and,
WHEREAS, pursuant to Article 4 of Chapter 1, commencing with Section 22565 of said Act, the City Council ordered the preparation of an Engineer’s Report. Said Report, entitled “Engineer’s Annual Levy Report, Aspen Mall Landscaping and Lighting District, Fiscal Year 2026/2027” (hereafter referred to as the “Report”) has been filed with the City Clerk and presented to the City Council; and,
WHEREAS, the City Council has examined and reviewed the Report and is satisfied with each of the items and documents as set forth therein or as amended and finds that the levy of assessments has been spread in accordance with the benefits received from the improvements and services to be performed, as set forth in said Report.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

Section 1: That the above recitals are true and correct.

Section 2: That the Report as presented, consists of the following:
a) A Description of Improvements.
b) The Annual Budget (Costs and Expenses of Services, Operations and Maintenance).
c) A diagram of the District that identifies the parcels within the District.

d) The District Roll containing the proposed levy of assessments for each Assessor Parcel within the District for Fiscal Year 2026/2027.

Section 3: The Report as presented or as amended is hereby approved and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report.

PASSED, APPROVED, AND ADOPTED this ________ day of _____________, 2026

STATE OF CALIFORNIA)
COUNTY OF KERN) ss.

CITY OF CALIFORNIA CITY)
__________________________________,
Marquette E. Hawkins, Mayor
City of California City
I, Leanndrea Weible, Acting City Clerk of the City of California City, County of Kern, State of California do hereby certify that the foregoing Resolution No. ____________ was regularly adopted by the City Council of said City of California City at a regular meeting of said council held on the ___________ day of _______________, 2026 by the following vote:

Ayes:

Noes:

Absent:

Abstained:
________________________________
John Paul Maier, Deputy City Manager/
City Clerk
City of California City

RESOLUTION NO. 26-3241

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY

ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE ASPEN MALL LANDSCAPING AND LIGHTING DISTRICT, FISCAL YEAR 2026/2027 The City Council of the City of California City (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the City Council has, by previous Resolutions initiated proceedings and declared its intention to levy assessments against parcels of land within the Aspen Mall Landscaping and Lighting District (hereafter referred to as the “District”) for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act"); and, WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council, an Engineer’s Report in connection with the proposed levy and collection upon eligible parcels of land within District, and the City Council did by previous Resolution approve such report; and, WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 to pay the costs and expenses of operating, maintaining and servicing landscaping and appurtenant facilities located within public places in the District.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS:

Section 1: Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer’s Report prepared in connection therewith; the levy and collection of assessments, and considered the oral and written statements, protests and communications made or filed by interested persons.

Section 2: Pursuant to the provisions of California Constitution Article XIIID, a maximum assessment for the District has been established and previously approved by the property owners through an assessment ballot proceeding. The City Council has determined that the proposed assessments presented in the Engineer’s Report are less than or equal to the maximum assessment amount previously approved by the property owners. The City Council further declares that the proposed assessments are spread by the rate (assessment) and method approved by the property owners, and therefore in full

compliance with both the substantive and procedural requirements of the California Constitution.

Section 3: Based upon review (and amendments, as applicable), the City Council hereby finds and determines that the Engineer’s Report sufficiently and accurately describes:
a) The land within the District will receive special benefit by the operation, maintenance and servicing of landscaping, lighting, and appurtenant facilities within the boundaries of the District.
b) The District includes the lands receiving such special benefit. c) The net amount to be assessed upon the lands within the District is apportioned by a formula and method that fairly distributes the net amount among eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services.

Section 4: The Report and assessment as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed.

Section 5: The City Council hereby orders the proposed improvements to be made for Fiscal Year 2026/2027, and the improvements are briefly described as follows: turf, ground cover, shrubs, trees, drainage systems, irrigation systems, lighting, hardscape, and associated appurtenances within the public rights-of-way and specific easements.

Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, landscaping and appurtenant facilities, including repair, removal or replacement of the landscaping or appurtenant facilities; providing for the satisfactory working condition, life, growth, health and beauty of the improvements, including cultivation, irrigation, trimming, spraying, fertilization and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste. Servicing means the furnishing of water and electricity for the irrigation and control of the landscaping or appurtenant facilities.

Section 6: The maintenance, operation and servicing of the landscaping and appurtenant facilities shall be performed pursuant to the Act; and the County Auditor of Kern shall enter on the County Assessment Roll opposite each parcel of land the amount of levy; and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

Section 7: The City Treasurer shall deposit the money representing assessments collected by the County for the District to the credit of a fund for the Aspen Mall Landscaping and Lighting District, and such money shall be expended only for the maintenance, operation and servicing of the appurtenant facilities as described in Section 5.

Section 8: The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027.

Section 9: The City Clerk or their designate is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this ________ day of _____________, 2026.

STATE OF CALIFORNIA)
COUNTY OF KERN) ss.

CITY OF CALIFORNIA CITY)
________________________________
Marquette E. Hawkins, Mayor
City of California City
I, Leanndrea Weible, Acting City Clerk of the City of California City, County of Kern, State of California do hereby certify that the foregoing Resolution No. ____________ was regularly adopted by the City Council of said City of California City at a regular meeting of said council held on the ___________ day of _______________, 2026 by the following vote:

Ayes:

Noes:

Absent:

Abstained:
_______________________________
John Paul Maier, Deputy City Manager/
City Clerk
City of California City
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com

City of California City

Aspen Mall Landscaping and
Lighting District

2026/2027 ENGINEER’S ANNUAL LEVY REPORT

Intent Meeting: April 14, 2026
Public Hearing: May 12, 2026

ENGINEER'S REPORT AFFIDAVIT
for
Aspen Mall Landscaping and Lighting District
City of California City
Kern County, State of California
This Report and the enclosed diagrams showing the exterior boundaries of the District; and any relevant zones therein identify the District Boundaries, budgets, parcels, and assessments to be levied for Fiscal Year 2026/2027, as they existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the Kern County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2026.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of California City
By: ________________________________
Chonney Gano, Project Manager
District Administration Services
By: ________________________________
Tyrone Peter
P.E. # C 81888

17th April

TABLE OF CONTENTS
____________________________________________________________________ I. OVERVIEW .............................................................................................................. 1 A. INTRODUCTION .................................................................................................. 1 B. COMPLIANCE WITH CALIFORNIA CONSTITUTION ........................................ 1 C. DESCRIPTION OF THE DISTRICT AND SERVICES .......................................... 2 D. AUTHORIZED IMPROVEMENTS AND SERVICES (PURSUANT TO THE 1972 ACT) ............................................................................................................................ 3 II. METHOD OF APPORTIONMENT ........................................................................... 4 III. DISTRICT BUDGET ................................................................................................. 9 APPENDIX A — DISTRICT ASSESSMENT DIAGRAM ............................................... 10 APPENDIX B — 2026/2027 COLLECTION ROLL ....................................................... 13 _____________________________________________________________________ 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 1 I. OVERVIEW
A. INTRODUCTION
The City of California City (“City”) annually levies and collects special assessments in order to maintain the improvements within the Aspen Mall Landscaping and Lighting District (“District”), pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code (“1972 Act”). The District was formed in 1995 and provides funding for services required to maintain landscaping and lighting improvements and associated appurtenances located within the District boundaries.

This Engineer’s Annual Levy Report (“Report”) describes the District, any changes to the District and the proposed assessments for Fiscal Year 2026/2027. The proposed assessments are based on the estimated cost to maintain the improvements that provide a special benefit to properties within the District. The District budget identifies the estimated expenditures, deficits, surpluses, revenues, and fund balances used to calculate the annual assessment for properties within the District. Each parcel within the District is assessed proportionately for those improvements provided by the District from which the parcel receives special benefit.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Kern County Assessor’s Office. The Kern County Auditor/Controller uses APNs and specific Fund Numbers, to identify on the tax roll, properties assessed for special district benefit assessments.

Following consideration of public comments and written protests at a Public Hearing, the City Council (“Council”) shall review the Report and may order amendments to the Report or confirm the Report as submitted. Following final approval of the Report, and confirmation of the assessments, the Council may order the levy and collection of assessments for Fiscal Year 2026/2027 pursuant to the 1972 Act and as outlined in the approved Report. In such case, the assessment information will be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in Fiscal Year 2026/2027.

B. COMPLIANCE WITH CALIFORNIA CONSTITUTION
On November 5, 1996, California voters approved Proposition 218, which established specific, substantive and procedural requirements for assessments.

These provisions are now defined in the California State Constitution under Article XIIID, Section 4 (“Article XIIID”).

In Fiscal Year 1997/1998, the City initiated and conducted property owner protest ballot proceedings for the District in compliance with the substantive and procedural requirements of Article XIIID. At the conclusion of the Public Hearing 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 2 on July 1, 1997, property owner ballots returned were tabulated. The tabulation of the ballots indicated that the property owners approved the special benefit assessment for maintaining the improvements within the District. Although the actual assessment amount approved by each property owner varied with their proportionate benefits, the assessment amount approved by the property owners within the District is based on a maximum assessment rate of $4,652.28 per Benefit Unit Factor (see Section II, Method of Apportionment, for details).

C. DESCRIPTION OF THE DISTRICT AND SERVICES
In an effort to enhance and improve the properties, business opportunities and the appearance of the area known as the Aspen Mall, the City’s Redevelopment Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, the District was formed to provide for and ensure the continued maintenance of the improvements after the initial installation and renovation was completed.

The District provides for the maintenance, servicing, operation and administration of landscape and lighting improvements and associated appurtenances located within the public right-of-way and dedicated easements within the District boundaries. Improvements may include but are not limited to: turf, ground cover, shrubs, trees, drainage systems, irrigation systems, lighting, hardscape and associated appurtenances within the public right-of-ways and specific easements.

These improvements include necessary service, operation, administration and maintenance required to keep the above-mentioned improvements in satisfactory condition.

Services provided include operations, administration and maintenance, including necessary labor, material and equipment. These services may include but are not limited to: repair, removal or replacement of all or any part of the improvements; removal of trimmings, rubbish, debris and other solid waste; cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti; and providing for the growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing or treating for disease or damage.

The District consists of the parcels located within the area known as the Aspen Mall, located south of California City Boulevard, north of Bay Avenue, west of 82nd Street and east of Neuralia Road.

The parcels within the District are assessed proportionately for the costs associated with the improvements and services provided through the District that provides a special benefit to each parcel assessed, utilizing the method of apportionment described in Section II of this Report.
2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 3 D. AUTHORIZED IMPROVEMENTS AND SERVICES (PURSUANT TO THE 1972 ACT)
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
 The installation or planting of landscaping.
 The installation or construction of statuary, fountains, and other ornamental structures and facilities.
 The installation or construction of public lighting facilities.  The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities.
 The maintenance or servicing, or both, of any of the foregoing.  The acquisition of any existing improvement otherwise authorized pursuant to this section.

Incidental expenses associated with the improvements including, but not limited to:
 The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;
 The costs of printing, advertising, and the publishing, posting and mailing of notices;
 Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
 Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
 Repair, removal, or replacement of all or any part of any improvement. 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 4  Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
 The removal of trimmings, rubbish, debris, and other solid waste.  The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

II. METHOD OF APPORTIONMENT
Pursuant to the 1972 Act, the costs of the District may be apportioned by any formula or method that fairly distributes the net amount to be assessed among the assessable parcels in proportion to the estimated benefits to be received by each such parcel from the improvements. The benefit formula used for any District should reflect the composition of the parcels and improvements and the services provided, to fairly proportion the costs based on special benefit to each parcel.

The costs associated with the improvements are equitably spread among benefiting parcels within the District, utilizing the method of apportionment described in this Section. The funds collected shall be dispersed and used for only the improvements and services provided within the District.

Each parcel within the District, and the businesses associated with those properties, receive special and distinct benefits from the improvements and activities to be funded through the District assessments. Among the special benefits received by each assessed parcel are increased business opportunities, increased security, aesthetic enhancements of the area and properties and enhanced perception by patrons.

The special benefits of lighting within the District are the convenience, safety and security of property, improvements and goods. Specifically:
 Enhanced deterrence of crime and the aid to police protection.  Increased nighttime safety for patrons and employees.  Improved visibility for pedestrians and motorists.
 Improved ingress and egress to property.
 Reduced vandalism and other criminal acts and damage to improvements or property.
 Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area.
 Increased promotion of business activities and opportunities during nighttime hours.
2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 5 The special benefits associated with landscaped areas within the District are specifically:
 Improved aesthetic appeal of the parking area and nearby parcels.  Improved dust control.
 Enhanced adaptation of the urban environment within the natural environment.
 Improved traffic circulation and parking facilities.
 A positive representation of the businesses within the District.

The preceding special benefits contribute to a special enhancement and desirability of each of the assessed parcels within the District.

It has been determined that the on-going operation and maintenance of the District improvements provide no measurable general benefit to other properties outside the District or directly to the public at large. Therefore, the District improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District in compliance with the substantive requirements of Article XIIID.

The parcels assessed within the District, share in both the cost and the benefits of the improvements. A Benefit Unit Factor (“BUF”) is assigned to each parcel based upon three (3) criteria: current land use, location and associated parcel acreage.

Land Use
Each parcel is given a weighting factor known as a Development Unit Factor (“DUF”), based on the current land use of the parcel. Within the District, four (4) different land use classifications have been identified. Table I lists the four (4) land use classifications along with the DUF applied to each classification:

Table I
Parcel Land Use Classifications
Land Use Classification
Total
Parcels
Development
Unit Factor
Commercial Developed 22 1.0000
Commercial Vacant 4 0.5000
Exempt 5 0.0000
Commercial Condominium 19 0.0526
The Development Unit Factor for the nineteen commercial condominium units is based on 1.0 DUF/19 Units = 0.0526
2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 6 Each parcel is assigned a DUF based on the parcel’s current development (land use). Similar parcels are given a similar weighting factor.

Upon review of all the properties within the District boundary, it has been determined that five (5) parcels should not be assessed and are identified as “Exempt”. These five parcels (203-090-22, 203-090-23, 203-090-30, 203-090-38 and 203-420-01) are non-commercial properties, common areas or possessory interests associated with other parcels within the District. It has been determined that these parcels have little or no utilization of the parking lot and the associated District improvements and do not receive the special benefits that other properties within the District receive from the improvements.

One of the parcels identified as “Exempt” (203-420-01) is a (0.29-acre) common area associated with the nineteen (19) parcels identified as commercial condominiums. These nineteen commercial condominiums actually make up a single commercial building on the common area lot. However, when a parcel map was filed with the County, nineteen separate and distinct APNs were assigned; one for each of the original nineteen suites or units. Since the time the original APNs were assigned by the County, some of the suites (units) have been combined, but the proportional benefit to each parcel is unchanged and property owners whose office or suite encompasses more than one APN receive multiple tax bills. Therefore, the apportionment of special benefit and assessment is based on the original APNs, not the number of actual suites constructed.

Location
In addition to the Development Unit Factor assigned to each parcel for calculating a parcel’s benefit, the location of the parcel within the District has been taken into consideration. After evaluation of the District improvements by City staff, and consideration of property owner’s concerns, a Location Differential Factor (“LDF”) has been applied to parcels based on their location and proximity to the overall improvements. Those parcels that front California City Boulevard and/or the main parking lot and landscaped areas are given a Location Differential Factor of one (1.0). The other parcels are given a twenty-five percent (25%) discount or a 0.75 LDF based on their reduced direct visual benefit from the improvements.

Acreage
The final criteria used to calculate a parcel’s benefit is the size (acreage) of the parcel. It has been determined that each parcel’s overall acreage provides a fair and reasonable comparison of property benefit correlating each parcel’s current and potential development, as well as the overall use and benefit from the area of improvement.

The combination of land use, location and parcel size provides a fair and reasonable depiction of each parcel’s special benefit and proportionate 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 7 assessment. The following formula is used to arrive at each parcel’s benefit referred to as a Benefit Unit Factor (BUF):

Parcel’s DUF x Parcel’s LDF x Parcel’s Acreage = Parcel’s BUF Also stated as:

Development Unit Factor x Location Differential Factor x Acreage = Parcel’s BUF
The total Balance to Levy divided by the total BUF for the District is used to establish a Levy per BUF, as per the following formula:

Total Balance to Levy / Total BUF in the District = Levy per BUF The Levy per BUF multiplied by each parcel’s individual BUF represents the parcel’s levy amount (assessment). The following formula outlines the levy calculation applied to each parcel:

Parcel BUF x Levy per BUF = Parcel Levy Amount
The following table (Table II) provides sample levy calculations for various property types in the District based on the maximum assessment rate per BUF:

Table II
Sample Maximum Levy Calculations
Land Use
Classification
Development
Unit Factor
(DUF)
Location
Differential
Factor (LDF)
Parcel
Acreage
Benefit Unit
Factor (BUF)
Benefit Unit
Factor (BUF)
Maximum
Rate
Maximum
Levy Amount
Commercial Developed 1.0000 X 1.00 x 0.29 = 0.2900 0.2900 x $4,652.28 = $1,349.16 Commercial Developed 1.0000 x 0.75 x 0.29 = 0.2175 0.2175 x $4,652.28 = $1,011.88 Commercial Vacant 0.5000 x 1.00 x 0.29 = 0.1450 0.1450 x $4,652.28 = $674.58 Commercial Vacant 0.5000 x 0.75 x 0.29 = 0.1088 0.1088 x $4,652.28 = $506.18 Exempt 0.0000 x 1.00 x 0.29 = 0.0000 0.0000 x $4,652.28 = $0.00 Commercial Condominiums 0.0526 x 1.00 x 0.29 = 0.0153 0.0153 x $4,652.28 = $71.16

2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 8 Pursuant to the provisions of the California Constitution Article XIIID, a maximum assessment rate of $4,652.28 per BUF was approved by the property owners through a protest ballot proceeding in Fiscal Year 1997/1998. The proposed assessment rate calculated each Fiscal Year is based on an estimated budget; and the proposed rate applied each year may be less than or equal to the maximum rate. A proposed assessment rate, greater than the maximum rate, would be considered an increased assessment and require property owner approval through protest ballot proceedings.
2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 9 III. DISTRICT BUDGET
Table III
2026/2027 District Budget

BUDGET ITEMS TOTAL DISTRICT

DIRECT COSTS
Maintenance $1,000.00
Water Service 3,300.00
Utilities Electricity 23,000.00
Contracts 6,000.00
Miscellaneous Expenses 0.00
Capital Improvement Expenditures 0.00
Direct Costs (Subtotal) $33,300.00

ADMINISTRATION COSTS
District Administration $4,900.00
County Administration Fee 158.60
Administration Costs (Subtotal) $5,058.60
Total Direct and Admin. Costs $38,358.60

LEVY ADJUSTMENTS
Reserve Fund - Collection/(Transfer) ($6,789.70)
General Fund/Other Revenue Sources-(Contribution) 0.00
Loans - Repayment/(Advances) 0.00
Levy Adjustment (Subtotal) ($6,789.70)
Balance to Levy $31,568.90

DISTRICT STATISTICS
Total Parcels 50.00
Total Parcels Levied 45.00
Total Acreage 14.12
Total Acreage Levied (1) 13.20
Total Benefit Unit Factor (BUF) (2) 6.7858
Levy Per BUF (3) $4,652.20
Approved Maximum Assessment per BUF (4) $4,652.28

FUND BALANCE INFORMATION
Beginning Reserve Fund Balance $181,000.00
Reserve Fund Collection (6,789.70)
Estimated Ending Reserve Fund Balance $174,210.30
(1) Total Acreage levied does not include Exempt parcels. (2) Slight variance in Total Benefit Unit Factor (BUF) due to rounding. (3) Slight variance in Levy Per BUF due to rounding.
(4) Slight variance in Maximum Assessment per BUF due to rounding. 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 10 APPENDIX A — DISTRICT ASSESSMENT DIAGRAM
The supporting Assessor’s Parcel Maps outlining the District boundaries are shown on the following pages. These maps, in connection with the Assessment Roll in Appendix B, constitute the District Assessment Diagram for Fiscal Year 2026/2027. 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 11 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 12 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 13 APPENDIX B — 2026/2027 COLLECTION ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor’s Map for the year in which this Report is prepared. Nonassessable lots or parcels include parcels within the boundaries of the District that currently do not benefit from the improvements and are identified as “Exempt” or “SBE”.

A listing of parcels within the District along with the assessment amount for Fiscal Year 2026/2027 is included in the following table.

Table IV
2026/2027 Assessments and Parcel Listing

APN LAND USE DUF LDF ACREAGE BUF LEVY
203-090-01-00 Commercial Developed 1.0000 1.0000 0.84 0.8400 $3,907.90 203-090-02-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-03-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-04-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-05-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-07-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-08-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-12-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-13-00 Vacant Commercial/Parking 0.5000 1.0000 0.29 0.1450 674.58 203-090-14-00 Vacant Commercial/Parking 0.5000 1.0000 0.29 0.1450 674.58 203-090-15-00 Commercial Developed 1.0000 1.0000 0.38 0.3800 1,767.86 203-090-16-00 Commercial Developed 1.0000 0.7500 0.28 0.2100 976.96 203-090-17-00 Commercial Developed 1.0000 0.7500 0.21 0.1575 732.72 203-090-20-00 Commercial Developed 1.0000 0.7500 0.21 0.1575 732.72 203-090-21-00 Commercial Developed 1.0000 0.7500 0.21 0.1575 732.72 203-090-22-00 Exempt 0.0000 0.0000 0.21 0.0000 0.00
203-090-23-00 SBE 0.0000 0.0000 0.21 0.0000 0.00
203-090-24-00 Vacant Commercial/Parking 0.5000 0.7500 0.21 0.0788 366.58 203-090-28-00 Vacant Commercial/Parking 0.5000 0.7500 0.21 0.0788 366.58 203-090-29-00 Commercial Developed 1.0000 0.7500 0.21 0.1575 732.72 203-090-30-00 Exempt 0.0000 0.0000 0.21 0.0000 0.00
203-090-33-00 Commercial Developed 1.0000 0.7500 0.20 0.1500 697.84 203-090-34-00 Commercial Developed 1.0000 0.7500 0.20 0.1500 697.84 203-090-35-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 2026/2027 City of California City, Aspen Mall Landscaping and Lighting District Page 14

APN LAND USE DUF LDF ACREAGE BUF LEVY
203-090-36-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-37-00 Commercial Developed 1.0000 1.0000 0.29 0.2900 1,349.16 203-090-38-00 Exempt 0.0000 0.0000 0.00 0.0000 0.00
203-090-39-00 Commercial Developed 1.0000 0.7500 0.32 0.2400 1,116.54 203-090-40-00 Commercial Developed 1.0000 0.7500 0.10 0.0750 348.92 203-090-41-00 Commercial Developed 1.0000 0.7500 0.63 0.4725 2,198.20 203-420-01-00 Exempt 0.0000 0.0000 0.29 0.0000 0.00
203-420-02-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-03-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-04-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-05-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-06-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-07-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-08-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-09-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-10-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-11-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-12-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-13-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-14-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-15-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-16-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-17-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-18-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-19-00 Commercial Condominium 0.0526 1.0000 0.29 0.0153 71.16 203-420-20-00 Commercial Condominium 0.0526 1.0000 0. 29 0.0153 71.16 Totals: 6.7858 $31,568.90
CC 1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Honorable Mayor and City Council
FROM: Kenny Cooper, Finance Manager
SUBJECT: Approve City Check Register dated 04/24/2026-05/07/2026 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.

CITY OF CALIFORNIA CITY
April 28, 2026
Marquette Hawkins
MAYOR
Jim Creighton

MAYOR PRO TEM
Della Clark
Ronald Smith

COUNCIL MEMBERS
Sean Grayson

CITY MANAGER

DRAFT MINUTES

CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
REGULAR MEETING TUESDAY, APRIL 28, 2026 @ 5:00 PM

COUNCIL CHAMBERS
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505 &

VIA ZOOM
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/87988480756
Meeting ID: 879 8848 0756
Passcode: 288834

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 Webinar 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 the City Clerk for a request to speak, and the City Clerk will unmute you.
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
April 28, 2026
The 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 4:00 PM

CALL TO ORDER
MAYOR HAWKINS CALLED THE MEETING TO ORDER AT 4:00 P.M.

ROLL CALL
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, Mayor Hawkins

ALL PRESENT

ADOPT THE AGENDA
MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR HAWKINGS, CARRIED 3-1 (MAYOR

PRO TEM CREIGHTON VOTING NO), TO APPROVE THE AGENDA AND REMOVE ANY ITEMS RELATED TO ESA AND DIRECT THE CITY ATTORNEY’S OFFICE TO REVIEW ANY POTENTIAL COERCIAN.

MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR HAWKINS, CARRIED 4-0, TO TABLE

ALL AGENDA ITEMS THAT REQUIRE SPENDING DUE TO A LACK OF A FINANCE REPORT AND

THE FINANCIAL CRISIS OF THE CITY AND TO DIRECT STAFF TO HOLD A SPECIAL MEETING WITH A FINANCIAL REPORT AND CONSIDER THE TABLED ITEMS.

MOTION BY COUNCIL MEMBER SMITH TO TABLE CB 1 AND NB 1. MOTION FAILED FOR LACK OF A SECOND.

MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR HAWKINS, CARRIED 4-0, TO CONSIDER CB 1 FOR DISCUSSION ONLY.

MOTION BY COUNCIL MEMBER SMITH, SECOND BY COUNCIL MEMBER CLARK, CARRIED 4-0, TO TABLE NB 1 FOR THE SPECIAL MEETING FOR FURTHER CONSIDERATION.

CITY ATTORNEY ANNOUNCED IN CONCURRENCE WITH THE RECEIVED MOTIONS ONE CLOSED SESSION ITEM MUST BE REMOVED FROM THE AGENDA. MAYOR PRO TEM

CREIGHTON REQUESTED THAT THE CITY COUNCIL RETURN TO CLOSED SESSION AFTER THE OPEN SESSION FOR FURTHER TIME AND DISCUSSION.

PUBLIC COMMENT
MAYOR HAWKINS CALLED FOR PUBLIC COMMENT. NO ONE SPOKE.

CLOSED SESSION
CS 1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2):

Three cases.

CS 2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Government Code Section 54956.9(d)(1) – Two cases

CITY OF CALIFORNIA CITY
April 28, 2026
Song et al. v. City of California City, Case No. BCV-22-103326-BCB Boston, et al. v. City of California City, Case Bo. BCV-22-101398-BCB

REPORT OUT OF CLOSED SESSION
CITY ATTORNEY PONTO REPORTED OUT- DIRECTION WAS GIVEN FOR CS 2 WITH RESPECT TO

ONE ITEM, AND COUNSEL WAS RECEIVED, AND THERE WERE NO FURTHER REPORTABLE ACTIONS.

CITY COUNCIL CONVENES TO REGULAR MEETING
REGULAR MEETING 5:00 PM

CALL TO ORDER
MAYOR HAWKINS CALLED THE MEETING AT 5:02 P.M.

PLEDGE OF ALLEGIANCE / INVOCATION

MAYOR HAWKINS LED THE PLEDGE OF ALLEGIANCE, AND PASTOR MARK GOODELL PROVIDED THE INVOCATION.

ROLL CALL –
Councilmembers: Clark, Smith, Mayor Pro Tem Creighton, and Mayor Hawkins

ALL PRESENT

DEPARTMENT REPORTS
Public Works
Police Department
Treasurer
City Manager
City Clerk
Code Enforcement
MAYOR HAWKINS ASKED FOR PUBLIC COMMENT: J.M. POWERS, DUANE VASQUEZ, AND ROBBIE CORDES SPOKE.

CITY CLERK REPORTS/RECEIVED COMMUNICATIONS
J.M. Powers – April 20, 2026

CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS
MAYOR HAWKINS ASKED FOR PUBLIC COMMENT: DUANE VASQUEZ, MARK GOODELL, REBECCA VASQUEZ, AND TERESA NELSON SPOKE.

PUBLIC BUSINESS FROM THE FLOOR / PUBLIC COMMENT
MAYOR HAWKINS ASKED FOR PUBLIC COMMENT: J.M. POWERS, TAMI JOHNSON, AL HUDSON, SHAWN BRADLEY SPOKE.

PRESENTATIONS
P 1. Presentation of a Proclamation of Child Abuse Prevention Month to the Kern County Public Health Department

MAYOR HAWKINS PRESENTED THE PROCLAMATION FOR CHILD ABUSE PREVENTION MONTH.

CONSENT CALENDAR
CONSENT CALENDAR ITEMS WERE TABLED, WITH THE EXCEPTION OF CC 2 FOR SEPARATE

CITY OF CALIFORNIA CITY
April 28, 2026
CONSIDERATION.

CC 1. Approve City Check Register dated 03/06/26 – 03/19/26 ITEM WAS TABLED.

CC 2. Staff Report: Sean Grayson, City Manager
Subject: Grants and Contracts by Department: Cannabis, Off-Highway Vehicle (OHV), Information Technology, City Attorney, Fire Department, and Tierra Del Sol (TDS) Golf Course Recommendation: It is recommended that the City Council receive and file the information. The information will be maintained by the City Clerk in a virtual and physical grants and contracts binder.

MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR PRO TEM CREIGHTON, CARRIED 4-0, TO RECEIVE AND FILE THE GRANTS AND CONTRACTS REPORT.

CC 3. Staff Report: Sean Grayson, City Manager & Shannon Hayes, Acting Public Safety Director Subject: 1) Approval of an Updated Job Description for the Position of Community Service Officer II (CSO II); and 2) Authorization to Recruit for and Fill the Current CSO II Vacancy
Recommendation: It is recommended that the City Council approve the job description and authorize the filling of the CSO II vacancy.

ITEM WAS TABLED.

CONTINUED BUSINESS
CB 1. Staff Report: Sean Grayson, Interim City Manager
Subject: 1) Adoption of a Successor Agency Resolution 2026-3226 Declaring Certain Property Owned by the Successor Agency to be Exempt Surplus Land Pursuant to the Surplus Land Act Because it is not Necessary for the Successor Agency’s Agency Use and the Successor Agency Desires to Transfer Such Property to the County of Kern as a Local Agency to Agency Transfer Pursuant to Government Code Section 54221(f)(1)(D) and Section 103(c)(5) of the California Department of Housing and Community Development’s Updated Surplus Land Act Guidelines; Finding that Such Declaration is Exempt from Environmental Review under California Environmental Quality Act; and Taking Related Actions; and 2) Authorize the City Manager to Execute the Grant Deed for the Property Transferring it to Kern County Recommendation: Staff recommends that the City Council, acting as the Successor Agency Board, adopt the resolution and authorize the City Manager to execute the grant deed.

MAYOR HAWKINS ASKED FOR PUBLIC COMMENT. THE FOLLOWING RESIDENTS SPOKE:

ROBBIE CORDES AND JOHN ELMES.

CITY MANAGER GRAYSON PRESENTED THE REPORT.

CB 2. Staff Report: Joe Barragan, Public Works Director ` Subject: 1) Adopt Resolution 2026-3239 to Award a Contract to Willdan in an Amount of $68,785 Accepting Their Proposal to the Request for Proposal (RFP) for a Water and Wastewater Rate Study; and 2) Authorize the City Manager to Execute the Contract and any Related Documents
Recommendation: Staff recommends that the City Council approve the resolution to have the City enter into an agreement with Wildan Financial Services to do the Water and Wastewater Rate Study for an amount not to exceed $68,785 and authorize the City Manager to execute any needed documents ITEM WAS TABLED.

CB 3. Staff Report: Joe Barragan, Public Works Director Subject: Well 15A Rehabilitation Project Update

CITY OF CALIFORNIA CITY
April 28, 2026
Recommendation: It is recommended that the City Council receive the report and provide any direction on the topic.

ITEM WAS TABLED.

NEW BUSINESS
NB 1. Staff Report: Sean Grayson, City Manager & Joe Barragan, Public Works Director ` Subject: 1) Receive the City Engineer’s List of Proposed SDI Improvements for Fiscal year 2026/27; 2) Receive any SDI Lot Owner Proposed SDI Improvement; 3) Direct the City Manager to Transmit the City’s List and any Property Owner Proposed Project to the SDI Committee; and 4) Request the SDI Committee and City Manager Meet and Make any Recommendations to the City Council Concerning the Construction of SDI Improvements Recommendation: It is recommended that the City Council receive the City’ Engineer’s list of proposed SDI Improvements and any lot owner proposals and request the SDI Committee meet with the City Manager to make any needed recommendations to the City Council

ITEM WAS TABLED
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.

MAYOR HAWKINS RECESSED THE MEETING AND THE CITY COUNCIL RETURNED TO CLOSED SESSION AT 6:33 P.M.

CITY MANAGER GRAYSON ANNOUNCED THAT THERE WERE NO REPORTABLE ACTIONS FROM THE CLOSED SESSION.

ADJOURNMENT
MAYOR HAWKINS ADJOURNED THE MEETING AT 7:06 P.M.

CITY OF CALIFORNIA CITY
May 4, 2026
Marquette Hawkins
MAYOR
Jim Creighton

MAYOR PRO TEM
Della Clark
Ronald Smith

COUNCIL MEMBERS
Sean Grayson

CITY MANAGER

DRAFT MINUTES

CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY
SPECIAL MEETING TUESDAY, May 4, 2026 @ 5:00 PM

COUNCIL CHAMBERS
21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505 &

VIA ZOOM
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/87988480756
Meeting ID: 879 8848 0756
Passcode: 288834

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 Webinar 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 the City Clerk for a request to speak, and the City Clerk will unmute you.
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
May 4, 2026
The 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 4:00 PM

CALL TO ORDER
MAYOR HAWKINS CALLED THE MEETING TO ORDER AT 4:03 P.M.

ROLL CALL
Councilmembers: Clark*, Smith, Mayor Pro Tem Creighton, Mayor Hawkins

ALL PRESENT
*COUNCIL MEMBER CLARK REQUESTED TO PARTICIPATE REMOTELY DUE TO THE NEED FOR CHILDCARE. NO ONE IN THE ROOM WAS PRESENT OVER THE AGE OF 18. MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR PRO TEM CREIGHTON, CARRIED 3-0, TO APPROVE COUNCIL MEMBER CLARK’S REQUEST TO PARTICIPATE REMOTELY.

ADOPT THE AGENDA
MAYOR PRO TEM CREIGHTON, SECOND BY COUNCILMEMBER CLARK, CARRIED 4-0.

PUBLIC COMMENT
MAYOR HAWKINS CALLED FOR PUBLIC COMMENT. NO ONE SPOKE.

CLOSED SESSION
CS 1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d(2):

Two cases.

REPORT OUT OF CLOSED SESSION

CITY ATTORNEY PONTO REPORTED OUT- DIRECTION WAS GIVEN, AND COUNSEL WAS RECEIVED, AND THERE WERE NO FURTHER REPORTABLE ACTIONS.

CITY COUNCIL CONVENES TO REGULAR MEETING
REGULAR MEETING 5:00 PM

CALL TO ORDER
MAYOR HAWKINS CALLED THE MEETING AT 5:01 P.M.

PLEDGE OF ALLEGIANCE / INVOCATION
MAYOR HAWKINS LED THE PLEDGE OF ALLEGIANCE. COUNCIL MEMBER SMITH PROVIDED THE INVOCATION.

ROLL CALL –
Councilmembers: Clark*, Smith, Mayor Pro Tem Creighton, Mayor Hawkins

ALL PRESENT

CITY OF CALIFORNIA CITY
May 4, 2026
*COUNCIL MEMBER CLARK PARTICIPATED REMOTELY VIA ZOOM TELECONFERENCE.

CONSENT CALENDAR

COUNCIL MEMBER SMITH PULLED ALL ITEMS FOR DISCUSSION AND SEPARATE CONSIDERATION.

MAYOR HAWKINS ASKED FOR PUBLIC COMMENT, THE FOLLOWING MEMBERS OF THE PUBLIC SPOKE: J.M. POWERS AND ROBBIE CORDES.

CC 1. Approve City Check Register dated 03/06/26 – 03/19/26 MOTION BY COUNCIL MEMBER SMITH, SECOND BY MAYOR HAWKINS, CARRIED 4-0, TO APPROVE THE CHECK REGISTER, WITH THE STRIKE THROUGH OF CHECK #202600384 FOR

DIAMOND IT AND TO DRAFT A LETTER TO DIAMOND IT FOR FAILURE TO PERFORM DUTIES,

AND DIRECT THE CITY ATTORNEY TO EVALUATE WHAT HAS BEEN COMPLETED AND NOT COMPLETED TO OFFSET THE COSTS INCURRED BY THE CITY.

CC 2. Staff Report: Sean Grayson, City Manager
Subject: Grants and Contracts by Department: Cannabis, Off-Highway Vehicle (OHV), Information Technology, City Attorney, Fire Department, and Tierra Del Sol (TDS) Golf Course Recommendation: It is recommended that the City Council receive and file the information. The information will be maintained by the City Clerk in a virtual and physical grants and contracts binder.

MOTION BY MAYOR HAWKINS, SECOND BY MAYOR PRO TEM CREIGHTON, CARRIED 3-0-0-1 (COUNCIL MEMBER SMITH ABSTAINED).

CC 3. Staff Report: Sean Grayson, City Manager & Shannon Hayes, Acting Public Safety Director Subject: 1) Approval of an Updated Job Description for the Position of Community Service Officer II (CSO II); and 2) Authorization to Recruit for and Fill the Current CSO II Vacancy
Recommendation: It is recommended that the City Council approve the job description and authorize the filling of the CSO II vacancy.

MOTION BY MAYOR HAWKINS, SECOND BY MAYOR PRO TEM CREIGHTON, CARRIED 2-2 (COUNCIL MEMBERS CLARK AND SMITH VOTING NO) TO APPROVE STAFF RECOMMENDATION.

MOTION BY MAYOR PRO TEM CREIGHTON, SECOND BY MAYOR HAWKINS, CARRIED 3-1 (COUNCIL MEMBER SMITH VOTING NO), TO APPROVE THE POSITION AND NOT THE BUDGET AMENDMENT.

CONTINUED BUSINESS
CB 1. Staff Report: Sean Grayson, Interim City Manager
Subject: 1) Adoption of a Successor Agency Resolution 2026-3226 Declaring Certain Property Owned by the Successor Agency to be Exempt Surplus Land Pursuant to the Surplus Land Act Because it is not Necessary for the Successor Agency’s Agency Use and the Successor Agency Desires to Transfer Such Property to the County of Kern as a Local Agency to Agency Transfer Pursuant to Government Code Section 54221(f)(1)(D) and Section 103(c)(5) of the California Department of Housing and Community Development’s Updated Surplus Land Act Guidelines; Finding that Such Declaration is Exempt from Environmental Review under California Environmental Quality Act; and Taking Related Actions; and 2) Authorize the City Manager to Execute the Grant Deed for the Property Transferring it to Kern County Recommendation: Staff recommends that the City Council, acting as the Successor Agency Board, adopt the resolution and authorize the City Manager to execute the grant deed.

MAYOR HAWKINS NOTED THAT CB 1 WAS TABLED FOR A FUTURE CITY COUNCIL MEETING.

CITY OF CALIFORNIA CITY
May 4, 2026
CB 2. Staff Report: Joe Barragan, Public Works Director ` Subject: 1) Adopt Resolution 2026-3239 to Award a Contract to Willdan in an Amount of $68,785 Accepting Their Proposal to the Request for Proposal (RFP) for a Water and Wastewater Rate Study; and 2) Authorize the City Manager to Execute the Contract and any Related Documents
Recommendation: Staff recommends that the City Council approve the resolution to have the City enter into an agreement with Wildan Financial Services to do the Water and Wastewater Rate Study for an amount not to exceed $68,785 and authorize the City Manager to execute any needed documents

MAYOR HAWKINS ASKED FOR PUBLIC COMMENT, THE FOLLOWING MEMBERS OF THE PUBLIC SPOKE: J.M. POWERS AND DUANE VASQUEZ.

MOTION BY MAYOR PRO TEM CREIGHTON, SECOND BY MAYOR HAWKINS, CARRIED 3-1 (COUNCIL MEMBER SMITH VOTING NO), TO APPROVE THE RESOLUTION TO HAVE THE CITY

ENTER INTO AN AGREEMENT WITH WILDAN FINANCIAL SERVICES TO DO THE WATER AND WASTEWATER RATE STUDY FOR AN AMOUNT NOT TO EXCEED $68,785 AND AUTHORIZE THE CITY MANAGER TO EXECUTE ANY NEEDED DOCUMENTS.

CB 3. Staff Report: Joe Barragan, Public Works Director Subject: Well 15A Rehabilitation Project Update
Recommendation: It is recommended that the City Council receive the report and provide any direction on the topic.

