California City City Council
May 26, 2026

Master Services Agreement
This Master Services Agreement (the “Agreement”) is entered into by and between the parties listed below as of the Effective Date, and signed by a representative of each entity, who attests to having the necessary power and authority to bind the respective party:
“Caselle” “Customer”
Entity Name: Caselle LLC Entity Name:

Address:
1656 S. East Bay Blvd Suite 100
Provo, UT 84606
Address:

Contact: Contact:

Phone Number: Phone Number:

Email Address: Email Address:

Signature: Signature:

Name: Chad Jarvi Name:

Title: President Title:
“Effective Date”: __________________, 20__
In consideration for the commitments set forth below, the adequacy of which consideration the parties hereby acknowledge, the parties agree as follows.

1. DEFINITIONS. The following capitalized terms will have the following meanings whenever used in this Agreement.

1.1. “Customer Data” means all electronic data and information processed or stored through the Hosted Services by Customer or on Customer’s behalf, but shall not include payment records, credit cards or other information Customer uses to pay Caselle, or other information and records related to Customer’s account, including without limitation identifying information related to Customer staff involved in payment or other management of such account.

1.2. “Data Protection Laws” means all state, foreign, or federal laws, statutes, regulations, rules, executive orders, directives, or other official guidance, and any industry rules or self-regulatory Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 1 of 13
Michael Laesch
[email protected]
(608) 240-2370
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codes of conduct relating to data protection, privacy, data security, electronic communications, or data security incidents that are applicable to Customer or Customer Data.

1.3. “Documentation” means any user manuals and other documentation that Caselle makes available to assist in the integration or use of the Hosted Services or On-Premise Software.

1.4. “Hosted Services” means Caselle’s cloud-based services, applications and modules listed in an Order and hosted by or on behalf of Caselle for Customer, excluding all third party software.

1.5. “On-Premise Software” means Caselle’s software products listed in an Order to be delivered as licensed software and deployed on Customer’s premises in accordance with the terms of this Agreement and the Order.

1.6. “Order” means a quote, statement of work, invoice, or an order, furnished by Caselle to Customer, for access to the Hosted Services, for limited license to the On-Premise Software, or for other Services to be provided by Caselle to Customer. The Order is incorporated into and made a part of this Agreement.

1.7. “Personal Data” means any data that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular data subject, including without limitation, all information defined as “Personal Data,” “Personal Information” or analogous definitions in applicable Data Protection Laws.

1.8. “Services” means the Hosted Services and/or On-Premise Software (as applicable) and the installation, initial training, configuration, customization, data conversion, and other services described on an Order, excluding Support.

1.9. “Support” means the support services for the Hosted Services or On-Premise Software as set forth in Section 2.4 of this Agreement.

1.10. “User” means any person who uses the Hosted Services on Customer’s behalf or through Customer’s accounts or passwords, whether authorized or not, including without limitation Customer’s employees, representatives, consultants, contractors and agents.

2. SERVICES

2.1. Subscription and License Types. Caselle makes services available both in the form of a subscription to Hosted Services and a limited license to On-Premise Software. Certain terms and conditions of this Agreement apply only to the Hosted Services or to the On-Premise Software.

Customer acknowledges and agrees that the delivery method of the Services (subscription to Hosted Services or limited license to On-Premise Software) indicated in an Order will determine the applicability of those terms and conditions under this Agreement. Notwithstanding the foregoing, Caselle generally permits (upon request and with Caselle prior approval) the transition during the term of an Order from On-Premise Software delivery to Hosted Services delivery. If Customer so requests and Caselle approves, Customer acknowledges and agrees that (a) Customer’s acceptance of the Hosted Services constitutes Customer’s agreement to the applicable terms of this Agreement governing Hosted Services, (b) Customer may incur an additional fee for transition as agreed upon by the parties in writing, and (c) Caselle will not be liable to Customer for any losses (including loss of data or profits) that Customer may incur as a result of such transition.

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2.2. Authorization. Subject to the terms and conditions of this Agreement (including without limitation Customer’s timely payment of all fees and compliance with all other obligations and restrictions set forth in this Agreement) and to the extent applicable in accordance with Customer’s Order, Caselle:
(a) grants to Customer permission to access and use the functionality of the Hosted Services, for the limited purposes described in the Documentation, throughout Customer’s applicable service period; and/or
(b) grants Customer a license, during Customer’s applicable license period, to reproduce and use the On-Premise Software, solely in the form furnished by Caselle to Customer, on Customer’s own server(s) for the limited purposes described in the Documentation.

2.3. Delivery of Services. Upon payment by Customer of the applicable fees, Caselle will provide the Services as set forth in the applicable Order. If applicable based on Customer’s Orders, Caselle will make the On-Premise Software available for electronic download.

2.4. Support. Caselle will use reasonable efforts during the term of this Agreement to make the Hosted Services available for Customer’s authorized use twenty-four (24) hours per day, 365 days per year, subject to any planned or unplanned downtime. Caselle will use reasonable efforts to limit planned downtime to 11:00 pm Saturday to 1:00 am Sunday (Eastern Standard Time). Caselle will use reasonable efforts to communicate unplanned downtime via email or through the Hosted Services. Caselle’s support primarily consists of responses to system operational configuration questions, troubleshooting assistance, and responses to occasional how-to questions concerning the Services. Support will not include, and Caselle will have no responsibility with regard to, any issues related to or arising from (a) Customer’s or a third party’s hardware, infrastructure or network, (b) any changes made other than by Caselle or its representatives, (c) format changes to any file used to import from, or export data to, a third party, or (d) training of personnel. Extended Support fees may apply and be assessed to Customer for any issues not covered by standard Support. Caselle will have representatives available for phone, email and internet support from 7:30 am to 5:30 pm (Mountain Standard Time) Monday through Friday (except designated federal and/or business holidays). To the extent applicable, Caselle will take reasonable measures to backup Customer Data each business day Monday through Friday (except designated holidays).

2.5. Documentation. Customer may reproduce and use the Documentation solely as necessary to support Users’ use of the Hosted Services or On-Premise Software, as the case may be.

2.6. Hosted Services Revisions. Caselle may revise Hosted Services features and functions at any time, including without limitation by removing such features and functions or reducing service levels.

2.7. Ownership. The permissions and the license granted to Customer above are non-exclusive, nontransferable (unless assignment is approved by Caselle in accordance with Section 10.6), nonsublicensable, revocable, and subject to any applicable restrictions or limitations set forth in an Order and this Agreement. All rights not expressly granted to Customer are reserved by Caselle and its licensors. Without limiting the foregoing, all ownership and other proprietary interests in and to the Documentation and the Hosted Services, On-Premise Software and all fixes, Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 3 of 13
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upgrades and updates thereto, and other Services, and all patents, copyrights, trade secrets, trademarks and other intellectual property rights embodied in or associated with the same, are and shall remain with Caselle and/or its licensors, as applicable. Neither this Agreement nor access to the Hosted Services or limited license to the On-Premise Software will be construed as transferring title or any ownership right or interest in the same to Customer. Upon termination of this agreement, Customer’s limited license terminates, and Customer must, if applicable, return all copies and modifications of the On-Premise Software to Caselle within 30 days of receipt of written notification of such termination from either party.

2.8. Feedback. If Customer provides any feedback, enhancement requests, recommendations, comments, or suggestions (collectively, “Feedback”) about Caselle or the Services, Customer agrees that Caselle may freely use such Feedback in its discretion without any obligation, attribution, or compensation to Customer, and Customer waives all rights in the Feedback.

3. CUSTOMER RESPONSIBILITIES AND RESTRICTIONS

3.1. Acceptable Use. The Services are for commercial use only. Customer shall comply with the Documentation. Customer shall not, nor will Customer allow anyone else to, directly or indirectly: (a) use the Services for any purpose other than Customer’s own internal business purposes including, without limitation use for service bureau or time-sharing purposes or in any other way sublicense or allow third parties to use or exploit the Services, (b) permit any third party, other than Users with appropriate access authority, to access or use the Services without Caselle’s consent, including without limitation providing Services passwords or other log-in information to any third party, (c) share all or any portion of the non-public Services features or content with any third party, (d) access the Services in order to build a competitive product or service, to build a product using similar ideas, features, functions or graphics of the Services, or to copy any ideas, features, functions or graphics of the Services, (e) engage in web scraping or data scraping on or related to the Services, including without limitation collection of information through any software that simulates human activity or any bot or web crawler, (f) knowingly upload or permit to be introduced to the Services any data or other information that contains any worms, vulnerabilities, viruses, Trojan horse, or any other code, routine, program or mechanism of a destructive or malicious nature that permits unauthorized access into, disables, partially or wholly erases, or otherwise adversely affects the Services or the systems on which the Services are hosted, (g) reverse engineer, disassemble, decompile, decode, or adapt the Services, or any part thereof, or otherwise attempt to derive or gain access to the source code of the Services, (h) modify, correct, adapt, translate, enhance, or otherwise prepare derivative works of or improvements to the Services or part thereof, (i) interfere with or disrupt servers or networks connected to the Services, or bypass or breach any security device, license key or protection used for or contained in the Services, (j) use the Services in any manner or for any purpose that infringes, misappropriates, or otherwise violates any of Caselle’s or any other party’s intellectual property rights or that violates any applicable law, (k) damage, destroy, disrupt, disable, impair, interfere with, or otherwise impede or harm in any manner the Services or Caselle systems, including, without limitation, to conduct penetration or similar testing, or (l) remove any disclaimer, copyright, trademark, proprietary rights, or other notice on or in the Services.

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3.2. Customer Obligations. Customer assumes full responsibility for the use and results obtained from the use of the Services. Customer acknowledges that various third-party hardware, software and services are required to use the Services or certain features thereof, and Customer will be solely responsible for obtaining the same, at its expense and in accordance with all applicable specifications in the Documentation and Order, as needed. If Customer is using OnPremise Software and Caselle provides a fix, upgrade or update, Customer agrees to immediately install and/or use such fix, upgrade or update and discontinue use of the previous version of the On-Premise Software. For Hosted Services, any upgrades and other modifications we may create to improve the performance of the Services may be automatically installed without providing any additional notice or receiving consent from Customer.

3.3. Users. Customer is responsible and liable for: (a) Users’ use of the Services, including without limitation unauthorized User conduct and any User conduct that would violate the requirements of this Agreement applicable to Customer; and (b) any use of the Services through Customer’s account, whether authorized or unauthorized. Customer shall take reasonable steps to prevent unauthorized access to the Services, including without limitation by protecting its passwords and other log-in information. Customer shall notify Caselle immediately of any known or suspected unauthorized use of the Services or breach of its security and shall use best efforts to stop said breach.

3.4. Compliance with Laws. In its use of the Services, Customer shall comply with all applicable laws and regulations.

4. CUSTOMER DATA

4.1. Use of Customer Data. Customer grants Caselle a worldwide, non-exclusive, royalty free, transferable, sub-licensable, perpetual, irrevocable right and license to access and use Customer Data (a) to provide the Hosted Services to Customer, (b) to share it with our affiliates and service providers for the purpose of providing the Hosted Services, (c) to contact Customer for marketing purposes, or (d) as required by applicable law or by proper legal, governmental or regulatory authority. Customer retains all right, title, and interest in and to Customer Data, subject to the rights granted to us in the Agreement. Customer is solely responsible for the accuracy, quality, integrity, reliability, appropriateness, legality and right to use Customer Data submitted to Caselle through the Services as well as the consequences, ramifications, and results of sharing Customer Data with Caselle. Caselle is not under any obligation to review Customer Data and shall not be liable or responsible for the content, accuracy, or appropriateness of, or the right to use Customer Data to perform the Services. Caselle may retain third parties to assist it in performing its obligations under this Agreement or any Order provided that such third parties shall share Caselle’s legal obligations with respect to Customer Data as set forth herein. Such third parties shall be referred to as Subprocessors herein. If required by Data Protection Laws, Caselle will notify Customer before engaging any Subprocessor to process Customer Data. Caselle shall not sell Customer Data or share it with any third party for cross-contextual behavioral advertising. Caselle shall not, except as otherwise required or permitted herein, in an Order, or in other written direction from Customer, disclose Customer Data to any third party. To the extent Customer or Users provide Personal Data in connection with the use of the Services, Customer is responsible for and Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 5 of 13
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warrants that Customer will obtain the necessary rights and consents under applicable law to disclose to Caselle, and allow Caselle to collect, use, retain, and disclose information that Customer provides to Caselle which Caselle is enabled to collect, including information using cookies or other similar means. Caselle also shall not combine Personal Data within the Customer Data with any data received from or on behalf of any third party. In the event of any loss or damage to Customer Data, Customer’s sole and exclusive remedy will be for Caselle to use reasonable commercial efforts to restore the lost or damaged content or data from the latest back-up of such content or data maintained by Caselle. Caselle will not be responsible for any loss, corruption, destruction, alteration or disclosure of Customer Data caused by Caselle or any third party.

4.2. Security. Caselle shall exercise commercially reasonable efforts to prevent unauthorized disclosure or exposure of Customer Data. Further, Caselle shall arrange for backup of Customer Data each business day to the extent applicable.

4.3. De-Identified Data. Caselle shall own all rights in and may collect, use, transfer, or share DeIdentified Data (as defined below) in any way, in its sole discretion, including without limitation aggregated with data from other customers. “De-Identified Data” refers to Customer Data that has been processed so that it does not (a) contain Personal Data or (b) permit the identification of Customer.

4.4. Return or Destruction. Upon the termination or expiration of this Agreement, Caselle will return or securely destroy, at Customer’s option, all Customer Data in Caselle’s possession in a format of Caselle’s choosing. If Customer elects the return of Customer Data, Caselle will securely destroy all Customer Data after such return. If Customer does not elect for the return of Customer Data within sixty (60) days of the termination or expiration of this Agreement, Caselle will securely destroy the Customer Data. Further, upon Customer request and for an additional fee, Caselle may assist Customer with installation and/or configuration of Customer Data on a local network. The obligations above do not apply to De-Identified Data.