MAYOR HAWKINS NOTED THAT CB 3 WAS TABLED FOR A FUTURE CITY COUNCIL MEETING.

NEW BUSINESS
NB 1. Staff Report: Sean Grayson, City Manager & Joe Barragan, Public Works Director ` Subject: 1) Receive the City Engineer’s List of Proposed SDI Improvements for Fiscal year 2026/27; 2) Receive any SDI Lot Owner Proposed SDI Improvement; 3) Direct the City Manager to Transmit the City’s List and any Property Owner Proposed Project to the SDI Committee; and 4) Request the SDI Committee and City Manager Meet and Make any Recommendations to the City Council Concerning the Construction of SDI Improvements Recommendation: It is recommended that the City Council receive the City’ Engineer’s list of proposed SDI Improvements and any lot owner proposals and request the SDI Committee meet with the City Manager to make any needed recommendations to the City Council

MAYOR HAWKINS ASKED FOR PUBLIC COMMENT, THE FOLLOWING MEMBER OF THE PUBLIC SPOKE: ROBBIE CORDES.

BY CONSENSUS, THE CITY COUNCIL PROVIDED DIRECTION TO THE CITY MANAGER THAT SDI

MATTERS MUST BE IN COMPLIANCE WITH THE CALIFORNIA CITY MUNICIPAL CODE AS SOON AS POSSIBLE.

ADJOURNMENT

MOTION BY MAYOR PRO TEM CREIGHTON, SECOND BY COUNCIL MEMBER CLARK, CARRIED 4-0, TO ADJOURN THE CITY COUNCIL MEETING.

MAYOR HAWKINS ADJOURNED THE MEETING AT 6:16 P.M.

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4898-7406-7085 v1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Mayor and City Council
FROM: Joe Barragan, Public Works Director
SUBJECT: NOTICE OF COMPLETION – SB1 Kenniston Street
Rehabilitation Project from Cal-City Blvd. to Walpole Ave.

BACKGROUND/ DISCUSSION:

Senate Bill 1 (SB 1), the Road Repair and Accountability Act (RMRA) of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address significant multi-modal transportation funding shortfalls statewide.

On January 13, 2026, Griffith Company received a $252,444.00 contract from the City Council for the SB1 Kenniston St Rehabilitation Project from Cal-City Blvd to Walpole Ave. The project cost increased by $30,514.28 to $282,958.28 due to additional paving and repairs at Kenniston St and Xavier Ave caused by damaged asphalt and old water leaks. This increase remains within SB1 funds allocated for the project.

On March 5, 2026, the Engineering Department informed Public Works that the project met all plan and specification requirements.

The proposed Resolution would authorize acceptance of the completed work on the Project, direct the City Clerk to file a Notice of Completion for the Project with the Kern County Recorder, and authorize payment of the retention funds owed to Griffith Company for $14,147.92.

FISCAL IMPACT:

The proposed Resolution would result in the expenditure of a total of $282,958.28 in SB1 funds.

Funding: SB1 Funds $ 282,958.28
Local Match $ 0
RECOMMENDATION:

It is recommended that the City Council Motion to approve Resolution 26-3243 authorizing acceptance of completed work by Griffith Company for SB1 Kenniston St Rehabilitation Project from Cal-City Blvd to Walpole Ave., directing the City Clerk to file Notice of Completion with Kern County Recorder, and authorize payment of retention funds.

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ATTACHMENTS:

1. Resolution 26-3243

2. Notice of Completion

3. Before and After Pictures
RESOLUTION NO. 26-3243

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA

CITY, CALIFORNIA AUTHORIZING ACCEPTANCE OF COMPLETED
WORK BY GRIFFITH COMPANY FOR SB1 KENNISTON ST

REHABILITATION PROJECT FROM CAL-CITY BLVD TO WALPOLE

AVE, DIRECTING THE CITY CLERK TO FILE A NOTICE OF

COMPLETION WITH THE KERN COUNTY RECORDER, AND

AUTHORIZING PAYMENT OF RETENTION FUNDS
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act (RMRA) of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, On January 13, 2026, Griffith Company received a $252,444.00 contract from the City Council for the SB1 Kenniston St Rehabilitation Project from CalCity Blvd to Walpole Ave. The project cost increased by $30,514.28 to $282,958.28 due to additional paving and repairs at Kenniston St and Xavier Ave caused by damaged asphalt and old water leaks. This increase remains within SB1 funds allocated for the project: and
WHEREAS, On March 5, 2026, the Engineering Department informed Public Works that the project met all plan and specification requirements.

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 hereby authorizes acceptance of completed work for the Project by Griffith Company and authorizes payment of retention funds due to Griffith in the amount of $14,147.92.

SECTION 3: The City Council hereby directs the City Clerk to record a Notice of Completion for the Project with the Kern County Recorder.

SECTION 4: The City Clerk shall certify to the passage and adoption of this Resolution.

SECTION 5: This Resolution becomes effective immediately upon approval by the City Council.

PASSED, APPROVED, AND ADOPTED on this 12th day of May 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Marquette E. Hawkins
Mayor
ATTEST: APPROVED AS TO FORM:

John Paul Maier, MBA, MMC Victor M. Ponto
City Clerk City Attorney
STATE OF CALIFORNIA }
COUNTY OF KERN } SS
CITY OF CALIFORNIA CITY }
I, John Paul Maier, City Clerk of the City of California City, do hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of California City on the _________ day of ________________ 2026, by the following vote:

John Maier
City Clerk
City of California City
SB1 Kenniston St Rehabilitation Project from Cal-City Blvd to Walpole Ave.

SB1 Funded Project

BEFORE AND AFTER PICTURES
Looking South on Kenniston St
Looking North on Kenniston Street
Xavier Ave at Kenniston intersection looking South-West New ADA curb ramps and sidewalk
Additional excavation work at Xavier Ave intersection
Kenniston St Rehabilitation Project
From Cal-City Blvd to Walpole Ave
PROJECT FUNDED BY SB 1: The Road Repair and Accountability Act of 2017 FY 2024-2025
Approximately; 1,300 ft of road rehabilitation

KENNISTON ST

WALPOLE AVE

CAL-CITY BLVD
Recording Requested By:

FOR DE BENEFIT OF:

CITY OF CALIFORNIA CITY
When Recorded Mail to:

City of California City
21000 Hacienda Blvd.

California City, CA 93505

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is OWNER or Agent of the OWNER of the interest or estate stated below in the property hereinafter described.

2. The FULL NAME of the OWNER is City of California City

3. The FULL ADDRESS of the OWNER is 21000 Hacienda Blvd. California City, CA 93505

4. The NATURE OF THE INTEREST or ESTATE of the undersigned is: In Fee. (if other than fee, Strike "In Fee" and insert, for example, "Purchaser under contract of purchase," or "Lessee.")

5. The FULL NAMES and FULL ADDRESSES of ALL PERSONS, if any, WHO HOLD SUCH INTEREST or ESTATE with the undersigned as JOINT TENANTS IN COMMON are:

Names Addresses

6. The full names and full addresses of the predecessors in interest of the undersigned if the property was transferred after the commencement of the work of improvement herein referred to:

Names Addresses

7. A work of improvement on the property hereinafter described was COMPLETED March 5, 2026

8. The work of improvement completed is described as follows: SB1 Kenniston St Rehabilitation Project From Cal-City Blvd to Walpole Ave

9. The NAME OF THE ORIGINAL CONTRACTOR, if any, for such work of improvement is: Griffith Company

10. The street address of said property is: Between Cal-City Blvd and Walpole Ave. in California City

11. The property on which said work of improvement was completed is in the City of California City, County of Kern, State of California, and is described as follows:

Cold planing three inches from the existing roadway surface, installing a hot mix asphalt overlay, constructing curb ramps, and implementing traffic striping, pavement markings, and signage. (Mayor)
Date Marquette E. Hawkins – City Mayor
Verification for INDIVIDUAL owner
I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the owner of the aforesaid interest or estate in the property described in the above notice; that I have said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.

Date and Place Signature of Owner named in paragraph 2
Verification for NON-INDIVIDUAL owner: I, the undersigned, declare under penalty of perjury under the laws of the State of California that I am the City Mayor of the aforesaid interest or estate in the property described in the above notice; that I have read the said notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct. - City of California City (Mayor)
Date and Place Marquette E. Hawkins – City Mayor
SUBSCRIBED AND SWORN TO before me on
John Maier, City Clerk
City of California City Revised 9/22/2017
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4898-7406-7085 v1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: 1) Approval of a Contract with Technic Business Solutions for the Cybersecurity Framework Request for Proposals in an Amount Not-To-Exceed $250,000; and 2) Authorize the City Manager to Execute the Contract
BACKGROUND/ DISCUSSION:

On May 27, 2025 the City Council accepted the State Local Cybersecurity Grant Program (SLCGP) from the United States Department of Homeland Security (DHS) Administered through the California Office of Emergency Services (CalOES). Staff has worked with CalOES to refine the scope of the grant to include needed cybersecurity upgrades to City servers and firewalls. This replaces the workstations previously called for in the grant application.

On April 10, 2026, the City released a Request for Proposals (RFP) for C City of California City - Cybersecurity Framework. The City received one submission in response to the RFP by the response deadline of April 24, 2026 from Technic Business Solutions. Staff from the City and Capitol Advocacy Group (CAP) reviewed the proposal and found it to be responsive and responsible.

The cost for Technic Business Solutions to provide the required services is a range of $216,000 to $226,000 with variations potentially from the cost of equipment. The grant is for $250,000 and staff requests authorization up to $250,000 to receive the full scope of the grant as approved.

FISCAL IMPACT:

The cost of the contract will be not-to-exceed $250,000 to be paid from and reimbursed to Fund #10-4155-310, General Government: Professional Services RECOMMENDATION:

It is recommended that the City Council approve a contract with Technic Business Solutions for the Cybersecurity Framework RFP and authorize the City Manager to execute a contract.

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ATTACHMENTS:

Technic Business Solutions Bid
Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions

TECHNIC BUSINESS SOLUTIONS
Managed IT, Cybersecurity & Infrastructure Services

PROPOSAL IN RESPONSE TO
Request for Quotes: Cybersecurity Framework
State Local Cybersecurity Grant Program (SLCGP)
RFQ No. SLCGP-0001-2025 | City of California City, Kern County, CA

SUBMITTED BY
Technic Business Solutions
Managed IT & Cybersecurity Services
California | www.technic.net
[email protected]

SUBMITTED TO
City of California City
Sean Grayson, Interim City Manager
21000 Hacienda Blvd, California City, CA 93505
[email protected]
Submission Date: April 13, 2026 | Submission Deadline: April 24, 2026 | Total Proposed Value: $237,500 Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 1 — COVER LETTER
April 13, 2026
Sean Grayson, Interim City Manager
City of California City
21000 Hacienda Blvd
California City, CA 93505
Re: RFQ No. SLCGP-0001-2025 — Cybersecurity Framework Services Dear Mr. Grayson,
Technic Business Solutions is pleased to submit this proposal in response to the City of California City's Request for Quotes for Cybersecurity Framework Services under the State Local Cybersecurity Grant Program (SLCGP). As a Managed Security Service Provider (MSSP) with deep experience serving critical infrastructure operators, we are uniquely positioned to deliver the full scope of services outlined in RFQ No. SLCGP-0001-2025.

We understand the City's history — the May 2021 ransomware attack underscored how critical foundational cybersecurity investments are for a community of California City's size and profile. Our proposal directly addresses the capability gaps identified by that event, providing a comprehensive, NIST CSF 2.0-aligned program that also meets the stringent requirements of CJIS Security Policy, California SLCGP guidelines, and applicable federal frameworks.

Technic Business Solutions brings the following core strengths to this engagement:
• Proven cybersecurity experience and critical infrastructure clients subject to CJIS compliance.
• End-to-end managed security services capability — from vulnerability management and SIEM/logging through Zero Trust architecture, MFA, and vCISO advisory. • Hands-on infrastructure expertise covering server deployment, enterprise storage, and nextgeneration firewall configuration aligned with the specific hardware specified in the RFQ. • Established vendor relationships with Dell Technologies and Fortinet enabling competitive pricing and certified installation services.
• Active California business registration and deep familiarity with state and federal grant compliance requirements.

Our total proposed cost for the full scope of services and equipment is roughly $216,000 - $226,000 — within the maximum contract value established by the City. All deliverables will be completed within the February 23 – December 31, 2026 period of performance.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
We are committed to being a long-term partner to the City of California City — not a one-time vendor. We look forward to the opportunity to discuss our approach in further detail.

Respectfully submitted,
Technic Business Solutions
[email protected]
www.technic.net
Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 2 — PROJECT TEAM
Technic Business Solutions assigns a dedicated, experienced team to each municipal engagement.

The following professionals will lead and support delivery of all scope items under this contract. All personnel hold active, relevant certifications and have prior experience in public sector or regulated environments.

Name Title Certifications Primary Scope
Responsibility
Jamie Kennis
(Lead)
Principal Engineer &
vCISO
CISSP, CCNP Security,
CompTIA Security+
vCISO, Zero Trust
Architecture, MFA,
Domain Migration
Alex Munoz – Sr.

Security Analyst
Security Operations
Lead
CEH, CompTIA CySA+ Vulnerability
Management,
SIEM/Log
Management, IRP
Exercises
Cesar Bislig –
Infrastructure
Engineer
Systems & Network
Engineer
Dell EMC Certified, NSE4
Fortinet
Server Deployment,
Storage, Firewall
Configuration
Hadis Mulic –
Compliance
Analyst
GRC & Compliance
Specialist

CISM, NIST CSF
Practitioner
Disaster Recovery
Planning, Policy
Development, SLCGP
Reporting
Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 3 — TECHNICAL EXPERIENCE SUMMARY
Technic Business Solutions is an MPS, MSP and MSSP providing managed infrastructure, cybersecurity, and compliance services to large and enterprise businesses, governments, state agencies, and critical infrastructure operators throughout California. Our relevant technical experience includes:

Municipal & Public Safety Cybersecurity
Technic Business Solutions has supported enterprise clients in designing and implementing cybersecurity programs aligned with NIST CSF, CJIS Security Policy, and California SLCGP requirements. Our engagements have included vulnerability management programs, incident response planning, and policy development for municipalities with profiles similar to the City of California City.

Zero Trust & Identity Security
We have designed and deployed Zero Trust Network Access (ZTNA) architectures for clients requiring secure remote access under CJIS compliance. Our team is experienced with Cloudflare Zero Trust, MFA implementation, and identity governance across hybrid environments — including configuration of DMARC, DKIM, and SPF for secure email infrastructure and .gov domain migrations.

SIEM & Log Management
Technic Business Solutions has deployed centralized security event log management solutions across multi-site environments, including endpoint agent deployment, network device integration, and compliance-grade log retention exceeding NIST and CJIS minimum requirements.

Infrastructure Deployment
Our team has extensive hands-on experience with Dell PowerEdge server platforms, PowerVault storage systems, and next-generation firewall deployment (Fortinet FortiGate product line). We provide end-to-end services including rack-and-stack, OS and firmware configuration, network integration, and ongoing managed support.

Disaster Recovery & Business Continuity
We have conducted business impact analyses and developed disaster recovery plans, incorporating tabletop exercises, stakeholder testing, and ongoing revision schedules aligned with NIST SP 800-34 and CJIS disaster recovery requirements.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 4 — TECHNICAL APPROACH & METHODOLOGY
The following section details Technic Business Solutions’ specific approach, methodology, and deliverables for each of the eight scope areas identified in the RFQ. All work aligns with NIST CSF

2.0, CJIS Security Policy v5.9.2, and California SLCGP requirements. 1 Vulnerability Management
Approach: Technic Business Solutions will deploy an automated vulnerability management platform (Tenable.sc or equivalent CJIS-compliant solution) across all City endpoints, servers, and network devices. Daily authenticated scans will be configured, with findings classified using CVSS v3.1 scoring and mapped to MITRE ATT&CK techniques. A risk-tiered remediation workflow will be established with SLA targets by severity. Monthly review meetings with City staff will assess remediation progress and program effectiveness.

Key Deliverables: Vulnerability management platform deployment documentation; initial baseline scan report; risk classification and prioritization matrix; monthly review cadence and reporting templates; CJIS compliance attestation.
2 Disaster Recovery Planning
Approach: Technic Business Solutions will lead a structured Business Impact Analysis (BIA) with key City stakeholders across water/wastewater, police, fire, and administrative functions — identifying critical systems, recovery time objectives (RTOs), and recovery point objectives (RPOs). A comprehensive Disaster Recovery Plan (DRP) will be drafted per NIST SP 800-34 and tested through a tabletop exercise with documented lessons learned. An ongoing revision schedule will be established aligned with the City's operational calendar.

Key Deliverables: Completed BIA report; Disaster Recovery Plan document; tabletop exercise facilitation and after-action report; revision schedule and stakeholder sign-off documentation.
3 vCISO Services
Approach: Technic Business Solutions’ Principal Engineer will serve as the City's Virtual CISO for the contract period, providing strategic cybersecurity guidance, SLCGP compliance oversight, and ongoing program management. The vCISO will develop and maintain the City's cybersecurity roadmap, advise on policy development, attend relevant City Council or staff meetings as needed, and serve as the primary point of accountability for cybersecurity program outcomes. All guidance will be tailored to the realities of a rural municipal government with limited in-house IT staff.

Key Deliverables: vCISO engagement charter; cybersecurity program roadmap; policy gap analysis and recommendations; monthly status reports; SLCGP compliance documentation support.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
4 Incident Response Plan Exercise
Approach: Technic Business Solutions will review and update the City's existing Incident Response Plan (or develop one if none exists) to incorporate current threat intelligence, CJIS requirements, and lessons learned from the 2021 ransomware attack. A full tabletop exercise will be facilitated with City staff, police, fire, and IT stakeholders — simulating a realistic ransomware scenario. A formal after-action report will document gaps identified and recommended protocol updates.

Key Deliverables: Updated Incident Response Plan; tabletop exercise scenario and facilitation materials; after-action report with gap findings and remediation recommendations; updated IRP incorporating lessons learned. 5 Domain Migration (.us/.org to .gov)
Approach: Technic Business Solutions will project-manage the full migration of Police and Fire Department domains and email infrastructure from .us/.org to .gov domains. This includes .gov domain registration and verification through DotGov program, DNS record migration and validation, and full DMARC/DKIM/SPF configuration for all migrated domains. User communication, cutover planning, and a rollback procedure will be documented. Post-migration monitoring will confirm mail flow integrity and security posture.

Key Deliverables: Domain migration project plan; DNS cutover runbook; DMARC/DKIM/SPF configuration records; pre- and post-migration email security validation report; user communication templates.
6 Multi-Factor Authentication (MFA)
Approach: Technic Business Solutions will deploy CJIS-compliant Type 1 (knowledgebased) and Type 2 (possession-based) MFA across all remote network access, email, and administrative system access points. The solution will leverage Microsoft Entra ID (Azure AD) or equivalent identity provider already in use. Phased rollout will cover all City departments including Police and Fire, with user training and help desk support during the transition. Configuration will be validated against CJIS Security Policy Section 5.6.

Key Deliverables: MFA implementation plan and rollout schedule; configuration documentation per CJIS Section 5.6; department-by-department user enrollment completion report; training materials; post-deployment validation report. 7 Security Event Log Management
Approach: Technic Business Solutions will deploy logging agents (NinjaRMM) to all City endpoints, servers, and network devices — aggregating logs into a centralized SIEM platform. Log retention will be configured for a minimum of 12 months in compliance with NIST SP 800-92 and CJIS requirements. Alerting rules will be tuned for the City's environment, with a defined escalation path for high-severity events. Technic Business Solutions will provide initial SOC monitoring support during the deployment period.

Key Deliverables: Logging agent deployment across all in-scope systems; centralized SIEM platform with 12-month retention; alert rule library and escalation playbook; log management policy document; NIST and CJIS compliance validation report.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
8 Equipment — Servers, Storage & Firewalls
Approach: Technic Business Solutions will procure, configure, and deploy the specific hardware models identified in the RFQ through our certified vendor partners. All equipment will be racked, cabled, and configured per City specifications. Dell PowerEdge servers will be configured with current-release firmware and OS, integrated into the City's Active Directory environment, and validated for production readiness. The PowerVault ME5212 will be configured with appropriate RAID and zoning. FortiGate-50G-SFP firewalls will be deployed with security profiles, threat protection subscriptions, and CJIS-aligned policy rules.

Key Deliverables: Hardware procurement documentation; rack-and-stack and physical installation; firmware and OS configuration; network integration and testing; production readiness sign-off documentation per device; FortiGate security policy baseline configuration document.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 5 — COST PROPOSAL
The following cost proposal covers the full scope of services and equipment procurement for the period April 25 – December 31, 2026. All prices are inclusive of labor, materials, vendor coordination, travel within Kern County, and applicable project management overhead. Total cost does not exceed the maximum contract value of $237,500.

As noted in the RFQ, the City will not be responding to highly technical infrastructure inquiries prior to award. Accordingly, service costs are presented as ranges where final scope may vary.

Hardware costs are based on the attached Technic Business Solutions quote (QT-01024 & QT01025) valid through April 30, 2026; an updated quote will be obtained prior to contract execution.

Scope Item Description Low
Estimate
High
Estimate

1. Vulnerability
Mgmt
Platform deployment, configuration, scan
setup, monthly reviews (12 mo.)
Included Included

2. Disaster
Recovery
BIA, DRP authoring, tabletop exercise,
revision schedule
Included Included

3. vCISO Services 10-month engagement, strategic guidance, SLCGP compliance oversight
Included Included

4. IRP Exercise Plan review/update, tabletop facilitation, after-action report
Included Included

5. Domain Migration DNS migration, .gov registration,
DMARC/DKIM/SPF config
Included Included

6. MFA
Implementation
Identity platform config, phased rollout, user
training (all depts.)
Included Included

7. Log Management Agent deployment, SIEM setup, 12-mo.
retention, alerting
Included Included
8a. Hardware –
Servers
(1) R570-3TC8ZC3, (2) R570-7HPCWM3,
(2) R670-DKT7KQ3 — per QT-01025
$137,729 $137,729
8b. Hardware –
Storage
(1) PowerVault ME5212 — per QT-01025 $36,470 $36,470
8c. Hardware –
Firewalls
(3) FortiGate-50G-SFP (not included in
hardware quote)
$6,882.51 $6,882.51
8d. Labor – Deploy 240 hours @ $165/hr — per QT-01025 $39,600 $49,600 TOTAL PROPOSED CONTRACT VALUE $216,093.17 $226,093.17
Note: Hardware pricing is sourced from vendor quote QT-01024 & QT-01025 and is subject to change per vendor terms. An updated and extended quote will be secured prior to contract execution. The low estimate total of $216,093.17 represents the firm target not to exceed $237,500. Final scope adjustments at contract negotiation may shift line items while maintaining compliance with the maximum contract value.

Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 6 — PROJECT TIMELINE & MILESTONES
Technic Business Solutions’ proposed delivery timeline is aligned to the milestones outlined in the RFQ. The following table maps each milestone to our internal workstream schedule.

Milestone Target Date Technic CSC Lead
vCISO Contract Executed & Kickoff May 2026 Principal Engineer (vCISO) IRP Reviewed, Tabletop Facilitated,
Updated
May – June 2026 Security Operations Lead
Logging Solution Fully Deployed May – June 2026 Security Operations Lead Vulnerability Management Program Live May – June 2026 Security Operations Lead Domain Migration Complete (.gov) June – August 2026 Principal Engineer MFA Deployed City-Wide August – September
2026
Principal Engineer
Disaster Recovery Plan Finalized &
Tested
May – December 2026 GRC & Compliance Specialist
Servers, Storage & Firewalls Deployed July – December 2026 Infrastructure Engineer Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 7 — REFERENCES
Technic Business Solutions provides the following references from relevant engagements. All references are available to speak to the quality of our work and our familiarity with public sector cybersecurity requirements.

Reference 1 — VCSD (Available Upon Request)
Contact: Director
Phone/Email: Contact information available upon request Relevant Scope: Managed IT Services, Cybersecurity, Infrastructure Management, Compliance Support, Zero Trust, Military Contractor CMMC Compliance Reference 2 — Alternative Recovery (Available Upon Request) Contact: CIO
Phone/Email: Contact information available upon request Relevant Scope: Zero Trust architecture deployment, Cloudflare Access implementation, Managed IT Services, Backup & Disaster Recovery, Server/Infrastructure Management Reference 3 — Blue Sky Capital Financial (Available Upon Request) Contact: CIO
Phone/Email: Contact information available upon request Relevant Scope: Vulnerability management program, disaster recovery planning, Managed IT Services, Cybersecurity, Cloud Services, Compliance & Monitoring Technic Business Solutions | City of California City SLCGP RFQ Response RFQ No. SLCGP-0001-2025 Confidential | Technic Business Solutions
SECTION 8 — ADDITIONAL CONDITIONS & EXCEPTIONS
Business Registration
Technic Business Solutions is actively registered to conduct business in the State of California.

Documentation of active registration is available upon request.

Exceptions to RFQ Requirements
Technic Business Solutions takes no exceptions to the requirements set forth in RFQ No. SLCGP0001-2025. We accept all terms and conditions as stated, including the maximum total contract value of $237,500 and the requirement to enter into a professional services agreement with the City upon award.

Hardware Quote Validity Note
The hardware pricing referenced in Section 5 of this proposal is sourced from vendor quote QT01024 & QT-01025, which carries a validity date of April 30, 2026 — prior to the RFQ submission deadline of April 24, 2026. Technic Business Solutions will obtain a refreshed and extended quote from the hardware vendor prior to contract execution to ensure all pricing is current and firm. This does not affect our proposed total contract value.

CJIS Compliance Commitment
Technic Business Solutions acknowledges that services performed under this contract will involve access to CJIS-regulated data and systems, including those used by the California City Police Department. All Technic Business Solutions personnel assigned to this engagement will complete required CJIS Security Awareness Training, submit to background screening consistent with CJIS Personnel Security Policy, and operate under a signed CJIS Security Addendum as required by California Department of Justice and FBI CJIS Division requirements.

Technic Business Solutions — End of Proposal
RFQ No. SLCGP-0001-2025 | Submitted April 10, 2026 | [email protected] CC 5
4898-7406-7085 v1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: Contracts by Department: Housing, Human Resources, Public Works, and Non-Departmental
BACKGROUND/ DISCUSSION:

The City Council has requested that all grants and contracts for the City be made available to the City Manager, the City Council and future City Council members. The following includes the contracts for the identified departments and programs.

Housing:

The Housing Department has and will engage in multiple contracts for one-time purchases and services. The Housing Department has only one recurring contract with Spectrum (attached) for cable and internet service bulk billing for all of the apartments in Desert Jade. The contract is for 60 months ending July 1, 2029, after which it can be terminated at any time with or without cause.

The recurring amount of the contract $50 per apartment with a 6% annual escalator.

Human Resources:

The Human Resources Department has and will engage in multiple contracts for one-time purchases and services. The Human Resources Department has only one recurring contract with NEOGOV (attached) for online employment listing services. The contract is for one year; it is not self-renewing and must be renewed by agreement and signature of the City and the vendor each year. The amount of the contract for the current fiscal year is not-to-exceed $1,220.49.

Public Works:

The City has and will engage in multiple contracts for one-time purchases and services for the Public Works Department. The City has the following recurring contracts for the public works function (attached):
• BHT Engineering: City Engineer Services contract. 5-year contract through June 2030.

Cancelable at no cost with 7 day notice. The amount is based upon billing for task orders as approved by the City.
• 120 Water Inc: Consultant for lead and copper service line inventory. 3-year contract through August 2027. Cancelable at no cost with 60 day notice. The amount is $13,850 per year. The City is not exercising the contract in the current fiscal year. • Antelope Valley East Kern Water Agency (AVEK): Water service agreement. Perpetual contract. Cancelable at no cost at any time. The amount is the published water rates when used.

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• AESI: Consultant Engineering and GIS. One-year contract renewed annually that can be terminated at no cost with 7 days notice. The amount for the current fiscal year is $5,940. • iWorQ: Software as a service for permitting. Three-year contract. The amount for the current fiscal year is $3,407.
• Everbridge: Software as a service for Nixle. One-year contract renewed annually by invoice.

The City also has the following month-to-month agreements without a recuring contract for the Public Works function following:
• Fuel Serv – Year-to-year for purchasing Jet and Aviation Fuel • Thugs to Bugs – Month-to-month for pest control
• Primo Brands – Month-to-month Sparklets Water Service • Hiller Companies - Year-to-year for certification of Fire Extinguishers • M&S Security Services – Month-to-month for security at the waste water treatment plant • InHand Connect – Month-to-month Cell Modem Network for SCADA • Alexander's Contract Services – Month-to-month for Water Meter reading services The City also has the following MOUs or agreements for government services without a recuring contract for the Public Works function following:
• State Water Resources Control Board – Year-to-year for Water and Wastewater Licenses • County of Kern -Year-to-year for Licenses
• Mojave Public Utility District - Year-to-year for pass through fees • Easter Kern Air Pollution Control District - Year-to-year for Licenses • California State Controller's Office - Year-to-year for Licenses • California Department of Transportation - Year-to-year for Licenses • California Highway Patrol - Year-to-year for Bus certification Non-Departmental
The City has the following recurring contracts for that are either non-departmental or span multiple departments (attached):
• Capitol Advocacy Partners (CAP): Grant writing consultant. 2-year extension of contract through June 2027. The amount is $53,506.32 for the current fiscal year. • GES Megaseven: Power purchase agreement. 20-year contract expiring June 27, 2038. May be terminated at any time subject to an early termination payment of approximately $4,600,000. The annual cost to the City varies between $180,000 and $300,000. • Airespring: Phone system. 1-year contract with 1 year auto-renewal that can be cancelled subject to a cancellation fee equal to three months of service charges. The amount is $53,506.32 for the current fiscal year.
• Quadient: Postage meter lease agreement. 63-month contract. The annual cost to the City is $2,536.68
• WM (USA Waste of California): Franchise agreement for solid waste and recycling. 10- year contract through June of 2034. Can only end contract through default of the franchise holder. The City receives an administrative fee annually with the amount in the current fiscal year of $28,155.45.

CC 5
4898-7406-7085 v1
• 26SB 8me LLC (Bellefield solar): Community Benefit Agreement. Duration is until the donated funds are expended. The City received $2,700,000 upon execution of the agreement in 2024.

FISCAL IMPACT:

None with this action.

RECOMMENDATION:

It is recommended that the City Council receive and file the information. The information will be maintained by the City Clerk in a virtual and physical grants and contracts binder (multiple binders).

ATTACHMENTS:

1. Housing – Contract: Spectrum

2. Human Resources - Contract: NEOGOV

3. Public Works – Contract: BHT

4. Public Works – Contract: 120 Water Inc.

5. Public Works – Contract: AVEK

6. Public Works – Contract: AESI

7. Public Works – Contract: iWorQ

8. Public Works – Contract: Everbridge

9. Non-Departmental – Contract: Capitol Advocacy Partners

10. Non-Departmental – Contract: GES Megaseven

11. Non-Departmental – Contract: Airespring

12. Non-Departmental – Contract: Quadient

13. Non-Departmental – Contract: WM

14. Non-Departmental – Contract: Bellefield

THIS IS NOT AN INVOICE
Contract Records Order Details
Account Number:  A-631063 Order #: Q-414956
Customer: California, City of (CA) Valid Until:

Effective Employee Count: 96
Sales Rep:  Salesforce Administrator Start Date: Last signature date Customer Contact
Billing Contact:  California, City of (CA) Shipping Contact :  California, City of (CA) Latisha Lamberth Latisha Lamberth
Billing Address: 21000 Hacienda Blvd Shipping Address: 21000 Hacienda Blvd California City, CA 93505 California City, CA 93505
Billing Contact Email:  [email protected] Shipping Contact Email:  [email protected] Billing Phone:  760-373-7377 Shipping Phone:  760-373-7377 Payment Terms
Payment Term: Net 60 Notes:

PO Number:

Subscription Service
February 2026
Item Type Term
(Months)
License Type Total (USD)
Governmentjobs.com Subscription Recurring 12 Employee Based $1,220.49 February 2026 TOTAL: $1,220.49
This price does NOT include any sales tax. Total in USD Additional Terms and Conditions
License Terms: Enterprise license denotes that Customer has purchased an enterprise wide license up to the employee count specified above.

User based license denotes that Customer has purchased the number of licenses set forth in the quantity column. Item count denotes the number of items that Customer has licensed as set forth in the quantity column.

Payment Terms: All invoices issued hereunder are due upon the invoice due date. If the Order is for a period longer than one year, the fees for the first period shown shall be invoiced immediately and the fees for future years/periods shall be invoiced annually in advance of each 12 month period shown on the Order, but regardless of the billing cycle, Customer is responsible for the fees for the entire Order. The fees set forth in this Service Order are exclusive of all applicable taxes, levies, or duties imposed by taxing authorities and Customer shall be responsible for payment of any such applicable taxes, levies, or duties. All payment obligations are non-cancellable, and all fees paid are non-refundable. Payment for services ordered hereunder shall be made to Governmentjobs.com, Inc., (D/B/A NEOGOV).

Terms & Conditions: This Order Form creates a legally binding contract on the parties. Unless otherwise agreed in a written agreement between GovernmentJobs.com, Inc. (D/B/A/ NEOGOV), parent company of PowerDMS, Inc., Cuehit, Inc., Ragnasoft LLC (D/B/A/ PlanIT Schedule), and Design PD, LLC (D/B/A Agency360) (collectively, “NEOGOV”) and Customer, this Order Form and the services to be furnished pursuant to this Order Form are subject to the terms and conditions set forth here: https://www.neogov.com/service-specifications. The Effective Date (as defined in the terms and conditions) shall be the Subscription Start Date.

Find a copy of our W-9 here.

Special Condition:

If this Order Form is executed and/or returned to NEOGOV by the Customer after the Subscription Start Date stated in this Order Form, NEOGOV may adjust the Subscription Start Date and the corresponding Subscription End Date, without increasing the total fees, based on the date NEOGOV

activates the subscription, provided the total length of the subscription term does not change. Following activation, any adjustments to such Subscription Start Date and Subscription End Date may be confirmed by reference to the invoice sent by NEOGOV.

1 October 2018

CITY OF CALIFORNIA CITY

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Professional Services Agreement (“Agreement”) is made and entered into this 13th day of August, 2024, by and between the City of California City, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 21000 Hacienda Blvd., California City, CA 93505 ("City") and 120 Water, Inc. a Delaware corporation, with its principal place of business at 250 S Elm Street, Zionsville, Indiana 46077 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional software as a service consulting services required by the City on the terms and conditions set forth in this Agreement and pursuant to Exhibit “A,” attached hereto (the “Services”). Consultant represents that it is experienced in providing Services to public clients, is registered to conduct business as a foreign corporation in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render Services for the Lead and Copper Service Line Inventory project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Time of Performance.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately provide the Services necessary for the Project. The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance immediately following execution of this Agreement by the Parties. Consultant shall complete the services required hereunder on or before the State’s deadlines.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 2 October 2018

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: [INSERT NAME AND TITLE].

3.2.5 City's Representative. The City hereby designates Joe Barragan Public Works Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Daniel Marnatti - CSM, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees; Consultant Warranty.

Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally accepted in the industry. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services (all of the foregoing collectively referred to as the “Service Warranty”). Consultant warrants that all employees shall have sufficient skill and experience to perform the Services assigned to them.

Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement.

As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. City must report to Consultant in writing any failure of the Services to materially conform to the Service Warranty within ninety (90) days of performance of such Services in order to receive warranty remedies. Warranties for third-party products are governed under the applicable third-party warranty terms, and City expressly acknowledges that Consultant has no obligations with regard to third-party products. EXCEPT FOR THE

WARRANTIES EXPRESSLY STATED HEREIN, CONSULTANT PROVIDES ALL

SERVICES AS-IS, AND CONSULTANT DISCLAIMS ALL OTHER WARRANTIES,

EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and 3 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.

3.2.10.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General
Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Code 1), or if Consultant has no owned autos, “Hired Auto” (Code 8) and “Non-Owned Auto” (Code 9), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence.
(C) Workers' Compensation/Employer’s Liability: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. If Consultant has no employees or agents, Consultant shall not be required to maintain Workers’ Compensation Insurance. However, in the event that Consultant hires employees or agents during the term of this Agreement, Consultant shall obtain and maintain Workers’ Compensation/Employer’s Liability Insurance in accordance with this section. (D) Professional Liability (Errors & Omissions) Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with 4 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

3.2.10.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (C) Workers' Compensation:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation
stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.
(D) Professional Liability (Errors & Omissions):
5 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This
insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.

1.1.1.2 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

1.1.1.3 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Consultant shall require similar written express waivers and insurance clauses from each of its subconsultants.

1.1.1.4 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

1.1.1.5 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
6 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.1.1.6 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.

1.1.1.7 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

1.1.1.8 Enforcement of Agreement Provisions (non estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

1.1.1.9 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained herein are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. If the Consultant maintains higher limits than the minimums contained herein, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

1.1.1.10 Claims Made Policies. If any of the required policies provide coverage on a claims-made basis:
(A) The Retroactive Date must be shown and must be before the effective date of the Agreement or the beginning of work under this Agreement. (B) Such insurance must be maintained and evidence of
insurance must be provided for at least five (5) years after completion of all services under this Agreement.
(C) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the effective date of the Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of all services under this Agreement.

1.1.1.11 Special Risks or Circumstances. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances so long as at least thirty (30) days’ notice is provided to Consultant.
7 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.1.1.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for directing subconsultants to purchase the appropriate insurance. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s proof of appropriate insurance, to the extent applicable.

1.1.2 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

1.1.3 Water Quality Management and Compliance.

1.1.3.1 Storm Water Management. Storm, surface, nuisance, or other waters may be encountered at various times during the Services. Consultant hereby acknowledges that it has investigated the risk arising from such waters, and assumes any and all risks and liabilities arising therefrom so long as any such risks or liabilities are not the direct or indirect result of gross negligence or willful misconduct by the City.

1.1.3.2 Compliance with Water Quality Laws, Ordinances and Regulations. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant shall additionally comply with the lawful requirements of the City, and any other water district, municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.

1.1.3.3 Standard of Care. Consultant warrants that all employees shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Section 3.2.12.2 of this Agreement. Consultant further warrants that it, its employees have or will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services.
8 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.1.3.4 Liability for Non-compliance.
(A) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Section 3.2.12.2 of this Agreement is a violation of federal and state law.

Notwithstanding any other indemnity contained in this Agreement, Consultant agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all third-party claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(B) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Consultant’s failure to comply with any applicable water quality law, regulation, or policy. Consultant hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity.
(C) Damages: City may seek damages from Consultant for
delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in Section 3.2.12.2 of this Agreement, or any other relevant water quality law, regulation, or policy.

1.2 Fees and Payments.

1.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed thirteen thousand eight hundred fifty dollars ($13,850) per year, without written approval of the City Council or City Manager as applicable. This Agreement is for a total of three years total contract length; total compensation not to exceed forty-one thousand five hundred fifty dollars ($41,550). Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

1.2.2 Payment of Compensation. Unless stated otherwise in Exhibit C, Consultant shall submit to City a monthly invoice which indicates work completed by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within fifteen (15) days of receipt of an invoice of any disputed fees set forth therein. Any fees hereunder not paid when due will be subject to a late charge of one and one-half percent (1½%) per month on the unpaid balance or the maximum rate allowed by law, whichever is less. If City’s account is fifteen (15) days or more overdue, Consultant may, in addition to any of its other rights or remedies, suspend City’s access to the Services until such amounts are paid in full. If City brings its account current within fifteen (15) days after 9 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 suspension commences, Consultant will restart access to the Services. If such failure to pay has not been cured within thirty (30) days of the payment due date, then upon written notice Consultant may terminate this Agreement without penalty.

1.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

1.2.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

1.2.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “C” may be adjusted each year at the time of renewal as set forth in Exhibit “C.”

1.3 California Labor Code Provisions.

1.3.1 Prevailing Wage Law. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall obtain a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement from the website of the Division of Labor Statistics and Research of the Department of Industrial Relations located at www.dir.ca.gov/dlsr/. In the alternative, Consultant may view a copy of the prevailing rates of per diem wages at the City.

Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

1.3.2 Registration. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 10 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.4 Accounting Records.

1.4.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of records directly related to this Agreement and performance of the Services, and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

1.5 General Provisions.

1.5.1 Termination of Agreement.

1.5.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least sixty (60) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

1.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

1.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

1.5.1.4 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: 120 Water, Inc.
250 S Elm Street
Zionsville, IN 46077
ATTN: Daniel Marnatti
City: City of California City
21000 Hacienda Blvd.