4.5. Required Disclosure. Notwithstanding anything to the contrary in this Agreement, Caselle may disclose Customer Data as required by applicable law or by proper legal or governmental authority. Caselle shall give Customer prompt notice of any such legal or governmental demand unless prohibited from doing so, and reasonably cooperate with Customer in any effort to seek a protective order or otherwise to contest such required disclosure, at Customer’s expense.

4.6. Risk of Exposure. CUSTOMER RECOGNIZES AND AGREES THAT HOSTING DATA ONLINE

INVOLVES RISKS OF UNAUTHORIZED DISCLOSURE OR EXPOSURE AND THAT, IN ACCESSING AND USING THE SERVICES, CUSTOMER ASSUMES ALL SUCH RISKS. CASELLE OFFERS NO

REPRESENTATION, WARRANTY, OR GUARANTEE THAT CUSTOMER DATA WILL NOT BE EXPOSED OR DISCLOSED THROUGH ERRORS OR THE ACTIONS OF THIRD PARTIES.

4.7. Data Accuracy. Caselle will have no responsibility or liability for the accuracy of Customer Data.

4.8. Regulatory Compliance. Caselle shall reasonably cooperate with Customer, at Customer’s expense and on reasonable notice, to allow the Customer to take reasonable and appropriate steps to ensure that Caselle’s processing of Customer Data is consistent with Data Protection Laws. If Customer determines that Caselle’s processing of Customer Data is inconsistent with Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 6 of 13
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Data Protection Laws or exceeds the authorization that Customer has authorized under this Agreement or in an Order, Caselle shall reasonably cooperate with Customer, at Customer’s expense, to stop and remediate such processing.

4.9. Security Incidents. In the event either Customer or Caselle becomes aware of the unauthorized destruction, loss, alteration, disclosure, acquisition or use of, or access to Customer Data (a “Security Incident”), the party shall notify the other without undue delay, and, in any event, within five (5) days. The parties shall reasonably cooperate to determine the scope and cause of the Security Incident and to remediate the cause and effects of the Security Incident. Such cooperation shall include a continuing duty to share all information reasonably available to the party regarding the scope, nature and effects of the Security Incident. If Data Protection Laws require notice of a Security Incident to be given to government authorities or individuals, Customer shall promptly undertake such notifications at Customer’s expense. Likewise, if Data Protection Laws require remedial action (which may include, without limitation: notice to credit reporting agencies, media, or other entities; support for affected individuals; and credit monitoring services), Customer shall promptly provide such remedial action at Customer’s expense. Caselle will not inform any third party (except as legally or contractually required) of the Security Incident without Company’s prior written consent.

4.10. Requests from Regulators and Individuals. If Caselle receives any inquiry or request from a government body or individual regarding the processing of Personal Data within the Customer Data, Caselle shall, unless prohibited by law, promptly forward such inquiry or request to Customer. Where such request is forwarded to Customer, Customer shall have the sole responsibility to respond to such inquiry or request. Caselle shall reasonably cooperate, at Customer’s expense, with Customer as needed to respond to such inquiry or request.

5. PAYMENT OF FEES

5.1. Fees. Customer agrees to pay Caselle the fees set forth in Orders. Fees will be invoiced and paid in U.S. dollars. Unless otherwise specified in an Order, each invoice is due and payable at the invoice due date. Further, unless otherwise set forth in an Order, Caselle may increase the fees for any renewal period. Upon Customer request, Caselle will provide notice of any fee increases prior to renewal. No Support will be rendered to the Customer if any fees are overdue.

5.2. Interest, Taxes and Withholdings. Overdue payments will result in a 10% late payment fee. The fees set forth in this Agreement are exclusive of, and Customer will pay, all taxes, duties and other charges or fees imposed by governmental authorities arising out of this Agreement or the use of the Services by Customer. In the event that Caselle is required to pay any tax or duty (other than taxes based on Caselle’s net income), Customer will reimburse Caselle for any and all such payments.

6. TERM AND TERMINATION

6.1. Term. The term of this Agreement will commence on the Effective Date and continue until this Agreement has terminated or all Orders have been terminated, whichever occurs first. Except as otherwise set forth in an Order, the initial term of each Order will be for the period of time from when the Order becomes effective until the date that is one (1) year from the date when Caselle begins providing Services. Each Order will automatically renew after its initial term for Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 7 of 13
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successive one (1) year periods, unless either party refuses such renewal by written notice thirty (30) or more days before the renewal date.

6.2. Termination for Cause. Either party may terminate this Agreement, including all active Orders, for the other’s material breach by written notice specifying in detail the nature of the breach, effective in thirty (30) days unless the other party first cures such breach, or effective immediately if the breach is not subject to cure. Without limiting Caselle’s other rights and remedies, Caselle may suspend or terminate Customer’s or any User’s access to the Services at any time, without advance notice, if Caselle reasonably believes that Customer or such User has conducted itself in a way that is not consistent with the Documentation or the other requirements of this Agreement, in a way that puts the Services at risk, or in a way that subjects Caselle to potential liability.

6.3. Effect of Termination. Upon termination or expiration of this Agreement for any reason, all permissions and other authorizations granted by Caselle to Customer under this Agreement will terminate and Customer shall (a) cease using the Services, (b) pay within thirty (30) days all amounts remaining unpaid under this Agreement, and (c) return all copies of Caselle’s Confidential Information to Caselle or certify, in writing, the destruction thereof. Sections 2.7,

2.8, 3, 4, 5, 6.3, 7, 8, 9, 10, and any other provisions of this Agreement that, by their terms, contemplate continuing effectiveness beyond the term of this Agreement, will survive termination or expiration of this Agreement.

7. CONFIDENTIALITY

7.1. Confidential Information. “Confidential Information” means: (a) all software code, documentation and other materials included in or furnished by Caselle as part of the Services; and (b) any other non-public technical or business information of Caselle (or its licensors), including without limitation any information relating to Caselle’s techniques, algorithms, software, hardware, firmware, know-how, current and future products, services, research, engineering, designs, financial information, procurement requirements, manufacturing, customer lists, business forecasts, strategies, marketing plans and information, the terms and conditions of this Agreement, and any other information of Caselle (or its licensors) that is conspicuously identified as confidential or proprietary at the time of disclosure or that Customer should otherwise reasonably understand to be confidential or proprietary to Caselle or its licensors due to the nature of the information or the circumstances of its disclosure.

7.2. Obligations. Customer will maintain the confidentiality of the Confidential Information using at least the same measures employed to protect Customer’s own confidential information and in no event less than reasonable measures. Customer will limit the disclosure of Confidential Information to only its personnel with a bona fide need to access such Confidential Information in order to exercise Customer’s rights and obligations under this Agreement, and then only provided that each such person is bound by a written confidentiality agreement that contains restrictions at least as protective as those set forth in this Agreement. Customer shall not use, publish, duplicate, exploit or dispose of Confidential Information with respect to its performance of its duties under this Agreement.

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to compensate Caselle for such breach. In the event of a breach or threatened breach of any of the provisions of this Section, Caselle, in addition to and not in limitation of any other rights, remedies or damages available to it at law or in equity and without the necessity of posting bond or proving that it has no adequate remedy at law, shall be entitled to seek a temporary restraining order, preliminary injunction and/or permanent injunction in order to prevent or to restrain any such breach.

8. REPRESENTATIONS AND WARRANTIES

8.1. From Caselle. Caselle warrants that the Services: (a) will be provided in a professional manner and otherwise in accordance with generally recognized industry standards; and (b) will conform in all material respects to the Documentation. Customer’s sole and exclusive remedy for any breach of the above warranty will be for Caselle to use commercially reasonable efforts, at no charge to Customer, to correct the non-compliance.

8.2. From Customer. Customer represents and warrants that it has the full right and authority to enter into, execute, and perform its obligations under this Agreement. Customer represents that it has the requisite expertise to evaluate the suitability of, and has undertaken its own investigation of the suitability of, the Services and that it has relied upon its own skill and judgment in selecting the Services. Customer agrees it has determined that the Services meet Customer’s needs. Customer assumes the entire risk of using the Services. Customer also represents and warrants that (a) its use of Customer Data complies with Data Protection Laws; (b) it has the legal right to use Customer Data and (c) it has the legal right to allow Caselle to process such Customer Data as set forth in this Agreement and any applicable Order.

8.3. Services Disclaimers. Except to the extent set forth in Section 8.1, THE SERVICES ARE PROVIDED AND ACCEPTED BY CUSTOMER “AS IS,” AND “AS AVAILABLE” WITH NO REPRESENTATION OR WARRANTY OF ANY KIND. ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT

LIMITATION IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR

PURPOSE, ABSENCE OF HIDDEN OR LATENT DEFECTS, TITLE, OR NONINFRINGEMENT OF

INTELLECTUAL PROPERTY RIGHTS, OR ANY EXPRESS OR IMPLIED WARRANTY ARISING FROM

STATUTE, COURSE OF DEALING, COURSE OF PERFORMANCE, OR USAGE OF TRADE ARE SPECIFICALLY EXCLUDED AND DISCLAIMED. CASELLE DOES NOT WARRANT THAT THE SERVICES WILL MEET CUSTOMER’S REQUIREMENTS, WILL OPERATE WITHOUT INTERRUPTION, WILL BE

ERROR FREE, SECURE OR WITHOUT DEFECT, WILL BE ACCURATE, RELIABLE OR CORRECT, WILL

BE AVAILABLE AT ANY PARTICULAR TIME OR LOCATION, WILL BE VIRUS FREE OR FREE OF OTHER HARMFUL COMPONENTS, OR THAT ALL FAILURES OF THE SERVICES WILL BE CORRECTED.

CASELLE DOES NOT GUARANTEE ANY SPECIFIC RESULTS FROM THE USE OF THE SERVICES. IN

PARTICULAR, THE OPERATION OF THE SERVICES MAY BE INTERRUPTED DUE TO MAINTENANCE, UPDATES, SYSTEM OR NETWORK FAILURES OR FAILURES IN THE SYSTEMS OF CASELLE’S THIRD PARTY SERVICE PROVIDERS. CASELLE DISCLAIMS ALL LIABILITY FOR DAMAGES CAUSED BY ANY

SUCH INTERRUPTION, ERRORS IN FUNCTIONING, OR THIRD PARTY ACTS OR OMISSIONS INCLUDING, WITHOUT LIMITATION, LOSS OF CUSTOMER DATA. FURTHERMORE, CASELLE

DISCLAIMS ALL LIABILITY FOR ANY MALFUNCTIONING, IMPOSSIBILITY OF ACCESS, OR POOR USE CONDITIONS OF ANY OF CASELLE’S WEBSITES OR HOSTED SERVERS DUE TO INAPPROPRIATE

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PROVIDERS, AND FOR ANY OTHER REASON. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING: (a) CASELLE HAS NO OBLIGATION TO INDEMNIFY OR DEFEND CUSTOMER OR USERS AGAINST CLAIMS RELATED TO INFRINGEMENT OF INTELLECTUAL PROPERTY; (b) CASELLE

DOES NOT REPRESENT OR WARRANT THAT THE SERVICES WILL PERFORM WITHOUT INTERRUPTION OR ERROR; (c) CASELLE DOES NOT REPRESENT OR WARRANT THAT THE

SERVICES ARE SECURE FROM HACKING OR OTHER UNAUTHORIZED INTRUSION OR THAT CUSTOMER DATA WILL REMAIN PRIVATE OR SECURE; AND (d) CASELLE DOES NOT REPRESENT

OR WARRANT THAT THE SERVICES WILL OPERATE OR BE COMPATIBLE WITH ANY THIRD PARTY HOSTED SERVICES OR HARDWARE.

9. LIMITATIONS OF LIABILITY AND INDEMNIFICATION

9.1. Maximum Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, CASELLE’S

TOTAL AGGREGATE LIABILITY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS

AGREEMENT AND/OR THE SERVICES (INCLUDING IN RELATION TO THE SEPARATE SPECIFIC

TERMS) TO CUSTOMER OR A THIRD PARTY, FROM ANY CAUSE OF ACTION WHETHER IN CONTRACT, TORT OR OTHERWISE, WILL BE LIMITED TO THE LESSER OF (a) THE AMOUNT OF ACTUAL DIRECT DAMAGES INCURRED BY CUSTOMER AND/OR THE THIRD PARTY, OR (b) THE AMOUNTS PAID TO CASELLE BY CUSTOMER FOR THE APPLICABLE SERVICES IN THE TWELVE (12)

MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE LIABILITY UNDER THIS AGREEMENT. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE FOREGOING IS CUSTOMER’S SOLE AND EXCLUSIVE REMEDY FOR A BREACH OF THIS AGREEMENT BY CASELLE.

UNDER NO CIRCUMSTANCES WILL CASELLE BE RESPONSIBLE FOR ANY LOSS, DAMAGE OR INJURY RESULTING FROM HACKING OR OTHER UNAUTHORIZED ACCESS TO CUSTOMER’S

ACCOUNT, CUSTOMER DATA OR ANY OTHER INFORMATION OF CUSTOMER OBTAINED BY CASELLE IN RELATION TO CUSTOMER’S USE OF THE SERVICES. IF CUSTOMER IS A CALIFORNIA

RESIDENT, CUSTOMER EXPRESSLY WAIVES ITS RIGHTS WITH RESPECT TO CALIFORNIA CIVIL CODE SECTION 1542, WHICH SAYS: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT, IF KNOWN BY HIM OR HER,

WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

9.2. Exclusion of Damages. IN NO EVENT WILL CASELLE BE LIABLE TO CUSTOMER FOR ANY LOSS,

DAMAGES, CLAIMS OR COSTS WHATSOEVER ARISING FROM LOST REVENUE, LOSS OF BUSINESS,

LOST OF ACTUAL OR ANTICIPATED PROFITS, LOST SAVINGS, LOSS OR CORRUPTION OF

CUSTOMER DATA, INTERRUPTION OF BUSINESS, LOSS OF GOODWILL OR REPUTATION, INJURY,

DEATH, OR FOR ANY OTHER CONSEQUENTIAL, INDIRECT, INCIDENTAL, EXEMPLARY, SPECIAL OR

PUNITIVE DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY, ALL REGARDLESS OF THE FORM

OF ACTION WHETHER IN CONTRACT, TORT OR OTHERWISE, EVEN IF CASELLE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, DAMAGES, CLAIMS OR COSTS. THE FOREGOING

LIMITATIONS AND EXCLUSIONS APPLY TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW IN CUSTOMER’S JURISDICTION.