California City, California 93505
ATTN: City Clerk and PW Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) 11 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

1.5.2 Intellectual Property.

1.5.2.1 Definitions.
(A) “120Water Platform” means Consultant’s proprietary online hosted software platform, website, operating systems, hardware, and other technical resources used by Consultant to provide the Services.
(B) “City Data” means all electronic data (including, but not limited to, Personal Information, such as names, addresses, and contact information of City residents), uploaded by City or Consultant to the 120Water Platform. (C) “Deliverables” means (1) the deliverables (e.g., custom reports) specified in Exhibit “A” (attached hereto or as entered into and signed by both parties during this Agreement) that are expressly created by Consultant for City and (2) all reports provided or made accessible to City pursuant to Exhibit “A.” (D) “Derivative Data” means collectively, (1) information derived or generated from or based on City Data, but not containing City Data, (2) City Data which has been de-identified or anonymized so that it no longer identifies a specific individual; and, (3) City Data which has been aggregated with other data but which no longer identifies a specific individual or City.
(E) “Documentation” means the user guides and specifications for the Services that are made available from time to time by Consultant in electronic or tangible form, but excluding any sales or marketing materials.
(F) “Usage Data” means statistical data related to City’s access to and use of the Services and data derived from it that is used by Consultant, including to compile statistical and performance information related to the provision of the Services and operation of the 120Water Platform.

1.5.2.2 Ownership and Use. Subject to the limited rights expressly granted hereunder, Consultant reserves all rights, title and interest in and to the 120Water Platform, including, but not limited to, all software, technology and other materials associated therewith, all Documentation and content (excluding City Data), and all copies, modifications, upgrades, enhancements and derivative works thereof, and all of Contractor’s trademarks, names, logos, and all rights to patent, copyright, trade secret and other proprietary or intellectual property rights therein. No rights are granted to City hereunder other than as expressly set forth herein. As between Consultant and City, City owns all City Data and Deliverables. Consultant may use the City Data, trademarks and trade names of City in connection with provision of the Services to City.
12 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.5.2.3 Feedback. If City provides or otherwise makes available to Consultant any feedback, suggestions, recommendations, data, or other input regarding the 120Water Platform, Services, or Documentation, or resulting from City’s use thereof (collectively, “Feedback”), City agrees to and does hereby assign to Consultant all right, title, and interest in and to all Feedback. Consultant shall not publicly identify City in any use of the Feedback. City has no responsibility or liability for any Feedback or for Consultant’s use thereof.

Consultant agrees to indemnify, defend, and hold harmless City for any use by Consultant of any Feedback.

1.5.2.4 Derivative and Usage Data. Consultant shall irrevocably own all Derivative Data and Usage Data and may use or disclose it in any way it chooses. This Section shall survive any expiration or termination of this Agreement.

1.5.2.5 Use of City Data after Expiration or Termination. Upon City’s request within thirty (30) days after the expiration or termination of this Agreement, Consultant will provide City with a copy of City Data held by Consultant. Upon expiration of such thirty (30) day period, Consultant shall convert City’s account to an inactive status. Consultant is obligated to delete all City Data after City’s account converts to inactive status. The confidentiality obligations as are set forth in this Section shall remain in force and effect at all times during this Agreement, and (A) with respect to confidential information that constitutes a trade secret under applicable law, for so long as such trade secret status has not been lost; and (B) with respect to confidential information that does not constitute a trade secret, for five (5) years after termination or expiration of this Agreement, and (C) with respect to Personal Information held by Consultant, forever.

1.5.2.6 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, and other written information shared by one party with the other party in connection with the performance of this Agreement shall be held confidential by the receiving party. Such materials shall not, without the prior written consent of the disclosing party, be used by the receiving party for any purposes other than the performance of the Services, except as otherwise specified in this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to the receiving party which is otherwise known to the receiving party or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

1.5.2.7 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information"), and in the event the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, then City will provide Consultant with a timely opportunity to object to disclosure of such documents and information. Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. City shall not release the Proprietary Information after receipt of the 13 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Objection Notice unless a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

1.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

1.5.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.

1.5.5 Indemnification.

1.5.5.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its officials, officers, employees, agents and volunteers free and harmless from any and all third-party claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of attorneys’ fees and other related costs and expenses.

Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

1.5.5.2 Additional Indemnity Obligations. To the fullest extent permitted by law, Consultant shall defend, with counsel of City’s choosing and at Consultant’s own cost, expense and risk, any and all third-party claims, suits, actions or other proceedings of every kind covered by Section 3.6.5.1 that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding.

Consultant shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs.

Consultant shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

1.5.6 Limitation of Liability. EXCEPT FOR INTELLECTUAL PROPERTY

INFRINGEMENT, BREACH OF CONFIDENTIALITY, INDEMNIFICATION OBLIGATIONS, OR CITY’S PAYMENT OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY’S TOTAL AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS 14 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

AGREEMENT, WHETHER IN CONTRACT, TORT OR UNDER ANY OTHER THEORY OF

LIABILITY, EXCEED THE AMOUNTS PAID BY CITY FOR THE SERVICES FOR WHICH LIABILITY IS CLAIMED IN THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE INCIDENT GIVING RISE TO LIABILITY.

1.5.7 Exclusion of Consequential Damages. EXCEPT FOR INTELLECTUAL

PROPERTY INFRINGEMENT, BREACH OF CONFIDENTIALITY, OR INDEMNIFICATION

OBLIGATIONS, AND NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS

AGREEMENT, THE PARTIES EXPRESSLY AGREE THAT IN NO EVENT SHALL EITHER

PARTY HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY LOST PROFITS OR

FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, CONSEQUENTIAL, OR SPECIAL

DAMAGES OF ANY KIND OR NATURE HOWEVER CAUSED, INCLUDING WITHOUT

LIMITATION DAMAGES FOR LOSS OF GOODWILL, SUBSTITUTE GOODS OR

SERVICES, WORK STOPPAGE, , LOST PROFITS OR COMPUTER FAILURE, INCURRED

BY EITHER PARTY OR ANY THIRD PARTY, WHETHER IN CONTRACT, TORT OR

UNDER ANY OTHER THEORY OF LIABILITY, WHETHER OR NOT THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

1.5.8 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

1.5.9 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Kern County.

1.5.10 Reserved.

1.5.11 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

1.5.12 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

1.5.13 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City, and any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer; provided that Consultant may assign, convey, or transfer (whether by contract, merger, or operation of law) (collectively “assign” and its cognates) without City’s consent any or all of Consultant’s rights or obligations under this Agreement in connection with a merger, acquisition, corporate reorganization, or sale of all or substantially all of Consultant’s assets or equity, provided that Consultant reasonably believes the assignee has the operational ability to perform Consultant’s obligations under this Agreement.

Consultant will provide reasonable notice to City of any merger or acquisition. Any assignee will be bound by all of the terms and conditions of this Agreement. 15 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2

1.5.14 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees and agents of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

1.5.15 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

1.5.16 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

1.5.17 Force Majeure. Any delay in performance (other than for the payment of amounts due; provided, such non-payment does not exceed 30 days) caused by conditions beyond the reasonable control of the performing party (“Force Majeure Event”) is not a breach of the Agreement. The time for performance will be extended for a period equal to the duration of the conditions preventing performance; provided that the party prevented from performing its obligations: (a) has promptly notified the other party upon becoming aware that any Force Majeure Event has occurred or is likely to occur, (b) uses commercially reasonable efforts to implement a workaround and to minimize any delay in or interference with the performance of its obligations under the Agreement, and (c) did not cause or contribute to the cause of the Force Majeure Event. If the Force Majeure Event renders the Services completely unavailable for more than thirty (30) consecutive days, City may terminate the Agreement upon written notice to Consultant (in which case City will receive a refund of prepaid fees starting from the beginning of the period of unavailability due to such conditions). For the avoidance of doubt, City is not obligated to pay Consultant during the period when a Force Majeure Event renders the Services unavailable.

1.5.18 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

1.5.19 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

1.5.20 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration 16 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

1.5.21 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

1.5.22 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

1.5.23 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

1.5.24 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
[SIGNATURE PAGE TO FOLLOW]
CITY OF CALIFORNIA CITY 120 WATER, INC.

By: By:

Latisha Lamberth
Interim City Manager
Megan Glover - CEO
ATTEST:

By:
[INSERT NAME AND TITLE
17 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Victor Ponto
By:

City Clerk
APPROVED AS TO FORM:

By:

Victor Ponto
City Attorney
18 Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 City of California City - CA
Joe Barragan
[email protected]
7603737162
Reference: 20240827-112725335
Quote created: August 27, 2024
Quote expires: September 26, 2024
Quote created by: Joe Riitano
[email protected]
Comments from Joe Riitano
Products & Services
Item Name & Description Unit Price Quantity Term
(months)
PWS Pro $9,000.00
/ year
1 36
Comms + PTD Module $1,200.00
/ year
1 36
LCRR Managed Service $5,000.00
/ year
1 36
PWS application with Inventory, Program & Event Managment & Workflows
Communications & PTD Module added to PWS Pro - Enables Designing and Sending of Letters, Postcards & Publicly Available Service Line Map LCRR Coaching & guidance through Inventory Building, Verification, ongoing management, Sampling and Communication. Our team will pro‐ vide assistance in Inventory Building through the normalization of CSV & Excel data exports to create a concise list of service locations and the asset records to coincide. Material Classifications are the responsibility of the water system but we will work together to identify best practices for iden‐ tifying those materials.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Annual subtotal $13,850.00
Total $13,850.00
Purchase terms
Payment terms: Fees will be billed quarterly starting net 30 days from the contract signature date.

Invoice Terms:

Billing Street Address:

Billing City:

Billing State:

Billing Zip Code:

Billing Country:

Billing Notes (if applicable):

Signature
Signature Date
Printed name
Countersignature
Countersignature Date
Printed name
after $1,350.00 discount
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Questions? Contact me
Joe Riitano
[email protected]
120Water
250 S Elm St
Zionsville, IN 46077
US
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 City of California City, CA
Proposal: Service Line Inventory (Schedule A)
Submission To:

Joe Barragan
[email protected]
Response Submitted By:
120Water
250 S Elm Street
Zionsville, IN 46077
120Water.com
Primary Contact:

Aaron Wilberding
California State Rep
[email protected]
714-348-9018
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Service Line Inventory
Introduction:

Service line inventories are the foundation from which water systems take action to address a significant source of lead in drinking water - lead service lines (LSLs). Establishing an inventory of service line materials and identifying the location of LSLs is a key step in getting them replaced and protecting public health.

A comprehensive and accurate inventory has many additional benefits beyond regulatory compliance. Inventorying service line material permits notification to consumers about potential lead risks affecting them, which can facilitate customer actions to reduce lead in drinking water, including flushing, use of filters certified to reduce lead, and customer-initiated LSLR.

Inventories allow water systems to publicly track their progress on LSL identification and replacement, engaging the community and enhancing transparency. Inventories can also help water systems and consumers determine the source of high lead levels in drinking water at a home or building and the possible solutions for reducing exposure. Inventories can also make LSLR programs more efficient. Even incomplete inventories may create cost-saving opportunities for water systems by better targeting locations served by LSLs, stretching the value of internal or external funding that water systems receive, such as from the BIL. In addition, service line inventories can help inform decisions for other drinking water rules and could inform future needs surveys and potential future costs.

Objectives:

The LCRR requires CWSs and NTNCWSs to develop a publicly available service line inventory that includes material classifications (Lead, Galvanized Requiring Replacement (GRR), Non-Lead, or Lead status unknown) of all service lines connected to a public water distribution system (40 CFR §141.84(a)(2)). This inventory must define service line ownership, and where dual ownership applies, materials must be defined on both the PWS and customer portion of the line to accurately provide a single classification per service line.

California City and 120Water are entering into an agreement to collaborate and develop a Preliminary Service Line Inventory. A Preliminary Service Line Inventory or Records Based Inventory, is an initial evaluation of all records that are publically available and widely available within the Utility. Establishing a Preliminary Service Line Inventory is the first step in achieving compliance with Revised Lead and Copper Rule. The objective of this scope of work is to establish a Preliminary Service Line Inventory within the defined term duration.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Scope of Work:

Developing a preliminary inventory is Phase I of the LSLI process. The goal is to identify, gather, organize, clean and categorize the data appropriately for Implementation into the 120Water Platform. Here is the process describing the various sections for Phase I of the LSLI process:
● The Implementation section outlines the steps that begin once the 120Water Platform has been provision and distributed to the PWS
● The Consider section outlines the steps that follow once we work with the client to identify data sources and receive the data from the client ● The Clean section details steps for bringing the data into a coding environment and preparing the data so that it can be combined
● The Combine section details steps for merging data from different sources into a centralized LSLI data source. It is likely that the clean and combine processes will overlap when interacting with the data
● The Verify section outlines the steps for organizing the data so that Verify can be budgeted and prioritized
● The Report section outlines the steps for reporting the inputs that are auto populated and efficiently reported to the State.

Implementation
120Water will implement a proprietary software built specifically for water systems to manage compliance with the revised Lead and Copper Rule to serve as the foundation to digitize, track, report, and manage all aspects of the development of the Lead Service Line Inventories, and any subsequent compliance requirements.

Consider
The first step is to determine the best way to pull together the data set by leveraging some unique combination of the data sources that were previously identified. The goal is to consider “combine potential” by taking a closer look at the data. When developing a records-based LSLI, the current LCRR language permits the following as records:
(i) All construction and plumbing codes, permits, and existing records or other documentation which indicates the service line materials used to connect structures to the distribution system. (ii) All water system records, including distribution system maps and drawings, historical records on each service connection, meter installation records, historical capital improvement or master plans, and standard operating procedures.
(iii) All inspections and records of the distribution system that indicate the material composition of the service connections that connect a structure to the distribution system.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 (iv) Any resource, information, or identification method provided or required by the State to assess service line materials.

It should be noted that the State may approve other sources of information not listed below for a system to use in their preliminary inventory. As states come up with their own policies, more information around these additional, acceptable sources will come to light. EPA is in the process of drafting and releasing Lead Service Line Inventory Improvements, as those are released, the Preliminary Inventory may be adjusted.

Data Variable / Dataset What to Look For
GIS Shapefiles
Customer Locations Includes street addresses or
latitude/longitude data
Service Lines Where the service lines are located, material type, pipe size
Meter Locations Where the water meters are located
Meter Type The type of water meter installed, type of
customer served detected through meter size
(residential versus commercial)
Tax Parcels Building age and building assessed value
Water Mains Where water mains are located, material
type, pipe size
Zones/Neighborhoods/Wards Map of how the city/community is organized, helps with LSLI prioritization
Work Order System
Service Line Repairs Looking for material installed, date installed to cross-reference with Ban Dates (1988-1990),
pipe size
Service Line Replacements Looking for material installed, date installed to cross-reference with Ban Dates (1988-1990),
pipe size
Meter Repairs Pipe materials on either side of meter
location, date installed, pipe size
Meter Replacements Pipe materials on either side of meter location, date installed, pipe size
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Customer Billing System
Unique Customer ID Such as a unique account number or other code used to identify that specific customer
Unique Location ID Location code, street address, or
latitude/longitude
Customer Type Residential, Commercial, Industrial Customer Types
All customer type SLs have to be inventoried
but PWS might want to narrow in on
residential first
Commercial and industrial user SLs are
typically larger and pump a lot of water
through. Lead is not ideal for larger pipes,
lead is better for smaller pipes because of
malleability. Can help prioritize. If the pipe is >
2 inches, then they likely do not have lead
Meter ID
Tax Parcel Data / Records
Tax Parcel Identification Number (PIN) Provides a unique identifier to support data merge
Home Year Built Right now we cannot use home built date as a justification for classifying materials type.

As-built year can be used as a cross
comparison point.

You can cross check as-built with home built
date from the tax parcel data BUT it does not
count/ is not accepted as proof from the EPA
(unknown really if they will accept it/not clear
right now) that an LSL doesn’t exist.

One example for where As Builts will be
helpful is for neighborhoods
established/constructed dates. With the City
of California City, if we can prove if a
neighborhood was built after the state’s lead
ban date, then EPA is fine with that as proof.

Lot Size Smaller lot is more likely to be associated
with higher levels of lead, correlation with
assessed value
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Property Type Fallback if we do not get this data on
Residential, Commercial, and Industrial from
the client
Latitude/longitude Location identifier (If client cannot provide this data)
Street Address Location identifier (If client cannot provide this data)
Home Assessed Value Correlation between home value and
probability of lead in SL and internal plumbing
(the lower the home value, the higher the SL
probability)
Useful for environmental justice
considerations
Tier Sites Data
Street addresses Can use street addresses to connect tier site sample results to specific addresses in our
baseline file
Subdivisions or neighborhoods Can use this as supplemental information to help us understand whether or specific
subdivision or neighborhood has a lot of lead
exceedances
Lead concentrations from sample results (ppb
or ug/L)
Use this information to help us understand
the probability of a lead service line
LCR event months and year Use this longitudinal data to understand how lead concentrations have evolved over time
and helps us understand the probability of a
lead service line
*** IMPORTANT - As-Built and Tap Card Records ***
As-Built, TAP Card(s) or other paper based records can be a very important and viable source of data when developing a service line inventory. 120Water Program Consultants will work with you to identify the existence, completeness and impact of these records, however there will be an additional cost for the digitization (collection and scanning) and transcription (data processing and interpretation) of these data sources to be applied to your inventory. 120Water will present the fee for the implementation of these services and the process of transporting hard copy records to our possession.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Clean & Combine
Cleaning and combining the data means to modify, reorganize, and adjust the data in a way that prepares it for more in-depth analysis. Cleaning and combining data happen simultaneously and the process used is contingent on the type of data sources provided and how the data is organized.
120Water Program Consultants will review and analyze all records to determine which locations in California City’s service area are known to be Lead, Non-Lead, GRR or Unknown which permits identifying areas where LSL’s are most likely to exist.

Verify
At this point in the process, a compliant Service Line Inventory has been reached. The goal of this stage is to understand the inventory findings and evaluate what the future holds. Through the Verification Workshop, 120Water will provide a detailed summary with the recommendations of how to verify lead status unknown given the various methods approved by the EPA but also the State Agency. Within this report, 120Water will provide a cost analysis for the verification efforts.

Report
At this point in the process, the initial data has been collected, assimilated, and placed in a state compliant inventory format. This initial inventory will merely be the starting point for each utility in their quest to identify all of their system service line material compositions.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Deliverables:
- 120Water Platform
- Preliminary Service Line Inventory
- Locations Based
- Inventory Classification Report
- Public Transparency Dashboard
- Verification of Lead Status Unknown Report
- Draft Budget for Verification
- Recommendation of Verification Methods
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 City of California City, CA
Performance Schedule (Schedule B)
Submission To:

Joe Barragan
[email protected]
Response Submitted By:
120Water
250 S Elm Street
Zionsville, IN 46077
120Water.com
Primary Contact:

Aaron Wilberding
California State Rep
[email protected]
714-348-9018
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Project Milestones/Schedule:

Milestone 1 - Client Kick-off Meeting and Platform Delivery Host: 120Water Client Success Team
Description: The Client and 120Water have hosted and completed the Project Kick-off meeting.

In this meeting, the 120Water Platform is shown to the Client with invitations being received by the Client from Client Success. The goal of this meeting is to begin the Client Onboarding Process and establish the External Knowledge Transfer from the Client to 120Water’s Client Success and Program Consulting Teams.

Result: Project Kick-off Meeting Complete - Timelines and Expectations Established - Platform Invitation and Delivery
Deliverable: 120Water Platform
Milestone 2 - Data Investigation Call Complete
Host: 120Water Program Consultant
Description: The most important component of 120Water developing a Preliminary Inventory begins with the external knowledge transfer with an investigation of all of the various data sources that exist within the utility. It is critically important that the 120Water Program Consultant identify and familiarize themselves with these data sources so we can begin developing the Methodology Document as well as internalize the application of organizing, cleaning and merging these various data sources.

Result: Data Investigation Call is complete and a path forward for transfering identified data sources to the 120Water Program Consultant.

Milestone 3 - Inventory Evolution through Tax Parcel Data Host: 120Water Program Consultant
Description: Tax Parcel Data plays a pivotal role in creating a Lead Service Line. Within this data set includes Home Age, which is an initial source for identifying lead status unknown per various state regulations.

Result: First evolution of Inventory Status from unknowns to classified know or likely known materials
Milestone 4 - Platform Training - Verification Workshop + Workflow Host: 120Water Client Success
Description: Now that locations and services are loaded into the 120Water Platform, the client needs to be trained on how to access the platform and how to document any verification efforts that take place during the preliminary inventory development phase. This is critical for ensuring all information and data are most up to date.

Result: Client is enabled on how to track information through the platform and directly through the logbook (offline).

Deliverable: Excel Logbook for Field Services if Platform Access is unavailable Milestone 5 - Incorporation of Batch 1 of Client Data
Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 Host: 120Water Program Consultant
Description: Applying Batch 1 of Client Data to the Preliminary Inventory inclusive of Tax Parcel Data. Customer Billing is mandatory to be included in Batch 1 of Client Data.

Result: Tax Parcels overlaid with Customer Billing Locations equate to a robust starting point for establishing a Lead Service Line Inventory.

Milestone 6 - Baseline Compliant Inventory
Host: 120Water Program Consultant + Client
Description: All Customer Billing Locations have been identified and service lines tied to each location. Service Line materials may be documented as non-lead or likely non-lead (based on home age) and unknown. Unknown service line materials are allowed for the initial preliminary inventory submission.

Result: A preliminary inventory has been established and a plan for further verifying various records continues.

Milestone 7 - Incorporation of Batch 2 of Client Data
Host: 120Water Program Consultant
Description: All remaining data sources have been identified and evaluated for the effectiveness of signifying service line material. All records have been cleaned, joined and imported into the 120Water Platform.

Result: Preliminary Inventory has been completed with the evaluation of all service line records.

Milestone 8 - Preliminary Inventory Delivery & Verification Recommendation Host: 120Water Program Consultant
Description: The Preliminary Inventory has been finalized with all data imported into the 120Water Platform. Initial findings with a recommended verification plan have been documented and are ready to be presented to the client.

Result: Client has received the Preliminary Inventory and Verification plan for mitigating lead status unknown. The template released in the EPA’s August 2022 LSLI guidance will be the default format for delivery of your Preliminary Inventory. If and or when a state specific template is released your Preliminary Inventory will be formatted to meet that state specific template requirement.

Deliverable: Completed Preliminary Service Line Inventory & Verification of Lead Status Unknown Report
Milestone 9 - Public Transparency Dashboard Created
Host: 120Water Program Consultant
Description: The Public Transparency Dashboard functionality has been turned on in Backoffice and is ready to be presented to the client.

Result: Given the clients plans for the sharing the service line inventory, location, timing, etc - this functionality is ready for the client to implement.

Milestone 10 - Verification Go-Live
Host: 120Water Program Consultant + Client
Description: Verification Recommendation has been presented and the client has agreed to implement a method of verifying lead status unknown.

Result: A method of verification is being implemented by the client for verification.

Docusign Envelope ID: 71939532-08A5-4E92-A659-65AFBCFEA7E2 AVEK Water Agency
Water Service Agreement (WSA)- City of California City

Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003

AGREEMENT
This Agreement entered into this day of , , between the Antelope Valley-East Kern Water Agency, established by Chapter 2146 of the 1959 Statutes of the State of California (Agency) and City of California City (Customer).

WITNESSETH
The Agency shall sell and deliver water service to Customer and Customer shall purchase, receive, and/or reserve water service from the Agency in accordance with this Water Service Agreement (Agreement) and Agency’s Rules and Regulations for Water Service (Rules and Regulations), as amended from time to time by Agency’s Board of Directors. Upon compliance with this Agreement and Rules and Regulations, including payment of all required charges, Customer is eligible to receive water service from the Agency.

Customer agrees to pay any and all costs incurred by Agency for the design, construction, inspection, operation, and maintenance of water service connection(s) serving Customer. All water delivered to Customer shall be metered by equipment furnished and installed by Agency. All Agency-provided meter and related connection equipment and facilities for water service (the Turnout) (Exhibit A) are intended for the sole use of Customer and are to serve water to the Service Area(s), real property(ies), dwellings, water facilities, and/or business(es) indicated in Exhibit B.

Agency and Customer shall locate the Turnout to serve water for the Customer’s Service Area(s) at a point or location chosen by Agency. The Customer agrees the Agency shall have access to the Turnout at all reasonable times for any purpose connected with or in the furtherance of the purpose and objectives of this Agreement. Upon discontinuance of Turnout usage, Agency shall have the right to remove its equipment from the Turnout.

Agency’s authorized employees shall have access to the Turnout at all reasonable times for the purpose of inspecting for compliance with Agency’s Rules and Regulations, including state or federal requirements for water systems, applicable plumbing codes, and/or utility construction standards. Any direct connection between Agency supply and a potential source of contamination is strictly prohibited. Potential sources of contamination must be isolated from Agency facilities in compliance with appropriate cross-connection and backflow prevention practices outlined in the Agency Rules and Regulations.

In the event that Agency water supply is insufficient to meet all of Customer’s needs, which may occur from time to time, or for any cause of water shortage or interruption, beyond Agency’s reasonable control, the Agency, its officers, agents or employees, shall not be liable for any resulting direct damages, special damages, incidental damages, consequential damages, or loss of profit or revenue. If necessary, Agency may implement water rationing or other programs or policies in order to address such water shortages or interruptions within its service area.

Customer may install at their own expense a service line from the Agency Turnout to the point of use at the Customer Service Facilities (Customer’s Side of the Meter), including any isolation valve(s). Agency is not responsible or liable for any equipment on Customer’s Side of the Meter. Customer is responsible for maintaining all equipment and facilities on Customer’s Side of the Meter, including without limitation all pipe, fittings, and any other equipment installed by Customer.

All plumbing materials used, repairs made, and installations shall comply with current state and federal Safe Drinking Water Act requirements and plumbing codes. Agency will not install pressure relief valves or other pressure-reducing equipment on Customer’s Side of the Meter, nor does Agency inspect, maintain, or bear any responsibility or liability for any such valve or equipment installed by Customer.

Release. Customer hereby waives, releases, and discharges Agency and its officers, directors, employees, insurers, representatives, and contractors of any and all liabilities, claims, demands, actions, rights of action, losses, costs, fines, penalties, expenses, or damages of any kind related to, arising from, or in any way connected with, Customer’s installation The Mission of AVEK is to deliver reliable, sustainable, and high-quality supplemental water to the region in a cost-effective and efficient manner AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 2 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003 of, or maintenance or failure to maintain, inspect, or replace, a pressure relief valve or other pressure -reducing equipment on Customer’s Side of the Meter. If Customer chooses to install a pressure relief valve or pressure-reducing equipment on Customer’s Side of the Meter, Customer willingly assumes full responsibility for any and all risks associated with such valve or equipment and accepts full responsibility for any damages of any kind that may result from such installation, maintenance, and use of such valve or equipment. Customer agrees to assume all risk associated with the installation, use, misuse, or failure of such valve or equipment and from Customer’s failure to timely inspect, maintain, or replace such valve or other equipment.

By execution hereof, Customer agrees to hold Agency and its officers, directors, employees, insurers, representatives, and contractors harmless from any and all liabilities, claims, demands, actions, rights of action, losses, costs, fines, penalties, expenses, or damages of any kind caused by service interruptions due to waterline breaks by utility or like contractors, tampering by other Customers/users of the Agency, normal failures of the system, or other events beyond the Agency's reasonable control.

Customer agrees to guarantee payment of all other rates, fees, and charges due on any account for which said Customer is responsible. Payment of all charges shall be made at the rates, times and in the manner provided for in the Rules and Regulations. Customer acknowledges that nonpayment of amounts due Agency will result in disconnection of the water service to Customer’s Service Area(s). In the event water service is disconnected due to delinquency in payments, service shall not be restored until all past due accounts, including interest and late charges, have been paid to Agency. Restored water service shall be subject to additional charges.

Agency’s Board of Directors shall have the authority to cancel the water service of any Customer in noncompliance with any Agency policy, the Rules and Regulations, or with nonpayment of any fees or charges as required by Agency's published rates, fees, and conditions of service, in accordance with any statutory processes required by State law for canceling water service. If Agency equipment is tampered with or water is taken by means of an unauthorized connection or both, Customer shall forfeit all rights and privileges under this Agreement.

Any misrepresentation of fact(s) by Customer on any documentation relating to or deemed a part of this Agreement shall result in discontinuance of water service to the Turnout.

Each Customer must sign this Agreement before Agency will begin or continue water service. If service to an existing connection has been suspended or terminated, Agency will not re-establish service until a new Water Service Agreement is duly executed by Customer and approved by the Agency’s Board of Directors.

Unless otherwise agreed by Agency or provided in Section 5.2.2 and Exhibit 8 of the Judgement and Physical Solution entered in the Antelope Valley Groundwater Cases, Santa Clara Case No. 1-05-CV-049053, Agency shall retain the right to all return flows associated or resulting from water delivered by Agency to Customer under this Agreement.

AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 3 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003

NOTICE & RELEASE CONCERNING WATER PRESSURE HAZARD
Customer expressly acknowledges that Agency may install a check valve or other backflow prevention device at Agency’s meter serving Customer's property, and that such device will cause and result in water pressure within Customer’s private plumbing system. Customer further acknowledges and understands that a properly operating pressure relief valve must be installed by Customer and maintained by Customer.

Customer understands that failure to maintain properly operating pressure relief/regulating valve(s) on Customer Side of the Meter is a dangerous practice that can result in personal injury and property damage. Customer hereby agrees to waive, release, and hold the Agency and its officers, directors, employees, insurers, representatives, and contractors harmless from any and all liabilities, claims, demands, actions, rights of action, losses, costs, fines, penalties, expenses, or damages of any kind resulting from malfunctioning, failure, or absence of check valves, backflow prevention devices, and pressure relief/regulating valve(s) on Customer Side of the Meter, including without limitation, damages to persons or property, direct damages, special damages, incidental damages, consequential damages, or loss of profit or revenue.

NOTICE & RELEASE CONCERNING DRIVEWAYS
Customer expressly acknowledges that any construction, including walls, concrete structures, or asphalt installed on the Customer’s property over any equipment furnished and installed by Agency without notification and approval by Agency in writing is prohibited. Agency shall not be liable for any damage to Customer’s equipment or facilities that are not approved by the Agency.

CONDITIONS OF APPROVAL
The Customer agrees to comply with the specific requirements of Agency Conditions of Approval (Exhibit C) as a part of this Agreement WSA No.: WSA-21-003 , before approval of this Agreement can be granted by the Agency.

PRIVACY DISCLOSURE
Customer privacy is important to Agency and Customer information shall be confidential unless the Customer consents in writing or as otherwise required by law. This shall encompass confidentiality of Customer address, telephone number, e-mail, specific billing, credit, or water usage information. Customer can request that personal information retained by the Agency be released to unauthorized persons.

Please provide Customer name, company (if applicable), title, billing address, water service address, phone number(s), email address(es), and signature.

CUSTOMER APPROVAL
Customer/Representative (print name) Company Name (if applicable) City of California City
Title Water Service Address
Billing Address Phone Number(s)
Signature E-Mail Address(es)

AGENCY APPROVAL
Agency Representative (print name) Agency Name
Antelope Valley-East Kern Water Agency
Title Address
6500 West Avenue N, Palmdale, CA 93551-2855
Signature Phone Number
(661) 943-3201
AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 4 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003 EXHIBIT A Agency Water Service Facilities - Typical
Agency-provided meter and related connection equipment and facilities for water service.

Agency Meter
Service Facilities
AVEK Water
Service Connection
Customer Point of
Connection
To Customer Service area(s), real property(ies), dwellings, water facilities, and/or business(es) as per approved Water Service Agreement (WSA). All use of water delivered and facilities beyond this point are the responsibility of the Customer.

Facility operation, maintenance, and liability in the delivery of AVEK water is made per Agency WSA and Rules and Regulations.

Typical installation shown for reference only. Actual design, construction, and specifications of Agency Meter Service Facilities may vary.

AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 5 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003

EXHIBIT B
Customer Premises
Service area(s), real property(ies), dwellings, water facilities, and/or business(es).

Area Map
See Service
Area Detail
Area Map
See Service
Area Detail
AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 6 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003 EXHIBIT B, Con’t
Customer Premises
Service area(s), real property(ies), dwellings, water facilities, and/or business(es). Service Area Service Area AVEK Water Agency
Water Service Agreement (WSA)-City of California City Page 7 of 7 Rev Date: 04/27/2021

WATER SERVICE AGREEMENT

M&I TREATED (POTABLE) WATER USER
Customer Name: City of California City WSA No: WSA-21-003

Conditions for Approval of Water Service
Prior to approval of Treated (Potable) Water Use from the Agency, the Customer shall comply with specific conditions as outlined in the Agency Rules and Regulations. The Agency and its representative(s) reserve the right to perform an annual inspection of Customer’s Premises in order to verify Customer’s compliance with Agency Rules and Regulations including all cross-connection and backflow prevention requirements of the Agency (Article 3.35); separating Untreated (Non-Potable) and Treated (Potable) Water systems via an approved air gap.

The following conditions for final approval for water service must be meet prior to water service to the Service Area(s), the real property(ies), dwellings, water facilities, and/or business(es) indicated in Exhibit B of Water Service Agreement WSA No.: WSA-21-003 :
1) Applicable fees have been paid to the Agency per the Rules and Regulations. 2) Acceptable backflow test report results have been submitted to the Agency. 3) Customer is to submit Water System drawings to the Agency for their records. Drawings are to include a complete watering system including the location, size, and type of all backflow prevention devices, pressure, and non-pressure water lines, valves, and sprinkler heads in those areas requiring a permanent, and/or temporary irrigation system.
4) Drawings are to include any adjacent public right-of-way, the locations of any site improvements, and required building permits.
5) The Customer shall not encumber or impair the Agency’s ability to maintain an adequate level of service to other Agency Customers; compromising public health, safety, or welfare due to circumstances that affect the availability of Agency water supply.

EXHIBIT C
Conditions of Approval
Treated (Potable) Water User
1 OMLO: October 2018

CITY OF CALIFORNIA CITY

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIES AND DATE.

This Professional Services Agreement (“Agreement”) is made and entered into this _____ day of ________, 20___, by and between the City of California City, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 21000 Hacienda Blvd., California City, CA 93505 ("City") and Arrow Engineering Services, Inc., a California Corporation with its principal place of business at 42140, 10th Street West, Lancaster, CA 93534 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Engineering & GIS consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional Engineering & GIS consulting services to public clients, is licensed in the State of California, and is very familiar with City requirements.

2.2 Project.

City desires to engage Consultant to render such professional Engineering & GIS consulting services for Citywide GIS system hosting and basic maintenance ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Time of Performance.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Engineering & GIS consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance immediately following execution of this Agreement by the Parties. Consultant shall complete the services required hereunder on or before eight weeks from signed contract and notice to proceed. 2 OMLO: October 2018

3.2 Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.

Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Brian Glidden.

3.2.5 City's Representative. The City hereby designates Joe Barragan, Public Works Director or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be 3 OMLO: October 2018
authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Brian Glidden, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Insurance.
4 OMLO: October 2018

3.2.10.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

3.2.10.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General
Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Code 1), or if Consultant has no owned autos, “Hired Auto” (Code 8) and “NonOwned Auto” (Code 9), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation/Employer’s Liability: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. If Consultant has no employees or agents, Consultant shall not be required to maintain Workers’ Compensation Insurance. However, in the event that Consultant hires employees or agents during the term of this Agreement, Consultant shall obtain and maintain Workers’ Compensation/Employer’s Liability Insurance in accordance with this section. (D) Professional Liability (Errors & Omissions) Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. 5 OMLO: October 2018

3.2.10.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability
(B) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement.
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (C) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (D) Workers' Compensation:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation
stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.
(E) Professional Liability (Errors & Omissions):
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This
insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. 6 OMLO: October 2018

3.2.10.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.10.5 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. Consultant shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.2.10.6 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or selfinsured retention.

3.2.10.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.2.10.8 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.
7 OMLO: October 2018

3.2.10.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.2.10.10 Enforcement of Agreement Provisions (non estoppel).

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.2.10.11 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained herein are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. If the Consultant maintains higher limits than the minimums contained herein, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

3.2.10.12 Claims Made Policies. If any of the required policies provide coverage on a claims-made basis:
(A) The Retroactive Date must be shown and must be before the effective date of the Agreement or the beginning of work under this Agreement. (B) Such insurance must be maintained and evidence of
insurance must be provided for at least five (5) years after completion of all services under this Agreement.
(C) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the effective date of the Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of all services under this Agreement.

3.2.10.13 Special Risks or Circumstances. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
8 OMLO: October 2018

3.2.10.14 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

3.2.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.12 Water Quality Management and Compliance.

3.2.12.1 Storm Water Management. Storm, surface, nuisance, or other waters may be encountered at various times during the Services. Consultant hereby acknowledges that it has investigated the risk arising from such waters, and assumes any and all risks and liabilities arising therefrom.

3.2.12.2 Compliance with Water Quality Laws, Ordinances and Regulations. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant shall additionally comply with the lawful requirements of the City, and any other water district, municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.
9 OMLO: October 2018

3.2.12.3 Standard of Care. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Section 3.2.12.2 of this Agreement. Consultant further warrants that it, its employees and subcontractors have or will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services.

3.2.12.4 Liability for Non-compliance.
(A) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Section 3.2.12.2 of this Agreement is a violation of federal and state law.

Notwithstanding any other indemnity contained in this Agreement, Consultant agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(B) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Consultant’s failure to comply with any applicable water quality law, regulation, or policy. Consultant hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity.
(C) Damages: City may seek damages from Consultant for
delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in Section 3.2.12.2 of this Agreement, or any other relevant water quality law, regulation, or policy.

3.3 Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed five thousand nine hundred and 40 dollars, $5,940 without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give 10 OMLO: October 2018
written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “C” may be adjusted each year at the time of renewal as set forth in Exhibit “C.”

3.4 California Labor Code Provisions.

3.4.1 Prevailing Wage Law. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall obtain a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement from the website of the Division of Labor Statistics and Research of the Department of Industrial Relations located at www.dir.ca.gov/dlsr/. In the alternative, Consultant may view a copy of the prevailing rates of per diem wages at the City.

Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4.2 Registration. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 11 OMLO: October 2018

3.5 Accounting Records.

3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.6 General Provisions.

3.6.1 Termination of Agreement.

3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.6.1.4 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Arrow Engineering Services Inc. (AESI)
42140 10th Street West
Lancaster, CA 93534
ATTN: Brian Glidden
City: City of California City
21000 Hacienda Blvd.

California City, California 93505
ATTN Joe Barragan, Public Works Director
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its 12 OMLO: October 2018
applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.6.2 Ownership of Materials and Confidentiality.

3.6.2.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

3.6.2.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant.

Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.6.2.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information.

Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either:
(1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and nonappealable order by a court of competent jurisdiction requires that City release such information. 13 OMLO: October 2018

3.6.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.6.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney's fees and all other costs of such action.

3.6.5 Indemnification.

3.6.5.1 Scope of Indemnity. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its officials, officers, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims’) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers.

3.6.5.2 Additional Indemnity Obligations. To the fullest extent permitted by law, Consultant shall defend, with counsel of City’s choosing and at Consultant’s own cost, expense and risk, any and all claims, suits, actions or other proceedings of every kind covered by Section 3.6.5.1 that may be brought or instituted against City or its directors, officials, officers, employees, volunteers and agents. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, volunteers and agents as part of any such claim, suit, action or other proceeding. Consultant shall also reimburse City for the cost of any settlement paid by City or its directors, officials, officers, employees, agents or volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City's attorney's fees and costs, including expert witness fees. Consultant shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials officers, employees, agents, or volunteers.

3.6.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
14 OMLO: October 2018

3.6.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Kern County.

3.6.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.6.9 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.6.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.6.11 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.6.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.6.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working 15 OMLO: October 2018
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability.

For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.6.18 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.6.19 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.6.20 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.6.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.7 Subcontracting.

3.7.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[SIGNATURE PAGE TO FOLLOW]

1 OMLO: October 2018
EXHIBIT "A"

SCOPE OF SERVICES
Copyright AESI – Confidential
May 23, 2024 Job No. 22-7003
City of California City
Latisha Lamberth
Acting City Manager
21000 Hacienda Blvd.

California City, CA 93505
RE: CityWide GIS System – Yearly Minimal Maintenance

CITYWIDE GIS DEVELOPMENT AND MAINTENANCE (BUDGET)
We are pleased to provide our budget proposal below for minimal on-going GIS system hosting and maintenance. This proposal covers the annual GIS server and application hosting fees. Our current hosting is paid up until July.

A GIS system is all about accessing data and the data being up-to-date. You rely on this data to make quicker more accurate decisions. The data maintenance and updates are key to a successful system. In this minimal ongoing budget we are only including updates of parcels and parcel ownership data. We have assumed 4 updates per year like we perform for other agencies, but if you desire less frequent updates we can adjust the proposal accordingly. We have provided previous proposals that cover water line, zoning and other data updates. If you desire any other date updates please let us know and we will provide a proposal.

Basic System Maintenance
Yearly System Hosting (server hosting, backup and access) $ 2,800 Yearly Technical Support (During Business Hours) (Server Restarts, Map downtime checks, etc.)
800
Yearly Account Support (Log-in Assistance, password resets, etc.) 200 Quarterly Parcel and Ownership Information Updates using Kern County Assessor Data (typical 4 updates / year)
3,600
Basic System Maintenance Budget Total $ 7,400
GIS Maintenance Budget Job No. 22-7003
May 23, 2024 Page 2
Copyright AESI – Confidential
Fee Schedule (Valid From: December 2023 – December 2024) GPS Asset Location Technician (non-prevailing wage) $120.00/hr.

Principal Engineer/Surveyor $165.00/hr.

GIS Application Development $160.00/hr.

GIS Manager $165.00/hr.

GIS Technical Specialist $140.00/hr.

Professional Engineer $135.00/hr.

Associate Engineer $130.00/hr.

Jr. Engineer/EIT $130.00/hr.

Secretary/Administrative Assistant $55.00/hr.

Professional Surveyor - Office $140.00/hr.

Reimbursable Items
Plots & Scans $20 to 40/ea.

Travel $0.67/mi.

Terms of Payment
To commence with the project, Arrow Engineering Services will require a signed contract and notice to proceed. Progress billing will be made on a monthly basis with payment due within 30 days.

Any documents required by your accounting department i.e. W-9, insurance requirements, certified payroll, etc. need to be forwarded to us to aid in the billing process.

Our hourly rate fee schedule is subject to change and if an update is made, you will be notified.

Updated rates will be effective 30 calendar days after notification. This will only affect additional scope and hourly items.

Arrow Engineering is prepared to commence work immediately. If you would like us to proceed with the project, please sign and fax or e-mail this proposal along with the required retainer and the Project Information form. The proposal and fee amount is valid from 30 days of proposal date.

Should Arrow Engineering pursue litigation or arbitration for the enforcement of interpretation of this agreement, the prevailing party in such litigation or arbitration shall be entitled to an award of reasonable attorney’s fees.

Termination – The obligation to provide further services under this Agreement may be terminated by either party upon 7 days written notice in the event of substantial failure by the other party to perform in accordance with the terms thereof through no fault of the terminating party, or upon 30 days written notice for the convenience of the terminating party. If any change occurs in the ownership of the Client, the Consultant shall have the right to immediately terminate this Agreement. In the event of any termination, the Consultant shall be paid for all services rendered and expenses incurred to the effective date of termination, and other reasonable expenses incurred by the Consultant as a result of such termination. If the Consultants compensation is a fixed fee, the amount payable for services will be a proportional amount of the total fee based on GIS Maintenance Budget Job No. 22-7003
May 23, 2024 Page 3
Copyright AESI – Confidential
the ratio of the amount of the services performed, as reasonable determined by the Consultant, to the total amount of services which were to have been performed.

Right To Rely - Arrow Engineering shall be entitled to rely on, and shall not be responsible for, the accuracy, completeness, and timeliness of services and information furnished by the Owner and Owner’s consultants.

Equitable Adjustment - If the Client suspends the Project, Arrow Engineering shall be compensated for services performed prior to notice of such suspension. When the Project is resumed, Arrow Engineering shall be compensated for expenses incurred in the interruption and resumption Arrow Engineering’s services. Arrow Engineering fees for the remaining services and the time schedules shall be equitably adjusted.

The drawings, specifications and other documents prepared by the Engineer/Surveyor for this project are instruments of the service for use solely with respect to this project. The Engineer/Surveyor’s drawing(s) or other documents shall not be used by the owner or others on other projects, except by agreement in writing with appropriate compensation to the Engineer.

Neither the owner nor the Engineer/Surveyor can assign this agreement to a third party without the written consent of the other. All computer files remain the sole property of the engineer.

In the event the Client uses the Instruments of Service without retaining the authors of the Instruments of Service, the Owner releases Arrow Engineering and Arrow Engineering consultant(s) from all claims and causes of action arising from such uses. The Client, to the extent permitted by law, further agrees to indemnify and hold harmless Arrow Engineering and its consultant(s) from all costs and expenses, including the cost of defense, related to claims and causes of action asserted by any third person or entity to the extent such costs and expenses arise from the Client’s use of the Instruments of Service under this Section.

If you have any questions or wish to discuss the project, we will be happy to meet with you at your earliest convenience.

Registered Civil Engineer No. 48287
Licensed Surveyor No. 7727
Sincerely,
Brian D. Glidden, P.E., L.S.

BDG

SLG Master Services Agreement Hyperlink v9 04.01.2020 1 Everbridge, Inc.

Master Services Agreement
This Master Services Agreement (“Agreement”) is entered into by and between Everbridge, Inc. (“Everbridge”) and the client (“Client”) identified on the Quote (as defined below), effective on the date of Client’s signature on the Quote (“Effective Date”). Everbridge and Client are each sometimes referred to as a “Party” and collectively, the “Parties.”

1. SERVICES.

1.1 Orders. Everbridge shall provide Client access to its proprietary interactive communication solutions (the “Solutions”) subject to the terms and conditions set forth in this Agreement and the description of services and pricing provided in the applicable quote or other ordering document (e.g., statement of work) (the “Quote”) and the applicable Solution documentation (the “Documentation”). If applicable, Everbridge shall provide the training and professional services (“Professional Services”) set forth in the Quote. Collectively, the Solutions and Professional Services are referred to as the “Services”. Everbridge shall provide Client with login and password information for each User (as defined below) and will configure the Solutions based on the maximum number of Contacts (as defined below) or Users, as applicable depending on the Solutions ordered. Client shall undergo the initial setup and training as set forth in the onboarding Documentation within sixty (60) days of the Effective Date. Unless otherwise provided in the applicable Quote or Documentation, Services are purchased as annual subscriptions.

1.2 Users; Contacts. “Users” are individuals who are
authorized by Client from time to time to use the Solutions for the purposes of sending notifications, configuring templates, reporting or managing data, serving as system administrators, or performing similar functions, and who have been supplied user identifications and passwords by Client. Users may include employees and contractors of Client or an Included Department. “Included Department” means any enterprise department, office, agency, or other entity that receives a majority of its funding from the same general or enterprise fund, as applicable, as the Client. “Contacts” are individuals who Client contacts through the Solutions and/or who provides their personal contact information to Everbridge, including through an opt-in portal. If applicable to the particular Solution, the number of Users and/or Contacts that may be authorized by Client is set forth on the Quote.

1.3 Affiliated Entities. Departments, divisions, agencies or governmental entities which are affiliated politically, operationally or otherwise with Client, and which are not an Included Department (each, an “Affiliated Entity”) may purchase Services to the same extent as Client, provided, that the Affiliated Entity purchases the Services on the same terms and conditions as are contained in this Agreement pursuant to a fully executed Quote agreed to by Everbridge and such Affiliated Entity. Client and the Affiliated Entity shall maintain separate accounts with Everbridge. Solely as to the Agreement between Everbridge and such Affiliated Entity, all terms and references to “Client” shall refer to such Affiliated Entity upon execution of an applicable Quote. By executing a Quote each Affiliated Entity agrees to be bound by all the terms and conditions herein as to such Affiliated Entity. An entity that otherwise qualifies under this definition will be included within the meaning of Affiliated Entity even though it qualifies after the execution of this Agreement.

2. PAYMENT TERMS. Everbridge shall invoice Client annually in advance for all Solutions and Professional Services, and Client shall pay the fees set forth in the Quote within thirty (30) days from date of invoice. If Client exceeds any role-based numbers, messaging credits or other usage levels specified in the Quote, then Everbridge may invoice Client for any overages at the then applicable rate. All Professional Services must be used within 12 months from date of purchase. Late payments shall accrue interest at a rate of one and one-half percent (1.5%) per month or the highest rate allowed by applicable law, whichever is lower. Such interest shall be in addition to any other rights and remedies of Everbridge. Unless otherwise provided, the fees set forth in the Quote do not include any local, state, federal or foreign taxes, levies or duties of any nature, all of which Client is responsible for paying, except for those relating to Everbridge’s net income or property. If Everbridge is legally obligated to collect or pay taxes for which Client is responsible, the appropriate amount shall be invoiced to and paid by Client, unless Client provides a valid tax exemption certificate.

3. RESPONSIBILITIES.

3.1 Client Data. Client shall retain all ownership rights in all Contact data and all electronic data Client transmits to Everbridge to or through the Solutions (“Client Data”). Client represents that it has the right to authorize and hereby does authorize Everbridge to collect, store and process Client Data subject to the terms of this Agreement. Client shall maintain a copy of all Contact data it provides to Everbridge.

3.2 Use of Solutions. Client is responsible for all activity occurring under Client’s account(s) and shall comply with all applicable Privacy Laws (as defined below) and all other applicable laws and regulations in connection with Client’s use of the Services, including its provision of Client Data to Everbridge.

Client shall be responsible for ensuring that there is a lawful basis for sending communications through the Solutions to Contacts including, where applicable, obtaining the required consent of Contacts. Client shall use the Service in accordance with Everbridge’s then applicable Acceptable Use Policy posted on www.everbridge.com. Client shall promptly notify Everbridge of any unauthorized use of any password or account of which Client becomes aware. Client acknowledges that the Solutions are a passive conduit for the transmission of Client Data, and Everbridge has no obligation to screen, preview or monitor content, and shall have no liability for any errors or omissions or for any defamatory, libelous, offensive or otherwise unlawful content in any Client Data, or for any losses, damages, claims, or other actions arising out of or in connection with any data sent, accessed, posted or otherwise transmitted via the Solutions by Client, Users or Contacts, except to the extent such losses are caused directly by the acts or omissions of Everbridge personnel.

3.3 Data Privacy. Everbridge shall abide by all applicable Privacy Laws in connection with the operation of the Solutions. “Privacy Laws” means all U.S. federal and state laws and regulations regarding consumer and data protection and privacy.

3.4 Data Security. Everbridge’s IT security and
compliance program includes the following standards generally adopted by industry leading SaaS providers: (i) reasonable and appropriate technical, organizational, and security measures against the destruction, loss, unavailability, unauthorized access or alteration of Client Data in the possession or under the control of Everbridge, including measures to ensure the availability of information following interruption to, or failure of, critical business 2 processes; and (ii) an annual assessment of its security controls performed by an accredited third party audit firm in accordance with the Statement on Standards for Attestation Engagements No. 18 (SSAE 18). Upon request, Everbridge shall provide Client with a copy of its current SSAE 18 SOC 2 report. Everbridge’s security framework is based on the security requirements and controls within US National Institute of Standards and Technology (NIST) Special Publication 800-53 – Security and Privacy Controls for Information Systems and Organizations. The NIST 800-53 security requirement standard has direct mapping to other security and data privacy frameworks, including global information security standard ISO 27001, HIPAA-HITECH, and HITRUST. The data security procedures that Everbridge follows when providing the Solutions are included at the following URL:
https://docs.everbridge.com/cdn/legal/Data-Security-Exhibit.pdf.

4. TERM. The term of this Agreement shall begin on the
Effective Date and shall expire when all underlying Quotes with Client or its Affiliates have expired in accordance with the terms of such Quotes, unless terminated earlier as provided herein.

Services under an applicable Quote will begin as set forth in such Quote and shall continue for the initial term specified therein (“Initial Service Term”). If a Quote contains Services added to an existing subscription, such added Services will be coterminous with the Initial Service Term or applicable renewal Service term (“Renewal Term”), unless otherwise agreed to by the Parties.

Client shall be notified at least sixty (60) days in advance of any Renewal Term. If at the end of the applicable Quote, Client intends to renew the Agreement, but has not provided a timely executed written renewal prior to the end of such term, then Everbridge, in its sole discretion, shall continue the Service(s) hereunder for thirty (30) days (the “Grace Period”) in order to secure an executed renewal by Client, provided that Client shall pay to Everbridge the annual fee then in effect divided by twelve (12) (the “Monthly Holdover Fee”). The Grace Period is provided to Client as a courtesy so that Services will not be terminated prior to the execution of a renewal. Due to insurance and liability reasons Everbridge can only provide one Grace Period and will charge the Monthly Holdover Fee. The Monthly Holdover Fee is instituted in order to protect Client from termination or suspension of the Services, and to ensure that timely renewals are entered into.

Monthly Holdover Fees shall not be returned or refunded to the Client as a credit towards any renewal. Except as set forth in an applicable Quote, or unless this Agreement is terminated as provided herein, upon expiration of the term of any Quote, such Quote shall renew automatically for successive subsequent periods of twelve (12) months unless either party notifies the other party of its intent to terminate at least thirty (30) days prior to the end of the then current term. Everbridge reserves the right to increase its fees in any Renewal Term by three percent (3%).

5. TERMINATION; SUSPENSION.

5.1 Termination by Either Party. Either Party may
terminate this Agreement upon the other Party's material breach of the Agreement, provided that (i) the non-breaching Party sends written notice to the breaching Party describing the breach in reasonable detail; (ii) the breaching Party does not cure the breach within thirty (30) days following its receipt of such notice (the "Notice Period"); and (iii) following the expiration of the Notice Period, the non-breaching Party sends a second written notice indicating its election to terminate this Agreement. If Client terminates this Agreement due to material breach by Everbridge, Client shall be entitled to a refund of any prepaid unused fees on a pro-rata basis, provided that such refund shall be Client’s sole and exclusive remedy.

5.2 Termination or Suspension for Non-Payment. If
Client fails to pay any amounts due within thirty (30) days of their due date, Everbridge may terminate this Agreement upon thirty (30 days’ prior written notice to Client. Termination for non-payment shall not relieve Client of its outstanding obligations (including payment) under this Agreement. In lieu of termination for nonpayment, Everbridge may suspend Client’s access to the Solutions upon written notice to Client.

5.3 Suspension. Everbridge may temporarily suspend
Client’s access to the Solutions or any portion thereof for (i) emergency network repairs, threats to, or actual breach of network security; or (ii) any legal, regulatory, or governmental prohibition affecting the Solution. Everbridge shall use its best efforts to notify Client through its Client Portal and/or via email prior to such suspension and shall reactivate any affected portion of the Solution as soon as possible.

6. PROPRIETARY RIGHTS.

6.1 Grant of License. Subject to the terms and
conditions of this Agreement, Everbridge hereby grants to Client, during the term of this Agreement, a limited, non-exclusive, nontransferable, non-sublicensable right to use the Solutions.

6.2 Restrictions. Client shall use the Solution solely for its internal business purposes. In particular, Client’s use of the Solutions shall not include service bureau use, outsourcing, renting, reselling, sublicensing, or time-sharing. Client shall not (i) sell, transfer, assign, distribute or otherwise commercially exploit or make the Solution available to any third party except as expressly set forth herein; (ii) modify or make derivative works based upon the Solution; (iii) reverse engineer the Solution; (iv) remove, obscure or alter any proprietary notices or labels on the Solution or any materials made available by Everbridge; (v) use, post, transmit or introduce any device, software or routine (including viruses, worms or other harmful code) which interferes or attempts to interfere with the operation of the Solution; or (vi) defeat or attempt to defeat any security mechanism of any Solution.

6.3 Reservation of Rights. The Solutions (including all associated computer software (whether in source code, object code, or other form), databases, indexing, search, and retrieval methods and routines, HTML, active server pages, intranet pages, and similar materials) and all intellectual property and other rights, title, and interest therein (collectively, “IP Rights”), whether conceived by Everbridge alone or in conjunction with others, constitute Confidential Information and the valuable intellectual property, proprietary material, and trade secrets of Everbridge and its licensors and are protected by applicable intellectual property laws of the United States and other countries. Everbridge owns (i) all voluntary feedback regarding the design or operation of the Services (except for the Client Data) provided to Everbridge by Users, Client and Contacts in conjunction with the Services, and (ii) all aggregated and anonymized transactional, performance, derivative data and metadata generated in connection with the Solutions, which are generally used to improve the functionality and performance of the Services. Except for the rights expressly granted to Client in this Agreement, all rights in and to the Solutions and all of the foregoing elements thereof (including the rights to any work product resulting from Professional Services and to any modification, enhancement, configuration or derivative work of the Solutions) are and shall remain solely owned by Everbridge and its respective licensors. Everbridge may use and provide Solutions and Professional Services to others that are similar to those provided to Client hereunder, and Everbridge may use in engagements with others any knowledge, skills, experience, 3 ideas, concepts, know-how and techniques used or gained in the provision of the Solutions or Professional Services to Client, provided that, in each case, no Client Data or Client Confidential Information is disclosed thereby.

7. CONFIDENTIAL INFORMATION.

7.1 Definition. “Confidential Information” means all
information of a Party (“Disclosing Party”) disclosed to the other Party (“Receiving Party”), whether orally, electronically, in writing, or by inspection of tangible objects (including, without limitation, documents or prototypes), that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential Information includes without limitation, all Client Data, the Solutions, and either Party’s business and marketing plans, technology and technical
information, product designs, reports and business processes.

Confidential Information shall not include any information that: (i) is or becomes generally known to the public without breach of any obligation owed to Disclosing Party; (ii) was known to Receiving Party prior to its disclosure by Disclosing Party without breach of any obligation owed to Disclosing Party; (iii) was independently developed by Receiving Party without breach of any obligation owed to Disclosing Party; or (iv) is received from a third party without breach of any obligation owed to Disclosing Party.

7.2 Protection. Receiving Party shall not disclose or use any Confidential Information of Disclosing Party for any purpose other than performance or enforcement of this Agreement without Disclosing Party’s prior written consent. If Receiving Party is compelled by law to disclose Confidential Information of Disclosing Party, including under the Freedom of Information Act or other public information request (i.e., “state sunshine” laws) it shall provide Disclosing Party with prior notice of such compelled disclosure (to the extent legally permitted) and reasonable assistance, at Disclosing Party's cost, if Disclosing Party wishes to contest the disclosure. Receiving Party shall protect the confidentiality of Disclosing Party's Confidential Information in the same manner that it protects the confidentiality of its own confidential information of like kind (but in no event using less than reasonable care). Receiving Party shall promptly notify Disclosing Party if it becomes aware of any breach of confidentiality of Disclosing Party's Confidential Information.

7.3 Upon Termination. Upon any termination of this
Agreement, the Receiving Party shall continue to maintain the confidentiality of the Disclosing Party's Confidential Information and, upon request and to the extent practicable, destroy all materials containing such Confidential Information.

Notwithstanding the foregoing, either Party may retain a copy of any Confidential Information if required by applicable law or regulation, in accordance with internal compliance policy, or pursuant to automatic computer archiving and back-up
procedures, subject at all times to the continuing applicability of the provisions of this Agreement.

8. WARRANTIES; DISCLAIMER.

8.1 Everbridge Warranty. Everbridge shall provide the
Solutions in material compliance with the functionality and specifications set forth on the applicable Solution Documentation.

Everbridge shall provide 24X7X365 customer support in
accordance with its most recently published Support Services Guide. Professional Services shall be performed in a professional manner consistent with industry standards.

8.2 Disclaimer. THE FOREGOING REPRESENT THE

ONLY WARRANTIES MADE BY EVERBRIDGE HEREUNDER,

AND EVERBRIDGE EXPRESSLY DISCLAIMS ALL OTHER

WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED,

STATUTORY, OR OTHERWISE, WARRANTIES OF

MERCHANTABILITY OR FITNESS FOR A PARTICULAR

PURPOSE, TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW. EVERBRIDGE DOES NOT WARRANT

THAT THE SOLUTION WILL OPERATE ERROR FREE OR
WITHOUT INTERRUPTION. WITHOUT LIMITING THE

FOREGOING, IN NO EVENT SHALL EVERBRIDGE HAVE ANY

LIABILITY FOR PERSONAL INJURY (INCLUDING DEATH) OR

PROPERTY DAMAGE ARISING FROM FAILURE OF THE

SOLUTION TO DELIVER AN ELECTRONIC COMMUNICATION,

HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY,

EVEN IF EVERBRIDGE HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGE.

8.3 SMS Transmission. CLIENT ACKNOWLEDGES
THAT THE USE OF SHORT MESSAGING SERVICES (“SMS”),

ALSO KNOWN AS TEXT MESSAGING, AS A MEANS OF

SENDING MESSAGES INVOLVES A REASONABLY LIKELY

POSSIBILITY FROM TIME TO TIME OF DELAYED,

UNDELIVERED, OR INCOMPLETE MESSAGES AND THAT THE

PROCESS OF TRANSMITTING SMS MESSAGES CAN BE

UNRELIABLE AND INCLUDE MULTIPLE THIRD PARTIES THAT

PARTICIPATE IN THE TRANSMISSION PROCESS, INCLUDING

MOBILE NETWORK OPERATORS AND INTERMEDIARY
TRANSMISSION COMPANIES. ACCORDINGLY, EVERBRIDGE

RECOMMENDS THAT SMS MESSAGING NOT BE USED AS

THE SOLE MEANS OF COMMUNICATION IN AN EMERGENCY
SITUATION.

9. INDEMNIFICATION.

9.1 By Client. Client shall defend, indemnify and hold
Everbridge harmless against any loss or damage (including reasonable attorneys’ fees) incurred in connection with any third party claim, suit or proceeding (“Claim”) against Everbridge arising out of any data sent, posted or otherwise transmitted via the Solution by Client or Contacts, or any breach by Client of Sections 3 or 6.

9.2 By Everbridge. Everbridge shall defend, indemnify
and hold Client harmless from and against any Claim against Client arising out of (i) any breach by Everbridge of applicable Privacy Laws; (ii) any breach by Everbridge of its data security obligations under Section 3.4; or (iii) an allegation that the Solution as contemplated hereunder infringes an issued patent or other IP Right in a country in which the Solution is provided to Client. If (x) any aspect of the Solution is found or, in Everbridge’s reasonable opinion is likely to be found, to infringe upon the IP Right of a third party or (y) the continued use of the Solution is enjoined, then Everbridge will promptly and at its own cost and expense at its option: (i) obtain for Client the right to continue using the Solution; (ii) modify such aspect of the Solution so that it is non-infringing; or (iii) replace such aspect of the Solution with a non-infringing functional equivalent. If, after all commercially reasonable efforts, Everbridge determines in good faith that options (i) - (iii) are not feasible, Everbridge will remove the infringing items from the Solution and refund to Client on a pro-rata basis any prepaid unused fees paid for such infringing element. The remedies set forth in this Section 9.2 are Client’s exclusive remedy for Claims for infringement of an IP Right. Everbridge shall have no obligation or liability for any claim pursuant to this Section to the extent arising from: (i) the combinations, operation, or use of the Solution supplied under this Agreement with any product, device, or software not supplied by Everbridge to the extent the combination creates the infringement; (ii) the unauthorized alteration or modification by Client of the Solution; or (iii) Everbridge’s 4 compliance with Client's designs, specifications, requests, or instructions pursuant to an engagement for Everbridge
Professional Services relating to the Solution to the extent the claim of infringement is based on the foregoing.

9.3 Indemnification Process. The indemnifying party’s
obligations under this Section 9 are contingent upon the indemnified party (a) promptly giving notice of the Claim to the indemnifying party once the Claim is known; (b) giving the indemnifying party sole control of the defense and settlement of the Claim (provided that the indemnifying party may not settle such Claim unless such settlement unconditionally releases the indemnified party of all liability and does not adversely affect the indemnified party’s business or service); and (c) providing the indemnifying party all available information and reasonable assistance.

10. LIABILITY LIMITS. To the maximum extent permitted by law, neither Party shall have any liability to the other Party for any indirect, special, incidental, punitive, or consequential damages, however caused, under any theory of liability, and whether or not the Party has been advised of the possibility of such damage.

Except for its indemnification obligations under Section 9.2, notwithstanding anything in this Agreement to the contrary, in no event shall Everbridge’s aggregate liability, regardless of whether any action or claim is based on warranty, contract, tort or otherwise, exceed amounts paid or due by Client to Everbridge hereunder during the 12-month period prior to the event giving rise to such liability. The foregoing limitations shall apply even if the non-breaching party’s remedies under this Agreement fail their essential purpose.

11. INSURANCE. Everbridge will maintain during the term of this Agreement the following coverages: (i) General Liability insurance, with liability limits of at least $5,000,000; (ii) Network Technology/Cyber Liability coverage with limits of at least $5,000,000; and (iii) workers’ compensation insurance as required by the state or local law in which the work is performed. Upon request by Client, Everbridge shall provide Client a certificate of insurance evidencing such coverages.

12. MISCELLANEOUS.

12.1 Non-Solicitation. As additional protection for
Everbridge’s proprietary information, for so long as this Agreement remains in effect, and for one year thereafter, Client agrees that it shall not, directly or indirectly, solicit, hire or attempt to solicit any employees of Everbridge; provided, that a general solicitation to the public for employment is not prohibited under this section.

12.2 Force Majeure; Limitations. Everbridge shall not be responsible for performance under this Agreement to the extent precluded by circumstances beyond Everbridge’s reasonable control, including without limitation acts of God, acts of government, flood, fire, earthquakes, civil unrest, acts of terror, labor problems, regional technology interruptions, or denial of service attacks. The Solution delivers information for supported Contact paths to public and private networks and carriers, but Everbridge cannot guarantee delivery of the information to the recipients. Final delivery of information to recipients is dependent on and is the responsibility of the designated public and private networks or carriers.

12.3 Waiver; Severability. The failure of either Party
hereto to enforce at any time any of the provisions or terms of this Agreement shall in no way be considered to be a waiver of such provisions. If any provision of this Agreement is found by any court or other authority of competent jurisdiction to be invalid, illegal or unenforceable, that provision shall, to the extent required, be deemed deleted or revised, and the remaining provisions shall continue in full force and effect to the maximum extent possible so as to give effect to the intent of the Parties.

12.4 Assignment. Neither party may assign this
Agreement to any third party except upon the other Party’s prior written consent, which consent shall not be unreasonably withheld or delayed; provided, that no such consent shall be required in the event of an assignment to an Affiliated Entity or to a successor-ininterest to the business of the assigning Party resulting from a merger, reorganization, or sale of all or substantially all such Party’s assets. Notwithstanding the above, neither Party shall assign this Agreement to any third party which is a competitor of the other Party.

12.5 Governing Law; Attorney’s Fees. This Agreement
shall be governed and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to its conflicts of laws rules. The U.N. Convention on Contracts for the International Sale of Goods shall not apply. The prevailing party in any action arising out of this Agreement shall be entitled to its reasonable attorneys’ fees and costs.

12.6 Notices. Legal notices (e.g., claimed breach or
termination) to be provided under this Agreement shall be delivered in writing (a) in person, (b) by nationally recognized overnight delivery service, or (c) by U.S. certified or first class mail to the other party as set forth on the signature page hereto. All legal notices shall be deemed to have been given upon receipt or, if under (c), three (3) business days after being deposited in the mail. Either party may change its address by giving notice of the new address to the other party pursuant to this Section and identifying the effective date of such change. Everbridge may provide all other notices to Client’s billing contact on the Client Registration Form or, with respect to availability, upgrades or maintenance of the Solutions, to the Everbridge Support Center.

12.7 Marketing. Client consents to Everbridge referencing Client’s name as an Everbridge Client in Everbridge publications, its website, and other marketing materials.

12.8 Equal Employment Opportunity. Everbridge, Inc. is
a government contractor and is subject to the requirements of Executive Order 11246, the Rehabilitation Assistance Act and VEVRAA. Pursuant to these requirements, the Equal Opportunity Clauses found at 41 Code of Federal Regulations sections 60-

1.4(a) (1-7), sections 60-250.4(a-m), sections 60-300.5 (1-11) and sections 60-741.5 (a) (1-6) are incorporated herein by reference as though set forth at length, and made an express part of this Agreement.

12.9 Export Compliant. Neither Party shall export,
directly or indirectly, any technical data acquired from the other pursuant to this Agreement or any product utilizing any such data to any country for which the U.S. Government or any agency thereof at the time of export requires an export license or other governmental approval without first obtaining such license or approval. Client shall not permit Users to send notifications to a Contact in a U.S. embargoed country or in violation of any U.S. export law or regulation.

12.10 U.S. Government End-Users. The Solutions and
related documentation are “commercial items” as defined at 48 C.F.R. 2.101, consisting of “commercial computer software” and “commercial computer software documentation” as such terms are used in 48 C.F.R. 12.212. Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4, U.S. government customers and end-users acquire licenses to the Solutions and related documentation with only those rights set forth herein. 5 12.11 General. This Agreement, including its Exhibits and any Quote, constitutes the entire agreement between the Parties and supersedes all other agreements and understandings
between the Parties, oral or written, with respect to the subject matter hereof, including any confidentiality agreements. This Agreement shall not be modified or amended except by a writing signed by both Parties. ANY NEW TERMS OR CHANGES

INTRODUCED IN A PURCHASE ORDER OR OTHER
DOCUMENT ARE VOID AND OF NO FORCE OR EFFECT.

EVERBRIDGE’S ACKNOWLEDGEMENT OF RECEIPT OF

SUCH DOCUMENT OR ACCEPTANCE OF PAYMENT SHALL

NOT CONSTITUTE AGREEMENT TO ANY TERMS OTHER
THAN THOSE SET FORTH IN THIS AGREEMENT. There are no
third party beneficiaries to this Agreement. Any right, obligation or condition that, by its express terms or nature and context is intended to survive the termination or expiration of this Agreement, shall survive any such termination or expiration hereof. This Agreement, and any other document referencing and governed by this Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but which together shall constitute the same agreement. Each Party agrees to be bound by its digital or electronic signature, whether transmitted by fax machine, in the form of an electronically scanned image (e.g., in .pdf form), by email, or by other means of e-signature technology, and each Party agrees that it shall accept the signature of the other Party transmitted in such a manner.
6 EXHIBIT A
Additional Business Terms
The following additional business terms are incorporated by reference into the Agreement as applicable based on the particular products and services described on the Quote.

If Client Is Ordering Nixle® Products or Community Engagement:

1. Client grants to Everbridge a non-exclusive, royalty free, worldwide and perpetual right and license (including sublicense) to (a) use, copy, display, disseminate, publish, translate, reformat and create derivative works from communications Client sends through the Solutions for public facing communications to citizens, other public groups and public facing websites, including social media (e.g., Google®, Facebook®) (collectively, “Public Communications”), (b) use and display Client’s trademarks, service marks and logos, solely as part of the Public Communications to Contacts who have opted in to receive those Communications, and on other websites where Everbridge displays your Public Communications, as applicable, and (c) place a widget on Client’s website in order to drive Contact opt-in registrations. Client further acknowledges and agrees that all personal information from individuals registering through such widget is owned expressly by Everbridge and such information will be governed by the applicable Privacy Policy.

If Client Is Ordering Everbridge Suite Products:

1. Messaging Credits. The Solutions include units of usage (“Messaging Credits”) for communications sent by Client through the Solutions to multiple Contacts via one or more communication paths (“Notifications”). No Messaging Credits shall be required to send Notifications by push notification (Everbridge mobile application), by email or by pager. If Client’s use of the Solutions exceeds the amount of Messaging Credits allocated to the account or previously purchased, Client shall pay for such overages and charges back to the date they were incurred. Unused Messaging Credits expire at the end of the annual billing period under the applicable Quote and are not refundable. Additional Messaging Credits may be purchased separately.

2. Usage. Messaging Credits shall be applied per Notification sent by Client through the Solutions. A single Notification is defined as follows:
 SMS Text messages:
i. For messages that contain only GSM characters, each 153 characters or portion thereof. ii. For messages that contain any non-GSM characters, each 67 characters or portion thereof. iii. GSM characters include only characters in the GSM 7-bit default alphabet. iv. Character limits for SMS Text messages are determined by telecommunication providers. Everbridge reserves the right to change the length of a single SMS Text message if telecommunication providers update these amounts.
 Voice messages or Conference Voice: One minute or portion of a minute of the voice message, calculated on a cumulative basis per month, per destination country.
 TTY: One minute per TTY message.
 Fax: Per page transmitted.

3. Role-based Limits. If Client exceeds any role-based limits (such as the number of Contacts, Resolvers or authorized users of a Solution) set forth on the applicable Quote, Client shall pay for such additional role-based numbers as of the date that the overage began. Payment shall be at the role-based number rate in the Quote and shall be paid for the duration of the term of such Quote.

4. Other Usage Limits. If the applicable Quote sets forth any geographic, departmental, entity-based or other limitation on usage of the Solutions, then Client’s use of the Solutions is expressly limited to Contacts who are based in such geographic area, department or entity or who otherwise meet the usage limitation criteria specified in the Quote. Client’s use of the Solutions with any Contacts who are not included within such limitations shall constitute a material default under this Agreement and shall subject such Client to additional charges for such unauthorized usage.

5. Data Feeds. Client shall not use any automated device, computer program, software, tool, algorithm, bot or similar process to mine or systematically scrape or extract data from any of the products, except as authorized in writing by Everbridge.

Notwithstanding anything to the contrary in this Agreement, to the extent that Client has purchased or accesses Data Feeds, the content such feeds are provided solely on an “AS IS” and “AS AVAILABLE” basis and Everbridge disclaims any and all liability of any kind or nature resulting from (a) any inaccuracies or failures with respect to such Data Feeds or (b) any actions taken by Client as a result of its use of the Solutions or its content. All Data Feeds are provided solely as a convenience and do not constitute an endorsement by Everbridge. The sole and exclusive remedy for any failure, defect, or inability to access the content of such Data Feed shall be to terminate the Data Feed with no further payments due. “Data Feed” means data content or websites licensed or provided by third parties to Everbridge and supplied to Client in connection with the Solution (e.g., real time weather system information and warnings, 911 data, third party maps, and situational intelligence) or publicly-available information that Client accesses on the Internet while using the Services.

Clients purchasing Visual Command Center or Signal products further agree that they will comply with the Data Feed Terms and Conditions found at https://www.everbridge.com/wp-content/uploads/Data-Feed-Terms-and-Conditions-Oct2019.pdf. 7 6. Resident Connection Data. If a Client is purchasing Resident Connection Data, Everbridge provides to Client a limited, non-exclusive, non-transferable, non-sublicensable, right to use mobile, landline and VoIP telephone records (“Resident Connection Data”) in connection with emergency notifications sent through the Everbridge Solutions. Resident Connection Data is Confidential Information of Everbridge and is subject to the confidentiality obligations in Section 7 and the license restrictions in Section 6.2 of this Agreement. Unless provided herein, Resident Connection Data is owned expressly by Everbridge and rights to use such data terminates upon the termination or expiration of this Agreement.

7. Incident Management/IT Alerting. If a Client is purchasing the Incident Management or IT Alerting Solution, (a) Clients may only designate the number of Users set forth on the Quote, and such individuals shall only have the access rights pursuant to such designation and role; (b) “Incident Administrators” are authorized by Client as an administrator for the Incident Management or IT Alerting Solution components and are typically responsible for the configuration of IT Alerting as well as managing and reporting on Incidents ; (c) “Incident Operators” are authorized by Client as an operator of the Incident Management or IT Alerting Solution and are typically responsible for launching/managing Incidents; and (d) “Group Managers” shall have the ability to build, manage and/or participate in on-call schedules to receive IT related notifications.

Everbridge may limit or throttle Client’s automated use of the Incident Management or IT Alerting Solution in order to protect the stability and security of the Solution.

8. Secure Messaging. If a Client is purchasing peer to peer secure messaging solutions (“Secure Messaging”), Everbridge shall comply with all applicable privacy laws, including the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), the Health Information Technology for Economic and Clinical Health Act (“HITECH Act”), the Gramm-LeachBliley Act, and the Fair Credit Reporting Act, as applicable based on solution purchased. Our Secured Messaging products for healthcare are subject to our Business Associate Agreement, available at https://www.everbridge.com/wpcontent/uploads/2015/07/Business-Associate-Form-lkd-v1-7.7.15.pdf, which is incorporated and made a part of this Agreement. Client acknowledges and agrees that Secure Messaging solutions are intended to deliver non-critical, nonemergency messages between users as a convenience to facilitate communications and are not intended for or suitable for use in situations where a failure or time delay of, or errors or inaccuracies in, the content, data or information provided through the services could lead to death, personal injury or property damage.

Non-Emergency Messaging

1. If Client is using the solution to send non-emergency calls, text messages or emails to consumers, Client expressly agrees to comply with the Telephone Consumer Protection Act of 1991, including its implementing regulations, the CAN-SPAM Act of 2003, and any other similar laws and regulation (collectively, “Consumer Protection Law”). Client shall not violate these or others applicable laws and warrants that it shall receive express consent from Contacts if its messages fall within these Consumer Protection Laws. Client shall defend, indemnify and hold Everbridge harmless from any violation by Client of Consumer Protection Law. Client further agrees that any marketing or sales related text messages will comply with the policies and guidelines of the Mobile Marketing Association found at http://mmaglobal.com/policies/code-of-conduct. 8 EXHIBIT B
IPAWS- CMAS/WEA Addendum
This addendum is incorporated by reference into the Agreement as applicable based on the particular products and services described on the Quote.
1 IPAWS Authorization. Client represents and warrants to Everbridge that any employee, agents, or representatives of Client who access IPAWS-OPEN using Client’s credentials provided by FEMA (each, an “IPAWS User”), are authorized by FEMA to use IPAWS-OPEN, have completed all required training, and Client has executed an IPAWS Memorandum of Agreement (“MOA”) with FEMA. Client shall contact Everbridge immediately upon any change in Client or any IPAWS User’s right to access IPAWS-OPEN. Client shall only access IPAWS-OPEN using its designated credentials and FEMA issued digital certificate (“Digital Certificate”). Client acknowledges and agrees that Everbridge shall not have access to its credentials and that Client assumes full responsibility for maintaining the confidentiality of any credentials issued to it.

Client shall be solely responsible for any and all claims, damages, expenses (including attorneys’ fees and costs) that arise from any unauthorized use or access to IPAWS-OPEN.

2. Credentials. Client shall load and maintain within its Everbridge account Organization, its Digital Certificate, COG ID, and Common Name. Client authorizes and requests Everbridge to use the foregoing stored information to connect Client to IPAWS-OPEN.

3. Messaging. Client acknowledges and agrees that: (i) upon submission of messages to IPAWS-OPEN, Everbridge shall have no further liability for the distribution of such message, and that the distribution through IPAWS-OPEN, including, but not limited to, delivery through the Emergency Alert System or the Commercial Mobile Alert System, is in no way guaranteed or controlled by Everbridge; (ii) Everbridge shall not be liable as a result of any failure to receive messages distributed through IPAWS-OPEN; (iii) IPAWS may include additional features not supported through the Everbridge system, and Everbridge shall not be required to provide such additional features to Client; and (iv) Client shall be solely responsible and liable for the content of any and all messages sent through IPAWS-OPEN utilizing its access codes.

4. Term. Client acknowledges and agrees that access to IPAWS-OPEN shall be available once Client has provided Everbridge with the Digital Certificate and any other reasonably requested information to verify access to the system.

Upon termination of the Agreement access to IPAWS-OPEN shall immediately terminate. In addition, Everbridge may immediately terminate, without liability, access to IPAWS-OPEN, if Client breaches this Addendum, the MOA, or FEMA changes the IPAWS-OPEN system so that it materially change the business terms and/or feasibility for Everbridge to provide such access.

Effective Date: July 1, 2025
This agreement Addendum #4 is entered into by and between Capitol Advocacy Partners, located at 600 Pennsylvania Avenue SE, #15048, Washington, DC 20003 (hereinafter referred to as “Consultant”), and the City of California City, located at 21000 Hacienda Blvd., California City, California 93505 (hereinafter referred to as “Client”). Consultant and Client may be collectively referred to as the “Parties.”