9.3. Basis of Bargain. The foregoing limitations and exclusions are an essential part of the parties’ agreement and will apply even if any remedy fails in its essential purpose.

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9.4. Customer Indemnity. Customer agrees to defend, indemnify and hold Caselle, its parent, subsidiaries, affiliates, officers, managers, directors, shareholders, members, employees, agents and representatives harmless from and against any and all claims, losses, liabilities, damages, judgments, penalties, costs and expenses (including but not limited to reasonable attorneys’ fees and collection costs) arising out of or related to (a) any suit, claim or proceeding relating to the processing of Customer Data, (b) Customer’s or Customer’s employees’, agents’, representatives’ or Users’ (collectively, “Customer’s Representatives”) use or misuse of the Services or negligent or willful misconduct, (c) any activity occurring under Customer account(s), (d) any misrepresentation by Customer, (e) Customer’s Representatives’ acts or omissions in connection with the Services, Customer’s business operations, or Customer’s products or services, (f) Customer or Customer’s Representatives’ violation of the rights of any third party including, without limitation, intellectual property rights or privacy rights, (g) any actual or alleged breach of Customer’s representations, warranties or obligations set forth in this Agreement, the Order or the Documentation, (h) Customer’s violation of any applicable law, rule or regulation, (i) any claim by Customer’s customers in connection with the Services, Customer’s business operations or Customer’s products or services, and (j) any third party’s access to Customer’s account or the Services using Customer’s account credentials.

10. MISCELLANEOUS

10.1. Independent Contractors. Caselle and Customer are independent contractors and shall so represent themselves in all regards. Neither party is the agent of the other, and neither may make commitments on the other’s behalf.

10.2. Notices. Caselle may send notices pursuant to this Agreement to Customer’s email contact points provided by Customer, and such notices will be deemed received twenty-four (24) hours after they are sent. Customer may send notices pursuant to this Agreement to [email protected] and such notices will be deemed received seventy-two (72) hours after they are sent. Either party may also send notices to the other party at the address provided in the introduction via recognized overnight carrier, and such notices will be deemed received the following business day if sent for next day delivery.

10.3. Severability. If any term or provision of this Agreement should be declared unlawful, void or unenforceable, the remaining terms and provisions of this Agreement shall be unimpaired and remain in full force and effect, and the unlawful, void or unenforceable term or provision will be deemed to be restated so as to be enforceable to the maximum extent permissible under applicable law.

10.4. Entire Agreement. This Agreement, together with any Orders and documents referenced in this Agreement, constitutes the entire agreement and understanding between Caselle and Customer relating to the subject matter of this Agreement and supersedes any and all previous and contemporaneous communications, proposals, warranties, representations or agreements, whether written or oral, with respect to the subject matter of this Agreement. Any term or condition in any document provided by Customer that is in addition to or inconsistent with the terms and conditions of this Agreement (but that purports to relate to the subject matter of this Agreement) is hereby expressly rejected, and Caselle’s acceptance of any offer or order of Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 11 of 13
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Customer is expressly made in reliance on Customer’s assent to all of the terms and conditions of this Agreement.

10.5. Conflicts; Order of Precedence. In the event of a conflict between provisions of this Agreement, an Order, the Documentation, or other attachment, the following order of precedence will govern: (1) an Order, with more recent Orders taking precedence over earlier Orders; (2) this Agreement; and (3) the Documentation.

10.6. No Assignment. Customer shall not assign this Agreement, any interest in this Agreement, or any rights hereunder, or delegate any obligations hereunder, in whole or in part, whether voluntarily or by operation of law, without Caselle’s prior express written approval, which approval shall not be unreasonably withheld. Any such purported assignment or delegation by Customer without Caselle’s prior written consent will be null and void and of no force or effect.

Caselle may assign this Agreement without Customer’s prior written consent to an affiliate or in connection with a change of control, merger, acquisition, or sale of all or of substantially all of its assets.

10.7. Amendment. Caselle reserves the right, in our sole discretion, to modify or change the Services and/or this Agreement or any part thereof at any time without prior notice to Customer. Caselle may amend this Agreement by posting a Notice of Revision and revised Agreement on its website and/or delivering a Notice of Revision and revised Agreement to Customer through Customer’s account (if applicable) or to Customer’s contact email address, each of which will be effective as of the time of posting or delivery, as applicable. Customer is responsible for reviewing Caselle’s website, Customer account, and contact email account on a regular basis.

Customer’s access to and use of any of the Services following the posting or delivery of an amendment constitutes Customer’s consent to such amendment.

10.8. Choice of Law and Jurisdiction. This Agreement and the rights, duties and obligations of the parties hereto are to be governed by, construed and enforced according to the laws of the State of Delaware and applicable controlling U.S. federal law, without regard to any conflict of law rules or principles. Any dispute arising out of or related to this Agreement shall be resolved only in the state or federal courts located in New Castle County, Delaware, and Customer and Caselle hereby submit to the exclusive jurisdiction of such courts. Customer irrevocably agrees to waive any objection to the venue of any such suit or proceeding in Delaware, or to in personam jurisdiction, provided that service is effective. The parties agree that the United Nations Convention on Contracts for the International Sale of Goods will not apply to this Agreement.

10.9. Force Majeure. Caselle will not be responsible for any delay or failure to perform its obligations specified in this Agreement due to causes beyond Caselle’s reasonable control including, without limitation, failure or malfunction of Customer’s or third party service provider’s equipment, disruptions of Internet protocol (“IP”) service through intermediate carriers, acts of God, explosions, vandalism, cable cut, storms, fires, floods or other catastrophes, pandemics, power failure, national emergencies, insurrections, riots, wars, strike, lockouts, boycotts, work stoppages or other labor difficulties, or any law, order, regulation or other actions of any governmental authority, agency, instrumentality, or of any civil or military authority.

10.10. Waiver. Failure by Caselle to enforce any rights or remedies under this Agreement or any Order will not be construed as a waiver of such rights or remedies, and a waiver by Caselle of a default Document Ref: DO7EH-KXZUK-ODAV2-OCZNE Page 12 of 13
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under this Agreement or any Order in one or more instances will not be construed as constituting a continuing waiver or as a waiver of any other rights or remedies under this Agreement or any Order. Caselle will not be deemed to have waived any rights or remedies under this Agreement or any Order unless such waiver is in writing and signed by a duly authorized representative of Caselle.

10.11. Use of Customer Name. Customer hereby consents to Caselle’s use of Customer’s name and logo to identify Customer as a customer or user of the Services in Caselle’s marketing materials.

10.12. Execution in Counterparts. This Agreement may be executed in one or more counterparts. Each counterpart will be an original, but all such counterparts will constitute a single instrument. [Remainder of page intentionally left blank]
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REF. NUMBER
DO7EH-KXZUK-ODAV2-OCZNE

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COUNCIL AGENDA ITEM
May 26, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: 1) Approval of a Contract with RCS for Comprehensive Review and Evaluation of Citywide User Fees (Fee Study) and Cost Allocation Plan in an Amount Not-To-Exceed $33,150; and 2) Authorize the City Manager to Execute the Contract
BACKGROUND/ DISCUSSION:

This item was continued from the May 12, 2026, City Council meeting.

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
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Three staff members reviewed and graded the applications using the criteria established in the RFP which were:
• Thoroughness and understanding of the tasks to be completed • Background and experience in organizational analysis evaluation • Schedule of services and completion date
• Responsiveness to requirements of this RFP
• Recent public sector experience, preferably in a municipal setting, conducting similar studies • Costs
The scores received (out of 120 total points) and costs provided by all bidders were:

Bidder Score Cost Allocation User Fee Total
Matrix Consulting Group* 112 $49,500
MGT 107 $11,000 $52,750 $63,750
RCS 113 $8,970 $24,180 $33,150
Willdan Financial Services 112 $10,820 $29,725 $40,545
RCS received the highest average score, was ranked number one by two of the three graders, and provided the lowest overall cost among the bidders.

FISCAL IMPACT:

The cost of required services will be $33,150 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 RCS 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:

RCS Bid
540

Proposal for the City of California City

USER FEE STUDY
& COST ALLOCATION PLAN
1519 E Chapman Ave
Suite C
Fullerton, CA 92831
(714) 992-9020
www.revenuecost.com
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TABLE OF CONTENTS
Cover Letter ..................................................................................................................................................................... 3 Firm’s Experience ......................................................................................................................................................... 4 Project Team ................................................................................................................................................................... 6 References ........................................................................................................................................................................ 7 Methodology/Project Understanding ................................................................................................................. 8 Project Timeline ......................................................................................................................................................... 13 The Right Software .................................................................................................................................................... 14 Exceptions ..................................................................................................................................................................... 14 Cost for Services ......................................................................................................................................................... 15 542
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April 27, 2026
City of California City
Sean Grayson, Interim City Manager
21000 Hacienda Blvd.

California City, CA 93505
Proposal – User Fee Study and Cost Allocation Plan
Revenue & Cost Specialists, LLC (RCS) appreciates the opportunity to respond with this proposal to develop a User Fee Study and Cost Allocation Plan. We have been providing fee studies and other costing services since 1980, making us the first and foremost expert in costing services for California. RCS’ skill set will generate maximum accountability for the City of California City. Lately, our focus has been to support our clients in navigating the proper workflow and legal compliance with user fees. In many agencies, we are finding fees that are outdated, difficult to justify, or supported by processes that staff are not familiar with.

Our processes are straightforward, analytical and require minimal staff time. In the end, we strive to ensure that the City of California City will be able to confidently stand behind the information and recommendations in the Report. Based in California, we can provide timely support to City staff for years to come.

The terms of this proposal will be honored for 90 calendar days from the date of submittal.

Please contact Eric at (714) 992-9027 or [email protected] with any questions.

Sincerely,
ERIC S. JOHNSON
President

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FIRM’S EXPERIENCE

RCS HISTORY
Revenue & Cost Specialists, LLC (Taxpayer ID No. 33-
0787781) was founded in 1980 by two former City
Managers and a Finance Director who, after the passage of Propositions 13 and 4, discovered that user fees were a legal option to recover lost municipal revenues. Four decades later, RCS continues its focus on cost allocation and fee calculation services.

After the passage of AB 1600 in 1988, our company added impact fee calculation services to help municipalities finance public facility expansion. In those early years, RCS principals published articles and presented at conferences, helping California municipal employees understand how fees work. Our early work is the foundation of how fees and cost allocation plans are calculated today.

In 2000, RCS created Government Software Systems to develop robust costing software that serves fee calculation needs better than spreadsheets. Our company has provided additional services to municipalities that include long-range financial planning, accounting procedures and utility rate studies.

RCS continues to thrive through repeat business, referrals and references. As a small business, RCS takes only a handful of new clients each year, allowing us to spend substantial time with them. In 2026, RCS celebrates its 46th year in business and is looking forward to another 46 plus years of partnering with municipalities.

QUALIFICATIONS
RCS’ principals make up the Limited Liability Company, which has been financially stable since the company started. Combined, RCS principals have over 100 years of experience in cost allocation plans and fee studies and served over 250 municipalities. We have provided these services for a wide array of public agencies, from the smallest special district to larger and more complex cities and counties. Though based in Orange County, we engage in projects throughout the State of California.

RCS principals specialize in:
 User Fee Studies
 Cost Allocation Plans
 Development Impact Fee Studies
 Special Financial Management Studies and Reports
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These specializations allow RCS to focus on every aspect of municipal fees and be the best of what we do. We are confident in our project time estimates and do not respond to RFPs when the project workload exceeds our capacity. We have suggested new fees that are not common practice throughout the state and have challenged and removed municipal fees that were not defensible. We have assisted municipalities in streamlining their fee-based processes.

All RCS principals have prior city experience, serving as analysts, managers or directors. We are all knowledgeable in fund accounting, department structures and municipal services. We stay current on pending financial and legal issues that challenge municipalities. All principals are comfortable speaking with city staff at all levels, drafting reports and resolutions, and presenting them to the public, stakeholders and City Council members.

Eric Johnson, President, has streamlined and perfected the process of CAP and User Fee Study engagements. With over 36 years and hundreds of studies completed, Eric has created a superior process that demands little staff time while obtaining maximum results. Eric quickly understands complex city services and how to calculate fees for them. He relates well with elected officials because he responds with candor and brevity. If you speak to any of Eric’s prior or current clients, they will tell you how easy the process was.

Greg Brown, Vice President, is part of the next generation of RCS to conduct Impact Fee Studies. Although he is the RCS team's newest partner, he has generated millions in fee revenue for cities since 2020. Greg spent 20 years as a small business entrepreneur before joining the RCS team. Trained by Scott Thorpe, Greg applies the same methodology to development impact fees that Scott Thorpe developed over his 35-year career while also incorporating his experience in business management with a focus on efficiency.

Chu Thai, Partner, joined RCS after 25 years of municipal experience. As a budget manager and finance director, Chu has successfully coordinated user fee increases, impact fee increases, utility rate increases and tax ballot measures. His experience helps clients avoid the unseen perils that jeopardize municipal projects. After project completion, Chu leaves behind well-documented reports and spreadsheets for City staff. The focus of his career has been to improve cities’ financial stability and implement operational effectiveness and efficiencies in local government.

Scott Thorpe, Senior Vice President, joined RCS in 1985. Before that, he spent 13 years at the cities of Chula Vista, Covina, Anaheim and Brea, serving in various roles within the city manager’s offices. Scott performed user fee studies for several years, transitioning to development impact fees when AB 1600 went into effect. He has written articles laying out the fundamentals of impact fees, and his work has generated tens of millions in fee revenues for cities.

Rick Kermer, Partner, was one of the founders of RCS. Rick used his CPA and audit experience to build cost allocation and user fee spreadsheets and software that passes rigorous analysis and reporting accounting standards. Rick’s work is the foundation of all the fee study work offered today. He is now semi-retired, taking only a handful of projects each year. 545
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CALIFORNIA CITY PROJECT TEAM
Eric Johnson - President
Eric Johnson will be the project manager involved
with the City of California City. Eric serves as
President of Revenue & Cost Specialists, with over 36
years of professional knowledge in cost recovery
models and user fee studies. He has worked with
over 100 agencies in 7 states. His resume can be
viewed at www.revenuecost.com.

He focuses on providing a positive experience for
RCS clients, which minimizes staff interruptions yet
still produces a comprehensive, defensible study that is adopted by the governing board.

SUPPORT TEAM
While Mr. Johnson will work directly with City staff, he will be assisted by this team:

Akasin Quach Phyakul – Analyst
Akasin is a recent graduate of University of California, Riverside and is currently working on a Master of Public Administration at USC.

Akasin will work with Eric and City staff to develop cost models, data quality control, and research into various issues, as needed.

Morag Knapp – Technical Support
With a long history of providing technical support at
Pepperdine University, Morag brings that experience to RCS.

She will work with Eric and City staff to ensure that the data is being used correctly and accurately in the Report.

This team will be involved in every phase of this project, working together to maintain the proposed schedule and the quality of the Report.
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REFERENCES
Eric Johnson was the project manager for the following recently completed projects. The above project team worked together on the City of Gardena project, providing behind the scenes support for the Project Manager.

Jurisdiction Contact Title
City of Newark Krysten Lee
(510) 578-4288
Finance Director
[email protected]
RCS completed a Cost Allocation Plan and Comprehensive Fee Study for the City in 2023, and the City Council adopted the suggested user fees in 2024. We identified over $1.8 million in potential new fee revenue, including an in-depth review of the Fire fees, which involved working directly with the City’s fire agency, Alameda County Fire. Newark had a $82.7 million General Fund expenditure budget in FY 25-26.

City of Lompoc Dean Albro
(805) 875-8274
City Manager
[email protected]
RCS has been working with the City of Lompoc since 2014, with further updates performed in 2019 and 2022. The City Council adopted the suggested fees in each case.

In the most recent update, we identified over $1.3 million in potential new revenue for the City. Most recently in 2025, we updated the Cost Allocation Plan and Fully Allocated Hourly Rates. Lompoc had a $52.1 million General Fund expenditure budget in FY 25-26.

City of Gardena Ray Beeman
(310) 217-9502
Admin Services Director
[email protected]
RCS completed a Cost Allocation Plan and Comprehensive Fee Study for the City in 2024, and the City Council adopted the suggested user fees in 2025. We identified almost $500,000 in potential new revenue for the City. Gardena had a $88.9 million General Fund expenditure budget in FY 25-26.

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METHODOLOGY/PROJECT UNDERSTANDING
The City of California City wants to identify the full costs of all operational services that are either currently charged a fee or could be charged a fee.

RCS will first update the City’s Cost Allocation Plan
(CAP), which is necessary in calculating the fully
burdened hourly rates for employees and is an
effective way to distribute the overhead costs to other funds, departments, and the end-user services. Our
Cost Allocation Plan is powerful in capturing the
maximum overhead charges to enterprise funds. If
excluded from this Citywide Fee Study, RCS will use
the City’s prior Cost Allocation Plan.

Next, RCS will perform the fee study, reviewing the
staff time and program costs involved with each
service and calculating the full cost of services for each fee.

The proposed fee structure will recover these costs in the most equitable and efficient way possible. The user fees will represent how operations are conducted in the City, and may involve flat fees, deposits, valuation-based fees, step-increase fees, or a combination of these.

The eventual fee recommendations included in the final report and master fee resolution will be defensible, easy to understand, and be supported by City staff.

The most important part of our work is performed through a series of focused meetings with staff. Scheduled meetings commit staff to the timeline and ensure that our study draws from the most knowledgeable person on the subject matter. A series of meetings also gives City staff time to digest and reflect on the information generated. RCS uses only company principals with more than 25-plus years of experience to conduct these meetings, which makes the process quicker and the results more accurate. Our process provides the City with well-documented and defensible service costs that will be used to develop fees that comply with Propositions 4, 218 and 26.

We also identify 100% of the staff time on 100% of the services they provide. This gives City staff a complete perspective on their time allocations instead of merely looking at time allocations for individual services in a vacuum. These methods will ensure that City staff feels confident about the data and, therefore, confident in supporting the results in public hearings.

The other key result of identifying 100% of City services is that we are identifying not only the cost of fee services, but of community-supported services, such as public safety, street and park maintenance services. This allows us to have a real discussion with real numbers with the City Council about tax subsidy policy. Since we are identifying the full costs of fee services, we are also identifying the current subsidy of general tax dollars for these services.

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of community-supported services. Does the City want to continue to use precious tax dollars to support, for instance, a bathroom remodel and permitting inspection that only benefits a particular property owner or use those tax dollars on things that can only be supported by tax dollars, like police patrol and park maintenance? They will now have that information to be able to make that conscious choice.

Changing the discussion from fee increases to tax subsidy policy along with RCS’ experience in successfully presenting the results of similar studies to City Councils ensures that the City will be able to meet its policy objectives.

RCS will provide the City of California City with the requested printed and electronic copies of the final versions of the Cost of Services Study and Cost Allocation Plan, including related schedules and cost documentation in a format that can be edited and updated by City staff to accommodate desired changes.

In the past five years, there have been no previous failures or refusals to complete a contract.

RCS makes it a point to follow through on tasks and establish clear lines of communication.

By maintaining open communication and being flexible with any challenges that come up, RCS aims to display our dedication to completing every contract we take.

Project Kick-Off
Task 1: Prepare City Data
RCS will review and prepare necessary files for the project. This includes obtaining and reviewing prior user fee reports and fee schedules, line-item budget details, salary schedules, MOUs and fringe benefit details.

Task 2: Kick-off Meeting
RCS will conduct a Citywide meeting, explaining the operational methodology of the study and the role of staff. We will review any possible issues that may arise as well as answer any questions from staff about the process. This meeting is crucial for the process as we want to ensure that everyone understands the various steps in the process and what is expected of them.

Cost Allocation Plan
Task 1: Identify Central Services and Allocate Staff Time RCS will meet with various departments to identify and review central services and allocate staff time and costs for those services. Examples of central services include payroll, risk management, and facility maintenance. City staff time involved in the meetings would be approximately 1-2 hours per central service department. 549
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Task 2: Develop Allocation Factors
RCS will meet with City staff to develop the allocation factors for each central service identified in the above task. These factors will form the basis for determining fully burdened hourly rates and allocating central service costs. This meeting will be concurrent with the time allocation meeting. Though City staff involvement in data gathering is a function of the availability of the required information, RCS will develop allocation factors that are easily reproducible from year to year but still equitably allocate central service costs. RCS will calculate allocations to the functional centers and review the results with the managers of the various central service departments.

City staff time to review the results of the allocations will be less than 1 hour per department.

Task 3: Prepare and Review Draft Cost Allocation Plan with City RCS will prepare a Draft Report with allocations to end user departments using our 20-step allocation model. RCS will review this Draft Report with the City’s management, making any necessary adjustments to ensure that costs are allocated properly.

Task 4: Prepare Final Cost Allocation Plan
RCS will then prepare a Final Report with allocations to end user departments. These results will be used for the general overhead component of the Fee Study and can also be used to determine the amounts for transfers to the General Fund for support provided to other funds. RCS will provide the City’s requested number of printed copies, as well as a PDF file of the Overhead Cost Allocation Study. RCS will also provide a computer-based model for adjusting these fees and charges for the City’s current and future needs, providing an electronic copy of the final study that can be edited and updated as needed. RCS will consult with City Staff as necessary to defend the cost allocation plan in the event of audits or other challenges. 550
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User Fee Study
Task 1: Review the Service List with Staff
RCS will review the service list through meetings with City staff. We will also work with Departmental staff to determine any changes to the fee calculation methods. The end result, whichever method is used, will be a fee structure that best fits the City going forward. While this list will change during the course of the Study as it is refined, it will be the initial basis from where we start. City staff time for this review will be approximately 1 hour per department.

Task 2: Staff Time/Contract Cost Allocations
RCS will interview personnel providing end-user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. There will be two to four meetings with supervisory level staff in each functional area to create and verify the amount of time spent by staff on the services identified in the task above.

We do not ask City staff to do our job by filling out forms detailing how they spend their time. This interactive process, and the fact that we allocate 100% of all departmental staff, ensures that the information being generated is valid and reliable.

Total time commitment per department varies from 2-20 hours, through a series of working meetings.

Task 3: Develop Fully Burdened Hourly Rates
RCS will develop a fully burdened hourly rate for each City employee, including salaries and benefits, miscellaneous operating services and supply costs, citywide overhead and departmental overhead.

Task 4: Prepare Draft Report
RCS will prepare a Draft Report that identifies the total costs for each service, along with current fees, and makes fee recommendations for each service presented as well potential new fees for services the City provides but does not charge for. Service costs will be compared with existing recovery levels. RCS will review this report with the departments so that each will have input on the fees presented in the Final Report.

City staff time would be approximately 1-2 hours per department for those departments that have fee services.

Task 5: Prepare Final Report
Based on staff input, RCS will prepare a Final Report, which will have recommendations for new fees, subsidy percentages and revenue projections from those fees. The Report will include text and summary tables that will clearly explain the results and the context. All recommended fees will comply with Propositions 4, 551
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218, 26 and any other applicable laws. RCS will provide ten bound copies, one unbound copy, and a Microsoft Word and PDF file of the Final Report. Any Master Fee Schedule revisions will also be made available in Word, Excel and/or PDF formats.

RCS will provide a computer-based model for adjusting these fees and charges for the City’s current and future needs, providing an electronic copy of the final study that can be edited and updated as the need arises and allowing for the requirements referred to in the City’s RFP. The Report will contain recommendations for methods to update the fees in ensuing years, such as CPI increases. RCS will consult with staff as needed to defend the fee study in the event of audits or other challenges.

Task 6: Survey Similar Municipalities
RCS will survey other municipalities and document the findings. The survey summary would compare similar fees for services at different cities, however our results cannot explain why the fees differ.

Task 7: Present Report to the City Council
RCS will assist City staff, the City Council and any Committee in the review and adoption of revised service fees and subsidy percentages, at up to three public meetings. RCS will assist City staff in the implementation of the revised service fees. 552
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PROJECT TIMELINE
RCS is available to begin work immediately with the proposed schedule outlined below. This schedule, of course, will require the cooperative participation of City staff.

ONSITE MEETINGSAND VIDEO CONFERENCING MEETINGS
RCS will utilize our Zoom account, or any video conferencing platform of the City’s choosing, to facilitate all working meetings. Our experience has determined that the use of video conferencing is more flexible in scheduling meetings, permitting City staff to quickly access reports and files on their computers, and allowing everyone to view and discuss the same documents at the same time. Department meetings will be 30 minutes to two hours each.

We would be on-site to present the report at all City Council meetings.

CLIENT INPUT
RCS will make every effort to advise, seek input from and, in general, explain the work as it is being performed. For a project to be completed successfully, we depend on dedicated and engaged staff participation. Most of the staff participation is to attend working meetings with RCS. There will be no “homework” to be completed and returned to us.

The City should also designate a Project Coordinator for the fee study who will:
1) Identify key City staff and coordinate the kick-off meeting(s), 2) Assist in obtaining requested information and scheduling meetings, and 3) Provide project directions if needed.

Project Timeline Month 1 Month 2 Month 3 Month 4
Cost Allocation Plan
Review of Central Services/Time
Review Allocation Factors
Review Draft Cost Allocation Plan
Prepare Final Cost Allocation Plan

User Fee Study
Obtain Budget & Personnel Data
Review Service List
Review Staff Time Allocations
Develop Fully Alloc. Hourly Rates
Review Draft & Final Report
Present to City Council
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THE RIGHT SOFTWARE
RCS developed and uses database software that is user-friendly and comprehensive. It includes a logical, easy-to-use interface and produces easy-to-understand reports. This Costing Software will allow the City to continuously update the Cost Allocation and User Fee Studies, as well as input hypothetical services to calculate the estimated costs of providing new services without the worry of incorrect formulas inherent in Excel-based systems.

For annual updates, our software allows for the editing of funding sources, staffing, benefits, services, allocation time and allocation factors. RCS’ software also produces easy-to-read reports and the ability to export data to Excel for further analysis.

Once the project is completed, RCS will ensure that the system and data files are properly installed at the City with no licensing limitations. RCS will provide training and lifetime support and offers annual fee updates as a service so that City staff can focus on other things

EXCEPTIONS
Indemnification –We request that the City reconsider the contract language with regards to the indemnification clause. The City’s current indemnification language is overly onerous and puts all the risk on RCS, regardless of if RCS made any errors. While we have no issue being responsible for our actions, we can’t be responsible where we did nothing wrong or for unsubstantiated claims. Therefore, we suggest the following indemnification language:
“Consultant shall indemnify the County, its elected officials, officers and employees from any judgements, and all liability including, but not limited to, monetary or property damage, lost profit, personal injury, wrongful death, general liability, infringement of copyright/patent/trademark, professional errors and omissions, investigative expenses, attorney fees, and court costs arising out of an error, a negligent act, or omission of the Consultant, or the willful misconduct of the Consultant in performing the services described in, or normally associated with, this type of contracted work.” General Liability – RCS has general liability coverage of $2 million per occurrence and $2 million annual aggregate. For the type of work we perform that has been acceptable to all our previous clients, and we suggest this level of coverage for this project.

RCS has no issues with the remainder of the City’s contract.

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COST FOR SERVICES
Revenue & Cost Specialists propose the following project costs.