BACKGROUND
WHEREAS, the Parties entered into a Consulting Agreement dated June 1, 2022 (the Agreement”); and
WHEREAS, the Client desires to extend the term of the Agreement under the renewal provisions provided therein;
NOW, THEREFORE, the Parties agree to amend the Agreement as follows:

1. Extension of Term and Fees
The term of the Agreement is hereby extended for a period of two (2) years, commencing on July 1, 2025 and ending on June 30, 2027, unless earlier terminated in accordance with the Agreement. Notwithstanding the foregoing, Client may terminate this Agreement for convenience and without liability at any time upon sixty (60) days’ prior written notice to Consultant. The monthly fee for such services shall be as follows, reflecting a modest 3.5% annual COLA:

Term of Agreement Effective Date Ending Date Monthly Fee Year One 07/01/2025 06/30/2026 $4,308.08
Year Two 07/01/2026 06/30/2027 $4,458.86
Development of non-competitive community projects application (after project included in legislation signed into law), to support a funded project included in appropriations legislation, can be requested for a flat fee of $5,000. All applicable conditions that pertain to the development of a competitive grant application apply (i.e., Client responsibility for technical documents such as NEPA authorization).

Hourly grant writing fees and other services considered outside the scope of the monthly retainer will be billed separately at $195.00 per hour. All grant writing work and corresponding fees shall be pre-approved in writing by the Client prior to commencement.

Client agrees to pay Consultant within thirty (30) days of receipt of invoice. Client payments to Consultant more than sixty (60) days in arrears are subject to a 1.5% late fee. Consultant reserves the right to stop Work and Services performed if Client payments are more than ninety (90) days in arrears.

2. Grant Writing Services
Grant writing services may be requested at any time during the term of this Addendum, in accordance with the terms and conditions outlined in the original Agreement. All grant writing work and corresponding fees shall be pre-approved in writing by the Client prior to commencement.

3. No Other Changes
Except as expressly modified herein, all other terms and conditions of the original Agreement shall remain in full force and effect, including the agreed to scope of work. Such services considered outside of the agreed to scope of work will be billed separately per mutual agreement.

This Addendum #4, together with the Agreement and prior addenda, constitutes the entire understanding between the Parties and supersedes any prior discussions, negotiations, or representations, oral or written, with respect to the subject matter hereof.

IN WITNESS WHEREOF, the Parties have executed this Addendum #4 as of the dates set forth below.

By: ___________________________
Date: ____________________
Christopher Lopez
City Manager
City of California City
By: __________________________
Date: _06/13/2025______________
Dana DeBeaumont
Partner
Capitol Advocacy Partner
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POWER PURCHASE AGREEMENT (PPA)
For the purchase of energy
supplied by renewable resources
The City of California City
Located within Kern County, California
Contacts:

Power Purchase Agreement Attachments “PPA” and Exhibits Power Purchase Agreement (PPA)
Exhibit 1 – Pricing, Guaranteed Minimum Production, Billing Methodology Exhibit 2 – Billing Formulas and Examples
Exhibit 3 – Sample Invoice
Exhibit 4 – Termination Fee Schedule
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POWER PURCHASE AGREEMENT (PPA)
THIS POWER PURCHASE AGREEMENT (the “PPA”) is made this 19th day of August, 2014 (the “Effective Date”) by and between The City of California City (“BUYER”) located at 21000 Hacienda Blvd. California City, CA 93505 and American Solar Utility LLC (“SELLER”) a California limited liability company located at 1470 Civic Ct. Concord, CA 94520. BUYER and SELLER are sometimes referred to in this PPA collectively as the “Parties” and each, individually, as a “Party”.

WHEREAS, BUYER and SELLER desire to agree to terms for the production and sale of renewably generated electricity to serve BUYER’s facilities by way of this PPA. BUYER has pumping stations and other uses of electricity within the City boundaries and owned property that SELLER plans on offsetting that energy usage with energy generated from SELLER’s System.

WHEREAS, SELLER has leased 40 acres of property within the city limits of California City and desires to build a 1.7 MW ac PV solar system for generating renewable energy electricity. A portion of the property will be used to supply BUYER power for net-metering interconnection to the Southern California Edison grid.

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS
In addition to the terms that are defined elsewhere in this PPA, the following terms have the following meanings when used herein:

1.01 “Annual Degradation Factor” is defined in Exhibit 1 Section 2.

1.02 “Applicable Laws” refers to the laws of the State of California.

1.03 “BUYER” means the City of California City (also known herein as the “City”), that is within the County of Kern and State of California. BUYER includes all of its governmental organizations or agencies.

1.04 “Commercial Operation Date” means the date of receipt of Southern California Edison (SCE) approval for operation of the system.

1.05 “Contract Price” means the price of Electricity pursuant to Exhibit 1 of the PPA.

1.06 “Electricity” means electrical energy, measured in kilowatts and kilowatt-hours that (a) is produced by the System, (b) is delivered by SELLER to BUYER at the Electrical Interconnection Point(s), and (c) conforms to applicable utility and/or authoritative regulatory body standards.

1.07 “Electrical Interconnection Point” means the point(s) specified in the project design where the System connects to the existing electrical systems or newly established electrical systems serving the Facilities.
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1.08 “Energy Management System” means the American Solar Utility LLC automatic controls system capable of receiving energy production data from the System.

1.09 “Energy Service Provider” means an investor owned Utility, a municipal utility, or other electricity provider that serves electricity commodity to the Facility and/or BUYER. The Energy Service Provider herein is Southern California Edison (hereinafter known as “SCE” or “Utility”).

1.10 “Environmental Law(s)” means each and every applicable federal, state, and local law, statute, ordinance, regulation, rule, judicial or administrative order or decree, permit, license, approval, authorization or similar requirement of each and every federal, state, and local governmental agency or other governmental authority pertaining to the protection of human health and safety or the environment.

1.11 “Expected Production” set forth in Exhibit 1.

1.12 “Facility” or “Facilities” means the land or improvements owned, leased, and/or operated by either Party on which the System will be installed; possible system installation on BUYER property dependent on BUYER’S written approval. The planned System to be built will be located on SELLER’s leased property with a portion of said property dedicated to producing electricity to the BUYER through a Net-Metering arrangement.

1.13 “Failure to Achieve Guaranteed Minimum Production Penalty” set forth in Exhibit 1.

1.14 “Fiscal Year” means BUYER‘S Fiscal Year, beginning on July 1st of each calendar year and ending on June 30th of the following calendar year.

1.15 “Force Majeure” means an act of God or nature (such as earthquakes, fires, riots), actions or inaction’s of a regulatory authority, or actions of others such as strikes, lockouts, or other industrial disturbances, not within the control or arising from the fault of the party claiming Force Majeure. Any party claiming Force Majeure shall advise the other party as soon as possible of the occurrence of the event and shall provide the other party with the basis of the claim, in writing, within ten (10) days of the occurrence of the event. Parties shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and to resolve the event or occurrence once it has occurred in order to resume performance. A change in law (City, County, State or Federal) or changes made by the California Public Utilities Commission (“CPUC”) or Federal Energy Regulatory Commission (“FERC”) that negatively affects the ability of the SELLER to provide the electricity to the BUYER constitute a Force Majeure action..

1.16 “Guaranteed Minimum Production” as described in Exhibit 1.

1.17 “Hazardous Material” means, without limitation, any substance defined as hazardous substance, hazardous waste, extremely hazardous waste, or material known to cause cancer or reproductive toxicity, under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1317 et seq.; Sections 25115, 4 of 24
25117, 25122.7, 25140, 25249.5, 25249.8, 25281, 25316 or 25501 of the California Health & Safety Code; and any substance regulated pursuant to any Environmental Law(s). The term Hazardous Material includes, but is not restricted to, asbestos, polychlorobiphenyls (“PCBs”) and petroleum.

1.18 “Interest Rate” means the then-current prime rate for Wells Fargo, N.A., as that rate is announced from time to time.

1.19 “Lender” means any financial institution, private Limited Liability Company, Corporation, or other privately held entity to which SELLER has pledged or collateral assigned SELLER’s rights under this PPA and its rights to payment and a first security right in the System.

1.20 “Operational Year” means each twelve-month period commencing on each anniversary of the Commercial Operation Date.

1.21 “Net-Metering” is a service to an electric consumer of the Utility company under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric Utility to the electric consumer during the applicable billing period.

1.22 “PPA” means this Power Purchase Agreement, in its entirety, between the Parties for the purchase and sale of Electricity from the System.

1.23 “Renewable Energy Credit/s” and or “REC/s” means renewable energy credit(s) or; certificates, emission reduction credits, investment credits, production tax credits, emission allowances, green tags, tradable renewable credits, and or products related to renewable energy production and is a commodity that is; based upon system size, and/or separated/unbundled from electric service or production.

1.24 “SELLER” means the party to this PPA that will install and own the System and sell Electricity to the BUYER at the Facility. This may consist of a new or different entity or fund that has been designated herein as the SELLER.

1.25 “State” means the State of California.

1.25 “System” means the integrated assembly of photovoltaic panels, mounting assemblies, inverters, converters, meters, lighting fixtures, transformers, ballasts, disconnects, combiners, switches, wiring devices, and wiring installed at the Facility for the purpose of generating Electricity to be purchased by the BUYER.

1.26 “Term” has the meaning set forth in Section 3.

1.27 “Termination Fee” means the payment by BUYER, described in Exhibit 4 hereof, upon early termination of this PPA.

1.28 “Utility” means the local provider of electric transmission and distribution services to BUYER in the absence of the System. This is Southern California Edison which serves the California City area electricity through the electrical grid. 5 of 24
2 AGREEMENT

2.1 Sale of Electricity by SELLER. SELLER will sell to BUYER all grid tied Electricity produced by the System during the Term, at the price per kilowatt-hour as specified in Exhibit 1. SELLER maintains all rights to the REC/s produced and or generated from the System and consistent with Section 6 and Exhibit 1 Section 5.

2.2 Purchase of Electricity by BUYER. BUYER will purchase from SELLER all Electricity that meets the specifications set forth in Exhibit 1. Notwithstanding the foregoing, nothing contained within this Agreement shall prevent BUYER from entering into an agreement with any other party regarding purchase of electricity.

2.3 Installation of System Components. SELLER will install the system components necessary to deliver the renewable energy provided by SELLER at or on the Facility. The renewable energy will be generated at the facility and is solely at the option of the SELLER to determine the best solution for each site and/or selected for offset under this PPA.

2.4 Services Provided by SELLER. SELLER will provide electricity pursuant to Exhibit 1 of this PPA.

2.4.1 METER. SELLER will measure the actual amount of Electricity generated and the amount utilized / delivered to BUYER by the SELLER at each of the Electrical Interconnection Points utilizing a commercially available revenue grade interval data-recording meter (the “Meter”). The Meter and its associated service account/s are to be under the name of the BUYER with the Utility. Meter location/s and allocated Electricity from the System in Kilowatt Hour/s (“kWh/s”) to those Meters will be agreed to by the Parties in the application sent for Net-Metering to the Utility. The System located at the Facility will generate Electricity that passes through the Meter and records the generated renewable energy Electricity in Kilowatts. The Meter is then downloaded and provides incremental time periods that then are translated into kWh’s and then credit applied for Time of Day (“TOD”) or Time of Use (“TOU”) multipliers for economic or dollar value provided in Utility company Tariff. This value offsets the charges that the Utility bills BUYER for. a. The Meter shall be installed and maintained at SELLER’s expense and shall have standard industry telemetry capabilities. SELLER shall make the Meter data readily available in secure web format to BUYER upon request. Should the facility be located on BUYER owned and operated property, BUYER will allow internet access for meter reading through the telecom room and allow connection through the buildings or facilities to connect to that circuit. Local electrical power will be supplied by BUYER, via the meter/s, to power secure router/s and switch/es. b. SELLER will have the Meter calibrated every five years at SELLER’s expense by a certified, independent, third party. SELLER shall provide notice of the testing to BUYER at least ten (10) business days prior to the test date. SELLER shall provide signed copies of the results of the Meter calibration test BUYER. SELLER shall test the Meter at any reasonable time upon the request of BUYER. BUYER shall reimburse SELLER for the cost of any test requested by BUYER, unless such testing demonstrates that the Meter was operating outside of industry standard tolerance allowances or as such defined by the California Public Utilities Commission for meter calibration and operation.
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c. If a Meter is determined to be inaccurate and such inaccuracy exceeds industry standard tolerance allowances, as such are defined by the California Public Utilities Commission for electric meters, and if it is unknown when the Meter inaccuracy commenced, then the invoices covering the period of time since the last Meter test shall be adjusted for the amount of the inaccuracy on the assumption that the inaccuracy persisted during one half of such period. Adjustments that benefit the BUYER shall be reflected on the next invoice following the date of determination of the inaccuracy. Adjustments that benefit SELLER shall be included on SELLER’s next invoice to the BUYER.

2.4.2 Billing System: SELLER will bill BUYER and BUYER will pay SELLER for Electricity at the rate and in the manner set forth in Exhibits 1, 2, and 3.

2.4.2.1 Customer Service: SELLER will provide the following during the Term:
a. SELLER will produce and send bills to BUYER or its designee within fifteen (15) business days after the end of each billing cycle.
b. SELLER will post Meter reads to a password protected web site and make this web site available to BUYER.

2.4.2.2 Billing Validation and Verification. BUYER may during the Term conduct occasional billing inquiries, validation and verification activities, or reconciliation procedures. During such BUYER inquiries, activities, and procedures, SELLER shall provide BUYER with the data and other information, including any billing algorithms and interval Meter data representing System output, used to generate billing determinants. BUYER will use its best efforts to provide or arrange for Utility metered interval data and billing data and information that can support SELLER’s billing process, either directly through a data file transmission, receipt through regular mail services, or through the appropriate and established arrangement with the Utility. For purposes of this paragraph, Parties agree that “Best Efforts” means that the BUYER will authorize the applicable Utility to provide metered interval data and billing data and information directly to the SELLER, as per the Utility’s rules and applicable regulations.

2.5 Maintenance of Facility. At all times during the term of this Agreement, SELLER shall maintain the System in compliance with all performance standards under federal, state, or local regulation and shall ensure the System is safe and in good working condition. 3 TERM AND TERMINATION
TERM. The Term of this PPA shall commence on the Effective Date and shall continue to apply for a period ending at 11:59 P.M. on the day preceding the twentieth anniversary of the Commercial Operation Date unless terminated earlier by a party pursuant to the terms of this PPA.

3.1 BUYER Termination Rights. BUYER shall have the right to terminate this PPA as follows:

3.1.1 For Cause. BUYER may terminate this PPA (a) pursuant to Section 10.2, below as a result of SELLER’s default; or (b) thirty (30) days after delivery of written notice to SELLER and any Lender who has a security interest in the System if a Force Majeure event has 7 of 24
occurred and SELLER is unable to produce Electricity for more than 180 consecutive days.

3.1.2 For Convenience. In addition to the termination rights in Section 3.1.1, above, BUYER may terminate this PPA for convenience, sixty (60) days after delivery of written notice to SELLER and any Lender. If BUYER terminates this PPA for convenience pursuant to this section BUYER shall pay SELLER a Termination Fee as described and calculated in Exhibit 4, attached.

3.2 SELLER Termination Rights. SELLER shall have the right to terminate this PPA at any time on ninety (90) days written notice to BUYER, without further liability, if any of the following occur: a) If, prior to the first date of scheduled delivery of Electricity, SELLER determines that the System cannot be built as planned or that its construction and operation would not be economically viable for the SELLER, including SELLER’s determination that the installation of the System is not economically viable as a result of the need to comply with any environmental regulation. SELLER will be responsible for repairing any damage to any BUYER owned or leased property arising from activities conducted by SELLER pursuant to this PPA and shall reimburse BUYER for any direct costs associated with negotiation, review and approval of the PPA, reasonable alteration to the physical area in or around the Facility site if Facility is located on BUYER owned or leased property; b) Upon occurrence of a Force Majeure, including, but not limited to; SELLER’s inability, after diligent efforts, to obtain or maintain required approval or permits from any governmental authority for the installation or operation of the System, change to the contracts signed with SCE, or inability to receive any incentive or REC, by SELLER, material to the financial viability of the system; c) In the event that, through no fault of SELLER and for other than a Force Majeure event, the System is permanently shut down due to renovation, damage, destruction or closure of the Facility, and the Parties cannot agree upon an alternative location for the System (as defined in Section

12.2 ); d) Upon an Event of Default by BUYER (as defined in Section 10.3).

3.3 Removal upon Termination. It is understood and agreed that the BUYER, as a municipal entity, has a strong interest in preserving a compatible and harmonious environment within the City and an interest in preventing nuisances and/or eyesores resulting from abandoned or disused facilities. Upon termination of this Agreement, SELLER shall, within three hundred and sixty five days (365) days, remove the System at its own cost and shall otherwise restore the real property underlying the System to its pre-installation condition, reasonable wear and tear and casualty excepted

3.4 Notwithstanding the foregoing, SELLER will be excused from the obligation to remove the System to the extend SELLER has committed to sell Electricity from the System, or portion thereof, to another party, as evidenced by an executed agreement for such sale 4 ENVIRONMENTAL COMPLIANCE
If SELLER has not yet completed its analysis and related obligations under CEQA as of the Effective Date, SELLER shall not be required to install the System until the CEQA is completed and a building permit has been issued by the lead governmental agency. 5 GUARANTEED MINIMUM PRODUCTION
SELLER has estimated that the System will deliver the Expected Production as indicated in Exhibit 1. SELLER Guaranteed Minimum Production from the System is defined as and 8 of 24
calculated by multiplying 80% of the Expected Production from the System over the course of an Operational Year commencing with the Commercial Operation Date. If SELLER fails to meet the Guaranteed Minimum Production requirement on an Operational Year basis, for reasons other than the BUYER’s shading of the System, as described in Section 13 below, SELLER will pay BUYER, or BUYER may, at its option, offset against future payments due SELLER, an amount equal to the Failure to Achieve Guaranteed Minimum Production Penalty. The formula for calculating the Failure to Achieve Guaranteed Minimum Production Penalty is found in Exhibit 1 section 7 to this PPA. If SELLER fails to pay BUYER the amount due for any annual shortfall of the Guaranteed Minimum Production within 60 days after notice to make such payment, BUYER shall have the express right to withhold payment, up to the shortfall amount due.

BUYER agrees that System performance will degrade by an Annual Degradation Factor as indicated in Exhibit 1 Section 2 of this PPA for every year of operation. As reflected in Table 1.1 of Exhibit 1, the Expected Production will be reduced by the Annual Degradation Factor every Operational Year for the term of this PPA. The Annual Degradation Factor will be applied to the kWh energy values of the Expected Production at the beginning of each Operational Year. A determination on whether or not the SELLER has met the Guaranteed Minimum Production will be made on a biennial basis commencing with the end of the second Operational Year after Commencement of Operations. An Annual Degradation Factor will be applied on a pro rata basis for System operations that do not span an entire Operational Year by multiplying the Annual Degradation Factor times the fraction of the Operational Year.
6 POTENTIAL REVENUE FROM RENEWABLE ENERGY CREDITS
SELLER will own 100% of all REC’s associated with this project. SELLER may, at its sole discretion, market and/or sell the REC’s at any time. All proceeds of REC sales will belong to SELLER.
7 REBATES AND OTHER INCENTIVES
Any grant, rebate, incentive payment or credit by the Utility, the Federal Government, the California Energy Resources Conservation and Development Commission or any other agency paid as a result of the design, construction, operation and/or grid connection of the System shall inure to the benefit of the SELLER. BUYER will cooperate in good faith, at no cost to BUYER, as necessary to enable SELLER to obtain all available incentives and rebates, including assignment to SELLER of any rebate or incentive received by BUYER.

7.1 CALIFORNIA SOLAR INITIATIVE (“CSI”)
The SELLER will file / apply for a CSI reservation for this project to the California Center for Sustainable Energy (“CCSE”) in coordination with the Utility. The BUYER shall be designated as the HOST and SELLER as the OWNER and APPLICANT as required in the CSI Handbook. BUYER agrees to pass through all incentive payments received to the SELLER within 30 business days from receiving payment/s. If the CSI payment is not passed through within the 30 day period then the BUYER shall be charged 2.25% interest per month on the balance of the payment not received. All cost associated with the application for a reservation will be paid for by the SELLER. The BUYER shall reimburse the SELLER for all application and reservation fees and cost if the SELLER does not build the Systems and receive the incentive but BUYER is able to use the incentive. This 9 of 24
reimbursement shall be made upon a re-designation, change, and or assignment of the OWNER and or APPLICANT named on the reservation. This reimbursement shall be made within 30 business days from the change in the reservation document submitted to the Utility and or CCSE and shall not exceed the amount of the incentive received by Buyer. The SELLER has included the incentive to lower the System development cost to for that SELLER can provide a lower kWh Electricity rate that is reflected in this PPA. 8 EMERGENCIES
In cases of emergency in which BUYER determines that the continued operation of the System presents an imminent threat requiring immediate action to prevent or mitigate the loss or impairment of life, health, property or essential public services, the Parties agree that BUYER may disconnect the System from the point of interconnection prior to notification of SELLER. If BUYER disconnects the System pursuant to this provision, BUYER will notify SELLER no later than 8 hours after the System is disconnected. The Parties agree that only SELLER or an agent designated by SELLER will be authorized to reconnect the System after the System is disconnected by BUYER pursuant to this emergency section.
9 COMMUNICATIONS AND CONTACTS
The representatives of the parties during the term of this PPA will be:

EMERGENCY CONTACT SELLER: EMERGENCY CONTACT BUYER:

Name: Dennis R. Mueller Name: TBD
Phone: 916-223-0062 Phone:

Email: dmueller@americansolarutility,com Email:
10 DEFAULT

10.1 Waiver. A waiver by either party of any term, covenant or condition of this PPA shall not constitute a subsequent waiver of the same or any performance thereof by the other party.

10.2 Default by SELLER. At the option of BUYER as the non-defaulting party, the occurrence of any of the following shall constitute a material default and breach of this PPA:

10.2.1 SELLER’s failure to deliver Electricity, that is not through a Force Majeure event/s, from the System for a continuous period of ninety (90) days or for one hundred and twenty (120) days in any six month period.

10.2.2 Unreasonable interference by SELLER with the operations of BUYER at the Facility, if the interference is curable by suspension of operation of the System and SELLER fails to suspend operation of the System within 96 hours of BUYER’S notice to SELLER regarding the interference.

10.2.3 The filing of a petition to have SELLER adjudicated bankrupt, or the filing of a petition for reorganization or arrangement under any law relating to bankruptcy unless in the case of

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a petition filed against SELLER, the same is dismissed within one hundred and twenty (120) days; or the appointment of a trustee or receiver to take possession of substantially all of SELLER’s assets located on the Facility or of SELLER’s interest in this PPA, when possession is not restored to SELLER within ninety (90) days; or the attachment, execution or other judicial seizure of substantially all of SELLER’s assets located on the Facility or of SELLER’s interest in the License, when such seizure is not discharged within one hundred and twenty (120) days.

10.2.4 Failure by SELLER to perform or comply with any other material term of the PPA within ninety (90) days after written notice to SELLER and any Lender by BUYER, unless BUYER agrees in writing to a longer period to cure the default.

10.2.5 BUYER Remedies. If any default by SELLER shall continue uncured, following notice of default where required herein, for the period applicable to the default alleged, BUYER may resort to any one or more of the following remedies:

10.2.6 Termination. BUYER may terminate this PPA by providing written notice to SELLER indicating that the PPA has been terminated.

10.2.7 Recovery of Damages and Expenses. BUYER may recover from SELLER any damages and expenses reasonably incurred as a result of SELLER’s Default, including attorneys’ fees and the cost to repair the Facility to near pre-installation condition. BUYER is not entitled to damages for future energy production or saving after the termination of the PPA has occurred and thereafter, including the entire remaining Term of this PPA and residual value. BUYER agrees not to claim damages against SELLER for loss of business, loss of revenue or business interruption.

LIMITATION OF LIABILITIES: EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS

PPA, NEITHER BUYER NOR SELLER NOR ANY OF EITHER OF THEIR SUCCESSORS OR

ASSIGNS, OR THE RESPECTIVE MANAGERS, SUPERVISORS, SHAREHOLDERS,

MEMBERS, PARTNERS, ASSIGNS, DIRECTORS, OFFICERS, PUBLIC OFFICIALS, AGENTS

OR EMPLOYEES OR REPRESENTATIVES OF EITHER OF THEM, SHALL BE LIABLE TO

THE OTHER FOR CONSEQUENTIAL, EXEMPLARY, INDIRECT OR INCIDENTAL LOSSES

OR DAMAGES, INCLUDING REVENUES FROM LOST POWER, LOSS OF USE, COST OF

CAPITAL, LOSS OF GOODWILL, LOSS OF REVENUES OR PROFIT AND THE BUYER AND

SELLER EACH HEREBY RELEASES THE OTHER AND EACH OF SUCH PERSONS FROM ANY SUCH LIABILITY. THE FOREGOING EXCLUSION SHALL NOT BE CONSTRUED TO LIMIT RECOVERY UNDER ANY INDEMNITY. IN NO EVENT SHALL EITHER PARTY'S

TOTAL AGGREGATE LIABILITY FOR THE DAMAGES OF THE OTHER PARTY (INCLUDING

PERSONS CLAIMING THROUGH THE OTHER PARTY) UNDER ANY EQUITY, COMMON

LAW, CONTRACT, ESTOPPEL, NEGLIGENCE, TORT, STRICT LIABILITY OR OTHER

THEORY, REGARDLESS OF THE FORM OF ACTION, ARISING OUT OF THE AGREEMENT EXCEED THE PPA REMAINING YEARLY SUMS AS SHOWN IN EXHIBIT 1, SECTION 1, TABLE 1.1, COLUMN 80% OF EXPECTED COST.

10.2.8 Right of Offset. BUYER may elect to offset any damages resulting from SELLER’s default against any monies owing or to be owed to SELLER under this PPA. If BUYER elects not to terminate the PPA following an Event of Default by SELLER then the default shall be 11 of 24
cured and put the SELLER back into good standing, this election shall not constitute a waiver by BUYER as to any subsequent Event of Default by SELLER.

10.3 Default by BUYER. At the option of SELLER as the non-defaulting party, the occurrence of any of the following shall constitute a material default and breach of this PPA:

10.3.1 BUYER’S failure to pay undisputed invoices for a continuous period of 180 or more days

10.3.2 The renovation, damage, destruction or closure of the Facility, for other than a “Force Majeure” event, which results in the permanent shutdown of the System at the Facility, if BUYER and SELLER are unable to agree upon an alternative location for the System as defined in Section 12.2 below.

10.3.3 BUYER’S refusal to sign authorizations reasonably required by SELLER to obtain any rebate, incentive, or subsidy contemplated in Section 7 above or BUYER’S refusal to sign or comply with any material term of the approved interconnection agreement required by the Utility for interconnection of the System.

10.3.4 Failure by BUYER to perform or comply with any other material term of this PPA within sixty (60) days after written notice by SELLER, unless SELLER agrees to a longer period to cure the default.

10.3.5 SELLER Remedies. If any default by BUYER shall continue uncured, following notice of default where required herein, for the period applicable to the default alleged, SELLER may resort to any one or more of the following remedies:

10.3.5.1 Termination. SELLER may terminate the PPA by providing written notice to BUYER indicating that the PPA has been terminated.

10.3.5.2 Damages. In the event of a termination under section 10.3.5.1, above, BUYER shall pay to SELLER a Termination Fee, calculated as set forth in Exhibit 4. The Parties acknowledge and agree that in the Event of Default of this PPA by BUYER, SELLER’s actual damages would be difficult or impossible to compute and that this Early Termination Fee calculation provision represents the reasonable estimate of such damages established by the parties in good faith consideration of the facts and circumstances surrounding the transactions contemplated by this PPA as of the effective date.

10.3.5.3 Removal. In addition to the other remedies specified herein, SELLER may remove the System at its own cost, provided that any Facility located on BUYER owned or leased property is restored to a condition substantially similar to the pre-installation condition subject to ordinary wear and tear as called for by this BUYER.

10.4 Failure of SELLER to Perform Required Acts. Subject to SELLER’s right to contest as provided elsewhere in this PPA, if SELLER fails, refuses, or neglects during the Term to do any of the things required to be done by SELLER, BUYER shall have the right, but not the obligation, to do the same, but at the cost of and for the account of SELLER. Unless BUYER reasonably believes that its interests may be adversely affected by such delay, BUYER shall in no case take such action sooner than one hundred and eighty (180) days after giving SELLER written notice of such failure, refusal or neglect. SELLER shall pay to BUYER on demand any sum expended by BUYER under this Section 10.4 together with interest thereon as defined in Section 1.18. Nothing contained in this Section 10.4 shall 12 of 24
impair the rights of BUYER with regard to defaults or remedies under the remaining portion of this Section 10.

10.5 Force Majeure. Any party claiming Force Majeure with respect to its performance hereunder shall advise the other party as soon as possible of the occurrence of the event and shall provide the other party with the basis of the claim, in writing, within ten (10) days of the occurrence of the event. Each party shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and to resolve the event or occurrence once it has occurred in order to resume performance

10.6 Arbitration and Dispute/s Resolution. The Parties shall perform their responsibilities under this PPA during any dispute, except for a dispute alleging non-payment of payments due by the BUYER to SELLER. The parties will attempt in good faith to resolve any disputes between them through negotiations. If they are unsuccessful, all claims arising out of this PPA will be decided through binding arbitration. If the parties cannot agree to the arbitrator and arbitration process, the arbitration will be conducted under the auspices of the American Arbitration Association under its Rules and shall take place in Kern County, California. In the event of any dispute or claim arising out of this PPA, the prevailing party shall be entitled to an award of its attorney fees and costs incurred, including those on appeal, on review or in bankruptcy. The parties agree to consolidate their arbitration with any other arising from the PPA
11 TEMPORARY SHUTDOWN OF SYSTEM

11.1 In-lieu Payments or Extension of PPA. If, during the Term, renovations or damage to the Facility occurs ,for reasons other than a Force Majeure, which significantly reduces (greater than 50% of Expected Production) or eliminates the use by BUYER of Electricity from the System or requires the temporary shutdown of the System, the Parties may, by mutual consent agree to extend the Term by one day for each day that the System was shut down.

11.2 Notice. SELLER will make a good faith effort to give as much notice as possible to BUYER prior to System shutdown. SELLER must coordinate a System shutdown with BUYER.
12 RESERVED
13 RESTRICTIONS ON SHADING

13.1 BUYER will make all good faith efforts to avoid activities which result in overshadowing or shading of the System in a manner that would prevent SELLER from meeting the Expected Production as described in Exhibit 1. In the event that BUYER activities result in the System being overshadowed in manner that causes the System to produce less than 95 percent of the Expected Production Output on a kWh basis over any twelve (12) month period, BUYER agrees to pay in-lieu fees up to the Expected Production as described in Section 11.1.2 for the duration of the period for which the shadowing occurs.

SELLER shall provide and justify data verifying the actual loss of generation that occurred due to shading. BUYER shall not be required to pay such in-lieu fees unless SELLER 13 of 24
demonstrates to BUYER’S reasonable satisfaction that the loss in generation is due to shading attributable to the BUYER’S actions. Notwithstanding any other provision of this PPA, the Parties agree that if BUYER’S actions result in shadowing of the System such that the System produces less than 80 percent of the Expected Production, the Parties shall make every effort to relocate the System to a mutually agreeable location. If the Parties cannot agree on an alternative location for the System, then SELLER will be entitled to a Termination Fee pursuant to Sections 12, 10.3.5.1, and 10.3.5.2.

13.2 “Permanent Shutdown of the System at the Facility” and Exhibit 4. The Parties agree that shading resulting from actions outside of the control of BUYER shall not give rise to the remedies provided for in this Section.
14 COMPLIANCE WITH APPLICABLE LAWS, INCLUDING UTILITY INTERCONNECTION

STANDARDS
SELLER, at its own cost and expense, shall comply with all Applicable Laws relating to the operation of the System and the generation and sale of Electricity to BUYER, including obtaining and maintaining all relevant approvals and permits. In particular, SELLER, throughout the term of the PPA, will fully comply with any and all operational standards and requirements imposed by the Utility, and comply with the electrical interconnection requirements as stated in the applicable and controlling Utility tariff. BUYER will cooperate with SELLER and, if necessary, will provide consents and execute with the Utility such agreements (if such agreements do not have unacceptable or prohibited terms and/or conditions, or impose additional costs on BUYER) as are necessary to permit the interconnection of the System. This electrical interconnection shall be done at no cost or liability to BUYER, and SELLER shall reimburse BUYER for all out of pocket costs incurred in connection with any interconnection agreement. Should the Utility demand fees or equipment exceeding the SELLER’s estimates for electrical interconnection requirements, SELLER may at its sole discretion cease to proceed with installation of the System without further obligation to BUYER other than the obligation to restore the Facility to near pre-installation condition if installation was initiated on BUYER owned or leased property.
15 NON-DISCRIMINATION

15.1 SELLER’s Obligations. SELLER shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition, age, marital status, and denial of family care leave. SELLER shall ensure that the evaluation and treatment of its employees and applicants for employment are free from such discrimination and harassment, and shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this PPA by reference and made a part hereof as if set forth in full.
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15.2 Inclusion in Subcontracts. SELLER represents and warrants that it shall include the substance of the nondiscrimination and compliance provisions of this clause in all subcontracts in connection with its obligations hereunder. 16 TAXES
SELLER shall pay all taxes, assessments or charges that at any time may be lawfully levied upon any interest in the Facility, the System, or this PPA. If local taxes or assessments are levied above the rates on the date of COD then those additional fees shall be split 50% is owed by the SELLER and 50% is owed by the BUYER. 17 ASSIGNMENT

17.1 The duties and obligations of SELLER under this PPA shall not be assignable by the SELLER in whole or in part without the written approval of BUYER. BUYER will not unreasonably withhold written approval.

17.2 Event of Default. In the event of default by any assignee of SELLER or any successor to SELLER in the performance of the terms hereof, BUYER may proceed directly against SELLER without the necessity of exhausting remedies against such assignee.

17.3 Unique Expertise. Notwithstanding the foregoing, SELLER acknowledges that BUYER is relying upon the unique expertise and capability of SELLER. Any proposed assignee must have demonstrated to the BUYER the ability to perform the obligations required under the PPA.

17.4 Definition of Assignment. For purposes of this section, the sale, assignment, transfer or disposition, directly or indirectly, of any type, which results in a change of control of SELLER, shall be deemed an assignment of this PPA. Change of control shall be as defined in common law, and may be the result of a single or multiple related transactions which result in the cumulative transfer of more than fifty percent (50%) of the voting stock or equity interests of SELLER. However, in no event shall the transfer of shares (i) to a Lender which assumes SELLER’s obligations hereunder, or (ii) to another limited liability company of which SELLER is the managing member, or (iii) in an open market transaction sale of shares of a publicly held company be considered an assignment. SELLER shall have a continuing duty to provide BUYER with written notice of any material change in the SELLER’S business structure and/or financial status.

17.5 Buyer’s Right of First Refusal to purchase the BUYERs portion of the Facility. In the event (i) SELLER determines to sell the portion of the Facilities that provides power to the BUYER, or (ii) of SELLER’s bankruptcy or insolvency, or (iii) SELLER defaults on any encumbrance secured by the BUYERS portion of the Facility, , SELLER shall provide reasonable notice to BUYER of such desire to sell, with the amount of the offering price, or of such bankruptcy, insolvency, or default, with the amount or nature of such default.

Upon receipt of such notice, BUYER, in its sole discretion, shall have the exclusive right for a period of sixty (60) days to (i) in the event of SELLER’s desire to sell, purchase the Facilities, or portion thereof, in the amount of the offering price, or any lesser amount which SELLER may be willing to accept; (ii) in the event of bankruptcy or insolvency of SELLER, purchase the BUYERs portion of the Facility, or portion thereof, at fair market value as determined by independent appraiser agreed to by both Parties ; or (iii) in the event of SELLER’s default on any encumbrance secured by the Facilities, or portion 15 of 24
thereof, cure said default, or with respect to defaults which cannot be reasonable cured within ninety (90) days, commence such cure and diligently pursue such cure. 18 FINANCING

18.1 Non-Subordination. BUYER will not subordinate its interest in the Facility as security for any SELLER loans or financing. However, and notwithstanding the provisions of Section

18.2, below, SELLER may pledge its interest in the PPA, including any rights to payment and the System, as security for loans or financing. If SELLER’s Lender(s) requests additional terms and conditions to those already provided in this PPA, BUYER will consider any such requests, but may refuse such requests in its sole and absolute discretion and may withhold consent or approval of such additional terms and conditions.

18.2 Security Interests in System. BUYER acknowledges that SELLER will be financing the acquisition and installation of the System with financing accommodations from one or more financial institutions and that SELLER’s obligations will be secured by, among other collateral, a pledge or collateral assignment of this PPA and SELLER’s rights to payment and a first security right in the System. In order to facilitate such financing, and with respect to any such financial institutions of which SELLER has notified BUYER in writing (each, a Lender) BUYER agrees as follows:

18.2.1 Classification of System as Personal Property. BUYER acknowledges that it has been advised that part of the collateral securing financial accommodations of SELLER is the granting of a first priority security interest (“Security Interest”) in the System to Lender to be perfected by a filing under the Uniform Commercial Code (“UCC”). BUYER consents to such filings so long as they reflect the Parties’ agreement that any filings to perfect or provide notice of the Security Interest clearly document the Parties’ intent that the System is considered personal property only and is not considered a fixture to the Facility. These filings by SELLER or Lender may include filing of a Financing Statement (FORM UCC-1) which clearly covers the System as personal property only and not as a fixture.

18.2.2 Such filing shall not create any interest in or lien upon the real property underlying the Facility or the interest of BUYER therein and shall expressly disclaim the creation of such an interest or a lien.

18.2.3 BUYER will use commercially reasonable efforts to place its successors and assignees on notice of the ownership of the System by SELLER and/or Lender, the existence of the security interest, and the fact that the System is not part of the Facility or a fixture thereof, as necessary and appropriate to avoid confusion or adverse claims.

18.2.3 BUYER is not aware of any existing lease, mortgage, security interest or other interest in or lien upon the Facility that could attach to the System as an interest adverse to Lender’s security interest therein.
19 AMENDMENT
No amendment or variation of the terms of this PPA shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in this PPA is binding on either party.
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20 AUDIT
BUYER, or its designated representative, shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this PPA. SELLER will maintain such records for possible audit for a minimum of three (3) years after final payment under this PPA, unless a longer period of records retention is stipulated. SELLER will allow the auditor(s) access to such records during normal business hours after reasonable notice and to allow interviews of any employees who might reasonably have information related to such records. Further, SELLER will include a similar right of BUYER to audit records and interview staff in any subcontract related to performance of this PPA. 21 INDEPENDENT CONTRACTOR
SELLER, and its agents and employees, shall act in an independent capacity and not as officers or employees or agents of BUYER in the performance of this PPA. 22 TIMELINESS
Time is of the essence in this PPA.
23 GOVERNING LAW
This contract is governed by and shall be interpreted in accordance with the laws of the State of California.
24 UNENFORCEABLE PROVISION
In the event that any provision of this PPA is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this PPA have force and effect and shall not be affected thereby. If the unenforceable provision has a detrimental effect on the ability of this PPA to function as intended for both parties, or causes a material change in the financial viability of this PPA for either party, then the parties will make a good faith effort to find an agreeable resolution. If Parties cannot find an agreeable resolution the SELLER may terminate this PPA and receive the Termination Fee (as defined in Sections

10.3.5.1 and 10.3.5.1, above, and in Exhibit 4).
25 COUNTERPARTS
This PPA may be executed in multiple copies, each of which shall be deemed an original, but all of which shall constitute one agreement after each party has signed such a counterpart.

26. INDEMNITY
SELLER agrees to defend, indemnify, hold free and harmless the BUYER, its elected officials, officers, agents and employees, at SELLER’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the BUYER, its elected officials, officers, agents and employees arising out of the performance of the SELLER, its employees, and/or authorized subcontractors, of the work undertaken 17 of 24
pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the SELLER, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the SELLER, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the BUYER, its elected officials, officers, agents and employees based upon the work performed by the SELLER, its employees, and/or authorized subcontractors under this Agreement, whether or not the SELLER, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the SELLER shall not be liable for the defense or indemnification of the BUYER for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the BUYER.

BUYER agrees to defend, indemnify, hold free and harmless the SELLER, its elected officials, officers, agents and employees, at BUYER’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the SELLER, its elected officials, officers, agents and employees arising out of the performance of the BUYER, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the BUYER, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the BUYER, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the SELLER, its elected officials, officers, agents and employees based upon the work performed by the BUYER, its employees, and/or authorized subcontractors under this Agreement, whether or not the BUYER, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the BUYER shall not be liable for the defense or indemnification of the SELLER for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the SELLER.
27 Guarantee of Savings
SELLER guarantees BUYER a minimum yearly savings of $50,000.00 (“Guaranteed Minimum Yearly Savings”). Actual Yearly Savings is to be calculated by SELLER pursuant to Exhibit 5. Actual Yearly Savings will be calculated on a yearly basis, within thirty (30) business days of each anniversary of the Commercial Operations Date. Any amount of savings under the $50,000.00 minimum yearly savings allocation shall be credited to BUYER in “Guaranteed Minimum Savings Shortfall Amounts”. Guaranteed Minimum Savings Shortfall Amounts are to be calculated by subtracting the Guaranteed Minimum Yearly Savings ($50,000.00) by the Actual Yearly Savings (Calculated by SELLER). Guaranteed Minimum Savings Shortfall Amounts are to be divided by 12 and incrementally awarded to BUYER in the form of equal credits on each monthly bill for the 12 months following the calculation of Guaranteed Minimum Savings Shortfall 18 of 24
Amounts (“Guaranteed Minimum Savings Credits”). Guaranteed Minimum Savings Credits shall constitute full payment for SELLER’S failure to achieve the Guaranteed Minimum Yearly Savings. BUYER may choose to exercise either the Guarantee of Minimum Yearly Savings OR the Failure to Achieve Guaranteed Minimum Production Penalty at BUYER’s sole discretion, and the exercising of one releases all liability associated with the other.

IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this PPA and intending to be legally bound hereby, BUYER and SELLER have executed this PPA as of the Effective Date.

SELLER:

American Solar Utility LLC
By: ________________________________
TITLE: _________________________________
BUYER:

The City of California City
By: ________________________________
TITLE:
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EXHIBIT 1

ELECTRICITY PRICING, GUARANTEED MINIMUM PRODUCTION, AND BILLING

METHODOLOGY

1. Electricity Pricing
SELLER:

Starting Price: $0.095 per kWh. The lowest or minimum price to be paid for electricity by BUYER will be $0.095 per kWh. All other charges for electrical service fees from the Utility company (SCE) are the responsibility of the BUYER. These charges include but are not limited to; taxes, surcharges, demand charges, monthly and daily meter costs, service and repair fees.

Escalation Factor: 1.5% applied annually at the anniversary of the Commercial Operation Date
Rate Calculation: Rn = R(n-1)(1+e)
Where: Rn = Current Rate per kWh R(n-1) = Rate per kWh Previous Year e = Rate of Escalation (in this case .015)
n = current year of contract
R1 = the starting price of $0.095 per kWh
Term: Twenty (20) Years.

SELLER’s price shall be adjusted as specified in the table below on each anniversary of the Commercial Operation Date for the term of the contract.

TABLE 1.1 EXPECTED POWER PRODUCTION & PURCHASE
Year
[n]
Cap
Esc.

Rate
(%)
[e]
Per kWh
Rate
($)
[Rn]
Expected
Production
(kWh)
[E]
80% of Expected
Production =
Guaranteed
Minimum
Production
(kWh)
[R80%]
Total
Expected
Cost
($)
[P]
80% of
Expected
Cost
($)
[P80%]
1 0.0950 4,714,745 3,771,796 $ 447,901 $ 358,320.80
2 1.5% 0.0964 4,702,958 3,762,366 $ 453,483 $ 362,786.40 3 1.5% 0.0979 4,691,201 3,752,962 $ 459,134 $ 367,307.20 4 1.5% 0.0993 4,679,473 3,743,578 $ 464,856 $ 371,884.80 5 1.5% 0.1008 4,667,774 3,734,219 $ 470,650 $ 376,520.00 6 1.5% 0.1023 4,656,105 3,724,884 $ 476,515 $ 381,212.00 7 1.5% 0.1039 4,644,465 3,715,572 $ 482,454 $ 385,963.20 8 1.5% 0.1054 4,632,854 3,706,283 $ 488,466 $ 390,772.80 9 1.5% 0.1070 4,621,271 3,697,017 $ 494,554 $ 395,643.20 10 1.5% 0.1086 4,609,718 3,687,774 $ 500,717 $ 400,573.60 11 1.5% 0.1103 4,598,194 3,678,555 $ 506,957 $ 405,565.60 20 of 24
12 1.5% 0.1119 4,586,194 3,669,358 $ 513,275 $ 410,620.00 13 1.5% 0.1136 4,575,232 3,660,186 $ 519,672 $ 415,737.60 14 1.5% 0.1153 4,563,794 3,651,035 $ 526,148 $ 420,918.40 15 1.5% 0.1170 4,552,384 3,641,907 $ 532,705 $ 426,164.00 16 1.5% 0.1188 4,541,003 3,632,802 $ 539,344 $ 431,475.20 17 1.5% 0.1206 4,529,651 3,623,721 $ 546,066 $ 436,475.20 18 1.5% 0.1224 4,518,327 3,614,662 $ 552,871 $ 442,296.80 19 1.5% 0.1242 4,507,031 3,605,625 $ 559,761 $ 447,808.80 20 1.5% 0.1261 4,495,763 3,596,610 $ 566,737 $ 453,389.60 The first year will be based on 12 full months from Commercial Operation Date 2 Expected Electricity Purchased by BUYER for First & Subsequent Operational Years For the first Operational Year the Expected Production is:

Electricity: 4,714,745 Total kWh
Annual Degradation Factor: 0.25% per Operational Year
For subsequent years the Expected Production shall be revised every year on the anniversary of the Commercial Operation Date by the annual degradation factor specified above. The Guaranteed Minimum Production shall be calculated as 80% of the Expected Usage per Section 5 of this PPA and as tabulated below. SELLER has the right to sell to BUYER up to 20% more Electricity than is the Expected Production stated herein.

Project Electricity Output
Year Expected Purchase in kWh Guaranteed Minimum Production in kWh 1 4,714,745 3,771,796
2 4,702,958 3,762,366
3 4,691,201 3,752,962
4 4,679,473 3,743,578
5 4,667,774 3,734,219
6 4,656,105 3,724,884
7 4,644,465 3,715,572
8 4,632,854 3,706,283
9 4,621,271 3,697,017
10 4,609,718 3,687,774
11 4,598,194 3,678,555
12 4,586,194 3,669,358
13 4,575,232 3,660,186
14 4,563,794 3,651,035
15 4,552,384 3,641,907
16 4,541,003 3,632,802
17 4,529,651 3,623,721
18 4,518,327 3,614,662
19 4,507,031 3,605,625
20 4,495,763 3,596,610
First year will be based on 12 full months from Commercial Operation Date 21 of 24
3 Electricity Purchase and Sales.
a. General Provisions:

SELLER will generate, deliver and sell Electricity, when available from the System, to the BUYER at the Electrical Interconnection Point during the term of this PPA.

SELLER agrees to generate, deliver and sell a quantity of Electricity as noted in Exhibit 1 Section 2 (above) and as guaranteed in PPA Section 5 to the BUYER from the System and BUYER agrees to purchase Electricity as measured at the Electrical Interconnection Point.
b. Formulas for Pricing:

SELLER shall prepare invoices in accordance with the formulas set forth in Exhibit 2 in the format set forth in Exhibit 3. SELLER shall render to BUYER an invoice each month for the preceding billing period during the Term of this PPA setting forth the actual amount of kWh delivered (“Expected Production”) and the amounts due SELLER for Electricity generated and delivered by the System. BUYER will remit full payment with each invoice to SELLER, subject to any offsets for Guaranteed Minimum Production shortfalls, due under PPA.
4 Billing Disputes
In the event BUYER disputes all or any part of any bill submitted by SELLER under this PPA, BUYER shall pay the undisputed portion of the invoice when due and shall notify SELLER in writing within fifteen (15) days from the date of receipt of any disputed invoice or adjusted invoice. The Parties shall use best efforts to resolve the dispute amicably and promptly, and upon determination of the correct billing amount, BUYER shall promptly pay or be paid the remaining portion or refund due (if any), with interest at the Interest Rate from the date payment was due until paid (in the case of an underpayment) or from the date paid until refunded (in the case of an overpayment). Late payment fees shall not be applied to amounts that are subject to a good faith dispute until the dispute is resolved and interest is calculated in accordance with this Section. In the event that disputed amounts cannot be resolved through the process of conference, disputes shall be addressed through the process provided in Section 10.6 of the PPA.

SELLER shall submit invoices to BUYER at the address as set forth below. SELLER shall also submit a duplicate invoice (copy only) to BUYER at the address as noted on the subsequent page.
5 Renewable Energy Credits
SELLER is to be the recipient and owner of all Renewable Energy Credits, and as such can market, sell, or trade them at SELLER’s sole discretion. Each and any successor to the SELLER shall be the recipient and owner of all Renewable Energy Credits accrued starting after the official closing date of the transaction, on the date which the successor takes physical possession of the system, until the end of that entity’s ownership of the system (whichever comes first).
22 of 24
6 Payment Address Notice
BUYER shall submit all payments under this PPA to SELLER’s project representative at the address listed in PPA Section 9. Parties agree that if BUYER receives notification to change the SELLER’S designated address for purposes of payment BUYER will notify the project representative at the address listed in PPA Section 9 at least sixty (60) days prior to the first submittal of payment to the new address. Parties also agree that BUYER will submit payments under this PPA by electronic funds transfer when electronic transfer becomes a readily available payment method for the BUYER. 7 Failure to Achieve Guaranteed Minimum Production Penalty Upon Failure to Achieve Guaranteed Minimum Production, measured on a biennial basis, a payment will be made from SELLER to BUYER in the sum of $0.02 per kWh on a basis of the following calculation:

P = R(MO-AO)
Where: P = Payment R = Rate ($0.02 per kWh)
MO = Guaranteed Minimum Production for the time period in kWh (Exhibit 1 Section 2 see table)
AO = Actual output for the time period in kWh
23 of 24
EXHIBIT 2

BILLING FORMULAS AND EXAMPLES
SELLER shall provide invoices as indicated in this Exhibit and shall indicate the source and calculation of each variable set forth below in a manner so that the BUYER can readily confirm the accuracy and appropriateness of each invoice. An example of a monthly invoice is attached as Exhibit 3 to this PPA.

The total invoice for Electricity delivered by SELLER for the month in question shall be determined as follows:

P = E * Rn,
Where:

P = Monthly payment made to SELLER for electricity delivered during the billing period.

E = Electricity delivered, as shown on meter, during the billing period Rn = is the contract price for the monthly billing period in $/kWh as set forth in Exhibit 1. 24 of 24
EXHIBIT 3

SAMPLE ENERGY INVOICE
Facility Name:

Facility Contact Person:

Facility Address:

Account # :

Meter #:

Start Date End Date Start Meter Read End Meter Read Total kWh Mo/day/year Mo/day/year
Contract Price: Fixed price for power in Exhibit 1. Total Cost of Power Delivered will be determined by the fixed pricing schedule as specified multiplied by the kilowatt hours used:

SELLER shall receive all revenue from excess power produced at the rate provided by the Utility.

This revenue shall be passed directly through to SELLER when received by BUYER from PG&E.

If the compensation is in a form of a credit to BUYER then that credit shall be paid to SELLER by BUYER. All CSI and tax incentives or rebates shall belong to the SELLER as compensation for the construction of the facility.

CHARGES:
kWh of Energy Used: 0.00
Fixed Price per kWh for Time Frame: $ 0.00
Amount Due: $ 0.00
Other Fee’s $ 0.00
Total Amount Due: $ 0.00
Please make payment to: American Solar Utility LLC
1470 Civic Court, Suite 309
Concord, CA 94520
25 of 24
EXHIBIT 4

EARLY TERMINATION FEE CALCULATION
In the event of a termination of this PPA pursuant to Sections 10.3.5.1 and 10.3.5.2, 12, and/or

13.1, other than Force Majeure or default by the SELLER, BUYER shall pay to SELLER an Early Termination Payment corresponding to the year in which early termination occurs.

The Early Termination Payment shall be calculated as outlined below.

The Yearly per kWh rate multiplied by the Guaranteed Minimum Production for the corresponding year multiplied then divided by 365 days to obtain a daily value then multiply that value by the remaining days in the year. Repeat the process for every year remaining on the original Term of the PPA. Sum all the yearly calculations together and obtain the total Early Termination Payment to be made to SELLER by BUYER.
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Exhibit 5
Actual Yearly Savings Calculation
The Actual Yearly Savings Calculation will go as follows P = Actual Production allocated per Meter
Pp = Actual Portion of On-Peak Production allocated per Meter Pmp = Actual Portion of Mid-Peak Production allocated per Meter Pop = Actual Portion of Off-Peak Production allocated per Meter SR = Seller’s Rate
R = Utility Rate
Rp = Utility On-Peak Rate for the Season and Rate schedule associated with the Meter Calculated Rmp = Utility Mid-Peak Rate for the Season and Rate Schedule associated with the Meter Calculated Rop = Utility Off-Peak Rate for the Season and Rate Schedule associated with the Meter Calculated K = Actual Kilowatts in Facilities Related Demand allocated per Meter Kp = Actual Kilowatts in On-Peak Demand allocated per Meter Kmp = Actual Kilowatts in Mid-Peak Demand allocated per Meter Kop = Actual Kilowatts in Off-Peak Demand allocated per Meter YK = 2013 Facilities Related Demand for the same Billing Period allocated per Meter Yp = 2013 On-Peak Demand for the same Billing Period allocated per Meter Ymp = 2013 Mid-Peak Demand for the same Billing Period allocated per Meter Yop = 2013 Off-Peak Demand for the same Billing Period allocated per Meter D = Facilities Related Demand Cost for the Season and Rate schedule associated with the Meter Calculated
Tp = Time Related On-Peak Demand Cost for the Season and Rate schedule associated with the Meter Calculated
Tmp = Time Related Mid-Peak Demand Cost for the Season and Rate schedule associated with the Meter Calculated
Top = Time Related Off-Peak Demand Cost for the Season and Rate schedule associated with the Meter Calculated
I = Individual Meter Savings
In = Individual Meter Savings for Meter N (Meter number assignments are to be given to BUYER by SELLER, in list form, as part of the written calculation).

A = Actual Billing Period Savings
An = Actual Billing Period Savings for Billing Period N (Whereas the subscript number represents each individual billing period, which are assigned in chronological order, of which there are 12 in each operational year).
27 of 24
Before Actual Yearly Savings can be established, the savings in for every individual meter must be calculated for each billing period separately, using the rate schedule associated with that meter during the billing period (“Individual Meter Savings”). After the savings for each individual meter is established, that information can then be summated into the actual savings for each billing period (“Actual Billing Period Savings”).

Individual Meter Savings = ((Pp * Rp) – (Pp * SR)) + ((Pmp * Rmp) – (Pmp * SR)) + ((Pop * Rop) – (Pop * SR)) + [((K * D) – (YK * D)) + ((Kp * Tp) – (Yp * Tp)) + ((Kmp * Tmp) – (Ymp * Tmp)) + ((Kop * Top) – (Yop * Top))] Whereas [((K * D) – (YK * D)) + ((Kp * Tp) – (Yp * Tp)) + ((Kmp * Tmp) – (Ymp * Tmp)) + ((Kop * Top) – (Yop * Top))] must be greater than or equal to zero.

If [((K * D) – (YK * D)) + ((Kp * Tp) – (Yp * Tp)) + ((Kmp * Tmp) – (Ymp * Tmp)) + ((Kop * Top) – (Yop * Top))] is less than zero then this section of the Actual Yearly Savings calculation must be removed from the calculation, as the implementation of the System will not increase demand charges.

N
Actual Billing Period Savings = ∑ (I1 + I2 + I3 + I4 … In) 1 Whereas N = the total number of meters under the Net Metering Interconnection Agreement/s.

The summation of each calculation of Actual Billing Period Savings for the year being calculated will be known as “Actual Yearly Savings”. This is represented by the following equation:

Actual Yearly Savings = (A1 + A2 + A3 + A4 + A5 + A6 + A7 + A8 + A9 + A10 + A11 + A12) SELLER reserves the right to change or amend the calculation of Actual Yearly Savings presented in this Exhibit 5, for cause of; error or omission in this Exhibit, Force Majeure Event, Change in Law, Change in the Net Metering Interconnection Agreement signed with the Utility, Change in implementation of NEM Interconnection Agreement, or Change in any Tariff associated with BUYER electrical systems.

Changes to these calculations are to be delivered to BUYER with an explanation of the changes in the calculation, in written form and implemented dependent on reasonable acceptance by BUYER, which must not be unreasonably withheld.

Service Products (Check all that apply)
Section (F) Postage Meter & Postage Funding Information Company Name City of California City
Phone (760) 373-7160
Billing Address 21000 Hacienda Boulevard
City State Zip+4 California City CA 93305
Section (B) Billing Information
Contact Name Saijee Gill
Email Address [email protected]
Fax
City of California City
Section (C) Installation Information (if different from billing information) Tax Exempt
Online Postal Rates iMeter™ App (SP10)
Online E-Services with Electronic Return Receipt iMeter™ App (SP35) NeoShip PLUS (EP70PLUS)
Software Support for premise (non-cloud) solutions
PO #
DBA
Phone (760) 373-7160
Installation Address 21000 Hacienda Boulevard
City State Zip+4 California City CA 93305
Contact Name Saijee Gill
Email Address [email protected]
Fax
Main Post Office
Maintenance
Section (D) Products
Section (E) Lease Payment Information & Lease Payment Schedule PO 5-Digit Zip Code
Product Lease Agreement
with Postage Meter Rental Agreement
Section (A) Office Information
Office Number Office Name Phone # Date
08/20/2024
Contact Title Accounts Payable
Contact Title Accounts Payable
Certificate attached
Taxable
Monthly
Quarterly
Annually
Billing Frequency:

Tax Status:

Billing Method:

Standard
Postage Funding Method:

Bill Me Prepay by Check
ACH Debit (Submit customer authorization form)
POC
New
TMS
Existing
Existing Account Number:

Postage Funding Account:

Company Name
Installation/Training
ACH (Customer to submit authorization form)
Current Lease Number:

Online Postal Expense Manager iMeter™ App (SP20/NeoStats) NeoShip Install & User Guide (EP70GUIDES)
Meter Model IX5AFAI Machine Model IX5AFWP5
4G/5G Cell Service
Qty Model / Part Number NLEqptDetailID LeaseID Description (include Serial Number, if applicable) 1 IX5AFWP5 iX-5 Series Base w/ Autofeeder, Sealer, Catch Tray, Ink Cartridge & IXWP5 Number of
Months
Monthly Payment
(Plus applicable taxes)
First 63 $211.39
____________________________________________________________________________________________________________________ _________________ Authorized Signature Print Name and Title Date Accepted ____________________________________________________________________________________________________________________ _________________ Accepted by Quadient Inc. and its Affiliates Date Accepted This document consists of a Product Lease Agreement with Quadient Leasing USA, Inc.; and a Postage Meter Rental Agreement, and an Online Services and Software Agreement with Quadient, Inc.; and a Postage Funding Account Agreement with Quadient Finance USA, Inc. Your signature constitutes an offer to enter into such agreements, and acknowledges that you have received, read, and agree to all applicable terms and conditions (version Commercial-Equipment-Lease-Terms-USPS-DealerV11-2023), which are also available at https://quadientterms.com/Commercial-Equipment-Lease-Terms-USPS-Dealer-V11-2023-CA, and that you are authorized to sign the agreements on behalf of the customer identified above. The agreements will become binding on the companies identified above only after an authorized individual accepts your offer by signing below, or when the equipment is shipped to you.

Section (G) Approval
Quadient Leasing USA Inc., 478 Wheelers Farms Rd, Milford CT 06461 Commercial-Equipment-Lease-Terms-Dealer-USPS -V11-2023 (PF) [1031 - 08/20/24 10:15:40 - 24.8.3] Existing customers who currently fund the Postage account by ACH Debit will not be converted to the Postage Funding Account unless initial here ________.

Guided by Quadient, Inc.'s Sustainable Design and Responsible Manufacturing Policy, our Products may contain reused components. For more Information visit https://www.quadient.com/about-us/sustainable-design-and-manufacturing.

Zoho Sign Document ID: 29330E50-_TTVJ6EWDIVUPQ4ZYFFLSIS0T5A7BZM5NSYQT28ME6S Customer STA
Authorized Signature Business Legal Name Acceptance Date Date
Printed Name Title By
Order Agreement
(Leasing)
STA-OAL-2020-10-26-01
By signing this Agreement, the signer and Customer acknowledges and agrees: (1) The terms and conditions appearing at https://sta.solutions/docs/Terms-2020-10-21-01.pdf are incorporated into this Agreement as if fully set forth herein. (2) having received, read, and agrees to all applicable terms and conditions (3) that this Agreement and incorporated terms constitutes the entire agreement, understandings, and representations, between Customer and STA, with respect to this transaction. (4) that this Agreement supersedes all prior communications between the parties including all oral or written proposals. and (5) that you are authorized to sign the Agreements on behalf of the Customer.

Agreement Date STA Branch Account Specialist PO Number Tax Exempt If Yes, Include Letter/Certification
Customer Bill To Customer Ship To
Business Name Business
Name
Address Address
City, State, Zip City, State, Zip
Contact, Title Contact, Title
Phone Cust # Phone Cust #
Email Email
Order Items
Qty Item/Model # Serial or ID (if available) Details/Description Items to Pickup Install Notes
Item/Model # Serial or ID Action Stairs
Other Obligations
Lease Details Product Maintenance Agreement
Term (months) Plan Type Term
(months) Co-Terminus with Lease
Lease Type Payment
(monthly)
Billing
Frequency Billed By
Payment
(monthly)
Details/Notes
Billing
Frequency
Payment
includes Software Support Plan
Plan Type
Term
(months) Co-Terminus with Lease
Payment
(monthly)
Billing
Frequency Billed By
Details/Notes
Additional Item Pages ____
Authorized Signature
Printed Name
Business Legal Name
Date
Title
8/20/24 JMP Office Technologies Jason Jasso
No
City of California City
2100 Hacienda Blvd
California City, CA 93305
Saijeee Gill, Accounts Payable
(760) 373-7160
sgill@californiacity-ca-gov
SAME
1 IX5AFWP5 iX-5 Series Base w/ Autofeeder, Sealer, Catch Tray, Ink Cartridge & IXWP5 No
new customer will need complete training please..Thank you 63 FMV
$ 211.39
Quarterly
Hardware + Product MA
Parts & Labor
Quarterly Leasing Company
Maintenance included in agreement
Updates Only
Monthly Dealer - STA
Zoho Sign Document ID: 29330E50-_TTVJ6EWDIVUPQ4ZYFFLSIS0T5A7BZM5NSYQT28ME6S -1-

COMMUNITY BENEFIT AGREEMENT
This Community Benefit Agreement (“Agreement”) is entered into as of November 15 , 2024 (the “Effective Date”) by and between the City of California City, a municipal corporation (the “City”) and 26SB 8me LLC, a Delaware limited liability company (“Developer”). City and Developer are sometimes hereinafter individually referred to as a “Party” and collectively referred to as the “Parties.”

RECITALS
A. Whereas, Developer is developing and constructing the Bellefield 2 project and its associated solar energy system and battery energy storage system (the “Project”), a portion of which is located in California City, California ; B. Whereas, Developer has proposed to provide a one-time donation to the City to fund certain projects that will bring long-lasting positive community impacts to the City and its residents;
C. Whereas, The City authorized the City Manager’s acceptance of Developer’s proposed donation via Resolution No. 24-3061 on November 4, 2024 (the “Resolution”) to support a list of improvement projects that the City will undertake, as further described in this Agreement;
D. Whereas, the Parties desire to enter into this Agreement to clarify the means by which Developer will make payment of the donation to the City and to ensure such funds are allocated to the aforesaid community benefits.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions, and considerations contained herein, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:

1. Community Benefit Donation. Within fifteen (15) days of the Effective Date, Developer shall make a one-time cash payment of two million seven hundred thousand dollars ($2,700,000.00) to the City’s general fund (the “Community Benefit Donation”). Upon receipt by the City, the City may use the Community Benefit Donation for any of the approved projects and capital expenditures listed in Exhibit A (the “Approved Projects)”. The City’s use of the Community Benefit Donation is restricted to the Approved Projects and any unused portion of the Community Benefit Donation may be used to support any of the Approved Projects by way of funding, maintaining, purchasing supporting equipment, or training that may be required to fulfill the needs of the Approved Projects. Developer will bear no obligation to complete the Approved Projects nor any liability under this Agreement in connection with the Approved Projects. The City shall be responsible for securing all necessary rights of way and permissions to complete the Approved Projects.

2. Annual Report. The City shall provide Developer with an annual report detailing its use of the Community Benefit Donation on the Approved Projects (“Annual Report”). Each -2-
Annual Report will include (i) an itemized list of expenditures made from the Community Benefit Donation and (ii) the remaining balance of the Community Benefit Donation. The City shall provide the first Annual Report within sixty (60) days after the close of the City’s fiscal year in which the Community Benefit Donation was made, with subsequent Annual Reports due on a yearly basis until the Community Benefit Donation funds have been fully expended.

3. Miscellaneous.

A. Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party as to all terms in the Agreement.

B. Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

C. Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not business days. The captions of the various sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

D. Notices. All notices under this Agreement shall be in writing and given by (i) reputable overnight carrier with delivery confirmation, (ii) certified mail with postage prepaid return receipt requested, (iii) courier service with electronic delivery confirmation and receipt signature, or (iv) email transmission (provided that a physical copy is post marked within twenty-four (24) hours of such email transmission), to the Party(s) entitled to such notice at the address set forth below.

If to Developer:
26SB 8ME LLC
Attn: Development
2180 S 1300 E #500
Salt Lake City, UT 84106
Email:

With a copy to: [email protected]
If to the City:

City of California City
Attn: City Manager
21000 Hacienda Blvd.

California City, CA 93505
-3-
(760) 373-8661
E. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

F. Waiver. A Party’s failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein shall not relieve the other Party of any of its obligations under this Agreement.

G. Assignment or Transfer. Neither Pary shall assign, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of the other Party, except to an affiliate of Developer; provided, however, that Developer may make such assignments as the Developer deems necessary for the Project without the consent of the City. Any other attempts to assign this Agreement or any interest herein without prior written consent of the other Party shall be null and void, and any assignee, transferee shall acquire no right or interest by reason of such attempted assignment or transfer. The City shall not withhold such approval if Developer’s successor entity provides reasonably satisfactory evidence to City that it possesses the financial resources equivalent or superior to those of Developer to meet the obligations in this Agreement. Upon an assignment as allowed by this Section 3.G., Developer shall be released from its obligations under this Agreement; provided that assignee shall commit in writing to assume Developer’s obligations under this Agreement.

H. Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns.

I. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

J. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

K. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Kern, California.

L. Attorneys’ Fees and Costs. In the event any Party initiates a lawsuit to enforce its rights under this Agreement, the losing Party shall pay the prevailing Party’s litigation costs and expenses, including without limitation reasonable attorneys’ fees. In no event shall any Party be entitled to recover consequential damages, special damages, or punitive damages against any Party.

M. Relationship Between the Parties. The Parties hereby mutually agree that neither this Agreement, nor any other related entitlement, permit, or approval issued by City for the Project shall operate to create the relationship of partnership, joint venture, or agency between City and Developer. Developer’s contractors and subcontractors are -4-
exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City.

N. Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument. -5-
IN WITNESS WHEREOF, the Parties have executed this Agreement on the Effective Date.

DEVELOPER:
26SB 8ME LLC,
a Delaware limited liability company
By:

Name: James Marshall
Title: Chief Financial Officer
THE CITY:

CITY OF CALIFORNIA CITY,
a California municipal corporation
By:

Name: Latisha Lamberth
Title: Acting City Manager
-6-
Exhibit A
Approved Projects

Electronic Record of Contracts
This document was generated as a record of certain contracts created, accepted and stored electronically.

Summary of Contracts
This document contains the following contracts.

Title ID
Community Benefit (CITY OF CALIFORNIA CITY and 26SB 8me LLC) 758599b4-16a5-4a23-be50-9ebf59c94372 Contracts signed by:

Latisha Lamberth Signer ID: 110e60a2-389a-4a0b-893a-e3c21f37215d Email: [email protected]
Date / Time: Nov 15, 2024 at 6:53 PM EST
IP Address: 173.245.34.194
User Agent:

Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/130.0.0.0 Safari/537.36 Edg/130.0.0.0
James Marshall Signer ID: 543a8af9-19a8-4ec8-8da8-9fe9a5f56955 Email: [email protected]
Date / Time: Nov 18, 2024 at 4:10 PM EST
IP Address: 174.230.194.53
User Agent: Mozilla/5.0 (Macintosh; Intel Mac OS X 10_15_7) AppleWebKit/605.1.15 (KHTML, like Gecko) Version/17.5 Safari/605.1.15 CB 1

COUNCIL AGENDA ITEM
November 17, 2025
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: Resolution 2026-3244: A Resolution of the City Council of the City of California City Approving the Annual Rate Adjustment Request from WM for the 2026-2027 Fiscal Year
BACKGROUND/ DISCUSSION:

The City has entered into a franchise agreement with WM (formerly Waste Management, and also identified as USA Waste of California) to provide all waste collection and disposal within the city limits. Section 11.2 and Appendix B of the franchise agreement provides the method for annual adjustments to the rates charged by WM based on a multi-index rate methodology that includes an Operating Component, reflecting changes in the Consumer Price Index, Employment Cost Index, and Fuel Index, a Disposal Component, reflecting changes in disposal and processing costs, and a Fee Component.

The rate adjustment request for 2026-2027, which was submitted on March 27, 2026, includes a

5.0% increase in the Operating Component and 3.1% increase in the Disposal Component.

If approved by the City Council, each residential maximum rate currently in effect would increase above the rates previously approved by the City Council, effective on July 1, 2026. For example, the maximum rate for weekly residential 35-gallon cart service would increase from $34.98 to $36.73 per month, the maximum rate for weekly 64-gallon cart service would increase from $38.10 to $40.01 per month, and the maximum rate for weekly 96-gallon cart service would increase from $41.18 to $43.24.

WM staff will present the request at the City Council meeting.

FISCAL IMPACT:

Per the terms of the franchise agreement, administrative fees received by the City would also be adjusted in accordance with the Operating Component adjustment. Therefore, the Administrative Fee of $28,155.45 will be increased to $29,563.22. City facilities and certain activities are covered within the agreement, but activities undertaken outside of the scope of services would be subject to the adjusted service rates.

CB 1
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution approving the rate adjustments.

ENVIRONMENTAL IMPACT:

There are no environmental impacts associated with this request.

ATTACHMENTS:

1. Resolution No. 26-3244

2. California City Rate Adjustment Request - WM
4936-0890-7817 v1 Page 1 of 2
RESOLUTION NO. 26-3244

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CALIFORNIA CITY APPROVING THE ANNUAL RATE ADJUSTMENT
REQUEST FROM WM FOR THE 2026-2027 FISCAL YEAR
The City Council of the City of California City (hereafter referred to as the “City”) does resolve as follows:

WHEREAS, the City has entered into a franchise agreement with WM (formerly Waste Management, and identified in the agreement as “USA Waste of California”) to provide all waste collection and disposal within the city limits; and WHEREAS, Section 11.2 of the franchise agreement provides for annual adjustments to the rates charged by WM based on a multi-index rate methodology that includes an Operating Component, reflecting changes in the Consumer Price Index, Employment Cost Index, and Fuel Index, a Disposal Component, reflecting changes in disposal and processing costs, and a Fee Component; and WHEREAS the rate adjustment request for 2026-2027, which was submitted on March 27, 2026, includes a 5.0% increase in the Operating Component and 3.1% increase in the Disposal Component;

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY, CALIFORNIA, AS FOLLOWS:

SECTION 1: The City hereby approves the Annual Rate Adjustment Request from WM for the 2026-2027 Fiscal Year, as summarized in the recitals to this resolution.

SECTION 2: City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the letter.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of California City, this 12th day of May 2026.
__________________________
Marquette Hawkins
Mayor
ATTEST: APPROVED AS TO FORM:
___________________________ __________________________
John Paul Maier Victor M. Ponto,
Deputy City Manager / City Clerk City Attorney
4936-0890-7817 v1 Page 2 of 2

CERTIFICATION
I, John Paul Maier Deputy City Manager / 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 12th of May 2026, 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 12th day of May, 2026. __________________________
John Paul Maier
Deputy City Manager / City Clerk
Kern County Operations
416 N Dennison Rd.

Tehachapi, CA 93561
••
CB 2
4898-7406-7085 v1

COUNCIL AGENDA ITEM
May 12, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: 1) Approval of a Contract with Willdan Financial Services for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan in an Amount Not-ToExceed $40,545; and 2) Authorize the City Manager to Execute the Contract
BACKGROUND/ DISCUSSION:

One of the actions identified in the City’s Fiscal Distress Action Plan includes updating all fees to ensure that the City is receiving an appropriate recovery of costs to provide fee-based services.

Most of the City’s fees have not been updated in more than five years. Some of the City’s fees were created without a nexus study or fee study to analyze the City’s cost to provide the services related to the fees and comparative analysis of comparable city fees. The City requires an appropriate study to move forward with updating all fees. This will be accomplished by a fee study for fees charged to customers and a cost allocation plan for the internal cost attributed across departments. The City has awarded a contract for water and wastewater fee analysis which requires a different approach and legal compliance procedure. This fee study and cost allocation plan will not overlap but will be complimentary to the water and wastewater fee development.

On March 24, 2026, the City Council authorized the release of a Request for Proposals (RFP) for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan.

The City received four submissions in response to the RFP by the response deadline of April 27, 2026:
• Matrix Consulting Group
• MGT
• RCS
• Willdan Financial Services
Three staff members reviewed and graded the applications using the criteria established in the RFP. Willdan Financial Services received the highest average score and provided the lowest overall cost among the bidders.

CB 2
4898-7406-7085 v1
The cost for Willdan Financial Services to provide the required services is a fixed fee of $10,820 for the Cost Allocation Plan and a fixed fee of $29,725 for the User Fee Study FISCAL IMPACT:

The cost of required services will be $40,545 to be paid for from Fund #10-4155-310, General Government: Professional Services
RECOMMENDATION:

It is recommended that the City Council approve a contract with Willdan Financial Services for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan and authorize the City Manager to execute a contract.

ATTACHMENTS:

Willdan Financial Services Bid
City of California City, CA
Cost Allocation Plan &
User Fee Study
Proposal
T 951.587.3500 ▪ 800.755.6864 | F 951.587.3510 ▪ 888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com i

1. Letter of Transmittal
April 27, 2026
Mr. Sean Grayson submitted via email: [email protected] Interim City Manager
City of California City
21000 Hacienda Boulevard
California City, CA 93505
Re: Proposal to Conduct a Comprehensive User Fee Study and Cost Allocation Plan for the City of California City
Dear Mr. Grayson,
Given our continuing relationship with the City of California City (“City”), Willdan is pleased to present this proposal for a Comprehensive User Fee Study and Cost Allocation Plan for your consideration.

As you know, cities throughout California consistently contend with limited financial resources to address competing priorities and objectives, while striving to maintain high standards of service to their communities. Considering this, it is critical that the City of California City (“City”) confirm that its fees for requested services are updated to reflect current service models and practices, account for the full cost of providing City services, incorporate provision for overhead rates and costs related to indirect support, and maximize appropriate cost recovery. This will help ensure that the revenues generated by fees cover the cost of those services to the greatest extent possible, ensure effective use of the City’s financial resources and enhance overall fiscal sustainability. City Staff, and ultimately the City Council, need a clear understanding of standards, service levels and the associated costs. Recognizing this, the City has requested this proposal for a Comprehensive User Fee Study and Cost Allocation Plan.

Willdan Financial Services (“Willdan”) is uniquely qualified to assist the City of California City with this engagement, following are specific advantages that Willdan brings to the City for these studies:

Direct Experience working with California City — Willdan has worked with the City of California City for more than twenty years, providing consulting services for the ongoing administration of assessments, which affords us an understanding of the City and local community, and allows us to benefit from relationships with staff. In addition, Willdan was just recommended by City Staff to the City Council for selection as the consultant to assist the City with a Comprehensive Water and Wastewater Rate Study, further attesting to the City’s confidence in our expertise and experience. We will bring the same level of professionalism and consulting expertise to this engagement that the City has come to expect from Willdan, and coordinate efforts and communication wherever possible.

Extensive Local Experience with Similar Projects for California Cities — In addition to our direct experience in California City, Willdan is also working with or has recently worked with numerous cities in California on Cost Allocation Plan and User Fee projects with the same objectives and desired scope of services outlined in the City’s RFP. Our local experience provides an understanding of the region and its dynamics, enables us to bring valuable perspective and insight into other local cities’ approaches to developing fees and their policies on fee setting and subsidies and will assist us in conducting meaningful and efficient fee comparisons.

Recent and ongoing studies include Pittsburg, Pacifica, Antioch, Benicia, Corona, Chino Hills, Burbank, Irvine, Temecula, Rancho Cordova, West Sacramento, El Cerrito, San Pablo, Manteca, Fairfield, Monterey, Foster City, Mountain View, Belmont, Salinas, and Richmond. We were also just competitively selected to complete similar studies for the city of Napa.

Our Cost Allocation methodologies and
models have been reviewed and approved
by Cognizant Agencies such as the US Army
and recently, the US Department of
Housing and Urban Development, providing
evidence of our thorough and defensible
approach to the development of Cost
Allocation strategies.

Mr. Sean Grayson, Interim City Manager
City of California City
Comprehensive User Fee Study and Cost Allocation Plan
April 27, 2026 | Page ii
Collaborative Approach, Proven Results and User-friendly Models and Reports — Willdan prides itself on working closely with City staff to develop an approach that is targeted toward your specific objectives and reality, and then working together with you to gather first-hand information regarding the processes and tasks required to provide services to those requesting them. This is a distinct advantage we will bring in our approach with the City of California City. A collaborative approach ensures we clearly understand your goals and challenges, and just as importantly, you understand the process and the results.

We create user-friendly Excel-based models that the City can retain and conduct our analysis and develop the models collaboratively with City staff. Rather than using an inflexible proprietary software program, we construct our models from the ground up, mirroring the City’s budget format wherever possible.

Created directly from the models, our reports clearly and graphically illustrate full and recommended levels of cost recovery and projections of revenue for fee programs, break down the costs into direct and indirect overhead categories, and present the fee methodologies.

Our approach is geared toward delivering work on schedule and presenting results at public meetings and council workshops to stakeholders and elected officials who typically do not want or need to see the deep detailed analysis.

The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals. We have coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.

2. Company Name and Address

3. General Information
Willdan Financial Services is proud to submit this proposal to the City of California City. I will serve as the prime contact if you wish to discuss any aspect of this submittal, please contact me; my contact information is provided in the table below.

As a Vice President of Willdan Financial Services, I am authorized to bind the firm to the terms of this proposal, as well as the subsequent agreement.

Willdan Financial Services
Primary Contact & Company Name and Address
Chris Fisher
Vice President / Director
27368 Via Industria, Suite 200 | Temecula, CA 92590
Tel #: (951) 587-3500 | Fax #: (951) 587-3510
Email: [email protected]
Respectfully,

WILLDAN FINANCIAL SERVICES
Chris Fisher
Vice President / Director
Comprehensive Citywide Fee Study and Cost Allocation Plan iii City of California City, CA
Table of Contents

1. Letter of Transmittal .....................................................................................................................................................i

2. Company Name and Address................................................................................................................................. ii

3. General Information.................................................................................................................................................... ii Table of Contents ................................................................................................................................................................ iii

4. Firm History and Organizational Chart...............................................................................................................1 Qualifications and Experience of the Firm ............................................................................................ 1

5. Primary Personnel........................................................................................................................................................ 3 Project Team............................................................................................................................................ 3 Resumes .................................................................................................................................................. 3 Chris Fisher............................................................................................................................................... 4 Tony Thrasher........................................................................................................................................... 5 Priti Patel................................................................................................................................................... 6 Samantha Labitan ..................................................................................................................................... 7 Robert Quaid............................................................................................................................................. 8

6. Primary Business ..........................................................................................................................................................9

7. Engagement Office .....................................................................................................................................................9

8. Project Experience..................................................................................................................................................... 10 Unique Experience................................................................................................................................ 10

9. Schedule of Work Plan ..............................................................................................................................................11 Project Understanding.......................................................................................................................... 11 Project Methodologies.......................................................................................................................... 13 Work Plan............................................................................................................................................... 16 City Staff Support.................................................................................................................................. 22 Schedule ................................................................................................................................................ 24 Quality Control ...................................................................................................................................... 25

10. References .....................................................................................................................................................................27 Compensation and Fees.................................................................................................................................................32 Not to Exceed Fee ................................................................................................................................. 32 Hourly Rates.......................................................................................................................................... 33 Comprehensive User Fee Study and Cost Allocation Plan 1 City of California City, CA

4. Firm History and Organizational Chart
Qualifications and Experience of the Firm
Willdan Financial Services is an operating division
within Willdan Group, Inc. (WGI), which was founded in
1964 as an engineering firm working with local
governments. Today, WGI is a publicly traded company
(WLDN). WGI, through its divisions, provides
professional technical and consulting services that
ensure the quality, value and security of our nation’s
infrastructure, systems, facilities, and environment. The firm has pursued two primary service objectives since
its inception—ensuring the success of its clients and
enhancing its surrounding communities.