Task Milestones/Deliverables Hours Total Cost
Cost Allocation Plan
Review Central Services/Times List of Central Services 8 1,560 Develop Allocation Factors Index of Allocation Factors 12 2,340 Initial Calculation Review Draft Cost Allocation Plan 16 3,120 Prepare Final Cost Allocation Plan Final Cost Allocation Plan 10 1,950 Cost Allocation Plan 46 $8,970
User Fee Study
Kick-Off Meeting Informational Meeting 4 780
Build Budget and Positions Schedule of Positions and Budget 8 1,560 Develop Service List Preliminary Service List 8 1,560
Develop Staff Time Allocations Time Detail Reports 40 7,800 Develop Fully Alloc. Hourly Rates Fully Alloc. Hourly Rate Reports 8 1,560 Develop Comparable Fee Surveys Fee Surveys 10 1,950
Prepare and Review Draft Report Draft Fee Study Report 24 4,680 Prepare Final Report Final Report 14 2,730
Public Meetings Presentations 8 1,560
User Fee Study 124 $24,180
PROJECT TOTAL 170 $33,150
The above proposal is based on a cost of $195 per hour. The billing rate for any additional work not covered by this proposal would be $225 per hour. Our proposal covers all costs except for the following additional costs that the City may incur:
 Meeting attendance beyond those identified in this proposal.  Insurance coverage beyond our basic general liability and workers compensation requiring an additional premium. RCS standard coverage includes workers compensation pursuant to state law, comprehensive liability Insurance with a combined single limit coverage of $2,000,000 and professional liability insurance with a combined coverage of $2,000,000.

RCS will submit four equal invoices plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten days after notice to proceed. Each invoice will be due within 30 days of submission.
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COUNCIL AGENDA ITEM
May 26, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: Consideration of a 90-Day Golf Course Consulting Services Agreement with Donovan Golf in an Amount Not-To-Exceed $19,500
BACKGROUND/ DISCUSSION:

On April 14, 2026, the City Council was provided a presentation on future options for the City owned Tierra Del Sol (TDS) Golf Course. The City Council provided the following direction:
• Pursue a management contract to reduce the general fund burden of TDS • Evaluate potential for a local lease consideration
• Establish a leak repair program
• Review security camera system
• Enhance advertising of the facility
• Engage youth involvement in programming
• Add a point-of-sale system and increase credit card acceptance • Ensure that the budget demonstrates like all other general fund accounts • Add additional part-time workers
• Provide options for concrete pad repair/abatement.

Based upon the information available from the City Council meeting, Donovan Golf made contact with the City and submitted a proposal for a, “90-Day Assessment, Stabilization & Revenue Growth Engagement” to address the majority of the City Council direction in advance of the release of a Request for Proposal (RFP) for management contract for TDS. The information below includes the Scope of Services proposed in the proposal:

During the Initial Term, Consultant shall perform a comprehensive assessment of the Facility and develop and begin implementation of a written plan to increase revenue and improve operations (the “Revenue Growth Plan”). The Services shall include, without limitation, the following:

Operational Assessment.
• Conduct a top-to-bottom on-site assessment of the Facility, including the golf course, clubhouse, pro shop, food and beverage operations, maintenance facilities, irrigation, cart fleet, driving range, and ancillary revenue centers.
•
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• Review historical financial statements, rounds played, average green fees, membership/pass data, vendor contracts, utility costs, and labor schedules for the prior thirty-six (36) months, to the extent records are available. • Benchmark Tierra del Sol against comparable municipal and daily-fee facilities in the Antelope Valley/Kern County region.
• Identify operational deficiencies, deferred maintenance, safety concerns, and immediate revenue leakage.

Operating Budget Development.
• Build a zero-based 12-month operating budget covering all revenue lines (green fees, cart fees, range, F&B, merchandise, events, memberships, range, and other) and expense categories (labor, COGS, course maintenance, water, utilities, repairs, marketing, general and administrative (G&A), insurance, and capital reserve). • Provide month-by-month cash flow projections and recommended monthly reporting package for the City Council and City Manager.
• Recommend revised green fee, cart fee, and pass card pricing structures (resident, nonresident, twilight, senior, junior, military, league, and tournament rates). • Provide a recommended capital reserve contribution schedule.

Marketing Plan.
• Develop a written 90-day and 12-month marketing plan including target customer segments, pricing strategy, promotional calendar, paid media budget, organic/social strategy, and email/customer relationship management (CRM) program. • Build a tournament, outing, and league acquisition plan, including outreach to corporate, charity, and military groups.
• Establish a measurable key performance indicator (KPI) dashboard (rounds, revenue per round, utilization, food and beverage (F&B) capture rate, repeat play, customer acquisition cost, and Net Promoter Score).
• Coordinate brand standards, signage, and on-course guest experience touchpoints.

Capital Improvements Assessment.
• Walk the entire property and produce a prioritized capital needs list categorized as (a) safety/code, (b) revenue-generating, (c) cost-saving, and (d) deferred maintenance. • Provide rough order-of-magnitude (ROM) cost estimates for each item and a recommended multi-year capital plan.
• Identify potential grants, public-private partnership opportunities and United States Golf Association (USGA), National Golf Foundation (NGF), and California Department of Parks and Recreation funding sources.
• Coordinate with City Public Works staff on items requiring municipal contracting, prevailing wage, or CEQA review. Consultant shall not undertake any capital construction work under this Agreement; Consultant’s services are limited to recommendations only. 557
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Technology — POS, Tee Sheet, and Website.
• Evaluate, recommend, and oversee installation of an integrated golf point-of-sale (POS) and tee sheet system (e.g., Lightspeed Golf, Club Prophet, foreUP, GolfNow G1, or comparable), subject to City procurement approval process. • Configure rate cards, tax tables, inventory, gift cards, and reporting; train staff on the new system; and migrate historical customer/booking data where available. • Design, deploy, and populate a modern, mobile-responsive website for Tierra del Sol with online tee-time booking, online merchandise/gift card sales, event inquiry forms, and integrated email capture. Domain ownership and all login credentials shall be in the City’s name.
• Establish Google Business Profile, Apple Business Connect, online review monitoring, and integrated booking links across third-party channels (GolfNow, Supreme Golf, Sagacity, etc.).
• Implement merchant processing and Payment Card Industry (PCI)-compliant data handling; recommend gift card and loyalty program structure.

Personnel Evaluation.
• Conduct individual evaluations of all paid employees and regular volunteers working at the Facility, including job descriptions, performance, certifications (e.g., pesticide applicator licenses, food handler cards), and compensation review against market. • Recommend an organizational chart, staffing model, scheduling practices, and labor cost targets (target labor as a percentage of revenue).
• Recommend training, cross-training, customer service standards, and uniform/appearance standards.
• All personnel decisions, including hiring, discipline, and termination, shall remain the sole responsibility of City. Consultant shall make recommendations only and shall not act as the employer of any City personnel. Consultant shall comply with all applicable laws and City policies including but not limited to City personnel rules, the Meyers-Milias-Brown Act, and any applicable memoranda of understanding (MOUs) with recognized employee organizations.

Reporting and Communication.
• Provide a written weekly status report to the City Manager or designee. • Attend bi-weekly check-in meetings with City staff (in person or by video conference). • Present a 30-day Interim Findings Report, a 60-day Draft Revenue Growth Plan, and a 90- day Final Revenue Growth Plan and Implementation Roadmap to the City Council in open session.

In addition to the contract cost of up to $18,000 plus up to $1500 in contingency, the City would be responsible for the costs of the POS, website, and other third-party costs payable directly to the third-party no the consultant.

The proposal was unsolicited and the City did not issue an RFP or seek multiple bids related to this contract proposal. Donovan Golf will be present at the meeting to present and answer questions on this item.
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FISCAL IMPACT:

The up to $19,500 cost of the contract would be paid for from the TDS Contracts account #40- 4566-630, while all other costs would be allocated as appropriate under the TDS fund under the City Manager’s purchasing authority.

RECOMMENDATION:

It is recommended that the City Council consider if the 90-Day Golf Course Consulting Services Agreement with Donovan Golf is appropriate for the future of the TDS Golf Course and either approve the contract and authorize the City Manager to execute it or provide other direction.

ATTACHMENTS:

Donovan Golf Contract
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GOLF COURSE CONSULTING SERVICES AGREEMENT
90-Day Assessment, Stabilization & Revenue Growth Engagement Tierra del Sol Golf Course — California City, California DRAFT — FOR DISCUSSION PURPOSES ONLY. SUBJECT TO REVIEW BY LEGAL COUNSEL FOR BOTH PARTIES.

THIS GOLF COURSE CONSULTING SERVICES AGREEMENT (the “Agreement”) is entered into as of [Effective Date] (the “Effective Date”), by and between the City of California City, a municipal corporation organized and existing under the laws of the State of California, with its principal place of business at 21000 Hacienda Boulevard, California City, California 93505 (“City” or “Owner”), and Donovan Golf, a California limited liability company with its principal place of business at 840 Apollo Street, El Segundo, CA 90245 (“Consultant”). City and Consultant are each referred to individually as a “Party” and collectively as the “Parties.”

RECITALS
WHEREAS, City owns and operates the Tierra del Sol Golf Course, a municipal 18-hole golf facility located in California City, California (“Tierra del Sol”’ or the “Course” or “Facility”); WHEREAS, City desires to retain experienced golf operations expertise to perform a comprehensive assessment of the Facility and to develop and begin implementing a plan to stabilize operations, increase revenue, control costs, and improve the guest experience for the benefit of City residents and visitors;
WHEREAS, Consultant is engaged in the business of providing golf course management, operations, and consulting services and represents that it possesses the experience, qualifications, and personnel necessary to perform the services described herein; WHEREAS, City and Consultant desire to enter into an initial ninety (90) day engagement under which Consultant will perform the Services described in this Agreement, with the option (but not the obligation) of either Party to negotiate a longer-term management or operations agreement upon completion of the initial term;
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. ENGAGEMENT AND TERM
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1.1 Engagement.

City hereby retains Consultant, and Consultant hereby accepts the engagement, to perform the consulting services described in Section 2 (the “Services”) on the terms and conditions set forth herein.

1.2 Term.

The term of this Agreement shall commence on the Effective Date and shall continue for a period of ninety (90) calendar days, unless earlier terminated in accordance with Section 10 (the “Initial Term”). The Parties may, by mutual written agreement, extend the Initial Term or enter into a successor agreement, including a long-term operations or management agreement; provided, however, that any such extension or successor agreement shall require City approval and shall be subject to all applicable public bidding and procurement requirements.

2. SCOPE OF SERVICES
During the Initial Term, Consultant shall perform a comprehensive assessment of the Facility and develop and begin implementation of a written plan to increase revenue and improve operations (the “Revenue Growth Plan”). The Services shall include, without limitation, the following:

2.1 Operational Assessment.
• Conduct a top-to-bottom on-site assessment of the Facility, including the golf course, clubhouse, pro shop, food and beverage operations, maintenance facilities, irrigation, cart fleet, driving range, and ancillary revenue centers. • Review historical financial statements, rounds played, average green fees, membership/pass data, vendor contracts, utility costs, and labor schedules for the prior thirty-six (36) months, to the extent records are available. • Benchmark Tierra del Sol against comparable municipal and daily-fee facilities in the Antelope Valley/Kern County region.
• Identify operational deficiencies, deferred maintenance, safety concerns, and immediate revenue leakage.

2.2 Operating Budget Development.
• Build a zero-based 12-month operating budget covering all revenue lines (green fees, cart fees, range, F&B, merchandise, events, memberships, range, and other) and expense categories (labor, COGS, course maintenance, water, utilities, repairs, marketing, general and administrative (G&A), insurance, and capital reserve). • Provide month-by-month cash flow projections and recommended monthly reporting package for the City Council and City Manager.
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• Recommend revised green fee, cart fee, and pass card pricing structures (resident, nonresident, twilight, senior, junior, military, league, and tournament rates). • Provide a recommended capital reserve contribution schedule.

2.3 Marketing Plan.
• Develop a written 90-day and 12-month marketing plan including target customer segments, pricing strategy, promotional calendar, paid media budget, organic/social strategy, and email/customer relationship management (CRM) program. • Build a tournament, outing, and league acquisition plan, including outreach to corporate, charity, and military groups.
• Establish a measurable key performance indicator (KPI) dashboard (rounds, revenue per round, utilization, food and beverage (F&B) capture rate, repeat play, customer acquisition cost, and Net Promoter Score).
• Coordinate brand standards, signage, and on-course guest experience touchpoints.

2.4 Capital Improvements Assessment.
• Walk the entire property and produce a prioritized capital needs list categorized as (a) safety/code, (b) revenue-generating, (c) cost-saving, and (d) deferred maintenance. • Provide rough order-of-magnitude (ROM) cost estimates for each item and a recommended multi-year capital plan.
• Identify potential grants, public-private partnership opportunities and United States Golf Association (USGA), National Golf Foundation (NGF), and California Department of Parks and Recreation funding sources.
• Coordinate with City Public Works staff on items requiring municipal contracting, prevailing wage, or CEQA review. Consultant shall not undertake any capital construction work under this Agreement; Consultant’s services are limited to recommendations only.

2.5 Technology — POS, Tee Sheet, and Website.
• Evaluate, recommend, and oversee installation of an integrated golf point-of-sale (POS) and tee sheet system (e.g., Lightspeed Golf, Club Prophet, foreUP, GolfNow G1, or comparable), subject to City procurement approval process. • Configure rate cards, tax tables, inventory, gift cards, and reporting; train staff on the new system; and migrate historical customer/booking data where available. • Design, deploy, and populate a modern, mobile-responsive website for Tierra del Sol with online tee-time booking, online merchandise/gift card sales, event inquiry forms, and integrated email capture. Domain ownership and all login credentials shall be in the City’s name.
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• Establish Google Business Profile, Apple Business Connect, online review monitoring, and integrated booking links across third-party channels (GolfNow, Supreme Golf, Sagacity, etc.).
• Implement merchant processing and Payment Card Industry (PCI)-compliant data handling; recommend gift card and loyalty program structure.

2.6 Personnel Evaluation.
• Conduct individual evaluations of all paid employees and regular volunteers working at the Facility, including job descriptions, performance, certifications (e.g., pesticide applicator licenses, food handler cards), and compensation review against market. • Recommend an organizational chart, staffing model, scheduling practices, and labor cost targets (target labor as a percentage of revenue). • Recommend training, cross-training, customer service standards, and uniform/appearance standards.
• All personnel decisions, including hiring, discipline, and termination, shall remain the sole responsibility of City. Consultant shall make recommendations only and shall not act as the employer of any City personnel. Consultant shall comply with all applicable laws and City policies including but not limited to City personnel rules, the Meyers-MiliasBrown Act, and any applicable memoranda of understanding (MOUs) with recognized employee organizations.