A financially stable company, Willdan has over 1,800
employees working in more than a dozen states across
the U.S. Our employees include a number of nationally
recognized Subject Matter Experts for all areas related to the broadest definition of connected communities —
five of whom are committed to contribute their
expertise throughout the duration of the City of
California City’s fee study engagement.

Willdan has solved economic, engineering and energy
challenges for local communities and delivered
industry-leading solutions that have transformed government and commerce. Today, we are leading our clients into a future accelerated by change in resources, infrastructure, technology, regulations, and industry trends.

Size of Firm and Years in Business
Established on June 24, 1988, Willdan Financial Services, is a national firm and is one of the largest public sector economic and financial analysis consulting firms in the United States. Since that time, we have helped over 800 public agencies successfully address a broad range of infrastructure challenges.

WFS Office Locations
The following table provides the location of our Division Headquarters, as well as our satellite offices.

Willdan Financial Services
Office Locations
Division Headquarters
27368 Via Industria, Suite 200, Temecula, California 92590 | Tel: (800) 755-6864 | Fax: (888) 326-6864 Aurora, CO
3190 S. Vaughn Way
Suite 550, Office 523
Aurora, Colorado 80014
(303) 990-4616
Orlando, FL
200 South Orange Avenue
Suite 1550
Orlando, Florida 32801
(407) 872-2467
Plano, TX
5500 Democracy Lane
Suite 130
Plano, Texas 75024
(972) 378-6588
Oakland, CA
66 Franklin Street
Suite 300
Oakland, California 94607
(510) 832-0899
Phoenix, AZ
1440 E. Missouri Ave
Suite C-170
Phoenix, Arizona 85014
(602) 870-7600
Washington, DC
1025 Connecticut Ave. NW
Suite 1000
Washington, DC 20036
(202) 510-0511
Comprehensive User Fee Study and Cost Allocation Plan 2 City of California City, CA
Organizational Structure
The organization chart located below represents Willdan Financials Services’ reporting structure, including the operating groups and the responsible manager.

Employee Structure
Our staff of over 80 full-time employees support our clients by conducting year-round workshops and on-site training to assist them in keeping current with the latest developments in our areas of expertise.

Employee Structure
Title Count
President & CEO 1
Vice President –Director 2
Vice President 5
Assistant Director 3
Principal Consultant 16
Project Manager 14
Analyst 26
Analyst Assistant 8
Administration 7
Slate of Officers
Willdan Financial Services
Slate of Officers
Michael Bieber
Chief Executive Officer/WGI
Mark J. Risco
President and CEO
Creighton K. Early
Chief Financial Officer/WGI
Chris Fisher
Vice President / Director
Gladys Medina-Ceballos
Vice President / Director
Jason Gray
Vice President
Daryll Parker
Vice President
Josephine Moses
Vice President
Dan Jackson
Vice President
Michael Vasquez
Vice President
Rebekah Smith
Assistant Secretary/Director of Operations
Comprehensive User Fee Study and Cost Allocation Plan 3 City of California City, CA

5. Primary Personnel
Project Team
Our management and supervision of the project team is very simple:
staff every position with experienced, capable personnel in sufficient numbers to deliver a superior product to the City, on time and on budget.

With that philosophy in mind, we have selected experienced professionals for this engagement. We are confident that our team possesses the depth of experience that will successfully fulfill your desired work performance.

City of California City
Project Team
Key Team Member Project Role Years of
Experience Responsibility to the Engagement
Chris Fisher
Vice President/Director
Principal-in-Charge 26 Years
▪ Ensure client satisfaction, flow of communication,
and oversight of the project;
▪ Technical guidance;
▪ Project oversight;
▪ Quality assurance & control; and
▪ Meeting and presentation attendance.

Tony Thrasher
Principal Consultant
Project Manager 15 Years
▪ Task oversight;
▪ Model development;
▪ Produce key elements of the analysis;
▪ Responsible for project deliverables;
▪ Report preparation and evaluation; and
▪ Meeting and presentation attendance.

Priti Patel
Project Manager
Project Analyst 11 Years
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review;
▪ Report preparation; and
▪ Meeting and presentation attendance.

Samantha Labitan
Senior Analyst
Analytical Support 8 Years
▪ Collect, interpret, and disseminate key data;
▪ Assistance with model development;
▪ Peer review; and
▪ Report preparation.

Robert Quaid
Principal Consultant
Technical Advisor 40 Years
▪ Third party reviewer; and
▪ Report evaluation.

Resumes
Resumes for Willdan’s project team are presented on the following pages.

The team presented within this proposal
has worked collectively on numerous
projects, such as the one requested by the
City of California City; an established work
practice between the team members has
been forged, this proven long-standing
system has benefited our clients.

Comprehensive User Fee Study and Cost Allocation Plan 4 City of California City, CA
Education
San Francisco State
University, Bachelor
of Science, Finance
Areas of Expertise
Cost of Service
Analyses
Multi-disciplinary
Team Management
Special District
Formations
Client Presentations
Proposition 218
Affiliations
California Society of
Municipal Finance
Officers
Municipal
Management
Association of
Northern California
California Municipal
Treasurers
Association
26 Years’ Experience
Chris Fisher
Principal-in-Charge
Mr. Chris Fisher, Vice President / Director of Willdan’s Financial Consulting Services group, will serve as Principal-in-Charge for the City of California City project. He will also share his extensive knowledge related to cost-of-service principles with members of the project team. Mr. Fisher joined Willdan in April of 1999, and during that time has managed an array of financial consulting projects for public agencies in California, Colorado, Texas, Arizona, and Florida, coordinating the activities of resources within Willdan, as well as those from other firms working on these projects. He is one of the firm’s leading experts for special district financing related to public infrastructure, maintenance, and services, including public safety.

Select Related Experience
City of Pittsburg, CA — Cost Allocation Plan and User Fee Study: Mr. Fisher served as the Principal-in-Charge for the City of Pittsburg’s project team for our work on a Cost Allocation Plan and User Fee Study, as well as subsequent updates, overseeing quality control and project execution and providing technical expertise.

City of Hayward, CA — Cost Allocation Plan and User Fee Study: Mr. Fisher served as the project manager for the City’s full overhead cost allocation plan and OMB cost allocation plan, along with a comprehensive master user fee study. He worked with the City and Willdan staff to gather the necessary data and is overseeing Willdan’s development of the cost allocation model. The City has a complicated and detailed budget, and the cost allocation plan that Willdan developed is tailored to their structure and includes provision for several Internal Service Funds.

City of San Bruno, CA — Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher oversaw the update of the City’s general overhead allocation plan and cost-ofservice user fees.

City of Petaluma, CA — Overhead Cost Allocation Plan and OMB Circular Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rate Study: Mr. Fisher served as project manager for the project team and provided oversight for this thorough and intensive study for the City of Petaluma. The City has hired Willdan for multiple updates since we completed the original study.

City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

Mr. Fisher is the principal-in-charge for the City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, managing the overall execution of the project, providing technical guidance and quality control.

City of Pomona, CA – Master Fee Schedule Update: Mr. Fisher was the principal-in-charge for the City’s master fee schedule update and update of the development impact fees. Mr. Fisher provided quality control and served as the primary contact with the City.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Fisher oversaw the City’s recently completed Citywide User Fees and Charges Study.

City of West Covina, CA — Comprehensive Cost Allocation Plan and User Fee Study: Mr. Fisher served in the role of project manager for the City’s engagement. The cost allocation plan developed will aid the City in the recovery of overhead costs related to central service activities.

City of Palm Desert, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Mr. Fisher was the principal-in-charge for the ongoing full cost allocation plan and user fee study.

Willdan’s work included the gathering of necessary data and information, interviews with City Staff to identify overhead support services and how they are used and interviews to gather information related to fee-based services. We also developed financial models to calculate overhead allocations and personnel rates and the full cost of services for which fees are charged. We worked with Staff to finalize cost recovery targets, prepare reports and present the results.

City of Laguna Hills, CA — Comprehensive Cost Allocation Plan and Comprehensive User Fee Study: Mr. Fisher oversaw the update of the City’s general overhead allocation plan and cost-ofservice user fees.

City of Irvine, CA —Cost Allocation Plan and Comprehensive User Fee Study: Willdan completed a cost allocation plan and user fee study for the City of Irvine. Mr. Fisher managed and provided quality assurance to this project, ensuring the accuracy of the models, as well as the final reports. He also presented the results to the City’s Finance Commission and to the City Council.

Comprehensive User Fee Study and Cost Allocation Plan 5 City of California City, CA
Education
Bachelor of Science
in Economics;
California State
Polytechnic
University, Pomona
Areas of Expertise
Cost Allocation Plans
Fiscal Analysis for
User Fees and Rates
District Administration
Services
Utility Rate Studies
15 Years’ Experience
Tony Thrasher
Project Manager
Due to his cost allocation and user fee analyses experience, Mr. Tony Thrasher has been selected to serve as Project Manager for the City’s engagement. Mr. Thrasher is a Principal Consultant within the Financial Consulting Services group, whereby his responsibilities include managing projects and conducting fiscal analyses for cost allocation plans, user fees, and utility rate studies.

Mr. Thrasher’s prior employment was as a financial analyst working in bond, equity, and mortgagebacked security markets for Wells Fargo Bank, Bank of New York Mellon, and Deutsche Bank. His experience includes portfolio accounting, differential analysis, and forecasting.

Select Related Experience
City of Pittsburg, CA — Cost Allocation Plan and User Fee Study: Mr. Thrasher served as the project manager for the original Cost Allocation Plan and User Fee Study for the City, as well as updates to both studies. Mr. Thrasher worked directly with City Staff to gather data and coordinate meetings to facilitate our understanding of the City’s processes for service delivery. He led development of models for cost allocation and calculating the full cost of user fee-based service activities, oversaw preparation of reports and deliverables, and coordinated analytical support.

City of Hayward, CA — Cost Allocation Plan and User Fee Study: For this project, Mr. Thrasher provided analytical support and was largely responsible for the development of the models. Primary duties include gathering and verifying necessary data, finalizing model figures, and generating reports.

City of Petaluma, CA — Overhead Cost Allocation Plan and OMB Circular Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rate Study: Mr. Thrasher provided analytical support for this engagement. His primary duties were to work with City staff to gather data, provide assistance to the project manager, and produce reports.

City of Santa Cruz, CA – Cost Allocation Plan Update and Fully Burdened Hourly Rate Study:

Mr. Thrasher is serving as the project manager for the City of Santa Cruz’s engagement; this is an ongoing study.

City of Richmond, CA — Cost Allocation Plan & User Fee Study: Mr. Thrasher was the project manager for the City of Richmond’s fee study.

City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

As the project manager for City’s Comprehensive User Fee Study and Cost Allocation Plan engagement, Mr. Thrasher is overseeing the project analysts and is heavily involved in the analysis, development of models, preparation of reports and delivery of results.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Mr. Thrasher was the project manager for the City’s recently completed study, He directed the preparation of the model and reports and was responsible for the delivery of results to the City.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City’s Cost Allocation Plan and Comprehensive User Fee Study. He is working directly with the City contact throughout the engagement.

City of Irvine, CA — OMB Cost Allocation Plan and Comprehensive User Fee Study: Serving as the project’s analyst, Mr. Thrasher provided analytical support; and designed micro-level allocation models to ensure full-cost recovery for public safety, public works, community development, community services, and administrative departments.

City of Indian Wells, CA — User Fee Study: Mr. Thrasher served as the technical project manager for the City’s Administrative, Building, Planning and Public Works Departments. The study involved the identification of existing and potential new fees, fee schedule restructuring, data collection and analysis, orientation and consultation, quality control, communication and presentations, and calculation of individual service costs cost recovery levels.

City of San Marcos, CA — Cost Allocation Plan, Indirect Cost Rate Proposals and Comprehensive User Fee Study: Mr. Thrasher is the project manager for the City of San Marcos’ full and OMB compliant cost allocation plan, preparation of Indirect Cost Rate proposals, and Comprehensive User Fee Study engagement. He is the primary in developing the model, which contains all City personnel and expenditures broken down into the ICRP tables. The project is ongoing, and the User Fee Study is now underway.

Comprehensive User Fee Study and Cost Allocation Plan 6 City of California City, CA
Education
Bachelor of Arts;
Business
Management,
Information Systems
and
International
Business,
University of
Cincinnati
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Proposition 218
11 Years’ Experience
Priti Patel
Project Analyst
Ms. Priti Patel is a Project Manager in the Financial Consulting Services group. She plays a crucial role in the project team by conducting utility rate analyses, fee studies, cost allocation plans, monitoring Proposition 218 compliance, and establishing special districts. Ms. Patel is responsible for coordinating and performing activities related to Cost Allocation Plans and User Fee Studies. This includes integrating and adjusting databases, analyzing revenues and expenditures, and preparing documentation. Additionally, she regularly interacts with clients as part of her responsibilities.

Ms. Patel joined Willdan as an Analyst with the District Administration Group, while with DAS she performed research and analysis needed for local government financial issues related to district administration, including document data entry and updating, database management, research, and report preparation. She also provided general information on questions pertaining to Assessment Districts and special taxes (such as Mello-Roo’s Pools), as well as the status of property delinquencies.

Select Related Experience
City of Pittsburg, CA — Cost Allocation Plan and User Fee Study: Ms. Patel was assigned to aid senior project team members on the Pittsburg Cost Allocation Plan and User Fee Study engagement, and the updates that followed. She was a technical lead for the gathering of data, creation of the models and preparation of study reports and presentations. The City hired Willdan for the original study, and for two subsequent updates.

City of San Bruno, CA — Comprehensive User Fees and Charges Study: Ms. Patel provided analytical support and gathered budget and allocation basis data for this engagement. She also assisted in the development of the financial model.

City of Richmond, CA — Cost Allocation Plan & User Fee Study: Ms. Patel was the financial analyst on the City of Richmond’s User Fee Study and Cost Allocation Plan. She assisted the project manager with gathering and validation of data, development of the models and related analysis, staff interviews and preparation of reports and presentations.

City of Monterey, CA — Cost Allocation Plan: Ms. Patel is serving as the financial analyst for the Monterey Cost Allocation Plan and updates. In this role she is responsible for obtaining updated information and data, reviewing overhead structure and functions, and preparing the updated model and report. The City originally hired Willdan for the creation of the first Cost Allocation Plan and has hired us for multiple updates since then.

City of West Hollywood, CA — Comprehensive User Fee Study and Cost Allocation Plan:

Ms. Patel is serving as the primary financial analyst for City of West Hollywood’s Fee Study engagement. Ms. Patel has been instrumental in collecting the necessary data and collaborating with the City and Willdan senior project team members in conducting the study, including development of the model, researching similar fees in comparable cities and preparation of reports.

City of Burbank, CA — Comprehensive Citywide User Fees and Charges Study: Ms. Patel provided analytical support and gathered budget and allocation basis data for this engagement. She also assisted in the development of the financial model.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided support to senior team members in the preparation of the cost allocation plan, OMB compliant plan and comprehensive user fee study engagement.

City of Laguna Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Patel provided analytical support in the preparation of a full cost allocation plan and fee study for the development of a master list of fees.

City of Chino Hills, CA — Cost Allocation Plan and Comprehensive User Fee Study: Providing analytical support in the preparation of a cost allocation plan and comprehensive fee study, Ms. Patel worked to identify and take into account direct and indirect costs, along with changes in staffing, structure, and service delivery methods. She is also assisting in the preparation of user-friendly Excelbased models that City staff can easily update in the future to determine the proper allocation of expenditures and ongoing full cost of City-provided services.

Comprehensive User Fee Study and Cost Allocation Plan 7 City of California City, CA
Samantha Labitan
Analytical Support
Ms. Samantha Labitan is Senior Analyst within Willdan’s Financial Consulting and District Administration Services groups. Ms. Labitan provides analytical support under the guidance of the project team. Her primary function is to support project managers and senior analysts with cost allocation plans and user fee studies. She specializes in analysis for a variety of clients, including cities, water districts, public utilities, and school districts.

She regularly speaks with individuals representing title companies, real estate agencies, and appraisal firms, together with staff from cities and counties. Willdan’s proprietary computer system allows him to readily access the owner’s name, the Assessor’s Parcel Number, existing and future taxes or assessments, and more; thus, enabling expedient service. Community Facilities Districts, Local Improvement Districts, Landscape and Lighting Districts, and County Service Areas are some of the special districts she administers.

Select Related Experience
City of Richmond, CA — Cost Allocation Plan & User Fee Study: As analytical support, Ms. Labitan provided assistance to the project team. Primary duties included gathering and verifying necessary data, finalizing model figures and generating reports.

City of Gilroy, CA — Cost Allocation Plan and Comprehensive User Fee Study: Ms. Labitan worked on the team for the City’s fee study project, providing analytical support, gathering data, working with staff to make refinements, and developing cost allocation and fee models to ensure fullcost recovery for building and safety, planning, community development, and public works departments.

City of Goleta, CA — Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive fee study, full and OMB compliant cost allocation plan.

City of Los Banos, CA — Full & OMB Compliant Cost Allocation Plan and Comprehensive User Fee Study: Ms. Labitan provided analytical support to the project team for the City’s comprehensive fee study, full and OMB compliant cost allocation plan.

City of Pismo Beach, CA — Comprehensive User Fee Study: Ms. Labitan served in the capacity of assistant analyst for the City’s comprehensive fee study.

City of West Hollywood, CA — Cost Allocation Plan and Comprehensive User Fee Study: For this project, Ms. Labitan provides analytical support. Primary duties include gathering and verifying necessary data, finalizing model figures and generating reports.

City of Lynwood, CA — Cost Allocation Plan & OMB Compliant Cost Allocation Plan and User Fee Study: Ms. Labitan provided support to the project team specific to the preparation of a comprehensive fee study, full and OMB compliant cost allocation plan. Ms. Labitan worked in tandem with the project managers to identify and account for direct and indirect costs, along with changes in staffing, structure, and service delivery methods.

City of San Fernando, CA — Cost Allocation Plan and Comprehensive User Fee Study:

Ms. Labitan is currently providing support to senior team members in the preparation of a cost allocation plan, OMB compliant plan and comprehensive user fee study.

City of El Centro, CA — Full & OMB Compliant Cost Allocation Plan and User Fee Study:

Ms. Labitan served as the analyst in the preparation of a full & OMB compliant Cost Allocation Plan and Comprehensive User Fee Study, for the City of El Centro engagement.

City of Blythe, CA — Full and OMB Compliant Cost Allocation Plan: Ms. Labitan served as the analyst in the preparation of a full and OMB compliant cost allocation plan, for the City of Blythe engagement.

City of Brighton, CO — Cost Allocation & OMB Compliant Plan: Ms. Labitan is providing analytical support for the City’s cost allocation plan.

Education
University of California,
Santa Barbara
Bachelor of Arts,
Mathematics
Areas of Expertise
Cost Allocation Plans
User Fee Studies
Benefit/Maintenance
Assessment Districts
Community Facilities
Districts
Local Improvement
Districts
8 Years’ Experience
Comprehensive User Fee Study and Cost Allocation Plan 8 City of California City, CA
Education
Bachelor of Science,
University of
Southern California
Areas of Expertise
Fiscal Analysis for
User Fees and Rates
Cost Allocation Plans
Acquisition Audit
Services
Statutory Financial
Reporting
Fund Audits
Quality Review of
Community
Facilities, Lighting &
Landscaping, and
Assessment Districts
Affiliations
California Society
of Municipal
Finance Officers
California Society
of CPAs
40 Years’ Experience
Robert Quaid
Technical Advisor
With his 40 years of extensive experience in public financing, Mr. Robert Quaid has been selected to provide quality assurance/quality control in the role of technical advisor. In his position as a Principal Consultant at Willdan, Mr. Quaid provides project management, procedural support, technical support, and quality review for Willdan’s District Administration group, as well as the Financial Services Consulting group specific to cost allocation plans, user fee studies, and special financial analysis.

Prior to joining Willdan, Mr. Quaid worked in the private industry of real estate accounting and finance.

He began his career with the public accounting firm formerly known as Haskins & Sells (currently known as “Deloitte & Touche”). His experience includes financial statement analyses, asset administration, computer conversion, and reporting to the Securities and Exchange Commission for several public real estate partnerships. In 1979, Mr. Quaid became a licensed California CPA.

Select Related Experience
City of Thousand Oaks, CA — Cost Allocation Plan: Mr. Quaid served as project manager for the development of an OMB compliant cost allocation plan model using fiscal year actual costs as the basis for the allocations. He was responsible for the preparation of the Cost Allocation Plan report and provided cost allocation model training to City staff.

The objective of this project was to determine the appropriate allocation of indirect costs from City General Fund central service departments to the General Fund operating departments/programs and the non-General Fund departments/programs. The plan model included 16 allocation bases allocating costs to over 100 departments and divisions. Both full and OMB cost allocation models were delivered to the City. Willdan was awarded a four-year contract.

Cities of Fontana, Gardena and Hawthorne, CA — Cost Allocation Plan Projects: For each of these cities, Mr. Quaid served in the role of task manager for the development of an OMB compliant cost allocation plan model using Microsoft Excel. He was responsible for the preparation of the cost allocation plan report and trained City staff on how to use the cost allocation model.

City of Cathedral City, CA — Comprehensive User Fee Study: Mr. Quaid served as project manager for a user fee study that required updating fees for Planning, Engineering, Building, Police, Fire, City Clerk, and Finance.

Mr. Quaid has provided Quality Assurance and Quality Control to multiple clients throughout California.

Provided below are a few examples of clients for which services have been provided in the previous five years.
▪ City of Arcadia, CA
▪ City of Belmont, CA
▪ City of Burbank, CA
▪ City of Cerritos, CA
▪ City of Chino Hills, CA
▪ City of Claremont, CA
▪ City of Coalinga, CA
▪ City of Fillmore, CA
▪ City of Hayward, CA
▪ City of Irvine, CA
▪ City of Indian Wells, CA
▪ City of Lynwood, CA
▪ City of Monterey, CA
▪ City of Murrieta, CA
▪ City of Petaluma, CA
▪ City of Richmond, CA
▪ City of St. Helena, CA
▪ County of San Benito, CA
▪ City of San Bruno, CA
▪ City of Salinas, CA
▪ City of Upland, CA
▪ City of Watsonville, CA
▪ City of West Hollywood, CA
▪ City of Yucaipa, CA
Comprehensive User Fee Study and Cost Allocation Plan 9 City of California City, CA

6. Primary Business
Willdan assists local public agencies by providing the following services:

Willdan Financial Services
Primary Services
▪ User fee studies
▪ Cost allocation plan studies
▪ Utility rate and cost of service studies
▪ Real estate economic analysis
▪ Municipal advisory services
▪ District administration services
▪ Property tax audits
▪ Economic development strategic plans
▪ Development impact fee establishment and analysis
▪ Tax increment finance district formation and
amendment
▪ Feasibility studies
▪ Housing development and implementation strategies
▪ Arbitrage and continuing disclosure services
▪ Debt issuance support
▪ Long-term financial plans and cash flow modeling

7. Engagement Office
The City of California City Full Cost Allocation Plan and User Fee Study engagement will be conducted from the Temecula office, Willdan Financial Services Division Headquarters.

Comprehensive User Fee Study and Cost Allocation Plan 10 City of California City, CA

8. Project Experience
Willdan Financial Services employs a team of professionals who provide essential financial consulting services throughout the United States. Our direct experience as “agency staff” provides us with firsthand understanding of City operations and is uniquely useful in determining the full effort associated with service delivery and in developing a fee schedule that is easy to communicate and implement.

Willdan has provided user fee study services to municipal clients for over 28 years; and has prepared user fee studies, cost allocation plans, and OMB compliant cost allocation plans for clients throughout California, as well as the United States. Willdan’s proven and successful track-record conducting user fee studies and cost allocation plan services for public agencies dates to 1998. Since that time, we have developed the expertise to successfully integrate this service into the Financial Consulting Services group’s primary functions.

Willdan has extensive experience with a range of fee studies and the typical pros, cons, and challenges, both in implementation and management. Willdan will bring its expertise to the City’s process of considering financial, practical, and policy issues in deciding on its future fee program. Our record of success within the industry provides assurance of the professionalism and capability we will bring to this engagement.

Unique Experience
Breadth of Directly Related Experience
Willdan is the leading firm in California providing services to complete Cost Allocation Plan and User Fee Study projects, and one of the leaders throughout the Country. We have completed hundreds of successful similar studies in California, including more than thirty (30) in the past two years alone, in addition to projects in Arizona, Colorado, Texas, and Florida.

Project Dedication and Team Consistency
Willdan has assembled a five-member project team from its Financial Consulting Services group—each a subject-matter expert who has worked together for at least seven years, with Mr. Fisher and Mr. Thrasher collaborating for thirteen years— to conduct the City of California City User Fee Study and Cost Allocation Plan. The group brings extensive public engagement experience; they have planned, led, and participated in numerous stakeholder and staff workshops, presenting methodologies and results, facilitating discussion, responding to technical and policy questions, and building consensus for defensible fee recommendations. Through regular peer review, iterative client coordination, and clear written and oral communication, the team ensures deliverables that are technically robust, practically implementable, and well-supported during public review.

Proven Professionals
The quality of the project team is as important as the firm's reputation. Willdan is recognized for delivering personalized, client-focused service, and our team will collaborate closely with City staff to ensure continuity and long-term support. We prioritize clear communication, timely responsiveness, and practical solutions tailored to the City's needs. Our goal is to provide durable, implementable recommendations and ongoing advisory assistance so the City can confidently manage fee schedules, adapt to changing conditions, and sustain sound fiscal practices over the long term.

Project Team Stability
Mr. Fisher has been assigned to serve as the City’s representative; he has been selected for this role due to his vast experience, which includes the preparation and supervision of numerous fee studies, as well as his experience presenting to governing bodies, stakeholders, and industry groups.

Community Investment
Much of our success in developing impactful programs and studies is due to our experiences in meeting with citizen / stakeholder groups and elected officials. Our ability to explain technical information in a concise, understandable manner is a fundamental reason for our high degree of success. Willdan staff takes the time to include and inform the Community.

It is important to note that
Mr. Fisher has been with Willdan
for 27 years, ensuring the City of
California City of continuity and
dedication in staffing during the
completion of the project.

Comprehensive User Fee Study and Cost Allocation Plan 11 City of California City, CA

9. Schedule of Work Plan
Project Understanding
Willdan Financial Services (“Willdan”) understands that the City of California City (“City”) is seeking a Comprehensive User Fee Study along with preparation of a full Cost Allocation Plan (CAP). The objectives of the study will be to review and evaluate the City's current user fees for services, calculate and analyze the full cost of service delivery, recommend adjustments to ensure appropriate cost recovery and prepare a Full Cost Allocation Plan.

The City aims to ensure its user fees and charges for services, as well as its internal cost allocations, are fair, equitable, transparent, and legally defensible. This study will establish a cost recovery model in accordance with applicable laws, including Proposition 26 and Proposition 218. The City seeks to develop a transparent, user-friendly fee structure and CAP that accurately reflects the true costs of service delivery, with a primary goal of producing actionable recommendations that ensure the City's fees are based on the full cost of providing each service, including direct, indirect, and overhead costs, maintain legal compliance and financial sustainability, are fair to both service users and taxpayers, and that the fee schedule and CAP align with California City’s operational realities and fiscal strategies.

Willdan will work collaboratively with City staff across affected departments and the City’s twenty (20) funds to review, update, and document the cost of providing services that are supported by user fees. This includes calculating the full (100%) cost of providing services for which user fees are charged, ensuring the City is accurately accounting for the true cost of service delivery by department, and developing recommendations for fee setting that reflect City policy objectives, including subsidy considerations.

The Cost Allocation Plan will provide a defensible and auditable basis for calculating and administering comprehensive overhead rates and support the User Fee Study by providing a clear and well-documented allocation of indirect and overhead costs associated with the provision of centralized support services to operating departments that provide direct services to end users. This approach ensures that the full cost of services calculated in the User Fee Study appropriately includes indirect and overhead cost components, consistent with industry standards and best practices.

We will evaluate the structure of fees and the methodologies used to calculate and apply total fee burdens to ensure that revenues collected reflect, but do not exceed, the aggregate cost of providing services. At the completion of the engagement, Willdan will provide the City with the financial models developed for both the Cost Allocation Plan and the User Fee Study to support ongoing maintenance and future updates.

Willdan has a clear understanding of the technical, operational, and policy considerations typically encountered in comprehensive user fee and cost allocation engagements, and the analytical approaches required to address them effectively in coordination with City staff.

Key City matters and objectives that are addressed within our scope of services include the following:
▪ Meeting with City Staff to review existing fee schedules, conduct interviews and gather information necessary to understand processes, operations, structure and staffing necessary for the City to provide services, as well as the methodologies and assumptions under which fees are calculated and charged to applicants; ▪ Conducting analysis that clearly identifies the total (100%) cost of providing services for which fees are charged, and ensuring that there is a reasonable relationship between these costs, the services being provided, and the recipients of these services – all to support compliance with Prop 26 and Prop 218; ▪ Developing a well-documented Full Cost Allocation Plan, which is flexible and able to accommodate changes in City structure, staffing and processes, and which allows for inflation adjustments; ▪ Comparing costs of providing services with current cost recovery levels and evaluating and adjusting fees and charges to ensure they align with the cost of the services being provided by the City; ▪ Identifying and evaluating opportunities to develop fees for activities or services being provided for which fees don’t currently exist;
▪ Working with City Staff to assist in developing policies and meaningful recommendations for fee setting and subsidies where charging fees that represent full cost recovery may not be reasonable for policy or political reasons; ▪ Providing meaningful ‘apples to apples’ comparisons of key fees charged by the City of California City to other similar and/or nearby cities chosen in discussions between Willdan and City Staff. The comparisons will involve applicable fees for sample representative projects which the City could anticipate encountering; ▪ Providing the City with models that incorporate data and information used in developing updated fees, and allow for increasing fees on a yearly basis, such as updates for CPI, new added personnel, updated time estimates and volumes, or other factors as necessary; and
Comprehensive User Fee Study and Cost Allocation Plan 12 City of California City, CA
▪ Preparing a report that provides strategic recommendations for cost recovery approaches and fee-setting practices, clearly describes the process and methodology by which fees were developed, identifies services for which fees are charged, the cost of those services, current and recommended cost recovery levels, and fee amounts, and presenting the results in a way that is readily understood by decision makers.

The end products will include user-friendly Excel-based models, which City staff will retain, and which can be easily updated to add or remove services and/or costs, update budgets in future years, determine the proper allocation of expenditures, and on-going full cost of services provided by the City. Most importantly, we will ensure that the results and recommendations are clear and understandable, defensible, and easily implementable.

We will meet directly with departmental representatives at the City at the beginning of the project, to discuss the approach and process for the studies. Discussions will include ways to combine tasks and efforts among the cost allocation plan and user fee study components to maximize efficiencies and ensure adherence to specified timelines.

The completion of a CAP is a key component and first step in the analysis necessary to calculate the cost of providing services. A well thought out CAP ensures that indirect costs associated with central overhead services, such as finance, human resources, or City Clerk, are appropriately allocated to operating departments, and ultimately included as a cost component of fees for services. We will work collaboratively with City staff to identify the overhead support services that are provided to operating departments in the City and develop a fair and defensible means of allocating these costs.

For the Comprehensive User Fee Study, we will work directly with personnel at the City who provide services and interact directly with residents and customers, to understand the personnel and procedures involved. By carefully examining these processes, we will be able to identify associated costs such as direct staff costs (salaries and benefits) associated with personnel involved in the activities, and appropriate overhead allocations from both the department and City levels.

For a successful and effective engagement, it is important to have a thorough understanding of specific City policies and objectives, the structure and organization of the City, and the relationships between the central and operating departments.

We bring years of successful experience working directly with hundreds of cities throughout California.

Willdan possesses the resources, practical experience, creative thinking, and collaborative consulting skills necessary to complete this important project. Key distinct advantages that Willdan brings to the City include the following:

On-site Data Gathering
Our experience has taught us that working together, via face-to-face discussions, is the most efficient and thorough way to ensure that results are accurate, and that studies are completed in a timely manner, which again, is critical in this proposed engagement.

Consequently, through on-site interviews with your staff, Willdan will collect the majority of required data for studies. This method is better than the typical “time and motion surveys” that are provided to agency staff when studies like these are conducted. This process ensures that we gather the data we need in one coordinated step, rather than having to go through repeated follow-up and clarification.

This approach and the dedication of our staff will help ensure we meet the City’s timeline and objectives and provide important information to City staff and the Council as soon as possible.

Public Engagement
Our models and project approach are geared toward delivering our work on schedule and presenting our analysis results at public meetings and Council workshops. While we understand that the City Council and local business community may be generally supportive of increasing fees where necessary, it will be important to present recommendations to them in a way that clearly demonstrates the rationale and supporting analysis.

The Willdan Team is experienced at communicating complex analytical results in a manner that is easy to understand by non-finance-oriented individuals and facilitates discussion. Our proposed principal-in-charge for this engagement has coordinated or participated in numerous public and staff workshops regarding fees and cost of service-based charges.

As previously mentioned, our objective is to provide useful, detailed information, and present recommendations to the City Council and public in a way that clearly demonstrates the rationale and supporting analysis. Our experience ensures that we can meet this objective.

Rather than a costly and inflexible proprietary
software, which can require expensive licensing
fees, Willdan builds models utilizing Excel, from
the ground up, employing the City’s budget as
the gauge. This model, which is then the City’s
to retain, gives City staff the control to make onthe-fly adjustments and updates.

Comprehensive User Fee Study and Cost Allocation Plan 13 City of California City, CA
User-friendly Models and Reports
Willdan prides itself on creating user-friendly Excel-based models that the City can retain and conducting our analysis and developing the models collaboratively with City staff. With City staff’s immediate input and collaboration, Willdan will design extremely flexible, intuitive Excel-based models. In the future, as the City assumes new responsibilities, modifies existing processes, and/or eliminates unnecessary services or programs, the models will be capable of adding or deleting funds, objects, departments, programs, staff positions, and activities.

Willdan understands that issues facing the City are unique; consequently, we design our models to match your immediate and desired needs to ensure that end-results exceed staff expectations rather than using an inflexible proprietary software.

These models are then the City’s to retain, after our services are completed, and allows for the creation of revenue projections, highlighting potential new revenues, and levels of subsidy.

A key element of these studies is presenting results and recommendations in a straightforward manner, which allows Council and staff to confidently make fee setting policy decisions and understand the impacts of those decisions. Rather than using an inflexible proprietary software program, we construct our models from the ground up, as previously discussed, mirroring the City’s budget format wherever possible. As a result, the information contained in our models are easy for City staff to interpret, and the familiar software ensures ease of navigation.

As the models are being designed and constructed, we will work together with City staff to determine the best and most effective features to include.

After the project is completed, we will provide training, so that staff can independently and efficiently evaluate the effects of changes in certain factors. Created directly from the models, our reports clearly and graphically illustrate the full cost recovery level of fee programs and provide projections of revenue from fee programs.

Project Methodologies
The following describes our proposed approach, and work plan to prepare a Comprehensive User Fee Study and Cost Allocation Plan.

Cost Allocation Plan Methodology
The purpose of this cost allocation plan engagement is to ensure that the City of California City is maximizing the recovery of indirect costs from identified operating departments, as well as enterprise and other chargeable funds and capital projects. Furthermore, a sound cost allocation plan is a foundational element of a user fee study, ensuring that the full cost of providing services that is calculated for setting fees includes provision for internal overhead support.

The Cost Allocation Plan is also integral in the development of internal hourly rates, including CIP billing rates.

We will work closely with staff in identifying the proper balance of allocation factors appropriate for the City.

To achieve the maximum cost recovery objective, the City must have a method of identifying and distributing administrative costs that is fair, comprehensive, well documented, and fully defensible. A cost allocation plan coupled with comprehensive overhead rates will enable the City to achieve this goal.

The allocation models utilize an iterative method which is the most accurate allocation methodology. Unlike a direct or “step-down” methodology, an iterative method uses the chosen distribution bases and allocates central service costs iteratively until all allocable costs have been distributed. Using this method, the model can detail the allocation for each central function individually for complete transparency and accountability, while removing bias that might result from the order in which allocations occur in a step-down approach.

A direct methodology is essentially a one-iteration methodology, while a step-down method is typically only two iterations and is less precise and unable to accurately track the allocations from start to finish.

Approach for Managing the Project
Willdan’s “hands-on” supervision of Cost Allocation Plan studies, include the following methods:
▪ Effective Project Management — Principal-in-Charge Chris Fisher will manage the entire project with an eye toward high responsiveness, while ensuring that all stakeholders are “on board” with the direction of the project, as well as with the final results. Mr. Fisher will ensure that regular status updates are provided to City staff, conference calls are scheduled, and that in-person meetings are conducted (as necessary). ▪ Adherence to Time Schedule — Willdan recognizes that the use of “timelines” is highly effective in meeting all required deadlines. To keep the project on schedule, there are several tasks that must be completed in a timely manner.

Therefore, we will present a project timeline at the kick-off meeting that should be closely followed.

The model will be developed
to allow the City to run “whatif” scenarios to address possible changes in staffing
levels, working hours, etc.

Comprehensive User Fee Study and Cost Allocation Plan 14 City of California City, CA
Although the establishment of an experienced project team and a detailed project timeline work extremely well in general, Willdan understands that outside influences can create uncontainable situations for everyone involved in the project. In rare circumstances like these, our team quickly adapts to changes and communicates our recommended schedule adjustments to the City.

Approach in Communicating with the City
Willdan staff is accustomed to interfacing with local government councils, boards, staff, community organizations, and the public in general in a friendly and helpful manner; we are always mindful that we represent the public agency. We are sensitive to the need of delivering a quality product, with the highest level of service and professionalism.

Therefore, as the work on the project progresses, we understand that it will be necessary for our staff to work closely with you and City personnel. To accomplish this, we employ a variety of tools, including monitoring project status and budget costs; and ensuring effective communication through several options that are based on the City’s preferences.

Experience with Development Service Processes
A unique aspect of our firm is our relationship with our Engineering Division. For many agencies throughout California and other Western states, this division provides contracted services in planning, engineering, and building and safety. When conducting cost recovery studies, we regularly consult with our engineering and land-development staff of experts on development-related issues. By working with our planners, engineers, and building officials, we understand developmentrelated agency service procedures and workflow functions, which often make the entire user fee study process smoother for your staff.

Comprehensive User Fee Study Methodology
To comprehensively update fees, the City should develop a comprehensive user fee schedule that accurately accounts for the true cost of providing services. Once the study is complete, the fee study model must be flexible so that the City can add, delete, and revise fees in the future. To meet this goal, we will bring our expertise and unique perspectives to your fee study by approaching the project with these three principles:
1) Defensibility
Our user fee projects have not been legally challenged since the inception of this practice area in our firm. We have accomplished this by closely working with legal counsel familiar with user fee studies, our engineering division and with agency staff. In this way, we can tailor the correct approach to ensure full cost recovery combined with a sound and reasonable basis for each user fee you implement.

While Proposition 218 does not directly apply to non-property-related fees, we employ principles from this important constitutional article to make certain that your user fee schedule is developed with fairness, equity, and proportionate cost recovery principles in mind. With the addition of Proposition 26, Willdan will review each analyzed user fee for compliance and appropriateness to ensure continued defensibility.
2) Project and Staff Time
The City must have a sound and technically defensible fee schedule to ensure costs are appropriately recovered, as applicants approach the City for its services. Our standards and approaches serve to get to the issues of your fee study quickly.

Starting with the project kick-off, we will make certain that your staff understands the purpose and scope of the study and its corresponding on-site departmental interview. As Willdan is able to communicate directly with the service providers, this face-to-face interaction provides valuable time estimates. 3) Responsiveness
We take great pride in providing responsive service to our client agencies. Frequent communication is critical to a successful user fee study experience. We will provide a list of data requirements in advance of the project kick-off. Due to this simple step, the introductory meeting can focus on the survey input process, answering questions, determining policy goals, and defining next steps in the project. We will follow up weekly with you at each step in the fee study process to make sure that staff “buys in” to the fee study approach and results.

Comprehensive User Fee Study and Cost Allocation Plan 15 City of California City, CA
Comprehensive User Fee Study Approach
Our approach to preparing the user fee study and documentation for California City includes:
▪ Close coordination with your staff to devise a consensus approach. Different programs and/or different service delivery methods will necessitate different approaches.

We will discuss specific pros and cons with City staff as we determine which methods work best for each fee category; ▪ Strict adherence to key legal and policy issues with regard to user fees, including the percent of cost recovery that the City seeks to achieve. A user fee shall not be set higher than the reasonable cost of providing a fee-generating service.

Our approach provides you with a fee schedule that achieves maximum legal cost recovery while ensuring that each fee is supported by technically defensible documentation; and ▪ Technical analysis necessary to ensure State compliance, and to anticipate and resolve potential policy issues using a combination of industry standards as well as City specific methods.

As described below, there are two basic approaches to calculating user fees:

Approach 1: Case Study Method
This is also sometimes referred to as a cost build-up approach. Using a time and materials approach, the “Case Study Method” examines the tasks, steps and City staff involved in providing a particular ‘unit’ of service, such as a permit review, and then uses that information to develop estimates of the actual labor and material costs associated with providing a unit of service to a single user. It is often used when a service is provided on a regular basis, and staff and other costs associated with the service can be segregated from available budget data.

A typical case study fee model should comprise the following three general cost layers:
1) Central Services Overhead: This category may involve such costs as labor, services, and supplies that benefit more than one department, division, or project. The exact benefits to specific areas are impossible to ascribe to a single activity. Examples are purchasing, human resources, and liability insurance. As part of the user fee study, these costs are calculated in the overhead cost review.
2) Department Overhead: This category may include
expenses related to such items as office supplies, outside consultants, and membership dues. It may include
management, supervision, and administrative support that are not provided to a direct fee-generating service.

Typically, these items are charged, on an item-by-item
basis, directly to the department, division, or project. 3) Personnel Costs: This category refers to direct salary and benefit costs of staff hours spent on providing a feegenerating service (e.g., on-site building inspector).

Approach 2: Average Cost Method
This is also sometimes referred to as a programmatic
approach, because it looks at costs at a program level, and then allocates them to participants on an occurrence basis.

By taking total service costs across a substantial sample period (a year) and dividing by the total number of service units delivered over that same period, costs per unit of service is estimated. This approach is useful when services or programs are provided in a more aggregate manner,
where it might be difficult to identify a specific sequence of steps associated with one user or participant; or where it is not feasible to cost-effectively segregate costs associated with specific activities.

Comprehensive User Fee Study and Cost Allocation Plan 16 City of California City, CA
Work Plan
Our proposed work plans, described in detail by task, are provided below. We will maximize efficiency and costeffectiveness by combining meetings and data gathering efforts between the user fee study and cost allocation plan wherever possible. We explain how each task will be accomplished and identify associated meetings and deliverables. We will work in concert with the City to adjust scopes as needed during the course of the studies.

Cost Allocation Plan
Task 1: Initial Document Request
Objective: Initial due diligence.

Description: Prior to the kick-off call, relevant documentation will be obtained and reviewed in order to enhance our understanding of the City’s current cost allocation plan and internal structure of the agency. A written request for specific data will be sent to the City. The data provided in this task will provide the building blocks for later model development.

Our request may include (but is not limited to):
▪ Detailed budget and accounting data;
▪ Prior year’s financial data, salary, position, and staffing data; ▪ Organizational structure;
▪ Existing Cost Allocation Plan or methodologies, fee schedules, and other related data; ▪ Datasets related to work/activity levels and volume;
▪ Any adjustments or changes in the existing cost allocation plan and/or user fee documentation and models; and
▪ Data related to various allocation bases that may be incorporated as part of the methodology, i.e., City Council agenda frequencies by department, AP/AR transactions by department, IT equipment distribution by department, etc.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 2, Kick-off Call/Refine Scope). We will follow up with the City to confirm in writing the data that we have received or which is still outstanding.

Task 2: Kick-off / Confirm Project Strategy, Objectives and Timeline / Refine Scope Objective: Confirm and refine project objectives and develop overall project strategy and timeline to ensure the goals are addressed. Identify and discuss policy considerations related to the study and determine appropriate fee categories.

Description: Willdan will meet with City staff to review the approach and objectives, and where necessary, work with staff to refine the scope, timeline and deliverables. Following this discussion, we will provide a written work plan and timeline with key deliverables and milestones.

We will identify and discuss policy matters typically associated with these studies and address data gaps in order to gain a full understanding of the City’s goals for the cost allocation plan.

We will establish effective lines of communication and processes for information gathering and review, and conduct discussions with City staff to verify the scope, purposes, and objectives for the CAP.

During this call, we will ask that the City assign a project manager to serve as its primary contact. The selected City project manager will ensure that available data is provided to Willdan in a timely manner, thereby maintaining adherence to the project’s schedule.

We will review the current cost allocation methodology and discuss with City staff to determine specific areas of focus as they relate to the City’s objectives, discuss and evaluate current and potential allocation factors, and identify specific questions or areas of concern with the current CAP.

Meetings: One (1) project kick-off call/online meeting to initiate the project, discuss data needs and methodologies, and to address policy matters.

Deliverables: Willdan: If needed, a revised project scope and schedule.

City: Provide further data requirements and select/introduce City’s project manager.

Comprehensive User Fee Study and Cost Allocation Plan 17 City of California City, CA
Task 3: Gather Staffing Information and Develop Cost Allocation Plan Model Description: This task involves the gathering of specific information, directly from City staff, through interviews and discussion, related to the functions served by indirect staff and the departments served by their activities.

This task also focuses on identifying cost centers and the development of, and/or adjustment of existing, allocation bases, and the development and testing of a model that will ultimately be used to calculate the proper cost allocations derived from data gathered in prior tasks. The updated model will take into account necessary updates to cost categories, allocation bases or other elements of the methodology to address necessary adjustments from the current methodology.

The model will be developed to incorporate any recent changes in the provision of City services, ensure cost pools reflect organizational structure, identify the total cost of providing indirect overhead support services, fully allocate central service costs to operating groups, and will include provision for appropriate inflationary adjustments going forward.

The model will include flexibility to add or delete costs/cost layers and support service and/or operating groups as changes occur and also the ability to adjust the model and the results annually for inflation, salary, and benefit increases, as well as contract rates.

We will utilize budget and organizational information, and other required information gathered from City staff to complete the work in this task. Specific discussions will be held to discuss allocation bases, services provided by indirect groups, how central overhead services are provided to and utilized by other departments, cost categories and allocation criteria, and how these will factor into the overall cost allocation methodology.

The model and methodology will produce indirect cost rates and overhead percentages which support the development of fully burdened hourly City staff rates. These hourly rates can be used for a variety of purposes including incorporation into the User Fee Study’s fully burdened personnel rates, billing to Capital Improvement projects work orders, recovery of costs for services provided to City customers working with various City departments.

Meetings: Online meetings with staff to understand structure and operations as model and allocation bases are developed. Key staff will be interviewed to best understand central overhead staffing and functions and the departments served.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format that provides a full cost allocation plan.

Task 4: Test and Review Cost Allocation Methodology
Objective: Test and review model and results with City.

Description: The draft cost allocation plan model will be reviewed with City staff, and adjusted as necessary, to ensure that preliminary allocations provide an accurate depiction of how the central overhead costs should be borne by the operating programs and funds. Over the past several years, we have successfully integrated online meetings by using WebEx™ as an element to our approach.

This allows us to remotely guide staff through the model review and allows you the opportunity to interactively change inputs and test approaches.

Meetings: One (1) online meeting and demonstration with City staff to review the model.

Deliverables: Willdan and City: Draft cost allocation plan model review.

Task 5: Prepare and Present Draft Report
Objective: Prepare the draft cost allocation report.

Description: This task involves the draft report preparation. The cost allocation plan’s background, model methodologies, and results will be discussed; calculations and supporting data will be presented textually and in easily understood tables and provided to the City.

Meetings: One (1) online meeting to present draft report to City staff to review the methodology, approach and results.

Deliverables: Willdan: Draft report for City review and input.

City: Review of draft report, with comments, and edits.

Comprehensive User Fee Study and Cost Allocation Plan 18 City of California City, CA
Task 6: Discuss and Revise Report
Objective: Review of draft report, cost distribution methods, and model.

Description: An in-depth review of the draft report and model will be conducted to arrive at an optimum allocation method for each expenditure type.

Often, through the course of an engagement, comments usually revolve around issues of understandability; appropriate levels of enterprise funds’ cost recovery, etc.; ease of calculation; and overhead costs’ distribution methods.

Following a round of comments from City staff concerning the draft report, the final report will be prepared for presentation to the City Finance Management Sub-Committee, and if necessary, to the City Council.

Meetings: One (1) conference call with City staff to review the report with changes and revisions and one (1) virtual meeting with the City Finance Management Sub-Committee to review results.

Deliverables: Draft report, and revised draft/final report.

Task 7: Prepare and Present Final Report and Model
Objective: Prepare and present the final report to the City Finance Management Sub-Committee and City Council.

Educate City staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the cost allocation plan project. Based on staff comments on the draft report, Willdan will prepare the final report for presentation to City Council.

Meetings: One (1) virtual meeting with the City Finance Management Sub-Committee, and one (1) meeting with the City Council to present the final plan if necessary. The City Council meeting would be held in conjunction with the presentation of the user fee study results.

We will also provide staff training on the operation and use of the model, and consult with the City as needed to respond to challenges or questions related to the CAP.

Deliverables: Willdan: Provide one (1) electronic PDF file copy of the final report and model. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will be provided.

Comprehensive User Fee Study
Task 1: Initial Document Request
Objective: Initial due diligence; obtain study-related data.

Description: Prior to the kick-off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is not part of this request and will be gathered during the on-site interviews described in Task 5.

We will request information and documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already collected in the Cost Allocation Plan) related specifically to programs and activities which have associated fees, and for which the City has this level of detail.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). As with the cost allocation plan, we will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.

Task 2: Compile Inventory of Current and Potential Fees, Document Current Practices Objective: Willdan will identify a schedule of fees and methodology for calculating the fees.

Description: Based on the results of the initial document request, incorporate into our model the existing fees provided by the City, to comprise the parameters of the fee study.

We will examine, assess and document current fee-setting practices, cost recovery policies and goals and practices. During this process we will identify and discuss with staff opportunities for enhancements or improvements to fee-related activities and approaches.

Meetings: If data is available at the start of the project, a conference call with the City to discuss new fees to implement or existing fees that may no longer be required, otherwise such discussions will take place in Task 5.

Comprehensive User Fee Study and Cost Allocation Plan 19 City of California City, CA
Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed during the kick-off call).

City: Review initial fee schedule with comments/revisions to be discussed during the kick-off meeting.

Task 3: Kick-off Conference Call / Refine Scope
Objective: Confirm goals and objectives for the Comprehensive User Fee Study and finalize project approach and timeline based on these discussions. Identify and discuss policy considerations typically associated with a User Fee Study, for instance cost recovery/subsidy policies, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2).

Description: Verify our understanding of the City’s goals, the City’s cost-recovery policy for user fees, and to fill any gaps in data/information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.

During this call, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project’s schedule.

We will discuss potential new fees for services provided, for which fees do not currently exist, and assess gaps in the current fee structure.

Meetings: One (1) project kick-off call to initiate the User Fee Study portion of the project, discuss data needs, and address policy objectives.

Deliverables: Willdan: 1) Revised project scope and schedule (if needed); and 2) brief summary of policy decisions (if needed).

City: 1) Provide further data needs; and 2) determine/introduce City’s project manager.

Task 4: Develop User Fee Model
Objective: Develop and test model.

Description: This task involves the development of the model ultimately used to calculate the departmental fees, based on data and information gathered in previous tasks and in the Time Survey Interviews.

Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on salaries and benefits.

Any relevant data obtained during the cost allocation plan phase of this project will be incorporated directly into the user fee model. We will request clarification and/or additional data if necessary.

The model will build upon the cost allocation plan results, to provide an allocation of administrative and overhead costs to fee related activities and departments providing services to customers, so that fees and billable rate schedules incorporate applicable costs.

Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council.

Task 5: Staff Interviews and On-site Information Gathering Objective: Meet with City staff to conduct interviews and discussions necessary to understand staffing, processes and levels of effort associated with service delivery processes.

Description: We will schedule up to one (1) business day of meetings with staff; however, the number of meetings needed may vary depending on the number of staff and departments involved.

The Willdan Team will conduct interviews with representatives from each department involved in the user fee study to determine the average time required by City staff to provide each of the services for which a fee is collected to ensure that City services are not impacted by the information gathering process of the study.

The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels.

This will allow Willdan and City staff to conclude with a final meeting to review the draft full cost recovery fees and adjust any times as necessary once all information has been compiled and input into the fee model. We will schedule the interviews with staff to minimize any disruption to their normal workflow.

Comprehensive User Fee Study and Cost Allocation Plan 20 City of California City, CA
Meetings: Up to one (1) business day of meetings/staff interviews. These may be either in person, or virtual using Zoom or WebEx, or a combination depending on City Staff availability.

We have received feedback that many cities find virtual meetings to be more efficient as they allow for more flexible scheduling and more focused conversation. We will discuss options with City Staff and proceed accordingly.

Over the past five years we have used these tools very successfully and found them to be highly effective and efficient, particularly for follow-up questions and/or discussions.

Deliverables: Willdan and City: Time surveys and draft full cost recovery fees.

Task 6: Data Analysis and Final User Fee Schedule
Objective: Incorporate information obtained from interviews and surveys to fully develop model.

Description: We will update the model, based on information received during the surveys and interviews with City Staff, to generate a comprehensive user fee schedule. In addition, it is very common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting.

Based on guidance provided in the City’s RFP, we will prioritize the review and update of the County Building Inspection Fee to address needs related to a pending legal settlement.

Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs (i.e., building fees) and suggest potential areas where fees could be collected where they are not currently.

We will identify units of service for fee-related activities to calculate the total cost of providing each City service for which fees may be charged and present the full cost recovery level, both current and projected under the new fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees.

Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee programs for compliance with Propositions 218 and 26.

In developing the fee schedules for each division, we will make recommendations for adjustments where fees are not recovering appropriate levels of cost, or are not consistent with City policy objectives, and suggest new fees where appropriate, based on our experience with other cities. Some areas for new fees may be due to changes in law (legalized cannabis), or for activities that the City finds itself performing regularly, but for which no fee is collected.

We will review the fee calculation process, and how ultimate fee burdens for new development projects are calculated, when all plan review and permit fees are included, to ensure the amounts are appropriate and reflect the costs necessary for the City to provide the services for which the fees are charged. Where feasible, we will clarify the fee methodologies, and document those in the report and schedule, to provide guidance for City Staff.

The user fee data analysis and model development may take four (4) to eight (8) weeks with frequent correspondence with City staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity. Where needed, we will provide recommendations for multi-year phase-in of adjustments, to smooth the impact of significant changes. We will also provide guidance for implementation of escalators or CPI or other adjustments to ensure fees remain consistent with costs as they change.

Meetings: Virtual meetings, as necessary, to gather additional input, complete analysis and finalize the fee schedule.

Deliverables: Final user fee model for City Council presentation and discussion.

Task 7: Common Fees Comparison
Objective: Examine selected user fees charged by up to five (5) comparable cities in Kern County or other jurisdictions that are close in proximity or similar to the City of California City.

Description: We will request that City project management select, or we can access and use our knowledge of other jurisdictions to benchmark the City’s ten (10) most common visible fees, highest yielding fees, or a specific selection of fees with comparable jurisdictions.

Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs. For this reason, any fee comparisons should be made based on more well known and comparable fees that are typical between jurisdictions.

Comprehensive User Fee Study and Cost Allocation Plan 21 City of California City, CA
The survey will contain the following, a comparison of fees and charges used by the City and other jurisdictions, and if possible, identify characteristics and processes unique to the City that may account for significant variances in fees and charges used by other jurisdictions.

Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.

Task 8: Prepare and Present Draft Report
Objective: Prepare draft report.

Description: This task involves the preparation of the draft report that discusses the study’s background, the methodologies utilized in the study, and the results and presentation to various stakeholder groups.

As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy to understand tables. Individual fee summaries by department and a comprehensive fee schedule will be included.

The draft report will include the following:
▪ Key results and findings;
▪ Description of the methodology and process by which fees were developed, assumptions, and the procedure for assigning and calculating fees;
▪ Fee schedules for each department included in the study, with current and recommended fees at full and recommended cost recovery levels, including previous cost recovery levels, fee volumes and percentage changes in fees from previous;
▪ Strategic recommendations for ongoing fee-setting practices, cost recovery policies and targets; ▪ Basic descriptions of each service;
▪ The full cost of each service at lowest reasonable activity level and current cost recovery levels; ▪ Costs broken down graphically into indirect (overhead) and direct components, with a graphic display of the level of cost recovery;
▪ Suggested approaches for increasing fees annually, including adjusting for appropriate indices, including CPI;
▪ Projections of potential fee revenue;
▪ Fee comparisons completed in Task 7; and
▪ Summary and recommendations.

The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.

Meetings: One (1) conference call with City staff and management, to present draft results address questions and receive feedback and present and review the draft results.

Deliverables: Willdan: Draft report for City review and comment.

City: Review of draft report, with comments and edits.

Task 9: Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review of draft report and fee model.

Description: The goal of this task is to conduct an in-depth review of the draft report and incorporate feedback and changes that City departments and Management may have as a result of that review.

Often through the course of reviewing the report with Cities that we work with, staff will volunteer insightful likes and dislikes regarding the content and format of the report, so that we can make modifications in order to properly convey the purpose, methodology, and results of the study. The recommended fee levels and cost recovery for services that resulted from Task 6 are also reviewed in the context of the report to ensure that the below matters are consistent with City policies and goals. ▪ Understandability;
▪ Fairness to applicants;
▪ Ease of calculation;
▪ Appropriate levels of cost recovery; and
▪ Full cost recovery hourly rates.

Comprehensive User Fee Study and Cost Allocation Plan 22 City of California City, CA
When adjusting fee recovery levels, we believe it is important to address these concerns.

Following one (1) round of comments and feedback from City staff and management on the draft report, we will prepare the final report for presentation to the City Finance Management Sub-Committee and the City Council.

Meetings: One (1) virtual demonstration (WebEx) with Staff to review the report and model, with any revisions, and if necessary, one (1) virtual meeting to present and review the results with the City Finance Management Sub-Committee.

Deliverables: Draft report, revised draft /final report.

Task 10: Prepare and Present Final Report/Provide Model and Instruction to City Staff/Support Objective: Prepare and present final report to City Council. Instruct staff on the operation and use of the model for future modifications. Provide support for implementation and engagement with the public and or key stakeholders.

Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation, and provide the fee model to City Staff, with instruction for its use.

The model will be developed to facilitate updates to fees, additions or removals of service areas or fees, adjustments to inputs such as cost components or staffing structures, incorporation of cost escalators, and new fee calculations based on changes to inputs and/or assumptions.

We will provide guidance and support for engagement with elected officials, key stakeholders and the public as needed.

Meetings: As requested, up to one (1) virtual meeting each with the City Finance Management Sub-Committee and one (1) meeting with the City Council to present the results and adopt the updated fee schedule. We will address question and provide explanation and background where needed to help the Council and public understand the process and the recommendations. We are also available to review fee-setting resolutions, ordinances and/or staff reports.

We will also provide staff training on the operation and use of the model. If in person training is requested, we would provide the training on the same day of the meeting, during regular business hours.

We will provide post-adoption support for up to six months to ensure a smooth integration of the results.

Deliverables: Provide one (1) electronic PDF file copy of the final report and models. Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided.

City Staff Support
To complete our tasks, we will need the cooperation of City staff. We suggest that the City of Mission Viejo assign a key individual to represent the City as the project manager who can function as our primary contact. Willdan will endeavor to minimize the impact on City staff in the completion of this project. We anticipate that the City’s project manager will:
1) Coordinate responses to requests for information;
2) Coordinate review of work products; and
3) Help resolve policy issues.

We will ask for responses to initial information requests in a timely manner. If there are delays on the part of the City, we will contact the City’s project manager to steer the project back on track. We will keep the City’s project manager informed of data or feedback we need to keep the project on schedule.

Willdan will rely on the validity and accuracy of the City’s data and documentation to complete our analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy, and that Willdan will not be responsible for any errors that result from inaccurate data provided by the client.

Comprehensive User Fee Study and Cost Allocation Plan 23 City of California City, CA
Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such the City of California City represents, acknowledges, and agrees that Willdan is not acting as a “municipal advisor” (as defined by the SEC), to City, in any capacity as it relates to the project proposed in this Comprehensive User Fee Study and Cost Allocation Plan.
(i) The City uses, or may use, the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

Comprehensive User Fee Study and Cost Allocation Plan 24 City of California City, CA
Schedule
Willdan understands time is of the essence for the City of California City to begin this engagement. The schedules can only be met with the cooperation of City staff. Delays in responding to our requests for data and review will result in corresponding delays to the project schedule. If that is the case, we will notify the City immediately of the possible impact on the schedule.

Cost Allocation Plan
Comprehensive User Fee Study
Scope of Services 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 27 31 Task 1: Initial Document Request z1
Task 2: Kick-off / Refine Scope (conference call) z2
Task 3: Gather Staffing Information and Develop Model (meeting) z3 Task 4: Test and Review Cost Allocation Methodology (conference call) z4 Task 5: Prepare and Present Draft Report (meeting) z5
Task 6: Discuss and Revise Report (conference call)
Task 7: Prepare and Present Final Report/Train Staff on Model (meeting) z7 Deliverables:
z1: Information Request z5: Draft Report
z2: Revised Project Scope and Schedule (if needed) z6: Revised Draft Report/Final Report z3: User-friendly Model in Microsoft Excel z7: Final Report – Hard and Electronic Copies z4: Draft Cost Allocation Plan Model Review
City of California City
Cost Allocation Plan
Project Schedule
May June July August Scope of Services 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 Task 1: Initial Document Request z1
Task 2: Compile Inventory of Current and Potential Fees Task 3: Kick-off / Refine Scope (web meeting/conference call) Task 4: Develop User Fee Model z4
Task 5: Staff Interviews and Information Gathering (web meetings) z5 Task 6: Data Analysis and Final User Fee Schedule (Web mtgs/conf calls) z6 Task 7: Common Fees Comparison z7
Task 8: Prepare and Present Draft Report (conference call) z8 Task 9: Revise Draft Report/Determine Cost Recovery Levels (conference call) z9 Task 10: Prepare and Present Final Report/Instruct Staff on Model (web meeting) z10 Deliverables:
z1: Information Request z6: Draft Fee and Rate Model Review z2: Draft List of Current Fees z7: Common Fee Comparison z3: Revised Project Scope and Schedule (if needed) z8: Draft Report z4: User-friendly Model in Microsoft Excel z9: Revised Draft Report/Final Report z5: Time Surveys and Draft Full Cost Recovery Fees z10: Final Report – Hard and Electronic Copies City of California City
Comprehensive User Fee Study
Project Schedule
May June July August September October November
Comprehensive User Fee Study and Cost Allocation Plan 25 City of California City, CA
Quality Control
Provided below is the firm’s project management approach to producing the required product in a timely fashion.

Project Management Approach
At Willdan, we utilize a Project Management Process/Approach that ensures projects are completed on time, within budget and most importantly yield results that match our clients’ expectations. We will document discussions leading to important policy decisions and/or the choice of critical assumptions used in constructing the analysis and model.

Following key stakeholder discussions, we will schedule a call to summarize findings and direction with City staff, to make certain that we are in agreement with stated objectives, and that feedback is incorporated as appropriate.

Project Management
Define the
Project Plan the Project Manage the Project
Review the
Project
Communicate
the Project
▪ Identify the project
scope, set
objectives, list
potential
constraints,
document
assumptions.
▪ Define a course of
action and develop
an effective
communication
plan.
▪ Provide a forum
for applying the
team’s collective
expertise to
solving difficult
analytical issues
that arise in
complex projects.
▪ Collaborate with
the project team
and client staff and
agree upon
timeline to meet the
estimated project
timeline.
▪ Assign workload
functions to
appropriately
qualified staff to
ensure milestones
are met, on time.
▪ Pre-schedule
quality control
meetings with
project team to
maintain the
progressive motion
of the project.
▪ Manage the
execution of the
project.
▪ Direct existing
and upcoming
project tasks.
▪ Control and
monitor work in
progress.
▪ Provide feedback
to client and
project team.
▪ Identify and
resolve deviances
from project
timeline.
▪ Review all work
product and
deliverables.
▪ Utilize structured
quality assurance
process involving
up to three levels
of review at the
peer level,
project manager
level.
▪ Procure
executive officer
level review.
▪ Communicate
with the client
regarding work
status and
progress.
▪ Ensure client is in
receipt of regular
status updates.
▪ Schedule regular
conference calls
to touch base.
▪ Inform client of
roadblocks, work
outside of
projected scope.

Through the process of providing
regular updates and conducting
status conference calls, potential
issues will be highlighted, discussed,
and resolved. Any deviances from
the project timeline will be identified
and plans will be developed for
course corrections.

Comprehensive User Fee Study and Cost Allocation Plan 26 City of California City, CA
Quality Assurance / Quality Control Process
Our quality control program is incorporated as a required element of Willdan’s day-to-day activities. There are three levels of reviews incorporated for our deliverables:
1) Peer review;
2) Project Manager review; and
3) Final quality assurance manager
review.

Peer reviews involve one analyst
reviewing the work of another, while
project manager reviews are conducted
prior to delivery to the quality assurance
manager. The quality assurance manager
then performs a final review. This assures
that our final product has been thoroughly
evaluated for potential errors; thus,
providing quality client deliverables, and
high levels of integrity and outcomes.

The primary mission of our quality control plan is to provide staff with the technical and managerial expertise to plan, organize, implement, and control the overall quality effort, thereby ensuring the completion of a quality project within the time and budget established.

Quality Assurance Goals
Goal Lead Task
Quality Assurance /
Control Process Chris Fisher
▪ Establish a set of planned and systematic actions for maintaining a high level of quality in the professional services performed; ▪ Emphasize quality in every phase of work;
▪ Ensure efficient use of resources;
▪ Establish a consistent and uniform approach to the services performed; and
▪ Implement appropriate quality control measures for each work task of the project.

Quality Control Plan
Chris Fisher,
Tony Thrasher,
& Robert Quaid
▪ Contract deliverables;
▪ Specific quality control procedures;
▪ Special quality control emphasis;
▪ Budget and manpower requirements;
▪ Overall project schedule and budget; and
▪ Project documentation requirements.

Comprehensive User Fee Study and Cost Allocation Plan 27 City of California City, CA

10. References
Below are recent project descriptions, including client contact information, which are similar in nature to those requested by the City of California City engagement.

City of Petaluma, CA
Cost Allocation Plan and OMB Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rates Willdan provided an Overhead Cost Allocation Plan and OMB Plan, User Fee Study, CIP Rate Analysis, and Hourly Overhead Rates to the City of Petaluma. After reviewing the City’s 2014 Master Fee Schedule, we developed an Overhead Cost Allocation Study, which is OMB compliant, and a User Fee Study that accurately accounted for the true cost of providing various services within and to each City operation, including capital projects. As part of this effort, we also developed fully burdened hourly rates for City employees that can be used for work orders, or to charge to specific activities. This included an analysis of administrative and overhead costs associated with activities that are delivered directly to the public, where hourly rates may be charged, to ensure appropriate recovery of costs. Willdan completed these studies concurrently, in a manner that fully identifies and takes into account direct and indirect costs, along with changes in staffing, structure, and methods of service delivery.

Since the completion of the original study, Willdan has been selected to complete annual updates of the Cost Allocation Plan. We have also provided selected updates for the User Fees.

Client Contact: Jessie Gooch, Finance Director
Tel. #: (707) 778-4305 | Email: [email protected] City of Benicia, CA
Full Cost Allocation Plan and Comprehensive User Fee Study Willdan was engaged to prepare a Cost Allocation Plan and Comprehensive User Fee Study for the City of Benicia.

Willdan developed a cost allocation plan and model that fully allocated central overhead costs to appropriate operating departments, funds, and/or programs. Our primary objective for the cost allocation study was to ensure that general government costs are fairly and equitably allocated to appropriate programs and funds, based on tailored and well thought out allocation factors.

Willdan reviewed and analyzed existing user fee programs, and based upon conversations with staff, made suggestions, as necessary for fees that may need to be added to the City’s fee schedule for which fees were not currently being charged. Utilizing the full CAP, the comprehensive user fee study phase was completed with full interviews with department staff, and a comprehensive fee model developed.

Willdan has recently been selected to conduct an Industrial Safety User Fee Study.

Client Contact: Jeff Tschudi, Finance Director
Tel. #: (707) 746-4225 | Email: [email protected] City of Chino Hills, CA
Full & OMB Cost Allocation Plan and Comprehensive User Fee Study The City of Chino Hills engaged Willdan to complete a comprehensive Cost Allocation Plan and Comprehensive User Fee Study. Willdan staff met with City staff to verify the City’s objectives for the study, developed a CAP model that was configured to suit the City’s organizational structure, incorporated data from sources that could be extracted from the City’s systems for the development of the allocation methodology and worked directly with City staff to gather additional detail or clarify information where necessary. We worked with City staff to understand the various functions served by indirect staff in various City departments, and which operating departments or funds they served. We worked directly with City staff to develop and verify allocation bases and make adjustments through several iterations of the CAP model, as necessary.

We developed a cost-of-service analysis and model that updated existing fees and incorporated new fees and used it to create an updated comprehensive fee schedule. The models built for both the CAP and User Fee Study were built with a focus on the City’s ability to easily make annual changes and adjustments as needed.

Willdan is currently providing an update to the User Fee Study and Cost Allocation Plan.

Client Contact: Christa Buhagiar, Finance Director
Tel. #: (909) 364-2642 | Email: [email protected] Comprehensive User Fee Study and Cost Allocation Plan 28 City of California City, CA
Similar Studies
Listed below is a list of the public agencies in which similar services are currently in progress, or have been completed, in the last several years by the project team included within this submission.

Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Amarillo, TX Cost Allocation Plan
City of Arcadia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Arroyo Grande, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study City of Arvin, CA Cost Allocation Plan
City of Atwater, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Aurora, CO Cost Allocation Plan and Comprehensive User Fee Study City of Baldwin Park, CA Cost Allocation Plan and Comprehensive User Fee Study City of Barstow, CA Cost Allocation Plan and Comprehensive User Fee Study City of Bedford, TX Cost Allocation Plan
City of Belmont, CA Development Services User Fee Study City of Bellflower, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Benicia, CA Cost Allocation Plan and Comprehensive User Fee Study City of Blythe, CA Cost Allocation Plan and Comprehensive User Fee Study City of Bradbury, CA Comprehensive User Fee Study
City of Brea, CA Cost Allocation Plan and Comprehensive User Fee Study City of Brighton, CO Cost Allocation Plan
City of Boulder, CO Cost Allocation Plan
City of Burbank, CA Comprehensive User Fee Study
City of Canyon Lake, CA Comprehensive User Fee Study & EMS User Fee Study City of Capitola, CA Cost Allocation Plan and Comprehensive User Fee Study City of Cave Creek, AZ Cost Allocation Plan and Comprehensive User Fee Study City of Chico, CA Cost Allocation Plan and Indirect Cost Rate Plan City of Chino, CA Comprehensive User Fee Study, Cost Allocation Plan and Indirect Cost Rate Studies
City of Chino Hills, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Claremont, CA Cost Allocation Plan and User Fee Study City of Clermont, FL Building & Safety Department User Fee Study City of Coachella, CA Cost Allocation Plan and Comprehensive User Fee Study City of Commerce City, CO Comprehensive User Fee Study and Development Impact Fee Study City of Coppell, TX Full Cost Allocation Plan
City of Corona, CA Cost Allocation Plan and Comprehensive User Fee Study City of Coronado, CA Full Cost Allocation Plan and EMS User Fee Study City of Covina, CA Comprehensive User Fee Study
City of Cudahy, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of DeSoto, TX Comprehensive User Fee Study
City of Diamond Bar, CA Cost Allocation Plan and Comprehensive User Fee Study City of Dinuba, CA Cost Allocation Plan & User Fee Study Comprehensive User Fee Study and Cost Allocation Plan 29 City of California City, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Duarte, CA Cost Allocation Plan & User Fee Study City of El Cerrito, CA Cost Allocation Plan and Community Development Department User Fee Study City of El Monte, CA Cost Allocation Plan, User Fee Study and Updates, and Development Impact Fee Study
City of Eastvale, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Encinitas, CA Development Services User Fee Study and Cost Allocation Plan and Updates City of Fillmore, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Foster City, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of Fountain Hills, AZ Comprehensive User Fee Study City of Fountain Valley, CA Cost Allocation Plan and Comprehensive User Fee Study City of Fontana, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Fullerton, CA Community Development Department User Fee Study and Fire Department User Fee Study
City of Garden Grove, CA Cost Allocation Plan
City of Georgetown, TX Cost Allocation Plan
City of Gilroy, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study & 2023 CPI Updates
City of Goleta, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Hayward, CA Comprehensive Master User Fee Study, Full Cost Allocation Plan, and Updates City of Hesperia, CA Comprehensive User Fee Study
City of Hollister, CA Cost Allocation Plan and Planning User Fee Study City of Hughson, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Huntington Park, CA Cost Allocation Plan and Comprehensive User Fee Study City of Indian Wells, CA Comprehensive User Fee Study & Updates and Fire Services User Fee Study City of Irvine, CA Cost Allocation, Comprehensive User Fee Study, and Building & Safety Fee Update
City of Irwindale, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Kingsburg, CA Full & OMB Compliant Cost Allocation Plan City of La Puente, CA Cost Allocation Plan and Comprehensive User Fee Study City of La Verne, CA Cost Allocation Plan
City of Lake Elsinore, CA User Fee Study and Cost Allocation Plan and Updates City of Lindsay, CA Cost Allocation Plan, User Fee Study, and Impact Fee Analysis City of Lodi, CA Cost Allocation Plan & OMB Compliant Plan City of Lomita, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Analysis
City of Los Alamitos, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study
City of Los Angeles, CA Building & Safety User Fee Study City of Lynwood, CA User Fee Study Cost Allocation Plan, and Impact Fee Study City of McFarland, CA Cost Allocation Plan and Utility Rate Study City of Manhattan Beach, CA Full Cost Allocation Study, OMB Compliant Plan, and Comprehensive User Fee Study
City of Manteca, CA Cost Allocation Plan and Comprehensive User Fee Study City of Martinez, CA Cost Allocation Plan
Comprehensive User Fee Study and Cost Allocation Plan 30 City of California City, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Maywood, CA Comprehensive User Fee Study
City of Melissa, TX Cost Allocation Plan and Comprehensive User Fee Study City of Mesquite, TX Cost Allocation Plan and OMB Compliant Plan, and Updates City of Missouri City, TX Full Cost Allocation Plan and User Fee Study City of Montebello, CA Cost Allocation Plan and User Fee Study, and Updates City of Monterey Park, CA Cost Allocation Plan and User Fee Study City of Monterey, CA Cost Allocation Plan and Indirect Cost Rate City of Mountain View, CA Cost Allocation Plan and Comprehensive User Fee Study City of Murrieta, CA Comprehensive User Fee Study, Cost Allocation Plan, and Updates City of Napa, CA Comprehensive User Fee Study, Cost Allocation Plan, and OMB Compliant Plan City of National City, CA Cost Allocation Plan, OMB Compliant Cost Allocation Plan, User Fee Study, and ISF Allocation Study
City of Norco, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of North Port, FL User Fee Study
City of Ontario, CA Comprehensive User Fee Study
City of Oroville, CA Cost Allocation Plan and Updates
City of Oviedo, FL Cost Allocation Plan
City of Pacifica, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of Palm Desert, CA Cost Allocation Plan and Comprehensive User Fee Study, and Updates City of Palm Springs, CA Cost Allocation Plan and Comprehensive User Fee Study City of Patterson, CA Comprehensive User Fee Study, Full and OMB Compliant Cost Allocation Plan City of Paramount, CA Cost Allocation Plan and Comprehensive User Fee Study City of Petaluma, CA Cost Allocation Plan, User Fee Study, CIP Admin Rate & Work Order Rate Analysis, Hourly Overhead Rates, and ISF Allocation Study, and Updates City of Pismo Beach, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pittsburg, CA User Fee Study and Cost Allocation Plan, and Updates City of Pleasant Hill, CA Cost Allocation Plan, OMB Compliant Plan, and User Fee Study City of Pomona, CA Master Fee Schedule Update and Development Impact Fee Review City of Rancho Cordova, CA Cost Allocation Plan and Comprehensive User Fee Study City of Richmond, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Rosemead, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study City of St. Helena, CA Cost Allocation Plan, User Fee Study and Development Impact Fee Study, and Updates
City of San Anselmo, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Dimas, CA Cost Allocation Plan and Comprehensive User Fee Study City of San Fernando, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study, and Updates
City of San Jacinto, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of San Luis, AZ Cost Allocation Plan
City of San Pablo, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study City of San Marcos, CA Cost Allocation Plan, Indirect Cost Rate Studies and Comprehensive Citywide User Fee Study
Comprehensive User Fee Study and Cost Allocation Plan 31 City of California City, CA
Willdan Financial Services
Five Year Cost Allocation Plan and User Fee Study Experience Client Project Description
City of Santa Cruz, CA Citywide Overhead Cost Allocation Plan, Santa Cruz Library Cost Allocation Plan, and Fleet and Facility Services Cost Allocation Plan, and Updates City of Santa Paula, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Sausalito, CA User Fee Study and Development Impact Fee Study City of Seaside, CA Comprehensive User Fee Study
City of Sierra Madre, CA Comprehensive User Fee Study and Full Cost Allocation Plan City of Solana Beach, CA Cost Allocation Plan and Comprehensive User Fee Study City of South Pasadena, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study and Development Impact Fee Study
City of Soledad, CA User Fee Study
City of Stanton, CA Comprehensive User Fee Study and Cost Allocation Plan City of Tamarac, FL Building & Safety Department User Fee Study City of Temecula, CA Cost Allocation Plan, OMB Compliant Plan, User Fee Study, and Development Impact Fee Study
City of Temple, TX Comprehensive User Fee Study
City of Tulare, CA Comprehensive User Fee and Rate Study and Full Cost Allocation Plan, City of Tustin, CA Comprehensive User Fee Study, and Updates City of Twentynine Palms, CA Comprehensive User Fee Study and Full Cost Allocation Plan, City of Upland, CA Cost Allocation Plan and Comprehensive User Fee Study City of Vernon, CA Cost Allocation Plan and Comprehensive User Fee Study City of Watsonville, CA Comprehensive User Fee and Rate Study, Cost Allocation Plan, and Updates City of West Hollywood, CA Cost Allocation Plan and User Fee Study, and Updates City of West Sacramento, CA Cost Allocation Plan, OMB Compliant Plan, and Comprehensive User Fee Study, and Updates
City of Yucaipa, CA Comprehensive User Fee and Rate Study, Full Cost Allocation Plan, and Updates Coachella Valley Cemetery, CA User Fee Study
County of Coconino, AZ Cost Allocation Plan and User Fee Study County of Mono, CA Comprehensive User Fee Study
County of Placer, CA Land Development Fee Study
Housing Authority of the
City of Alameda, CA Cost Allocation Plan and Updates
Housing Authority of the County
of San Bernardino, CA Cost Allocation Plan and Updates
Monterey One Water, CA Cost Allocation Plan
Nevada Irrigation District , CA Cost Allocation Plan and Updates Placer County Water Agency, CA Cost Allocation Plan and Overhead Rate Study Town of Apple Valley, CA Cost Allocation Plan, Comprehensive User Fee Study and Development Impact Fee Study
Town of Monument, CO Cost Allocation Plan and User Fee Study Town of Paradise Valley, AZ Master User Fee Study
Town of Sunnyvale, TX Comprehensive User Fee Study
Town of Yucca Valley, CA Comprehensive User Fee Study
Comprehensive User Fee Study and Cost Allocation Plan 32 City of California City, CA
Compensation and Fees
Not to Exceed Fee
Willdan proposes a not to exceed fixed fee of $40,545 to conduct the Cost Allocation Plan and User Fee Study on the City’s behalf. The tables below provide a breakdown of the fee to complete each study by task and project team member.