2.7 Reporting and Communication.
• Provide a written weekly status report to the City Manager or designee. • Attend bi-weekly check-in meetings with City staff (in person or by video conference). • Present a 30-day Interim Findings Report, a 60-day Draft Revenue Growth Plan, and a 90-day Final Revenue Growth Plan and Implementation Roadmap to the City Council in open session.

3. DELIVERABLES AND MILESTONE SCHEDULE
Consultant shall complete the following milestones during the Initial Term:

Day Milestone Deliverable Format
0–10 Kickoff, document/data request, site walk-through, key stakeholder interviews, baseline key performance
indicator (KPI) snapshot.

Memo
11–30 Interim Findings Report: operational assessment,
immediate quick-win recommendations, preliminary
budget draft.

Written report +
Council briefing
20–45 POS/Tee Sheet vendor selection, contract negotiation Recommendation 563
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Day Milestone Deliverable Format
support, project plan for installation and go-live. memo 30–60 Draft Revenue Growth Plan: operating budget, pricing, marketing plan, capital needs list, staffing
recommendations.

Written report
45–75 POS/Tee Sheet go-live; new website launch; staff
training complete.

System live + training
records
60–80 Personnel evaluations completed; recommended
organizational chart and staffing model delivered.

Confidential memo to
City Manager
80–90 Final Revenue Growth Plan and Implementation
Roadmap; close-out presentation to City Council in
open session.

Written report +
Council presentation

4. COMPENSATION AND EXPENSES

4.1 Consulting Fee.

In consideration of the Services, City shall pay Consultant a fixed consulting fee at the rate of Five Thousand Dollars ($5,000.00) per calendar month, for an aggregate total of Fifteen Thousand Dollars ($15,000.00) over the 90-day Initial Term (the “Fee”). Each monthly installment of the Fee covers one (1) calendar month of Services and shall be due and payable on the first (1st) day of the applicable calendar month. If the Effective Date is other than the first day of a calendar month, the first installment shall be prorated based on the number of days remaining in that calendar month and shall be due on the Effective Date.

The monthly installments are not contingent upon City’s acceptance of any specific deliverable, milestone, or report; provided, however, that City’s rights under Section 10 (Termination) and any remedies for material breach are not waived or limited by this provision.

4.2 Reimbursable Expenses.

City shall reimburse Consultant for reasonable, pre-approved out-of-pocket expenses, including travel, lodging, and mileage at the then-current IRS standard rate, up to a not-to-exceed cap of One Thousand Dollars ($1000.00) per month, for an aggregate maximum of Three Thousand Dollars ($3,000.00) over the 90-day Initial Term. Any single expense over $500 requires prior written approval by the City Manager. All requests for reimbursement must be submitted with original receipts on a monthly basis, and unused amounts in any given month shall not roll over to subsequent months without prior written approval by the City Manager.

4.3 Third-Party Costs.
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Costs for third-party software (POS/tee sheet subscription, website hosting, domain registration, merchant processing, marketing media buys, and similar) shall be paid directly by City to the vendor. Consultant shall not mark up or receive any rebate, commission, or referral fee from any vendor without prior written disclosure to and approval by the City Council, if required by law or the City Manager.

4.4 Invoicing and Payment.

Consultant shall submit monthly expenses, which shall be payable within thirty (30) days of receipt.

4.5 Maximum Compensation.

Notwithstanding anything to the contrary, the total compensation payable by City to Consultant under this Agreement, inclusive of fees and reimbursable expenses, shall not exceed Eighteen Thousand Dollars ($18,000.00) without a written amendment approved by the City Council. This cap applies only to amounts payable to Consultant; third-party vendor costs paid directly by City under Section 4.3 are separate and not counted against this cap.

5. PROPOSED ENGAGEMENT BUDGET FRAMEWORK
The table below sets forth an illustrative not-to-exceed budget framework for the 90-day engagement. Actual amounts shall be confirmed in a Notice to Proceed and amendment, if needed, to this Agreement.

Category Not-to-Exceed Paid To
Donovan Golf consulting fee (90 days @
$5,000/month, fixed)
$15,000 Consultant
Reimbursable travel & expenses (90 days @
$1,000/month)
$3,000 Consultant
POS/Tee Sheet software (setup, hardware, and 3-
month subscription)
$3,500 Software vendor
Website design, hosting, and domain (year 1) $2,500 Web vendor Initial digital marketing media buy (Google/Meta) —
90 days
$2,000 Ad platforms
Branding/signage refresh (priority items only) $2,500 Local vendors Contingency (≈10%) $1,500 —
TOTAL 90-DAY ENGAGEMENT BUDGET (NTE) $30,000 —
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Notes on the Budget Framework: Vendor amounts above are good-faith estimates based on typical pricing for small municipal facilities and are subject to actual quotes obtained during procurement. Donovan Golf will assist City in soliciting quotes and selecting vendors, but all third-party contracts will be issued by, and paid directly by, City. The Donovan Golf compensation amounts (consulting fee and reimbursable expenses, totaling $18,000) are fixed and capped under Sections 4.1, 4.2, and 4.5.

6. CITY OBLIGATIONS AND ACCESS
To enable Consultant to perform the Services, City shall:
• Designate a single point of contact (the “City Representative”), expected to be the City Manager or designee, with authority to make day-to-day decisions and approvals. • Provide reasonable access during normal business hours to the Facility, all books and records, financial statements, vendor contracts, employee files (subject to applicable privacy laws), and all systems necessary for performance of the Services. • Cooperate in good faith and respond to reasonable information requests within five (5) business days.
• Make timely decisions on matters requiring City approval, including procurement of POS/tee sheet software, website services, and any related contracts.

7. INDEPENDENT CONTRACTOR
Consultant is and shall at all times remain an independent contractor and not an employee, agent, partner, or joint venturer of City. Consultant shall be solely responsible for all federal, state, and local taxes, workers’ compensation, unemployment insurance, and other obligations relating to its personnel. Consultant has no authority to bind City to any contract or obligation, and shall not represent that it has such authority.

8. CONFIDENTIALITY AND PUBLIC RECORDS

8.1 Confidentiality.

Each Party shall use information disclosed by the other Party that is marked or reasonably understood to be confidential (“Confidential Information”) solely for the purpose of performing this Agreement, and shall protect such information using the same standard of care it uses to protect its own confidential information, but in no event less than reasonable care. Confidential Information includes, without limitation, personnel files, customer lists, financial data, vendor pricing, and security information.

8.2 Public Records Act.
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Consultant acknowledges that City is a public agency subject to the California Public Records Act (Government Code § 7920.000 et seq.). Records held by City relating to this Agreement may be subject to disclosure. Consultant shall clearly mark any materials it believes are exempt from disclosure as “Trade Secret” or “Confidential”; however, City makes no representation that such designation will protect the materials from disclosure if compelled by law.

8.3 Personnel Privacy.

All personnel evaluation materials shall be treated as confidential personnel records under Government Code § 7927.700 and applicable case law. Consultant shall handle such information consistent with City personnel rules and shall not disclose it to any third party without the prior written approval of the City Manager.

9. OWNERSHIP OF WORK PRODUCT
All reports, plans, budgets, marketing materials, customer data, photographs, designs, website content, and other deliverables created by Consultant specifically for City under this Agreement (collectively, “Work Product”) shall, upon payment in full, become the sole and exclusive property of City. Consultant hereby assigns to City all right, title, and interest in and to such Work Product. Pre-existing materials, methodologies, templates, and tools owned by Consultant prior to the Effective Date (“Consultant Background IP”) shall remain the property of Consultant; Consultant grants City a perpetual, royalty-free, non-exclusive license to use Consultant Background IP solely as embedded in the Work Product. Domain names, social media accounts, POS data, customer lists, and merchant processing accounts opened or operated for the Facility are at all times the property of City.

10. TERMINATION

10.1 Termination for Convenience.

City may terminate this Agreement, in whole or in part, for any reason or no reason, upon ten (10) days’ prior written notice to Consultant. In such event, Consultant shall be entitled to compensation for Services satisfactorily performed and reimbursable expenses reasonably incurred through the effective date of termination, but shall not be entitled to anticipated profits on un-performed Services.

10.2 Termination for Cause.

Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within ten (10) days following written notice describing the breach in reasonable detail.

10.3 Effect of Termination.
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Upon any termination, Consultant shall promptly deliver to City all Work Product (whether complete or in progress), Confidential Information, files, records, passwords, and credentials.

Sections 8 (Confidentiality), 9 (Work Product), 11 (Indemnification), 12 (Insurance), and 14 (General Provisions) shall survive termination.

11. INDEMNIFICATION
To the fullest extent permitted by law, Consultant shall indemnify, defend (with counsel reasonably acceptable to City), and hold harmless City, its City Council, officers, officials, employees, volunteers, and agents from and against any and all claims, demands, actions, losses, liabilities, damages, costs, and expenses (including reasonable attorneys’ fees and litigation costs) arising out of or in connection with (a) the negligent acts, errors, or omissions or willful misconduct of Consultant, its employees, agents, or subcontractors in the performance of the Services; (b) any breach of this Agreement by Consultant; or (c) any infringement of thirdparty intellectual property rights by Work Product delivered by Consultant. Consultant’s indemnification obligations shall not extend to claims caused solely by the negligence or willful misconduct of City.

12. INSURANCE
Throughout the Term, Consultant shall maintain, at its sole expense, the following insurance and shall furnish certificates and additional-insured endorsements naming City and its officers, officials, employees, and volunteers as additional insureds (except for Workers’ Compensation and Professional Liability):
• Commercial General Liability: not less than $2,000,000 per occurrence / $4,000,000 aggregate.
• Automobile Liability (any auto): not less than $1,000,000 combined single limit. • Workers’ Compensation: statutory limits, with Employer’s Liability of not less than $1,000,000.
• Professional Liability (Errors & Omissions): not less than $1,000,000 per claim. • Cyber Liability: not less than $1,000,000 per claim, given Consultant’s involvement with POS, customer data, and website.

Coverage shall be primary and non-contributory with respect to any insurance maintained by City. Consultant shall provide thirty (30) days’ written notice prior to cancellation or material reduction of coverage.

13. CALIFORNIA-SPECIFIC PROVISIONS

13.1 Compliance with Laws.
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Consultant shall comply with all federal, state, and local laws, rules, and regulations applicable to the Services, including, without limitation, the California Labor Code, the California Fair Employment and Housing Act, the California Consumer Privacy Act/CPRA, and all applicable City ordinances.

13.2 Conflict of Interest.

Consultant warrants that no member of the City Council, officer, or employee of City has any direct or indirect financial interest in this Agreement in violation of Government Code § 1090 or the Political Reform Act. If determined by the City Attorney to be required, Consultant and any of its principals or sub-consultants designated as “consultants” under FPPC Regulation 18700.3 shall file a Statement of Economic Interests (Form 700).

13.3 Non-Discrimination.

Consultant shall not discriminate against any employee, applicant for employment, or person served on the basis of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, age, disability, medical condition, genetic information, military or veteran status, or any other protected classification under applicable law.

13.4 Prevailing Wage.

The Parties acknowledge that the Services are professional consulting services and are not “public works” under California Labor Code § 1720. To the extent any portion of the Services is later determined to constitute a public work, Consultant shall comply with all applicable prevailing wage and apprenticeship requirements, and shall indemnify City for any failure to do so.

13.5 Brown Act.

Consultant acknowledges that meetings of the City Council and certain City advisory bodies are subject to the Ralph M. Brown Act (Government Code § 54950 et seq.). Consultant shall coordinate with the City Clerk on the timing and posting of any presentations to the City Council.

14. GENERAL PROVISIONS

14.1 Notices.

All notices required or permitted under this Agreement shall be in writing and delivered by personal delivery, certified mail (return receipt requested), or recognized overnight courier to the addresses set forth in the preamble, or to such other address as a Party may designate in writing. Notice by email shall be effective only if confirmed in writing.

14.2 Assignment.
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Consultant shall not assign or subcontract this Agreement, or any portion thereof, without the prior written consent of City, which may be withheld in City’s sole discretion. Any attempted assignment without such consent is void.

14.3 Governing Law; Venue.

This Agreement shall be governed by and construed under the laws of the State of California, without regard to conflict-of-law principles. Venue for any action arising out of or relating to this Agreement shall be exclusively in the state courts located in Kern County, California, or the United States District Court for the Eastern District of California.

14.4 Dispute Resolution.

Before initiating litigation, the Parties shall meet and confer in good faith to attempt to resolve any dispute. If the dispute is not resolved within thirty (30) days, the Parties may, by mutual agreement, submit the matter to non-binding mediation before resorting to litigation.

14.5 Entire Agreement; Amendment.

This Agreement constitutes the entire agreement of the Parties with respect to its subject matter and supersedes all prior negotiations, representations, and agreements. This Agreement may be amended only by a written instrument signed by both Parties; amendments materially increasing City’s financial obligations may require City Council approval.

14.6 Severability.

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

14.7 Counterparts; Electronic Signatures.

This Agreement may be executed in counterparts, each of which shall be deemed an original.

Signatures delivered by PDF or recognized electronic signature platform (e.g., DocuSign, Adobe Sign) shall be deemed originals.

14.8 Authority.

Each person signing below represents and warrants that he or she has full authority to bind the Party on whose behalf he or she signs.

SIGNATURES
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

CITY OF CALIFORNIA CITY
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By: _________________________________
Name: [Name]
Title: City Manager
Date: ______________________________
APPROVED AS TO FORM:

By: _________________________________
Name: [Name], City Attorney
Date: ______________________________
ATTEST:

By: _________________________________
Name: [Name], City Clerk
Date: ______________________________

DONOVAN GOLF
By: _________________________________
Name: Daniel Donovan
Title: Managing Member
Date: ______________________________
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EXHIBIT A — KEY PERFORMANCE INDICATORS (KPIs)
Consultant shall track and report on, at minimum, the following KPIs throughout the Initial Term and shall recommend ongoing tracking by City staff thereafter:
• Total rounds played (resident, non-resident, twilight, league, tournament). • Average revenue per round (gross and net of pass play). • Tee-sheet utilization rate (booked / available).
• F&B revenue per round and capture rate.
• Merchandise revenue per round and inventory turn.
• Online booking percentage of total bookings.
• Email list size and email engagement rates.
• Google review count and average star rating.
• Net Promoter Score (NPS).
• Labor cost as a percentage of revenue.
• Water and utility cost per round.
• EBITDA / cash-flow before debt service and capital.
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EXHIBIT B — INITIAL DOCUMENT AND DATA REQUEST
Within ten (10) business days of the Effective Date, City shall provide the following to Consultant, to the extent such records exist and are accessible:
• Audited and unaudited financial statements for the last 36 months. • Monthly rounds-played reports and revenue reports for the last 36 months. • Current and prior year operating budgets.
• Current rate card and pricing history.
• All vendor and service contracts (maintenance, water, leases, equipment, F&B, merchant processing, GolfNow/third-party tee-time agreements, etc.). • Employee roster, job descriptions, pay ranges, and applicable MOUs. • Volunteer roster and any volunteer agreements or waivers. • Capital improvement plans, agronomic plans, and irrigation/well reports. • Water rights documentation and recent water/utility bills (last 24 months). • Insurance policies covering the Facility.
• Any prior consulting reports, master plans, or NGF studies. • Marketing assets: logos, photography, prior ad creative, social media credentials, email/CRM exports.
• All POS, tee-sheet, and merchant processing access credentials and historical data exports.
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NOTES TO THE PARTIES
This document is a working draft prepared as a starting point for negotiation. Before execution, the Parties should:
• Have the City Attorney review for compliance with the City’s purchasing ordinance, insurance requirements, indemnification language, and conflict-of-interest disclosures (Form 700 designation).
• Confirm whether City Council approval is required (typically yes for any contract above the City Manager’s spending authority).
• Insert the agreed Fee, Expense Cap, NTE total, and Effective Date. • Confirm Consultant’s legal entity name, state of formation, and address. • Confirm whether the Facility has any existing concession, lease, or management agreements that need to be addressed or terminated before this engagement begins. • Determine whether a separate scope-of-work amendment is needed for the POS/teesheet and website procurements (which may have their own bidding requirements). 574
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SUCCESSOR AGENCY

AGENDA ITEM
May 26, 2026
TO: Members of the Successor Agency Board (City Council) FROM: Sean Grayson, City Manager
SUBJECT: 1) Adoption of Successor Agency Resolution 26-3226 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
BACKGROUND/ DISCUSSION:

The City Council of the City of California City serves as the governing board of the Successor Agency to the City of California City Redevelopment Agency. The Successor Agency owns a property with Assessor’s Parcel No. 205-330-04-00-1 and located at 20890 Hacienda Blvd, California City, CA 93505 (“Property”). The Property was utilized by the City of California City as a fire station for its Fire Department. However, the City has and/or is in the process of transitioning the Fire Department into the Kern County Fire Department so that fire protection services for the City will be provided by the Kern County Fire Department.

Because of this transition, the Successor Agency no longer requires the use of the Property and desires to transfer the Property to Kern County for the County’s continued use thereof as a fire station. However, the Surplus Land Act requires the Successor Agency to declare the Property as surplus and to follow certain procedures prior to disposition, such as offering the Property to residential developers. However, the Successor Agency would not be required to follow those procedures if the Property is also declared “exempt surplus”.

One exemption that is applicable is a local agency to agency transfer where a property is transferred from one public agency to another public agency for the latter agency’s use pursuant to Government Code Section 54221(f)(1)(D) and Section 103(c)(5) of Department of Housing and Community Development’s Surplus Land Act Guidelines.

In order to utilize this exemption, the Successor Agency would have to declare the Property as “exempt surplus” at a public meeting as supported by facts. The attached Resolution, if adopted, 575
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would accomplish this result. After making this declaration, the Resolution and supporting documentation will need to be submitted to the Department of Housing and Community Development (“HCD”) at least 30 days prior to transferring the Property to the County. If HCD does not object to this declaration, then the Property may be transferred to the County for fire station purposes.

This item was deferred for approval on April 14, 2026, and April 28, 2026, by the City Council, who directed that the topic be discussed with the SDI Committee along with other considerations.

Separate initial meetings with the individual SDI Committee members have been conducted, and additional meetings are anticipated prior to a convening of the committee at a future date. This action has been modified from the previous presentations to omit authorization to execute the deed and transfer the property. The action now only authorizes the declaration of surplus and transmittal to HCD. Further action of the City Council would be required to transfer the property FISCAL IMPACT:

None with this action. The value of the fire station and property was integrated in the fire services contract with Kern County, resulting in reduced costs to the City during the initial years of the agreement.

RECOMMENDATION:

Staff recommends that the City Council, acting as the Successor Agency Board, adopt Resolution No. 26-3226.

ATTACHMENTS:

1. Resolution 26-3226
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RESOLUTION NO. 3226

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE

CALIFORNIA CITY REDEVELOPMENT AGENCY 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
WHEREAS, the City Council of the City of California City serves as the governing board of the Successor Agency to the City of California City Redevelopment Agency (“Agency”); and
WHEREAS, the Agency owns that certain property with Assessor’s Parcel No. 205-330-04-00-1 and located at 20890 Hacienda Blvd, California City, CA 93505, as described further in Exhibit A and depicted in Exhibit B, which are attached hereto and incorporated herein by this reference (“Property””); and WHEREAS, under the Surplus Land Act, Government Code Sections 54220- 54233 (“Act”), surplus land is land owned by the Agency for which the Agency Board takes formal action in a regular public meeting declaring the land is surplus and not necessary for the Agency’s use; and
WHEREAS, the Act provides that such land shall be declared either surplus land or exempt surplus land before the Agency may take action to dispose of it consistent with the Agency’s policies or procedures; and
WHEREAS, pursuant to the Act, land is necessary for the Agency’s “agency use” if the land is being used, or is planned to be used pursuant to a written plan adopted by the Agency Board, for Agency work or operations; and
WHEREAS, under the Act, land is exempt surplus property if it is surplus land that is to be transferred 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 (“SLA Guidelines”); and WHEREAS, Section 104(a) of the SLA Guidelines further provide that “agency’s use” includes, but is not limited to, “land that is being used for agency work or operations, land that a local agency plans to use for agency work or operations 577
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pursuant to a written plan adopted by the local agency’s governing board, or land that is disposed of for agency work or operations”; and
WHEREAS, the Property is designated as governmental use and was previously used as a fire station for the City of California City’s Fire Department; and WHEREAS, the City of California City has transitioned its Fire Department to the County of Kern such that the County of Kern will provide fire protection services to the City and the County of Kern desires to continue using the Property as a fire station; and WHEREAS, based upon the forgoing, the Property is no longer necessary for the Agency’s agency use; and
WHEREAS, the Agency desires to transfer the Property to the County of Kern pursuant to Government Code Section 54221(f)(1)(D) and Section 103(c)(5) of the SLA Guidelines such that the County of Kern may continue utilizing the Property as a fire station; and
WHEREAS, because the County of Kern will be providing fire protection services to the City, County of Kern desires to accept the Property for the purposes of a fire station; and
WHEREAS, in declaring the Property as exempt surplus land as described above, the Agency considered all oral and written testimony presented at the May 26, 2026, Agency meeting, including, but not limited to, oral and written staff reports and oral and written testimony from members of the public.

NOW THEREFORE, THE SUCCESSOR AGENCY TO THE CALIFORNIA CITY

REDEVELOPMENT AGENCY DOES HEREBY FINDS, DETERMINES, RESOLVES, AND ORDER AS FOLLOWS:

SECTION 1. The recitals set forth above are true and correct, and incorporated herein by this reference.

SECTION 2. Designation of the Property as exempt surplus does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378. Adoption of the Resolution does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. If and when the Property is sold to a purchaser, and that purchaser proposes a use for the Property that requires a discretionary permit and CEQA review, that future use and project will be analyzed at the appropriate time in accordance with CEQA.

SECTION 3. The City Council makes the following findings:
(a) None of the characteristics listed under Government Code Section 578
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54221(f)(2), apply to the Property. The Property is not:
(i) Within a coastal zone.
(ii) Adjacent to a historical unit of the State Parks System. (iii) Listed on, or determined by the State Office of Historic Preservation to be eligible for, the National Register of Historic Places. (iv) Within the Lake Tahoe region as defined in Government Code Section 66905.5.
(b) The Property is no longer necessary for the Agency’s use within the meaning of the term “agency’s use” as defined by the Act. (c) The Agency desires to transfer the Property to the County of Kern and the County of Kern desires to accept the Property for the County of Kern’s agency use of a fire station because the County of Kern is or will be providing fire protection services to the City of California City.

SECTION 4. Based upon the forgoing, the Agency hereby declares that the Property, as described and depicted in Exhibits A and B, is exempt surplus land for the purposes of the Act, because the Property is no longer necessary for the Agency’s “agency’s use” as defined by the Act and the Agency desires to transfer the Property to Kern County for its “agency’s use” of a fire station pursuant to and in compliance with Government Code Section 54221(f)(1)(D) and Section 103(c)(5) of SLA Guidelines.

SECTION 5. The City Manager, acting as the Agency’s Executive Director, and his or her designee, is hereby authorized to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution in a manner consistent with the Act, and any such actions previously taken are hereby ratified and confirmed.

SECTION 6. The Agency Secretary shall certify the adoption of this Resolution and enter it into the Book of Resolutions.

PASSED AND ADOPTED this 26th day of May, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________________
Marquette E. Hawkins
Chair
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ATTEST:
_________________________________
John Paul Maier, MBA, MMC
Successor Agency Secretary
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EXHIBIT A

LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

CALIFORNIA CITY, COUNTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

LOT 6 OF TRACT 5634 IN THE CITY OF CALIFORNIA CITY, COUNTY OF KERN, STATE OF CALIFORNIA, AS PER MAP RECORDED JUNE 25, 1993 IN BOOK 40, PAGES 128 AND 129 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING THEREFROM AN UNDIVIDED 1/2 OF ALL OIL, GAS AND OTHER

MINERALS CONTAINED WITHIN SAID PROPERTY, WHETHER NOW KNOWN TO

EXIST OR HEREAFTER DISCOVERED, AS RESERVED BY M & R SHEEP COMPANY, A CO PARTNERSHIP COMPOSED OF G. MENDIBURU AND OSCAR RUDNICK, IN DEED RECORDED DECEMBER 27, 1956 IN BOOK 2707, PAGE 540 OF OFFICIAL RECORDS, WHICH DEED PROVIDES AS FOLLOWS:
"TOGETHER WITH THE RIGHT TO PRODUCE, MINE, EXTRACT AND REMOVE OIL,

GAS AND OTHER MINERALS UPON, FROM AND THROUGH SAID PROPERTY, BUT UNLESS FREMONT VALLEY LAND, INC., A CORPORATION, ITS

SUCCESSORS AND ASSIGNS, SHALL GIVE WRITTEN CONSENT TO THE

DRILLING OF WELLS UPON THE SURFACE OF SAID LAND, ALL OF THE

FOREGOING RIGHTS SHALL BE EXERCISED ONLY BY THE DRILLING OF WELLS

OR CONDUCTING OPERATIONS IN, TO AND THROUGH SAID PROPERTY AT DEPTHS BELOW 500 FEET FROM THE SURFACE AND FROM LOCATIONS ON

ADJACENT OR NEIGHBORING LANDS, AND IN SUCH MANNER AS TO NOT DISTURB THE SURFACE OF THE FIRST 500 FEET OF THE SUBSURFACE OF SAID

PROPERTY OR ANY OF THE IMPROVEMENTS LOCATED ON THE SURFACE THEREOF."
ALSO EXCEPTING THEREFROM AN UNDIVIDED 1/2 OF ALL OIL, GAS AND OTHER

MINERALS CONTAINED WITHIN SAID PROPERTY, WHETHER NOW KNOWN TO

EXIST OR HEREAFTER DISCOVERED, TOGETHER WITH THE RIGHT TO

PRODUCE, MINE, EXTRACT AND REMOVE OIL, GAS AND OTHER MINERALS

UPON, FROM AND THROUGH SAID PROPERTY, AS EXCEPTED AND RESERVED IN THE DEED FROM PAUL S. THOMAS AND ESTHER MAY THOMAS, HUSBAND AND WIFE; HAROLD E. THOMAS AND BLANCHE EVELYN THOMAS, HUSBAND AND WIFE; AND LOIS M. RALLS, A MARRIED WOMAN, RECORDED MARCH 25, 1957 IN BOOK 2753, PAGE 33 OF OFFICIAL RECORDS, WHICH DEED PROVIDES

THAT UNLESS GRANTEE, ITS SUCCESSORS AND ASSIGNS, SHALL GIVE

WRITTEN CONSENT TO THE DRILLING OF WELLS UPON THE SURFACE OF SAID

LAND, ALL OF THE FOREGOING RIGHTS SHALL BE EXERCISED ONLY BY THE

DRILLING OF WELLS OR CONDUCTING OPERATIONS INTO AND THROUGH SAID PROPERTY AT DEPTHS BELOW 500 FEET FROM LOCATIONS ON ADJACENT OR 581
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NEIGHBORING LANDS, IN SUCH MANNER AS NOT TO DISTURB THE SURFACE (OR THE FIRST 500 FEET OF THE SUB-SURFACE) OF SAID PROPERTY OR ANY IMPROVEMENTS LOCATED UPON THE SURFACE THEREOF.

ALSO EXCEPTING THEREFROM 1/4 OF ALL OIL, GAS AND OTHER MINERALS

BUT WITHOUT THE RIGHT TO ENTER ANY PORTIONS OF SAID LAND LYING ABOVE A DEPTH OF 500 FEET BELOW THE SURFACE THEREOF, IN AND UNDER

SAID LAND, AS GRANTED TO CALIFORNIA CITY DEVELOPMENT COMPANY, A CALIFORNIA CORPORATION, TRUSTEE, IN DEED RECORDED AUGUST 26, 1959 IN BOOK 3183, PAGE 296 OF OFFICIAL RECORDS.

Tax Account No(s): 205-330-04-00-1
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EXHIBIT B

PROPERTY DEPICTION
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COUNCIL AGENDA ITEM
May 26, 2026
TO: Honorable Mayor and City Council
FROM: Mayor Marquette Hawkins

SUBJECT: 1) Resolution 26-3249 A Resolution of the City Council of The City of California City Approving Appointment of One (1) Commissioner to The City’s Parks and Recreation Commission; and 2) Resolution 26-3250 A Resolution of the City Council of The City of California City Approving Appointment of One (1) Commissioner to The City’s Planning Commission BACKGROUND/ DISCUSSION:

The City received applications for commissioners to serve on the California City Parks and Recreation Commission as established in Title 2, Chapter 2, Article 8 of the municipal code and to serve on the California City Planning Commission as established in Title 2, Chapter 2, Article 2 of the municipal code. After reviewing the candidates, I am recommending that:

1. Nisha White be appointed to the Parks and Recreation Commission with a term of May 1, 2026- April 30, 2028. Adoption of Resolution 26-3249 will appoint Ms. White to the Parks and Recreation Commission and the City Clerk will be directed to take all necessary actions to seat Ms. White including administering the applicable oath of office; and

2. Carina Perez be appointed to the Planning Commission with a term of May 1, 2026- April 30, 2028. Adoption of Resolution 26-3250 will appoint Ms. Perez to the Planning Commission, and the City Clerk will be directed to take all necessary actions to seat Ms.

Perez, including administering the applicable oath of office.

RECOMMENDATION:

That the City Council adopt the Resolutions 26-3249 and 26-3250. 584
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RESOLUTION NO. 26-3249

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY APPROVING APPOINTMENT OF ONE (1) COMMISSIONER TO THE CITY’S PARKS

AND RECREATION COMMISSION
WHEREAS, the City of California City (“City”) Parks and Recreation Commission (“Commission”) is governed by the California City Municipal Code (“CCMC”) and State law; and
WHEREAS, pursuant to CCMC section 2-2.103, the Commission is comprised of five members; and
WHEREAS, pursuant to CCMC section 2-2.104(b), the terms of office for members of the Commission (“Commissioners”) are for a period of two (2) years or until their successors are appointed; and
WHEREAS, as of May 1, 2026 there is one vacancy on the Parks and Recreation Commission; and
WHEREAS, the Council desires to appoint a Commissioner to the Commission effective immediately; and
WHEREAS, the Mayor has recommended that the following resident be considered for appointment to the Commission: Inishia White
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of California City authorizes the following:

1. Inishia White is appointed to serve on the City of California City Parks and Recreation Commission for a two (2) year term from May 1, 2026, through April 30, 2028; and

2. The Resolution is effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED on this 26th day of May 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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Dr. 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
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RESOLUTION NO. 26-3250

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY APPROVING APPOINTMENT OF ONE (1) COMMISSIONER TO THE CITY’S

PLANNING COMMISSION
WHEREAS, the City of California City (“City”) Planning Commission (“Commission”) is governed by the California City Municipal Code (“CCMC”) and State law; and WHEREAS, pursuant to CCMC section 2-2.103, the Commission is comprised of five members; and
WHEREAS, pursuant to CCMC section 2-2.104(b), the terms of office for members of the Commission (“Commissioners”) are for a period of two (2) years or until their successors are appointed; and
WHEREAS, as of May 1, 2026 there is one vacancy on the Planning Commission; and WHEREAS, the Council desires to appoint a Commissioner to the Commission effective immediately; and
WHEREAS, the Mayor has recommended that the following resident be considered for appointment to the Commission: Karina Perez
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of California City authorizes the following:

1. Karina Perez is appointed to serve on the City of California City Planning Commission for a two (2) year term from May 1, 2026, through April 30, 2028; and

2. The Resolution is effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED on this 26th day of May 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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Dr. 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
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COUNCIL AGENDA ITEM
May 26, 2026
TO: Mayor and City Council
FROM: Sean Grayson, City Manager
SUBJECT: Consideration of an Interim Urgency Ordinance 26-833 of the California City City Council Adopted Pursuant to Government Code § 65858 Imposing a Temporary Moratorium on the Approval of New Cannabis Businesses and the Expansion of Existing Cannabis Businesses, and Making Findings of Urgency
BACKGROUND/ DISCUSSION:

During AB1234 reporting at the April 28, 2026, City Council meeting, the City Council provided direction to the City Manager to bring back a report on a potential moratorium on the issuance of Cannabis permits in the City.

Government Code § 65858 allows the City to adopt a zoning urgency ordinance that would temporarily prohibit new cannabis uses and approvals, including pending but unapproved applications. Such an interim urgency ordinance must clearly identify the immediate threat posed by additional approvals under the current rules. The articulated issues under the current rules include:
• Odor control issues with and without required filtration systems impacting large portions of the community.
• Spot zoning allowances that can and have located cannabis businesses immediately adjacent to developed residential areas.
• Environmental review and compliance issues related to cannabis specific development activities.
• Enforcement structure and taxation processes that are burdensome on staff. • Public Safety concerns for operating facilities and for locations after the closure of cannabis businesses.
• Lack of permanent utility options for some permissive zoned parcels. • Lack of administrative capacity to permit, renew, inspect, enforce, and collect taxation subject to the current municipal code.

The attached interim urgency ordinance would satisfy the requirements of the government code and includes the articulated issues as immediate threat posed by additional approvals under the current rules. If adopted the interim urgency ordinance would go into effect immediately for 45- days. Government Code § 65858 does not allow the City to discontinue application processing entirely. During the 45-day moratorium, and longer if extended, the City would hold in abeyance 589
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applications. Staff would accept and screen applications, but defer hearings and decisions until the moratorium is lifted. There would not be an impact on existing cannabis businesses operating under a current cannabis permit.

Government Code § 65858(d) requires that the City produce a written report that must be issued at least 10 days before the initial 45-day ordinance expires and it must describe the measures taken to alleviate the conditions that led to adoption of the moratorium. The report will explain what staff reviewed during the 45-day period, what code amendments or policy options are being considered, what facts or data continue to support concern, and, if additional time is need to complete the City’s analysis, why additional time is needed as an extension of the urgency ordinance prior to adopting permanent regulatory changes.

The City Council may immediately adopt the interim urgency ordinance at the May 26, 2026, meeting or a subsequent City Council meeting. Adoption requires a 4/5 vote of the City Council.

The interim urgency ordinance would be in effect for 45 days. Should the City desire to extend the interim urgency ordinance it may do so at a noticed public hearing prior to the 45-day expiration where the required report would be provided. Upon a 4/5 vote of the City Council for approval the interim urgency ordinance could be extended to 10 months and 15 days. Prior to the end of the 10- month 15-day extension, the City Council could extend the interim urgency ordinance at a second noticed public hearing for a total length of 2 years.

FISCAL IMPACT:

Adoption of the interim urgency ordinance would likely reduce Cannabis Permit revenue and Cannabis Tax revenue during the moratorium. The extent of the reductions is unknown but would be limited to the lost opportunity of new cannabis businesses and the expansion of existing cannabis businesses.

RECOMMENDATION:

It is recommended that the City Council receive a report from staff and provide direction with regard to the Ordinance and its adoption.

ATTACHMENTS:

Interim Urgency Ordinance 26-833 – Cannabis Business Moratorium 590
ORDINANCE 26-833

AN INTERIM URGENCY ORDINANCE OF THE CALIFORNIA CITY

CITY COUNCIL ADOPTED PURSUANT TO GOVERNMENT CODE
§ 65858 IMPOSING A TEMPORARY MORATORIUM ON THE

APPROVAL OF NEW CANNABIS BUSINESSES AND THE

EXPANSION OF EXISTING CANNABIS BUSINESSES, AND

MAKING FINDINGS OF URGENCY

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. FINDINGS. The California City City Council finds and declares:

A. Government Code § 65858 authorizes an interim urgency ordinance to prohibit uses that may conflict with a zoning proposal the City is studying or intends to study.

B. The City of California City (“CCMC”) regulates cannabis businesses under California City Municipal Code (“CCMC”) Titles 5 and 9. Cannabis businesses require a permit and must comply with zoning and locational standards.

C. The City has approved some cannabis businesses and is processing additional applications that have not yet been approved.

D. The City has identified impacts from cannabis businesses, including land use compatibility, clustering, public safety, odor, traffic, enforcement demands, and administrative capacity, including
a. Odor control issues with and without required filtration systems impacting large portions of the community.
b. Spot zoning allowances that can and have located cannabis businesses immediately adjacent to developed residential areas.
c. Environmental review and compliance issues related to cannabis specific development activities.
d. Enforcement structure and taxation processes that are burdensome on staff.
e. Public Safety concerns for operating facilities and for locations after the closure of cannabis businesses.
f. Lack of permanent utility options for some permissive zoned parcels. g. Lack of administrative capacity to permit, renew, inspect, enforce, and collect taxation subject to the current municipal code.

E. The City is studying amendments to its zoning and related regulations for cannabis businesses, including zones, location, spacing, buffering, operations, 591
enforcement, and potential limits. These amendments may conflict with approvals allowed under current regulations.

F. Approving additional cannabis businesses before completing this study could create land use patterns and impacts that conflict with future regulations and City planning objectives.

G. Pending applications heighten this risk because they may proceed under current rules.

H. The City Council finds a current and immediate threat to the public health, safety, and welfare, and finds that approving additional cannabis business permits, land use entitlements, building permits, or other approvals would result in that threat, because those approvals would allow cannabis businesses to proceed under regulations the City is actively reviewing for adequacy.

I. This interim urgency ordinance (“Ordinance”) preserves the status quo while the City completes its study.

J. The City adopts this Ordinance under its police power to protect the public health, safety, and welfare.

SECTION 2. FINDINGS. The Ordinance temporarily prohibits approvals for new cannabis businesses and expansions while the City studies and considers regulatory amendments. The Ordinance preserves the status quo during that study period.

SECTION 3. FINDINGS. The Ordinance temporarily prohibits approvals for new cannabis businesses and expansions while the City studies and considers regulatory amendments. The Ordinance
A. Notwithstanding anything in the CCMC to the contrary, no City official or body may approve or issue any permit, entitlement, building permit, or other approval that would authorize:

1. A new cannabis business;

2. The expansion, enlargement, intensification, relocation, or material modification of an existing cannabis business; or

3. Construction or improvements required to establish or expand a cannabis business.

B. This prohibition applies to all approvals, including cannabis business permits, conditional use permits, administrative approvals, variances, design review, building permits, and certificates of occupancy.
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C. “Cannabis business” has the meaning in Title 5, Chapter 6 of the CCMC.

D. This Ordinance is temporary and allows time for study and potential zoning and regulatory changes.

SECTION 4. APPLICATIONS.

A. The City will accept and process applications consistent with Title 5, Chapter 6, including intake and completeness review, but will not approve any cannabis business permit or related entitlement during the moratorium.

B. No applicant has a vested right to approval before approval and substantial reliance.

C. The City may hold pending applications in abeyance and may defer hearings and decisions.

D. The City may accept and process new applications but will not approve them.

E. The City will determine the scope and timing of processing, including deferring hearings and final action, but will not refuse or leave applications entirely unprocessed.

F. Local processing deadlines are tolled during the moratorium to the fullest extent allowed by law.

G. Applicants may request to suspend, hold, or withdraw applications without prejudice.

SECTION 5. EXISTING APPROVALS. This ordinance does not affect valid approvals issued before adoption. Existing cannabis businesses may continue to operate but may not expand or modify. Nothing in this ordinance authorizes any cannabis business not otherwise permitted by the CCMC.

SECTION 6. EXCEPTIONS. This ordinance does not apply to personal cannabis cultivation permitted by applicable law.

SECTION 7. STUDY AND REPORT. Staff will study potential regulatory amendments.

At least 10 days before expiration, staff shall prepare and submit to the City Council a written report describing the measures taken to address the conditions that led to this ordinance, consistent with Government Code § 65858.

SECTION 8. ENVIRONMENTAL REVIEW. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines §§ 15060(c)(2) and 15061(b)(3), because it is not a “project” as defined by CEQA and, in any event, it can be seen with certainty that the Ordinance will not result 593
in a direct or reasonably foreseeable indirect physical change in the environment. This Ordinance temporarily prohibits approvals for certain land uses and preserves the status quo while the City studies potential amendments to its zoning and regulatory framework. It does not authorize development, construction, or any physical change to the environment. Rather, it delays or limits such activity pending further study. Courts have recognized that interim zoning ordinances adopted under Government Code § 65858 function as temporary “status quo” measures and do not themselves cause environmental impacts. To the extent CEQA applies, the City Council further finds that this ordinance is exempt under the common sense exemption set forth in CEQA Guidelines § 15061(b)(3), because there is no possibility that the ordinance may have a significant effect on the environment. The ordinance restricts, rather than enables, development activity. The City Council also finds that this Ordinance is categorically exempt under CEQA Guidelines § 15308 (Actions by Regulatory Agencies for Protection of the Environment), because it is a regulatory action taken by the City to assure the maintenance and protection of the environment while the City evaluates appropriate land use controls.

SECTION 9. SEVERABILITY. If any chapter, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have adopted this Ordinance, and each portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 10. ADOPTION, EFFECTIVE DATE, AND TERM. This Ordinance is adopted as an urgency measure pursuant to Government Code § 65858 for the immediate protection of the public health, safety, and welfare and shall take effect immediately upon adoption by at least a four-fifths (4/5) vote of the City Council. This Ordinance will remain in effect for 45 days from the date of adoption unless earlier repealed or extended in the manner provided by Government Code § 65858.

SECTION 11. PUBLICATION. The City Clerk will certify and publish this Ordinance as required by law.

PASSED AND ADOPTED by four-fifths vote the City Council of the City of California City on the 26 day of May, 2026.
______________________________________
Marquette Hawkins, Mayor
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APPROVED AS TO FORM: ATTEST:
_________________________________ ______________________________________ Victor M. Ponto, City Attorney John Paul Maier, MBA, MMC Deputy City Manager / City Clerk
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STATE OF CALIFORNIA)

COUNTY OF KERN )

CITY OF CALIFORNIA CITY)

I, John Paul Maier, Deputy City Clerk of the City of California City, California, do hereby certify that the foregoing Ordinance No. 26-__, was adopted on an urgency basis at a regular meeting of the City Council of the City of California City held on the 26th day of May, 2026.

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________________
John Paul Maier, MBA, MMC
Deputy City Manager / City Clerk
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